Your company's culture is your strategy: it's not what you say, but what you do that defines who you are.

1. Culture is the Backbone of Success

Culture is more than just values or personality traits—it's the backbone of every thriving company. It dictates how things get done and shapes the workplace environment. However, it isn’t a one-size-fits-all concept. Each organization must craft its own unique culture reflecting its goals, people, and objectives.

Bob Noyce, co-founder of Intel, exemplified this principle by creating a workplace culture designed for innovation. In the tech world of 1968, he realized engineers drove outcomes and needed a flexible, egalitarian environment. He provided stock options, eliminated managerial hierarchy, and fostered a collaborative space with open offices. This culture became the cornerstone of the company’s success.

Unlike Intel, other companies like Apple and Amazon demonstrate how differing cultures drive unique goals. Apple values quality so much that it invested billions in an iconic campus, while Amazon’s frugality principle would never accommodate such spending. Each culture works precisely because it aligns with their respective missions and strategies.

Examples

  • Bob Noyce’s groundbreaking open-office setup for Intel engineers.
  • Apple’s quality-first culture leading to ambitious investments.
  • Amazon’s focus on frugality to maintain competitive pricing.

2. Leadership Decisions Reflect Culture

The actions and decisions of leaders significantly mold organizational culture. Toussaint Louverture, the revolutionary leader who abolished slavery in Haiti, set clear examples through shocking rules that conveyed his cultural priorities.

One of his most striking decisions was banning married officers from taking concubines. This rule wasn’t just personal—it symbolized trust. Louverture’s decisions imbued his army with a discipline rooted in mutual reliability. Similarly, when he gained control of plantations, he allowed former owners to manage them to ensure economic sustainability over revenge.

Modern-day businesses like Amazon also use striking decisions to shape culture. Early on, employees sat at makeshift desks made from doors, symbolizing Amazon’s principle of frugality. Similarly, Netflix’s CEO Reed Hastings communicated a cultural shift by excluding DVD executives from meetings, prioritizing their transition into the streaming market.

Examples

  • Louverture's trust-focused rule banning concubines.
  • Amazon’s frugality exemplified through DIY desks.
  • Netflix’s decision to pivot priorities by sidelining DVD executives.

3. Samurai Practices Offer Lessons for Businesses

The samurai code of bushido provides timeless lessons for companies. Its practices, centered on action rather than belief, prioritize virtues such as honor, sincerity, and an acceptance of life’s transience—qualities transferrable to leadership and workplace behavior.

Samurai lived with an awareness of death, fostering focus on what mattered most. In business terms, accepting potential failure, like bankruptcy or a competitor's edge, can liberate leaders to prioritize deeper goals such as product quality and work environment.

For example, venture capitalists Marc Andreessen and Ben Horowitz emphasized honoring entrepreneurs in their firm. It became a dismissible offense to publicly criticize entrepreneurs, balancing respect with the tough honesty samurai valued. Constructive critiques were delivered with sincerity and politeness, fostering enduring trust.

Examples

  • Bushido-inspired focus on actions over values.
  • Entrepreneurs respected at Andreessen Horowitz.
  • Samurai virtues influencing decision-making across industries.

4. Cultural Change is Possible with Commitment

Shaka Senghor, who transformed a violent prison gang into a disciplined unit, demonstrated the potential for cultural redefinition in even the harshest environments. He questioned unethical behavior and demanded adherence to the gang's code, soon ascending as a moral leader.

Senghor redefined the gang's culture through unity-building practices. He introduced shared meals, exercise routines, and daily meetings, which shifted members away from violence toward ethical self-improvement. This approach shows that deliberate engagement can reshape groups from within.

In a corporate context, this mirrors how CEOs can foster change through leadership. For instance, when LoudCloud faced ethical challenges, the author made difficult choices adhering to the company’s foundational principle of trust, turning adherence to culture into a non-negotiable priority.

Examples

  • Senghor’s transformation of the Melanics' violent culture.
  • Daily engagement reinforcing new cultural values.
  • Leadership alignment with company principles at LoudCloud.

5. Inclusion and Loyalty Drive Unity

No company (or army) succeeds without fostering a sense of belonging. Genghis Khan used inclusion and loyalty to unify warring Mongol tribes.

He championed a meritocracy, rewarding talent over bloodline. Genghis also executed traitors, even from rival tribes, while integrating defeated peoples into his empire, using their unique skills for mutual benefit. Frontier Communications mirrored this approach by increasing pay for all employees and firing ineffective managers to create a more united workplace.

Creating inclusivity extends to hiring practices too. By ensuring diverse input in its hiring process, the author's company built a remarkably enriched workforce, connecting people from varied backgrounds and talents.

Examples

  • Genghis Khan’s meritocratic policies uniting tribes.
  • Maggie Wilderotter’s inclusive reforms at Frontier Communications.
  • Diverse hiring practices that improved workplace culture.

6. Authenticity is Key

To establish an effective culture, leaders must be honest about their strengths, weaknesses, and vision. Trying to mimic another company’s culture often fails; it must arise organically from leadership and organizational needs.

Twitter CEO Dick Costolo, a hardworking executive, shaped a culture of dedication. By returning to the office nightly to support late workers, he visibly led by example, reinforcing a value the company needed during its developmental phase.

The defining actions and personality of leaders play an even larger role than abstract values. Leaders must align their values with strategy, creating virtues that resonate with their unique work environment.

Examples

  • Dick Costolo modeling hard work at Twitter.
  • Leadership-driven virtues shaping workplace behavior.
  • Authenticity fostering organic culture, not imitation.

7. Strong Decisions Define Priorities

Good decisions enforce the cultural principles central to a company. This requires decisiveness and assessing evolving contexts. When organizations cling too rigidly to their priorities, they risk obsolescence—as seen when RIM failed to pivot against Apple’s growing iPhone dominance.

Sometimes, bold examples are necessary to solidify understanding. For instance, removing multiple levels of leadership when unethical practices arise reminds employees of the centrality of integrity. Leaders must balance speed and thoroughness depending on the scenario.

Whether in crisis or calm, strong decisions communicate lasting priorities that employees anchor to, ensuring continuity despite fluctuating circumstances.

Examples

  • RIM losing momentum by undervaluing innovation.
  • Shock decisions firing entire leadership levels for integrity violations.
  • Balancing wartime urgency and peacetime calm in leadership decisions.

8. Trust is a Non-Negotiable Virtue

Trust strengthens your organization's internal and external relationships. Transparent leaders create a safe environment where employees feel heard and supported, even during tough times.

For example, Abraham Lincoln’s Gettysburg Address reframed the significance of great loss, inspiring his nation amidst despair. Similarly, CEOs who acknowledge tough situations while celebrating progress earn enduring respect and commitment from their team.

Employees must also trust that bringing bad news will lead to resolution, not punishment. Open conversations supported by trust set companies up for progress.

Examples

  • Lincoln’s Gettysburg Address addressing national grief.
  • Honest conversations about layoffs retaining respect.
  • Constructive problem-solving encouraging openness.

9. Loyalty Requires Reciprocal Investment

Companies can earn employee loyalty by building honest, personal relationships. People are more likely to stay when they feel valued and aligned with a leader’s integrity.

Managers should consistently demonstrate care while setting realistic expectations. Even when employees leave, strong relationships often ensure goodwill, partnerships, or even re-hires later.

Loyalty also involves respecting employees' contributions, regardless of tenure, creating an environment people are proud of—even if they eventually move on.

Examples

  • Leaders showing personal interest in employees.
  • Employees leaving with goodwill, ready to advocate or collaborate later.
  • Relationships fostering loyalty beyond short-term retention.

Takeaways

  1. Develop rules and practices that align with your company’s personality and values to make culture tangible and actionable.
  2. Actively foster trust by addressing issues transparently and constructively while prioritizing ethical decisions.
  3. Reevaluate culture as necessary based on feedback and external changes to maintain a competitive edge and internal harmony.

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