What You Do Is Who You Are

Introduction

In "What You Do Is Who You Are," Ben Horowitz explores the crucial role of culture in business success. Drawing from diverse examples ranging from ancient samurai to modern tech giants, Horowitz offers insights on how leaders can create and shape effective workplace cultures. This book is not just about abstract values, but about actionable virtues that define a company's identity and drive its success.

The Importance of Culture in Business

Culture is often mentioned as a key factor in business success, but its definition and implementation can be vague. Horowitz argues that culture is not just about values or the CEO's personality, but rather an expression of the business itself. He illustrates this with examples like:

• Apple's emphasis on quality, reflected in its $5 billion headquarters
• Amazon's famous frugality, embodied in its thrifty campus

Culture, according to Horowitz, should be unique to each company and reflect its specific needs and goals. He cites Intel co-founder Bob Noyce's creation of a radically egalitarian workplace culture that profoundly influenced Silicon Valley as an example of how culture can be tailored to a company's innovative needs.

While a great culture won't guarantee success, and a bad culture doesn't always lead to failure, Horowitz likens it to an athlete's training regime – it helps maximize potential and performance.

Learning from Historical Leaders

Horowitz draws unexpected lessons from historical figures, demonstrating how their leadership principles can apply to modern business culture.

Toussaint Louverture: Imprinting Cultural Virtues

Toussaint Louverture, who abolished slavery in Haiti, provides an example of how to clearly communicate cultural values:

1. He created shocking rules that made soldiers think about core values, like banning married officers from having concubines to emphasize trust.
2. He made decisions that demonstrated cultural priorities, such as allowing former slave owners to continue running plantations to prioritize economic survival over revenge.

Modern businesses can apply this approach:

• Amazon embodies frugality by providing cheap office desks made from doors with legs.
• Netflix's Reed Hastings demonstrated shifting priorities by excluding DVD executives from meetings as the company moved towards streaming.

Samurai Code of Bushido: Virtues in Action

The samurai code of bushido offers relevant lessons for business culture:

1. Focus on practices, not just principles
2. Keep death in mind to maintain perspective
3. Emphasize honor, politeness, and sincerity

Horowitz applied these principles at his venture capital firm Andreessen Horowitz:

• Made it a fireable offense to criticize entrepreneurs publicly
• Emphasized always telling the truth, even if it hurts
• Delivered hard truths with politeness

Shaka Senghor: Transforming Culture from Within

Shaka Senghor's story of transforming a prison gang demonstrates how to reshape group culture:

1. Challenge existing practices that don't align with stated values
2. Engage members constantly through shared activities and daily meetings
3. Look at culture through the eyes of newcomers to understand its impact

Horowitz emphasizes the importance of being open to change, as demonstrated when he chose to maintain trust by not manipulating financial reports at LoudCloud.

Genghis Khan: Fostering Inclusion and Loyalty

Genghis Khan's leadership provides lessons on creating an inclusive culture:

1. Implement meritocratic principles
2. Prize loyalty
3. Integrate diverse talents and cultures

Modern examples of these principles include:

• Frontier Communications' efforts to bridge the gap between white-collar and blue-collar workers
• The author's own company adapting hiring processes to create a more diverse workforce

Creating Your Own Business Culture

Horowitz emphasizes that there's no one-size-fits-all approach to creating a great business culture. Key points include:

1. Be yourself: Understand your strengths and weaknesses
2. Let your useful personal attributes shape the culture
3. Ensure culture matches business strategy
4. Choose virtues that are:
   • Embodied by new hires
   • Actionable
   • Distinguishing from competitors

The Importance of Strong Decision-Making

Leaders must be prepared to make tough decisions and redefine culture when necessary:

1. Be flexible and willing to re-prioritize based on market changes
2. Use object lessons to emphasize important priorities
3. Balance empowerment and control in decision-making
4. Adjust leadership style between "wartime" and "peacetime" modes

Universal Virtues: Trust and Loyalty

While most virtues should be specific to an organization, Horowitz identifies two near-universal virtues:

1. Trust:

   • Employees should trust each other and leadership
   • Create an environment where bad news can be shared openly
   • Foster constructive problem-solving

2. Loyalty:

   • Maintain good relationships with employees
   • Show genuine interest and remain honest
   • Understand that loyalty doesn't mean lifelong commitment

Practical Examples of Culture Shaping

Throughout the book, Horowitz provides numerous examples of how companies have shaped their cultures:

1. Amazon's frugality:

   • "Accomplish more with less" motto
   • Cheap office desks made from doors

2. Netflix's shift to streaming:

   • Excluding DVD executives from meetings

3. Andreessen Horowitz's respect for entrepreneurs:

   • Making it a fireable offense to criticize entrepreneurs publicly

4. Facebook's early motto:

   • "Move fast and break things" to encourage rapid innovation

5. Frontier Communications' inclusivity efforts:

   • Firing ineffective executives
   • Giving all employees a raise
   • Siding with underdogs in disputes

6. Twitter's work ethic under Dick Costolo:

   • CEO returning to office after dinner to reward late workers

These examples illustrate how culture can be shaped through specific actions, decisions, and practices rather than just stated values.

The Role of the CEO in Shaping Culture

Horowitz emphasizes the critical role of the CEO in defining and maintaining company culture:

1. Lead by example: Demonstrate the cultural virtues in your own actions
2. Make decisions that reinforce cultural priorities
3. Be willing to change course when necessary
4. Hire people who embody the desired cultural virtues
5. Communicate cultural expectations clearly and consistently

He also notes that CEOs must be adaptable, potentially switching between "wartime" and "peacetime" leadership styles as the company's situation changes.

The Impact of First Impressions

Horowitz highlights the importance of first impressions in shaping cultural perceptions:

1. New employees' initial experiences significantly influence their view of company culture
2. Leaders should pay attention to how newcomers perceive the culture
3. Regular check-ins with new hires can provide valuable insights into how well the intended culture is being communicated and implemented

Balancing Inclusion and Performance

The book explores the delicate balance between creating an inclusive culture and maintaining high performance:

1. Foster an environment where diverse talents and backgrounds are valued
2. Ensure that inclusion efforts align with business goals and performance expectations
3. Be willing to make tough decisions when employees don't align with cultural values or performance standards

The Importance of Actionable Virtues

Horowitz repeatedly emphasizes the need for cultural virtues to be actionable rather than abstract:

1. Focus on practices rather than just principles
2. Ensure that cultural virtues are reflected in day-to-day operations and decision-making
3. Regularly assess whether stated virtues align with actual behaviors in the organization

Adapting Culture to Changing Circumstances

The book acknowledges that culture isn't static and must evolve with the company:

1. Be willing to reassess and adjust cultural priorities as the business environment changes
2. Communicate changes clearly and explain the rationale behind them
3. Ensure that core values remain consistent even as specific practices evolve

The Role of Shocking Rules and Object Lessons

Horowitz discusses the effectiveness of using surprising rules or object lessons to reinforce cultural values:

1. Create rules that make people think deeply about core values
2. Use dramatic examples or consequences to emphasize important cultural priorities
3. Ensure that these rules or lessons are clearly tied to the desired cultural outcomes

The Importance of Daily Practices

The book stresses the significance of daily routines and practices in shaping culture:

1. Implement regular meetings or activities that reinforce cultural values
2. Encourage consistent behaviors that align with the desired culture
3. Recognize and reward actions that exemplify the company's cultural virtues

Balancing Short-term and Long-term Cultural Goals

Horowitz explores the challenge of maintaining cultural consistency while adapting to changing circumstances:

1. Identify core cultural elements that should remain constant
2. Be willing to adjust practices and secondary cultural elements as needed
3. Communicate the balance between consistency and adaptability to employees

The Role of Trust in Decision-Making

The book emphasizes the importance of trust in enabling effective decision-making:

1. Foster an environment where employees feel safe sharing bad news or concerns
2. Encourage open dialogue about challenges and potential solutions
3. Demonstrate trustworthiness through consistent and ethical leadership

The Challenges of Scaling Culture

Horowitz acknowledges the difficulties of maintaining a strong culture as a company grows:

1. Develop systems and processes that reinforce cultural values at scale
2. Ensure that cultural onboarding is consistent for new employees
3. Regularly assess and address cultural drift in different parts of the organization

The Importance of Cultural Fit in Hiring

The book discusses the significance of considering cultural fit when hiring:

1. Define clear cultural criteria for evaluating candidates
2. Balance the need for cultural fit with the benefits of diversity
3. Ensure that hiring for cultural fit doesn't lead to homogeneity or exclusion

The Role of Stories in Shaping Culture

Horowitz explores how stories and narratives can reinforce cultural values:

1. Use compelling examples from company history to illustrate cultural virtues
2. Encourage employees to share stories that exemplify the desired culture
3. Ensure that leadership communications include narratives that reinforce cultural priorities

The Importance of Consistency in Cultural Messaging

The book stresses the need for consistent cultural messaging across all levels of the organization:

1. Ensure that leaders at all levels understand and embody the desired culture
2. Address inconsistencies between stated values and actual practices promptly
3. Regularly reinforce cultural messages through various communication channels

The Role of Feedback in Cultural Development

Horowitz discusses the importance of feedback in maintaining and evolving company culture:

1. Encourage open feedback about cultural issues from employees at all levels
2. Regularly assess the effectiveness of cultural initiatives and make adjustments as needed
3. Be willing to receive and act on feedback about leadership's role in shaping culture

The Impact of Crisis on Culture

The book explores how times of crisis can test and reveal a company's true culture:

1. Use challenging situations as opportunities to demonstrate cultural values in action
2. Be prepared to make difficult decisions that align with cultural priorities
3. Communicate transparently about challenges and how they relate to company culture

The Role of Celebration in Reinforcing Culture

Horowitz highlights the importance of celebrating actions and achievements that exemplify the desired culture:

1. Recognize and reward behaviors that align with cultural virtues
2. Use company events and milestones to reinforce cultural messages
3. Ensure that celebration and recognition practices are consistent with cultural values

The Challenges of Cultural Integration in Mergers and Acquisitions

The book acknowledges the difficulties of integrating different cultures in M&A situations:

1. Assess cultural compatibility as part of due diligence
2. Develop clear plans for cultural integration or separation
3. Communicate cultural expectations and changes clearly to all affected employees

The Importance of Ethical Considerations in Culture

Horowitz emphasizes the need for ethical foundations in company culture:

1. Ensure that cultural virtues align with ethical principles
2. Address ethical dilemmas openly and consistently
3. Demonstrate a commitment to ethics through leadership actions and decisions

Conclusion

In "What You Do Is Who You Are," Ben Horowitz provides a comprehensive exploration of how leaders can create and shape effective business cultures. By drawing on diverse examples from history and modern business, he illustrates that culture is not just about stated values, but about the actions and practices that define an organization.

Key takeaways include:

1. Culture must be unique to each company, reflecting its specific needs and goals.
2. Leaders must embody and consistently reinforce cultural virtues through their actions and decisions.
3. Cultural virtues should be actionable, not just abstract principles.
4. Trust and loyalty are near-universal virtues that should be fostered in any organization.
5. Culture must be adaptable to changing circumstances while maintaining core values.
6. First impressions and daily practices play crucial roles in shaping and maintaining culture.
7. Hiring for cultural fit, while important, should be balanced with the benefits of diversity.
8. Feedback, celebration, and consistent messaging are essential for cultural development and reinforcement.

Ultimately, Horowitz argues that creating an effective culture is an ongoing process that requires constant attention, reflection, and adjustment from leadership. By understanding and applying the principles outlined in this book, leaders can create cultures that not only reflect their companies' values but also drive their success in the competitive business world.