Where the Money Really Is: Unpacking Company Culture and its True Value

I watch your actions not just captions in the sh*t you post —Rick Ross, “Big Tyme”

In today’s business landscape, the concept of company culture is constantly under scrutiny, especially within technology companies. Missteps and perceived cultural failings often dominate headlines, prompting a wave of commentary and proposed solutions. Many of these suggestions, however well-intentioned, frequently miss the mark, highlighting a fundamental gap in understanding: what truly constitutes company culture and how it’s intentionally built. This is the core question explored in my new book, What You Do Is Who You Are, aiming to provide actionable insights and a fresh perspective on this critical aspect of business. But beyond the practical guidance, there’s a deeper question to consider: Where The Money truly resides in a company’s culture, and how that understanding can drive meaningful impact, both internally and externally.

What Company Culture Really Is (and Isn’t)

When company culture becomes a topic of concern, the proposed remedies are often simplistic – fire the CEO, mandate liberal arts studies for tech founders, or vaguely suggest “doing the right thing.” These responses reveal a widespread confusion about the very nature of culture. Having navigated this personally as CEO of Loudcloud, I understand the struggle firsthand. Initially, I believed culture would organically stem from my own values and leadership style. “Leading by example,” I thought, would suffice. However, as Loudcloud expanded, this approach crumbled. Instead of a cohesive culture, we ended up with a fragmented collection of subcultures, many unintended and some detrimental. Some teams operated under aggressive, intimidating management, while others suffered from neglect and lack of direction. It was, in short, a cultural mess.

This experience forced me to confront fundamental questions: Is company culture about superficial perks like office dogs or yoga sessions? No, those are merely benefits. Is it defined by corporate values statements displayed on walls? Again, no – those are aspirations, ideals to strive for. Is it simply a reflection of the CEO’s personality? While leadership certainly influences culture, it’s not the entirety of it. So, what exactly is company culture?

Consider these everyday business dilemmas:

  • Can this phone call wait until tomorrow, or is immediate action required?
  • Is it appropriate to request a raise outside the annual review cycle?
  • Is this document “good enough” or does it require further refinement?
  • Is punctuality essential for every meeting?
  • When traveling for business, is a budget hotel sufficient or is luxury expected?
  • In contract negotiations, should price or partnership be prioritized?
  • Is it more valuable to address peer shortcomings or acknowledge their successes?
  • Is a strict 5 PM departure time acceptable, or is longer hours the norm?
  • How much competitive analysis is necessary?
  • Should product color discussions last minutes or hours?
  • If a critical company issue is identified, who should be informed, and when?
  • Does winning justify compromising ethical principles?

Your company’s mission statement or stated goals offer no direct answers to these practical, daily questions. Yet, how your employees instinctively answer them is your company culture in action. Culture is the silent decision-making framework that operates when leadership isn’t in the room. It’s the ingrained assumptions that guide employees in resolving routine challenges. It’s how they behave when unobserved. If culture isn’t deliberately shaped, it becomes a haphazard mix of unintentional habits and outright errors.

Culture is not just what you say; it’s demonstrably what you do. It’s not the values you preach, but the behaviors you consistently reward and tolerate. My book, What You Do Is Who You Are, is designed to equip leaders with the tools and frameworks to intentionally cultivate a culture that aligns with their desired organizational identity. Understanding where the money is invested – in training, in rewards, in recognition, in tolerated behaviors – reveals the true cultural priorities of any organization.

The Inspiration Behind “What You Do Is Who You Are”

To truly grasp the essence of culture, it’s insightful to examine environments where cultural foundations are either profoundly broken or exceptionally strong. Prisons, unfortunately, represent a stark example of fractured cultures. Individuals entering the prison system often come from backgrounds marked by abandonment, abuse, and systemic failures. Trust is eroded, and shared understandings are scarce. Prison becomes a crucible where culture, in its most basic form, must be rebuilt from the ground up.

Shaka Senghor’s journey through the U.S. prison system provided a powerful case study in cultural transformation. He not only navigated the brutal hierarchy and led a gang within prison but later reflected on and deliberately reshaped his own culture, impacting countless lives in the process. His story underscores the fundamental principles of culture building, even in the most challenging circumstances.

Conversely, the Haitian Revolution, led by Toussaint Louverture, offers an unparalleled example of cultural strength forged in the face of oppression. This revolution, the only successful slave revolt in history, defied expectations and challenged the global powers of its time. While the desire for freedom was a universal motivator for enslaved people, the Haitian Revolution stands alone in its triumph. Why?

Slavery inherently suppresses cultural development by dehumanizing individuals. Broken cultures, lacking cohesion and trust, rarely achieve victory in conflict. Under slavery, labor provides no personal benefit, stifling initiative and long-term thinking. The constant threat of violence and family separation discourages investment in systemic improvements. Education and knowledge sharing are actively suppressed to maintain control. This environment fosters a culture of survival, characterized by low trust, limited education, and a short-term focus – hardly the ingredients for a successful military force.

Image: Toussaint Louverture, leader of the Haitian Revolution, demonstrating the power of culture in overcoming seemingly insurmountable odds.

Yet, Toussaint Louverture, born into slavery, achieved the seemingly impossible. He reprogrammed slave culture, forging an army from enslaved people that defeated Spanish, British, and French forces – the dominant military powers of Europe. His army inflicted more casualties on Napoleon’s forces than the Emperor would later suffer at Waterloo. Louverture understood that true power, and ultimately, where the money – in terms of resources and national strength – would flow, resided in a unified, disciplined, and purpose-driven culture. He instilled this culture within his ranks, transforming a group of oppressed individuals into a formidable force.

Where the Money Goes: Proceeds for Social Impact

Reflecting on these powerful examples, the book What You Do Is Who You Are delves into the practical steps leaders can take to build intentional and impactful cultures. And in alignment with the book’s core message – that actions speak louder than words – I’ve decided to direct 100% of my proceeds from this book to causes that resonate deeply with its themes: anti-recidivism programs and initiatives to support Haiti’s revitalization.

These donations are, in essence, a form of “payback,” acknowledging the profound inspiration drawn from the Haitian Revolution and Shaka Senghor’s transformative journey. By supporting anti-recidivism efforts, the aim is to contribute to rebuilding broken cultures within communities affected by incarceration, helping individuals reintegrate and thrive. Similarly, investing in Haiti’s future is a commitment to fostering a stronger, more resilient culture in a nation that has overcome immense historical challenges.

This decision about where the money from the book will go is a direct reflection of the principles explored within its pages. It’s about putting values into action, about recognizing the power of culture to shape outcomes, and about investing in initiatives that strive to build stronger, more equitable societies.

Want more a16z?

Sign up to get the best of a16z content, news, and investments.

Thanks for signing up for the a16z newsletter.

Check your inbox for a welcome note.

MANAGE MY SUBSCRIPTIONS By clicking the Subscribe button, you agree to the Privacy Policy.

Contributor

More From this Contributor

The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; a16z has not reviewed such advertisements and does not endorse any advertising content contained therein.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.

Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *