What You Do Is Who You Are: How to Create Your Business Culture
Tags: #business #culture #leadership #management #history #strategy
Authors: Ben Horowitz
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Overview
This book is a practical guide to building and managing company culture. I argue that culture is not about perks or values statements, but about how people make decisions when nobody is looking. Using vivid examples and insightful analysis, I distill key cultural principles from unlikely sources such as a Haitian revolutionary, a samurai warrior, a reformed prison gang leader, and even Genghis Khan. I demonstrate how these seemingly disparate figures employed surprisingly similar techniques to shape their respective cultures and achieve extraordinary results. urrently, the conversation about culture focuses on creating inclusive workplaces and promoting diversity. While diversity and inclusion are vital goals, I argue that they are best achieved not through quotas or separate programs, but by building a meritocracy that recognizes and values diverse talents and perspectives, much as Genghis Khan did. Throughout the book, I emphasize the importance of cultural coherence, making ethics explicit, identifying and mitigating unintended consequences, and ensuring that your culture aligns with both your personality and your company’s strategy. Ultimately, what you do is who you are, and your company’s culture is a reflection of your actions. This book will help you to do the things you need to do so you can be the kind of leader you want to be.
Book Outline
1. Culture and Revolution: The Story of Toussaint Louverture
There has only been one successful slave revolt in history: the Haitian Revolution. I examine how Toussaint Louverture, a former slave, was able to reprogram the culture of slaves in Saint-Domingue to build a formidable fighting force that defeated European superpowers. The story of Louverture’s success underscores the importance of culture in driving action and achieving seemingly impossible goals.
Key concept: Slavery chokes the development of culture by dehumanizing its subjects, and broken cultures don’t win wars.
2. Toussaint Louverture Applied
I break down seven key tactics Louverture used to build the culture he needed to win the Haitian Revolution: keep what works, create shocking rules, dress for success, incorporate outside leadership, make decisions that demonstrate priorities, walk the talk, and make ethics explicit. I illustrate each tactic with examples from Louverture’s leadership and offer insights into how they can be applied to modern companies.
Key concept: To create his army, Louverture began with five hundred handpicked men who learned the art of war with him as he drilled and trained them assiduously. In this way, he was able to create the new culture with minimal divergence.
3. The Way of the Warrior
I examine the cultural code of the samurai, bushido, highlighting its focus on action rather than belief, its emphasis on the importance of death awareness, and its system of eight interconnected virtues: rectitude, courage, honor, loyalty, benevolence, politeness, self-control, and veracity. The samurai’s emphasis on virtues as actionable behaviors rather than mere beliefs offers valuable insights for building strong modern company cultures.
Key concept: “The way of the warrior is to be found in dying.”
4. The Warrior of a Different Way
I introduce Shaka Senghor, a man who rose to lead a prison gang in the Michigan prison system before transforming it into something entirely different. Senghor’s journey illustrates how the culture you’re in shapes you, how you can use first principles to build and shape culture, and how even a leader has to change himself to change the culture.
Key concept: “If you get into a conflict with somebody, could you stab them and just keep it moving?”
5. Shaka Senghor Applied
I analyze how Senghor’s story offers valuable lessons for today’s leaders: cultural orientation for new employees, living the code yourself, being open to bad news, and the importance of recognizing and mitigating the unintended consequences of your cultural choices.
Key concept: “If you handle external matters this way, people in your organization will look at that as a model. If you don’t, then the way you treat outsiders will leak back into your own organization.”
6. Genghis Khan, Master of Inclusion
I explore Genghis Khan’s culture of radical inclusion, which enabled him to build the world’s largest empire. Khan, an outsider who had been imprisoned by his own tribe, understood that talent could be found anywhere, and he built a meritocracy that integrated people from diverse cultures and backgrounds, turning former enemies into loyal soldiers. He believed in giving people a chance based on their abilities, not their origins, and rewarding them generously for their contributions.
Key concept: “It is delightful and felicitous for a man to subdue rebels and conquer and extirpate his enemies, to take all they possess, to cause their servants to cry out, to make tears run down their faces and noses, to ride their pleasant-paced geldings, to make the bellies and navels of their wives his bed and bedding, to use the bodies of his women as a nightshirt.”
7. Inclusion in the Modern World
I examine inclusion in the modern world through the lenses of Genghis Khan’s leadership, Don Thompson’s rise to CEO of McDonald’s, and Maggie Wilderotter’s transformation of Frontier Communications. I highlight how their approaches to inclusion demonstrate the power of seeing people for their potential rather than their backgrounds and creating a culture that values diverse talents and perspectives.
Key concept: People who come from different backgrounds and cultures bring different skills, different communication styles, and different mores to the organization.
8. Be Yourself, Design Your Culture
I argue that to design a culture that truly works, you must first understand yourself. Be honest about your strengths and weaknesses. Your company’s culture should be an authentic expression of who you are, not an imitation of someone else’s success. I illustrate this principle with examples of CEOs who tried to emulate others and ended up with inauthentic cultures that failed to achieve their goals. I also explore how culture should align with both your personality and your company’s strategy.
Key concept: Step one in designing a successful culture is to be yourself.
9. Edge Cases and Object Lessons
I examine several “edge cases,” or scenarios where cultural principles can break down or become counterproductive. These include when customer obsession leads to a company missing disruptive innovations, the dangers of cultural rules becoming too rigid, and the challenges of reconciling culture with board mandates.
Key concept: Cultural rules can often become bloated sacred cows. Everyone tiptoes around them, trying to respect the culture—and then the cows topple and crush you.
10. Final Thoughts
I discuss the importance of building trust, encouraging openness to bad news, and fostering loyalty as key elements of strong cultures. I offer practical advice on how to embody these virtues and cultivate them within your organization. I also provide a checklist of key cultural considerations for leaders.
Key concept: The truth about telling the truth is that it doesn’t come easy. It’s not natural. What’s natural is telling people what they want to hear.
Essential Questions
1. What is culture and how can a leader shape it?
Culture is not about perks or values statements but about the set of assumptions employees use to resolve problems and the behaviors they exhibit when no one is looking. It’s about making decisions when the CEO isn’t there to provide an answer. A leader can affect company culture by intentionally shaping those invisible behaviors using the tactics outlined in the book, grounded in historical examples.
2. What are some effective tactics for designing and shaping company culture?
A leader can design and shape company culture by being mindful of seven key tactics: keep what works, create shocking rules, dress for success, incorporate outside leadership, make decisions that demonstrate priorities, walk the talk, and make ethics explicit. These tactics are effective because they make expectations clear, reinforce desired behaviors, and create a memorable framework for decision-making.
3. How can you identify and mitigate the unintended consequences of your cultural choices?
Because culture is a consequence of actions, not just beliefs, it can produce unintended consequences, even when designed with good intentions. A leader must constantly examine and adapt the culture to ensure it reflects the company’s current goals and to address any negative consequences that may have emerged.
4. What is the most important element of any corporate culture?
The most important element of any corporate culture is that the work must matter to those who do it. Employees everywhere want to know that their efforts make a difference. It’s a leader’s job to ensure that the answer to that question is a resounding “yes!” by creating an environment where people care about their work, the mission, and the company’s success.
5. How can leaders promote inclusion effectively in the modern world?
Inclusion in the modern world is about seeing people for their potential rather than their backgrounds. It’s about creating a meritocracy that values diverse talents and perspectives and gives everyone a chance to succeed based on their abilities. This requires leaders to be mindful of their own biases and to actively seek out talent from a variety of sources.
Key Takeaways
1. Create Shocking Rules to Reinforce Cultural Concepts
To embed cultural principles, create rules that are memorable and thought-provoking. These “shocking rules” force people to ask “Why?”, which provides an opportunity to reinforce the underlying cultural concept. To be effective, the rule should be encountered frequently and its cultural impact must be clear.
Practical Application:
A startup founder trying to instill a culture of customer service could institute a “no-reply” email policy. Every customer email must receive a personalized response within 24 hours, even if it’s just a quick acknowledgement. This rule would be memorable, raise questions, highlight the importance of customer responsiveness, and be encountered frequently.
2. Assign New Meaning to Difficult Situations
In challenging situations, particularly when delivering bad news, it’s essential to not just state the facts but to provide a clear meaning and context. Explain why the action is necessary and connect it back to the larger mission, showing how it serves a greater purpose and moves the company forward.
Practical Application:
When making a difficult decision like a layoff, explain the facts clearly, acknowledge any leadership mistakes that contributed to the situation, and, most importantly, connect the decision to the larger mission. This approach builds trust and helps employees understand the purpose behind the painful action.
3. See People for Their Potential, Not Their Backgrounds
To build an inclusive culture, focus on identifying the skills and attributes that are genuinely valuable to your company and then seek out those talents, regardless of a candidate’s background. Don’t assume that everyone from a particular group can do the same job or that a traditional hiring profile will reveal the best candidates.
Practical Application:
When interviewing candidates, don’t just rely on traditional criteria like skills and experience. Instead, consider testing for virtues that are essential to your company’s success, such as helpfulness, the ability to give feedback, or the capacity to build strong relationships. This approach can help you identify candidates who are not only qualified but who are also a good cultural fit.
4. Address the Impact of Behavior, Not the Behavior Itself
When addressing problematic behavior, focus on the impact of the behavior rather than criticizing the person directly. This approach is more effective because it helps the individual understand the consequences of their actions and encourages them to take responsibility for their impact on the team or the company.
Practical Application:
A product manager facing pushback from an engineer during a project review should avoid personal attacks and focus on the impact of the engineer’s behavior. For example, instead of saying “You’re being difficult,” the product manager might say “Your reluctance to share data is blocking progress and causing frustration among the team. We need to find a way to work together more effectively.”
Suggested Deep Dive
Chapter: Shaka Senghor Applied
This chapter is particularly relevant for AI engineers. The focus on cultural orientation, first principles, and the power of feedback resonates with the challenges of building ethical and responsible AI systems. It highlights the need to consider how AI products will be perceived and used by diverse populations.
Memorable Quotes
Introduction: What You Do Is Who You Are. 12
Because your culture is how your company makes decisions when you’re not there. It’s the set of assumptions your employees use to resolve the problems they face every day. It’s how they behave when no one is looking.
Introduction: What You Do Is Who You Are. 14
From this broader perspective, culture is the strong force in the universe.
Toussaint Louverture Applied. 32
“When everyone wants to know “Why?” in an organization, the answer programs the culture, because it’s an answer everyone will remember.
The Way of the Warrior. 78
The simple answer is that they kept death in mind at all times.
The Culture of Decisions. 151
Culture is a strategic investment in the company doing things the right way when you are not looking.
Comparative Analysis
This book shares a kinship with other influential works on leadership and company culture such as “The Hard Thing About Hard Things” by the author himself, “Delivering Happiness” by Tony Hsieh, and “Start With Why” by Simon Sinek. Like these works, “What You Do Is Who You Are” emphasizes the critical role of leadership in shaping culture and the importance of aligning actions with values. However, it stands out for its unique approach of drawing inspiration from historical figures like Toussaint Louverture and Genghis Khan. While other books focus on contemporary business cases, Horowitz expands the conversation by examining how culture functions in different contexts, from ancient samurai society to modern-day prisons. This broader perspective provides valuable insights into the universality of cultural principles and challenges readers to think critically about their own cultural assumptions.
Reflection
Horowitz’s “What You Do Is Who You Are” is a compelling read, rich with historical anecdotes and pragmatic advice on building company culture. His central argument - that culture is defined by actions, not values - is a powerful reminder for leaders at all levels. The book’s strength lies in its ability to bridge historical analysis with modern-day business challenges, offering fresh perspectives on familiar topics like diversity, trust, and decision-making. However, a skeptical reader might question the applicability of lessons drawn from historical figures like Toussaint Louverture and Genghis Khan to the complexities of the modern business world. These leaders operated in vastly different contexts with different ethical considerations, and their tactics, while effective in their time, may not always translate seamlessly to contemporary organizations. While the book is undeniably insightful and thought-provoking, its reliance on historical figures may require some critical interpretation and adaptation for practical application in today’s business environment.
Flashcards
What is a virtue?
A belief you actively pursue or embody
What are the seven key tactics Toussaint Louverture used to build his army’s culture?
Keep what works, create shocking rules, dress for success, incorporate outside leadership, make decisions that demonstrate priorities, walk the talk, and make ethics explicit
What is bushido?
The way of the warrior - a set of practices, not values, focused on action and rooted in the importance of death awareness
What are the eight virtues of the samurai code?
Rectitude, courage, honor, loyalty, benevolence, politeness, self-control, and veracity or sincerity
What is company culture?
It’s not about perks or values statements, but about how people make decisions when nobody is looking
Who are the best people to ask about what your company culture is really like?
New employees - they are the most attuned to the true culture and can offer insights you might miss
What is Tony Robbins’ key insight about self-improvement?
The quality of your life is a function of the quality of questions you ask yourself