Ben Horowitz on the importance of company culture

“When I became CEO the first time, I asked all the veteran CEOs what I should focus on to be a great CEO. They all pretty consistently said: ‘Ben, pay attention to the culture.’”

In the clip below, a16z co-founder Ben Horowitz argues that culture drives how people in your company behave on a daily basis—and particularly, how they behave when you’re not looking.

Is that phone call so important I need to return it today or can it wait until tomorrow? Can I ask for a raise before my annual review? Is the quality if this document good enough or should I keep working on it? Do I have to be on time for that meeting? Should I stay at the Four Seasons or the Red Roof Inn? Should I go home at 5 p.m. or 8 p.m.? Should we discuss the color of this new product for five minutes or thirty hours? If I know something is badly broken in the company, should I say something? Whom should I tell? Is winning more important than ethics?

None of these things are in your mission statement or OKRs, but they determine many important things for your company, such as how people experience your company, what you’re like to do business with, what your company is like to work at, etc.

And as Ben describes, what drives the culture is all of the little behaviors and cues that people take about: “this is what I have to do to succeed in this company.”

Culture can feel abstract and secondary when you pit it against a concrete result that’s right in front of you, but it’s a strategic investment in the company doing things the right way when you are not looking. 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. If you don’t methodically set your culture, then two-thirds of it will end up being accidental, and the rest will be a mistake.

If you’re looking for a more in-depth guide to culture and how to build a great one, I’d recommend Ben’s book: What You Do Is Who You Are.

Full video: Okta “A Conversation With Ben Horowitz, Author of "What You Do Is Who You Are"“ (Apr 2020)

P.S. We’ve put together a YouTube playlist with every Ben Horowitz insight we’ve ever shared. You can watch it here: "Best startup advice from Ben Horowitz"