Wednesday, February 18, 2015

Starting a company is like making sourdough. Start with culture.

I know it is a bad title.  I thought it was funny.

As a former academic-wannabe, I like to research things before doing them.  I am wired to process information.  So when Joe and I started to talk about the company, I read books and websites on entrepreneurship and founding a company.  There is a lot out there.  Over the next couple of months, I'll post resources that I think are worthwhile.  To start:


Getting the company culture right (or at least not wrong) in the early days is critical.  Once the culture gets ingrained, it is very resistant to change.  Like impossible.  Just so we are on the same page, I think of culture as the beliefs that drive behaviors in the organization.  So the critical thing piece when trying to influence your company's culture is your first set of hires.  They bring their beliefs with them and those beliefs drive behaviors.  Of course, you have to know what beliefs you want to embed in the company.  Then hire, in part, for those beliefs.  And if you find that you made a wrong decision on one of your new colleagues, well, as the CEO, need to make it right.  

If you are starting a company, you should take a look at the Netflix culture deck.  It provides a great food for thought when thinking about what your own company's culture should aspire to be.  There are some things I really like, but at its core, it is an exhortation to hire "stunning" colleagues.  Having great people around you solves a lot of problems.  Check out the discussion of what happens when your company gets large and specialized (around page 45).  I have observed this very phenomena and made the same observation.  But more importantly, they way they avoid the problem is to just hire great people.  And career development?  No formal program.  They provide great colleagues.  You are expected to learn from them.  And how do they find these unicorns.  They pay top of the market.

I don't like that there are nine values.  Seems a bit heavy.  I'll share my thinking in a later post.


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