Ben Horowitz’s book “What You Do Is Who You Are” provides a thorough exploration of how leaders can shape business culture. Drawing on historical examples and practical experiences, Horowitz dissects the elements that create a successful business environment. The book falls into the category of Entrepreneurial Mindset and offers actionable insights into leadership and organizational behavior.

Toussaint Louverture led the only successful slave revolt in history, transforming a population of slaves into a disciplined and cohesive army.

Example from the Book:
– Louverture enforced a strict code of conduct and emphasized clear communication and consistency.

Action:
– As a leader, set clear rules and uphold them consistently. Conduct regular meetings to reinforce these values and maintain a documentation system where rules and major decisions are recorded and easily accessible.

Symbols and actions often speak louder than words. Horowitz highlights the story of Shaka Senghor, a former prison gang leader, who transformed prison culture through symbolic acts of integrity and leadership.

Example from the Book:
– Senghor orchestrated the signing of a truce within a prison by using a broken knife, symbolizing peace and the end of violence.

Action:
– Use symbols or actions to strengthen your company’s culture. For example, create rituals that promote your core values, such as awarding a ‘Culture Champion’ of the month, who exemplifies the company’s principles through their actions.

The samurai culture of historical Japan, epitomized by their Bushido code, demonstrates the importance of personal accountability. Horowitz discusses how the samurai’s commitment to their principles could inspire modern leaders.

Example from the Book:
– Samurai adhered to strict codes of honor, where their word and personal integrity defined their status and actions.

Action:
– Foster a culture of accountability within your organization. Implement quarterly reviews where employees can reflect on their commitments and how well they adhered to them. Make this a part of the official performance evaluation process.

Genghis Khan’s leadership was characterized by direct and clear communication. The Mongols were able to maintain a vast empire through this practice.

Example from the Book:
– Khan used direct orders and established a code that was clear and easy to understand.

Action:
– Promote transparent and direct communication in your organization. Introduce platforms where employees at all levels can freely communicate ideas and concerns without layers of bureaucracy.

Horowitz emphasizes that culture must be deliberately shaped and not left to develop organically. This concept counteracts Peter Drucker’s famous notion that “culture eats strategy for breakfast.”

Example from the Book:
– When Horowitz was building his company, Opsware, he deliberately designed the culture to be performance-oriented by setting high standards and rewarding those who met them.

Action:
– Design cultural interventions tailored to your strategic goals. For instance, if innovation is a key focus, create ‘Innovation Labs’ where employees are encouraged to spend a portion of their time developing new ideas with allocated resources.

Maintaining a cohesive culture as a company scales is challenging. Horowitz uses the example of his experience scaling Opsware from a small startup to a large organization.

Example from the Book:
– The company kept its culture alive through growth by sticking to its core values but also adapting to new challenges and incorporating fresh ideas.

Action:
– Develop a set of ‘Non-Negotiables’ within your core values that remain regardless of scale. Simultaneously, establish ‘Adaptation Committees’ composed of diverse team members who ensure that cultural adaptation aligns with the core values during periods of change.

Building an inclusive culture requires intentional actions and policies. Horowitz discusses the difficulty and importance of fostering diversity.

Example from the Book:
– Apple’s hiring policies in the early days that sought out talent from varied backgrounds to drive innovation.

Action:
– Establish comprehensive diversity policies and training programs. Form diverse hiring committees and set measurable diversity goals. Regularly review these goals and processes to ensure they are being met.

Values must be operationalized to be effective. This means turning abstract ideals into concrete actions.

Example from the Book:
– At Horowitz’s company, meetings always began with a ‘Good News’ section to start on a positive note, reinforcing a culture of optimism and teamwork.

Action:
– Translate your company’s values into daily practices. If integrity is a value, develop a whistle-blower policy and ensure everyone knows how to report unethical behavior safely.

Times of crisis reveal and test the true culture of a company. Horowitz discusses how leaders must take swift actions to steer the culture in the right direction during such times.

Example from the Book:
– During the 2008 financial crisis, Horowitz had to make tough decisions at Loudcloud to maintain financial stability while keeping the morale high.

Action:
– During crises, prioritize transparent communication. Use all-hands meetings to explain the situation, the decisions being made, and their implications. Follow this up with smaller team meetings to address specific concerns and build collective resilience.

Ben Horowitz’s “What You Do Is Who You Are” provides a rich tapestry of historical and contemporary examples to illustrate how leaders can intentionally shape their company’s culture. By understanding the key elements that define a successful culture, and by implementing deliberate actions to uphold these elements, leaders can create an environment that not only drives success but also aligns with their strategic goals and core values.

By applying these principles and actions, leaders can create a robust and dynamic culture that is reflective of their company’s unique identity and mission.