I hear some form of the following question a lot from founders that are starting to have early success:

“How do we hire a bunch of new people and grow the company quickly without losing the culture we’ve worked so hard to establish?”

I’ve been fascinated by different company cultures for as long as I can remember (maintaining culture is also a hot topic at our CEO Lunches each month) and I’m frequently asking entrepreneurs to describe the culture of their companies. Over time I’ve come to realize that when you break down culture descriptions you’ll often find a mix of two components: values and vibe. Although each component can have a significant impact on the overall feel of a company, the way you establish and manage the two should be different.

Values

I think of values as the guiding principals or a code-of-conduct upon which a company was founded and which it operates on a daily basis. If you establish the right set of values early, these principals won’t change with time. Values establish your company’s view of the world and determine how you treat others including employees, customers, etc. Most importantly, values serve as the foundation on which tough company decisions are made. Values are 100% controlled by the company and should be unaffected by competitors, market conditions, etc.

The people you hire will come with their own set of values. Every person you hire should have personal values that completely align with the values of your company. 95% isn’t good enough. In fact, if a team member violates a company value, the violation should result in removal of the individual from the company. Here are some other things to consider around establishing and maintaining company values:

– Document and talk about your company values with your team all the time. Consider publishing your values, and talking about them with customers, partners, etc. to add an extra level of scrutiny to your commitment.
– I believe a set of five or less documented values is ideal because you want all your employees to have them top-of-mind when making decisions. If you have too many values, people simply won’t remember all of them.
– Determine a set of tough “trade-off” questions that you can ask during the interview process they will help you determine if a candidate’s values align.
– Good values require tough decisions to be made in order for the values to be upheld. If you establish values that are never challenged, these values aren’t serving any real purpose.

This last point is particularly important. Watered down or generic values might be easy to uphold, but they also won’t establish a strong culture. Companies with unique cultures tend to have values that are unconventional and sometimes controversial. A famous example of a unique value is Google’s “Don’t Be Evil” (I believe the actual company published version is “you can make money without doing evil”). I’m guessing “don’t be evil” is discussed at Google hundreds of times of day when decisions are being made, and I bet it is surprisingly hard to stay true to this value even though the premise seems fairly simple. The fact that Google allowed this value to become public knowledge has resulted in a huge audience of observers that are constantly scrutinizing Google’s actions to see if they are staying true to their values.

Vibe

Vibe represents the emotional side of the company. Like all emotions, vibe can be fairly volatile and is highly influenced by outside factors. For example, think about the vibe of a company on the night that the first product is launched vs. the vibe of the same company when Apple announces they are launching a competing product or service. When it comes to vibe, management can certainly set a tone and try to lead by example, but the reality is the vibe of a company will naturally change with time as the company grows and the products/employees mature. The biggest influence on vibe is typically success. Most companies that are doing well tend to have an overall positive vibe.

When I first joined Aquent eleven years ago, I would have described one aspect of the culture as “a big family”. This aspect was all about the vibe and had nothing to do with the values of the company. The company was much smaller at the time and we spent a lot of time together during work and after work. As the company grew, it became impossible for every person to know every other person like a family member. The vibe changed…the values didn’t. Success continued.

As a leader, there are aspects of vibe that you will naturally want to try to control. However, you have to ask yourself a few questions:

– Is this aspect of the company important to our long-term success?
– Does this aspect need to be maintained forever and is it sustainable?
– Does this aspect apply to all areas of the company and to all employees?
– Will establishing this aspect help us make important decisions in the future?

If you answered, “yes” to all of the above, congratulations…you’ve just identified a new potential value. However, it can be fairly liberating to realize that the foosball table in the middle of the office is nice, but it isn’t crucial to the long-term success of the company.

I know this won’t be a popular statement, but I don’t think maintaining culture (as defined by most entrepreneurs I’ve encountered) is important. Instead, I think it critical to focus on establishing strong values early and hiring people that have aligning values. Maybe it is all just semantics on how you define culture, but I believe you shouldn’t sweat the vibe part. You’ll have an overall positive feel if you are successful and that is the only type of vibe that really matters.

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7 Responses to Startup Culture: Values vs. Vibe

  1. Kevin Lee says:

    Thanks alot Chris for this.

    I agree that having shared values in a business is essential, and in theory if you hire the right people then that's half the battle won. The difficulty is how you determine at the interview stage whether a candidate shares your values or not. Do you just rely on 'gut feeling' through your conversation or is there a slightly more systematic way of determining this? You mention a set of "tough "trade-off" questions" – do you have any examples you've used in the past?

    Thanks!

    Kevin

    • Chris Moody says:

      Great question. I can't reveal all my secrets because it would make hiring more difficult for me in the future :-)

      However, I can tell you that strong values tend to lead to some natural tensions. So, during the interview process, I typically take a value and flip it around to reveal the negative/downside of the value and focus on the difficult aspects of maintaining the value. The right candidates will immediately pull you back to the positive and want to discuss how the trade-off is worth it. The wrong candidates will pile on to the negative aspect.

      For example, one of the values I hold near and dear to our team is to "always fight complacency". Who doesn't want to work for a company that fights complacency? The answer is actually a lot of people don't, they just don't know it. Because we are fighting complacency on a daily basis, we tend to focus on what is wrong and how to improve it. We don't spend nearly as much time patting ourselves on the back when something goes right. In fact, if someone talks about how well things are going, the conversation often turns in to a heated argument with the other party positioning how things aren't that great. If you are the type of person who needs constant/positive reinforcement you probably won't be happy on one of my teams. If you need a sense of being finished or complete, you probably won't be happy on one of my teams.

      So, describe the negative aspect and see where the conversation leads.

  2. John Hinnegan says:

    Nice post. thanks.

  3. Kevin Ball says:

    Thanks for writing this! I really like the distinction between values and vibe, but I have to wonder how they relate with one another. Vibe has a number of different influences, but it seems like the values of the company and the way those are interacting with the world currently would be one of them. What have you seen in terms of ways that values influence the vibe?

    Thanks

  4. Chris,

    Great Post. Core Values is where culture needs to begin. If your leaders live those values and repeat them regularly your team will start living them. Great thought on the list of 5 values and keeping it simple.

    Thanks

  5. Adi Mishra says:

    Good way to think about a company culture, Chris. Values, vibes, culture – whatever the overlaps and distinctions may be, are easier to maintain when teams are small, and members are "adults." Once the company grows and things have to be institutionalized, everyone starts getting a different interpretation of the culture – people tend to pick and choose without really understanding the overall passion/vision/values. Ultimately, good leaders at every level have to always be the watchdogs and enablers, adding to the goodness by engaging the new hires. Ultimately, the only thing that matters is the work – as seen by the users.

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