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Writer's pictureRBeckwith

Understanding Business Culture: Good/Bad OR Strong/Weak


Are you confident things can get done the way you need them to get done without your presence?


One way to think about culture: it's what happens when you're not in the room. That might even be the ultimate test for company culture! We all know that "good" culture can advance a business far more over the long-term compared to "bad" culture. But is that the right way to think about what happens inside our businesses? What if we're thinking about it all wrong?


Brian Chesky, co-founder and CEO of Airbnb, has offered an alternative perspective.(1) He says there is no such thing as good or bad culture. He defines culture as either strong or weak. A case can be made that some cultures are good and some are bad, but Chesky's point is that good/bad is subjective, what he considers "good" others may consider "bad". Whereas strong/weak is a more objective way to think about culture. In strong cultures, leaders impose fundamental beliefs that employees are passionate about, working toward a common goal, with little friction.


So how does Chesky build strong culture at Airbnb? It starts with defining a few core values to live by; "beliefs that never change," as he puts it. One of Airbnb's values is "Champion the Mission." Simple, effective and timeless. Core values should not be too specific or complicated (like set processes for doing things), which could have the opposite effect and harm the culture.


Next, Chesky believes the most important cultural event is hiring because as you bring people in, the culture becomes the people around you. Part of Airbnb's hiring process tests applicants for the company's six core values. For instance, another core value of Airbnb is to be a host, so applicants will be assessed on their passion for giving and hospitality. If the applicant does not possess that passion, they are probably not the right fit for the culture.


Chesky's last key to strong culture is repetition. Chesky believes in not only establishing core beliefs, but consistently reinforcing those beliefs so that you never forget them. Their "Champion the Mission" value is printed on each employee's key card so they read it every day when they check into work. Another example of repetition: Chesky writes an email every Sunday to all employees about culture that is meant to be a high-level, thought-provoking message.


Should culture be so carefully defined in this way? Some believe culture should be organic or risk being exposed as fake and disingenuous. Chesky disagrees, believing you need to strike a balance by being really specific about a few things, like core values, while giving people the freedom to act within those boundaries that are naturally created by those values.


Simplify your values; promote them; and let those values guide decision making and interactions. Soon, the culture will define your organization and it will be safe to leave the room.


 

 

The views expressed represent the opinions of Bluestone Financial Advisors as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

 

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