What are common misconceptions about good company culture?

A common misconception is that culture is defined by superficial perks like ping-pong tables or happy hours. True culture is about how hiring decisions are made, the energy of interactions, how decisions are reached, and who gets promoted.

What are the risks of not focusing on culture and D&I early on?

Neglecting culture and D&I can lead to significant mistakes, higher attrition rates, difficulty in recruiting top talent, and perpetuation of societal biases. It can also result in a less resilient organization that struggles to survive startup challenges.

How can founders check for and mitigate unconscious biases in their company?

Founders can start by focusing on credit and blame dynamics, avoiding a 'blame button' when mistakes happen and instead solving problems first. They should also actively credit and amplify the accomplishments of their team members.

How can companies ensure all teams, especially non-engineering roles, feel equally valued?

Authentically believe in the equal importance of all teams, highlight their contributions in meetings, offer cross-functional training (e.g., 'Sales 101' for engineers), and facilitate interactions like 'ride-alongs' for engineers with support teams.

What is the 'no jerks' policy and how is it applied in hiring?

A strict 'no jerks' policy involves looking for humility and respect during the hiring process. This includes asking about how candidates handle feedback, evaluating their interactions with various team members (including receptionists and junior staff), and discussing D&I values.

What are practical ways to improve communication and feedback within a team?

Implement trainings on nonviolent or compassionate communication and consider personality assessments like 'Colors' to help team members understand individual differences. Founders should also model open feedback and create safe channels for addressing issues.

What advice do you have for founders regarding self-care and leadership?

Founders must prioritize self-care, including sleep, exercise, and breaks, to avoid burnout, which hinders effective culture leadership. Being genuinely generous and caring for your people is essential and requires you to be well yourself.

Key Moments

Claire McDonnell and Jennifer Kim on Building an Inclusive Company Culture

Y Combinator

Science & Technology6 min read45 min video

Apr 20, 2018|3,305 views|36|3

YC Y Combinator Claire McDonnell Jennifer Kim Kat Manalac Podcast Interview D&I Diversity Inclusion Culture Diversity and Inclusion

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Key Moments

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TL;DR

Building inclusive company culture involves intentional daily actions focusing on respect, fairness, and mitigating biases.

Key Insights

Company culture encompasses hiring, decision-making, and team energy, extendin beyond superficial perks.

An inclusive culture fosters trust, fairness, and psychological safety, crucial for startup survival and growth.

Intentional focus on culture from day one builds good habits and provides a competitive advantage in recruiting and retention.

Mitigating unchecked biases, particularly around credit and blame, is key to an equitable workplace.

Valuing all teams equally, not just engineering, prevents perpetuating societal biases.

Implementing 'no jerks' policies and evaluating candidates across various team interactions is vital.

THE SIGNIFICANCE OF COMPANY CULTURE

Company culture is often discussed as a nebulous concept, yet it profoundly impacts a company's long-term success. Early research, like a 1992 HBS study, demonstrated that companies with strong cultures significantly outperformed others in employment and revenue growth. In the current landscape, increased attention on culture stems from both positive examples and cautionary tales, like Uber. Culture isn't merely about visible perks like ping-pong tables; it encompasses how a team hires, makes decisions, perceives its environment, and treats its members. Recognizing culture as a critical skill, akin to sales or marketing, is essential for founders.

CULTURE AS A FOUNDATION FOR STARTUP SURVIVAL

Investing in company culture from the outset is not a distraction from business priorities but a vital strategy for survival, especially for early-stage startups facing constant existential threats. Building a team where members trust each other, feel treated fairly, and are collectively committed creates resilience. This foundation allows teams to navigate challenges more effectively. While mistakes are inevitable, founders who intentionally invest in culture and strive to minimize errors are more likely to foster a sustainable and thriving organization. Daily, small investments in culture yield significant long-term benefits.

BENEFITS OF AN INTENTIONAL CULTURE

The privilege of founding or joining an early-stage company lies in the opportunity to shape a new community. An intentional culture fosters an environment where individuals feel respected and valued, leading to greater job satisfaction and a stronger sense of belonging. This translates into tangible benefits such as improved recruiting, as satisfied employees become advocates, and enhanced retention, as people feel connected to their work and colleagues. Companies that prioritize culture often see lower attrition rates because employees choose to stay due to their connection with the team and mission, seeing it as a rare and valuable asset in competitive markets.

MITIGATING BIASES AND ENSURING FAIRNESS

A critical aspect of building an inclusive culture is actively checking and mitigating personal biases. This involves creating mechanisms for self-reflection and allowing colleagues to challenge these biases. A 'no blame' button philosophy, where the focus is on solving problems rather than assigning fault, is crucial. Conversely, actively amplifying credit for accomplishments is equally important, especially for underrepresented groups who may receive less recognition. Practices like the 'amplification' strategy, where one person repeats and credits another's idea, and regular acknowledgments of good work in company-wide meetings, help ensure equitable recognition across teams.

CHAMPIONING ALL TEAMS AND FUNCTIONS

In Silicon Valley, there's often a tendency to over-prioritize engineering or sales teams, which can inadvertently perpetuate societal biases related to gender and race. It's essential to recognize that all teams contribute equally to a company's success. This requires founders to genuinely believe in the value of every role and to actively demonstrate this through communication and recognition. Initiatives like cross-functional training, 'ride-alongs' where employees experience different roles, and ensuring new hires meet individuals from all departments help build mutual respect and understanding across the organization.

IMPLEMENTING A 'NO JERKS' POLICY AND PRACTICAL TACTICS

Establishing a firm 'no jerks' policy is fundamental to maintaining a respectful workplace. This involves looking for humility and respect throughout the hiring process, evaluating how candidates interact with people at all levels, and seeking feedback on how candidates handle constructive criticism. It's also crucial to be mindful of subtle cues, such as a candidate's eye contact or interaction style with more junior team members, which can reveal underlying arrogance. Leveraging tools like interview debriefs and structured feedback forms can help synthesize observations and make more informed hiring decisions, ensuring a positive cultural fit.

FOSTERING EFFECTIVE FEEDBACK AND COMMUNICATION

Creating a culture where feedback is openly exchanged and uncomfortable conversations can occur respectfully is an ongoing challenge. Diversity and inclusion training can equip employees with the skills to speak up and raise concerns appropriately. Modeling this behavior, particularly from founders and leadership, is paramount. Additionally, investing in communication skills, such as nonviolent or compassionate communication, provides a framework for empathy and self-expression, reducing misunderstandings. Personality assessments like 'colors' can also offer a common language to understand and appreciate individual communication style differences.

LEARNING FROM MISTAKES AND IMPROVING ONBOARDING

Founders and leaders must be open about their own mistakes to create a safe space for others to do the same. For instance, overlooking the need for a mother's room at a large conference highlights how a lack of diverse perspectives can lead to oversight. Similarly, the challenge of being both a supervisor and HR contact in a small team can be addressed by clearly offering alternative confidential resources. Recognizing that team members may feel confused or uncertain about expectations, founders should invest in writing down processes, explicit communication, and comprehensive onboarding materials to clarify roles and company culture.

RESOURCES FOR CULTURAL DEVELOPMENT

Several resources can aid founders in building a strong culture and DNI initiatives. Jennifer Kim's '50 Ideas for Workplace DNI' offers practical, implementable suggestions for early-stage companies. Facebook's 'Managing Bias' online training and resources from organizations like The Founders Commit, Project Include, and First Round Review provide valuable frameworks and actionable advice. These resources help demystify complex topics and offer guidance on hiring, bias mitigation, and fostering an inclusive environment, making the journey more accessible and effective.

ADDRESSING INTERRUPTIONS AND RAISING THE TIDE

Interruptions in meetings is a subtle yet significant issue that can perpetuate power dynamics and exclude voices. Assigning an 'interruption police' or simply reminding participants to be mindful can help. Understanding Diversity and Inclusion is fundamentally about recognizing systemic inequalities and empowering perceptive individuals. By paying attention to these nuances and implementing targeted programs, companies can create a 'rising tide' effect, where improvements benefit everyone, leading to more sustainable and equitable company cultures. The goal is to build better companies collectively, where all employees thrive.

BECOMING A BETTER CULTURE LEADER

Developing into a strong culture leader requires self-care and a genuine commitment to one's team. Founders and leaders must prioritize their well-being, including adequate rest and breaks, to avoid burnout, which hinders thoughtful culture-building. Embodying generosity and deep care for people is paramount, as employees can sense authenticity. Beyond personal well-being, leaders should actively learn about DNI, share their journey, and invite their teams into the conversation. This openness demonstrates commitment and encourages collective growth, fostering a shared responsibility for cultivating a positive and inclusive workplace.

EMPOWERING TEAM MEMBERS AS LEADERS

A crucial aspect of building a strong, inclusive culture is empowering team members to become leaders in this endeavor. Founders should identify and support individuals who demonstrate a passion for DNI and culture-building, granting them autonomy and influence. This delegation not only shares the burden but also fosters a sense of ownership and collective leadership. When founders are authentic about their values and empower others, it can create a magical, multiplicative effect, strengthening the culture even when leadership is stretched thin. This distributed leadership ensures the company's cultural values are consistently reinforced and advanced.

Mentioned in This Episode

●Software & Apps

●Companies

●Organizations

●Concepts

●People Referenced

Building and Maintaining an Inclusive Company Culture: A Founder's Guide

Practical takeaways from this episode

Do This

Invest in culture daily through small, consistent actions.

Focus on how you hire, make decisions, and promote people, not just perks like ping-pong tables.

Check and mitigate unchecked biases, especially around credit and blame.

Amplify credit where it's due; acknowledge and celebrate good work across all teams.

Ensure all teams, not just engineering, feel respected, celebrated, and equally valued.

Implement a 'no jerks' policy and hire for humility and respect.

Assemble diverse interview panels and pay attention to how candidates interact with all team members.

Encourage and model open, respectful feedback, even on uncomfortable topics.

Invest in communication skills and emotional intelligence training.

Be honest and open about founder mistakes and blind spots.

Write down policies and expectations and invest in clear onboarding.

Address interruptions in meetings to mitigate power dynamics.

Prioritize founder self-care (sleep, breaks, friends/family) to avoid burnout.

Show you are learning about D&I and encourage your team to do the same.

Empower team members to take on leadership roles in building culture.

Articulate clearly 'why' you care about culture and D&I.

Avoid This

Don't mistake surface-level perks (like ping-pong tables) for true culture.

Don't fall into scapegoating or blaming patterns when mistakes occur.

Don't let biases run unchecked in hiring and promotions.

Don't perpetuate societal biases by valuing certain teams (e.g., engineering) over others.

Don't overlook rudeness or arrogance in candidates, even across different levels.

Don't avoid having difficult or uncomfortable conversations about feedback and D&I.

Don't assume culture and D&I are someone else's problem or a later-stage concern.

Don't neglect the importance of a mother's room or accommodations for caregivers.

Don't leave people guessing about expectations or unclear on processes.

Don't rely solely on founders to be the sole point of contact for all issues.

Don't forget the impact of your own burnout on your ability to lead culture.

Don't hesitate to share resources and start conversations about D&I.

Common Questions

Company culture is crucial from day one because it impacts long-term economic performance, revenue growth, and employee retention. Intentionally building an inclusive culture can insulate a startup against existential threats by fostering trust and fairness among team members.

Topics

Business & Entrepreneurship Society & Philosophy Company Culture Hiring Practices Startup Leadership Team-building Diversity And Inclusion Employee Retention Inclusive Workplace

Mentioned in this video

Companies

Airbnb

Mentioned as a successful later-stage company whose founders emphasize building good company culture, and as an example of a company with many culture initiatives.

True Link

A tech-enabled financial services company for older adults, led by Claire McDonnell. It's highlighted for its intentional culture and DNI initiatives, with a diverse leadership team.

GitHub

Mentioned as an example of a tool with a 'blame' feature that shows where code issues originated, used as an analogy for a 'no blame button' culture.

Uber

Cited as a negative example of a company with significant cultural issues that garnered media attention.

Facebook

Mentioned for its online training resource called 'Managing Bias', useful for inclusion training and adapting for company use.

Dropbox

Mentioned as a successful later-stage company whose founders emphasize building good company culture.

Lever

A company that builds recruiting software, mentioned for its nearly 50/50 male/female employee split and successful DNI program built by Jennifer Kim.

Organizations

Cap Intel Capital's Founders Commitment

A pledge for early-stage startups to take meaningful actions related to diversity and inclusion, providing resources for such initiatives.

Project Include

A non-profit organization founded by women with extensive Silicon Valley experience, offering recommendations on hiring, culture, and measurement for building a strong foundation.

Cotter Institute

Mentioned alongside HBS for a 1992 study detailing the corporate cultures of 200 companies and their performance.

Obama White House

Mentioned as the source of a story about the 'amplification' strategy used by women to gain credit for their ideas in meetings.

People

Claire McDonnell

Co-founder and founder of True Link, a tech-enabled financial services company for older adults. Discusses building inclusive company culture and DNI.

Jennifer Kim

One of the first employees at Lever, built their DNI program, and authored resources on DNI and culture for early-stage startups. Acted as a mentor figure in the discussion.

Concepts

Nonviolent Communication

A communication framework rooted in empathy and self-expression, also referred to as 'compassionate communication', recommended for its ability to reduce misunderstandings.

Software & Apps

Colors

A personality assessment used at Lever to help employees understand individual and communication style differences, fostering tolerance for diverse perspectives.

First Round Review

A platform mentioned for its extensive collection of articles on culture and inclusion written by accomplished professionals.