Cover of the summary of “What You Do Is Who You Are”

Book summary “What You Do Is Who You Are”: summary

Ben Horowitz

3,760 words · 21 min read

You want to build a high-performing organization, but your carefully crafted mission statements and corporate values fail to guide daily employee behavior. You watch as accidental culture takes root, driving decisions that contradict everything you hope to achieve.

Summary text

3,760 words · 21 min read

Introduction

You want to build a high-performing organization, but your carefully crafted mission statements and corporate values fail to guide daily employee behavior. You watch as accidental culture takes root, driving decisions that contradict everything you hope to achieve. Traditional leadership advice tells you to inspire people with abstract principles, yet your team remains lost when difficult choices arise under pressure.

An organization's culture is defined not by mission statements, but by the actual behaviors and hard decisions made by its leaders.

Ben Horowitz demonstrates that you build a lasting culture by studying extreme historical models of leadership, from Saint-Domingue revolutionaries to ancient samurai. You will learn how to design shock rules, enforce strict virtues, and align your personal traits with strategic needs.

Consider these questions as you read:

  • How do you turn vague values into enforceable operational rules?
  • What historical strategies can you adapt to reshape a broken corporate culture?
  • How do you ensure your daily actions match the organization you want to build?

1. Culture and Leadership Fundamentals

Your corporate culture is not defined by perks, mission statements, or your personal charm as a CEO. Culture consists of the hidden assumptions employees use to make everyday decisions when leadership is not present.

An organization's culture is defined by actual behaviors, hard decisions, and the hidden assumptions employees use when leadership is not present.

Ben Horowitz spent 18 years trying to figure out what culture actually is. If you fail to methodically set the culture, the majority of it becomes accidental or a mistake.

At LoudCloud, a middle manager named Thorston was compulsively lying. This behavior went unchecked and he was promoted, which inadvertently made lying culturally acceptable.

To build an effective culture without falling for survivorship bias, you must study extreme historical figures who mastered organizational behavior under immense pressure:

  • Toussaint Louverture and the Haitian slave revolt
  • Bushido and the samurai code ruling Japan for seven hundred years
  • Genghis Khan's inclusive meritocracy in the Mongol empire
  • Shaka Senghor's transformation of a prison gang

Culture operates as the ultimate strong force in business and society. In the 1970s decade, impoverished Bronx youths created hip-hop and its candor-driven hustler's mentality. DJs bypassed supply-chain limitations on obscure breakbeat records by having supplier Lenny Roberts press independent records containing only the coveted drum and bass breakdowns.

Substandard behavior left unaddressed immediately establishes a new cultural standard. You must maintain constant vigilance because the target is always moving.

Ben Horowitz sold his company Opsware to Hewlett-Packard in 2007 for $1.6 billion before reflecting deeply on historical cultures.

2. Toussaint Louverture Applied

Leaders can systematically transform organizational culture by preserving historical strengths, instituting shocking rules, and making ethical boundaries explicit.

Toussaint Louverture reprogrammed the abject and suspicious culture of enslaved people in Saint-Domingue into a formidable military and diplomatic force that defeated Spain, Britain, and France. Born into slavery on the Bréda estate, Louverture educated himself through his master's library, became a master horseman, and realized that culture rather than skin color determined behavior. He commanded an army that inflicted more casualties on Napoleon than Napoleon suffered at Waterloo and defeated three European superpowers. By 1789, the population of slaves in Saint-Domingue reached 465,000. Twelve thousand of twenty,000 British soldiers died or were buried on the island before their departure. Following his losses in Saint-Domingue, Napoleon sold Louisiana and parts of fourteen additional states for $15 million. France later forced Haiti to pay cruel reparations equivalent to $21 billion in modern value.

You can systematically transform an organization's culture by applying seven concrete cultural tactics demonstrated by Louverture. He integrated historical strengths with new rules and structures. You must keep what works, institute shocking rules, dress your team for success, incorporate outside leadership, demonstrate priorities through difficult decisions, walk the talk, and make ethics explicit.

When you take over a struggling organization, preserve and build upon the company's original cultural strengths rather than purging the entire past. While predecessors often try to wipe out the old culture completely, effective leaders recognize historical core strengths as the necessary foundation for a new mission. When Steve Jobs returned to Apple in 1997, he stopped licensing Mac OS to horizontal providers and killed the majority of peripheral products to refocus entirely on integrated hardware and software design. Apple's market share stood at 13 percent when Jobs was fired in 1985 and dropped to 3.3 percent when he returned in 1997, leaving the company with approximately 90 days before insolvency.

To set a powerful and lasting culture, create shocking rules that provoke questions and force daily behavioral adjustments. Rules that effectively shape culture must be memorable, provoke the question why, have straightforward cultural impacts, and be encountered almost daily by employees. Tom Coughlin instituted Coughlin Time for the New York Giants between 2004 and 2015 by starting every meeting five minutes early and fining players one thousand dollars for being late. After this rule was challenged, the Giants lost to the Eagles with a score of 31-17.

  • Make the rule memorable so people do not forget the culture.
  • Ensure the rule raises the question 'Why' so that everyone asks if you are serious.
  • Keep its cultural impact straightforward so the answer clearly explains the underlying concept.
  • Ensure people encounter the rule almost daily rather than once a year.

In business partnerships, one-sided rules can replace abstract win-win concepts by explicitly granting a partner the mathematical margin. Because abstract win-win goals are easily twisted by negotiators and lack behavioral guidelines, setting a deliberate imbalance gives business development teams permission to genuinely prioritize their partners. Diane Greene cofounded VMware in 1998 and established a 49/51 partnership rule where her company took forty-nine percent, which built trust and enabled powerful partnerships with Intel, Dell, HP, and IBM while the company achieved a market capitalization of $60 billion.

Banning PowerPoint presentations and requiring written memos forces deeper detail and accelerates data absorption in meetings. Reading structured information allows human brains to process complex data much faster and more effectively than listening to a verbal pitch, leading to facts-based decision making. Amazon replaced PowerPoint presentations with silent reading of short written documents at the beginning of meetings to enforce thoughtful preparation and efficiency through its dive deep principle.

  • Prepare a short written document explaining the issues and your position before convening a meeting.
  • Spend the beginning of the meeting silently reading the document so everyone is up to speed.
  • Proceed to discussion only after all participants have absorbed the shared background information.

Simplifying bureaucratic policies to broad cultural principles forces managers to actively engage in human communication and manage their teams. Extensive manuals remove the need for managers to talk to their employees, whereas minimal guidelines require them to build real relationships and exercise situational judgment. In 2014, Mary Barra became CEO of General Motors and reduced the ten-page dress code to two words—dress appropriately—forcing managers to communicate directly with employees regarding sensitive issues.

  • Reduce detailed employee manual restrictions into a minimal guiding principle like dress appropriately.
  • Require managers to discuss specific contextual exceptions directly with their teams rather than relying on written rules.

Shifting a company's strategic direction requires hiring outside leaders whose cultural misfitness brings the exact urgency and discipline needed to survive. When transitioning a business into a completely different market, existing cordial cultures often lack the operational philosophy and competitive execution required, necessitating foreign leadership despite internal friction. Ben Horowitz hired Mark Cranney as head of sales at Opsware, bringing in a rigorous Mormon Republican from Boston to clash with the easygoing culture and scale the win rate from the 40s to the mid-80s in percent. When Cranney was hired, Opsware had a valuation of $50 million, which grew to $1.65 billion four years later when the company was sold to Hewlett-Packard.

  • Train every salesperson on the four C's: competence, confidence, courage, and conviction.
  • Qualify buyers by validating needs, defining buying criteria, setting traps for competition, and securing sign-offs from technical and economic buyers.

Leaders must take dramatic, painful actions to prove their true priorities when shifting a company into a new core business model. Telling a team that a new direction is important fails if daily meetings continue to prioritize legacy operations; leaders must structurally remove legacy leaders from key discussions to force a cultural hyperleap. Reed Hastings worked at Symbolics Inc in 1985, started Pure Software in 1991, and founded Netflix while selling Pure Software in 1997. Once Netflix committed to building its future around streaming, Hastings kicked all DVD executives out of his weekly management meeting, running his streaming experiment in Canada in 2010 while Blockbuster went bankrupt on the way to a $150 billion market cap.

A leader's actual behavior overrides their verbal instructions because employees imitate what leaders do rather than what they say. Even when formal policies and security protocols are established, inconsistent personal habits by top executives set the invisible force that drives organizational behavior. John Podesta fell for a phishing attack because he used his personal email for confidential campaign business, mirroring Hillary Clinton's use of a personal server despite strict campaign security rules and a warning visit from FBI agents in March 2015.

  • Require two-factor authentication on all sensitive email accounts.
  • Train every staff member on phishing attacks and verify they never click unknown links.

Unchecked hypercompetitiveness creates severe ethical bugs in corporate culture, requiring leaders to explicitly spell out boundaries and moral rules. When performance is evaluated solely based on winning, ethics are stripped from the culture, leading to legal and moral transgressions unless specific forbidden actions are explicitly detailed. Travis Kalanick founded Uber in 2009 and designed the company around extreme competitiveness and winning through the Uberversity wolf culture. By 2016, Uber was valued at $66 billion, but the environment generated severe side effects like Hell, where site-reliability engineer Susan Fowler encountered ignored sexual harassment complaints and secret tools used to track competitors in 2015.

3. The Way of the Warrior

Culture must be built on virtues rather than values, because a value is merely a belief whereas a virtue is a belief actively pursued through daily actions.

The samurai defined their culture as a code of action and a system of virtues rather than abstract values. Corporate efforts to establish values often fail because they emphasize beliefs instead of actions. Ultimately, what people do defines who you are.

Ben Horowitz notes how the samurai oath and code were entirely oriented toward active service, grooming, and rigorous readiness.

Keeping death or failure in mind at all times allows you and your organization to accept the worst-case scenario and build a meticulous culture. The samurai practiced meditating on death in gory detail every morning to strip away fear of the worst-case outcome. When your company faces a crisis or bankruptcy, accepting the worst removes fear and allows leadership to focus on what matters.

Samurai texts like Hagakure and Bushido Shoshinshu instruct warriors to meditate on being pierced by weapons, falling from cliffs, or dropping dead unexpectedly.

  • Begin each day pondering death as its climax.
  • Each morning, with a calm mind, conjure images in your head of your last moments.
  • See yourself being pierced by bow and arrow, gun, sword, or spear, or being swept away by a giant wave, vaulting into a fiery inferno, taking a lightning strike, being shaken to death in a great earthquake, falling hundreds of feet from a high cliff top, succumbing to a terminal illness, or just dropping dead unexpectedly.
  • Every morning, be sure to meditate yourself into a trance of death.

Enforcing a tangible penalty for small behavioral lapses can effectively embed respect and discipline into an organizational culture. To reinforce respect for entrepreneurs and ensure rigorous time management, Andreessen Horowitz instituted a strict fine for being late to meetings, which forced partners to plan and execute with high discipline.

At Andreessen Horowitz, being late for a meeting with an entrepreneur incurred a fine of ten dollars per minute. This generated less than one thousand dollars in total fines collected by Andreessen Horowitz.

Creating vivid, memorable lore allows you to radically shift a debating or sluggish corporate culture into an action-oriented one. When Jim Barksdale became CEO of Netscape in 1995, he replaced an endless debate club culture with stark, memorable rules about killing problems quickly and never revisiting settled decisions.

Jim Barksdale introduced the three rules of snakes at a company all-hands meeting, leading to rapid development of foundational internet technologies.

  • If you see a snake, don't call committees, don't call your buddies, don't form a team, don't get a meeting together, just kill the snake.
  • Don't go back and play with dead snakes.
  • Understand that all opportunities start out looking like snakes.

4. Inclusion in the Modern World

True inclusion requires strict meritocracy, universal demographic inclusion, and bridging the gap between executives and front-line workers.

Genghis Khan built the most effective military and political empire in history by founding his culture on strict meritocracy, mutual loyalty, and radical inclusion. Rather than relying on hereditary kinship and aristocratic titles, Temujin executed conquered aristocrats and integrated ordinary soldiers and skilled foreigners into his army as complete equals. He subdued 12 million square miles with an army of 100,000 men and created an empire that continued growing for 150 years after his death.

True civic citizenship and deep loyalty are forged when diverse people transcend ethnic, religious, and kinship divides through a shared personal commitment. When pursued by Ong Khan, Temujin and 19 commanders from nine different tribes and various religions drank water from the Baljuna River and swore lifelong allegiance to one another. The 19 men at the Baljuna River included Merkit, Khitan, and Kereyid tribesmen, as well as shamanists, Christians, Muslims, and Buddhists.

To succeed as a minority in a corporate environment, you must reject the victim mindset of attending pity parties and view every new room as an opportunity to bring unique value. Don Thompson rose from a difficult childhood and early instances of racism to become CEO of McDonald's by treating meetings as competitive games where he brought valuable, novel assets rather than assuming everyone was an enemy. He started from engineering and rose through strategic planning and regional management roles.

  • Don't attend pity parties. And definitely don't host them.
  • Don't turn down anything except your collar.

True inclusion must be universal and encompass every demographic, including the majority, to ensure that the entire organization feels seen and valued. As CEO of McDonald's, Don Thompson created an Inclusion Network for white men after they asked who was thinking about them. When existing networks for women, African-Americans, Latinos, and the LGBT community objected, Thompson explained that true inclusivity requires including white men too.

To dismantle a corporate caste system, you must bridge the communication gap between white-collar executives and blue-collar front-line workers by siding with the front lines. Maggie Wilderotter ran Frontier Communications for 11 years, turning a sleepy regional company into a national broadband provider with over $10 billion in revenues while the union never went on strike. She took over the 15,000 markets served by the company in 2004 when annual revenue stood at $3 billion.

  • Go on a listening tour of the company and far-off markets to find out how things are actually run and who the go-to people are.
  • Ask employees what they love about the company and what they hate.
  • Dismantle the hierarchy and close the communications gap between white- and blue-collar workers.
  • Arbitrarily take the side of the front line over leadership in every dispute to give workers a voice.

Hiring people on the basis of demographic quotas defeats inclusion programs because it leads to seeing only the package rather than the actual person and their unique skills. Founders and hiring managers naturally test for traits they possess themselves, causing unconscious bias. Instead of creating parallel tokenistic hiring tracks, you must expand talent networks and refine interview criteria to test for specific core competencies. At Andreessen Horowitz, testing for helpfulness and relationship-building helped uncover diverse talent pools among the 172 total employees referenced in the text.

  • Broaden the talent network by holding events with prominent minority leaders and reaching out to targeted tech organizations.
  • Require managers to have people from different talent pools review hiring criteria and suggest alternative qualities and tests.
  • Ensure interview teams come from a range of backgrounds to better see the complete candidate.

5. Be Yourself, Design Your Culture

Adopting a persona or copying another successful leader destroys your mojo and credibility. If you try to be someone else, you will make contradictory decisions and lose trust.

Hakeem Olajuwon was consistent in private and public and became a true role model, whereas Charles Barkley maintained a dual personality and declared he was not a role model. Similarly, a CEO who blindly copies Jack Welch's rank-and-yank process creates a no-win bind when their own hiring standards are already extremely high.

Leaders must carefully identify their own personality flaws to avoid programming them into their company's culture.

If you have a detrimental personal habit, leading by example will inadvertently spread that flaw throughout the organization. You must actively set up rules and surround yourself with contrasting personalities to counterprogram natural weaknesses. Ben Horowitz recognized that his own willingness to engage in endless, unstructured conversation was a disadvantage in a fast-paced software company, though it worked in venture capital.

  • Surround yourself with people who have the opposite personality trait and want to finish conversations quickly.
  • Make a rule to cancel any meeting called without a tightly phrased written agenda and a desired outcome.
  • Announce to the company that you are committed to running meetings efficiently and force yourself to follow it.

Culture and strategy do not compete; rather, they must completely cohere for either to be effective. While Peter Drucker famously stated that culture eats strategy for breakfast, the author argues that neither eats the other. A company's cultural virtues must match its strategic needs, as not every virtue fits every business strategy.

  • Pick the virtues that will help your company accomplish its specific mission.

Genghis Khan's egalitarian culture fit his strategy of self-sufficient cavalry soldiers. Jeff Bezos built a culture of frugality to support Amazon's low-cost strategy, whereas frugality would have destroyed Apple's design-focused strategy. Companies of any significant size will naturally develop distinct subcultures across different functional divisions. Because distinct functions like engineering and sales require entirely different skill sets and personality types, cultural variations will emerge. Engineers value precision and must understand how code works to avoid bugs, whereas salespeople like Jack Bauer in 24 must interrogate buyers to extract the hidden truth because buyers are often liars.

Abstract values like playfulness or solidarity are difficult to measure in an interview. Stewart Butterfield of Slack improved his company by orienting culture around four specific, highly valuable attributes that work best in combination. Stewart Butterfield shifted away from vague original values and adopted four actionable employee traits learned from Suresh Khanna.

  • Look for candidates who are smart, meaning disposed toward learning and turning best practices into routines.
  • Look for candidates who are humble, having self-awareness and making people want them to succeed like Steph Curry.
  • Look for candidates who are hardworking, meaning disciplined, professional, focused, and gritty when at work.
  • Look for candidates who are collaborative, taking leadership from everywhere and sharing responsibility for team performance.

Who you hire determines your culture more than anything else. Companies can use dedicated roles or intense, unconventional interview questions to instantly test poise, courage, and cultural alignment under fire. Amazon uses a Bar Raiser who is not on the hiring team and focuses purely on cultural fit. At PTC, executive John McMahon tested sales candidates by asking what they would do if punched in the face.

The most vital element of any corporate culture is ensuring that employees feel their work matters and makes a difference. If a company rewards indifference or bogs employees down in bureaucracy, the culture will quickly rot. Management must ensure that pushing the company forward is actively rewarded rather than met with apathy. When Ben Horowitz managed an HP division after an acquisition, he found that brutal cost-cutting had left employees unable to get simple decisions made, leading to widespread indifference and 15,000 fewer chairs in the company than employees in its head count at HP due to absenteeism.

  • Promise employees that if they need a decision and cannot get one from their manager, they can send it directly to leadership to get a decision in one week.

According to bushido, culture is a set of actions rather than abstract beliefs. Employees will inevitably test leadership on stated virtues, and failing that test to save a deal or a quarter can permanently poison the company's culture. Todd McKinnon, CEO of Okta, walked away from a massive, company-saving deal with Sony rather than lying about a feature delivery date, choosing to risk the company instead of compromising his core cultural tenet of integrity after 7 missed forecasts in a row by Okta when it was struggling around three years in, on the way to a 15 billion dollars valuation as of the book's writing.

  • Ask yourself if your virtue is actionable and translates into specific behaviors.
  • Check if your virtue distinguishes your culture from other businesses in your field.
  • Before adopting a virtue, ask yourself if you are truly willing to pass the test when tested on it.

10 Key Ideas

  1. An organization's culture is defined by actual behaviors, hard decisions, and the hidden assumptions employees use when leadership is not present.
  2. Leaders can systematically transform organizational culture by preserving historical strengths, instituting shocking rules, and making ethical boundaries explicit.
  3. Culture must be built on virtues rather than values, because a value is merely a belief whereas a virtue is a belief actively pursued through daily actions.
  4. Keeping death or failure in mind at all times allows you and your organization to accept the worst-case scenario and build a meticulous culture.
  5. True inclusion requires strict meritocracy, universal demographic inclusion, and bridging the gap between executives and front-line workers.
  6. To succeed as a minority in a corporate environment, you must reject the victim mindset of attending pity parties and view every new room as an opportunity to bring unique value.
  7. Leaders must carefully identify their own personality flaws to avoid programming them into their company's culture.
  8. Culture and strategy do not compete; rather, they must completely cohere for either to be effective.
  9. Who you hire determines your culture more than anything else.
  10. The most vital element of any corporate culture is ensuring that employees feel their work matters and makes a difference.

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