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Masters of ScaleHubSpot's Dharmesh Shah: Build your culture like a product | Masters of Scale
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WHAT IT’S REALLY ABOUT
HubSpot's Dharmesh Shah Explains Building Company Culture Like a Product
- Dharmesh Shah reluctantly took on culture after co-founder Brian Halligan was pressed on it by a CEO peer group, and he met harsh employee skepticism by applying his product design and coding mindset.
- He launched a narrowly scoped 16-slide culture code, gathered feedback through surveys, focus groups and one-on-ones, and published it publicly, and it has grown to 128 slides since 2013.
- Reid Hoffman and Shah walk through four components of the culture code: solving for the customer, extreme transparency, taking bold risks, and strength from diversity.
- Shah argues that culture is never finished, so founders should evolve it rather than preserve their startup culture, since a company builds one product for customers and another for its people.
IDEAS WORTH REMEMBERING
5 ideasSkepticism about culture is a feedback signal, not a dead end.
Employees' harsh reaction to Shah's first email revealed they saw culture talk as posters and coffee mugs, which gave him specific insight into what to avoid.
Start narrow and iterate publicly.
Shah's first version answered just one question about what attributes make people successful and happy at HubSpot, and feedback then pushed it to cover how decisions are made.
Customer pain should be felt directly, not just reported.
HubSpot's exec team holds a monthly meeting with a live customer, often an unhappy one, and engineers are pushed to talk to customers, so the team experiences the pain together.
Putting the customer first means the collective of customers.
Shah says this isn't 'the customer is always right'; individual requests may be declined in favor of what raises value for all customers.
Protect core cultural values even when convention says otherwise.
To keep transparency intact at the 2014 IPO, HubSpot named every employee a designated insider, since limiting the list would have meant breaking a cultural value.
WORDS WORTH SAVING
5 quotesThere are two products every company builds. One is for their customers, and the other product is the one they build for their people. No product is ever done. That means culture is never done.
— Dharmesh Shah
Everybody in the company has a voice but not necessarily a vote. We don't make decisions based on consensus. Some middle road that tries to appease everyone is probably the worst of the possible options.
— Dharmesh Shah
Lots of companies like to say that they hire for a culture fit. And my personal belief on this is that in order for you to be permitted to use that phrase, you have to be able to describe and define and show someone what your culture is.
— Dharmesh Shah
The mistake so many entrepreneurs make is they think their job is to preserve their startup culture, and I think that's misguided.
— Dharmesh Shah
Feedback is a gift. You do have to change the culture over time in order for it to continue to deliver the value for which it was created
— Dharmesh Shah
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SPEAKERS
Dharmesh Shah
guestCo-founder and CTO of HubSpot, known for building and codifying company culture through HubSpot’s Culture Code.
Reid Hoffman
hostCo-founder of LinkedIn and partner at Greylock; host of Masters of Scale.
High quality AI-generated summary created from speaker-labeled transcript.