Pawan Kumar

Creating a strong company culture is essential for long-term success, as highlighted by Brian Chesky, founder of Airbnb, and Alfred Lin, former COO of Zappos and current partner at Sequoia Capital. In their discussion, they outlined key strategies, challenges, and philosophies for fostering an enduring culture that aligns with the company’s mission and goals. The lecture is available here.

The Importance of Culture in Success

A strong company culture attracts and retains employees who align with the company’s mission and values. It serves as a filter, helping bring in people who believe in the vision and are passionate about the work. This alignment not only boosts team cohesion but also correlates with market success. Studies have shown that companies with strong cultures often outperform their peers. However, building this culture starts with leadership. Founders must define their personal values and use them to craft the company’s core principles, which should directly support its mission. For example, Zappos’ value “Deliver WOW through Service” exemplifies its commitment to extraordinary customer service.

Core values need depth—they shouldn’t just be buzzwords like “honesty” but rather actionable principles unique to the company. They guide the team toward prioritizing collective goals over individual ones and emphasize open communication. Culture is not an afterthought; it directly influences company outcomes such as financial performance, product quality, and innovation.

Hiring with Culture in Mind

Every hiring decision significantly impacts the company’s culture. Leaders must hire for culture fit and mission alignment, not just for technical skills or short-term goals. Early hires are especially critical as they shape the culture for future employees. At Airbnb, they sought individuals who believed in the mission to foster human connection and treated their work as a calling, not just a job. A unique hiring philosophy at Airbnb is to consider whether candidates would choose the role even if they only had ten years to live—an indicator of passion and long-term commitment.

Hiring for cultural fit requires rigorous evaluation. At Airbnb, separate interviewers focus solely on assessing cultural alignment, ensuring new hires embody and reinforce company values. In one notable example, Airbnb refused to acquire a competitor because of misaligned cultures, despite the potential strategic benefits. This commitment to culture has been a long-term competitive advantage for Airbnb, helping it build a passionate and mission-driven workforce.

Culture Is a Daily Practice

Building a great culture isn’t a one-time effort — it’s a daily habit. Much like maintaining physical fitness, neglecting culture leads to deterioration that requires significant effort to recover. Leaders must consistently reinforce culture through their actions and communication. Brian Chesky likened culture to parenting, noting that a company’s culture often reflects the relationship between its founders. Dysfunctional co-founder dynamics can lead to a dysfunctional company culture.

Airbnb’s approach included defining its core values early, even before hiring employees. This deliberate effort took six to seven months, underscoring the importance of setting a strong foundation. Maintaining culture also requires iteration, repetition, and setting a high bar for new hires to ensure alignment with the company’s principles.

Building for Long-Term Success

A great product alone is not enough for enduring success. Companies must also invest in building a great organization. This involves crafting a clear mission, unique values, and a distinct way of operating. While values remain constant, behaviors can adapt over time as the company grows. For instance, Airbnb’s early days were characterized by scrappiness, as evidenced by their creative funding strategies, such as selling collectible cereal to sustain operations. This resourcefulness became a core value, reminding the team of their humble beginnings and inspiring innovation.

Culture and Brand: Two Sides of the Same Coin

A company’s culture directly influences its brand. Employees who deeply believe in the mission become its strongest brand ambassadors. For Airbnb, this connection between culture and brand led to a shift in messaging from emphasizing cost savings to fostering human connection and belonging. Companies must focus on communicating their core values to build deeper relationships with customers, rather than solely promoting product features.

Operationalizing Culture Through User Experience

Culture also extends to user interactions. Airbnb obsessively prioritized user experience from the beginning, focusing on solving real pain points. For instance, when hosts struggled with low-quality photos, Airbnb personally provided professional photography services before automating the process. This hands-on approach exemplified their commitment to delivering value beyond technology.

Airbnb’s culture of excellence spans multiple domains, including technology, safety, regulation compliance, and branding. Their competitive edge lies in delivering unparalleled user experiences, balancing the complexities of being a digital platform that intersects with real-world experiences.

Final Thoughts

Building a great company culture takes time, effort, and consistent reinforcement. It may slow early progress but pays off in the long run by fostering employee engagement, driving innovation, and enhancing the brand. Whether you’re starting a new venture or refining an existing one, focus on defining unique values, hiring for mission alignment, and continuously living your culture through actions. As Airbnb and Zappos have shown, a strong culture is not just a “nice-to-have”; it’s a cornerstone of long-term success.