{"id":275,"date":"2013-07-17T23:52:01","date_gmt":"2013-07-17T23:52:01","guid":{"rendered":"http:\/\/scqa.hult.edu\/en\/news\/hult-labs\/2013\/july\/for-some-ceos-company-culture-isnt-just-a-thingits-everything\/"},"modified":"2026-03-23T13:16:40","modified_gmt":"2026-03-23T13:16:40","slug":"for-some-ceos-company-culture-isnt-just-a-thing-its-everything","status":"publish","type":"post","link":"https:\/\/www.hult.edu\/blog\/for-some-ceos-company-culture-isnt-just-a-thing-its-everything\/","title":{"rendered":"For Some CEOs, Company Culture Isn\u2019t Just a Thing\u2014It\u2019s Everything"},"content":{"rendered":"

Tony Hsieh (pronounced Shay), the CEO of Zappos, has been ubiquitously quoted<\/a> as saying that \u201cif employees are bad for our culture, we\u2019ll fire them for that reason alone.\u201d Sound harsh or even confusing? Just wait; there\u2019s more. Hsieh has said that employees who are bad for company culture aren\u2019t necessarily bad at their jobs. So even if employees are high-performing \u201csuperstars,\u201d yet don\u2019t culturally connect, they are still asked to leave. Why would Zappos give up great employees (or not hire them in the first place; more on that below) just because they may not be the best cultural fit with the company? It\u2019s pretty simple, according to Hsieh: \u201cAt Zappos, culture is the number one priority for the company.\u201d Full stop. Culture over profits?\u00a0 Culture over stock price?\u00a0 Does this man need a management consultant to straighten him out?<\/p>\n

In a word: no. A lot of leaders talk about the importance of culture in the workplace, and how it makes all the difference in motivating and inspiring people to consistently perform at the top of their game. And if Zappos\u2019 very own company performance is any indication of what happens when the top management stresses culture above all else, then the results speak for themselves: Zappos has been pulling in annual sales of over $1 billion dollars. Here\u2019s another Hsieh quote that links a great culture with great performance: \u201cOur whole belief is that if you get the culture right, most of the other stuff like delivering great customer service or building a long-term enduring brand will just happen naturally on its own.\u201d How does he know this?<\/p>\n

After Hsieh’s experiences<\/a> in the corporate world, and at a startup he co-founded, where rapid growth led to the hiring of people who weren\u2019t a fit with the original culture, he found it challenging to get up in the morning and go to work. So at Zappos, job candidates are rigorously screened\u2014both for skill and cultural fit. The main company goal is to provide the best customer service possible, and there are several examples that show the proof is in the pudding. Zach Bulygo, a blogger for KISSmetrics<\/a>, lists a few: \u201cThere are dozens of stories about their outstanding customer service<\/a>, including delivering flowers to a customer whose mom passed away and talking to a customer for over 8 hours (a record that now has been broken).\u201d It\u2019s no wonder that Zappos customers are very loyal, and subsequently, are repeat buyers (Bulygo cites a rate of 75%).<\/p>\n

In his article \u201cThe Real Meaning of Corporate Culture<\/a>,\u201d Josh Patrick writes: \u201cCulture always starts with the owner. In companies where culture is well defined, it is reflected in every hiring decision. But it can be complicated. I see problems when companies do not pay attention to the traits that make people successful in their companies.\u201d So how do you begin to define a company\u2019s culture\u2014or establish one in the first place? Patrick recommends that company leaders write down the main traits all employees should possess. In the interview process, when leaders are looking for their top traits in potential employees, the trick is to ask the right questions and listen very carefully to what interviewees have to say. \u201cThere is an art in searching for fit,\u201d writes Patrick. \u201cDuring the interview process, it\u2019s important to give potential employees the opportunity to tell you how they live the traits you\u2019re looking for\u2026you might ask candidates to talk about a problem they have solved. Precisely how they solved the problem isn\u2019t as important as their attitude about the problem.\u201d<\/p>\n

But as a company begins to grow, how does it preserve the culture its original leaders endeavored to establish in the first place? Bulygo culls an insight from Hsieh\u2019s book Delivering Happiness<\/em>: it\u2019s critical that the CEO (and other first generation leaders) directly participate in hiring new employees to make sure that the \u201cright\u201d people are being brought on board. As the business grows, top leaders don\u2019t have to be involved in the hiring process\u2014and this is obviously impossible as a company scales\u2014because they would have already carefully vetted and hired (and trained) a new generation of employees who have bought into top management\u2019s priority to hire for cultural fit. In essence, the seeds of the corporate culture have been planted.<\/p>\n

But it\u2019s not just enough for a leader to talk about how and why company culture is integral to a business; it\u2019s also important to formalize it through clearly stated values. Zappos, for example, has 10 core values that all employees know. But there is no set of \u201cone size fits all\u201d values\u2014they have to be unique to each company. Bulygo quotes Hsieh\u2019s thoughts on this: \u201cone of the really interesting things I found from the research is that it actually doesn\u2019t matter what your values are, what matters is that you have them and that you align the organization around them. And the power actually comes from the alignment, not from the actual values.\u201d<\/p>\n

If you are in the process of interviewing for a new job, keep in mind that if you want to be in an environment where you are set up for success, the culture of the company\u2014whether it\u2019s a large, established corporation, or a little seedling of a startup\u2014is pivotal. Of course skills matter, and you can be sure that a company will vet you for those first. But as you wind your way through the interview process, it\u2019s also important for you to interview your interviewers to get as strong a sense as possible if the company is truly right for you. Do you want work\/life balance? Do you want to dedicate most of your waking life to a company that provides a service or product you believe in? Do you work better alone, or do you thrive on teams? The culture of a company has the answers, and it should matter to you\u2014because it matters the most to leaders who emphasize culture above all else.<\/p>\n

Picture courtesy of Silicon Prairie News<\/a>.<\/em><\/p>\n

Grow your leadership capabilities with an MBA in international business<\/a> at Hult. To learn more, take a look at our blog PUT The importance of authenticity and decision-making in leadership<\/a>, or give your career a boost with our Masters in International Business<\/a>. Download a brochure or get in touch today to find out how Hult can help you to learn about the business world, the future, and yourself.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tony Hsieh (pronounced Shay), the CEO of Zappos, has been ubiquitously quoted as saying that \u201cif employees are bad for our culture, we\u2019ll fire them for that reason alone.\u201d Sound…<\/p>\n","protected":false},"author":4,"featured_media":1891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[24],"tags":[],"yoast_head":"\nFor Some CEOs, Company Culture Isn\u2019t Just a Thing\u2014It\u2019s Everything | Hult International Business School<\/title>\n<meta name=\"description\" content=\"Tony Hsieh (pronounced Shay), the CEO of Zappos, has been ubiquitously quoted as saying that \u201cif employees are bad for our culture, we\u2019ll fire them for that reason alone.\u201d Sound harsh or even confusing? Just wait; there\u2019s more. 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