Does HubSpot Walk The Talk On Its Culture Code?

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Does HubSpot Walk The Talk On Its Culture Code?

 

A couple of weeks ago, HubSpot shared our culture code deck (http://CultureCode.com) — a document that describes what we believe and how we work. 

The presentation, despite being 150+ slides long and on a topic that doesn't involve celebrities, cat photos or currently trending topics has been remarkably well received. It has had over 340,000 views.  It's one of the most viewed presentations on slideshare in the past year. I've received many, many emails and tweets with positive comments about the culture code deck (thanks!)

Deck is included below, for your convenience, in case you haven't seen it yet.

 

describe the imageNow that the deck is out there and has garnered so much interest, I thought it might be valuable to dig into some of the core tenets of the HubSpot Culture Code and try to do an honest assessment of how well we live up to the tenets. Or, stated differently, how well do we "walk the talk"?  In the deck itself, when a particular tenet was more aspirational than descriptive, we tried to call it out.  (I think this candor is one of the reasons people like the deck). But the call-out doesn't always capture the degree to which we live up to the ideal, so we're double-clicking here.

So, here are the core tenets with a self-score on how well HubSpot lives up to the tenet. Of course, even this take is biased (I'm a founder, and all founders are naturally biased about their startups) and it's a qualitative judgment call. On my list of things to do is to see if we can make this more measurable. But, that's a topic for another day. 

1. We are as maniacal about our metrics as our mission.

Score: 9.5/10

Lets break this one down a bit.  First of all, we are very passionate about our mission to transform marketing and move the world towards more inbound and creating marketing people love.  It's a noble vision, it's a big one — and we invest in it and mostly live up to it.

Mission score: 9/10:  I dock us a point because we do have some outbound marketing in our mix of marketing spend.  We're not pure inbound marketing. We spend some money on PPC, some telemarketing and some paid online channels.  Not a lot — but enough to deduct a point.

Metrics score: 9.5/10:  We really are maniacal about our metrics.  We pore over data.  We slice and dice things like customer cancellation data, SaaS economics metrics, employee happiness surveys, marketing channel data.  I've talked to many, many startups and fast-growing companies.  Of those, HubSpot is one of the most data-driven and metrics-obsessed companies I know.

2. We obsess over customers, not competitors and “Solve For The Customer”

Score: 8/10

The statement itself is mostly true (we spend 99% of our time worrying about customers and very little time worrying about competitors), but the underlying mantra of “Solve For The Customer” is not yet as true as we'd like it to be. 

We get points for the way we have handled pricing and packaging over our 6+ year history.  We have raised prices almost every year, and each time, we go out of our way to grandparent our existing customers and reward them for putting their belief in HubSpot.  So, on this front, I think we do really well.

We deduct points because the overall experience of HubSpot is not as smooth as it could be.  It's not customer-friendly enough.  We sometimes make decisions that are for our self-interest or convenience rather than customer happiness.  We're working on this.

We're getting better at having people call B.S. on decisions or directions that are not in the customers' interest.  People will speak up with questions like “What's in it for the customer?” or “How is this solving for the customer?” or “Seriously?”.  On the one hand, it feels good that people can be open and candid when they don't think we're living up to the SFTC (Solve For The Customer) credo.  On the other hand, in an ideal world, these non-customer-happiness focused things wouldn't have to be called out, because we'd always be acting in the customers' interest.  It would be natural and second-nature.  But, we're a metrics-obsessed, goals-oriented, for-profit company — so it may take some work and practice to have SFTC be natural, 100% of the time.  In the meantime, we'll continue to try and catch ourselves before we make decisions that don't make sense for the customer long-term.

3. We are radically and uncomfortable transparent.

Score: 9.5/10

We are super-duper, hyper transparent — and our transparency level has moved up over the years, not down.  We share all sorts of crazy things with every employee.  For example, one of the posts on our wiki goes into detail on every funding round we've done.  Details include the What the valuation was, what the common strike price was, how much money was raised, how much dilution there was, etc.  

We share just about everything.  And, the things we don't share (like individual salaries), we're deliberate and clear about.  Deducted half a point simply because nobody's perfect and we can always be better.

4. We give ourselves the autonomy to be awesome. 

Score: 8/10

We're good, but not great in terms of giving ourselves autonomy.  HubSpotters have a fair amount of freedom.  You can run with an idea.  Most things don't require permission.  You can talk to anybody in the company, including the founders about whatever you want.  We don't have formal policies and procedures for most things (our default policy on most things is “use good judgment”).

So, why the lower score?  A few things:  First, although we philosophically believe in the “work whenever, wherever” idea, this is not universally enjoyed to the same degree by every HubSpotter.  We trust our team leaders to do what is right for their groups and use good judgment.  We're also a bit conflicted because the data overwhelmingly shows that working together in the same office leads to more creativity and productivity.  So, we understand the importance of co-location, but don't want to force it and take away freedom.  For now, we've straddled the issue.  Bit of a cop-out.

Our unlimited vacation policy has been a good thing (it's been in place for over 3 years).  But, there were a couple of issues.  First, some of us didn't really feel like they could take vacations without negatively impacting their work.  Second, we had growing suspicion that on average people might be taking less vacation than they should.  We didn't know if this was true, since we don't track vacation days — but we wanted to make certain that “unlimited vacation” didn't turn out to be “no vacation” for anyone at HubSpot.  So, we made a tweak: Everyone has to take at least two weeks of vacation a year, or face ridicule by their peers.  We've also tweaked some things to make it more likely that people do the right thing and take regular vacations. 

5. We are unreasonably picky about our peers.

Score: 8.5/10

This is true. We are really, really picky about our peers.  We're fortunate to have a lot of interest in the company, and for every open position we get many (often hundreds) of candidates.  So, we can afford to be picky.  It's actually harder to get a job at HubSpot than it is to get into MIT. Our acceptance rate is lower.

The reason for deducting a couple of points is related to the attributes we look for (Humble, Effective, Adaptable, Remarkable and Transparent). For the most part, HubSpotters manifest these attributes — we try to make sure of this during the recruitment and interviewing process.  But, we don't always get it right.  So, we get a negative point for that. 

Also subtracting a half point because not only do we make hiring mistakes sometimes (despite our best efforts), we're not as good as we should be at calling people out when they do un-HubSpotty things.  For example, we have being “Humble” as a core attribute (it's actually been an attribute from the beginning).  But, not everyone acts in humble ways, and we often fail to call it out. Part of having a great culture is defending it.

6, We invest in individual mastery and market value.

Score: 8/10

Though we've always believed in investing in our people and wanting to “build not just a company we're proud of, but people we're proud of”, this hasn't been explicit in our culture code until recently. So, we have some work to do here.

First, we're going to take a hard look at where our “discretionary culture spend” (aka “employee happiness expenses”) — which, incidentally is over a million dollars a year.  We want to shift our budget to things that help increase mastery and market value. Things like education and leadership training.  Yes, we enjoy parties and celebrations too (and those are important), but all things being equal, we want to invest these dollars (in our people), not spend them

But until then, we still get an 8 on this front.  We can do much more.

7. We defy conventional “wisdom” as it's often unwise.

Score: 8.5/10

This culture attribute goes towards how much we question the status quo and do things differently.  We're actually pretty good at this.  Good, but not great. We get points for things like not having offices and executive perks.  Our radical transparency and openness defies conventional wisdom.  We're one of the few private companies that publicly shares its key financial data (like revenues) every year.

8. We speak the truth and face the facts.

Score: 9/10

We have a very strong culture of facing the facts and reality.  Nobody is allowed to walk around with rose-color glasses on. We don't brush problems under the rug. We don't hide from issues. If anything, we can be faulted for being too critical sometimes.  We also do a great job of speaking the truth and being candid about the problems we see in the organization.  This happens in meetings, in hallways, over email and on the wiki.  When problems show up (as they do regularly), we are usually quick to react.

9. We believe in work+life, not work vs. life

Score: 8/10

This one is a bit squishy and hard to measure.  Generally, we do a really good job of work-life fit.  Mostly flexible hours, unlimited vacation, centrally located and relatively easily accessible office.  All of those things help.  Things that fall into this bucket that we're not great at is diversity — particularly gender balance and getting more women into leadership roles.  We're “leaning in” on this, and hope to get much, much better at this over the next few months.  Stay tuned.

10. We are a perpetual work in progress.

Score: 9.0/10

This one's a bit of a gimme (note to self: We need to replace this tenet with something that's more substantive and less platitudinal).

We don't sit on our laurels.  We celebrate victories big and small — but celebrations are short-lived.  Though we are pleased with our modest success so far, we recognize that there is still much work to be done.  We're constantly trying to improve how we run the busines and ourselves.

Posted by Dharmesh Shah on Thu, Apr 11, 2013

COMMENTS

On the one hand, I commend you for the values-driven culture you are striving to create and sustain, and your mea culpa candor in citing your failings in not always being able to achieve the ideal. On the other hand (yes, I am a consultant), it will be interesting to see what impact greater success and increased size and complexity have on your eagerness to avoid conventional structure and behavioral standards. The other variable is that as your staff grows older, their needs and aspirations will require adjustments in the work environment. Let's see what your culture looks like in five years. 
In the meantime, enjoy it.

posted on Friday, April 12, 2013 at 10:34 AM by Richard J. Anthony, Sr.


Interesting. Learned a few things here. Trying to start up a business fixing iPhones, and there's plenty to learn.

posted on Sunday, April 14, 2013 at 9:48 AM by mark


I was one of the 340K viewers of the "culture code" deck, and very impressed. You've done a good self-analysis - something few have the courage for. 
 
It would be even more interesting to jump to the next level by having someone external come in and spend a day or two interviewing people and look at your situation with fresh eyes. I'd expect that you'd get a new perspective that could really challenge assumptions - hopefully in a productive way! 
 
Thanks so much for the update! This is a fascinating journey to follow.

posted on Monday, April 15, 2013 at 5:53 PM by Carl Dierschow


I'd challenge the statement that the data overwhelmingly shows that working together in the same office leads to more creativity and productivity.  
 
Many of these studies are old, some dating back to the 70s. If you believe the way we interact with the world has changed with the introduction of the Internet, Web 2.0, social media and all the changes we've had over the past 20+ years, or even over the past 5 years, you have to question these studies. 
 
The research on virtual teams and distributed teams sometimes points in the opposite direction: that virtual teams are more productive than co-located teams. 
 
Ultimately, it's looking more like the answer is: it depends. Sometimes co-located teams are more effective; sometimes virtual teams are more effective. It depends on the tasks, the team structure, the attributes of the leaders, how the team is formed, etc. 
 
Of course, if you go into hiring remotely with the attitude that it won't work out, it definitely won't. Learning to build and manage a virtual team is an entirely different discipline than doing the same co-located.  
 
Still, HubSpot (and other Boston startups) could benefit by expanding past Boston. It would ease the talent crunch, since many excellent people live outside Boston and other major tech centers. And it would provide geographic diversity. The problems and attitudes that people experience in Boston can be radically different than elsewhere in the country or the world. 
 
As HubSpot grows, I'd encourage carving out a group to experiment with remote or distributed teams. This could help develop the managerial experience needed to expand more effectively internationally, and provide a better understanding of customers in other locations.

posted on Tuesday, April 16, 2013 at 11:17 AM by Trevor Lohrbeer


i just read all your article and would like to recommend with others too.

posted on Tuesday, May 28, 2013 at 5:49 AM by profesional web design


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