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Hiring and Culture with Patrick and John Collison and Ben Silbermann (HtSaS 2014: 11)
31 segments available
Lecture Transcript: http://www.tech.genius.com/Patrick-collison-lecture-11-company-culture-and-building-a-team-part-ii-annotated Stripe and Pinterest - two companies well known for their strong cultures. The founders - John Collison, Patrick Collison, and Ben Silberman - take Q&A from Sam in part 2 of Hiring and Culture. See the readings at http://www.startupclass.samaltman.com/courses/lec11 Discuss this lecture: http://www.startupclass.co/courses/how-to-start-a-startup/lectures/64040
Segments Timeline
Founders on Culture
In this segment, Ben Silbermann, John Collison, and Patrick Collison introduce their discussion on company culture. They outline the three main areas they will cover: general thoughts on culture, the founding of their companies, and how their teams evolved as they scaled. The founders emphasize the importance of culture in building successful organizations.
"we have Ben Silverman the founder of Pinterest and John and Patrick Collison the founders of stripe um Founders that have obviously sort of some of the best in the world at thinking about culture and ..."
Core Elements of Culture
The founders discuss the core pieces of culture that are crucial for building their companies. They identify four key dimensions: who they hire, daily operations, communication choices, and what they celebrate. They emphasize that celebrating positive behaviors is more impactful than punishing negative ones, highlighting the importance of a positive cultural foundation.
"off I just want to uh ask a very open-ended question which is what are the core pieces of culture that you found to be most important in building out your companies start sure what are the what are th..."
The Role of Transparency
Patrick Collison shares Stripe's emphasis on internal transparency as a vital component of their culture. He explains how transparency aligns the team with the company's mission and enhances productivity. As Stripe grew from two to over 170 employees, they developed tools to manage the flow of information effectively, ensuring everyone stays informed and engaged.
"up the bulk of it for us one that we've placed a a large emphasis on as stripe has grown and probably more than other companies is uh transparency internally uh and I think it's something that's been ..."
Culture as a Bandwidth Solution
Patrick discusses how culture serves as a solution to the challenges of scaling a startup. As organizations grow, the ability to be involved in every decision diminishes, making a strong culture essential for maintaining core values and guiding principles. He emphasizes that culture helps navigate the complexities of a growing team and ensures alignment on key decisions.
"well um I think culture to some degree is basically kind of the the resolution to a bandwidth problem uh in the sense that uh you know maybe when you start out working on something you're sort of codi..."
Hiring the First 10 Employees
The founders reflect on the significance of hiring the first ten employees and how those decisions shape the company's culture. They emphasize the importance of selecting individuals who align with the company's values and vision. The segment highlights the challenges of attracting talent when the company is still unknown and the qualities they sought in early hires.
"and kind of it manifests itself in a a you know bunch of you know different ways like for example uh in hiring uh I think a large part of the reason why the maybe the first 10 people you hire what kin..."
Traits of Ideal Candidates
In this segment, the founders share the traits they looked for in their initial hires. They valued hard work, integrity, creativity, and a genuine desire to build something great. The discussion highlights how these traits contributed to a strong foundation for the company's culture and the importance of hiring individuals who were passionate about their mission.
"books about culture because when I don't know how to do something I first go read things and everyone has all these Frameworks and I think one big big misconception um that someone said once is that p..."
Finding Undervalued Talent
The founders discuss their strategy for finding undervalued talent during the early stages of their companies. They explain how they sought individuals who were early in their careers or overlooked by larger companies. This approach allowed them to build a team of passionate and dedicated individuals who were eager to contribute to the company's growth.
"folks that we look at now um yeah the first 10 hires are really hard uh because you know you're you're making these first 10 hires at a point where no one's heard of this company no one really wants t..."
Key Traits of Early Hires
The founders identify key traits that their first hires shared, including genuineness, a strong work ethic, and a deep care for their work. They emphasize the importance of hiring individuals who are not only talented but also committed to completing tasks and maintaining high standards. This segment underscores how these traits shaped the company's culture and contributed to its success.
"friends of friends uh and the other interesting thing they all had in common is that they were all sort of um early in their career or undervalued in some way because when you think about it if someon..."
Finding Talent in Unlikely Places
The Collison brothers share their unconventional methods for recruiting talent, highlighting that great candidates often come from unexpected backgrounds. They discuss the importance of networking and being proactive in seeking out potential hires, rather than waiting for them to come to you.
"anyway uh genuine um uh uh caring a great deal and um uh Sor was my second one the other one yes um sorry sorry yes completing things like list of three items yeah I mean the only say I I just don't t..."
The Importance of an Elevator Pitch
This segment focuses on the necessity of having a compelling elevator pitch for your startup. The founders explain that every interaction could lead to a potential recruit, making it vital to communicate the excitement and vision of the company effectively.
"later maybe this is um uh a little bit tangential but John and I were also chatting out yesterday afternoon sort of uh like a bunch of our friends have sort of started companies out of school we're so..."
Avoiding Niche Pitfalls in Startups
The discussion shifts to the common pitfalls of startups, particularly the danger of focusing too narrowly on niche markets. The founders explain how this can hinder hiring and growth, emphasizing the need for broader, more ambitious goals to attract talent.
"Niche things uh in that if if you tell somebody look we're going to build a rocket that goes to Mars like I mean that sounds almost impossible but also sounds [ __ ] awesome right uh and so it's actua..."
Identifying Raw Talent
In this segment, the founders share insights on how to identify exceptional talent, especially for inexperienced founders. They discuss the importance of understanding what makes someone great in their field and the value of pre-calibrating your hiring process.
"obviously until you work with folks which is why the flip side of it is you know if someone you hire just wasn't a good fit you owe it to the company and to them uh to tell them how they can improve a..."
The Art of Interviewing
The founders delve into their interviewing strategies, emphasizing the need for tailored approaches that suit their specific needs. They share experiences from their hiring processes, including practical exercises to assess candidates' skills effectively.
"matters um and then once you have someone in sort of the interview process uh you'll build the process over time uh to both um screen quality and so um at Pinterest you know we have an evolving set of..."
The Value of Working Together Before Hiring
This segment highlights the importance of working closely with potential hires before making a commitment. The founders explain how this practice helps ensure a good fit and reveals candidates' true capabilities.
"recruiting as well that you're very very transparent about why you think it's an amazing opportunity but you lay out in gory detail um why it's going to be hard and then the right people select in or ..."
Understanding the 10x Talent Concept
The discussion turns to the concept of '10x talent' and how to identify individuals who stand out among their peers. The founders suggest looking for candidates who are the best in their circle, providing a more relatable metric for assessing talent.
"think people often have this uh impostor syndrome when it comes to to interviewing for roles yeah I think a pretty specific kind of just tactical thing um to to do for again the first 10 people is to ..."
The Role of Team Members in Company Success
In this closing segment, the founders reflect on the often-overlooked contributions of team members in a company's success. They stress that while founders may receive the spotlight, the majority of the work is done by the team, underscoring the importance of hiring the right people.
"like is this the best engineer this engineer knows um and uh and the other thing I think that's actually pleas is worth mentioning and all those kind of first 10 people or even more generally on the c..."
The Importance of References
In this segment, the founders stress the critical role of references in the hiring process. They advocate for asking previous colleagues about a candidate's work style and effectiveness, rather than just validating resume claims. By creating a framework for evaluating candidates through references, they aim to ensure a better cultural fit and accountability in the hiring process.
"is what you're saying something like that I think you know the only other thing I'll mention is that I think referencing people is really important um and uh referencing people is just what it sounds ..."
Onboarding New Employees Effectively
The discussion shifts to the onboarding process for new hires. The Collisons share their evolving strategies for integrating employees into the company culture, emphasizing the need for structured onboarding that includes clear expectations and relationship-building. They highlight the importance of making new hires feel productive and connected from day one.
"recruits yeah H that was references are also a tremendous source of new recruits um what what have each of you learned about once you hire these first people and they join what what have you done to t..."
Scaling Team Autonomy
As companies grow, maintaining team autonomy becomes a challenge. The Collisons explain their approach to structuring teams to function like 'startups within a startup,' allowing for nimbleness and creativity. They discuss the importance of empowering teams with resources and clear objectives to manage the complexities of a larger organization.
"is to get to know the person as a person like what are their aspirations what's their working style uh how do they like to be recognized um do they really prefer being in total silence uh do they are ..."
Adapting to Growth and Time Horizons
In this segment, the founders reflect on the rapid changes that occur as a company scales. They discuss how the focus shifts from short-term to long-term planning, emphasizing the need for leaders to adapt their thinking and strategies as the organization grows. This evolution in perspective is crucial for managing growth effectively and ensuring alignment with long-term goals.
"autonomous and Nimble as possible within the constraints of having a large organization um and that means over time that we're always trying to make it feel like a startup of many startups rather than..."
Building Social Bonds at Scale
Patrick discusses the challenges of maintaining social bonds within a rapidly growing company. He reflects on the importance of creating systematic approaches to foster relationships among employees, despite the inherent difficulties of scaling. He shares practical examples, such as communal meals, that enhance interaction and strengthen company culture.
"right in that in the really early days you kind of have to hire people who will be productive essentially immediately like you you you don't have the luxury of hiring people who are sort of really pro..."
Transparency in Startups
The conversation shifts to the value of transparency in startups. Patrick explains how startups can operate with a level of openness that larger companies often cannot. He shares Stripe's early practices of keeping all employees informed through email, highlighting the benefits and challenges of maintaining transparency as the company scales.
"organizations aren't designed for it um and I think it's worth being sort of like quite systematic about sort of thinking about ways to do that but um realizing that you probably can't do much better ..."
Scaling Communication Tools
In this segment, Patrick elaborates on how Stripe has adapted its communication tools as the company has grown. He discusses the transition from email to more structured communication methods, such as weekly All Hands meetings, to ensure that all employees remain informed and engaged with the company's developments.
"company a lot of the you know things that are good for you uh uh well you you you couldn't do them in a completely transparent environment right because people would think less of you or I mean you're..."
Cultural Norms Around Information Sharing
Patrick and the team discuss the cultural norms that have developed around information sharing at Stripe. He emphasizes the importance of creating a supportive environment where employees feel comfortable sharing ideas and feedback, despite the challenges posed by a larger audience. This segment highlights the balance between transparency and the potential for criticism.
"broke because they just like sending too much email um and uh I mean it is hard to scale because it's I mean you you you might sort of contact somebody outside of the company um uh with like some grea..."
Intern Insights on Company Culture
An intern shares their perspective on Stripe's culture and the challenges of navigating the abundance of information available. They discuss the benefits of being quickly integrated into the company through tools like Hackpad, while also noting the distractions that come with such transparency. This segment provides a fresh viewpoint on the onboarding experience in a transparent environment.
"know weekly All Hands sometimes with a deck and you know we actually have to go put all this work into developing a deck to to communicate to people what's going on in the company uh since there's so ..."
Audience Q&A: Early Hires and Leadership Growth
During the audience Q&A, the founders reflect on whether early hires have successfully transitioned into leadership roles as the company has grown. They discuss the importance of providing opportunities for employees to take on challenges and develop their leadership skills, while also acknowledging that not everyone will thrive in management roles.
"like Google Docs with a news feed and you can just like see all the documents yeah and you're encouraged to make everything public everything you work on um but overall it gets you spun up really quic..."
Adapting Vision Over Time
The founders discuss how their initial vision for their product has evolved since the company's inception. They share insights on unexpected discoveries about user engagement and the importance of adapting their strategies to meet the needs of their audience. This segment highlights the dynamic nature of startups and the necessity of flexibility in vision and execution.
"actually want um that information coming all right audience questions yes so dis and um is it your experience that your early hirers that able to grw andol into leadership rols as the company skills a..."
Selling the Startup Vision
The conversation shifts to how to effectively sell the vision of a startup to potential hires. The speakers discuss the importance of being honest about the uncertainties of startup life while also inspiring candidates with the potential impact they can have. They stress the need for authenticity in recruitment and the qualities to look for in candidates.
"the company goes farther along your aspirations therefore like get bigger so so there's like this Gap that always exists I tell my team between like where we are and where I think we should be and eve..."
Motivating Factors for Startup Employees
In this segment, the founders explore what motivates individuals to join startups, including personal development and the opportunity to make a significant impact. They discuss how the startup environment can be less forgiving but also more rewarding for those seeking to benchmark their contributions.
"is probably somewhat overstated uh I guess it was I think Scott forall was trying to recruit these people uh but I mean I even though startups especially in the earlier days tend to involve somewhat w..."
Hiring Strategies Based on User Base
The discussion focuses on how the user demographics of Pinterest influenced their hiring strategy. The founders explain their approach to hiring ambitious individuals who may not be lifelong users of the product but are excited about the mission. They highlight the importance of adaptability in hiring practices.
"know what's exciting and where you think it can go and where it's going to be hard and chart your best plan um and then tell them like why their role in it can be instrumental um because it is um you ..."
Finding Passionate Early Employees
The speakers conclude by discussing the challenges of hiring early employees for a startup. They emphasize the advantage of attracting passionate users of the product and how this can lead to successful hires. The segment wraps up with reflections on the benefits of working at a startup like Stripe or Pinterest.
"I think the other um thing that motivates people a great deal in addition to sort of the the prospect of sort of um uh you know affecting some outcome uh is just sort of the the personal development a..."