culturecode-v7-130320111259-phpapp02

CULTURE
CODE
THE
Creating a company we love.
00.90.05

WHAT’S CULTURE?
A set of shared beliefs,
values and practices.

Culture is to recruiting as
product is to marketing.
Customers are more easily attracted
with a great product.
Amazing people are more easily attracted
with a great culture.

THE INTEREST RATE ON
CULTURE DEBT IS HIGH.
Much higher than financial debt
or technology debt.
Often, crushingly high.

CULTURE HAPPENS.
Whether we plan it or not,
culture will happen.
Why not create a culture we love?

Lets make the company we always
dreamed of. Lets create a
company that will be a great place
to be from.
REED HASTINGS & PATTY MCCORD
NETFLIX.

PEOPLE HAVE
DRAMATICALLY
CHANGED HOW THEY
LIVE AND WORK.

THEN NOW.
FOCUS Pension Purpose
NEED Good
Boss
Great
Colleagues
HOURS 9-5 Whenever
WORKPLACE Office Wherever
TENURE Whole Career Whatever

AND ALTHOUGH
PEOPLE HAVE
DRAMATICALLY
CHANGED…

Many
organizations
operate as if
they’re frozen
in time.

They operate as if money
is what matters most…

…as if the Internet hadn’t
been invented...

… and as if amazing
people are just happy to
have a job.

We’re creating
a company we
love.

This document is
part manifesto,
part employee handbook,
and part diary of dreams.

This document is
part manifesto,
part employee handbook,
and part diary of dreams.
When something is
aspirational (not yet true)
we try to call it out.

THE HUBSPOT CULTURE CODE.
1. We are as maniacal about our metrics as our mission.
2. We obsess over customers, not competitors.
3. We are radically and uncomfortably transparent.
4. We give ourselves the autonomy to be awesome.
5. We are unreasonably selective about our peers.
6. We invest in individual mastery and market value.
7. We defy conventional “wisdom” as it’s often unwise.
8. We speak the truth and face the facts.
9. We believe in work+life, not work vs. life.
10. We are a perpetual work in progress.

We are as
maniacal about
our metrics as
our mission.

“Pursue something so
important that even if
you fail, the world is
better off with you
having tried.”
TIM O’REILLY.
Note: The O’Reilly Library at HubSpot is named after Tim.

OUR MISSION is to
make the world INBOUND.
We want to transform how
organizations do marketing.

inbound
is about empathy.
It’s about creating
an experience
people love.

WE BELIEVE OURS
IS A NOBLE CAUSE.
We help organizations grow.

We also reduce
spam, junk mail
and other
unpleasantness.

We are passionate about our mission.
It has earned us the love of thousands.
We’re also maniacal about metrics and
reaching our goals.
It has earned us the resources to further our
mission.

Balancing this dual personality
of mission & metrics is challenging.
But it’s also what makes us
DIFFERENT.

Balancing this dual personality
of mission & metrics is challenging.
But it’s also what makes us
DIFFERENT. And sometimes
dysfunctional.

One way we balance
these things is to have a
guiding goal that
serves the mission.

Our guiding
goal is
delighting
customers.

We obsess over
customers, not
competitors.

Have the courage to start with
the customer. My biggest
regrets are the moments that I
let a lack of data override my
intuition on what’s best for our
customers.
ANDREW MASON.
FORMER CEO OF GROUPON
IN HIS DEPARTURE EMAIL

FOR EVERY DECISION
WE SHOULD ASK
OURSELVES:
“Selves, what’s in it for the customers?
Will this delight them?”
In other words…

SFTC.Solve for the customer
Not just their happiness,
but their success.

SFTC.Solve for the customer
Not just their happiness,
but their success.
We sometimes often have
to remind ourselves of this.

WAIT. Does “Solve For The Customer”
mean just giving more away for free?
Wouldn’t that delight customers?
NO. To delight customers in the
long-term, we have to survive in the
short-term.
Because…

Bankrupt
companies
don’t delight
their customers.

All other goals
should support
our guiding goal.

We have a professional sales team.
Does hitting our sales goals support
our guiding goal?

YES.
Having delighted customers requires having
customers. (funny how that works)
We’re on the path towards our Guiding Goal
as long as we sell to customers that we
expect to delight.

YES.
Having delighted customers requires having
customers. (funny how that works)
We’re on the path towards our Guiding Goal
as long as we sell to customers that we
expect to delight.
This is the key. We
shouldn’t sell customers
we’re not justifiably
confident we can delight.

WE LOVE TO EDUCATE.
We are enthusiastic teachers.
We believe success comes through
educating customers, not exploiting
them.

We are
radically and
uncomfortably
transparent.

THEN. (back in the 1900s)
Power came from hoarding knowledge.
Decisions were made behind closed doors.
NOW…

Power is gained by
sharing knowledge,
not hoarding it.

“Sunlight is the
best disinfectant.”
-LOUIS BRANDEIS

WE SHARE (ALMOST)
EVERYTHING.
We make information available to
everyone in the company.
We’re radically and uncomfortably
transparent.

We protect information only when:
It is legally required.
Example: Information covered under a
Non-Disclosure Agreement (NDA)
It is not completely ours to share.
Example: Individual compensation data

WE HAVE THE MOST INTERESTING
WIKI ON THE PLANET.*
Examples of things we share and discuss:
• Financials (cash balance, burn-rate, P&L, etc.)
• Board meeting deck
• Management meeting deck
• “Strategic” topics
• Lore & Mythology (the funniest page on the wiki)
*Unverified claim

AND LIKE ANY MINDFUL COMPANY, WE HAVE:

We have open access to
anyone in the company. No
permission needed.
Nobody has an office.

CULTURE HACK.
A large part of the company goes through a
random “seat shuffle” every 3 months.
We’ve been doing this since the beginning.
It reflects our “change is constant” credo.
It also circumvents a lot of needless discussion.

The intent behind all this
transparency is to support
smarter behavior and better
decisions.
So…

We give
ourselves the
autonomy to
be awesome.

THEN.
Organizations tried to prevent mistakes
with policies and procedures.
NOW...

Just because someone made a mistake years
ago doesn’t mean we need a policy.
WE DON’T PENALIZE THE MANY
FOR THE MISTAKES OF THE FEW.
We only protect against really big stuff.

We don’t have
pages of policies
and procedures.

USE
GOOD
JUDGMENT.
Instead we have a 3-word policy on
just about everything:

Social media policy.
Travel policy.
Sick day policy.
Buy a round of drinks at an event policy.
Work from home during a blizzard policy.
Our policy on all of these (and most other things):
USE GOOD JUDGMENT.

Team > Self
Favor your team’s interest
over your own.
Company > Team
Favor the company’s interest
over your team.
Customer > Company
Favor the customer’s interest
over the company.
WHAT’S GOOD JUDGMENT?

Team > Self
Favor your team’s interest
over your own.
Company > Team
Favor the company’s interest
over your team.
Customer > Company
Favor the customer’s interest
over the company.
WHAT’S GOOD JUDGMENT?
We’re pretty good at the
first and second – but the
third is tricky sometimes.
Remember, acting in our
customers’ interest is in our
long-term interest too.

Now, lets talk about where
and when we work.
Generally…

Results matter more than
the hours we work.

Results matter
more than where
we produce them.

Results matter more
than how much
vacation we take.
(we have unlimited vacation time)

We believe in the
freedom to work when,
where and how we want.
Remarkable results are
what matter.
This is what we believe.

The biggest driver of
performance in complex
industries like software is
serendipitous interaction.
BEN WABER.
VISITING SCIENTIST, MIT MEDIA LAB
AUTHOR, “PEOPLE ANALYTICS”

So, we trust our leaders to
use good judgment when
guiding their teams.

And we try to create a
work environment where
we want to come in.

THEN.
Influence based on hierarchy
Command & Control
NOW…

INFLUENCE IS
INDEPENDENT OF
HIERARCHY.

We want direction
on where we are
going…
NOT
detailed directions
on how to get there.
h/t Simon Sinek

We don’t want just “managers”
We want inspiring leaders.
Passionate coaches.
Tireless supporters.
Managers exist to help
individual stars make
magic.

CEO, CTO, VP of This,
Manager of That.
Doesn’t matter what
your title is.
EVERYBODY
DOES REAL
WORK AND
GETS THEIR
HANDS DIRTY.

Oh, and speaking of job
titles…

WE HAVE TRADITIONAL
JOB TITLES AT HUBSPOT.
It is a topic of intense debate.
Options:
1) No titles for anyone
2) Make up our own creative titles
3) Use traditional titles

WE HAVE TRADITIONAL
JOB TITLES AT HUBSPOT.
It is a topic of intense debate.
Options:
1) No titles for anyone
2) Make up our own creative titles
3) Use traditional titles
We ended up with the last option.
Bummer. But, it does align with our
desire to increase individual market
value.

HAVING AUTONOMY DOESN’T MEAN
CRAP IF YOU DON’T ACT.
DON’T OVER-THINK IT.
JFDI.
(Just F*#king Do It)

With this kind of
transparency and trust
we can’t take chances when hiring.
So…

We are
unreasonably
picky about our
peers.

You become the
average of the 5
people you hang
out with.
Drew Houston
CEO, Dropbox
Note: Drew’s a friend and on our advisory board.

What makes someone
a great fit for HubSpot?
What makes them awesome for us?
What does it mean to be
HUBSPOTTY?

There are 5 attributes
that we value in people.

Modest, despite being awesome.
Self-aware and respectful.
HUMBLE.

Wait. Doesn’t being humble mean
lacking confidence?
No.
The very best people are self-aware
and self-critical – not arrogant.
Examples: Bezos. Buffet. Berners-Lee.
(and that’s just some of the Bs)

Humility is not thinking
less of yourself; it is
thinking of yourself
less.
C.S. LEWIS.

When things go well, humble
people tend to
share the credit.
When things go poorly,
they tend to
shoulder the responsibility.

Gets sh*t done.
Measurably moves the needle.
Immeasurably adds value.
EFFECTIVE.

EFFECTIVE PEOPLE ARE:
Predisposed to action. They just start
doing.
They have a sense of ownership.
They’re resourceful and always looking for
leverage.

Effective people find
ways to have their cake
and eat it too.

Constantly changing.
Life-long learner.
ADAPTABLE.

WAIT. What about good people that just
want stability and predictability?
They may do good work, but they likely
won’t be happy here.
Change is constant at HubSpot.

Has a super-power that makes them
stand out in some way.
Remarkably smart.
Remarkably creative.
Remarkably resourceful.
*h/t to Seth Godin
REMARK∙ABLE.worthy of being remarked upon*

Open and honest with others
and with themselves.
TRANSPARENT.

HUMBLE
EFFECTIVE
ADAPTABLE
REMARKABLE
TRANSPARENT

HUMBLE
EFFECTIVE
ADAPTABLE
REMARKABLE
TRANSPARENT
Those who will help
us create a
company
we love.
We want people
with heart.

HUMBLE
EFFECTIVE
ADAPTABLE
REMARKABLE
TRANSPARENT
Those who will help
us create a
company
we love.
We want people
with heart.
Yes, “heart” is a bit cheesy.
We’re a bit cheesy sometimes.

WE DON’T JUST
BELIEVE IN HEART,
WE BET ON IT.
We hire, reward, and release people
based on the five attributes.

EXAMPLE 1:
If you’re closed, arrogant and stuck in
your ways, it doesn’t matter how
effective you are. It’s not going to
work out.

EXAMPLE 2:
You can be remarkably smart, humble
and open. But, if you’re not effectively
moving us forward, it’s not going to
work out.

Does this mean we only accept
those that fit match the 5
attributes perfectly?
No. Confucius has good advice
here…

“Better a diamond with
a flaw than a pebble
without.”
CONFUCIUS.

“We’re a team, not
a family. We hire,
develop and cut
smartly so we have
stars in every
position.”
+1 We couldn’t have said it
better ourselves, so we didn’t.

Don’t just hire to delegate.
It’s tempting to bring people in that you can push off
work you don’t have time for.
Hire to elevate.
Bring people in that are better than you at something
and you can learn from.

WITH GREAT PEOPLE
COMES GREAT
RESPONSIBILITY.
Success is when a group of people
achieve their collective potential.
So…

We invest in
individual
mastery and
market value.

We want to be as proud
of the people we build
as we are
of the company we build.

We believe in investing to
increase the individual
market value of every
HubSpotter.

We’re doing a few things
already…

HubTalks: Learning From Leaders
Clay Christensen
“Innovator’s
Dilemma”
Eric Ries
“The Lean
Startup”
Sheila Marcelo
CEO, care.com
Colin Angle
CEO, iRobot
These are small informal talks given at HubSpot.

Unlimited Free Books
Program.
Post a comment on the HubSpot wiki
requesting a book.
It shows up in your Kindle account.
No muss, no fuss.
No expense sheets.

Unlimited Free Meals
Program.
Take someone smart out for a meal.
Learn something.
Expense it.
No approval needed.
No limits. No rules.
Use good judgment.

THAT’S JUST THE BEGINNING.
We believe in compensating fairly,
but we want to invest generously
in our learning and growth.
We’re always looking for new ideas.

We compensate based on
fair market value.
Reality: It’s hard to know what market
value is. We think of it as VORP
(Value Over Replacement Player)

THERE ARE TWO WAYS TO
PROGRESS AT HUBSPOT.
1. Gain mastery as an individual contributor
and make magic.
2. Provide spectacular support to those who
are doing #1.
Reality: This is mostly true, but
we need a quant-based approach
to measuring how true it is.

We defy
conventional
“wisdom”
because it’s
often unwise.

#inbound12
We’d rather be
failing frequently
than never trying
new things.

Why do we care so much
about being daring?

We start out being
exceptional.
As we grow, there is a
dark, powerful force
that pulls us towards
the average.
If we regress to the mean, we fail.
It’s that simple.

Remarkable outcomes
rarely result
from modest risk.

1
Simplicity is a competitive
advantage.

THEN COMPLEXITY
QUIETLY CREEPS IN.
ITS TOLL LIES BELOW
THE SURFACE.

WHY DOES COMPLEXITY
CREEP IN?
It is often the easy, seductive answer to short-
term issues.
Fighting for simplicity takes courage and
commitment to the long game.

WHY DOES COMPLEXITY
ALWAYS INCREASE?
Because everyone adds complexity and
nobody takes it away.
Ironically, adding complexity is easy
and maintaining simplicity is hard.

COMPLEXITY AND THE
TRAGEDY OF THE COMMONS.
Example: “I need to hit my goals this month, so
I’m going to push for this exception to our
standard contract.”
Result: You may make your goal now, but we
all pay the price of the complexity forever.
Focus on the long game. Team over self.

1
Like software,
Organizations should be
frequently
refactored.
Refactoring means to
improve internal structure
without changing external
behavior.

REFACTOR.
• Pull out unused features.
• Remove unnecessary rules.
• Stop generating useless reports.
• Cancel unproductive meetings.
• Prune extraneous process.

We speak the truth
and face the facts.

NO SILENT DISAGREEMENT.
If we disagree with a decision or
direction, we have the responsibility to
speak up.
We trust our candor will not be used
against us.

We have the right to clear, candid
and constructive feedback. We can
ask for this at anytime.
We’re replacing the traditional
annual review. Favoring more frequent
feedback.

WE LOVE DATA.
We like to think our decisions are
not data driven but data powered.
We like to think it, but it’s not true.
We are obsessed with data.

DEBATES ARE
WON WITH DATA.
Job titles don’t win debates.
We disfavor pulling rank.

BUT WE ALSO
DISLIKE
INDECISION

Data is collected. Debates are had.
THEN SOMEONE JUST HAS TO DECIDE.
An imperfect decision
is better than no decision.
A controversial decision
is better than no decision.

1
WE BELIEVE IN
WORK+LIFE,
NOT WORK VS.
LIFE.

Work-life
“balance” is
misguided.

We don’t think it’s possible to be
unhappy at work and then happy
in life.
We believe in enjoying life.
We also believe in enjoying work.
We believe in work+life fit.

1
WE ARE A
PERPETUAL
WORK IN
PROGRESS.

We believe it takes more
than talent to succeed.
GREATNESS REQUIRES
INTENSE COMMITMENT.

WE WORK IMMENSELY HARD.
It’s not for everyone, but it’s part of who we are.
We are on a mission to transform marketing.
That’s not easy to do.

WE ARE NEVER DONE.
Never done iterating.
Never done learning.
Never done rethinking.

WE WERE INSPIRED BY
• The Netflix Culture Deck (McCord & Hastings)
• “Drive” (Daniel Pink)
• The Valve Employee Handbook
• “Rework” (Fried and Hansson)
• Google’s People Ops Team
...and countless others on the web.

They helped out despite having better
things to do.
• Patty McCord, Netflix Culture Deck
• Rand Fishkin, SEOmoz
• Joel Gascoigne, Buffer
• Leo Widrich, Buffer
• Hiten Shah, KISSmetrics
• Jason Fried, 37signals
• Garry Tan, Y Combinator
• Dan Martell, Clarity
• Ziad Sultan, Marginize
PROPS TO OUR EXTERNAL BETA USERS.

THANK YOU.
Congrats for making it this far.
We would love feedback and discussion:
CultureCode.com
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