(Extracted from What I Believe Least by Morgan Housel)
I believe companies can create amazing work cultures with intentional perks, autonomy, transparency, and mission.
But it’s one of the things I believe least, because most of what makes a culture great is just whether a company is winning or not.
Free kombucha and casual dress codes are no match for layoffs, losing money, and watching your stock price plunge against competitors.
On the other hand, employees will gladly pack their own lunch if they’re part of a team that’s crushing expectations.
Every company known for a great culture is winning. And every company struggling with culture is losing. There are few exceptions to this rule.
But there’s a chicken-and-egg problem with culture. Which came first, the culture or the performance?
It’s easy to link culture to morale and morale to performance. But the causation is stronger in the other direction. A company’s performance affects things like job security and external signaling, which affect loyalty and pride, which build culture. Craig put it this way: “Winning as a company enables great culture. Not the other way around.”
I believe culture is both important and can be created. But I only believe it a little, because there are limits. The World Series champions who stay at Motel 6 will be in a better mood than the losers who stay at the Four Seasons.