The document presents insights from Michael J. Skok at the Harvard Innovation Lab on the critical aspects of startup culture, vision, and mission in building enduring companies. It discusses the importance of a strong vision and mission for alignment and empowerment in organizations, and emphasizes that culture is fundamental to guiding behavior and decision-making. The document also highlights the need for cultural consistency and the role of leadership in shaping and modeling company culture.

1. Hi
Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
Harvard innovation lab
#startupsecrets
www.mjskok.com
START UP
SECRETS
An insider’s guide to unfair competitive advantage
Culture, Vision / Mission
Part 1 of COMPANY FORMATION
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
1

2. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Company Formation
Agenda:
“Foundations for Building an Enduring Company”
• Part I (Tonight)
– Vision
– Mission
– Culture
• Part II (Nov. 7)
– People
• Hiring – we do a deeper dive in this class
• Team Building
2

3. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Why?
Many, many reasons. Simplified:
• Ideas are worth little to nothing without…
– People to execute
– Culture to select the right people & empower them
– Vision to attract, retain & unify all stakeholders
3

4. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Building an enduring company:
Value
Prop
Startup
4

5. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Building an enduring company:
Value
Prop
Peopl
e
Startup
5

6. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Building an enduring company:
Executio
n
Value
Prop
Peopl
e
Startup
6

7. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Building an enduring company:
Vision / Mission
Execution
Value
Prop
Startup
People
Enduring
Compan
y
7

8. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Building an enduring company:
Takes more than LLIP service
Vision / Mission
Execution
Value
Prop
Startup
People
L isten
L earn
I terate
P ivot
Enduring
Company
8

9. Hi
Harvard innovation lab :
Startup Secrets :
Culture, Vision & Mission
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Building an enduring company:
Roadmap…
Vision / Mission
Execution
Value
Prop
Startup
People
Cultural Consistency
Enduring
Company
9

10. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Simplification
Value proposition
Vision / Mission
People / Team
Culture
-
starting point
to aim for
basis for execution
underlying enabler
10

11. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Agenda: Vision / Mission
Vision / Mission
Execution
People
Value
Prop
Startup
Cultural Consistency
Enduring
Company
11

12. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Why is Vision / Mission important?
• Focus
• Alignment
• Empowerment
12

13. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Vision / Mission – development…
• Vision
– How the market will evolve?
– How will you will lead it?
• Mission
– Inspiring statement of intent
– Motivational driver to aspire to
13

14. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
“To organize the world's information
and make it universally accessible
and useful.”
14

15. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
“Give everyone the power to create
and share ideas and information
instantly without barriers”
15

16. Mission Statement
Salsify will be a global network of all information
for all products sold online.

17. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Balancing VM and Execution…
• How the market will evolve?
• How will you will lead it?
• What is your roadmap?
17

18. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
18
Roadmap
• Bridges your Value Prop and Vision / Mission
• Describe the road ahead and how you
imagine your journey
• What are the tangible steps?
• What are key Milestones along the way?
18

19. Roadmap
1
Make Creation & Management Easy
Quick win – easier than enterprise offerings, more robust than Excel
2
Make Sharing Easy
Product portals within organizations, publishing feeds to channels
3
Make Collaboration Easy
Feedback across the supply chain, decentralized authoring
4
Make Reuse Easy
Content discovery and aggregation, exploit network effect

20. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Agenda: Culture
Vision/Mission
Execution
Value
Prop
Startup
People
Cultural Consistency
Enduring
Company
20

21. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Why is culture important?
• Hundreds of decisions below the radar
• Dissipation vs. concentration of energy…
21

22. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Learn from the best?
FORTUNE Tech top 5 (2013)
–
–
–
–
–
Google
SAS Institute
NetApp
Ultimate Software
Qualcomm
Impact
of
Culture
?
22

23. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Learn from the best?
FORTUNE Tech top 5
–
–
–
–
–
Google
SAS Institute
NetApp
Ultimate Software
Qualcomm
Since 1998…
FORTUNE 100
Best Company
To Work For
List
S&P500
Culture
Impact
10.8% /
3.3% /
yr
yr
23

24. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Learn from the best?
FORTUNE Tech top 5
–
–
–
–
–
Google
SAS Institute
NetApp
Ultimate Software
Qualcomm
Since 1998
Culture
100 Best Company List
Impact
consistently outperform
major stock indices by
300%
24

25. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
“Culture eats Strategy for
lunch”
Richard Clark,
former CEO
25

26. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture: What is it?
For the techies among you:
• It’s like the Operating System to run your
Apps on
• EG the Platform to empower your People
26

27. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture: What is it?
Multi faceted…
Simplified:
• It’s HOW you do business
• The organizational embodiment of things like:
–
–
–
–
Personality
Style
Heart & Soul
Sub conscience & conscience
27

28. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture – example framework
• Shared Values
– Beliefs
– Guiding Principles
• Living
– Leading
– Modeling
• Executing
– Responsibility, Accountability
– Success & Failure
28

29. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture: Values
• Examples:
–
–
–
–
Empowerment, enablement
Proactive honesty and openness
Respect
Integrity
… what are YOURS – authentically?
29

30. Values
Open & Constant Communication
Celebrate Small Victories
Measurable, Achievable Goals
Empowerment

31. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Clarify values – e.g. Diversity
• What does it mean to you?
•
•
•
•
•
Race, Religion, Creed, Faith
Background
Age
Experience
Domain
• What about?
–
–
–
–
Style
Personality
Approach
Attitude
31

32. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
What if I don’t have a culture?
… you do have one even if you don’t know it!
• Good
– Deeds not best practices
– Individual not collective
• Bad
– Bad habits
– Unconscious behaviors
Startup Secret:
– Culture will define YOU if you don’t define IT !
32

33. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Cultural gaps…
Well communicated
Inclusive, Empowering
Celebrated
Not communicated
Internal centric
Dysfunctional
33

34. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture – which do you want?
• Barrier
–
–
–
–
Dissipating
Distracting
Dividing
Politicking
• Enabler
–
–
–
–
Unifying
Clarifying
Empowering
Acting
• Damming
• Flowing
RESTARTS
RESULTS
(Often defined by it’s absence … the Un-Culture)
34

35. Hi
Harvard innovation lab :
Michael J Skok :
Culture, Vision & Mission
@mjskok
@innovationlab
Startup Secrets :
#startupsecrets
www.mjskok.com
Startup Un-Cultures are Un-Cool
A Culture
Un-Culture
Dissipating
Unifying
Distracting
Clarifying
Dividing
Politicking
Empowering
Enabling
Damming
RESTARTS
Flowing
RESULTS
35

36. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Startup Secret: Culture
• Comes from YOU
• Comes from the top
• Is modeled
Startup
Culture
Enduring
Company
36

37. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Startup Secret: Culture
•
•
•
•
Comes from YOU
Comes from the top
Is modeled
Is valued by consistency
Startup
Cultural Consistency
Enduring
Company
37

38. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
The 7 Aspects of Netflix Culture
•
•
•
•
•
•
•
Values are what we Value
High Performance
Freedom & Responsibility
Context, not Control
Highly Aligned, Loosely Coupled
Pay Top of Market
Promotions & Development
38

39. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Developing Guiding Principles…
• Example questions for you to ponder your
culture:
–
–
–
–
–
–
Do you judge yourself by results or effort?
How do you solve problems?
How do you handle mistakes?
How are decisions made and by who?
Management - is it a role or a hierarchy?
Does the customer come first or your people?
– Are you profit or value driven?
39

40. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Jeff Bezos and the “door desk” which came to symbolize Amazon’s frugal culture
40

41. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Can culture have a physical
manifestation?
41

42. Physical Manifestation
NO WALLS
HANGOUT SPACES
AIRPLAY EVERYWHERE

43. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Can culture have a physical
manifestation?
• Yes!
– Office layout
• (open plan vs. cubes vs. offices)
– Founders wall
– Mascots
– Etc.
43

47. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Acquia Ranks as the No. 1 Software
Vendor on the 2012 Inc. 500
2012 “Best Places to Work” –
Boston Business Journal
“One of the hottest companies
on the planet” - VentureBeat
47

48. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Acquia culture…
http://www.youtube.com/watch?v=XZm7Q71F83U
48

49. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Acquia DNA
*We're Committed to Awe-some
*We Do the Right Thing
*We Jump In & Own It
*We Give Back More
*We Inspire a Little Crazy
Acquia Give Back - Community Service Day at Cradles to Crayons
49

50. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Strong cultures…
• = values & principals people can
• RELATE to
– Personalize
– Internalize
NOT too abstract
• ENGAGE in
– Act on
50

51. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture
•
•
•
•
•
•
•
•
•
The Valve Corporation: Aspire To Greatness
No managers
Hiring the right people
Welcome to Flatland: no one tells you what to do
Aspiring to greatness means living with failure
Having fun
Caring for people’s families
A corporation with a human feel
Not for everyone
51

52. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Linking Execution & Culture
52

53. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Linking Execution & Culture
Doing the RIGHT thing
vs. the easy or obvious thing
53

54. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Focus on customer service
54

55. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
sh**
happens!
55

56. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Focus on customer service
New York, 9/11 => “the one way rental”
56

57. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture as a touchstone
• Fall back to it when there is no obvious
– Answer
– Direction
– Priority
• Knowing what the RIGHT thing to do is…
57

58. Hi
Harvard innovation lab :
Startup Secrets :
Culture, Vision & Mission
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Example
A results oriented culture…
58

59. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Example
RESULTS ARE EVERYTHING!
59

60. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Results at all costs?
Really?
OK, not ALL costs…
• Then what costs?
–
–
–
–
–
Profit?
Market share?
People?
Ethics?
Legal?
60

61. Hi
Harvard innovation lab :
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
@innovationlab
Results at all costs?
Really?
• At what costs?
–
–
–
–
–
Profit?
Market share?
People?
Ethics?
Legal?
OK, not ALL costs…
61

62. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Link Execution & Culture…
Focus on results
and
HOW they’re achieved
62

63. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture -> Execution Checklist
•
•
•
•
•
Leadership – inspiring, modeling exemplifying
Communication
Responsibility & Accountability
Celebration of Success & Rewards
Recognition and learning from
mistakes, problem solving
63

64. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Commyounikation
64

65. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Communication as an enabler
• Communication is the lifeblood of your startup
– Don’t assume it, even when you’re small
• How do you communicate?
– Inside and outside (customers, partners, suppliers)
• Formal / informal, cadence?
– Water cooler, Standup Scrums, Town Hall
– Meetups, Customer Advisory Board, User groups etc.
65

66. How do you communicate?
One word: CONSTANTLY
No cubicles
No offices
Daily standups
Weekly planning
Monthly all-hands
Hipchat on phones

67. Harvard innovation lab :
Hi
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
What do you celebrate & reward?
•
•
•
•
•
Sales !!
Marketing !
Engineering
Services ?
Admin ??
• And HOW?
– Management and / or peer?
– Public or private
67

68. Hi
Harvard innovation lab :
Startup Secrets :
Culture, Vision & Mission
@mjskok
@innovationlab
Michael J Skok :
#startupsecrets
www.mjskok.com
Recognition & Rewards Reinforce
Culture
• Form, Substance Style
– Form
• What does it reinforce?
– EG who come to sales “club”?
» Only sales people = what does this say about the rest of the org?
– Substance
• Alternatives to Stock, Money?
– Customize to the recipient
» EG Management take a day to do community work of their choice
– Recognition, Acknowledgement can be powerful
– Style
• Management and / or peer rewards?
• Public or privately given?
68

69. What we celebrate
Everything!
•
•
•
•
•
•
•
Customers Using the Software (AWESOME!)
New Hires
Feature Demos
Awesome Inbounds
Targeted Sales
Birthdays
Outside Interests
… and anything else we can come up with

70. What we celebrate
Chief Arbiter of
Taste
Klondike Kaptain
Burger Friday
Magistrate
Founder, Plaidoholics
Anonymous
Chief Beer
Officer
Master of
Martinis
Resident Handyman

71. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Culture
• Define it early, authentically, thoughtfully so it
can endure
– Try to find things to live by, model
• Don’t pay LLIP Service
– Should be consistent
• Even when pivoting your business
– EG Making acquisitions
• It’s a good test for whether the acquisition is a fit…
• Walk the talk
– Defined by YOU, so lead by example
71

72. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
“Everything [in
our strategy]
our competitors
could copy
tomorrow, but
they can’t copy
the culture –
and they know
it!”Herb Kelleher,
co-founder
72

73. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Do it right and you can build…
An enduring company
Vision
Execution
Value
Prop
Startup
People
Cultural Consistency
Enduring
Company
73

74. Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
#startupsecrets
www.mjskok.com
Company Formation
Agenda:
“Foundations for Building an Enduring Company”
• Part I (Tonight)
– Vision
– Mission
– Culture
• Part II (Nov. 7)
– People
• Hiring – we do a deeper dive in this class
• Team Building
74

75. Hi
Hi
Harvard innovation lab :
@innovationlab
Michael J Skok :
Startup Secrets :
Culture, Vision & Mission
@mjskok
Harvard innovation lab
#startupsecrets
www.mjskok.com
START UP
SECRETS
An insider’s guide to unfair competitive advantage
Culture, Vision / Mission
Part 1 of COMPANY FORMATION
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
75