Luca Barberis
Organizations

Culture is a tool.

Every culture session at every startup retreat ends with the same words on the wall. Same goals, same values. Monks, legionaries and revolutionaries had other goals, and their values look nothing like ours.

00

In brief

The argument in three lines. Rows are the claims; the second column is the example that carries each one.
ClaimExample
Same goal, same values.Startup values pages. Integrity tops the list in three separate counts of large companies.
Different goal, different values.A Benedictine vows to stay in one house for life. A Jesuit vows to leave at once for wherever he is sent.
The context does the rest, and sometimes it comes first.Google. Its success made its culture possible, not the other way round.
01

The retreat

All culture sessions at software startup company retreats are the same.

The room is asked what makes the company unique. The wall ends up with speed, ownership, the customer and some word for excellence.

I have three observations from the companies I worked in. The values are always the same.

Nobody beyond their first two jobs believes in them. Everybody still does the session.

I have nothing against culture. It matters a lot.

Culture is a tool. Organizations keep trying to make it an absolute. It isn't one.

By the end of this piece you should be able to read an organization's goal and predict its culture before anyone picks up a marker. It works on a seed-stage startup and on a religious order founded in 1540.

02

The same words on every wall

Researchers have counted this. Donald Sull's team at MIT read the official values of nearly 700 large companies and found that more than 80% publish a list.

The same few words top every count.

Integrity is on the wall in all three studies
Most common official company values in three studiesShare of companies listing each value. MIT Sloan: integrity 65 percent, collaboration 53, customer focus 48, respect 35. Guiso, Sapienza and Zingales: innovation 80, integrity 70, respect 70. Lencioni: integrity 55, customer satisfaction 49, teamwork 40.MIT SLOAN, 2020. NEARLY 700 LARGE COMPANIESIntegrity65%Collaboration53%Customer focus48%Respect35%GUISO, SAPIENZA, ZINGALES. S&P 500Innovation80%Integrity70%Respect70%LENCIONI, 2002. FORTUNE 100Integrity55%Customer satisfaction49%Teamwork40%
Share of companies listing each value. Three different samples and years, so the bars compare within a study, not across. All three cover large established companies. I found no equivalent count for startups, so the startup claim rests on my own experience.

Enron's four values, printed in its 2000 annual report, were Communication, Respect, Integrity and Excellence.

Then there is the belief. The people who write the values and the people who live under them report different things.

Almost everyone publishes values. About a quarter believe them.
The gap between published values and reported belief85 percent of S&P 500 firms have a values section online and 92 percent of executives say improving culture would raise firm value. Only 16 percent of executives say their culture is where it should be. 27 percent of US employees strongly believe in their organization values, 23 percent can apply them daily, and 20 percent feel connected to the culture.WHAT COMPANIES SAYS&P 500 firms with a values section online85%Executives: better culture would raise firm value92%WHAT PEOPLE REPORTExecutives: our culture is where it should be16%US employees who strongly believe in the values27%US employees who can apply them every day23%US employees who feel connected to the culture20%
Four separate surveys: Guiso, Sapienza and Zingales (S&P 500); Graham and co-authors (executives at 1,348 North American firms); Gallup 2016 and 2022 (US employees, "strongly agree" only). Different populations, so the gap is indicative, not a single measurement.

Sull's team then compared each company's official values with how its own employees described the culture in more than a million Glassdoor reviews. They found no correlation.

03

The goal, then the context

Edgar Schein, who more or less founded the field, defined culture as what a group learned while solving its problems of survival. It worked, so the group kept it and taught it to newcomers.

In that definition the problem comes first.

It starts with the goal and it grows with the context. Sometimes it runs the other way, and the context comes first.

I worked inside two of the more different cultures around: Google and Rocket Internet.

Google was a monopoly, as a US court ruled in 2024. It could afford a culture built around its people.

It's not the culture that made Google. It's Google's position and success that made the culture possible.

A bunch of engineers found themselves wildly successful, and that turned into a culture nobody else had.

Try to apply that amazing culture to launching ecommerce copycats in the developing world. A disaster would ensue.

That was Rocket's job. In October 2011 Oliver Samwer emailed his teams a plan to be number one in online furniture within a year. He called it a "blitzkrieg", a word he later apologised for.

I ran ZALORA markets for Rocket.

My hypothesis is simple. Tell me who funds the company and what kind of market it is in, and I can guess the words.

My hypothesis, with examples. Rows are the situations a company can be in; the columns give the values I expect and words that real companies in that situation publish.
SituationWhat I expectWords on the page
VC-backedSpeed. The investor's return is the goal, and a fund has about ten years to produce it.Meta: "Move Fast". Stripe: "Move with urgency and focus". Uber until 2017: "Always be hustlin'".
A competitive marketSpeed and excellenceAmazon: "Bias for Action", "Insist on the Highest Standards". Netflix: "Great and Always Better". Shopify: "Chase excellence".
An exploratory fieldInnovation, creativity and their variantsOpenAI: "Creativity over control". IDEO: "empathy, humility, and open-mindedness". Netflix: "Curiosity", "Creativity".
A regulated environmentIntegrity, safety, controlJPMorgan Chase: "fortress balance sheet", "good compliance is good business". Goldman Sachs: "Integrity". Boeing: "Safety & Quality", listed first.
BootstrappedResourcefulness and independence. That is what the company and the founder are about.Zoho: "Leaving money on the table". 37signals: "Bootstrapped, profitable, & proud".
Examples I picked, not a sample. Wording is from each company's own page, except Meta and Uber's old list, which come from press reports. Some companies do not fit: Zapier took almost no venture money and still says "Default to action".

These are minor fluctuations. Most companies operate in competitive markets, need to get things done and need to grow revenue or profit.

All companies' cultures are more or less the same because the goals are the same.

04

Change the goal

A real test needs organizations with other goals.

What if we don't call it culture, and we look at political parties and religious organizations? Their goals are different, and here the values finally change.

They change so much that they are not even called cultural values anymore. But they are there.

Every organization has a culture, written or not, shouted in a company retreat with 20-somethings or practiced in the corridors of Santa Marta.

From goal to culture in eighteen organizations. Rows are organizations, grouped by type. Columns read left to right as a chain: the goal, the values it produced, how they were installed, and one checkable fact.
OrganizationGoalThe cultureHow it is installedFact
Religious organizations
Benedictinesc. 530A stable community where a monk works on his salvationStability, obedience, humility in twelve stepsA year of novitiate, then a vow that binds for life to one house. Readings aloud at every meal.Written about 530. Benedictine monasteries still live by it.
Jesuits1540The progress of souls, wherever the pope sendsObedience "in the manner of a corpse", availability, learning8 to 17 years of formation. A fourth vow to leave at once for any mission.Sixteen years after its founding the order ran 74 colleges on three continents.
Roman CuriaGovern a worldwide church from one officeSecrecyThe pontifical secret (1974). Breaking it is a grave sin.In 2014 Pope Francis listed 15 "diseases" of his own Curia, gossip and rivalry among them.
Empires
Roman RepublicExpansion, led by aristocrats competing for office and gloryMos maiorum: virtus, pietas, fides, gravitas, disciplinaCitizens levied for each war. About ten years in the army, then a fixed ladder of offices: quaestor at 30, consul at 42.A unit that broke in battle could be decimated: one man in ten, chosen by lot, killed by his comrades.
Roman EmpireAugustus, 27 BC to AD 14Peace and order under one man, after decades of civil warPeace (pax), loyalty to the princeps, clemency and justice as the ruler's advertised virtuesA permanent army of career soldiers serving 16, later 20 years, with a discharge bonus from a military treasury. The emperor as the ultimate source of patronage.Augustus closed the Gates of Janus, the sign that Rome was at peace, three times.
Imperial ChinaRun a vast empire with officials picked by merit, not birthFilial piety (xiao), loyalty (zhong), ritual (li)An examination on the Confucian classicsThe exam ran from 605 to 1905. About one candidate in a hundred passed.
Ottoman EmpireA military and administrative class that depends on the sultan alonePersonal loyalty, discipline, servant (kul) statusThe devshirme: Christian boys levied, converted and trained, the best sent to the palace schoolA levied boy could rise to grand vizier, the highest office in the empire.
SpartaA citizen army able to hold down a much larger subject populationEndurance, austerity, the city before the familyThe agoge, from about age 7 to 30A man who was not admitted to a common mess could not be a citizen.
British IndiaRule a subcontinent with a tiny cadreThe generalist: Oxbridge arts graduates preferredAn open exam in London, then probation studying Indian law and a provincial languageAbout 1,000 officers governed more than 300 million people.
Political parties
Leninist party1902Take powerProfessional revolutionaries, unity of actionDemocratic centralism: free debate, then a binding decision. Factions banned in 1921.The 1921 ban on factions was announced as temporary. It was never lifted.
Nazi Partybefore 1933Win powerStruggle, activism, the street. The "old fighters".Permanent election campaigning from 1931. The SA, about 400,000 men by 1932, fighting rival paramilitaries.The party went from 2.6% of the vote in 1928 to 37.3% in July 1932.
Nazi Germanyafter 1933Hold the state and keep the army on sideObedience, conformity, the "people's community"The only legal party from July 1933. Party and state merged that December. The SA leadership killed, 30 June to 2 July 1934.SA membership fell from 2.9 million in 1934 to 1.2 million in 1938.
Catch-all partyWin electionsLittle ideology, strong leaders, no fixed class basePositions converge on the median voterOtto Kirchheimer named the type in 1966, as European parties shed their ideology.
Government agencies
US Marine CorpsExpeditionary combatHonor, courage, commitment. "Every Marine a rifleman."13 weeks of recruit training, ending in a 54-hour field testEvery officer, whatever the specialty, first trains to lead an infantry platoon.
US Forest ServiceThe same decision from rangers scattered across remote districtsVoluntary conformity, identification with the ServiceSelection, training, official diaries, inspections, transfersRangers kept official diaries of their working days, open to inspection.
International organizations
Red CrossReach victims on every side of a warNeutrality, impartiality, independenceSeven Fundamental Principles, proclaimed in 1965. Discretion with governments.It stayed publicly silent on the Holocaust and has been criticised for it since.
Médecins Sans Frontières1971Treat the victims and tell the world what is being done to themTémoignage: speaking out about what its doctors seeFounded by French doctors who had worked with the Red Cross in Biafra and criticised it in publicAccepting the 1999 Nobel Peace Prize, its president said: "Silence has long been confused with neutrality."
NATO1949Collective defence: an attack on one member is treated as an attack on allConsensusNo voting, in any committee. Consultation continues until every member can accept the decision.Consensus has been the only basis for NATO decisions since 1949.

scroll the table sideways →

Each row is compressed from encyclopedias and standard histories, and the goals are my reading. I am not a historian.

The cleanest case sits inside one church. A Benedictine vows to stay in one house for life. A Jesuit vows to leave at once for wherever he is sent.

They share a God, a pope and a set of scriptures. The job is different, so the value is the opposite.

Opposite goals, opposite values. Each row pairs two organizations of a similar kind; the columns show the value each chose and the goal behind it.
The choiceOne sideThe other side
Stay or goBenedictines: stability. The goal is a lasting community.Jesuits: mobility. The goal is a mission anywhere.
Doctrine or votesLeninist party: one line, no factions. The goal is to take power.Catch-all party: drop the ideology. The goal is to win elections.
Own it or conformUber, 2017: "We act like owners". A company chasing growth needs people who decide without waiting.US Forest Service: voluntary conformity. The goal is the same decision from every ranger, however remote.
Silent or loudRed Cross: neutrality and discretion. The goal is access to victims on every side.Médecins Sans Frontières: speaking out. Its founders left because silence looked like complicity.

Rome is the same organization with two goals. The Republic ran on aristocrats competing for office and military glory. Its armies were citizens levied for one war at a time.

Augustus needed the opposite. After decades of civil war he had to convince Romans that prosperity without war beat the wealth and honour a war could bring.

So the legions became a permanent paid profession, he became the ultimate source of patronage, and peace got its own altar. He kept the Republic's name and its letters, SPQR.

The Nazi party shows the change at its most brutal. Before 1933 the goal was to win power, and the culture was struggle: permanent campaigning and the SA fighting in the streets.

After 1933 the goal was to hold the state, and Hitler needed the army. The SA's chief wanted a "second revolution" and wanted his men to replace that army.

The culture that had won power now threatened the new goal. In three days in 1934 the regime killed the SA's leaders, at least 85 people in all.

Santa Marta is the quiet version. Casa Santa Marta, in Latin Domus Sanctae Marthae, is the Vatican guesthouse where Pope Francis lived from 2013 until his death in 2025.

In December 2014 he listed the Curia's habits to its face: gossip, rivalry, courting superiors, closed circles. None of that was written on a wall. It was the culture anyway.

The nation state is the most important organization of our time. It is the same tool at the largest scale, installed through schools and armies.

Ernest Gellner argued that an industrial economy needs a mobile, literate workforce, so the state spreads one standard culture through schooling. Each state still wrote its own version, because each had its own problem.

Six nation states, six goals. Rows are states at the moment they built a national culture. Columns read as in the table above: the goal, the values, how they were installed, and one fact.
StateGoalThe cultureHow it is installedFact
Prussiafrom 1763A state built around its army, which needed disciplined subjects to fill itDuty, sobriety, disciplineCompulsory school from 1763, for children from about 5 to 13. Reformed again after Napoleon beat Prussia at Jena in 1806.Prussia made school compulsory more than a century before France did.
FranceThird Republic, from 1870Turn peasants into citizens of one republicOne language, the secular RepublicFree, compulsory, secular school (1881-82), taught only in French. Pupils shamed for speaking dialect. Conscription.In 1863 about a fifth of the French spoke no French.
Italyfrom 1861Make one people out of states unified only in 1861One language, one nationState schools and the army, in a language few people spokeBy one estimate 2.5% of Italians spoke Italian in 1861. Another says 10%.
JapanMeiji, 1868 to 1912Catch up with the West. The slogan was "enrich the country, strengthen the armed forces".Loyalty, filial piety, offering oneself to the stateThe Imperial Rescript on Education (1890), read aloud at school events and memorised by every pupilEach school kept the text beside the emperor's portrait. Parliament abolished it in 1948.
Turkeythe republic, from 1923Build a nation state out of the remains of a multi-religious, multi-ethnic empireSix principles: republicanism, populism, nationalism, laicism, statism, reformismThe caliphate abolished in 1924. Religious law replaced in 1926 by a civil code adapted from Switzerland's.The six principles were fixed in 1937.
Singaporefrom 1965Survival of a small multi-ethnic city state that became independent with about 1,000 soldiers"Nation before community and society above self". "Consensus not conflict". "Racial and religious harmony".National service from 1967. Five Shared Values proposed by the government in 1988.Parliament voted on the five values on 15 January 1991.

scroll the table sideways →

France and Italy needed a people. Prussia needed soldiers, Japan needed to catch up, Turkey needed a break with its past and Singapore needed to survive.

Singapore is the one that did it in the open. A government wrote five values and a parliament voted on them, which makes it the largest culture session I know of.

Italy has the best line. "Italy is made, now we must make Italians" is credited to Massimo d'Azeglio, who probably never said it in those words.

The fourth column of the long table is where the culture lives. None of these organizations relied on a workshop. The values were installed through who got admitted, promoted, punished and paid.

Culture is a tool to achieve the goal of the organization. It starts with the goal and it ends with the culture, even if this is rarely specified or admitted.

05

More than one goal in the room

Startup people are quick. They understand what it takes to be promoted long before the retreat.

And when the startup is a bit less ruthless, they manage to slip some compassion in. They find a way to be nice somewhere inside the organization.

That is the goal of the employees. It is not necessarily the goal of the founder.

So one group can hold different goals, and the different goals become different values. The founder's list goes on the wall. The others live in the teams.

This may be why only about a quarter of employees say they believe the official values. The list answers to one goal in a room that has several. That is my guess, not a finding.

06

Two real objections

Two objections are strong enough to threaten the whole idea.

The first: same goal, different cultures. James Baron and Michael Hannan at Stanford followed nearly 200 Silicon Valley technology startups.

Same valley, same years, same goal. The founders still built five different kinds of company.

Founders' blueprints in the Stanford study. Rows are four of the five models; the columns give what holds people in the company and what the study found.
BlueprintWhat holds peopleWhat happened
EngineeringChallenging work, hired for skill, controlled by peersThe most common choice, nearly a third of founders
CommitmentAttachment to the company itself, hired for fitLeast likely to fail and fastest to go public
StarExceptional people given autonomyFastest growth in market value after going public
AutocracyMoney, and a boss who watchesMost likely to fail
Baron and Hannan, 2002. The fifth model is bureaucracy, and many firms fit no clean type. One study, one region.

Firms that later changed blueprint were about 2.3 times as likely to fail.

So the goal did not pick the culture. The founder did, from what he already believed before the company existed.

The choice still changed the result, which keeps culture a tool. But some founders picked a better tool than others for the same job, and none of them could swap it cheaply.

This is the Google point seen from the other side. The people and the moment write the culture as much as the goal does.

The second: the tool becomes the goal. Robert Merton saw it in bureaucracies in 1940. A rule starts as a means, people are trained to follow it, and it ends up valued for itself.

In his words, "an instrumental value becomes a terminal value".

Robert Michels saw it in the German Social Democrats in 1911. The party was built to change society. Its own growth overshadowed the programme, and the leaders put its survival first.

The Janissaries were recruited to depend on the sultan alone. They ended as a faction that made coups, and the sultan destroyed the corps in 1826.

Philip Selznick gave it a name in 1957. To institutionalize, he wrote, is to "infuse with value beyond the technical requirements of the task".

This one cuts deeper. I said organizations keep trying to make culture an absolute. Merton would say it is what normally happens.

If he is right, culture is a tool only at the start. Later it has its own weight, and it starts choosing the goals.

I don't have a clean answer. The organizations in my table that changed goal had to break something first: Rome a republic, Germany its own stormtroopers, Uber its founder.

07

Why everybody still does it

The format has authors. In 1996 Jim Collins and Jerry Porras told companies to pick five to seven people and have them name three to five core values.

Sociologists can explain why it spread. Organizations facing uncertainty copy each other, and some practices are adopted as ceremony, to look legitimate.

I have one more theory. People need to believe in something, and they need to belong.

Psychologists treat the second need as basic. Roy Baumeister and Mark Leary argued in 1995 that the need to belong is a fundamental human motivation.

Maybe some of the people in the room are looking for an absolute, and they pour that longing into corporate buzzwords.

Or it is simpler. People need a sense of belonging, and a culture is the answer a company can offer to that need.

Either way the session would serve the people in the room as much as the goal of the company. It would also explain the second objection: a tool that answers a need like that does not stay a tool for long.

I wonder if in Italy they do it less because they saw Fantozzi, and they are very careful not to look like Fantozzi.

Ugo Fantozzi is an accountant invented by the Italian comedian Paolo Villaggio. The first book came out in 1971 and sold over a million copies. Ten films followed between 1975 and 1999.

Fantozzi works at the Megaditta, the mega-company. His colleagues drag him into company outings: bicycle races, football on muddy fields, tennis at six on a Sunday morning.

Nobody wants to be there. Everybody has to fit in somehow.

In the second film, from 1976, a boss who loves art cinema makes the whole staff sit through Battleship Potemkin at the company film club. Everyone pretends to love it.

Then Fantozzi stands up and says what he thinks of the film. The room gives him a standing ovation that lasts 92 minutes.

I have always seen Fantozzi as the fake side of these retreats. People have to fit somehow, and they end up doing the format Collins suggested.

Would Collins have suggested that format if he had seen Fantozzi? And would these retreats work if people had seen him?

Notes & sources

Company values and belief

The goal and the context

Organizations that are not companies

The objections, and Fantozzi