Apr 20, 2018, 8:53 AM ETInterview, Fireside Chat, Podcast

Claire McDonnell and Jennifer Kim on Building an Inclusive Company Culture

Early-stage focus is critical: Founders should treat culture and Diversity & Inclusion (D&I) as core survival mechanisms rather than post-growth luxuries.
Performance correlation: A 1992 HBS and Cotter Institute study of 200 companies showed that firms prioritizing culture significantly outperformed peers in long-term economic performance, employment growth, and revenue growth.
Recruiting advantage: Intentional culture creates a "competitive recruiting force" where candidates become brand advocates; for example, a Lever candidate who rejected a role recommended his qualified friend, who was subsequently hired.
Retention drivers: Strong culture drives retention by fostering deep connections to the mission and team, allowing companies to withstand competitor poaching attempts (e.g., higher equity offers).
TruLink metrics: TruLink has grown its customer base 20x over three years while maintaining a woman or person of color leading every team.
Lever demographics: Lever maintains a roughly 50-50 gender split among its 150 employees, an uncommon feat in Silicon Valley.

Misconception warning: Culture is not defined by tangible perks (e.g., ping pong tables) but by hiring practices, decision-making, energy, and promotion criteria.
The "Water" analogy: Culture is often invisible to existing employees, similar to fish not noticing water, making it difficult to discuss and measure until problems arise.
Survival vs. distraction: Investing in culture insulates startups against existential threats by building a team that trusts one another and operates with fairness.
Perfectionism trap: No company is perfect; the goal is continuous progress and authentic intention rather than flawless execution from day one.
Risk of inaction: Neglecting culture increases the likelihood of unchecked biases and mistakes, leading to a higher risk of scapegoating and targeted discrimination.

"No Blame" button: TruLink avoids blaming individuals for errors; the focus is immediately on solving the problem and preventing recurrence before any reflection on the individual occurs.
Credit amplification: Teams use "amplification" techniques (repeating a contributor's name when presenting an idea) to ensure women and people of color receive proper credit for their contributions.
Cross-team respect strategy: To prevent engineering teams from being over-prized over support/ops teams, TruLink ensures all roles are celebrated equally to avoid perpetuating societal biases regarding race and gender.
Ride-alongs: Engineers sit with the support team for two hours to witness the complexity of their work, fostering mutual respect and dismantling the hierarchy between technical and non-technical roles.
Educational retreats: TruLink runs "101" sessions (e.g., Growth Marketing 101) to help employees understand the tactical complexity of other departments.
Hiring for humility: TruLink screens for humility and respect, often using "no jerks policies" and evaluating how candidates treat receptionists and junior staff members.

Onboarding immersion: New hires watch real sales calls and participate in Q&A sessions to demystify the stress and skill required in sales, countering the notion that the product "sells itself."
Interview panel diversity: Lever assembles interview panels across multiple seniority levels to prevent "resume dazzle" and identify subtle behavioral red flags (e.g., a candidate ignoring junior interviewers).
Structured feedback: The company uses Lever's feedback forms to gather independent data from interviewers before group debriefs, preventing groupthink and ensuring all perspectives are heard.
Modeling vulnerability: Founders openly discuss their own mistakes to signal that it is safe for employees to raise uncomfortable issues or admit faults.
Non-violent Communication (NVC): Lever utilizes NVC workshops to teach employees how to express needs and resolve conflicts empathetically rather than judgmentally.
Personality frameworks: Lever uses the "Colors" assessment to give employees a framework for understanding individual differences in communication styles and motivations.

Overlooking physical needs: YC missed the need for a lactation room at their Female Founders Conference until an attendee pointed it out, highlighting how a lack of diverse perspectives leads to oversights.
Role ambiguity in HR: Founders acting as the sole point of contact for HR issues (benefits, family problems) can create intractable conflicts of interest; TruLink now designates 2-4 other team members for these conversations.
Implicit policy failure: Failure to document expectations leads to employee confusion and turnover; writing policies down (e.g., on an internal wiki) saves time and clarifies expectations.
Meeting dynamics: Interruptions in meetings can perpetuate power dynamics; assigning an "interruption police" or using visual reminders helps mitigate this bias.

Jennifer Kim's article: "50 Ideas for Workplace D&I That You Can Start Today" serves as a practical primer for early-stage implementation.
Facebook's Managing Bias training: An online inclusion training adapted by Isaac at TruLink to manage cognitive biases quickly and cost-effectively.
Capra Capital's Founders Commitment: A pledge for early-stage startups to commit to small, meaningful D&I actions, accompanied by a suite of resources.
First Round Review: A publication with extensive archives of articles on culture and inclusion written by experienced practitioners.
Project Include: A nonprofit organization providing a comprehensive scaffold of recommendations for hiring, culture, and measurement for early-stage companies.
Self-care for leaders: Founders must prioritize sleep, exercise, and personal time to avoid burnout, which hinders the ability to embody the generosity required for culture building.
Empowerment strategy: Founders should identify and empower non-founder team members (e.g., Isaac and Paige at TruLink) to lead culture initiatives to ensure continuity and shared ownership.
Public signaling: Founders should share their learning journey (e.g., via social media or internal chats) to signal that culture is a priority and invite team participation.