To build a meritocracy

About a year ago, we at Affirm decided to add an OKR to our annual planning titled “High-Performance Culture”, to help shore up the necessary means (for the necessary means) of improving our collective productivity. (Yes yes, big company stuff, whatever – we grew revenue 46% last fiscal year on essentially flat headcount, that’s pretty addictive, and it doesn’t hurt the stock price.)

We measure this OKR by asking every Affirmer a handful of questions about their experience getting work done, eg “do you feel like it’s pretty collaborative here”, etc, scoring it on a 10pt scale, and trying to improve our score quarter to quarter. Generally, our score’s pretty high, and trending gently higher, so all good then?

Maybe, but how do you do better? High-performance culture is pretty easy to define: a culture of individuals doing productive work for the company in the most efficient way possible and helping others do the same, while generally having a good time. But what do you actually do [sir] to have such a culture? And what do you not do??

So I jotted down a few incomplete one-liners of what that means to me as Affirm’s founder and CEO. This list is neither exhaustive (I reserve the right to add and remove things here) nor is it even especially well-organized, but culture is like obscenity in Jacobellis v Ohio: you know it when you see it.?

So here’s what I see at Affirm.?

mission

  • morality is a key ingredient in everything we do (and don’t do)
  • integrity is what got us where we are today, never compromise it
  • consumers, merchants, and capital partners are who we serve
  • stay humble and be curious about the needs of each of our constituents
  • take pride in providing safe access to fair credit; don’t judge what consumers use it for
  • bleed the colors, the values, the mission

merit

  • Affirm is a meritocracy: your talent, skill, and willingness to put it all to work define you here
  • we solve multivariate optimization problems – a certain minimum intellectual capacity is required
  • demand excellence from yourself and from your teammates, don’t settle
  • work-life balance tends to take care of itself if you love your work
  • …remember that this is a marathon – take care of yourself and those you love
  • if you can’t keep up, we’ll try our best to help, but eventually you may have to leave
  • if you see that someone can’t keep up, you should step in to help them

leadership

  • we are a culture of individuals working together as teams??
  • once someone is a part of the team, fully accept them as one of our own
  • whom you hire, and how you help them be productive is your top responsibility?
  • be an owner, not merely an employee
  • do not allow “us and them” dynamics to foment anywhere at Affirm
  • run towards a problem; don’t assume someone else will take care of it
  • be a stress absorber for your team, not a stress amplifier
  • an occasional heroic act that helps Affirm win is a good thing, not a sign of poor planning
  • constant heroic acts required for Affirm to survive is a sign of poor planning
  • lead by example

how we work

  • we take calculated risks – do the calculating!
  • make reversible decisions fast
  • bring the bad news to the team early – we’ll rally to help
  • use our product and understand its value to our customers
  • care about how we make things — mind the quality of the invisible parts
  • …do not let perfect be the enemy of shipping and iterating
  • time is the scarcest resource we have, be mindful of how you use yours, and your team’s
  • we are a writing culture, favor short, pithy n-pagers to novels or live rants
  • post-mortem everything: the successes, the failures, and the near-misses – and learn
  • we take our work extremely seriously — but not so much ourselves?

how we disagree

  • if you disagree, you must speak up, even escalate – especially before a decision is made
  • fear of being wrong is not an acceptable reason for not speaking up
  • never accept an unexplained “no” for an answer – ask why
  • challenge ideas! good ones can handle the scrutiny, bad ones need to die on the vine
  • even the harshest critique of your idea is not an attack on you, don’t take it as such
  • no matter how brilliant you are, being a jerk is a ticket out of Affirm
  • know our business well, and know your area of the business cold
  • argue using facts whenever possible, but give your gut a voice too
  • once the decision is reached, commit?

sometimes, Monday starts on Saturday


Original post from October 28, 2024

Thanks for sharing your thoughts on building a high-performance culture. It’s always inspiring to see how leaders navigate this important aspect of organizational growth. What do you think is the most critical challenge in fostering such a culture?

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Mykhaylo Kashyn

Learning and Organization Development | Program Development & Facilitation | Optimizing Performance & Empowering Teams | Leadership Development | Canada

2 周

I really like the idea of a section on handling disagreements, plus a post-mortem for every project.? It’s a valuable habit, especially with multiple iterations or when people come and go, leaving no clear record of Why certain decisions were made. Without that “why,” you might find the What and How, but rarely the reasoning behind it. This knowledge is key; otherwise, you’re revisiting old, failed projects without understanding the issues that led to their failure.

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Wade Arnold

CEO @ Moov | 3X Entrepreneur with Exit to Jack Henry | Built the Digital Banking System Used by 12 Million Monthly Active Users | Making Embedded Payments Accessible for Vertical SaaS Companies

2 周

Thanks for taking the time to write this and share with all of us Max Levchin

Gregory Anderson

Performance, Rewards, and Compensation Expert | Aspiring Inventor and Entrepreneur

2 周

Great insights. Rather coincidental/serendipitous when you said "you know it when you see it", which reminded me of a TQM book by John Guaspari called, "I know it when I see it", who later wrote a book on employee engagement titled, "Otherwise Engaged"... and the quote from you was in reference to corporate Culture. Everything is connected. Leaders with your insight are destined for success.

John Kimble

Chief Executive Officer at Detective

3 周

"morality" and "integrity"??? Yea right. Look at the people who work at Affirm (hint: snakes and manipulators).

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