On Thursday morning 1871 invited Mark Achler, Senior Vice President of New Business, Strategy and Innovation at Redbox, to speak about the importance of integrating value into the company culture of startups. Achler presented the audience with the following thesis: Value driven companies drive better shareholder results.
According to Achler, CEOs who create strong cultures and values from the get-go make better business decisions and have greater entrepreneurial success. For Achler, true success means overall employee happiness and a willingness to stay motivated when working on projects that are not part of their daily jobs or compensation plans.
He argues that the standard hierarchy of entrepreneurial needs—build a product, find customers and raise capital— is too simple: this hierarchy is missing an important conversation about values. To demonstrate this point he told stories from the Redbox archives that embody the companies six corporate values: integrity, respect, accountability, dedication, humility and communication.
Achler then shared insights on Redbox competitor Netflix and a time when its lack of communication had a negative impact, i.e. Netflix's unexpected decision to change its pricing and split their business in 2011. He asked the audience a few important questions regarding this change: How did you learn about it? Did the company care about you and carry you through the logic of their decision?
It was clear from the audience's visceral response that Netflix had made a mistake. They had a breakdown in communication, failing to leverage the great deal of consumer brand love they had at the time. This led to bad press and an explanation/apology letter on the Netflix blog that validates the points made by Achler. These negative effects are the reason that Achler considers communication to be one of the most important company values. He even goes as far as grouping good communication skills in with street smarts, initiative and problem solving skills during the hiring process.
