A healthy company culture encourages people to share bad news. A company that discusses its problems freely and openly can quickly solve them. A comp… - Ben Horowitz

even if we laid off 100 percent of the employees, the infrastructure costs would still kill us without a sharper sales ramp.

Specifically, each of our three deals contained something that had come to be known in the industry as the “CA clause” in honor of the infamous software company Computer Associates, or CA for short. The CA clause had come about as a result of some of CA’s business practices. Apparently CA had tricked their customers by selling them maintenance contracts that gave them rights to free upgrades forever for products named “X.” CA would then change the name of product “X” to product “Y” and charge their customers for an upgrade the customers thought they were entitled to for free. It was very clever, and totally dirty.

Me: “Let me break it down for you. In good organizations, people can focus on their work and have confidence that if they get their work done, good things will happen for both the company and them personally. It is a true pleasure to work in an organization such as this. Every person can wake up knowing that the work they do will be efficient, effective, and make a difference for the organization and themselves. These things make their jobs both motivating and fulfilling. “In a poor organization, on the other hand, people spend much of their time fighting organizational boundaries, infighting, and broken processes. They are not even clear on what their jobs are, so there is no way to know if they are getting the job done or not. In the miracle case that they work ridiculous hours and get the job done, they have no idea what it means for the company or their careers. To make it all much worse and rub salt in the wound, when they finally work up the courage to tell management how fucked-up their situation is, management denies there is a problem, then defends the status quo, then ignores the problem.” Steve: “Okay.