For the past couple weeks, I’ve been digging into employee handbooks because a startup I’m involved with has grown to the point of needing one. Few perhaps realize how that document, usually given to you on your first day and then mostly forgotten, shapes culture and thereby fundamental organizational performance.

As one reference point, a company I’ve recently worked for has a 40+ page tome that starts every section with “COMPLIANCE IS ESSENTIAL” highlighted in bold, with “required to conform” sprinkled liberally throughout the document, and ending with a meaty discussion of the punitive measures that would happen upon deviation. And that’s a company very innovative in many ways.

At the other extreme is Zaarly, a San Francisco startup. Its employee handbook, posted online, talks directly to culture. In the “Rules for Work” section, it begins with, “We don’t have these.” And in a style prevalent throughout the document, it adds that, “If you want to coast, we recommend you apply for a job at Craigslist.” There are some good thoughts on teams, work, and communication—but no rules.

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