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The Rework Podcast

Built on Trust

27 min episode · 2 min read
·

Episode

27 min

Read time

2 min

Topics

Remote Work, Investing, Startups

AI-Generated Summary

Key Takeaways

  • Expense autonomy: Employees receive company credit cards with one policy—spend wisely on job necessities—without approval processes or spending limits below several thousand dollars, reviewed only after the fact if concerns arise.
  • Data access protocols: While most operations run on trust, customer email access in HEY requires multi-layer encryption, documented reasons for unlocking data, and secondary team review to protect sensitive information despite trusting employees.
  • Remote work oversight: Managers gauge work quality and pace through weekly planning questions, daily work summaries, and six-week heartbeat reports rather than monitoring time spent at desks or using surveillance tools.
  • Cloud cost reallocation: Exiting cloud services saved two million dollars annually, which flows through profit-sharing to employees, creating financial incentive to spend cautiously on unnecessary expenses while investing in quality tools.

What It Covers

37signals cofounders explain how they built a high-trust organization over 20 years, allowing employees unrestricted access to delete tasks, approve their own expenses, and work remotely without micromanagement or permission-based workflows.

Key Questions Answered

  • Expense autonomy: Employees receive company credit cards with one policy—spend wisely on job necessities—without approval processes or spending limits below several thousand dollars, reviewed only after the fact if concerns arise.
  • Data access protocols: While most operations run on trust, customer email access in HEY requires multi-layer encryption, documented reasons for unlocking data, and secondary team review to protect sensitive information despite trusting employees.
  • Remote work oversight: Managers gauge work quality and pace through weekly planning questions, daily work summaries, and six-week heartbeat reports rather than monitoring time spent at desks or using surveillance tools.
  • Cloud cost reallocation: Exiting cloud services saved two million dollars annually, which flows through profit-sharing to employees, creating financial incentive to spend cautiously on unnecessary expenses while investing in quality tools.

Notable Moment

During final hiring stages, routine verification revealed a candidate had fabricated their entire work history and positions—the only instance of deliberate fraud in 25 years, caught because their exceptional skills seemed inconsistent with deception.

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Episode Transcript

Welcome to Rework, a podcast by thirty seven Signals about the better way to work and run your business. I'm Kimberly Rhodes from the thirty seven Signals team joined by thirty seven Signals cofounder and CTO David Heinemeier Hanssen. This week, we're talking about building a high trust organization. The reason this came up is because we constantly have customers asking us how they can prevent people from doing things in Basecamp. Like, anyone can delete a task or archive a file. Our answer is always like, well, we just have a very trusting organization. I don't think that is by chance. I think that's been built over the years. So, David, let's talk about that a little bit. I mean, I don't know if you've intentionally you and Jason have built that kind of trust within the organization, but it's what we always tell people. We just are very trusting. I think the trust though is partly, consequence of the kind of culture and the kind of hiring that we do. And I think we've ended up with over twenty years of having a lot of people through the company. Some have worked for us for a short amount of time, some work for a long amount of time. But the kind of catastrophic anecdotes that I can pull on when we have extended too much trust and it went wrong, it's a really short list. It's not zero. Like, there's always the opportunity that you just you're wrong about someone, and they did not, for whatever reason, deserve the trust that you extended to them. But But I think what's key here is to divide the calamities that could possibly occur if someone you trust prove out not to be worthy of that trust. There are certain aspects of the business where the trust really is truly critical, and that's around areas like data access. Right. So when it comes to accessing customer data, especially on something like, Hey, where you're dealing with personal emails, we actually have a multilayered step process that communicates that, you know what, we may trust you, but this is so critical and this is so important that even our most trusted employees still have to go through quite a few steps. So for example, when someone is investigating a issue with, hey, and emails aren't being delivered or there's something else wrong, they usually have to go in and look at the database. But right from the get go, we knew that if the staff we had had full access to the data and just through their normal course of business, their normal investigations, their normal help of customers, were exposed directly to emails and the subjects and the rest of it, that wasn't gonna be something we'd be comfortable telling customers. In fact, it goes further back than that. When we were building HEY, I was trying to get my wife to use it because I thought, like, hey. You write …

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