Copied and pasted most interesting section. Source: http://blog.42floors.com/thirty-percent-feedback/
How to Build 30 Percent Feedback into the Culture of Your Startup
Lead by example
Duh.Don’t worry about anything else below if you can’t there.
Ask for it explicitly
You have to be deliberate because you’re fighting against an innate fear most people have: fear of rejection. Some of your best people are accustomed to being good at everything they do, so they may be the toughest to get on board.You have to explicitly ask people to be on board with this concept.
Reward People with great feedback
Whenever someone comes to you for early feedback you have to reward it. If, even just once, you reject someone’s draft because it’s not polished enough for you, you’ll teach everyone else in the organization to always be 100% done before approaching you.Execs at big companies may want everything perfect before it gets to them, but that’s no way to run a startup.
Praise Speed
When someone takes way too long to get a first draft out because they’re being perfectionists and you praise them for their quality craftsmanship, it teaches everyone to do the same. You should, instead, praise people that move incredibly fast. We always strive for one week. Even for the most complex projects, we try to see what can come out as a first draft within one week. From that point on, they can get feedback and start iterating.Demo Regularly
Set up the company for everyone to demo at your weekly meetings, regardless of what stage their project is in. It’s more of a show us whatever you have. PG would do this to us at YC, making us demo every week. It was both daunting and humbling. But once we got used to it, we actually got addicted to the immediate feedback. That’s the culture you want.One final note. Every once in awhile you’ll still have to give someone tough feedback when they thought they were 90% or 100% done. It always feel shitty to have throw away work. But hopefully with this system, it will happen much less. And the result will not only be better products, but happier people.