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Written by Netflix Co-founder and CEO and a business professor, "No Rules Rules" provides insight into the effort necessary to build and maintain a strategic culture in a new company. For Netflix, the focus is on being innovative and enabling the company to move and adapt on the fly to expand and stay ahead of competitors.
Although this specific cultural approach is unsuitable for many industries, it provides some great ideas that can be adapted to many organizations. It also shows just how culture and business success are connected and how one reinforces the other when executed well.
Fundamentally, this approach focuses on identifying and retaining "star employees", making open feedback a daily requirement and reduction in process and red tape in the organization.
An interesting read.
#Netflix#BusinessCulture#Innovation#Adaptability#BusinessSuccess#culture#culturechange#talent#alignmentmatters#feedback#transparency
𝐑𝐞𝐝𝐞𝐟𝐢𝐧𝐢𝐧𝐠 𝐒𝐮𝐜𝐜𝐞𝐬𝐬: 𝐏𝐚𝐭𝐭𝐲 𝐌𝐜𝐂𝐨𝐫𝐝’𝐬 𝐂𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐑𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐚𝐭 𝐍𝐞𝐭𝐟𝐥𝐢𝐱
Netflix's transformation from a struggling DVD rental service to a global streaming giant didn’t just happen by chance. A key factor in this success was the cultural revolution led by Patty McCord, Netflix’s former Chief Talent Officer. Here’s how she reshaped the company’s culture and set the stage for its meteoric rise.
𝟏. 𝐇𝐢𝐠𝐡-𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐓𝐞𝐚𝐦𝐬:
McCord believed in building a team of top performers. At Netflix, mediocrity wasn’t an option. The company prioritized excellence, ensuring that only the best talent thrived.
𝟐. 𝐂𝐚𝐧𝐝𝐨𝐫 𝐚𝐧𝐝 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲:
McCord emphasized radical candor and transparency. Feedback was continuous and direct, fostering an environment of trust and alignment. This approach encouraged open dialogue and rapid improvement.
𝟑. 𝐅𝐥𝐞𝐱𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐰𝐢𝐭𝐡 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲:
Netflix broke away from rigid corporate structures. Employees were given flexibility in managing their work but were held fully accountable for their results. This balance empowered employees to take ownership of their responsibilities.
𝟒. 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐨𝐮𝐬 𝐅𝐞𝐞𝐝𝐛𝐚𝐜𝐤:
McCord eliminated the traditional annual performance review, replacing it with continuous feedback. This change allowed for real-time improvements and kept employees engaged and motivated.
𝟓. 𝐋𝐢𝐯𝐢𝐧𝐠 𝐭𝐡𝐞 𝐕𝐚𝐥𝐮𝐞𝐬:
At Netflix, company values weren’t just words—they were embedded in every action. McCord ensured that these values guided everything from hiring to decision-making, creating a strong and coherent organizational identity.
Patty McCord’s cultural revolution at Netflix wasn’t just about making the company more efficient—it was about creating an environment where innovation and excellence could thrive. Her approach serves as a powerful reminder of the impact that the right culture can have on a company’s success.
There is an excellent interview of Patty McCord on how the culture at Netflix was created. Do check it out.
#netflix#hr#culture#tech
Are you looking for a case study on #people and #culture excellence that could inspire your #organization?
Look no further than #Netflix! In their book "No Rules Rules: Netflix and the Culture of Reinvention," Reed Hastings and Erin Meyer describe the unorthodox #culture behind one of the world's most innovative and successful companies.
To achieve greatness, Hastings rejected conventional wisdom and built a culture focused on freedom and responsibility.
At Netflix, people come first, innovation is prioritized over efficiency, and employees are given context instead of controls. The company has no vacation or expense policies, and adequate performance gets a generous severance. Hard work is considered irrelevant, and employees don't try to please their boss; instead, they provide candid feedback. At Netflix, employees don't need approval, and the company pays top of the market.
When Hastings and his team first devised these unorthodox principles, the implications were unknown and untested. But in just a short period, their methods led to unparalleled speed and boldness, making Netflix one of the most loved brands in the world.
Your organization could learn from Netflix's approach to people and culture excellence
#strategicthinkingAMREFNetflix#culturechange
🚀 Excited about the new iteration of Netflix's culture code! It's a masterclass in building a high-performing, people-centric organization.
Netflix's principles align closely with what we believe at agyleOS:
🌟 The Dream Team: High performers who excel individually and together.
🧠 People over Process: Empowering employees with freedom and information to make impactful decisions.
💡 Uncomfortably Exciting: Embracing boldness and ambition to entertain the world.
📈 Great and Always Better: Continuously striving for excellence and improvement.
At agyleOS, we share the same commitment to creating environments where talented people can thrive. Our platform helps visualize organizational structure, optimize skill management, and foster a collaborative culture. It's designed to support the principles Netflix champions.
If you want to learn more about agyleOS, just drop me a line 😉 and if you want to dive deeper into the said updated Netflix culture memo, you will find it here: https://lnkd.in/dW7yw-PJ#companyculture#netflixculture#peopleandculture#skillmanagement#skills#careerdevelopment
Thanks Arsalan. I still haven't watched it, but I’ve saved it in my to-watch queue. From what you’ve explained, this sounds like the concept of Ambidextrous Leadership (AdL), which is a mix of explorative (i.e., innovation, freedom) and exploitative (i.e., functionality and accountability) behaviours. From my limited understanding, I have to agree that 'it is a lot easier said than done'. The reason is that multiple and multisource requirements have to be in place and satisfied for AdL to actualise, e.g., contextual, environmental, personal, and organisational factors. At the end of the day, true AdL won't be realised unless every single individual starts acting that way.
P.S.: It seems that attracting and retaining top talent in organisations has become a high priority. However, I believe that for us to live better lives, we need to onboard every single human being and support their improvement, rather than mainly focusing on those who have already passed the bar. This reminds me of many years ago when schools were accepting students with higher than a certain GPA and claimed their success based on that; not that the perspective has changed much today. The imbalance caused by such a perspective does not allow our ship to go far!
Lead Structural Engineer | Expert in Building Structures | Balancing Economic Efficiency with High Safety Standards via Advanced Structural Analysis & Design |
A Must-Watch on Netflix’s Unique Approach to Company Culture
I recently listened to an episode of The Diary Of A CEO by Steven Bartlett, where Marc Randolph, the co-founder and former CEO of Netflix, shared some truly eye-opening insights about leadership and company culture. What struck me the most was his discussion on how Netflix built and sustained its "Freedom and Responsibility" culture, something I think every leader can learn from.
Marc highlighted that culture isn’t something you dream up or aspire to; it’s what actually happens every day in your organization. It’s not about brainstorming ideal values, but about how leaders behave and the examples they set. Employees watch their leaders closely, and they model their own behavior accordingly. That is what culture truly is.
At Netflix, this meant creating a culture where employees were treated like responsible adults, given the freedom to make decisions but also held accountable for the outcomes. As Marc put it, there were almost no traditional policies, no travel policy, no vacation policy, no expense policy. Instead, the guiding principle was simply: "Use Your Best Judgment." This approach might sound risky, but it’s exactly what allowed Netflix to attract and retain top talent who thrived under these conditions.
But let’s be clear, this culture wasn’t about being nice or avoiding tough conversations. It was about honesty, accountability, and giving people the space to make their own decisions. The result? A workplace where creativity and innovation could flourish, without the constraints of unnecessary rules and micromanagement.
And if you’re curious about how Netflix managed to maintain this culture even as it grew to thousands of employees, I highly recommend watching the segment on "Netflix Culture" from 1:41:46 to 1:52:55 in the episode. Marc shares some fascinating stories, including one about a hot tub (yes, a hot tub!) that I won’t spoil here, you’ll have to watch to find out the full story!
What are your thoughts on building a culture based on trust and responsibility?
#Leadership#CompanyCulture#WorkplaceCulture#NetflixCulture#FreedomAndResponsibility#Innovation#TrustAndAccountability#LeadershipDevelopment#CorporateCulture#CultureMatters#BusinessLeadership
Netflix's Latest #Culture Memo
More than ten years ago, Netflix had announced their cultural principles based on "Freedom and Responsibility." It deeply resonated with me, challenging conventional thinking and stressing upon building a truly #empowering and high-#performance team, not a family.
Building business and nurturing unique work cultures has been a continuous learning journey for me.
And, one methodology that has remained constant throughout is
the importance of establishing clear and concise core operating principles that seamlessly align #business goals, unique #leadership, and #individual#employee needs. An awesome workplace where inherent uniqueness is addressed and #people become a better version of themselves!
Operating Principles come alive and offer people an understanding of how to #work with each other, get work done, make #decisions, manage #change, and offer a self-test of what to do when no one is watching.
The new #Netflix culture memo is a highly recommended read on building a high-performance company.
As a #founder and a #leader, this is an essential piece that should be built out to build a great company that stands the test of time. The special #space where your business, yourself, and your team meet, will lie the unique #culture you will create.
This is a self-evolution journey for the #founders and the companies.
Reflect upon the principles that make your #team perform best and #care for each other.
check the Netflix document - https://lnkd.in/d_Tb35EU#startups#organizationbuilding#workcultures#leadership#management
After spending two decades in the CPG / FMCG industry, I've seen my fair share of corporate cultures. But what truly fascinates me is the culture of excellence at Netflix. They've cultivated an environment where high talent density isn't just a goal; it's a reality. They've embraced a culture of candor, granting freedom and responsibility in equal measure, which is both refreshing and effective. What stands out to me is how they empower every employee to make decisions. This empowerment, coupled with a commitment to open communication, really resonates with me. At Netflix, they don't just fill positions; they invest in the most effective individuals, ensuring that every team member is part of a 'dream team.' Their dedication to honesty, continuous feedback, and the relentless pursuit of excellence is something I admire. By constantly refining their culture, Netflix has set a high bar for performance, one that I find both inspiring and aspirational in my own professional journey.
#culturetransformation#netflix#corporateculture
Lead Structural Engineer | Expert in Building Structures | Balancing Economic Efficiency with High Safety Standards via Advanced Structural Analysis & Design |
A Must-Watch on Netflix’s Unique Approach to Company Culture
I recently listened to an episode of The Diary Of A CEO by Steven Bartlett, where Marc Randolph, the co-founder and former CEO of Netflix, shared some truly eye-opening insights about leadership and company culture. What struck me the most was his discussion on how Netflix built and sustained its "Freedom and Responsibility" culture, something I think every leader can learn from.
Marc highlighted that culture isn’t something you dream up or aspire to; it’s what actually happens every day in your organization. It’s not about brainstorming ideal values, but about how leaders behave and the examples they set. Employees watch their leaders closely, and they model their own behavior accordingly. That is what culture truly is.
At Netflix, this meant creating a culture where employees were treated like responsible adults, given the freedom to make decisions but also held accountable for the outcomes. As Marc put it, there were almost no traditional policies, no travel policy, no vacation policy, no expense policy. Instead, the guiding principle was simply: "Use Your Best Judgment." This approach might sound risky, but it’s exactly what allowed Netflix to attract and retain top talent who thrived under these conditions.
But let’s be clear, this culture wasn’t about being nice or avoiding tough conversations. It was about honesty, accountability, and giving people the space to make their own decisions. The result? A workplace where creativity and innovation could flourish, without the constraints of unnecessary rules and micromanagement.
And if you’re curious about how Netflix managed to maintain this culture even as it grew to thousands of employees, I highly recommend watching the segment on "Netflix Culture" from 1:41:46 to 1:52:55 in the episode. Marc shares some fascinating stories, including one about a hot tub (yes, a hot tub!) that I won’t spoil here, you’ll have to watch to find out the full story!
What are your thoughts on building a culture based on trust and responsibility?
#Leadership#CompanyCulture#WorkplaceCulture#NetflixCulture#FreedomAndResponsibility#Innovation#TrustAndAccountability#LeadershipDevelopment#CorporateCulture#CultureMatters#BusinessLeadership
Founder of The LeaderShift Project, helping leaders and teams get their "shift" together! Executive Leadership Consultant and Coach, Speaker, Author, and Podcast host
Netflix is known for having an extremely healthy culture that empowers its people. But that doesn’t mean it’s a walk in the park to work there.
Co-founder Reed Hastings advocates for the “Keeper Test,” which is a periodic assessment managers should make, asking themselves one of two questions:
1️⃣ “If X wanted to leave, would I fight to keep them?”
2️⃣ “Knowing everything I know today, would I hire X again?”
I agree with Hastings for several reasons:
➡️ This approach ensures top talent remains the lifeblood of the company, which is THE ultimate competitive advantage.
➡️ It assures that our top performers don’t become disillusioned when poor performers are kept on.
➡️ It encourages a culture of giving and receiving feedback early and often. How else can leaders answer the questions accurately and performers know where they stand?
To be clear, this mandate is given with explicit instructions that it is LONG TERM performance that matters.
As in any healthy culture, honest mistakes and failure derived from innovation are not treated punitively, but rather as learning and growth opportunities.
If I were ever going to move back into corporate America, Netflix is the kind of company at which I’d love to work.
CEO & Founder @ Proof Point Communications | Strategic Branding & Communications. Former C-suite Executive and Award-winning Journalist. Talks about leadership, crisis PR, brands and whatever she feels like.
The culture at Netflix is as unique as they come. After working there for three years, I can say it certainly wasn't perfect but it was as close to it as I've experienced.
Why? Because, at least when I worked there, you were empowered to make decisions without people second-guessing you, a reality that slows or eliminates progress while creating a risk-averse culture pervasive across business.
Here's an example: The approval process for how to announce our global launch of 130 countries in 2016 happened during a five-minute chat between me and Reed Hastings at one of the company's many snack areas. No big meeting and presentation, no ongoing discussions to pressure test each aspect, no questions as to this way versus another -- quick, impromptu discussion and decision.
What could other businesses achieve if they reduced the approval processes, empowered their employees, hired the best talent and compensated them well, and respectably held each other accountable?
The possibilities are endless.
PS The original culture deck, co-written by Reed and Patty McCord, was a125-page PowerPoint. This updated version is much more readable.
#culture#risk#talent#leadership
Delving into the organizational structure of Netflix was an eye-opening experience for our team with Kateryna Kumanova and Polina Kumanova. 📊✨
As part of our recent group project, we took a close look at what makes Netflix tick as a global entertainment powerhouse. We focused on:
- The Organizational Structure: Netflix operates with a unique model that prioritizes flexibility and decentralization, allowing teams to innovate without traditional constraints.
- Motivational Approaches: We uncovered the strategies that keep Netflix employees motivated, particularly the company's emphasis on autonomy and a culture of responsibility.
- Internal Challenges: No company is without its hurdles, and we identified some of the internal challenges Netflix faces, especially in preserving its distinctive culture while continuing to scale globally.
The insights gained from this project have deepened my understanding of how a forward-thinking company like Netflix sustains its competitive edge.
#Netflix#OrganizationalAnalysis#Teamwork#Innovation#CorporateCulture#BusinessChallenges