When we talk about work culture in a company , Most companies
tend to get more rules and processes as they grow larger. However, when Netflix started 20 years ago as a DVD-by-mail service, no one could have imagined it would become a streaming service with over 193 million members in 190 countries. Netflix has excelled by going in the opposite direction. As the company has grown, it has built a culture of having less rules, not more. Good morning LinkedIn Connections😊 ,today we learn with this book📕 about No Rules Rules and as Netflix proves, sometimes the best way to rule is by breaking the rules (without getting grounded)
Reed Hastings is the co-founder and CEO of Netflix, a self-made billionaire who defied the odds to build 🏢 a global entertainment empire, despite his first company, Pure Software, failing and Erin Meyer is a professor at INSEAD and the author of The Culture Map, a book that helps businesses navigate cultural differences.
In 2000, Reed Hastings, with Netflix as a small startup, approached Blockbuster's CEO with an offer. Blockbuster, a giant worth $6 billion with 9,000 stores worldwide, had no idea what would unfold. Hastings proposed selling Netflix to Blockbuster for $50 million and running their online rental service. The CEO declined, a costly mistake as Blockbuster went bankrupt within a decade, while Netflix took the lead.
Netflix's secret sauce is a three step strategy that's as efficient as a fast-forward button: hire the best, speak your mind, and let grown-ups do their thing.
1 .Build up talent density Hire the best and let them thrive (like a herd of unicorns in a meadow). Most places combat chaos with rules and policies, but Netflix has a different approach. Instead of building a rulebook as thick as a phonebook, they hire top-notch talent. It's like creating an all-star team, and when you've got the best, you don't need to ❌Micromanage❌ .
One 🌟 Super Star 🌟 is better than two average people.
2 .Increase candor: Let your thoughts flow freely (even if it means being refreshingly Straightforward): In most workplaces, people play nice, but at Netflix, they don't hold back . Their culture promotes honest, sometimes brutal feedback. It's like they've unlocked the "Truth Serum" at the water cooler, and everyone's game improves. After all, nothing says "I Care " like a candid critique.
3 .Reduce controls: Tear up the handbook (and watch the magic unfold!) They believe in the power of grown-ups. As talent density increases, and candid feedback flows, they shred the rulebook. No more hoops to jump through; managers lead with context, not control. It's like working with a compass instead of a GPS – you've got guidance, but you're free to explore.
7,900 employees earning $2.6 million each, 9 times #Disney 's pay. Shares up 500x since IPO, 3x
#Google 's value. Known for 'Unlimited Vacation' and No Approvals Culture.
Culture of Reinvention
1. First steps to building a culture of freedom & responsibility. To start building a Netflix style culture, your initial actions should be:
2. Next steps to a culture of freedom and responsibility. To then take things to a higher level, your next actions should be:
3. Techniques to reinforce a culture of freedom & responsibility. To reinforce and stoke a culture of freedom and responsibility:
Lesson: Freedom is more cost-effective than grounding your workforce
