This document summarizes Netflix's company culture, which focuses on high performance and freedom with responsibility. Some key aspects include:
- Values are demonstrated by who gets rewarded and promoted, not just nice words.
- Netflix values behaviors like judgment, communication, impact, curiosity, innovation, courage, passion, honesty, and selflessness in employees.
- The culture aims to have "stunning colleagues" and functions like a pro sports team by hiring and cutting employees strategically to achieve excellence.
- Freedom and responsibility are emphasized over strict rules and control as the company grows, in order to attract innovative talent and sustain success through market changes.
The document summarizes the culture and values of LinkedIn. It describes LinkedIn's culture as one focused on transformation, with three types of transformation: of self, of the company, and of the world. It emphasizes values like integrity, collaboration, humor, and results. The document also outlines LinkedIn's operating principles that guide the company, which include putting members first, valuing relationships, demanding excellence, and taking intelligent risks.
The document provides an overview of Netflix, including its history, vision, mission, financial status, culture, management structure, operational plans, expansion efforts, and innovation. Key points include that Netflix was founded in 1997 and has grown to over 50 million subscribers globally by 2014. It has expanded from DVD rental by mail to become a leading global streaming service and creator of original content like House of Cards. The company aims to become the best global entertainment distribution service through expanding its licensing and markets worldwide.
The Netflix Culture document. A template for Culture in your company.Brent Spilkin
Sheryl Sandberg has called it one of the most important documents ever to come out of Silicon Valley. It’s been viewed more than 5 million times on the web. But when Reed Hastings and I (along with some colleagues) wrote a PowerPoint deck explaining how we shaped the culture and motivated performance at Netflix, where Hastings is CEO and I was chief talent officer from 1998 to 2012, we had no idea it would go viral. We realized that some of the talent management ideas we’d pioneered, such as the concept that workers should be allowed to take whatever vacation time they feel is appropriate, had been seen as a little crazy (at least until other companies started adopting them). But we were surprised that an unadorned set of 127 slides—no music, no animation—would become so influential.
The document discusses options for implementing an ERP system for a company that provides electrical and civil services. Three options are considered: implementing ERP on-premise through Bluechip corporation, implementing ERP on-premise through Codeautomations, or implementing ERP on the cloud through Codeautomations. Bluechip's on-premise quote is over budget. Codeautomations' cloud option has the lowest initial cost but higher ongoing costs than their on-premise option. While the cloud option is cheapest initially, the on-premise option through Codeautomations has the lowest total cost over 5 years. However, organizational acceptance and risk of failure also need consideration.
Netflix is an on-demand streaming media service available in North and South America and parts of Europe. The target audience is adults with internet access who want to watch movies. The key promise is providing movies and series that can be watched anywhere, anytime through computers, phones and other devices. The ad shows a woman who knows every episode of a season's series because she watched them on Netflix through different devices while at work, home and in public. It aims to differentiate Netflix by joking that you can watch responsibly by using different devices.
Gartner provides unique IT research solutions to help clients make informed decisions. It has a $33 billion untapped market opportunity and aggressive growth, generating new career opportunities. As the most influential company in IT with a respected 30-year brand, Gartner offers sales professionals a world of opportunity, including top compensation, career development, and impactful work helping global businesses.
Refrigerator Industry of Pakistan 2017Shehroz Adil
Data compiled over stats of 2016 sales. Overall processes and structure discussed of Dawlance as it's the company that has the overall proper channel and distribution procedure within the country.
The document provides an overview of the culture and practices at a company called Metal Toad. It discusses their values of being helpful, respectful, curious, and focused on providing value and experience. It describes their open office layout, daily stand-ups and scrums, emphasis on work-life balance with casual dress and opportunities for socializing, and their view that clients are partners. The document is meant as an onboarding guide for new employees to introduce them to Metal Toad's unique company culture.
Inside Netflix: The Company Culture That Created a $37B BusinessPeopleSpark
Today Netflix is worth $37B and growing. But when the company was started back in 1997, founder Reed Hastings knew he wanted to create a company culture that brought in (and rewarded) the best people for doing great work.
To understand the inner workings of the Netflix culture, we have to look beyond the headlines, the share price and the hype and understand what makes the culture tick - without the day-to-day involvement of the founder.
Today we'll look at the 10 most critical take aways from everything that's ever been written about the Netflix company culture. If you want happier, more fulfilled employees then pay close attention.
Blueprint for a Creative Culture [Commonwealth Club of SF, Mar 2011]Kate Rutter
This talk was held at the Commonwealth Club of SF on March 23, 2011. It challenges the notion that company cultures must be dry, static, inhuman and impersonal to be professional. The Creative Culture Blueprint shows what elements create, feed and support a creative culture. Also included are examples of activities that can be used to unlock static cultures to be more creative.
Netflix’s unique DVD rental service has revolutionized the industry. They successfully took the best of traditional conventions (like physical media, the U.S. Postal Service) and mixed them with new world internet-conventions. They have also effectively managed to discourage competition from both more established businesses and new entrants. The future growth of Netflix as it expands into streaming media, poses challenges in legal, infrastructure/technology, and through additional costs. In order to remain competitive, it is imperative that Netflix partner with companies with global reach to overcome these challenges. This presentation was part of an MBA class assignment to audit and industry in the the technology sector. The presentation has multiple authors listed on the title page. If you would like copies of the executive summary, complete S.W.O.T. analysis, and/or the transcript of the presentation please PRIVATE MESSAGE ME and I will email it to you.
We're on a mission to democratize entrepreneurial education.
This the foundr culture deck where we showcase what we believe at foundr and the values that are important to us.
For more information about us go to foundr.com
Porter's Five Forces Model and Porter's Value Chain of NestleSubrienna Othman
This document discusses Porter's Five Forces model and Porter's value chain model using Nestle as an example. It analyzes Nestle using the five forces of competition, threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of customers, and competitive rivalry. It then describes Nestle's value chain including primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and services. It also discusses Nestle's supporting activities such as procurement, human resource management, technological development, and infrastructure.
The document provides an overview of Patreon's company culture, which emphasizes two main missions: funding creators and creating a fulfilling workplace for employees. It outlines seven core behaviors that are valued, including putting creators first, being an energy giver, candid communication, moving fast, continual learning, respecting colleagues' time, and inclusivity/diversity. Specific expectations around meetings, feedback, decision-making, and personal development are also covered. The overall goal of the culture is to support both creators and employees through transparent, efficient collaboration.
Nestle is a global food and beverage company that has been in business for 140 years. It operates in 194 countries and employs over 339,000 people. The document outlines Nestle's sales process, which includes identifying prospective customers through prospecting, preparing for sales visits, presenting to customers in-store, and completing follow-up tasks. The sales team focuses on brand management, consumer insights, and putting consumers first. Nestle sales representatives follow a structured process of planning visits, taking orders, gathering market intelligence, and updating customer information between visits.
The document analyzes the five competitive forces in Apple's smartphone industry: competitors, new entrants, substitutes, suppliers, and buyers. Regarding competitors, Samsung has the largest market share at 24.8% and competition is strong due to high firm aggressiveness and low switching costs. New entrants like Xiaomi offer lower prices but must overcome barriers like brand recognition. Substitutes like smartwatches are weak threats currently due to limited performance. Suppliers like Samsung and Texas Instruments have power due to their scale and expertise. Buyers have moderate power due to loyalty balanced with low switching costs.
IBM was founded in 1911 and emerged as a superpower by the 1950s, but faced structural problems in the early 1990s that led to $16 billion in losses. Lou Gerstner was hired in 1993 to rescue IBM. He took several steps, including layoffs of 40,000-50,000 employees, cost reductions of $6.8 billion through expense cuts and selling non-core businesses. Gerstner also restored line manager accountability, reorganized IBM into one global organization, refined sales processes, and focused on services as hardware stagnated. These strategies secured IBM's core competencies, provided an outside perspective to address real problems, and dismantled a collegial culture, driving financial results. However,
GulAhmed Textile Mills produces textiles and is committed to product safety, ethics, and social responsibility. It aims to be environmentally friendly and has received several certifications for its practices. The company operates mills in Karachi and produces yarn, fabrics, and finished goods for homes, hospitals, and clothing. It focuses on quality, diversity of products, and using technology and skilled workers to achieve its goals of leadership and sustainability. Risks include economic challenges, while strengths include its brand recognition and market share.
Pop Inc. is a company that aims to support creators by giving them tools to monetize their work across different creative outlets. Their mission is to fulfill their responsibility of ensuring creators are getting paid. They outlined their core behaviors which are Creatives First, Over Serve, Learn Fast, Open Communication, and Respect Time. These behaviors are important for building their culture and individual adherence to them leads to more ownership and responsibility. They operate in a transparent way and share key information publicly so everyone has context to make good decisions. They also strive to build an inclusive and diverse team to best serve the diverse community of creators. They are mindful of spending and only invest in things crucial for success while not impacting employee happiness. Their
Digital transformation and what you can learn from SchibstedTori.fi
We live and breathe digital transformation in Schibsted and tori.fi. What you can learn from us, but also consider as principles to discuss about this in your business. We are sharing 10 principles we believe in digital game. If interested more, check http://schibsteddigital.com
The document discusses Netflix's company culture, which focuses on high performance and freedom with responsibility. Some key aspects of the culture include valuing behaviors like judgment, communication, impact, curiosity, and honesty over job titles. Netflix aims to attract and retain "stunning colleagues" through this culture rather than perks. Underperformers receive severance packages rather than unlimited loyalty. The document argues this culture allows Netflix to avoid bureaucracy that can stifle innovation as companies grow.
Manifesto Netflix: o documento que pode mudar o formato das empresas
Antes de começar a falar do conteúdo desse manifesto, vale destacar o tom visionário que ele tem (publicado em 01 de agosto de 2009) e que antevê muitas coisas que até hoje não vemos em multinacionais/marcas globais estruturadas, mas ainda engessadas.
Outro ponto que vale destaque é o que o "número 2 do Facebook", Sheryl Sandberg disse: “Provavelmente este é o documento mais importante que já saiu do Vale do Silício.”
Do que se trata o manifesto Netflix:
É um documento meio código de conduta meio manual de cultura organizacional, que traz os valores da empresa e a forma como ela enxerga que seus colaboradores precisam se comportar. Esse manifesto possui 124 telas, mas trouxe aqui os tópicos que mais me chamaram atenção pela ousadia e originalidade:
Criatividade é o mais importante: no trabalho processual boas ideias são 2x melhores que a média. Na indústria da criatividade as melhores são até 10x mais;
Priorize descobertas ao invés de segurança para os funcionários: empresas de internet geralmente não têm órgãos trabalhistas com leis bem definidas para seus colaboradores (e mesmo assim sempre figuram entre as melhores para se trabalhar) por isso, mostre pra ele que ele pode realizar grandes descobertas;
Decisões são tomadas em consenso coletivo: o manifesto prega que geralmente erros ou mal entendidos são problemas de comunicação. Pronto, problema resolvido;
Férias ilimitadas: você decide quando volta a trabalhar. E esse empoderamento passado para o colaborador trouxe autonomia e melhores resultados para a empresa. O Netflix orgulhosamente também substituiu todo o aparato burocrático relacionado a custos de viagens com algumas palavras “Haja com as melhores intenções aos interesses do Netflix.”
"Somos um time, e não uma família": a ideia é ser um time desportivo profissional e não um monte de crianças na recreação.
Entendeu por que o manifesto pode mudar a forma como as empresas são construídas hoje? A contracultura de empresa engessada, que prioriza o invariável e o que rentabiliza deve ser mexido levemente pra trazer ainda mais rentabilidade (isso quando se pode mexer), enquanto que o Netflix prioriza a incerteza, o poder da criatividade e da chance de correção no meio do caminho, e principalmente prioriza a confiança no colaborador, no valor percebido por ele de trabalhar numa empresa que faz a diferença na sociedade e que seu propósito vai de encontro com o dele. Ainda, valoriza o espaço concedido para sua vida pessoal, apesar do trabalho intenso.
Claro que pensar que esse modelo de liberdade aplicado para todas as empresas é utopia - e até errado - já que para uma empresa que precisa da criatividade o manifesto é mesmo ideal. Claro que o gesso e o balizamento são essenciais em determinados ramos de atividade mas, até empresas assim podem aprender um pouco com o manifesto.
.
Redigida por
Ivan Alves Nogueira
NETFLIX: Cultura de Responsabilidad y LibertadBrenda Treviño
The document discusses Netflix's company culture, which focuses on high performance and values like judgment, communication, impact, curiosity, innovation, courage, passion, honesty, and selflessness. Netflix aims to attract and retain only top talent, believing the best employees are 10x more productive than average ones. It outlines Netflix's practices of adequate performance resulting in severance, treating employees as a pro sports team where not all deserve to stay, and increasing employee freedom rather than limiting it as the company grows.
In Module One you developed the ZOPA (zone of possible agreementrafbolet0
This document provides an overview of Netflix's culture, which focuses on high performance, freedom and responsibility. It discusses how Netflix aims to minimize rules and complexity as the company grows, instead relying on hiring high-performing employees. This allows Netflix to maintain flexibility and avoid becoming bureaucratic. The document also gives examples of how Netflix provides employees freedom and responsibility in areas like vacation policies, expenses and gift policies.
For your final project you are helping prepare Sharon Slade, theSusanaFurman449
For your final project you are helping prepare Sharon Slade, the chief human resources officer of Netflix, for a serious performance discussion with Alice Jones, who may be at risk of being terminated. One key component of your preparation is evaluating the organizational culture at Netflix and assisting Sharon Slade in demonstrating the skills that will help get the negotiation process off to a good start. She can accomplish this by taking into account the hygiene factors and intrinsic motivators as discussed in the Herzberg video clips (located in the Module Three Readings and Resources folder).
One description of the espoused Netflix organizational culture is stated in Slide 6 of the slide deck
Netflix Culture: Freedom and Responsibility
that you viewed in Module One. Slide 6 states: "The actual company values, as opposed to the nice-sounding values, are shown by who gets rewarded, promoted, or let go."
For this discussion post, craft a response which addresses the following question:
Consider the seven aspects of the Netflix culture, which are listed below:
Values are what we value [Judgment, Communication, Impact, Curiosity, Innovation, Courage, Passion, Honesty, & Selflessness]
High Performance
Freedom & Responsibility
Context, not Control
Highly Aligned, Loosely Coupled
Pay Top of Market
Promotions & Development
Indicate whether or not you agree with the seven values, explaining why or why not. Add two intrinsic values that you believe would improve the organizational culture at Netflix. Provide reasons that justify your choice.
Culture
This is an archive of
prior version New version is at: jobs.netflix.com/culture 1
Netflix Culture: Freedom & Responsibility
2
We Seek Excellence Our culture
focuses on helping us achieve excellence 3
Seven Aspects of our Culture
• Values are what we Value • High Performance • Freedom & Responsibility • Context, not Control • Highly Aligned, Loosely Coupled • Pay Top of Market • Promotions & Development 4
Many companies have nice sounding
value statements displayed in the lobby, such as: 5 Integrity Communication Respect Excellence
Enron, whose leaders went to
jail, and which went bankrupt from fraud, had these values displayed in their lobby: Integrity Communication Respect Excellence 6 (These values were not, however, what was really valued at Enron)
The actual company values, as
opposed to the nice-sounding values, are shown by who gets rewarded, promoted, or let go 7
Actual company values are the
behaviors and skills that are valued in fellow employees 8
At Netflix, we particularly value
the following nine behaviors and skills in our colleagues… …meaning we hire and promote people who demonstrate these nine 9
You make wise decisions (people,
technical, business, and creative) despite ambiguity You identify root causes, and get beyond treating symptoms You think strategically, and can articulate what you are, and are not, trying to do You smartly separate what ...
This document outlines Netflix's culture of freedom and responsibility. It discusses that Netflix values high performance over hard work and avoids tolerating "brilliant jerks." Managers are expected to identify which employees they would fight to keep if they said they were leaving, and generous severances are given to adequate performers to open positions for stars. The document emphasizes that Netflix seeks to increase employee freedom as the company grows rather than limiting it like most firms, in order to continue attracting innovative talent and have the best chance of long-term success.
This document outlines Netflix's culture of freedom and responsibility. Some key aspects include:
- Netflix values high performance over loyalty or hard work. Underperforming employees are let go with severance.
- The company focuses on attracting "stunning colleagues" through top compensation and freedom to have high impact.
- As Netflix grows, it aims to increase employee talent density rather than limiting freedom through excessive rules. This allows creativity and flexibility to thrive.
- Managers provide appropriate context rather than trying to control employees. This enables high-performing staff to make sound decisions.
This document outlines Netflix's culture of freedom and responsibility. Some key aspects include:
- Netflix values high performance over loyalty or hard work. Underperforming employees are let go with severance.
- The company focuses on attracting "stunning colleagues" through top compensation and freedom to have high impact.
- As Netflix grows, it aims to increase employee talent density rather than limiting freedom through excessive rules. This allows creativity and flexibility to thrive.
- Managers provide appropriate context rather than trying to control employees. This enables high-performing staff to make sound decisions.
This document discusses Netflix's culture of freedom and responsibility. It outlines nine behaviors and skills that Netflix values in employees, including judgment, communication, impact, curiosity, innovation, courage, honesty, passion, and selflessness. It emphasizes hiring and retaining only "high performers" who embody these values. Employees are given freedom but are also responsible for using good judgment and acting in the best interests of the company. The goal is to attract top talent to create the most effective teams possible and ensure long-term success, even as the company continues to grow.
The document outlines the sales culture of a North American company. It defines nine core values including respect for people, consistently innovating, inspiring customer loyalty, and passion. It also describes seven principles such as being grounded and decisive, treating everything as pass-fail, and being strategic partners. A key belief is that responsible people thrive on freedom and are worthy of freedom. The culture emphasizes high performance, making data-driven decisions, rewarding risk-taking, and paying top of the market to attract and retain top talent.
The document defines the sales culture at NA Sales as valuing high performance from everyone according to 9 core values and 8 principles. It emphasizes attracting and retaining top talent through a commitment to top of market pay. Management aims to create a context of transparency, empowerment and alignment around goals rather than controlling employees. The culture promotes responsibility, innovation and self-discipline from workers through flexibility and freedom balanced with accountability.
At TaxiForSure, we have been able to attract terrific talent since our inception. Our Culture is the core of our DNA. We believe that our Culture is what will give our company, and our people, success in the long run. Just as the way we would like to revolutionize the way people commute, we would like to use our Culture to revolutionize the way our teams communicate and align. This is what will help us attract the right people and bind us as a team during our journey of explosive growth.
This document outlines a set of principles for building a culture of freedom and responsibility within an organization. It begins by stating that the information presented comprises the author's thoughts along with information from other sources. The document then discusses how stated company values often differ from real values as shown through rewards and promotions. Nine behaviors and skills that are particularly valued in colleagues are then outlined: judgment, communication, impact, curiosity, innovation, courage, passion, honesty, and selflessness. The document emphasizes embracing these nine values to give the best chance of continuous success over generations.
The document discusses organizational issues and concepts. It defines an organization as where people come together to achieve goals and objectives. It also discusses stakeholders like investors who provide loans for business operations. The document defines corporate culture as the beliefs, expectations, and values shared by members of an organization. It provides indicators of an organization's culture like whether it encourages innovation or protects the status quo. It also discusses ethics in organizations and dilemmas around prioritizing ethics versus business needs. Assertiveness is defined as expressing thoughts and feelings in a direct and honest way while finding win-win solutions. Sexual harassment is defined as unwelcome conduct of a sexual nature that negatively impacts the work environment.
Netflix has a unique company culture focused on freedom and responsibility rather than strict rules and processes. As the company grows, they aim to [1] minimize rules to avoid inhibiting creativity and chaos, [2] increase talent density faster than complexity grows to prevent bureaucracy, and [3] provide appropriate context rather than control over employees. The company culture emphasizes high alignment between teams through clear strategies and goals, but loose coupling that allows independence in tactics to maintain flexibility and speed of execution.
The document discusses enabling cultural change through hiring the right people and having an aligned recruitment process. It highlights the costs of an unaligned process, including negative impacts to culture and high turnover. It contrasts a traditional hiring process focused on experience and technical skills with an agile process led by the team. The agile process prioritizes cultural fit, passion, and potential. It emphasizes identifying candidates with aspirations aligned to the organization's values through behavioral questions. An agile hiring process benefits include strong cultural alignment, low turnover, and evidence of a people-oriented organization.
Leveraging Core Values for Healthier, More Productive TeamsTechWell
Although all teams require a healthy level of interaction, high-performing teams' interactions are all based on trust, respect, and shared goals. Such teams find ways to overcome the fear of conflict, and quickly identify and resolve issues that are getting in the way. Scott Ross shares how, when the Omnyx software R&D department determined their culture was hindering performance, they crafted a core values statement that has served them well for the past three years. Scott describes the ways they proactively and intentionally use their value statement to drive the culture they seek and discusses the results they have achieved. Take back the list of resources that Scott uses daily to help himself and others see how their actions add to and take away from their core values. Return to the office prepared to use this same process with your team and start on the road to a high-performing team whose members love to come to work every day.
Similar to Reed Hastings, CEO Netflix Culture (20)
Best Internet Service Provider In Bangladeshonesky2024
One Sky Communications Limited is a leading broadband service provider offering a range of high-speed internet packages tailored for diverse needs, including Home Internet, SME Internet, and Corporate solutions. Our commitment to connectivity extends beyond just internet services; we also provide advanced VTS (Vehicle Tracking Service) to ensure the safety and efficiency of your fleet. Additionally, we are dedicated to empowering individuals and businesses through our comprehensive IT training services, designed to enhance skills and drive technological proficiency. At One Sky Communications Limited, we are your trusted partner for seamless connectivity, security, and professional development.
4. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
4
5. Many companies have nice sounding
value statements displayed in the
lobby, such as:
5
Integrity
Communication
Respect
Excellence
6. Enron, whose leaders went to jail,
and which went bankrupt from fraud,
had these values displayed in their lobby:
Integrity
Communication
Respect
Excellence
6
(These values were not, however, what was really valued at Enron)
7. The actual company values,
as opposed to the
nice-sounding values,
are shown by who gets
rewarded, promoted, or let go
7
8. Actual company values are the
behaviors and skills
that are valued
in fellow employees
8
9. At Netflix, we particularly value the
following nine behaviors and skills
in our colleagues…
…meaning we hire and promote
people who demonstrate these nine
9
10. You make wise decisions
(people, technical, business, and
creative) despite ambiguity
You identify root causes, and get
beyond treating symptoms
You think strategically, and can
articulate what you are, and are
not, trying to do
You smartly separate what must
be done well now, and what can
be improved later
10
Judgment
11. 11
Communication
You listen well, instead of
reacting fast, so you can better
understand
You are concise and articulate in
speech and writing
You treat people with respect
independent of their status or
disagreement with you
You maintain calm poise in
stressful situations
12. 12
Impact
You accomplish amazing
amounts of important work
You demonstrate consistently
strong performance so
colleagues can rely upon you
You focus on great results rather
than on process
You exhibit bias-to-action, and
avoid analysis-paralysis
13. 13
Curiosity
You learn rapidly and eagerly
You seek to understand our
strategy, market, customers, and
suppliers
You are broadly knowledgeable
about business, technology and
entertainment
You contribute effectively
outside of your specialty
14. 14
Innovation
You re-conceptualize issues to
discover practical solutions to
hard problems
You challenge prevailing
assumptions when warranted,
and suggest better approaches
You create new ideas that prove
useful
You keep us nimble by
minimizing complexity and
finding time to simplify
15. 15
Courage
You say what you think even if it
is controversial
You make tough decisions
without agonizing
You take smart risks
You question actions
inconsistent with our values
16. 16
Passion
You inspire others with your
thirst for excellence
You care intensely about
Netflix‘s success
You celebrate wins
You are tenacious
17. 17
Honesty
You are known for candor and
directness
You are non-political when you
disagree with others
You only say things about fellow
employees you will say to their
face
You are quick to admit mistakes
18. 18
Selflessness
You seek what is best for Netflix,
rather than best for yourself or
your group
You are ego-less when searching
for the best ideas
You make time to help
colleagues
You share information openly
and proactively
19. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
19
20. Imagine if every person at Netflix
is someone you
respect and learn from…
20
21. Great Workplace is
Stunning Colleagues
Great workplace is not espresso, lush benefits,
sushi lunches, grand parties, or nice offices
We do some of these things, but only if they are
efficient at attracting and retaining
stunning colleagues
21
24. We’re a team, not a family
We’re like a pro sports team,
not a kid’s recreational team
Netflix leaders
hire, develop and cut smartly,
so we have stars in every position
24
25. The Keeper Test Managers Use:
Which of my people,
if they told me they were leaving,
for a similar job at a peer company,
would I fight hard to keep at Netflix?
25
26. The Keeper Test Managers Use:
Which of my people,
if they told me they were leaving,
for a similar job at a peer company,
would I fight hard to keep at Netflix?
26
The other people should get a generous severance now,
so we can open a slot to try to find a star for that role
27. Honesty Always
As a leader, no one in your group
should be materially surprised of
your views
27
28. Honesty Always
Candor is not just a leader’s responsibility,
and you should periodically ask your
manager: “If I told you I were leaving, how
hard would you work to change my mind?”
28
29. All of Us are Responsible
for Ensuring We Live our Values
“You question actions inconsistent with our
values” is part of the Courage value
Akin to the honor code pledge:
“I will not lie, nor cheat, nor steal,
nor tolerate those who do”
29
30. Pro Sports Team Metaphor is
Good, but Imperfect
Athletic teams have a fixed number of
positions, so team members are always
competing with each other for one of
the precious slots
30
31. Corporate Team
The more talent we have,
the more we can accomplish,
so our people assist each other all the time
Internal “cutthroat” or “sink or swim”
behavior is rare and not tolerated
31
34. Loyalty is Good
• Loyalty is good as a stabilizer
• People who have been stars for us, and hit a bad
patch, get a near term pass because we think
they are likely to become stars for us again
• We want the same: if Netflix hits a temporary
bad patch, we want people to stick with us
• But unlimited loyalty to a shrinking firm, or to an
ineffective employee, is not what we are about
34
35. Hard Work – Not Relevant
• We don’t measure people by how many hours
they work or how much they are in the office
• We do care about accomplishing great work
• Sustained B-level performance, despite “A for
effort”, generates a generous severance
package, with respect
• Sustained A-level performance, despite
minimal effort, is rewarded with more
responsibility and great pay
35
36. Brilliant Jerks
• Some companies tolerate them
• For us, cost to effective teamwork is too high
• Diverse styles are fine – as long as person
embodies the 9 values
36
37. Why are we so insistent on
high performance?
In procedural work, the best are 2x
better than the average.
In creative/inventive work, the best are 10x
better than the average, so huge premium on
creating effective teams of the best
37
38. Why are we so insistent on
high performance?
Great Workplace is
Stunning Colleagues
38
39. Our High Performance Culture
Not Right for Everyone
• Many people love our culture, and stay a long time
– They thrive on excellence and candor and change
– They would be disappointed if given a severance package,
but lots of mutual warmth and respect
• Some people, however, value job security and stability
over performance, and don’t like our culture
– They feel fearful at Netflix
– They are sometimes bitter if let go, and feel that we are
political place to work
• We’re getting better at attracting only the former, and
helping the latter realize we are not right for them
39
40. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
40
41. The Rare Responsible Person
• Self motivating
• Self aware
• Self disciplined
• Self improving
• Acts like a leader
• Doesn’t wait to be told what to do
• Picks up the trash lying on the floor
41
43. Our model is to increase
employee freedom as we grow,
rather than limit it,
to continue to attract and nourish
innovative people,
so we have better chance of
sustained success
43
48. Growth Also Often Shrinks Talent Density
% High Performance Employees
Complexity
48
49. Chaos Emerges
% High Performance Employees
Chaos and errors spike here – business
has become too complex to run
informally with this talent level Complexity
49
50. Process Emerges to Stop the Chaos
Procedures
No one loves process, but
feels good compared to the
pain of chaos
“Time to grow up” becomes
the professional management’s
mantra
50
52. Process Brings Seductively Strong
Near-Term Outcome
• A highly-successful process-driven company
– With leading share in its market
– Minimal thinking required
– Few mistakes made – very efficient
– Few curious innovator-mavericks remain
– Very optimized processes for its existing market
– Efficiency has trumped flexibility
52
53. Then the Market Shifts…
• Market shifts due to new technology or
competitors or business models
• Company is unable to adapt quickly
– because the employees are extremely good at
following the existing processes, and process
adherence is the value system
• Company generally grinds painfully into
irrelevance
53
54. Seems Like Three Bad Options
1. Stay creative by staying small, but therefore
have less impact
2. Avoid rules as you grow, and suffer chaos
3. Use process as you grow to drive efficient
execution of current model, but cripple
creativity, flexibility, and ability to thrive
when your market eventually changes
54
55. A Fourth Option
• Avoid Chaos as you grow with Ever More High
Performance People – not with Rules
– Then you can continue to mostly run informally
with self-discipline, and avoid chaos
– The run informally part is what enables and
attracts creativity
55
57. Increase Talent Density
• Top of market compensation
• Attract high-value people through
freedom to make big impact
• Be demanding about high
performance culture
57
58. Minimize Complexity Growth
• Few big products vs many small ones
• Eliminate distracting complexity (barnacles)
• Be wary of efficiency optimizations that
increase complexity and rigidity
58
Note: sometimes long-term simplicity is
achieved only through bursts of complexity to
rework current systems
59. With the Right People,
Instead of a
Culture of Process Adherence,
We have a Culture of
Creativity and Self-Discipline,
Freedom and Responsibility
59
61. Freedom is not absolute
Like “free speech”
there are some
limited exceptions to
“freedom at work”
61
62. Two Types of Necessary Rules
1. Prevent irrevocable disaster
– Financials produced are wrong
– Hackers steal our customers’ credit card info
2. Moral, ethical, legal issues
– Dishonesty, harassment are intolerable
62
63. Mostly, though, Rapid Recovery is
the Right Model
• Just fix problems quickly
– High performers make very few errors
• We’re in a creative-inventive market, not a
safety-critical market like medicine or nuclear
power
• You may have heard preventing error is
cheaper than fixing it
– Yes, in manufacturing or medicine, but…
– Not so in creative environments
63
64. “Good” versus “Bad” Process
• “Good” process helps talented people get more done
– Letting others know when you are updating code
– Spend within budget each quarter so don’t have to
coordinate every spending decision across departments
– Regularly scheduled strategy and context meetings
• “Bad” process tries to prevent recoverable mistakes
– Get pre-approvals for $5k spending
– 3 people to sign off on banner ad creative
– Permission needed to hang a poster on a wall
– Multi-level approval process for projects
– Get 10 people to interview each candidate
64
65. Rule Creep
• “Bad” processes tend to creep in
– Preventing errors just sounds so good
• We try to get rid of rules when we can, to
reinforce the point
65
66. Example: Netflix Vacation Policy
and Tracking
Until 2004 we had the standard
model of N days per year
66
67. Meanwhile…
We’re all working online some nights and
weekends, responding to emails at odd
hours, spending some afternoons on
personal time, and taking good vacations
67
68. An employee pointed out…
We don’t track hours worked per day
or per week, so why are we tracking
days of vacation per year?
68
69. We realized…
We should focus on what people get done,
not on how many days worked
Just as we don’t have an 9am-5pm workday
policy, we don’t need a vacation policy
69
71. Netflix Vacation Policy
and Tracking
“there is no policy or tracking”
There is also no clothing policy at Netflix,
but no one comes to work naked
Lesson: you don’t need policies for everything
71
72. No Vacation Policy Doesn’t Mean
No Vacation
Netflix leaders set good examples by
taking big vacations – and coming
back inspired to find big ideas
72
74. Most companies have complex
policies around what you can
expense, how you travel, what gifts
you can accept, etc.
Plus they have whole departments
to verify compliance
with these policies
74
76. “Act in Netflix’s Best Interest”
Generally Means…
1. Expense only what you would otherwise not
spend, and is worthwhile for work
2. Travel as you would if it were your own money
3. Disclose non-trivial vendor gifts
4. Take from Netflix only when it is inefficient to
not take, and inconsequential
– “taking” means, for example, printing personal
documents at work or making personal calls on work
phone: inconsequential and inefficient to avoid
76
77. Freedom and Responsibility
• Many people say one can’t do it at scale
• But since going public in 2002, which is
traditionally the end of freedom, we’ve
substantially increased talent density and
employee freedom
77
78. Summary of
Freedom & Responsibility:
As We Grow, Minimize Rules
Inhibit Chaos with Ever More
High Performance People
Flexibility is More Important
than Efficiency in the Long Term
78
79. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
79
80. If you want to build a ship,
don't drum up the people
to gather wood, divide the
work, and give orders.
Instead, teach them to yearn
for the vast and endless sea.
-Antoine De Saint-Exupery,
Author of The Little Prince
80
81. The best managers figure out how to
get great outcomes by setting the
appropriate context, rather than by
trying to control their people
81
82. Context, not Control
Context (embrace)
• Strategy
• Metrics
• Assumptions
• Objectives
• Clearly-defined roles
• Knowledge of the stakes
• Transparency around
decision-making
Control (avoid)
• Top-down decision-making
• Management approval
• Committees
• Planning and process valued
more than results
Provide the insight and understanding to enable sound decisions
82
83. Good Context
• Link to company/functional goals
• Relative priority (how important/how time sensitive)
– Critical (needs to happen now), or…
– Nice to have (when you can get to it)
• Level of precision & refinement
– No errors (credit cards handling, etc…), or…
– Pretty good / can correct errors (website), or…
– Rough (experimental)
• Key stakeholders
• Key metrics / definition of success
83
84. Managers: When one of your
talented people
does something dumb,
don’t blame them
Instead,
ask yourself what context
you failed to set
84
85. Managers: When you are tempted
to “control” your people, ask
yourself what context you could set
instead
Are you articulate and inspiring
enough about goals and strategies?
85
87. Investing in Context
This is why we do new employee
college, frequent department meetings,
and why we are so open internally
about strategies and results
87
88. Exceptions to “Context, not Control”
• Control can be important in emergency
– No time to take long-term capacity-building view
• Control can be important when someone is
still learning their area
– Takes time to pick up the necessary context
• Control can be important when you have the
wrong person in a role
– Temporarily, no doubt
88
89. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
89
90. Three Models of Corporate Teamwork
1. Tightly Coupled Monolith
2. Independent Silos
3. Highly Aligned, Loosely Coupled
90
91. Tightly Coupled Monolith
• Senior management reviews nearly all tactics
– e.g., CEO reviews all job offers or advertising
• Lots of x-departmental buy-in meetings
• Keeping other internal groups happy has equal
precedence with pleasing customers
• Mavericks get exhausted trying to innovate
• Highly coordinated through centralization, but
very slow, and slowness increases with size
91
92. Independent Silos
• Each group executes on their objectives with
little coordination
– Everyone does their own thing
• Work that requires coordination suffers
• Alienation and suspicion between
departments
• Only works well when areas are independent
– e.g., aircraft engines and blenders for GE
92
93. #3 is the Netflix Choice
1. Tightly Coupled Monolith
2. Independent Silos
3. Highly Aligned, Loosely Coupled
93
94. Highly Aligned, Loosely Coupled
• Highly Aligned
– Strategy and goals are clear, specific, broadly understood
– Team interactions focused on strategy and goals, rather than tactics
– Requires large investment in management time to be transparent and
articulate and perceptive
• Loosely Coupled
– Minimal cross-functional meetings except to get aligned on goals and
strategy
– Trust between groups on tactics without previewing/approving each
one – so groups can move fast
– Leaders reaching out proactively for ad-hoc coordination and
perspective as appropriate
– Occasional post-mortems on tactics necessary to increase alignment
94
95. Highly Aligned, Loosely Coupled
teamwork effectiveness
depends on
high performance people
and good context
Goal is to be
Big and Fast and Flexible
95
96. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
96
97. Pay Top of Market
is Core to
High Performance Culture
One outstanding employee gets more done
and costs less than two adequate employees
We endeavor to have only
outstanding employees
97
98. Three Tests for Top of Market
for a Person
1. What could person get elsewhere?
2. What would we pay for replacement?
3. What would we pay to keep that person?
– If they had a bigger offer elsewhere
98Confidential
99. Takes Great Judgment
• Goal is to keep each employee at top of
market for that person
– Pay them more than anyone else likely would
– Pay them as much as a replacement would cost
– Pay them as much as we would pay to keep them
if they had higher offer from elsewhere
99
100. Titles Not Very Helpful
• Lots of people have the title “Major League
Pitcher” but they are not all equally effective
• Similarly, all people with the title “Senior
Marketing Manager” or “Director of
Engineering” are not equally effective
• So the art of compensation is answering the
Three Tests for each employee
100
101. Annual Comp Review
• At many firms, when employees are hired,
market compensation applies
• But at comp review time, it no longer applies!
• At Netflix, market comp always applies:
– Essentially, top of market comp is re-established
each year for high performing employees
– At annual comp review, manager has to answer
the Three Tests for the personal market for each
of their employees
101Confidential
102. No Fixed Budgets
• There are no centrally administered “raise
pools” each year
• Instead, each manager aligns their people to
top of market each year – the market will be
different in different areas
102
103. Compensation Over Time
• Some people will move up in comp very
quickly because their value in the marketplace
is moving up quickly, driven by increasing skills
and/or great demand for their area
• Some people will stay flat because their value
in the marketplace has done that
– Depends in part on inflation and economy
– Always top of market, though, for that person
103
104. Compensation Not Dependent
on Netflix Success
• Whether Netflix is prospering or floundering,
we pay at the top of the market
– Sports teams with losing records still pay talent
the market rate, to get back to winning
104
105. Bad Comp Practices
• Manager sets pay at Nth percentile of title-
linked compensation data
– The “Major League Pitcher” problem
• Manager cares about internal parity instead of
external market value
– Fairness in comp is being true to the market
• Manager gives everyone a 4% raise
– Very unlikely to reflect the market
105
106. When Top of Market Comp
Done Right...
• We will rarely counter with higher comp when
someone is voluntarily leaving because we
have already moved comp to our max for that
person
• Employees will feel they are getting paid well
relative to their other options in the market
106
107. Versus Traditional Model
• Traditional model is good prior year earns a
raise, independent of market
– Problem is employees can get materially under- or
over-paid relative to the market, over time
– When materially under-paid, employees switch
firms to take advantage of market-based pay on
hiring
– When materially over-paid, employees are
trapped in current firm
• Consistent market-based pay is better model
107
108. Employee Success
• It’s pretty ingrained in our society that the size
of one’s raise is the indicator of how well one
did the prior year
– but for us the other factor is the outside market
• Employee success is still a big factor in comp
because it influences market value
– In particular, how much we would pay to keep the
person
108
109. Good For Each Employee to
Understand Their Market Value
• It’s a healthy idea, not a traitorous one, to
understand what other firms would pay you,
by interviewing and talking to peers at other
companies
– Talk with your manager about what you find in
terms of comp
– Stay mindful of company confidential information
109
110. Efficiency
• Big salary is the most efficient form of comp
– Most motivating for any given expense level
– No bonuses
– Instead, put all that expense into big salaries, and
give people freedom to spend their salaries as
they think best
– Employees can decide how much Netflix stock
they want, versus cash
110
111. No Vesting or Deferred Comp
• We don’t want managers to “own” their people
with vesting – all comp is fully vested
• We want managers to be responsible for creating
a great place to work, and paying at the top of
market
• Employees are free to leave us anytime, without
penalty, but nearly everyone stays
• Employees stay because they are passionate
about their work, and well paid, not because of a
deferred compensation system
111
112. No Ranking Against Other Employees
• We avoid “top 30%” and “bottom 10%”
rankings amongst employees
• We don’t want employees to feel competitive
with each other
• We want all of our employees to be “top 10%”
relative to the pool of global candidates
• We want employees to help each other, and
they do
112
113. Seven Aspects of our Culture
• High Performance
• Values are what we Value
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
113
114. In some time periods, in some
groups, there will be lots of
opportunity and growth at Netflix
Some people, through both luck and
talent, will have extraordinary career
growth
114
115. Baseball Analogy: Minors to Majors
• Very talented people usually get to move up, but
only true for the very talented
• Some luck in terms of what positions open up
and what the competition is
• Some people move to other teams to get the
opportunity they want
• Great teams keep their best talent
• Some minor league players keep playing even
though they don’t move up because they love the
game
115
116. Netflix Doesn’t Have to Be for Life
• In some times, in some groups, there may not
be enough growth opportunity for everyone
• In which case we should celebrate someone
leaving Netflix for a bigger job that we didn’t
have available to offer them
– If that is what the person prefers
116
117. Three Necessary Conditions
for Promotion
1. Job has to be big enough
– We might have an incredible manager of something, but we
don’t need a director of it because job isn’t big enough
• If the incredible manager left, we would replace with a manager,
not with a director
2. Person has to be a superstar in current role
– Could get the next level job here if applying from outside and we knew
their talents well
– Could get the next level job at peer firm that knew their talents well
3. Person is an extraordinary role model of our
culture and values
117
118. Timing
• If a manager would promote to prevent an
employee from leaving, the manager should
promote now instead of waiting
• Three tests still have to be passed
1. Job big enough
2. Superstar in current role
3. Person is an extraordinary role model of our
culture and values
118
119. Development
• We develop people by giving them the
opportunity to develop themselves, by
surrounding them with stunning colleagues
and giving them big challenges to work on
– Mediocre colleagues or unchallenging work is
what kills progress of a person’s skills
119
120. Career “Planning” Not for Us
• Formalized development is rarely effective,
and we don’t try to do it
– e.g., Mentor assignment, rotation around a firm,
multi-year career paths, etc.
120
121. We Support Self-Improvement
• High performance people are generally self-
improving through experience, observation,
introspection, reading, and discussion
– As long as they have stunning colleagues and big
challenges to work on
– We all try to help each other grow
– We are very honest with each other
121
122. We want people to manage
their own career growth,
and not rely on a corporation
for “planning” their careers
122
123. Your Economic Security is based
on your Skills and Reputation
We try hard to consistently provide
opportunity to grow both by
surrounding you with great talent
123
124. Seven Aspects of our Culture
• Values are what we Value
• High Performance
• Freedom & Responsibility
• Context, not Control
• Highly Aligned, Loosely Coupled
• Pay Top of Market
• Promotions & Development
124
125. We keep improving
our culture as we grow
We try to get better
at seeking excellence
125