Learning from Netflix’s Culture Deck: Insights and Tips To Improve Your Company Culture
‘Our version of the great workplace is not great perks, like sushi lunches, great gyms, fancy offices, or frequent parties. It’s about investing in a dream team of talented people who are excited to pursue ambitious shared goals.’
These lines are straight from the pages of the Netflix Culture Deck – a set of 127 strikingly simple, unassuming slides outlining the company’s unorthodox organizational culture.?
Titled ‘Netflix Culture: Freedom & Responsibility’, this presentation was the brainchild of Patty McCord, then Chief Talent Officer, and Reed Hastings, Co-Founder and former Chief Executive Officer. At the time, their ideas may have sounded audacious, even crazy. But in hindsight, Netflix's remarkable journey from a humble DVD rental service to a global entertainment powerhouse stands as a testament to the effectiveness of their culture-building principles.
In this week's newsletter, we delve deep into the Netflix Culture Deck and discuss some invaluable lessons it holds for us.
What’s Inside the Newsletter ??
? 5 Lessons from Netflix’s Culture Deck?
?? Insights from Top Netflix Officials?
?? Actionable Tips for HR Professionals
?? Quick AI Tip
Let’s get started:?
1. Promote Constructive Dissent
“At Netflix, it is tantamount to being disloyal to the company if you fail to speak up when you disagree with a colleague or have feedback that could be helpful.” – Erin Meyer, co-author of 'No Rules Rules' (along with Reed Hastings).
According to their culture deck, Netflix values open and candid communication. The rule is simple: you shouldn’t say anything about an employee that you wouldn’t say to their face.?
This encourages unfiltered, honest feedback and fosters a sense of trust among team members.
Managers and leaders at Netflix encourage their team members to share their opinions about new ideas and decisions, especially if they think they’re wrong.???
?? Actionable Tips:
Feedback Training: Implement training programs that teach employees how to give and receive feedback constructively. Make it a core part of your organizational culture.
Leadership Role Modeling: Encourage leaders and managers to set an example by openly accepting feedback and demonstrating that it's welcome and valued within the organization.
Peer Feedback Loops: Establish structured mechanisms for peer feedback where employees can provide constructive input to their colleagues.
2. People First, Processes Second
“There’s an assumption that people work for money, and many studies say that’s intrinsically not how people get satisfaction at work. I advocate figuring out the problems you need to solve, then hiring people who want to solve those problems and are capable of doing it. That’s a different kind of matchmaking.” - Patty McCord.?
At the core of Netflix's success is their unwavering commitment to the principle of 'people over process.' They understand that exceptional individuals working harmoniously as a cohesive team yield far better results than rigid adherence to procedures.
?? Actionable Tips:
Competency Frameworks: Develop detailed competency frameworks that outline the specific skills, qualities, and behaviors required for success within your organization. SHL Universal Competency Framework and Creative Leadership (CCL) Competency Framework are two examples.?
Behavioral Interviews: Incorporate behavioral interviewing techniques into your hiring process. Ask candidates to provide specific examples of how they've demonstrated key competencies in past roles.
Regular Culture Assessments: Conduct regular culture assessments to measure how well your organization's values are being upheld.
3. Hire Adults, Ditch the Rulebook
If you hire people who understand and support the desire for a high-performance workplace, 97% of your employees will do the right thing. Most companies spend endless time and money writing and enforcing HR policies to deal with problems the other 3% might cause. - Patty McCord.
Netflix’s approach is to hire responsible adults and entrust them with the freedom to act sensibly. They encourage employees to apply logic and common sense.??
This ‘adultlike’ behavior eliminates the need for outdated HR policies. For instance, Netflix eliminated a formal vacation policy, allowing salaried employees to take time off as needed.??
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?? Actionable Tips:?
Flexible Policies: Consider revising rigid policies to empower employees and allow flexibility, such as rethinking time-off policies.
Empower Decision-Making: Encourage a culture of decision-making at all levels, giving employees the autonomy to make sensible choices within defined boundaries.
Open Communication: Promote honest and transparent communication channels where employees can openly discuss issues.
4. Get Rid of ‘Brilliant Jerks’
“On our dream team, there are no brilliant jerks as they are detrimental to great teamwork. We insist on decent human interactions, no matter how brilliant someone may be”. - Netflix’s Culture Deck.
Netflix's approach stands in stark contrast to the conventional corporate tolerance for "brilliant jerks." They firmly reject the idea that exceptional individual performance should come at the cost of a toxic work environment. Netflix places a premium on teamwork, recognizing that the disruption caused by brilliant yet disruptive individuals far outweighs any potential benefits.
?? Actionable Tips:
Zero Tolerance: Enforce a strict zero-tolerance policy for behaviors that disrupt teamwork or create a hostile work environment.?
Conflict Resolution Training: Offer training programs in conflict resolution and effective communication to help employees address interpersonal issues constructively.?
5. Exceed Market Salaries
“It’s not disloyal to take a call from recruiters. Openly interviewing and giving Netflix the salary data benefits all of us.” - Ted Sarandos, CEO at Netflix.
Netflix encourages their employees to explore job opportunities with other companies and understand their true market value.?
What’s more, they want employees to stay because they are passionate about the job – not just because of compensation and incentives.?
They make a good-faith estimate of the highest compensation each employee could make at peer firms, and offer them the maximum possible compensation.
?? Actionable Tips:
Market Salary Research: Regularly conduct market research to stay updated on industry salary standards. Use this data to ensure your organization's compensation packages remain competitive.
Transparent Salary Communication: Promote transparency in salary communication. Encourage employees to openly discuss their compensation concerns and expectations. Share relevant salary data to demonstrate your commitment to fair pay.
Salary Benchmarking: Continuously benchmark your organization's salaries against those of peer firms in your industry.
Finally, just like in the Netflix Culture Deck, let's conclude this discussion with a quote from Antoine de Saint-Exupéry, the author of 'The Little Prince,':
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.
?? Quick AI Tip
As you work on crafting your culture deck, consider these three valuable and free AI-powered tools to create your presentations.
Until next time.