Netflix and Amagi Culture_Stark Similarities E-2

Book Name- Netflix and the Culture of Reinvention

Author- Reed Hastings & Erin Meyer

Amagi #management

In my 25+ years of Corporate experience, I recall very few companies which follow the Netflix Culture. The Closest which resembles this Culture is “Amagi Corporation” and which is now a Unicorn, valued more than 1.4 Billon USD as on this date. I had joined Amagi in early 2011 when the total size was less than 100 and rest is history. The experiences shared are only with reference to the above book.

Rules-1/ 9

A great workplace is stunning Colleagues

Amagi was crystal clear, when it came to hiring, most engineers were hired from Instates in the likes of IISC, The same was the case with rest functions. This was the case when Amagi was a toddler and yet to be profitable.??Srini believed in the principle-hire right and then sit tight, hire motivated employees, so that we don’t spend time on basics with them.

Hiring average people was out of question, and there was enough rigor in hiring process, I call this “ Amagi Talent Acquisition Strategy” where the individual had to interact with at-least 3 difference head’s before being hired. Simple rule-All the members had to say “Yes” Even if one member of the core team had a different??point of view, the individual would be rejected.

Baskar Another Co-Founder of Amagi always defined his role as developing work environment and getting right infrastructure for business, and results??would then be the by-product.

Did your colleagues handhold you when you had joined as an intern ?

Rules-2/9

Say what you really think(With Positive Intent)

Srini not only believed, that all employee’s should be “Vocal”, This was hugely respected and expected. I remember days, he calling even the junior most employees soliciting feedback and his rules were clear, One has to speak keeping Amagi in mind and positivity. There were free flowing sessions across cross functional teams. In fact, to make each one realise the impotence of each function/role, We were also given chance to be in their shoes and experience their day to day work routine, this made cross functional teams extremely candid with each other.

A fable of The Emperor had no clothes, does not function at Amagi, We were groomed to give and take feedback effectively following guidelines such as?

????????????????Aim to Assist

????????????????Actionable

????????????????Appreciate

????????????????Accept or Discard.

Most important, feedback was taken seriously at professionally and next day was a new day with new rigor and no heart feelings about feedback.I recall my lengthy conversations with Srini on changes, company vision etc.

Does your company punish the messenger ?

Rules-3/9

Remove Vacation Policy Travel & Expenses Approvals

Amagi had no such above policies, Our Co-Founders had 1 simple belief-Do what you think is right for the company. Employees at my Senior Level and perks available, We hardly used any of them. Most of them were only on paper, In fact we were more cautious in our spends. While I was managing Mumbai, I was free to spend on any office expenses, which deem fit to my judgement and 1 email would clear all the vouchers-No Questions asked.

There is Travel Policy-Each one can decide the “Mode of Transport” & “Hotel Stay”. Today- Most organizations believe in taking 1st Flight for the managers(Who are half asleep and mentally tired). Amagi suggested, We reach a day prior for any meeting/review and charged. In the hindsight it looked like an expense, It was rather an investment.

To simply further, Amagi gave us “Pre-Paid” cards and rest was managed by central Admin team. We were allowed to take leaves, bases our needs and situations, as long as we inform and align everyone accordingly. Lunch was on the house for Bangalore team, Srini looked this as team building exercise, rather than investment.

Have you taken your annual leave yet ? Have your annual leaves lapsed ?

Rules-4/9

Pay Top of the Personal Market

During our initials interactions with Srini mentioned to us that, All wealth of Amagi is in the “Locker” and each one has the Key’s. We are free to pick up as per our needs and wants. Amagi had a fantastic “Cash in Hand” pay structure. This made poaching for other companies externally difficult.?

Besides high “Cash in Hand”, Amagi had the best Pay Structure which involved- ESOP, Fixed Salary & Incentives. In my entire career, even when Amagi was struggling, not even a single day, was the salary delayed, this installs confidence in team. Amagi never paid Bonuses, Srini believed in paying higher salaries with double digit increments. We were free to speak, If we had a competitive offer,??and Amagi was keen to understand current pay structures, instead of pushing easy the issue below the mattress.

Does your company follow a flexible pay structure ?

Rules-5/9

Open the Books

Organizations are full of secrecy, where one department does not know about the others, The costs, profits etc. are limited to selected few. However Amagi was different, We exactly knew our purchase cost for Ad-Inventory and thereby made the Sales Team more responsible and accountable for selling at right prices, to ensure we have decent gross margin. Here I am referring to the trading Ad-Business of Amagi. Transparency was the cultural principle at Amagi. We have open office policy and there were no cabins, Someone one could be sitting with CFO, the other day with HR etc.?

All professional related aspects were shared openly, all strategic decisions were discussed in Public. In fact the co-founders didn’t even have an assistant for years. This is the 2nd Company by Srini & Baskar, and most employees from the previous continued with Amagi as well. When time came to encash ESOP, each member, existing or past, we’re duly called and paid. All costs were actuals and no margins were added to share a gloomy picture.

Do you know the basic cost structure of the product/TV show you are selling ?

Does your company have SOS-Stuff of Secrets ?

Rules-6/9

No decision making approvals needed

Most managers, Love to keep Control and decision making to themselves for the need of control. Amagi Co-Founders are exactly “Opposite”

We were searching for our New Office in Mumbai in 2011 and My Co-Founder was in Mumbai at the same time, As a protocol, I took Baskar along to show the offices and at the end of the day, asked his opinion and decision on the office we should select, I was amazed by his answer-Select office, which suits best to the local staff, the decision stays with you, This is “Empowerment”. Srini on weekly calls always asked us, What have you tried new and failed? For a moment, It was hard hitting. We understood the silent message, We will be judged on collective outcome of all our bets/decisions and not on the results from one single instant.

Srini always mentioned- Don’t seek to please me or anyone here, Do what’s right for Amagi. Amagi in Japanese means “Freedom”

Is your business suffering due to bureaucracy and multiple decision making layers ?

Rules-7/9

The Keeper Test

When it came to people management, Amagi was “Inward looking organization”. Our approach was bases our Value Systems. Amagi had instances of generous severance payment to selected employees. Amagi for initial years never had “Designations” We had “Roles and Responsibilities” instead on our listing cards, and when employees asked- What should they say, a new recruiter- Baskar remarked, “We will give you the designation, you ask, Even if this means giving you a CEO designation, As long as you can carry yourself well, We don’t have any problems. There was no stack ranking systems, as they create internal competition and discourage collaboration.

Being a startup, hiring and letting go for employees is a painful process, Srini always spoke openly about what happened with team over a call and all questions were answered candidly.

Does your organization follow the Keeper Test ?

Rules-8/9

Circle of feedback

Organizations with cross functional team’s will have compatibility issues, Srini followed a simple rules, Feedback were given directly in front of him to respective individuals, He believed there was no point talking behind the back and wasting time. Annual review was a cultural process and not just a tick mark in the book.??Annual reviews started by Co-Founders soliciting feedback about themselves and things they and company should improve in Open Forum.

Managers were trained to give and receive feedback as per 4A method shared before.

Does your organization follow a Circle of Feedback ?

Rules-9/9

Lead with Context, Not Control

In order to lead??with Context, the goal of the organization needs to be innovation, new ideas etc. and not error prevention. In engineering context, one can fix the process to eliminate errors, However Amagi was a Creative Firm as well, and Co-Founders allowed “Creativity in Decision Making”

A point in case, All senior employees were called to discuss “Vision & Value System” The Co-Founders believed, not in blame game, but getting the context right across the organization. When, one of our team members decided to move on, We were questioned on our “Value Addition” in his/her life, For Instant-Have we done enough to train them ?

Does your organization blame individuals for the mistakes ?

https://www.instagram.com/vishal.v.khanna/