yashyes nimrod franzeta
Eleanora Parrot
What made Facebook COO Sheryl Sandberg say that a Netflix presentation, "may well be the most important document ever to come out of the Valley"? And what has compelled more than 15 million people to check out the now-legendary slideshow?
I asked friends and co-workers for their opinions and they agreed: an excessively formal workplace makes some people yearn for creative freedom. If you, too, relish freedom and responsibility, you may be the kind of person that would suit a Netflix-style workplace. But why would any other business follow its example?
So that was what I took away from this eye-opening Netflix presentation. It certainly helped me to see recruitment and strategy in a new way and it raises lots of interesting questions, too. For example, could this approach work for all companies?
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With over 40 million + users, Netflix is the most popular online streaming service platform. The platform has revolutionized the way audience consume entertainment. Netflix offers a vast library of movies, TV shows online, cinema, documentaries, and original productions, Netflix has become synonymous with binge-watching and endless entertainment possibilities.
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There is a famous Peter Drucker quote which goes, "Culture eats strategy for breakfast". I was younger and more naive when I came across the said quote years ago, and found it quite memorable and quotable. But I couldn't really understand how culture could make a meal out of strategy. Nowadays, with a little more maturity and leadership responsibilities, I think about culture - for breakfast, lunch and dinner, and sometimes in my dreams. I should make it clear that the "Culture" I am referring to is not the one endemic to nations, religious or ethno-linguistic groups, but to Corporate groups. I am talking about the Culture at work. I have been reading about cultures at world class organizations, so when Reed Hastings, along with Erin Meyer, decided to pen down the culture he created at Netflix, the timing couldn't have been better.
No rules rules is a part-biographical and a part how-to-guide of how Mr. Hastings went about creating the culture that seems to be one of the factors for the great success Netflix has enjoyed. Netflix, which is turning 23, is a company that is coming from the era of cassette-tape video rentals, and has survived four major transitions.
Mind boggling, isn't it? Vertical integration in the Entertainment industry, at its best. I am sure that while culture alone couldn't explain all the success, it must account for some part of it. It is worth noting that Mr. Hastings didn't get it right the first time. His approach to creating the culture in his prior venture, Pure Software, was quite traditional. Neither did the thought of creating a ground-breaking culture strike him when he started Netflix. It was only when Netflix had survived the first few years, that included the dot-com-boom and a round of retrenchment, and attained some stability that Mr. Hastings consciously set about creating a culture that would eventually become a competitive advantage. My own takeaway from this is that in the early stages of a startup, where each day is a quest for survival, attempting a Netflix might be impractical, if not impossible. But I suppose, the earlier you start, the better off you might be.
Eleven years before the release of this book, in 2009, Netflix shared its culture in the form of a 125 slide-long presentation to the world. Even if you don't have the time, patience or inclination to plough through this book, it would be a worthwhile investment to flip through the slides at least once, and let your eyes rest at the eye-popping bits, such as:
The aforementioned policies are a part of the radical culture at Netflix. I especially like the analogy of Netflix being a corporate team, and its employees being the players. This makes so much more sense than the use of the "we-are-a-family" analogy. If your daughter or your uncle are not meeting their "KPI's", can you fire them from your "family"? Business is a team sport, and the idea of companies akin to Corporate teams makes so much sense.
Another great thing about the Netflix culture is the emphasis on leading with context and not with control. Whether or not you have the stomach to implement "no vacation policy" policy, the idea of leading with context is a sound one that can and should be implemented from Day one. It is much easier said than done, but, if you are able to achieve even moderate success in leading with context, the people you lead would be so empowered.
The approach to writing this book is quite interesting as well. It was written by Reed Hastings, one of the founders and CEO of Netflix, and Erin Meyers, a professor at INSEAD whose specialty is how to navigate cultural differences in a global environment (I also recommend Erin Meyer's "The Culture Map" if you want to go down the culture rabbit hole). This ensured that the book is much more balanced, and you also get to hear the story from somebody who is not heavily invested in Netflix. The book is replete with examples of how this culture came to be and how various employees have learned to imbibe through trials and tribulations, both successfully and unsuccessfully.
I highly recommend this book for leaders at any level, and in any company throughout the world. You might say that what works for Netflix, a technology company birthed in one of the most advanced Western industrialized nations, will most probably not work anywhere else. Obviously not. Cultural practices cannot be imported from one organization to the other, that goes without a saying. But the ideas in the book and the motivation behind those ideas are very well worth ruminating over. At the end of the day, we all have to come up with our own version of the rules that would work and the culture that we want at our workplaces. All Reed Hastings and Erin Meyer have done is to show us the possibilities.
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Cockcroft: I'm Adrian Cockcroft. I'm going to talk to you about microservices retrospective: what we learned and what we didn't learn from Netflix. I was at Netflix from 2007 to the end of 2013. We're going to look a bit at that, and some of the early slide decks that I ran through at the time. It's a retrospective. I don't really know that much about retrospectives, but a good friend of mine does. I read some of Aino's book, and figured that there's a whole lot of these agile rituals being mentioned in this book, along with retrospectives. It turns out, Netflix was extremely agile, but was not extreme, and was not agile. We did extreme and agile with a lowercase e and a lowercase a, we did not have the rituals of a full extreme, or full agile. I don't remember anyone being a scrum master of all of those kinds of things. We're going to talk a fair amount about the Netflix culture. The Netflix culture is nicely documented in this book, "Powerful: Building a Culture of Freedom and Responsibility," by Patty McCord, who ran the HR processes and talent. Basically, she was the CTO for Netflix, which was the Chief Talent Officer. Amazing woman, you can see some of her talks. I figured that I should adopt some of the terminology anyway. I've got some story points. I'm going to talk about some Netflix culture. Pick up some of the slide decks from those days. Go over some of the things that were mentioned, and then comment on them. What we did. What we didn't do. What seemed to work. What got left out along the way. I'll talk a bit about why don't microservices work for some people. Then a little bit at the end, just talking about systems thinking and innovation.
Netflix culture, these seven points. The first point is that the culture really matters. They place a high value on the fact that values are what they value. Then, high performance. This is a high-performance culture. It's not trying to build a family, they're trying to build an Olympic winning team, or a league winning team. Pick your favorite sport, how do you build the best team ever for that sport? You go find the best players, and you stack everything in their direction. Those players are the best in the world, so you get out of their way. You do what they tell you to do. There's a bit of coaching, but fundamentally, they have the freedom, but they're also responsible for being the best in the world. What that means is, as a manager, you're giving them context, not control, setting everything up to be successful. Then the teams are highly aligned. We have a single goal to win whatever we're trying to win. Launch in a market or take over something. The teams are loosely coupled, they were individually working on these things, and they have clear APIs where they touch.
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