Netflix’s Freedom And Responsibility Culture

August 12, 2009  | 

I came across this awesome 128 slide presentation from the CEO of Netflix today (below). The presentation is meant to be read, rather than presented and offers a quick-fire reference guide on the values, behaviors and skills Netflix upholds in the effort to create a culture of freedom and responsibility for their business. Regardless of your position in your current organization, these slides are worth spending some time absorbing – they represent a massive (and necessary) shift from the values and thinking that define rigid cultures of control and process adherence to those that create cultures that set the appropriate context for workers to form nimble, effective teams who constantly innovate, share ideas and challenge and learn from one another. At it’s core this new cultural framework requires a simultaneous top-down and bottom-up infusion of values. Making it work is about getting managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to control their people, as well as about building teams of self motivating, self-aware, self disciplined, self improving people who take ownership and responsibility and are willing to work cross functionally when challenges arise.

The full presentation is embedded below for you to flip through. I’ve included a break down of the 9 behaviors and skills that the company highlights as most important to their culture:

#1 Judgement

  • 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 no, and what can be improved later.

#2 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

#3 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-t0-action, and avoid analysis paralysis.

#4 Curiosity

  • You learn rapidly and eagerly
  • You seek to understand our strategy, market, subscribers, and suppliers (factors that impact the business and customer experience)
  • You are broadly knowledgeable about business, technology and entertainment (you understand the various contexts the business operates under and the interplay between them)
  • You contribute effectively outside of your specialty

#5 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

#6 Courage

  • You say what you think even if it is controversial
  • You make tough decisions without excessive agonizing
  • You take smart risks
  • You question actions inconsistent with our values

#7 Passion

  • You inspire others with you thirst for excellence
  • You care intensely about Netflix’s success
  • You celebrate wins
  • You are tenacious

#8 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

#9 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.
Culture

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  • As I embark on a new adventure in launching another startup I'm definitely going to use these principles as we begin to build a team. Great thoughts from a great company who has obviously scaled well and kept the right attitude within the corporate walls along the way. I'm sure it's no easy task.

    Thanks for bringing this to my attention.
  • Yes, Steffan, this resonates with me a lot. Wow, makes you want to work for Netflix, doesn't it?!?!

    I believe that organizations, for profit and nonprofit, must develop new models of structure. Hierarchies and command and control approaches no longer work. We need to move to heterarchies and network models where the structure is horizontal, networked based on projects, and collaboratiion and collective wisdom is seen as a better way. We need to move from organizations with a bundle of rules, regulations, and norms governing the actions within its structure to, new institutions that think of themselves as mobilizing networks. Instead of one employee as a winner take all approach, it’s a cooperative form. Leaders, employees and volunteers are committed to a vision of the social that stresses cooperation, interactivity, mutual benefit, and social engagement. The power of ten working interactively will invariably outstrip the power of one looking to beat out the other nine. These are some of the first steps at designing new organizations to fit a digital and networked world.
  • Yep. Totally makes you want to work for Netflix. :). I love that there are
    companies out there that recognize that elegant, nimble organizations start
    with foregrounding values rather than enforcing rules for information flow
    and hierarchical structure. Great teams operate organically. Anyone who's
    been in the trenches knows that, when it comes down to it, we're all in the
    business of problem solving, communicating and helping one another - that's
    why allowing (and encouraging) employees (at any level) to form and interact
    with their own self-made networks works.

    One of the great lessons I learned working in Big Four as a consultant was
    that the MOST important thing you could do to succeed was build a network of
    experts who you could call for help. The best workers were those who were
    excellent at identifying the root causes of problems and were able to
    clearly communicate exactly what was happening to people who trusted
    colleagues who could help solve the issue and move the project forward. Our
    superiors often didn't have the answers - so we reached out horizontally,
    below us and vertically above our managers for help and often got it
    quickly. We survived by our networks.
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