As articulated on its website, Netflix’s mission statement is “We want to entertain the world.” It’s simple. They are an entertainment company with global ambitions.
The progressive company was one of the first to use new internet technology to drive nearly its entire business model. The service started as a mail-order DVD company, but now Netflix relies on the internet to share its products with customers worldwide; now, we can stream content instantly to any device, anywhere. They have changed the way we view content.
The online business model has also allowed Netflix to collect vast amounts of customer data. Netflix’s AI-powered algorithm creates personalised recommendations for each user based on their preferences, watch history, ratings and demographics.
It has grown so powerful that the term ‘The Netflix Effect’ has been coined to describe when a new series catapults an unknown actor to fame – overnight – a result of millions of people binge-watching a show.
In today’s fast-paced world, we prefer the flexibility of being able to watch what we want when we want to. When a business grows at such a rapid pace, it requires a solid recruitment ant retention plan. Without a stable workforce behind the company, growth would stunt.
So how has this company successfully navigated high growth and maintained a healthy business reputation?
In the book Masters of Scale by Reid Hoffman (Founder of Linkedin) talks to Reed Hastings Founder of Netflix about the principles of influential, deliberate company culture. He states, “Our company culture scares off some potential hires — and that’s a good thing.”
At the heart of Netflix’s culture is a carefully crafted document known as the “Culture Deck,” which breaks down Netflix’s mission, hiring principles and expectations. It not only gives guidance to current employees but more importantly, gives guidance to potential new hires, to know what they are getting themselves into. It comprises of 124 slides and is a “Working Document” that has guided the Netflix since the beginning.
There are strong statements throughout the slidedeck like “Adequate performance gets a generous severance package” and “We’re a team, not a family.”
“I liked reading this, they set clear expectations of what they are looking for. Not everyone is the right fit for certain companies. I could not agree more” said Josh Cote.
They state:
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.
In another statement throughout the slidedeck they write:
Our High-Performance Culture is 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 a political place to work
- We’re getting better at attracting only the former, and helping the latter realise we are not right for them.
I see this as being clear about what you want. It doesn’t mean it’s done in an aggressive manner, but it helps team members understand the expectations of the business. Great leaders figure out how to get phenomenal outcomes by setting the context, rather than micro-managing and controlling their people.
Wouldn’t we all want to find ‘The Rare Responsible Person’ (according to Netflix) for our business?
They are:
- 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
This type of person would add incredible value to any business.
Strong company cultures only emerge when every person in the business feels they own the culture — and this begins even before the first job interview. To build an adaptive, high-performing culture as a small business or an investor in a business, we can use this Netflix lesson and be unabashedly upfront about who we are and who we want to attract to our businesses.
