Book Summary | No Rules Rules: Netflix and the Culture of Reinvention

Book : No Rules Rules : Netflix and the culture of Reinvention

Authors: Reed Hastings, Erin Meyer

One of the companies that is widely used as an example that has disrupted the entertainment industry in one decade is Netflix. From DVD by mail to streaming old TB series and movies over the internet. From streaming old content to launching new original content, From licensing content provided by external studios to building their own in-house studios, from USA co
mpany to Global company… 

No Rules Rules is about success of Netflix through a culture that promoted flexibility, employee freedom and innovation through a culture of “Freedom and Responsibility”. The book has Ten chapters, which the author connects through 10 dots and you have to connect the dots differently. Netfix has shared these practices with examples making easy to connect with the culture and process of any organization. One of the reason for Netflix’s success – it treats Employees like Grownups. The book offers provoking thought, on reinventing culture to remain relevant in a changing business environment through agility, innovation and flexibility. 

The First Dot: A Great workplace is stunning colleagues

• Talent Density: Talented people make one another more effective
• Performance is contagious

The Second Dot : Say what you really Think ( with positive intent)

• High Performance + Selfless Condor = Extremely High performance
• Giving Feedback – 4A Feedback Guidelines

• Aim to Assist – Feedback must be given with positive intent. Clearly explain how a specific behavior change will help the individual or the company.
• Actionable – Feedback must focus on what the receipt can do differently
• Appreciate – When receiving feedback ask yourself, “How can I show appreciation for this feedback by listening carefully, with open mind and becoming neither defensive nor angry
• Accept or Discard :

The Third Dot - Policy & Continue removing controls 

• Set and reinforce context to guide employee behavior
• Freedom from vacation policy adds value – even if no one uses it
• Give freedom to get responsibility
• Spend money as if it were your own
• Act in Companies best interest
• Set context up front and keep an eye on spending out back

The Fourth Dot – Pay top of personal market

• Offer rock – star pay
• Divide the workforce into creative and operational employees
• Bonuses are bad for flexibility

The Fifth Dot - Open the Books

• Stuff of Secrets = SOS
• Knowing when to Share
• Create a work culture of financial transparency, making every aspect of the business visible to every employee
• Invest a substantial amount of time and effort training every staff member how to read and understand, in detail, the weekly operating and financial reports
• When making decisions that will impact the employees wellbeing, like reorganizations or layoffs, open up to the workforce early, before things solidified. This will cause some anxiety and distraction, but the trust you build will outweigh the disadvantages.

The Sixth Dot – No Decision making approval needed
Don’t seek to please your boss. Seek to do what is best for the company.
Netflix innovation Cycle – Innovation Friday

• - Farm for dissent or socialize the idea
• - For a big idea, test it out
• - As the informed captain, make your bet
• - If succeed celebrate. If it fails sunshine 

Three-part response on Sunshine

• - Ask what learning came from that project
• - Don’t make a big deal about it
• - Ask to “sunshine” the failure

The Seventh Dot – The Keeper Test

• Demand excellence. Count on the manger to make sure every position is filled by the best person at any given time.
• Train to win, expecting to receive candid and continuous feedback about hot to up their game from the coach and from one another.
• Know effort isn’t enough, recognizing that they will be thanked and respectfully swapped out for another project.
• Avoid stack-ranking system, as they create internal competition and discourage collaboration.
• From Family to Team - For high performance culture a professional sports team is a better metaphor than a family. Coach the managers to create strong feelings of commitment, cohesion and camaraderie on the team, which continually making touch decisions to ensure that best player is manning each post.

The Eight Dot – A circle of Feedback

• A circle of Feedback – “Start, Stop, Continue” format for the 360 degree feedback that gives concrete actionable feedback
• Live 360 dinners are another effective process. Set aside several hours away from the office. Set aside several hours away from the office. Give clear instructions, follow the 4A feedback guidelines and use the Start, Stop, Continue Method.

The Ninth Dot – Lead with Context, Not Control

• Leading with context will not work unless you have the right conditions in place.
• Align to true north and highly aligned on vision and objectives
• A loosely coupled organization should resemble a tree rather than pyramid. The boss is at roots, holding up the trunk of senior managers who support the outer branches where decisions are made.
• You know you are successfully leading with context when your people are moving the team in the desired directions by using the information they have received from you and those around you to make great decisions themselves.
• Everything is Relative

The Tenth Dot – Bring it all to the World – Going Global