And if the answer is “no”, they think why don’t you let it go and make room for someone you would fight for? The real values of a firm are shown by who gets rewarded or let go. Workana is expanding into South-East Asia – and Payoneer comes with us! We find new ways to accomplish more together. Subscribe to the Workana newsletter and keep updated, © 2012 - 2019 | Workana LLC - Todos los derechos reservados. We want to entertain the world. On rare occasions, freedom is abused. The company offers its employees generous benefits like unlimited holidays and an expense policy that simply requires people to “act in Netflix’s best interests”. On a dream team, there are no “brilliant jerks.” The cost to teamwork is just too high. Unexpectedly, DVD players got hot, as did the company's DVD-by-mail business. Given our dream team orientation, it is very important that managers communicate frequently with each of their team members about where they stand so surprises are rare. At its core, the Netflix company culture is about “people over process”. It’s OK to disagree with your manager. 4 Sadly, a few countries’ tax laws do not support employee choice (Singapore, Japan, France, Korea, Taiwan), You make wise decisions 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 are good at using data to inform your intuition, You make decisions based on the long term, not near term, You are concise and articulate in speech and writing, You listen well and seek to understand before reacting, You maintain calm poise in stressful situations to draw out the clearest thinking, You adapt your communication style to work well with people from around the world who may not share your native language, You provide candid, helpful, timely feedback to colleagues, You contribute effectively outside of your specialty, You seek to understand our members around the world, and how we entertain them, You say what you think, when it’s in the best interest of Netflix, even if it is uncomfortable, You make tough decisions without agonizing, You take smart risks and are open to possible failure, You question actions inconsistent with our values, You are able to be vulnerable, in search of truth, You inspire others with your thirst for excellence, You care intensely about our members and Netflix's success, You are quietly confident and openly humble, You seek what is best for Netflix, rather than what is best for yourself or your group, You are open-minded in search of great ideas, You re-conceptualize issues to discover solutions to hard problems, You challenge prevailing assumptions, and suggest better approaches, You keep us nimble by minimizing complexity and finding time to simplify, You collaborate effectively with people of diverse backgrounds and cultures, You nurture and embrace differing perspectives to make better decisions, You recognize we all have biases, and work to grow past them, You intervene if someone else is being marginalized, You are curious about how our different backgrounds affect us at work, rather than pretending they don’t affect us, You are known for candor, authenticity, transparency, and being non-political, You only say things about fellow employees that you say to their face, You treat people with respect regardless of their status or disagreement with you, You always share relevant information, even when worrisome to do so, You accomplish amazing amounts of important work, You demonstrate consistently strong performance so colleagues can rely upon you. Our goal is to inspire people more than manage them. This document is about that culture. The firm fights for net neutrality, and people want to work there more than at … We try to create a sense of ownership so that this behavior comes naturally. We work to have a company of self-disciplined people who discover and fix issues without being told to do so. Unquestionably, we have to hire well. There are some leaks, but the value of highly-informed employees is well worth it. We work hard to get people to give each other professional, constructive feedback - up, down and across the organization - on a continual basis. We believe that people thrive on being trusted, on freedom, and on being able to make a difference. Eventually, however, over 10 to 100 years, the business model inevitably has to change, and most of these companies are unable to adapt. The company has the talents philosophy for the only “A” players employing (Page 72). If you have never tried it, or if you think it is time to enlarge your structure without adding fixed costs, we invite you to click here and learn more about Workana. We are learning faster than ever because we have more dedicated people with diverse perspectives trying to find better ways for our talented team to work together more cohesively, nimbly and effectively. Netflix maintains its ability to change through its organizational culture concept – freedom and responsibility. While it’s not surprising that 70% of employees on Glassdoor would recommend working at Netflix to a friend, there’s more to their success than unlimited holidays. Employees with a strong track record at Netflix get leeway if their performance takes a temporary dip. Organisational Structure of Netflix Netflix has a functional organizational structure, which is segmented by the aims of its functions themselves, rather than by customer segments or regions. Small decisions may be shared just by email, larger ones will merit a memo with discussion of the various positions, and why the captain made such a decision. No matter how honest, though, we treat people with respect. We also believe that a strong and consistent organizational culture can be formed with remote teams and freelancers. We seek to be big, fast and nimble. Symptoms include: We avoid this by being highly aligned and loosely coupled. In an unprecedented move in 2009, Netflix decided to publish its culture … Although the rise of its international visibility is relatively recent, Netflix has been operating since 1997. Our version of the great workplace is not great gyms, fancy offices, or frequent parties. We may find that the strategy was too vague or the tactics were not aligned with the agreed strategy. A sports team with a losing record still pays top of personal market for the players they hope will get them back into a winning position. But these are edge cases. It is a continuous aspirational stretch. We don’t want hands-off management, though. As we wrote in the beginning, what is special about Netflix is how much we: Antoine de Saint-Exupéry, the author of The Little Prince, shows us the way: 1 We mean the team of your dreams, not the 1992 men’s USA Olympic basketball team. At all times, we aim to pay all of our people at the top of their personal market. Many times, groups will meet about topics and debate them, but then afterwards someone needs to make a decision and be that “captain”. We are in a creative business, not a safety-critical business. At Netflix, you learn a lot working on hard problems with amazing colleagues, and what you learn increases your market value. We avoid the model of “2% raise for adequate, 4% raise for great”. There are no compensation handcuffs (vesting) requiring you to stay in order to get your money. When shaping their culture, Netflix not only sought to build a strong company culture, but they defined the culture in a way that would motivate high performance at the same time. 2 We generally offer a minimum of four months of full pay as a severance package, giving our ex-teammates time to find a new company. We are clear, however, that decisions are not made by a majority or committee vote. Often, two groups working on the same goals won’t know of, or have approval over, their peer activities. The keeper test is applied as a judgment of someone’s overall expected contribution. The informed captain on that decision has the responsibility to welcome, understand, and consider your opinions, but may not agree. If this standard management approach is done well, then the company becomes very efficient at its business model — the system is dummy-proofed, and creative thinkers are told to stop questioning the status quo. The corporation addresses the needs of its human resources to ensure that its online business processes are effective and profitable. Typically, we calibrate to market once a year. We focus on managers’ judgment through the “keeper test” for each of their people: if one of the members of the team was thinking of leaving for another firm, would the manager try hard to keep them from leaving? Netflix has put all that aside. There are companies where people ignore trash on the floor in the office, leaving it for someone else to pick it up, and there are companies where people in the office lean down to pick up the trash they see, as they would at home. Netflixorganizationalculture 131001173045-phpapp02 from Rose Nolen People find the Netflix approach to talent and culture compelling for a few reasons. Ultimately, the end goal is to grow the business for bigger impact while increasing flexibility and agility. More specifically, we have great people working together as a dream team. Every employee who comes to Netflix must read a document that contains his or her positions regarding the work culture, which includes in a perfectly clear way the ten criteria that make an employee stay in the company or not, since these are the true values of an organization: Good judgment; Communication; Curiosity; Courage; Passion; Loyalty; Innovation In many organizations, there is an unhealthy emphasis on process and not much freedom. Rapid recovery is possible if people have great judgment. One might assume that with dream team focus, people are afraid of making mistakes. What is special about Netflix, though, is how much we: Our core philosophy is people over process. A dream team.css-1l7hytn{vertical-align:super;font-size:75%;margin-left:2px;}1 is one in which all of your colleagues are extraordinary at what they do and are highly effective collaborators. We do not think of these as “raises” and there is no raise pool to divide up. Every employee who comes to Netflix must read a document that contains his or her positions regarding the work culture, which includes in a perfectly clear way the ten criteria that make an employee stay in the company or not, since these are the true values of an organization: This documentwith its policy of responsibility and freedom has caused a stir among Silicon Valley companies. “It’s a reflection of the community that exists … More specifically, we have great people working together as a dream team. We build trust by being selfless in giving feedback to our colleagues, even if it is uncomfortable to do so. Our model works best for people who highly value consistent excellence in their colleagues. On the positive side, it has allowed consumers to become more empowered. They thrive on excellence and candor and change. that is how you get rewarded). At Workana, as at Netflix, we are convinced that the foundation of a great company is its culture. Others take it to new extremes, proudly calling themselves nano-managers. And today it is one of the world’s most successful companies with nearly one hundred million subscribers across nearly two hundred countries. To get there, we have an amazing and unusual employee culture. These organizations didn’t start that way, but the python of process squeezed harder every time something went wrong. Knowing that other companies would quickly hire you if you left Netflix is comforting. We make a good-faith estimate of the highest compensation each employee could make at peer firms, and pay them that maximum. Over that period, Netflix’s teams navigated rapid change and growth, going from a small DVD-by-mail service into a global media and video streaming giant and disrupting an entire industry. Those who do not pass the keeper test (i.e. Its employees must become familiar with an organizational culture in which they clearly postulate that they are a team, not a family or a “recreational kindergarten”. You will also provide two examples from the two articles and the presentation on … In describing selflessness we say “You make time to help colleagues. The heads of major networks and studios sometimes make many decisions in the creative process of their content. Each leader's role is to teach, to set context, and to be highly informed of what is actually happening. We try all kinds of things and make plenty of mistakes as we search for improvement. Being fired from this company doesn’t mean that an employee is bad, it just means that he or she isn’t a spectacular employee. Also, it is safe for any employee at any time to check in with their manager by asking, “How hard would you work to change my mind if I were thinking of leaving?” In the tension between honesty and kindness, we lean into honesty. One description of the espoused Netflix organizational culture is stated in Slide 6 of the slide deck Netflix Culture: Freedom and Responsibility that you viewed in Module One. “The best thing you can do for your team, maybe more than just let them play football or put in a free sushi bar, is to hire only committed employees. Learn how to grow your business by using our team of on-demand talent. Organizational Tenet: Operate As A Team, Not A Family Don’t get the wrong impression, Netflix doesn’t coddle their employees. The market for talent is what it is. We try hard to be the latter, a company where everyone feels a sense of responsibility to do the right thing to help the company at every juncture. Just because a few people abuse freedom doesn’t mean that our employees are not worthy of great trust. We actively help people learn how to do this at Netflix through coaching and modeling the behaviors we want to see in every employee. As preparation for the course, we were to prepare a case study of a few suggested companies, such as Netflix, which has a high-performance culture. So we foster freedom and empowerment wherever we can. 5 Workana tools that clients like the most, Six years and more than a million users: Workana’s story. Click here to learn more and schedule a a free call. Feedback helps us to avoid sustained misunderstandings and the need for rules. If you disagree on a material issue, it is your responsibility to explain why you disagree, ideally in both discussion and in writing. Some employees’ market value will rapidly rise (due both to their performance and to a shortage of talent in their areas) while other employees may be flat year-to-year, despite doing great work. They would be disappointed if given a severance package, but lots of mutual warmth and respect. The more these values sound like you, and describe people you want to work with, the more likely you will thrive at Netflix. But we also don’t have a clothing policy, yet no one has come to work naked. Powerful is a triumphant testament to the power of HR to harness employee potential and shape organizational culture. Netflix’s organizational values are rather free forming but yet extremely structured, the company bases their values off of trust, as well as how they are able to establish growth and continue to be innovative. As the informal, smooth-running organization starts to break down, pockets of chaos emerge, and the general outcry is to “grow up” and add traditional management and process to reduce the chaos. With this approach, we are a more flexible, fun, stimulating, creative, collaborative and successful organization. Like most companies, Netflix wants to hire the best. Join our community and get ready for a new world of work. We trust our teams to do what they think is best for Netflix — giving them lots of freedom, power, and information in support of their decisions. Why does hiring freelancers have a positive impact on society? Some processes are about increased productivity, rather than error avoidance, and we like processes that help us get more done. Netflix Inc.’s corporate culture is based on a core philosophy that prioritizes people. Summary Neil Hunt, Chief Product Officer at Netflix Inc. manages two-thirds of the company's employees Works with algorithms that power the recommendations as well as relationships with internet providers In January, Netflix launched in more than 130 countries-making Hunt's job This kind of organization is very specialized and well adapted to its business model. The emphasis is on results and people, not processes. If, later, the activities don’t seem right, we have a candid discussion. Let me know if you want to specifically override my decision.” What we don’t want is people guessing what their manager would do or want, and then executing on that guess. Below are our values, the specific behaviors and skills we care about most. Check out our exclusive remote freelance talent service for companies. The effect of Netflix and streaming media on culture globally Since the adoption of its streaming media service, Netflix has had a huge impact on culture and the way in which people view television today. Frankly, we intermix work and personal time quite a bit, doing email at odd hours, taking off a weekday afternoon, etc. Through this corporate structure, the company is able to continually evolve to offer original entertainment content and on-demand media streaming service that attract target customers around the world. We also have to foster collaboration, embrace a diversity of viewpoints, support information sharing, and discourage politics. The back and forth of discussion can clarify the different views, and concise writing of the core issues helps people reflect on what is the wise course, as well as making it easy to share your views widely. But those are the exceptions, and we avoid over-correcting. Every few years we can feel a real difference in how much more effectively we are operating than in the past. Note that if our company experienced financial difficulty, we wouldn’t ask our employees to accept less pay. Once the captain makes a decision, we expect everyone to help make it as successful as possible. Slide 6 states: “The actual company values, as opposed to the nice-sounding values, … The legend of Steve Jobs was that his micromanagement made the iPhone a great product. In order to confront unexpected challenges and seize emerging opportunities, they need to have a culture that balances freedom with responsibility. Everyone knows each other, and everyone picks up the trash. But unlike many, they are also committed to keeping only the best talent, so if an employee’s skills or talents are no longer growing the company, the company lets them go. There are virtually no spending controls and few contract signing controls. For this assignment, you will apply what you know about Watzlawicks iceberg model of communication to analyze the organizational culture at Netflix. To have an entire company comprise the dream team (rather than just a few small groups) is challenging. Company leaders must be able to make decisions that anticipate at least six months into the future and push the limits of their productivity. New employees often comment in their first few months that they are surprised at how accurate this culture description is to the actual culture they experience. The only way to figure out how the context setting needs to improve is to explore a sample of the details. Instead, seek to serve the business. Afterwards, as the impact becomes clearer, we reflect on the decision, and see if we could do even better in the future. Eight years ago, we first published a slide presentation that outlines our employee culture at Netflix, which has since been viewed millions of times. Within a dream team, collaboration and trust work well because your colleagues are both exceptionally skilled at what they do, and at working well with others. Like many great companies, we strive to hire the best and we value integrity, excellence, respect, and collaboration. In describing integrity we say, “You only say things about fellow employees you say to their face.” This attribute is one of the hardest for new people to believe — and to learn to practice. Feedback is more easily exchanged if there is a strong underlying relationship and trust between people, which is part of why we invest time in developing those professional relationships. We pride ourselves on how few, not how many, decisions senior management makes. Being on a dream team is not right for everyone, and that is OK. The organizational culture at Netflix is meant to drive higher transparency and more openness between the team members as well as independent decision making. We had one senior employee who organized kickbacks on IT contracts for example. We model ourselves on being a team, not a family. The unusual part is that we give adequate performers a generous2 severance package so that we can find a star for that position. Of course, to be great, most of us have to put in considerable effort, but hard work and long hours is not how we measure or talk about a person’s contribution. Netflix’s approach to culture and talent is unique because (1) it has worked – they are very successful and (2) it is based on common sense. They also must try new things and find strategies that bring the team closer to achieving its goals more quickly. People frequently ask others, “What could I be doing better?” and themselves, “What feedback have I not yet shared?”. If we succeed, there is more laughter, more empathy, and more joy. Our vacation policy is “take vacation.” We don’t have any rules or forms around how many weeks per year. Like all great companies, we strive to hire the best and we value integrity, excellence, respect, inclusion, and collaboration. Our policy for travel, entertainment, gifts, and other expenses is 5 words long: “act in Netflix’s best interest.”. We suck compared to how great we want to become. Four variables How Netflix Reinvented HR The Woman Behind the Netflix Culture Doc Netflix Culture: Freedom & Responsibility Observable Artifacts Netflix has changed the environment culture by changing how they viewed the people and policies. There are a few important exceptions to our anti-rules pro-freedom philosophy. We celebrate the people who are very candid, especially to those in more powerful positions. We use these meetings to learn from each other and get more done, rather than to prevent errors or approve decisions. A year ago I attended Certified Agile Leadership (CAL1) training. The leader's job at every level is to set clear context so that others have the right information to make generally great decisions. People like loyalty, and it is great as a stabilizer. Being on a dream team can be the thrill of a professional lifetime. Although it is not the typical work scheme of companies, it is what defines film crews in Hollywood films and consultancies, for example. But unconditional allegiance to a stagnant firm, or to a merely-adequately-performing employee, is not what we are about. Netflix’s Organizational Culture: An “Unusual Employee Culture”. When highly capable people work together in a collaborative context, they inspire each other to be more creative, more productive and ultimately more successful as a team than they could be as a collection of individuals. 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