Nobody wants to hear it but its the truth
The Human Resource Practice that took Netflix to the top.
We’ve all heard it before. The company is it’s people. I wont argue with that, not even. I will only agree, cause in all honesty nothing is closer to the truth. How can you drive a company without the commitment and performance of its people? You can’t, and if you do it will just be a temporary endeavor until you realize what is truly important.
Browsing on the internet about what could I possibly write on my first blog post, I stumbled upon a really basic powerpoint. And let me clarify, “basic” in terms of presentation and edition, nothing out of the ordinary and to say the least, everything more of the ugly (again, in terms of presentation).
However this 126 slide powerpoint has been shared roughly 5 million times around the internet and was written by two Netflix C-level execs: Patty McCord (former Chief Talent Officer), and Reed Hastings (CEO), and you already now what Netflix is right? That addictive movie and series streaming platform which has probably been part of your life for awhile, needless to say its my new boyfriend.
So, when I read that this document was being called “one of Silicon Valley’s defining documents” I fixed my glasses, forgot the aesthetics of it and hopped to reading and taking notes.
Even though, in my opinion the document is not well formatted at all, (you would not believe it was done by two such executives if you did not read it before) the content of it all, its truly outstanding.
McCord, cuts to the point and gives you what the culture of Netflix is without any anesthesia, and truly it must have worked: Today the company has 4.37 billion in revenue and subscribers are at 33.1 million only in the US. Its a company that is expanding heavilly globally and very quick.
The ppt named “Netflix Culture: Freedom and Responsibility” undertakes the practices that the company uses to recruit, motivate and retain their employees. What caught my attention was their to-the-point approach. Instead of saying: “do your best”, “effort counts”, their approach is direct but very flexible at the same time; and its all about the culture.
For example they emphasize that Netflix is not a family but a team, and that it is important to keep and have highly effective and performing people throughout so that the team can strive. As the company grew larger, and chaos was going to be encountered they decided the best approach was not to limit size, nor creativity, neither to implement processes (which is what most companies in their expansion state will do), but something truly simple hire more “common- sense people”. McCord emphasizes again that it is common sense people which will truly thrive in their culture and make the company flourish. As she says it very bluntly: “ No Rules, more better judgement people”.
They also put a high level emphasis not in the amount of hours you work, neither on how you get a result, but more on the result and your performance. They are fast to say that people with high efforts but mediocre performance will get a comfortable severance package. In other words, performance ousts effort anytime at Netflix.
Keeping up with this flexibility, there is no real vacation policy. You can take as much time as you want as long as you get your stuff done. Honeslty, sounds awesome. Those are a few of the characteristics of the 7 points critical to Human Resources at Netflix. Oh! Plus the big top-of-the-market salaries! Who wouldn’t like that?
The company, seemed to notice that high performance employees need responsability but also flexibility. They need guidance in the form of context but also room to grow with their own ideas. In other words, they need to feel good at their workplace and be surrounded by a culture full of people full of motivation (stunning colleagues as McCord calls them), so that exact drive becomes a value that they live and breathe everyday at Netflix.
You can check the presentation here: http://www.slideshare.net/reed2001/culture-1798664
You can also view really interesting videos from Patty McCord about culture: https://www.youtube.com/watch?v=o3e1lnixKBM