📚 5 Books I Wish I’d Read in My First Years as a Founder: Part 5— No Rules Rules — Netflix and the Culture of Reinvention

Maybe you’ve heard the famous quote “Culture eats strategy for breakfast”, right?

As an aspiring entrepreneur, constantly navigating the ever-changing landscapes of business, I’ve come to appreciate the immense value of understanding and shaping organizational culture. One book that stands out in this regard is “No Rules Rules: Netflix and the Culture of Reinvention” by Reed Hastings and Erin Meyer.

💡 Why I Wish I’d Read It Sooner

• I would have better understood the quote “Culture eats strategy for breakfast” — the true power a good culture has for the team & company’s performance, and how you can actually build it;
• In the early years of my journey, building a company culture that fosters innovation, adaptability, and growth was one of my most significant challenges. This book provides a unique look into how Netflix crafted and maintained its distinct culture. Exploring these principles earlier could have transformed my approach to culture-building in my own company.

🚀 Key Takeaways and Lessons

• The Essence of a Great Workplace: Beyond superficial perks, a good workplace is defined by great minds collaborating to elevate each other. It’s the joy of being among talents, pushing boundaries, and collectively becoming better versions of ourselves.
• Radical Honesty & Feedback Culture: Netflix encourages open and candid feedback among employees, creating an environment where issues are identified early, and solutions are collaboratively devised. “At Netflix, it is tantamount to being disloyal to the company if you fail to speak up when you disagree with a colleague or have feedback that could be helpful. After all, you could help the business — but you are choosing not to.”
• Open the Books: Ignorance about how a business works is its biggest challenge. Just like players need to understand the game, employees must grasp how the company operates and makes money. Transparency about the business’s core helps every decision-maker align their actions with the company’s success.
• Leading by Context: Netflix replaces control with context. Granting employees freedom while expecting responsible decisions not only fuels innovation but also cultivates a culture of accountability and ownership, where individuals are empowered to make impactful choices.

📋 Recommendation to First-Time Founders

• Gift it to Your Team: Share this book with your leadership team. Engage in debates about the principles presented in the book and explore how these ideas can apply to your company’s culture.
• Promote Feedback Culture: Integrate regular feedback sessions into your routines. Initiate open discussions during your 1-on-1 meetings with a simple yet powerful question: “Do you have any feedback for me this week?”. Encourage colleagues to adhere to the 4A feedback guidelines: Aim to help, Make it Actionable, Appreciate it, Accept or discard.
• Be Patience with Yourself: Remember, Rome wasn’t built in a day, and neither is a thriving company culture. I’m sure that after reading this book you would feel a bit bad about not being able to implement all or many of the principles presented here as quickly as possible. However, be aware that Netflix’s journey was paved with years of hard work and the expertise of seasoned individuals. Take it one step at a time, allowing yourself and your company the necessary time and space to grow and embody these principles organically.

I really like the quote used to highlight “Leading by context”:

If you want to build a ship,
don’t drum up the people
to gather wood, divide the
work, and give orders.
Instead, teach them to yearn
for the vast and endless sea.

— The Little Prince, by Antoine de Saint-Exupéry

📚 Thanks for following me on this journey

This book concludes my series of “5 Books I Wish I’d read in my first years as a founder”. Thank you for following me on this journey and I hope they will help you in yours.

If you missed the first 4, here is a quick list:

1. “The Five Dysfunctions of a Team” by Patrick Lencioni on building teams
2. “Never Split the Difference” by Chris Voss on negotiation
3. “The Hard Thing About Hard Things” by Ben Horowitz on the struggles you face as an entrepreneur
4. “The 4 Disciplines of Execution” by Chris McChesney, Jim Huling, and Sean Covey on executing your strategy

Have you encountered any unconventional workplace practices that you found beneficial? Share your thoughts and experiences!

Let’s learn & grow together!