Startup Culture (Netflix redux)

So many people still think culture is for people with too much time on their hands. Everyone is so focused on getting shit done that it’s understandably hard to pause and be deliberate about designing a culture that’s unique to you.

Culture’s been devalued by folks who publish grand statements on their walls but don’t live by them (Goldman Sachs’ number one principle? “Our clients always come first”. Hum). It’s often reduced down to hollowed-out tweetable quotes (“delight your customer !” or “align the organisation around the mission!”) or culture consultants recipe (mission / vision anyone ?) that will often make your skin crawl. It’s somewhat intangible (as shared by Brad Feld put it, “you can’t motivate people, you can only create a context in which people are motivated”).

But culture will creep up on you if you ignore it. You will have a unique culture whether you’re aware of it or not, so you might as well turn it into a real advantage. It’s an incredibly powerful ally if you harness it well. As Peter Drucker once said, “culture eats strategy for breakfast”.

Way back in 2009, Reed Hastings and Patty McCord outlined the elements of culture that all team members could actually live and breathe at Netflix, and it’s still so on point today that I thought I would re-share them with you raw.

Before we do, I want to leave you with a few thoughts

• Doing the right thing by your customer and employees is not always congruent with short term profit or revenue maximization goals — I encourage you to think of culture in the context of long-term sustainability.
• Culture does not imply soft. Netflix modelled itself somewhat on a pro sports team. Great culture does imply respect though. Read this great NPR interview about firings at Netflix.
• Your company is a living organism. Culture is not a constant. It’s hard to project it when you grow large or (particularly) when you go international. You have to be deliberate about protecting what’s unique and strong about your company as you scale, so that added structure doesn’t kill what made you unique. You also have to watch the us versus them mentality (“oh it was so different in the early days” mythology) as you grow your team.

On to the core values of Netflix:

Judgement

• You make wise decisions (people, technical, business, and creative) 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 smartly separate what must be done well now, and what can be improved later

Communication

• You listen well, instead of reacting fast, so you can better understand
• You are concise and articulate in speech and writing
• You treat people with respect independent of their status or disagreement with you
• You maintain calm poise in stressful situations

Impact

• You accomplish amazing amounts of important work
• You demonstrate consistently strong performance so colleagues can rely upon you
• You focus on great results rather than on process
• You exhibit bias-to-action, and avoid analysis-paralysis

Curiosity

• You learn rapidly and eagerly
• You seek to understand our strategy, market, customers, and suppliers
• You are broadly knowledgeable about business, technology and entertainment
• You contribute effectively outside of your specialty

Innovation

• You re-conceptualize issues to discover practical solutions to hard problems
• You challenge prevailing assumptions when warranted, and suggest better approaches
• You create new ideas that prove useful
• You keep us nimble by minimizing complexity and finding time to simplify

Courage

• You say what you think even if it is controversial
• You make tough decisions without agonizing
• You take smart risks
• You question actions inconsistent with our values

Passion

• You inspire others with your thirst for excellence
• You care intensely about Netflix‘s success
• You celebrate wins
• You are tenacious

Honesty

• You are known for candor and directness
• You are non-political when you disagree with others
• You only say things about fellow employees you will say to their face
• You are quick to admit mistakes

Selflessness

• You seek what is best for Netflix, rather than best for yourself or your group
• You are ego-less when searching for the best ideas
• You make time to help colleagues
• You share information openly and proactively

Words to live by.