Netflix and the Rise of No-Rules Hypercultures

Get ready for 2021, where the rate of cultural change will be matched only by the speed at which organizations want to get things done.

As far as the global workforce is concerned, 2021 will be about building new roads to unfamiliar places versus sitting still, establishing kingdoms, and fortifying the corporate battlements.

But at What Price?

This compelling shift comes from a major cultural trend that signifies the transformation of the modern workforce into a hyper, performance-driven environment.

In their recent book, “Changing Organizational Culture,” Alvesson and Sveningsson address our changing times, noting:

“In a turbulent and changing world, organizational culture is often seen as central for sustained competitiveness. Organizations are faced with increased demands for change but these are often so challenging that they meet heavy resistance and fizzle out. The new “Hyperculture” encourages the development of a reflexive approach to organizational change, while providing tactics for managing such rapid transformation.”

In the entrepreneurial. entertainment and high-tech spaces, where cultural flux is the norm and change is constant, the expectation for hyper-performance and immediate results is not such a new thing. But, for the rest of the global workforce, especially in transportation, finance, healthcare and other more traditional institutions, these changes are monumental.

The days of nepotism, kingdom-building, and turf war tactics are waning, at least at the corporate levels.

Former executives at Netflix, Reed Hastings and Erin Meyer, recently penned a book, “No Rules Rules: Netflix and the Culture of Reinvention,” where the corporate ethos states:

“We are a team. Not a family. If we are going to be a championship team, then we want the best performer in every possible position. Like any team competing at the highest level, we form deep relationships and care about each other… If you’ve got high-performing employees, leading with context is best. To encourage original thinking, don’t tell your employees what to do and make them check boxes. Give them the context to dream big, the inspiration to think differently, and the space to make mistakes along the way. In other words, lead with context.”

Netflix’s employee literature points out that like all great companies, they strive to hire the best while valuing integrity, excellence, respect, inclusion, and collaboration. What they say is special about Netflix is their Hyperculture philosophy to:

1. Encourage independent decision-making by employees

2. Share information openly, broadly, and deliberately

3. Be extraordinarily candid with each other

4. Keep only our highly effective people

5. Avoid rules

You can see Netflix’s full revolutionary approach to culture here: https://jobs.netflix.com/culture

These types of cultural attributes are very powerful for creating accelerated, high-functioning teams focused on rapid change, growth, and transformation. Netflix also notes that it pays a very generous, 4-month severance package for those that don’t meet their high-performance, meaningful-results expectations.

Hyperculture tactics are meant to drive immediate performance and propel companies rapidly into the future. There is no room for sedentary thinking or slow-growth management. These strategies are effective, but cut both ways. For the benefits of investing in top talent and rapid team development include agility and quick results.

But the ability to turn on a dime comes at a price when looking at long-term growth and the development of a sustainable corporate infrastructure. This is why these transformational methods were previously reserved for high flux industries like tech and entertainment.

Moving into 2021, COVID has created an environment where new industries could benefit from this rapid model, leap-frogging their competition and tapping into pent-up demand in the marketplace. Of course, where there are great rewards, there are also great risks.

If you think of this shift in terms of professional sports teams, it makes a lot of sense. In competitive sports, the mantra is to win now — build a top team of shifting players, knowing that no one will stay forever. Teammates know it’s not about moving up in the organization, it’s all about playing a role, performing and winning.

This is an agile model for quick success. But the downside is that you are front-loading a lot of your capital, banking on short-term gains. The risk is that if you fail, you hamper any long-term goals and objectives, setting your team (or business) back further than you were when you started.

So, what does this mean for your career?

From an employee standpoint, the risks and rewards are just as great. 2021 will be a time to rapidly advance your career, while being held accountable for high performance and meaningful results. Those that succeed will move up, while those that don’t will be moved out (see Netflix’s generous severance package above).

For those working in these Hyperculture environments, they will have to bring their “A” game every day, and find innovative ways to help move their business forward. For those that are looking for more stability and security, they may have to wait for the dust to settle and the new corporate leaders to rise and guide them.

Regardless of which side of the fence you fall on, it’s clear that 2021 will be a year of hyper change. So, get ready, as it’s sure to be a wild ride for everyone.