Week 4, 2020
Netflix Powerful: Treat People Like Adults, Build Teams not Families, and Be a Great Place to Be From
Each week I share three ideas for how to make work better. This week, those ideas are inspired by Netflix’s approach to organization building.
Why am I writing about this? I want to share highlights from Patty McCord’s “Powerful — Building a Culture of Freedom and Responsibility.” McCord spent 14 years as Netflix’s Chief Talent Officer and she co-authored the company’s famed Culture Deck together with CEO Reed Hastings.
Let’s dig in.
1. Treat People Like Adults
“Truly understanding how the business works is the most valuable learning…It’s the rocket fuel of high performance and lifelong learning.”
In agile organizations like Netflix, it’s the people closest to the customer that make the most important decisions. That’s why everyone in the organization must understand how the business works. No one is exempt. And it’s the job of leadership to trust people with the information and authority they need to do a great job. Policies and procedures serve only to hamper speed and agility.
Build Teams, not Families
“Successful sports teams are…constantly scouting for new talent and culling their current roster. You’re building a team, not raising a family.”
People don’t need to be entertained at work. They don’t need career paths or counseling. Their careers are for them to manage! Organizations should focus on fulfilling its purpose. And they should hire the people they need to do just that. “The strongest motivator is having great team members to work with, people who trust one another to do great work and to challenge one another.”
Be a Great Place to Be From
“Use my algorithm when making personnel decisions: Is what this person loves to do…something we need someone to be great at?”
Things change, and so do people. And sometimes, people and organizations grow apart. That’s OK. The organization should not accommodate new career paths unless it makes strategic sense to do so. Fact is, managers should help employees “determine whether they may be a better fit at another firm.” Doing so benefits everyone involved. And it provides the basis for good goodbyes.
Beyond the Culture Deck, I didn’t know much about Netflix prior to reading this book. But I had heard the company was intensely results-oriented and purpose-built to attract high-achievers (read: purpose-built to shun everyone else). And in that sense, McCord’s book delivers. If you work at Netflix you are there to achieve. Period. And a read-through of the company’s Glassdoor reviews confirms as much.
But there’s another side to the story as well, one that’s more…. round around the edges. McCord clearly believes in strength-based organizations; about enabling people to do their best work. And she passionately reflects on the people and relationships she built during her time at the company: “I absolutely loved my fourteen years at Netflix, and I am proud of, and gratified by, all that we accomplished”.
Last but not least:
Three takeaways do not do the book justice. Here, I’m simply highlighting the three things I found to be especially thought-provoking. But there are plenty of lessons to share on everything from culture creation to compensation strategy. You should read the book, basically.
That’s all for this week.
Until next time, stay calm.
