In 2009, Netflix revolutionized company tradition with its well-known 175-slide culture deck, a clear manifesto that laid the muse for the corporate’s imaginative and prescient of labor, success, and collaboration.
The memo, developed by Reed Hastings and Patty McCord, was embraced throughout the tech sector and shortly mirrored in several variations by different main firms, together with Zappos, Hubspot, Fb, Spotify, Hootsuite, and others.
It was cited as a new framework for HR and coined the idea of “brilliant jerks,” and why they need to be ferreted out of management roles.
Once I first learn the tradition manifesto after its launch I used to be struck by its readability—notably as a device to each attract the right talent and repel the rest.
Over my profession, I’ve labored with varied firms, CEOs, and chief individuals officers who leaned on Netflix’s Tradition Manifesto as a foundational reference when creating their very own tradition statements and organizational values. So much has modified since its launch in 2009, so I used to be curious to see how it might evolve.
Quick-forward to this week, and Netflix has released an up to date model of this pivotal doc, reaffirming its dedication to an progressive and dynamic office ethos.
This reboot, generally known as the Netflix Tradition Memo, encapsulates the evolution of Netflix’s rules whereas sustaining the core values which have pushed its success. Listed here are among the key elements of this refreshed manifesto and the way they mirror the present enterprise surroundings:
The Dream Workforce: Elevating Collaboration and Efficiency
Netflix’s emphasis on constructing a “Dream Workforce” stays central to its tradition. The corporate likens itself to knowledgeable sports activities crew, the place efficiency and collaboration are paramount. The memo states, “We intention solely to have excessive performers at Netflix—people who find themselves nice at what they do, and even higher at working collectively.”
The unique manifesto was a public pushback on the notion that employers are households, a sentiment reinforced by waves of layoffs and adjustments to the employer-employee relationship over the previous a number of years.
This strategy has confirmed efficient in fostering a high-performance surroundings. By constantly recruiting prime expertise and inspiring selflessness, judgment, candor, and resilience, Netflix ensures that its crew members not solely excel individually but in addition elevate one another.
Individuals Over Course of: Empowerment By means of Freedom
One of many standout philosophies from the unique tradition deck that persists within the new memo is “Individuals over Course of.” Netflix believes that offering workers with the liberty to make selections results in higher outcomes. The up to date memo highlights, “We rent unusually accountable individuals who thrive on this openness and freedom.”
In apply, this implies empowering workers to know what it takes to get the job completed and ship on that promise. This is a vital issue for job satisfaction, notably in at this time’s hybrid work surroundings. Output over hours.
This precept of empowerment is supported by the corporate’s apply of “context not management.” By providing transparency and context in order that workers perceive what’s anticipated of them and the way their efficiency might be assessed, Netflix permits its workers to take possession of their work, fostering innovation and accountability. This strategy has been instrumental in maintaining agility and creativity inside the firm.
Uncomfortably Thrilling: Embracing Ambition and Danger
To entertain the world, Netflix acknowledges the have to be daring and bold. The idea of being “Uncomfortably Thrilling,” one thing new within the 2024 Netflix Tradition Memo, encapsulates this mindset. The memo articulates, “Success requires us to be daring and bold, to assume in another way, experiment and adapt (typically shortly).”
This emphasis on embracing danger and discomfort aligns with the corporate’s historical past of groundbreaking initiatives, from pioneering streaming companies to producing unique content material.
This willingness to embrace danger and discomfort also can create inner battle on this age of worker advocacy. In 2021, Netflix workers staged a walkout in response to Dave Chappelle’s particular that took intention on the transgender group.
In an announcement launched quickly after the walkout, Netflix stated, “We worth our trans colleagues and allies, and perceive the deep harm that’s been brought on. We respect the choice of any worker who chooses to stroll out, and acknowledge we now have rather more work to do each inside Netflix and in our content material.”
That rigidity between free speech, inventive freedom, and worker advocacy will doubtless proceed to intersect in ways in which could check Netflix’s tradition within the coming years.
Nice and All the time Higher: A Dedication to Steady Enchancment
Netflix’s dedication to steady enchancment is one other enduring theme within the new memo. The corporate acknowledges, “We frequently say Netflix sucks at this time in comparison with the place we will be tomorrow.” This sentiment underscores a relentless pursuit of excellence and a dedication to evolving with the occasions.
The Netflix Tradition Memo encourages self-awareness and resilience, urging workers to try for fixed enhancement. This philosophy of perpetual betterment has been a cornerstone of Netflix’s success.
The intersection of candor and a relentless pursuit of efficiency isn’t for everyone—and that’s by design. By proudly owning and proactively sharing their methods of working (selflessness, candor, being performance-driven), Netflix permits future workers to choose in or out primarily based on self-alignment with a transparently said working mannequin and clear expectations.
Wanting Ahead: The Way forward for Netflix’s Tradition
As the corporate continues to develop and evolve, Netflix’s tradition memo serves as each a information and an inspiration. The up to date doc reaffirms the corporate’s foundational rules whereas adapting to the modern enterprise panorama.
By sustaining a give attention to excellence, collaboration, empowerment, ambition, and steady enchancment, Netflix goals to stay a spot the place proficient people can do “the very best work of their lives.”
In at this time’s present enterprise local weather, the place requires meritocracy are being celebrated as novel working fashions, Netflix’s readability and context on fostering an progressive and dynamic office tradition present it continues to drive the dialog on tradition.
What does all this imply for Netflix’s potential to draw and retain expertise? How does this develop into greater than a memo?
These rules should be embedded and mirrored in day by day operations to actually form and steer Netflix’s future. Workers should clearly perceive the alignment between cultural values and enterprise/individuals practices (and rewards).
That’s the place the partnership between strategic HR (or “Expertise” in Netflix’s case) and enterprise operations come into play. Manifestos with out actions are phrases—empty with out affect.
Corporations can take a cue from Netflix and personal who they’re—and who they’re not—publicly. Let potential workers resolve when you’re proper for them as a lot as you’re deciding in the event that they’re best for you. Essentially the most profitable firms would be the ones that aren’t for everybody.