No Rules Rules
I finished a great book this week: No Rules Rules: Netflix and the Culture of Reinvention
It chronicles the culture of Netflix, which has become a towering behemoth. Hard to believe it was a simple DVD-by-mail company only a couple of decades ago.
It was fascinating to read how the founder, Reed Hastings, built an environment of freedom & responsibility. Their strategy? Hire great people, give them lots of freedom, expect excellent results, and encourage everyone to speak honestly - even to their bosses!
Netflix upends the normal top-down rules of management. For example, leaders regularly let junior employees cut $1M checks if they believe in a project/show/outcome - without approval!
Some of the interesting tidbits that stood out for me —
Keeper test - Managers regularly ask: If this employee told me they were leaving, would I fight hard to keep them? A simple bar to keep talent density high: Netflix’s philosophy is that adequate performance gets a generous severance package.
Lead with context, not control. The culture leans on this idea that you know your space best, not the boss. So the leader's role is to set the north star (context), not mandate or prescribe the actual work (control). When you hire great people, set direction and get out of their way.
Play as a jazz, not a symphony. Given its culture of talent and candor, Netflix associates itself with a jazz ensemble: no sheet music, no exact plays, just a feel built on extremely talented players. In a symphony, one conductor manages the orchestra directly — but it's rigid with no room to improvise.
A good thought exercise for leaders in companies that manage with traditional ways. Are there ways to throw out certain rules?