A radical culture of unabashed, no holds barred feedback, a no time off or vacation policy, an unrelenting spirit to preserve and hold on to stunning performers, few questions asked, and to top it all the Keeper Test, where the Managers have the powers to disengage with their mediocre team members with a lucrative severance package. Thus generating a team which is just high and high on performance with very few controls.
This is a culture of Freedom and Responsibility called the ‘ F & R ‘ , which as per Reed Hastings, the CEO and co- founder of Netflix ( the pioneers of the subscription based OTT streaming service in the world), is the corner stone of the success Netflix has achieved worldwide. However, the tap root of this culture as per Hastings have been three debatable ideas.
1. Valuing People over Processes
2. Emphasising Innovation over Efficiency
3. Having very few controls
Having worked in a process driven industry for more than two decades, I have my views on the three debatable ideas.
People, Processes, Innovation and Efficiency
In industries which are highly process driven, the system has to work irrespective of the people running the system. People may fail, but the system survives. The process drives the people and not vice versa and it so happens that a robust system takes care of even mediocre employees. You don’t need stellar performers here. You only need people who follow check lists day in day out. In such an environment there is a tendency to value the process more than the people. However in my opinion, be it a process driven industry or otherwise, nothing can be more valuable than the people. Investing in them and striving continuously in making them better will eventually strengthen the systems . Anyways the process or the system has been developed by people only.
In any working environment Innovation and Efficiency can never be pitted against each other. A highly innovative environment may not necessarily stifle efficiency and conversely also efficiency may not prohibit innovation. Innovation and efficiency go hand in hand. An innovative idea on an assembly line may increase efficiency. There have been instances that innovative ideas have come from lower rung workers which have been revolutionary. The Organisation has to create an environment for innovation. An environment where ideas flourish and feedback is taken seriously and respected.
The matter of controls is tricky. How much control to be exercised and how much to let go is always going to be a difficult decision. In my opinion, if you back people, if you wish to create an environment which thrives on performance and excellence, then controls have to be reduced, whatever may be the Industry. The potential of a human brain is limitless and cannot be bound by controls. This will eventually bring much more responsibility and here I am in agreement with the F & R policy of Netflix.
I have always been for people and innovation….let freedom of the mind…thrive.
Ref : Reed Hastings’ book ‘ No Rules Rules : Netflix and the Culture of Reinvention ‘ , released by Penguin Press.
Very impressive 👏
Thank you 👍