- Authors: Reed Hastings and Erin Meyer
- Original name: No Rules Rules. Netflix and the Culture of Reinvention
- Publisher: Mann, Ivanov and Ferber
- Number of pages: 384
- Age limit: 16+
- ISBN: 978-5-00169-145-7
- Year of publication: 2020
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A book about the approach and rules that helped shape Netflix’s flexible, innovative, and profitable business model. Netflix co-founder Reed Hastings talks about becoming one of the most innovative, creative and successful companies in the world.
It’s hard to imagine today’s culture without Netflix, the billion-dollar giant, the leader and revolutionary of the entertainment industry. The company has grown from a small DVD delivery service in large part due to its extraordinary corporate culture. Netflix’s culture is focused on freedom and responsibility and works with one rule: no rules. All this allows the company to remain flexible and keep pace with the era of innovation.
Netflix’s culture is unique. In it, a person stands above processes, and innovation is above efficiency. Employees are paid above the market, but can be fired (with a generous severance pay) for doing good work because they expect outstanding work. At any level, they are required to give and receive feedback, and in return they provide complete freedom: you do not need to approve your vacation and strictly account for travel expenses. Decisions are made on the basis of the good of the company, not the opinion of the boss.
How it works and what it looks like from the inside, tell Netflix co-founder Reed Hastings and co-author – INSEAD professor Erin Meyer, who conducted numerous interviews with former and current employees of the company. The book inspires and allows you to take a fresh look at the goals and means of modern organizations, personnel policy and much more.
From the author
In a famous inauguration speech at Stanford University, Steve Jobs said: “The dots cannot be connected in advance; they can only be connected retroactively. It remains only to believe and hope that someday in the future the points will form into a drawing. You need to trust at least something – your inner voice, fate, life, karma, whatever. This approach has never let me down and radically changed my life. “
Jobs is not alone. Sir Richard Branson is credited with the “Always connect the dots” mantra. And on the website of the Fast Company business magazine, an entertaining video has been posted, where design and business psychology guru David Brayer explains: the way we “connect the dots” in life determines our perception of reality, and, consequently, the decision-making mechanisms, and the conclusions that we do from our own experience.
The essence of these statements boils down to one thing: you need to think more often about the configuration of your points. In most organizations, they are always connected in the same way – as everyone else does and as they did before. Thus, the status quo is preserved. But one fine day a new person comes and connects the dots in a different way, which is why the whole picture of the world changes.
This explains the Netflix phenomenon. Despite the sad history of Pure Software, Reed had no intention of building a company with a unique ecosystem from the very beginning. He was just seeking more administrative flexibility. But then there were events and shifts that prompted him to a fundamentally new configuration of corporate culture. Gradually, when all the elements came together into a single picture, he was able to understand – in hindsight – what properties of this culture determine the company’s success.
Throughout this book, we will gradually, chapter by chapter, connect the dots in the order we discovered them as Netflix grew. In addition, we will analyze what role this configuration plays in the current life of the company; what experience we have gained in the process of work; and how you can apply it to embed the principle of freedom and responsibility in your organization.