Netflix Values Explained

2014-01-07

I’ve previously linked to the Netflix values slideshow. It’s an interesting read if you haven’t already seen it.

Now, Patty McCord has posted a followup with more explanation of what led to the values, and the need to create them.

A very interesting read, with lots of insight as well.

http://hbr.org/2014/01/how-netflix-reinvented-hr

I really agree with the “only hire spectacular people. Having spectacular people work with less spectacular only frustrates the spectacular people as they often end up spending time cleaning up messes”.

Another point that struck a chord was “if someone isn’t performing spectacularly anymore, provide them with a good severance, and get rid of them”.

Yes, it costs money, but if they aren’t performing, how much does that cost? Especially if you start a PIP process. All it’s about is CYA and reducing the risk of a lawsuit, all the while wasting the time of your employees, and reducing their morale. Just cut your losses and have it done so you can focus on finding a truly spectacular person.

I also like the “hire, reward and tolerate only fully formed adults”. If you have to put in a lot of rules because people aren’t responsible, then perhaps the problem is the people. Rather than putting rules in place, consider explaining to people that they are expected to keep the company’s best interests in mind, and also to think of the money as their own. Would you spend this if it was your own money? Is their a less expensive method of achieving the same goals, or is this approach the best?


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