The Internal Netflix Management Policy

Jan 31, 2013 by

The radical management policies of Netflix as a reflection of the digital economy.  They’re a lot different than the those implemented by the companies Dad worked for during the Industrial Age.

For example:

1.  No vacation policy (take as much as you want, as long as you’re doing a great job and covering your responsibilities).

2.  “Outstanding” employees only- Doing an “adequate” job leads to your getting a “generous severance package,” so the company can hire an A-player in your place.

3.  “Freedom and responsibility” vs command-and-control: Good managers give their employees the right context in which to make decisions–and then the employees make the decisions. Poor employee behavior is caused by misunderstanding – “Managers: When one of your talented people does something dumb, don’t blame them. Instead, ask yourself what context you failed to set. High performance people will do better work if they understand the context.”

4.  No “brilliant jerks” – Star performers who also happen to be hell to work with are sent packing.

5.  Prioritize Discovery Over Job Security – “Many people love our culture, and stay a long time. They thrive on excellence and candor and change….Some people, however, value job security over performance, and don’t like our culture.”

6. Creativity is Most Important – ” In procedural work, the best are 2x better than the average. In creative/inventive work, the best are 10x.”

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