No Rules Rules – Reed Hastings
Netflix and the Culture of Reinvention
Netflix In 2000
In 2000, Netflix co-founders Reed Hastings and Marc Randolph tried to sell their company to Blockbuster for $50 million.
Of course, [Blockbuster] wasn’t interested. What did we possibly have to offer that they couldn’t do more effectively themselves?
Freedom To Explore
This means employees are given free rein to pursue new ideas that they see as in the best interest of the company.
This flexibility leads to new discoveries and allows Netflix to consistently reinvent itself in a rapidly changing world.
Netflix Culture Of Freedom
It’s important to note that Netflix’s culture of freedom is made up of three elements:
Talent Density
Talented people make each other more effective.
Increase Candor
Consistent feedback helps turn good employees into great ones.
Reducing controls
Highly successful and creative people can innovate better with more freedom.
Netflix Was A Game changer
But as the world changed, it became clear that Netflix had something different.
In 2010, Blockbuster declared bankruptcy because they’d been unable to transition from DVD rentals to streaming.
By 2019, Netflix had over 167 million subscribers in 190 countries, and its original film Roma won three Oscars. Why did it, and not Blockbuster, succeed?
Netflix Work Culture
Netflix’s culture promotes freedom and responsibility and helps employees innovate and adapt.
Netflix has what Hastings calls a “no rules rules” culture. They value “innovation over efficiency” and “people over process.”
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