Occasionally someone assembles a set of ideas that you wish you put together. The thoughts are crisp, relevant, and different. Well, that’s what the team at Netflix has done (the CEO Reed Hastings mainly). They have a 128 page slide deck that explains their salaried personnel strategy. And I have to say that its really good. They took a Blue Ocean approach and defined their own rules. I would call it blunt and fair. My only criticism is that I could see their internal work environment getting very competitive.
But this reminds me of a few years ago (2004) , the CEO of Raytheon, William Swanson, published a booklet called “Swanson’s Unwritten Rules of Management.” In it are 33 rules that are both straight forward and useful i.e. “If you are not criticized you might not be doing much.” Unfortunately for Swanson, he lifted these rules from an engineering book. I don’t anticipate that happening with this, just that it will create the same amount of buzz.
Here are some blurbs I pulled out (slide show below):
Seven Aspect to Our Culture:
- Values are What We Value
- High Performance
- Freedom and Responsibility
- Context, Not Control
- Highly Aligned, Loosely Coupled
- Pay Top of Market
- Promotions and Development
But unlike many companies, we practice “adequate performance gets a generous severance package.”
The Keeper Test Managers Use:
“Which of my people if they told me they were leaving in two months for a similar job at a peer company, would I fight hard to keep at Netflix“