How does a startup become a corporate behemoth with layers of policies, processes, and rules? It happens one mishap at a time if that event is seen as a mistake that is never to be made again.
In her book Powerful, Patty McCord lays out her account of how Netflix almost got an expense policy – but avoided that path and instead relied on a no-rules culture. A vital principle of the Netflix culture is to treat employees as adults. But not just any adults: powerful adults. This difference in mindset is critical to letting people achieve astonishing results.
Indeed, the premise that employees have power is the root from which the entire Netflix culture is derived.
As opposed to the empowerment of employees—an HR mantra that has been en vogue for a while now—Patty McCord takes the opposite stance:
As for empowerment, I simply hate that word… What I came to understand deeply and in a new way once I made my way into the scrappier start-up world is that people have power. A company’s job isn’t to empower people; it’s to remind people that they walk in the door with power and to create the conditions for them to exercise it. Do that, and you will be astonished by the great work they will do for you.
Avoiding Layers of Policies and Embracing No-Rules Culture
According to McCord, Netflix’s success can be largely attributed to its avoidance of layers of policies, processes, and rules. Instead, the company embraced a no-rules culture. This allowed employees to thrive in an environment of trust, autonomy, and responsibility. The book Powerful takes readers on a journey through Netflix’s unique approach to corporate culture, and provides insights on how other companies can adopt this model.
One crucial aspect of Netflix’s no-rules culture is transparency. Employees are encouraged to share information freely, leading to a more collaborative and informed workforce. McCord emphasizes the importance of open communication channels between employees, regardless of their position in the company hierarchy. This transparency can lead to better decision-making, as everyone is aware of the context and the goals of the organization.
- Encourage open communication channels between employees
- Foster a culture of sharing information freely
- Enable better decision-making by providing context and goals
Building Trust and Autonomy in the Workplace
To create a no-rules culture, a company must first establish trust among its employees. Netflix achieved this by giving employees a great deal of autonomy in their work. This trust empowers employees to take risks, make decisions, and learn from their mistakes. When employees feel trusted, they are more likely to be engaged, creative, and productive.
- Establish trust among employees
- Give employees autonomy in their work
- Empower employees to take risks, make decisions, and learn from mistakes
The Role of Feedback in a No-Rules Culture
Feedback is a critical component of Netflix’s culture. By providing both positive and constructive feedback, employees can continually grow and improve their performance. McCord suggests that frequent, honest feedback should be an integral part of any company’s culture, enabling employees to understand their strengths and areas for improvement.
- Provide frequent, honest feedback
- Create a culture that values feedback as a tool for growth
- Encourage employees to give and receive feedback openly
Aligning Employees with Company Goals
In a no-rules culture, it’s crucial to align employees with the company’s goals. Netflix achieves this by focusing on high performance and ensuring that each individual understands their role in contributing to the company’s success. McCord stresses the importance of setting clear expectations and objectives, and then allowing employees the autonomy to achieve them.
- Align employees with company goals
- Focus on high performance and individual contributions
- Set clear expectations and objectives for employees
Hiring and Retaining Top Talent
A no-rules culture can only be successful if a company hires and retains top talent. Netflix is known for its rigorous hiring process, which ensures that only the best candidates join the team. By offering competitive compensation and creating an environment where employees feel valued and trusted, Netflix is able to retain its top talent.
- Implement a rigorous hiring process to select top talent
- Offer competitive compensation and benefits
- Create an environment where employees feel valued and trusted
Learning from Netflix’s Success
Patty McCord’s book Powerful offers valuable lessons for companies looking to emulate Netflix’s no-rules culture. By creating an environment of trust, autonomy, and transparency, businesses can empower their employees to achieve astonishing results. Companies can learn from Netflix’s success by adopting some of the following practices:
- Foster a culture of transparency and open communication
- Build trust and autonomy in the workplace
- Encourage regular feedback as a tool for growth
- Align employees with company goals and objectives
- Hire and retain top talent by offering competitive compensation