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Slide 1: Reference Guide on our Freedom & Responsibility Culture These slides are meant for reading, Click to edit Master subtitle style rather than presenting 8/5/09 11
Slide 2: Freedom & Responsibility Applies to our Salaried Employees Our to edit Master subtitle style Clickhourly employees are important, but have more structured job roles 8/5/09 22
Slide 3: Culture: what gives Netflix the best chance of continuous success Click to edit Master subtitle style 8/5/09 33
Slide 4: Seven Aspects of our Culture • Values are what we Value High Performance Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 44 • • • • • • 8/5/09
Slide 5: Lots of companies have nice sounding value statements Click to edit Master subtitle style 8/5/09 55
Slide 6: Enron Had A Nice-Sounding Value Statement with 4 Values Enron headquarters • Integrity Communication Respect Excellence • • • Their 4 values were chiseled in marble in the main lobby, but had little to do with the real values of the organization 8/5/09 66
Slide 7: The real company values, as opposed to the nice-sounding values, Click to edit Master subtitle style 8/5/09 77
Slide 8: Real company values are the behaviors and skills that we particularly value Click to edit Master subtitle style 8/5/09 88
Slide 9: We Particularly Value in our Colleagues these edit Master subtitle style Click to Nine Behaviors and Skills… 8/5/09 99
Slide 10: You make wise decisions (people, technical, business, and creative) despite ambiguity Judgment You identify root causes, and get beyond treating symptoms You think strategically, and can articulate what you are, and are not, trying to do You smartly separate what must be done well now, and what can be improved later 8/5/09 1010
Slide 11: You listen well, instead of reacting fast, so you can better understand Communication You are concise and articulate in speech and writing You treat people with respect independent of their status or disagreement with you You maintain calm poise in stressful situations 8/5/09 1111
Slide 12: You accomplish amazing amounts of important work You demonstrate consistently strong performance so colleagues can rely upon you You focus on great results rather than on process You exhibit bias-to-action, and avoid analysis-paralysis Impact 8/5/09 1212
Slide 13: You learn rapidly and eagerly You seek to understand our strategy, market, subscribers, and suppliers You are broadly knowledgeable about business, technology and entertainment You contribute effectively outside of your specialty Curiosity 8/5/09 1313
Slide 14: You re-conceptualize issues to discover practical solutions to hard problems Innovation You challenge prevailing assumptions when warranted, and suggest better approaches You create new ideas that prove useful You keep us nimble by minimizing complexity and finding time to simplify 8/5/09 1414
Slide 15: You say what you think even if it is controversial You make tough decisions without excessive agonizing You take smart risks You question actions inconsistent with our values Courage 8/5/09 1515
Slide 16: You inspire others with your thirst for excellence You care intensely about Netflix' success You celebrate wins You are tenacious Passion 8/5/09 1616
Slide 17: You are known for candor and directness You are non-political when you disagree with others You only say things about fellow employees you will say to their face You are quick to admit mistakes Honesty 8/5/09 1717
Slide 18: You seek what is best for Netflix, rather than best for yourself or your group Selflessness You are ego-less when searching for the best ideas You make time to help colleagues You share information openly and proactively 8/5/09 1818
Slide 19: You make wise decisions (people, technical, business, and creative) despite ambiguity You identify root causes, and get beyond treating symptoms You think strategically, and can articulate what you are, and are not, trying to do You smartly separate what must be done well now, and what can be improved later Judgment You listen well, instead of reacting fast, so you can better understand You are concise and articulate in speech and writing You treat people with respect independent of their status or disagreement with you You maintain calm poise in stressful situations Communication You accomplish amazing amounts of important work You demonstrate consistently strong performance so colleagues can rely upon you You focus on great results rather than on process You exhibit bias-to-action, and avoid analysisparalysis Impact You learn rapidly and eagerly Curiosity You seek to understand our strategy, market, subscribers, and suppliers You are broadly knowledgeable about business, technology and entertainment You contribute effectively outside of your specialty You re-conceptualize issues to discover practical solutions to hard problems You challenge prevailing assumptions when warranted, and suggest better approaches You create new ideas that prove useful You keep us nimble by minimizing complexity and finding time to simplify Innovation You say what you think even if it is controversial You make tough decisions without excessive agonizing You take smart risks You question actions inconsistent with our values Courage You inspire others with your thirst for excellence You care intensely about Netflix' success You celebrate wins You are tenacious Passion You are known for candor and directness You are non-political when you disagree with others You only say things about fellow employees you will say to their face You are quick to admit mistakes Honesty You seek what is best for Netflix, rather than best for yourself or your group You are ego-less when searching for the best ideas You make time to help colleagues You share information openly and proactively Selflessness 8/5/09 We Want to Work with People Who Embody These Nine 1919
Slide 20: “You question actions inconsistent with our values” Part of the edit Master subtitle style Click to Courage value Akin to the honor code pledge: “I will not lie, nor cheat, nor steal, nor tolerate those who do” All of us are responsible for value consistency 8/5/09 2020
Slide 21: Values reinforced in hiring, in 360 reviews, at comp review, in edit Master and in promotions Click toexits, subtitle style 8/5/09 2121
Slide 22: Seven Aspects of our Culture • Values are what we Value High Performance Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 2222 • • • • • • 8/5/09
Slide 23: Imagine if every person at Netflix Click to edit Master subtitle style is someone you 8/5/09 2323
Slide 24: Great Workplace is Stunning Colleagues Click to edit Master subtitle style Great workplace is not day-care, espresso, health benefits, sushi lunches, nice offices, or big compensation, and we only do those that are efficient at attracting stunning colleagues 8/5/09 2424
Slide 25: Like every company, we try to hire well Click to edit Master subtitle style 8/5/09 2525
Slide 26: But, unlike many companies, we practice “adequate performance gets a generous Click to edit Master subtitle style 8/5/09 2626
Slide 27: We’re a team, not a family We’re Master subtitlepro sports team, Click to edit like a style 8/5/09 2727
Slide 28: The Keeper Test Managers Use: “Which of my people, if Click to edit Master subtitle style 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? 8/5/09 2828
Slide 29: The other people should get a generous severance now, so we can open a slot to try to find a star for that role The Keeper Test Managers Use: “Which of my people, if Click to edit Master subtitle style 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? 8/5/09 2929
Slide 30: Honesty Always To avoid surprises, subtitle style Click to edit Masteryou should periodically ask your manager: “If I told you I were leaving, how hard would you work to change my mind to stay at Netflix?” 8/5/09 3030
Slide 31: Isn’t Loyalty Good? What About Hard Workers? WhatMaster subtitle style Click to edit about Brilliant Jerks? 8/5/09 3131
Slide 32: Loyalty is Good • Loyalty is good as a stabilizer People who have been stars for us, and hit a bad patch, get a near term pass because we think they are likely to become stars for us again We want the same: if Netflix hits a temporary bad patch, we want people to stick with us But unlimited loyalty to a shrinking firm, or to 3232 • • • 8/5/09
Slide 33: Hard Work – Not Directly Relevant • It’s about effectiveness – not effort – even though effectiveness is harder to assess than effort We don’t measure people by how many evenings or weekends they are in their cube We do try to measure people by how much, how quickly and how well they get work done – especially under deadline 3333 • • 8/5/09
Slide 34: Brilliant Jerks • Some companies tolerate them For us, the cost to teamwork is too high Diverse styles are fine – as long as person embodies the 9 values • • 8/5/09 3434
Slide 35: Why are we so manic on high performance? In proceduralMasterthe best are 2x Click to edit work, subtitle style better than the average. In creative work, the best are 10x better than the average, so huge premium on creating effective teams of the best 8/5/09 3535
Slide 36: Why are we so manic on high performance? Great Workplace is Click to edit Master subtitle style Stunning Colleagues 8/5/09 3636
Slide 37: Seven Aspects of our Culture • Values are what we Value High Performance Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 3737 • • • • • • 8/5/09
Slide 38: The Rare Responsible Person • Self motivating Self aware Self disciplined Self improving Acts like a leader Doesn’t wait to be told what to do Never feels “that’s not my job” 3838 • • • • • • 8/5/09
Slide 39: Responsible People Thrive on Freedom, andedit MasterWorthy of Freedom Click to are subtitle style 8/5/09 3939
Slide 40: Our model is to increase employee freedom as we grow, rather than limit it, to continue Click to edit Master subtitle style 8/5/09 4040
Slide 41: Most Companies Curtail Freedom as they get Bigger Bigger Employee Freedom 8/5/09 4141
Slide 42: Most Companies Curtail Freedom As They Grow to Avoid Errors Click to edit Master subtitle style 8/5/09 4242
Slide 43: Desire for Bigger Positive Impact Creates Growth Growth 8/5/09 4343
Slide 44: Growth Increases Complexity Complexity 8/5/09 4444
Slide 45: Growth Shrinks Talent Density in Most Firms Complexity % High Performance Employees 8/5/09 4545
Slide 46: Chaos Emerges Chaos and errors spikes here – business has become too complex to run informally with this talent level Complexity % High Performance Employees 8/5/09 4646
Slide 47: Process Emerges to Stop the Chaos Procedures No one loves process, but feels good compared to the pain of chaos 8/5/09 4747
Slide 48: Process-focus Drives More Talent Out % High Performance Employees 8/5/09 4848
Slide 49: Strong Near-Term Outcome • A highly-successful process-driven company – With leading share in its market Minimal thinking required Few mistakes made – very efficient Few curious innovator-mavericks remain Very optimized processes for its existing market – – – – 8/5/09 4949
Slide 50: Then the Market Shifts… • Market shifts due to new technology or new competitors or new business models Company is unable to adapt quickly, because the employees are extremely good at following the existing processes, and process adherence is the value system Company generally grinds painfully into irrelevance, due to inability to respond to the market shift 5050 • • 8/5/09
Slide 51: Seems Like Three Bad Options 1. 2. 3. Stay creative by staying small Try to avoid rules as you grow, suffer chaos Use process as you grow to drive efficient execution of current model, but cripple creativity, innovation, flexibility, and ability to thrive when market inevitably shifts 8/5/09 5151
Slide 52: A Fourth Option • Avoid Chaos as you grow with Ever More High Performance People – not with Rules Then you can continue to run informally with self-discipline and avoid chaos The run informally part is what enables and attracts creativity • • 8/5/09 5252
Slide 53: The Key: Increase Talent Density faster than Complexity Grows m rfor Pe E nce a m e oye pl s High % it omplex sC Busines y 8/5/09 5353
Slide 54: Increase Talent Density e oye pl s High % m rfor Pe • • E nce a m Top of market compensation Attract hi-value people through freedom to make impact Be demanding about high performance culture 5454 • 8/5/09
Slide 55: Minimize Complexity Growth • Few big products vs many small ones Eliminate distracting complexity (barnacles) Value simplicity it omplex sC Busines y • • 8/5/09 5555
Slide 56: With the Right People, Instead of a Click to edit Master subtitle style 8/5/09 5656
Slide 57: Is Freedom Absolute? Are all edit & processes bad? Click torules Master subtitle style 8/5/09 5757
Slide 58: Freedom is not absolute. Click to edit Master subtitle style Like “free speech” 8/5/09 5858
Slide 59: Two Types of Necessary Rules 1. Prevent irrevocable disaster – E.g. Financials produced are wrong E.g. Hackers steal our customers’ credit card info – 2. Moral, ethical, legal issues – E.g. Dishonesty, harassment are intolerable 8/5/09 5959
Slide 60: Mostly, Though, Rapid Recovery is the Right Model • Just fix problems quickly – High performers make very few errors • We’re in a creative-inventive market, not a safety-critical market like medicine or nuclear power You may have heard preventing error is cheaper than fixing it – • Yes, in manufacturing or medicine, but… 6060 8/5/09
Slide 61: “Good” vs “Bad” Processes • “Good” processes help talented people get more done – Web site push every two weeks rather than random Spend within budget each quarter so don’t have to coordinate every spending decision across departments Regularly scheduled strategy and context meetings 6161 – – 8/5/09
Slide 62: Rule Creep • “Bad” processes tend to creep in – Preventing errors just sounds so good • We try to get rid of rules when we can, to reinforce the point 8/5/09 6262
Slide 63: Example: Netflix Vacation Policy and Tracking Until 2004 we had the standard model of N days per year Click to edit Master subtitle style 8/5/09 6363
Slide 64: Meanwhile… We’re all working online some nights and weekends, responding Click to edit Master subtitle style to emails at odd hours, and taking an afternoon now and then for personal time. 8/5/09 6464
Slide 65: An employee pointed out… We don’t track hours worked per Click to edit Master subtitle style day or per week, so why are we tracking days of vacation per year? 8/5/09 6565
Slide 66: We realized… We should Master what people Click to editfocus on subtitle style get done, not how many hours or days worked. Just as we don’t have an 9-5 day policy, we don’t need a vacation policy. 8/5/09 6666
Slide 67: Netflix Vacation Policy and Tracking Click to is no policysubtitle style “there edit Master or tracking” 8/5/09 6767
Slide 68: Netflix Vacation Policy and Tracking “there edit Master subtitle style Click tois no policy or tracking” “There is also no clothing policy at Netflix, but no one has come to work naked lately.” – Patty McCord, 2004 Lesson: you don’t need detailed policies for everything. 8/5/09 6868
Slide 69: Another Example of Freedom and Responsibility… Click to edit Master subtitle style 8/5/09 6969
Slide 70: Most companies have complex policies around what you can expense, how you travel, what Click to edit Master subtitle style 8/5/09 7070
Slide 71: Netflix Policies for Expensing, Entertainment, Giftsstyle Travel: & “Act to edit Master subtitle Click in Netflix’s Best Interests” (5 words long) 8/5/09 7171
Slide 72: 1. Expense only what you would otherwise not spend, and is worthwhile for work. Travel as you would if it were your own money. Disclose non-trivial vendor gifts. Take from Netflix only when it is inefficient to not take, and inconsequential. – “Act in Netflix’s Best Interests” Generally Means… 2. 3. 4. “taking” means, for example, printing personal 7272 8/5/09
Slide 73: Freedom and Responsibility • Many people say one can’t do it at scale But since going public in 2002, which is traditionally the beginning of the end for freedom, we’ve increased talent density and employee freedom substantially. • 8/5/09 7373
Slide 74: Summary of Freedom & Responsibility: Click to edit Master subtitle style 8/5/09 7474
Slide 75: Seven Aspects of our Culture • Values are what we Value High Performance Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 7575 • • • • • • 8/5/09
Slide 76: "If you want to build a ship, don't drum up the style Click to edit Master subtitle people to gather 8/5/09 *translation uses ‘people’ instead of7676 to ‘men’ modernize
Slide 77: The best managers figure out how to get great outcomes by setting Master subtitle style Click to edit the appropriate context, 8/5/09 7777
Slide 78: Context, not Control Provide the insight and understanding to enable sound decisions Context • Control • Strategy Metrics Assumptions Objectives Clearly-defined roles Knowledge of the stakes Transparency around decision-making Top-down decision-making Management approval Committees Planning and process valued more than results • • • • • • • • • 8/5/09 7878
Slide 79: Exceptions • Control can be important in emergency – No time to take long-term capacity-building view • Control can be important when someone is still learning their area – Takes time to pick up the necessary context • Control can be important when you have the wrong person in a role – Temporarily, no doubt 7979 8/5/09
Slide 80: Managers: When one of your talented people does something dumb, Click to edit Master subtitle style 8/5/09 8080
Slide 81: Managers: When you are tempted to “control” your people, ask yourself what Click to edit Master subtitle style Are you articulate and inspiring enough about goals and strategies? 8/5/09 8181
Slide 82: Good Context • • Link to company/functional goals Relative priority (how important/how time sensitive) – – Critical (needs to happen now), or… Nice to have (when you can get to it) No errors (credit cards handling, etc…), or… Pretty good / can correct errors (website), or… Rough (experimental) 8282 • Level of precision & refinement – – – 8/5/09
Slide 83: Why Managing Through Context? High to edit Master subtitle style Click performance people will do better work if they understand the context 8/5/09 8383
Slide 84: Investing in Context This to edit Master subtitle style Clickis why we do new employee college, and why we are so open internally about strategies and results 8/5/09 8484
Slide 85: Seven Aspects of our Culture • Values are what we Value High Performance Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 8585 • • • • • • 8/5/09
Slide 86: 1. 2. 3. Tightly-Coupled Monolith Independent Silos Three Models of Corporate Teamwork Highly Aligned, Loosely Coupled 8/5/09 8686
Slide 87: Tightly-Coupled Monolith • Senior management reviews and approves nearly all tactics Lots of x-departmental buy-in meetings Keeping other groups in agreement has equal precedence with pleasing customers Mavericks get exhausted trying to innovate Highly coordinated through centralization, but very slow, and slowness increases with size 8787 • • • • 8/5/09
Slide 88: Independent Silos • Each group executes on their objectives with little coordination Work that requires coordination suffers Alienation and suspicion between departments Only works well when areas are independent – • • • e.g. GE: aircraft engines and Universal Studios 8888 8/5/09
Slide 89: The Netflix Choice 1. 2. 3. Tightly-Coupled Monolith Independent Silos Highly Aligned, Loosely Coupled 8/5/09 8989
Slide 90: Highly Aligned, Loosely Coupled • Highly Aligned – Strategy and goals are clear, specific, broadly understood Team interactions are on strategy and goals rather than tactics Requires large investment in management time to be transparent and articulate and perceptive and open 9090 – – • Loosely Coupled 8/5/09
Slide 91: Highly-Aligned Loosely-Coupled teamwork effectiveness is dependent on Click to edit Master subtitle style 8/5/09 9191
Slide 92: Seven Aspects of our Culture • Values are what we Value High Performance Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 9292 • • • • • • 8/5/09
Slide 93: Pay Top of Market is Core to High Performance Culture One to edit Master subtitle style Click outstanding employee gets more done and costs less than two adequate employees We endeavor to have only outstanding employees 8/5/09 9393
Slide 94: 1. 2. 3. – What could person get elsewhere? Three Tests for Top of Market for a Person What would we pay for replacement? What would we pay to keep person? If they had a bigger offer elsewhere 8/5/09 Confidential 9494
Slide 95: Takes Great Judgment • Goal is to keep each employee at top of market for that person – Pay them more than anyone else likely would Pay them as much as a replacement would cost Pay them as much as we would pay to keep them if they had higher offer from elsewhere – – 8/5/09 9595
Slide 96: Titles Not Very Helpful • Lots of people have the title “Major League Pitcher” but they are not all equally effective Similarly, all people with the title “Senior Marketing Manager” or “Director of Engineering” are not equally effective So the art of compensation is answering the Three Tests for each employee 9696 • • 8/5/09
Slide 97: Annual Comp Review • Hiring is market-based at many firms, but at Netflix we also make the annual comp review market-based – Applies same lens as hiring • Essentially, rehiring each employee each year, for purposes of comp – 8/5/09 At annual comp review, manager has to answer the Three Tests for the personal market for each of their employees Confidential 9797
Slide 98: No Fixed Budgets • There are no centrally administered “raise pools” each year Instead, each manager aligns their people to market each year – the market will be different in different areas • 8/5/09 9898
Slide 99: Annual Comp Review • Some people will move up in comp very quickly because their value in the marketplace is moving up quickly, driven by increasing skills and/or great demand for their area Some people will move down or stay flat because their value in the marketplace has moved down or stayed flat – • Depends in part on inflation and economy 9999 8/5/09
Slide 100: • Whether Netflix is prospering or floundering, we pay at the top of the market – Compensation Not Dependent on Netflix Success i.e., sports teams with losing records still pay talent the market rate • Employees can choose how much they want to link their economic destiny to Netflix success or failure by deciding how much Netflix stock or stock options they want to own 100100 8/5/09
Slide 101: Bad Ideas • Manager sets pay at Nth percentile of titlelinked compensation data – The “Major League Pitcher” problem • Manager cares about internal parity instead of external market value – Fairness in comp is being true to the market Very unlikely to reflect the market 101101 • Manager gives everyone a 4% raise – 8/5/09
Slide 102: • Nearly all ex-employees will take a step down in comp for their next job We will rarely counter with higher comp when someone is voluntarily leaving because we have already moved comp to our max for that person Employees will feel they are getting paid well relative to their other options in the market 102102 When Top of Market Comp Done Right... • • 8/5/09
Slide 103: Versus Traditional Model • Traditional model is good prior year earns a raise, independent of market – Problem is employees can get materially under- or over-paid relative to the market, over time When materially under-paid, employees switch firms to take advantage of market-based pay on hiring When materially over-paid, employees are trapped in current firm 103103 – – 8/5/09
Slide 104: Employee Success • It’s pretty ingrained in our society that the size of one’s raise is the indicator of how well one did the prior year – but at Netflix there are other factors too – namely, the outside market In our model, employee success is big factor in comp because it influences market value – • In particular, how much we would pay to keep the person 104104 8/5/09
Slide 105: • It a healthy idea, not a traitorous idea, to understand what other firms would pay you, by interviewing and talking to peers at other companies – Good For Each Employee to Understand Their Market Value Talk with your manager about what you find Minor exception: interviewing with groups that directly compete with Netflix, because their motive is in part confidential information 105105 – 8/5/09
Slide 106: Efficiency • Big salary is the most efficient form of comp – Most motivating for any given expense level No bonuses – just include in salary – so much simpler No free stock options – just big salary Great health plan options, but high employee copay No philanthropic match 106106 – – – – 8/5/09
Slide 107: Optional Options • Employees can request to trade salary for stock options, if they wish The options are fully vested, granted monthly, and cost employees in pre-tax salary approximately half of what such an option would cost in the open market Options ultimately valuable only if Netflix stock climbs over the next 10 years 107107 • • 8/5/09
Slide 108: Seven Aspects of our Culture • High Performance Values are what we Value Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 108108 • • • • • • 8/5/09
Slide 109: In some time periods, in some groups, there will be lots of opportunity and growth at Some people, through both luck Click to edit Master subtitle styleand talent, will have extraordinary career growth 8/5/09 109109
Slide 110: • Very talented people usually get to move up, but only true for the very talented Some luck in terms of what positions open up and what the competition is Some people move to other teams to get the opportunity they want Great teams keep their best talent Some minor league players keep playing even 110110 Baseball Analogy: Minors to Majors • • • • 8/5/09
Slide 111: Netflix Doesn’t Have to be for Life • In some times, in some groups, there may not be enough growth opportunity for everyone In which case we should celebrate someone leaving for a bigger job that we didn’t have available to offer them If that is what the person prefers • • 8/5/09 111111
Slide 112: • Job has to be big enough – Two Necessary Conditions for Promotion We might have an incredible manager of something, but we don’t need a director of it because job isn’t big enough • If the incredible manager left, we would replace with manager, not with director • Person has to be a superstar in current role – Could get the next level job here if applying from outside and we knew their talents well 112112 8/5/09
Slide 113: Timing • If manager would promote employee to keep them if employee were thinking of leaving, manager should promote now, and not wait Both tests still have to be passed – • Job big enough Superstar in current role – 8/5/09 113113
Slide 114: Development • We develop people by giving them the opportunity to develop themselves, by surrounding them with stunning colleagues and giving them big challenges to work on – Mediocre colleagues or unchallenging work is what kills progress of a person’s skills 8/5/09 114114
Slide 115: Development • Formalized development is rarely effective, and we don’t try to do it – E.g. Courses, mentor assignment, rotation around a firm, multi-year career paths, etc. • High performance people are generally selfimproving through experience, observation, introspection, reading and discussion – 8/5/09 As long as they have stunning colleagues and big challenges 115115
Slide 116: Individuals should manage their own career paths, and not rely on a corporationstyleas individual responsibility their Like to edit Master subtitle for planning Clickretirement planning – safer 8/5/09 116116
Slide 117: Individual’s economic security is based upon their skills and We try edit to consistently style reputation Click tohard Master subtitle provide opportunity to grow both 8/5/09 117117
Slide 118: Seven Aspects of our Culture • Values are what we Value High Performance Freedom & Responsibility Context, not Control Highly Aligned, Loosely Coupled Pay Top of Market Promotions & Development 118118 • • • • • • 8/5/09
Slide 119: Why is culture important? What is our culture trying to support? Click to edit Master subtitle style 8/5/09 119119
Slide 120: Culture is How a Firm Operates What practices give Netflix style Click to edit Master subtitlethe best chance of continuous success for many generations of technology and people? 8/5/09 120120
Slide 121: Continuous Success = Continuous growth in revenue, profits & reputation Click to edit Master subtitle style 8/5/09 121121
Slide 122: Need a culture that supports rapid innovation and excellent Click to edit Master subtitle styleexecution 8/5/09 122122
Slide 123: Need a culture that supports rapid innovation and excellent Click to edit Master subtitle styleexecution Both are required for continuous growth There is tension between these two goals; between creativity and discipline 8/5/09 123123
Slide 124: Need a culture that supports effective teamwork of Click to edit Master subtitle style 8/5/09 124124
Slide 125: Need a culture that supports effective teamwork of Click to edit Master subtitle style High performance people and effective teamwork can be in tension also – stars have strong opinions 8/5/09 125125
Slide 126: Need a culture that avoids the rigidity,Master subtitle style mediocrity, and Click to edit politics, 8/5/09 126126
Slide 127: This slide deck is our current best thinking about maximizing our likelihood of continuous success Click to edit Master subtitle style 8/5/09 127127
Slide 128: Our culture is a work in progress Every year we try to refine our Click to edit Master subtitle style 8/5/09 128128