'No rules rules' - Netflix's meteoric rise
Ian Mann chats to Bruce Whitfield about this week's business book - No Rules Rules: Netflix and the Culture of Reinvention by Erin Meyer and Reed Hastings
In the last 17 years since Netflix went public its share price has risen from $1 to $350Ian Mann, MD at Gateways Business Consultants and The Money Show book reviewer
If that isn't impressive enough, there's a survey they do in the United States about the happiness of your employees...45,000 large US companies joined that survey and Netflix was rated No.2.Ian Mann, MD at Gateways Business Consultants and The Money Show book reviewer
What they do is quite spectacular and it's counterintuitive. What they have done is used the culture that they have to make them into a fantastic business.Ian Mann, MD at Gateways Business Consultants and The Money Show book reviewer
Mann says he never recommends South African businesspeople bother to read books about great companies in order to learn anything...except for this one.
It is the only book I have ever read that I can say unequivocally is important...and for one reason. Its success is how they manage the business itself - the functional strategy.Ian Mann, MD at Gateways Business Consultants and The Money Show book reviewer
They believe in three things at Netflix:
1. talent density
2. real candour
3. remove controls
They don't believe in putting people on performance improvement programmes, as it requires monitoring.
If you are not an excellent performer they cut you loose with a generous severance package, he says.
They say we are not a family. In a family, you cover up for the weaknesses. He says we are not a family. We are a team. In a sports team, you drop the weakest people on the team and you are always training players. And the reason for that is you just want people to be the best. And that is their talent density, they are obsessed with that.Ian Mann, MD at Gateways Business Consultants and The Money Show book reviewer
Mann says the company insists on candour from all staff across the board.
It's not personal it is aimed at the project, it does not recognise rank, and it must be actionable.Ian Mann, MD at Gateways Business Consultants and The Money Show book reviewer
Remove controls means there are no restrictions - but the only rule is to act in the best interest of the company.
Mann says employees have to work out the right moves to get things done.
So, what happens if you fail?
There is only one rule if you fail. You have to share your mistakes with the team and explain why - and all learn from it, explains Mann.
Listen to Ian Mann's review of the book about this 'spectacular and counterintuitive business and its meteoric rise in the audio below:
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