Netflix is one of the most successful and innovative companies in the entertainment industry, with over 200 million subscribers worldwide. But what makes Netflix stand out from its competitors is not only its content but also its culture.
In 2009, Netflix published its culture deck online: 125 slides that outlined the company’s values, expected behaviors, and core philosophy. The document was drafted by Patty McCord, Netflix’s former Chief Talent Officer, and has been viewed almost 20 million times since then.
The culture deck has been praised by many business leaders and experts as a model for creating a high-performing culture that fosters freedom, responsibility, and excellence. In this blog post, we will highlight some of the key takeaways from Netflix’s culture deck that you can apply to your own organization.
1. Hire A Players
Netflix’s culture deck states that “the best thing you can do for employees—a perk better than foosball or free sushi— is hire only ‘A’ players to work alongside them.” Netflix believes that hiring top talent is crucial for achieving its ambitious goals and delivering great service to its customers.
To attract and retain A-players, Netflix offers generous compensation packages that include high salaries, stock options, and unlimited vacation time. Netflix also avoids micromanaging its employees and gives them autonomy to make decisions and solve problems.
However, Netflix also expects high performance from its employees and has a “keeper test” for managers: if one of your employees told you they were leaving for another company, how hard would you try to keep them? If you wouldn’t fight hard to keep them, then you should give them a generous severance package and let them go.
Netflix’s culture deck says that “adequate performance gets a generous severance package.” This means that Netflix does not tolerate mediocrity or complacency among its staff. Instead, it constantly looks for ways to improve its team by hiring new stars or developing existing ones.
2. Provide strong context
Netflix’s culture deck emphasizes that “context—not control—drives productivity.” This means that instead of telling employees what to do or how to do it, managers should provide them with clear goals, strategies, metrics, and feedback that help them understand their roles and expectations. Managers should also encourage employees to ask questions, share ideas and challenge assumptions.
Netflix’s culture deck says that “high-performance people will do better work if they understand the context.” This means that employees need to know why they are doing what they are doing, how it aligns with the company’s vision and mission, and what impact it has on customers and stakeholders.
By providing strong context, Netflix empowers its employees to make informed decisions, take smart risks and innovate faster. Netflix also avoids creating too many rules or processes that could stifle creativity or accountability.
3. Embrace candor
Netflix’s culture deck stresses that “you must be extraordinarily candid with each other.” This means that Netflix values honesty, transparency, and feedback among its employees. Netflix believes that candor helps create a culture of trust, learning, and improvement.
Netflix’s culture deck says that “feedback is a continuous part of how we communicate.” This means that employees are expected to give and receive constructive feedback regularly, not just during formal reviews or meetings. Feedback should be specific, actionable, and respectful.
Netflix’s culture deck also says that “we avoid rules.” This means that Netflix does not have a strict dress code, expense policy, or travel policy. Instead, it trusts its employees to use good judgment and act in the best interest of the company.
Netflix’s culture deck encourages employees to “act in Netflix’s best interest” by asking themselves questions like: What would I do if this were my company? What would I do if I owned Netflix stock? How would I know if I’m working hard enough?
By embracing candor, Netflix fosters a culture of openness and collaboration, where employees can speak their minds, share their opinions and learn from each other.
4. Celebrate diversity
Netflix’s culture deck states that “we are a global company.” This means that Netflix operates in over 190 countries and serves a diverse audience of millions of people with different tastes, preferences, and backgrounds.
To reflect this diversity, Netflix strives to create a culture that embraces inclusion, equity, and belonging. Netflix’s culture deck says that “we seek to understand our members around the world.” This means that Netflix invests in local content production, hires local talent, and adapts to local markets.
Netflix’s culture deck also says that “we value diversity of thought.” This means that Netflix welcomes different perspectives, experiences, and ideas from its employees. Netflix believes that diversity enriches its creativity, innovation, and problem-solving abilities.
By celebrating diversity, Netflix creates a culture that respects and celebrates its members, employees, and partners around the world.
5. Reward excellence
Netflix’s culture deck emphasizes that “we pay top of the market.” This means that Netflix compensates its employees generously and fairly based on their performance, contribution, and market value.
Netflix’s culture deck says that “we believe high-performance people should be able to handle more responsibility over time.” This means that Netflix promotes its employees based on their impact, not on their tenure or seniority.
Netflix’s culture deck also says that “adequate performance gets a generous severance package.” This means that Netflix does not tolerate mediocrity or complacency among its employees. Netflix expects its employees to deliver outstanding results, grow continuously and adapt to changing needs.
By rewarding excellence, Netflix creates a culture that attracts and retains the best talent in the industry.
6. Learn from mistakes
Netflix’s culture deck acknowledges that “we make some mistakes.” This means that Netflix recognizes that errors are inevitable in a fast-paced and complex environment.
Netflix’s culture deck says that “we don’t seek to please our boss.” This means that Netflix encourages its employees to be honest, transparent, and accountable for their actions.
Netflix’s culture deck also says that “we learn from failure.” This means that Netflix fosters a culture of experimentation, feedback, and improvement. Netflix does not punish its employees for making mistakes but rather supports them to learn from them and grow.
By learning from mistakes, Netflix creates a culture that promotes innovation, creativity, and resilience.
7. Seek feedback
Netflix’s culture deck states that “we are honest with each other.” This means that Netflix values candor, openness, and constructive criticism among its employees.
Netflix’s culture deck says that “we seek what is best for Netflix.” This means that Netflix encourages its employees to put aside their personal agendas and egos, and focus on what is best for the company and its members.
Netflix’s culture deck also says that “we are always learning.” This means that Netflix fosters a culture of curiosity, learning and growth. Netflix expects its employees to seek feedback regularly, learn from others and improve themselves.
The Netflix culture deck is a document that describes the values, principles, and practices of Netflix as a company. It was created by Patty McCord, Netflix’s former Chief Talent Officer, and Reed Hastings, Co-Founder and CEO. It has been viewed millions of times on the web and praised as one of the most important documents ever to come out of Silicon Valley1.
The main idea of the Netflix culture deck is to build a team of high performers who have freedom and responsibility, strong context provided by managers with limited top-down control, and a compensation/promotion system that rewards A-players efficiently2. Some of the key themes in the document are:
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Netflix is a successful and innovative entertainment company with over 200 million subscribers worldwide. However, what sets Netflix apart from its competitors is not just its content but also its culture.
In 2009, Netflix published its culture deck online: a 125-slide document that outlines the company’s values, expected behaviors, and core philosophy. The culture deck was drafted by Patty McCord, Netflix’s former Chief Talent Officer, and has been viewed almost 20 million times since its release.
The culture deck has been praised by many business leaders and experts as a model for creating a high-performing culture that fosters freedom, responsibility, and excellence. In this blog post, we will highlight some of the key takeaways from Netflix’s culture deck that you can apply to your own organization.
Hire A-Players According to Netflix’s culture deck, “the best thing you can do for employees–a perk better than foosball or free sushi–is hire only ‘A’ players to work alongside them.” Netflix believes that hiring top talent is crucial for achieving its ambitious goals and delivering great service to its customers.
To attract and retain A-players, Netflix offers generous compensation packages, including high salaries, stock options, and unlimited vacation time. Netflix also gives its employees autonomy to make decisions and solve problems, avoiding micromanagement.
However, Netflix expects high performance from its employees and has a “keeper test” for managers. If one of your employees told you they were leaving for another company, how hard would you try to keep them? If you wouldn’t fight hard to keep them, then you should give them a generous severance package and let them go.
Netflix’s culture deck says that “adequate performance gets a generous severance package.” This means that Netflix does not tolerate mediocrity or complacency among its staff. Instead, it constantly looks for ways to improve its team by hiring new stars or developing existing ones.
Provide strong context Netflix’s culture deck emphasizes that “context–not control–drives productivity.” Instead of telling employees what to do or how to do it, managers should provide clear goals, strategies, metrics, and feedback that help employees understand their roles and expectations. Managers should also encourage employees to ask questions, share ideas, and challenge assumptions.
Netflix’s culture deck says that “high-performance people will do better work if they understand the context.” Employees need to know why they are doing what they are doing, how it aligns with the company’s vision and mission, and what impact it has on customers and stakeholders.
By providing strong context, Netflix empowers its employees to make informed decisions, take smart risks, and innovate faster. Netflix also avoids creating too many rules or processes that could stifle creativity or accountability.
Embrace candor Netflix’s culture deck stresses that “you must be extraordinarily candid with each other.” Netflix values honesty, transparency, and feedback among its employees. Candor helps create a culture of trust, learning, and improvement.
Netflix’s culture deck says that “feedback is a continuous part of how we communicate.” Employees are expected to give and receive constructive feedback regularly, not just during formal reviews or meetings. Feedback should be specific, actionable, and respectful.
Netflix’s culture deck also says that “we avoid rules.” Netflix does not have a strict dress code, expense policy, or travel policy. Instead, it trusts its employees to use good judgment and act in the best interest of the company.
Netflix’s culture deck encourages employees to “act in Netflix’s best interest” by asking themselves questions like: What would I do if this were my company? What would I do if I owned Netflix stock?