
No Rules Rules: Netflix and the Culture of Reinvention

With my next company, Netflix, I hoped to promote flexibility, employee freedom, and innovation, instead of error prevention and rule adherence.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
If you limit their choices by making them check boxes and ask for permission, you won’t just frustrate your people, you’ll lose out on the speed and flexibility that comes from a low-rule environment.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
High performers naturally want to succeed and will devote all resources toward doing so whether they have a bonus hanging in front of their nose or not.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
When you try to spin them, they see it, and it makes you look like a fraud. Speak plainly, without trying to make bad situations seem good, and your employees will learn you tell the truth.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
With a climate of candor, the boss is no longer the primary individual to correct an employee’s undesirable behavior. When the entire community speaks openly about which individual behaviors advance the company, and which don’t, the boss doesn’t have to get so involved in overseeing an employee’s work.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
We hadn’t hired any new talent or raised anyone’s salaries, but day-by-day candor was increasing talent density in the office.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
Generally, I believed that if the dilemma is linked to an incident at work, everyone should be informed. But if the dilemma is linked to an employee’s personal situation, it’s up to that person to share details if he chooses.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
If you build an organization made up of high performers, you can eliminate most controls. The denser the talent, the greater the freedom you can offer.
Reed Hastings • No Rules Rules: Netflix and the Culture of Reinvention
“Brian, the day you find yourself sitting on your feedback because you’re worried you’ll be unpopular is the day you’ll need to leave Netflix. We hire you for your opinions. Every person in that room is responsible for telling me frankly what they think.”