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(1/10) Lots of coverage on Netflix's culture.
The company has a cutthroat reputation and willingness to pay top dollar for superstar talent (AKA "100x engineers").
The reason why is explained in these 6 slides.
And it has to do with creativity and complexity.
The company has a cutthroat reputation and willingness to pay top dollar for superstar talent (AKA "100x engineers").
The reason why is explained in these 6 slides.
And it has to do with creativity and complexity.
(2/10) Netflix competes in media & tech; fields of knowledge work that require creativity.
A single high-performer is 10x better than an average performer.
A "procedural" field (e.g., manufacturing) may only see a 2x outperformance vs. avg (due to physical constraints).
A single high-performer is 10x better than an average performer.
A "procedural" field (e.g., manufacturing) may only see a 2x outperformance vs. avg (due to physical constraints).
(3/10) Most businesses get more complex as they grow.
To deal with this, companies introduce processes (and bureaucracy), which typically drive out creative talent.
To deal with this, companies introduce processes (and bureaucracy), which typically drive out creative talent.
(4/10) In "procedural" industries (e.g., manufacturing), good processes will often make up for a lack of "high-performing" creative talent.
(5/10) But during market shifts, process-driven companies are ill-prepared.
Netflix competes in fast-moving industries that require creativity, innovation and quick adaption.
Netflix competes in fast-moving industries that require creativity, innovation and quick adaption.
(6/10) Netflix's challenge was to scale its business and deal with complexity WITHOUT bringing in more processes.
To do that, Netflix needed to staff with lots of A+ creative talent.
It did so by offering:
• Top-of-market comp
• Tons of freedom
To do that, Netflix needed to staff with lots of A+ creative talent.
It did so by offering:
• Top-of-market comp
• Tons of freedom
(7/10) The flipside of the coin is that if an employee doesn't fit, they'll quickly be dropped...as famously highlighted in this slide:
(h/t @pnegahdar)
(h/t @pnegahdar)
(8/10) Netflix readily notes that his work environment isn't for everyone.
And it's faced its fair share of criticism.
And it's faced its fair share of criticism.
(9/10) Slides are from the famed "Netflix Culture" presentation (120+ slides).
Not sure how much still rings true, but strategy gels w/ a company able to navigate:
• transition from DVD to streaming
• creation of original IP
• 2k to 9k employees
• sub growth 20m --> 200m
Not sure how much still rings true, but strategy gels w/ a company able to navigate:
• transition from DVD to streaming
• creation of original IP
• 2k to 9k employees
• sub growth 20m --> 200m
(10/10) Link here: https://www.slideshare.net/reed2001/culture-1798664
(11/10) As noted by @sunglassesface, there is a very explicit slide where Netflix says "its not right for everyone".
Not a judgement call either way, but def worth including.
Not a judgement call either way, but def worth including.
(12/10) @TheEconomist flags 2 amazing stats speaking to Netflix's talent.
On average, each employee generates
• $2.6m of revenue (9x more than Disney)
• $26.5m in shareholder value (3x more than Google)
On average, each employee generates
• $2.6m of revenue (9x more than Disney)
• $26.5m in shareholder value (3x more than Google)
