In 2009, Netflix revolutionized corporate culture with its famous 175-slide culture deck, a transparent manifesto that laid the foundation for the company’s vision of work, success, and collaboration.
The memo, developed by Reed Hastings and Patty McCord, was embraced across the tech sector and soon mirrored in different versions by other leading companies, including Zappos, Hubspot, Facebook, Spotify, Hootsuite, and others.
It was cited as a new framework for HR and coined the concept of “brilliant jerks,” and why they should be ferreted out of leadership roles.
When I first read the culture manifesto after its release I was struck by its clarity—particularly as a tool to both attract the right talent and repel the rest.
Over my career, I’ve worked with various companies, CEOs, and chief people officers who leaned on Netflix’s Culture Manifesto as a foundational reference when developing their own culture statements and organizational values. A lot has changed since its release in 2009, so I was curious to see how it would evolve.
Fast-forward to this week, and Netflix has released an updated version of this pivotal document, reaffirming its commitment to an innovative and dynamic workplace ethos.
This reboot, known as the Netflix Culture Memo, encapsulates the evolution of Netflix’s principles while maintaining the core values that have driven its success. Here are some of the key aspects of this refreshed manifesto and how they reflect the current business environment:
The Dream Team: Elevating Collaboration and Performance
Netflix’s emphasis on building a “Dream Team” remains central to its culture. The company likens itself to a professional sports team, where performance and collaboration are paramount. The memo states, “We aim only to have high performers at Netflix—people who are great at what they do, and even better at working together.”
The original manifesto was a public pushback on the notion that employers are families, a sentiment reinforced by waves of layoffs and changes to the employer-employee relationship over the past several years.
This approach has proven effective in fostering a high-performance environment. By continuously recruiting top talent and encouraging selflessness, judgment, candor, and resilience, Netflix ensures that its team members not only excel individually but also elevate each other.
People Over Process: Empowerment Through Freedom
One of the standout philosophies from the original culture deck that persists in the new memo is “People over Process.” Netflix believes that providing employees with the freedom to make decisions leads to better outcomes. The updated memo highlights, “We hire unusually responsible people who thrive on this openness and freedom.”
In practice, this means empowering employees to understand what it takes to get the job done and deliver on that promise. This is an important factor for job satisfaction, particularly in today’s hybrid work environment. Output over hours.
This principle of empowerment is supported by the company’s practice of “context not control.” By offering transparency and context so that employees understand what’s expected of them and how their performance will be assessed, Netflix allows its employees to take ownership of their work, fostering innovation and accountability. This approach has been instrumental in maintaining agility and creativity within the company.
Uncomfortably Exciting: Embracing Ambition and Risk
To entertain the world, Netflix recognizes the need to be bold and ambitious. The concept of being “Uncomfortably Exciting,” something new in the 2024 Netflix Culture Memo, encapsulates this mindset. The memo articulates, “Success requires us to be bold and ambitious, to think differently, experiment and adapt (often quickly).”
This emphasis on embracing risk and discomfort aligns with the company’s history of groundbreaking initiatives, from pioneering streaming services to producing original content.
This willingness to embrace risk and discomfort can also create internal conflict in this age of employee advocacy. In 2021, Netflix employees staged a walkout in response to Dave Chappelle’s special that took aim at the transgender community.
In a statement released soon after the walkout, Netflix said, “We value our trans colleagues and allies, and understand the deep hurt that’s been caused. We respect the decision of any employee who chooses to walk out, and recognize we have much more work to do both within Netflix and in our content.”
That tension between free speech, artistic freedom, and employee advocacy will likely continue to intersect in ways that may test Netflix’s culture in the coming years.
Great and Always Better: A Commitment to Continuous Improvement
Netflix’s dedication to continuous improvement is another enduring theme in the new memo. The company acknowledges, “We often say Netflix sucks today compared to where we can be tomorrow.” This sentiment underscores a relentless pursuit of excellence and a commitment to evolving with the times.
The Netflix Culture Memo encourages self-awareness and resilience, urging employees to strive for constant enhancement. This philosophy of perpetual betterment has been a cornerstone of Netflix’s success.
The intersection of candor and a relentless pursuit of performance isn’t for everyone—and that’s by design. By owning and proactively sharing their ways of working (selflessness, candor, being performance-driven), Netflix allows future employees to opt in or out based on self-alignment with a transparently stated working model and clear expectations.
Looking Forward: The Future of Netflix’s Culture
As the company continues to grow and evolve, Netflix’s culture memo serves as both a guide and an inspiration. The updated document reaffirms the company’s foundational principles while adapting to the contemporary business landscape.
By maintaining a focus on excellence, collaboration, empowerment, ambition, and continuous improvement, Netflix aims to remain a place where talented individuals can do “the best work of their lives.”
In today’s current business climate, where calls for meritocracy are being celebrated as novel working models, Netflix’s clarity and context on fostering an innovative and dynamic workplace culture show it continues to drive the conversation on culture.
What does all this mean for Netflix’s ability to attract and retain talent? How does this become more than a memo?
These principles must be embedded and reflected in daily operations to truly shape and steer Netflix’s future. Employees must clearly understand the alignment between cultural values and business/people practices (and rewards).
That’s where the partnership between strategic HR (or “Talent” in Netflix’s case) and business operations come into play. Manifestos without actions are words—empty without impact.
Companies can take a cue from Netflix and own who they are—and who they’re not—publicly. Let potential employees decide if you’re right for them as much as you’re deciding if they’re right for you. The most successful companies will be the ones that aren’t for everyone.
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