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And, currently, it's a streaming juggernaut with more than 200 million active users or subscribers while earning approximately $950 million every month.
A major part of the company’s success can be credited to the management of the CEO and co-founder Reed Hastings, who dedicatedly focused the culture of the company on employee independence and empowerment.
In addition, the renowned phrase "Netflix and Chill” is also applied to the company’s attitude for the corporate formality. Most often, employees are encouraged to deal with certain matters on their own. But the great profile also comes with great duty for handling various tasks.
In his new book, “No Rules: Netflix and the Culture of Reinvention”, Reed Hastings has explained how he created Netflix's exceptional method of running and maintaining a business.
1. Give Employees a Manager Test
Hasting believes that “a team with a couple of solid performers boosts strength of everybody in the team. And this is not just enough.
Adequate performance gains a proper severance package. He encourages managers to find out employees he calls "attendants" – those who make a vital and noteworthy contribution to the growth of Netflix.
As per the Netflix Culture manual, managers should ask themselves this significant question: In any event, if any team member considers leaving for another firm, would the manager make a proper attempt to stop them from leaving? Well, if the employee is not worth saving for, they are generously and politely allowed to leave.
2. Be Clear
Thinking back to the '90s, Hastings started couples therapy to save his marriage. He said that the lesson he learned from those exercises he gained from that experience extended into how he encourages Netflix employees to communicate.
"I started asking everybody to state specifically what they truly thinks with positive intention," he writes. "For our employees, clarity has become the vital factor of the amount we trust them to perform mindfully. The trust we exhibit in them, creates a sense of duty, commitment, and obligation." And that clarity extends to the entire organization.
"At the point when you allow low-level employees to access the information that is commonly used by high-level authorities, they complete more all alone," he writes.
3. Whisper Wins and Yells Losses
Reed says it's significant for leaders to talk politely and be humble about their victories — or "let others notice it for you." Why? "Politeness and humility is one of the crucial factors in a leader as well as a role model," he writes.
Then again, when you commit an error, he encourages Netflix employees to leave it known and be clear. "That helps everybody to get some lesson from your mistakes."
4. Lead with Context
It's a business cliché to allow employees to "think out of the box." But how would you really encourage the original thoughts and ideas? Hastings believes that the best way to do this is to allow your employees context, not just follow the orders.
"Don't instruct your employees, instead let them think something extraordinary," he writes. "Give them the context to think beyond the practical limits, the inspiration to think diversely, and the place to make mistakes en route."
5. Operate Your Business as a Team, Not As a Family
Hastings said to leave all that, "We are family" talk to Sister Sledge, not to your organization culture. For instance, in a real family, a parent is probably not going to fire their kid or recruit somebody since they're the most ideal fit for that particular job, not a nearby connection.
It would be better to think about your company as a team attempting to win a title. "We need the best and skilled performer for every position," Hastings writes. "Like any group of individuals that competes for the top level, we structure deep connections and care about one another." Taking the family dynamic out of the condition makes it more professional and less personal.
"Try not to look to please your boss," he concludes. "Try to give a solid and profitable effort for the entire organization."
