No Rules Rules

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by Reed Hastings


  Chapter 3b: Remove Travel and Expense Approvals

  Pruckner, Gerald J., and Rupert Sausgruber. “Honesty on the Streets: A Field Study on Newspaper Purchasing.” Journal of the European Economic Association 11, no. 3 (2013): 661–79.

  Chapter 4: Pay Top of Personal Market

  Ariely, Dan. “What’s the Value of a Big Bonus?” Dan Ariely (blog). November 20, 2008. danariely.com/2008/11/20/what’s-the-value-of-a-big-bonus/ [inactive].

  Gates, Bill quoted in chapter 6 in, Thompson, Clive. Coders: Who They Are, What They Think and How They Are Changing Our World. New York: Picador, 2019.

  Kong, Cynthia. “Quitting Your Job.” Infographic. Robert Half (blog). July 9, 2018. www.roberthalf.com/blog/salaries-and-skills/quitting-your-job.

  Lawler, Moira. “When to Switch Jobs to Maximize Your Income.” Job Search Advice (blog). Monster. www.monster.com/career-advice/article/switch-jobs-earn-more-0517.

  Lucht, John. Rites of Passage at $100,000 to $1 Million+: Your Insider’s Strategic Guide to Executive Job-Changing and Faster Career Progress. New York: The Viceroy Press, 2014.

  Luthi, Ben. “Does Job Hopping Increase Your Long-Term Salary?” Chime. October 4, 2018. www.chimebank.com/2018/05/07/does-job-hopping-increase-your-long-term-salary.

  Sackman, H., et al. “Exploratory Experimental Studies Comparing Online and Offline Programing Performance.” Communications of the ACM 11, no. 1 (January 1968): 3–11. https://dl.acm.org/doi/10.1145/362851.362858.

  Shotter, James, Noonan, Laura, and Ben McLannahan. “Bonuses Don’t Make Bankers Work Harder, Says Deutsche’s John Cryan.” CNBC, November 25, 2015, www.cnbc.com/2015/11/25/deutsche-banks-john-cryan-says-bonuses-dont-make-bankers-work-harder-says.html.

  Chapter 5: Open the Books

  Aronson, Elliot, et al. “The Effect of a Pratfall on Increasing Interpersonal Attractiveness.” Psychonomic Science 4, no. 6 (1966): 227–28.

  Brown, Brené. Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent, and Lead. New York: Penguin Random House Audio Publishing Group, 2017.

  Bruk, A., Scholl, S. G., and Bless, H. “Beautiful Mess Effect: Self- other Differences in Evaluation of Showing Vulnerability. Journal of Personality and Social Psychology, 115 (2), 2018. https://doi.org/10.1037/pspa0000120.

  Jasen, Georgette. “Keeping Secrets: Finding the Link Between Trust and Well-Being.” Columbia News. February 19, 2018. https://news.columbia.edu/news/keeping-secrets-finding-link-between-trust-and-well-being.

  Mukund, A., and A. Neela Radhika. “SRC Holdings: The ‘Open Book’ Management Culture.” Curriculum Library for Employee Ownership (CLEO). Rutgers. January 2004. https://cleo.rutgers.edu/articles/src-holdings-the-open-book-management-culture/.

  Rosh, Lisa, and Lynn Offermann. “Be Yourself, but Carefully.” Harvard Business Review, August 18, 2014, hbr.org/2013/10/be-yourself-but-carefully.

  Slepian, Michael L., et al. “The Experience of Secrecy.” Journal of Personality and Social Psychology 113, no. 1 (2017): 1–33.

  Smith, Emily Esfahani. “Your Flaws Are Probably More Attractive Than You Think They Are.” The Atlantic. January 9, 2019. www.theatlantic.com/health/archive/2019/01/beautiful-mess-vulnerability/579892.

  Chapter 6: No Decision-Making Approvals Needed

  Daly, Helen. “Black Mirror Season 4: Viewers RAGE over ‘Creepy Marketing’ Stunt ‘Not Cool’.” Express.co.uk, December 31, 2017, www.express.co.uk/showbiz/tv-radio/898625/Black-Mirror-season-4-release-Netflix-Waldo-Turkish-Viewers-RAGE-creepy-marketing-stunt.

  Fingas, Jon. “Maybe Private ‘Black Mirror’ Messages Weren’t a Good Idea, Netflix.” Engadget, July, 18 2019, www.engadget.com/2017-12-29-maybe-private-black-mirror-messages-werent-a-good-idea-netfl.html.

  Gladwell, Malcolm. Outliers: Why Some People Succeed and Some Don’t. New York: Little Brown, 2008.

  “Not Seen on SNL: Parody of the Netflix/Qwikster Apology Video.” The Comic’s Comic, October 3, 2011, http://thecomicscomic.com/2011/10/03/not-seen-on-snl-parody-of-the-netflixqwikster-apology-video.

  Chapter 7: The Keeper Test

  Eichenwald, Kurt. “Microsoft’s Lost Decade.” Vanity Fair. July 24, 2012. www.vanityfair.com/news/business/2012/08/microsoft-lost-mojo-steve-ballmer.

  Kantor, Jodi, and David Streitfeld. “Inside Amazon: Wrestling Big Ideas in a Bruising Workplace.” The New York Times, August 15, 2015, www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html.

  Ramachandran, Shalini, and Joe Flint. “At Netflix, Radical Transparency and Blunt Firings Unsettle the Ranks.” The Wall Street Journal, October 25, 2018, www.wsj.com/articles/at-netflix-radical-transparency-and-blunt-firings-unsettle-the-ranks-1540497174.

  SHRM. “Benchmarking Service.” SHRM, December 2017, www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/2017-Human-Capital-Benchmarking.pdf.

  The Week Staff. “Netflix’s Culture of Fear.” The Week. November 3, 2018. www.theweek.com/articles/805123/netflixs-culture-fear.

  Chapter 8: A Circle of Feedback

  Milne, A. A., and Ernest H. Shepard. The House at Pooh Corner. New York: E.P. Dutton & Company, 2018.

  Chapter 9: Lead with Context, Not Control

  Fast Company Staff. “The World’s 50 Most Innovative Companies of 2018.” Fast Company. February 20, 2018. www.fastcompany.com/most-innovative-companies/2018.

  Saint-Exupéry, Antoine de, et al. The Wisdom of the Sands. Chicago: University of Chicago Press, 1979.

  “Vitality Curve.” Wikipedia, Wikimedia Foundation, November 5, 2019, en.wikipedia.org/wiki/Vitality_curve.

  Chapter 10: Bring It All to the World!

  Meyer, Erin. The Culture Map: Breaking through the Invisible Boundaries of Global Business. New York: PublicAffairs, 2014.

  To view the culture maps presented in this chapter as well as to create your own corporate culture maps, go to: www.erinmeyer.com/tools.

  ABCDEFGHIJKLMNOPQRSTUVWXYZ

  INDEX

  The page numbers in this index refer to the printed version of this book. The link provided will take you to the beginning of that print page. You may need to scroll forward from that location to find the corresponding reference on your e-reader.

  A

  Academy Awards, xvii, 165, 233

  “accept or discard” feedback guideline, 31, 33

  accidents and safety issues, management style and, 213–14, 269–71

  “actionable” feedback guideline, 30, 31, 33, 36, 193, 257

  “adapt” feedback guideline, 264

  “aim to assist” feedback guideline, 30, 31, 33, 36

  Airbnb, 136

  Alexa and Katie, 145

  alignment, 217–18, 231

  on a North Star, 218–21

  as tree, 221–31

  Allmovie.com, 87

  Amazon, 3, 81, 97, 136, 208, 232

  Prime, 146, 148

  amygdala, 21

  Anitta, 97

  annual performance reviews, 191

  Antioco, John, xi–xii

  AOL, xviii, 236

  Apple, xvii, 77, 97

  “appreciate” feedback guideline, 31, 33

  Arc de Triomphe, 268–69

  Ariely, Dan, 83

  Armstrong, Lance, 207, 232–33

  Aronson, Elliot, 124

  Aspen Institute, 107–8

  autonomy, 133

  see also decision-making; decision-making approvals, eliminating

  Avalos, Diego, 151

  B

  Ballad of Buster Scruggs, The, xviii

  Ballmer, Steve, 122–23

  Baptiste, Nigel, 64–66, 68

  Bazay, Dominique, 223, 224, 227–31

  Bde Maka Ska, 267, 268

  Becker, Justin, 35–36
>
  belonging cues, 24–25

  bet-taking analogy, 138–40, 153–57, 225–27

  Bird Box, 165

  Blacklist, The, 26

  Black Mirror, 157–59

  Blitstein, Ryan, 52

  Blockbuster, 3, 171, 236

  bankruptcy of, xii, xviii

  late fees of, 3

  Netflix’s offer to, xi–xii

  size of, xi, xii

  bonuses, 80–84

  Booz Allen Hamilton, 81

  brain:

  feedback and, 20, 21

  secrets and, 103

  Branson, Richard, xxiv, 50

  Brazil, 137, 150, 224–26, 243, 247, 249–51, 257, 264

  Brier, David, xxiv

  brilliant jerks, 34–36, 200

  Brown, Brené, 123

  Bruk, Anna, 123–24

  Bull Durham, 169

  Bullock, Sandra, 165

  bungee jumping, 194–95

  C

  Canada, 241

  candor, 18–21, 141, 175

  cultural differences around the world, 250-55, 260, 263–64

  culture of, 22–23

  dentist visits compared to, 190–91

  as disliked but needed, 20–22

  failure to speak up, 18, 27, 141

  increasing, xx, xxi, 1, 12–37, 72, 100–127, 188–205

  jerks and, 34–36

  misuse of, 29, 30, 36

  “only say about someone what you will say to their face,” 15, 189–90

  performance and, 17–20

  and readiness to release decision-making controls, 133–35

  saying what you really think with positive intent, 13–37

  see also feedback; transparency

  Carey, Chris, 181

  Caro, Manolo, 137

  Caruso, Rob, 113–14

  Casa De Papel, La, xviii

  celebrating wins, 140, 152

  Chapman, Jack, 86

  Chase, Chevy, 222

  cheating, 62–64

  Chelsea, 115–16

  children’s programming, 144–45, 226–31

  Choy, Josephine, 252–54, 257

  Christensen, Nathan, 51

  circle of feedback (360-degree assessments), 26–27, 189–205

  benefits of, 202–3

  discussion facilitated by, 194

  in Japan, 256

  live, 197–203

  stepping out of line during, 200–201

  tips for, 199–200

  written, names used in, 191–97

  Cobb, Melissa, 221–27, 231

  Coen, Joel and Ethan, xii

  Coherent Software, 101, 104

  collaboration, 170, 178

  Colombia, 251

  Comparably, xvii

  competitiveness, internal, 177–78

  compliments and praise, 21, 23

  computer software, 77–78, 216

  conformity, 141–42

  connecting the dots, xxiv

  first dot, 10–11

  second dot, 36

  third dot, 69

  fourth dot, 98

  fifth dot, 125

  sixth dot, 160

  seventh dot, 185

  eighth dot, 203–4

  ninth dot, 233

  last dot, 264–65

  consensus building, 149

  contagious behavior, 8–10

  context, see leading with context, not control

  contract signing, 149–51

  control, leadership by, 209

  ExxonMobil example of, 213–14

  leading with context versus, 209–12

  see also leading with context, not control

  controls, removing, xx, xxi, 1, 38–72, 128–61, 206–36

  decision-making approvals, 129–61

  bet-taking analogy in, 138–40, 153–57, 225–27

  Informed Captain model in, 140, 149–52, 216, 223, 224, 231, 248

  and picking the best people, 165–66

  readiness for, 133–35

  signing contracts, 149–51

  travel and expense approvals, 55–72

  cheating and, 62–64

  company’s best interest and, 58, 59, 61, 66, 68–69

  context and, 59–62

  Freedom and Responsibility ethos and, 60–62

  frugality and, 64–69

  vacation policy, xv, 39–53, 56, 69–70

  freedom and responsibility and, 52–53

  Hastings’ nightmares about, 40–41, 42, 44

  Hastings’ vacations, 44, 45, 47

  Japanese workers and, 46–47

  leaders’ modeling and, 42–47

  loss aversion and, xv–xvi

  and setting and reinforcing context to guide employee behavior, 48–49

  value added by, 50–52

  see also leading with context, not control

  corporate culture, xiii

  of Netflix, xiii, xxii, xxiii, 45

  Netflix Culture Deck, xiii–xvi, 172–73

  Costa, Omarson, 150–51

  coupling:

  alignment and, 218

  loose versus tight, 215–17

  Coyle, Daniel, 24

  creative positions, 78–79, 83–84

  criticism (negative feedback), 19–21, 23

  belonging cues and, 24

  brain and, 20, 21

  cultural differences around the world, 251, 261

  as disliked but needed, 20–22

  language used in, 251–52

  responding to, 24, 31

  upgraders and downgraders in, 251–52

  see also feedback

  Crook-Davies, Danielle, 19–20

  Crown, The, xvii

  Cryan, John, 82–83

  Cuarón, Alfonso, xii, 165

  cultural differences around the world, see global expansion and cultural differences

  Culture Code, The (Coyle), 24

  culture map, 242–50

  Culture Map, The (Meyer), xxii, 19, 242–50

  culture of freedom and responsibility, see Freedom and Responsibility

  D

  Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent, and Lead (Brown), 123

  Dark, xvii

  days off, 39–40

  see also vacation policy, removing

  decision-making:

  dispersed, 216–17

  innovation and, 130, 131, 135, 136

  and leading with context, 210, 216, 217

  to please the boss, 129–30, 133, 152–53

  pyramid structure for, 129, 221–23

  spreadsheet system and, 143–44

  talent density and, 131

  transparency and, 131

  decision-making approvals, eliminating, 129–61

  bet-taking analogy in, 138–40, 153–57, 225–27

  Informed Captain model in, 140, 149–52, 216, 223, 224, 231, 248

  and picking the best people, 165–66

  readiness for, 133–35

  signing contracts, 149–51

  Del Castillo, Kate, 138

  Del Deo, Adam, 207–9, 232–33

  Disney, 144, 221, 222, 226, 227

  dissent, farming for, 140–44, 158

  diversity, 241

  Dora the Explorer, 145

  Dormen, Yasemin, 157–59

  dot-com bubble, 4

  dots, see connecting the dots

  downloading, 146–48

  dream teams, 76

  DreamWorks, 145, 221, 226

  driver feedback, 22

 
Dutch, Netherlands, 242, 243, 246, 248, 251, 261–63

  DVDs, 3–4, 5, 129

  Qwikster and, 140–42

  shift to streaming from, xii, xvii, 140–41, 236

  E

  Edmondson, Amy, xv

  Eichenwald, Kurt, 176

  Eisner, Michael, 195

  elephants, penguins versus, 174

  Elite, xvii

  Emmy Awards, xvii, 145

  “Emperor’s New Clothes” syndrome, 23–29

  empowerment, 109, 133, 134

  see also decision-making; decision-making approvals, eliminating; Freedom and Responsibility

  Engadget, 158

  Enron, xiii

  entrepreneurship, 138

  error prevention, and management style, 213–14, 220, 269–71

  Escobar, Pablo, 132

  Estaff meetings, 218–19, 243

  Evening Standard, 25

  Eventbrite, 50

  expenses, see travel and expenses; travel and expense approvals, removing

  experimentation, 138

  Explorer project, 154–55, 157

  Express, 158

  ExxonMobil, 213–14

  F

  Facebook, xiii, 77, 97, 130, 137, 195

  failures, 140, 152–59

  asking what learning came from the project, 153, 155

  not making a big deal about, 153–55

  sunshining of, 153, 155–59

  family business metaphor, 166–68

  moving to sports team metaphor from, 168–70, 173–74

  farming for dissent, 140–44, 158

  Fast Company, xxiv, 213

  fear of losing one’s job, xv, 178–80, 183–84

  Fearless Organization, The (Edmondson), xv

  FedEx, 139

  feedback, 14–17, 139, 175, 190, 240

  annual performance reviews and, 191

  belonging cues and, 24

  brain’s response to, 20, 21

  circle of (360-degree assessments), 26–27, 189–205

  benefits of, 202–3

  discussion facilitated by, 194

  in Japan, 256

  live, 197–203

  stepping out of line during, 200–201

  tips for, 199–200

  written, names used in, 191–97

  cultural differences and, 250-57, 260, 261–64

  for drivers, 22

  “Emperor’s New Clothes” syndrome and, 23–29

  failure to speak up with, 18, 27, 141

  4A guidelines for, 29–36, 255, 264

  accept or discard, 31, 33

 

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