No Rules Rules
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actionable, 30, 31, 33, 36, 193, 257
adding 5th A to (adapt), 264
aim to assist, 30, 31, 33, 36
appreciate, 31, 33
cultural differences and, 260
for giving feedback, 30
for receiving feedback, 31
frequency of, 18
Hastings and, 26–29
honesty in, 18; see also candor
Japanese culture and, 251–57
loop of, 22–23
Meyer and, 19, 32
negative (criticism), 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
positive, brain and, 21
responding to, 24, 31
and speaking and reading between the lines, 253
spreadsheet system for gathering, 143–44
survey on, 21–22
teaching employees how to give and receive, 29–32
from teammates, 199
when and where to give, 31–34
see also candor
Felps, Will, 8–9
firing, see letting people go
Fisher Phillips, 50
five-year plans, 219–20
Flint, Joe, 178
flexibility, and leading with context or control, 220, 221
Fogel, Bryan, 207–8, 233
4K ultra high definition televisions, 65–66
Fowler, Geoffrey, 65–66
Fox, 221
France, 240, 251
Paris, 268–69
Freedom and Responsibility (F&R), xx–xxi, 191, 236, 267, 268
expenses and, 60–62
first steps to, 1–72
Informed Captain model in, 140, 149–52, 216, 223, 224, 231, 248
next steps to, 73–161
techniques to reinforce, 163–236
vacations and, 52–53
weight of responsibility in, 150–52
Friedland, Jonathan, 196
Fuller House, 145
G
Game of Thrones, 131–32
Garden Grove, Calif., 22
Gates, Bill, 78
General Electric (GE), 177–78
Germany, 147–48, 250–51
Gizmodo, 178
Gladwell, Malcolm, 142
Glassdoor, xv, 50
global expansion and cultural differences, 237–65, 239–65
adjusting your style for, 257–61
Brazil, 137, 150, 224–26, 243, 247, 249–51, 257, 264
candor and, 250–55, 260, 263–64
culture map, 242–50
feedback and, 250–57, 260, 261–64
Google and, 240–41
Japan, 46–47, 183, 224, 225, 257, 261
in culture map, 243, 247, 248
feedback and criticism in, 251–57
Japanese language, 252–53
360 process and, 256
Netherlands, 242, 243, 246, 248, 251, 261–63
Schlumberger and, 240–41
Singapore, 243, 246, 248, 251, 257–59, 261, 264
trust and, 248, 249
Golden Globe Awards, xvii, 76
Goldman Sachs, 177
Golin, 50
Google, xvii, 77, 94–96, 98, 136
global expansion of, 240–41
gossip, 189
Guillermo, Rob, 207
H
Handler, Chelsea, 115–16
happiness, xvii
Harvard Business Review, xxii
Hastings, Mike, 87
Hastings, Reed:
childhood of, 10, 13
at Coherent Software, 101, 104
downloading issue and, 146–48
feedback and, 26–27
interview with, 173–80
in leadership tree, 224–25
marriage of, 13–15
Meyer contacted by, xxii–xxiii
Netflix cofounded by, xi, 3–4
in Netflix’s offer to Blockbuster, xi–xii
in Peace Corps, xxii, xxiii, 14, 101, 239–40
Pure Software company of, xviii–xix, xxiv, 3, 4, 6, 7, 13–14, 55, 64, 71, 101, 122, 123, 236
Qwikster and, 140–42
HBO, 113–14, 208
Hewlett-Packard (HP), 66–67
hierarchy of picking, 165–66
Hired, xvii
hiring:
hierarchy of picking and, 165–66
talent density and, see talent density
honesty, xvi, xxiii, 178
and spending company money, 58–59
see also candor; transparency
hours worked, 39
House of Cards, xvii, 65, 75, 171, 236
HubSpot, xvii, 50
Huffington Post, xxii
Hulu, 208, 232
humility, 123
Hunger Games, The, 176
Hunt, Neil, 41, 45, 94, 98, 154, 196
downloads and, 146, 148
and Netflix as team, not family, 173–74
360s and, 197, 198
vacations of, 41
I
Icarus, 207–8, 232–33
India, 83, 84, 147–48, 224–26
Mighty Little Bheem in, 228–31
industrial era, 269, 271
industry shifts, xvii–xviii, xix
Informed Captain model, 140, 149–52, 216, 223, 224, 231, 248
innovation, xv, xix, xxi, 84, 135–36, 155, 271–72
decision-making and, 130, 131, 135, 136
and leading with context or control, 214–15, 217
Innovation Cycle, 139–40
asking what learning came from the project, 153, 155
celebrating wins, 140, 152
failures and, 140, 152–59
farming for dissent, 140–44, 158
not making a big deal about failures, 153–55
placing your bet as an informed captain, 140, 149–52
socializing the idea, 140, 144–45, 158, 159
spreadsheet system and, 143–44
sunshining failures, 153, 155–59
testing out big ideas, 140, 146–48
International Olympic Committee, 232
internet, 146–48, 154
internet bubble, 4
iPhone, 130
Italy, 131–32
J
Jacobson, Daniel, 166–68
Jaffe, Chris, 153–57
Japan, 46–47, 183, 224, 225, 257, 261
in culture map, 243, 247, 248
feedback and criticism in, 251–57
Japanese language, 252–53
360 process and, 256
jerks, 34–36, 200
Jobs, Steve, xxiv, 130
Jones, Rhett, 178
K
karoshi, 46
kayaking, 180
Keeper Test, xiv, 165–87, 240, 242
Keeper Test Prompt, 180–83
Key Performance Indicators (KPIs), 81, 191, 209
Kilgore, Leslie, 14–15, 81, 94, 171
expense reports and, 61–62
on hiring and recruiters, 95–96
“lead with context, not control” coined by, 48, 208–9
new customers and, 81–82
signing contracts and, 149–50
360s and, 192, 193, 197, 198
King, Rochelle, 27–29
Kodak, xviii,
236
Korea, 224, 225
Kung Fu Panda, 221
L
Lanusse, Adrien, 148
Latin America, 136, 241, 249
Brazil, 137, 150, 224–26, 243, 247, 249–51, 257, 264
Lawrence, Jennifer, 176
lawsuits, 175
layoffs at Netflix, 4–7, 10, 77, 168
leading with context, not control, 48, 207–36
alignment in, 217–18, 231
on a North Star, 218–21
as tree, 221–31
control versus context, 209–12
decision-making in, 210, 216, 217
Downton Abbey-type cook example, 211–12, 218
error prevention and, 213–14, 220, 269–71
ExxonMobil example, 213–14
Icarus example, 207–8, 232–33
innovation and, 214–15, 217
Kilgore’s coining of phrase, 48, 208–9
and loose versus tight coupling, 215–17
Mighty Little Bheem example, 228–31
parenting example, 210–11
spending and, 59–62
talent density and, 212, 213
Target example, 213–15
lean workforce, 79
letting people go, 173–76
“adequate performance gets a generous severance,” xv, xxii, 171, 175–76, 242
employee fears about, xv, 178–80, 183–84
employee turnover, 184–85
in Japan, 183
Keeper Test, xiv, 165–87, 240, 242
Keeper Test Prompt, 180–83
lawsuits and, 175
at Netflix, 185
Netflix layoffs in 2001, 4–7, 10, 77, 168
post-exit communications, 117–20, 183–84
quotas for, 178
LinkedIn, 50, 51, 137
Little Prince, The (Saint-Exupéry), 215
loose versus tight coupling, 215–17
Lorenzoni, Paolo, 131–33, 135, 138
loss aversion, xv–xvi
Low, Christopher, 258–60
M
Mammoth, 51
Management by Objectives, 209
Man of the House, 222
Massachusetts Institute of Technology, 83
McCarthy, Barry, 14–15, 56
McCord, Patty, 4–7, 9, 10, 15, 27–28, 41, 53, 71, 173
all-hands meetings and, 108
departure from Netflix, 171
expense policy and, 55, 60–61
financial data and, 110
salary policy and, 78, 81, 94, 96
team metaphor and, 169
360s and, 197–99
vacation policy and, 40, 43, 45, 52–53
Memento project, 156, 157
Mexico, 136–38
Meyer, Erin, xxii
The Culture Map, xxii, 19, 242–50
Hastings’ message to, xxii–xxiii
keynote address of, 19, 32
Netflix employees interviewed by, xxiii, 19–20
in Peace Corps, xxii
micromanaging, 130, 133, 134
Microsoft, 78, 122, 176–78
Mighty Little Bheem, 228–31
Mirer, Scott, 200–201
mistakes, 121–25, 271–72
distancing yourself from, 157
management style and, 213–14, 220, 270
sunshining of, 157
see also failures
Morgan Stanley, 123
Moss, Trenton, 50–51
Mr. Peabody and Sherman Show, The, 145
Munk de Alba, Marta, 179, 180
Musk, Elon, xvii
Myers, Vernā, 241
N
Narcos, 132, 137
National Public Radio (NPR), 166–68
NBC, 82
Neal, Jessica, 6, 142, 218
Negotiating Your Salary: How to Make $1000 a Minute (Chapman), 86
Netherlands, 242, 243, 246, 248, 251, 261–63
Netflix:
“adequate performance gets a generous severance” mantra at, xv, xxii, 171, 175–76, 242
awards and nominations of, xvii, 76, 145, 165, 233
Blockbuster offered purchase of, xi–xii
children’s programming on, 144–45, 226–31
content licensed from external studios by, xvii–xviii, 75–76
content produced in-house by, xii, xviii, 75–76, 236
crisis in 2001, 4–7
culture of, xiii, xxii, xxiii, 45
Culture Deck of, xiii–xvi, 172–73
diversity at, 241
downloading and, 146–48
employees as part of, versus working for, 108–9, 115
employees’ love for, xvii
Explorer project, 154–55, 157
financial information of, 270
founding of, xi, 3–4
global expansion of, xvii, xviii, 147–48, 224–31, 236, 237–65, 239–65
American-centric culture and, 261
see also global expansion and cultural differences
“highly aligned, loosely coupled” mantra at, 217–18
internal competitiveness at, 177–78
IPO of, xii, xvi, 110
layoffs at, 4–7, 10, 77, 168
leadership tree at, 221–31
meetings at
all-hands, 108
Estaff, 218–19, 243
length of, 248–49
Quarterly Business Review, 49, 63, 110, 114, 145, 218–21, 224–26, 243
Memento project, 156, 157
Qwikster, 140–42
and shift from DVDs to streaming, xii, xvii, 140–41, 236
stock price of, xvi–xvii, 236
success of, xvi–xviii, xxiv, 6, 76, 77, 236
tagging and categorization of content on, 87
as team, not family, 168–70, 173–74, 250
and transitions in entertainment and business environment, xvii–xviii
turnover at, 185
viewer data of, 270
Wii interface and, 154
Netflix Innovation Cycle, 139–40
asking what learning came from the project, 153, 155
celebrating wins, 140, 152
failures and, 140, 152–59
farming for dissent, 140–44, 158
not making a big deal about failures, 153–55
placing your bet as an informed captain, 140, 149–52
socializing the idea, 140, 144–45, 158, 159
spreadsheet system and, 143–44
sunshining failures, 153, 155–59
testing out big ideas, 140, 146–48
New York Times, 165, 178
Nickelodeon, 25, 75, 144
Nieva, Jennifer, 66–68
Nishamura, Lisa, 233
Nokia, xviii
Northwestern University, 32
NPR (National Public Radio), 166–68
O
office politics, 189
OfficeTeam, 79–80
Olympic Games, 207–8, 232
“only say about someone what you will say to their face,” 15, 189–90
opening the books, see transparency
Orange Is the New Black, xvii, 75, 236
Oscars, xvii, 165, 233
Outliers (Gladwell), 142
oxytocin, 21
P
Paris, 268–69
paying top of personal market, 75–99, 174
creative positions and, 78–79, 83–84
form of payment and, 79–81
rare skill sets and, 85
recruiters and, 93–98
rock-star principle and, 77–79, 81
see also salaries
Peace Corps, xxii, xxiii, 14, 101, 239–40
Peña Nieto, Enrique, 138
penguins, elephants versus, 174
Peppa Pig, 227–28
Perez, Kari, 136–40
performance:
“adequate performance gets a generous severance,” xv, xxii, 171, 175–76, 242
annual reviews, 191
bonuses and, 80–84
candor and, 17–20
as contagious, 8–10
differing levels in teams, 7–8
family business metaphor and, 166–68
metrics and, 81–82
hard work and, 39
internal competitiveness and, 177–78
Key Performance Indicators, 81, 191, 209
performance improvement plan (PIP) process, 175–76
see also talent density
Peters, Greg, 45, 218, 255–57
PlayStation, 154
pleasing the boss, 129–30, 133, 152–53, 191, 198
praise and compliments, 21, 23
pratfall effect, 124
privacy, 120
Protector, The, xvii
Procter & Gamble, 81
Pruckner, Gerald, 59
psychological safety, xv
Pure Software, xviii–xix, xxiv, 3, 4, 6, 7, 13–14, 55, 64, 71, 101, 122, 123, 236
pyramid structure, 129, 221–23
Q
Quarterly Business Review (QBR) meetings, 49, 63, 110, 114, 145, 218–21, 224–26, 243
quitting current job, reasons for, 79–80
Qwikster, 140–42
R
raises, 87–93
Ramachandran, Shalini, 178
Ramsey, Bella, 227
Randolph, Marc, 3
Netflix cofounded by, xi, 3–4
in Netflix’s offer to Blockbuster, xi–xii
rank-and-yank, 177–78
Reputation Institute, xvii
Reguera, Ana de la, 137
responsibility, see freedom and responsibility
Rhimes, Shonda, xii
Rites of Passage at $100,000 to $1 Million+ (Lucht), 95
rock-star principle, 77–79, 81
Roma, xii, 165
Rosh, Lisa, 124
rules and process, xix, 236, 267–68
when to choose, 269–71
see also control, leadership by
Russia, 207–8, 232
S
Sacred Games, xvii
safety issues, and management style, 213–14, 269–71
Saint-Exupéry, Antoine de, 215
salaries:
adjusting down, 93
bonuses and, 80–81
changing companies and, 89–90
form of payment and, 79–81
negotiating, 86, 87
for operational positions, 78
paying top of personal market, 75–99, 174
creative positions and, 78–79, 83–84