Netflix rules the streaming world, if not the entertainment one. It boasts over 300 million worldwide subscribers and is worth about $500 billion, numbers that virtually any business would die for. There are many reasons for its epic success, but a particularly notable one is its culture, which cofounder Reed Hastings first described to the world (via PowerPoint, no less) in a massive 2009 missive entitled “Netflix Culture: Freedom & Responsibility.”
In the fifth version, released last year, Netflix fine-tuned its now-iconic “culture memo” into four easily digestible core principles that form the foundation of its “values and performance over rules and controls” mantra: the dream team, people over process, uncomfortably exciting, and great and always better. Dive deep into each to get essential insights about hiring the right people, letting the wrong ones go, and creating a winning culture from one of the twenty-first century’s biggest success stories.
People of a certain age will recall the 1992 US men’s Olympic basketball team, also known as the Dream Team—arguably the greatest collection of sports talent ever. Netflix notes that it strives to create a similarly exceptional all-star squad within its walls, so it must be intentional in choosing its employees. (Perhaps not surprisingly, Hastings also used baseball analogies to make some of his original points.)
As its culture memo states, the company’s focus is on “performance and picking the right person for every position, even when that means swapping out someone [we] love for a better player.” The document also lists several qualities Netflix looks for in each candidate, from candor to curiosity to resilience, to find those who “are great at what they do, and even better at working together.”
To that end, the company continues to apply its renowned “keeper test,” which involves asking the same question about every team member in two different ways: If they wanted to leave, would it fight to keep them, and, with the power of hindsight, would it hire that person again? Every employee knows and accepts this standard, resulting in a surprisingly candid environment even when management has to part ways with someone. It’s all about performance, trusting one another, and going for the gold together—qualities that could enhance your business as well.
Historically, corporate America has valued a heavily structured, top-down approach to business, one in which employees must do whatever the executive team decrees. Netflix has long gone against this particular tide, however, eschewing the traditional employer-employee culture for one with few rules and greater employee trust and empowerment. In fact, it comes right out and says that it prides itself “on how few, not how many, decisions senior leaders make.”
Such a mindset may send a shudder down some business owners’ spines, yet Netflix claims it works extremely well because top-notch ideas can come from anyone, not just an upper-echelon few. “We expect informed captains to seek out different opinions and listen to people at every level,” its culture memo states. “After a decision is made, we expect everyone, including the people who argued for a different approach, to disagree then commit.”
But perhaps the best example of this “people over process” principle can be found in the company’s vacation and business-expense policies, which are summarized in a mere seven words: “Take vacation” and “Act in Netflix’s best interests.” Do you want every team member to reach their potential so they can help your company flourish? Consider how you can similarly encourage their perspectives and prioritize morale, fostering greater confidence to inspire greater performance.
As entrepreneurs know, change is part of growing a business, especially if the aim is to be groundbreaking. However, not every worker flourishes in such a reality; given the choice, many would understandably rather ply their trades at safe companies that don’t swing for the fences.
Netflix, though, has never sought that type of person for its team—in contrast, the streaming giant states that its culture “works best if you value experimentation, enjoy the uncomfortable excitement of a new or challenging project and have the resilience to thrive in this environment.” That’s why two key qualities it looks for when hiring are the courage to buck the status quo and the ability to think creatively.
Imagine how much this could positively impact your business. The more unflinching your team members are about finding new and unique ways to sell your products and mission to potential clients, the better your odds of finding the “aha” idea that will propel your company to amazing growth.
Of all corporations, Netflix would have ample reason and opportunity to sit back and rest on its accolades and staggering profits—but it doesn’t. In his introduction to the 2024 culture memo, chief talent officer Sergio Ezama went so far as to reveal that “we often say we suck today by comparison to where we want to be in the future.” So how does Netflix work to grow even more? As the company so simply yet eloquently puts it, “We constantly seek to improve our culture, not preserve it. . . . It’s how we entertain the world and build a wildly successful business.” Continue on a constant quest to make your organization a place where people love to work and can thrive both personally and professionally, and you, too, may hold the key to building a wildly successful venture.
It’s been said that imitation is the sincerest form of flattery, and in this case, it may just be a boon for your business. Even if you aim to merely imitate rather than duplicate Netflix’s accomplishments by incorporating the four core principles of its culture memo, you might just find greater revenue streaming in.
For more info, visit jobs.netflix.com/culture
TAKE ACTION:
Reflect on Netflix’s guiding principles, and determine which of them you can integrate into your hiring practices and culture.
In a dynamic market characterized by fierce competition, it may appear counterintuitive to share your expertise or pool resources with another business. But collaboration can be an effective way to grow your enterprise while also expanding your reach—enticing benefits whether you’re just starting out or looking to scale. Explore three strategies for working with other brands that may just help you achieve each of your goals.
One simple approach to start with is exchanging knowledge and strategies with other business owners, such as at trade conferences or local business-association meetings. The former are especially useful for this since they offer so many natural opportunities to connect with noncompeting organizations in your industry. You could glean insights from experts in formal seminars, then seek clarification or further specifics during the Q and A portion; you might even have the chance to chat with them more casually after the session. There’s also typically ample downtime for browsing vendor booths and mingling among the crowd, and don’t overlook the value of planned gatherings like dinners. Such informal settings make it easy to engage in conversation with fellow leaders about how to expand your offerings, leverage social media to reach your target audience, and other key topics.
Business-association meetings, meanwhile, allow for more continuous information sharing with those in your area, enabling you to pose questions regarding a particular challenge, get tactics from others with relevant experience, and follow up in the next meeting about your progress. They may be more than happy to help since they’re receiving the same benefit from you. Engage fully in these exchanges, and you can gain fresh ideas, refine your strategies, and discover innovative ways to enhance your operations—and you may even form foundational relationships you can expand into partnerships in the future.
To take your collaborative efforts further, look to build a joint marketing campaign with a compatible business, such as one you met via the previous strategy, to broaden your audience. An easy way to do this is through shared social media promotions. Assess who in your geographical area would complement your services well, and work with them to create compelling posts that feature both your companies’ services or products, tagging each other to increase your visibility. A local coffee shop and an independent bookstore, for example, are a perfect pairing—after all, a picture of the newest book release next to the featured latte of the month is bound to perk up any book lover’s or coffee nut’s interest.
You could also consider cohosting a promotional event with one or more brands that align with yours, whether in terms of their values or customer demographics. Say that you’re a financial advisor seeking to help existing and potential clients navigate later-in-life decisions. You could partner with a variety of professionals, including a Seniors Real Estate Specialist® (SRES®), a tax professional, and an estate-planning attorney, to offer a one-stop-shopping experience where customers can explore complementary products and services, generating exposure and business for all involved. For a good turnout, cross-promote the event beforehand through email newsletters, coordinated social media campaigns, or cobranded flyers, building excitement and maintaining customer engagement.
To reap even more rewards, consider joining forces with a like-minded partner to create cobranded products or services that can provide added value to both companies and their customers, driving mutual growth and success. Such tactical alliances are common in the business world since they allow organizations to leverage each other’s strengths, expand their offerings, and reach new clients. Apple and Nike, for one, have had a long-standing agreement, developing joint products that cater to fitness enthusiasts, including Nike-branded wristbands and clock faces for Apple watches. Similarly, Uber and Spotify used an innovative method to merge their brands: allowing Uber riders to stream music from their Spotify Premium accounts directly through the ride-sharing app, enhancing the overall experience and broadening the reach of both brands.
Similar to cobranding, the first step is connecting with a business that has like goals and a like target audience (perhaps even the one you’re already comarketing with). Then brainstorm a product or service you could provide together that would seem enticing to each of your client bases. For instance, a general cleaning company could team up with an HVAC professional to create a cobranded package that combines their offerings at a discounted rate—think a premium white-glove experience that includes whole-home and air-duct cleaning, providing homeowners with a dust-free environment.
Launching or scaling a business can have its share of unique challenges. But by joining forces with the right company, you may be able to amplify your impact, driving success for you and your partner alike.
TAKE ACTION:
Evaluate your company’s current needs, and brainstorm a business collaboration that would suit you well.
In the ever-evolving and ultracompetitive world of business, streamlining your organization’s processes while maintaining quality may be a perpetual priority—as well as a challenge. Enter Six Sigma, a profound methodology that equips businesses across industries to better satisfy these objectives. Discover the basic tenets and benefits of this concept along with practical applications for implementing it in your own company.
Six Sigma is a system of techniques that leverages analytical tools, statistics, and structured problem-solving to identify, inspect, and eliminate any possible inefficiencies in a workplace. The name originates from quality control in manufacturing, in which one sigma represents one deviation away from the mean. Achieving six sigma essentially means reducing long-term defects to an amazingly low rate of 3.4 times per million opportunities, resulting in minimal losses, few variables, and maximum quality that approaches perfection.
The translation of this concept to areas of business beyond manufacturing can be attributed to Motorola engineer Bill Smith, who first developed Six Sigma in 1986. His goal was to clearly analyze and then improve practices in his organization, hoping to decrease flaws and increase quality output. When General Electric attempted it, they witnessed its ability to curb spending, mitigate product waste, and ultimately improve results—and news of these changes propelled the approach into a worldwide phenomenon. After all, though it may have roots in industrial practices, the revolutionary processes have applications in all types of businesses.
Six Sigma’s commitment to excellence is built on these foundational principles:
The application of Six Sigma involves following a specific set of steps known as the DMAIC framework, each of which represents a vital component of improvement:
Practicing Six Sigma offers a wide array of benefits, hence its applications across various industries from manufacturing and retail to health care and beyond. The first and most direct of these is enhanced quality. By reducing defects and variability, it better ensures that your business consistently delivers top-tier products and services. Superior results, in turn, may increase your positive impression on consumers, boost your brand image, and attract a more loyal, engaged customer base.
Applying this framework could additionally lead to sweeping cost savings. Improved efficiency means reducing waste, lowering operational costs, and increasing profitability. When you save money, you can not only reap more results from your organization’s work but also invest more in potentially lucrative initiatives like expanding your service areas and running tailored marketing campaigns.
Just as crucially, Six Sigma may positively impact your employees. Empowering your staff with problem-solving tools can go a long way toward improving performance, increasing morale, and fostering a culture of continuous advancement. Implement the concept at all levels, and you may gain a more driven team committed to your organization’s success.
Before you can officially practice Six Sigma, you’ll need to pursue training and certification. This involves reaching specific achievement levels with martial arts-inspired names such as yellow belt, black belt, and champion, each of which indicates a different degree of mastery. Training programs are open to just about anyone, but if you’re unsure where to begin, contact a certification company like ASQ, which offers four course levels, to discuss your organization and its needs.
Upon achieving belt status, the next step is implementing Six Sigma across your organization. Approach the overhaul meticulously to overcome barriers and ultimately roll it out successfully, beginning with securing leadership support. Strong backing from shareholders and managers under your guidance will confirm that you have adequate resources and are able to align everyone with strategic goals.
Following that, you’ll need to invest in training, first within your leadership suite and then for your employees as a whole. Comprehensive guidance will equip them with the skills needed to realize Six Sigma strategies effectively. But don’t expect perfection from day one; encourage collaboration and foster continuous improvement, focusing on long-term results rather than immediate changes. To measure the program’s output, utilize KPIs to track progress and determine its impact.
As businesses continue to adapt to technological advancements and shifting market demands, Six Sigma remains a vital tool for driving efficiency and quality. Its enduring relevance lies in its ability to deliver measurable results and foster an environment of accomplishment. If you apply its focus to customer needs, leverage data-driven insights from it, and empower your team, you may eliminate roadblocks and unlock your company’s full potential—both achieving greater success and sustaining it for years to come.
TAKE ACTION:
Contact a Six Sigma certification company to pursue more information about this framework and its practical applications for your organization.
Over the course of leading your team, you’ve likely realized that their performance is directly tied to their physical and mental well-being. The more energy and confidence they have, the more focused and engaged they are, leading to higher production and better outcomes overall. So why not implement wellness programs that can help encourage your employees to take care of themselves? Though doing so may involve some costs, it could prove well worth the investment, serving as a viable strategy for long-term growth.
On the surface, the term “wellness program” is relatively self-explanatory: it is essentially any initiative designed to promote a healthy lifestyle among a workplace’s staff. Note the emphasis on “any”—there is virtually no limit to the number of wellness categories and program types to choose from. Consider these examples:
Other possible categories include social, occupational, intellectual, and environmental. Though these four may be less obvious in their benefits, they all contribute to a greater sense of well-being that may help your employees bring their best selves to work.
There are many ways that investing in a wellness program can provide significant advantages to your organization, both on a micro level and a macro one.
Reduced sick days and health-care costs
Simply put, the healthier an employee is, the less often they will need to call in sick, whether due to a mental-health day or physical illness. In addition to fortifying individuals’ immune systems, fitness-focused and informative programs may help them reduce their risk or symptoms of chronic issues that may require more appointments, which not only take them away from their work but also incur more medical costs.
This benefit has been known for years. For example, a Harvard Business Review article from 2010 noted that Johnson & Johnson reported a significant decline in team members who smoked, had high blood pressure, and were physically inactive after the company launched its wellness programs—resulting in an estimated $250 million in savings on health care over the previous decade.
Increased engagement and efficiency
Heightened stress and anxiety can reduce focus and motivation, leading to burnout and, in turn, decreased productivity and more errors. Programs focused on mental health can help combat this by offering employees essential tools for handling pressure in both their personal and professional lives, enabling them to relieve mental fatigue. Even financial, social, and environmental initiatives can have an impact; the former may assist in easing challenges caused by monetary stress, while the latter two can offer uplifting experiences to create a sense of fulfillment. Prioritize these core factors, and you may ultimately cultivate a happier, more efficient team.
Better retention
Besides better output, such engagement can also increase the chances that your employees will stay put—many studies indicate that burnout is one of the top reasons for leaving a job. Further, health-focused initiatives demonstrate that you have an interest in their well-being, helping them feel valued and supported and inspiring greater loyalty to your company. The result is a reduction in turnover and, thus, the associated costs of hiring and training.
Starting a wellness program doesn’t require a massive budget. Begin with something simple, such as introducing flexible hours or encouraging regular breaks to refresh your team’s mindset, then build from there. Even small shifts in your company’s culture can lead to positive changes in employee satisfaction and performance.
TAKE ACTION:
Consider the needs of your workforce, and determine one or two small-scale wellness programs you could easily initiate as a starting point.
