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The One Question Netflix Uses to Ensure an Exceptional Culture

September 17, 2018

You may know Netflix as a top media entertainment provider with shows like, Orange is the New Black and Stranger Things, but behind this media giant is a high-performance company culture that seeks to attract and retain “stunning colleagues.”

Netflix believes in people over process, and promotes freedom, independence, and collaboration. Like many organizations, they have company values that sound great, but the difference is, they actually live by them.

Almost a decade ago, some of the secrets of the company’s exceptional culture were revealed in a document that was shared frequently on the Internet. The slide deck, entitled, Netflix Culture: Freedom and Responsibility not only detailed the company values, but also their philosophy on pay, benefits, and what actually makes a great company culture (hint: it’s not free espresso, sushi lunches, and great offices).

And it’s anything but traditional.

What stood out to me when I first read this document was a structure that managers use called, “The Keeper Test.”

Here is the Keeper Test that Netflix managers ask themselves regularly:

“Which of my people, if they told me they were leaving, for a similar job at a peer company, would I fight hard to keep at Netflix?”

And here’s what they do if someone isn’t on that list:

“The other people should get a generous severance now, so we can open a slot to try to find a star for that role.”

Many organizations talk about great workplace cultures, cohesive teams, and cross-departmental collaboration. But few companies instill practices that align with this strategy. Few companies take action when someone isn’t measuring up. It’s not what you say, it’s what you do. Talking about great cultures but not taking the necessary actions to create an exceptional culture only breeds mediocrity. Creating an exceptional place to work with stunning colleagues takes courage and consistency.

As a leader in your organization, ask yourself these questions:

  • Who is not measuring up to the standards we have in place?
  • Who do I need to give constructive feedback to (that maybe I’ve been avoiding)?
  • Knowing what I know now, who would I not hire again?
  • Knowing what I know now, who should not be in a leadership role?
  • What I am doing as a leader to get in the way of creating an exceptional culture with stunning colleagues (examples include: not giving feedback, not coaching, not giving clear expectations, holding on to an underperforming employee, not modeling the values and attributes that create an exceptional culture)

If you want a high performing company, you have to do things differently than most organizations. Mediocre managers and executives breed mediocre cultures. You need bold and courageous leaders who are willing to make the tough decisions for the sake of creating an exceptional culture where stunning colleagues want to work.

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Comments
Beverly
December 19, 2023

Whenever I have a work project that I keep putting off - I think about delegating that project to someone else - which accomplishes 2 things- it gets the project done and frees us my brain space thinking about it.

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Reply from Laurie:
Absolutely, Beverly! We create more time for ourselves, and we can release the mental stress it is taking up.
Melissa Smith
December 7, 2023

Good morning. I loved this read. Thank you so much for sharing. Sincerely, Melissa :)

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Reply from Laurie:
You're welcome, Melissa! Thanks for your comment.
Anonymous
November 29, 2023

Thank you for this blog Laurie. I liked most part and specially "As organizations have become more complex, there is a tendency to require employees to do more with less. This is a slippery slope, and often can result in employees feeling overwhelmed and burnt out. One of the biggest contributors to this is not evaluating resources during the strategic planning process." I will use this practice "A best practice is to do what I call Priority Planning—putting important practices on your calendar ahead of time so they become a priority in your day. Examples of activities to Priority Plan include scheduling recurring coaching sessions with each team member, time for strategic thinking and planning, vacations, doctor appointments, important children’s events, and blocks of time for focused work on projects." To be more effective, I will get a good rest so I can have enough energy in the morning. I will read the blog again along with the other links on employee evaluation. Thank you so much Laurie. Best wishes to you and your family.

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Reply from Laurie:
So glad you will be implementing these things!
Tracey
October 23, 2023

this is a test comment

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Reply from Laurie:
Add an answer
Anonymous
October 23, 2023

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Reply from Laurie:
Add an answer
lynn beisel
October 20, 2023

I love the feedback on the more than 50 hours of work. AND filling time. So true. Unfortunately, showing that you work longer hours is still seen as being a "hard worker" - not sure how to change that though.

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Reply from Laurie:
Lynn, I agree that working longer hours is still seen as working "hard" in our culture. I wish this was an easy shift. Our society needs to redefine what being productive means--not related to hours, but true productivity, which I find is not related to hours, but is related to focus. I do think leaders in organizations can model great boundaries and set the tone for their culture. Thank you for your comment!
Krystle
September 26, 2023

I enjoyed the read. I concur that transitioning from technical skills to delegating results was a task within itself. I did not realize I was almost trying to do the same thing from my previous position, and it was not working. However, I am seeing the results of how delegating daily tasks makes my job and workload easier. Thank you, Laurie.

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Reply from Laurie:
Thank you, Krystle! I think this is something most managers are challenged with when shifting from a more technical role to a leadership role. Delegation can really help free up time for the leadership aspects of our job.
Anonymous
August 29, 2023

Thank you for sharing information about your trip Laurie! All 3 things resonate with me - probably #1 being the biggest. I know when I'm gone for a week, I'm still thinking about work and need a vacation when I get back because I did not relax enough. I think your idea of a longer vacation is definitely in my future!!

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Reply from Laurie:
I think it takes me a week to just wind down before I can really relax. My goal next year is to take at least one two week (rather than one week at a time) vacation!
Perry Crutchfield
August 22, 2023

Hey Laurie, My take on your list - 1 - everyone has a story - listen 2- social media causes interpersonal problems 5- generational differences create hurdles / earn it you aren't entitled / we should help them get there not give it to them 6 AMEN some leaders I would have followed thru Hell, some I wish - well, you know 7- true BUT be as good as your word and 14- Hopefully we leave some good from our efforts, I know the good leaders I have had have. Seen a lot in my career but it really comes down to treat others the way you want to be treated, fair, honest, and straight forward. Good read. Take care

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Reply from Laurie:
I always appreciate your perspective, Perry! I so agree with you that we should treat others with respect, just like we want to be treated. I have also had leaders that I would follow anywhere, and others who I have learned what NOT to do!
LISA KINNEY
August 16, 2023

I love this so much and thank you so much for sharing! I really just love realizing that enjoying the simple things sometimes is the best! Also recognizing that what is important and fun to you may not be everyone else's fun on the on the trip. “Do we get to keep these toiletries?” was my favorite!!!! :):) Glad you had a great time and got to spend it with your family!

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Reply from Laurie:
I am so glad you are enjoying the blog post Lisa!
Sandra
August 15, 2023

I very much resonate with lesson no 3! Thank you Laurie

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Reply from Laurie:
Thanks, Sandra!
Beverly Zook
August 14, 2023

I think the part that you might have missed in their top 5 things, some of which were not "Italian" or even different from home, all of them happened with you, both of you. And i think that is what they will remember too. And you've got tons of photos that will remind them of what the Sistine Chapel looked like - then they might remember what it sounded like or smelled like. Oh- and i agree with you 100% about sleep!

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Reply from Laurie:
You are so right Bev--it was really about the experience of traveling together. I have on my list to create an album from our trip so we can look back and remember everything we did!
Tracey
August 14, 2023

LOTS of great take-aways from this post! Thank you for posting! I especially love "slow down to speed up". That's a keeper!

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Tracey
August 14, 2023

testing blog comment flow

did this come through?
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Anonymous
August 14, 2023

the not getting enough rest to be at my best. definitely need to get more quality sleep and make that a priority

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Reply from Laurie:
Sandi Richardson
August 10, 2023

It really is hard to narrow down the 3 lessons into one because they are all so interconnected. You need to give your mind and body THE TIME to relax SO THAT you can enjoy the SIMPLE THINGS, including REST. I enjoyed that lesson as a whole. I will take that lesson with me on my next vacation (or staycation). As always, thank you Laurie for your candor and for sharing your own lessons with others so that we too can benefit.

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Reply from Laurie:
Yes, Sandi! Love how you pulled all those lessons together!
Andrea C.
August 10, 2023

Great information and reminders

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Reply from Laurie:
Thank you, Andrea!
Arlene Byrd
August 10, 2023

Laurie, Thank you for sharing your trip and these nuggets. The lessons that resonate most with me are it does take time to relax and getting proper rest. When you devote 15 plus hours of your day for work, taking care of home and others; the 6-7 hours you lay down does not cut it! For me during this time I'm trying to unwind and find myself thinking fighting not to think about what I have to do tomorrow. Even after I create a to do list for the next day...I find things I need to add. Taking a day off here and there doesn't cut it as well because of all the plans you have for that day. I try to make sure my Mental Health Days remains just that.... time for me to laugh, cry, scream.... whatever I need to release the cares and stress!

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Reply from Laurie:
Yes, Arlene! We spend so much of our time working and often taking care of others, that it can feel challenging to even find time to unwind and rest. I am working on building more margin into my schedule and blocking time off next year for some extra days off to really disconnect and relax.
Stephen Wallace
August 10, 2023

Really enjoyed the article... and all very true!

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Reply from Laurie:
Tracey
August 10, 2023

Since I was already well aware of #1 (I'm in the same boat with taking a long time to relax), I think I'm resonating most with #3. I'm learning to prioritize sleep / rest and it's been wonderful. Love that you said "I love sleep.". :)

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Reply from Laurie:
Yes, Tracey, I love my sleep and I prioritize it! I feel a huge difference in my energy and focus if I lose even one hour of sleep. I know a lot of people struggle to get good rest, and for some it is not easy.
Anonymous
July 28, 2023

Welcome back from vacation. Well deserve! Action is the key to success. Shoulder to shoulder, coaching and delegating task to help other employees grow are very important. It is a sacrifice that one must do. Forget about yourself and be with your team day in and out to help them grow, is not always easy. On the long run, your team is stronger, and you can depend on them for the success of the organization. Thank you so much!

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Reply from Laurie:
Absolutely agree--action is important for any success. And as a leader, we have to take action--connect with our team, make time for coaching, and showing appreciation. Thanks for your comments!
Sandra
July 26, 2023

So many great tips here, thank you!

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Reply from Laurie:
Thanks so much, Sandra!
Tracey
July 14, 2023

I am so impressed you're able to disconnect and these are great tips I'll be sure to try on my next trip!

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Reply from Laurie:
Let me know how it goes, Tracey! :-)
Becca Levian
July 14, 2023

Such a great post - so inspiring!

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Reply from Laurie:
Thank you, Becca!