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NetflixCulture:Freedom&Responsibility1WeSeekExcellenceOurculturefocusesonhelpingusachieveexcellence2SevenAspectsofourCulture•ValuesarewhatweValue•HighPerformance•Freedom&Responsibility•Context,notControl•HighlyAligned,LooselyCoupled•PayTopofMarket•Promotions&Development3Manycompanieshavenicesoundingvaluestatementsdisplayedinthelobby,suchas:4IntegrityCommunicationRespectExcellenceEnron,whoseleaderswenttojail,andwhichwentbankruptfromfraud,hadthesevaluesdisplayedintheirlobby:IntegrityCommunicationRespectExcellence5(Thesevalueswerenot,however,whatwasreallyvaluedatEnron)Theactualcompanyvalues,asopposedtothenice-soundingvalues,areshownbywhogetsrewarded,promoted,orletgo6Actualcompanyvaluesarethebehaviorsandskillsthatarevaluedinfellowemployees7AtNetflix,weparticularlyvaluethefollowingninebehaviorsandskillsinourcolleagues……meaningwehireandpromotepeoplewhodemonstratethesenine8Youmakewisedecisions(people,technical,business,andcreative)despiteambiguityYouidentifyrootcauses,andgetbeyondtreatingsymptomsYouthinkstrategically,andcanarticulatewhatyouare,andarenot,tryingtodoYousmartlyseparatewhatmustbedonewellnow,andwhatcanbeimprovedlater9Judgment10CommunicationYoulistenwell,insteadofreactingfast,soyoucanbetterunderstandYouareconciseandarticulateinspeechandwritingYoutreatpeoplewithrespectindependentoftheirstatusordisagreementwithyouYoumaintaincalmpoiseinstressfulsituations11ImpactYouaccomplishamazingamountsofimportantworkYoudemonstrateconsistentlystrongperformancesocolleaguescanrelyuponyouYoufocusongreatresultsratherthanonprocessYouexhibitbias-to-action,andavoidanalysis-paralysis12CuriosityYoulearnrapidlyandeagerlyYouseektounderstandourstrategy,market,customers,andsuppliersYouarebroadlyknowledgeableaboutbusiness,technologyandentertainmentYoucontributeeffectivelyoutsideofyourspecialty13InnovationYoure-conceptualizeissuestodiscoverpracticalsolutionstohardproblemsYouchallengeprevailingassumptionswhenwarranted,andsuggestbetterapproachesYoucreatenewideasthatproveusefulYoukeepusnimblebyminimizingcomplexityandfindingtimetosimplify14CourageYousaywhatyouthinkevenifitiscontroversialYoumaketoughdecisionswithoutagonizingYoutakesmartrisksYouquestionactionsinconsistentwithourvalues15PassionYouinspireotherswithyourthirstforexcellenceYoucareintenselyaboutNetflix‘ssuccessYoucelebratewinsYouaretenacious16HonestyYouareknownforcandoranddirectnessYouarenon-politicalwhenyoudisagreewithothersYouonlysaythingsaboutfellowemployeesyouwillsaytotheirfaceYouarequicktoadmitmistakes17SelflessnessYouseekwhatisbestforNetflix,ratherthanbestforyourselforyourgroupYouareego-lesswhensearchingforthebestideasYoumaketimetohelpcolleaguesYoushareinformationopenlyandproactivelySevenAspectsofourCulture•ValuesarewhatweValue•HighPerformance•Freedom&Responsibility•Context,notControl•HighlyAligned,LooselyCoupled•PayTopofMarket•Promotions&Development18ImagineifeverypersonatNetflixissomeoneyourespectandlearnfrom…19GreatWorkplaceisStunningColleaguesGreatworkplaceisnotespresso,lushbenefits,sushilunches,grandparties,orniceofficesWedosomeofthesethings,butonlyiftheyareefficientatattractingandretainingstunningcolleagues20Likeeverycompany,wetrytohirewell21Unlikemanycompanies,wepractice:adequateperformancegetsagenerousseverancepackage22We’reateam,notafamilyWe’relikeaprosportsteam,notakid’srecreationalteamNetflixleadershire,developandcutsmartly,sowehavestarsineveryposition23TheKeeperTestManagersUse:Whichofmypeople,iftheytoldmetheywereleaving,forasimilarjobatapeercompany,wouldIfighthardtokeepatNetflix?24TheKeeperTestManagersUse:Whichofmypeople,iftheytoldmetheywereleaving,forasimilarjobatapeercompany,wouldIfighthardtokeepatNetflix?25Theotherpeopleshouldgetagenerousseverancenow,sowecanopenaslottotrytofindastarforthatroleHonestyAlwaysAsaleader,nooneinyourgroupshouldbemateriallysurprisedofyourviews26HonestyAlwaysCandorisnotjustaleader’sresponsibility,andyoushouldperiodicallyaskyourmanager:“IfItoldyouIwereleaving,howhardwouldyouworktochangemymind?”27AllofUsareResponsibleforEnsuringWeLiveourValues“Youquestionactionsinconsistentwithourvalues”ispartoftheCouragevalueAkintothehonorcodepledge:“Iwillnotlie,norcheat,norsteal,nortoleratethosewhodo”28ProSportsTeamMetaphorisGood,butImperfectAthleticteamshaveafixednumberofpositions,soteammembersarealwayscompetingwitheachotherforoneofthepreciousslots29CorporateTeamThemoretalentwehave,themorewecanaccomplish,soourpeopleassisteachotherallthetimeInternal“cutthroat”or“sinkorswim”behaviorisrareandnottolerated30WeHelpEachOtherToBeGreat31Isn’tLoyaltyGood?WhataboutHardWorkers?WhataboutBrilliantJerks?32LoyaltyisGood•Loyaltyisgoodasastabilizer•Peoplewhohavebeenstarsforus,andhitabadpatch,getaneartermpassbecausewethinktheyarelikelytobecomestarsforusagain•Wewantthesame:ifNetflixhitsatemporarybadpatch,wewantpeopletostickwithus•Butunlimitedloyaltytoashrinkingfirm,ortoanineffectiveemployee,isnotwhatweareabout33HardWork–NotRelevant•Wedon’tmeasurepeoplebyhowmanyhourstheyworkorhowmuchtheyareintheoffice•Wedocareaboutaccomplishinggreatwork•SustainedB-levelperformance,despite