Zero Rules - High Talent Density x Complete Transparency x Minimal Management, First Complete Look at the Key Secrets of Netflix's Global Fanbase
NO RULES RULES
Author: Reed Hastings, Erin Meyer
Original Authors: Reed Hastings, Erin Meyer
Translator: Han Jieguang Publisher: Global Views Magazine Publishing
Published: 2020/10/28 Language: Traditional Chinese ISBN: 9789863986102
Book Recommendation Website: http://moo.im/a/5stQUV
Preface:
This is the twelfth book I've read this year.
I must say that this book is probably one of the most heavily promoted books at the end of this year (at least for me), with advertisements in both online news reviews and various media. But recently, during an OKR training course, the instructor hit me again, and I couldn't help but buy it and read it. As a result, I was diligently reading it every day for three days, and I finished it not long after.
I highly recommend that everyone who does Developer Relations take a look, especially those who are involved in Tech Hiring or have a large number of recruitment needs, whether you are an HR or a Hiring Manager.
Content Summary and Thoughts:
Netflix founder and CEO Reed Hastings publicly shared his management philosophy for the first time, and also opened the door to invite INSEAD professor Erin Meyer to conduct research and interviews within Netflix, interviewing over two hundred employees. Together, they analyzed Netflix's seemingly rule-free "freedom and responsibility" culture through a dialogue format, extracting Netflix's three key operating principles for rapid response and continuous innovation:
High talent density for the best combat effectiveness: Only the best in the industry can cope with and innovate in chaos. The company is not a family, but more like a professional team. Only when top players are on the same team can they stimulate each other's progress. Zero tolerance for redundant employees; those who are annoying, lazy, and overly nice cannot survive. Eliminating mediocrity, the performance and enthusiasm of a few outstanding individuals will be even higher.
Absolute honesty fosters trust and progress: It's not terrible to make mistakes; it's high-risk not to know you're wrong. Feedback is listed as a scheduled process in meetings, using kind and honest feedback to help each other go from excellent to outstanding, only then are you qualified to be a team member. Speak up and admit mistakes, celebrate quietly. Information is openly displayed for everyone to see, everyone reads the financial reports, and everyone is a part of the shared responsibility.
High degree of authorization, efficiency and flexibility first: To innovate quickly, accountability is very important. Employees should be responsible adults; there is no dress code, and no one will work naked. Full information and assured authorization help everyone dare to take risks, establish a consensus of "considering the best interests of the company," decentralize decision-making, and cultivate an entrepreneurial spirit.
Chapter Breakdown
Part 1: Beginning to Embrace a Culture of Freedom and Responsibility
The first chapter is quite interesting, explaining the characteristics of top talent: "wanting to work with a group of top talent." Just like Google is favored by high-tech talent, in addition to the relevant welfare standards, the main reason is that there are many well-known experts inside.
With top talent, NETFLIX starts by giving appropriate responsibility and opening up appropriate freedom. That is, reducing control. After all, top talent doesn't not understand the rules, and doesn't like being restricted. Regardless of telling all internal employees the relevant subscription numbers, they don't worry that employees will engage in insider trading. (It's not that insider trading won't be a problem, but that employees are told in advance that it's illegal).
Part 2: Accelerating the Promotion of a Culture of Freedom and Responsibility
Offering the highest salaries in the industry, and decisions don't need to be reported upwards. In NETFLIX's view, employees are hired to assist superiors in handling matters, not to report everything. When a contract needs to be signed, as long as the highest principle is "everything is for the benefit of NETFLIX," there is no need to report to the CEO, and you can sign it yourself. This is also a kind of responsibility and achievement for top employees. It can accelerate the growth of the organization and make the organization's decisions faster. For NETFLIX, the employees hired should be the most knowledgeable and clear in their area of responsibility. If you can't trust them to give them the power (and responsibility) to sign contracts, then is it hiring the wrong person?
Part 3: Continuing to Deepen the Culture of Freedom and Responsibility
Special Hiring Logic: "Retention Test"
The "Retention Test" is a core principle for NETFLIX when hiring people, and it's also a recruitment standard for top talent.
Regularly think, if someone on your team resigns tomorrow.
- Would you try to persuade them to change their mind?
- Would you be willing to offer more salary to keep them?
If both of the above answers are no. NETFLIX's principle is that you should immediately fire the employee. Because their performance is "not good enough."
This point is very special. Many companies that emphasize the concept of "family." Punish and fire employees through "making mistakes," so employees are afraid of making mistakes and dare not innovate, causing the company to slowly move towards failure. But NETFLIX is not a "family" to its colleagues, but teammates. Everyone comes to the company to work, to pursue growth and a good enough salary. Because they are teammates, they will demand each other to improve, and because they are teammates, even if a teammate makes a mistake, they will immediately fill the gap and continue to move forward in order to win.
So when you make a mistake, NETFLIX won't fire you, but will ask you to put it in the spotlight, review it carefully, and think of ways to improve. If you have different opinions about your colleagues, the way they express it is "when you want to talk about your colleagues, please assume they are in front of you, and be sure to say the same words in front of them again." In addition to preventing the practice of tattling, it can also allow both parties to grow and accept improvement.
No Bonus System
This point is also quite interesting. It is expected that any NETFLIX employee should maintain "high performance," and it is not necessary to reward them. Conversely, if an employee does not maintain high performance, then according to the "Retention Test," should they be laid off, and use their salary to find a more high-performing employee?
Part 4: NETFLIX Culture Goes Global
The last chapter explores how to go global through the management method of "zero rules," a model of trust. After all, in many countries, similar management styles have never happened before. This also explores that the so-called "zero rules" is not applicable to all companies. If your company's nature cannot make any mistakes (such as cybersecurity, financial-related systems), then "rules" are indispensable. Through the setting of rules, every employee can act according to the rules, ensuring that no accidents occur, and of course, there is no so-called creativity.
If your company advocates creativity and a high-productivity brain industry, then you need to embrace failure and abandon mediocrity. Only then can your company go further and globalize.
Thoughts:
This book has really broken many of my old views, let me list them in order:
The idea of the "Retention Test" is really useful, although I don't want to think about whether I'm similar to NETFLIX in the industry I'm in, taking the highest salary in the industry. But I often think about is, if I resign one day, will my bosses be willing to increase my salary to keep me? The book mentions that the salary is proposed by yourself. Just like the bonus system, maintaining high performance is your contribution to your salary. Conversely, if there is no high performance, the company should also use your salary to find a higher-performing competitor. (If one exists).
Although many companies hire employees based on the "lowest cost paid for the same work ability." That is, for the same salary, as long as you can find an employee who is "good enough." This approach makes many companies uncompetitive. Coupled with the wrong misconception of "avoiding mistakes," many employees within the company often "just don't make mistakes," and are only willing to do what they are supposed to do, and they will not challenge higher achievements.
These things are often quite dangerous in creative companies. Whether many employees can think about whether they have considerable competitiveness according to the "Retention Test." Conversely, you should also think about whether your boss is unwilling to keep you because you are really not performing well? Or does he not feel your contribution. If it's the latter, you should review your efforts, and if it's the former, you should reflect on why your boss has such thoughts.
From another angle, NETFLIX also welcomes employees to switch jobs, and even welcomes headhunters' calls. The first sentence should often be, is the salary over there higher than here? If so, it means you should fight for a higher salary with your boss. This is the only way to adjust your salary in NETFLIX (in the absence of promotion).
But looking back, I think many engineers may only see the "high salary" thing. Seeing the good benefits, but not thinking about whether they have the determination to become "top talent." Whether they have seriously regarded the company as a team, not treating colleagues as family and tolerating decline, tolerating colleagues relaxing. They should encourage each other to defeat other teams and strive for the championship.
I've really written a lot. Although this book is used by NETFLIX to recruit talent. But it is also suitable for everyone who recruits talent and inspires employees' potential to understand. Perhaps, seriously treating colleagues as players. Finding "top talent" and letting them fully exert their abilities is the right path.
But for those with high salaries, do they still need DevRel to assist with related work? This is something that I will think about carefully in my mind!
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