Reed Hastings, chief executive, Netflix. Source: Wikimedia/Max Threlfall

Leadership
Marko Zitko

The secret sauce of Netflix: No Rules Rules

Authors
Marko Zitko
Managing
5 minute Read

Traditionally, as a startup grows, so does its culture. A successful tight knit group eventually grows to dozen people, then a larger team. With more people to manage, the organisation begins enforcing more rules, processes, and policies. Dress policy, leave policy, and a policy on travel and expenses. 

This is the traditional progression for almost every company. It’s what we understand as the sensible way of running a business. Global streaming service Netflix, on the other hand, completely goes against the grain. The Netflix leadership team believes enforcing rules stifles innovation and creativity. They view policies and process controls as what makes a company unable to adapt to disruptions in the industry.

As described by co-founder Reed Hastings, it’s a culture that “values people over process, emphasises innovation over efficiency, and has very few controls.” 

It’s this weird and wacky, yet somehow immensely successful culture cultivated at Netflix that is explored in No Rules Rules by Reed Hastings and Erin Meyer.

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