There are a lot of choices of streaming service provider. It can be said that Netflix is one of the largest streaming service provider. It is because now Netflix can be accessed by more than 190 countries. Until October 2017, there are 109.25 million subscribers worldwide and it includes 52.77 million subscribers in the United States. This company was built in 1997 by Reed Hastings and Marc Randolph. At first, the company ran only in providing streaming media and also video on demand online and DVD by mail. But then, the company expanded the business into the production of movie and TV series and also online distribution.
The founder of Netflix, Reed Hastings and several of his colleagues made a powerpoint that explains how they make the culture and motivate performance at Netflix. You can find the powerpoint at hbr.org/2014/01/how-netflix-reinvented-hr or at slideshare.net in which it consists of 128 slides. In the powerpoint, it is said that the culture of Netflix focuses on assisting people to achieve excellence. There are seven aspects of their culture that consist of values are what we value; high performance; freedom and responsibility; context, not control; highly aligned, loosely coupled; pay top of market; and promotions and development.
People discover that the Netflix approach to talent and culture encouraging for some reasons. The most vivid one is that this company has been very successful. It is proved by the achievements that it got. During 2013 alone its stock more than tripled. Then, Netflix won 3 Emmy awards. In addition, the subscribers of US grows to almost 29 million. The approach of Netflix is very encouraging and interesting because it comes from common sense.
For years, they learned that in case they asked people to rely on logic and common sense instead of on policies that is formal, most of the time they will obtain better results and at lower cost. In case you are careful to hire people who will put the interests of company first, who understand and support the desire for a high performance workplace, 97% of the employees will do the correct thing. A lot of companies spend endless time and money writing and enforcing the policies of HR to face the problems the other 3% may cause. Instead, they attempted really hard to not hire people and they permit them go in case the Netflix side has done a mistake in hiring them. The employees need to talk openly about issues with their boss, their colleagues, and their subordinates. This way implies that knowing that even in companies with policies of HR, the policies are often passed because managers and their reports work out what makes sense on a basis of case by case.
Several year ago, Netflix company omitted formal reviews. They had held them for a while but then they realize that they didn’t make sense. They are too ritualistic and also too infrequent. So, they ordered managers and the employees to have dialogues about performance as an organic part of their work. Well, it is good to read the powerpoint directly so that you can get the lesson from there.