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Published Oct 08, 23
4 min read

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The company's cost policy is 5 words long: "Act in Netflix's benefits." In talking that through with employees, we said we anticipated them to invest business money frugally, as if it were their own. Getting rid of an official policy and giving up cost account cops shifted obligation to frontline managers, where it belongs.

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They might save money by letting staff members book their own journeys online. Like many Netflix managers, I needed to have discussions occasionally with workers who consumed at extravagant dining establishments (meals that would have been fine for sales or recruiting, but not for eating alone or with a Netflix associate). We watched on our IT men, who were prone to purchasing a great deal of devices.

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We asked managers and workers to have discussions about efficiency as an organic part of their work. In numerous functionssales, engineering, product developmentit's relatively obvious how well individuals are doing.

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Offer her a fantastic severance packagewhich, when she signs the documents, will considerably minimize (if not remove) the opportunity of a lawsuit." In my experience, individuals can manage anything as long as they're informed the truthand this proved to be the case with Maria. When we stopped doing official efficiency reviews, we instituted casual 360-degree reviews.

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How is the work different from what the group is doing today? Next I ask them to think about the abilities required to make the images in the film become reality.

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If you remain in a fast-changing company environment, you're probably taking a look at a lot of mismatches - . In that case, you need to have sincere conversations about letting some staff member discover a place where their skills are a much better fit. You likewise require to recruit people with the right abilities. We dealt with the latter challenge at Netflix in a relatively dramatic method as we began to shift from DVDs by mail to a streaming service.

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Lots of HR individuals dislike it when employees speak with employers, but I always told employees to take the call, ask how much, and send me the numberit's valuable details. In addition, we utilized equity payment much in a different way from the method most business do. Instead of larding stock options on top of a competitive income, we let staff members select how much (if any) of their compensation would be in the form of equity.

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We distributed choices every month, at a slight discount rate from the market cost. We had no vesting periodthe options might be cashed in immediately.

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If you no longer desire to work with us, we do not desire to hold you captive. We didn't determine them on whether they were excellent coaches or mentors or got their documentation done on time.

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He replied, "Performance." "OK," I stated. "Envision that I work here, and it's 2:58 PM. I'm playing an intense video game of swimming pool, and I'm winning. I estimate that I can complete the video game in 5 minutes. We have a meeting at 3:00. Should I stay and win the game or suffice brief for the conference?" "You must end up the game," he firmly insisted.

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It's a specific problem at start-ups, where there's a premium on casualness that can run counter to the high-performance values leaders want to create. I typically sit in on company meetings to get a sense of how people operate.

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