When Netflix became a winner in the game of the multimedia content entertainment market, there are three major internal factors and operations: a free corporate culture, quick market adaptability and challenges, and customer-centric operation.
Netflix co-founder and CEO Reed Hastings’ presentation on ‘Freedom and Responsibility’ provides a glimpse into the company’s values and operating methods. For reference, Facebook COO Sherly Sanderg said, “This presentation is one of the most important documents coming out of Silicon Valley.” The key to the presentation is to encourage employees to autonomously carry out their work with the least amount of regulation and maximum freedom.
Netflix finds and hires great people, pays industry-leading salaries, and gives them the freedom to take responsibility for themselves. Hastings said, “When you give freedom to those who are responsible, they can show their worth and they deserve freedom,” and “No rules rules.” In fact, Netflix has no restrictions on vacation days, so employees can use whatever vacation they think is appropriate.
By sharing context instead of control, executives only provide goals and direction, leaving the rest to each employee’s choices and responsibilities. The reason Netflix avoids regulation is that excessive rules that emphasize only efficiency stiffen organizational innovation and change.
Netflix’s autonomous operating method is closely related to its ability to adapt quickly to the market. When the world was changing with the development of communications and the Internet, Netflix was able to quickly introduce a revolutionary service called streaming. Despite repeated failures, he did not stop constantly trying new challenges.
For example, Netflix entered the film production business in the mid-2000s when it lacked financial preparation or a customer base, which didn’t do much at the time, and when it announced in 2011 it was splitting DVD rentals and streaming into two services, it had garnered hundreds of thousands of subscribers. also lost But now, it is the world’s No. 1 multimedia streaming company with 290 million subscribers in 190 countries and is reborn as a content producer making hits such as ‘Stranger Things’, ‘Queen’s Gambit’, and ‘Squid Game’.