The Hidden Lessons of the Netflix Culture Deck

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There’s no question that the Netflix Culture Deck (2009) was a game-changer in it’s day. A Google search for the term (in quotes) returns 13,000+ results, not counting all the print stories that came out at the time.

There’s an argument to be made that it is the most important “HR document” of the century.

15 years later, the team at Netflix have revised the document to some fanfare, but nothing can really compare to the originals impact.

In a lot of ways, it changed the conversation around culture, how companies shape it, and the connections between the culture and the talent.

But in a lot of ways, what was so interesting and useful about it got missed.

So today, let’s revisit the deck and make sure we’re learning the right lessons.

Slide 2: Title. This is a perfect “first” slide, leveraging the yin yang to frame the entire conversation. Unlike so so so so many other copycats to go all in on “we’re all about X!” leading to an incredibly one-note idea, Netflix embraces the friction that comes between freedom and responsibility. It suggests that there is no one answer to a given question but that you need to understand the push/pull of both sides to come to the best answer.

Slides 5-7: Rejection of old ideas. Quickly in, Netflix is rejecting what most culture documents (things like mission statement, value statements, posters, etc) by underscoring how neutered they are. Netflix is calling out how any company can say their values, but that doesn’t mean they live them. Having worked with plenty of comms and HR teams, what really strikes me is that they are effectively starting on the “negative.” “We aren’t this.” Comms/HR teams generally red pen starting on the negative because they don’t want to appear negative. I’ve had a LOT of fights about this, and here Netflix is, leaning into it. I love it: Here is what we reject and we will build on the rubble of the old.

Slides 8-18: What is a value? Re-writing what they mean by “values” as behaviors that others value rather than pleasantries. Boom!

Slides 20-26: The dark side. This is where things get interesting. Slide 20 sounds nice (“Imagine if everyone is someone you respect and learn from.”), and honestly, most brands and culture docs stop right here. Netflix digs deeper and unpacks how that isn’t some nice-to-say aspiration they hope will happen, they show that they know how to make it real. “Unlike many companies, adequate performance gets a generous severance package” and “keeper test” slides show that they are willing to do what it takes to get rid of people who don’t align or don’t add exceptional value. And I love that they start the section with the phrase “unlike many companies” which is leading with the negative again. It underlines who they are different from most companies in a real and meaningful way.

Slides 28-30: Honesty. This is the “brutal honesty” section, where they say that it is an employee’s duty to point out where actions do not align to those values. This is real accountability, giving all staff the chance to

Slides 31-39: High performance. So so so SOOOO many companies talk about how they value high performance, and leave it at that. Here, Netflix is defining what performance looks like (outcomes, not hard work, setting the stage for better unlimited PTO) and the limits to that performance (no brilliant jerks, highlighting that they are better together). But the best part? That their version of high performance is NOT for everyone.

Slides 40-78: Freedom and Responsibility. There’s a lot here, from defining terms and showing how when rules are put in place, human systems tend to drive them in specific directions. This is where they show how previous decisions (hiring the right people) make this friction fruitful instead of destructive, making this ia VERY linear presentation, making it clear that you shouldn’t take any one phrase or slide out of the larger context. Then it gets into the section about “necessary rules,” where it explains that freedom is not absolute, but that rules must meet certain base criteria to avoid becoming burdensome. Then we get to my favorite part: The examples. Most brands are values and aspirations without context, turning them into greeting card platitudes. Here, Netflix is showing how all the things described so far result in the proper outcomes: people get the rest they need because we trust them. But then, they look at the other side of the problem. In many companies an unlimited PTO policy results in LESS PTO taken, and they explicitly state that managers should be role models at take their PTO so their team can, too.

Slides 80-88: Context, not Control. Netflix rejects as many control systems as possible to give people freedom to do amazing work. Being context-driven is interesting because it suggests a lack of rules to fall back on. We’ve been in situations where someone said we couldn’t do something patently positive because it violated some rule. Rather than think through the situation, they announced the rule was policy to keep from having to really think.

Pause: I mean, at this stage, have you ever seen a corporate culture/brand/values document that clearly understood the pros and cons of the choices like this thing? Amazing.

Slides 89-112: Alignment and pay. Honestly, at this stage, talking about being well aligned and the value of paying at the top of the range isn’t radical, it’s the obvious outgrowth of everything they have stated so far.

Slides 113-125: The promotions (and firing) section is usually what gets so much attention. Again, they start by showing how they are disagreeing with other companies (“Netflix doesn’t have to be for life”), which at the time was almost radical. I mean, I’d wager at least 50% of hiring managers will ding someone for being a “job hopper,” and here is Netflix saying, “what is loyalty?”

So what’s worth taking away?

At it’s core, this document is an argument against how most companies are run. Where most companies will just say “Innovation” and “Excellence” like anyone understands the meaning or limitations of the empty words, Reed Hastings and Patty McCord are all but picking a fight with every other company they’ve ever heard of or worked for. And by picking a fight, puts it on the side of smart workers rather than executives, and the more they show their differences, the more useful and attractive the document becomes. Clever, no? This is how being different makes a difference.

In a world where employers and employees have zero expectations (my parents lived a “work here your entire career and we’ll take care of you” world you and I can barely imagine. Today, we get journals saying employees should work harder while applauding stock buybacks and lowered bonuses), this document is a kind of agreement: This is what we expect from you and this is what you should expect from us. It’s a two-way contract (legally, all contracts are two-way, which is why so many ‘user agreements’ aren’t legally binding, but that makes me the lawyer in this conversation and I hate that), something that most companies ignore.

So happy birthday to Netflix’s original culture deck! Let’s remember it’s lessons so we can find our own perfect hires!

Tomorrow: I talk with Rod Sloane on LinkedIn Live where I’ll show you how to connect any social media post to your employer brand. Details.

🍿 Should your brand take a stand? It’s one thing when you sell sneakers or ice cream, but when you are actively trying to hire people who are directly impacted by social/political shifts, I’m not sure how you can’t get involved. That said, taking a stand will not (and honestly should’t) be easy sailing »

🍿 Communication isn’t one-way. It is omni-directional (which might explain why your “talent community” isn’t exactly paying dividends). That sounds cool and all, but it seems to be leading us all to the “echoverse.” »

🍿 If you (or your leadership team) treat AI as “plug and play,” you’re not going to get the return on your work you expected. Even the latest AI needs your expertise to get real value out of it »

🍿 A lot of points being made here, but this one really hit me (and was also repeated in a Rory Sutherland podcast I was listening to the next day): We live in a world where “crap” gets filtered out pretty quick. For three months, your IG feed is a slew of purple toothpaste ads, but as quickly as they appear, they’re gone as people realize it isn’t what it appears. That means that most stuff is… kinda pretty good. So in that world, saying you’re good isn’t useful. It’s table stakes at best. This is why being different is so so important »

🍿 7 Areas You Should Nurture to Become a Better Brand Strategist »

🍿 A Strategic Culture Is Deliberately Different »

🏛️ All 2,400+ (five years worth!) articles from this newsletter are in a searchable archive. Go get ‘em!

Do you know what your competition is doing?

You should.

Because you don’t operate in a vacuum.

Saying you offer professional development is a great attractor of talent who want to grow… unless everyone else is saying that, too.

So before you say anything new on your career site, your social media, your job postings, your outreach(!), take the smart first step and do a quick audit of what your competitors are saying so you can ensure you’re not being relegated along with everyone else playing the “Me, too!” game.

In more useful terms, practice saying the following phrase, “Boss, we’d love to make some adjustments to our candidate communications, but we need to audit our competitors to make sure we’re not all saying teh same thing and our efforts are wasted.”

Last reminder:

Be more informed as you think about building your brand:

What’s the difference between Exaqueo, Pink Squid, Splice, Truist, and 20+ other employer brand companies? And if you don’t know, how are you going to pick the right one? Get the info you need to help you make a smarter decision about who will help you best in your EB journey. It’s free! »

Chaos does not mean total disorder.
Chaos means a multiplicity of possibilities. 
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