How Netflix Reinvented HR Based on the article

How Netflix Reinvented HR Based on the article by Patty Mc. Cord, Harvard Business Review, January–February 2014 YOUR LOGO HERE © 2015 Harvard Business School Publishing. All rights reserved. Copying or posting is an infringement of copyright. Please contact customerservice@harvardbusiness. org or 800 -988 -0886 for additional copies. 2

Stellar talent has led to stellar success. 3

It All Began with One Employee “I’d rather work by myself than with subpar performers. ” 4

The Talent Philosophy at Netflix Hire only “A” players. 5

But There’s a Catch… You have to be willing to let some people go. 6

Be generous with severance. 7

Tenets of HR at Netflix 8

Hire Only Grown-Ups Employees should rely on logic and common sense, not formal policies. 9

The Old Policy for Paid Time Off • 10 vacation days • 10 holidays • Sick days 10

The New Guidelines for Paid Time Off • Take whatever time is appropriate. • Work it out with your boss and colleagues. 11

One Simple Rule for T&E Act in Netflix’s best interests. 12

Tell the Truth About Performance Improvement plans are dishonest. 13

Maria Wouldn’t Benefit from a Performance Improvement Plan… … and neither would Netflix. 14

Frequent, honest conversations Ratings on a five-point scale 15

A New Tool: Informal 360 s Stop Start Continue 16

Charge Managers with Creating Great Teams Make recruitment their top priority. 17

What skills will your team need six months from now? 18

How can you fill the gaps? 19

Market rates Netflix’s Compensation Philosophy Choice on equity Immediate vesting 20

Charge Leaders with Creating the Right Culture They have to model the behavior they want to see. 21

A Classic Tension at Start-Ups Efficiency and high performance VS Casualness and fun 22

Make sure employees understand what behavior drives success. 23

Subcultures may require different approaches. 24

Think Like Businesspeople First Cheerleading doesn’t improve morale—but good results do. 25

What’s good for the company? The Critical Questions for HR How do we communicate that? What defines high performance? 26

HR people can be innovators, too. 27

Trust employees Netflix’s Recipe for High Performance = Be honest Recruit stars Walk the talk Focus on results 28

• Are our HR practices too bureaucratic? • What do they focus on most? • Could they support our business goals better? For Discussion • Do they help employees understand how to drive results? • Would replacing rules with common sense work here? • How would things change if we made recruiting stars the top priority for our managers? 29

Harvard Business Review Magazine and Web Articles How Netflix Reinvented HR Patty Mc. Cord Reinventing Performance Management Marcus Buckingham and Ashley Goodall Talent Management for the Twenty-First Century Peter Cappelli Building a Game-Changing Talent Strategy Douglas A. Ready, Linda Hill, and Robert J. Thomas Learn More Harvard Business Review Press Books The Alliance: Managing Talent in the Networked Age Reid Hoffman, Ben Casnocha, and Chris Yeh It’s Not the How or the What but the Who: Succeed by Surrounding Yourself with the Best Claudio Fernández-Aráoz HBR’s 10 Must Reads on Managing People 30