Business Archives

How Neflix’s Expense (Non)Policy Works

How can a company as big as Netflix have such a lenient expense policy? How can Netflix enforce such subjective rules? Netflix’s expense policy basically states that all employees must “act in the company’s best interest” when it comes to travel expenses such as flights, hotels, and dinners. The problem is that each person may have a different idea of what is acceptable and what is extravagant. Here’s how Netflix ironed out the kinks in their expense policy.

What to Do If Your Blue Ocean Turns Into a Red Ocean

What is the difference between a blue ocean and a red ocean market? How do you prevent a blue ocean product from becoming a red ocean? Kim and Mauborgne caution that when you create a blue ocean market, imitators will inevitably arrive, eventually turning it into a red ocean. There are two ways you can respond: 1) prolong your blue ocean, and 2) find a new blue ocean. Let’s consider each of these approaches in turn.

Measuring Customer Experience: The Blue Ocean Way

What are your customers thinking? How do you measure KPI for customer experience? There are many different approaches to measuring customer experience. In their book Blue Ocean Strategy, Renée Mauborgne and W. Chan Kim advise that you use what they call a “buyer utility map,” which is essentially a customer experience scorecard for analyzing how your customer responds to your product at every stage. A blank example of a customer experience scorecard is shown below.

4 Hurdles to Kim and Mauborgne’s Blue Ocean Strategy

Companies With Successful Business Strategies

How do you execute a blue ocean strategy? What are the most common challenges you’re likely to encounter when putting your blue ocean strategy in motion? Once you’ve got a strategy, it’s time to execute it. In Blue Ocean Strategy, Kim and Mauborgne oversee four potential hurdles that you’ll have to overcome to implement a blue ocean strategy at your company and offer advice on how to overcome them. Let’s take a look at each one in turn.

When to Fire an Employee Who Is Only “Good Enough”

How do you know when to fire an employee? Why should you fire employees who are “good” but not “great”? At Netflix, Reed Hastings’s policy is to fire an employee even if they haven’t done anything wrong. He treats his company like a sports team—you will be replaced if the company finds someone better. This may sound harsh, but it’s part of the reason why Netflix is such a successful company. Here’s why Netflix lets go of adequate employees and how to manage the potential pitfalls of this practice.

Raving Fans: Book Review, Background, and Context

What is the book Raving Fans about? What are the book’s strengths and weaknesses, and how was it critically received? In Raving Fans, management experts Ken Blanchard and Sheldon Bowles argue that successful organizations have one common central focus: providing an excellent customer service experience. And that any type of organization or business that serves people can benefit from these principles to create “Raving Fans.” Here’s our Raving Fans book review.

Blue Ocean Strategy: Pricing to Maximize Revenue

How is pricing determined in the blue ocean strategy? What are the benefits of low-cost pricing? Blue Ocean Strategy authors W. Chan Kim and Renée Mauborgne advise setting your price to maximize the number of buyers in your market. In other words, you want to select a price that will make your product attractive to as many potential customers as possible. Keep reading to learn about the blue ocean strategy pricing approach.

Surrounded by Idiots: The 4 Types and Body Language

In what ways do Red, Yellow, Green, and Blue personalities act differently? How can understanding the body language of each type help prevent misunderstandings? Thomas Erikson writes in Surrounded by Idiots, the 4 types of personalities each use body language differently. A Red might lean forward while speaking to you, while a Blue might stand back and cross their arms. If you know what to expect from a person, then you won’t misinterpret their feelings. Here’s a breakdown of the body language of each of the 4 personality types.

What “Ideal Customer Service” Looks Like

What does it mean to have ideal customer service? What steps can you take to ensure your customers leave your business happy? In their book Raving Fans, Ken Blanchard and Sheldon Bowles argue that successful organizations have one common central focus: providing an excellent customer service experience. In their business fable, they outline what the ideal customer service experience looks like and five questions you should ask yourself as a business owner. Continue reading to learn how to improve customer service at your company.

Surrounded by Idiots: Quotes by Thomas Erikson

Board game playing pieces organized as a single leader separated from a group of followers illustrate traditional leadership

Are you looking for Surrounded by Idiots quotes? How can understanding these quotes help you better understand Erikson’s message in the book? Erikson’s framework includes four personality types, and each has a unique way of thinking, behaving, and communicating. He shows you how to navigate conflicts, sharpen your communication, and improve your relationships with your boss and colleagues—all by recognizing their personality types as well as your own. Here are some top quotes from the book with explanations.