{"id":25387,"date":"2021-01-29T10:31:00","date_gmt":"2021-01-29T14:31:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=25387"},"modified":"2022-01-17T10:06:21","modified_gmt":"2022-01-17T14:06:21","slug":"no-rules-rules-book","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/no-rules-rules-book\/","title":{"rendered":"No Rules Rules Book: The Unique Practices at Netflix"},"content":{"rendered":"\n

What is the No Rules Rules<\/em> book about? What does Reed Hastings share about the unconventional and unique business practices at Netflix?<\/p>\n\n\n\n

The No Rules Rules <\/em>book is the guide to how Netflix operates. Author and Netflix CEO Reed Hastings discusses the often unconventional strategies that have been used to bring and maintain success<\/a> for Netflix.<\/p>\n\n\n\n

Keep reading for more about the No Rules Rules<\/em> book by Reed Hastings.<\/p>\n\n\n\n\n\n\n\n

No Rules Rules<\/em> Book<\/h2>\n\n\n\n

When Netflix launched in 1997, the company was basically a mail-order version of Blockbuster, the video rental store that dominated the home entertainment industry at the time. Today, Netflix produces award-winning content, it has more than 167 million subscribers across 190 countries, and it\u2019s consistently listed among the best places to work. To achieve this level of success<\/a>, Netflix had to adapt and thrive in a rapidly changing industry.<\/strong> Identified in the No Rules Rules<\/em> book, the keys to Netflix\u2019s success have been unconventional business practices: <\/p>\n\n\n\n

  1. Hire and keep only the best workers\u2014at any cost.<\/li>
  2. Promote candor through constant feedback at all levels as well as organizational transparency<\/a>.<\/li>
  3. Remove controls, such as allotted vacation time and approval processes.<\/li><\/ol>\n\n\n\n

    These practices have created a company culture<\/a> that focuses on empowering employees<\/a> to innovate and take accountability, rather than conditioning them to simply follow protocol.<\/strong> Through this book, Netflix CEO Reed Hastings tells the story of Netflix\u2019s evolution and his logic in cultivating this kind of culture, while co-author and business professor Erin Meyer provides context for how these unusual business practices shaped the company\u2019s success. <\/p>\n\n\n\n

    Step 1: Hire and Keep Only the Best Employees<\/strong><\/h3>\n\n\n\n

    A few years after Netflix\u2019s 1998 launch, the company was hit with the repercussions of the 2001 dot-com crash<\/a>. Venture capital<\/a> funds dried up and Hastings was forced to lay off a third of his 120 employees, including many who worked hard and produced adequate work. Although Hastings feared that the layoffs would decimate morale, he discovered that his remaining staff buzzed with energy and produced high-quality work. Hastings soon realized that by eliminating less-than-stellar workers, he\u2019d raised the talent density<\/a>, meaning that there was a higher level of talent per employee, and that created an environment in which top performers thrived.<\/strong> High-performing employees want to work at companies full of talented, collaborative workers because: <\/p>\n\n\n\n