HR Insights

What makes Netflix an admirable organization?

Netflix is an admirable organization because it has a strong corporate culture and encourages its
employees to be a risk taker. Netflix has created an environment where employees feel free to take risks
and make mistakes, which they do by trusting them to develop new ideas and freedom to make their
own decisions.

What performance measures did the company created? How did they implement it?

They detest PIPs (Performance Improvement Plans) they believe that they’re fundamentally dishonest:
and they never accomplish what their name implies. Building a bureaucracy and elaborate rituals around
measuring performance usually doesn’t improve it. Traditional corporate performance reviews are
driven largely by fear of litigation.

Ever since then, Netflix stopped doing formal performance reviews, they instituted informal 360-degress
reviews. They kept them fail. They kept them fairly simple: People were asked to identify things that
colleagues should stop, start, or continue. In the beginning we used an anonymous software system,
but over time we shifted to signed feedback, and many teams held their 360s face-to-face.

HR people can’t believe that a company the size of Netflix doesn’t hold annual reviews. If you talk simply
and honestly about performance on a regular basis, you can get good results—probably better ones
than a company that grades everyone on a five-point scale.

From HR practitioners’ standpoint, what OD interventions (programs or initiatives) can be done for
your company?

For a small organization who outsources employees and doesn't have in-house HR practitioners. I would
recommend a few OD interventions such as:

1. Developing an onboarding process for new employees. Though we outsource our new hires,
there should still be a clear plan of action for how new employees will become acclimated with
their new roles and responsibilities within their first few weeks on the job. This will help ensure
that they feel welcomed and supported from day one.
2. Remote workers need to be given the same level of training as in-house employees. They need
to know what they are expected to do, how they are expected to do it, and what will happen if
they don't.
3. Conducting an internal survey to determine employee satisfaction and engagement. This will
allow you to identify any issues that may be affecting employee morale and productivity. You
can then implement programs/initiatives that will address these concerns in a positive way.
4. After this, we should consider creating a performance management system that outlines clear
goals for employees and rewards them for meeting those goals. Once this system is in place, we
can also implement an employee recognition program to encourage employees' hard work.

What should leaders in your company do to implement it better?

First, the leader should hire or outsource an independent Practitioner to implement the HR programs.
This person will be responsible for developing onboarding process, training for new hire and internal
survey, performance management system among others.

Second, they will need to ensure that all employees have access to the tools needed to help accomplish
those goals. This could include training programs designed specifically for each employee position or
even just providing them with company-wide resources like software or equipment that can be used at
any time during their workday.

Third, if there are any problems with these processes (or any other process), then it's important for
those people who are responsible for overseeing them (such as HR) to address those issues quickly so
that they don't become bigger problems down the road.

Lastly, they should also make sure that they are able to follow through with the program in a timely
manner, as this will be important for both employee retention and productivity, which is something that
all companies want.

These practices will help ensure that employees feel like they are valued members of the team and have
opportunities to grow their skills within the organization.

What will the rest of all employees need to do to make it work?

They will also need to be willing to take part in them and contribute their own ideas and feedback.