content operations team recommendations netflix. problem area
TRANSCRIPT
Content Operations TeamRecommendations
NETFLIX
Problem Area
Problem Area
Netflix wants to get into the streaming business
(a cutting edge business that needs innovation)
But…
Problem Area
In our opinion, by 2014, your growth will hit an inflection point
Problem Area
Dysfunctional Death Spiral
Let’s look at a team
Content OperationsAroon… leads with fearKerry… bright, talented, marked for terminationSuresh… early employee, watches a lot of TVSrikumar… hard workerAleks… checks in code without permission Jeremy… has an MBA and is kept in a closetPallavi… only tolerates it because of her H1-B
How has this team performed?
In 2 years, 6 managersTeam goes weeks without checking in codeTeam just about botched the iPad launch
Why do we care about this team?
This team gets your content to your website
If this team doesn’t perform you won’t have a streaming service
This team’s problems show up in all Netflix teams
What got them here?
Employees call it
a culture of fear
Why are the employees afraid?
You fire 25% of them each year
What’s wrong with leading with fear?
Team dysfunctionPoor performance
Difficulty hiring new employeesOpenings go unfilled
Operations failCustomers quit
But isn’t our culture great?
Netflix has high ideals
Culture deck distributed over the internet by the CEO
Where did it go wrong?
The goals conflict and when applied to reality create an explosive mixture
Freedom and Responsibility
Extreme top-down management environment
Everyone is responsible, but no one is really free
All Star Team
Above average pay to get the best of the best
(but the best are used to a system that recognizes their performance, excellent
performers are quickly disillusioned)
The result has been average employees that are really good at not getting fired
Adequate Performance Equals Generous Severance
No objective performance review(no performance review at all, actually)
=Anxiety
Results in Dysfunctional Teams
The iPad launch
Aroon was on vacation during this key time frameA different team couldn’t get the iPad content into
the encoding systemSuresh did not want his team to take on this task
Suresh would rather have the iPad launch fail than have his team take on this risk
“Have them fail and have everyone know it”
Best Team Practices
Tie the team back to the organization
Make the team see the organization’s success as their success
Build trust between team members
An affiliative approach would help heal the turf wars and lack of trust
Recommendations
Innovation Sustains Enterprise Viability
PR
OD
UC
T
PER
FR
OM
AN
CE
2000 2014
SUSTAINING TECH
MARKET
TRAJECTORY
Clayton Christensen
Innovation Sustains Enterprise Viability
PR
OD
UC
T
PER
FR
OM
AN
CE
2000 2014
NETFLIX (DISRUPTIVE TECH)
SUSTAINING TECH
MARKET
TRAJECTORY
OVERSHOOTING NEEDS @ > COST
Clayton Christensen
Fear> Turnover
2000
2014
Collapsing Fear Spiral Kills Innovation
Need to reset culture…Or long term viability at risk
2 Options for Cultural Reset…Team Option Allows for Hypothesis
Testing
Hypothesis: Injecting Accountability & Trust
Accountability via Ownership
Trust via
Insulation
Culture of Fear.....Communitarian Culture
Incremental $ Value of Communitarian Culture
Accountability via Ownership
Trust via
Insulation
How to Inject Accountability & Trust?
Task to goal responsibilityCreation of subteams w/ leads
(training, empathy, trust)Realign skill sets to workloadClean communication channel
team leader/ senior mgmtInnovation contestFormal recognition (increased
ownership, faster review times, public pat on the back, etc)
Leadership training (balanced style)
Accountability via Ownership
Trust via
Insulation
Leadership Style - Desired
Leadership Style - Now
ConclusionSUCCESSFUL BUSINESS MODEL AND
FLAWLESS EXECUTION COMPENSATED FOR CULTURE OF FEAR
CULTURE OF FEAR
…PUTS LONG TERM VIABILITY AT RISK
…ADDRESSED THROUGH ACCOUNTABILITY AND TRUST
RECOMMEND IMPLEMETING MEASURES IN CONTENT OPS TEAM SETTING (6MOS)
REVIEW RESULTS …CORPORATE ROLL OUT
Questions?