But with our culture of candor at Netflix, people get loads of feedback every day. Before any employee is let go, he should have heard clearly and regularly what he needs to do in order to improve.
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Despite all the talk about feedback at Netflix, this type of candor would not fly. A climate of candor doesnât mean anything goes. The first few times Netflix employees gave me feedback I felt so startled I thought the rules of feedback were something like, âsay whatâs on your mind, to hell with the cost.â But Netflix managers invest significant time teaching their employees the right and wrong way to give feedback. They have documents explaining what effective feedback looks like. They have sections of training programs where people learn how and practice giving and receiving it.
Of course, transparency, like all of our cultural principles at Netflix, does sometimes go wrong. In March 2014, a director of content acquisitions downloaded reams of confidential data and took it with him when he left to work for a competitor. This led to headaches and lawsuits and took a lot of our time. But when one employee abuses your trust, deal with the individual case and double your commitment to continue transparency with the others. Do not punish the majority for the poor behavior of a few.
At most companies, the boss is there to approve or block the decisions of employees. This is a surefire way to limit innovation and slow down growth. At Netflix, we emphasize that itâs fine to disagree with your manager and to implement an idea she dislikes. We donât want people putting aside a great idea because the manager doesnât see how great it is. Thatâs why we say at Netflix: DONâT SEEK TO PLEASE YOUR BOSS. SEEK TO DO WHAT IS
âINNOVATION CYCLE STEP 1: FARM FOR DISSENT . . . Finally, one VP said to me, âYouâre so intense when you believe in something, Reed, that I felt you wouldnât hear me. I should have laid down on the tracks screaming that I thought it would fail. But I didnât.â
The culture at Netflix had been sending the message to our people that, despite all our talk about candor, differences of opinion were not always welcome. Thatâs when we added a new element to our culture. We now say that it is disloyal to Netflix when you disagree with an idea and do not express that disagreement. By withholding your opinion, you are implicitly choosing to not help the company.
Instead I reminded myself of what I often tell leaders throughout Netflix:
When one of your people does something dumb donât blame them. Instead ask yourself what context you failed to set. Are you articulate and inspiring enough in expressing your goals and strategy? Have you clearly explained all the assumptions and risks that will help your team to make good decisions? Are you and your employees highly aligned on vision and objectives?