|No Rules Rules (2020) is a book on company management and its success by the founder of Netflix, Reed Hastings, and the business author Erin Meyer. It explains how Netflix has transformed from a DVD service to an online streaming service with millions of users worldwide.|
Detailed Summary of No Rules Rules
During the last twenty years, the dynamics of Netflix have taken a complete shift. Erin Meyer has helped executives all over the world to work by overcoming cross‐cultural differences. She has partnered with Reed Hastings to give an insight into how Netflix operates differently than the rest of the businesses.
This distinctive functioning of Netflix has made it the most popular streaming website. Today Netflix not only streams but also produces shows and movies of its own. It has achieved success in a short amount of time by promoting innovation, flexibility, macro managing, and employee freedom.
Hastings and Meyer mention their top strategies as follows: Look out for innovative content, hire only talented people and do not accept mediocrity, stop micromanaging, make less yet effective policies, pay your employees well, welcome their ideas, take feedback from everyone and provide your teammates with independence. These steps can maximize the potential that your start‐up has.
No Rules Rules Summary Key Points
What are your thoughts on conventional rules and practices of business? Are they effective enough to get you the most of the benefit? Well, the most prolonged, reliable, and durable strategy to run a business is cultural freedom and responsibility. The following key points will give you better insight into how innovative and easy workplaces help you to grow the business.
You can also check Becoming The Boss Summary to develop the skills and talents of self-development learning.
Talent Density: talented people make one another more effective
It might sound a bit hard, but the main advice here is to hire excellent and talented people on your team. If you have a team of four excellent and two mediocre workers, the mediocre sap the energy of the managers.
It increases distractions and causes work anxiety. By compensating the mediocre workers, you will be sending out the message that you accept mediocrity to the whole team thereby. Everyone will take the work lightly.
This shows that having less capable and less talented people on your team will only lead to more problems and decrease efficiency overall. You cannot afford to waste money on improving employees’ performance when you have a business to grow.
The Netflix owner Hastings believes that the more independent you make your employees feel, the more efficient work they can produce. Handle the responsibility of your team members and only define the outcome you require. Do not dictate each and every step.
While some Employers may feel that handing out a set of rules that needs to be followed step by step increases efficiency, the reality is the opposite. If you hand them the power, you can hold them accountable too.
Learn to listen before you speak and learn what they have to say before you teach. Value people over process. This will make your employees exercise their own judgment and value work more.
Innovation is the Key
Due to the constantly evolving demands of customers and the needs of the business world. The major focus of Netflix is to generate new and unique ideas from its employees. Mistakes are a part of the process that generates new ideas.
The main threat that many businesses face today is not making mistakes. Rather, it is the inability to come up with new ideas because all the progress starts from there. If a newly implemented idea results in failure, think of it as part of the process. Do not belittle any idea as long as it plays even the smallest role in making the project move forward.
Have a High Salary and Radical Candor
Hastings has already advised you to hire only talented people worthy of the job. Now it is time to pay them a salary that enables them to function properly and without stress. It is more efficient to spend on people who are working to make your company successful rather than paying high to mediocre. Hire the best and provide them with the best.
Adequate performers inspire others to perform high and needless control from you. Radical Candor requires delivering hard feedback. Giving feedback to anyone who is your employee or a fellow teammate is important at Netflix. Feedback should not be only limited to the boss.
If you have a talent-dense organization, everyone will have something to say. Do not shut anyone down.
The feedback, however, has to follow the four as
1) It should aim to assist
2) It should be actionable
3) Appreciate the feedback you receive
4) Know which feedback to accept and which to discard.
No Rules Rules Quotes:
“It made our workforce smarter. When you give low‐level employees access to information that is generally reserved for high‐level executives, they get more done on their own. They work faster without stopping to ask for information and approval. They make better decisions without needing input from the top.” – Reed Hastings
“If you’re starting up your own company and your goal is innovation and flexibility, try to keep decision‐making decentralized, with few interdependencies between functions, in order to nurture loose coupling from the outset.” – Reed Hastings
No Rules Rules Summary Review
Unlike typical books related to how start‐ups flourish into huge companies, no rules rules provide detailed insight on what are the essential changes you need to make in your mindset and inside your company if you dream of growing into something bigger.
It is packed with top-level professional and business advice. There is no one better to follow than a global company entertaining people in more than one hundred and ninety countries. It is a piece of great advice for companies to be more employee‐focused, creative, and effective. The book is well-written, thoroughly researched, and educational.
To Whom would I recommend No Rules Rules Summary?
- To a start‐up owner who wants to educate himself more about how start‐ups flourish.
- Anyone who wants to drive their company towards more success.
- And to Anyone curious how Netflix became the top streaming service in just two decades.