Netflix built organizational software (culture) instead of organizational hardware (bureaucracy). The culture deck is their operating system. This is why they can move fast at scale. The "no rules" approach works because they hired adults and gave them context. Low GPI is not luck, it is architecture.
Flat org. "Context not control" culture. Decisions pushed to informed employees. No committees for most decisions.
Killed Qwikster in 23 days. Password sharing crackdown succeeded after initial resistance. Ad tier pivot within 12 months.
Radical transparency. Information flows freely. The "Netflix Culture Deck" codified knowledge sharing.
No physical infrastructure. Content library is the main lock-in, but can be adjusted annually.
"Keeper test" ensures high performers. Generous severance. No "brilliant jerks." Top of market pay.
Content spend is high ($17B) but flexible year-to-year unlike physical assets.
A/B testing culture. Data-driven decisions. Algorithm improvements compound.
"Netflix built organizational software instead of organizational hardware. The culture deck is their operating system. Low GPI is not luck, it is architecture."
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