Keine Regeln

If there is one thing we learned during our vocational training or at university, it is to align our work and leadership with clear rules and processes. After all, unambiguous guidelines provide security and reduce the likelihood of mistakes. Why this approach, however, has nothing to do with creating room for creativity and innovation is what we learn in the book "Keine Regeln" by Reed Hastings and Erin Meyer.

I was curious to find out what Netflix claims to do differently from other companies. After all, they also claim to be successful and innovative. As I learned in the book, there really is a big difference between the corporate culture at Netflix and (I would argue) that of the vast majority of all other companies.

What corporate culture ultimately has to do with jazz, why the famous roundabout in Paris (l'Etoile) is a symbol of it, and why I think "Keine Regeln" is a terrific book – you'll find out in this review.

Netflix doesn't just stand for a great, modern and up-to-date range of movies and series. It is also a symbol of innovative strength, flexibility, speed and entrepreneurial courage. "Keine Regeln" is about the company setup needed to make exactly that possible. It's about which essential conditions have to be created so that a company is able to act flexibly, quickly and innovatively.

In "Keine Regeln" we learn what it means when Reed Hastings says that first and foremost talent density has to be increased. In Part II we learn how important openness and transparency are and how unnecessary control mechanisms can be removed. Part III deals more specifically with leadership – above all by context, not control. In the last section, Part IV, we then learn how Netflix went about globalizing the culture it had created and ran into some extreme surprises along the way.

The book is clearly structured, follows a common thread and is very pleasant to read. The combination of explanation and company example (always highlighted in color) made it very easy for me to follow the narrative.

The problem Netflix is trying to solve, and around which it has built its entire corporate culture, is clear: How do I get and keep the best employees so that they can create creative and innovative products as independently and quickly as possible? A core problem every company should think about. The rigor with which Netflix tackles it did surprise me, though.

The target audience is business leaders and people who deal with the principles of corporate strategy and culture. Anyone who wants to build and lead successful large (international) teams will find exciting new food for thought in "Keine Regeln".

Beyond that, the book can also be interesting for anyone who is generally interested in Netflix. In that case, though, the book may at times feel a bit long-winded and give the impression of repetitive content.

I absolutely want to experience the Netflix culture! That was my first thought after I finished reading the book. Admittedly, here and there the rigor with which Netflix implemented its culture surprised me. For example, they don't talk about being a family, because in a family you also have to get along with unpleasant family members. Netflix prefers to compare itself to a team, a sports team. Because there, even if you're top-notch, you can be replaced so that the team as a whole gets even better.

I was able to take away a few methods that may seem harsh at first glance but are interesting nonetheless: for example, the so-called keeper test, in which I deliberately put myself in a situation with my manager where my performance is judged on whether it is still sufficient for the company or not. I also really liked the point about leadership by context, not control. To illustrate it, the book compares a hierarchical pyramid with a tree and its roots – truly inspiring and well done.

The honest confession at the end made for a really good conclusion to the book: Hastings and Meyer describe very impressively the difficulties they faced when they wanted to roll out their (American) culture to other countries around the world. The culture map method was also new to me, so I got to learn something again.

All in all, I really enjoyed the insight into the at times tough culture at Netflix. A gripping company portrait focused on the people at Netflix!

I recommend the Culture Map method mentioned above if you want to dig deeper into corporate culture in interdisciplinary teams. Also take a look at the Netflix Culture Deck – a good summary of the most important cultural guidelines.