Summary of Culture Shock

Culture Shock summary
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Rating

9

Qualities

  • Applicable
  • Concrete Examples
  • Engaging

Recommendation

Companies can seize new opportunities, innovate and become successful disrupters only when their corporate culture attracts and nurtures employees who have what it takes and commit to their jobs. Netflix, one of today’s most successful disrupters, is a former DVD-by-mail rental service that over a few years evolved into a leading video-streaming service. In this episode of the Masters of Scale podcast, host Reid Hoffman asks Hastings about the ingredients of Netflix’s astronomic success. Leaders everywhere can learn from his company’s best practices. 

About the Podcast

LinkedIn co-founder Reid Hoffman hosts the Masters of Scale podcast. Reed Hastings is founder and CEO of Netflix. 

 

Summary

Netflix CEO Reed Hastings learned from experience that founding a great company means focusing on corporate culture from day one.

Reed Hastings made mistakes when he took his software company Purify public in 1995, but he learned from those errors. As Purify had become more successful and profitable, it also became more bureaucratic and less innovative. And as it acquired other companies, its corporate culture eroded.

The company’s main focus shifted to optimizing processes. Thus, Purify attracted and retained employees who excelled at following processes and instructions, but proved unable to see the bigger picture when market conditions changed. After selling the software firm and founding Netflix, Hastings prioritized corporate culture.

Innovation is often a slow process, but disruption can happen quickly when a company achieves a technological breakthrough.

Hastings began Netflix as a DVD-by-mail rental service, and it grew to become a video-streaming service that also produces original content...


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