Recipes for innovation, if you dare

FOR a book that advocates dismantling rules, No Rules Rules: Netflix and the Culture of Reinvention comes with rather specific instructions on how to run an innovative, high-performing company in a constantly changing world. Its recipes, however, are not for the weak of stomach.

Build talent density: First, fire your average employees, and do so quickly - don't bother with a performance improvement plan. Pay top-of-market for talent, but only for the best. No more bonuses or salary bands: the former tethers already-motivated employees to quickly outmoded targets, while the latter just leads to wage stagnation.

Begin removing the rules: Now that you have a team of "rock stars", give them virtually complete autonomy. That means no vacation policy. No expenses policy. No procurement approvals. No need for managers to approve multi-million-dollar decisions. You've hired the best; now leave them to their best judgment, to act in the organisation's interests.