Recipes for innovation, if you dare

This book has content for every leader to ponder. But which of Netflix's practices can be replicated, adapted or dropped entirely?

Published Thu, Dec 3, 2020 · 09:50 PM

Innovation

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 …