Those who do not pass the keeper test i. Getting cut from our team is very disappointing, but there is no shame. Being on a dream team can be the thrill of a professional lifetime. Given our dream team orientation, it is very important that managers communicate frequently with each of their team members about where they stand so surprises are rare.
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No matter how honest, though, we treat people with respect. One might assume that with dream team focus, people are afraid of making mistakes. We try all kinds of things and make plenty of mistakes as we search for improvement. Within a dream team, collaboration and trust work well because your colleagues are both exceptionally skilled at what they do, and at working well with others.
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You share information openly and proactively. People like loyalty, and it is great as a stabilizer. Employees with a strong track record at Netflix get leeway if their performance takes a temporary dip. Similarly, we ask employees to stick with Netflix through any short term dips. But unconditional allegiance to a stagnant firm, or to a merely-adequately-performing employee, is not what we are about. Our view is that brilliant people are also capable of decent human interactions, and we insist upon that. When highly capable people work together in a collaborative context, they inspire each other to be more creative, more productive and ultimately more successful as a team than they could be as a collection of individuals.
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Succeeding on a dream team is about being effective, not about working hard. Being on a dream team is not right for everyone, and that is OK. Many people value job security very highly, and would prefer to work at companies whose orientation is more about stability, seniority, and working around inconsistent employee effectiveness. Our model works best for people who highly value consistent excellence in their colleagues.
To help us attract and retain stunning colleagues, we pay employees at the top of their personal market. We make a good-faith estimate of the highest compensation each employee could make at peer firms, and pay them that maximum. Typically, we calibrate to market once a year. The market for talent is what it is. At all times, we aim to pay all of our people at the top of their personal market.
A sports team with a losing record still pays top of personal market for the players they hope will get them back into a winning position. On the other hand, if the company does well, our broadly distributed stock options become quite valuable. Ultimately, your economic security is based on your skills and reputation, not on your seniority at one company. At Netflix, you learn a lot working on hard problems with amazing colleagues, and what you learn increases your market value.
Knowing that other companies would quickly hire you if you left Netflix is comforting. We see occasional outside interviewing as healthy, and encourage employees to talk with their managers about what they learn in the process. While our teammates are fantastic, and we work together very well, we know we can always do better. We strive to have calm confidence, and yet yearn to improve.
We suck compared to how great we want to become. There are companies where people ignore trash on the floor in the office, leaving it for someone else to pick it up, and there are companies where people in the office lean down to pick up the trash they see, as they would at home. We try hard to be the latter, a company where everyone feels a sense of responsibility to do the right thing to help the company at every juncture. We try to create a sense of ownership so that this behavior comes naturally. Our goal is to inspire people more than manage them.
We trust our teams to do what they think is best for Netflix — giving them lots of freedom, power, and information in support of their decisions. In turn, this generates a sense of responsibility and self-discipline that drives us to do great work that benefits the company. We believe that people thrive on being trusted, on freedom, and on being able to make a difference.
So we foster freedom and empowerment wherever we can. In many organizations, there is an unhealthy emphasis on process and not much freedom. Specifically, many organizations have freedom and responsibility when they are small. Everyone knows each other, and everyone picks up the trash. As they grow, however, the business gets more complex, and sometimes the average talent and passion level goes down. As rules and procedures proliferate, the value system evolves into rule following i.
If this standard management approach is done well, then the company becomes very efficient at its business model — the system is dummy-proofed, and creative thinkers are told to stop questioning the status quo. This kind of organization is very specialized and well adapted to its business model.
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Eventually, however, over 10 to years, the business model inevitably has to change, and most of these companies are unable to adapt. To avoid the rigidity of over-specialization, and avoid the chaos of growth, while retaining freedom, we work to have as simple a business as we can given our growth ambitions, and to keep employee excellence rising.
We work to have a company of self-disciplined people who discover and fix issues without being told to do so. We are dedicated to increasing employee 3 freedom to fight the python of process. Some examples of how we operate with unusual amounts of freedom are:. You might think that such freedom would lead to chaos. Most people understand the benefits of wearing clothes at work.
There are a few important exceptions to our anti-rules pro-freedom philosophy.
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We are strict about ethical issues and safety issues. Harassment of employees or trading on insider information are zero tolerance issues, for example. Transferring large amounts of cash from our company bank accounts has strict controls. Ask and answer these questions before you start an HVAC business. When I was in survival school, the most important thing that they taught us was that a positive mind is the absolute, most important thing in any survival situation. Two minds are better than one. It has always been this way.
Are they honest , or just talented? Whenever Mike and I talk to someone who is interested in starting an All Systems Mechanical branch of their own, I start by trying to talk them out of it. My point is, some people will do whatever it takes to make money. But they never make out in the long run. It always catches up to them in the end. You are a team…act like one from the start.
Okay…now to the meat and potatoes…. So before moving forward, just forget for a moment that we are talking about an HVAC business , and instead think just about starting a business. Do research on how to start a small business — think less about ductwork and air conditioners, and more about fundamental small business principles. Kind of like this video, for a start — videos like this, despite not being specifically about how to start an HVAC business, will be very helpful in getting you started:.
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1 – Put Scalable Systems and Procedures in Place for Your Operations
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