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First Principles from Netflix on Building Company Culture

Source |Linkedin .com  |  BY:Reid Hoffman, Entrepreneur. Product Strategist. Investor.

Nearly every successful technology company has a strong culture—a true articulation of how employees work together. It’s almost impossible to succeed without one. But that doesn’t mean that they have a good culture. Just ask Reed Hastings. Before he led Netflix to global dominance, he co-founded a software company that grew from garage to IPO, but ultimately couldn’t evolve with the times. As CEO of Pure Software, Reed had built an organization he didn’t want to work for. Selling was a relief, and he promised himself that he’d be far more thoughtful about culture with his next company.

In this week’s Masters of Scale podcast, Reed joins me to talk about how he shaped the culture at Netflix, and why he believes it was the key strength that allowed it to shift from renting movie DVDs via snail mail to being the leading provider of Internet television, accounting for over 1/3 of all Internet traffic in the US.

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