If all companies followed this path the employees and company would rise to greatness. I highly recommend it.

Reed Hastings was a pioneering force in self-management. 'No Rules Rules' is a joy to read, blending Hastings' firsthand experiences building Netflix with Erin Meyer's insightful perspective. The book explores whether self-management can truly scale and leaves readers curious about how Netflix will evolve in this new era without Hastings as CEO. Highly recommended for anyone interested in innovative leadership and the future of business.

This book is well thought out and teaches you how to create a culture of freedom and responsibility. Well done.

No Rules Rules is not a history of Netflix. It’s an extended account of the corporate values that have resulted in Netflix’s success as told by its cofounder/CEO Reed Hastings and accomplished business writer & academic Erin Meyer. This well written and clearly explained book offers insight into managing a creative company using non-traditional management techniques that give employees greater freedom and responsibility. However, the techniques are likely not as widely applicable as the authors imply. No Rules Rules follows a unique format, in which each author’s voice is clearly pointed out in their sections of each chapter, leading to a kind of dialogue between the two. This format creates balance. Each point is discussed from the insider/pragmatic perspective of Hastings and the more academic perspective of Meyer. Meyer will sometimes backup Hastings’s assertions with research outside of Netflix, or gently pushback against some of his more absolutist tendencies. Meyer appears to have had significant access to employees throughout Netflix while doing her research. However, there’s no section in which she completely disagrees with Hastings, and throughout most of the book the reader is simply getting the same point from multiple perspectives. The book revolves around the benefits of a corporate culture that empowers individual contributors to make decisions without bureaucratic tape and draconian oversight. This is meant to increase efficiency, improve flexibility, and help employees feel more satisfied with their roles. A couple specific examples are employees deciding for themselves the appropriate amount of vacation to take each year (no vacation policy) and signing contracts without getting approval from their managers. To get to this place of what the book calls “freedom and responsibility” there are certain prerequisites defined by the authors. These include a culture of candid feedback and achieving a high “talent density.” These corporate values have obviously served Netflix well, but they may not quite be the panacea they seem from reading the book. Unfortunately, despite Meyer’s involvement, the values are somewhat myopically presented within the confines of Netflix. Probably the most controversial point in the book is its assertion that “adequate” employees (sometimes interchangeably referred to as “good” employees) should be let go to make room for hiring “great” employees. This is presented rather uncritically, without the obvious introspection that it is easy for an industry leading organization like Netflix to have its pick of “great” employees waiting at the gates to get an opportunity to work for it when they let go of the “good” employees. The authors only caveat is that safety or process oriented companies (think nuclear reactor or industrial manufacturing) cannot risk freedom and responsibility. Yet, there are many other creative types of companies that cannot fulfill the prerequisites outlined by No Rules Rules. For example, there are creative companies that due to the limited profits in their industry cannot pay top-dollar and cannot risk letting go of “good” employees because there will be no “great” employees waiting to take their place. No Rules Rules is a good book for learning more about Netflix, how its corporate culture works, and how it has helped to make it successful. It’s sprinkled with enough interesting anecdotes and good writing to keep your attention. The unique format adds value and the non-traditional management techniques are interesting and surely have some merit. Yet, the book’s failure to acknowledge the unique circumstances of Netflix that make its unique culture possible, stop it from being a “great” book. It’s just a “good” book.

Great for leadership, recruitment, and team building.

How should a modern company run? We are told that a modern company needs to be customer centric, employee empowering, deliver broad stakeholder returns and with agility to move from one opportunity to the next. This book provides a provocative answer to these questions direct from the CEO. Reed Hastings and Erin Meyer have actually written two books in one. One book is “NO RULES” and the other is Netflix and the culture of reinvention. The combination is powerful as Reed shares experiences and stories and Erin puts them in a broader context. This keeps the book from becoming preachy. This book is recommended, but not for the reasons one might think. Read this book as a leader, because it is possible to create a level of these results within the scope of your team. This is a book for leaders who want to understand how they can attract and create high performance by adopting these ideas where possible. Reading this book from an organizational transformation point of view, frankly, is futile and hopeless for one simple reason. Your company is not a high talent density company. That is the essential, foundational and core reason for NETFLIX’s success – they have, hire, keep and constantly upgrade their talent. Becoming a high talent dense company requires living the following actions that are the foundation of the book: • You build up talent tensity by creating a workforce of high performers • You introduce candor by encouraging loads of feedback • You remove controls such as vacation, travel and expense policies • You strengthen talent density by paying top of the market, always • You increase candor by emphasizing organizational transparency • You release more controls such as decision-making approvals • You max-up talent density by implementing the Keeper Test • Max-up Candor by creating circles of feedback • Eliminate most controls by leading with context and note control These seem like normal empowerment related topics. Beware the book talks about how NETFIX embodies them to a degree that makes them all but impossible for the vast majority of companies – like 98%. Many will read this book and pay lip service to these principles, some CHRO’s will stand up and say that they are a talent dense company, but these are aspirational at best and insincere at the other end of spectrum. High-density talent is the core of NETFLIX and its ability to execute these strategies effectively. They are good, not because they have good people, they are NETFLIX because they work hard to always have the BEST PEOPLE. There is no average at NETFLIX, all are way above average when they are there and when they fall back to average – “adequate performance gets a generous severance package.” The selected quotes from the book demonstrate the centrality of high talent density to the company and anyone seeking to adopt these ideas. “We learned that a company with really dense talent is a company everyone wants to work for. High performers especially thrive in environments where the overall talent density is high.” Page 7. “We’d found a way to give our high performers a little more control over their lives, and that control made everybody feel a little freer: because of our high-talent density, our employees were already conscientious and responsible.” Page 54. “Once you have a workforce made up of nearly exclusively of high performers, you can count on people to behave responsibly.” Page 69. “Dispersed decision-making can only work with high talent density and unusual amounts of organizational transparency. Without these elements, the entire premise backfires.” P. 131. “One of the reasons this (high density) is so difficult is many companies is because business leaders are continually telling their employees, ‘we are a family.’ But a high-talent-density work environment is not a family.” Page 166. “At Netflix, I want each manager to run her department like the best professional teams, working to create strong feelings of commitment, cohesion and camaraderie, while continually making tough decision to ensure the best player is manning each post.” Page 169. “Leading with context won’t work unless you have the right conditions in place. And the first prerequisite is high talent density.” Page 201. Overall the book is well worth your time. Its entertaining, eminently readable and enlightening. It contains a number of ideas that will become organizational and leadership buzzwords in the future. Just read it with the caveat that very few companies have the capacity or true desire to put these ideas into practice at the organizational level.