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Then youve got another type of work. Creative work. It used to be very small and it has grown to be a substantial part of the economy and we are over influenced by the factory paradigm. You want to increase variation, not decrease like in a factory. And it is sterile, to the factory. It is repeatable stuff in a factory and a creative environment you may hinge on the edge of chaos. And what the right paradigm was. It is really incredible to see them. You manage on the edge of chaos, but complicated systems about culture and context that are very helpful. Think of it as a set of paradigms wellsuited to creative work. Our culture is not suitable for safety critical work or manufacturing work and it is the beginning of new paradigms for creative work. Writing a book is using a rather old medium to put your ideas down. We First Published these ideas on slide share and there have been 20 million views of that. We are into the new format. We wanted to do a book length treatment where we rarely took time to edit and write out the stories and reedit in a highly polished, well thought through version of the story. Those who read the culture memo with a fool or explanation where and why it works. Host aaron meyer erin meyer, after your in depth study of netflix, where are your criticisms . Built on what Reed Hastings was saying, whether there is a place for this culture in, for example, more traditional manufacturing company. What struck me when i was doing this research at netflix, any area of any Company Seeking to be more innovative or more flexible or trying to figure out how to reinvent themselves more quickly can benefit from these principles. You might be working i was working with mitchell and tires, safety critical manufacturing environment but there are areas of that company focused on innovation. Any organization, team leader, ceo, anyone who wants to get more innovation can learn from creating this fertile environment that Reed Hastings was talking about. He talks about criticism. One of the things about doing something edgy like this, there are always difficulties that go with that. One of the big things that comes up, if we only have some people are nervous whether they will lose their jobs. There has been a lot of thinking about that, how to reduce the burden of worry while taking advantage of this. Host you have a story in the book comparing npr being a family to netflix being a team. Guest that is right. Reed hastings is better to talk about that but whereas most Companies Think about their organization, seek to think of it as families, we have longterm security, we put up with one another even when we have bad behavior. The team is what Reed Hastings is going for at netflix, you try to get the best of each at a moment and that might be changing yearbyyear or month by month. Host Reed Hastings . Guest i totally agree with what erin meyer said. Whenever you hear an organization, we are a family, it makes people cynical because they intuitively know a family was put to gather, a good family will stick to gather no matter what and it is not the way corporations work. Host in your book no rules rules you write that employees are not allowed to drive the company off a cliff. What does that mean . Host an early quote. Guest choosing how many dvds to buy and he said i dont think that will be a very popular film, ordered less and we ran out and customers were unhappy and i said why did you order so few . He said you said it wasnt going to be very popular. I said you have to do what you think is right to help the customers and the company. You cant be trying to please your boss, me, you are not allowed to let me drive the bus off a cliff. You have to fight for the benefit of the company. In general we say dont seek to please your boss, seek to please the customers and grow the company so you want people to actively think independently, not just to implement a biass wishes. They should tell them but the idea is to get everybody thinking about how to grow the company and if they do you implement the results we have had over the last 20 years. Host Reed Hastings, you are the founder of the company, stockholder, ceo, you dont have an office at netflix but at the same time there are inherent qualities that will make people do what you want. Sure. I lead by direction and example and talk about what is important like customers and how to relax after a hard days work times they want to be pushed in terms of the content that they watch. I try to bring the Customer Experience to our employees, not that i dont want some things. We want everyone else to also want things and in those conflicts or disagreements a lot of things come out of that. Host erin meyer, is it tough for a ceo coach to let go of that result . Guest an interesting process Reed Hastings has implemented. We have strong opinions as Anyone Running a company does. On the other hand, he has made it clear throughout the company that he wants people to be clear with him when they disagree with him. All about if you are disloyal to the company if you feel this agreement for what the organization is doing what the box is doing and dont express that disagreement so you were asking Reed Hastings earlier if people dared given his level of power in the company and it is remarkable how frequently people do get back probably because when it happens he celebrates. Host Reed Hastings, how do you define your job and how much time do you get to just think . Guest a lot of times, night and weekends. This additional work hours i tend to be in meetings and try to understand what people are working on. Various situations, how are we evil thing and i think of it as i want to be highly informed and to know what is going on. That i dont region, reach past this person instead of that person. Too many men, i would say it is not limited to one area and abstract that a little. There is a broad range of storytellers and we should have a broad range of storytelling and get to the underlying lesson. I tried to be a teacher, abstract, what i see. I need to be highly involved in what is going on. I am always trying to form the computational muscle rather than 6 particular problems. Host a question for both of you, the geographical area of Silicon Valley important, indispensable to what you do . Guest one of many indispensable areas and the culture and i come out but at this point it is a fraction, less than half of our employees are Silicon Valley. It is important to what we do. We have a majority in hollywood. We are in energy company, or tech powered. It is pretty good. They have disney plus. All the Entertainment Companies are getting tech confused. When i started working with netflix, the international expansion, which 2016 moving all over the world. Something i write about that im interested in researching, and what led to this enormous innovation to be implemented in countries around the world like japan, singapore and brazil. Very useful to you at headquarters to make this work when it is in contrast, that they are running into. That is part of the national story. Host Reed Hastings, sheryl sandberg, come up in the book. And friendship among ceos. It is quite variable. And those people, longstanding relationships, Silicon Valleys a very competitive place. Netflix doesnt compete with them. We compete with other Entertainment Companies like disney and hbo. It is not too competitors. It is a more challenging relationship. We have to talk about my favorite person in the book, aaron myers. Did you talk about this . I talk to patty, incredible memory. And pushing for this, cant remember it. An important character in the book. Host who is she . Guest our founding head of hr, over a decade, what pushed us, without rules as we focus on giving them a fertile environment and that became for way we oriented everything. Host one of those rules is vacation time. Guest we dont count how many hours someone works in a day. We dont know if someone is working eight hours, 12 hours in a day. In the old days we used to count vacation, whether someone was working 46 year, 4080 year, why are we therebetween 46, 48, 50, if we are not counting 8 or 10 or 12 in a day. From the factory mindset. Lets let everybody take what they want. It worked out great. I tried to set an example of taking a lot of vacation and being visible about that. Not that we have unlimited vacation and they dont, almost no risk. Patty mccord used to say, we dont have that policy but no one has come to work nakedly, the lesson is societal norms for many things, good to work clothing in the office and vacations are part of your rights but work is important too. And evenings and weekends, what have we achieved in the last 22 years . I never think about that. I think about what we have to achieve ahead and how hard it is. It was a good start. And entertain the world, connect people learn so much about entertainment, other peoples lives, other countries or cultures, all kinds of things you learn through entertainment and exposure. When you think of how big the internet is around the world, we have a tremendous opportunity to continue to grow and just getting started. Host a big threat in the long run is not making a mistake but lack of innovations was no rules no rules rules is the book, Reed Hastings and erin meyer are the coauthors. You are watching booktv on cspan2. The latest nonfiction books and authors. Cspan2 created by americas Cable Television company as a Public Service and brought to you by your television provider. Weeknights this month we are featuring booktv programs as a preview of what is available every weekend on cspan2. We focus on neuroscience and healthcare beginning with livewire. Katherine evans and her book bottle of lies. Lisa moscowknee, starting at 8 00 pm eastern. Every weekend on cspan2. It is great to be back as we kick off the fall season. Our speaker is ed freeman with Dartmouth School in uva

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