Notes From Jerome: December, 2019

I’ve never been a fan of businesses stating their “Company Values.” Every business seems to list the same somewhat empty terms like “commitment, integrity, and hard work.” I came across (as did 19 million others), a terrific employee training slide deck from Netflix that drives this point. I want to share with you the their insightful use of “Company Values.”

First Insight: These nice-sounding words were displayed on the lobby wall as the “Company Values” of a large company: “Integrity, Communication, Respect, Excellence.” The company was Enron, whose leaders were jailed and which went bankrupt from fraud. These values were clearly not what was valued at Enron.

Actual company values, as opposed to nice-sounding words, are the behaviors and skills that are valued in fellow employees! These values are shown by who gets hired, rewarded, promoted, or let go.

Second Insight: Netflix identified 9 such behaviors and skills desired among their colleagues:

1. Judgment:

1. You make wise decisions (people, technical, business, and creative despite ambiguity)
2. You identify root causes, and get beyond treating symptoms
3. You think strategically, and can articulate what you are, and are not, trying to do
4. You smartly separate what must be done well now, in what can be improved to later

2. Communication

1. You listen well, instead of reacting fast, so you can better understand
2. You are concise and articulate in speech and writing
3. You treat people with respect independent of their status or disagreement with you
4. You maintain calm employees in stressful situations

3. Impact:

1. You accomplish amazing amounts of important work
2. You demonstrate consistently strong performances so colleagues can rely upon you
3. You focus on great results rather than on process
4. You exhibit bias-to-action, and avoid analysis – paralysis

4. Curiosity:

1. You learn rapidly and eagerly
2. You seek to understand our strategy, market, customers, and suppliers
3. You are broadly knowledgeable about business, technology and entertainment
4. You contribute effectively outside of your specialty

5. Innovation:

1. You re-conceptualize issues to discover practical solutions to hard problems
2. You challenge prevailing assumptions when warranted, and suggest better approaches
3. You create new ideas that prove useful
4. You keep us nimble by minimizing complexity and finding time to simplify

6. Courage:

1. You say what you think even if it is controversial
2. You make top decisions without agonizing
3. You take smart risks
4. You question actions inconsistent with our values

7. Passion:

1. You inspire others with your thirst for excellence
2. You care intensely about Netflix’s success
3. You celebrate wins
4. You are tenacious

8. Honesty:

1. You are known for candor and directness
2. You are non-political when you disagree with others
3. You only say things about fellow employees you will say to their face
4. You are quick to admit mistakes

9. Selflessness:

1. You seek what is best for Netflix, rather than best for yourself or your group
2. You are ego-less when searching for the best ideas
3. You make time to help colleagues
4. You share information openly and proactively

These are actual company values we may all use to improve our job performance. I admire Netflix for incorporating these values into their everyday existence by using these guidelines to hire, reward, promote, and end employment.