'We are constantly working..': Why Netflix changed its culture memo and what it means

In June, Netflix had announced significant changes to its famous culture deck after a year-long evaluation that incorporated input from 1,500 employees. The revised guidelines have sparked criticism from some quarters, prompting co-CEO Ted Sarandos to defend the update. Sarandos states, "We wanted to reflect how we work, not dictate how we work," emphasising the company's aim to capture its evolving workplace dynamics rather than impose rigid policies.

What is Netflix's new culture update?

The changes made by Netflix to its culture memo included the removal of the "Freedom and Responsibility" section, a long-standing principle that defined its workplace philosophy.

Instead, the changes introduced a new focus on "People Over Process," which prioritises hiring individuals who demonstrate "unusual responsibility" and can excel in an environment that values openness and independence.

Additionally, Netflix updated its "Keeper's Test"¡ªa performance evaluation tool first adopted in 2009.

The revised version emphasises ongoing conversations between employees and managers to regularly assess job satisfaction and performance, promoting a culture of continuous feedback and growth.

Why were new changes brought in to Netflix¡¯s culture memo?

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Addressing concerns about Netflix's evolving workplace culture, co-CEO Ted Sarandos defended the recent changes to the company's culture memo during an appearance at the Wall Street Journal¡¯s Tech Live conference.

He acknowledged that adapting the culture was necessary, saying, "We are constantly working on improving the culture. And so when anyone says, 'Hey, the culture is changing.' Yes, of course it needs to."

Sarandos explained that the revisions aim to better reflect the current way Netflix operates rather than impose a rigid framework.

He noted that the original culture memo was suitable for the company¡¯s early days when it had about 300 employees, but with Netflix now employing around 14,000 people globally and being the world's largest streaming service, adjustments were needed to accommodate the company¡¯s growth and changing dynamics

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