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Netflix's Reed Hastings: Stop Calling Your Company a Family. It's Not.

By Reed Hastings · Leadership · 1 min read

You'd lay someone off. You wouldn't lay off your sister. Stop pretending it's the same thing.

Key Points

The family metaphor is dishonest. You'll lay people off but you wouldn't disown your sister.
A professional sports team is the right metaphor. You fight for your position every year.
High talent density enables sophisticated play, like blind passes in soccer.
Honesty about the relationship makes it exciting, not demoralizing.

You want them to work for you like they were a family member, for free and cheap. But you're not really prepared to treat them like a family member.

The Family Lie

Every startup says it. We're a family. We look after each other. Reed Hastings calls this exactly what it is. Baloney.

You'll lay someone off in a downturn. You wouldn't do that to your sister. The family metaphor asks employees to give like family while the company reserves the right to treat them like strangers.

The family metaphor demands family loyalty but offers corporate treatment.

The Professional Sports Team

Netflix uses a different metaphor. A professional sports team. Not your kid's soccer league. A real team where every position has elite talent.

You get paid well. You play to win. One bad game doesn't cost you your spot. But you're fighting for your position every year. That's honest.

Netflix isn't your kid's soccer team. It's a pro league where you earn your spot.

Why Honesty Makes It Better

Most people think this sounds cold. Hastings says the opposite is true. When everyone knows the deal, it gets exciting.

Think about a blind pass in soccer. You send the ball without looking because you know your teammate is there. That takes trust. That takes talent. That takes rehearsal. You can only do that with great players.

Great teammates enable moves that average teams can't even attempt.

The Joy of Playing With the Best

Working with great people is fun. Not stressful. Fun. When everyone around you is excellent, you play at a level you didn't know you could reach.

That's what talent density creates. Not pressure. Possibility. The chance to do sophisticated work with people who match your intensity.

Talent density doesn't create pressure. It creates possibility.