1. ​ HOW TO USE THIS DECK Use the following slides to present and discuss the ideas in the article. Each slide includes talking points in the notes field. Customize the slides as needed. You may want to insert them into your own presentation, add your organization’s branding, revise the slide text or the talking points, or insert new slides. The complete deck takes approximately 15 minutes to present. 1

2. YOUR LOGO HERE © 2015 Harvard Business School Publishing. All rights reserved. Copying or posting is an infringement of copyright. Please contact customerservice@harvardbusiness.org or 800-988-0886 for additional copies. ​ How Netflix Reinvented HR ​ Based on the article by Patty McCord, Harvard Business Review, January–February 2014 2

3. 3 Stellar talent has led to stellar success.

4. ​ “I’d rather work by myself than with subpar performers.” It All Began with One Employee 4

5. The Talent Philosophy at Netflix 5 ​ Hire only “A” players.

6. But There’s a Catch… 6 ​ You have to be willing to let some people go.

7. 7 Be generous with severance.

8. 8 Tenets of HR at Netflix

9. 9 Hire Only Grown-Ups Employees should rely on logic and common sense, not formal policies.

10. The Old Policy for Paid Time Off 10 10 vacation days 10 holidays Sick days

11. The New Guidelines for Paid Time Off 11 Take whatever time is appropriate. Work it out with your boss and colleagues.

12. One Simple Rule for T&E 12 ​ Act in Netflix’s best interests.

13. 13 Tell the Truth About Performance Improvement plans are dishonest.

14. Maria Wouldn’t Benefit from a Performance Improvement Plan… 14 ​ … and neither would Netflix.

15. ​ Frequent, honest conversations 15 ​ Ratings on a five-point scale

16. A New Tool: Informal 360s 16 StopStartContinue

17. 17 Charge Managers with Creating Great Teams Make recruitment their top priority.

18. 18 What skills will your team need six months from now?

19. 19 How can you fill the gaps?

20. 20 Market rates Choice on equity Immediate vesting Netflix’s Compensation Philosophy

21. 21 Charge Leaders with Creating the Right Culture They have to model the behavior they want to see.

22. A Classic Tension at Start-Ups 22 ​ Efficiency and high performance Casualness and fun VS

23. 23 Make sure employees understand what behavior drives success.

24. 24 Subcultures may require different approaches.

25. 25 Think Like Businesspeople First Cheerleading doesn’t improve morale—but good results do.

26. 26 What’s good for the company? How do we communicate that? What defines high performance? The Critical Questions for HR

27. 27 HR people can be innovators, too.

28. 28 Trust employees Be honest Recruit stars Walk the talk Focus on results Netflix’s Recipe for High Performance =

29. 29 Are our HR practices too bureaucratic? What do they focus on most? Could they support our business goals better? Do they help employees understand how to drive results? Would replacing rules with common sense work here? How would things change if we made recruiting stars the top priority for our managers? For Discussion

30. Learn More 30 ​ Harvard Business Review Magazine and Web Articles ​ How Netflix Reinvented HR How Netflix Reinvented HR ​ Patty McCord ​ Reinventing Performance Management Reinventing Performance Management ​ Marcus Buckingham and Ashley Goodall ​ Talent Management for the Twenty-First Century Talent Management for the Twenty-First Century ​ Peter Cappelli ​ Building a Game-Changing Talent Strategy Building a Game-Changing Talent Strategy ​ Douglas A. Ready, Linda Hill, and Robert J. Thomas ​ Harvard Business Review Press Books ​ The Alliance: Managing Talent in the Networked Age The Alliance: Managing Talent in the Networked Age ​ Reid Hoffman, Ben Casnocha, and Chris Yeh ​ It’s Not the How or the What but the Who: Succeed by Surrounding Yourself with the Best It’s Not the How or the What but the Who: Succeed by Surrounding Yourself with the Best ​ Claudio Fernández-Aráoz ​ HBR’s 10 Must Reads on Managing People HBR’s 10 Must Reads on Managing People