Persevere or Pivot, Netflix Lessons & Sports Team Culture - E632
"It's really about a mindset that every company is a sports team, not a family. And if anybody in a company is telling you that their culture is a family, don't drink the Kool-Aid. Remember that no matter what the HR team says, you are a family, in the back of your head always say, this is a sports team." - Jeremy Au, Host of BRAVE Southeast Asia Tech Podcast
"So one of the tricky parts I like about what Netflix has done is that they defined their corporate culture as not a family. They see it as a sports team. The reason is simple—if you are my brother or sister, if you are my family, I can’t fire you. But if you’re a sports team, we need a striker; if you’re injured, we need a new striker; we need a defender; we’re competing, and we need to do a transfer. The crux is to accept that companies are closer to sports teams rather than families, while still treating employees well." - Jeremy Au, Host of BRAVE Southeast Asia Tech Podcast
"And I think where a lot of people screw up is that because they feel like it's a family dynamic, they avoid the difficult conversation. They avoid talking about performance reviews or having hard conversations. As a result, they end up blindsiding the employee, which comes across as unprofessional. But if you think about it from a sports team’s perspective, you do the right thing. You’re a professional. You tell them early, you coach them, you give them a chance, maybe even a second chance. And if not, you set a boundary and say, ‘Let’s give you a handshake, let’s have a termination package that’s fair, let’s find you a new job at a new place, and let’s keep the relationship alive.’ The more professional you are in that process, the better." - Jeremy Au, Host of BRAVE Southeast Asia Tech PodcastJeremy Au discussed the founder’s dilemma of when to persevere or when to pivot, and why company culture works better when treated as a sports team rather than a family. He illustrated the points with startup case studies like Instagram, Netflix, YouTube, and Rippling, showing how companies evolved by changing either product or customer. He also emphasized professionalism in managing team changes and exits.