[Quartz at Work] What Silicon Valley Gets Wrong (& Right) About Culture

[Quartz at Work] What Silicon Valley Gets Wrong (& Right) About Culture

May 28, 2018

Startup culture does not always transfer to a mature company. Zenefits, once a rising tech star valued at $4.5 billion, has dysfunctional company culture to blame for its crash. The principles of “act first, apologize later” and “work hard, play hard” can be catastrophic as a company grows. But not all is bad about startup company culture. That is why companies try to emulate it. Take Netflix, for example, with its flat organizational structure and informal processes.

Company culture involves six interconnected building blocks. Below distinguishes where Zenefits went wrong and where Netflix goes right:

Resources:

Within nine months, the number of employees at Zenefits tripled but it did not train the staff properly. Netflix, on the other hand, emphasizes hiring and retaining the right talent.

Processes:

While Netflix has flexible procedures, it enforces rules for processes that set the company up for success (i.e., training and compliance). Zenefits neglected these important aspects of the company structure.

Success:

Zenefits defined success with high valuations and impossible revenue targets. Netflix unapologetically requires employees to work at the top of their game and rewards generously for it.

Values:

While Zenefits focused solely on aggressive growth at any cost, Netflix famously rejects “brilliant jerks” who are toxic to a team.

Behaviors:

Netflix encourages behaviors that serve the business, not the boss, and expects employees to have an opinion and be candid about it. Zenefits’ executives made it acceptable to lie to customers and dismiss the law.

Climate:

Because of the obsession with growth, Zenefits created an environment of constant panic. Netflix values transparency and promotes excitement for work through offering ambitious projects.

Learn more about the difference in company culture and values between Zenefits and Netflix in the original article from Quartz at Work.

 

See this original article on quartz at work

 

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