'At most companies, policies and control processes are put in place to deal with employees who exhibit sloppy, unprofessional, or irresponsible behavior.

'henever someone came to me to complain about another employee, I would ask, 'What did that person say when you spoke to him about this directly?''.

Accept or Discard: Recipient is required to listen and consider all feedback but is not required to follow it.

Appreciate: Recipient must show they're thankful to receive the feedback.

Actionable: Feedback must focus on what the recipient can do differently.

Aim to Assist: Feedback must be given with positive intent.

'If you're serious about candor at some point, you do need to implement mechanisms to assure candor happens.'.

'Frequent candid feedback exponentially magnifies the speed and effectiveness of your team or workforce.'.

After all, you could help the business-but you are choosing not to.'

'At Netflix, it is tantamount to being disloyal to the company if you fail to speak up when you disagree with a colleague or have feedback that could be helpful.

'In all creative roles, the best is easily ten times better than average.'.

'Jerks, slackers, sweet people with nonstellar performance, or pessimists left on the team will bring down the performance of everyone.'.

'Your number one goal as a leader is to develop a work environment consisting exclusively of stunning colleagues.'.

We would coach our managers to have the courage and discipline to get rid of any employees who were displaying undesirable behaviors or weren't performing at exemplary levels.' We would hire the very best employees and pay at the top of the market.

Hastings and Patty McCord decided, 'Our number one goal, moving forward, would be to do everything we could to retain the post-layoff talent density and all the great things that came with it.

High performers especially thrive in environments where the overall talent density is high.' We learned that a company with really dense talent is a company everyone wants to work for. He explains, 'After the layoffs, with only the most talented eighty people, we had a smaller amount of talent overall, but the amount of talent per employee was greater.

Although Hastings was devastated to have to lay off the bottom third of his performers, he was shocked to realize afterward that Netflix was doing as much or more work with fewer people.

After the dot-com bubble burst, Netflix was forced to lay off a third of its employees.

Netflix no rule