Culture and Strategy, the Netflix Way with Gibson Biddle
Apr 28, 2021
auto_awesome
Gibson Biddle, product strategy expert, discusses the importance of organizational culture and strategy with Melissa Perri. They cover delighting customers, Netflix's personalization strategy, managing product teams, and the value of building a culture where everyone understands the business context.
Product leaders must delight customers in unique, margin-boosting ways.
Fostering a strong culture ensures everyone aligns on optimal business choices.
Deep dives
Giv's Journey with Product Strategy and Teaching
Giv, a product strategist, shares his rich journey working with companies like Netflix and CHAG. Joining Netflix in 2005 as VP of Product, he later became CPO at CHAG, focusing on product strategy and culture. Giv emphasizes teaching product managers worldwide, using tools like the DHM model to delight customers and enhance margins. He reflects on his flexible lifestyle centered around teaching and skiing.
Product Strategy at Netflix: The DHM Model
Giv discusses the essence of product strategy at Netflix using the DHM model: delight customers in hard-to-copy, margin-enhancing ways. Personalization emerged as a core strategy at Netflix to retain and engage users effectively. Giv shares insights on how this strategy led to improved retention rates and increased customer lifetime value, emphasizing the importance of margin enhancement and customer delight.
Implementing Product Strategy with the Glee Model
Giv introduces the Glee model, highlighting the importance of thinking long-term in product strategy. At Netflix, the Glee model outlined sequential waves from dominating DVD rentals to leading streaming and expanding internationally. This strategic approach guided decisions like investing in original content, showcasing how strategic intent influenced Netflix's product expansions and long-term success.
Building and Nurturing Company Culture
Giv emphasizes the significance of fostering a strong company culture alongside product strategy. He outlines a model (DEL - Define, Edit, Live) for shaping and cultivating culture within organizations. By defining values, continuously refining them through edits, and living by these values, companies can establish a culture that guides decision-making and behaviors, weaving it into daily operations and decisions.
The theme of this week’s Product Thinking Podcast is culture, and Melissa Perri’s guest is Gibson Biddle, author of the “Ask Gib” product newsletter. Gibson is dedicated to teaching product strategy and culture both in and outside of the classroom. He joins Melissa to discuss the importance of having a good organizational culture, and how that affects strategy.
Here are some key points you’ll hear Melissa and Gibson talk about in this episode:
The product leader’s job is to delight customers in hard-to-copy, margin-enhancing ways (DHM). [3:18]
How Netflix developed their high-level strategy for personalization. [8:47]
Gibson’s experience with managing the product team as VP of Product Management at Netflix. Every product leader who worked for him was expected to have clear, defined strategies for their teams. [12:39]
The failure of Project Griffin. [20:37]
Building a culture where everyone is on the same page about making the best choices for the business is difficult, but not impossible. One key practice is context over control; ensure that everyone understands the context that the business is operating in. [25:54]
“At the end of the day, people are not there forever but the culture is; the culture describes the [company’s] values and the values describe the skills and behaviors of everyone in the building,” Gibson tells Melissa. “At our quarterly meetings, we would discuss strategy, but we would also learn to form good judgment. This is what the culture is about; helping individuals make great decisions about products.” [29:41]
"Culture is all about who you hire… who you promote- every time someone was promoted to director or VP there was a celebration because it was about them being a culture carrier, them living the Netflix culture. And [when you would] let people go, they might demonstrate amazing results, but they were living outside of Netflix's values,” Gibson shares. [38:46]
Strategy is important when starting a product organization, but it’s ok if half of it fails. It’s a process and a bunch of hypotheses that you need to learn from. [43:46]
Resources
Gibson Biddle on LinkedIn | Twitter
GibsonBiddle.com
Previous guests include: Shruti Patel of US Bank,Steve Wilson of Contrast Security, Bethany Lyons of KAWA Analytics, Tanya Johnson Chief Product Officer at Auror, Tom Eisenmann of Harvard Business School, Stephanie Leue of Doodle, Jason Fried of 37signals, Hubert Palan of Productboard, Blake Samic of Stripe and Uber, Quincy Hunte of Amazon Web Services