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CHAPTER TWO

Every Single Employee Should Understand the Business | Communicate Constantly About the Challenge |

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When I advise doing away with as many procedures and approvals as possible, I am inevitably asked, “But how? How can that be possible? What takes the place of rules, processes, approvals, bureaucracy, and permissions?” The answer: Clear, continuous communication about the context of the work to be done. Telling people, “Here’s exactly where we are, and here’s what we’re trying to accomplish.” The more time managers spend communicating and elaborating and being transparent about the job to be done, about the challenges the business is facing and the larger competitive context, the less important policies, approvals, and incentives are.

Even if you’re not at liberty to do away with policies, procedures, bonuses, and formal annual reviews, you can implement much clearer, more open, honest, and continuous communication about the business challenges and how employees are meeting them. This facilitates much more timely improvements in performance as well as more limber adjustments of goals. It also encourages people to ask questions and share ideas, which can lead to extremely valuable insights about how to improve your product, your service to your customers, and the business itself. I came to appreciate how important it is for every single employee to truly understand the business when I myself began to learn deeply about the business at Netflix.

Powerful

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