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Culture is a tricky concept to pin down.
We experience it each working day; we feel it when we connect with colleagues on a bleary-eyed Monday morning meeting or in an electric, idea-packed innovation day; and we know how a drastically positive or negative company culture can shape our experience as employees.
But despite this, and the myriad studies that indicate a strong company culture can improve retention, talent attraction, and productivity, the ephemeral nature of culture means it often remains intangible, and therefore ineffective, as a part of business strategy.
A Duke University study finds that 92% of surveyed executives believe if their company improved its culture, it would increase its value. But only 16% thought their culture was up to scratch. There is a state of inertia among business leaders who know the value of culture but are unable to translate this into a specific, documented strategy because they feel it is too complicated and vague to measure, or simply not their responsibility.
A culture playbook is the answer to this inertia.
What is a culture playbook? Answers from Netflix’s culture magnum opus
A properly codified and detailed company culture in a playbook, deck, or other document can create clarity on company values, aid decision-making, and guide leaders, managers, and employees through uncertainty and change. “While your employee handbook serves as a guide to policies and behaviors within the workplace, your culture playbook explores how individuals can evolve and thrive personally and professionally within the company,” explains Joseph Varner, Chief People Officer, Woodside Homes. “It outlines the principles that should guide our actions and interactions, emphasizing not only personal adherence but also attracting individuals who resonate with these values.”
Aga Bajer, Founder & CEO at CultureBrained agrees. “A strong culture playbook zeroes in on what sets an organization apart and maps out the cultural landscape to steer strategic goals,” she says, arguing that it should not just be a document but a “living breathing framework.”
You’re likely already familiar with the most notable example of a culture deck, which belongs to Netflix. The PowerPoint deck, produced by Patty McCord, former Chief Talent Officer, and Reed Hastings, then-CEO and now Chairman, has been viewed over five million times and is arguably one of the most influential pieces of content on the HR industry.
The document is the pièce de resistance of culture playbooks. Plenty of companies fall into the trap of picking a handful of generic buzzwords that are surface-level and offer no real insight into the actual culture of the organization. It’s no wonder that, per a study from Fond, only 11% of employees know all their company’s espoused values. That number would likely drop even further for those who know how to embody those values daily.
The Netflix deck embodies what cultural playbooks should be. It codifies how Netflix’s culture shapes fundamental processes such as vacation, pay, and promotion opportunities, and balances simple, practical cultural practices such as the above with considerations about what abstract concepts such as freedom, responsibility, management, innovation, and teamwork mean in the context of Netflix.
Creating a culture playbook that employees can’t put down
Netflix’s culture playbook – just like other notable examples such as The Hubspot Culture Code or Patreon’s culture deck – offers several considerations for HR, people, and culture leaders to make when crafting their playbook.
1. Outline core values, behaviors, or tents: However your company chooses to describe its values, these should be front and center in the culture playbook – but should not be vague buzzwords like ‘innovation’ or ‘inclusivity’ that could apply to any company. Patreon, for example, has seven core behaviors including ‘Put creators first,’ ‘Move fast as hell,’ and ‘Respect your teammates’ time.’ Company-specific values will live much longer in the memory of employees and give foundational knowledge of their company’s culture and how it exists in the business.
2. Include tangible examples: These values must be supported with detailed examples and guidance on how each value manifests in the organization’s day-to-day work. Just like Netflix's playbook covers policies on development or vacation, Hubspot’s ‘We work to be remarkably transparent’ tenet, for instance, includes specific examples such as sharing financials and DE&I goals having made all employees ‘designated insiders.’
3. Be inclusive of all employees: The culture playbook should be a reflection of the diversity you have within your company. Examples, stories, anecdotes, and advice should feel relevant to all members of the business regardless of their background, seniority, demographics, and so on. If employees do not feel included in the culture playbook, they will not feel that they are a part of the company’s culture.
4. Explain why it matters: A culture deck should always include points on why the company’s culture is so important to achieving the company’s broader business goals, but also how it can benefit the employee. Netflix’s deck states, for example, that “Real company values are the behaviors and skills that we particularly value,” indicating how applying the culture deck can help improve the employee’s career growth.
5. Adjust it over time: Patreon’s former VP of Operations, Tyler Palmer, has previously said that “unless you invest in revising, updating, and reshaping your culture deck, it will become useless,” and confirmed the company updates its deck monthly, supporting the disclaimer on slide two which states “this deck covers what works for Patreon today, and we expect you to create our future slides.” Because of culture’s ephemeral, emergent nature, it will inevitably evolve. Accordingly, you must continue to update your playbook over time, continuously consulting with employees to ensure the slides are relevant to the company’s current context.
By creating a culture playbook that embodies the principles stated above, people leaders can create a document that employees readily turn to, rather than one that gathers proverbial dust and leaves core values or behaviors quickly forgotten.
The deck should be a robust manifestation of the culture that exists – or that you wish to create. The results may surprise you. Varner has found that despite market fluctuations affecting home building and construction, Woodside Homes’ year-over-year engagement scores have shown consistency. “This indicates that my employees are content with the company's direction,” he says, acknowledging the role the playbook has had. “While there are undoubtedly areas for improvement, the fact that our culture is resonating with everyone is immensely gratifying.”
Bajer shares several further benefits. “When employees understand and connect with the organization's values and vision, they are more likely to feel engaged and motivated,” she says. “Culture playbooks foster a sense of unity and belonging among employees, enhancing teamwork and collaboration.” Other advantages include better talent acquisition, improved decision-making, support through transition and change, and a strong employer brand.
And indeed, although it’s been 15 years since Netflix’s culture playbook went viral, there’s no doubting its value. Ensure your company’s culture is a tangible competitive advantage by following their lead.
