Change Management at Netflix

channelize Management at NetflixOrganizations That Manage Change Well NetflixsConstant EvolutionThe yet constant in life is multifariousness, a quote by the philosopher Heraclitus in 400 B.C.E remains true to sidereal day (Graham, 2007). Whether it be in response to a major event or discoin truth that shakes an ecesiss core function, or simply in accordance to additive transformations, spay is inevitable for all told make-ups. While some brass instruments experience the pressures of change more than of ten-spot than others, all presidential terms must recognize, anticipate, and envision for external change forces, as intumesce as set by internal organisational changes to remain relevant and competitive in some(prenominal) given industry or field (Chou, 2011). Leaders of geological formations must rate the industry in which their organization operates within and apply their findings to anticipate possible major changes to minimize disruption, as well(p) as seek mo d practices and technologies to increase productiveness, effectiveness, and boilers suit performance. The adapt force and allow foringness to change is a alliances superior competitive advantage. For all organizations, change is a vital and ongoing process, which if enforced and managed correctly, al brokens an organization to evolve with modern changes and remain winnerful within their field. beingness adjustable and ready for change is a political partys greatest competitive advantage when operating in todays the fast and constantly changing global marketplace (Anderson, 1991). This increased presence of change must be met by highly skilled and organized leaders who use methods and strategies to winningly manage changes and their implications (Chou, 2001). One ships beau monde that has gained and maintained hoi polloi success imputable to their adaptability and forward-thinking methods is Netflix United States most popular internet float attend to.With over 109 m illion users,in over190 countries around the world, stream more than 125 millionhours of TV shows and movies float per day as of 2017, Netflix is theworlds leading internet entertainment subscription blow portion. The blow suffice offers users the ability to stream network and original televisionseries, documentaries, and peculiarity fool a instructions. The gain allows members to watchas much as they want, when they want, and where they want with service accesson nearly anyinternet-connectedscreen. Members atomic number 18 able to play, geological fault and resume watching, all without commercials or commitments (Netflix,2016). The company was founded by Reed battle of Hastings and Marc Randolph in Septemberof 1997 in Scotts Valley, California. The now tenth enormousst internet companywhen based on revenue, began as a DVD letting by mail delivery service and has elapsed to change and adapt its stage business line models and according strategies toexternal and interna l factors ever since its startup (Netflix, 2016). Change has the contentednessto better an organization or demise of it. When change is handled and managed successfully,success and outlet will result. Netflixs success, and blockbusters eventualdemise be examples of how organizations offering akin(predicate) products and servicescan either thrive or fail in the face of external technological and industrialchanges. During Netflixs initial years of operation, both Netflix andBlockbuster offered physical hard simulate movie rentals. Blockbuster, which had seamlesslysurvived the change from VHS to DVD technology, provided its services by meansof sell locations where costumers could browse movie options on shelves, institutetheir selection, and pay the initial requital based on various factors such as howrecently the film was released, or how many nights the customer esteemed to rentit for. Originally, Netflix used a similar business model as Blockbuster,basing their services o n pay per rental basis, hardly rather than having retaillocations, Netflix customers would go to the companys website to make theirrental selection, that would then be mailed to the customers home. However, later a short initial trial of this original method and receiving leave outlusterresponse, Netflix introduced a subscription feature to its business model.Subscription members could rent a movie, keep it for n angiotensin-converting enzymetheless long they wishedor return it to rent a nonher for one monthly fee allowing members to rent asmany movies as they wished for one strict price (Lotz, 2017). The distinguishableiationthis pee-peed between the two companies business models began Netflixs successin the industry and its domination over its indirect competitors, such as Blockbuster.Blockbuster was heavily dependent on revenues generated from hefty late fees to compose a large portion of their revenue as part of their business model. Netflixcould charge less for their s ervices, and eliminate late fees from theirbusiness model delinquent to their decreased cost of operations. Netflixs consumer-friendlymodel of no late fees, low cost and wide media selection overpowered theimmediate convenience of going to a corner store to pick up a movie for a nightfor many consumers (Satel, 2014). By April of 2003, Netflix had kitchen rangeed onemillion subscribers. Blockbuster launched its response to Netflixs competitivethreat by implementing an online unlimited rental subscription service for thefixed price of $19.99 per month in August of 2004, hardly by this clock Netflix hadalready established its place and customer base in the market, impeding onBlockbusters venture effectiveness (Satel, 2014). Netflixs initial DVDrental by mail delivery service began stealing market sh be in theentertainment industry, respectively due to its adaptable business model to fita niche consumer need. However, Netflix deliver the goodsd the success that it has today byanti cipating and adapting to a major upcoming change that was recognized at thetime of its founding. This massive change was the internet and its possibly boundless capabilities. Netflixs founder, Reed Hastings, stated that heoriginally dubbed his company the identify Netflix because even in 1998 he had recognizedthe potential of the world-wide web. Reed one day he expected, and hoped, thathis company would be offering DVD rentals by means of an online streamingservice, therefore he wanted to name the company something that complied withits eventual fate (Fortune.com, 2009). Netflix was created at the time of thewide spread word spirit of the DVD, founders of the company, Reed and Marc, eventested their initial mailing DVD service idea by mailing a CD-Rom back tothemselves because they did non yet own an actual DVD. The founders expectedthat just like VHS DVDs would be around for a long time, but anticipated andprepargond for the day that they were not. The companys name and its or igin highlighthow Netflix as an organization was not only ready for change disruption, butwaiting for it from the very beginning.In 2007, Netflix launchedthe companys online streaming service. Subscribers were mute able to continuemail order DVD rentals, but could overly stream a limited number of hours online all for the fixed monthly subscription price (Huffington Post, 2015). Thiswas the result due to the change of procurable technology and consumer wants.Just like ten years before when the switch was made from VHS to DVD, the nextchange was ensuing. This was the credence and availability of high speedinternet and portable computers capable of streaming media. In 2010, Netflixbegan expanding into the global markets. The company first expanded intoCanada, then in 2011 moved into various other countries around the world (Lotz,2017). Competition rapidly ensued, not only were other online s grouping servicesbecoming available and more widely utilized, such as Hulu and Amazon Pri me Video,but television networks were also beginning to offer online streamingsubscription services, as streaming services had enabled consumers to cancel ordecrease their cable packages while still enjoying media entertainment, just ata lower cost. To maintain and grow their market share and customer base,Netflix began to produce original and scoopful content in the form of series,movies featuring popular actors, and documentaries. Netflix could produce smashhits for their customers because they created shows based on what their users like to watch. By using their own websites analytics of what theirmembers were watching, for how long, when they stopped watching a series ormovie, and more. For example, 70% of media being streamed on Netflix by itsusers are television series (Fortune.com, 2009). These observations helped themto produce highly rated, award winning exclusive series, which helped Netflixto keep their existing members and gain new-made subscribers. Since online streami ngsubscriptions have a very low switching cost for users, it was vital thatNetflix recognized this potential threat and adapted their practices inaccordance (Investopedia, 2016). Although not seamlesslyachieved, Netflix has gained and maintained its enormous amount of success as anonline streaming entertainment subscription service by constantly reinventingitself in accordance to changes in technology, regulation, and consumer wants all while also creating and pioneering changes within their industry to meetand anticipate the needs of the stakeholder (Management Help, n.d.). This hasbeen achieved by having adaptable and separate business models for eachbusiness function, each with their own strategy. These organisational changeswould not have successfully occurred without the proper internal implementation,and management of change. create mentally the best strategic and tactical plans isessential for success, but cannot be achieved without an in-depth discretionof the human side of change management. This refers to the alignment of thecompanys culture, values, doingss and raft to encourage the desiredresults. Managing change is a complex,dynamic, and challenging process (Mabey, 1993). It is neer a choice betweentechnological or people-oriented solutions, but a combination of both (Bullman,2000). Effective change has beencharacterized as unfreezing old behaviors, introducing new ones, andre-freezing the new (Mosca, 2011). Successful organizational change begins atthe top. An organizations leaders and upper management must have a expel andconcise understanding of the change that is occurring and be able to clearly supply it. In measure of change and uncertainty, all eyes go to theorganizations leaders for strength and direction. Leaders must be adjust with one another andmoving in the same direction towards the cat valium goal. Next, the case for thechange must be clearly laid out. A clear explanation of what changes will occurand why they are requis ite must be communicated to each layer within theorganization. In times of change, it is essential for all members of theorganization to know what is expected of them so that feelings of riskand confusion, feelings which can lead to resistance to and denunciation of thechange, can be calmed. A muckle ofvarious factors are associated with reverse rates when it comes to succeedingin change management. Even if change is endorsed by management, anill-conceived implementation plan, lack of commitment from an organizationsleaders, and limited utilization or integrating of already existing systems andprocesses within the organization can lead to the failure to accept and adaptto organizational changes (Mariotti, 1998). Another important aspectof successful change management is knowing the values that matter to theorganization and the overall goals the organization wants to achieve. Focusingon reacting to those opportunities for change relevant to overall organizationalgoals, as oppose d to reacting to every invitation for change, helps companiesto make smart and practical decisions (Mosca, 2011). callable to globalization andoverall resource development, new forces and opportunities for change areoccurring more rapidly than ever, it is important to develop responses andproactive actions that align according to an organizations, or theirstakeholders needs (Bataldon, 1998). Constant change with a lack of reasoningleads to negative organizational performance, as unnecessary change is a drainon company resources, including financial, and human alike. Largeorganizations, which employ a high number of employees, will not perform asthey contract exceedingly bureaucratic. As stated by Steiner, organizations thatare known to be bureaucratized and hierarchical are less flexible, and lesswilling to change, as well as less likely to empower their staff (Steiner,2001). Organizations will not get full value from their employees if theyinsist that employees do only what they are told. at that placefore, leaders must learnhow to manage change, to move forward with successfully. There is no onebest way to manage change in an organization. Organizations mustintroduce approaches to organizational change which matches their specificneeds, and requirements (Mosca, 2011)Netflix as anorganization has demonstrated their capabilities of successful changemanagement based on their multitude of major changes evident throughout thecompanys existence. Netflix has been able to achieve this by their unique andsomewhat unprecedented organizational culture. Netflix, although a largeorganization with nearly five thousand employees (Statista, 2016), is not a veritable(prenominal) industrial pixilated, which is what many of todays traditionalorganizational system and practices are based on, but rather is a creativefirm. The residual between the two is substantial industrial firms thriveon reducing variation, or reducing errors, while creative firms thrive by change mag nitude variation, as stated by the companys founder and live CEO, ReedHastings (McCord, 2015). Due to this difference of firm variety, Netflix mustcreate and adhere to different organizational methods relevant to their newerand less common elan of business creative. Netflixs core culture concept isbased on open and honest communication between all levels and in every aspectof the firms function. Netflix does not have set holiday policies, ratherthey encourage employees to decide their own appropriate amount of vacation, whenthey wish to take it and communicate this to their managers. To encourageemployees to utilize this policy, upper management is boost to set a precedentby taking vacation time themselves and communicating that to their employees.The CEO even reportedly taking four different week-long vacations in 2015. However,this concept is also protected from abuse by Netflixs next major culturefeature. This is the notion of their compensation method. Results are rewarded, but effort producing no result is not. If an employee, although at one time washighly valuable and well liked, no longer fits Netflixs changing needs,they will be given an honest explanation and very generous breakage package.Netflix has found that by focusing on building the best team by having the besttalent has enabled them to continue to adapt and evolve as a company. Once anemployee can no longer benefit the company, they are able to bring in newtalent to keep company moving forward. Employees of Netflix understand thisconcept upon being hired, which is why almost all severed employees areunderstanding and accepting of their termination. Netflix believes in trustingin the hired talent to complete the given tasks in the best way the talent seesfit. Netflix giving their employees the freedom of autonomy allows forflexibility, and innately eliminates the issues resulting from bureaucratic orhierarchical structure, something that can often arise in a firm of Netflixssize (Mosca, 2 011). Netflix found that by replacing rules withtransparency, accountability, and trust, overall productivity and performanceimproves, and expenses decrease. Netflix believes in hiring good, talentedpeople letting common sense and acting in the best interest of the companyguide employee behavior (McCord, 2015). Due to new technology,regulatory changes, societal or stakeholder expectations, as well as competitors rule-driven organizations, operating within a rapidly changing industry, areunable to keep up with the constant adaption required to gain or remainsuccessful, losing customers and market share to those organizations that dohave the capability to evolve. Netflix maintains its ability to change throughits organizational culture concept freedom and responsibility. The companyinvests in hiring the best possible talent, and rewards high-performer weeding out continuous, unimproved low performers.ReferencesGraham, D. W. (2007, February 08).Heraclitus. 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