Description of change management at Netflix in the year 1999 and 2007. References taken from multiple case studies and articles available (open source) online. The contents include change timeline, perspectives on change, forces of change, change methodology and change levers.

1. Presented by
Aryan | Nupur Jha | Prachi Singla | Prajjwal Vij | Surabhi Dutta
17/03/2022 12 Slides

2. ABOUT Netflix
TABLE OF CONTENTS
01
What the company
says about itself
02
Changesin Netflix
Timeline of Change at
NETFLIX
03
Perspective on change
Cognitive Approach of
NETFLIX
04
Forces of change
External Forces of
Change
05
Change methodology
Lewin’s Change
Management Model
06
Change levers
NETFLIX
Interdependent
Change Levers

3. “At Netflix, we want to entertain the world.
Whatever your taste, and no matter where
you live, we give you access to best-in-class
TV shows, movies and documentaries. Our
members control what they want to watch,
when they want it, with no ads, in one simple
subscription. We’re streaming in more than
30 languages and 190 countries, because
great stories can come from anywhere and be
loved everywhere. We are the world’s biggest
fans of entertainment, and we’re always
looking to help you find your next favorite
story.”
About Netflix

4. Break-up of NETFLIX Audience 2022
MALE
57%
FEMALE
43%

5. Formulation
DVD by Mail
Reed Hastings and
Marc Randolph
Personalization
Recommendation
System using members’
ratings on past titles to
accurately predict future
choices
Change #1
Change as Growth
Pay-For-Use Model
into a Subscription
Model
IPO
1M subscribers
1998 2000
1999 2002
TIMELINE of Change in netflix

6. Partnerships
NETFLIX Button on
Remote Controls
Change #2
Change as
Transformation
Streaming allows
members instant
entertainment
On the gO
Download feature
is added for
offline and on-
the-go viewing
2011
2007 2016
TIMELINE of Change in netflix
200M+
Members
2021

7. NETFLIX used Cognitive Approach to
Change. In this approach, the
Managers think outside the box in this
approach. Diagnosing the problem
through a series of experiments and
processes. The mindset of managers
changes cognitively before engaging
into a change process for the
organization.
PERSPECTIVE ON CHANGE

8. Online streaming in 2007
was technically viable
Social
CustomerDemad
Faster and cheaper
entertainment needs
Competition
Competition like
Blockbuster was
trying to catch up
Technology
Demographic Economic
The social media
revolution of that time
Globalization in
entertainment
Cost of tramspostation
of DVDs had to be cut
Forces of Change

9. Change Methodology
Netflix organizational change is a real-life
example of Lewin’s change management model.
Unfreezing
• Persuade
employees to
accept the
change
Changing
• Support
Employees in
embracing
change
Refreezing
• Employee
adjust to new
working
environment
Especially, in 2007 (change #2), the leadership had to convince
the employees (U shape structure of company) to venture into
streaming as the DVD rental business was working exceptionally
well at that time.

10. Change Levers
Leadership Strategy
The leadership was
open to change,
though Marc Randolph
left Netflix in 2002
Structure
1 2 3
Blue Ocean Strategy-
Creating New Unique
Business Market
Flat Organizational
Structure facilitating
Quick Decision Making

11. Change Levers
People Management Technology
Avoids Top-down
Decision-making
360-degree Feedback
System
Marketing
4 5 6
Pioneer in online
entertainment with
contant developments
like Personaized
Recommendation
System
Multi-channel
personalized marketing
campaigns that market
experience

12. Change Levers
QuALITY Costs
Use of Total Quality
Management to
maintain content which
created loyal audience.
7 8
Customer centric content
+ quick adaptation of
tools like machine
learning to cut costs.

13. Thank You !