{"id":11379,"date":"2018-05-29T15:41:15","date_gmt":"2018-05-29T13:41:15","guid":{"rendered":"https:\/\/chartmogul.com\/blog\/?p=11379"},"modified":"2023-08-10T17:27:25","modified_gmt":"2023-08-10T15:27:25","slug":"how-basecamp-netflix-amazon-think-about-effective-communication","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/how-basecamp-netflix-amazon-think-about-effective-communication\/","title":{"rendered":"How Basecamp, Netflix and Amazon think about communication"},"content":{"rendered":"<h2>Communicating wasn&#8217;t always this hard<\/h2>\n<p>Most of the time when we communicate in business, we don\u2019t plan how we\u2019re going to make that communication, or what we\u2019re trying to get from it.<\/p>\n<p>It\u2019s really not our fault \u2014 human-to-human communication is so deeply ingrained into our being. And for 99.9999% of our existence on this small blue planet, there hasn\u2019t been much change in the way we communicate.<\/p>\n<p>This may be the root of the problem. Here in 2018, we\u2019ve seen an exponential increase in both the frequency of communication with other people and the methods available for doing so. Thinking about the <em>how<\/em> and <em>why<\/em> of communication has never been so important.<\/p>\n<p>In a business context, we communicate to:<\/p>\n<ul>\n<li>Make a decision<\/li>\n<li>Gather input or context<\/li>\n<li>Inform others<\/li>\n<li>Learn<\/li>\n<li>Socialize<\/li>\n<\/ul>\n<p>(note that I\u2019m only including <em>internal<\/em> communication here)<\/p>\n<p>The choices we have to make in terms of <em>how<\/em> we communicate are somewhat overwhelming.<\/p>\n<p><strong>Synchronous channels:<\/strong><\/p>\n<ul>\n<li>In-person<\/li>\n<li>Voice call<\/li>\n<\/ul>\n<p><strong>Asynchronous channels:<\/strong><\/p>\n<ul>\n<li>Slack (or other team chat apps)<\/li>\n<li>Email<\/li>\n<li>Google Docs<\/li>\n<li>SMS (or other mobile messaging apps)<\/li>\n<li>Documentation<\/li>\n<\/ul>\n<p>Some channels are better for one-to-one communication, while others are suited for one-to-many. Synchronous communication can be disruptive for the receiver, but asynchronous can be hard to manage at scale.<\/p>\n<h2>Making decisions: the heartbeat of every business<\/h2>\n<p>Decision making is how businesses move forward. For startups especially, the speed at which decisions made and acted upon is <em>critical<\/em> \u2014 this should be considered a core competency of your company.<\/p>\n<p>However, there\u2019s more than one approach to the communication around decision making in business. Here are three examples of how things get done in successful businesses today:<\/p>\n<h3>1. The meeting culture<\/h3>\n<p><em>(or the anti-meeting culture)<\/em><\/p>\n<figure id=\"attachment_11407\" aria-describedby=\"caption-attachment-11407\" style=\"width: 720px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11407 size-full-column\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-720x481.jpg\" alt=\"\" width=\"720\" height=\"481\" srcset=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-720x481.jpg 720w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-300x200.jpg 300w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-1024x684.jpg 1024w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-1920x1282.jpg 1920w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-720x481@2x.jpg 1440w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-300x200@2x.jpg 600w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/black-and-white-board-boardroom-2-1024x684@2x.jpg 2048w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><figcaption id=\"caption-attachment-11407\" class=\"wp-caption-text\">Does this image send shivers down your spine?<\/figcaption><\/figure>\n<p>In the startup world, hating on meetings is usually a default position. It\u2019s worth noting that when meetings are on the receiving end of people\u2019s hatred, it\u2019s usually because the meetings they\u2019ve been exposed to have been at best inefficient, and at worst pointless \u2014 an artifact of middle management bureaucracy in large corporations.<\/p>\n<p><a href=\"https:\/\/basecamp.com\/\">Basecamp<\/a> is a company that has delcared all-out war on meetings:<\/p>\n<blockquote><p>\u201cMeetings are one of the worst kinds of workplace interruptions. They\u2019re held too frequently, run too long, and involve more people than necessary. You may have gathered that we really dislike meetings at Basecamp.\u201d<\/p>\n<p>Wailin Wong, <a href=\"https:\/\/m.signalvnoise.com\/meetings-are-toxic-7e93be7c3043\">Basecamp<\/a><\/p><\/blockquote>\n<p>To an extent this makes a lot of sense. There are no doubt countless hours wasted in the minutiae around meetings &#8212; especially those that are designed to serve as status updates, as Founder Jason Fried suggests in his post <em><a href=\"https:\/\/m.signalvnoise.com\/status-meetings-are-the-scourge-39f49267ca90\">Status meetings are the scourge<\/a>:<\/em><\/p>\n<blockquote><p>&#8220;In theory, telling everyone something in person at the same time may feel efficient, but in practice it\u2019s just the opposite. You\u2019re making everyone be present, which means they can\u2019t be doing something else more valuable. You are pulling people away from their work not to work.&#8221;<\/p>\n<p>Jason Fried, CEO of Basecamp<\/p><\/blockquote>\n<p>Jason suggests replacing this kind of meeting with writing up status reports (in their Basecamp product, naturally) so that people can absorb the information in their own time.<\/p>\n<p>I largely agree that status meetings should have no place in a company&#8217;s culture. But when it comes to critical decision making or problem solving, I also believe there\u2019s still no substitute for a well-structured face-to-face meeting. There are many cases where written communication just misses many of the finer points of discussion, and when operated efficiently, they can bring your team to a resolution or decision in a far shorter elapsed time than email or instant messaging.<\/p>\n<p>Perhaps it\u2019s time to declare war on badly planned, poorly executed meetings \u2014 rather than meetings themselves?<\/p>\n<p><strong>Advantages:<\/strong><\/p>\n<ul>\n<li>Face-to-face communication captures nuances, feelings and subtleties that text just can\u2019t<\/li>\n<li>We can hold discussion faster in-person than through written forms<\/li>\n<li>Can be more motivating, bringing a higher sense of collaboration<\/li>\n<\/ul>\n<p><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>Can be a huge time waste if not run efficiently<\/li>\n<li>Can be used as a false signal of productivity<\/li>\n<li>Complex and time consuming to document effectively<\/li>\n<li>Scheduling can be tough for remote teams<\/li>\n<\/ul>\n<h3>The memo culture<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full-column wp-image-11412\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-720x480.jpg\" alt=\"\" width=\"720\" height=\"480\" srcset=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-720x480.jpg 720w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-300x200.jpg 300w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-1024x683.jpg 1024w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-1920x1280.jpg 1920w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-720x480@2x.jpg 1440w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-300x200@2x.jpg 600w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/LAHQ_01-1024x683@2x.jpg 2048w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/p>\n<p><a href=\"http:\/\/netflix.com\">Netflix<\/a> is well known for having a memo culture \u2014 in fact, the company\u2019s public culture document talks about the decision-making process:<\/p>\n<blockquote><p>\u201cSmall decisions may be shared just by email, larger ones will merit a memo with discussion of the various positions, and why the captain made such a decision. The bigger a decision, the more extensive the dissent\/assent gathering should be, usually in an open shared document.\u201d<\/p>\n<p><a href=\"https:\/\/jobs.netflix.com\/culture\">The Netflix company culture memo<\/a><\/p><\/blockquote>\n<p>In the case of Netflix, the purpose of such a memo culture seems to be aligned around speeding up decision making and avoiding costly meetings. This is even more relevant for companies with a large number of remote employees in multiple timezones.<\/p>\n<p>When successfully deployed, <strong>a memo-based company culture can unlock high-speed asynchronous decision making.<\/strong> But it can also overwhelm your team with written artifacts.<\/p>\n<p><strong>Advantages:<\/strong><\/p>\n<ul>\n<li>Each decision is naturally documented and made available to stakeholders<\/li>\n<li>Creating a well-written summary requires excellent comprehension and knowledge from the presenter<\/li>\n<li>Asynchronous \u2014 no need to get people in a room (or on a call) at the same time to make decisions<\/li>\n<li>Encourages innovative ideas, reduces barrier to proposing change<\/li>\n<\/ul>\n<p><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>Some nuances of decision making just don\u2019t translate to written communication (i.e. no real substitute for face-to-face)<\/li>\n<li>Needs careful structuring to scale (volume of memos can become hard to consume or process)<\/li>\n<li>Written memos can be leaked (e.g. most recent PR disasters from inside Facebook have originated from leaked memos)<\/li>\n<\/ul>\n<h3>A hybrid approach<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full-column wp-image-11410\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-720x545.jpg\" alt=\"\" width=\"720\" height=\"545\" srcset=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-720x545.jpg 720w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-300x227.jpg 300w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-1024x774.jpg 1024w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-1920x1452.jpg 1920w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-720x545@2x.jpg 1440w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-300x227@2x.jpg 600w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/bezos-final-0404-1024x774@2x.jpg 2048w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/p>\n<p>Amazon has one of the most interesting approaches to decision making and meetings. Think of it as a sort of <em>memo-driven meeting<\/em> culture. CEO Jeff Bezos has publicly discussed how the company has banned the use of slide decks in meetings, and instead asks employees to bring a six-page narrative memo for execs to read at the beginning of the meeting.<\/p>\n<blockquote><p>\u201cThe reason writing a &#8216;good&#8217; four page memo is harder than &#8216;writing&#8217; a 20-page PowerPoint is because the narrative structure of a good memo forces better thought and better understanding of what&#8217;s more important than what.&#8221;<\/p>\n<p>Jeff Bezos in a <a href=\"https:\/\/www.cnbc.com\/2018\/04\/23\/what-jeff-bezos-learned-from-requiring-6-page-memos-at-amazon.html\">2004 company email<\/a><\/p><\/blockquote>\n<p><strong>Advantages:<\/strong><\/p>\n<ul>\n<li>Employees are forced to put a great deal of thought into their ideas<\/li>\n<li>Ensures that every stakeholder is able to absorb the required information and is on the same page<\/li>\n<li>The process is well defined and clear<\/li>\n<\/ul>\n<p><strong>Disadvantages:<\/strong><\/p>\n<ul>\n<li>A single memo can take weeks and hours of work to produce<\/li>\n<li>Rigidity in the process might not allow for true out-of-the-box thinking<\/li>\n<li>All of the scheduling and timezone issues that come with in-person meetings<\/li>\n<\/ul>\n<h2>Choosing the right communication method: Questions to ask<\/h2>\n<p>Asking some of the following questions can help you decide how you\u2019re going to communicate with others in your business, and what you\u2019re actually trying to achieve.<\/p>\n<p><strong>Do I need to gather input from multiple people?<\/strong><\/p>\n<p>Are you making a decision that requires the input of different colleagues? This may affect your method of communication.<\/p>\n<p><strong>Are we making a decision that impacts others?<\/strong><\/p>\n<p>Will other people need to know about the results of this communication and any decisions that are made? How important is it that the right people are made aware of the outcome?<\/p>\n<p><strong>Is this communication generating knowledge that would be useful to others?<\/strong><\/p>\n<p>Is it likely that this communication would get repeated among other colleagues without the knowledge? Should the information be widely absorbed across the company?<\/p>\n<p><strong>Is this communication time-bound or evergreen?<\/strong><\/p>\n<p>Are you communicating about an event or an issue such that the communication is no longer relevant after a certain point?<\/p>\n<p><strong>What\u2019s the level of urgency?<\/strong><\/p>\n<p>Is the clock ticking on some form of negative timeline? What\u2019s the potential impact of not addressing the communication soon enough?<\/p>\n<p><strong>How can I reduce the steps in this interaction?<\/strong><\/p>\n<p>If you\u2019re presenting a problem, does the recipient have all the context they need? Do you already have some suggested solutions? (hint: it\u2019s much better if you do!)<\/p>\n<h2>Any approach beats no approach<\/h2>\n<p>So what are the lessons here? I think just <em>having an approach<\/em> is a huge leap from where most growing businesses are today. Want to stick with good old fashioned meetings? That\u2019s fine, but why not think about enforcing some best practice around scheduling and running meetings?<\/p>\n<p>The way that businesses communicate and make decisions is an integral part of company culture. It\u2019s not something that can be easily changed, but if left unchecked, bad practices can easily spread throughout the organization.<\/p>\n<figure id=\"attachment_11401\" aria-describedby=\"caption-attachment-11401\" style=\"width: 720px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11401 size-full-column\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-720x471.jpg\" alt=\"\" width=\"720\" height=\"471\" srcset=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-720x471.jpg 720w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-300x196.jpg 300w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-1024x670.jpg 1024w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-1920x1256.jpg 1920w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-720x471@2x.jpg 1440w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-300x196@2x.jpg 600w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2018\/05\/achievement-agreement-arms-1068523-1024x670@2x.jpg 2048w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><figcaption id=\"caption-attachment-11401\" class=\"wp-caption-text\">How much time does your company waste with that whole-team fist bump at the end of each meeting? It adds up.<\/figcaption><\/figure>\n<hr \/>\n<p><em>Next up, I\u2019ll be sharing some best practices for communication here at ChartMogul \u2014 something we\u2019re working hard to get right, and safeguard the productivity of the whole team.<\/em><\/p>\n<p><em>If you\u2019re interested in this, you should add your email to our <a href=\"https:\/\/chartmogul.com\/resources\/saas-roundup\/\">SaaS Roundup<\/a> newsletter so you don\u2019t miss out!<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Should I swing by my colleague&#8217;s desk, or just send a Slack DM? Does this require a meeting? Should I document the outcome of this meeting? Well, it depends&#8230;<\/p>\n","protected":false},"author":9,"featured_media":11382,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[188,304,155],"class_list":["post-11379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gtm","tag-best-practices","tag-communication","tag-company-culture"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Basecamp, Netflix and Amazon think about effective communication<\/title>\n<meta name=\"description\" content=\"Should I swing by my colleague&#039;s desk, or just send a Slack DM? Does this require a meeting? Should I document the outcome of this meeting? 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