Why treating your employees "like family" can hurt your business

Success leaves clues, and one of the most successful companies today is Netflix, worth an estimated $400B.
I donโt know about you, but my martial arts schools arenโt worth that. So I look for people who are WAY ahead of me to see what I can learn from them.
If youโve ever read No Rules Rules by Reed Hastings (Netflixโs co-founder), you know that Netflix runs their company differently than most.
They donโt track vacation days.
They donโt micromanage.
They donโt waste time with unnecessary policies.
Instead, they built a culture of freedom and responsibility, where employees are trusted like adults, held to high standards, and expected to own their results.
And thatโs exactly how you should be leading your martial arts school.
If youโre constantly reminding your team to do their jobโฆ
If you feel like youโre the only one who truly caresโฆ
If youโre exhausted from micromanagingโฆ
Then itโs time to level up your culture.
โWeโre a Team, Not a Familyโ
Consider this metaphor from Reed Hastings, the CEO of Netflix, in a famous presentation on Netflixโs culture:
โWeโre a team, not a family.โ
That hits hard, especially in martial arts, where we love to say, "Our school is like a family."
But think about itโฆ
In a family, you donโt cut underperforming members.
You donโt bench your brother if heโs slacking.
You accept people no matter what, even if theyโre hurting the group.
In a high-performing team, itโs different.
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Everyone has a role.
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Everyone is accountable.
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If someone doesnโt perform, they donโt stay.
And thatโs the kind of culture you need if you want your school to run at a high level.
Hereโs how to apply the Netflix model to your school:
โ
1. Hire people you TRUST, then treat them like adults
Netflix only hires A-players, then they give them freedom to perform and the training they need to be successful.
Most martial arts school owners do the opposite.
They hire whoever has a beating heart, then micromanage them because they donโt fully trust them.
๐ What to do instead:
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Be pickier with hiring. Take your time.
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Set clear expectations upfront so they know what success looks like.
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Give them ownership over their role.
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Have CLEAR training procedures to follow.
When you trust your team, they step up.
โ
2. Remove the excuses (and replace them with responsibility)
Netflixโs culture isnโt lazy freedom, itโs earned freedom.
At Netflix, if someone consistently underperforms, they get cut loose, no endless warnings, no babysitting, no made-up dumb rules to accommodate poor performers.
๐ How this applies to your school:
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If an instructor is always late, donโt just tolerate itโaddress it.
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If they canโt keep students engaged, donโt just accept itโtrain them.
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If they still arenโt meeting the standard? Replace them.
Your culture is shaped by what you allow. If you want a team that runs itself, you have to hold people accountableโno exceptions.
โ
3. Lead with context, not control
Netflix doesnโt handhold employees. Instead of giving orders, they share the bigger picture so their people make smart decisions on their own.
๐ How to apply this:
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Instead of saying โDo this warm-up drillโ, explain WHY itโs important.
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Instead of saying โStop using your phone at workโ, explain how it hurts student experience.
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Instead of saying โWe need more leadsโ, explain why student growth matters for the schoolโs future.
When your team understands the WHY behind the rules, they start making better choices on their own.
Bottom Line:
If you want a high-performance team, you need high standards, strong accountability, and a culture of trust.
Netflix built a $400 billion company using this method.
You can build a high-performing martial arts school the same way.
As always, no strategy, all fluff, 3 min read,
Matthew Brenner
P.S. I am completely booked and can no longer accept any more clients for the Triangle Codex. If you want to get 30 new students in 60 days without ads, you can join my waitlist to get more info for April. Reply โwaitlistโ with your cell number and I'll add you on there.
P.P.S. Donโt keep the free Black Belt Business Newsletter a secret! Share it with your martial arts friends by sending them this link โก๏ธ https://www.doubleyourdojo.com/newsletters/3-min-black-belt-business-newsletter/subscribe
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