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A Keeper Test for Managers

  • NetflixA document for internal Netflix employees was recently released on Slideshare called Reference Guide on our Freedom & Responsibility Culture. This document is a pretty strong culture manifesto. We’ve included the entire 128 pages below and will likely highlight a number of points here in the near future.

    One suggested practice is  The Keeper Test Managers Use. The question managers should ask is:

    “Which of my people, if they told me they were leaving in two months for a similar job at a peer company, would I fight to keep at Netflix?”

    You may end up with two lists. Those you would fight to keep and those you are paying, coaching, correcting and developing now that you wouldn’t fight to keep.  Next, the action item for those you wouldn’t fight to keep:

    “The other people should get a generous severance now, so we can open a slot to try to find a star for that role.”

    Could you do that in your organization? Why not? I’ve frequently heard it said that everyone can’t be a star. We need B and C and D players. Is that really true? Why?

    Yes, you will have people on your teams with varying degrees of experience and at different spots on their development journey but why can’t everyone be a star or star in the making?

    This slight mind-set shift is key to a championship high-performing team vs. a “meets expectations” team. Which do you prefer?

    Take a few moments to read through the slides below. All 128 pages are thought provoking.

    Culture
    Photo credit: urthstripe
14 Comments
  1. #1 Chris Bonney
    August 5, 2009 am31 11:34 am

    This post could not be more timely for me. We are defining our values right now and these slides shed a new light on the process. It can’t simply be words, we need to get our values articulated from the ground up within the organization.

    I also love the “hard work” slide #33.

    To say these slides are inspiring is an understatement.

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  2. #2 James Weddle
    August 5, 2009 am31 11:59 am

    That’s interesting … I would like to see how they deal with business performance and product/service innovation relative to “adequately” performing business lines. Specifically, how/when/why do they launch new LOBs/offerings (and/or kill off old, lower-performing ones).

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  3. #3 Randall Reeder
    August 5, 2009 am31 1:34 pm

    It’s hard to argue with the Netflix culture. Imagine the changes if government (including schools, universities, cities, and yes, Congress) adopted a similar culture.

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  4. #4 mrmaguire
    August 5, 2009 am31 2:07 pm

    I am at slide 54 but already have a few thoughts:

    Netflix exhibited wisdom when they recognized that growth usually requires more process, which often destroys creativity. We have a new generation (Millennials) that won’t stick around long if their ideas aren’t considered or if they’re forced into a “one-size-fits-all” advancement track. I’m not sure how Netflix is keeping this segment of the workforce engaged, but they (and any other organization) needs to realize that this is a group that will only stay with a job 2-3 years tops. If they want to keep talent, they’ve got to create a dynamic environment with lots of flexibility. It will be interesting to see where Netflix, and other companies, go with their management.

    http://generationsatwork.com/articles/millenials.htm

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  5. #5 Patrick Donadio
    August 5, 2009 am31 3:00 pm

    I like the idea of asking yourself and others questions. One of the most powerful under used tool in our communication arsenal is “the question”.

    What other questions could you ask yourself/others that might shift ones thinking and change behaviors that will impact results? Here is the HW5 method to get you thinking of other questions: How,? Who? What? When? When? Where? and Why?

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  6. #6 Matthew Homann
    August 5, 2009 am31 3:12 pm

    Absolutely love this. Wish more companies would commit to a great culture in such a public way.

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  7. #7 Mike Figliuolo
    August 5, 2009 am31 6:32 pm

    This is a great post on the challenge inherent in being a leader – sometimes you have to make decisions and not everyone will be pleased with the outcome of your actions. The difference between a leader and a manager is the leader actually makes that call, explains her/his rationale for the decision, then moves on with life despite criticism that comes their way. The manager hunkers down under the stack of counseling statements for the subpar performer then goes home and gripes about how bad his team is.

    Lead people. Lead. Everyone’s better off when you do!

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  8. #8 Bill Fournier
    August 5, 2009 am31 7:44 pm

    It seems as though thr folks at Netflix have really done their homework. A couple of observations:

    It is clear that Netflix is committed to creating a trusting environment within which each employee has a “voice.” They realize that in their industry, creativity and innovation are the avenues leading to the future. They realize that the next breakthrough can come at any time and from any employee. That makes for an exciting place to work.

    So much has been said in recent years about how today’s workforce is not as loyal to the company as in years past. That may be true, but one could argue that companies are not as loyal to their employees as in years past either. It’s nice to see that Netflix understands that loyalty is a two-way street.

    Finally, two of the most common reasons why high achievers leave an organization is due to lack of opportunity and challenge. Netflix is committed to providing professional development opportunities for their employees. In adition to providing the opportunities, they make it clear that at the end of the day, the ultimate responsibility for an employee’s professional development rests with the employee. Promoting the old adage: if it’s meant to be – it’s up to me.

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  9. #9 Janine Moon
    August 5, 2009 am31 9:02 pm

    Thanks for sharing this, Jim…I love manifestos and organizations with the courage to live them!

    I hear your comments on A,B,C,D players echoed in the halls of some very large organizations, and that’s such an easy way to deal with people–all of whom come with warts and foibles. Reminds me of the blue birds and the red birds from elementary school. Wouldn’t it be interesting if organizations looked to leverage people’s strengths? Yes, everyone would be a blue bird and that would turn upside down the Industrial Age management philosophies that work well with robots but not so well with individuals. It’s easier to rearrange deck chairs (a known) than to man lifeboats (an unknown).

    Having just written a blog post on the young woman suing her college because they haven’t helped her find a job, I can’t help but imagine how she might grow within the Netflix culture. I expect she would learn more about responsibility in a few days than she learned about entitlement in her current 27 years.

    It’s critical to share this conversation and culture so people can realize that organizations do exist where the leaders live their values in very real, common sense and good-for-business ways. I’m passing it along within my networks…thanks!

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  10. #10 Maureen Metcalf
    August 5, 2009 am31 10:56 pm

    It is interesting to target having primarily “A” players on your team. This approach requires not only top notch employees, the company must be an “A” company to attract and retain this level of people.

    Are you a company that can attract and retain the “A” players? Do you want to become that type of company? If so, what do you need to do to move in that direction?

    Maureen

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  11. #11 Tom Williams
    August 6, 2009 am31 11:30 am

    This is a great post. I have seen a few great companies in my time who preach AND practice this type of leadership. Perhaps the problems isn’t so much lack of star employees, perhaps the problem is lack of star managers…

    “A” Managers hire “A+” employees
    “B” Managers hire “C” and “D” employees

    I think the “star performer” assessment needs to start with management first.

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  12. #12 Beth Flynn
    August 7, 2009 am31 11:32 am

    All organizations and businesses should use the Keeper Test. Just think how much productivity (and profits) would increase if we used this test and followed the cultural values of Netflix.

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  13. #13 Jerry Thomas
    August 7, 2009 am31 2:22 pm

    I find the slides interesting, especially some of the value statements. I’d like to see more feedback on how well the “keeper test” works over time. GE still does forced rankings but no longer automatically terminates the bottom 10%. Here’s an interesting but slightly dated management comparison: http://www.bnet.com/2403-13059_23-237201.html

    My favorite slide is #60. In creative environments you will make mistakes sooner or later. At least try something, learn from it, and move on. Working in a large organization with lot’s of “rule creep” and process focus this is very refreshing.

    Thanks for sharing. Maybe you can get someone from Netflix for the Personal Brilliance podcasts.

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  14. #14 cannon
    August 9, 2009 am31 10:41 am

    I love everything in the slide presentation, but it needs to be more than a list. In fact, it has to be internal to each individual. I encourage leaders and potential leaders to read “Leadership and Self-Deception” from The Arbinger Institute. It is a book that will help you change on the inside and make you a better leader, parent, spouse and overall person.

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