قالب وردپرس درنا توس
Home / Business / A culture that promotes performance

A culture that promotes performance




<div _ngcontent-c14 = "" innerhtml = "

Photographer: Jason Alden / Bloomberg

Netflix is ​​under fire for its pressure cooker culture, and a recent Wall Street Journal article has been cut off The company opens up to reveal a culture that promotes extreme openness, uncomfortable feedback loops, and an incessant firing process, which certainly does not sound easy ̵

1; perhaps that's the point.

Extreme openness and "radical transparency"

The philosophy of "radical transparency" is bleeding through the Netflix organization and its openness is taking shape. "Sunshining," for example, is a term used by Netflix to describe a business practice that encourages employees to broadcast a system Mistakes they may have made to colleagues in the name of transparency.

Salaries another problem. Most organizations, especially those without a structured pay scale, choose to call their salaries private. Not just between functions and teams that consume resources, but also between employees. At Netflix, directors have a direct view of the salaries of all employees. That's about 500 people, as quoted in the Wall Street Journal .

reviews are also public. Employees are rated annually with a "360" tool, a common practice in many organizations. What is less common is that these reports are accessible company-wide from administrators to the CEO.

Reed Hastings, CEO of Netflix, has introduced these practices to "engage everyone in debates about Netflix's path, from price increases to its." China's strategy for the appearance of the Netflix logo, as mentioned in the Wall Street Journal . The feedback from the employees is welcomed, a policy that also applies to the individual employees.

A culture of continuous feedback And the "keeper test"

The 360 is a small part of the employee review process. The continuous feedback loop is much larger. The culture encourages constant feedback. "The employees are asked to blunt each other," it was reported. For some, especially for those new to the culture, ongoing feedback can be daunting. The goal, however, is to provide employees with continuous improvement opportunities, not just a single annual review.

The "Keeper Test" is another cultural peculiarity with which managers value an employee's performance. Managers are asked to ask themselves: would you fight for this employee? The "Keeper Test, " is not always a source of comfort, according to the article. "Many employees say that they view the Keeper test as a mask for ordinary workplace policies, while some managers say they are under pressure to shoot people or risk looking soft."

The Culture of Netflix The idea of ​​being fired is never far away.

Reed Hastings, CEO of Netflix (AP Photo / Manu Fernandez, File)

The Firing Process

Firing is often abrupt and may seem heartless. One example was the termination of Neil Hunt, the chief product officer involved in the development of the Netflix algorithm for curation. Not only was he an early colleague, but also a friend of Hastings.

Changing of the guard, it was reported, has been attributed to the need for different capabilities as Netflix positions itself for stronger growth in Hollywood and international markets. Hunt was told that he would later be replaced by one of his reports, whose qualifications were better suited to the needs of the role.

The episode of Hunt was not particularly unusual. At Netflix, it is customary to systematically evaluate and reassess the adequacy of employees, not on yesterday's market challenges, but only on those of today and tomorrow.

This is a classic example of an up-and-down culture. For the untrained eye, the culture may appear overly competitive. But few cultural approaches are more powerful.

Solving the Wear Problem

Given the cultural histories of the Amazon and today's Netflix culture, it may also be easy to assume that these cultures are new. However, many of these practices are ahead of both companies, especially for a long time by consulting firms.

  • Perpetual Feedback : In consultation, feedback is embedded in every step of the process. It's unusual for a week to go by without feedback on technical skills, presentation skills, teamwork, customer interaction and even style of clothing. To be publicly reprimanded is not unknown either.
  • Up-Or-Out : promotions are also discussed by the committee. If you do not keep up with the expected pace of promotion, you will let go. Lower performers are routinely discarded. And the opportunity to get fired is never far away.

This type of management is not particularly pleasant, but extremely effective, resulting in an extremely high standard of performance. From my own experience, I've seen consultants go through work two or three times as fast as an average company. This efficiency is rarely achieved without similar crash barriers.

The atmosphere often attracts high talent, but suffers from equally high churn rates. A key feature of these cultures is, as a rule, how unsustainable they are. In the consultation, the churn rate can be up to 50%.

For comparison: In the last two years, Netflix has maintained a voluntary churn rate of 3-4%. Even the involuntary exit rate is 8%, comparable to the US average of 6%.

Netflix not only managed to implement a high-performance culture, but also to keep top talent successful. Most companies only succeed in one way or another. Rarely both. This is the true cultural achievement of Netflix.

Netflix Headquarters (Photo by FG ​​/ Bauer-Griffin / GC Images)

High Performance Cultures

To run a successful business, you do not need a business-performing culture. There are many companies today that are doing well when it comes to talent. But to run an innovative business, a powerful talent magnet is crucial to a culture.

High-performance cultures are high-pressure places. It takes a certain person to compete in this competitive environment. It's a lot easier to accept a more comfortable path than Star Performer in a company with a different talent pool.

Netflix has not shied away from creating a competitive culture that is authentic to itself and attracts the talents it needs for its ambitions. According to the Wall Street Journal Netflix attributes his success partly to this unique culture. "Many current and former employees appreciate that the company has powerful people who can make decisions quickly. They allow an agility that has helped disrupt the global television and film industry.

All happy families are all the same. I've read that every unhappy family is unhappy in its own way. They hope to end up in a happy family, a family that does not fire you. They hope to find comfort in your family. Netflix is ​​not your family.

The most innovative cultures rarely feel well. Comfort lies in complacency. Crossing borders causes discomfort. It may surprise the critics that some people voluntarily opt for such a bumpy ride .

But Netflix never promised comfort, it only guarantees adventures.


F ollow Stephanie Denning on Twitter: @stephdenning

And also read:

Incubation culture: how Netflix wins the war for talent

Ray Dalio questions traditional career wisdom [19659051] Success in Failure: Lessons Learned by Ray Dalio

">

Photographer: Jason Alden / Bloomberg

Netflix Under Fire for Its Pressure Cooker Culture: A Recent Article of the Wall Street Journal [19659056] opened the company to reveal a culture that presents extreme openness, uncomfortable feedback loops, and a potentially callous firing process. The work there certainly does not sound easy, maybe that's the point.

Extreme openness and "radical Transparency "

The philosophy of" radical transparency "is bleeding through the Netflix organization Many forms: Sunshining, for example a term used by Netflix to describe a business practice that encourages employees to report a mistake that they may have made to colleagues in the name of transparency.

Salaries are different. Most organizations, especially those without a structured pay scale, choose to keep their salaries private. This can not only cause problems between the functions and teams, but also between the employees. At Netflix, directors have a direct view of the salaries of all employees. That's about 500 people, as quoted in the Wall Street Journal .

reviews are also public. Employees are rated annually with a "360" tool, a common practice in many organizations. What is less common is that these reports are accessible company-wide from administrators to the CEO.

Reed Hastings, CEO of Netflix, has introduced these practices to "engage everyone in debates about Netflix's path, from price increases to its." China's strategy for the appearance of the Netflix logo, as mentioned in the Wall Street Journal . The feedback from the employees is welcomed, a policy that also applies to the individual employees.

A culture of continuous feedback And the "keeper test"

The 360 is a small part of the employee review process. The continuous feedback loop is much larger. The culture encourages constant feedback. "The employees are asked to blunt each other," it was reported. For some, especially for those new to the culture, ongoing feedback can be daunting. The goal, however, is to provide employees with continuous improvement opportunities, not just a single annual review.

The "Keeper Test" is another cultural peculiarity with which managers value an employee's performance. Managers are asked to ask themselves: would you fight for this employee? The "Keeper Test, " is not always a source of comfort, according to the article. "Many employees say that they view the Keeper test as a mask for ordinary workplace policies, while some managers say they are under pressure to shoot people or risk looking soft."

The Culture of Netflix The idea of ​​being fired is never far away.

Netflix boss Reed Hastings (AP Photo / Manu Fernandez, file)

The Firing Process

Firing is often abrupt and may seem heartless. One example was the termination of Neil Hunt, the chief product officer involved in the development of the Netflix algorithm for curation. Not only was he an early colleague, but also a friend of Hastings.

Changing of the guard, it was reported, has been attributed to the need for different capabilities as Netflix positions itself for stronger growth in Hollywood and international markets. Hunt was told that he would later be replaced by one of his reports, whose qualifications were better suited to the needs of the role.

The episode of Hunt was not particularly unusual. At Netflix, it is customary to systematically evaluate and reassess the adequacy of employees, not on yesterday's market challenges, but only on those of today and tomorrow.

This is a classic example of an up-and-down culture. For the untrained eye, the culture may appear overly competitive. But few cultural approaches are more powerful.

Solving the Wear Problem

Given the cultural histories of the Amazon and today's Netflix culture, it may also be easy to assume that these cultures are new. However, many of these practices are ahead of both companies, especially for a long time by consulting firms.

  • Perpetual Feedback : In consultation, feedback is embedded in every step of the process. It's unusual for a week to go by without feedback on technical skills, presentation skills, teamwork, customer interaction and even style of clothing. To be publicly reprimanded is not unknown either.
  • Up-Or-Out : promotions are also discussed by the committee. If you do not keep up with the expected pace of promotion, you will let go. Lower performers are routinely discarded. And the opportunity to get fired is never far away.

This type of management is not particularly pleasant, but extremely effective, resulting in an extremely high standard of performance. From my own experience, I've seen consultants go through work two or three times as fast as an average company. This efficiency is rarely achieved without similar crash barriers.

The atmosphere often attracts high talent, but suffers from equally high churn rates. A key feature of these cultures is, as a rule, how unsustainable they are. In the consultation, the churn rate can be up to 50%.

For comparison: In the last two years, Netflix has maintained a voluntary churn rate of 3-4%. Even the involuntary exit rate is 8%, comparable to the US average of 6%.

Netflix not only managed to implement a high-performance culture, but also to keep top talent successful. Most companies only succeed in one way or another. Rarely both. This is the true cultural achievement of Netflix.

Netflix Headquarters (Photo by FG ​​/ Bauer-Griffin / GC Images)

High Performance Cultures

To run a successful business, you do not need a business-efficient culture. There are many companies today that are doing well when it comes to talent. But to run an innovative business, a powerful talent magnet is crucial to a culture.

High-performance cultures are high-pressure places. It takes a certain person to compete in this competitive environment. It's a lot easier to accept a more comfortable path than Star Performer in a company with a different talent pool.

Netflix has not shied away from creating a competitive culture that is authentic to itself and attracts the talents it needs for its ambitions. Netflix attributes some of its success to this unique culture, according to the Wall Street Journal . "Many current and former employees appreciate that the company has powerful people who can make decisions quickly. They allow an agility that has helped disrupt the global television and film industry.

All happy families are all the same. I've read that every unhappy family is unhappy in its own way. They hope to end up in a happy family, a family that does not fire you. They hope to find comfort in your family. Netflix is ​​not your family.

The most innovative cultures rarely feel well. Comfort lies in complacency. Crossing borders causes discomfort. It may surprise the critics that some people voluntarily opt for such a bumpy ride .

But Netflix has never promised comfort, it only guarantees adventures.


F ollow Stephanie Denning on Twitter: @stephdenning

And also: Incubation culture: How Netflix wins war for talent

Ray Dalio questions traditional career wisdom

Finding success in failure : Lessons of Ray Dalio


Source link