💯 Netflix’s Keeper Test
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Enjoy the 141st Podup, with special thanks to RhinoRating.
Today, we’ll dive into the best insights and ideas from Lenny’s Podcast.
At Netflix, every day is a performance review. Their culture thrives on a unique blend of real-time feedback, continuous learning, and an unyielding pursuit of excellence.
Elizabeth Stone, CTO at Netflix, reveals how they maintain a high talent density, including their renowned Keeper Test question for assessing new and existing employees.
High talent density
To retain a high bar, you have to do things that aren’t natural human behaviors.
You have to have very uncomfortable conversations like being candid when your expectations aren’t met and being able to receive this type of feedback yourself.Â
We don’t have performance reviews at Netflix. Instead, feedback is part of the day to day operating rhythm. We share very timely, direct feedback.Â
Elizabeth Stone
What is the Keeper Test?
You have to make a call in a timely fashion if someone’s not able to meet the bar.
The Keeper Test is a mental framing to hold ourselves accountable to this.
If a person on my team came to me and said ‘I’m leaving today. I have a different opportunity and I would like to take it.’ I ask the Keeper Test question: ‘Would I do everything I can to keep them at Netflix?’
If not, I should have a tough conversation about whether they should be here or if they’re in the right role.
The Keeper Test is useful because no one likes to think this way. These reflections encourage our desired behaviour.Â
Elizabeth Stone
Why it matters
Netflix’s approach to talent management is a radical departure from the norm. But it works for them. The Keeper Test ensures a commitment to their high standards.
Their culture of immediate feedback has helped them disrupt the entertainment industry, from Netflix originals to offline viewing to its recommendation engine.
It’s not just Netflix who do things differently. One man has shown the entire tech industry how to do more with less. You guessed it, I’m talking about Mr Elon Musk.
He used a 2x2 framework when he took over Twitter to assess employees:
Since his takeover, Musk has laid off around 80% of Twitter’s employees. This matrix helped him identify who wasn’t adding value (non-essential, average) and who could be redeployed elsewhere in the company (non-essential, exceptional).
Next steps
Learn from the best. Read the original Netflix culture deck for inspiration on how to set your own company values and behaviors.
Focus on real-time feedback. If you don’t share feedback in the moment, your team will resent you if you address it for the first time in the future.
Foster two-way feedback. Make sure your direct reports feel comfortable giving you feedback - it’s the best way to create a culture of continuous improvement.
Is the Keeper Test for you? Regardless of your decision to put it into practice, question if your team passes the Keeper Test - it’s an enlightening exercise!
Look inwards. Many CEOs say they rarely ever regret letting someone go. Look in the mirror and ask yourself ‘Would I hire the same team again if I started from scratch?’
Your thoughts?
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Quotes were pulled at different points of the episode. Sentences were left out to make the narrative more concise. Podup is not associated or affiliated with any podcast.