Erin Meyer studied Netflix’s culture and shares the principles behind many of Reed Hasting’s radical ideas that have shaped Netflix’s culture: Why adequate performance gets you a generous severance package, talent density and how an unlimited vacation policy actually works.
Welcome to Episode 443 of the podcast. Listen and access the show notes below or search for the Carey Nieuwhof Leadership Podcast on Apple Podcasts or wherever you get your podcasts and listen for free.
Plus, in this episode’s Ask Me Anything About Productivity segment, Carey answers Ian’s question about juggling life, family and work without neglecting God.
Have a question about productivity? Let Carey coach you. Leave your message here!
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Insights From Erin
1. A culture of rules gets you an organization built on obedience
We’re conditioned to believe that an organization runs smoothly when we make sure everyone knows what is and is not allowed through lists of rules. In reality, a focus on error prevention results in a culture that penalizes innovation and rewards obedience.
While rules and processes are non-negotiable for safety-critical industries like construction and pharmaceuticals, in other organizations, innovation and freedom are how you ensure growth. When you stop innovating, you are unable to shift with the changes in the industry environment and eventually lose your top talent and your relevance. Erin quotes Reed Hastings, “If you dummy-proof the system, only dummies want to work there.”
2. A culture built on context breeds an organization of innovation and talent-density
Erin encourages leaders to lead with context, not controls as “the most creative, maverick-y employees… want to work at a place that they could run free.”
When you attract and keep creative and high-performing talent, they attract other high performers, creating an environment of talent density. Performance is contagious in that high performance encourages high performance. The antithesis is also true in that a lower performer will pull down the performance of the entire team.
To hear more about how this works, listen to the full conversation between Carey and Erin.
3. To know if the right people are on your team, conduct a “keeper test”
Ask yourself, “If Greg came to me and said he’s found another job, how hard would I fight to keep him?” If you’d fight hard to keep Greg, you have the right person. If you would feel relieved or even excited to know that Greg is leaving, some changes might need to be made. As an employee, you can also ask this question to your leader to know where you stand as a “keeper.”
Quotes from Episode 443
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Read or download a free PDF transcript of this episode here.
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Next Episode: Chris McChesney
Chris McChesney, the Global Practice Leader of Execution for Franklin Covey, has helped pioneer the Four Disciplines of Execution that thousands of companies have adopted around the world to help them set and achieve breakthrough goals.
Chris outlines a framework that will help your team engage more deeply and master the execution of your mission and goals.
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