Learn the Netflix model of high-performing teams
Erin Meyer explains the keeper test and how it can make or break a team.
Erin Meyer is the author of The Culture Map: Breaking Through the Invisible Boundaries of Global Business, and coauthor of No Rules Rules: Netflix and the Culture of Reinvention. She is also a professor at INSEAD, one of the world's leading international business schools. Her work has appeared in Harvard Business Review, The New York Times, and Forbes.com. In 2019, Meyer was selected by the Thinkers50 as one of the fifty most influential business thinkers in the world. She received an MBA from INSEAD in 2004, and she currently lives in Paris, France. In 1994 and 1995 Meyer also served in the Peace Corps as a volunteer teacher in southern Africa. Visit erinmeyer.com for more information.
ERIN MEYER: When Reed started Netflix, he had this question, this experiment in his mind, which was: Would it be possible, if he created an organization that was made up entirely of top performers? Would it be possible to give them an incredible level of freedom without having to worry about the organization descending into chaos? Because, of course, in most companies, most of the rules and process are put in place in order to deal with employees who are underperforming, or who are maybe not the best employees of the batch, right? So that led him to this idea, this idea of talent density, of creating a high performing team that had very little rules and process tying it down. And the idea is specifically not just that we're any other team, but we're a high performing Olympic team. And I think that's actually an interesting image, because we can all think about top athletic performers, that they recognize that if they want a spot on that top Olympic team, that they're going to have to fight hard to get that spot. Meaning they're going to have to really be performing at their highest level. And when they get there, they know every year they kind of have to try out again. It's not like they're going to be in that spot for life. So, I think that that's an atmosphere that is very attractive to some of the younger generations today that aren't thinking about employment for life, but instead are thinking about opportunities that can allow each of us to shine to our full potential. And then, when that opportunity is done, we can move on to another opportunity. Of course, that also means that Netflix, I would say, is a rather high adrenaline place to work. Just like being on an Olympic team may be high adrenaline. And what I found is that people are both excited and delighted and a little bit exhausted. So, you have to be a person who really is looking for that level of freedom and opportunity, knowing that it may be a position that is also going to use every inch of your neurons while you're working there.
So of course, saying that you want to have a team of all high performers is easy enough, but figuring out how to do that is not so easy. Historically, companies like GE and Microsoft have dealt with this idea of trying to get all top performers by using these processes, which are sometimes called things like "Rank and Yank," where you rank your employees from top to bottom. And for example, with GE, for a period of time, managers were then asked to fire the bottom 10 percent. But since been shown to not be a great management tool, because it creates a lot of internal competition and even backstabbing. Plus, because Netflix is so anti-process, that wouldn't work there anyhow. But instead, what they do at Netflix, which I think is actually a very interesting exercise for any manager at any company, is something that they call the keeper test. And the keeper test is just a very simple exercise that you, as a manager, do alone, which is that maybe once or twice a year, you kind of sit down by yourself and you reflect. And you imagine, okay, Crystal comes into your office, someone on your team. And she says, 'Erin, I've come here to tell you I'm leaving your company. And I found a great job somewhere else. And I really enjoyed working with you, but I'm sorry, it's over.' And when this employee tells you that she or he is going to leave the company, what's your reaction? That's the keeper test, right? You have to ask yourself, how would I react? And with some employees, you might think, 'Oh my gosh, if Crystal told me she was leaving the company, I would be devastated. I would fight hard to keep her.' Right? Then you know she's a keeper. The other option of course might be less positive. Maybe you would feel kind of neutral about it. Maybe you would even feel kind of relieved. And you might even feel a little bit excited about who you were going to be able to get in order to fill that role. And of course, that's the test, right? If you wouldn't fight hard to keep that person, then that's not someone that should be on your team.
Performance is contagious. And what that means for a manager is that if you have one individual on your team who's a little bit of a performance problem, that's not an individual problem. An individual performance problem is a systemic problem that impacts the entire team. And if you've got enough of those in your company, that impacts the entire organization. So I think it's really important that we think about that kind of idea of that one mediocre employee pulling performance down, or that if you have a team of all stunning colleagues, how that may just then cycle up. And that's what we've really seen at Netflix, like an organization where they've kind of weeded out the adequate or mediocre performers. And then we've seen just the success of that organization cycle up.
- There are numerous strategies for building and maintaining a high-performing team, but unfortunately they are not plug-and-play. What works for some companies will not necessarily work for others. Erin Meyer, co-author of No Rules Rules: Netflix and the Culture of Reinvention, shares one alternative employed by one of the largest tech and media services companies in the world.
- Instead of the 'Rank and Yank' method once used by GE, Meyer explains how Netflix managers use the 'keeper test' to determine if employees are crucial pieces of the larger team and are worth fighting to keep.
- "An individual performance problem is a systemic problem that impacts the entire team," she says. This is a valuable lesson that could determine whether the team fails or whether an organization advances to the next level.
- Study: Teams often win after leaders give negative speeches - Big ... ›
- Silent Killers of High Performance - Big Think ›
- Highly intelligent people make the worst leaders, study finds - Big ... ›
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How imagining the worst case scenario can help calm anxiety.
- Stoicism is the philosophy that nothing about the world is good or bad in itself, and that we have control over both our judgments and our reactions to things.
- It is hardest to control our reactions to the things that come unexpectedly.
- By meditating every day on the "worst case scenario," we can take the sting out of the worst that life can throw our way.
Are you a worrier? Do you imagine nightmare scenarios and then get worked up and anxious about them? Does your mind get caught in a horrible spiral of catastrophizing over even the smallest of things? Worrying, particularly imagining the worst case scenario, seems to be a natural part of being human and comes easily to a lot of us. It's awful, perhaps even dangerous, when we do it.
But, there might just be an ancient wisdom that can help. It involves reframing this attitude for the better, and it comes from Stoicism. It's called "premeditation," and it could be the most useful trick we can learn.
Broadly speaking, Stoicism is the philosophy of choosing your judgments. Stoics believe that there is nothing about the universe that can be called good or bad, valuable or valueless, in itself. It's we who add these values to things. As Shakespeare's Hamlet says, "There is nothing either good or bad, but thinking makes it so." Our minds color the things we encounter as being "good" or "bad," and given that we control our minds, we therefore have control over all of our negative feelings.
Put another way, Stoicism maintains that there's a gap between our experience of an event and our judgment of it. For instance, if someone calls you a smelly goat, you have an opportunity, however small and hard it might be, to pause and ask yourself, "How will I judge this?" What's more, you can even ask, "How will I respond?" We have power over which thoughts we entertain and the final say on our actions. Today, Stoicism has influenced and finds modern expression in the hugely effective "cognitive behavioral therapy."
Helping you practice StoicismCredit: Robyn Beck via Getty Images
One of the principal fathers of ancient Stoicism was the Roman statesmen, Seneca, who argued that the unexpected and unforeseen blows of life are the hardest to take control over. The shock of a misfortune can strip away the power we have to choose our reaction. For instance, being burglarized feels so horrible because we had felt so safe at home. A stomach ache, out of the blue, is harder than a stitch thirty minutes into a run. A sudden bang makes us jump, but a firework makes us smile. Fell swoops hurt more than known hardships.
What could possibly go wrong?
So, how can we resolve this? Seneca suggests a Stoic technique called "premeditatio malorum" or "premeditation." At the start of every day, we ought to take time to indulge our anxious and catastrophizing mind. We should "rehearse in the mind: exile, torture, war, shipwreck." We should meditate on the worst things that could happen: your partner will leave you, your boss will fire you, your house will burn down. Maybe, even, you'll die.
This might sound depressing, but the important thing is that we do not stop there.
Stoicism has influenced and finds modern expression in the hugely effective "cognitive behavioral therapy."
The Stoic also rehearses how they will react to these things as they come up. For instance, another Stoic (and Roman Emperor) Marcus Aurelius asks us to imagine all the mean, rude, selfish, and boorish people we'll come across today. Then, in our heads, we script how we'll respond when we meet them. We can shrug off their meanness, smile at their rudeness, and refuse to be "implicated in what is degrading." Thus prepared, we take control again of our reactions and behavior.
The Stoics cast themselves into the darkest and most desperate of conditions but then realize that they can and will endure. With premeditation, the Stoic is prepared and has the mental vigor necessary to take the blow on the chin and say, "Yep, l can deal with this."
Catastrophizing as a method of mental inoculation
Seneca wrote: "In times of peace, the soldier carries out maneuvers." This is also true of premeditation, which acts as the war room or training ground. The agonizing cut of the unexpected is blunted by preparedness. We can prepare the mind for whatever trials may come, in just the same way we can prepare the body for some endurance activity. The world can throw nothing as bad as that which our minds have already imagined.
Stoicism teaches us to embrace our worrying mind but to embrace it as a kind of inoculation. With a frown over breakfast, try to spend five minutes of your day deliberately catastrophizing. Get your anti-anxiety battle plan ready and then face the world.
A study on charity finds that reminding people how nice it feels to give yields better results than appealing to altruism.
- A study finds asking for donations by appealing to the donor's self-interest may result in more money than appealing to their better nature.
- Those who received an appeal to self-interest were both more likely to give and gave more than those in the control group.
- The effect was most pronounced for those who hadn't given before.
Even the best charities with the longest records of doing great fundraising work have to spend some time making sure that the next donation checks will keep coming in. One way to do this is by showing potential donors all the good things the charity did over the previous year. But there may be a better way.
A new study by researchers in the United States and Australia suggests that appealing to the benefits people will receive themselves after a donation nudges them to donate more money than appealing to the greater good.
How to get people to give away free money
The postcards that were sent to different study subjects. The one on the left highlighted benefits to the self, while the one on the right highlighted benefits to others.List et al. / Nature Human Behaviour
The study, published in Nature Human Behaviour, utilized the Pick.Click.Give program in Alaska. This program allows Alaska residents who qualify for dividends from the Alaska Permanent Fund, a yearly payment ranging from $800 to $2000 in recent years, to donate a portion of it to various in-state non-profit organizations.
The researchers randomly assigned households to either a control group or to receive a postcard in the mail encouraging them to donate a portion of their dividend to charity. That postcard could come in one of two forms, either highlighting the benefits to others or the benefits to themselves.
Those who got the postcard touting self-benefits were 6.6 percent more likely to give than those in the control group and gave 23 percent more on average. Those getting the benefits-to-others postcard were slightly more likely to give than those receiving no postcard, but their donations were no larger.
Additionally, the researchers were able to break the subject list down into a "warm list" of those who had given at least once before in the last two years and a "cold list" of those who had not. Those on the warm list, who were already giving, saw only minor increases in their likelihood to donate after getting a postcard in the mail compared to those on the cold list.
Additionally, the researchers found that warm-list subjects who received the self-interest postcard gave 11 percent more than warm-list subjects in the control group. Amazingly, among cold-list subjects, those who received a self-interest postcard gave 39 percent more.
These are substantial improvements. At the end of the study, the authors point out, "If we had sent the benefits to self message to all households in the state, aggregate contributions would have increased by nearly US$600,000."
To put this into perspective, in 2017 the total donations to the program were roughly $2,700,000.
Is altruism dead?
Are all actions inherently self-interested? Thankfully, no. The study focuses entirely on effective ways to increase charitable donations above levels that currently exist. It doesn't deny that some people are giving out of pure altruism, but rather that an appeal based on self-interest is effective. Plenty of people were giving before this study took place who didn't need a postcard as encouragement. It is also possible that some people donated part of their dividend check to a charity that does not work with Pick.Click.Give and were uncounted here.
It is also important to note that Pick.Click.Give does not provide services but instead gives money to a wide variety of organizations that do. Those organizations operate in fields from animal rescue to job training to public broadcasting. The authors note that it is possible that a more specific appeal to the benefits others will receive from a donation might prove more effective than the generic and all-inclusive "Make Alaska Better For Everyone" appeal that they used.
In an ideal world, charity is its own reward. In ours, it might help to remind somebody how warm and fuzzy they'll feel after donating to your cause.
Inventions with revolutionary potential made by a mysterious aerospace engineer for the U.S. Navy come to light.
- U.S. Navy holds patents for enigmatic inventions by aerospace engineer Dr. Salvatore Pais.
- Pais came up with technology that can "engineer" reality, devising an ultrafast craft, a fusion reactor, and more.
- While mostly theoretical at this point, the inventions could transform energy, space, and military sectors.
The U.S. Navy controls patents for some futuristic and outlandish technologies, some of which, dubbed "the UFO patents," came to life recently. Of particular note are inventions by the somewhat mysterious Dr. Salvatore Cezar Pais, whose tech claims to be able to "engineer reality." His slate of highly-ambitious, borderline sci-fi designs meant for use by the U.S. government range from gravitational wave generators and compact fusion reactors to next-gen hybrid aerospace-underwater crafts with revolutionary propulsion systems, and beyond.
Of course, the existence of patents does not mean these technologies have actually been created, but there is evidence that some demonstrations of operability have been successfully carried out. As investigated and reported by The War Zone, a possible reason why some of the patents may have been taken on by the Navy is that the Chinese military may also be developing similar advanced gadgets.
Among Dr. Pais's patents are designs, approved in 2018, for an aerospace-underwater craft of incredible speed and maneuverability. This cone-shaped vehicle can potentially fly just as well anywhere it may be, whether air, water or space, without leaving any heat signatures. It can achieve this by creating a quantum vacuum around itself with a very dense polarized energy field. This vacuum would allow it to repel any molecule the craft comes in contact with, no matter the medium. Manipulating "quantum field fluctuations in the local vacuum energy state," would help reduce the craft's inertia. The polarized vacuum would dramatically decrease any elemental resistance and lead to "extreme speeds," claims the paper.
Not only that, if the vacuum-creating technology can be engineered, we'd also be able to "engineer the fabric of our reality at the most fundamental level," states the patent. This would lead to major advancements in aerospace propulsion and generating power. Not to mention other reality-changing outcomes that come to mind.
Among Pais's other patents are inventions that stem from similar thinking, outlining pieces of technology necessary to make his creations come to fruition. His paper presented in 2019, titled "Room Temperature Superconducting System for Use on a Hybrid Aerospace Undersea Craft," proposes a system that can achieve superconductivity at room temperatures. This would become "a highly disruptive technology, capable of a total paradigm change in Science and Technology," conveys Pais.
High frequency gravitational wave generator.
Credit: Dr. Salvatore Pais
Another invention devised by Pais is an electromagnetic field generator that could generate "an impenetrable defensive shield to sea and land as well as space-based military and civilian assets." This shield could protect from threats like anti-ship ballistic missiles, cruise missiles that evade radar, coronal mass ejections, military satellites, and even asteroids.
Dr. Pais's ideas center around the phenomenon he dubbed "The Pais Effect". He referred to it in his writings as the "controlled motion of electrically charged matter (from solid to plasma) via accelerated spin and/or accelerated vibration under rapid (yet smooth) acceleration-deceleration-acceleration transients." In less jargon-heavy terms, Pais claims to have figured out how to spin electromagnetic fields in order to contain a fusion reaction – an accomplishment that would lead to a tremendous change in power consumption and an abundance of energy.
According to his bio in a recently published paper on a new Plasma Compression Fusion Device, which could transform energy production, Dr. Pais is a mechanical and aerospace engineer working at the Naval Air Warfare Center Aircraft Division (NAWCAD), which is headquartered in Patuxent River, Maryland. Holding a Ph.D. from Case Western Reserve University in Cleveland, Ohio, Pais was a NASA Research Fellow and worked with Northrop Grumman Aerospace Systems. His current Department of Defense work involves his "advanced knowledge of theory, analysis, and modern experimental and computational methods in aerodynamics, along with an understanding of air-vehicle and missile design, especially in the domain of hypersonic power plant and vehicle design." He also has expert knowledge of electrooptics, emerging quantum technologies (laser power generation in particular), high-energy electromagnetic field generation, and the "breakthrough field of room temperature superconductivity, as related to advanced field propulsion."
Suffice it to say, with such a list of research credentials that would make Nikola Tesla proud, Dr. Pais seems well-positioned to carry out groundbreaking work.
A craft using an inertial mass reduction device.
Credit: Salvatore Pais
The patents won't necessarily lead to these technologies ever seeing the light of day. The research has its share of detractors and nonbelievers among other scientists, who think the amount of energy required for the fields described by Pais and his ideas on electromagnetic propulsions are well beyond the scope of current tech and are nearly impossible. Yet investigators at The War Zone found comments from Navy officials that indicate the inventions are being looked at seriously enough, and some tests are taking place.
If you'd like to read through Pais's patents yourself, check them out here.
Laser Augmented Turbojet Propulsion System
Credit: Dr. Salvatore Pais
The 'Monkeydactyl' was a flying reptile that evolved highly specialized adaptations in the Mesozoic Era.
- The 'Monkeydactly', or Kunpengopterus antipollicatus, was a species of pterosaur, a group of flying reptiles that were the first vertebrates to evolve the ability of powered flight.
- In a recent study, a team of researchers used microcomputed tomography scanning to analyze the anatomy of the newly discovered species, finding that it was the first known species to develop opposable thumbs.
- As highly specialized dinosaurs, pterosaurs boasted unusual anatomy that gave them special advantages as aerial predators in the Mesozoic Era.
A newly discovered flying dinosaur nicknamed "Monkeydactyl" is the oldest known creature that evolved opposable thumbs, according to new research published in Current Biology.
The 160-million-year-old reptile is officially named Kunpengopterus antipollicatus. Discovered in China, the dinosaur was a darwinopteran pterosaur, a subgroup of pterosaurs, which first appeared 215 million years ago during the Triassic Period. Pterosaurs, like the pterodactyl, were the first vertebrates to evolve the ability of powered flight.
But unlike other pterosaurs, the Monkeydactyl was the only species in its group known to have opposable thumbs. It's a rare adaptation for non-mammals: The only extant examples are chameleons and some species of tree frogs. (Most birds have at least one opposable digit, though that digit is usually classified as a hallux, not a pollex, which means "thumb" in Latin.)
To analyze the anatomy of K. antipollicatus, an international team of researchers used microcomputed tomography scanning, which generates images of the inside of the body.
"The fingers of 'Monkeydactyl' are tiny and partly embedded in the slab," study co-author Fion Waisum Ma said in a press release. "Thanks to micro-CT scanning, we could see through the rocks, create digital models, and tell how the opposed thumb articulates with the other finger bones."
"This is an interesting discovery. It provides the earliest evidence of a true opposed thumb, and it is from a pterosaur — which wasn't known for having an opposed thumb."
As a tree-dwelling reptile, the Monkeydactyl probably evolved opposable thumbs so it could grasp tree branches, which would have helped it hang, avoid falls, and obtain food. This arboreal (tree-dwelling) locomotion would help the Monkeydactyl adapt to its home ecosystem, the subtropical forests of the Tiaojishan Formation in China during the Jurassic Period.
The researchers noted that the forests of the Tiaojishan Formation were likely warm and humid, thriving with "a rich and complex" diversity of tree-dwelling animals. But while the forests were home to multiple pterosaur species, the Monkeydactyl was likely the only one that was arboreal, spending most of its time in the treetops, while other pterosaurs occupied different levels of the forest.
K. antipollicatus and its phylogenetic position. (A and B) Holotype specimen BPMC 0042 (A) and a schematic skeletal drawing (B). Scale bars, 50 mm.Credit: Zhou et al.
This process — in which competing species manage to coexist by using the environment in different ways — is called "niche partitioning."
"Tiaojishan palaeoforest is home to many organisms, including three genera of darwinopteran pterosaurs," study author Xuanyu Zhou said in the press release. "Our results show that K. antipollicatus has occupied a different niche from Darwinopterus and Wukongopterus, which has likely minimized competition among these pterosaurs."
In general, pterosaurs are a prime example of how animals can evolve remarkably specialized adaptations. As pioneers of vertebrate flight, pterosaurs had strong and lightweight skeletons that ranged widely in size, with some boasting wingspans of more than 30 feet. The largest pterosaurs weighed more than 650 pounds and had jaws twice the length of Tyrannosaurus rex.
Unlike birds, which jump into the air using only their hind limbs, pterosaurs used their exceptionally strong hind limbs and forelimbs to push off the ground and gain enough launch power for flight. That these massive dinosaurs managed to fly, and did so successfully for about 80 million years, has long fascinated and puzzled scientists.The recent discovery shows that pterosaurs developed even more remarkable adaptations than previously thought, suggesting there's still more to learn about the "monsters of the Mesozoic skies."