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What if you fired all the average performers?

Interesting quotes from Netflix CEO Reed Hastings:

Like every company, we try to hire well.

But, unlike many companies, we practice “adequate performance gets a generous severance package.”

We’re a team, not a family.

We’re like a pro sports team, not a kid’s recreational team. Coaches’ job at every level of Netflix to hire, develop and cut smartly, so we have stars in every position.

The Keeper Test managers use:

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 hard to keep at Netflix?

This should be deeply uncomfortable for a lot of people. Questions it raises:

  • Would I make it at a company like Netflix?
  • Is this why some startups make it big?
  • Is this why most people at average companies feel like they are surrounded by Dilberts?
  • Would I want to work at a company like this?
  • Would I want to run a company like this?

What do you think?

(Original presentation below. Start at slide 25.)

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