NETFLIX - "Talent density & self organisation"
by reading R Hastings book "No rules rules" it would seem like having an organisation made just of high performing talents is one of the mandatory requirement in order to start moving towards a "no rules" organisation.
While this sounds obvious (you need to have talented people who knows how to manage with disicpline and competence and know how to take the right decision without the need to be told how to do it) this seems "TOO OBVIOUS" and leaves big question marks:
Does that mean that any organisation before removing rules must remove from their jobs anyone who is not rated a "super talent" or better "a Stunning collegue"?
Any "Netflix type" revolution must start from a "clean up" of the individuals rated just "adequate"?
Hastings took the chance to cut 30% of his workforce according to the "Keeper Test" following a business crisis..but how should average or medium/good companies behave to start walking towards a leadership model as proposed by Netflix.?
How to approach the issue of having "average employees" performing "adequately" without having the chance to remove them so simply?
Options? comments? suggestions?
Your specific point is one of the things I disagree with most around Netflix's approach. I don't believe this is the only way to make it work by ditching all the so-called non-talented people.
Once you start making changing you'll be able to teach people how to work in a new type of environment like this. By creating the right environment people will start to flourish. So I believe it's more human to create the right environment first, instead of firing people that don't fit the environment you'd like to create. In the end, if people don't feel comfortable in this new type of environment they'll most likely leave by themselves (as for example transparency around performance and contribution becomes more clear).
We've seen that in many organizations about 15-20% of the people decide to leave during the transformation. I'd say to start with creating the right environment first, than looking at how individuals perform instead of firing and then creating the right environment.
Earlier this year, I wrote about VkusVill, the Russian supermarket chain that is reinventing the retail industry. The Russian pioneer proves that you can rapidly scale a profitable chain of retail shops by letting frontline employees make all the important decisions. They do this with impressive results; the company is not only growing rapidly (CAGR 40%), it also manages to keep bureaucracy and hierarchy to a minimum, as upper management accounts for less than 10% of the total payroll.
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