How Netflix builds a culture of excellence | Elizabeth Stone (CTO)

#media #yt #engineering/netflix #engineering/culture #team-management #lenny-podcast

My Notes

i care about people, and setting them for the success
dedication
- how much i care about excelence? -> giving it my best at all possible situions (deciation is not about working hours)
- not let other people to wait on me
are you doing world-class job with this?
the last 5% is the only that really mattered
dont let your DR to feel alone, if there are striving for the excellence, it can easily turn into flustration and leaving the company
example setting
- if i dont do it, why other should do it? -> we should be all set to the same standartns
- i give feedback if anything is not up to our standards
- expectations are NOT always clear, and you cannot assume they are clear, if you dont share them (written)
- if you are not happy with the MR you are seeing during the review, instead of giving a lot of suggestions, lets help your team member to make it better/excellent (eg. by jumping into cal,, and making changes, and explaining your thinking)
you have to be willing to have a lot of unconfortable conversations when giving feedback, that is the only way to keep excelence and high talent
pre-requirements for #engineering/netflix culture, is to high density talent -> without talent, is is hard to talk about "keeper test", radical candor, or freedom & responsibility
keeper test -> if the your DR comes to you, that he/she wants to quite, would you do eveything in your power to prevent it? if not, you should fire him/her
most of the innovation and value come from creating space for our teams -> eg. giving them freedom and trust to work on their own
#hiring
- i am looking for somebody who could be better in my role than I am
- how that person can help grown our team? how they can help the team go from good to great? what missing skills the person can teach your team?
- i am asking them: what would be their priority in my role, what they would do differently?

AI Summary

Main Idea of the Text

The text provides a comprehensive insight into Netflix's unique workplace culture, which relies heavily on maintaining a high Talent density as a foundational aspect for other cultural elements like candor, continuous learning, excellence, freedom, and responsibility. This culture reflects the ideologies of Netflix's founder, Reed Hastings, who envisioned a different approach to building a company where employees thrive and feel fulfilled. The guest, Elizabeth Stone, Netflix's CTO and first economist to hold such a position at a Fortune 500 company, discusses the influence of her economic background on her career and tech leadership. The conversation covers Netflix's culture, its structure for data and user research teams, as well as personal insights into how sport has influenced Elizabeth's life and work.

List of Main Ideas

High Talent Density: "we can't really have any of the other aspects of the culture including candor, learning, seeking excellence and...if you don't start with high Talent density."
- Importance: High Talent density is essential for supporting other company cultural values and achieving excellence in outcomes. It's a prerequisite that allows Netflix to operate effectively with its unique practices and standards.
Netflix's Unique Culture: "Netflix's very unique culture of high Talent density, radical candor, and freedom and responsibility."
- Importance: The culture of Netflix is critical in making it a place where employees can excel and feel fulfilled. This culture differentiates Netflix from other companies and is a key factor in its success.
Data and Insights Structure: "the structure that Netflix has for their data and user research teams which she believes is a part of Netflix's secret to success."
- Importance: The way in which Netflix organizes its data and research teams is integral to the company's ability to innovate and remain market leaders. This structure allows for cross-functional expertise and objective decision-making.

Detailed Summarization (Outline Form)

Netflix Culture Overview:
- Emphasizes high Talent density as the cornerstone of Netflix’s culture.
- Other cultural elements: candor, learning, excellence, freedom, responsibility.
- Culture reflects Reed Hastings’ vision for a thriving work environment.
Elizabeth Stone's Background and Perspective:
- Economist background influencing Tech leadership.
- Discusses benefits of economic principles in corporate strategy and management.
Importance of Talent Density:
- Talent density supports candor, learning, and improvement within the culture.
- Criteria for maintaining high Talent: feedback, performance, and necessary terminations.
- The "keeper test" used to evaluate employee fit within Netflix.
Data and User Research Teams:
- Centralized team structure.
- Unification of various data-related functions.
- Emphasizes comprehensive data and insights approach as a success factor.
Personal Insights:
- Elizabeth relates biking and triathlons to life and work.
- Sports taught her mental resilience and recovery from challenges.

Narrator Quotes and Context

The text does not contain any direct narration or quotes from a narrator.

Footer Notes:

The text contains self-promotion in the form of a podcast advertisement and sponsor message. These sections included a call to subscribe and follow the podcast, references to sponsors Vanta and Sendbird, and various offers or discount codes. These sections are not included in the summarization to maintain focus on the main content of the text.

Actionable Takeaways

Actionable Steps to Implement Netflix's Workplace Culture Elements

Step 1: Prioritize Talent Density

Take immediate action by assessing your current team's composition. Evaluate each member using the "keeper test": If a team member were to leave, would you fight to keep them?
Begin by making necessary changes to ensure that your team consists of highly skilled and motivated individuals.
Make sure to consistently provide and solicit candid feedback to facilitate continuous improvement.

Step 2: Establish a Culture of Candid Communication

After you've assessed the Talent density, foster an environment that encourages open and honest communication.
Schedule regular team meetings or one-on-one sessions to maintain transparency and continuous dialogue.
Train your team on the principles and benefits of radical candor to improve interpersonal interactions and team dynamics.

Step 3: Create an Organizational Structure that Supports Data and Insights

Adapt the structure of your data and user research teams to reflect a centralized model similar to Netflix's, if applicable.
Promote collaboration between departments and ensure the free flow of information.
Utilize comprehensive data analysis to make objective and informed decisions, which could involve investing in better data analytics tools or training.

Step 4: Promote Freedom and Responsibility

Grant your employees more autonomy in their roles to cultivate a sense of responsibility.
Set clear expectations regarding freedom within the workplace, ensuring every team member is aware of their responsibilities.

Step 5: Implement Continuous Learning and Seeking Excellence

Encourage and provide opportunities for professional development and continuous learning for all team members.
Define and communicate the standards of excellence expected within the team or company.
Recognize and reward individual and team achievements that exemplify these standards.

Step 6: Foster Resilience and Personal Development

Learning from Elizabeth Stone’s experience, encourage team members to engage in activities outside of work that build resilience and mental strength, such as sports or arts.
Support work-life balance which, in turn, contributes to overall employee well-being and productivity.

Additional Notes:

Remember, every organization is unique, so while taking inspiration from Netflix, adjust your plans to fit your specific context.
Incremental changes over time can be more effective and sustainable than sweeping overhauls, especially in a well-established culture.
Continuously evaluate the impact of these cultural shifts on your team's performance and morale, adjusting as necessary.

This article was originally published on https://craftengineer.com/. It was written by a human and polished using grammar tools for clarity.

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