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SevenAspectsofourCulture
• ValuesarewhatweValue• HighPerformance• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
3
Manycompanieshavenicesoundingvaluestatements
displayedinthelobby,suchas:
4
IntegrityCommunica/on
RespectExcellence
Enron,whoseleaderswenttojail,andwhichwentbankruptfromfraud,
hadthesevaluesdisplayedintheirlobby:
IntegrityCommunica/on
RespectExcellence
5(Thesevalueswerenot,however,whatwasreallyvaluedatEnron)
Theactualcompanyvalues,asopposedtothe
nice-soundingvalues,areshownbywhogets
rewarded,promoted,orletgo
6
AtNe#lix,weparNcularlyvaluethefollowingninebehaviorsandskills
inourcolleagues…
…meaningwehireandpromotepeoplewhodemonstratethesenine
8
Youmakewisedecisions(people,technical,business,andcreaNve)despiteambiguityYouidenNfyrootcauses,andgetbeyondtreaNngsymptomsYouthinkstrategically,andcanarNculatewhatyouare,andarenot,tryingtodoYousmartlyseparatewhatmustbedonewellnow,andwhatcanbeimprovedlater
9
Judgment
10
CommunicaNon
Youlistenwell,insteadofreacNngfast,soyoucanbe^erunderstandYouareconciseandarNculateinspeechandwriNngYoutreatpeoplewithrespectindependentoftheirstatusordisagreementwithyouYoumaintaincalmpoiseinstressfulsituaNons
11
Impact
YouaccomplishamazingamountsofimportantworkYoudemonstrateconsistentlystrongperformancesocolleaguescanrelyuponyouYoufocusongreatresultsratherthanonprocessYouexhibitbias-to-acNon,andavoidanalysis-paralysis
12
Curiosity
YoulearnrapidlyandeagerlyYouseektounderstandourstrategy,market,customers,andsuppliersYouarebroadlyknowledgeableaboutbusiness,technologyandentertainmentYoucontributeeffecNvelyoutsideofyourspecialty
13
InnovaNon
Youre-conceptualizeissuestodiscoverpracNcalsoluNonstohardproblemsYouchallengeprevailingassumpNonswhenwarranted,andsuggestbe^erapproachesYoucreatenewideasthatproveusefulYoukeepusnimblebyminimizingcomplexityandfindingNmetosimplify
14
Courage
YousaywhatyouthinkevenifitiscontroversialYoumaketoughdecisionswithoutagonizingYoutakesmartrisksYouquesNonacNonsinconsistentwithourvalues
15
Passion
YouinspireotherswithyourthirstforexcellenceYoucareintenselyaboutNe#lix‘ssuccessYoucelebratewinsYouaretenacious
16
Honesty
YouareknownforcandoranddirectnessYouarenon-poliNcalwhenyoudisagreewithothersYouonlysaythingsaboutfellowemployeesyouwillsaytotheirfaceYouarequicktoadmitmistakes
17
Selflessness
YouseekwhatisbestforNe#lix,ratherthanbestforyourselforyourgroupYouareego-lesswhensearchingforthebestideasYoumakeNmetohelpcolleaguesYoushareinformaNonopenlyandproacNvely
SevenAspectsofourCulture
• ValuesarewhatweValue• HighPerformance• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
18
GreatWorkplaceisStunningColleagues
Greatworkplaceisnotespresso,lushbenefits,sushilunches,grandparNes,orniceoffices
Wedosomeofthesethings,butonlyiftheyare
efficientata^racNngandretainingstunningcolleagues
20
We’reateam,notafamily
We’relikeaprosportsteam,notakid’srecreaNonalteam
Ne#lixleaders
hire,developandcutsmartly,sowehavestarsineveryposiNon
23
TheKeeperTestManagersUse:Whichofmypeople,
iftheytoldmetheywereleaving,forasimilarjobatapeercompany,wouldIfighthardtokeepatNe#lix?
24
TheKeeperTestManagersUse:Whichofmypeople,
iftheytoldmetheywereleaving,forasimilarjobatapeercompany,wouldIfighthardtokeepatNe#lix?
25
Theotherpeopleshouldgetagenerousseverancenow,sowecanopenaslottotrytofindastarforthatrole
HonestyAlways
Candorisnotjustaleader’sresponsibility,andyoushouldperiodicallyaskyour
manager:“IfItoldyouIwereleaving,howhardwouldyouworktochangemymind?”
27
AllofUsareResponsibleforEnsuringWeLiveourValues
“YouquesNonacNonsinconsistentwithourvalues”ispartoftheCouragevalue
Akintothehonorcodepledge:
“Iwillnotlie,norcheat,norsteal,nortoleratethosewhodo”
28
ProSportsTeamMetaphorisGood,butImperfect
AthleNcteamshaveafixednumberofposiNons,soteammembersarealwayscompeNngwitheachotherforoneof
thepreciousslots
29
CorporateTeam
Themoretalentwehave,themorewecanaccomplish,
soourpeopleassisteachotheralltheNme
Internal“cu^hroat”or“sinkorswim”behaviorisrareandnottolerated
30
LoyaltyisGood
• Loyaltyisgoodasastabilizer• Peoplewhohavebeenstarsforus,andhitabadpatch,getaneartermpassbecausewethinktheyarelikelytobecomestarsforusagain
• Wewantthesame:ifNe#lixhitsatemporarybadpatch,wewantpeopletosNckwithus
• Butunlimitedloyaltytoashrinkingfirm,ortoanineffecNveemployee,isnotwhatweareabout
33
HardWork–NotRelevant
• Wedon’tmeasurepeoplebyhowmanyhourstheyworkorhowmuchtheyareintheoffice
• Wedocareaboutaccomplishinggreatwork• SustainedB-levelperformance,despite“Aforeffort”,generatesagenerousseverancepackage,withrespect
• SustainedA-levelperformance,despiteminimaleffort,isrewardedwithmoreresponsibilityandgreatpay
34
BrilliantJerks
• Somecompaniestoleratethem• Forus,costtoeffecNveteamworkistoohigh• Diversestylesarefine–aslongaspersonembodiesthe9values
35
Whyarewesoinsistentonhighperformance?
Inproceduralwork,thebestare2xbe^erthantheaverage.
IncreaNve/invenNvework,thebestare10xbe^erthantheaverage,sohugepremiumon
creaNngeffecNveteamsofthebest
36
OurHighPerformanceCultureNotRightforEveryone
• Manypeopleloveourculture,andstayalongNme– Theythriveonexcellenceandcandorandchange– Theywouldbedisappointedifgivenaseverancepackage,butlotsofmutualwarmthandrespect
• Somepeople,however,valuejobsecurityandstabilityoverperformance,anddon’tlikeourculture– TheyfeelfearfulatNe#lix– TheyaresomeNmesbi^erifletgo,andfeelthatwearepoliNcalplacetowork
• We’regerngbe^erata^racNngonlytheformer,andhelpingthela^errealizewearenotrightforthem
38
SevenAspectsofourCulture
• ValuesarewhatweValue• HighPerformance• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
39
TheRareResponsiblePerson
• SelfmoNvaNng• Selfaware• Selfdisciplined• Selfimproving• Actslikealeader• Doesn’twaittobetoldwhattodo• Picksupthetrashlyingonthefloor
40
Ourmodelistoincreaseemployeefreedomaswegrow,
ratherthanlimitit,toconNnuetoa^ractandnourish
innovaNvepeople,sowehavebe^erchanceof
sustainedsuccess
42
ChaosEmerges
%HighPerformanceEmployees
Chaosanderrorsspikehere–businesshasbecometoocomplextoruninformallywiththistalentlevel Complexity
48
ProcessEmergestoStoptheChaos
ProceduresNoonelovesprocess,butfeelsgoodcomparedtothepainofchaos“Timetogrowup”becomestheprofessionalmanagement’smantra
49
ProcessBringsSeducNvelyStrongNear-TermOutcome
• Ahighly-successfulprocess-drivencompany– Withleadingshareinitsmarket– Minimalthinkingrequired– Fewmistakesmade–veryefficient– Fewcuriousinnovator-mavericksremain– VeryopNmizedprocessesforitsexisNngmarket– Efficiencyhastrumpedflexibility
51
ThentheMarketShiss…
• MarketshissduetonewtechnologyorcompeNtorsorbusinessmodels
• Companyisunabletoadaptquickly– becausetheemployeesareextremelygoodatfollowingtheexisNngprocesses,andprocessadherenceisthevaluesystem
• Companygenerallygrindspainfullyintoirrelevance
52
SeemsLikeThreeBadOpNons
1. StaycreaNvebystayingsmall,butthereforehavelessimpact
2. Avoidrulesasyougrow,andsufferchaos3. Useprocessasyougrowtodriveefficient
execuNonofcurrentmodel,butcripplecreaNvity,flexibility,andabilitytothrivewhenyourmarketeventuallychanges
53
AFourthOpNon
• AvoidChaosasyougrowwithEverMoreHighPerformancePeople–notwithRules– ThenyoucanconNnuetomostlyruninformallywithself-discipline,andavoidchaos
– Theruninformallypartiswhatenablesanda^ractscreaNvity
54
IncreaseTalentDensity
• TopofmarketcompensaNon• A^racthigh-valuepeoplethrough
freedomtomakebigimpact• Bedemandingabouthigh
performanceculture
56
MinimizeComplexityGrowth
BusinessComplexity
• Fewbigproductsvsmanysmallones• EliminatedistracNngcomplexity(barnacles)• BewaryofefficiencyopNmizaNonsthat
increasecomplexityandrigidity
57
Note:someNmeslong-termsimplicityisachievedonlythroughburstsofcomplexitytoreworkcurrentsystems
WiththeRightPeople,
InsteadofaCultureofProcessAdherence,
WehaveaCultureof
CreaNvityandSelf-Discipline,FreedomandResponsibility
58
TwoTypesofNecessaryRules
1. Preventirrevocabledisaster– Financialsproducedarewrong– Hackersstealourcustomers’creditcardinfo
2. Moral,ethical,legalissues– Dishonesty,harassmentareintolerable
61
Mostly,though,RapidRecoveryistheRightModel
• Justfixproblemsquickly– Highperformersmakeveryfewerrors
• We’reinacreaNve-invenNvemarket,notasafety-criNcalmarketlikemedicineornuclearpower
• YoumayhaveheardprevenNngerrorischeaperthanfixingit– Yes,inmanufacturingormedicine,but…– Notsoincrea/veenvironments
62
“Good”versus“Bad”Process
• “Good”processhelpstalentedpeoplegetmoredone– LerngothersknowwhenyouareupdaNngcode– Spendwithinbudgeteachquartersodon’thavetocoordinateeveryspendingdecisionacrossdepartments
– RegularlyscheduledstrategyandcontextmeeNngs• “Bad”processtriestopreventrecoverablemistakes– Getpre-approvalsfor$5kspending– 3peopletosignoffonbanneradcreaNve– Permissionneededtohangaposteronawall– MulN-levelapprovalprocessforprojects– Get10peopletointervieweachcandidate
63
RuleCreep
• “Bad”processestendtocreepin– PrevenNngerrorsjustsoundssogood
• Wetrytogetridofruleswhenwecan,toreinforcethepoint
64
Meanwhile…
We’reallworkingonlinesomenightsandweekends,respondingtoemailsatoddhours,spendingsomeasernoonson
personalNme,andtakinggoodvacaNons
66
Anemployeepointedout…
Wedon’ttrackhoursworkedperdayorperweek,sowhyarewetracking
daysofvacaNonperyear?
67
Werealized…
Weshouldfocusonwhatpeoplegetdone,notonhowmanydaysworked
Justaswedon’thavean9am-5pmworkday
policy,wedon’tneedavacaNonpolicy
68
Ne#lixVacaNonPolicyandTracking“thereisnopolicyortracking”
ThereisalsonoclothingpolicyatNe#lix,
butnoonecomestoworknaked
Lesson:youdon’tneedpoliciesforeverything
70
NoVacaNonPolicyDoesn’tMeanNoVacaNon
Ne#lixleaderssetgoodexamplesbytakingbigvacaNons–andcomingbackinspiredtofindbigideas
71
Mostcompanieshavecomplexpoliciesaroundwhatyoucan
expense,howyoutravel,whatgissyoucanaccept,etc.
Plustheyhavewholedepartments
toverifycompliancewiththesepolicies
73
“ActinNe#lix’sBestInterest”GenerallyMeans…
1. Expenseonlywhatyouwouldotherwisenotspend,andisworthwhileforwork
2. Travelasyouwouldifitwereyourownmoney3. Disclosenon-trivialvendorgiss4. TakefromNe#lixonlywhenitisinefficientto
nottake,andinconsequenNal– “taking”means,forexample,prinNngpersonal
documentsatworkormakingpersonalcallsonworkphone:inconsequenNalandinefficienttoavoid
75
FreedomandResponsibility
• Manypeoplesayonecan’tdoitatscale• Butsincegoingpublicin2002,whichistradiNonallytheendoffreedom,we’vesubstanNallyincreasedtalentdensityandemployeefreedom
76
SummaryofFreedom&Responsibility:
AsWeGrow,MinimizeRules
InhibitChaoswithEverMoreHighPerformancePeople
FlexibilityisMoreImportant
thanEfficiencyintheLongTerm
77
SevenAspectsofourCulture
• ValuesarewhatweValue• HighPerformance• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
78
Ifyouwanttobuildaship,don'tdrumupthepeopletogatherwood,dividethework,andgiveorders.
Instead,teachthemtoyearnforthevastandendlesssea.
-AntoineDeSaint-Exupery,AuthorofTheLi^lePrince
79
Thebestmanagersfigureouthowtogetgreatoutcomesbyserngtheappropriatecontext,ratherthanby
tryingtocontroltheirpeople
80
Context,notControl
Context(embrace)• Strategy• Metrics• AssumpNons• ObjecNves• Clearly-definedroles• Knowledgeofthestakes• Transparencyaround
decision-making
Control(avoid)• Top-downdecision-making• Managementapproval• Commi^ees• Planningandprocessvalued
morethanresults
Providetheinsightandunderstandingtoenablesounddecisions
81
GoodContext
• Linktocompany/funcNonalgoals• RelaNvepriority(howimportant/howNmesensiNve)– CriNcal(needstohappennow),or…– Nicetohave(whenyoucangettoit)
• Levelofprecision&refinement– Noerrors(creditcardshandling,etc…),or…– Pre^ygood/cancorrecterrors(website),or…– Rough(experimental)
• Keystakeholders• Keymetrics/definiNonofsuccess
82
Managers:Whenoneofyourtalentedpeople
doessomethingdumb,don’tblamethem
Instead,
askyourselfwhatcontextyoufailedtoset
83
Managers:Whenyouaretemptedto“control”yourpeople,ask
yourselfwhatcontextyoucouldsetinstead
AreyouarNculateandinspiringenoughaboutgoalsandstrategies?
84
InvesNnginContext
Thisiswhywedonewemployeecollege,frequentdepartmentmeeNngs,
andwhywearesoopeninternallyaboutstrategiesandresults
86
ExcepNonsto“Context,notControl”
• Controlcanbeimportantinemergency– NoNmetotakelong-termcapacity-buildingview
• ControlcanbeimportantwhensomeoneissNlllearningtheirarea– TakesNmetopickupthenecessarycontext
• Controlcanbeimportantwhenyouhavethewrongpersoninarole– Temporarily,nodoubt
87
SevenAspectsofourCulture
• ValuesarewhatweValue• HighPerformance• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
88
ThreeModelsofCorporateTeamwork
1. TightlyCoupledMonolith2. IndependentSilos3. HighlyAligned,LooselyCoupled
89
TightlyCoupledMonolith
• SeniormanagementreviewsnearlyalltacNcs– e.g.,CEOreviewsalljoboffersoradverNsing
• Lotsofx-departmentalbuy-inmeeNngs• Keepingotherinternalgroupshappyhasequalprecedencewithpleasingcustomers
• Mavericksgetexhaustedtryingtoinnovate• HighlycoordinatedthroughcentralizaNon,butveryslow,andslownessincreaseswithsize
90
IndependentSilos
• EachgroupexecutesontheirobjecNveswithli^lecoordinaNon– Everyonedoestheirownthing
• WorkthatrequirescoordinaNonsuffers• AlienaNonandsuspicionbetweendepartments
• Onlyworkswellwhenareasareindependent– e.g.,aircrasenginesandblendersforGE
91
HighlyAligned,LooselyCoupled• HighlyAligned
– Strategyandgoalsareclear,specific,broadlyunderstood– TeaminteracNonsfocusedonstrategyandgoals,ratherthantacNcs– RequireslargeinvestmentinmanagementNmetobetransparentand
arNculateandpercepNve• LooselyCoupled
– Minimalcross-funcNonalmeeNngsexcepttogetalignedongoalsandstrategy
– TrustbetweengroupsontacNcswithoutpreviewing/approvingeachone–sogroupscanmovefast
– LeadersreachingoutproacNvelyforad-hoccoordinaNonandperspecNveasappropriate
– Occasionalpost-mortemsontacNcsnecessarytoincreasealignment
93
HighlyAligned,LooselyCoupledteamworkeffecNveness
dependsonhighperformancepeople
andgoodcontext
GoalistobeBigandFastandFlexible
94
SevenAspectsofourCulture
• ValuesarewhatweValue• HighPerformance• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
95
PayTopofMarketisCoreto
HighPerformanceCultureOneoutstandingemployeegetsmoredone
andcostslessthantwoadequateemployees
Weendeavortohaveonlyoutstandingemployees
96
ThreeTestsforTopofMarketforaPerson
1. Whatcouldpersongetelsewhere?2. Whatwouldwepayforreplacement?3. Whatwouldwepaytokeepthatperson?– Iftheyhadabiggerofferelsewhere
97ConfidenNal
TakesGreatJudgment
• Goalistokeepeachemployeeattopofmarketforthatperson– Paythemmorethananyoneelselikelywould– Paythemasmuchasareplacementwouldcost– Paythemasmuchaswewouldpaytokeepthemiftheyhadhigherofferfromelsewhere
98
TitlesNotVeryHelpful
• LotsofpeoplehavetheNtle“MajorLeaguePitcher”buttheyarenotallequallyeffecNve
• Similarly,allpeoplewiththeNtle“SeniorMarkeNngManager”or“DirectorofEngineering”arenotequallyeffecNve
• SotheartofcompensaNonisansweringtheThreeTestsforeachemployee
99
AnnualCompReview
• Atmanyfirms,whenemployeesarehired,marketcompensaNonapplies• ButatcompreviewNme,itnolongerapplies!
• AtNe#lix,marketcompalwaysapplies:– EssenNally,topofmarketcompisre-establishedeachyearforhighperformingemployees
– Atannualcompreview,managerhastoanswertheThreeTestsforthepersonalmarketforeachoftheiremployees
100ConfidenNal
NoFixedBudgets
• Therearenocentrallyadministered“raisepools”eachyear
• Instead,eachmanageralignstheirpeopletotopofmarketeachyear–themarketwillbedifferentindifferentareas
101
CompensaNonOverTime
• Somepeoplewillmoveupincompveryquicklybecausetheirvalueinthemarketplaceismovingupquickly,drivenbyincreasingskillsand/orgreatdemandfortheirarea
• Somepeoplewillstayflatbecausetheirvalueinthemarketplacehasdonethat– DependsinpartoninflaNonandeconomy– Alwaystopofmarket,though,forthatperson
102
CompensaNonNotDependentonNe#lixSuccess
• WhetherNe#lixisprosperingorfloundering,wepayatthetopofthemarket– SportsteamswithlosingrecordssNllpaytalentthemarketrate,togetbacktowinning
103
BadCompPracNces
• ManagersetspayatNthpercenNleofNtle-linkedcompensaNondata– The“MajorLeaguePitcher”problem
• Managercaresaboutinternalparityinsteadofexternalmarketvalue– Fairnessincompisbeingtruetothemarket
• Managergiveseveryonea4%raise– Veryunlikelytoreflectthemarket
104
WhenTopofMarketCompDoneRight...
• Wewillrarelycounterwithhighercompwhensomeoneisvoluntarilyleavingbecausewehavealreadymovedcomptoourmaxforthatperson
• EmployeeswillfeeltheyaregerngpaidwellrelaNvetotheirotheropNonsinthemarket
105
VersusTradiNonalModel
• TradiNonalmodelisgoodprioryearearnsaraise,independentofmarket– Problemisemployeescangetmateriallyunder-orover-paidrelaNvetothemarket,overNme
– Whenmateriallyunder-paid,employeesswitchfirmstotakeadvantageofmarket-basedpayonhiring
– Whenmateriallyover-paid,employeesaretrappedincurrentfirm
• Consistentmarket-basedpayisbe^ermodel
106
EmployeeSuccess
• It’spre^yingrainedinoursocietythatthesizeofone’sraiseistheindicatorofhowwellonedidtheprioryear– butforustheotherfactoristheoutsidemarket
• EmployeesuccessissNllabigfactorincompbecauseitinfluencesmarketvalue– InparNcular,howmuchwewouldpaytokeeptheperson
107
GoodForEachEmployeetoUnderstandTheirMarketValue
• It’sahealthyidea,notatraitorousone,tounderstandwhatotherfirmswouldpayyou,byinterviewingandtalkingtopeersatothercompanies– Talkwithyourmanageraboutwhatyoufindintermsofcomp
– StaymindfulofcompanyconfidenNalinformaNon
108
Efficiency
• Bigsalaryisthemostefficientformofcomp– MostmoNvaNngforanygivenexpenselevel– Nobonuses,nophilanthropicmatch– Instead,putallthatexpenseintobigsalaries,andgivepeoplefreedomtospendtheirsalariesastheythinkbest
– EmployeescandecidehowmuchNe#lixstocktheywant,versuscash
109
NoVesNngorDeferredComp
• Wedon’twantmanagersto“own”theirpeoplewithvesNng–allcompisfullyvested
• WewantmanagerstoberesponsibleforcreaNngagreatplacetowork,andpayingatthetopofmarket
• EmployeesarefreetoleaveusanyNme,withoutpenalty,butnearlyeveryonestays
• Employeesstaybecausetheyarepassionateabouttheirwork,andwellpaid,notbecauseofadeferredcompensaNonsystem
110
NoRankingAgainstOtherEmployees
• Weavoid“top30%”and“bo^om10%”rankingsamongstemployees
• Wedon’twantemployeestofeelcompeNNvewitheachother
• Wewantallofouremployeestobe“top10%”relaNvetothepoolofglobalcandidates
• Wewantemployeestohelpeachother,andtheydo
111
SevenAspectsofourCulture
• HighPerformance• ValuesarewhatweValue• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
112
InsomeNmeperiods,insomegroups,therewillbelotsof
opportunityandgrowthatNe#lixSomepeople,throughbothluckandtalent,willhaveextraordinarycareer
growth
113
BaseballAnalogy:MinorstoMajors• Verytalentedpeopleusuallygettomoveup,butonlytruefortheverytalented
• SomeluckintermsofwhatposiNonsopenupandwhatthecompeNNonis
• Somepeoplemovetootherteamstogettheopportunitytheywant
• Greatteamskeeptheirbesttalent• Someminorleagueplayerskeepplayingeventhoughtheydon’tmoveupbecausetheylovethegame
114
Ne#lixDoesn’tHavetoBeforLife
• InsomeNmes,insomegroups,theremaynotbeenoughgrowthopportunityforeveryone
• InwhichcaseweshouldcelebratesomeoneleavingNe#lixforabiggerjobthatwedidn’thaveavailabletoofferthem– Ifthatiswhatthepersonprefers
115
ThreeNecessaryCondiNonsforPromoNon
1. Jobhastobebigenough– Wemighthaveanincrediblemanagerofsomething,butwedon’tneedadirectorofitbecausejobisn’tbigenough• Iftheincrediblemanagerles,wewouldreplacewithamanager,notwithadirector
2. Personhastobeasuperstarincurrentrole– Couldgetthenextleveljobhereifapplyingfromoutsideandweknew
theirtalentswell– Couldgetthenextleveljobatpeerfirmthatknewtheirtalentswell
3. Personisanextraordinaryrolemodelofourcultureandvalues
116
Timing
• Ifamanagerwouldpromotetopreventanemployeefromleaving,themanagershouldpromotenowinsteadofwaiNng
• ThreetestssNllhavetobepassed1. Jobbigenough2. Superstarincurrentrole3. Personisanextraordinaryrolemodelofour
cultureandvalues
117
Development
• Wedeveloppeoplebygivingthemtheopportunitytodevelopthemselves,bysurroundingthemwithstunningcolleaguesandgivingthembigchallengestoworkon– Mediocrecolleaguesorunchallengingworkiswhatkillsprogressofaperson’sskills
118
Career“Planning”NotforUs
• FormalizeddevelopmentisrarelyeffecNve,andwedon’ttrytodoit– e.g.,Mentorassignment,rotaNonaroundafirm,mulN-yearcareerpaths,etc.
119
WeSupportSelf-Improvement
• Highperformancepeoplearegenerallyself-improvingthroughexperience,observaNon,introspecNon,reading,anddiscussion– Aslongastheyhavestunningcolleaguesandbigchallengestoworkon
– Wealltrytohelpeachothergrow– Weareveryhonestwitheachother
120
YourEconomicSecurityisbasedonyourSkillsandReputaNon
Wetryhardtoconsistentlyprovideopportunitytogrowbothby
surroundingyouwithgreattalent
122
SevenAspectsofourCulture
• ValuesarewhatweValue• HighPerformance• Freedom&Responsibility• Context,notControl• HighlyAligned,LooselyCoupled• PayTopofMarket• PromoNons&Development
123