Reed Hastings is implementing a Netflix management strategy at his latest project: a Utah ski resort. Hastings acquired a majority stake in Powder Mountain last year and is revamping its operational model. He is utilizing the "Keeper Test" to assess employees, similar to the approach he introduced at Netflix.
Bringing Netflix Management Principles to Powder Mountain
Reed Hastings has revealed that he is integrating his renowned management approach into his post-Netflix endeavor: one of the largest ski resorts in the US. The co-founder and former CEO of Netflix stated that there are parallels between running the streaming service and Powder Mountain, a Utah ski resort where he acquired a controlling interest.
The "Keeper Test" Philosophy
During an episode of the Prof G podcast, Hastings explained how both businesses operate on a subscription model – monthly for Netflix and seasonal for skiers. He emphasized the application of his key management philosophies at Powder Mountain, particularly the "keeper test" and competitive compensation packages.
Netflix's Embrace of the "Keeper Test"
Hastings elaborated on the "Keeper Test," highlighting the criteria of whether one would go the extra mile to retain an employee who is contemplating leaving. This approach focuses on retaining valuable team members rather than solely basing termination decisions on severe mistakes.
Application of the "Keeper Test" at Netflix
As the former CEO of Netflix, Hastings and his leadership team employed the "Keeper Test" to evaluate staff performance and make tough decisions. Reports suggest that Hastings even used this criterion to part ways with a long-serving product chief, demonstrating a commitment to maintaining a high-performing workforce.
Impact of the "Keeper Test" at Netflix
Employees who do not meet the "keeper" standard are offered generous severance packages in a respectful manner. This approach enables the company to continuously enhance its team by replacing underperformers with individuals who contribute positively to the organization's success.
Transformation of Powder Mountain
Reed Hastings is spearheading the transformation of a ski resort located approximately 80 miles north of Park City, Utah. Following a $100 million investment and a 10-year development agreement, the financially struggling resort is undergoing a revitalization process. Certain sections of the resort have been designated for private use, catering to homeowners and exclusive skiing experiences.
Job Opportunities at Powder Mountain
The ski resort offers employment opportunities starting at $20 per hour along with comprehensive benefits, as highlighted on Powder Mountain's official website. The initiative aims to attract skilled individuals to contribute to the resort's growth and success.
Source: Business Insider
—————————————————————————————————————————————
By: shubhangigoel@insider.com (Shubhangi Goel)
Title: Reed Hastings Applies Netflix Management Technique to Utah Ski Resort
Sourced From: www.businessinsider.com/reed-hastings-bringing-netflix-management-test-ski-resort-powder-mountain-2024-12
Published Date: Mon, 02 Dec 2024 07:51:46 +0000
Leave a Reply