Is your boss obsessed with KPIs? Tell him how Netflix works, closed a deadline, solved customer problems, cleared other people's problems? Doesn't matter. If you haven't received calls, tasks or report corrections, you'll get less money. Welcome to a world where the ability to report is sometimes valued over the ability to execute. Why does KPI become a circus? There is Goodhart's law: when a measure becomes a goal, it ceases to be a good measure. The manager calls everyone for a plan. The developer divides one task into ten. The content guy puts out pointless posts for the sake of quantity. The numbers are growing. No benefit required. And if a bonus depends on a KPI, the employee must choose between real work and fulfilling the plan, even when this is against the interests of the company. Netflix: how the "rock star" system works. Netflix did not rely on bonuses for meeting KPIs, but on strong experts. The approach is based on three principles. 1 complete like a rock star. The company studies the market and offers higher salaries to strong candidates. Instead of a "salary + bonus" plan, there is a high salary without reference to KPI achievement. why? Annual goals can be outdated, and chasing a bonus can distract you from what's really important. 2 to assemble a team of the strongest. Netflix believes that top talent can produce disproportionate results. And a strong team helps everyone grow: colleagues learn from each other, debate the advantages and raise the common bar. 3 The main rule is that there are no rules. Less instructions and micromanagement, more independence. The context and goals of the business are explained to employees so they can make their own decisions. Not only does Netflix not have a vacation schedule, but there is no legal length of vacation. Every employee can rest as much as he wants, and when he wants - the main thing is that the activity is beneficial. But freedom does not mean permissiveness: the demands are high, and those who do not meet the expectations may be asked to leave.

Is your boss obsessed with KPIs? Tell him how Netflix works, closed a deadline, solved customer problems, cleared other people's problems? Doesn't matter. If you haven't received calls, tasks or report corrections, you'll get less money. Welcome to a world where the ability to report is sometimes valued over the ability to execute. Why does KPI become a circus? There is Goodhart's law: when a measure becomes a goal, it ceases to be a good measure. The manager calls everyone for a plan. The developer divides one task into ten. The content guy puts out pointless posts for the sake of quantity. The numbers are growing. No benefit required. And if a bonus depends on a KPI, the employee must choose between real work and fulfilling the plan, even when this is against the interests of the company. Netflix: how the "rock star" system works. Netflix did not rely on bonuses for meeting KPIs, but on strong experts. The approach is based on three principles. 1 complete like a rock star. The company studies the market and offers higher salaries to strong candidates. Instead of a "salary + bonus" plan, there is a high salary without reference to KPI achievement. why? Annual goals can be outdated, and chasing a bonus can distract you from what's really important. 2 to assemble a team of the strongest. Netflix believes that top talent can produce disproportionate results. And a strong team helps everyone grow: colleagues learn from each other, debate the advantages and raise the common bar. 3 The main rule is that there are no rules. Less instructions and micromanagement, more independence. The context and goals of the business are explained to employees so they can make their own decisions. Not only does Netflix not have a vacation schedule, but there is no legal length of vacation. Every employee can rest as much as he wants, and when he wants - the main thing is that the activity is beneficial. But freedom does not mean permissiveness: the demands are high, and those who do not meet the expectations may be asked to leave.