Notes on Performance Contagion in No Rules Rules

Reed and Erin suggest that low performers on a team tend to bring down the performance of everyone on the team. Conversely high performers on the team bring up the performance of everyone on the team—performance is contagious. This makes intuitive sense and aligns with what many of our personal experiences. Who has not had a group project dragged down by a disinterested member?

They are serious about applying this knowledge. They identify and let their low performers go.  The "talent density" they have remaining is the key to the success of a host of interesting policies they implement (open feedback, lack of controls, etc.). It is "[t]he most critical dot for the foundation of the whole Netflix story".

Generally speaking, I'm supportive of this policy. Large organizations seem to keep people around that they should not, and even worse, promote them. That is an aggravating and soul crushing environment to be in. It is good to have a company commit to high standards and follow through.

I have some doubts about the exact characterization of the problem however.

The emphasis is very much on performance. I have nothing against this intrinsically, but the evidence they cite does not actually seem to line up with that conclusion. They reference a study by Dr. Felps where actors who were tasked with exhibiting different behaviors were planted in groups and their effects on the group were studied. The actors played the part of a slacker, jerk, depressive pessimist, etc. They found that bad behavior brought down team performance dramatically.

But note that the actors were tasked with exhibiting different behavioral traits, not performance traits. Going by the study, it's bad behavior that brings a team down, not an average performer. Reed's provides a personal anecdote to support the claim, but this is also about behavioral issues (organizing fights in school).

It is an important distinction. It may still be true that performance traits have the same contagious nature as behavioral traits, but that needs justification. It is quite plausible that an earnest but average performer who is very passionate about work and the product can drive group performance up.  It would be a shame if they were let go.