What founders, investors and authors say works — summarised in plain words, linked to
the source, and tried on the businesses we run. When enough of them have tried it, we say whether it worked.
121 classics · all free0 being tested0 with a verdict5 businesses before a verdict
Hiring and the team
A small team of A+ players beats a big team of B and C players
Steve Jobs: Co-founded Apple; led the Mac, iPod and iPhone, and ran Pixar.
In creative and technical work the gap between the best person and an average one is huge (Jobs put it at 50 or 100 to 1), so a small group of the very best will outrun a much larger group of average people. Hiring should hold out for exceptional people and not simply fill seats.
When it applies: A company is deciding whether to grow headcount quickly or to wait for exceptional hires.
Can't test here
It is about hiring human staff. Our businesses are run by agents and cannot run a hiring experiment within months.
Jeff Bezos: Founded Amazon in 1994 and grew it from an online bookstore into a giant.
“Look, I know we disagree on this but will you gamble with me on it? Disagree and commit?”
When there is no consensus, people can say they disagree and then fully back the decision anyway, so work does not stall waiting for agreement. Bezos says this runs both ways: he backs his teams on calls he doubts.
When it applies: A team or partnership keeps reopening a decision that someone needs to own.
Can't test here
It is about how people in a team handle disagreement. An agent-run business has no team dispute to measure, and the effect would not show up as a clean business metric.
Jeff Bezos: Founded Amazon in 1994 and grew it from an online bookstore into a giant.
“no team should be big enough that it would take more than two pizzas to feed them.”
Keep teams small (under about ten people) and give each one full ownership of a specific product or service, so it can decide and ship without coordinating with many other groups. According to Working Backwards, Amazon later put less weight on team size and more on having one leader who owns each outcome.
When it applies: A growing organization is slowing down because many groups have to coordinate on every decision.
Can't test here
It is about structuring human teams inside a growing company. Our businesses have no staff teams to resize.
Netflix culture: freedom and responsibility, and the keeper test
Reed Hastings: Co-founded Netflix and led it as CEO for 25 years.
Patty McCord: Netflix's chief talent officer for 14 years; co-wrote its famous culture deck.
“if X wanted to leave, would I fight to keep them?”
Give employees wide freedom and context instead of rules and approvals, and keep only people who can handle that freedom. Managers regularly ask whether they would fight to keep each person, and part ways generously with those they would not.
When it applies: A company with human staff is deciding how much process to impose and what to do about adequate but not outstanding performers.
Contested. Critics say the keeper test breeds fear and high turnover, and Netflix's own memo admits it 'can sound scary'. Letting go of people for merely adequate work can bring legal and reputational exposure depending on jurisdiction, and needs fair process and severance. Freedom without enough context leads to costly mistakes.
Can't test here
It is about hiring, firing and managing human employees, which our agent-run businesses do not do.
Keith Rabois: Early executive at PayPal, LinkedIn and Square, turned venture investor.
Most capable employees are 'ammunition': they do good work once pointed at a task. A company's speed is capped by its 'barrels', the rare people who can take an idea from start to shipped on their own. To go faster, add barrels, not more ammunition.
When it applies: A growing company keeps adding people but its output is not rising.
Can't test here
It is about spotting and hiring rare human operators. Our businesses do not hire, and the effect plays out over many months of team building.