Trust lessons for leaders from global expert Rachel Botsman

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AI Risks and Regulations: Leadership Action Guide

Did you know a high performer can deliver 400% more productivity than the average performer? ([HBR](https://hbr.org/2014/11/what-high-performers-want-at-work)) 

Then imagine having ALL high performers on your team.  

Netflix calls it "**talent density**" - the concentration of extraordinary performers who elevate everything they touch.

Netflix deliberately built its culture around this principle, creating a workplace where _every_ colleague is someone you'd fight to keep and learn from daily.

Does this describe your team? If not, read on. 

You'll hear from business leaders (including our past and upcoming speakers) why having the right people matters so much, and how disciplined hiring and [retention practices](https://thegrowthfaculty.com/articles/retentionmethods) can transform your team's performance.

What is Talent Density?

In his landmark book _"Good to Great,"_ [Jim Collins](https://thegrowthfaculty.com/articles/jim-collins-leadership-researcher-the-growth-faculty) introduced a concept that has become fundamental to talent management: "First who, then what." 

Collins observed that great companies **focused first** on getting the right people "on the bus" (and the wrong people off it) before deciding where to drive it.

"The executives who ignited the transformations from good to great did not first figure out where to drive the bus and then get people to take it there," Collins writes. "No, they first got the right people on the bus (and the wrong people off the bus) and then figured out where to drive it."

This insight flips conventional wisdom on its head. The [foundations of leadership](https://thegrowthfaculty.com/articles/foundations-of-leadership) usually state a strong vision or strategy is the first step to building a great organisation. 

But Collins and his research team showed that exceptional companies prioritised assembling the right team _before_ defining their direction.

Jim Collins: Getting the Right People on the Bus

Collins also identified what he calls ["Level 5 Leadership"](https://thegrowthfaculty.com/articles/levelfiveleadership) - leaders who combine personal humility with professional will. 

These leaders understand that their job isn't to be the smartest person in the room but to **build a team of smart, capable people** who can drive the organisation forward, even in the leader's absence.

The companies Collins studied didn't just hire good people - they hired **the** **best** they could find, even if it meant leaving positions open longer or investing more in recruitment. 

They understood that in a competitive landscape: _Average talent produces average results._

Level 5 Leadership 

Perhaps no company has embraced the concept of talent density more explicitly than Netflix. In their book _"No Rules Rules,"_ Reed Hastings (Netflix CEO) and Erin Meyer (professor at INSEAD business school) outline how Netflix transformed its culture by focusing relentlessly on hiring and retaining _only_ the most **exceptional performers**.

Hastings describes Netflix's approach: "We're like a professional sports team, not a family. We hire, develop, and cut smartly, so we have stars in every position."

#### **Professional Sports Team – NOT Family**

This sports team analogy is powerful. Professional sports teams don't keep players based on effort, loyalty, or tenure - they retain them based on their current **performance** and **future potential**.

All Black rugby legend [Dan Carter, author of “The Art of Winning”](https://thegrowthfaculty.com/articles/dancartertheartofwinningsummary) knew this. A simple mantra is always kept in mind: **What’s best for the team?** Dan points to the most famous of the [15 All Blacks mantras](https://www.thegrowthfaculty.com/blog/summaryLegacyAllBlacksJamesKerrbook) of Sweep the sheds which means pulling your weight on and off the field.

 Similarly, Netflix doesn't promise job security or advancement based on years of service. Instead, they offer the opportunity to work alongside “**stunning  colleagues**” (a Netflix term) on challenging problems.

Meyer explains in the book that this high talent density creates a **virtuous cycle**: "When you have a team consisting exclusively of excellent performers, you get more done with fewer people. When you get more done with fewer people, you eliminate the need for processes to coordinate work between them."

Netflix: The Professional Sports Team Model

One of Netflix's mechanisms for maintaining this talent density is "the keeper test." 

Leaders are given this scenario: _"If a person on your team were to quit tomorrow, would you try to change their mind? Or would you accept their resignation, perhaps with a little relief? If the latter, you should give them a severance package now and look for a star."_

This might sound harsh, but Netflix balances this approach with extraordinary transparency and generous severance packages for those who are asked to leave. 

They believe it's better for both the company and the individual to part ways quickly if there isn't a strong match, rather than prolonging an unsuitable arrangement.

The Netflix “Keeper Test”

Patrick Lencioni explains this [framework for a high-performing team](https://thegrowthfaculty.com/articles/patrick-lencioni-frameworks-for-high-performing-teams) in his book _"The Ideal Team Player."_ Rather than focusing primarily on skills or achievements, Lencioni emphasises three essential virtues: **humility, hunger**, and **people smarts**.

He says team members who possess all three virtues will naturally build a high-performing environment. Those who lack one or more traits can actively undermine team effectiveness, regardless of their technical skills.

#### **Danger of Not Humble, Not Hungry, Not Smart About People**

"When we hire someone who is not humble, the cost to teamwork is great," Lencioni writes. "When we hire someone who lacks hunger, their impact on team performance is immense. And when we bring someone on board who is not smart about people, the team's efficiency and effectiveness are significantly hindered."

Lencioni's framework is particularly useful because it focuses not just on individual capability but also on the traits that allow talented individuals to function effectively as **part of a cohesive unit**. 

The most technically skilled person can be detrimental to a team if they lack humility, drive, or interpersonal intelligence.

Patrick Lencioni: The Ideal Team Player

Shannon Byrne Susko, founder of the Metronomics system and author of _"3HAG Way,"_ told our recent masterclass [“Building A-player Teams”](https://thegrowthfaculty.com/articles/building-a-player-teams-with-shannon-byrne-susko) that A-players made growth so much easier.

"Growing a company with an A-player team is a lot easier than growing a company with an A, B, and C player team,” she says.

"A-Players are running out in front of you. A B-player is running a bit behind you, and a C-player is so far back they're walking."

With a mix of capabilities, leaders risk spending their time cheering on A-Players while dragging B-Players along and carrying C-Players, draining precious time and energy that could be directed toward growth.

Shannon Byrne Susko: The A-Player Advantage 

Whitney Johnson in her book _"Build an A-Team."_ Johnson suggests that high-performing teams need people at various stages of their learning curves.

"The most effective teams," Johnson writes, "are comprised of people operating at different points on their individual S-curves \[of learning\]." This includes some who are in the early, challenging stages of mastering new roles, some in the **sweet spot of high productivity** and engagement, and some who have reached the top of their curves and are ready for new challenges.

Developing people internally with continuous learning (see [how Investing in Learning Fuels Growth at Aurion](https://thegrowthfaculty.com/articles/aurion-case-study)) helps to retain their best people while continuing to increase their capabilities.

Whitney Johnson: Building an A-Team Through Development

The logic behind creating talent density is compelling, but implementation can be challenging. Here are some practical considerations and approaches:

**1\. Defining "Exceptional" for Your Context**

What makes someone exceptional varies widely across industries, organisations, and roles. Reed Hastings notes in _"No Rules Rules"_ that Netflix looks for people who are both extraordinarily skilled and aligned with their values of candour, freedom, and responsibility.

Before you can build talent density, you need to clearly define **what excellence looks like** in your specific context. This involves identifying not just the technical skills but also the behaviours and mindsets that drive success at your work.

**2\. Making Disciplined Hiring Decisions**

Once you know what you're looking for, the next challenge is maintaining the discipline to hire _only_ people who meet these high standards. This often means:

*   Accepting longer vacancies rather than settling for adequate candidates
*   Creating rigorous, multi-stage interview processes that test for the specific attributes you need
*   Involving existing high performers in hiring decisions
*   Being willing to offer compensation that attracts exceptional talent

Jim Collins observes that great companies were willing to look longer and pay more to get the right people. "They used the 'Who' question - 'Who is the right person for this job?' - as the primary hiring criterion, rather than skills, background, or experience."

**3\. Making Tough Retention Decisions**

Perhaps the most difficult aspect of building talent density is making decisions about current team members who aren't meeting the bar. As Reed Hastings puts it in _"No Rules Rules,"_ "Adequate performance gets a generous severance package."

This doesn't mean implementing capricious firing practices or creating a culture of fear. Rather, it means:

*   Setting clear expectations about performance
*   Providing regular, honest feedback
*   Offering support and development opportunities
*   Making prompt decisions when it becomes clear someone isn't the right fit

Erin Meyer writes in _"No Rules Rules_" that Netflix pairs its high-performance expectations with unusual levels of transparency and generosity: "Netflix culture…is famous – or infamous, depending on your point of view – for telling it like it is.”

They **tell people the truth** about where they stand, and if they're not right for the company, they let them know that candidly, with a generous severance package, rather than carrying them along.

**4\. Creating the Right Environment for Top Performers**

Exceptional people typically want autonomy, challenge, and purpose. They want to work with **other high performers**, and they want their efforts to matter.

Jim Collins found that in great companies, "people had tremendous freedom and responsibility within the framework of a highly developed system." Similarly, Netflix has built a culture of "Freedom and Responsibility" where top performers are given **significant autonomy** but held to high standards of accountability.

Patrick Lencioni adds that truly cohesive teams need more than just individual talent—they need an environment of trust where people can engage in productive conflict, commit to decisions, [create a culture of accountability](https://thegrowthfaculty.com/articles/accountabilityproductivity), and focus on collective results.

The Practical Challenges of Building Talent Density

When your workplace successfully builds talent density, the results can be remarkable:

1.  **Increased Innovation**: When highly capable people collaborate, innovation accelerates. As Hastings notes in _"No Rules Rules,"_ Netflix found that "high performance begets more innovation, which attracts more high performers."
2.  **Reduced Need for Process Controls**: Meyer explains that organisations with lower talent density need more processes to prevent errors and ensure quality. Conversely, when you have exceptional people, you can often eliminate bureaucracy. "People do feel the burden of responsibility that comes with the freedom and make extra efforts accordingly," she writes.
3.  **Improved Employee Experience**: Contrary to what some might expect, high-performance cultures can actually improve job satisfaction. Whitney Johnson notes that people are happiest when they're making progress on meaningful work. Additionally, top performers typically prefer working with other top performers who raise their game.
4.  **Better Business Results**: Ultimately, talent density drives business performance. Jim Collins found that companies making the leap from good to great had dramatically better results than their competitors, which he attributed largely to their people decisions.

The Results of Talent Density

Building and maintaining talent density requires courage, discipline, and a clear vision of excellence. It means making tough decisions about hiring and retention, sometimes choosing short-term discomfort over long-term mediocrity.

As Jim Collins puts it, "Great vision without great people is irrelevant." You may have the most brilliant strategy, the most innovative product, or the most efficient processes, but without **the right people** executing it all, your company or organisation will fall short of its potential.

Reed Hastings frames the choice bluntly in _"No Rules Rules"_: "Do not tolerate brilliant jerks, because the cost to teamwork is too high." And Patrick Lencioni reminds us that team effectiveness depends not just on individual capability but on **how well people work together**: "Not finance. Not strategy. Not technology. It is teamwork that remains the ultimate competitive advantage."

So, if want to build something truly exceptional, start by building an **exceptional team**. This means defining what excellence looks like in your context, hiring in a disciplined way, sometimes making tough decisions about current (even adequate) team members, and creating an environment where top performers can thrive.

In the words of Whitney Johnson, "Be strategic with your hires – every one of them." The path to greatness runs straight through your talent strategy.

Article Summary

When we approach professional development as a collaborative activity rather than a solo pursuit, we don't just build knowledge—we build stronger teams.

Our live learning sessions are designed with these principles at heart. They're not just about delivering information; they're about creating spaces where teams can discover together, challenge each other, and build the shared understanding that drives real innovation.

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How Talent Density Creates High-Performing Teams

Expert Business Leaders Explain Why a Team Thick with Talent Drives Exceptional Results

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Keep informed
Stay Inspired