In a recent podcast, Netflix founder and chairman Reed Hastings shared the strategies that helped build Netflix into the $240 billion behemoth it is today.
Great leaders never miss important feedback, Hastings told entrepreneur Tim Ferriss on the podcast.
He called it „farming for the opposition.“
„If you're a leader, it's important to advocate for opposing views. Isn't it normal to disagree with your boss? We learn respect,“ Hastings said, adding that employees sometimes disagree with their boss. He added that there was a need for „active discussion.“ This is an essential element for fostering innovation.
„In most companies it's emotionally difficult to disagree with your boss, so we call it cultivating dissent,“ he said.
Hastings, who served as Netflix's CEO for more than 20 years before becoming chairman in 2023, once a year asks „50 executives'' what they would do if they were in charge of the company. „What would be different?'' he said.
This learning helped him develop better strategies. „We give everyone (submit a rating) from 10 to -10, whether they think it's a smart idea or not.“
Hastings also cited Amazon founder Jeff Bezos' process of reading bad reviews from Amazon customers to build a „culture of high standards“ at the company.
Bezos advised people to listen to their critics and carefully decide whether their claims are correct. Hastings said the company's failed attempt to rebrand its DVD-by-mail service to a separate company called Qwickster in 2011 prompted the company to seek critical feedback.
The decision was rejected by customers, the stock price took a huge hit, and Hastings was forced to apologize and reverse the decision.
The episode, which he calls the „biggest failure“ of his career, helped him seek more opinions before making big decisions.