Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Andy Serwer review Netflix CEO Reed Hasting’s new book, and discuss different CEO management techniques.
ALEXIS CHRISTOFOROUS: The pandemic has changed how a lot of CEOs think about their workforce. And the new book from Netflix co-CEO, Reed Hastings, unveiled a different approach to keeping and getting rid of talent while building a successful business. Our editor in chief, Andy Serwer, is here with us now. Happy Monday morning to you Andy. A lot of CEOs, I guess, reveal their secrets in this book. Did anything in particular stick out to you?
ANDY SERWER: Well, you know, it’s interesting because Reed Hastings is sort of quietly been known, Alexis, for someone with some very serious management chops. And he has something called the Netflix “culture deck,” which has been out on the internet for about a decade that is a widely read document in terms of how to run a company. And Netflix is a little bit different.
They believe in some very radical transparency. They believe in not having a vacation policy. There’s no talking behind coworker’s backs. And also no matter how good you are, if you’re just good and another better person comes along, you are out, and that applies to just anyone across the board at the company, Hastings says, including himself.
BRIAN SOZZI: Andy, how does Reed Hastings management style compare to, let’s say, perhaps one of the biggest legends in management, Jack Welch, or at least he was once a legend in management?
ANDY SERWER: Yeah, you know, it’s interesting because these kind of CEOs who are gurus come and go a little bit. And I was saying that right now, you know, he’s someone people really look to as well as Jeff Bezos, of course, and Ray Dalio from Bridgewater. Jack Welch used to be that guy, right? Say, 20 years ago, when he was running GE at its heyday, you know, he could do no wrong. He was writing best sellers and then he retired.
And then ever since then, the stock was at $60, it’s about $6 now. Ever since then, we’ve been learning more about Jack Welch and his time there, the late Jack Welch, and really he wasn’t all that. And you know, he ran it with GE Capital was kind of a black box and set– setup his successor, Jeff Immelt, for a very rough patch. And so you have to be careful if you’re a CEO putting this stuff out there that you’re really walking that talk.