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That Will Never Work: Netflix Co-founder on How They Beat the Odds

That Will Never Work: Netflix Co-founder on How They Beat the Odds

FromGreat Leadership With Jacob Morgan


That Will Never Work: Netflix Co-founder on How They Beat the Odds

FromGreat Leadership With Jacob Morgan

ratings:
Length:
63 minutes
Released:
Oct 5, 2020
Format:
Podcast episode

Description

Marc Randolph is the co-founder and founding CEO of Netflix. He also served on the board of Netflix up until 2003. And Netflix wasn’t his only startup, he’s founded or co-founded 6 other successful startups. He is also the author of the bestselling book, That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea.  From very early on Marc was entrepreneurial. As a kid he was always trying to find problems and unique ways to solve them. He sold seeds door to door, did candy arbitrage, he even carried a notebook around with him to write down invention ideas he had. He was always starting clubs and groups and coming up with products throughout high school and college. And as Marc shares, one of the keys to being an entrepreneur is practice, practice, practice.  In his early career Marc had a small startup that he was helping run. After the company was sold he had to find something else to do so he went to work at another startup company which just happened to be led by a man named Reed Hastings.  How Netflix came to be Marc and Reed ended up carpooling to work each day so they got to know each other pretty well. One day they found out that the startup they were working for was being acquired and they both would be losing their jobs in the merger. So they had to figure out their next move. Marc had several more ideas for products and companies so he wanted to continue his successful journey with startups (he had done 5 previously). But Reed wasn’t as eager to start another company, he had other plans. But they came to an agreement that if Marc came up with a great idea Reed would be the angel investor and he would share the board.  So Marc got to work to come up with the next winning idea. And as they carpooled into work Marc would pitch Reed his ideas. And after many not so great ideas such as personalized dog food and customizable shampoo, Marc pitched an idea that at the time didn’t make sense, but that later on would become Netflix. They both agreed that in theory the idea was a great one. The only problem was that at the time he came up with the idea of video rental by mail the only video format was the VHS cassette which was heavy and expensive to ship. So that idea at the time was discarded with the dog food and the shampoo.  It just so happened that at a later date Reed found an article about a new technology called the DVD and realized this could be the missing piece to an otherwise great business idea. So they went and got a used music CD and a small envelope and they mailed it to themselves to see what would happen. And in less than 24 hours they had the small envelope with an unbroken CD in their mailbox and they knew they had something.  How to scale culture  As Marc shares culture is not just what you say, it’s not something that you put up on posters around the office, or some catch phrases that you come up with in a meeting. He says, “Culture is how you act. It's how you are, it's the things you do. And even more importantly, culture springs from how the founders and the early employees act with each other, with their employees, with their customers. And so, huge amounts of the Netflix culture arised organically, from the way that Reed and I behaved, the way that I treat people, the way I worked with people before.” When Netflix first started as a company they had a very small staff of around 20 or so people and most of them had worked together before in other companies. So it made it easier to maintain a culture at that point. Marc says he knew that he could ask an employee to take ownership of a project due in two weeks and then know that in two weeks they would show up with the results no matter what. The small team worked really well together and had a culture of mutual respect, trust, and ownership. But that gets hard to maintain when your company grows and you have 100, 500, or 1,000+ employees.  “When you get bigger, something happens where someone shows up late, or they show up but don't hav
Released:
Oct 5, 2020
Format:
Podcast episode

Titles in the series (100)

Join futurist, best-selling author, and speaker Jacob Morgan as he explores the future of work. In this podcast Jacob sits down with some of the world's top business leaders and authors to get their perspectives, insights, and ideas on everything from technology and artificial intelligence, employee experience, leadership, careers and jobs, workforce trends, diversity and inclusion, purpose and meaning, the 4th industrial revolution, data and analytics, and a whole lot more! You will also learn the unique strategies and approaches that the top organizations around the world are deploying for their own workforce. Jacob's work has been endorsed by the CEO's of: T-Mobile, KPMG, Cisco, Schneider Electric, SAP, Nestle, Best Buy, St. Jude Children's Research Hospital, the owner of the Golden State Warriors, and many others. If you want to future proof your career and your organization then this is the show for you