Georgia Institute of Technology Leadership Challenge Course

1. GT Leadership Program: TEAM PROJECT
Leadership Case Study of Reed Hasting (CEO of NETFLIX)
Tanad Lerdbussarakam1, Yugo Hamakawa2, Hiroki Naganuma3
1 Transdisciplinary Science and Engineering Tokyo Institute of Technology
2 Industrial Engineering and Economics, Tokyo Institute of Technology
3 Computer Science, Tokyo Institute of Technology
March 13rd, 2019 @ West Commons, Explore LLC Classroom, Georgia Institute of Technology
Georgia Institute of Technology Leadership Program March 2019

2. Outline
Leadership Case Study of
Reed Hasting (CEO of NETFLIX)
2019
Wilmot Reed Hastings Jr. (born October 8, 1960) is an
American entrepreneur and philanthropist. He is the co-
founder, Chairman and CEO of Netflix and serves on the
boards of Facebook and a number of non-profit organizations.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion

3. Outline
What IS NETFLIX
2019
Netflix is the streaming service company started in 1996. The
company has over a 130 millions subscribers around the
world(number of country). It’s hard to denied how much influential
Netflix have been in the entertainment industry right now.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion

4. 1-1. Netflix
! America media-services provider
(Video streaming, Content
production)
! Over 139 million paid subscription
worldwide
! Revenue of 15 billion US dollars with
7100 employees in 2018
-> 2 millions per person (on average)

5. Outline
Reed Hasting
2019
A brief history of the guy who found
Netflix.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion

6. •Born in 1960 in Boston, Massachusetts
•Bachelor of Science (Math), Bowdoin College
Master of Computer Science, Stanford University
•Co-founder and CEO of Netflix
1-2a. Reed Hastings

7. ● The idea of starting a media-service company is started from
the overdue DVD from Blockbuster, this is what Reed Hastings
claimed on the origin of Netflix…..
1-2b. How he started Netflix

8. ● In mid-90s He claimed that He lost the rented Apollo 13
● The penalty is $40
● That is what drawn him to media-service business
1-2b. How he started Netflix
Motivation behind this

9. 1998 - Co Founded Netflix with Marc Randolph
as a flat rated DVD rental-by-mail company
1999 - Start a monthly subscription system
1-2c. History of Netflix

10. 1-2c. History of Netflix
2007 - Netflix turned to streaming service
2013 - Start the original content / Change
target to total streaming members

11. Outline
Summary of Leadership Style
2019
As we seen from how Reed Hastings found and managed his
company, Netflix. We can identify his leadership style through
2 approaches he made in his company.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion

12. 2-1. Leadership style
• Toward to egalitarian style of leading
• Innovative management style
• Better environment for great talents on their creative
freedom but still ensure the standard of an output
• A lot of decisive change to the company
• Monthly subscription
• Streaming service

13. Outline
LEADERSHIP
ELEMENTS
2019
We introduced his two his leadership styles.
We analyzed that he has 8 key elements to support his
leadership styles.And this elements are divided into value and
culture.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion

14. Value
Judgement
Courage
Innovation
Impact
2-1. 8 Key Elements
Culture
High
Performance
Responsibility
Reward
Freedom

15. Outline
Ex1 w/ analysis
2019
Reed Hasting succeed in make Netflix the top company in the
world. His leadership has led Netflix to the top company.
We will analyze his leadership in transformation of the
business model that was the biggest decision of his choice.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion

16. 3-1. Ex1) Business Model Change
“ It seemed inevitable that streaming
entertainment would eclipse DVDs”
• He changed DVD rental company
to streaming service company
• He decided to make original
content
• He separated DVD mail-order
business and streaming business
2007 - Netflix turned to streaming service
2013 - Start the original content / Change
target to total streaming members

17. 3-1a. Ex1) Analysis Judgement
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart

18. 3-1b. Ex1) Analysis Impact and Innovation
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart
1. Anytime
3. Anywhere ?
2. Anyhow

19. 3-1c. Ex1) Analysis Courage
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart

20. Outline
2019
Netflix's culture and mindset of employees are special and
different from other companies. He cultivated those culture
and mindset. It is worthy of great leadership.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion
Ex2 w/ analysis

21. 3-2. Ex2) Culture for employees
“ I pride myself on making
as few decisions as possible
in a quarter”
Culture
High
Performance
Responsibility
Reward
Freedom

22. 3-2a. Ex2) Analysis High Performance
“ We’re like a sports team,
not like a family not a kid’s
recreational team”
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart

23. 3-2b. Ex2) Analysis Freedom & Responsibility
“Hastings enables his
employees to take charge.
His minimal involvement is a
way of empowering
employees.
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart

24. 3-2c. Ex2) Analysis Reward
“ A level workers should be
reward reward-even if they
are producing great work ”
“Compensation does not
depends on Netflix success”
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart

25. Outline
2019
We analyzed his leadership styles and leadership elements.
From this analysis, we will apply his leadership to framework.
He has all of leadership skill, knowledge and talent for 5
components.
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion
Conclusion

26. 3-2c. Ex2) Analysis Efficiency4-1. Conclusion
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart
Egalitarian
Judgement, High Quality
Change
Impact and
Innovation
Courage
High Quality,
Freedom and
Responsibility
Reward

27. Outline
2019
We have learned how Reed Hastings using his leadership
elements to be successful in his career. How can we learned
from him to develop ourselves a leadership skill? What can we
take as a point for us in our own application?
1. Background
2. Briefing of Leadership
WHAT IS
Reed Hasting
Summary of
Leadership Style LEADERSHIP
ELEMENTS
3. Situation base Analysis
Ex1
Ex2
4. Conclusion
RECOMMENDATION

28. 4-2. Recommendation
Model
the way
Inspire a
shared
vision
Challeng
e the
process
Enable
others to
act
Encourage
the heart
Activator, Achiever,
Focus
Belief, Significance,
Self-Assurance
Analytical, Futuristic
Ideation
Communication,
Harmony, Includer
Command,
Competition,
Developer, Woo

29. Produced by
Tanad Lerdbussarakam, Yugo Hamakawa, Hiroki Naganuma
Tokyo Institute of Technology
Georgia Institute of Technology Leadership Program 2019,
Thanks go to
Stacey/Wes, Kelci, Emily, Dr. Gerome Stephens, Ted Wed, Dr. Davis,
members of Georgia Tech Japan Student Association, Prof. Ohta, Goto
Special Thanks go to