Netflix co-CEO Ted Sarandos has revealed that he draws significant leadership insights from fiction rather than conventional management literature. During an interview with CNBC’s Leaders Playbook on March 13, 2024, Sarandos, aged 61, expressed his preference for novels, citing them as vital tools for navigating complex business challenges.
Sarandos highlighted his admiration for Joseph Conrad’s novella, Typhoon, first published in 1902. He described it as “the most powerful leadership story I’ve ever read,” despite its non-traditional setting. The narrative revolves around a steamship captain and his crew confronting a fierce storm, which Sarandos believes encapsulates the essence of leadership.
“I read it over and over again because I find I get something different in the book every time I read it,” Sarandos stated. Initially, he perceived the captain’s actions as reckless but later understood the deeper lessons regarding guiding others through uncertainty. “The real leadership test is: How do you manage through that?” he reflected, emphasizing the importance of resilience in leadership roles.
Lessons from Fiction Applied to Netflix
Sarandos connected the themes from Typhoon to his own experiences at Netflix. Approximately ten years after he joined the company as head of content operations, he made a bold decision to invest $100 million in Netflix’s first original series, House of Cards. He approved two seasons of the show without consultation from CEO Reed Hastings. “If it succeeds, we could completely transform the business as we know it,” Sarandos said, illustrating the risks and rewards inherent in leadership.
His narrative reflects a broader trend among leaders who draw inspiration from literature. During the same discussion, David Risher, CEO of Lyft Inc., shared insights from his time working with industry titans like Bill Gates and Jeff Bezos. Risher credited Gates for teaching him to focus on weaknesses rather than strengths and highlighted how Bezos’s customer-centric approach significantly contributed to Lyft’s record performance in 2024.
Similarly, Kevin O’Leary, a prominent investor, revealed that a productivity framework inspired by Steve Jobs transformed his work ethic. O’Leary emphasized the importance of completing three critical tasks each day to enhance efficiency and accelerate business growth.
Enduring Principles from Established Leaders
Legacy also plays a role in leadership philosophies, as demonstrated by the late Charlie Munger, former vice chairman of Berkshire Hathaway. In 2017, Munger highlighted the importance of adopting an owner’s mindset, moving away from short-term, career-driven thinking. He argued that this perspective is essential for identifying high-quality businesses with sustainable advantages.
The insights shared by these leaders illustrate a common theme: effective leadership is about more than just following traditional paths. By drawing on both fiction and personal experiences, executives like Sarandos are shaping innovative approaches to navigating the complexities of modern business.
As the landscape of leadership continues to evolve, the stories that captivate and inspire remain crucial. Sarandos’s emphasis on fiction highlights the potential for narratives to offer profound lessons in resilience, decision-making, and vision. In a world where challenges are constant, the ability to lead with insight and creativity is more important than ever.
