Reed Hastings reveals a tactic that helped made Netflix a $240 billion company: 'If you're a leader...'

Reed Hastings served as Netflix’s CEO for more than two decades before becoming chairman last year. (Image credit: Netflix, Unsplash)

Netflix co-founder and chairman Reed Hastings believes that good leaders seek out critical feedback whenever possible. He even has a simple, three-word term for the practice: “Farming for dissent.”

Speaking at the The Tim Ferriss Show, Hastings -- who served as Netflix’s CEO for more than two decades before becoming chairman in 2023 -- shared he has a simple, three-word term for the practice: “Farming for dissent.”

“If you’re a leader, it’s important to farm for dissent, because it’s not normal to disagree with your boss, right? [Usually] we learn deference,” he said. But because companies need fresh ideas and new strategies to grow, employees need to be “willing to argue” with their managers at times, Hastings added.

“Because it’s difficult, emotionally, in most companies to disagree with your manager, we call it farming for dissent... We have managers do things like [ask]: ‘What are three things you would do differently if you were in my job?’” he said.

The Netflix boss also shared that he’d ask “50 top executives” every year or two to “write down what would be different” if they were in charge of the $240 billion company. He used that feedback to experiment with different business strategies, some of them worked and the ones that did not served as learning opportunities, he said on the podcast.

Hastings also cited Amazon founder Jeff Bezos's tendency to read reviews from “discontent” Amazon customers to help build “a culture of high standards” at the company. Bezos had advised listening to your critics and thoughtfully deciding if they have a point before changing as needed.

“You listen, you ask: ‘Are they right?’ Or, even if they’re not completely right, is there some piece of it that’s right that you can be inspired by [and] then you should change,” the Amazon boss had said at a 2018 conference.

Closer home, another business leader who has spoken out in favour of dissent is Shark Tank India judge and  Emcure Pharmaceuticals' executive director Namita Thapar. She believes that dissent unleashes creativity and innovation. It also makes for a good leader.

"Culture of dissent unleashes creativity and innovation. Yes, men and women, herd mentality kills it. I have seen good leaders who get told often that they are wrong... they think, accept and adapt," Namita Thapar had posted on X. "One of the most important traits of a leader -- encourage team to express contrary views!"