Leadership AssignmentExamining Management Traits of Reed Hastings

Question

Task: In this leadership assignment you will be asked to study a current or past leader in order to enhance your understanding of their development, capabilities, achievements and communication with key stakeholders. The focus in your analysis should particularly be on (i) the struggles your chosen leader has experienced to become a leader and (ii) how the chosen leader has been critiqued by various stakeholders. Overall, this analysis should result in a series of actionable recommendations for this leader (assuming that would be possible).

Answer

Introduction
Leadership evaluationdone in the present context of leadership assignment is the method of characterizing and pointing out a leader on the basic of psychological and working components for examination as well as application by the academics and other practitioners. Effective leadership evaluation or an analysis of a specific leader is not reductionist, however; this takes into account the entire person in the context of culture, times, society from which they come. This study will examine the leadership traits of Netflix CEO, Reed Hastings. The analysis will be based on leadership development, leadership capabilities, communications and criticism with the stakeholders, specific strengths and weaknesses identification of the leader and future developmental recommendations.

Brief overview of the leader
Wilmot Reed Hastings (born October 8, 1960) is an American finance manager. He is the prime supporter, administrator, and co-CEO (Chief) of Netflix, and sits on various boards and voluntary associations (Tamaki, 2020). A previous individual from the California State Leading group of Instruction, Hastings is an ally for preparing change through agreement schools. Hastings' first action was at Adaptable Development, where he made a device for investigating programming. In 1996, Pure software pronounced a merger with Atria Programming (Tamaki, 2020). The merger consolidated the organization's Customizing anticipates for distinguishing bugs in software design with Atria's gadgets to direct headway of complex software design. The Cash Street Journal uncovered that there were issues fusing the business forces of Pure software and Atria after the head salespeople for both Unadulterated and Atria left after the union.

According to the research on leadership assignment, in 1997, Hastings and past Pure software agent Marc Randolph assisted with setting up Netflix, offering level rate film rental-by means of mail to customers in the United States by uniting two rising advances; DVDs that were significantly less difficult to send as mail than VHS-tapes, and an online website to mastermind them from, instead of a paper stock (livemint.com, 2020). Gotten comfortable Los Gatos, California, Netflix has amassed a grouping of 100,000 titles and more than hundred many allies. Hastings had the thought for Netflix after he left the previous company. As per Reed Hastings “I had a big late fee for Apollo” (livemint.com, 2020). The fee delayed 6 weeks and he owned the video outlet around $40 (De Luce, 2020). He promised to himself that he is going to compromise the integrity of his personal life over a late fee. On later stage, he understood they had much effective business model. Consumer can pay around $30 to $40 a month as well as work out as per their convenience.

An analysis of the leader’s development
Hastings allows the workplace as per the authoritative leadership style believing that employees and other stakeholders are knowledgeable enough to control an autonomous-based working environment as well as would eventually do what is effective for Netflix, themselves as workers and their families (Goncalves, 2020). For reinventing the firm’s human resource strategies so radically could be argued as the evidence to the leader’s creative and innovative intelligence as well as transformational leadership qualities.

Reed Hastings believed that making an organization culture in the Netflix surrounded on basic corporate operations will not work and ineffectively influence on characteristics, motivation, behaviours and performance (Flint, 2020). It is evident in the leadership assignment that the effective organization culture made by him has elevated reciprocity in which workers felt accountable to repay their organization by performing diligently. Currently, Netflix’s culture and their market performance are calculated to be around $23 billion with the stock develops rising more than 20%.

The leadership methodology
The leadership methodology could be compared with the leadership methodology followed by Reed Hastings based on the parameters of discover, design, developing and delivering (Raelin, 2020).

Figure 1: Leadership development and methodology
(Source: Raelin, 2020)

The transformational leadership for Hastings along with innovative intelligence and reciprocity come jointly for effectively outlining the leadership skills. The approach to personal time off, official reviews, compensation packages, travel strategies are far from the traditional corporate American workplace operations. The evidence from Netflix’s innovative operations and leadership agendas could be seen below within this leadership assignment;

• Individual time: Workers have been provided with the control to take as much time off as they required and important; workers and managers’ work this collaboratively. This is the framework of Hastings innovative and creative intelligence workplace methodology (Goncalves, 2020).
• Travel strategy: Workers are anticipated to act like mature people; solidified in 5 words, “Act in Netflix’s Best Interest” as well as spend as much as money if this were their personal (Goncalves, 2020).
• Official reviews: Eradicated, instead business management and workers have been asked to have communications regarding the performance as an organic process of their working communications (Goncalves, 2020).
• Compensation policy: The criteria of bonus is not here; workers are provided with market-based payment and could identify how much compensation will be in the system of equity; those with stock options have their payments decreased as per (Goncalves, 2020).

However, no leader is despite of how effective and developed they are could be devoid of flaws. In 2009 Reed Hastings understood it when he proclaimed Netflix will separate the email-order operation from the streaming operations and alter consumers separately for every service. The organization increased customer expenses by around 60% and caught distain from the stock market along with customers (Snyder, 2014). While this was temporary (the company immediately withdrew the strategy) the point sustains as this effect the organization, and since 2010 DVD membership had fallen from twenty million to 5.3 million subscribers (Snyder, 2014). Despite this criticism, the leader’s capability to foresee a requirement, designing a plan and delivering this to the market again sustains evidence to the creative and innovative intellect and the transformational capabilities as a leader.

Leadership capabilities
Transformational leadership capabilities
Transformational pioneers have an away from of qualities and a solid culture inside their associations, continually showing others how it is done. They spur and rouse their supporters not to work for their own prizes, however towards the achievement of the association in general (Le & Lei,2019). Transformational leaders have the ability to change the fate of an association by empowering advancement among their kin. Conventional standards and guidelines are tossed out the window for the sake of development, advancement and change (Le & Lei,2019).

Albeit one of the more famous authority styles today, transformational administration has its mishaps too. On the off chance that the pioneer is somewhat self-serving or exploitative, they can rouse and persuade individuals to execute against the eventual benefits of the association (Hui, Phouvong&Phong, 2018). Besides, representatives could burnout quicker in the event that leaders are continually being pushed and are not handily propelled by the pioneer's style.

It could be seen in this leadership assignment that beside from developing a disruptive as well as transformational leadership model, Reed Hastings showed a transformational leadership practice in various processes (McAlone, 2016). The leadership capabilities of Reed Hastings could be accounted for strategic human resource development and management in the company, reducing formal reviews as well as bonuses; while motivating his workers to ensure their individual decisions as long as they work for achieving the core business developmental and other targets (McAlone, 2016).
Concentrating on employees and other stakeholders have earned the company a collaborative and flexible working culture along with around 88% support rating of the leader as per the report of Glassdoor (McAlone, 2016).

On the other hand, the leadership skills have managed to reduce balance: concentrating on developing movies, while increasing continuously into the original contents. The company and leadership capabilities stand out in achieving more attention for their process for controlling skills than for any other leadership capability (Liet al., 2018). The organization is well known for their non-vocational strategy, which lets their employee set their working hours and time management as long as they gey their responsibilities executed effectively.

Achievements and communication with the stakeholders
The result for company’s delivery process proved to be that time of epiphany. However; this development did not pause with one concept attentively. In 2007, the same year; the company and its CEO cum corporate leader mailed their billionth DVD, the business launched its video-on-demand services (jjimenez, 2015). This is one of the corporate achievements that harled by Reed Hastings. It has been seen that from the beginning, the company knew that this had the capability for an exceptional streaming business. This is what the achievement of Hasting’s innovative business model idea. The leader in question here has recovered from a huge 2011 misstep during the company raised their costs and spun its DVD-by-email functions in a diverse brand named Qwikster (jjimenez, 2015). The leader accounted that broadband streaming outlined the future of the company however; misunderstood how to ensure the transition.

Relationship with stakeholders
According to the company efforts for developing the awareness of the significance of diversity in organizations, all the stakeholders including Reed Hastings provide their investors a look into the open and transparent nature of more than just who are their shareholders at the company (JOHNSTON, 2020). The stakeholder communication method has projected Netflix’s commitment for diversity social responsibilities and inclusiveness as a nutshell.

Figure 2: Company diversity and inclusiveness among stakeholders
(Source: JOHNSTON, 2020)

Relationship and communication with the investors
It has been reviewed in order to develop this leadership assignment that Reed Hastings’ communication and collaborative working model with their core stakeholders in the company has resulted the outperformed investors anticipations for core economic metrics, involving revenues, costs, EBITDA as well as free cash flow (visible.vc, 2020). The forte of the leadership and business model has been clearly validated through customers who, in ever developing numbers, have searched important enjoyment and worth in the current online movie rental services.

What are the strengths and weaknesses of the leader focused in this context of leadership assignment?
Strengths
As a transformational leader, Reed Hasting’s one of the effective strengths is knowledge on the target consumers and their needs. The excellent vision has been turned his employees and followers in believers, permitting Hastings to rule Netflix with the entire collaborative control and decision-making (Tamaki, 2020). Another strength as per the leadership effectiveness is despite being egotistical and demanding from his stakeholders, Hastings would be recalled as one of the practitioners of innovative and adaptive work place cultural development of the time. The next area of strength in leadership of Reed Hastings is being determined and influential for the consumers, investors and for the employees.

Weakness
As per the leader’s ethical business responsibility the weaknesses of Reed Hastings not only as the corporate leader but also the CEO of Netflix could be viewed. Firstly, of all Netflix in many times fails to directly informing their customers regarding the changes or impacts of their actions (Goncalves, 2020).This is an instance of ethical mismanagement on behalf of the company board of directors as well as Reed Hastings. An ethical leader is always accountable for being transparent regarding the actions, decisions and changes internal or external in this business. Thus, it could be said that being unresponsive or unclear to one of the main stakeholders of the business, the leader here could be accounted for the an ethically weak one.

Recommendations
It should be always remembered in the present context of leadership assignment that focus-group ideas and photoshopping oneself is not desirable for modern leaders. Leaders should not afford to be analytical automatons. Focus on mission-driven and purpose-oriented workers in the companies and in Netflix in upcoming years would be effective for their commitment to the business development and to their stakeholders (Cho et al., 2019). On the other hand, practice to be an explainer-in-chief. The main fact of leading in complex times is the skill to remain open regarding critical adversities and chances, and to outline all in ways, which resonate with; help workers the support of others. The responsibility of being explainer-in-chief needs to be capable to ensure the criticality simple despite turning on simplistic.

Conclusion
From the above study developed in this leadership assignment, it has been understood that transformational leadership theory and its practical implementations in innovative workplaces has always been prominent and beneficial in collaborating, and communicating with the workers’ motivation, stakeholders’ interests, and others. This study has also unfolded the unique and creative leadership skills and operational mind of Reed Hastings that outshine in the uncertainties of financial and technology markets. Additionally, this study has also unfolded strengths and weaknesses of the respective leader with emphasis on the ethical stand point of leaders. The overview of leader’s life and workers outline the aim and efforts done in striving the aim of a current successful video streaming and movie rental business around the world.

References
Cho, Y., Shin, M., Billing, T. K., &Bhagat, R. S. (2019). Transformational leadership, transactional leadership, and affective organizational commitment: a closer look at their relationships in two distinct national contexts. Asian Business & Management, 18(3), 187-210.

De Luce, I. (2020). Data Bios: How Netflix founder Reed Hastings created a streaming empire, as told by data. Leadership assignmentMedia.thinknum.com. Retrieved 24 September 2020, from https://media.thinknum.com/articles/netflix-reed-hastings-facebook-data-peter-thiel/.

Flint, J. (2020). Netflix’s Reed Hastings Deems Remote Work ‘a Pure Negative’. WSJ.Retrieved 24 September 2020, from https://www.wsj.com/articles/netflixs-reed-hastings-deems-remote-work-a-pure-negative-11599487219.

Goncalves, V. (2020). A Leadership Analysis of Netflix CEO, Reed Hastings | PSY 532: Foundations of Leadership (Dobbs). Sites.psu.edu. Retrieved 24 September 2020, from https://sites.psu.edu/leaderfoundationsdobbs/2018/09/21/a-leadership-analysis-of-netflix-ceo-reed-hastings/.

Hui, L., Phouvong, S., &Phong, L. B. (2018). Transformational leadership facilitates innovation capability: The mediating roles of interpersonal trust. International Journal of Business Administration, 9(3), 1-9.

jjimenez, j. (2015). 2014 SUCCESS Achiever of the Year: Reed Hastings | SUCCESS. SUCCESS.Retrieved 24 September 2020, from https://www.success.com/2014-success-achiever-of-the-year-reed-hastings/.

JOHNSTON, M. (2020). Top Netflix Shareholders.Investopedia.Retrieved 24 September 2020, from https://www.investopedia.com/articles/insights/060716/top-3-netflix-shareholders-nflx.asp.

Le, P. B., & Lei, H. (2019). Determinants of innovation capability: the roles of transformational leadership, knowledge sharing and perceived organizational support. Journal of knowledge management.

Li, W., Bhutto, T. A., Nasiri, A. R., Shaikh, H. A., &Samo, F. A. (2018). Organizational innovation: the role of leadership and organizational culture. International Journal of Public Leadership.

McAlone, N. (2016). Netflix CEO Reed Hastings explains why he was initially an ineffective leader at his first company. Business Insider.Retrieved 24 September 2020, from https://www.businessinsider.com/reed-hastings-on-leadership-lessons-2016-10IR=T.

Netflix IPO: A Lesson in Investor Relations from Reed Hastings | Visible.vc. Visible.vc. (2020).Retrieved 24 September 2020, from https://visible.vc/blog/netflix-ipo/.

Netflix’s Reed Hastings conquered Hollywood with a PowerPoint presentation. mint. (2020). Retrieved 24 September 2020, from https://www.livemint.com/companies/people/netflix-s-reed-hastings-conquered-hollywood-with-a-powerpoint-presentation-11599352894640.html.

Raelin, J. A. (2020). Toward a methodology for studying leadership-as-practice. Leadership, 16(4), 480-508.

Snyder, B. (2014). Netflix Founder Reed Hastings: Make as Few Decisions as Possible. Stanford Graduate School of Business.Leadership assignmentRetrieved 24 September 2020, from https://www.gsb.stanford.edu/insights/netflix-founder-reed-hastings-make-few-decisions-possible.

Tamaki, J. (2020). Reed Hastings, the Founder of Netflix, Keeps His Library in His Pocket. Nytimes.com. Retrieved 24 September 2020, from https://www.nytimes.com/2020/09/24/books/review/reed-hastings-by-the-book-interview.html.