LEADERSHIP, TRANSFORMATION AND ORGANIZATIONAL CHANGE BAM610 -2020 - OCT ID student: 190574204 Word count (2,148) Table of content I.
Introduction about Netflix company 1. Mission and vision
2. Market and the main products
3. The organizational change decision II.
The employee empowerment of Reed Hastings in Netflix company
1. The way about empowering employees of Reed Hastings
2. The employee empowerment of Reed Hastings III.
The role of Board of Directors
1. The organizational change model for Netflix
2. The CEO’s leadership style - Reed Hastings IV. Conclusion Reference Appendix 1 I.
Introduction about Netflix company
Netflix in its entirety, Netflix, Inc., was a company created by Reed Hosting and Marc
Randolph, US founders, in 1997. In 1999, a subscription service on the Internet was
offered by Netflix. Netflix then began supplying customers with the possibility of
streaming films and TV shows to their home in 2007 directly via Internet (Netflix, 2020).
In 2006, Netflix introduced a 1 million Netflix Prize competition to see if anyone can
boost their recommendations by ten points, a film algorithm focused on past rental data
that predicts a person's film tastes (Netflix, 2020). For more than 20 years, Netflix has
etched its name as a top brand of unquestionable consistency, thanks to its mission and
vision statements, which highlight its unwavering commitment to delivering the best
everywhere it operates (Netflix, 2020). Furthermore, Netflix is an organization with an
engaging, up-to-date and user-friendly interface that has brought content to another
level. In reality it's a positive thing that Netflix has gained in view of consistency and
customer loyalty – its work is a phenomenon (Jenner, 2018). 1. Mission and vision
The key strategy of Netflix is to expand our domestic and global streaming subscription
sector. Besides, they continually enhance consumer engagement with an emphasis on
expanding our streaming content, improving our user interface, while keeping within the
limits of their combined net sales and operating profit contribution division goal (Comparably, 2020). 2
"The best global entertainment distribution service" is the vision statement of Netflix.
The vision statement is all about what the organization aims to achieve. It highlights the
need to include on-demand video content with a premium bar. In specific, this
declaration represents Netflix's leadership role in achieving and safeguarding the sectors
(Netflix, 2020). In my opinion, the vision proclamation of Netflix considered to achieve
their goal in the recent few years when Internet promotes very strong in global
2. Market and the main products
Netflix is a digital content subscription service that provides free movies and TV shows at
an economical monthly charge, with unrestricted view on every internet linked device.
Moreover, it provides a vast range of award-winning TV shows, videos, cartoons,
documentaries. Therefore, Netflix is a subscription service, and there are fantastic
company frameworks, and Netflix is talking about unrestricted flat-fee market-free viewing (Netflix, 2020).
3. The organisational change decision (In appendix) II.
The employee empowerment of Reed Hastings in Netflix company
Psychological empowerment is the belief that workers can help decide their own job
responsibilities, do productive work, and affect critical decisions. Psychological
empowerment of organisations is the understanding of participants that they have the
ability to help define job assignments, to perform productive work, and to affect critical
decisions (Yukl and Becker, 2006). 3
1. The way about empowering employees of Reed Hastings
“Decision formation is one of the most essential tasks undertaken by officials. Therefore,
many of the roles of administrators and supervisors include decision-making and
execution” (Yukl, 2013). Admittedly, according to Netflix CEO Reed Hastings, to be a
stronger pioneer, he does not want to make any choices at all (Rohini, 2018). Besides,
“empowerment requires an organization's belief that it can define their job assignments,
conduct productive work, and affect significant events” (Yukl, 2013). According to my
research on Reed Hastings, he encourages his staff to take control of the decision-
making process, and his limited presence is a way to inspire workers (Rohini, 2018).
Moreover, Hastings is a visionary who takes pride in taking relatively few decisions, and
works at making innovative goods and projects possible for its workers (Victor, 2018).
Hence, I am of the opinion that Reed Hastings depended on “Delegation” – one of four
decision procedures for a leader, when “The manager assigns the right and duty to make
a choice to a person or a group; the manager generally stipulates limitations for the final
choice and may or may not request prior consent prior to execution of the decision”
(Yukl, 2013). As a matter, this point can be demonstrated with the case of Take "House of
Cards", the hit sequence, which it took Hastings just 30 minutes to send the green light,
so he celebrates the independence and empowerment ethos of the organization as its
lead but for the pace at which the show has been endorsed, and it was the workers who
put the foundation to make this possible (Emily, 2015). 4
2. The employee empowerment of Reed Hastings
“Participatory leadership provides a number of possible advantages, but what benefits
are obtained depends on who the individuals are, how much control they have, and
other facets of the decision-making situation” (Yukl, 2013). Particularly, Reed Hastings
actually grants each employee department the freedom to make its own wise decisions
on behalf of the company, who incites their workers to "take wise decisions in spite of
ambiguity." Instead of making a decision, the organization empowers its team members
"on a long-term basis rather than in the short term."(Pontefract, 2019). From my point
of view, he factually is an open minded pioneer with decision acceptance in Netflix when
“People with significant power in the decision-making process prefer to accept and see it
as the decision they make. This sense of belonging increases their incentive to effectively
execute it” (Yukl, 2013). Actually, I think this idea is the best illustrated with the example
of California-based video streaming giant Los Gatos workers realize that their job is not
measured by the rough time they tend to work – they don't encourage lengthy and
awful hours – but how they produce, made Netflix a world's biggest premium online
video service (Patty, 2018). In my view, Reed Hastings conducted successfully in
empowering employees with the approach of an excellent leader in Netflix. For instance,
during an interview with TED creator Chris Anderson, Hastings said, "I'm proud to make
as few decisions as possible in a quarter” (Rohini, 2018). In the other hand, it needs to
be controlled by the self-consciousness of the staffs . The reason is because Netflix
suffered a humiliating blow following its failed decision to increase rates and break into 5
two companies—one for its DVD mailing party and the other for streaming, and some
one million clients cancelled their subscribers, while the share price of Netflix fell from
$300 to below $53 (Emily, 2015). Last but not least, I totally agree that Reed Hastings
brought into play his employee empowerment magnificently, so he should put an effort
into manipulating more effectively, and reducing the negative obstructions for Netflix in the future. III.
The role of Board of Directors
1. The organizational change model for Netflix
According Kotter’s Eight-Stage Process (1996), we will evaluate the role of Board of
Directors in the implementation of the change. In addition, the system of Kotter allows
executives to consider what they can do, when particular steps should be taken, and
when and how they are able to move to the next stage (Deszca, F Cawsey and A. Ingols, 2016). 
Establish a sense of urgency: Netflix's executives expend double the time on board
meetings and their equivalents in other firms, but even meetings are shorter when the
members are so trained. Therefore, the directors said that what is more decision-making
takes place easily because of its transparency (Stephanie, 2018). 
Create a guiding coalition: In contrast to the rigid, formalized approach to most director-
executive relationships, Netflix allows its board members to spend time watching the
organization work "in the wild." The company has three frequently scheduled executive
sessions attended by board members (F.Larcker and Tayan, 2018). 6 
Develop a vision and strategy: Issue diagnosis and position statement construction
contribute to strategic decision-making. This includes deciding between alternate
explanations of problems, their importance, emphasis and desired strategic solutions
(Pitt and Koufopoulos, 2012). Due to this disparity in firm diversity, Netflix must evolve
and adapt to diverse management approaches that are important to its newer and less
traditional market style – innovative (McCord, 2014). 
Communicate the change vision: The top management team capture the hearts and
minds of most workers by interacting across various networks and multiple dreams for
improvement (Kotter, 1996). Additionally, the company, which was formed two decades
ago and generated $11.7 billion in sales last year, rates "independent employee decision-
making" as its highest core attribute (Quito, 2018). 
Empower employees for broad-based action: Board of Management approaches in
Netflix are embedded in and represent the ethos and leadership of the company. The
ethos of Netflix stresses individual projects, knowledge exchange and an emphasis on
outcomes instead of procedures (F.Larcker and Tayan, 2018). Hence, the empowerment
is related to transparency and good success in Netflix society, and with Reed Hastings, he
always has been masterful to hire very good people, force them to make choices and not
micro-management (F.Larcker and Tayan, 2018). In my option, Netflix is one of the
unusual enterprises to allow “independent decision-making” for all employees. This
leads to the creative arousal in the subconscious employees. 
Generate short-term wins: Despite the initial turmoil, the founders of Netflix stayed
loyal. Management has closed ranks to form a cohesive front and started to shift capital 7
to internet streaming and creative programs. Complete viewers in 2017 were
outperformed by Netflix from US cable providers (F.Larcker and Tayan, 2018). 
Consolidate gains and produce more change: Netflix directors agree that the board
procedures gave the management trust through those challenges: Netflix does as I was
in the board too many fundamentally important revolutionary steps: DVD sales to online
streaming, internationalizing, committing millions of dollars in content and making
profits (F.Larcker and Tayan, 2018). 
Anchor new approaches in the culture: the board of directors are so successfully in the
implementation of the change. As a result, the directors of Netflix are very optimistic
about the amount of detail they receive from the memo and the supporting
commentary and the effect that they have on board meetings and discussions: speak or
disagree, or accept questions from all of us across the table and address them freely
(Larcker and Tayan, 2018). To sum up, the potential plan of Netflix is most likely to
concentrate on mitigating the harm to its image as a result of the previous move and
convincing customers of their commitment to customer preferences and views (Kotter, 1996).
2. The CEO’s leadership style - Reed Hastings
"Leadership" is a lead-following relationship mechanism that happens on a multi-level
scale (person, dyad, group, collective) in a specific sense where the leader and the
followers (i.e. superior, supervisor) share an intent (vision, mission) and do stuff (e. g.
goals, objectives, duties) in good will (Yammarino, 2013). Therefore, with the successful 8
leader of Reed Hastings, Netflix is considered as one of the most popular businesses in
the world of technology in the distribution and sale of DVDs via email (Netflix, 2020).
Transformative leadership is the type of leadership under which leaders encourage
followers to transcend their own desires for the good of the organization, and leaders
may motivate followers to make the appropriate improvements (Robbins and Judge,
2001). After optimization between leader and follower, Hastings, through his leadership,
converted Netflix from a DVD mail order to a multi-billion company (Rohini, 2018).
Especially, The Hastings change management approach uses the dynamic sensing,
seizing and reconfiguring capability paradigm to reach the market (Teece, Pisano and Shuen, 1997).
“The term trait refers to a number of characteristics, including facets of personality,
disposition, needs, motivations, and beliefs. Personality traits are relatively stable
provisions to be carried upon in a certain manner” (Yukl, 2013).
Based on the specific traits related to leadership effectiveness, Reed Hastings has the
personal characteristics of a pioneer as high energy level and stress tolerance helps
managers meet most managerial workers' hectic pace, long hours and constant demand
(Yukl, 2013). In the face of the original dotcom crash in 2001, Netflix found its assets dry,
then the 11-September arrived, When the year ended, one-third of Hastings' staff had to
cut back. In contrast, he kept calm and send the subordinates, in a crisis, the confident,
definitive direction even though he was on the verge, concerned about morality
crumbling and those who kept growing bitter with rising workload (Chmielewski, 2020).
Furthermore, another features could be that he has personal integrity is an essential 9
component of legal, genuine and spiritual leadership (Yukl, 2013). Until Reed Hastings
founded Netflix in 1998, he learnt a precious lesson that allowed him to transform a
business into an enterprise today worth 226 billion dollars. (Jade, 2020). IV. Conclusion
Researching on the execution of changes in Netflix company and transformational
leadership helped me acquire in-depth knowledge about the leadership styles of Reed
Hastings – a talent CEO created the subscription service of film and TV that we enjoy
today. In addition to developing a revolutionary and transformative market model,
Hastings demonstrated a transformation style in a variety of ways (Victor, 2018). Finally,
he sets a good example to me, making me achieve the full potential, and showing great
improvement in leadership skills and organizational change. 10 REFERENCE
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Yukl, G., 2013. Leadership In Organizations. 8th ed. Harlow: Pearson. 14 APPENDIX
1. The organisational change decision
Organization leaders must analyze the market in which their organization works and
apply their results in order to predict future significant improvements and reduce
uncertainty, as well as to seek new practices and innovations to improve
competitiveness, reliability and overall success. The company's biggest strategic
advantage is its adaptability and openness to adjust. For all organisations,
transformation is a critical and continuing mechanism that, if adequately implemented
and handled, helps an organisation to adapt with new trends and remain competitive in
its area. Adaptable and ready for transition is the company's biggest strategic advantage
when competing in today's fast and ever-changing global market (Anderson and Tushman, 1991).
Netflix has only revolutionized the distribution of content; it has also developed a
modern market governance model. What began with DVD deliveries has become a
company of $133 billion, that produces content of its own and gives entertainment new
meaning on request. In the context, the organization has re-defined its corporate
governance system so as to put the management board closer to its managers and
"brings them with a wealth of knowledge and connectivity (Betsy, 2020).
Netflix finds that by replacing rules with openness, responsibility and confidence, net
efficiency and performance increases and spending decreases. Netflix specializes in 15
recruiting smart, skilled employees – letting common sense and behaving in the best
interests of the organization drive employee conduct (McCord, 2015).
2. Attaching PDF file about Netflix Approach to Governance Netflix Approach t
o Governance - Genuine T
ransparency with the Board
3. Complement about the elements in Kotter’s Eight-Stage Process 
Create a guiding coalition: For example, In Qwickster's recent reforms, Netflix has not
tried to do so because it has not attempted to prepare its clients, clarify explicitly its
position and plan the transition. People did therefore not grasp and got the idea behind
the shift in animosity (F.Larcker and Tayan, 2018). 
Communicate the change vision: Netflix has not developed a leave schedule, but still
allows workers to settle on their own acceptable length of vacation whether they choose
to take it and disclose it to their supervisors. In order to motivate workers to make
advantage of this strategy, senior management is expected to set an example by taking
holiday days on their own and explaining it to their employees (McCord, 2014). 
Develop a vision and strategy: The position of the Board of Directors remains the same:
replacement of the CEO, performance review/monitoring, strategy acceptance and
financial and company risk management. The priorities are the same, the approach is
even more straightforward, showing Netflix's organizational culture. Netflix's ethos
stresses the individual effort, the exchange of information and the emphasis on
outcomes over the process (Stephanie, 2018) 16 
Communicate the change vision: The core culture philosophy of Netflix is focused on
transparent and truthful dialogue at all levels and in every area of the company's operation (McCord, 2014). 
Generate short-term wins: To date, their radical opening experiment continues to work.
Blind, which leads anonymous investigations into employee experience, has increased
Netflix for employee satisfaction and employee compensation in the 2017 report (Quito, 2018).
4. Complement about The CEO’s leadership style - Reed Hastings
Due to global competition and market growth, Hastings has embraced a 'co-petition-
based business strategy' to reach international markets (Daidj and Egert, 2018). In
comparison, He revamped the Netflix HR Department, and by developing an atmosphere
of excellence where workers would take breaks when they want to, work when they
want and be responsible he rejected traditional HR-Practice (McCord, 2014). 17