Leadership Lessons from Good and Bad Executives

By: Adam Colgate

When Netflix CEO Reed Hastings made the bold move of raising prices significantly then changing the delivery of Netflix services (which would later be scrapped), his leadership identity took a big hit. Shortly thereafter, the company lost over 800,000 customers and the stock dropped 35%. This was not a stellar leadership move.

Hastings Failure to Recognize Four Facts
Trust is Fleeting
Customer loyalty is not constant; therefore, an action that will have an adverse effect on customers’ wallets should be taken only after careful consideration as to how it will affect their perception of the company.

Raw Data Does Not Tell The Whole Story
Careful consideration doesn’t mean simply analyzing trends or examining demographic behavior. Gauge potential response by focusing on how customers feel about what will happen. Lead a focus group, distribute a survey, talk with those that will determine whether the move will be successful.

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