curated by mdy

Seek diverse and contrarian perspectives to gather information, not to achieve consensus. The ‘Informed Captain’ makes the final call

Via Invest Like The Best

"I think you want to be super careful here because this is the source of much value. You want to be totally independent in your thinking and not consensus-oriented at all, but you want to know what other people are thinking, otherwise you're flying blind.

So, there's a high value on information, gathering opinions. But then not [a lot of value in] averaging them. We would never do that. We were very clear that the concept was the 'Informed Captain'. So we want to make it like the captain of a ship. The captain makes [the] decisions but it's good for them to collect a lot of information. So we were very strong on no committees, [that] individuals make decisions, but we want them to be informed about that decision."

— The Netflix Culture Code That Changed Entertainment Forever | Reed Hastings Interview, at 14:22

Reed Hastings (Co-founder and Executive Chairman of Netflix) distinguishes between being information-seeking and being consensus-driven: "You want to be totally independent in your thinking and not consensus-oriented at all, but you want to know what other people are thinking otherwise you're flying blind."

The Netflix approach to contrarian decisions:

  • Value information seeking: Gather opinions and information from diverse perspectives
  • No to group think: Don't try to arrive at the average of those opinions or to seek consensus
  • The framework: Be the "Informed Captain"—like a ship's captain who collects extensive information but makes the final call alone

Reed notes: "We were very strong on no committees, individuals make decisions, but we want them to be informed about that decision." This enables the contrarian thinking that creates value while avoiding the blindness that destroys it.