Netflix co-CEO Ted Sarandos has discovered that the most powerful leadership lessons don’t come from traditional business management books, but from a 1902 Joseph Conrad novella called Typhoon. In a recent CNBC interview, Sarandos revealed that he repeatedly rereads this classic work to understand how great leaders navigate uncertainty and crisis.
Why Fiction Over Management Books?
Sarandos explained that while Typhoon may not sound like a typical business book on the surface, its intensity directly mirrors real-world leadership challenges. The novella follows a steamship captain caught in a ferocious storm who must make life-altering decisions under extreme pressure. According to Sarandos, this story exemplifies what leaders face when plans unravel unexpectedly. “I get something different in the book every time I read it,” he told CNBC, highlighting how the narrative reveals new insights with each reading.
A Perspective Shift Over Time
When Sarandos first read the novella two decades ago, he viewed the captain as reckless and dangerous. However, his perspective evolved significantly through subsequent rereads. He now recognizes the captain as a leader managing incomplete information and unfavorable outcomes. “The real leadership test is: How do you manage through that?” Sarandos stated, emphasizing that navigating unexpected challenges defines true leadership.
Sarandos’s commitment to learning from fiction reflects his experience making major business decisions at Netflix. He famously allocated $100 million for the company’s first original series, House of Cards—a risky bet that transformed the streaming industry. His approach demonstrates that leadership wisdom often comes from unexpected sources, and successful executives continuously seek deeper understanding through varied reading materials.