A Case Study of Netflix: RARE [JARANG]
Introduction:
In today’s fast-paced business environment, effective leadership is crucial for fostering trust, joy, and engagement among team members. The book RARE Leadership: 4 Uncommon Habits for Increasing Trust, Joy, and Engagement in the People You Lead by Marcus Warner and Jim Wilder outlines four habits that can transform leadership practices.[1] This essay explores these habits—Remain relational, Act like yourself, Return to joy, and Endure hardship well (RARE).[2]
For this assignment, I want to start my posting by answering the following questions posted at the end of chapter: Would you say your identity is driven more by fear or by joy? How does the fuel that powers your identity change your approach to leadership?[3]
I believe that operating efficiently under fear is challenging for most people, including myself. Some individuals manage to remain unaffected by fear, but my identity is driven by joy. Throughout my career, there have been times when I felt anxious due to organizational changes, but this was not fear—it was uncertainty.
In my twenties, the organization I worked for underwent a merger. During a conversation with my manager about my future within the company, he shared a powerful statement: ‘Braun is not your only survival, there is a need for your talent everywhere.’[4] This statement has stayed with me, as it reflected my value and emphasized that my identity and worth is not confined to a single organization—Mr. Fong, resides in Malaysia and serves as an Elder in an AOG church, he is almost 90 years old. This book reminded me of Mr. Fong’s voice and his leadership style. He instilled joy in me by reminding me of my worth, engaged with me on a relational level by addressing my uncertainties, and was truthful about the merger. Throughout the merger, he faced tough questions from senior leadership about why his department should remain in Malaysia instead of relocating to Germany. His leadership style left a lasting impact on me.
RARE Leadership:
I grew up in an environment without television until I was sixteen years old, though my family and I enjoyed weekly trips to the cinema. Moving to the US, I discovered Netflix,[5] which felt like a delightful gift. Intrigued by the company, I researched its growth and development and invested in their stock. One of my husband’s gifts for me is Netflix stocks every Christmas 😊. Based on my understanding, Netflix exemplifies the RARE model, renowned for its innovative culture and strong leadership:
1. Remain Relational: RARE leaders prioritize relationships over tasks, creating a culture of trust and connection. At Netflix, CEO Reed Hastings [6] emphasizes the importance of a strong relational foundation. The company encourages open communication and feedback, fostering a collaborative environment where employees feel valued and respected.
Example: Netflix’s “Keeper Test”[7] encourages managers to consider whether they would fight to keep an employee. This relational approach ensures that team members who contribute positively to the company’s culture and performance are recognized and retained.
2. Act Like Yourself: Authenticity is a cornerstone of RARE leadership. Leaders who act like themselves are genuine and consistent, building trust with their teams. Netflix promotes authenticity by empowering employees to bring their whole selves to work. The company’s culture of freedom and responsibility allows individuals to express their unique perspectives and strengths.
Example: Netflix’s unlimited vacation policy demonstrates trust in employees to manage their work-life balance effectively. This policy reinforces the company’s commitment to authenticity and personal responsibility.[8]
3. Return to Joy: RARE leaders help their teams navigate challenges and setbacks by fostering a positive and resilient mindset. At Netflix, leaders focus on creating a joyful work environment, even in the face of difficulties. The company’s emphasis on psychological safety enables employees to learn from failures and bounce back stronger.
Example: Netflix’s approach to failure is encapsulated in their culture memo: “If you’re not failing occasionally, you’re not innovating enough.” This mindset encourages employees to take risks and view setbacks as opportunities for growth.
4. Endure Hardship Well: Effective leaders demonstrate resilience and perseverance during tough times. Netflix has weathered significant challenges, including shifts in technology and market demands. The company’s leaders have remained steadfast and adaptive, guiding their teams through uncertainty with clear vision and determination.
Example: Netflix’s transition from a DVD rental service to a streaming giant required visionary leadership and resilience.[9] Reed Hastings and his team navigated the challenges of this transformation by maintaining focus on their long-term goals and adapting to the evolving landscape.
Conclusion:
The principles of RARE leadership, as outlined in this book, Warner and Wilder, offer a transformative approach to leadership .[10] By remaining relational, acting authentically, fostering joy, and enduring hardship well, leaders can create a thriving and resilient organizational culture. As illustrated by Netflix’s innovative practices and the impactful guidance of Mr. Fong, these habits not only enhance individual performance but also cultivate a supportive and dynamic environment. I believe, by embracing RARE leadership, I can empower my team to navigate challenges with confidence and achieve sustained success in today’s fast-paced business world. I plan to introduce this book to my manager.
[1] Warner, Marcus, and E. James Wilder. Rare Leadership: 4 Uncommon Habits for Increasing Trust, Joy, and Engagement in the People You Lead. Chicago: Moody Publishers, 2016.
[2] Warner and Wilder, 25-27.
[3] Warner and Wilder, 60.
[4] Private conversation, Shela Munisamy and Peter Fong.
[5] Netflix. “Leadership.” Last modified March 2025. Accessed March 5, 2025. https://about.netflix.com/en/leadership.
[6] “Reed Hastings: The Architect of Netflix’s Rise.” Quartr. Last modified March 2025. Accessed March 5, 2025. https://quartr.com/insights/business-philosophy/reed-hastings-the-architect-of-netflixs-rise.
[7] “Netflix and the Keeper Test.” Enlivy. Last modified January 2024. Accessed March 5, 2025. https://enlivy.com/2024/01/netflix-and-the-keeper-test/.
[8] Patty McCord, “How Netflix Reinvented HR: Trust People, Not Policies. Reward Candor. And Throw Away the Standard Playbook,” Harvard Business Review, January–February 2014. Accessed March 5, 2025. https://hbr.org/2014/01/how-netflix-reinvented-hr.
[9] Peter Westberg, “Reed Hastings: The Architect of Netflix’s Rise,” reviewed by Kasper Karlsson, last updated November 20, 2024. Accessed March 5, 2025. https://quartr.com/insights/business-philosophy/reed-hastings-the-architect-of-netflixs-rise.
[10] Warner and Wilder, 151.
About the Author
Shela Sullivan
Born and raised on the vibrant Penang Island in Malaysia, I cherish the Malaysian greeting, “Mari Makan!!” which reflects the warmth of shared meals. Since 1996, I have called Oregon my home enjoying the raindrops and the serenity of its beaches. The ocean connects me to nature and energizes me. I am a Wife - Mentor - Traveling Pastor - Sourcing Manager Construction. Favorite Bible Verse: "Delight yourself in the Lord, and He will give you the desires of your heart." ~ Psalm 37:4~ I reside with my husband, David and our fur-baby Rolo. We share passions for travelling, culture, diverse cuisines, home improvements, classic cars and humor.11 responses to “A Case Study of Netflix: RARE [JARANG]”
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Shela,
Favorite Netflix movie?
Serious question now, how much joy do you see in other people where you currently work? You plan to give this book to your manager, who would they identify as the most joyful employees?
Hi Jeff,
Thank you for your questions.
I have many Netflix movies that I enjoy.
Your second question, ‘who would they identify as the most joyful employees?’ I work in a fast paced, demanding and energetic environment. We are a positive and customer centric group but “joyful” I don’t know.
HI Shela, Thank you for your post. I am curious which of theh RARE habits come easily to you and does any one of them feel like a struggle to practice?
Diane, you beat me to my question! I’ll tag on here to see Shela’s answer and also add another question. Shela, of the RARE habit that is easiest for you, what are ways you encourage others to also embrace this? What ways do you want to improve on your RARE leadership?
Hi Kari, thank you for your questions.
In addition to answering Diane’s question:
RARE habit that is easiest for me is remaining relational and returning to joy. Returning to joy meaning, returning to God’s presence. I find joy in God’s presence when faced with challenges. I believe that joy is imparted to the people I share the table with.
What are ways you encourage others to also embrace this? I want everyone who crosses my path to be successful. Therefore, I simply be with them in their journey – motivation is one of the ways.
What ways do you want to improve on your RARE leadership? I want to continue to be who God created me to be (be true). Additionally, to be strong to ensure hardship.
Thank you for your question, Diane.
Remain Relational: I prioritize relationships over tasks. That does not mean I am a YES person. It means I believe in creating a culture of trust and connection. This is my pathway to success.
Endure Hardship Well: I struggle enduring hardship, though I demonstrate resilience and perseverance during tough times. I don’t have a choice to run away from hardship.
Hi Shela, Thank you for sharing your story and the wisdom from Mr. Fong. His words are a powerful reminder that our identity and worth are not confined to a single organization.
In light of his insight, what advice would you offer to a younger employee facing uncertainty in the workplace? How can we intentionally encourage others to root their identity in joy rather than fear?
Hi Elysse, thank you for your questions.
I always tell young people to take care of themselves, no matter how much money they earn, to be humble and never sell their integrity to an organization.
Model positive behavior, lead by example. By showing how to navigate challenges with a positive outlook and share experiences of finding joy in difficult situations.
Hi Shela! Thank yoo for bringing us in to your story and the impact of Mr Fong upon your life. Similarly what would you want people in your context to take away from your relational leadership?
Thank you for question Daren.
Empowerment: Encouraging individuals to recognize their own strengths and capabilities and supporting them to take initiative and make decisions with confidence.
Shela, you shared how Mr. Fong’s leadership style left a lasting impact on you by instilling joy, providing relational engagement, and offering truth during a time of uncertainty. How do you now seek to model those same qualities in your own leadership, and what challenges have you encountered in doing so?