You're Never Too Big To Communicate

“When Netflix is evolving rapidly...I need to be extra-communicative. This is the key thing I got wrong.”         ~ Reed Hastings, CEO of Netflix

It goes without saying that Netflix has had a rough few months; dealing its customers (..and subsequently itself) blow after blow.  The quote above is part of the explanation CEO Reed Hastings recently posted on the Netflix blog, regarding all of the recent changes the company has made.  Although, I’m skeptical that it will be enough to stop the bleeding.  Why?  Because in addition to using the blog to explain the changes that have already taken place, he also announced that Netflix is restructuring its business into what will essentially be two separate brands - Netflix DVD rental and its new media streaming subsidiary Qwikster.  Yes, the days of paying one monthly subscription fee for both the DVD rental-by mail and media-streaming services are gone. Netflix customers will now have to pay two separate subscriptions; two separate costs.

As of yesterday afternoon, Netflix stock was being traded at $129 a share.  A roughly 57% drop since July when the company’s stock was at its peak; trading at over $300 a share.  And while Netflix has certainly enjoyed tremendous business success and has by far been the market share leader within the video rental industry, its shareholders have lost a significant amount of confidence in the company in recent months...and Netflix competitors smell blood in the water.  One company’s hard times can be another company’s opportunity for significant growth.  I’m sure Amazon or Hulu for example, would love to take those awesome online movie rental sales numbers away from Netflix.  And Blockbuster?  Well...who could blame them for wanting another chance since its fall from movie rental glory, and subsequent bankruptcy filing a year ago! 

Most of us are annoyed by change of any kind, let alone change that we don’t agree with or perceive to be negative.  And if there’s one thing that really gets under our skin from a customer perspective, it’s being blind-sided by changes to our products and services.  I said all of this to say - Netflix has turned off a lot its customers.   

Is Being Profitable The Only Goal A Company Should Have?

So, let me ask you a question..  Which of the following practices do you think would ultimately make employees feel more valued, and subsequently more loyal to a company:  A) Involving them in the decision-making process; seeking their input and ideas when it comes to the best way to complete a project or perhaps improve a process; or B) Making decisions that employees are actual stakeholders of, without considering/seeking their input?  I’m gonna go with A.  I mean who wouldn’t want their own point of view considered (or at the very least, heard), especially in a decision that’s ultimately going to affect them in some way?

Sure, delegating tasks to employees or making decisions without asking for their input certainly takes a lot less resources than collaborating.   But here’s the thing - does financial success equate to overall success as an organization?  Companies can report strong net incomes quarter after quarter; year after year, yet still have high turnover rates and employees that are unhappy with many of the qualitative aspects of the organizations that are employing them.  In other words - is being efficient and striving for business success all there is to it?  After all, turnover can be a pretty significant company liability.  Bringing in new hires; training; loss of productivity while a position is unfilled...these are costs too.   

Now, it goes without saying that a business can’t exist unless it's actually profitable.  So I'm not at all suggesting that companies should become hallmark cards or completely disregard their purpose and business goals.  What I am saying is, should profitability be the only goal companies endeavor to reach?  For many people I'm guessing that the answer is probably, yes.  But, I think saying yes underestimates an organization's ability to multi-task.

Don't Be A Lazy Communicator!

Misinterpretations or misunderstandings are inevitable because human communication is so subjective.  That's just the way it is guys.  But, what are some of the things that we can do to try and minimize being misinterpreted or misunderstood?  Well to start, don't be a lazy communicator.

 

What do I mean by that?  Don't assume or expect others to automatically understand you, even if they're your best friend..closest co-worker..sibling..or significant other.  Regardless of how long or how well someone's known you, there are moments that will require you to make an extra effort or take a further step to help people understand what you're trying to communicate.  Have you ever said something similar to this before (or heard someone else say..), "I can't believe that's how they interpreted what I said...where did they even get that from?  They were so off base!"