Hard work is not what makes companies household names, says Netflix co-founder Marc Randolph.
Successful CEOs and entrepreneurs often get ahead because they have a single skill: They can prioritize which problems need to be solved first, Randolph said earlier this month in a podcast episode of “The Diary of a CEO with Steven Bartlett.”
“I think that hard work leads to success is a myth,” he said. “If I’m really smart about what problems I focus on, that’s going to make the difference. I don’t have to do everything right, because most things don’t make a difference. Some things do.”
At Netflix, Randolph argued over “every word of text” and every photo of consumer products, he said – desperately trying to make sure everything was perfect before a customer saw it, he said.
Over time, he realized that customer reactions had little to do with the maturity of a new idea and that his goal should have been to get practical feedback on imperfect, half-finished tests as quickly as possible, he added.
“If there was even the semblance of a good idea, no matter how bad the test turned out, it turned out to be true,” Randolph said. “Customers immediately pricked up their ears.”
One of these tests was Netflix’s subscription model, which eliminated the need for late fees on DVD rentals. Customers responded positively to the simpler, less stressful user experience – a simple solution that helped grow Netflix’s customer base and put the company on the path to its current market value of $289.29 billion.
When hard work counts
While recruiters and billionaires alike extol the value of a strong work ethic, Randolph isn’t alone in thinking hard work is sometimes overrated.
Hard work used to mean being the first to arrive at the office and the last to leave, but that doesn’t guarantee you’ll become a CEO or build a multibillion-dollar company. Plus, a 2014 Stanford study showed that hourly productivity drops sharply when you work more than 50 hours a week.
Instead, use your 9-to-5 work schedule to build good relationships with your coworkers, especially if they can give you feedback on your work, Stacie Haller, career counselor at ResumeBuilder, told CNBC Make It earlier this month.
Sometimes you have to sprint and work a lot of overtime, especially at the beginning of your career or when you start your own business, Randolph notes.
“When you’re younger and don’t really know what you’re doing, you better work your ass off,” he said, adding, “Ideally, you’re advanced enough to get some breathing room.”
Eventually, constant sprinting reaches a point where returns diminish. Tactful concentration is what separates hard workers from smart workers, Randolph said.
“So many entrepreneurs are up all night polishing their decks … double-checking every detail and working so hard,” Randolph said. But “you don’t lose the deal at 2 a.m. because you didn’t check the fonts. You lost the deal four weeks ago when you didn’t do some basic things right.”
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