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Adapt & Overcome

It’s 1997 and Reed Hastings is in shock. He has just been charged a $40 late fee for returning Apollo 13 to Blockbuster six weeks late. He is convinced that the entire model for video rental is a disaster. It isn’t just about avoiding the fees, however it is admittedly a big part of his motivation to find a solution. This experience needs fixing and Reed Hastings is just the man to do it.  His solution? Netflix, initially a DVD-by-mail service that simply eliminates late fees.
By 2007, Netflix had shipped its billionth DVD and seems to have found its niche. Blockbuster’s late fee model had been debunked and a successful, profitable business had been born. Hastings, however, had no intention of stopping there. While their DVD business was still booming, they made a decision that seemed almost suicidal at the time - they began investing heavily in streaming technology. There were indications that the internet may make physical media obsolete, but choosing to invest in something that would virtually cannibalize their profitable DVD operation seemed questionable at best.
In 2011 Netflix announced that it would split its DVD and streaming services - raising prices significantly - customers revolted. The company lost 800,000 subscribers in a single quarter, and its stock price fell by 75%. Experts were sure of Netflix’s demise. According to them, Netflix had moved too fast and alienated their core customer base. But Hastings and his team never wavered in their conviction that streaming was the future.
His team wasn’t done there though - they doubled down on their belief in the change. Rather than simply licensing content from traditional media companies, Netflix began producing its own original programming in 2013. This transformed Netflix from a technology company that delivered content into a media company that created it. 
Today, Netflix has fundamentally reshaped how the world consumes entertainment. The company that started with DVDs-by-mail now stands as one of the most influential media companies on the planet.
Why Should We Care?
Netflix's transformation illustrates a fundamental truth about leadership and excellence in today’s world: the most dangerous position isn't being behind the curve - it's being comfortable at the top of the current curve. The best leaders are willing to disrupt their own success before someone else does. 
The leaders who create lasting impact recognize that adaptability isn’t reactive - it’s proactive. They're the ones who continuously evolve their approach as circumstances change. This forward-thinking adaptability is what transforms companies from industry participants into industry leaders and individuals from victims of mediocrity to champions of excellence.
Excellence is for those who can sense inflection points before they become obvious to everyone else. They view their past successes not as proof they've found the right formula, but as evidence they have the capability to succeed again, regardless of the circumstances.
Netflix created an environment where questioning the status quo wasn't just tolerated but expected. This adaptable culture enabled them to make massive pivots without losing their core identity or mission. They remained focused on delivering entertainment value to customers, even as the methods for doing so transformed completely.
REAL TALK - Action Steps
Change can be scary, but we should also recognize it’s vital. Here are a few ideas to help you adapt to adapting:

• Start, Stop, Keep Reflection 
  
  • Identifying what you need to stop doing is just as important as identifying what you need to start doing. Examine your current projects, processes, and commitments monthly. Be ruthless about eliminating activities that no longer serve your goals, even if they were successful in the past. 
    

• Identify Lead Measures
  
  • Develop early warning indicators that help you spot shifts before they become crises - these are your lead measures. Expand your information sources beyond your usual channels. Engage with people who disagree with you. Actively seek out weak signals of change. Schedule assumption audits where you challenge your core beliefs about your market, your customers, and your strategies. 
    

• Think Like a Scientist
  
  • Build small-scale testing into your regular workflow. Instead of planning massive changes, develop the discipline of running tiny experiments that can inform larger decisions. Establish time and resources you dedicate specifically to trying things outside your comfort zone. 
    

In a world where change is the only constant, your capacity to adapt isn't just a competitive advantage - it's the pathway to sustained excellence.

Checkout Surrender the Outcome on Amazon and order The Score That Matters with Ryan Hawk & Brook Cupps. The latest blog from Blue Collar Grit can be found here!