In decision-making, the co-CEO of Netflix emphasizes the balance between algorithmic processes and human judgment, with a 70-30 ratio in favor of algorithms. However, human judgment is considered superior as it incorporates the norm of science, which involves settling arguments with evidence through tests, experiments, and discussions. Science is a social and argumentative process where evidence plays a crucial role. Geek companies like Microsoft have succeeded by following this scientific approach, as seen in the impressive corporate turnaround led by Satya Nadella.
The secret to success for many Silicon Valley tech companies isn’t necessarily that they’re ultra-nimble startups, or that they’re led by tech-savvy geniuses. Andy McAfee says their success often has more to do with a specific type of corporate culture that focuses on finding unconventional solutions to hard business problems.
McAfee is a principal research scientist at the MIT Sloan School of Management, and he’s the author of The Geek Way: The Radical Mindset That Drives Extraordinary Results.
In this episode, he explains why business leaders need to think more like geeks and explains why it’s important to center your culture on company norms, rather than organizational structure. He also offers tips for finding that delicate balance between human judgement and data-driven insights.
Key episode topics include: strategy, technology, start-ups, innovation, competitive strategy, Silicon Valley.
HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.
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