Quality businesses make critical decisions in weeks, not months. Netflix CEO Reed Hastings made the massive decision to greenlight House of Cards in just 30 minutes, while competitors spent quarters deliberating similar content investments. This decision velocity creates compounding advantages that become impossible to catch.
How Netflix mastered decision speed
When Netflix decided to produce House of Cards, “the meeting that gave the project a green light lasted just 30 minutes” according to Hastings. While other networks spent months in committee reviews, Netflix moved fast because others had already laid the groundwork.
What they did: Netflix applies “context not control” management, giving teams clarity needed to make good decisions instead of trying to control everything. Hastings prides himself on “making as few decisions as possible” and lets his team dream up new products and initiatives.
How it worked: This creates “a sense [in employees] that ‘If I want to make a difference, I can make a difference’”. Teams can act quickly because decision-making authority is distributed rather than concentrated at the top.
The compound effect: While Blockbuster deliberated for years about streaming, Netflix launched their streaming service in 2007 and gained insurmountable market advantage through speed of execution.
Decision speed DECODED: 60-second assessment
Quick assessment to spot decision speed in any business:
Two key questions:
Can leadership explain their decision-making process in simple terms without mentioning multiple approval layers?
Do they have examples of major decisions made within days or weeks rather than quarters?
What to look for:
Quality signal: Clear decision ownership with minimal approval layers → This indicates leadership trusts teams and enables rapid execution
Warning sign: Complex approval processes with multiple committee reviews → This predicts slow response to market changes and missed opportunities
Why this matters: Netflix’s speed advantage allowed them to disrupt established players like Blockbuster who “were 15 times their size” but moved too slowly.
Red flags to watch:
Decisions requiring multiple committee approvals
Leadership unable to explain who makes key decisions
Your advantage
Better decisions: Recognizing decision speed patterns helps you identify companies that can adapt quickly to market changes versus those trapped by bureaucratic processes.
Risk avoidance: Spotting decision paralysis warning signs prevents investment in businesses that will struggle to compete against faster-moving rivals.
Compound benefits: Decision speed assessment improves over time because you learn to distinguish between thoughtful speed and reckless haste - quality businesses do both fast AND well.
Your next step
Next time you evaluate a business, check for decision velocity. Notice how quickly leadership can explain their decision-making process and whether teams have authority to act. Companies with strong decision speed tend to capture market opportunities first, while those missing it often watch competitors take their market share.
This Friday: Deep analysis of how Netflix’s decision architecture enabled their transformation from DVD rental to streaming dominance - and what it reveals about competing against established incumbents.