Netflix Inc. (NASDAQ:NFLX) co-CEO Ted Sarandos says he skips management books and turns to fiction for leadership lessons, arguing that Joseph Conrad’s "Typhoon" taught him more about uncertainty, judgment and accountability than traditional business guides.

Sarandos Finds Leadership Lessons Inside Fiction Novels

Sarandos told CNBC’s "Leaders Playbook" in January that he does not keep management books on his desk or nightstand. His favorite "management book," he said, is Conrad’s 1902 novella about a ship captain and crew fighting through a storm.

"It doesn’t sound like a management story on the surface, but I think it’s the most powerful leadership story I’ve ever read," Sarandos said. "I read it over and over again because I find … I get something different in the book every time I read it."

Typhoon Shows How Leaders Handle Bad Decisions

Sarandos said his view of the story changed over two decades. At first, he saw the captain as a reckless "hot dog" who endangered others. Now, he sees a lesson about leading when decisions fail to unfold as expected.

"Now, what I see is that when you go through life and you go through business, you make a lot of decisions that don’t turn out the way you thought they would," Sarandos said. "The real leadership test is: How do you manage through that?"

Sarandos joined Netflix in 2000 as head of content operations and said co-founder Reed Hastings shaped his leadership style. "I think the lesson that he’s left for me is that you pick the best people, give them the tools to do the best work of their life, and get out of their way," Sarandos said.

He applied that autonomy when he spent $100 million on "House of Cards," Netflix’s first original series, and greenlit two seasons without asking Hastings for permission.

"If this show fails, we will have dramatically overpaid for a show," Sarandos recalled telling Hastings. "But if it succeeds, we could completely transform the business as we know it."

Other CEOs Also Look Beyond Management Books

Sarandos’ point echoes other leaders who draw lessons beyond conventional management books. Apple Inc. (NASDAQ:AAPL) CEO Tim Cook has said Steve Jobs helped him find purpose in serving users. Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella told executives to "manufacture success" with the resources available. Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg has cited Peter Thiel’s warning that "the biggest risk you can take is not taking any risk."

Amazon founder Jeff Bezos has also drawn from fiction, including Kazuo Ishiguro’s "The Remains of the Day," while Bill Gates has praised novels for revealing how important systems work.

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