Netflix's Success Valued at $289 Billion, Says Co-Founder: "The Myth of Hard Work Leading to Success"

Marc Randolph, co-founder of Netflix, believes that hard work is not the key to a company's success.

During a recent podcast episode of "The Diary of a CEO with Steven Bartlett," Randolph stated that successful CEOs and entrepreneurs often excel because they possess the skill of prioritizing which problems require immediate solutions.

"Success is not solely determined by hard work, but rather by smart problem-solving," he stated. "It's not necessary to get everything right, as most things have little impact. However, some things do matter."

Randolph was meticulous at Netflix, scrutinizing every word of copy and photograph on consumer-facing products to ensure perfection before they were viewed by customers.

He came to the realization that the level of polish on a new idea did not significantly impact customer reactions. Instead, he should have focused on obtaining real-life feedback on unfinished tests as soon as possible.

"If it had even a hint of being a good idea, no matter how bad the test was, it would shine through," said Randolph. "Customers would immediately perk their heads up."

Netflix's subscription model, which eliminated late fees on DVD rentals, was one of the tests that helped grow its customer base and increase its market value to $289.29 billion.

When hard work matters

Randolph isn't the only person who believes that hard work can sometimes be overvalued.

The traditional definition of hard work as being present at the office before and after everyone else is no longer a guarantee of becoming a CEO or building a multi-billion dollar company. Additionally, a 2014 Stanford study revealed that productivity decreases when working over 50 hours per week.

Stacie Haller, chief career advisor at ResumeBuilder, advised CNBC Make It earlier this month to use your 9-to-5 schedule to build strong relationships with your colleagues, especially if they can offer feedback on your work.

At the start of your career or when launching your own business, you may need to work long hours and sprint, advised Randolph.

"He advised, "As a young person, when you're unsure of your path, you must work hard. It's ideal to get ahead enough to have some space.""

Smart workers are distinguished from hard workers by tactful focus, according to Randolph.

"Randolph stated that many entrepreneurs are up all night refining their pitch, double-checking every detail, and working tirelessly. However, he emphasized that it's not the fonts that lose the deal at 2 o'clock in the morning; it's the lack of fundamentals that cost the deal four weeks ago."

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