WeWork: How Leadership Failures Led to Its Decline
Brands from Yesteryear: Leadership Failures
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Week 7 of 13
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Brands from Yesteryear: Leadership Failures | Week 7 of 13 |
Do you remember WeWork? They were pretty big and gaining serious traction before the COVID-19 pandemic. What began as a promising venture aimed at redefining workspaces quickly spiraled into a case study of overreach, mismanagement, and the consequences of unchecked ambition. WeWork is a great real-world example of faltering ideas without strong, resilient leadership.
Overemphasis on Growth Without Sustainability
Leadership at WeWork pursued aggressive expansion strategies, focusing on rapid global growth rather than sustainable profitability. The company’s valuation soared, but this growth masked fundamental flaws in its business model—primarily, the long-term viability of leasing spaces at high costs while renting them out at lower rates.
Lack of Accountability
Adam Neumann, WeWork’s charismatic CEO, wielded considerable power with limited oversight. This lack of checks and balances enabled impulsive decision-making, such as entering unrelated industries and overextending resources, which eroded stakeholder confidence.
Cult of Personality
Neumann’s leadership style revolved around his personal vision rather than fostering a collective organizational mission. This approach created a dependency on his charisma while sidelining other voices that could have brought balance and perspective.
Misalignment of Values and Actions
While WeWork promoted itself as a community-focused company, its leadership’s actions often contradicted these ideals. Reports of extravagant spending and focus on self-enrichment undermined the brand’s credibility and alienated employees and investors.
Conclusion
The rise and fall of WeWork underscores the critical role leadership plays in an organization’s trajectory. Without structure, vision can lead to collapse, but resilient leadership—grounded in accountability and sustainable practices—can drive true, enduring success.
References
Lietz, N. G. (2019, September 18). WeWork—The IPO that shouldn’t? Harvard Business School. https://www.library.hbs.edu/working-knowledge/wework-the-ipo-that-shouldn-t
Wiltermuth, J. (2023, November 7). Adam Neumann says WeWork ‘failed’ to seize opportunities, calls bankruptcy ‘disappointing’. MarketWatch. https://www.marketwatch.com/story/adam-neumann-says-wework-failed-to-seize-opportunities-calls-bankruptcy-disappointing-8f8ed6a2
Goswami, R. (2023, November 6). WeWork, once valued at $47 billion, files for bankruptcy. CNBC. https://www.cnbc.com/2023/11/07/wework-files-for-bankruptcy.html
Cohan, P. (2023, June 13). After flushing $10 billion, why WeWork is not working. Forbes. https://www.forbes.com/sites/petercohan/2023/06/13/after-flushing-10-billion-why-wework-is-not-working/
