Taking back an ex can be tempting, but Wework must remember why things didn’t work out with Neumann in the first place, writes Michelle Traylor
The unwelcome trend of ‘boomerang CEOs’ continues, with rumours recently circulating that ex-Wework boss Adam Neumann could potentially be making a dramatic return.
Neumann famously came under fire for his management style while leading Wework, with employees describing the culture during his tenure – which saw the buzzy startup soar to a $47bn valuation before a failed attempt to go public in 2019 – as a chaotic “never-ending party”. Neumann’s attempt to buy the beleaguered co-working giant out of bankruptcy, with his lawyers sending a letter to Wework last week, has therefore naturally raised eyebrows.
Of course, there have been cases of the spark reigniting when a CEO returns. Steve Jobs returned to Apple when the company was on the brink, while Bob Iger was also instrumental in Disney’s recent resurgence. But, pertinently on Valentine’s Day, it’s a good time to remember that taking back your ex rarely leads to a happily ever after.
Taking back a fallen, or even former, CEO doesn’t tend to work out because of all the reasons it didn’t previously – a leopard can’t change its spots. Someone, or in this case a large workforce, will undoubtedly have to compromise to try and make it work again.
When he was first ousted from the company in 2019, investors were concerned about the business model and corporate governance. Neumann himself admitted that scrutiny of his personal life and management was detrimental to the firm’s well-being. Whether coerced into saying this or not, he was obviously prepared to admit that he wasn’t the right man for the job.
In contrast, the current CEO, David Tolley, is a proven leader, with a track record of running complex and high-impact businesses. Endorsed by the chair of the board of directors as the right leader in October 2023, it is claimed that he has brought energy and, crucially, discipline and focus to Wework.
From a business, and personal, perspective, settling for sloppy seconds is never a wise choice. Toxic leaders often have brilliant, creative minds. While this can be like honey to a bee for businesses and stakeholders alike, being charismatic and a rainmaker shouldn’t be confused with leadership.
Integrity, transparency, humility, self-awareness and empathy are essential traits of effective leadership. They provide stability and consistency and serve as a role model for desired behaviours within the workforce. From what has been reported, Neumann wasn’t synonymous with any of these behaviours, so why does he deserve to get back into the driver’s seat?
A CEO is at the top of the food chain. The one who sets the vision and the culture that others follow. If they left under a cloud of controversy, chances are many breathed a sigh of relief, and efforts were presumably made to correct the wrongs and repair trust. The ramifications of bringing that individual back throw into question the biggest part of a culture that you can’t create but simply have to authentically be – a place where people feel psychologically and professionally safe.
If you can damage the culture of a business and then get welcomed back with open arms, why should anyone who works there bother to stay engaged, act appropriately and push for better? The standards you’re setting will not be high enough, and you’ll be punching above your weight trying to retain your best talent.
You have been warned: sometimes the devil you know isn’t always the devil you want to work with again.