Uber CEO Travis Kalanick Turns In License: What's Next?

I'd like to think I had something to do with the decision Uber's board made to ask their CEO Travis Kalanick for his resignation. In an earlier LinkedIn post, titled, Why Uber is Heading Straight for a Crash, I wrote the following.

I've studied corporate culture in the workplace and have worked in this space for over 20 years. There is one thing I absolutely know for sure. Culture starts at the top. There is no way Uber will move the needle even a tiny bit on their corporate culture with Kalanick at the helm. It's simply not possible.

Here's what needs to happen. The directors at Uber need to remove Kalanick and bring in a grown-up to run the company. This move will signal to employees, investors, and customers, that the company is serious about making a significant culture change. Anything less will result in the continued exit of high-level executives, the loss of more employees and customers, and no doubt another outburst from the executive suite that will send the company crashing down.

According to the New York Times, Mr. Kalanick’s exit came under pressure after hours of drama involving Uber’s investors, which was reported by two people with knowledge of the situation, who asked to remain anonymous because the details were confidential.

Here's what needs to happen next.

Currently Uber is being run by an executive committee. If you've ever worked on a committee, you know how dysfunctional they can be. There's all sorts of political jockeying for position and much infighting. In order for one person to win, someone has to lose. Not a pretty picture and certainly not a recipe for long-term success, especially for a company the size of Uber.

They're going to need to bring in a magnetic leader. Someone who is selfless, a strong communicator and charismatic. This person in turn will need to remove the remaining executive team and start anew. And these new leaders will no doubt have to do the same with many of their managers as well.

They are going to need to do a ton of work on their employer brand, which has gone from gold to Kryptonite. I personally know of one executive, who was recently asked to consider joining Uber's executive team, in the midst of the implosion. She and a number of her well-esteemed colleagues politely declined the offer to interview.

An employer brand is your reputation as an employer. It's the first thing that comes to people's minds when they are considering whether or not to work for a company. Kalanick may be gone, but his ghost will live on for a long time to come, especially since he's still on the board, which I predict won't be for long. The new CEO will need to work on this immediately, as brand building takes time and there are quite a number of highly visible positions that Uber's been unable to fill.

The board will need to put the brakes on growth plans and give the company time to recover from what has been a crazy ride. And as for Kalanick, it might be a good time for him to remove himself from the board before he's asked to resign.

#LinkedInLearning

© Matuson Consulting, 2017. All Rights Reserved.

To learn more about how to identify and hire magnetic leaders, check out my newly released book, The Magnetic Leader: How Irresistible Leaders Attract Employees, Customers and Profits. Download your copy today.

Sign up for my monthly newsletter, The Talent Maximizer®.