Execution Strategies
Doubling WeWork’s membership and eliminating $4 billion in negative cash flow was an ambitious undertaking, but there was a sense among employees that anything was possible. After all, the company had defied the odds before—why couldn’t it achieve the greatest turnaround of our time? Marcelo made it clear: execution would make or break the plan. Success depended on six key strategies.
1. Member & Employee Experience
Marcelo emphasized that great companies start with great products. To turn WeWork around, the company needed to obsess over its members, ensuring they were “crazy about us.” To achieve this, WeWork implemented the Net Promoter Score (NPS) framework to measure member satisfaction. Member feedback would be escalated through a clear path—local community teams, regional managers, and even Marcelo himself if issues weren’t resolved.
Employees were equally important. To match the level of care expected for members, the company introduced Employee NPS (eNPS) to measure engagement and hold managers accountable for their teams. This opened communication between employees and leadership, helping to identify and address internal issues across regions, products, and functions.
While these tools improved communication and drove change, some leaders struggled. Teams that were too large, leaders who didn’t prioritize care, and frustration from lingering cultural challenges often paralyzed efforts. Still, for many, this was the first step in restoring trust and collaboration across the company.
2. Partner of Choice
To dominate the market, WeWork needed to become the go-to partner for members, landlords, and vendors. Freelancers, startups, SMBs, and enterprises needed to see WeWork as their preferred workspace provider. Similarly, landlords needed to trust WeWork as an economically viable tenant, giving it first occupancy rights for new developments.
By acknowledging the broader ecosystem, Marcelo reinforced that WeWork’s success depended on partnerships that extended beyond its own walls. Members and employees needed to feel so enthusiastic about the product that they became ambassadors, driving retention and new business leads.
3. Building-by-Building Excellence
WeWork shifted its focus to maximize profitability at the building level. This meant optimizing each performance component:
- Maximizing revenue using dynamic pricing and service add-ons.
- Negotiating rent and tenancy costs to reduce expenses.
- Optimizing operating expenses to improve efficiency.
This granular, building-by-building approach required teams to rethink how they managed day-to-day operations, ensuring every dollar and decision contributed to overall profitability.
4. Smart & Profitable Growth
WeWork needed to grow strategically, tailoring its approach to different markets:
- Large markets: Full-service leasing and operations with significant capital investment.
- Medium and large markets: Management and revenue-sharing deals with landlords.
- Smaller markets: Franchise arrangements.
- Key international markets: Joint ventures with local partners.
By diversifying growth strategies, the company could balance expansion with profitability and capitalize on market-specific opportunities.
5. Maximize Revenue
WeWork aimed to unlock additional revenue streams by monetizing its spaces with new products and services:
- Membership tiers, from city-specific hot desks to global access.
- Enhanced conference room and event offerings.
- Utilization options for spaces outside of working hours.
- Elevated designs with soundproofing, custom furniture, and privacy areas.
- Premium technology options like VPNs and business internet.
- Business services like insurance and HR support.
This required a shift in the sales team’s mindset, treating these offerings as valuable add-ons that complemented core memberships.
6. Owner Mentality
The final strategy required a cultural shift: adopting a cash-conscious owner mentality. Employees were encouraged to ask themselves, “If this were my money, would I spend it?”
To ensure accountability, WeWork implemented a Transformation Office to oversee delivery execution and create a disciplined, results-oriented culture. This new mindset marked a sharp departure from the free-spending ways of the past, signaling a commitment to sustainable operations.
Employee Reactions
Hearing these strategies provided clarity and direction, building alignment with SoftBank and signaling a shift from a victim mentality to one of action. Marcelo’s rallying cry to “take the gloves off” resonated with many, creating momentum and hope for the future.
Still, resistance remained. Intentional resistors clung to the free-spirited culture of Adam’s era, rejecting the structured approach. Unintentional resistors struggled to see how their work fit into the new framework or feared changes would compromise the company’s stability.
Despite these challenges, the strategies laid the groundwork for a more disciplined, focused WeWork. For many, it felt like the beginning of a real turnaround.
Takeaways
- Great Companies Start With Great Experiences
Prioritizing member and employee satisfaction builds loyalty and drives long-term success. - Feedback Fuels Improvement
Tools like NPS and eNPS enabled leaders to identify issues, drive change, and rebuild trust. - Partnering Drives Dominance
Strong relationships with members, landlords, and vendors are essential for sustained market leadership. - Profitability Happens Building-by-Building
Focusing on dynamic pricing, cost control, and operational efficiency drives profitability at the ground level. - Tailored Growth Yields Better Results
Adapting strategies by market type ensures smarter, more profitable expansion. - Revenue Comes From Creative Add-Ons
Monetizing spaces through new services and offerings creates additional revenue streams. - Owner Mentality Builds Accountability
Treating company resources as personal investments fosters discipline and better decision-making.