Getting ready for the turnaround
After the All-Company presentation on October 3, management kicked into hyperdrive, reacting to immense pressure from Marcelo and SoftBank. Data requests, reviews, weekend calls—it was an intense preview of what the next couple of years would look like and what it takes to turn around a company that had gone so far off track.
At the time, I was in the Product team, and the investigations I saw seemed to fall into three main buckets:
- Location performance reviews
- Pre-opening project reviews
- Organizational reviews
Many areas of the business lacked proper processes and reliable data, so even basic questions required manual preparation. Managers who had historically done whatever they wanted were now being questioned like everyone else. It was humbling for all of us, but especially for those who had taken on roles beyond their capabilities and attached their egos to their work. These individuals often went into defensive mode, but they didn’t last long.
Take construction projects, for example. Understanding how many projects were in the construction phase versus pre-construction became a critical data point. Projects in pre-construction could be terminated much more easily, so getting this data quickly was essential. But the process to gather it was archaic. We had to send email requests to hundreds of project managers globally, asking them to manually update spreadsheets. This became a regular task to keep the data current. Given the lack of reliable systems to validate the updates, the risk of errors was high.
This was just one example. Hundreds of similar manual data-gathering exercises put enormous strain on teams. Relationships were stretched thin, and managing people effectively became increasingly difficult. Time and time again, employees were asked to go above and beyond, all while facing little to no job security.
This period also marked a profound power shift at WeWork. The ‘old guard,’ who had once blocked decisions, promoted their own agendas, and managed their units as they saw fit, were losing influence. In their place, a new group emerged—those focused on driving the turnaround.
I always thought it was a shame that many of the old guard couldn’t embrace this new chapter. Their institutional knowledge could have made them exceptional leaders and saved hundreds of jobs. Instead, their resistance to change ultimately made them a casualty of the turnaround.
Takeaways
- Processes Are Critical
Without proper systems, even basic tasks become time-consuming and error-prone, straining teams and slowing progress. - Humility Fuels Growth
Ego-driven resistance to change can derail careers, while adaptability is key to thriving in a turnaround. - Data Drives Decisions
Accurate, accessible data is essential for effective decision-making during a crisis or transformation. - Crisis Reshapes Power
Turnarounds shift influence to those focused on solutions, leaving those resistant to change behind. - Change Is Opportunity
Those willing to embrace new chapters can become leaders, leveraging their knowledge to create meaningful impact.