Why Uber is Heading Straight For a Crash

Just when you thought things couldn't get worse, they do. I had high hopes for Uber and have been a customer for quite some time. Now I find myself holding my finger over the app and reminding myself that there is another way home. It's called Lyft.

Today's Wall Street Journal features an article titled, Uber Vows to Change Corporate Culture. The article states that four of Uber's most prominent female officials are trying to put an end to the controversy at Uber with the promise of sweeping changes to the company's corporate culture.

Uber director Arianna Huffington said the ride-sharing company was well under way with a search for a new executive to serve as a deputy to co-founder and CEO Travis Kalanick. So far so good, right?

Now's here's where things went south for me. According to the Journal, "Ms. Huffington indicated Mr. Kalancik's job was secure." Huh?

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.

Here's the one thing Huffington and I can agree on. Creating a great culture will be key to the future success of Uber or any company for that matter. Anyone whose ever been involved with building great cultures knows that you have to be willing to make some very unpopular moves, in order to achieve your objectives of building a great workplace. This includes being prepared to remove those whose values no longer align with where your company is heading.

Update: June 13, 2017.

Less than a week ago, I predicted Kalanick would soon be gone. Today Uber announced that Kalanick is going on "temporary leave." Here's my next prediction. His "temporary leave" will be permanent. Now maybe the company can start to heal and rebuild goodwill with their employees and customers.

What are your thoughts on today's announcement regarding the temporary leave of absence of UBER CEO and founder Travis Kalanick?

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? Matuson Consulting, 2017. All Rights Reserved.

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