Answer these questions from the reading provided. These questions are also highlighted at the end of the reading. 1. What is the underlying problem in this case from the investors' perspective? 2. What are the causes of this problem? 3. What recommendations would you make to investors for fixing this problem? Application of Chapter Content 1. From which sources did Neumann draw power? Which influence tactics did he use to gain followers' and investors' support? 2. From the perspective of trait theories, how would you evaluate Neumann? Which traits did he possess? Which traits was he lacking? 3. Evaluate Neumann according to the full-range leadership model. Which behaviors did he exhibit? Which behaviors did he fail to exhibit? 4. Consider Neumann in light of contemporary leadership approaches and concepts. Specifically, how would you rate Neumann in terms of his humility, ethics, and followers' behaviors? 5. Do you see issues with Neumann's self-awareness? Would you suggest that he suffered from the Dunning-Kruger effect? Explain your answers.

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E Etsy 2231639 2 / 3 100% As another example, according to one insider, Neu- be huge havinties for we We Work's IPO and cut the company's valuation by mann once said, "when countries are shooting at each 75%.235 The company ousted Neumann from his role other, I want them to come to me."24 A source close to and by the end of 2019 had cut its workforce by 20% the company described Neumann as "an intense per- while continuing to open new co-working spaces.236 In son who thinks he is a Jesus figure," but added that "he's also very good at what he does . . . He was almost April 2020, Japanese multinational conglomerate like a televangelist."2 Neumann's ability to motivate SoftBank pulled out of its offer to buy a controlling was acknowledged even by former company executives share in the struggling company. " As a minority shareholder, Neumann stood to gain approximately who strongly disliked him. $975 million from the deal. In May 2020, Neumann TROUBLE IN THE WORKS announced that he was suing SoftBank, saying that the Still, those who spent enough time with Neumann conglomerate was "secretly taking actions to under- mine" WeWork. 238 eventually saw holes in his visionary and charismatic facade. Said one real-estate executive who dealt with FOR DISCUSSION We Work, "He clearly is very smart and ambitious . . . but he starts talking about some of the more germane Problem-Solving Perspective aspects of the city's land-use process . . . and he has no 1. What is the underlying problem in this case from the idea what he's talking about. Your bulls-t meter just investors' perspective? goes off with him." The executive added that Neumann was "the quintessential person who doesn't know what 2. What are the causes of this problem? they don't know."228 3. What recommendations would you make to investors Others have expressed disappointment with the lack for fixing this problem? 2 of alignment between the vision that Neumann pitched Application of Chapter Content and the reality inside the company. "From the outside," said one former employee, "a lot of the pitch to the 1. From which sources did Neumann draw power? public and employees is all about this 'we' thing, but Which influence tactics did he use to gain followers' the closer you get to the core of the company, the less it and investors' support? exists. It's all about 'me' and 'I.""229 2. From the perspective of trait theories, how would you Ultimately, it was WeWork's S-1 filing-the registra- evaluate Neumann? Which traits did he possess? tion form that companies use when they are planning Which traits was he lacking? Power, Influence, and Leadership CHAPTER 14 637 3 3. Evaluate Neumann according to the full-range leader- would you rate Neumann in terms of his humility, ship model. Which behaviors did he exhibit? Which ethics, and followers' behaviors? behaviors did he fail to exhibit? 5. Do you see issues with Neumann's self-awareness? 4. Consider Neumann in light of contemporary leader- Would you suggest that he suffered from the Dun- ship approaches and concepts. Specifically, how ning-Kruger effect? Explain your answers. 65OF Mostly cloudy Q Search DELL PS 10:33 PM 6/17/2023 4Bb Announcements - 23SUSE Prin N X Bb 2231639 * *Course Hero * *Dashboard X + X - C learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/5f452d76867dd/2231639?X-Blackboard-$3-Bucket=learn-us-east-1-prod-fleet01-xythos&X-Blackboard-Expiration=1687068... I * * IA com County College of... M Gmail Bb Blackboard @ Titans Direct * VHL Central | Home M McGraw Hill Connect Pearson Sign In Course Hero Papersowl Rate My Professors... Making Money wit... E Etsy 2231639 2 / 3 100% IViallayCHICIL III ACLICH Adam Neumann's Rise and Fall at WeWork called Green Desk, renting out desks in co-working In 2001, 22-year-old Adam Neumann moved to the spaces for people and companies that weren't ready to United States from Israel. He attended Baruch College invest in their own offices. By 2010, their company We- in New York City but dropped out when he was four Work was born. 221 credits shy of a diploma, trying his hand instead at be- How, exactly, did WeWork work? Essentially, the ing an entrepreneur. After two failed ventures, Neu- company leased office spaces in metropolitan areas like mann and friend Miguel Mckelvey started a business New York City and San Francisco-where flexible 636 PART 5 Leading working space was in high demand-then split them an initial public offering (IPO)-that alerted investors into tiny 64 square foot sections. WeWork then sublet to the company's and CEO's troubles. For example, as 2 the sections to professionals, providing amenities such a managing member of the separate private company as restaurants, office equipment like copy machines, "We Holdings, LLC" Neumann trademarked the right and camaraderie. Neumann sold investors on his busi- to the word "We." He then reorganized WeWork under ness model by positioning WeWork as a tech and life- the umbrella "The We Company" and charged it-his style company, but critics say it was never anything own company-$5.9 million for the rights to use the more than a glorified subleasing firm. How is it pos- word.230 Neumann was also taking near zero-interest sible, then, that by 2019, WeWork had more than 520 loans from WeWork, using the money to buy office locations across the globe and a valuation of almost buildings, then renting the spaces back to We Work. 231 $50 billion (compared to its biggest competitor's $3.7 Former Twitter CEO Dick Costolo said of Neu- billion valuation)? mann, "this is not the way everybody behaves." Costolo INSPIRING LEADERSHIP characterized "the degree of self-dealing" inside We- Work as "egregious."232 But former employees said that 3 Neumann "led with unusual exuberance and excess," it was nearly impossible to talk Neumann down from said one reporter, adding that it was the CEO's "combi- anything, no matter how absurd it seemed. One insider nation of entrepreneurial vision, personal charisma and told a reporter, "one time, we asked one of the top ex- brash risk-taking" that made WeWork the most valu- ecs . . . 'can you bring him back to reality?' And she able start-up in the country at one point.225 The CEO said, 'when Adam comes in and wants to do this or often had outlandish goals, including an idea to create that, even if it's a really bad idea, we will figure out how shared office spaces on Mars and to give the world's to do it.""233 150 million orphans a family in WeWork. 224 Neumann seemed to believe that he had extraordi NEUMANN'S OUSTER nary abilities to accomplish the impossible. For exam- Experts have speculated that the qualities in Neumann ple, he invested in Life Biosciences, a life-extension that fueled the company's meteoric rise proved to also start-up company, because he wanted to live forever.225 Ac another avamnla according to one incider Man be huge liabilities for WeWork.234 Investors rejected 65OF 10:33 PM Mostly cloudy Q Search DELL PS 6/17/2023 4