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“ Structural cohesion is an employee-generated synergy — essentially a close-knit, high-energy culture — that propels the company forward.” ” “In announcing the arrival of “the ethical consumer,” Time magazine noted: “We are starting to put our money where our ideals are.”
The number of listed firms can decline because of three developments: 1) bankruptcy, failure, or closure of listed firms, 2) delisting of firms going private or acquired, and 3) decrease in number of initial public offerings (IPOs). Furthermore, doing IPO is not only an expensive proposition, it also consumes managerial time and energy.
Major organizational changes, covering everything from recruiting and branding to regulatory approvals and marketing, happened in rapid succession, with a hard deadline of 12 months to get it all done for the IPO — and 18 months from the IPO until our full separation from GE. Change management certainly tested us.
All of this indicates that Uber leaders prioritized immediately useful services like recruitment over, for example, legal compliance systems, audits, and leadership development. Today Uber is no startup, with 11,000 employees, not including its drivers, and a 2017 market value at IPO that is estimated as $28–$70 billion.
In hindsight, this thinking turned out to be far less important than what we learned about leadership, control, and trust, which ultimately were reflected in how each of the businesses was created, capitalized, and staffed. Ma and the Alibaba leadership team would retain management control. Although he didn’t have a U.S.
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