There has consistently been speculation over Elon Musk, the new CEO of Twitter’s leadership style.
Musk’s latest ultimatum as he tells employees they have 24 hrs to commit to the new “hardcore” working environment or take severance pay and leave is at best questionable in terms of employee relations and at worst, a sure-fire way to send shares spiraling and a leadership catastrophe.
Mergers and acquisitions often result in a change in leadership, executive boards and CEOs in companies. But rarely have we seen such a controversial leadership style being played out before our eyes. For some, the inevitable car crash about to happen as droves of employees leave makes for fascinating viewing. Yet, for others, it paves an unpalatable way for other eccentric, possibly far-right corporate leaders to follow.
The question of morale
So how should morale be kept up despite all the uncertainty for those who stay? Is it even possible? Those who choose to stay can look forward to longer hours, giving up any hope of a personal life and potentially being micromanaged by a detail-obsessed CEO.
If leading is getting those around you to commit to a vision, Musk surely is failing on this front. The vision he is creating is of a hardcore culture and a “take it or leave it” management style.
CEOs who have to deal with “burning houses” as they steer a sinking ship quickly realise they need people to come on board and take risks to put it out. Appealing to a sense of purpose, teamwork and a larger vision are all par for the course. What Musk is doing, is saying “do it or there’s no discussion”. Further, he has given employees 24 hours to decide. In my experience, when you put coercive and bullying timelines in place for candidates to make a snap decision, the outcome is normally never favourable for the potential employer. This situation is no different. When people are backed into a corner, the natural reaction especially at a senior level is to walk. The actions of a relationship-driven CEO can pay dividends in productivity, engagement and retention for employees, yet Musk appears to be doing the opposite.
Change in strategy = a smaller talent pool
Musk has said he is shifting focus from product and design to more emphasis on engineering. Not only do employees have to contend with the longer and more pressurised environment, but they are being asked to put their trust in someone who has a track record of changing the direction companies he takes over. Surely the pool of available and willing candidates will get even smaller as the “sell” gets harder?
Musk has proven at previous ventures like SpaceX and Tesla that his strategy is as radical as it is ruthless. His approach can be categorised into three themes as quoted in the Harvard Business Review; a vision for solving problems, the organisation as the solution to those problems and how he mobilises resources towards those solutions – shining a light on the possible roadmap for Twitter.
Twitter is undoubtedly going through significant changes and the impact on recruitment, attrition and retention will be fascinating to watch from afar and see how the story unfolds. As a new CEO, the relationships with existing and future employees will be severely called into question. Whether he can steer the sinking ship to a port of safety without the support of a solid leadership team around him will be the imminent question for Twitter shareholders.
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