Adam Neumann’s fall is seen as a business story, but it's a tale of social psychology. This is why startups are, in many meaningful senses, cults.
Richard Markel, the vice president, told Business Insider that there was a massive disconnect between WeWork's stated goals of harmony and earth friendliness and the actual day-to-day running of the business — like when, in the lead-up to his eventually being let go, he came to work to find his calendar empty, having been taken out of all his meetings.
That, in turn, can create a dynamic where the leader is glorified to the point of excess. And that, in turn, has a psychological effect: if the leader already had a strong personality with egomaniacal elements, those qualities can be exaggerated. And with that comes risk. And then, Dawson says, small group dynamics can begin to take over. Employees compete to curry favor with the leader, and proximity grows important. In these contexts, even when the leader does erratic things, you defend it. And in the case of the unitary executive — where literally or metaphorically, the leader controls all the voting shares — there can be a desire for excessive social cohesion.
. They also have psychological needs to be filled. And consciously or not, visionary startup founders tend to be excellent at doing so.
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