Elon Musk and Twitter: A case study on self-made crisis

While Elon Musk may joke about Twitter’s potential demise, many of the company’s crises are being caused by its new owner

Mass firings and resignations, the loss of millions in advertising revenues, and arguments between employees and the new owner playing out in public; Elon Musk only bought Twitter less than a month ago, but both have been living in a constant state of crisis since then.

From the beginning the signs were not good. Elon Musk disbanded Tesla’s communications function in 2020. And yet, despite the need to clearly spell out his vision to the workforce, the new CEO canned Twitter’s communications function shortly after taking over.

What was left was a vacuum of information. Employees were left waiting to listen to Elon Musk (introductory town halls were both arranged and cancelled at short notice), and had to turn to Twitter or the media to know what was the vision of their new CEO and learn about what actions he was taking.

Rather than listening to his employees, Musk would often make grand statements on what was or wasn’t working at Twitter via his own Twitter account. Rather than taking in feedback from Twitter’s engineers who would try to correct him, Elon fired those who disagreed with him (both in public and on the company’s internal communication channels).

Elon Musk clearly believes that he can transform Twitter’s famously open culture to one that resembles Tesla or SpaceX. His Twitter employees clearly disagree. For those that remained after the first couple of firing rounds, the last straw seems to have been his Twitter 2.0 message, in which he told the remaining employees they had to work harder and longer hours.

The message has spurred mass resignations, including of key functions such as payroll and product safety. Media reports claim that Twitter’s remaining management are desperate to keep those engineers who are vital to maintaining the site at the company.

In many ways, the damage to morale is arguably irreversible. To quote one Twitter employee who spoke to the BBC, “I didn’t want to work for someone who threatened us over email multiple times about only ‘exceptional tweeps should work here’ when I was already working 60-70 hours weekly.”

For Musk, the question remains. Will he change how he manages Twitter and its people, before the platform collapses? Or will we continue to watch this crisis play out in real time, on the site?

What we have seen over the past couple of weeks is a clash of cultures (and communication styles). Twitter’s employees are passionate about what they do, they are committed to the platform, and they’ve always been open about their views. Take away the company culture, and you have little left. The company’s headcount is down from over seven thousand to about two thousand. We may be reaching a point where there’s not enough people to maintain the platform. And none of this was inevitable (well, at least not in the space of a month).

Whether Musk can turn this around is still up for debate. But the past couple of weeks will become a case study in self-inflicted crises. Elon Musk couldn’t or wouldn’t listen to staff, he didn’t communicate internally, he limited much of his interactions to a small group of people, and he wasn’t able to understand Twitter’s culture. His decisions and communication style grated with employees, meaning he effectively lost their support from the get-go. And the less said about his product decisions, the better. My thoughts are very much with the employees who kept Twitter going. They deserved better than this.

Silicon Valley, Values-Based Communication & Reaction to the ‘Muslim Visa Ban’

trumpban

The executive order temporarily banning people from seven Muslim-majority countries in the Middle East from entering the US has sparked fierce debate among both the public as well as tech-focused corporations in America

Another day, another controversy in Washington D.C. This time, it’s about the Presidential executive order halting all refugee admissions and barring temporarily people from seven Muslim-majority countries. I’ve written about how corporations will either follow one of two strategies when dealing with the President – they’ll support his America first agenda (mainly by recycling old news), or they’ll stick to their values and come out against policy shifts such as this one.

Over the weekend, we’ve seen evidence of the latter. A swathe of tech firms, primarily from California’s Silicon Valley, have come out against this policy, which has been described as a ban on Muslims, which they view as both un-American and harmful to attracting talent. Here’s a snapshot of views as reported by the ‘fake news’ website Buzzfeed and Bloomberg:

Google’s CEO Sundar Pichai

“It’s painful to see the personal cost of this executive order on our colleagues,” Google Chief Executive Officer Sundar Pichai  wrote in the memo, a copy of which was obtained by Bloomberg News. “We’ve always made our view on immigration issues known publicly and will continue to do so.”

Apple’s CEO Tim Cook

In my conversations with officials here in Washington this week, I’ve made it clear that Apple believes deeply in the importance of immigration — both to our company and to our nation’s future. Apple would not exist without immigration, let alone thrive and innovate the way we do.

I’ve heard from many of you who are deeply concerned about the executive order issued yesterday restricting immigration from seven Muslim-majority countries. I share your concerns. It is not a policy we support.

Microsoft’s CEO Satya Nadella

“As an immigrant and as a CEO, I’ve both experienced and seen the positive impact that immigration has on our company, for the country, and for the world. We will continue to advocate on this important topic.”

Facebook’s Founder and CEO Mark Zuckerberg

Tesla’s CEO Elon Musk

Other Silicon Valley CEOs have also stepped in to support those who will be affected by this decision. In a post on Facebook Uber’s CEO Travis Kalanick wrote that the company is working out how it can financially support Uber drivers who aren’t able to travel back to the US due to the visa ban.

Airbnb’s Brian Chesky wrote on his own Facebook page that his firm would be supporting those impacted by this ruling with free housing.

The list of tech CEOs who are standing up goes on and on, and I don’t want to repeat too much here from what is an excellent article on Buzzfeed. The US tech sector, an industry that owes much to the talent of immigrants and which leads the world when it comes to innovation and product usage, has essentially spoken with one voice against the Presidential executive order halting all refugee admissions and barring temporarily people from seven Muslim-majority countries.

In contrast, older industries such as the automotive and manufacturing sectors (what could be dubbed the ‘older’ corporate sector) have not shared their views. In what is becoming a battle for hearts and minds across America, this public show of values-based beliefs will not be the last by an industry wary of what the Trump administration means for its future. I’ll leave you with another quote, this time from a wonderful article in The Atlantic on how this will be the first of many disputes between the Trump administration and Silicon Valley.

The barriers between Trump and the technology world span both values—the industry emphatically leans left on social issues—and interests. Trump’s hostility to immigration, opposition to free trade, and resistance to replacing fossil fuels with renewable sources to combat climate change all clash directly with the constellation of technology industries that rely on importing talent from around the world, sell their products across the globe, and have invested heavily in developing clean-energy alternatives to oil, gas, and coal. Tech leaders are also bracing for Trump to attempt to unravel the net-neutrality rules that Obama’s Federal Communications Commission adopted, and to push against the privacy standards many industry leaders have sought to maintain.

Whilst we won’t know who is winning over the majority of America’s public, it’s good to see organizations in the tech sector standing up for values which they believe in. I hope other organizations and corporations will remain true to the values that they talk about as well.