Maybe it’s the recession rumors.Opens a new window  Maybe it’s something else. But recent hyped Initial Public Offerings (IPOs) in the tech world have seemed to lumber instead toward lackluster numbers.
The latest victim of overly optimistic projections repeatedly adjusted downward? WeWork, the co-working spaces provider company.
As with Uber, WeWork seems to have fallen victim to outsized expectations marred by concern over corporate governance. Earlier this year, the company was valued at $47 billionOpens a new window . But that figure consistently has dropped, with the latest estimate closer to $10 billion.
Finally, the company announced it will postpone its IPO, although it still says its shares will go on the market before the end of the year.
Part of the concern seems to stem from chief executive Adam Neumann’s role in the company, as well as reportsOpens a new window that he bought buildings in order to lease them back to WeWork for a profit, scoring millions for himself.
It’s a common problemOpens a new window at many of the leading tech companies, which struggle to form a corporate identity separate from a larger-than-life founder.
At the same time, companies need to maintain internal morale, even when the external valuations rides a rollercoaster. It’s a question of general attitude and faith in the company, but also of the ability to keep focused on the work. Both will determine the eventual success of the organization, IPO or not.
Keep up company messaging
I’ve written extensively about the need for honesty and transparency with employees, and that remains true in situations where external expectations appear to be mired in pessimism.
The first move is to retain employee trust. How best to do that? Keep an honest and frank tone.
At the same time, communicate with your employees about what’s going on — silence is the greatest threat to company morale.
What does the executive leadership think about the shift in perception? What’s the plan for moving forward? Craft a message and keep up a conversation
Energy is the antidote to despair, and a sound and confident message is the key to catalyzing energy.
Put on the blinders
Part of the message, once you’ve transmitted the plan and how executive leadership is handling it, is to tell employees that they don’t have to worry about what’s going on. But not by implying there’s nothing to worry about. That would be the kind of patronizing message that can alienate staff (unless there’s truly nothing to worry about, which is unlikely when valuation drops by more than 75% and the decision is made to postpone an IPO).
Rather, tell employees they needn’t worry because there is a team totally devoted to doing the worrying — and taking the anxiety off their hands. It’s fine to be clear that the best route to success is to leave the worrying to the experts so that staff can get back to the actual work at hand.
Don’t delay bold projects or put new innovations on the back-burner. The world may not be sure of where the company stands, but if the employees know, then the world eventually will come around, too.