- Tram Ho
According to Bill George, a senior expert at Harvard University and former CEO of medical technology company Medtronic, Mark Zuckerberg’s shortcomings in the role of CEO Meta are causing the Wall Street giant to “disorder”. cake” from the ambition of growth, and at the same time getting closer to failure.
“ I don’t think Facebook will do well as long as Mark Zuckerberg is there. He could be one of the reasons so many people turn their backs on Meta. He really lost his way, ” George tells CNBC Make It.
It is known that George spent 20 years studying the failure of leaders, then compiled it into a book called “True North” – an edition dedicated to emerging leaders. He argues that once they lose their deepest leadership beliefs, values, and purpose, especially in the name of money, fame or power, sooner or later, they will fail. And after decades of studying the collapse of major corporations, Bill George recognized similarities in both Zuckerberg and Meta.
According to CNBC, the Meta CEO is largely responsible for the company’s massive growth, turning a company he co-founded in 2004 into a tech giant with a market cap worth more than 450 billion USD, up to the present time.
Mark Zuckerberg then helped create a modern social media industry, then continued to “expand” his ambitions by reorienting Facebook to the virtual universe metaverse. The name Meta was also born from there. Past success still leads many to bet on Meta, including Jim Cramer.
“ I have complete confidence in Mark Zuckerberg. I think Zuckerberg will be able to succeed with the metaverse ,” said Cramer, referring to the recovery of Meta stock after a long period of red flames, scandals and controversies. “ There are some people you yourself want to bet on. If we went back to 2018, in that summer of crisis, no one would have imagined that he would still be able to hold out and come back .”
Still, George has his own arguments. He believes that Meta will inevitably fail under Mark Zuckerberg for a number of reasons:
George’s book highlights 5 typical weak leadership styles, of which Mark Zuckerberg possesses up to 3 characteristics.
First, this is someone who likes to “rationalize” mistakes by blaming others, not willing to admit or learn from failure. Specifically, in February, Meta lost more than 232 billion in market capitalization, the worst single-day drop for any US stock in history. Zuckerberg and other executives at the time blamed Apple’s privacy-changing moves as well as the growing popularity of the short-video app TikTok.
It is true that these factors can play a role, but it does not rule out the possibility that Meta has poured too much capital into the metaverse. This business segment reported a loss of more than 10 billion USD in 2021 and 2.8 billion USD in the second quarter of 2022 alone. When publicly answering the press, Zuckerberg did not admit or claim responsibility, although before, during the shareholder meeting in May, this man also expressed disappointment that Meta may lose a lot of money. substantial sums over the next 3-5 years when investing in virtual universes.
To George, Zuckerberg was the lone leader, not accepting any help or advice. This is said to be one of the reasons why Meta continuously ” falls into the wrong direction “.
In a way, Zuckerberg has always given absolute confidence in his ambitions. It’s part of how he built Meta into a multibillion-dollar tech giant. However, the constant rejection of advice from trusted advisors has cost Zuckerberg dearly.
The story of Roger McNamee is a prime example. McNamee is a co-founder of private equity firm Elevation Partners and an early Facebook shareholder. In 2006, McNamee advised Zuckerberg to turn down Yahoo’s offer to buy Facebook for $1 billion. He also encouraged Zuckerberg to hire former COO Sheryl Sandberg, a woman who would later play an important role in building the company’s advertising business and internal operations.
Both times, Zuckerberg followed McNamee and succeeded.
However, as Meta began to grow, Zuckerberg no longer respected the opinion of this shareholder. This had major consequences, especially in 2016, when McNamee tried to warn the Facebook CEO about the consequences of Russian meddling in the US presidential election. The US intelligence agency then concluded that Facebook was one of the social networking platforms that had a great influence on the election results.
Finally, George thinks Zuckerberg is someone who puts fame and fortune above anything else. Such a person is never really satisfied with what he has, even willing to do the most extreme things to get more.
Zuckerberg prioritizes Meta’s profits and growth, even if it means sacrificing the privacy of billions of people. It is known that Facebook has long been entangled in many controversies surrounding user privacy and health. A Wall Street Journal investigation last year found that the Meta-owned Instagram platform was contributing to mental health problems for young users, especially teenage girls. Meta management then just chose to ignore it to avoid affecting growth. This decision shows that Zuckerberg prioritizes revenue over anything else.
” Mark has always been surrounded by people since he was 19 years old. They say he’s doing a great job. So, it’s not like we’re talking bad about Zuckerberg. ” , said Frances Haugen, a former Facebook employee.
Source : Genk