eBay BACKGROUND

Organization
Background of the Company

Organization

Employees
Employee Tasks
 Tech





Project Management
Quality Assurance
Software Engineers
Architecture
User Experience
 Legal,
Marketing, Sales, HR, Finance,
Product Management….
Margaret (Meg) WHITMAN
President & CEO

Background
Prior To eBay

Hasbro Inc’s Preschool Division


Florist Transworld Delivery


SR. VP Marketing
Bain & Company


President of Stride Rite Division
Walt Disney Company


President & CEO
Stride Rite Corporation


General Manager
VP
Procter & Gamble

VP Brand Management
Accomplishments
 The
Wall Street Journal
 Time
 Fortune
 Business Week
Margaret (Meg) WHITMAN
President & CEO

Traits
Traits
 Strong
communicator
 Promote a vision
 Make others feel important
 Admits mistakes
 Criticize others only in private
 Stay close to the action and is involve
 Celebrate success
 Make trust a priority
Traits Continue
 Her
Smile
Margaret (Meg) WHITMAN
President & CEO

Skills
Skills






Steering and influencing relationships to
generate financial return
Conversing not commanding
Asking questions as oppose providing answers
Building continual consensus and earning trust
through transparency
Experimenting and failing
Make sure board of director are full participants
Skills (Continued)







Collaborative network
Connecting employees and customers in twoway communication
She realizes she can’t control eBay’s community
Trust community
Don’t assume you know more than the
marketplace
Demonstrate leadership through learning by
listening and understanding
Strong believer in maintaining boundaries
Quiz
(Pass / Fail)
Quiz
 What
happens when you try to steal an
eBay customer?
Quiz
 What
happens when you steal an EBay
customer?
 Hint:
Quiz
 What
happens when you steal an EBay
customer?
 Hint:
If you try to take a little bite,
away from eBay…
Quiz
 What
happens when you steal an EBay
customer?
 Hint:
If you try to take a little bite
away from eBay…
 You
might get a big bite back from the big
bad dog, in the form of a…
A Meg-A-Bite
-- What?
Leadership Behaviors
Observed
In Meg Whitman
Research Sources

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
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



Numerous Internet Sites
Wall Street Journal
Time Magazine
Forbes
News Week
Business Week
Fortune Magazine
U.S. News & World Report
Some Trade Journals
But, Absolutely No Scholarly Journals
Observed
Behavior Patterns
Behavior Pattern
 Participative
Behavior Pattern
 Participative
(Dominant Behavior Pattern)
Behavior Patterns
 Participative
 Charismatic
(Dominant Behavior Pattern)
Behavior Patterns
 Participative
(Original & Dominant
Behavior Pattern)
 Charismatic
(At Different Times)
Behavior Patterns
 Participative
(Original & Dominant
Behavior Pattern)
 Charismatic
 Boundary
(At Different Times)
Spanning
Behavior Patterns
 Participative
(Original & Dominant
Behavior Pattern)
 Charismatic
 Boundary
(At Different Times)
Spanning (Some Newer Trends)
Participative Leadership
(The model from a textbook)
1.
Draws out and listens to followers
Actual Behavior Observed
She actively seeks to gather meaningful
input from others:
Actual Behavior Observed
She actively seeks to gather meaningful
input from others:
Customers
Actual Behavior Observed
She actively seeks to gather meaningful
input from others:
Customers
Employee
Participative Leadership
(A model from a textbook)
2. Holding meetings to share decisions,
problems and to gather input.
Actual Behavior Observed
She hosts a group of 20 “best” customers,
monthly, to visit the headquarters in San
Jose, California.
Actual Behavior Observed
She hosts a group of 20 “best” customers,
monthly, to visit the headquarters in San Jose,
California.

Other Employees Listen to what customers want.

Meg listens to employee input AND customers
Participative Leadership
(The model from a textbook)
3. Giving serious consideration to followers’
input
Actual Behavior Observed
 She
will make changes based upon the
input she gets from meetings…
Participative Leadership
(The model from a textbook)
4. Reaching consensus with followers and
other leaders as equals.
Actual Behaviors Observed
 Carolina
 She
.
mentioned this in her “Traits”
is transparent and approachable.
Actual Behaviors Observed
 Carolina
 She
mentioned this in her “Traits”
is transparent and approachable,
 Prefers to collaborate,
Actual Behaviors Observed
 Carolina
 She
mentioned this in her “Traits”
is transparent and approachable,
 Prefers to collaborate,
 Not condescending.
Actual Behaviors Observed
 Carolina
 She
mentioned this in her “Traits”
is transparent and approachable,
 Prefers to Collaborate
 Not condescending,
 Treats her followers as equals.
Participative Leadership
5. Delegating decisions to capable followers
Actual Behavior Observed
 We
found that she trusts her people, and
they love her for it.
Charismatic Leadership
(Most but not all behaviors)
Charismatic Leadership
1.
Advocates moral mission and vision
Charismatic Leadership
1.
2.
Advocates moral mission and vision
Uses inspirational rhetoric
Charismatic Leadership
1.
2.
3.
Advocates moral mission and vision
Uses inspirational rhetoric
Build’s own image in followers’ eyes
Charismatic Leadership
1.
2.
3.
4.
Advocates moral mission and vision
Uses inspirational rhetoric
Build’s own image in followers’ eyes
Role model behaviors for followers with
high expectations and confidence
Charismatic Leadership
1.
2.
3.
4.
5.
Advocates moral mission and vision
Uses inspirational rhetoric
Build’s own image in followers’ eyes
Role model behaviors for followers with
high expectations and confidence
Takes risks to achieve mission
Charismatic Leadership
1.
2.
3.
4.
5.
6.
Advocates moral mission and vision
Uses inspirational rhetoric
Build’s own image in followers’ eyes
Role model behaviors for followers with
high expectations and confidence
Takes risks to achieve mission
Uses frame alignment to guide follower
behaviors
Actual Behaviors Observed
 Employees
are clearly influenced and
affected in a very positive way.
Actual Behaviors Observed
 Employees
are clearly influenced and
affected in a very positive way.
 Frequent Motivational Rallies
Actual Behaviors Observed
 Employees
are clearly influenced and
affected in a very positive way.
 Frequent Motivational Rallies
 Dynamic and inspirational public-speaking
abilities to motivate and encourage
employee.
Actual Behaviors Observed
 Employees
are clearly influenced and
affected in a very positive way.
 Frequent Motivational Rallies
 Dynamic and inspirational public-speaking
abilities to motivate and encourage
employee.
 Paints a big picture vision for her
employees and customers
Actual Behaviors Observed
 Employees
are clearly influenced and
affected in a very positive way. Frequent
Motivational Rallies
 Dynamic and inspirational public-speaking
abilities to motivate and encourage
employee.
 Paints a big picture vision for her
employees and customers
Boundary Spanning
Leadership
(Only Some of the
Behavior Patterns)
Boundary Spanning Leadership
(Textbook Model)
1.
2.
3.
4.
5.
6.
Define and manipulate unit boundaries
Resolve stalemates and conflicts
Sensitize unit members to environmental
issues
Obtain, filter, store, and disseminate
information
Develop and maintain networks
Negotiate for resources and distribution
of output
Boundary Spanning
 Behavior:
 Contact
with a vast network of domestic
and international human relationships
Neutralizers
Enhancers
Replacements
+
Neutralizers
 Defined:
 In
general, a neutralizer is a situational
factor that decreases a leader’s
effectiveness or influence on followers..
Neutralizers
 Meg
has had to deal with several -
Neutralizers
has had to deal with several –
 For example,
 Meg
Neutralizers
has had to deal with several –
 For example,
 Meg
 The
presence of fraudulent activities,
mainly on the part of sellers.
Neutralizers
Meg has had to deal with several –
 For example,


The presence of fraudulent activities, mainly on
the part of sellers.

Because “Trust” is so vital in this type of
business, the lack of trust can bring eBay to it’s
knees, and can neutralize Meg’s effectiveness.
Leadership
Enhancers
Enhancers
Defined:
In general, an enhancer is a situational
factor or a follower characteristic that
increases leadership effectiveness, or
influence on followers.
Enhancers
Centralized Location of Main Operations
Enhancer:
“Centralized Operations”
Allows Meg and her team of managers to
have continuous personal interaction.
Enhancer:
“Centralized Operations”
Allows Meg and her team of managers to
have continuous personal interaction.
Closes the gap of spatial distance between
leader and followers (employees).
Enhancers
Centralized Location of Main Operations
Cohesive Work Groups
Enhancer:
“Cohesive Work Teams”
Clear job descriptions
There is little like ambiguity in the
organization.
Enhancers
Centralized Location of Main Operations
Cohesive Work groups
Customer Recognition Programs
Enhancers
“Customer Recognition Program”
PayPal Point (For Customers) is a major
driver of recognition of “best” customers.
Employees in turn, drive the company
priorities based upon this company-wide
reward system.
Enhancers
“Non-Union”
This may be more of the lack of a
neutralizer.
Leadership
Replacements
Replacements
 Defined:
 In
general, a leadership replacement is a
group of factors or follower characteristics,
providing additional benefits to a leader, by
substituting for specific behaviors, work
tasks, and other missing leader behaviors.
The Operation of a
Free Market
A Situational Factor
That is an Example
Of A Leadership behavior
Replacements
A “Free” Global Market
 The
market itself is self lead (aka
autonomous)
Replacements
A “Free” Global Market
 The
market itself is self lead (aka
autonomous)
 The
market is going to operate by itself
whether there is a leader or not..
Replacements
A “Free” Global Market
 The
market itself is self lead (aka
autonomous)
 The
market is going to operate by itself
whether there is a leader or not..
 The
eBay structure facilitates Buyers and
Sellers to come together, and can be then
given leadership.
Replacements
A “Free” Global Market

The market itself is self lead (aka autonomous)

The market is going to operate by itself whether
there is a leader or not..

The eBay structure facilitates Buyers and Sellers
to come together, and can be then given
leadership.

Leader makes what is already good, better.
Ways To Improve
Effectiveness
Hard to Find Dirt
On Someone So Clean
 She
does not need to change her
leadership behavior's).
 The only thing that she might want to
improve is her boundary spanning
Rather
Change Her Strategies
 Her
Focus and Company objectives
 Long
Range Goals
Her Global Focus
May Be too
Big of a Focus
Other Ways She Can Improve
 Short
term profitability vs. long term
customer satisfaction
 Focusing on becoming the best globally
 Competition among other auction sites


Loss of customers to competition
Customer satisfaction has declined
Analysis
Why is she effective?
Reasons for Effective Leadership
 Identification:
closely related to followers’
personal identification with the leader.
Reasons for Effective Leadership
 Identification:
closely related to followers’
personal identification with the leader.
 Social Identification: closely related to
followers’ personal identification with the
leader.
Reasons for Effective Leadership
 Identification:
closely related to followers’
personal identification with the leader.
 Social Identification: closely related to
followers’ personal identification with the
leader.
 Internalization: Followers adapt to leader’s
ideals and goals
Reasons for Effective Leadership

Identification: closely related to followers’ personal
identification with the leader.




Social Identification: It means that followers define
themselves in a group or organization.



Communicates to her followers
Values her followers opinions and suggestions
Actively listens to her employees
Airport situation
Office cubicle with an open door policy
Internalization: Followers adapt to leader’s ideals and
goals

Fraud protection and password retrieval on the website.
Leadership Attitudes
 Meg
Whiteman says she can’t control
eBay’s community of buyers and sellers,
because they don’t report to her.
 They
don’t have to show up to work.
Leadership Attitudes
 Meg
Whiteman says she can’t control
eBay’s community of buyers and sellers,
because they don’t report to her they don’t
have to show up to work.
 People are basically “good” so trust them.
Was originally formulated by Pierre
Omidyar, the former software engineer
who founded eBay
Leadership Attitudes
Meg Whiteman says she can’t control eBay’s
community of buyers and sellers, because they
don’t report to her they don’t have to show up to
work.
 People are basically “good” so trust them. Was
originally formulated by Pierre Omidyar, the
former software engineer who founded eBay
 “Don’t assume you know more that the
marketplace, or community-- because you don’t”

PayPal Conference
Meg’s Charismatic Style of
arousing the sellers
How Effective Would She Be
In Other Organizations?
Her Success
 Education
Her Success
 Education
 Experience
Her Success
 Education
 Experience
 Employee
Support
Her Success
 Education
 Experience
 Employee
Support
 Customer
Support
Past Successes
 Procter
and Gamble
Past Successes
 Procter
and Gamble
 Bain & Co
Past Successes
 Procter
and Gamble
 Bain & Co
 Walt Disney
Past Successes
 Procter
and Gamble
 Bain & Co
 Walt Disney
 Stride Rite Shoes
Past Successes
 Procter
and Gamble
 Bain & Co
 Walt Disney
 Stride Rite Shoes
 Florists’ Transworld Delivery
Past Successes
 Procter
and Gamble
 Bain & Co
 Walt Disney
 Stride Rite Shoes
 Florists’ Transworld Delivery
 Hasbro
Past Successes
 Procter
and Gamble
 Bain & Co
 Walt Disney
 Stride Rite Shoes
 Florists’ Transworld Delivery
 Hasbro
 eBay
Where She Might Be Ineffective
 Lawyer
Where She Might Be Ineffective
 Lawyer

 Teacher
Where She Might Be Ineffective
 Lawyer

 Teacher

 Military
Summary
What have we learned from
Meg Whitman?
Meg-A-Byte
Or is it a
Meg-a-bite?
Summary
 Meg

Whitman:
Bosses by not bossing.
Summary
 Meg


Whitman:
Bosses by not bossing.
Manages by not managing.
Summary
 Meg


Whitman:
Bosses by not bossing.
Manages by not managing.
 Leads
by not leading.
Guidelines
======
___________
Guidelines
1. Be transparent with your people (be
real) and gain their trust.
Guidelines
 1.
Be transparent with your people (be
real) and gain their trust.
2. Be flexible and willing to change your
approach if the situation changes.
Guidelines
1. Be transparent with your people (be
real) and gain their trust.
2. Be flexible and willing to change your
approach if the situation changes.
3. Know your customer and know your
competition.
For Further Research
+
For Further Research
Go to this website:
http://www.stupidvideos.com/
video/song_dance/Ebay_2/