Uber CEO Dara Khosrowshahi and Reid Hoffman Discuss Tough Decisions | Summary and Q&A

TL;DR

Uber CEO reflects on the challenges faced during the pandemic and shares insights on leadership and decision-making during difficult times.

Key Insights

• 🥺 The pandemic had a significant impact on Uber's Mobility business, leading to massive revenue losses.
• 🐎 Leaders should be decisive, top-down, and solve for speed during tough times.
• ⚖️ Balancing realism and optimism is essential in providing effective leadership during a crisis.
• 😤 Assessing the capabilities of the team and making tough personnel decisions may be necessary to navigate difficult times.
• 💯 Speed and decisiveness are often more valuable than indecisiveness, even if some decisions are not perfect.
• 😤 Leaders should lift up their team and provide motivation and support to maintain morale.
• 👋 Going against the grain during good times ensures that the team does not become complacent.

Transcript

the good times are when you've got to be the the good times are when everyone feels great about what they're doing that's when you've got to come down really hard on your team and it feels nonsensical doesn't make sense like they're doing great they're amazing our Mobility business which was our cash cow lost 85 percent of its volume overnight it's... Read More

Questions & Answers

Q: How did the pandemic impact Uber's Mobility business?

The Mobility business, which was Uber's main source of revenue, experienced an 85 percent drop in volume overnight. This resulted in significant financial losses for the company.

Q: How did the CEO lead during these tough times?

The CEO recognized the need to be decisive and solve for speed. While still considering input from the team, he took a more top-down approach and made tough decisions to navigate the crisis.

Q: Why is it important for leaders to go against the grain during good times?

During good times, when the team may lose discipline and become complacent, leaders need to ensure they maintain a high level of performance. It may feel counterintuitive, but it is necessary to keep the team focused and driven.

Q: How should leaders approach their team during tough times?

Leaders should assess their team's strengths and capabilities and create a supportive and motivating environment. It is crucial to balance realism with optimism and provide stability and guidance to boost morale.

Summary

In this video, the speaker discusses the importance of leadership during tough times and the need for decisive action. They reflect on their experience at Uber, particularly during the post-pandemic period when their Mobility business faced significant challenges. The speaker emphasizes the need for leaders to go against the grain and provide strong guidance to their teams, even when things are going well. They also stress the importance of being a cheerleader during tough times and lifting up the team's spirits. Looking back, the speaker acknowledges the need for faster decision-making and avoiding the temptation to delay tough calls.

Questions & Answers

Q: How did the speaker handle the challenging times at Uber?

The speaker recognized the need for decisive action and strong leadership during tough times. They held numerous Zoom meetings with their team, discussing the necessary steps and seeking input. However, they realized that during challenging periods, a more top-down approach was needed. The speaker took input from the team but ultimately started leading with a focus on solving problems quickly and making tough decisions.

Q: What lesson did the speaker learn from their CFO?

During the difficult times, the speaker's CFO expressed the need for the leader to provide clear direction and not constantly seek the team's opinions. This lesson was a turning point for the speaker, realizing that during tough times, a more focused and decisive leadership approach is necessary. They understood that their team needed strong guidance and that they had to assume that leadership role.

Q: How did the speaker approach leading the team during good times?

The speaker acknowledges that during good times when the team feels great and is doing well, it is crucial for the leader to come down hard on them and maintain discipline. Even though it may feel counterintuitive, the speaker stressed the importance of not becoming a cheerleader during such times. It is essential to keep the team grounded and focused on continuous improvement rather than being complacent.

Q: How did the speaker approach leading the team during tough times?

During tough times, the speaker emphasized the need to be a cheerleader and lift the spirits of the team. While the leader recognizes the reality of the situation and understands the challenges they are facing, it is important to project optimism, motivate the team, and instill a sense of belief that they can overcome the difficulties. The speaker acknowledges the duality of understanding the harsh reality while also pushing the team forward.

Q: What advice does the speaker have for leaders facing similar challenges?

Reflecting on their experience during the pandemic, the speaker advises leaders to move faster in decision-making and not delay tough calls. They highlight the need to resist the temptation to mollify difficult decisions, such as staff cuts, out of a desire to see what happens. The speaker stresses the importance of making tough calls promptly, maintaining a clear focus, and avoiding unnecessary delays.

Q: How did the speaker feel about the time it took to make necessary cuts at Uber?

The speaker acknowledges that it took them too long to make the necessary staff cuts at Uber. Although they believe they handled the situation effectively in the end, they admit to having many restless and sleepless nights due to the prolonged decision-making process. They emphasize the need to act more swiftly and not drag out tough decisions.

Takeaways

Leadership during challenging times requires a balance between decisive action and guidance. In difficult periods, leaders must assume the mantle of leadership, providing clear direction and making tough decisions. They need to resist the urge to be a cheerleader during good times and instead maintain discipline. Conversely, during tough times, leaders must lift up their team's spirits, projecting optimism while acknowledging the reality of the situation. It is important to move quickly in decision-making and not delay tough calls, even if they are difficult. The speaker reflects on the need for faster action and the danger of prolonging tough decisions unnecessarily.

Summary & Key Takeaways

• Uber's Mobility business, its cash cow, lost 85 percent of its volume overnight during the pandemic, leading to tough decisions and financial losses.

• The CEO emphasizes the need for leaders to be decisive, top-down, and solve for speed during difficult times.

• It is important for leaders to balance realism with optimism and provide support and motivation to lift up the team.