Hack/Slash Book Club — The Cult of We: WeWork, Adam Neumann, and the Great Startup Delusion
In addition to being former colleagues and current business partners, we’re in a book club together. So we figured, let’s do our own business book club and share our thoughts with all of you.
The first book on our list: The Cult of We by Eliot Brown and Maureen Farrell. After reading this book, we’re wondering: How does WeWork still exist? Let’s dive in!
Kate: Did you find it surprising how WeWork could get away with pitching real estate as tech to normally savvy investors?
So many companies seem to market themselves as tech today. In WeWork’s defense, it seemed like they were selling the community. So sure, they’re offering more than real estate. But where is the tech?
Food service and hospitality companies like DoorDash, Uber, and Airbnb get away with calling themselves tech companies because they’re all app-based services.
But what tech does WeWork use? I still can’t figure out the technology element after reading two books and watching two documentaries about WeWork.
Aimee: I think you have it there on the selling culture and community. I think investors cued into the energy of seeing these active, energetic, and young communities at work (though this was often staged). I think there is also the FOMO aspect of it. Though many investors probably knew better, they didn’t want to miss out on the next big startup.
One big thing that I think was missing in the book was getting the answers from these investors as to why they bought into this facade. We are left to surmise, as I’m doing now, as to why they couldn’t see the obvious.
Kate: Why did so many people ignore the fact that WeWork was hemorrhaging funds?
It was interesting to learn that WeWork is really just an extreme example of something that happens all the time. Venture capitalists fund startups and want to see “rocketship” growth. But that type of rapid growth often costs a great deal of money. So as long as the revenue is up and to the right, investors seem to act completely blind to the overspending (as we saw with WeWork).
Aimee: Yes, and I think it is very similar to the first question — that there is this FOMO thing at work. That there is such potential to make huge profits over the long term that they ignore many of the red flags in the short term. People become enamored with previous startup success stories and these are also people who make a living on placing essentially high stakes bets.
Again, I wish there was a little more examination of people’s thought processes, but it did go into how the company was almost encouraged to wrack up spending.
Aimee: “We” vs. “me” — How did a company preaching community fall victim to a narcissist?
The book did a good job at outlining how narcissistic Adam was and I found this to be the most upsetting part. They put their trust in someone who was only out to enrich himself. Again, I think it is language and attitude. Adam was very approachable and charismatic. He made people feel that they were a part of something big and important. He was amazingly successful (and rich) and who doesn’t want to be a part of that — you get bedazzled by that wealth and success. Also, many of the people around him were connected by him through family, through previous school or military connection.
Kate: You know someone said to me the other day, “We is rarely about anyone but ‘me’.” (The someone was Will Allred from Lavender if you’re wondering.) And it gave me pause. At first glance, “we” is inclusive and communal, but it always includes “me”. And this is definitely the case for Adam Neumann. By expanding the number of people included in the “we” of WeWork, he was growing his influence and his power. It was still all about him.
Aimee: What role did alcohol play in encouraging the mass delusion of WeWork?
The book didn’t state whether the use of alcohol was intentional, but it was very interesting how big a part it played in so many aspects of WeWork.
How about tequila shots with potential investors before a WeWork tour? How about some more shots before we discuss the details of some major funding? Hey, let’s pass around some shots during a town hall to soften the blow of some major layoff.
Alcohol certainly seemed like a tool to manipulate people into being compliant. It is also hard to notice problems when you and everyone around you is drunk and having a good time.
Kate: Yeah, the alcohol and weed both felt so fratty to me. It definitely seemed like a way to force a sense of community at best and a way to placate people at its worst.
Really has that mandatory fun feel, especially with the whole summer camp element.
And liquoring up investors felt like a high stakes version of the same tactics multilevel marketing schemes use. Usually it’s more like, “Enjoy this free sangria and then whip out your checkbook and buy some overpriced essential oils!” But in this case it’s, “Here’s some tequila! Now invest in my delusion!”
Kate: What’s the line between illusion and delusion? And between brand advocacy and cultishness?
Aimee: I think the line that divides brand and cult is the language used and expectations of how employees are to push the brand.
When you use language to describe a service or product in a way that is not actually true or realistic. Like how the hell does an office space “elevate the world’s consciousness”?
Sure, most marketers stretch the truth a bit, but there is that expectation that the employees BELIEVE this too. That they will work day and night to further the company’s agenda. They will stay up late to assemble furniture or fly halfway around the world for a business meeting that ends up not happening. Also forcing mandatory fun — the requirement that they attend company events like summer camp.
Kate: Oof, yeah. That “elevate the world’s consciousness” and “make the world a better place” stuff reminded me a lot of the show Silicon Valley.
Agreed that all brands use hyperbole to some extent, but the level of hubris in thinking that your co-working business is “elevating the world’s consciousness”? Yikes.
I think overall, the line between brand advocacy and being part of a cult is whether or not you have independent thought and whether or not you have personal choice. Groupthink is a sure sign that cult-like behavior is happening. And it’s not uncommon at startups, especially the ones trying to reach unicorn status.
Aimee: BTW speaking of cults…did you think that there were similarities with Adam and other famous cult leaders?
The name of the book is of course the biggest cue that Adam was not only trying to build a business to enrich himself, but that he was selecting and gathering people who would buy into his vision without much question.
Throughout the book I was constantly reminded of another cult leader: Keith Raniere of the NXIVM cult. Both used summer camp gatherings, new-agey sounding phrases such as “raising consciousness” and both had a talent for seducing wealthy people to buy into their line of bullshit. What do you think, Kate?
Kate: I guess I don’t know as much about cults as you, Aimee. I’ll have to start watching some documentaries.
But the way that people seemed to view Adam Neumann as a messiah was definitely reminiscent of other cult leaders. And he seemed to view himself that way too.
Aimee: Is there still the same worship of startups today?
Up until the pandemic started there was this mythos about the startup — at least from the employee side of things. People wanted to work at a “cool”, “hip”, “fun” place with ping pong tables and pirate ships and beer on tap. They wanted a culture of like-minded people they could call “family” with the potential to make a good salary and get rich on stock options.
I think the pandemic more than even all these stories about toxic founders has tarnished that mythos. Employees now want flexibility to work wherever they want and to be with their ACTUAL families. I don’t need a ping-pong table — I want to work from wherever I want. I mean, who has the mental energy anymore to put all that effort in evangelizing a *cough cult* I mean brand?
Kate: Ha! Yes, agreed, Aimee. The pandemic got people to reassess their values. Lots of people are opting to work from home permanently. People are setting firm boundaries and protecting their personal time more.
And people are catching onto the tricks that startups use to try to encourage people to put all their energy into their jobs. Soon there will be new tricks I’m sure, but the typical startup tropes are stale now.
While I know WeWork is still going strong as a company, I’m not sure the manipulation of the Adam Neumann regime would fly today.
Aimee: So Kate, how would you rate this book overall?
I myself enjoyed it quite a bit. It meticulously captured all the details of the company from inception to Adam’s downfall and it really highlighted Adam and Rebekah’s narcissism and greed.
If anyone has watched the Hulu documentary, “WeWork: The Making and Breaking of a $47 billion Unicorn”, this is a good companion. It fills in some areas that the documentary skimmed over.
I would give this a 4 out of 5 Bitcoin rating.
Kate: Definitely interesting, but certainly not enjoyable. I mean it’s a dark story. Kind of a slog.
Agree on the rating, Aimee. 4 out of 5 Bitcoins.
