Company Valuation vs. Leadership Values: The Better.com Experience
| Case Code: LDEN191
Case Length: 10 Pages
Pub Date: 2023
Teaching Note: Available
| Price: Rs.300
Organization : Better.com
Industry :Real Estate
Countries : United States
Themes: Leadership & Values, Leadership Style, Corporate Governance,Ethical Leadership
Abstract Case Intro 1 Case Intro 2 Excerpts
The case ‘Company Valuation vs. Leadership Values: The Better.com Experience’ describes the leadership approach of Vishal Garg (Garg), founder and CEO of Better.com (Better). The case touches upon the early ventures of Garg and his penchant for making money since his college days. However, there were many allegations and lawsuits filed by investors and his business partner.
The case focuses on Garg’s nonchalant approach toward employees and his aggressive emphasis on performance and productivity that created a harsh environment for employees. He had fired employees over a Zoom call and did not attempt to take an empathetic approach to the lay-off communication.
The case then highlights Garg’s temperamental leadership style and approach to layoffs that led to various repercussions including attrition among many senior level employees and two board members. The board, however, continued to support Garg and stated that he was critical to its operations and was key to setting its vision, strategic direction and execution priorities.
The question was can Garg rebuild employee trust and confidence in his leadership after having ignored them in his quest for valuation and going public? Will the board continue to support him and retain him as CEO and risk diluting the image of the company and the trust of stakeholders in the long run?
The case is structured to achieve the following teaching objectives:
- Recognize the need for the founder to ensure that the quest for rapid company growth does not dilute the culture of trust and confidence of employees.
- Explain the importance of effective communication in managing layoffs.
- Evaluate the role of investors and the board towards employees and company values.
Garg and Better.com
History of Allegations
Garg’s Leadership at Better
Leadership Style; Leadership Behavior; Corporate Governance; Role of the Board; Leader-Member Exchange theory; Ethical Leadership; Employee Morale
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