EBay continues to expand worldwide. In about 15 percent of current transactions, the buyer
and seller are in different countries. With this ratio steadily increasing, eBay has a tremendous
power to connect the Third World with the industrialized world. Omidyar says that the most
significant lesson demonstrated by eBay is “the remarkable fact that millions of people have
learned that they can trust a complete stranger. That’s had an incredible social impact. People have
more in common than they think.” To be effective in the ever-changing environment of business,
you will need to have an understanding of human behavior and its influences on organizational and
group communication.
Since Meg Whitman joined eBay as CEO in 1998, revenues have exploded, and eBay has
become a household word throughout much of the world. Meg Whitman had never even heard of
eBay when she agreed to interview. She hoped her headhunter would call back with something
more promising. Little did she know that the firm she had never heard of would become one of
history’s fastest growing companies with her at its helm.
Under her democratic leadership, the collective intelligence and enthusiasm of 160 million
customers determine and drive the daily actions of the company’s 9,300 employees. “At eBay, it’s a
collaborative network. You are truly in partnership with the community of users. The key is
connecting employees and customers in two-way communication. We call it “The Power of Us.”
A key belief underlying Whitman’s leadership is that people are basically good and can be
trusted. A second of her guiding principles for management is to never assume you know more than
the marketplace or community, because you don’t. To learn more about the growing community of
Chinese Internet users, Whitman has made several trips to China, listening and trying to understand
how the country actually works.
It’s debatable as to whether great leaders are born or bred, and in Whitman’s case the
mystery continues. Following completion of an MBA at Harvard, Whitman began her career in
brand management at Procter & Gamble, where she learned to always put the customer first.
Through holding positions with several other firms before joining eBay, including Bain, Disney,
StrideRite, and Hasbro, Whitman learned how to get things done in places where she was not well
known or well established. This required listening, learning, collaboration, and building business
relationships. She credits Disney’s late president and chief operating officer, Frank Wells, with
teaching her the importance of executive humility.
Although nurturing, no one mistakes Whitman’s sensitivity for weakness. In fact, she is a
strong believer in maintaining boundaries. An example is her decision to ban the sale of weapons on
eBay. According to Tom Tierney, eBay director, “Meg is a hybrid, and that’s the model for the
future, a decisive general manager with an open-minded influencer.” In 2004, The Wall Street
Journal and CNBC recognized Meg Whitman’s unusual talent by naming her as the business leader
of the future; and in the same year, Fortune named her the most powerful woman in American
business. Whitman sums up her leadership philosophy simply: “Executive leadership is a span of
influence, not of control.”
Sources: Johnson, K. S. (2005, October 21). eBay exec at Tech Week for e-commerce pep talk. The Denver Post, p. C-03;
Meyers, W. (2005, October 31). Keeping a gentle grip on power. U.S. News & World Report, 139(16), 78; Shapiro, S.
(2005, September 4). If everything is for sale, what does it say about us? Internet auction site eBay is both sacred and
profane—and distinctly American. The Baltimore Sun, p. 7F; Maney, K. (2005, March 22). 10 years ago, eBay changed
the world, sort of by accident. USA Today, p. 1B; Meyers, W. (2005, October 31).
Questions
1 Explain what Meg Whitman means by “The Power of Us.”
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