Business

Uber's new CEO says he's ditching a practice that turned employees into 'a--holes'

dara khosrowshahi
Uber CEO Dara Khosrowshahi YouTube/Cornell School of Hotel Administration
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  • Uber's CEO just published a list of new corporate values that employees helped draft in the two months since he took over as CEO.
  • He also mentioned an example of one policy that had to go: Something called "toe stepping" which seemed to encourage employees to behave badly, although Khosrowshahi used a more colorful term to describe that behavior.

 

It's been two months since Dara Khosrowshahi began his reign as Uber's new CEO, and he says after meeting with employees all over the world, he's now got a handle on the corporate culture. The good, the bad and the ugly.

"It’s also clear that the culture and approach that got Uber where it is today is not what will get us to the next level. As we move from an era of growth at all costs to one of responsible growth, our culture needs to evolve," he wrote in a LinkedIn post on Tuesday.

Uber asked employees to tell company management what the new norms of corporate culture should be. They did this because Khosrowshahi believes a culture dictated by management never really works.

That's not entirely true, of course. A corporate culture isn't invented from the bottom up. Employees do and pursue what they are measured and rewarded for doing and pursuing. If management doesn't change its formal measurement and reward systems and it doesn't change the kinds of things managers notice, praise, and informally reward (from shout-outs to bonuses and promotions), then employees won't change their behavior. That's true no matter what mottoes are written in giant letters on the cafeteria wall.

That said, Khosrowshahi said he found some obvious bits of the culture that need to be immediately stamped out, including something called "toe-stepping."

"'Toe-stepping' was meant to encourage employees to share their ideas regardless of their seniority or position in the company, but too often it was used [as] an excuse for being an a--hole," Khosrowshahi wrote.

To create the new corporate culture, some 1,200 employees sent in submission suggestions that were voted on more than 22,000 times, he wrote. Uber followed that up with 20 focus groups.

The final list of Uber's new norms, shared by Khosrowshahi on LinkedIn, is a pretty standard one that every company says it subscribes to. It includes things like being "customer obsessed," and "celebrating differences" and "we do the right thing. Period." That is, no company says its values are the reverse as in "we don't care about customers" or "we punish differences" (which would be illegal in some cases) or "we tend to do the wrong thing. Oh well."

To his credit, Khosrowshahi is trying to walk the talk by publishing such progress reports on Uber's changing culture publicly. He knows he needs to talk publicly about how he's cleaning up Uber after all the scandals that dominated the company's reputation throughout 2017. He's far from done in dealing with the repercussions of those scandals, including being kicked out of London, multiple federal investigations, the lawsuit with Waymo, and so on.

But even in his first couple of months, Uber's reputation seems to be improving. For instance, Uber was just named the No. 1 startup for job seekers by LinkedIn. And it looks like the #deleteuber campaign that hurt the company so badly at the start of the year has abated, too, Recode reports. 

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.