Andrew Mason, CEO of Groupon was fired yesterday. It’s not difficult to see why. The company’s share price has fallen by 77% since it went public on the NASDAQ in 2011. Not many CEOs can survive such a horror show.
What makes this story so different is the manner in which staff were informed.
Such high level ‘departures’ are normally accompanied by the usual nonsense about leaving ‘by mutual consent in order to pursue other opportunities’. Nobody ever buys the line and yet the PRs still trot it out with alarming regularity.
How refreshing then to see staff being informed by the man himself, clearly in his own words, with an honesty, humility and good humour that serves to make his thank-you to the ‘People of Groupon’ all the more powerful and irresistible.
Here is the text of his email in full. It is worth reading. I can’t remember ever reading such a brilliant piece of leadership communication.
People of Groupon,
After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding – I was fired today. If you’re wondering why … you haven’t been paying attention. From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that’s hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable.
You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. I’m getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy we’ve shared over the last few months, and I’ve never seen you working together more effectively as a global company – it’s time to give Groupon a relief valve from the public noise.
For those who are concerned about me, please don’t be – I love Groupon, and I’m terribly proud of what we’ve created. I’m OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through. I am so lucky to have had the opportunity to take the company this far with all of you. I’ll now take some time to decompress (FYI I’m looking for a good fat camp to lose my Groupon 40, if anyone has a suggestion), and then maybe I’ll figure out how to channel this experience into something productive.
If there’s one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on what’s best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness – don’t waste the opportunity!
I will miss you terribly.
(above text unashamedly stolen from The Guardian)
Before today I knew nothing about Andrew Mason. I now feel I know a lot more than about him and what makes him tick than I could ever have learned from reading 100 stories about him in the business press.
And it seems to me that Groupon’s problems are not the result of poor leadership. As an occasional Grouponite myself, the fundamental business model is the real problem.
After all, there’s only so many cut price spa treatments, manicure sets and restorative scalp gels a man can take.
Good luck Andrew, I have no doubt this is not the last we’ll be seeing of you.