Question: Read the article and write a one page response I'm reference to what you just read. With Trouble Comes Conflict, and with Conflict Comes Trouble
Read the article and write a one page response I'm reference to what you just read.


With Trouble Comes Conflict, and with Conflict Comes Trouble Facebook's meteoric growth and central role in revolu- tionizing social media has been overshadowed in recent years by its many controversies, such as the company's role related to influencing the presidential election in 2016, the improper harvesting and use of nearly 90 million user accounts by Cambridge Analyt- ica, and the widespread concerns by users and regula- tors that the company insufficiently protects its more than 2.2 billion users' data and privacy. These issues are significant, as they can and have cost the company users, advertising revenues, damage to its reputation, along with fines and restriction from regulators. Adding to the troubles, top level executives like Mark Zucker- berg and Sheryl Sandberg's conduct has been ques- tioned on ethical grounds for how they've responded. 108 service exploded in parts of the world where messaging services were either expensive or social networks like Facebook had not penetrated. Mr. Koum, in particular, valued secure communication due to his upbringing in the Soviet Union where everyone was monitored all of the time. The founders continued to develop Whats- App's end-to-end encryption after the Facebook acqui- sition, avoided advertising, and maintained offices separate from Facebook's campus. In fact, WhatsApp's offices do not even bear the company's name; how about that for dedication to privacy? As for Instagram, Systom and Krieger also pre- served considerable autonomy over the app and grew advertising revenues to $6 billion in 2018. The app is growing and is particularly popular with younger peo- ple. Despite the controversies consuming Facebook and Zuckerberg, the founders' relationship with Zuck- erberg seemed harmonious and was often touted by Zuckerberg and others as a model for how to acquire and work with small tech companies. PRECIOUS JEWELS, NOW COSTLY CONFLICT However, the issues that grab fewer headlines but per- haps signal other significant troubles are the depar- tures of key executives of companies Facebook has acquired, notably Instagram and WhatsApp. Facebook bought Instagram in 2012 for $1 billion, when it had only a few employees and about 30 million users. It now has 1 billion users and an estimated value of $100 billion if it were independent. WhatsApp was purchased in 2014 for $19 billion at a time when it had approxi- mately 50 employees and about 450 million users. Just two years later the number was over 1 billion users. These acquisitions have been central to Facebook's strategy and growth, but the founders of these two companies (Jan Koum and Brian Acton of WhatsApp, and Kevin Systom and Mike Krieger of Instagram) have all left in the period of a few months, signaling conflict and trouble at the social networking icon. 109 ZUCKERBERG ASSERTS CONTROL Facebook, fairly or not, is equated with its founder, Mr. Zuckerberg, who maintains control and largely deter- mines the direction and structure of the company he founded. And therein lies the source of many of the conflicts. Zuckerberg envisions integrating Facebook's apps (Messenger, WhatsApp, and Instagram) which will require the sharing of user data between the products in ways not done previously. Part of this effort has included reorganizing senior management and install- ing Adam Mosseri as VP of product design at Insta- gram, a role previously filled by the founders. But it didn't stop there. Zuckerberg also inserted Chris Cox, Facebook's chief product officer, between him and Systom and Krieger, which many internal to Instagram viewed as a move to put a trusted "Facebook first" per- son in place to control the direction and guard against the departure of the founders. HARMONIOUS AUTONOMY The founders of both Instagram and WhatsApp stayed in place for several years after their companies were acquired, which is not the norm given many cash out and leave. They however were allowed to run their companies much as they had, maintaining autonomy and the ability to creatively realize their visions for the companies they created. For WhatsApp founders, Koum and Acton, their passion was the privacy of communication. WhatsApp's encrypted messaging CONFLICTS GROW AND FOUNDERS EXIT Instagram's founders increasingly disagreed with Zuckerberg and other Facebook executives during meetings, and although historically quite cordial, the disagreements became more severe and spilled over onto internal message boards. As for WhatsApp, Zuck- erberg is determined for the app to start using adver- tising and making money, which requires sharing user data between the apps. Koum had taken issue with how data was used by social media companies, espe- cially by Facebook, and abruptly resigned. As one reporter put it: "Instead of changing his values, Mr. Koum is leaving Facebook."110 His departure was fur- ther complicated due to his seat on Facebook's board of directors (he resigned) In the period of only a few months all of the found- ers of these crown jewel acquisitions had left. Although some of the motives were unique to individual execu- tives, they appeared to share a growing dissatisfaction with Zuckerberg and the direction of the company. Power and decision making were shifting away to oth- ers and becoming more centralized. It is likely the departing executives felt their objections would not prevail and resistance would be futile. THE PROBLEM IS BIGGER AND THE CONFLICTS MORE NUMEROUS The problem is not just confined to WhatsApp and Ins- tagram. Justin Rosenstein (creator of the "like" button), Chamath Palihapitiya (head of user growth), and Sandy Parakilas (platform operations manager) have all left. They, too, have taken issue with protection of data and privacy, the use of the platforms to manipulate thought and behavior, as well as the lack of personal account- ability by executives. Their issues reflect a growing concern across the industry about increased growth and connectivity, but at what cost. Zuckerberg and other social media executives are being pressed to justify if not alter their own values, or at least the prac- tices of their companies, related to data protection, usage, and privacy.111 Some view the conflicts and departures of key executives as pushback against Zuckerberg's mission for Facebook, to make the world more open and con- nected." Increasingly, as described in this case, impor- tant players both inside and outside the company are taking issue with the means for reaching this end. Zuckerberg, as the founder and face of the company, is now forced to confront challenges and genuine con- flict on many fronts, and how effectively he does this will determine the direction, path, and outcomes for years to come. Assume you are Mark Zuckerberg, and you can go back in time before the departures of these key execu- tives. Apply the knowledge and tools in this chapter and the 3-Step Problem Solving Approach to deter- mine how you would deal with the conflicts described above