Better Place: An Entrepreneur's drive goes off

track
Case summary:

“Better Place”, this case study talks about the Fall of the company
because of the entrepreneurs unbalanced leadership style and Poor employee
engagement. It founded by Shai Agassi which had the goal of making a
revolution in the electric car industry. Shai Agassi is the CEO and Founder of
the Company. The company was producing EV cars with swappable batteries
for an eco-friendly environment. Shai, he had a charismatic leadership style so
they could attract investors in the earlier period.

Eventually, the company started to lose its track because of the CEO’s
mismanagement and lack of employee engagement. They failed to consider the
change management in their mind which led to the unsustainability in the
market. So the company fell into bankruptcy in 2013. The reason for the fall of
this company was the business model was complex and expensive. Lack of
flexibility in adapting the changing market conditions led to their failure.
Despite initial success, Better Place's financial issues, unsustainable business
model, and leadership challenges ultimately led to its downfall.

Companies involved:

1. Better Place
2. Top tier
3. SAP
4. Renault
5. Forbes
6. Fortune
7. Fast company

People Involved:

1. Shai Agassi -CEO and founder of better place

 2. Idan Ofer – Chairman of Board of Directors
3. Andrey Zarur – Senior Staff member and a partner
4. Carlos Ghosan – CEO of Renault-Nissan
5. Bill Clinton – US president
6. Evan Thornley – CEO after Shai Agassi
7. Dan Cohen – Former chief staff, CEO after Evan
8. Tal –Younger brother of Shai
9. Dafina – Sister of Agassi

Questions:

1. What are your impression as Shai Agassi as a leader?

Shai Agassi, charismatic leader who had a clear and ambitious vision for
the future of EV. His strong communication skills inspired many
investors for significant investments in the early stage. And his personal
magnetism helped him convince people to build partnerships. He was not
afraid of taking risks and pushing boundaries, which is necessary for
innovation. But his unwavering belief in his vision sometimes led to face
the challenges of his company. Also he had poor employee engagement
in his company. He didn’t consider his employees' well-being as a part
and parcel of his company. He had unbalanced leadership styles such as a
charismatic one, sometimes an autocratic one which was a dominating
leadership style.

2. When did Agassi had productive Narcissism?

In the early stages of launching around 2007, the Narcissist approach of

Shai gained significant support for his vision. Agassi's ability to inspire
and convince others was evident when garnering significant investments
and partnerships for ventures like Better Place. This initial traction
highlighted his ability to mobilize resources and enthusiasm. Agassi's
charisma and negotiation skills helped forge key partnerships with
governments, automakers, and energy companies, providing crucial
support for infrastructure development and vehicle availability. In
collaborating, Agassi fostered collaboration with diverse stakeholders,
 including scientists, engineers, and designers, leveraging their expertise
to bring his vision to life. This collaboration contributed to the
development of innovative solutions.

3. When did Agassi’s Narcissism turned out to be unproductive?

Overconfidence: Agassi's strong belief in his own vision could

sometimes lead to overlooking potential challenges and market
realities. This might have contributed to Better Place's unrealistic
financial projections and overexpansion, ultimately hindering its long-
term sustainability.
Dominating leadership: His strong personality and desire for
control could overshadow collaboration and open communication within
the company. This might have led to missed opportunities for feedback
and adaptation, crucial for navigating a dynamic industry like electric
vehicles.
Resistance to change: His focus on his original vision could make
him resistant to feedback and suggestions for adaptation. This
inflexibility might have hindered Better Place's ability to respond to
changing market conditions and competitor strategies.

4. Compare Better Place with Tesla?

Both Better Place and Tesla were pioneers in the electric vehicle (EV) industry,
but they took vastly different approaches:

Feature Better Place Tesla

Focus Battery Swapping Electric vehicle design

Infrastructure and manufacturing
Technology Battery Swapping in EV Fast charging
(superchargers) & Long-
term batteries
Business model Subsidies & partnership Direct sales & premium
pricing
Outcome Bankruptcy Market leader

Similarities:
 Both companies are early movers in EV industry.
  Shai Agassi (Better Place) and Elon Musk (Tesla) had ambitious vision
for their companies.
 Both faced challenges in technological hurdles, market resistance and
financial.

Comparing Better place and Tesla highlights the different paths of the
companies. Better Place faced unsustainability whereas Tesla’s focus led to its
success. Both companies are good examples for the future EV industry movers.
(For reference)*:
 Tesla offers competitive salaries, healthcare benefits to its
employees.
 They have long working hours but some of the employees feel
empowered of their job role.
 They have a balanced workplace.
Current condition of Better Place:
As of today, Better Place no longer exists as a functioning company.
They declared bankruptcy in 2013 due to financial difficulties and challenges
scaling their business model. While Better Place itself is no longer operational,
their impact on the EV industry continues to be felt, and their story offers
valuable insights for future innovators and entrepreneurs.