While the Internet sector has been trampled this past year, the same can't be said of eBay. The world's largest auction site, with 23 million users, eBay has proven itself the most robust Internet company in the nation. It handles 79 million transactions per quarter, lists more than 5 million items for sale, and is coming ever closer to its mission of "helping people trade practically anything on earth." While the strength, scalability, and profitability of its business model is one key to its success, another is the leadership of the company's president and CEO Meg Whitman. Whitman was recruited to eBay in March 1998 after a diverse career at blue-chip companies such as Hasbro, Walt Disney, and Bain & Company.

I recently interviewed Whitman to learn how the tragic events of Sept. 11 tested her leadership and to hear her wisdom at this difficult time for our nation and its economy. Whitman's insights and actions were so compelling, I wanted to share them with Talent Monger readers.

Business 2.0: Where were you as the events of Sept. 11 unfolded?

Meg Whitman: "I was in Tokyo. After all air service shut down, it was clear that I wouldn't be able to get back home. So I went on to Hong Kong and Beijing, where eBay has rapidly growing operations. I didn't get back to California until the end of the week.

How has the tragedy challenged your leadership?

Meg Whitman: "Not only was I away, but our chief operating officer Brian Swette was stuck in Florida. The way the company responded and went into gear without us tells me more about the leadership at eBay than anything I could have done at that moment. By the time I was able to call in, given the 14-hour time change, our team was already thinking about and acting on the big issues. I did not have to say anything for the right things to happen.

The first [priority], of course, was to make sure that each of our 2,500 employees could be accounted for, and, gratefully, they were. The next thing was to ensure the security of the eBay website. After that was done, the team -- on their own -- started working on finding a way that our company and our community of users could come together and help with the relief efforts. What they came up with was the eBay Auction for America. The idea was simple: to raise $100 million in 100 days with 100 percent of the proceeds going to the cause.

A couple of days after the attacks, New York governor George Pataki called us and said, "We can't handle more blood or more volunteers. What we need is a venue where people can get involved. We think the venue is eBay." This request linked right up with our emerging plan [for the Auction for America]. So we pulled the whole thing together and flew to New York on Monday, Sept. 17, to announce the plan with the governor.

The program, which is being run in conjunction with the state of New York and New York City, is now up and running [on the site]. The contributions of individuals or companies -- through buying, selling, or donating cash directly -- will go to benefit work of organizations like the September 11th Fund, the New York State World Trade Center Relief Fund, the Twin Towers Fund, and the American Red Cross. I find it both incredible and gratifying that this company could step up like this and make it all happen."

What has been the response to the Auction for America?

Meg Whitman: "The response has been truly incredible. So far, 45,000 items [have been donated] for sale on the Auction for America site. The conversion rate [the proportion of listed items that are sold] is an amazing 85 percent, vs. 50 percent for eBay as a whole. Our business partners as well as our community members have joined the effort enthusiastically. Some of the most interesting items donated to the cause include 1,000 laptops donated by IBM, lattes for life donated by Starbucks, a U.S. Open flag autographed by Tiger Woods, a "virtual lemonade stand" donated by an 8-year-old girl from Texas, a boat, a plane, and exotic cars -- including eBay investor Bob Kagel's 1958 Corvette. My eye doctor also donated a free eye exam and free contact lens solution."

Aside from the Auction for America, how is eBay's performance holding up in these much more challenging economic times, both in the United States and internationally?

Meg Whitman: "The rest of our business is holding up well. We recently reaffirmed our Wall Street guidance for the third quarter, and activity on the site has popped back to near [pre-] Sept. 11 levels; we'll know more about Q4 in the coming weeks.

Internationally we now know that the eBay concept is as relevant as in the United States. When we started, we didn't know if people in Japan, Germany, France, and in other cultures would buy things from [someone] they didn't know. We wondered if this was a uniquely American phenomenon, but we didn't think so. By January 1999, we had users from 150 countries. Now eBay Germany will do as much volume in 2001 as all of eBay did in 1998! We have a predictable pattern of growth in our international markets. And in the 17 countries in which we have on-the-ground operations, we are number one in every market except one: Japan, where Yahoo Japan had a long head start."

Given all the changes in the technology industry and the economic uncertainty, what advice would you give to students or young people as they think about their careers?

Meg Whitman: "Regardless of the conditions, we now have relearned quite painfully that life is too short to do something that you don't love. Some students fall into investment banking or management consulting because it's the thing to do or because of the money. But people should think about what they have done that they loved earlier in their careers or before business school if that is the case.

One concrete decision that I would advise young people to make earlier rather than later is whether they like being in a service industry vs. being a line manager. That distinction alone clarifies your choices in a major way. In service industries it's all about helping your clients -- rather than your company -- be successful. Of course your firm will be successful as a by-product if you help your clients achieve success. But it is a fundamentally different thrill doing it for your own company rather than for your clients. For example I was at Bain for 12 years, and it was not at all easy making the transition to line management for me. Of course I'm very glad I did. I would advise young people to not be a consultant for so long that they can't make the transition.

From an industry perspective, despite the current challenges, I still believe that technology is where the action is. Technology will see the greatest amount of change, in the next 4 years, of any industry. And I believe that the next 20 years will see as much change as the past 20 years. But, if you love retail, travel, sports, or something else, follow your passion and go for it."

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This article was provided by James M. Citrin.