Boeing's Crisis Communication Plan

During the holiday break, several news items about Boeing were relevant to business communication and character. In one article, the New York Times revealed internal Boeing documents showing a company trying to rebuild its image after two MAX crashes within a year..

The documents give us an inside view of how the company plans to use persuasive strategies to win back customers. In one graphic, we see customers’ willingness to fly. In another, we see customer concerns and ways Boeing can address them, for example, with FAQ cards, “pilot confidence videos,” or personal connections (for example, “Flight attendant offers comfort and information on the safety of the MAX”).

Discussion:

• What persuasive strategies does the company plan? Try to find examples of logical argument, emotional appeal, and credibility.

• What are the consequences of this information becoming public? Does it likely endear the public to the company’s concerns, embarrass the company, or something else?

Should We Call Climate Change Something Else?

An AdAge writer wonders whether renaming climate change would change perceptions. Reframing is a common strategy for influencing behaviors, thoughts, and feelings. Already, climate change seems to be the evolution of global warming, a less convincing idea, in part, because sometimes it’s quite cold, as President Trump says.

A brand team pondered the following new names:

• Global Meltdown, Global Melting

• Climate Collapse, Climate Chaos

• Boiling Point, Melting Point

• Scorched Earth

Earth image source.

Discussion:

• The author identifies “parameters and guideposts” for the new name: audience, reach, and message. What is important for each of these categories?

• What’s your view of the proposed new names? Which do you like best and least, and why?

T-Mobile's Full-Page Ad

In signature pink, T-Mobile ran a full-page ad in Sunday’s New York Times. The ad also feels like T-Mobile because we see “From the desk of John Legere,” the charismatic CEO and frequent tweeter with comments such as, “One of our best weapons is the ineptness of the competition. #sorrynotsorry.”

For a persuasive message, the ad is curious and a good example for business communication students to analyze.

Discussion:

• Who are the primary and secondary audiences for this ad?

• What are T-Mobile’s communication objectives, and how well does this message achieve them?

• If you were advising the company, what suggestions would you have for revisions?

Microsoft's Diversity and Inclusion Report

Microsoft’s 2019 Diversity and Inclusion report is the company’s sixth since 2014.

In the introductory letter, we learn about positive changes in demographic data:

In technical roles alone, we have 49% more women, 48% more Hispanic/Latinx, and 67% more African American/Black employees than we did three years ago. And beyond population growth, this year’s snapshot shows diversity representation has risen in every demographic category we track.

The report includes a few dazzling graphics, such as the one shown here.

Discussion:

• Read the entire report. What principles of business communication are followed?

• What suggestions for improvement would you suggest to the report authors?

• What’s your view of the graphic shown here? What is the main point? How else could the data be shown?

• Although the report writers acknowledge that some of the diversity increase in technical roles is attributed to employee growth, what other questions might a skeptic ask?

Letter from WeWork Employees

As WeWork plans layoffs, employees are asking for input into what happens to them and their peers. Referring to themselves as WeWorkers Coalition, the employees wrote a letter to the management team.

To the We Company Management Team:

WeWork’s company values encourage us to be “entrepreneurial, inspired, authentic, tenacious, grateful and together.” Today, we are embracing these qualities wholeheartedly as we band together to ensure the well-being of our peers.

We come from many departments across the company: building maintenance, cleaning, community, design, product, engineering and more. We believe that in the upcoming weeks we have the unique opportunity to demonstrate our true values to the world. This is a company that has inspired many of us, challenged us, and has been a formative personal and professional experience for those of us who began our careers here. WeWork has been not just a workplace, but a source of friendships and inspiration along the way.

We also believe our product can have a lasting positive impact on the world. We want to improve workplace happiness for millions of office workers and support small and medium sized businesses in their entrepreneurial efforts. We have been proud to support these goals and dedicate our time and talent to achieve them. This has been our story so far.

Recently, however, we have watched as layers are peeled back one-by-one to reveal a different story. This story is one of deception, exclusion and selfishness playing out at the company’s highest levels. This is a story that reads as a negation of all our core values. But this story is not over.

Thousands of us will be laid off in the upcoming weeks. But we want our time here to have meant something. We don’t want to be defined by the scandals, the corruption, and the greed exhibited by the company’s leadership. We want to leave behind a legacy that represents the true character and intentions of WeWork employees.

In the immediate term, we want those being laid off to be provided fair and reasonable separation terms commensurate with their contributions, including severance pay, continuation of company-paid health insurance and compensation for lost equity. We are not the Adam Neumanns of this world — we are a diverse work force with rents to pay, households to support and children to raise. Neumann departed with a $1.7 billion severance package including a yearly $46 million “consulting fee” (higher than the total compensation of all but nine public C.E.O.s in the United States in 2018). We are not asking for this level of graft. We are asking to be treated with humanity and dignity so we can continue living life while searching to make a living elsewhere. In consideration of recent news, we will also need clarity around the contracts our cleaning staff will be required to sign in order to keep their jobs, which are being outsourced to a third party. Those of us who have visas through WeWork need assistance and adequate time to find a new employer to sponsor our respective visas.

In the medium term, employees need a seat at the table so the company can address a broader range of issues. We’ve seen what can happen when leadership makes decisions while employees have no voice. We will need to see more transparency and more accountability.

We also need the thousands who maintain our buildings and directly service members to receive full benefits and fair pay, rather than earning just above minimum wage.

We need allegations of sexual misconduct and harassment to be taken seriously, acted on immediately and resolved with transparency.

We need diversity and inclusion efforts to materialize into real actions, not just talking points at company meetings.

We need salary transparency so we can surface and address systemic inequalities.

We need an end to forced arbitration contracts, which strip employees of their right to pursue fair legal action against the company.

We need all of this, and more.

In the long term, we want the employees who remain at WeWork, and those who join in the future, to inherit something positive we left behind. We want them to never find themselves in this position again, and for that to happen, they need a voice.

With this letter we are introducing ourselves, the WeWorkers Coalition. We are taking full advantage of our legal right to establish this coalition, and in doing so, we hope to give the future employees of WeWork the voice we never had.

We want to work with you. Please join us in writing a better ending to this chapter of the WeWork story.

By this Thursday at 5:00 p.m. EST, we would like to receive confirmation of your receipt of this letter and an indication of your willingness to meet us.

The WeWorkers Coalition

@weworkersco • info@weworkersco.org • #weworkers-coalition

Image source.

Discussion:

• What principles of business writing do the employees follow?

• What persuasive strategies do they use in the letter? Find examples of logical argument, emotional appeal, and credibility.

• What do you consider the strongest and weakest arguments?

• What leadership character dimensions are illustrated in this situation?

Boeing CEO Responds to Questions

This week, Boeing CEO Dennis Muilenburg answered lawmakers’ questions about the two Max 737 plane crashes in the past year. Facing families of deceased passengers, Muilenburg began his testimony with an apology:

“I’d like to begin by expressing my deepest sympathies to the families and loved ones of those who were lost in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents, including those who are here in the room today. I wanted to let you know, on behalf of myself and all of the men and women of Boeing, how deeply sorry I am. As we observe today the solemn anniversary of the loss of Lion Air Flight 610, please know that we carry the memory of these accidents, and of your loved ones, with us every day. They will never be forgotten, and these tragedies will continue to drive us to do everything we can to make our airplanes and our industry safer.”

One of the most tense moments was when Senator Ted Cruz questioned Muilenburg (see video). Muilenburg also faced criticism as he was leaving. The mother of a victim of the second crash responded to his invoking his Iowa farm background:

“Go back to Iowa. Do that.” She also said, “I don't feel like you understand. It's come to the point where you're not the person anymore to solve the situation."

Discussion:

• Watch more of Muilenburg’s testimony. What are some examples of questions he addressed well, and how could he have done better?

• How well does Muilenburg balance emotional appeals, logical arguments, and credibility in his testimony?

• What leadership character dimensions are illustrated by this situation and by Muilenburg’s testimony?

• Muilenburg’s interaction with the mother is a difficult situation for anyone to handle, and we can certainly understand her grief and anger. How would you have responded?

  CNN reports:

  “In response, Muilenburg said he respects her viewpoint. "But I want to tell you the way I was brought up. And I'm just being honest here about it. I learned from my father in Iowa ... when things happen on your watch you have to own them and you have to take responsibility for fixing them," he said.

Reciprocity in the News

Students of persuasion likely learned about reciprocity. In my class, we discuss reciprocity as a logical reasoning type and as one of Cialdini’s six principles of persuasion. We also talk about quid pro quo, meaning “this for that,” as a type of sexual harassment.

Steven Pinker, a cognitive scientist at Harvard, wrote an opinion piece in the New York Times titled, “A Linguist’s Guide to Quid Pro Quo,” referring to the discussions between President Trump and Ukrainian President Volodymyr Zelensky.

President Trump and his supporters have gone to the heart of the issue, denying any quid pro quo. Senator Lindsey Graham of South Carolina tweeted, “What a nothing (non-quid pro quo) burger.” Defenders also say that this type of reciprocity is common for political leaders.

Pinker believes that an explicit “if,” “then” construction isn’t necessary for a quid pro quo agreement:

It’s true that the transcript of the reconstructed conversation does not reveal a smoking sentence with an “if” and a “then.” But to most readers, Mr. Trump’s claim that he was merely musing about his druthers does not pass the giggle test. That is because people in a social relationship rarely hammer out a deal in so many words but veil their offers in politeness and innuendo, counting on their hearers to listen between the lines.

More typically, we see politeness in reciprocal transactions. During the call, President Trump said, “I would like you to do us a favor though.”

This article also raises issues about a “transcript,” which he describes as a reconstructed conversation. The summary isn’t verbatim, and it’s unclear whether a recording exist.

Discussion:

• Describe reciprocity as a method of influence. What is the value to business relationships, and what dangers should be avoided?

• Talk about a time when you practiced reciprocity, but it felt imbalanced—either for you or for the other person? How did it feel? How can avoid this in the future?

• In this case, do you think President Trump crossed a line, or do you believe his statement, “There was no quid pro quo”?

WeWork: "Humbler"

Several articles in the past few weeks have scolded WeWork CEO Adam Neumann and the investors who followed his story.

The Wall Street Journal was the first to describe Neumann’s odd behavior and published another article, “WeWork Investors Turned Off by ‘Sloppy’ IPO Filings.” The recent article explains one problem in the filings (shown below):

“A section headed ‘illustrative annual economics’ that assumed 100% workstation utilization vanished, for example, as did two graphs portraying a typical location going from ‘-$’ to ‘+$,’ with no y-axis showing the actual dollar amounts being depicted.”

A New York Times article, “Was WeWork Ever Going to Work?” criticizes investors for missing obvious problems with the company’s initial business plan, such as the reliance on start-up revenue when most entrepreneurial ventures fail. According to this report, it took people finally looking at the data to realize how much We is losing and how hard it will be for the company to succeed.

The article includes other examples of investors’ blind exuberance:

“It is not merely money that separates the ruling class from the rest of the country. Often it seems as if it is the gaping difference in the application of common sense. Ultimately, it was the bankers, technocrats, statesmen and acolytes of the data-junkie class who were willing to believe that Elizabeth Holmes, a 19-year-old college dropout who thought a black turtleneck would make her Steve Jobs, was going to revolutionize blood-testing. It didn’t seem to matter that she could not deliver any real evidence to prove it.”

An Inc. article, “The Future of WeWork: Leaner, Humbler, and Duller,” suggests a new path for We. The author suggests less hype, fewer employees, and more discipline for the company to survive.

WeWork image source.

Discussion:

• Who do you blame for WeWork’s failed IPO?

• If you believe the New York Times article, investors are gullible. Do you agree with this assessment? If so, why might this be the case?

• Read the “Note”—the fine print—under the table, shown above. How do you interpret this information?

• What should We do now to build credibility and save the business?

East Carolina University Leader Placed on Leave

East Carolina University’s interim chancellor is being investigated for inappropriate behavior with students. One video shows Dan Gerlach chugging beer and dancing with students, and photos show him with his arm around a student at a local hangout in Greenville, NC.

Gerlach wrote a statement in his defense:

When I first started here, and even before, one constant concern that I heard was that our students needed a leader of the university to be present and approachable, someone who can speak to them in their language. That’s what I’ve set out to do at ECU. I regret that these photos are being perceived as anything more than what they are.

A member of the board of trustees said, “This is very concerning without question.” However, the bar owner defended the chancellor in a tweet:

I wasn’t there, but two of the staff told me that several people were kind of excited to see the chancellor out and in the bar…It really is a damn shame. The guy came in with some off duty cops to have some beer. Just wrong place, wrong time.

Discussion:

• How do you assess Gerlach’s response? Explain his perspective of the situation.

• Analyze the bar owner’s tweet. How much credibility does he have in this situation?

• What do you think of university administrators socializing with students in this way? Do you have a different perspective of faculty? Why or why not?
  
  

Amazon Response to Employee Walkout

Like many around the world during the Global Climate Strike, hundreds of Amazon employees walked out of their offices yesterday. Employees have been urging Amazon leaders to take more steps to reduce fossil fuel dependency and wrote an open letter back in April. The pressure seems to be working.

On Thursday, CEO Jeff Bezos announced The Climate Pledge, with the following commitments:

• Commits to net zero carbon by 2040 and 100% renewable energy by 2030

• Orders 100,000 fully electric delivery vehicles, the largest order ever for electric delivery vehicles

• Invests $100 million in reforestation projects around the world to begin removing carbon from the atmosphere now

• Launches new sustainability website to report progress on commitments

The Pledge encourages other businesses to sign on, with Amazon leading the way. Bezos said, “We’re done being in the middle of the herd on this issue — we’ve decided to use our size and scale to make a difference.” Amazon employees reacted positively.

Discussion:

• Analyze the employees’ open letter. What persuasive strategies do they use? Look for examples of logical argument, emotional appeal, and credibility. What organizational strategies do the writers use?

• The Amazon announcement doesn’t mention employees’ influence in the decision, although news articles and employees make the connection. Should Bezos include this recognition? Why or why not?

• Describe a CEO’s dilemma in situations like these. When is it appropriate for leaders to meet their employees’ demands, and when should they resist? Did Bezos take the best course of action?

CEOs Advocate for Gun Safety

CEOs are encouraging senators to pass stricter gun regulations, such as background checks and a “Red Flag” law that allows guns to be taken from someone who poses a threat. The leaders of 145 companies sent a letter asking for the following:

“That’s why we urge the Senate to stand with the American public and take action on gun safety by passing a bill to require background checks on all gun sales and a strong Red Flag law that would allow courts to issue life-saving extreme risk protection orders.”

The Trump Administration has implemented a ban on bump stock devices, which allows a shooter to fire in more rapid succession, and President Trump has supported more thorough background checks for gun buyers.

Image source.

Discussion:

• What’s your view of CEOs taking on this activist role? What is driving them, and what are the potential risks?

• What observations do you have about the companies that are represented—and perhaps about those that are not?

• Analyze the letter by considering the audience, communication objectives, organization, writing style, and so on. What works well, and what could be improved?

Papa John's Attempt to Rebuild the Brand

After a tough couple of years, pizza chain Papa John’s is trying a new approach: an ad campaign featuring former NBA player Shaquille O’Neal. The campaign references the company’s history with an addition to its “Better Ingredients. Better Pizza” slogan: “better day.”

Sales were down, and then the company took another hit after founder John Schnatter criticized NFL leadership for allowing players’ protests. He parted ways with the company after using the “n” word during a conference call that became public.

According to Papa John’s chief branding officer, Shaquille “represents the pied piper of fun.” From the ad here—and two others produced by the company—it’s clear that fun is a key component.

One commentator asks, “Why is Shaq in every commercial?” A video compilation shows him representing Gold Bond, Oreos, Krispy Kreme, JCPenney, Carnival Cruise, and more.

Image source.

Discussion:

• What’s your view of the new ad campaign? How effective do you think the campaign will be?

• Is Shaq a good choice for Papa John’s spokesperson? Why would the company choose him? Is he overused by brands?

Backlash After President Trump Fundraiser

Equinox and SoulCycle customers are not happy about a fundraiser for President Trump sponsored by the companies’ owner, the chairman of a real estate firm. Threats of boycotts and cancelled memberships provoked quick responses from both companies.

SoulCycle CEO Melanie Whelan also said, “SoulCycle has nothing to do with the event and does not support it. … We know who we are and we know what we believe in, and nothing will ever change that.”

Capitalizing on the brands’ distress, other fitness companies are offering discounts and free trials to try to win business.

Soul Cycle image source.

Discussion:

• More company executives feel inspired towards political activism. What are the advantages and risks?

• Did the real estate company owner, Stephen Ross, act inappropriately by hosting a fundraiser? Why or why not?

• Analyze the companies’ statements. What persuasion strategies do they use to rebuild each brand?

• Compare the statements. Does one work better than the other? What criteria do you use to compare them?

Capital One's Response to the Breach

A hacker got access to 140,000 Capital One customers’ credit information and social security information, and about 106 million people were affected by other leaked information. Officials arrested Paige A. Thompson, who goes by “erratic” and was a former Seattle technology company software engineer.

In a bar chart, a BBC article puts this breach in context of others. Capital One’s press release describes the company’s quick response:

“Capital One immediately fixed the configuration vulnerability that this individual exploited and promptly began working with federal law enforcement.”

The release also includes a statement from Chairman and CEO Richard Fairbank:

"While I am grateful that the perpetrator has been caught, I am deeply sorry for what has happened. I sincerely apologize for the understandable worry this incident must be causing those affected and I am committed to making it right."

In addition, as expected, the release includes information for customers, offers free credit monitoring, and provides an FAQ.

Image source.

Discussion:

• Analyze the press release. Consider the audiences, objectives, organization, tone, and so on.

• How well does Fairbanks demonstrate humility in the press release? What other leadership character dimensions are illustrated? How well does he inspire confidence in Capital One?

• Analyze the BBC chart shown here. What works well about the chart, and what else would be helpful to understand these breaches in context?

Why Political Campaign Emails Are Successful

With more than 20 democrats still in the 2020 presidential race, campaign emails are sounding more “desperate,” according to a Wall Street Journal article. The emails may be annoying, but they reap high rewards.

The number of candidate emails reached a high of 130 last weekend and are likely to continue. The article explains, “There is no such thing as too much. And the more cringeworthy the content, the more likely you are to click and give money.” Expect long subject lines, time-sensitive pleas, all-caps, contests, attempts at humor, and invitations to dinners and chats with candidates.

Candidates are trying to make themselves likeable and are practicing authenticity. Whether we know them any better from these emails is questionable, but the fundraising results are clear.

President Trump email source.

Discussion:

• Have you received emails from candidates? What has been your reaction? Have you been inspired to donate to a campaign?

• Assess President Trump’s email shown here. What principles of persuasion does his campaign use, and how effective do you find the message for fundraising?

Nike Flag Shoe Controversy

Nike pulled shoes with flag decorations and is taking some heat for the decision. The shoes featured 13 white stars, reflecting an early version of the American flag created by Betsy Ross in 1776. But, according to a Bloomberg article, “The design recently has taken another meaning for some Americans as far-right groups have claimed it as a symbol of their cause. It has also been criticized as evocative of an era when slavery was still predominant in the U.S.“

Former NFL quarterback Colin Kaepernick, who endorses Nike products, and others asked the company to remove the shoes because they are considered offensive. The company complied but is facing backlash from some groups, and the Air Max 1 USA sneakers are selling for up to $2,500 a pair. The company also issued a statement:

“We regularly make business decisions to withdraw initiatives, products and services. Nike made the decision to halt distribution of the Air Max 1 Quick Strike Fourth of July based on concerns that it could unintentionally offend and detract from the nation’s patriotic holiday.”

Sneaker image.
Colin Kaepernick and sneakers image.

Discussion:

• What’s your view of the sneaker image: offensive, patriotic, or something else?

• How do you assess Colin Kaepernick’s role in the controversy?

• Did Nike do the right thing in pulling the sneakers? Why or why not?

• Assess Nike’s statement in response to the controversy. What else, if anything, should company leaders have said?

Boeing at the Paris Air Show

After two fatal plane crashes involving its 737 Max jet, Boeing is trying rebuild its image, and the company made some headway at the Paris Air Show, an international aircraft sales event.

Company leaders are coming closer to admitting mistakes more directly. CEO Dennis Muilenburg said, “We clearly had a mistake in the implementation of the alert.” Muilenburg also admitted that company communications were “inconsistent” and “unacceptable.” Kevin McAllister, the company’s head of commercial aircraft, said, “We are very sorry for the loss of lives as a result of the tragic accidents...our thoughts and our prayers are with their families," and "Our priority is doing everything to get this plane safely returned to service. It is a pivotal moment for all of us.”

At right is a video of McAllister discussing future plans.

Illustrating confidence in the plane, IAG, which owns British Airway, ordered 200 new 737 Max jets, worth about $24 billion at list price. Airbus wants a chance to bid, and we’ll see whether the request is granted.

Image source.

Discussion:

• Based on this and other news reports, how well is Boeing recovering from its crisis? Read more about reactions to the IAG order to help inform your conclusion.

• Analyze Kevin McAllister’s communication in the video. Compare his style and approach to Dennis Muilenburg’s. What similarities and differences do you observe?

Harvard Rescinds an Offer

Harvard withdrew an admissions offer after discovering racist comments by the applicant online. The applicant, Kyle Kashuv, posted his version of events, including Harvard’s withdrawal and his responses before and after the final decision.

Kashuv became an activist for gun rights after he survived the school shooting in Parkland, Florida. He joined Turning Point USA, which The Chronicle describes as “a right-wing organization with chapters on many college campuses.”

Despite his explanation and apology, Harvard decided to rescind the offer. ]

Harvard College image source.

Discussion:

• Read Kashuv’s account of what happened as well as news articles. What’s your view? Did Harvard make the right decision? Why or why not?

• What, if anything, could Kashuv have done to prevent the withdrawal? Could he have been more persuasive in some way?

VW's New Ad

Volkswagen is still trying to rebuild its image after the emissions scandal in 2015. A new advertising campaign tackles the issue directly, beginning with audio news reports from that time. But the focus, described on YouTube, is on the future: “Every negative has a positive. Learn more about our all-electric vehicles and our plans to help make a better tomorrow at vw.com #drivefortomorrow #vw.”

With an emphasis on innovation, the ad is set to Simon and Garfunkel’s classic song, “The Sound of Silence.” Viewers can imagine company engineers during the past few years creating a new line of electric cars— while VW executives said little about the controversy.

The senior VP of marketing for VW of America acknowledged that the ad is risky but explains the rationale:

“[w]ithout mentioning the past...we would never have the credibility or authenticity to move forward with the brand. Through the last three-and-a-half years or so we kind of operated as usual in the consumers [sic] eye. We kept a very consistent message in the marketplace but didn’t really have a powerful point-of-view as a brand.”

Discussion:

• What’s your view of VW’s new ad campaign? Did the company make the right decision by invoking the scandal?

• Other companies facing scandals, such as Uber and Wells Fargo, placed large apology ads, but VW didn’t take this approach. Why do you think that may be the case? Compare VW’s strategy to other recent recovery campaigns.

Carnival Responds to New Charges

Again, Carnival Cruises is accused of polluting and cover-ups. In 2016, the company paid a $40 million settlement because of actions by its Princess Cruise Lines, including dumping oil-contaminated waste. Now, the company has admitted to violating the 2016 agreement and will pay an additional $20 million.

The Justice Department’s statement identifies violations of probation terms, such as falsifying training records, preparing ships before inspections, and discharging plastic into the water. The plastic discharge was from another Carnival Cruise ship, the Carnival Elation.

In response to the charges, company chairman Arnold W. Donald said, “I do take responsibility for the problems we have. I am extremely disappointed that we’ve had them. I know you have reservations about our commitment and who we are. I want you to know we are fully committed.”

The company also posted a response on its website: corrective actions, information about water treatment, and FAQs. The short press statement, at the top, includes the company’s commitment:

“Carnival Corporation remains committed to environmental excellence and protecting the environment in which we live, work, and travel. Our aspiration is to leave the places we touch even better than when we first arrived.”

Image source.

Discussion:

• Assess Carnival’s response. What persuasive strategies does the company use on its website? What works well, and what could be improved?

• The chairman said, “I know you have reservations about our commitment and who we are.” Do you have reservations? Why or why not? How can the company change perception? Consider dimensions of leadership character.