Metro-North Accident Kills Six

Another Metro-North train accident caused several deaths-this time a collision with an SUV on the tracks in Valhalla, NY. It's unclear why Ellen Brody's car stopped in the train's path, and the driver behind her didn't understand why she didn't back up.

As with other Metro-North incidents, the organization provides service updates, but little human connection. The Metro-North news page only references a collision and provides transportation options. The Twitter feed also posts only service updates.

The MTA CEO did issue this statement: "The entire MTA family's thoughts are with the relatives and loved ones of the victims of last night's tragedy. We are tremendously saddened by this tragic accident, and our thoughts and prayers go out to all of them."

But the MTA press releases are cold statements of the facts:

Discussion Starters:

• Should the MTA do anything differently at this point? To be fair, this accident seems out of the organization's control, unlike the derailment in 2013.
• Compare the New York MTA's response to DC's statement when a woman died of smoke inhalation. What's different? Should the MTA write a similar apology?

Sears CEO Explains Store Closings

Our local Ithaca, NY, Sears store closed last month-one of more than 200 in 2014. Sears Holdings Co. CEO Eddie Lampert explained the decision in a post on the company's website. Part of his message is about keeping underperforming stores open as long as possible:

"I am proud of the work associates contribute to serve our members in all of our stores and believe that the decision to keep some of our worst performing stores open in the past, despite their low or negative levels of profit, was the right one because we kept people employed and served our members. We have experimented with different formats, different levels of investment and different processes to bring about a better result. Given changing circumstances, both in the retail industry and in our company, we can no longer afford, nor justify keeping these stores open."

In a second blog post a day earlier, Lampert writes, "Is something a 'failure' if other successes come from it?" He responds to a Crain's Chicago Business article that criticized Sears for being too merchandise-driven when it needs to evolve as a market-driven company. 

"Success takes both hard work and a willingness to keep what works and adjust what doesn't based upon what our members want. This is what we and our competitors needed to do back in 1988. It's what so many people across our company are doing today, and it's how we are going to bring Sears and Kmart forward into tomorrow."

If nothing else, Lambert's determination shows in the number of his blog posts. Between 2005 and 2013, he wrote no more than three posts per year. In 2014, he's blogging between two and nine times a month.  

Image source. 

Discussion Starters: 

• How does Lambert use principles of persuasion discussed in Chapter 7 in his "Moving Forward" post about the store closings? 
• Compare Lambert's early posts on the blog (2005 and 2006) with his most recent. What differences do you notice, and how can you account for them? 

NYC News Conference About Ebola

A news conference at Bellevue Hospital addressed the situation of the NYC doctor diagnosed with Ebola.  

Mayor Bill de Blasio opened the conference by immediately allaying fears: 

"Today, testing confirmed that a patient here in New York City had tested positive for Ebola. The patient is now here in Bellevue Hospital. We want to state at the outset – there is no reason for New Yorkers to be alarmed. Ebola is an extremely hard disease to contract. It is transmitted only through contact with an infected person's blood or other bodily fluids – not through casual contact. New Yorkers who have not been exposed to an infected person's bodily fluids are not at all at risk. And we want to emphasize that New York City has the world's strongest public health system, the world's leading medical experts, and the world's most advanced medical equipment.

"We have been preparing for months for the threat posed by Ebola. We have clear and strong protocols, which are being scrupulously followed and were followed in this instance. And Bellevue Hospital is specially designed for isolation, identification, and treatment of Ebola patients. Every hospital in the city is prepared in the event that other patients come forward."

Referring to the situation in New York as "a world apart from the scene that unfolded in a Dallas hospital last month," a New York Times article complimented Bellevue Hospital's handling of Dr. Craig Spencer's case. Using verbs such as "whisked," the writer explains how the New York hospital improved protocols for handling Ebola patients. The Texas Health Presbyterian Hospital is still recovering from criticism.

Discussion Starters:

• Watch the news conference or read the full transcript. What principles of persuasion did the mayor and governor use to assure the public of safety?
• What different roles did people play during the news conference? Who covered which information? 
• What else could have been included in the conference? Is anything missing?

Toyota Airbag Recalls

Blaming its supplier, Toyota has recalled about 247,000 vehicles equipped with faulty airbags. This is part of the estimated 16 million cars affected by the Japanese-made Takada inflators since 2008. In a press release, the company explains the recall process:

TOYOTA INTENSIFIES EFFORT TO REPAIR VEHICLES EQUIPPED WITH TAKATA AIRBAG INFLATORS

TORRANCE, Calif., October 20, 2014 – Toyota Motor Sales, U.S.A., Inc., today announced plans to conduct a supplemental safety recall of approximately 247,000 Toyota Corolla, Matrix, Sequoia, Tundra and Lexus SC vehicles produced from 2001 to 2004 and equipped with front passenger airbag inflators supplied by Takata Corporation. This action intensifies Toyota's efforts to reach customers and remedy previously recalled vehicles, and a small number of newly included vehicles, in certain geographic areas that appear to warrant immediate action, based on testing by the supplier. (Continue reading.)

The National Highway Traffic Safety Administration (NHTSA) provides a list of affected vehicles, most before 2004.

Image source.

Discussion Starters:

• Read Toyota's press release. How is the company trying to distance itself from the defect and promote the Toyota brand?
• What else would you suggest Toyota do at this point to manage the news?

Walmart Worsens Healthcare PR

Blaming health care costs, Walmart is cancelling healthcare insurance for about 30,000 part-time employees who work fewer than 30 hours per week. The news is bad enough, but the company exacerbated the negative press with a tweet Huffington Post calls "bizarre and ill timed."

Walmart employees protested this decision and the 19% increase in premiums that workers will pay under Walmart's new plans. Under anonymity, a Mississippi employee told Business Insider, "Most of the employees where I work are struggling as it is, and to take away more of the very meager benefits we get is atrocious." An employee in Missouri said, "While this is a cost cutting [move] for Wal-Mart, is it a slam in the face for employees. Just another thing they are taking away from them." She is worried about coworkers "barely - and I mean barely - keeping their heads above water, even after working for Wal-Mart for almost 20 years."

Sally Welborn, Walmart's senior vice president of benefits, told reporters that Home Depot and Target also recently cut part-timers' benefits: "Health care costs just keep going up for all of us." The decision also is explained in a blog post. However, this tweet provided no context and seemed odd, given the news about cuts and increased costs, neither of which are reflected in this chart:

Discussion Starters:

• Read Walmart's blog post. Which are the most and least convincing arguments?
• In what ways do you support employees' perspectives?
• PR Daily's Matt Wilson summarizes the tweet situation: "Sometimes, Twitter just isn't the right medium for complex communications." Wilson also tells us that the tweet didn't link to the blog post, which provides more context. What advice would you give Walmart as the company considers tweeting after a report of bad news?

Layoffs Coming at Hewlett Packard

To investors, Hewlett Packard's plan to split into two companies may be good news, but employees should be worried. HP will become two companies: 1) personal printers and PCs, and 2) corporate software and hardware. (This follows the news of eBay spinning off PayPal.)

CEO Meg Whitman explains the rationale:

"In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholder."

This slide warns of 55,000 layoffs to come. Original estimates were 5,000, but they grew to 45,000 - 50,000.

Discussion Starters:

• Revise the slide so it's easier to understand.
• The slide seems to be prepared for an external audience. How should HP be communicating internally? Consider the medium, message, and timing.

Zappos Does Damage Control About Layoffs

According to Zappos CEO Tony Hsieh, the company's plans to lay off 30 employees started an "avalanche" of false reports. Part of the backlash comes from concern about Hsieh's promise to invest in Las Vegas. In 2012, he started the Downtown Project and poured $350 million into real estate and 300 start-ups that, today, employ about 800 people. 

The perception isn't helped by an open resignation letter written by David Gould. Gould left a teaching job at the University of Iowa to join the Downtown Project. This is excerpt from the letter:

"Tomorrow, many of the people who merged their voices with yours will find themselves without a job. While their names have yet to be revealed, the disillusioned expressions I conjure up are keeping me awake tonight. This group will undoubtedly include numerous young adults, who have not yet found your good fortune. As they have naively purchased homes and started families, this decision will impact them greatly."

In response to the letter and other criticism, Hsieh puts the layoffs in perspective: 

"We eliminated 30 positions from our corporate support staff. We directly employ more than 300 people, and through our investments there are over800 people working in our porfolio of companies in downtown Vegas. Later this week we are adding about 30 positions when we open up The Market and we plan to continue to grow our total job count."

A 2008 ZDNet article compliments Zappo's transparency when it laid off 8% of its workforce six years ago. 

Discussion Starters: 

• Read Hsieh's entire response. Which arguments do you find most and least persuasive? 
• Read the 2008 ZDNet article. What has changed in social media in the past six years? 
• Zappos usually wins points for its corporate culture. How, if at all, do you think that reputation factors into the media coverage?

Microsoft's Indirect Layoff Email

Microsoft's long layoff email is a great example of how the indirect style simply doesn't work for many bad-news messages. Starting with "Hello there" and ending with the predictable "our success in the future," the email has 1,111 words, 14 paragraphs, and no headings.

NY Magazine writer Kevin Roose did a great job editorializing the message, voicing the reader's frustration. In this segment, he criticizes the jargon and begs for the main point: 

"'Financial envelope'? You don't literally keep all of Microsoft's cash in a big envelope, do you? Anyway, 'changes.' I know what that's supposed to mean. Now, please, give it to me straight: tell me I'm fired."

The news is finally clear in the 11th paragraph of Stephen Elop's email. Elop is the executive vice president of Microsoft's Devices & Services.

"We plan that this would result in an estimated reduction of 12,500 factory direct and professional employees over the next year. These decisions are difficult for the team, and we plan to support departing team members' with severance benefits."

The email is a jargon- and slang-filled bore. In addition, Elop would benefit from a more natural, conversational style, avoiding words such as "whereas" and "unto." Here's a paragraph that a business communication student could easily revise:

"As part of the effort, we plan to select the appropriate business model approach for our sales markets while continuing to offer our products in all markets with a strong focus on maintaining business continuity. We will determine each market approach based on local market dynamics, our ability to profitably deliver local variants, current Lumia momentum and the strategic importance of the market to Microsoft. This will all be balanced with our overall capability to invest."

Discussion Starters: 

• What advice would you give Elop as he plans his next email to staff? Consider principles in Chapter 4 in the text.
• Just for fun, rewrite Elop's email. Imagine that you're his corporate communication VP, and he asks for your advice. Reorganize and try to make the message sound more, well, human.

Home Depot Finally Confirms Security Breach

After investigating a possible security breach since September 2, Home Depot has confirmed what could be the largest breach yet. While Target's recent incident affected 40 million customers, Home Depot's could approach 60 million.

The company has communicated with customers:

• "Message to our customers" on the website home page links to a statement in which Home Depot apologizes, tells us that which purchases were affected, and offers help.
• In an FAQ, the company tries to reassure customers and tells us about the investigation process and how we can find help.

 
A New York Times blog post quoted an Internet security expert: "Honestly, Home Depot is in trouble here." Eric Cowperthwaite was highly critical of the company: "This is not how you handle a significant security breach, nor will it provide any sort of confidence that Home Depot can solve the problem going forward."

I'm a little worried: I've shopped at Home Depot recently. I registered for the free AllClear protection and received this email.

Discussion Starters:

• Read Home Depot's statement and FAQs. What inspires confidence, and what makes you worry?
• The breach was discovered and reported from a third party, and it took Home Depot a week to confirm the breach. Should the management team address this in its communications somehow?
• Assess the email I received from Home Depot. Do you find it confusing?

Another Case for Direct Bad-News Messages

The 9th edition of the book challenges the traditional advice of presenting bad-news using the indirect organizational style. In an HRB blog post, "How to Start a Conversation You're Dreading," Peter Bregman offers examples of when beating around the bush doesn't work.

A performance issue with someone got out of hand because he delayed speaking with her about it. Then, the news took so long during a conversation that she had to break it herself. In another example, a CEO's long introduction to bad news was called a "complete waste of time."

We avoid giving bad news because we aren't good at it and because we're worried about the other person's reactions. But the other's reactions are likely worse when we aren't direct.

Jamie Dimon's letter about his cancer has the news right up front: "I wanted to let you know that I have just been diagnosed with throat cancer."

Image source. 

Discussion Starters:

• How do you feel about giving bad news? If you tend to delay it, why?
• Think about a time when you received bad news or negative feedback.

CEO Jamie Dimon Reveals Cancer

In a message to employees and shareholders, JPMorgan CEO Jamie Dimon revealed his throat cancer, explained the treatment plan, and described his "business-as-usual" approach.

Dear Colleagues and Shareholders -

I wanted to let you know that I have just been diagnosed with throat cancer.
The good news is that the prognosis from my doctors is excellent, the cancer
was caught quickly, and my condition is curable. Following thorough tests that
included a CAT scan, PET scan and a biopsy, the cancer is confined to the
original site and the adjacent lymph nodes on the right side of my neck.
Importantly, there is no evidence of cancer elsewhere in my body.

My evaluation and treatment plan are still being finalized, but at this time
it appears I will begin radiation and chemotherapy treatment shortly at
Memorial Sloan Kettering Hospital, which should take approximately eight
weeks. While the treatment will curtail my travel during this period, I have
been advised that I will be able to continue to be actively involved in our
business, and we will continue to run the company as normal. Our Board has
been fully briefed and is totally supportive.

As you all know, we have outstanding leaders across our businesses and
functions – the best team I've ever had the privilege of working with – so our
company will move forward together with confidence as we continue to deliver
first-class results for our customers, communities and shareholders.

I feel very good now and will let all of you know if my health situation
changes.

I appreciate your support and want to thank our employees for the amazing work
they do day-in and day-out. I'm very proud to be part of this company and
honored to be working with such an exceptional group of people.

Jamie

Dimon has been at JPMorgan for 10 years. Critics thought he should have been ousted after the bank lost more than $2 billion and then paid $20 billion in fines because of bad trades. But he had the support of his board to stay. In fact, they gave him a raise.

It's interesting to contrast Dimon's approach with Steve Jobs's. Jobs had pancreatic cancer while CEO of Apple and was quite private about his condition. One difference may be the prognosis. Although Jobs lived with pancreatic cancer for seven years (2003 - 2011), the prognosis typically is far worse, with a survival rates a mere 3%.

Posted on Business Wire, the notice is called a press release, a memo, a letter, and a note in various news articles.

Discussion Starters:

• Assess Dimon's message and approach. How do you find his openness? Transparent, TMI, or something else?
• In Chapter 8, we discuss how to organize bad-news messages. Dimon's message clearly follows the direct organizational plan. Is this the best choice? Why or why not?
• What direction do you think Dimon got from the board in composing the message? In other words, how, if at all, do you think they influenced Dimon's communication?

Polite Negative Reviews Can Boost Sales

How politely someone writes a review can affect how customers react. A new study, "We'll Be Honest, This Won't Be the Best Article You'll Ever Read: The Use of Dispreferred Markers in Word-of-Mouth Communication," published in the Journal of Consumer Research, gave subjects five versions of online reviews. Reviews that included nice phrases, such as, "I'll be honest," and "I don't want to be mean, but…" influenced people to possibly pay more for a product, even though the review was negative.

A University of Chicago Press article further described the results:

"The study also asked participants to complete a survey evaluating the 'personality' of the brand. Results showed that the review using the marker of politeness caused the brand to be seen as more honest, cheerful, down-to-earth, and wholesome than the same review without the polite customer complaint."

Discussion Starters:

• How might you explain the study results? In what ways do they make sense to you-or not?
• Read the entire study and assess the methodology using principles in Chapter 9 of the book.
• How does this study align with principles for conveying bad news in Chapter 8?

Comparing Heartbleed Emails

By now, most people know about Heartbleed, the computer vulnerability that takes advantage of a programming flaw in websites' OpenSSL encryption code. As we wait to see which sites are affected, companies are beginning to send emails to customers. We can compare these bad-news messages in the same way we looked at emails about the Epsilon security breach back in 2011.

Here are the emails I've seen so far:

• McAfee
• Prezi
  
• SurveyMonkey
  
• Pinterest
• Any.do

Discussion Starters:

• What differences do you notice among these emails? Consider the message, tone, organization, and so on.
• What could account for these differences?

Transit Authority's Response to the "Spectacular Crash"

The Chicago Transit Authority isn't saying much about what the Chicago Tribune called a "spectacular crash," and video-watchers are comparing to a disaster movie.

 

More than 30 people were injured in the accident, but the CTA's communications, as PR Daily points out, just stick to the facts:

As I theorized during the recent MTA Metro-North accident, as a government-funded organization, CTA is probably following old, conservative rules about showing remorse.

Although the CTA says it's investigating all possible causes, Robert Kelly, president of Amalgamated Transit Union Local 308, confirmed that the operator was tired: "Indications are she might have dozed off."

Discussion Starters:

• What advice is CTA likely following in deciding how and what to communicate?
• What advice would you give the agency if you were the director of communication? Or, another way to think about this is, what's the right thing to do?
• Prepare a statement that the CTA could send to show that it's run by actual people.

Malaysia Airlines and PM Announce Demise of Flight MH370

The Malaysia Prime Minister announced that Flight MH370 most likely ended in the Indian Ocean.

Malaysia Airlines posted this statement on its website: 

This message also was texted to the families:

In a posting five hours earlier, the airline gave updates and responded to questions. The statement included a section about working with the families:

"Yesterday, the high-level team met with families in Beijing for more than eight hours. 

"The families asked many questions, and made detailed requests for radar readings and other data. Some of these questions could not be answered, and some of the data they requested was still being held by the investigation, as is standard procedure in investigations of this sort.

"After meeting with the families for a total of more than twelve hours, and taking hundreds of questions, the high-level team has returned to Kuala Lumpur to discuss the matters raised at the meetings. They will return to Beijing tomorrow to continue.

"The briefings in Kuala Lumpur over the last two days went smoothly,  and the families responded as positively as could be expected, with the families engaging with representatives from the relevant authorities.

"It has always been our intention to keep the families as fully informed as possible. We continue to do so."

The Guardian reports tragic scenes of families hearing the news. Their reaction is understandable and was expected: paramedics were sent to the Beijing Hotel where families were called to an "emergency briefing." 

Discussion Starters:

• Assess the prime minister's statement to the press. How well does he deliver the bad news? What is the organizational plan?
• Assess Malaysia Airlines' statement: what works well, and what could be improved?
• What's your view of the text message? Typically, texting isn't the best way to deliver bad news. Could this be an exception? Why?

Communications About GM's Ignition Trouble

GM is in a tough spot, apparently having caused 31 accidents and 13 deaths and saying little about them.

The Justice Department and Congress are investigating what sounds like a history of ignition problems that weren't fixed. The New York Times published a timeline, "The Deadly History of a Faulty Ignition Switch," showing accidents dating back to 2003.

In addition to the criminal investigation led by the U.S. Attorney's Office, the House Committee on Energy and Commerce announced its investigation plans:

• Letter to GM CEO Mary Barra
• Letter to the National Highway Traffic and Safety Administration (NHTSA)

Both letters mention a bunch of documentation to be submitted by March 25:

Meanwhile, Barra is keeping GM employees updated. On March 4, she posted this message on GM's intranet:

Dear GM Employee:

As employees of General Motors, many of us have been asked about our recently announced recall.  I would like to make sure you know where we stand and what we are doing about it.

First and foremost, everything we are doing is guided by one unwavering principle:  do what is best for our customer.  Customer safety and satisfaction are at the heart of every decision we make.

Our process for determining whether and when to recall a vehicle is decided by experienced technical experts. They do their work independent of managers with responsibilities for other aspects of the business, so that their decisions are made solely on technical facts and engineering analysis.

When this was brought to my team a few weeks ago, we acted without hesitation to go well beyond the decision by the technical experts.  Specifically, we:

• Created a working group of senior executives, which I lead, to direct our response, monitor our progress and make adjustments as necessary.
• Empowered our dealers with resources to provide affected customers with the peace of mind they deserve.
• Coordinated with our supplier to ramp up development and validation of replacement parts to get them into the field as fast as possible.
• Provided federal regulators with comprehensive information on this issue.
• Launched an internal review to give us an unvarnished report on what happened. 

We will hold ourselves accountable and improve our processes so our customers do not experience this again.

We sincerely apologized to our customers and others who have a stake in GM's success.

Of course, recalls of this size and scope always take time to play out.  Various other parties will naturally be involved, and GM will cooperate fully.  You can expect additional developments in the near term.

That has led some to ask if the recall of these out-of-production vehicles might affect our company's reputation or sales of our current models.

My answer is simple:  that's not the issue. The vehicles we make today are the best in memory and I'm confident that they will do fine, on their own merits.  And our company's reputation won't be determined by the recall itself, but by how we address the problem going forward.

What is important is taking great care of our customers and showing that it really is a new day at GM.

While I deeply regret the circumstances that brought us to this point, I appreciate how today's GM has responded so far.  We have much more work ahead of us and I'm confident we will do the right thing for our customers.

Mary

When GM publishes documents to answer the committee's request, particularly for points 8 and 9, customer and internal communications also will be interesting to read.

Discussion Starters:

• How can GM gather all of the required information? Which groups within GM do you think are involved in pulling this together?
• Analyze the House Committee's letters. What differences and similarities do you notice? How are they organized? What's interesting (or not) about the tone and word choice?
• Analyze Barra's communication to employees. How might you react if you were an employee? What works well about the message, and what could you improve?

Is Malaysia Airlines Doing Enough?

It's been two days since a Malaysia Airlines flight with 227 passengers and 12 crew members has been lost, and relatives are angry. The flight is now assumed to have crashed, with some signs of wreckage. But the real fallout now is the airline's lack of communication.

Quotations in a Reuters article show family members' distress:

"There's no one from the company here; we can't find a single person. They've just shut us in this room and told us to wait."

"We want someone to show their face. They haven't even given us the passenger list."

"They're treating us worse than dogs."

On its website, the company revealed its "dark site," a page that companies create in anticipation of a crisis. Oddly, the airline kept the name in the URL, shown here.

 

The page gave information about what happened and what actions the airline is taking currently:

Monday, March 10, 05:30 PM MYT +0800 Malaysia Airlines MH370 Flight Incident - 10th Media Statement

The purpose of this statement is to update on emergency response activities at Malaysia Airlines.

On notification of the incident the following steps have been taken:-

The EOC:-

1. Activation of the Emergency Operations Center (EOC) in the early morning of 8 March 2014. The EOC is the central command and control facility responsible for carrying out emergency management functions at the strategic level during a disaster.

2. In addition to the EOC, various departments of Malaysia Airlines are also addressing to all the different needs during this crisis.

Family Management

1. Malaysia Airlines is working closely with the government of China to expedite the issuance of passports for the families intending to travel to Malaysia, as well as with the immigration of Malaysia on the issuance of their visas into Malaysia.

2. Malaysia Airlines is deploying an additional aircraft to bring the families from Beijing to Kuala Lumpur on 11 March 2014.

3. When the aircraft is located, a Response Coordination Centre (RCC) will be established within the vicinity to support the needs of the families. This has been communicated specifically to the families.

4. Once the Response Coordination Centre is operational, we will provide transport and accommodation to the designated areas for the family members.

5. Our oneworld partners have been engaged to help bring family members in other countries aside from China into Kuala Lumpur.

Search and Rescue

1. Malaysia Airlines has been actively cooperating with the search and rescue authorities coordinated by the Department of Civil Aviation Malaysia (DCA) and the Ministry of Transport

2. DCA has confirmed that search and rescue teams from Australia, China, Thailand, Indonesia, Singapore, Vietnam, Philippines, New Zealand and the United States of America have come forward to assist. We are grateful for these efforts.

We also want to address a few common queries from the media.

We are receiving many queries about how the passengers with the stolen passports purchased their tickets. We are unable to comment on this matter as this is a security issue. We can however confirm that we have given all the flight details to the authorities for further investigation.

We also confirm that we are making necessary arrangements for MH370 passengers' families from Beijing to travel to Kuala Lumpur. However, flight details of the families' arrival are highly confidential. This is to protect the privacy and well-being of the families during this difficult time and to respect their space. Our position is not to reveal any information on the flight or movements of the families.

Malaysia Airlines' primary focus at this point in time is to care for the families of the passengers and crew of MH370. This means providing them with timely information, travel facilities, accommodation, meals, medical and emotional support. The costs for these are all borne by Malaysia Airlines.

All other Malaysia Airlines' flights are as per schedule. The safety of our passengers and crew has always been and will continue to be of utmost importance to us.

The airline continues to work with the authorities and we appreciate the help we are receiving from all local and international parties and agencies during this critical and difficult time.

Malaysia Airlines reiterates that it will continue to be transparent in communicating with the general public via the media on all matters affecting MH370.

Discussion Starters:

• Assess Malaysia Airlines' statement. What works well, and what could be improved?
• What's missing from the statement that you might see in similar posts about a tragedy? What could account for this omission? Timing? Culture? Language? Something else?

Cornell President Announces Plans to Leave

Cornell President David Skorton will leave the university in July 2015 to become the secretary of the Smithsonian. In a Smithsonian announcement, Skorton gave this statement:

"Becoming a part of the Smithsonian is a once-in-a-lifetime opportunity to lead an institution that is at the heart of the country's cultural, artistic, historical and scientific life. I am honored by the Board of Regents' decision. I look forward with great enthusiasm to partnering with the excellent staff and volunteers, and engaging with the Regents, Congress and the Smithsonian's many friends, supporters and affiliates to further extend our reach. I am eager to work with the leaders of Washington's art, science and cultural centers to emphasize the critical importance of these disciplines."

Skorton's email to the Cornell community echoed his enthusiasm for the Smithsonian and focused on continuing his work with Cornell through the sesquicentennial.

Dear Colleagues and Friends,

This morning, Robin and I are in Washington, D.C. for the announcement that I will become the next Secretary of the Smithsonian Institution on July 1, 2015. The Smithsonian is one of our true national treasures, and I am honored to have the opportunity to help shape its cultural, artistic, historic, scientific and public engagement endeavors.

Although the transition is in the news today, our work on behalf of Cornell is not done. I will continue all the duties and activities of my Cornell office through this and the next entire academic year, advancing the full array of university initiatives, celebrating our sesquicentennial and ensuring a successful transition to the next president.

Robin will continue her work in the College of Veterinary Medicine on the Ithaca campus and at Weill Cornell Medical College in New York City through June 30, 2015, along with continuing her role as a Cornell ambassador for the sesquicentennial events yet to come.

After we all celebrate Cornell's sesquicentennial, we will carry with us the enduring spirit of Cornell and its remarkably talented community of scholars, students, staff and alumni with whom we have had the privilege to collaborate during these past eight years.

From our very first Cornell Reunion in June 2006, a few weeks before we were officially on board, Robin and I were knit into the fabric of a remarkable community. We have learned so much as part of the Cornell family, from our periodic stays in Mary Donlon Hall during Orientation, to our day-to-day activities on the campuses, to our interactions with our wonderful alumni. We continue to cherish your support, guidance and friendship.

We will be back in Ithaca this evening. We look forward to seeing and talking with many of you in person as our transition unfolds. We also look forward to seeing you at the many events being planned to celebrate Cornell's sesquicentennial, beginning this fall.

Warm regards,
David

--
David J. Skorton
President
Cornell University 

In a video, Skorton said that he'll miss interactions with students.

Image source.

Discussion Starters:

• Analyze President Skorton's message to the Cornell community. How do the organization, audience focus, and content work well, and what could be improved?
• What differences, if any, do you notice in message and tone between Skorton's Smithsonian announcement and the email announcement?

RadioShack Closes 1,100 Stores

RadioShack is closing 1,100 stores, representing almost 20% of its total number.

Blaming decreased traffic and weak cell phone sales, company executives presented the company's plan in a fourth quarter call for investors. (Access the call: (888) 286-8010, replay pass code 13147362.) On the call, CEO Joe Magnacca discusses reasons for declining sales and strategic plans. He also praises the company's successful Super Bowl's ad.

In a news release, the company maintains a positive outlook, quoting Magnacca:

"Even in this environment, we're continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility."

A video on the website, "Do It Together Campaign," promotes part of the company's new direction.

In 2006, RadioShack was criticized for communicating layoffs in an email that read, "The work force reduction notification is currently in progress. Unfortunately your position is one that has been eliminated." We have no word yet on these layoffs are communicated internally.

Discussion Starters:

• What are the key messages of RadioShack's four communications presented here: the ad, the DIT video, the press release, and the investor call?
• What works well about the ad and DIT video, and what could be improved in each?

PIMCO CEO Resigns in "Long" and "Thoughtful" Email to Employees

PIMCO CEO and Co-CIO Mohamed El-Erian resigned suddenly, and Business Insider obtained a copy of his internal communication to employees. Some speculate  about "fatigue" and "tension" among the leadership team.

Business Insider provided this excerpt from the email:

I was so fortunate back in April 1999 to join such an exceptional firm. I vividly remember how I immediately felt at home in a culture that always puts the client first, that is determined to excel, and that values thought leadership as a foundation for continued success.

During my wonderful time at PIMCO, I worked with amazing colleagues who taught and inspired me. I grew professionally and personally. I made lasting friendships. And I had great fun.

But the significance of the "I" pales when compared to the "we" and "you."

Collectively as a firm, we have achieved amazing things for our clients around the world.

It is hard to believe when you see today's PIMCO but, back then, I joined in 1999 a firm that had some $150 billion in assets under management, serving essentially US clients. We offered primarily core fixed income U.S. products. And we were around 500 colleagues working in 4 offices.

Today we are around 2,500 in 13 offices around the world. Our truly global client base has entrusted us with some $2 trillion in assets to manage. And we provide them with a much more diversified set of investment products whose performance continues to excel – once again, over 90 percent of our assets under management are out-performing their benchmarks for the last 5-year period (as of December 31, 2013, before fees).

Yes, collectively, we have been on a meaningful and amazing journey – of serving well more clients, in more places, and with an expanding set of investment solutions to help them meet their objectives.

As you can imagine, the last six years have been particularly exciting and significant as we have helped our clients navigate a global financial crisis and its aftermath. Together, we have worked very hard to safeguard and grow their retirement funds, pensions, investments and savings. And because PIMCO delivered, they have rewarded the firm's hard and effective work by almost tripling our assets under management during this six year period. Or, from another perspective, it took PIMCO 39 years to reach the first $1 trillion mark and just over 3 years to reach the $2 trillion mark.

It has been a period of amazing growth in other meaningful ways too. We are a much stronger and more diversified firm.

Our increasing revenues achieved yet another new record in 2013, as did the level of PIMCO's profits. Our assets under management are more diversified with the share of non-traditional (non-core fixed income) assets, which stood at 56 percent of our business in December 2007 when I rejoined as CEO and co-CIO, now at 66 percent – and this is despite that fact that PIMCO's traditional business continued to grow strongly over this period.

We are also a much more global firm, and getting more so by the day. In the last six years alone, the share of our non-US business has risen to over 30 percent, and again notwithstanding solid growth in our U.S.-based business.

Together, we have done more than successfully expand and diversify PIMCO – we have also successfully grown and made significant strides in diversifying our people.

Our expanding Inclusion and Diversity programs have become an integral part of our talent management and, already, are an important contributor to our success. That, together with our closely-related collective emphasis on promoting and engendering cognitive diversity, puts PIMCO in an even better position to deliver more for our clients in the future.

Because of the way we have done all this – namely, by never losing sight of our mission to deliver to clients superior long-term investment performance, world class client servicing, innovative products, and the right mix of business resilience and agility – PIMCO's success has been recognized worldwide; and not just by the multiple awards (including last week's Morningstar award for Alfred Murata and Dan Ivascyn, joining Bill Gross and Mark Kiesel as past winners) but also, most importantly, by the very high level of client satisfaction.

You are extremely talented, dedicated, and hard working in serving clients. You provide a level of investment excellence, intellectual stimulation and operational efficiency that also allow others to grow and shine. You interact in a way that make the whole much bigger than the sum of the parts. You find a way to maintain your composure and effectiveness regardless of the volatility of markets. And, somehow, you do all this again and again!

What is really impressive about you is not limited to what you consistently deliver to our clients and how you do so; it is also about how you find the time and energy to also give back to our local communities...

PIMCO also published a press release announcing the new leadership team.

Discussion Starters:

• Compare the email except to the press release. What similarities and differences do you see?
• What's missing from the press release?

Business Insider refers to the internal communication as a "memo," but I call it an "email." Why?