Editable Tweets

News about Elon Musk’s proposed Twitter takeover has died down, but a new feature to edit tweets, which Musk encourages, is in progress. The feature would allow users to change tweets without deleting them and reposting.

Proponents point to other platforms—Reddit, Facebook, Instagram—that allow text changes. The ability to edit would fix typos (remember “covfefe”?) and allow people to change their minds after sending, say, offensive tweets.

When Jack Dorsey was CEO, he resisted the idea, and Twitter made this joke about wearing masks. After all, the platform was designed like a text messaging service, and texts cannot be changed. The company viewed editing as an issue of integrity.

The company will keep a history of tweets, so editing creates a new one without deleting the original. This seems to be a good compromise and still meets users’ many requests for the feature.

Schultz Is Explicit About Share Price

As he returns as CEO to the company he founded, Howard Schultz is clear about short-term trade-offs in order to invest more in Starbucks employees. Hired back partly to manage growing union activity, Schultz told employees, “I am not in business, as a shareholder of Starbucks, to make every single decision based on the stock price for the quarter,” and “Those days, ladies and gentlemen, are over.”

To manage expectations, Schultz also said, “For all of you following the stock price today and that the stock is going down, that’s a short-term thing.” He knows that messages to employees will be made public.

His communication is direct and sounds harsh, but it’s rather expected. Primary issues facing the company are about staffing—the tight labor market, rising wages, and union activity. He demonstrates integrity by being transparent. In this case, reinforcing what people already know.

Image source.

Starbucks Announces CEO Transition

After 13 years at Starbucks, including five as CEO and president, Kevin Johnson will retire. Company founder Howard Schultz will serve as interim executive as the search for a replacement begins.

The company statement includes the typical quotes: the board chair complimenting Johnson’s accomplishments, Johnson expressing pride and gratitude, and Schultz providing a vision. Of course, the company doesn’t explicitly address two of the biggest challenges Schultz will face, which a Wall Street Journal article calls out in the headline, “Former Starbucks CEO Howard Schultz to Return as Chain Faces Union Push, Rising Costs.”

Shares declined 24% in the past year, and it’s been a rough time for the company, as for all restaurants trying to regain their footing after the pandemic amidst rising prices, staffing shortages, and wage increases. In the statement, Johnson says that he notified the board a year ago of his plan to leave, and the WSJ article confirms the story with a quote from the board chair, “His decision to leave was his own, not the result of any board or outside push, she said.”

We’ll never know the truth, and expecting full transparency in these situations isn’t realistic. Perhaps it’s a mix, anyway. The board may want a leadership change to address difficult issues, including improving relations with employees and unions, and Johnson felt internal and external pressure to leave.

Image source.

Data in Domino's TV Commercial

To fill work hours, companies are getting creative about recruiting. Domino’s, FedEx, and other companies are running commercials on TV and using social social media influencers to drum up applications.

The Domino’s ad features an employee who rose through the company ranks to become a franchise owner. She seems “relatable,” we say these days, so viewers can picture themselves working at Domino’s and maybe having the same success. Surprisingly, she is only 27 years old.

The company touts data: “95 of our franchisees started out as delivery drives or store employees.” That sounds impressive and potentially inspiring. But I want to know what percentage of drivers and store employees have become franchisees? Also, the commercial omits important information about the investment costs. Fees vary by store, but could range from $145,000 to $500,000, and a net worth of $250,000 may be required. Still, maybe the ad works to recruit new employees? I wonder.

Advice for Resignation Emails

A Wall Street Journal article suggests ways to resign from your job gracefully. With a wave of post-pandemic departures, we’re seeing all sorts of resignation messages, some more appropriate than others. The string of emails can be disheartening for people who decide to stay, and leavers should be mindful of burning bridges they may want to walk across in the future.

A law career coach advises that people “Let it rip. Let everything out”—in a document that you don’t send. Then, send an email that respects the workplace and the people you’ll leave behind:

“For the real deal, be gracious and express gratitude. Include up to three career highlights. (Any more and you risk being seen as a braggart.) And skip the passive-aggressive jabs.”

I hadn’t thought about including career highlights, and I wonder whether coworkers would appreciate reading them. Instead, I suggest observing what other resignation emails include and following suit. Every workplace has its own norms around these types of messages.

I do agree with this advice:

“By giving your notice, ‘the power dynamic has been leveled.’ Use that new sense of control and confidence to share more authentically about yourself, not torpedo your relationships on the way out the door.”

The coach is right: you made your decision and are burdening your manager and coworkers who will pick up the slack. Now’s the time to demonstrate humility instead of rubbing it in and causing more hurt feelings.

Deception in the Hiring Process

A New York Times article surprised me. During a video job interview, someone else answered “technical questions while the job candidate moved his lips onscreen.”

All applicants present themselves in the best light. We describe our accomplishments and may push the limits of our expertise. We also “cover” parts of ourselves that we fear may be undesirable to an employer.

But having a friend interview for a candidate is out of bounds. In this example, the interviewer wondered, “What did he think was going to happen when he moved across the country and realized he couldn’t do the job?” The article concludes with a quote from a deceptive candidate who felt relieved when she didn’t get the job. Of course, that’s a better outcome than suffering the embarrassment of failure.

This situation is a clear example of integrity—misrepresenting oneself, claiming to be someone they (intentional plural) are not. Today, we have a particularly strong job market; I would hope that candidates can find a job for which they’re qualified.

Image source.

Spotify CEO's New Statement

Following new allegations against Joe Rogan, Spotify CEO Daniel Ek apologized to staff, yet reinforced his commitment to the podcast host. A video compilation of Rogan using a racial slur caused new criticism and calls for Spotify to take action. Rogan apologized, explaining that some recordings were from many years ago and were taken out of context.

Ek’s statement is addressed to Spotify employees, but of course, the secondary audience is intended to be the public. The message includes Rogan’s decision, apparently in consultation with the Spotify team, to remove 113 episodes. Although Ek writes that the choice was Rogan’s, we don’t know how much pressure he received.

Ek’s note is a good example of a persuasive communication that tries to balance the needs of many stakeholders. He demonstrates compassion to employees, vulnerabiiity in how the situation affects the company, and integrity in his $100 million commitment to artists and in holding firm to what he sees as a core value of the platform. We could see more personal vulnerabiity and authenticity. Unfortunately, leader will never satisfy all parties in this type of situation.

Spotify Team,

There are no words I can say to adequately convey how deeply sorry I am for the way The Joe Rogan Experience controversy continues to impact each of you. Not only are some of Joe Rogan’s comments incredibly hurtful – I want to make clear that they do not represent the values of this company. I know this situation leaves many of you feeling drained, frustrated and unheard.

I think it’s important you’re aware that we’ve had conversations with Joe and his team about some of the content in his show, including his history of using some racially insensitive language. Following these discussions and his own reflections, he chose to remove a number of episodes from Spotify. He also issued his own apology over the weekend.

While I strongly condemn what Joe has said and I agree with his decision to remove past episodes from our platform, I realize some will want more. And I want to make one point very clear – I do not believe that silencing Joe is the answer. We should have clear lines around content and take action when they are crossed, but canceling voices is a slippery slope. Looking at the issue more broadly, it’s critical thinking and open debate that powers real and necessary progress.

Another criticism that I continue to hear from many of you is that it’s not just about The Joe Rogan Experience on Spotify; it comes down to our direct relationship with him. In last week’s Town Hall, I outlined to you that we are not the publisher of JRE. But perception due to our exclusive license implies otherwise. So I’ve been wrestling with how this perception squares with our values.

If we believe in having an open platform as a core value of the company, then we must also believe in elevating all types of creators, including those from underrepresented communities and a diversity of backgrounds. We’ve been doing a great deal of work in this area already but I think we can do even more. So I am committing to an incremental investment of $100 million for the licensing, development, and marketing of music (artists and songwriters) and audio content from historically marginalized groups. This will dramatically increase our efforts in these areas. While some might want us to pursue a different path, I believe that more speech on more issues can be highly effective in improving the status quo and enhancing the conversation altogether.

I deeply regret that you are carrying so much of this burden. I also want to be transparent in setting the expectation that in order to achieve our goal of becoming the global audio platform, these kinds of disputes will be inevitable. For me, I come back to centering on our mission of unlocking the potential of human creativity and enabling more than a billion people to enjoy the work of what we think will be more than 50 million creators. That mission makes these clashes worth the effort.

I’ve told you several times over the last week, but I think it’s critical we listen carefully to one another and consider how we can and should do better. I’ve spent this time having lots of conversations with people inside and outside of Spotify – some have been supportive while others have been incredibly hard, but all of them have made me think.

One of the things I am thinking about is what additional steps we can take to further balance creator expression with user safety. I’ve asked our teams to expand the number of outside experts we consult with on these efforts and look forward to sharing more details.

Your passion for this company and our mission has made a difference in the lives of so many listeners and creators around the world. I hope you won’t lose sight of that. It’s that ability to focus and improve Spotify even on some of our toughest days that has helped us build the platform we have. We have a clear opportunity to learn and grow together from this challenge and I am ready to meet it head on.

I know it is difficult to have these conversations play out so publicly, and I continue to encourage you to reach out to your leaders, your HR partners or me directly if you need support or resources for yourself or your team.

Daniel

Arguments in the Joe Rogan, Spotify Situation

A few musicians and podcast creators are leaving Spotify over controversy about “The Joe Rogan Experience,” a popular show that has included misinformation about COVID-19 vaccinations. Comparing messages from different points of view is an interesting look at persuasive arguments and raises issues of character. Here are a few to explore:

  • Spotify’s stance is explained in this statement and may be summarized as follows from the chief executive and co-founder: “I think the important part here is that we don’t change our policies based on one creator nor do we change it based on any media cycle, or calls from anyone else.” Spotify also created a COVID information hub.

  • Neil Young removed his music, which had hundreds of millions of views, and explained his rationale in a letter (since removed from his website): “I am doing this because Spotify is spreading fake information about vaccines—potentially causing death to those who believe the disinformation being spread by them.”

  • Crosby, Stills, and Nash followed suit and posted their reason on Twitter: “We support Neil and agree with him that there is dangerous disinformation being aired on Spotify’s Joe Rogan podcast. While we always value alternate points of view, knowingly spreading disinformation during this global pandemic has deadly consequences. Until real action is taken to show that a concern for humanity must be balanced with commerce, we don’t want our music—or the music we made together—to be on the same platform.”

  • Roxane Gay explained her decision to remove “The Roxane Gay Agenda” in a New York Times opinion letter. In closing, she wrote, “I am not trying to impede anyone’s freedom to speak. Joe Rogan and others like him can continue to proudly encourage misinformation and bigotry to vast audiences. They will be well rewarded for their efforts. The platforms sharing these rewards can continue to look the other way. But today at least, I won’t.”

  • Bréne Brown “paused” her two podcasts and wrote that she is waiting for more information: “I’ve enjoyed the creative collaboration with Spotify, and I appreciate how the leadership has shown up in our meetings over the past week. Now that Spotify has published its misinformation policy, and the policy itself appears to address the majority of my concerns, I’m in the process of learning how the policy will be applied. I’m hopeful that the podcasts will be back next week.” As you might expect, Brown demonstrates vulnerability, including negative, personal comments she has received about the issue.

  • Joe Rogan apologized in a 10-minute Instagram video, promising to “balance out viewpoints with other people’s perspectives.”

UPDATE: A video compilation of Rogan using a racial slur has emerged, and he apologized—again.

BlackRock CEO Defends Focus

Investment firm BlackRock has pushed companies to pursue a social purpose in addition to profits. The chief executive’s annual letter to investors defends this approach, which has been criticized as anti-business.

Up front in the title, “The Power of Capitalism,” Larry Fink addresses criticism head on and further explains in the letter:

“Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not ‘woke.’ It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism.”

Fink states his belief clearly in the last paragraph:

“…it is more important than ever that your company and its management be guided by its purpose. If you stay true to your company's purpose and focus on the long term, while adapting to this new world around us, you will deliver durable returns for shareholders and help realize the power of capitalism for all.”

The letter illustrates persuasive communication, focusing not on emotional appeal but logical arguments. For his audience, which he defines at the beginning as CEOs, he encourages a commitment to purpose—for leaders to let stakeholders “know where we stand on the societal issues intrinsic to our companies’ long-term success.” He writes “long-term” 18 times in the letter, using repetition to drive the point home. Fink illustrates a few leadership character dimensions, for example, authenticity, integrity, and courage.

Strong Tone in Activist Investor Letters

Two recent letters illustrate strong language in persuasive messages to boards of directors:

  • Blackwells, which owns less than 5% of Peloton, is calling for the board to remove CEO John Foley and to sell the company. A Fortune article provides background, but the letter, as are most activist investor letters, is quite explicit. Jason Aintabi, chief investment officer for Blackwells, cites “multiple leadership failures,” blaming Foley for the company’s decline. With strong language throughout, Aintabi ends the letter with a pun intended, “The ride for Mr. Foley is over. This Board must now independently chart a new path for Peloton.”

  • Engine Capital wants the Kohl’s board of directors to evaluate the ecommerce business separately and to consider selling the company. The letter comes after a Starboard Value bid to buy the company. The tone of this letter is just as strong as the Blackwells letter about Peloton, but it’s less personal about the CEO. Still, Engine implores the board, “As we will show, there is no excuse for the Board to cling to the status quo.”

Both letters are good examples of tone in context. Of course, investors are not required to be so blatant, but the language is typical—and likely expected—for such demands to be considered credible and to be taken seriously.

Peloton CEO Addresses Difficult Times

Peloton was hot during the pandemic, barely keeping up with demand for bikes and treads. But sales have tumbled as consumers became more price sensitive and competition increased. The Sex in the City HBO reboot, And Just Like That, and Billions Season 6 episode didn’t help when they killed off lead characters during or after a vigorous workout on a Peloton bike. Company shares tumbled 76% in 2021.

CNBC reported that Peloton is pausing production, but Co-Founder and CEO John Foley denies the claim. In a statement (posted on the website as a “note” sent internally), Foley criticizes an internal leak and subsequent “speculative articles.” His tone is firm when he writes about legal action against the “leaker,” a warning to other employees. Trying to get ahead of more bad news, Foley admits that layoffs are possible, while complimenting the team. He chooses positive data to present: the number of users, workouts, and churn rate. He doesn’t include negative data about revenue or stock price.

The note is part defense and part cheerleader, as Foley props up employees—and the company—against a turbulent time in the company’s history. He demonstrates some integrity, humility, and vulnerability, but his leadership will continue to be taxed in the weeks ahead.

Foley’s full message follows (with the giant logo as it appears on the website):

We have always done our best to share news with you all first, before sharing with the public. This week, we’ve experienced leaks containing confidential information that have led to a flurry of speculative articles in the press. The information the media has obtained is incomplete, out of context, and not reflective of Peloton’s strategy. It has saddened me to know you read these things without the clarity and context that you deserve. Before I go on, I want all of you to know that we have identified a leaker, and we are moving forward with the appropriate legal action. But moving forward, I want to take a moment to talk about some of the changes with you directly.

As a public company that is in a pre-earnings “Quiet Period”, we are limited in what information we can share. However, we issued a pre-earnings press release earlier this evening about our preliminary Q2 results, in order to offer an initial and more accurate picture of our business performance.

As you have heard me and other leaders say over the past few months, we are continuing to invest in our growth, but we also need to review our cost structure to ensure we set ourselves up for continued success, while never losing sight of the important role we play in helping our 6.2+ million Members lead healthier, happier lives.

What this means for our team right now

In the past, we’ve said layoffs would be the absolute last lever we would ever hope to pull. However, we now need to evaluate our organization structure and size of our team, with the utmost care and compassion. And we are still in the process of considering all options as part of our efforts to make our business more flexible.

This team is made up of some of the smartest, most passionate, hard-working and KIND people I have ever met. You have each painted your masterpiece at Peloton in your own way, and your contributions matter. They always have, and they always will.

I am SO proud of everything we have accomplished together, and it pains me we are faced with these tough decisions. I know this is difficult, and I want to thank you for your patience as we work through these times together.

Rumors that we are halting all production of bikes and Treads are false

Notably, we’ve found ourselves in the middle of a once-in-a-hundred year event with the COVID-19 pandemic, and what we anticipated would happen over the course of three years happened in months during 2020, and into 2021.

We worked quickly and diligently to meet the demand head-on at a time when the world really needed us, in large part thanks to how hard you worked every day. We feel good about right-sizing our production, and, as we evolve to more seasonal demand curves, we are resetting our production levels for sustainable growth.

Connected Fitness is here to stay

This past quarter, our churn rate was 0.79%. This means that our Members are sticking with us, again thanks to your brilliance and continued innovation. Connected fitness provides the convenience people need to stay active and centered and will continue to be a key part of the future of fitness. In fact, just a few days ago, we recorded our highest ever number of daily workouts -- over 2.9M workouts.

I want to acknowledge that this does not answer all of the questions I am sure many of you have right now. But, I did want to share what we could at this time.

I know there is a lot of noise and anxiety in our environment right now, which is why I wanted to take this moment to provide some additional context for you all as we navigate the next few weeks together.

John

Activision Acquisition Announcements Omit Information

Microsoft’s acquisition of Activision significantly boosts the company’s prospects in the gaming space. In a statement, Microsoft said, “This acquisition will accelerate the growth in Microsoft’s gaming business across mobile, PC, console and cloud and will provide building blocks for the metaverse.” Games under assets now include millions of players of “Warcraft,” “Candy Crush,” “Call of Duty,” and others.

As expected, Microsoft’s announcement doesn’t include bad news about Activision—reported just the day before the acquisition. Rampant sexual harassment allegations resulted in more than three dozen terminated and another 40 disciplined employees. The day after the acquisition, the Wall Street Journal reported, “Activision Blizzard’s Workplace Problems Spurred $75 Billion Microsoft Deal.” Similarly, Activision CEO Bobby Kotick’s email to employees fails to mention that the company may have been in trouble before the agreement.

As usual, what is not said is often as important as what is said. Both messages announce good news and omit the bad news. This story illustrates that positive business messages are also persuasive messages.

Misrepresenting COVID-19 Study Findings

A study about COVID testing in schools is criticized for its authors’ conclusions. Researchers at Duke, in collaboration with the North Carolina Department of Health and Human Services, studied the “test-to-stay” approach for schoolchildren. With this approach, if a child tests negative after being exposed to someone who tests positive, that child can go to school. Researchers found this strategy to be effective in getting kids back to school—without increasing COVID transmissions.

The trouble, described in a Wall Street Journal opinion piece, is that authors concluded, “in schools with universal masking, test-to-stay is an effective strategy.” The writers explain their thinking:

“That invites readers to assume that test-to-stay doesn’t work without forced masking. But since they studied no unmasked schools, this conclusion is baseless. An honest report would either have said so or not mentioned masking at all.”

The writers believe that study authors are pushing their own agenda for schools to require masking. This is a good example of a study interpretation that is technically correct but omits important information for a fair comparison. In such cases, researchers might hurt their own credibility. On the other hand, do people assume, as the writers say, that “test to stay” doesn’t work in schools without mask mandates?

Quotes from the Elizabeth Holmes Trial

A jury found Elizabeth Holmes guilty of four of 11 charges related to her start-up, Theranos. The jury was convinced that she defrauded several investors who bought into her blood-testing company, but they were not convinced that she defrauded patients.

A Wall Street Journal article, “The Elizabeth Holmes Trial: The 10 Most Quotable Moments,” reveals persuasive language used throughout the trial. Despite valiant arguments on both sides, jurors had a difficult time deciding this trial. They couldn’t agree on three of the 11 counts, causing the trial judge to instruct the group to try harder to reach agreement, but in the end, they did not.

A few of the quotes demonstrate Holmes’ persuasive communication skills. Jim Mattis, former U.S. defense secretary, Theranos board member, and four-star general, said, “There just came a point when I didn’t know what to believe about Theranos anymore.” The CEO of Safeway noted, “When she presented to our board, when she was talking, she owned the room.”

Holmes, however, didn’t own the courtroom. Two of her quotes are included in the list: “I wanted to convey the impact the company could make for people and for healthcare” and “He impacted everything about who I was, and I don’t fully understand that.” She tried to explain her passion for the company and the abuse she suffered from her former deputy and partner. She will get another chance to convince jurors when she likely appeals the decision.

Ask for Help in Rich Media Channels for Better Results

New research confirms what you might already think: you are most likely to get the results you want when you ask someone in person.

Experiments indicate that people are more compliant when communication takes place over richer media channels. Requests made face-to-face are most likely to be fulfilled. Second best is Zoom and then phone calls. Email and text requests are least effective. Survey participants thought richer channels would be more effective, but they underestimated the differences.

Cornell University researcher Vanessa Bohns sums up the results:

“We tend to think people will weigh the costs and benefits and make a measured decision about whether to agree to something, saying ‘yes’ only if they really want to. But in fact, people agree to all sorts of things, even things they’d rather not do, because they feel bad saying ‘no’ in the moment.”

Of course, this raises issues of integrity. Taking advantage of people who feel uncomfortable refusing a request will damage trust and credibility over time.

Peloton Addresses Death (Spoiler Alert)

Sex in the City spoiler alert: Mr. Big dies after a vigorous workout on a Peloton bike. The first episode of the HBO reunion show, “And Just Like That,” has Carrie Bradshaw’s husband sweating with “Allegra,” played by real-life Peloton instructor Jess King.

Company leaders were as surprised as viewers. A spokesperson said they approved King’s role and supplied a bike but had no idea how the scene ended. In a statement, an on-staff cardiologist blamed Mr. Big—a convenient, now deceased fictional character:

"I'm sure SATC fans, like me, are saddened by the news that Mr. Big dies of a heart attack. Mr. Big lived what many would call an extravagant lifestyle—including cocktails, cigars, and big steaks—and was at serious risk as he had a previous cardiac event in Season 6. These lifestyle choices and perhaps even his family history, which often is a significant factor, were the likely cause of his death. Riding his Peloton Bike may have even helped delay his cardiac event."

HBO declined to comment on the situation, and Peloton will be more careful about product placements in the future. Vulture called the episode “the worst Peloton ad ever.” After the episode aired, shares fell 11%, further challenging a company struggling with declining sales and product recalls.

Update: Although Peloton may have grounds for a lawsuit, so far, the company is taking a different approach. In a parody ad produced within just a few days, Peloton hired Mr. Big actor Chris Noth to play the character, alive and flirting with the instructor. A voiceover reminds viewers of the benefits of cycling.

Visualizing Big Numbers

President Biden’s “Build Back Better” infrastructure plan may be difficult to visualize. When we consider trillions of dollars, traditional business charts—bars, pies, and lines—may not be the best choice.

Here are a few visualizations to compare:

These aren’t perfect comparisons because they cover different categories and are from different points in time, but they do give us options to help audiences understand data. What other visualizations can you find, and which are most effective for what purpose?

Robinhood's Breach Notice

In a blog post, Robinhood announced a “data security incident.” Business communication students will notice several examples of downplaying the situation, including giving numbers of people affected more significantly (310) but no numbers for the total.

Language seems intentionally complex, for example, “The unauthorized party socially engineered a customer support employee by phone and obtained access to certain customer support systems.” In other words, someone called a Robinhood employee and impersonated another employee. The employee fell for this deceit without seeking proof.

Robinhood seems to take no responsibility and identifies no plans for future action to prevent a similar “incident.” The chief security officer provides template text: “As a Safety First company, we owe it to our customers to be transparent and act with integrity. Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do.”

Skewed Chart Example

Dopesick on Hulu includes a great example of a compressed chart scale. The show is about the opioid crisis and features the Sackler family and Purdue Pharma’s role in convincing doctors that OxyContin is not addictive. To prove the point, Purdue shared this graph, showing that the “time release” capsules don’t cause mood spikes (“fewer peaks and valleys”). The trouble, as business communication students can observe, is the Y axis.

In Episode 6 (around 21 minutes), we hear the explanation: “But see what Purdue did? They dramatically compressed the scale.” On the chart, we see that 30 looks to be the midpoint. They used a logarithmic instead of a linear scale to homogenize or “smooth out” the data. (Here’s a good explanation of logarithmic scales.)

In the show, an FDA official says they instructed Purdue Pharma not to use the chart, but the company did anyway. Of course, I’m not sure what happened, exactly, and I didn’t get the court filings to verify the chart.

The show offers many other examples of the company’s persuasive communications and the tragic effect on people’s lives. For more research about Purdue’s misleading communications, see this LA Times article. Also read a fascinating trove of Purdue emails here.