Bed Bath & Beyond Statement About CFO Suicide

A leader’s death by suicide is particularly difficult to communicate. Bed Bath & Beyond, with an interim CEO and already suffering from declining sales, profits, and stock price (despite a temporary run-up by Reddit), faced news of the CFO’s dramatic death. Sadly, Gustavo Arnal jumped from his apartment building in Manhattan two days after an investor presentation about the company’s strategy to further cut jobs and close stores. Hired two years ago, Arnal was recently accused, with another executive, of artificially inflating the stock price before selling about $1.4 million worth of shares, which was pre-planned.

What is appropriate to say in such a situation? News articles took one sentence from the company’s statement: “The entire Bed Bath & Beyond Inc. organization is profoundly saddened by this shocking loss.” The entire statement is below and does what it needs to do: express condolences and respect to his family and recognize his career and his value to the company.

As a bad-news message, the main point is right up front. Appropriately, the writers demonstrate compassion and integrity: the statement does not mention the cause of death or the pending litigation.

UPDATE: A Wall Street Journal article describes the incredible stress that Arnal was under, working 18-hour days. Before the long weekend, he had requested a break, which was in discussion.

Bed Bath & Beyond Inc. Mourns the Loss of Executive Vice President and Chief Financial Officer, Gustavo Arnal

UNION, N.J., Sept. 4, 2022 /PRNewswire/ -- Bed Bath & Beyond Inc. (NASDAQ: BBBY) today announced that Gustavo Arnal, Executive Vice President and Chief Financial Officer of the Company, passed away on September 2, 2022. The entire Bed Bath & Beyond Inc. organization is profoundly saddened by this shocking loss.

"I wish to extend our sincerest condolences to Gustavo's family. Gustavo will be remembered by all he worked with for his leadership, talent and stewardship of our Company. I am proud to have been his colleague, and he will be truly missed by all of us at Bed Bath & Beyond and everyone who had the pleasure of knowing him," said Harriet Edelman, Independent Chair of the Bed Bath & Beyond Inc. Board of Directors. "Our focus is on supporting his family and his team and our thoughts are with them during this sad and difficult time. Please join us in respecting the family's privacy."

Mr. Arnal joined Bed Bath & Beyond Inc. in May 2020 following a distinguished global career in finance at Avon, Walgreens Boots Alliance, and Procter & Gamble. At Bed Bath & Beyond Inc., Mr. Arnal was instrumental in guiding the organization throughout the coronavirus pandemic, transforming the Company's financial foundation and building a strong and talented team. He was also an esteemed colleague in the financial community.

Image source.

RadioShack Takes Risks in New Ad Campaign

RadioShack launched a new advertising campaign that includes sexual and other questionable references. The situation is an interesting example of persuasive communication—catchy and potentially offensive.

A Wall Street Journal article describes franchisees’ mixed reactions to the approach as well as the company’s new cryptocurrency exchange platform. As the majority franchisee, Bob Wilke, president of HobbyTown Unlimited complained, “This is so damaging to their integrity, and the reputation of the brand. We just do not want to be associated with that type of marketing.”

The company follows a sad story line, with 8,000 at its prime in 1999, filing for bankruptcy in 2015 and 2017, getting acquired, and limping along with 110 stores today. Looking at RadioShack’s history, we do see a different picture from the current marketing. This Business Insider article chronicles ads from the company’s inception in 1921, when products were sold primarily through catalogs.

Abel Czupor, the new marketing head, responded to the controversy: “Every company that has lovers also has haters, but that just means that marketing is working. And I would rather have lovers and haters than not having anyone that knows about the brand.” Edgy marketing attracts attention, but it’s not always positive. Business communication students can analyze the company’s roots and progression to decide whether the current strategy might work or only drag the brand further down.

This Week’s Charts

A Wall Street Journal article includes a few simple data slides about people losing and finding jobs. The first line chart, shown here, is a good example of an at-a-glance picture of the employment rebound. The second chart, below, takes a bit longer to digest but provides more information. Both do what graphics should do: illustrate relationships of data to provide insights.

This Bloomberg image about SoftBank’s “epic losses” made me smile. I used the bank’s vague, data-less graphics as examples in Chapter 9 of Business Communication and Character. But in those SoftBank slides, one of which is below, the arrows pointed up, showing the bank’s overly optimistic view of WeWork.

Google Employee Petition

Google employees are petitioning for the company to stop collecting abortion-related data. The concern comes after Roe v. Wade was overturned, which could put women who search for abortion services in jeopardy.

Launched in January 2021, Alphabet Workers' Union is driving the petition, now signed by more than 650 employees. The group is asking Google to refrain from turning data about searches and illegal abortions over to authorities, as Facebook did; to omit “misleading ‘pregnancy crisis centers’” in search results, including maps, which often lead to anti-abortion centers; to stop donations and lobbying entirely; and more.

As tech employee activism becomes more prevalent, employees feel more empowered to demonstrate courage. I don’t see the entire petition, but I wonder whether employees are asking for too much, particularly an end to all lobbying and political donations. A more focused, realistic request of actions that show the company’s leadership among tech companies could be more effective.

Although the petition was sent to CEO Sundar Pichai and other executives on Monday, the group hadn’t received a response by Thursday. Company leaders are called on to demonstrate integrity—transparency in communication and consistency with company principles. This is also an opportunity to lead with humility and to show a willingness to be vulnerable because this is a highly sensitive issue with no clear answers. Although a difficult situation to address, leaders must respond, particularly before the story becomes about the lack of response.

Calm App Layoff Email

Even meditation apps get bad news. Although the Calm app grew quickly during the COVID lockdowns, the company is now laying off 90 of its 400 employees—more than 20%.

I can’t find the full email online, but the Wall Street Journal posted these quotes:

Regrettably, today we are reducing our overall workforce by 20%. While some of you will be impacted, all of you will be affected. I can assure you that this was not an easy decision, but it is especially difficult for a company like ours whose mission is focused on workplace mental health and wellness.

“We did not come to this decision lightly, but are confident that these changes will help us prioritize the future, focus on growth and become a more efficient organization.”

The article also describe what’s missing:

Mr. Ko’s memo didn’t elaborate on the reasons for the layoffs but promised employees “a more in-depth discussion on the future of the business” at an all-hands meeting scheduled for Friday. A Calm spokeswoman declined to make Mr. Ko available for an interview.

Typically, layoff memos explain reasons, which we know helps employees understand and accept bad news, as I describe in Chapter 8 of Business Communication and Character. More transparency and accountability might be useful.

Maybe Ko doesn’t want the reasons publicized, knowing that the email would be circulated. I also wonder whether the reasons are dire, and despite having a $2billion valuation, the company doesn’t yet have a solid plan for regrowth.

Quiet Quitting and Communication

I wonder whether “quiet quitting” is a communication cop out. TikToker @zkchillin describes the term as “quitting the idea of going above and beyond at work.” He explains, “You’re still performing your duties, but you’re no longer subscribing to the hustle culture mentality that work has to be your life. The reality is, it’s not.”

This sounds like having a work-life balance, and I’m all for it. But the hyperbolic language (and alliteration) makes me curious about how this decision gets communicated. In professional jobs, position descriptions are flexible documents, with the last bullet typically, “other duties as assigned.” How do employees decline responsibilities, particularly tasks they were expected to—and had been willing to—perform in the past?

If an employee feels overburdened, it’s their responsibility to raise concerns over time. That takes courage and integrity and is a more mature and direct strategy than what sounds like passive-aggressively not doing work. Without that conversation, when output is compared to previous work, the employee will appear to be slacking even if they are meeting job responsibilities.

What is the impact on others? If tasks are openly renegotiated, then a team could work more efficiently. Instead, “quiet quitting” misses this opportunity and implies that some work might get tossed to other team members.

I also wonder how long this strategy will last if layoffs become more prevalent in a down economy. Employees have the upper hand now, but that won’t always be the case.

Amazon + iRobot Press Release

Amazon’s news release announcing the iRobot acquisition is as simple as they come. As a neutral/positive message, the news is right up front and focuses on the benefits to customers of using the Roomba product.

The statement says that the companies “have entered into a definitive merger agreement under which Amazon will acquire iRobot,” but acquisition seems more accurate than merger. The typical quotes from company leaders express enthusiasm on both sides. Then, company information sections and legal boilerplate dwarf the news.

As usual, what’s most interesting is unsaid. Roomba will help Amazon expand its Astro robot, which has had limited success. The day of the announcement, iRobot, struggling with declining sales and delayed orders, laid off 10% of the workforce. The acquisition faces anti-trust questions and privacy concerns. As the head of a consumer advocacy group said, “It's about the company gaining still more intimate details of our lives to gain unfair market advantage and sell us more stuff." Of course, all that is missing from the company statement.

CEOs’ Direct Talk

A Wall Street Journal article this week, “CEOs Ditch the Warm Talk as Economy Shows Signs That ‘Winter’s Coming,’” provides several examples of leaders’ direct communication. When we analyze bad-news messages in business communication, we consider the organizational strategy and, more important. tone and content choices. The current wave is for CEOs to warn employees about layoffs and prepare them for tough times ahead.

Some CEOs use this direct strategy to manipulate employees to return to offices, but others are demonstrating integrity. A CEO who asks employees to “do more with less” is being transparent. Employees may be motivated by this type of talk—either to work harder and cut costs or to leave the company. If employees leave, the CEO might be OK with that, hoping to reduce headcount or hire new workers who are more productive and have different skills.

Although the article title refers to declining “warm talk,” I would argue that the talk is compassionate—honestly preparing employees so they can make decisions about how and whether they want to continue working for the company.

Images source.

Honest Email Auto-Responses

The New York Times published a series of automated email responses that let senders know why the receiver will take a while to reply or will not replay at all. Each explains a mental-health reason, for example, vacationing or recovering from a miscarriage. Some are funny, like this one:

Thanks for your email—but unfortunately, I’m rocking in a corner somewhere trying to find my inner peace. As soon as I’ve found it, I’ll be back at work, so please bear with me.

Alain Sobol, Sharm el-Sheikh, Egypt

Generally, I like the idea. The responses are honest and demonstrate integrity, vulnerability, and authenticity. A few of the examples might be “TMI” (too much information), but that’s for each receiver to decide.

Students can draft their own responses, but I’ll add a word of caution: these shouldn’t be overused. How much senders will tolerate depends on the situation and relationship. If an email is important, the sender needs alternatives, which I don’t see in the NYT examples. A time estimate or someone else to contact would be appreciated.

Image source.

Data Visualizations with Pop-Up Text

An NBC data visualization packs in a lot of data at-a-glance. With a simple table format and color, the graphic shows inflation for items over time. The chart is a good example of an alternative to the boring line and column or bar chart.

Later in the article, NBC does include two line charts, which work fine for more simple data—trends of single variables over time. But inflation is complicated, driven by key sectors, which this graphic illustrates.

The pop-up (hover over) text makes it easy to zoom into the data and add interactivity to graphics. Pop-up text functionality has been available in PowerPoint and Excel for years, and it’s easy to use. This feature add layers to data visualizations and can be effective for slide decks that people read on their own or for presenters to highlight important data points.

Boris Johnson's Resignation Speech

British PM Boris Johnson’s resignation speech is a lesson in delivery skills. Johnson reads a script and yet sounds natural—he uses conversational language and comes across as authentic.

Johnson resisted calls for his resignation, both at this point and previously, when lawmakers believed other transgressions were cause for him to leave office, for example, holding parties that violated Covid guidelines. The “final straw" was when Johnson hired someone who faced sexual misconduct charges. Although Johnson denied knowing about the claims, he later admitted that he did know. Two high-ranking officials resigned, followed by several others.

The speech, 6.5 minutes long, begins with his decision and the “will of the Parliamentary Conservative Party” that a new leader should be instated. He then highlights successes during his tenure, including Brexit, Covid actions, and supporting the Ukrainian people during the war. Expressing regret, he concedes that “no one is indispensable.” At the same time, he acknowledges that some people will be “relieved” and, with colloquial language says, “Them’s the breaks.”

Ending with gratitude for the job, lawmakers, and the public, Johnson leaves on a positive note about the future of the United Kingdom. Despite issues of integrity throughout his time as PM, Johnson does the right, if not obvious, thing in the end.

TikTok Tries to Reassure Senators

Two letters illustrate persuasive communication for students to analyze. The first is a letter from nine republican U.S. senators following a BuzzFeed article, “Leaked Audio From 80 Internal TikTok Meetings Shows That US User Data Has Been Repeatedly Accessed From China.”

The second is TikTok’s response. After a few introductory paragraphs (which say very little, in my opinion), CEO Shou Zi Chew tackles each question in sequence.

As we might expect, some responses are clearer than others. In a fairly obvious obfuscation, Chew doesn’t respond to sub-questions (a, b, c, etc.) individually. Question 9, about Beijing parent company ByteDance and a newly named subsidiary, is particularly confusing.

Despite company efforts, at least one senator believes TikTok should testify before Congress.

Image source.

More Documents Show McKinsey's Role in Promoting Drugs

McKinsey has already paid close to a $600 million settlement for its consulting work with Purdue Pharma that fueled the opioid crisis. Now, as part of that investigation, new evidence has emerged about its role with other companies.

For example, McKinsey worked with Endo, which ramped up sales as part of a “blitz” recommended by McKinsey. In some cases, McKinsey suggested focusing on more potent products and, as we saw with Purdue, targeting physicians and developing aggressive sales incentive programs.

Endo sold Opana, which became an injected street-drug and caused an HIV outbreak. Still, McKinsey suggested ways to increase sales. McKinsey also recommended ways to avoid taxes, which, although technically legal, President Obama called tax “abuse.”

McKinsey promoted itself as having “in-depth experience in narcotics.” In one document, McKinsey boasted, “We serve the majority of the leading players.” That persuasive language has come back to bite the company.

Examples from the McKinsey document trove are included in 11th edition of Business Communication and Character to illustrate persuasive communication, writing style, and a lack of integrity. Newly released documents illustrate internal debate; for example, one consultant wrote, “We may not have done anything wrong, but did we ask ourselves what the negative consequences of the work we were doing was, and how it could be minimized?”

McKinsey may have hoped that the large settlement and public email to staff at the time would have ended the company’s trouble. But more criticism and lawsuits may be looming.

Companies Navigate Comms After Roe v. Wade

After the U.S. Supreme Court decision to overturn Roe v. Wade, women’s constitutional right to have an abortion, companies are faced with thorny decisions about whether and how to communicate. Leaders have become more vocal on social issues, for example, gay marriage and Black Lives Matter, but this situation may be more complicated.

Several companies have expanded their health care coverage to include travel for medical procedures, but they avoid the word “abortion.” For example, Disney sent an email to staff:

“We have processes in place so that an employee who may be unable to access care in one location has affordable coverage for receiving similar levels of care in another location,” including, “family planning (including pregnancy-related decisions).”

Other companies were more direct. Back in April, after the Texas ruling that limited abortions, Yelp’s chief diversity officer said, “We want to be able to recruit and retain employees wherever they might be living,” She raised the issue of equity—access for employees who may not have the funds to travel. She also said, “The ability to control your reproductive health, and whether or when you want to extend your family, is absolutely fundamental to being able to be successful in the workplace,”

Starbucks, facing unionization efforts and staffing issues, sent three letters to partners during the past few months and posted them publicly. Each uses the word “abortion” and acknowledges different views on the subject and that some may feel “disheartened or in shock.”

How companies approach these communications reflects their business, employee base, location, and culture. We might expect Starbucks, whose founder and current interim CEO Howard Schultz has consistently been vocal on controversial issues. Starbucks leaders demonstrated courage, vulnerability, compassion, and integrity—standing up for what they believe is right, despite strong feelings on the other side.

Business Communication and Character Lessons from Jan. 6 Hearings

Not every faculty member will want to talk about the United States House Select Committee hearings about the January 6, 2021, attack on the capitol. At the time, some public school teachers were instructed not to “wade into” the events. But for faculty who are willing to take a degree of risk, the hearings serve as excellent illustrations of business communication principles and leadership character dimensions. Following are a few examples.

BUSINESS COMMUNICATION

Media Choice: The committee chooses different media for different purposes. Students can evaluate why they might have chosen text, interviews, scripts, live or recorded witness testimony, video, etc. and how effective each is for the purpose.

Delivery Style: Committee representatives and witnesses demonstrate a variety of delivery styles. Some are more natural/conversational or scripted than others. What is the impact of William Barr’s use of a profanity (“b—s—”)?

Claims and Evidence: The committee uses a variety of evidence to prove their claims about former President Trump’s role in trying to overturn the election. For example, the fourth hearing describes voting data in Georgia and Arizona. Students could evaluate, for any of the seven claims, which evidence was strongest and weakest. We also see examples of balancing emotional appeal (for example, Ruby Freeman’s and Shaye Moss’s testimony in the fourth hearing), logical arguments (for example, the testimony in the second hearing about laws and constitutional restrictions on former Vice President Pence’s ability to refuse to certify votes), and credibility (for example, the committee shows a link for viewers to see witness bios online). See a summary of evidence here.

Organization: The committee is trying to prove that former President Trump had a seven-part plan (listed below) to overturn the election. The points are written using message titles (or talking headings) and serve as the committee’s claims. At the beginning of each hearing, committee leaders preview the claim and evidence.

Q&A: Although some of the questions are clearly scripted, students can analyze types of questions asked and how witnesses respond. They may find notable differences between recorded and live testimony.

Email Privacy: Once again, we learn the lesson that emails, text messages, and voicemails may be made public during legal investigations; any communication is discoverable.

CHARACTER

Vulnerability: Several witnesses demonstrate vulnerability; they risk emotional exposure in addition to the targeting and harassment they already experienced.

Humility: We see former President Trump’s lack of humility in his unwillingness to accept failure or defeat.

Compassion: Committee members are compassionate when interacting with witnesses, although we see minimal emotion.

Integrity: The committee contrasts integrity of witnesses with that of former President Trump.

Courage: By participating on the committee, Republican members risk backlash from colleagues and constituents; witnesses demonstrate courage by contradicting former President Trump’s claims and, in some cases, his demands.

Accountability: Witnesses stand by their decisions, for example, in refusing to overturn election results.

Authenticity: Some witnesses and committee members come across as more “genuine” than others.

---

Here are the committee’s main claims:

Trump attempted to convince Americans that significant levels of fraud had stolen the election from him despite knowing that he had, in fact, lost the 2020 election:

1. Trump had knowledge that he lost the 2020 election, but spread misinformation to the American public and made false statements claiming significant voter fraud led to his defeat;

2. Trump planned to remove and replace the Attorney General and Justice Department officials in an effort to force the DOJ to support false allegations of election fraud;

3. Trump pressured Vice President Pence to refuse certified electoral votes in the official count on January 6th, in violation of the U.S. Constitution;

4. Trump pressured state lawmakers and election officials to alter election results in his favor;

5. Trump’s legal team and associates directed Republicans in seven states to produce and send fake "alternate" electoral slates to Congress and the National Archives;

6. Trump summoned and assembled a destructive mob in Washington and sent them to march on the U.S. Capitol; and

7. Trump ignored multiple requests to speak out in real-time against the mob violence, refused to instruct his supporters to disband and failed to take any immediate actions to halt attacks on the Capitol.

Comms About Disney Leadership Changes

When companies announce leadership changes, they typically include quotes from outgoing executives, but a Disney press release mentions the head of TV only in passing. The focus of the release is on Dana Walden’s promotion to Chairman of Disney General Entertainment Content. The 817-word statement mentions Tim Rice near the end of the first paragraph:

She will have oversight of ABC Entertainment, ABC News, Disney Branded Television, Disney Television Studios, Freeform, FX, Hulu Originals, National Geographic Content, and Onyx Collective. Walden previously served as Chairman, Entertainment, Walt Disney Television and succeeds Peter Rice, who is leaving the Company. Her appointment is effective immediately, and she will report directly to Chapek.

News reports explains that Rice was fired for differences over creative decisions, compensation, etc. The company statement could have acknowledged a bit more and demonstrated integrity and accountability for the decision; otherwise, the press carries the message.

In Walden’s email to employees, she mentions Rice in the 14th of 16 paragraphs:

In reflecting on my own professional journey, I am very fortunate to have worked alongside Peter Rice for a long time. We have been friends for almost three decades and he was my boss for eight years. He is a gifted executive, and I learned a lot from him. I know you all join me in wishing him the best in whatever he chooses to do next.

Of course, this is the right thing to do—and important for employees who may have loyalties to Rice. I respect that she didn’t sugarcoat his departure (and at least Disney isn’t claiming the weasley “mutual agreement” reason for leaving).

As always, leaders communicate by what they say and what they omit. This situation also illustrates a question for business communication students: is this bad news, good news, or a persuasive message? I would argue that it’s all three, depending on your perspective.

PGA Commissioner Sends Letter to Suspend Golfers

After a new golf tour has wooed Professional Golfers’ Association players, the association announced that they are no longer eligible to play in the PGA. The commissioner’s letter is an example of bad news for those who accepted the opportunity from the LIV Golf Invitational Series, a Saudi-backed organization, and it’s an example of persuasive communication for those who might consider doing the same.

In his letter, Commissioner Jay Monahan justifies the decision, using the word “regulations” several times. He mentions that players didn’t get proper releases for the conflict and blames players for making a “choice for their own financial-based reasons.” Monahan also appeals to a wide audience when he writes, “But they can’t demand the same PGA Tour membership benefits, considerations, opportunities and platform as you. That expectation disrespects you, our fans and our partners.”

Monahan uses strong language throughout and calls out specific players at the end of the letter, which players received while they were in the middle of a tournament. He demonstrates courage by facing some backlash, and he demonstrates some vulnerability by acknowledging, “What’s next? Can these players come back?”

The PGA is also holding players accountable, although not everyone agrees. In a statement, LIV Golf calls the decision “vindictive” and promises further action. The brief tweet is a notable counterweight to the PGA’s two-page letter. Students may analyze both in terms of tone, audience focus, content choices, and organization.

Argument Linking Marijuana to Violence

A Wall Street Journal opinion is a good example of a persuasive argument for business communication students to analyze. The articles uses logical arguments, emotional appeal, and credibility; evidence is stronger for some points than for others.

The author provides research to support increased marijuana use in young people and to link marijuana use to mental illness and hospital visits. Is the evidence linking use to violence strong enough to convince students? The first study referenced studies of teenagers with mood disorders; the second is a meta-study that concludes, “cannabis use appears to be a contributing factor in the perpetration of violence.” Both are from credible sources and illustrate data analysis principles from Chapter 9 in the text.

I find the article title, “Cannabis and the Violent Crime Surge,” a misleading stretch. Coming just days after an elementary school school shooting—and when gun violence is a news mainstay—the WSJ implies a conclusion that I don’t see in the evidence. The author uses an example as evidence: the Uvalde, Texas, shooter apparently had a history of smoking marijuana. In addition, the argument is complicated by the claim that the shooter was NOT smoking at the time. Yet, he could have been experiencing detox, which may include anger and irritability. The author doesn’t include these points.

The author ends with, “Maybe it’s time that lawmakers and voters rethink their pot-legalization experiment before more young lives are damaged.” Do students agree?

Image source.

Starbucks CEO Letter to Partners

After his first month back as CEO, Howard Schultz posted a letter to employees, promising changes. As Starbucks faces labor shortages and more unionized stores, Schultz is doing his best to quell further unrest—and to return to the HR practices, such as benefits for part-time employees back in 1988, that gave the company the reputation as a good employer.

I wonder how this letter “lands” with employees. Is it specific enough? Does it address their bottom-line needs, like enough pay to buy gas and keep up with rent? For example, what does a $1 billion investment mean for the average worker? Also, although not explicit here, reports say that pay increases will apply only to nonunion stores, which has raised legal questions.

These questions also raise issues of leadership character. Is Schultz demonstrating integrity, particularly transparency, in his letter? Otherwise, this is a typical positive-news letter. He demonstrates compassion and empathy and conveys hope. A feel-good video shows Schultz with partners and their ideas for the future.

---

Dear Partners:

Over the past month, I’ve traveled the country and met with thousands of you from our retail stores and all five roasting plants as we embark on co-creating the future of Starbucks.

The conversations we had were both humbling and inspiring. I heard about the challenges and frustrations you have faced. I heard how hard it has been during the pandemic, and the strain caused by accelerating demand and customer behaviors that have changed. I heard how your experience doesn’t always feel like the Starbucks you used to know or thought it would be.

You also voiced a great deal of hope: hope that meaningful change is possible; hope that Starbucks will restore our leadership in offering new and innovative investments that truly make a difference in your lives; and hope that we will reintroduce joy and connection back into the partner experience and make you proud.

The most important thing we must do in this moment is affirm unequivocally that to be a partner means:

• You have the pay, benefits, and stability you need, so you can focus on your aspirations

• You have everything you need to have the best shift, every shift

• You are recognized and celebrated for who you are

• You are part of co-creating the future of Starbucks. You have a voice, you feel heard, you can make a difference

As a direct result of your feedback, we are now making additional investments to lift up Starbucks partners and the store experience, contributing to the $1 billion in investments we are committing to the partner and store experience this year alone. Some of the new and more immediate changes you can expect are:

• Doubling training hours in our stores

• Pay increases that will apply to all U.S. store partners while recognizing and rewarding tenure

• Reintroduction of the Black Aprons, Coffee Master program and Leadership in Origin trips to our coffee farm at Hacienda Alsacia

• New collaboration tools and programs, including a new partner app for easier access to communication, information and resources

That’s just the start. We are also prioritizing and accelerating investments in equipment and technology, enhancements to digital tipping, a financial stability toolkit benefit, and recognition and career development, all with your input. Our history shows that working together is always the best way to transform and elevate the experience we deliver to you, to our customers and to the communities we serve.

As I shared with you last month, love and responsibility are what brought me back to Starbucks: my love of the company and my deep responsibility to our partners and shareholders. Hearing from so many of you since my return has only deepened my commitment and affirmed the need to take bold action to restore your trust and belief in Starbucks. I could not be more optimistic or confident in our next chapter that is now underway.

Onward with gratitude,

Howard

McKinsey Testifies About Role in Opioid Crisis

McKinsey’s managing partner testified about what the U.S. Oversight Committee considers a conflict of interest and issue of integrity: consultants worked for drug manufacturers like Purdue Pharma while working for the federal government. Several communication examples illustrate business communication principles:

The Committee’s full report, a 53-page analysis of the situation

The Committee’s press release about the hearing, which includes a summary of the report

Both persuasive communication examples use descriptive message titles throughout the report and provide evidence under each claim. The claims (main points) focus on McKinsey’s questionable actions, particularly how its private and public work may have influenced the other and how the company may have failed to disclose conflicts of interest.

Testimony during the hearing also illustrates persuasion communication. Here are two examples:

• Jessica Tillipman, Assistant Dean for Government Procurement Law Studies, George Washington University Law School    

• Bob Sternfels, Global Managing Partner, McKinsey & Company    

In addition to integrity, as Carolyn B. Maloney said in her opening, this situation is also about accountability and humility. Of course, compassion is a subcurrent throughout, with several impassioned comments about the toll of opioids, including Fentanyl.