Ikea's Diversity Ad

Ikea Canada is making a statement with a video set to "What a Wonderful World."

The spot starts with the song lyrics, "Seems to me, it's ain't the world that's so bad, but what we are doing to it." Then, a little girl looks out the window of a car as she narrates from the song what she sees-and we see images of different people. First up are two teenage girls exchanging corsages. Next, we see someone putting up solar panels, and then laundry drying outside.

An editor for Creativity-Online analyzes the approach. As the "Editor's Pick" states, Ikea is putting its mark on what the company deems important.

But in such a divisive political time, the ad is risky. Not everyone has the positive feelings Ikea is promoting when they see refugees or a woman breastfeeding.

Discussion:

• What do you think Ikea considered before producing this video? The company took some calculated risks.
• What's your view of the ad? Do you find it heartwarming, offensive, cheesy, or something else?

Uber's New CEO Is the Kalanick Opposite

Dara Khosrowshahi, Uber's new CEO, talks about his emotions, and he's getting big points in the media. An Inc. article applauds his vulnerability in saying to Expedia colleagues, "I have to tell you I am scared." His final email to staff continues:

I've been here at Expedia for so long that I've forgotten what life is like outside this place. But the times of greatest learning for me have been when I've been through big changes, or taken on new roles--you have to move out of your comfort zone and develop muscles that you didn't know you had.

Uber has been promoting Khosrowshahi's human side, a smart strategy to humanize the company after months of scandals under founder Travis Kalanick. In the board's email to employees, they started with the story of Khosrowshahi's immigration:

Team,

We are delighted to announce that Uber's Board has voted unanimously to appoint Dara Khosrowshahi to be our new CEO.

Dara came to America at nine years old when his family escaped Iran on the eve of the Iranian Revolution. He grew up in Tarrytown, N.Y., trained as an engineer at Brown, and spent many years at IAC serving as Chief Financial Officer and in various operational and strategic roles.

In 2005, he became CEO of Expedia, which he built into one of the world's leading travel and technology companies, now operating in more than 60 countries. He has four children and not surprisingly loves to travel, one of his favorite trips being to the Angkor Wat temples in Cambodia where his wife Sydney said yes to marrying him.

We're really fortunate to gain a leader with Dara's experience, talent and vision. The Board and the Executive Leadership Team are confident that Dara is the best person to lead Uber into the future building world-class products, transforming cities, and adding value to the lives of drivers and riders around the world while continuously improving our culture and making Uber the best place to work.

Dara will be joining us tomorrow, August 30, for an All Hands. Add your questions for Dara here, and stay tuned for a calendar invite with more details. He'll also be meeting with employees around the world in smaller groups over the next few weeks, and spending time with drivers.

Please join us in welcoming Dara on what promises to be an exciting ride!

-Yasir, Garrett, Matt, Ryan, Arianna, Travis, Wan Ling & David

For his part, Khosrowshahi introduced himself to staff as a fighter and a "no-B.S." leader:

"First, I am going to be totally transparent with you. I am not going to B.S. you. The thing that I've found in life and in management is that the higher up you get in an organization, the less you really know about what's going on. Because people start holding back, and they are afraid to tell you what's going on. The only way that I've seen to combat that is to be absolutely honest with you and to be completely straight and authentic with you. Hopefully that will allow me to deserve the same right back from you. I'm not going to B.S. you and I will ask you not to B.S. me.

Second, I'm a fighter. I'll fight with you. I don't like war metaphors, it's kind of a male metaphor, but we're in a battle here and I think everybody knows it. Just know that I'm here, I made the decision, I am all in and I'm going to fight for you with everything in my body. I hope you'll join me in that battle.

And last, I will know that I've succeeded here if everybody in this room and who is watching all over the world knows they can contribute to the success of Uber in their own way. Everyone's different, everyone has their own skillsets-if you're numerative or have a higher EQ, if you're here in the US or in a global office, if you're a dev, if you're in marketing, if you're in PR, or ops or regardless of your gender or your beliefs-everyone is going to participate and contribute in their own way. And if everyone feels like they can and they can be themselves but they can also be Uber, then I know I've succeeded. That's my goal."

The line about "B.S." makes me wonder: what's the alternative? I have a similar reaction when people say, "I'll be honest with you." Why would I assume anything else?

Image source.

Discussion:

• How well do you think Khosrowshahi and how he's positioned will humanize the Uber brand? What else, if anything, can the company do at this point?
• To what extent do you agree with my skepticism about his promise for no "B.S."?
• To what extent do you agree with the Inc. writer's conclusion about Khosrowshahi's vulnerability?
• Khosrowshahi's last point in his talk with employees is about authenticity, being yourself at work. How do you think employees would react to his statement?

How Not to Apologize

The owner of a bar in Crown Heights, Brooklyn, has faced her critics but didn't handle the apology well. Former corporate tax attorney Becca Brennan wrote a press release encouraging people to visit her new bar and photograph the wall of bullet holes.

It was a bad joke: the holes weren't from bullets. Brennan played on previous violence in a gentrifying neighborhood. The NY Eater summarizes the issue:

Nostrand Avenue between Eastern Parkway and Atlantic is quickly gentrifying, and increasingly, bars and restaurants targeting young and primarily white new residents have opened. Summerhill may be the first business to capitalize on historic violence and poverty in Crown Heights as a point of the decor - making it an easy lightning rod for existing tensions.

Neighbors took offense, and some considered the promotion racist. Brennan issued an apology:

"I truly never meant it in that way, but I recognize that it was insensitive. I was excited to keep the wall as a shout out to the different businesses that occupied the space before us, but my intention was misinterpreted, and I'm sorry for that."

A month later, a town hall meeting was supposed to ease tensions but didn't. In response to criticism, Brennan said, "I'm sorry I have a sense of humor," and "I'm very sorry you were offended." These are classic mistakes in apology.

From her perspective, Brennan can't say anything right. She told reporters, "I mean, you see me try to talk, and nothing I say will ever be good enough." At the same time, she refuses to cover the damaged wall.

Image source.

Discussion:

• What makes a good apology, and how did Brennan's fall short?
• What would you suggest for Brennan to demonstrate vulnerability?
• Should she cover the damaged wall or stick to her plan, as she says, to "keep the integrity of an 100-year-old building"?
• At this point, how, if at all, can she improve relations with neighbors?

Air Canada CEO Gets Defensive

No one wants to face a reporter's tough questions, but it's best to handle them gracefully. Air Canada's CEO and president Calin Rovinescu got angry during an interview with a Globe and Mail reporter, and it didn't end well.

Rovinescu was asked about bumping a 10-year-old boy when a flight was overbooked, and he responded,

No. I'm not getting into specific customer dynamics with you, Trevor. And that's not what I expected this interview to be about, and I'm happy to end it here if that's-I'm not getting into discussions with respect to specific customer experiences.

The interviewer then asked Rovinescu about weather planning because of climate change, and he was a bit sarcastic, saying they can't do anything to control the weather. Things seem to get worse when the interviewer pushed him about an incident in July, when a plane almost collided with others on the taxiway:

Can you talk to me about pilot error? Just in terms of-

Trevor, I'm not sure I'm loving the direction of your interview here. I thought we were talking about a more generic dynamic around what the airline has achieved.

Instead, Rovinescu could have used the technique of "bridging," or transitioning from the interviewer's question to something more positive about the airline's safety record or plans for the future. He sounded defensive throughout, and the interviewer took advantage by asking tougher questions.

Rovinescu wanted to avoided seeming vulnerable-risking emotional exposure-which just made him more vulnerable and open to harm. A PR Daily article summarizes the issue well:

[Rovinescu] reacted to Cole's questions instead of answering them-and by doing so, unnecessarily increased the negative tone of the article.

Image source.

Discussion:

• Read the reporter's questions. How could Rovinescu have responded to each instead?
• Did the reporter push too much? Were his questions unfair?

BMW Denies Collusion

German automakers felt another blow this weekend when they were accused of colluding. The news came as Daimler recalls 3 million cars, and Audi recalls 850,000 to lower their emissions.

German officials found documents related to a potential technology cartel when looking for evidence about potential anti-trust issues related to steel. To avoid penalties, VW and Daimler admitted meeting regularly with competitors. Spiegel magazine quoted VW as saying five German carmakers met "several times a year" and had been "co-ordinating the development of their vehicles, costs, suppliers, and markets for many years, at least since the Nineties, to the present day."

One area of discussion was about the size of the technology to hold AdBlue, a chemical cleaning substance. Automakers agreed on a smaller tank to reduce costs and allow more room for accessories, such as audio, but this meant less efficient cleaning of exhaust gases.

In a statement, BMW denied the accusations:

"BMW vehicles are not manipulated and comply with respective legal requirements," and "The BMW Group categorically rejects accusations that Euro 6 vehicles sold by the company do not provide adequate exhaust gas treatment due to AdBlue tanks that are too small."

VW may have learned a lesson from the emissions scandal. A New York Times article summarizes how earlier admissions may have helped avoided trouble:

If Volkswagen had been honest with American officials [in May 2014 when Winterkorn received a memo about the inconsistent test results], the damage to the company's reputation and finances would very likely have been serious but not devastating. Similar cases suggest that Volkswagen would have paid a fine in the hundreds of millions of dollars.

Image source.

Discussion:

• Assess BMW's strategy. What principles of persuasion is the company using? What crisis communication techniques would be useful to the company at this point?
• To what, specifically, is VW admitting? What, specifically, is BMW denying?
• Where's the line between meeting and collusion?

Gianforte Apologizes

Greg Gianforte, the Montana Republican candidate running for Congress, "body-slammed" a reporter. The link to audio is at right.

His apology letter has gotten high marks, and it does meet some of the criteria discussed in Chapter 7 for an effective apology. A professor emeritus of management and human resources at the Ohio State University's Fisher College of Business analyzed and annotated the letter for The Huffington Post:

Dear Mr. Jacobs: 

I write to express my sincere apology for my conduct on the evening of May 24. My physical response to your legitimate question was unprofessional, unacceptable, and unlawful [acknowledgement of responsibility]. As both a candidate for office and a public official, I should be held to a high standard in my interactions with the press and the public [acknowledgement of responsibility]. My treatment of you did not meet that standard [expression of regret].

Notwithstanding anyone's statements to the contrary, you did not initiate any physical contact with me, and I had no right to assault you. I am sorry for what I did and the unwanted notoriety this has created for you [expression of regret]. I take full responsibility [acknowledgement of responsibility]

I understand the critical role that journalists and the media play in our society. Protections afforded to the press through the Constitution are fundamental to who we are as a nation and the way government is accountable to the people. I acknowledge that the media have an obligation to seek information. I also know that civility in our public discourse is central to a productive dialogue on issues. I had no right to respond the way I did to your legitimate question about healthcare policy [declaration of repentance]. You were doing your job. 

In the hope that perhaps some good news can come of these events, I am making a $50,000 contribution to the Committee To Protect Journalists, an independent non-profit organization that promotes press freedom and that protects the rights of journalists worldwide [offer of repair].

I made a mistake and humbly ask for your forgiveness [request for forgiveness]. 

Sincerely, 

Greg Gianforte

On Twitter, @SorryWatch also compliments the letter, but she questions the source. The letter was part of a settlement, so perhaps the words aren't Gianforte's own? 

To me, the letter sounds a bit too perfect. Yes, it hits the right components but, for example, who says, "I....humbly ask for your forgiveness"? And some criteria for apologies discussed in the book are missing. It sounds like a lawyer wrote it.

Discussion:

• Quiz question: Which criteria discussed in the book are missing from this apology? These may give us a clue about how the letter falls short overall.
• What's your view of the letter? Is my assessment too harsh?

Covfefe!

Our president will not admit a mistake. In a fit of early-morning tweeting, President Trump probably mis-typed "coverage" as "covfefe."

CNN editor Chris Cillizzi suggested how Sean Spicer might handle the situation when asked:

"The president made a typo. He meant to type 'coverage.' Raise your hand if you've never made a typo on Twitter."

Instead, Spicer said,

"A small group of people know exactly what he meant."

The president tweeted,

"Who can figure out the true meaning of 'covfefe' ??? Enjoy!"

The Administration's response protects the president and asserts his power: he doesn't have to apologize for anything. The tweet came amidst the president's withdrawal from the Paris Climate Accord, so the buzz didn't last long.

Discussion:

• What's your view of Sean Spicer's response?
• How about President Trump's?
• A New York Times article today says lawyers discouraging the president's tweeting. Why do you think that is? Should he follow the advice?

Dove's Shampoo Bottles Touch a Nerve

Dove's latest advertising from the "Real Beauty" campaign was mostly mocked. Shampoo bottles were designed to represent different body types, continuing with Dove's messaging about body positivity. Copy with the ad read,

From curvaceous to slender, tall to petite, and whatever your skin colour, shoe size or hair type, beauty comes in a million different shapes and sizes. Our six exclusive bottle designs represent this diversity: just like women, we wanted to show that our iconic bottle can come in all shapes and sizes, too.

Twitter responses were nasty, including Perez Hilton's round-up. (Read at your own risk.)

But an AdAge article reports little brand damage. A survey of 2,200 Americans found that 41% received a more favorable view of the brand, while only 9% felt less favorable. More people were likely to buy Dove products: 71% or 3 points higher than before seeing the ads.

Image source.

Discussion:

• What's your view of the campaign? Is it "dumb," as Perez Hilton says, or something else?
• How do you account for the disconnect between the nasty reaction (or should we say, the reports of the reaction) and the survey results about the brand?
• Even the most cynical seem to agree that Dove is trying to do a good thing. Does no good deed go unpunished?

Hyundai's Whistleblower

Kim Gwang-ho took a big risk revealing safety issues at Hyundai, his employer for the past 26 years. The engineer reported failures in proper engine checks that could prevent accidents. Whistleblowing is extremely rare, as Kim describes, "I will be the first and last whistleblower in South Korea's auto industry. There are just too many things to lose." He also said, "I had a normal life and was better off, but now I'm fighting against a big conglomerate."

Hyundai denied allegations in a statement, as reported by Reuters: "The company promotes openness and transparency in all safety-related operations, and its decisions on recalls comply with both global regulators and stringent internal processes."

The company also defended its practices, arguing that they were investigating issues before Kim raised them: "Hyundai has taken appropriate steps to ensure safety, quality and compliance with applicable regulations in our markets, including all recalls Hyundai has conducted to date."

Meanwhile, investigators raided Kim's house and confiscated some documents. Kim said, "At first my wife asked me not to do it. She was worried about living costs if I'm fired. But I'm stubborn, and persuaded her that the problems will be buried forever without my confession."

But the company eventually rehired him and reimbursed him for lost work time.

Kim's complaints did inspire the South Korean government to mandate a recall-the first in the country's history. In addition to the 1.5 million cars voluntarily recalled by the Hyundai and Kia, the government requirement adds another 240,000 to the list. 

Image source.

Discussion:

• Analyze how Hyundai is handling this situation and the statements made so far. What could be improved?
• How believable do you find Hyundai's responses? Based on what language or other criteria are you forming your opinion?

United CEO Speaks Out

After an insufficient apology, United CEO Oscar Munoz has changed his tune. In an interview with ABC News, Munoz said, "This first thing I think is important to say is to apologize to Dr. Dau, his family, the passengers on that flight, our customers, our employees. That is not who our family at United is. You saw us at a bad moment."

Munoz also changed his view of the passenger. In a letter to employees, he seemed to blame the passenger, but in the interview, he said Dr. Dau wasn't at fault at all, although he did pause before saying so.

When asked why he didn't communicate "that shame" (he said he was "ashamed"), Munoz said he wanted to get the "facts and circumstances first." He also said his words didn't reflect what they were really feeling.

He explained that the incentive model needs to be re-evaluated because it clearly works better before people have boarded. For the future, Munoz said they will never bring a law enforcement official on a flight to remove a paying passenger again.

Discussion:

• How did Munoz do in the interview? What principles of crisis communication did he demonstrate, and where did he fall short?
• What else should Munoz have said?
• Analyze Munoz's delivery skills. How would you advise him to approach future interviews?
• Southwest and other airlines are taking full advantage of the situation. What are the potential downsides of ads like the one here?