Restaurant Closes and Owner Says Little

Guy's American Kitchen and Bar in Times Square, NYC, will close after just five years and plenty of controversy. The owner, Guy Fieri, has a big personality and has been known to be defensive when criticized. After a scathing 2012 review of the restaurant, Fieri went on the Today show to voice his reaction:

"I thought it was ridiculous. I mean, I've read reviews —- there's good and there's bad in the restaurant business, but that to me went so overboard, it really seemed like there was another agenda."

"The tone, the sarcasm, the question style."

"To me, it's impossible to come in and have a dining experience and have every single thing is wrong, unless you come in with a different agenda and you want to sensationalize something and you want to blow it out of the water. It's a great way to make a name for yourself — go after a celebrity chef that's not a New Yorker that's doing big concept in his second month. Great way to hit it."

Now, Fieri isn't saying much about the decision to close. The restaurant website homepage, shown here, looks like business-as-usual, and Eater reports an "update" on its article:

"Update: In a statement to Eater via a spokesperson, Fieri did not shed light on the reason for the closure, but noted he is 'proud' of serving millions of people throughout the years and thanked his team."

Discussion:

• Compare the process of closing this business with that of Book World, also recently announced. How do the companies' approaches differ? 
• Fieri could demonstrate some humility and vulnerability, but we don't see much. How could a different reaction help him?

Book World Announces Closing

The country's fourth-largest bookstore is closing the last of its 45 stores. Communicating such bad news is difficult for any leader. Book World was a family-owned business since 1976, which probably makes the decision even more painful.

The announcement, including book liquidation plans, is posted on the company's website. We see some of the writers' personality with the abundant use of exclamation points. Otherwise, the message is fairly straightforward.

Discussion:

• How do we see Book World's leaders demonstrating authenticity and vulnerability in this post?
• What's your view of the exclamation points? When is it appropriate to use these marks in business writing, and when is it overkill?
• What else, if anything, should the Book World statement include?

Amtrak Leaders Take Responsibility

Amtrak's leaders have apologized for a train crash in Washington that left three people dead and about 100 more injured. Two of the men who died were train enthusiasts who traveled together to experience the new route.

In the past, Amtrak has been slow to apologize. This time, the response is better, yet not enough for some, as you see in this response on Twitter.

The president and CEO's full message is below:

To our customers,

On behalf of everyone at Amtrak, I want to share that we are deeply saddened by the tragic event involving train 501 on December 18th. We are profoundly sorry for those who have lost a loved one, were injured, or are otherwise impacted by this horrible event. At this time, our primary concern continues to be caring for our customers and employees, and we are using every available resource to assist those affected. We share everyone’s sense of urgency to identify exactly what caused this to happen, and we continue to fully cooperate with the investigation being led by the NTSB.

If you are traveling with us during the holiday season, I want to assure you that Amtrak remains committed to your safety. Our primary focus is and will always be getting you to your destination safely, comfortably, and efficiently. We are truly privileged to serve you and thank you for your continued patronage.

Richard Anderson

As always in these situations, Amtrak provided regular service updates on its website, and this apology is an improvement. But, after several similar crashes, including those involving MTA trains, people want to know what will be done to prevent this from happening again.

Discussion:

• What's your view of the president's message? How well does the message meet principles of apologies?
• What else should the organization do now? How can it rebuild its image and assure people that Amtrak trains are safe?

Morgan Spurlock Admits Sexual Misconduct

Documentarian Morgan Spurlock published an account of his sexual conduct, admitting, "I am part of the problem." He demonstrates vulnerability and describes a situation which a woman describes as rape. He also admits that he was "unfaithful to every wife and girlfriend I have ever had." Spurlock is the first public figure who admitted misconduct before he was accused.

His most famous movie was Super Size Me, which criticized McDonald's for unhealthy food. Super Size Me 2: Holy Chicken! was going to premiere at the Sundance Film Festival but will be withdrawn. In addition, Spurlock's production company, Warrior Poets, announced that he will step down:

On behalf of Warrior Poets, we as partners have always supported our company and its endeavors. As of today, Morgan Spurlock will be stepping down effective immediately.

We will continue to lead the company as equal partners, producing, distributing & creating from our independent production company.

Respectfully,
Co-Founder & Partner Jeremy Chilnick
and Partner Matthew Galkin

Discussion:

• What's your view of Spurlock's statement, which some call a "confessional"? Some consider it trite, while others applaud his openness.
• Was it best for Spurlock to step down from Warrier Poet? Why or why not?

Podcast About Using LinkedIn for Networking

In this 8-minute podcast, hear how Lizzie, a Cornell University student, musters up the courage to contact people on LinkedIn for informational interviews. Her message is shown here.

Amy Newman with Lizzie on LinkedIn

Chipotle Announces Search for New CEO

After founding the first Chipotle restaurant in 1993, Steve Ells will leave his position as CEO and become executive chairman. Chipotle locations have struggled with food safety issues since 2008, when customers at a La Mesa, California, restaurant came down with hepatitus, and 54 Kent State students were affected by norovirus at a local restaurant. Since then, other locations have been affected by these illnesses as well as Salmonella and E. Coli.

Company stock has suffered, and this move signals a hopeful change. It's a tough spot for the company's board because Ells has been the face of Chipotle for so long, but the situation has not improved despite efforts for better food safety and new menu items, such as queso dip, which was not well received.

In a company press release, Ells is quoted:

“I am incredibly proud of Chipotle and our people – and grateful to our loyal customers – and while we are continuing to make progress, it is clear that we need to move faster to make improvements,” said Ells. “Simply put, we need to execute better to ensure our future success. The Board and I are committed to bringing in an experienced leader with a passion for driving excellence across every aspect of our business, including the customer experience, operations, marketing, technology, food safety, and training.”

Added Ells, “Bringing in a new CEO is the right thing to do for all our stakeholders. It will allow me to focus on my strengths, which include bringing innovation to the way we source and prepare our food. It will ultimately improve our ability to provide our guests with delicious food that is prepared with high quality ingredients that are raised responsibly and served in a way that is accessible to everyone. I am confident that this will allow us to deliver value for our shareholders, and provide rewarding opportunities for our employees. Chipotle has vast unrealized potential. As we work hard to restore our brand, I believe we can capitalize on opportunities, including in areas such as the digital experience, menu innovation, delivery, catering, and domestic and international expansion, to deliver significant growth.”

The board chair is also quoted, speaking highly of Ells:

“Steve is a visionary leader and one of the most successful restaurateurs in history, having grown Chipotle from a single restaurant in Colorado to more than 2,350 restaurants today. Steve made the decision, and the Board agreed, that now is the right time to identify a new CEO who can reinvigorate the brand and help the company achieve its potential. We are committed to recruiting a world-class CEO for this incredible opportunity.”

Discussion:

• Read the entire press release. What is not said? Should the release include anything else? 
• How well does Ells's quote inspire confidence in the future of the brand? What parts do you find most and least convincing?
• Who are the audiences for the press release? What are the company's objectives?
• In a sense the board is demonstrating vulnerability. How would you describe their approach, and how effective do you think this is?

Uber's Recovery Problem

Uber's new CEO Dara Khosrowshahi may be having a tougher time than he anticipated. New charges have been issued against the company, including paying off a hacker to keep quiet about stolen customer information.

An analyst on Bloomberg said, "The payment of ransom is egregious, and the lack of investment in proactive cybersecurity measures...was beyond the pale." Other industry experts agree. “I was shocked,” a CTO officer at Menlo Security Inc. “Companies need to own up.” The board recently began an investigation into the $100,000 payment, and they terminated the chief security office and another employee as a result.

Before this incident, Bloomberg reports that Khosrowshahi was already apologizing for the company's past actions:

Since he took over, London moved toward outlawing the service, citing “a lack of corporate responsibility.” Uber is appealing. (“I apologise for the mistakes we’ve made,” Khosrowshahi said in response.) He then traveled to Brasilia to meet with officials there and ward off restrictions on Uber’s business. (“In the past, we were a bit aggressive,” he told a Brazilian newspaper.) And now the mishandled data breach. (“We will learn from our mistakes.”)

I will argue what I have in the past on this blog in my new book on Building Leadership Character: Travis Kalanick lacked humility. He believed he was above the law and therefore wouldn't be help accountable for anything.

Discussion:

• Do you agree with my assessment of Kalanick? Why or why not?
• What can Khosrowshahi do to rebuild the company image?

Air Force Admits Failure

The U.S. Air Force admits it didn't properly report Devin P. Kelley's history to federal law enforcement. The error is critical because Kelley's violent past may have prevented him from buying guns he used to kill 26 people in a Texas church. Kelley spent 12 months in prison and left the Air Force with a "bad conduct" discharge after harming his wife and child.

Air Force spokeswoman Ann Stefanek said, "Initial information indicates that Kelley's domestic violence offense was not entered into the National Criminal Information Center database." This omission led to Kelley's passing the background check before he could purchase guns at a firearms retailer.

Of course, the incident raises bigger questions about how often relevant background information is not reported about former service members. U.S. Air Force Sec. Heather Wilson appeared on MSNBC's Squawk Box to admit the failings during a televised interview. When asked whether she was concerned about possible liability from victims' families, she said, "No, I'm more interested in responsibility. And we've taken responsibility, and we're going to find out what happened and fix it.”

Image source.

Discussion:

• The Air Force has readily admitted a critical failing, which could have led to 26 deaths. Why would the organization choose this disclosure?

• Describe how Wilson is demonstrating vulnerability. What are the potential downsides?

Comparing Data About Drug Overdoses

We can talk about the opioid crisis and try to persuade people in many ways: by telling stories, showing pictures, or presenting data. The number of deaths from all drug overdoses in 2016 is 64,070, but without more context or comparisons, it's hard to know what this number means. Is it a lot?

One important data point for context is the U.S. population, which is about 324 million. Still, does this convince you this is a "crisis," as the media calls it?

One convincing approach is to compare the number of deaths. When we compare the figure to deaths from car accidents, AIDS, and the Vietnam War, we see that, indeed, the deaths from drug overdoses are significant-at least compared to other death tolls we consider significant.

Here's an example of a simple bar chart to represent these numbers visually.

Image source (pills).

Discussion:

• What other comparisons could work well to convince an audience that drug addiction is a serious issue?
• A different approach is to personalize the crisis. I heard an interview with someone who almost died from an overdose, and he said that, about every six months, someone he knows dies from an overdose of opioids. How compelling do you find this report? What are the potential downsides of using this type of description?

NFL Owner Criticized for Comment

The owner of the Houston Texans has apologized for a comment he made when describing protests around players kneeling during the national anthem. For weeks, the NFL has struggled with its response, and now the situation is exacerbated by inflammatory comments. Owner Bob Nair said, "We can't have the inmates running the prison," as he expressed concern about the league's revenues.

Players were offended by the comment and, according to an ESPN report, considered a walkout. One player, Andre Hopkins, skipped practice. A Mashable writer explains sensitivities around the comment:

This, of course, is not a very sensitive thing to say given the context of the protests: started by Colin Kaepernick as a means of protesting the police-involved killings of unarmed black men, continued by a group of mostly black players, facing criticism and pressure from a group of mostly white owners concerned about their bottom line.

Nair did apologize in a statement: 

"I regret that I used that expression. I never meant to offend anyone, and I was not referring to our players. I used a figure of speech that was never intended to be taken literally. I would never characterize our players or our league that way, and I apologize to anyone who was offended by it."

Image source.

Discussion:

• What's your reaction to the comment: offensive, no big deal, or something else?
• How well does Nair's apology meet criteria for good apologies?
• How well does Nair demonstrate vulnerability in this situation?

Criticism of Kevin Spacey's Statement

Actor Anthony Rapp has accused fellow actor Kevin Spacey of sexual assault when Rapp was 14 years old. Rapp is known for his roles in Rent, Star Trek: Discovery, and A Beautiful Mind, while Spacey has a long history of movie credits and is currently co-starring in House of Cards.

Spacey responded to the allegations with an apology statement, and he took the opportunity to come out as a gay man. He is facing harsh criticism for deflecting attention away from the situation and for possibly linking being gap to pedophilia, an unfounded but common association.

Susan McCarthy, who manages SorryWatch, created "Bad Apology Bingo" and "Bad Apology Bingo Two" as lessons for what not to include in an apology statement. 

In addition to the public backlash, Netflix has announced that House of Cards, currently filming its sixth season, will not film a seventh. Also, Spacey will not receive the special Emmy award that was planned for new month.

Discussion:

• What's your view of the Spacey's response and the backlash?
• Did Netflix and the Emmy Awards do the right thing? Why or why not?

President Trump's Call to a Widow

The media has covered a phone call between President Trump and Myeshia Johnson, whose husband, La David, was a soldier killed in Niger. In an interview on Good Morning America with George Stephanopoulos, Johnson describes what the president said on speakerphone in her car:

"The president said that he knew what he signed up for, but it hurts anyways. It made me cry because I was very angry at the tone of his voice and how he said it. He couldn't remember my husband's name… I heard him stumbling on trying to remember my husband's name, and that's what hurt me the most."

President Trump replied to the controversy in a tweet: 

White House Chief of Staff John Kelly, who lost a son in Afghanistan, said the president had asked him, "What do I say?" when he was preparing to call four families. Kelly defended the president:

"In his way, [he] tried to express that opinion -- that (Johnson) is a brave man, a fallen hero. He knew what he was getting himself into because he enlisted. There's no reason to enlist, he enlisted. And he was where he wanted to be with exactly the people he wanted to be with when his life was taken. That was the message. That was the message that was transmitted."

Offering sympathy, as we discuss in Chapter 6 of the book, is never easy. Perhaps President Trump could have shown some vulnerability-a natural hesitation or discomfort in offering compassion.

Image source.

Discussion:

• Because we don't have a recording of the interaction, it's hard for us to judge what happened. In addition, an important missing element is tone. How do you think that might have affected how the message was received?
• Other than the phone call itself, how could President Trump have handled this situation differently?

#MeToo Campaign

Women in every industry are showing empathy and compassion to those who have suffered from sexual harassment and assault. After exposure of Harvey Weinstein's years of sexual harassment, women are coming forward on social media to say they, too, have been victims.

Social media connects people, but often those connections are negative, with online bullying and harassment getting the most attention. Now people are showing their vulnerability and coming together in solidarity to stop what many believe is a pervasive practice.

The latest women to admit their experience are in the U.S. Senate, including Senators Claire McCaskill and Mazie Hirono. 

A writer The Washington Post commends women who speak out, but she warns that not everyone has to:

Plenty of people talk about how brave it is to speak out, and they're right. It is brave to speak out, but that doesn't make you a coward if you don't.

Image source.

Discussion:

• What is empathy, and how does it differ from compassion?
• How is the hashtag #MeToo helpful?
• To what extent do you agree with the Washington Post writer's view? Read her entire article first.

Tarantino Admits to Knowing More

As more female victims come forward to describe Harvey Weinstein's sexual harassment behavior, one male celebrity admits to knowing and doing not enough about it at the time. Director Quentin Tarantino said, "I knew enough to do more than I did," and "There was more to it than just the normal rumors, the normal gossip. It wasn't secondhand. I knew he did a couple of these things."

Tarantino cited incidents with women including his former girlfriend Mira Sorvino and also said, "I wish I had taken responsibility for what I heard," and "If I had done the work I should have done then, I would have had to not work with him."

The director regrets not seeing the larger pattern of abuse and demonstrates vulnerability when he admits, "Anything I say now will sound like a crappy excuse," and "I chalked it up to a '50s-'60s era image of a boss chasing a secretary around the desk," he said. "As if that's O.K. That's the egg on my face right now."

Unsurprisingly, Tarantino says others close to Weinstein also knew and did nothing to stop the abuse.

Above is a picture of Tarantino in the movie Pulp Fiction.

Image source.

Discussion:

• What's your reaction to Tarantino's statements?
• In what ways is Tarantino demonstrating vulnerability?
• Why do you think he's coming forward now? Why haven't other Hollywood men come forward? Should they?

Harvey Weinstein's Plea

Harvey Weinstein may have worsened his case by sending emails to friends asking for their defense. After several allegations of sexual harassment and at least two charges of assault over decades, the Hollywood producer's board of directors was getting ready to fire him from the company. Not willing to go quietly, Weinstein emailed people, including Jeffrey Katzenberg, the chairman of Walt Disney Studies. But he didn't get the response he was expecting.

Weinstein's email is below. He demonstrates some vulnerability but fails to take full responsibility, instead saying "a lot of the allegations are false as you know":

My board is thinking of firing me. All I'm asking, is let me take a leave of absence and get into heavy therapy and counseling. Whether it be in a facility or somewhere else, allow me to resurrect myself with a second chance. A lot of the allegations are false as you know but given therapy and counseling as other people have done, I think I'd be able to get there. 

I could really use your support or just your honesty if you can't support me. 

But if you can, I need you to send a letter to my private gmail address. The letter would only go to the board and no one else. We believe what the board is trying to do is not only wrong but might be illegal and would destroy the company. If you could write this letter backing me, getting me the help and time away I need, and also stating your opposition to the board firing me, it would help me a lot. I am desperate for your help. Just give me the time to have therapy. Do not let me be fired. If the industry supports me, that is all I need. 

With all due respect, I need the letter today.

Instead, Katzenberg emailed Weinstein and made his response public. In part, he says, "You have done terrible things to a number of women over a period of years," yet Katzenberg calls him a friend and offers his help.

An interesting part of this story is the criticism of men who have come forward with a preface such as, "As a father of two daughters." A writer for Vulture explains this perspective.

Image source.

Discussion:

• What's your view of Weinstein's letter to his friends? What other approaches could he take knowing his board is planning to fire him?
• How do you assess Katzenberg's response and his choice to make the email public? Is he a bad friend? What is he trying to accomplish for himself and for Weinstein in his response?
• Finally, what's your view of people referencing their wives and daughters? Is the Vulture writer's perspective spot on, too harsh, or something else?

Equifax Visits Congress

Former Equifax CEO Richard Smith admitted failures during a House Energy and Commerce Committee hearing. Smith had already apologized in a video statement, but during the hearing, he mentioned his personal accountability:

"The criminal hack happened on my watch. I am truly and deeply sorry for what happened."

Yet critics say that Equifax is still not taking full responsibility. A TechCrunch article highlights Smith's testimony blaming one person: 

"The human error was that the individual who's responsible for communicating in the organization to apply the patch, did not."

The TechCrunch writer seems to think this is ridiculous:

"The notion that just one person didn't do their job and led to the biggest breach in history is quite an amazing claim and shows a fundamental lack of good security practices. But that's what Smith says led to this disaster."

Smith and Equifax's CIO retired from the company after the news became public, which took a while: executives apparently knew about a software issue back in March, but the company didn't announce the breach until September.

A Wired article cites "6 Fresh Horrors from the Equifax CEO's Congressional Hearing." In addition to the delayed admission, the article attack's Equifax's technology, including inadequate patching, failure to encrypt data, limited security reviews, and insufficient website capabilities.

Another twist is this case is why three top people in the company sold $1.8 million in stock around the time they would have learned of the breach. Smith denies questions of integrity:

"I've know these individual for up to 12 years. They're men of integrity. I have no indication that they had any knowledge of the breach when they made this sale." 

Image source.

Discussion:

• Assess Smith's testimony. What parts do you find most and least convincing? 
• What else, if anything, should Equifax do now to rebuild trust?
• In what ways is this case an issue of integrity?

Harvey Weinstein Apologizes for Sexual Harassment

Revered Hollywood producer Harvey Weinstein has been accused of sexual harassment, and he has apologized. A New York Times article cites "decades" of sexual harassment, including regular reports of women seeing Weinstein partially or fully naked. Women also report being asked for massages and other sexual activities, but few reported them at the same.

He submitted a written apology that meets many of the criteria for a good apology, yet a reporter on The Daily described a different conversation with Weinstein. She indicated that, over the phone, Weinstein's response was more "complicated." She says that he denied some aspects of the accusations, and indeed, his attorney has said, "he denies many of the accusations as patently false."

Image source.

Discussion:

• Read the NY Times article. How credible do you find the women's reports? Which are more credible than others?
• To what extent do you find Weinstein's written statement credible? How would you explain some of the contradictions between the statement and the quotations from him and his lawyer? 
• In part, Weinstein describes another time, when his behavior was considered acceptable. (Think Mad Men.) Do you buy this argument? Why or why not?

Miracles Happen: An Apology from Uber

The typically non-apologetic Uber is apologizing. Two factors likely caused the company's change: 1) a new CEO, and 2) losing its operating license in London.

The new CEO has already demonstrated his vulnerability by talking about his emotions and showing us more of who he is as a person. An article in The Guardian explains why the city decided not to renew the company's license, which expires September 30:

TfL [Tranport for London] said last week Uber was not a "fit and proper" private car-hire operator and cited four areas of concern, including its approach to reporting criminal offences and carrying out background checks on drivers. But sources close to TfL indicated that a change of conduct from the taxi firm, the culture of which is being reformed by its new chief executive, could leave the door open to a fresh licence application.

The London decision is a blow for the ride-sharing company, and Uber is doing what it can to rebuild its image.

London Mayor Sadiq Kahn responded to the apology: 

"I welcome the apology from Dara Khosrowshahi, the Uber CEO. Obviously I am pleased that he has acknowledged the issues that Uber faces in London. Even though there is a legal process in place, I have asked TfL to make themselves available to meet with him."

Image source.

 Discussion:

• Assess Khosrowshahi's apology. What works well, and what could be improved? (Hint: What organization principles apply?)
• What is the value of an apology? In this case, how does Uber's apology help its position with London?

President Trump Criticized for Incorrect Country Name

In a speech during a lunch with African leaders, President Trump mentioned the African country "Nambia," but no such country exists. Critics took to Twitter and other social sites to slam the president for "inventing" or "making up" a country. The reference in this tweet to Covfefe is a word President Trump used in a tweet earlier this year without explanation; it was likely a typo.

Yet the president's facts were correct for Namibia, and rather than "inventing" a country, the president likely just mispronounced its name.

Critics also took issue with the president's characterization of Africa as a business opportunity: "I have so many friends going to your countries trying to get rich. I congratulate you, they're spending a lot of money."

Discussion:

• Are we too harsh? Should we overlook the mispronunciation, or should the president be more careful?
• What's your view of the president's saying Africa is a "tremendous business opportunity"?
• Should President Trump correct the mistake? How?
• How does humility factor into this situation-both the public's and President Trump's?

iPhone X Face ID Doesn't Work During Presentation

During Apple's big presentation to unveil and show features of the iPhone X, the Face ID program didn't work.

The presenter, Craig Federighi, SVP Software Development, reacted briefly when the passcode screen came up. Then he said, "Let's try that again." He picked up another device, and the feature worked.

What happened? Verge reports that it probably wasn't a problem Face ID. Rather, the passcode screen came up as a precaution just as it would on earlier versions when you restart your phone or when you haven't used it for a few hours.

Still, it was tough moment for Federighi.

Things often go wrong during presentations but, as is the case for more serious company crises, how the situation is handled is sometimes remembered more than initial issue.

Image source.

Discussion:

• How well did Federighi handle the situation? What, if anything, could he have done differently?
• Apple has been quiet on the issue. Should the company explain what happened? If so, in what form, and what should they say?
• In this small moment, do we see authenticity from Federighi? What does he tell us about who he is as a person?