School Board Apologizes for Mocking Parents and Resigns

The Board of an elementary school in California resigned over embarrassing comments on a video call. Board members didn’t realize that they were public when they made disparaging comments about parents wanting schools to reopen. They mentioned that parents miss teachers as “babysitters” and want to be able to use marijuana again.

In response, several board members resigned, and the school district wrote a statement. Within the larger statement is a message from the board members who resigned:

We deeply regret the comments that were made in the meeting of the Board of Education earlier this week. As trustees, we realize it is our responsibility to model the conduct that we expect of our students and staff and it is our obligation to build confidence in District leadership; our comments failed you in both regards, and for this we offer our sincerest apology.

We love our students, our teachers and our community, and we want to be part of the remedy to help the District move forward, returning its full focus to students' needs. To help facilitate the healing process, we will be resigning our positions as Trustees of the Oakley Union Elementary School District, effective immediately. The Superintendent will be working with the Contra Costa County Office of Education to address the vacancies on the Board of Education.

This was a difficult decision, but we hear the community's concerns, and we believe yielding to your request that we step down will allow the District to move forward. Please do not let our failure in judgment cast a shadow on the exceptional work that our teachers, administrators and hard-working employees are doing for the students of this District. They deserve and will need your support as you move forward.

Business communication students will find ways to improve this message. The authors use passive voice in the first statement and weak subjects twice in the first paragraph (“it is”). As an apology, the statement also could do better. Sincere apologies include more about the impact of the act—the damage done. I don’t see that recognition clearly.

Image source.

Lincoln Project Statement

Frank Bruni is right his article, ”When You Don’t Have Trump to Hide Behind: There’s now space for other scandals. Witness the Lincoln Project.” I’ve been missing hearing about improprieties with the shadow of Trump for the past four years. Now trouble at the Lincoln Project, a political group started in 2018 by Republicans to prevent the re-election of the former president, has come to light.

The issue raises questions of integrity. As the organization criticized the former president for his actions, 21 young men accused one founder of sexual harassment, while organization leaders knew of but did nothing about their complaints. In addition, questions linger about whether group leaders misused funds for personal gain.

The one leader accused of “grooming young men online” responded in a statement:

I am so disheartened and sad that I may have brought discomfort to anyone in what I thought at the time were mutually consensual discussions. In living a deeply closeted life, I allowed my pain to cause pain for others. For that I am truly sorry to these men and everyone and for letting so many people down.

The Lincoln Project also issued an official statement. One, dated January 30, isn’t available because of a broken link on the homepage. But another, dated February 14, is below:

The Lincoln Project has retained the law firm of Paul Hastings to investigate allegations of inappropriate behavior by John Weaver as part of a comprehensive review of our operations and culture. The review process is currently underway.

We are committed to creating a positive, diverse, and inclusive workplace environment at The Lincoln Project and inappropriate behavior by anyone associated with the organization will not be tolerated under any circumstances. We have already taken decisive action to address internal concerns. Additionally, we are releasing staff and former staff from the confidentiality provisions in their employment agreements to discuss their workplace environment. Based on the findings of this review we will take all necessary action to correct any issues or deficiencies that are identified.

Concurrently, we are also working with outside counsel and professional consultants to strengthen our corporate governance, finance and operational structure, human resources, and leadership to position The Lincoln Project to further maximize our impact and lean into our important mission advancing democracy.

The Lincoln Project was founded to combat political forces who seek to undermine our democracy. We revolutionized how political action committees operate and spent $81 million last cycle to create and place more than 300 advertisements, host national town halls, conduct voter outreach, and launch a podcast and streaming video network that engaged millions of voters. Eighty percent of our funds went to voter contact and content production. Our historic results speak for themselves.

Moving forward, we have important work ahead of us and we have created a nationwide movement of Americans who support our objectives.

In order to continue fulfilling our promise to our millions of supporters and contributors, we must address any and all internal organizational issues immediately and put in place a governance and diverse leadership structure that reflects our core values and ensures we will continue to attract the best talent available.

The Lincoln Project will continue producing and distributing our popular content and commentary while these reviews are being conducted and we are operating at full capacity.

The statement start is unfortunate and squirrely. Perhaps an apology might be more appropriate? As an apology, if this is the intent, the statement doesn’t work very well. Apologies admit specific wrongdoing, acknowledge the impact, and describe positive steps planning for the future. I don’t see that here.

Companies Leave Ad Agency Over Founder's Remarks

Several companies dropped ad agency Richards Group after the founder referred to a proposed Motel 6 ad as “too Black.” Stan Richards, the firm’s 87-year-old, white founder, also said the ad might alienate the chain’s “white supremacist constituents.” Although the agency created Motel 6’s slogan, “We’ll leave the lights on for you,” the company—along with Cracker Barrel, Home Depot and Keurig Dr Pepper—have ended the relationship. Another customer, The Salvation Army, said it were “deeply concerned” but “encouraged by the fact that Mr. Richards has made an apology.”

The founder made the comments during a Zoom meeting with more than 36 employees and referred to an ad with Black, latinx, and white motel guests. Richards apologized on another Zoom call, and he has been replaced as CEO by Glenn Dady, his planned successor. The company issued a statement on its website, including this quote from Richards:

“If this was a publicly held company, I’d be fired for the comments I made. But we’re not public, so I am firing myself. Our employees, first and foremost, deserve that.”

COVID-19 Crisis Communication for Reopening the U.S.

What comes after we “flatten the curve” of COVID cases? New York Times opinion writer Charlie Warzel warns that, without a clear communication strategy for what’s next, people will distrust leaders.

Warzel cites six communication guidelines from the report of a working group at The University of Minnesota, The Center for Infectious Disease Research and Policy (CIDRP).:

• Don’t Over Reassure.

• Proclaim Uncertainty

• Validate Emotions—Your Audience’s and Your Own

• Give People Things to Do

• Admit and Apologize for Errors

• Share Dilemma

Discussion:

• How should U.S. officials communicate now? What do they need to accomplish, and how well are our current leaders meeting the challenge? In other words, do you agree with Warzel that our leaders are falling short?

• Read the entire report. What other principles does the group recommend?

• Analyze the report: the audiences, objectives, writing style, organization, and so on. What are the strengths, and how could it be improved?

A Leader Example in My Book Is Charged With Conspiracy

I was sad to see that Paul Kruse, former CEO of Blue Bell Creamery, has been charged with covering up the listeria breakout in 2015. In my book, Building Leadership Character, Kruse is a positive example of a leader who demonstrates vulnerability. His 2016 video announcing employee layoffs after the breakout was emotional and authentic.

Prosecutors say that Kruse delayed recalling tainted products, instructed employees to tell customers that product delays were caused by mechanical problems, and failed to take other appropriate action.

Blue Bell agreed to pay $19.5 million to the Department of Justice and posted a statement on its website, which focuses more on the future than on the past.

Discussion:

• Can you reconcile both perspectives of Kruse as a leader? Could he be someone who covers up listeria and someone who gets emotional when talking about employee layoffs?

• Assess the company’s statement. Who are the audiences, and what are the communication objectives?

Employees Seek Better Benefits from Applebee's and IHOP

Employees of Applebee’s and IHOP are asking for better benefits from the restaurants’ parent company, Dine Brands.

The group’s website, Applebeesisrotten, paints a dire picture of the impact of the pandemic on restaurant workers and asks people to sign their petition for “comprehensive paid sick leave, paid family and medical leave, and income relief to all works.”

A tweet posted on April 22 indicates that company executives haven’t responded to the group’s demands.

Discussion:

• Analyze the group’s use of persuasive strategies on the website. How well do they balance logic, emotion, and credibility? What suggestions for improvement would you offer?

• The petition shows less than 7,000 signatures as of today. What, if any, effect might this have on the executives’ response.

• Should the executives respond? If so, how?

Message from Zoom CEO

People who never heard of Zoom are now relying on the company to provide flawless service, but of course we experience problems. In a blog post, CEO Eric Yuan describes how Zoom use has “ballooned overnight” and what the company has done to meet demand and improve the service.

Yuan also expresses gratitude to Zoom users at the end of the post, demonstrating business communication principles and leadership character:

Transparency has always been a core part of our culture. I am committed to being open and honest with you about areas where we are strengthening our platform and areas where users can take steps of their own to best use and protect themselves on the platform. 

We welcome your continued questions and encourage you to provide us with feedback – our chief concern, now and always, is making users happy and ensuring that the safety, privacy, and security of our platform is worthy of the trust you all have put in us.

Together, let’s build something that can truly make the world a better place!

Yuan image source.

Discussion:

• Analyze the blog post: audiences, communication objectives, organizational structure, writing style, etc.

• What business communication principles does the blog post illustrate? What improvements would you suggest?

• What leadership character dimensions are illustrated in this example?

Luckin COO Fabricated Sales Data

Luckin’ Coffee, China’s largest coffee chain, is suffering the consequences of publishing false sales numbers. Ernst & Young discovered the misconduct, which took place in 2019, during an audit, concluding that “management personnel engaged in fabricated transactions which led to the inflation of the Company’s income, costs and expenses.” An investigation blames the chief operating officer and others.

A report details “the fraud and the fundamentally broken business,” including “smoking gun” evidence and “red flags.” The anonymous authors compare video recordings of store foot traffic to reported sales.

In response to the news, Luckin’s stock declined between 75 and 80%. Starting in February, when the anonymous report was made public, the company has been posting notices about the situation on its website.

Discussion:

• Analyze the anonymous report, including the audiences, objectives, organization, writing style, etc. What works well, and how would suggest that the writer improve the report?

• How well did the company address concerns? Begin with the first response in February.

• What leadership character dimensions does this situation illustrate?

Marriott CEO Demonstrates Authenticity

A Forbes article calls him an “authentic leader” and applauds his video about the business. Marriott CEO Arne Sorenson begins by talking about his appearance: he is undergoing treatment for pancreatic cancer.

Sorenson gives the bad news directly: the company hit from COVID-19 is worse than the impact from 9/11 and the 2009 financial recession combined. He compares the worst quarter in the company’s history—about a 25% revenue decline—to the almost immediate 90% decline today.

Towards the end of the video, Sorenson is visibly emotional as he talks about employees losing their jobs.

Discussion:

• What principles of delivering bad news does Sorensen use in the video?

• How well does Sorenson balance emotional appeal, logic, and credibility in this message?

• In addition to authenticity, what other leadership character dimensions does Sorenson demonstrate?

Tourism CEOs Meet with President Trump

President Trump invited CEOs of major tourism companies to discuss the COVID-19 response.

Hilton CEO Christopher Nassetta began by highlighting issues in the industry:

“Hilton’s been around 100 years -- we’ve never closed a hotel that wasn’t going to be demolished or rebuilding, The bulk of our hotels in the major cities are closing as we speak.”

Nassetta was also complimentary to President Trump and Vice President Pence and said that he wanted to protect employees. The president reassured him that they’ll be up and running soon, although both said the situation is currently a “disaster” “all over the world.”

Discussion:

• How would you describe the purpose of this gathering? What are President Trump’s objectives?

• Assess each of the CEOs during the meeting. How well did they represent their brand?

Singapore PM Lee Hsien Loong

Two students sent me Singapore Prime Minister Lee Hsien Loong’s news conference as a positive example. I can see why: he gives a model speech, balancing emotional appeal and straight talk. He is proud of Singapore’s response, and yet he is honest about the challenges ahead. The PM also gives examples from other countries and the lessons learned.

Discussion:

• What are the strengths of the Prime Minister’s speech?

• Assess his delivery skills.

• How have leaders in other countries followed this example—or how have they fell short?

• Which leadership character dimensions does the PM demonstrate in his speech?

Comparing Airlines Messages About COVID-19

Transportation companies would like to see more people travel, yet people are wary of COVID-19. Compare these emails to travelers:

United Airlines

Allegiant

Delta

American Airlines

Discussion:

• Analyze the messages: audience, communication objectives, organization, writing style, etc.

• In what ways are the messages similar and different? How might the travel mode—airline or bus—affect the communication choices?

• Which messages are most and least effective and why?

• What’s your view of the American Airlines video? How does the media choice affect the message?

MLB Players Dispute Response to Cheating Scandal

Several players have criticized how Major League Baseball Commissioner Rob Manfred handled the recent cheating scandal. Calling the Houston Astros’ sign-stealing “the biggest scandal in the sport since the steroid era,” an ESPN writer concludes that “fallout continues.”

In an interview, Manfred explained the decision to recall the Astros’ 2017 World Series title and how the first apology didn’t go over very well. Manfred referred to the World Series trophy as a “piece of metal.” Mike Trout of the Los Angeles Angels spoke against Manfred’s reference:

“For him to devalue it the way he did [Sunday] just tells me how out of touch he is with the players in this game. At this point, the only thing devaluing that trophy is that it says ‘commissioner’ on it.”

Manfred has since apologized:

“In an effort to make a rhetorical point, I referred to the World Series trophy in a disrespectful way, and I want to apologize for that. There’s no excuse for it. I made a mistake. I was trying to make a point, but I should have made it in a more effective way.”

NBA star LeBron James weighed in on Twitter, encouraging the MLB to “listen to your players speaking today about how disgusted, mad, hurt, broken, etc etc about this.” As expected, some appreciated his perspective, while others didn’t.

Manfred image source .

Discussion:

• What’s your view of the controversy? Are you also critical of Manfred’s handling of the situation?

• How well did Manfred handle the criticism of his “piece of metal” comment?

• Should LeBron James have entered the debate, or should he have avoided it, as some suggest? Why or why not?

Apologies About the Iowa App

The New York Times published “everything that went wrong at the Iowa Caucases,” and it’s a long list about the app. The technology was untested and unfamiliar to volunteers, and connection problems prevented accurate data submission and reporting.

An opinion writer blamed “techno-utopianism and laziness” for the trouble: “The two fuel each other: The overarching belief that software will fix everything leads to slapdash engineering, procurement and deployment.”

Troy Price, the Iowa Democratic Party Chair, apologized for the “multiple reporting challenges.” He explains the decision to delay reporting to ensure “accuracy and integrity.”

The CEO of Shadow, the app company, also apologized:

“We sincerely regret the delay in the reporting of the results of last night's Iowa caucuses and the uncertainty it has caused to the candidates, their campaigns, and Democratic caucus-goers. As the Iowa Democratic Party has confirmed, the underlying data and collection process via Shadow's mobile caucus app was sound and accurate, but our process to transmit that caucus results data generated via the app to the IDP was not. Importantly, this issue did not affect the underlying caucus results data. We worked as quickly as possible overnight to resolve this issue, and the IDP has worked diligently to verify results. Shadow is an independent, for-profit technology company that contracted with the Iowa Democratic Party to build a caucus reporting mobile app, which was optional for local officials to use. The goal of the app was to ensure accuracy in a complex reporting process. We will apply the lessons learned in the future, and have already corrected the underlying technology issue. We take these issues very seriously, and are committed to improving and evolving to support the Democratic Party's goal of modernizing its election processes."

Discussion:

• Analyze each of these apologies: the audiences, communication objectives, writing style, organization, delivery choice, etc. Each message has distinct purposes.

• What works well in these statements, and what could be improved?

Wells Fargo Earnings Call

The Wells Fargo scandal of creating fake accounts became public in 2016, and the company is still suffering the repercussions. Profit is down 53%, and stock performance is lagging.

On an earnings call, Charles Scharf, who has been the CEO since October 2019, explained the bank’s current position:

I was honored to be chosen to lead Wells Fargo because I believe this is an extraordinary company that plays an important role in this country. We came out of the financial crisis as the most valuable and most respected bank in the US, but as you know, we made some terrible mistakes and have not effectively addressed our shortcomings. These circumstances have led to financial underperformance, but we have one of the most enviable financial services franchises in the world and employees that want to do what's necessary to again be one of the most respected and successful banks in the US.

Discussion:

• Read the earnings call transcript. What’s your view of how Scharf and John R. Shrewsberry, EVP and CFO, addressed concerns?

• How well has the bank recovered its image since 2016? What examples of their communications can you cite?

• What could bank executives have done differently in the past four years?

• How well does the line chart work to compare Wells to other leading banks? What could be improved?

Boeing Internal Documents Don't Reflect Well on Safety

The lead article in today’s The Wall Street Journal is titled, “Internal Boeing Documents Show Cavalier Attitude to Safety.” In 150 pages of emails and other documentation, employees worry that they don’t have enough time to correct safety issues and refer to regulators as “morons” and “stupider.”

In February 2018, one employee wrote, “Would you put your family on a MAX simulator trained aircraft? I wouldn’t.” A pilot wrote, “I still haven’t been forgiven by god for the covering up I did last year. Can’t do it one more time. Pearly gates will be closed.” Still another employee wrote, “This airplane is designed by clowns, who in turn are supervised by monkeys.”

A defense attorney argues that employees were just “blowing off steam” in their emails.

In the past few months, Boeing’s culture has come to light—once lauded as a place where people felt proud to work but now a place where people feel stressed and remorseful. CEO Doug Muilenberg has since been terminated and replaced temporarily by CFO Doug Smith.

Image source.

Discussion:

• Read more about the internal communications. What lessons can employees and their managers take away from this story?

• What’s your view of the emails? Do they indicate big problems at the company, or is the attorney right that employees are just venting to each other? How does the concept of “cherry picking” come into play?

• What should Boeing do to manage this situation? Consider this news in light of the company’s crisis communication planning you read about in another post.

Boeing's Crisis Communication Plan

During the holiday break, several news items about Boeing were relevant to business communication and character. In one article, the New York Times revealed internal Boeing documents showing a company trying to rebuild its image after two MAX crashes within a year..

The documents give us an inside view of how the company plans to use persuasive strategies to win back customers. In one graphic, we see customers’ willingness to fly. In another, we see customer concerns and ways Boeing can address them, for example, with FAQ cards, “pilot confidence videos,” or personal connections (for example, “Flight attendant offers comfort and information on the safety of the MAX”).

Discussion:

• What persuasive strategies does the company plan? Try to find examples of logical argument, emotional appeal, and credibility.

• What are the consequences of this information becoming public? Does it likely endear the public to the company’s concerns, embarrass the company, or something else?

Accountability in the News

Two situations this week remind us that CEOs should take accountability for mistakes in their companies.

On an investor call, Home Depot CEO Craig Menear said retail theft is on the rise:

“This is happening everywhere in retail. We think this ties to the opioid crisis, but we’re not positive about that.”

Menear faced criticism on Twitter for blaming the opioid crisis rather than taking responsibility for product loss at a warehouse.

On another call, Costco CFO Richard Galanti talked about losses because of a website crash:

"It was unfortunate. Despite all the efforts to have plenty of processing capacity, if you will, there was something that occurred." He also acknowledged, “[W]e did leave something on the table.”

In both situations, the executives could be more direct.

Discussion:

• Do you agree with my assessment? Why or why not?

• What evidence should Costco provide to back up its claim?

• What else could the executives have said differently? (Hint: Note Galanti’s use of passive voice.)

• In addition to accountability, what leadership character dimensions are illustrated by these examples?

Data in the Uber's Safety Report

Uber published its first safety report, and the company is lauded for its transparency. A Wall Street Journal article leads with the number of sexual assaults reported during the last two years: 5,981. Of course, any number is too many—no one should be assaulted in an Uber or anywhere else. And sexual assaults are notoriously underreported, so we have no idea how many have actually occurred.

At the same time, a skeptic might want to know the total number of rides in order to put the number of reports in context. The report does provide this information (see the report for footnotes):

View fullsize

The report makes additional attempts to put the numbers in context:

All of that work culminates in the Safety Report that we are sharing with you, the public, today. To put US safety challenges in context:

• In 2018, over 36,000 people lost their lives in car crashes in the United States alone (3)

• Approximately 20,000 people were the victims of homicide in 2017(4)

• Nearly 44% of women in the US have been a victim of sexual violence in their lifetime—which means that more than 52 million women live with that experience every day (5)

Every form of transportation is impacted by these issues. For example, the NYPD received 1,125 complaints of sex offenses in the transit system during the same time period covered by this report.(6,7) In the United States alone, more than 45 rides on Uber happen every second. At that scale, we are not immune to society’s most serious safety challenges, including sexual assault. Yet when collecting data for that portion of our report, we found there was no uniform industry standard for counting and categorizing those types of incidents.

The 84-page report is incredibly detailed and includes external reports for credibility and the number of charges for various types of assaults.

Discussion:

• Analyze the report: the audience, communication objectives, organization, writing style, format. What works well, and what could be improved?

• Does the context in these examples convince you that the numbers aren’t so bad? Why or why not?

• Otherwise, how well does Uber address the safety issues? How do you assess the report credibility? What other questions do you have?

Why Entrepreneurs Don't Learn from Their Mistakes

A Wall Street Journal article describes research about failing entrepreneurs. The results are sobering: start-up business owners don’t seem to learn from their mistakes.

Francis Greene, at Edinburgh University Business School, explains several reasons for lack of learning. First, when entrepreneurs start new businesses, they have a different context and different customer, so any lessons learned from previous businesses might not apply. Greene also says that businesses typically “limp along”; during this slow-close process, it’s difficult to identify what the real problems were.

Finally, as you might expect, we have psychological barriers for failing to learn from failure. We tend to simplify reasons and blame external factors.

Greene suggests taking time to explore what happened after a business failed and ensuring that we have the industry expertise to succeed in the next venture.

Failure image source.

Discussion:

• This reminds me of Amy Edmondson’s HBR article, “Strategies for Learning from Failure.” What similarities and differences do see in their research findings and recommendations?

• When have you failed? How did you learn from the experience? Can you identify ways to learn better in the future?