VW's Winterkorn Responds to Questions

Martin Winterkorn, Volkswagen's former CEO, responded to what the The New York Times calls "polite grilling" by the German government about the emissions scandal.

Winterkorn has a tough time defending himself when the company already admitted using software to cheat emissions tests. Several executives were indicted, including many who reported directly to him. As the Times reports, "Volkswagen's plea agreement with the Justice Department in Washington last week left no doubt that the fraud was the work of dozens, if not hundreds, of employees, rather than the result of a handful of rogue engineers as the company had first claimed."

But Winterkorn said he didn't know about the "defeat device" and "never did I have the impression that anyone was afraid to speak an open word with me." The Times article further questions the likelihood that Winterkorn knew nothing:

There is some reason to doubt Mr. Winterkorn's assertion. Mr. Gottweis, a Volkswagen executive who specialized in solving technical emergencies around the world, warned in a memo in May 2014 that American regulators were likely to investigate "whether Volkswagen implemented a test detection system in the engine control unit software (so-called defeat device)."

The memo was included in a stack of weekend reading given to Mr. Winterkorn at the time, but Volkswagen has said it was not clear if Mr. Winterkorn had read it. Mr. Gottweis reported directly to Mr. Winterkorn, however, and it is deemed unlikely that a warning from an executive known internally as "the fireman" would have been ignored.

Image source. 

Discussion:

• Do you believe Winterkorn's stance? Why or why not?
• How does Winterkorn benefit from continuing to deny knowledge of the defeat device? If he is lying, what are the potential consequences to him personally and professionally of admitting the truth?
• Some see this testimony as a missed opportunity for Volkswagen. Can you explain this point of view?

A Tough Interview

A New York Times article compliments CNN reporter Jake Tapper for an "uncompromising" interview with Vice President-elect Mike Pence. After criticism of most TV anchors, including a soft-ball interview by Matt Lauer of Trump in September, the article is an action call to others covering the election and presidency. 

The toughest issue was about Michael G. Flynn, the son of Trump's pick for national security adviser, Lt. Gen. Michael T. Flynn. The younger Flynn has an active social media life and has been spreading rumors, such as the one about Hillary Clinton running a child sex ring out of a Washington, D.C., pizzeria, where a man, believing the story, appeared and fired a shot. Michael G.'s relationship to the administration came into question when Trump's transition team pursued security clearance for him.

Tapper pushed Pence during the interview eight times, saying, "I want to move on to other issues, but I'm afraid I just didn't get an answer." Pence called Tapper's questions a "distraction" and talked about the public's satisfaction with the president-elect's decisive action.

Tapper tried again: "You're downplaying his role, but you must be aware of the transition team putting forth security clearance." Pence says he was helping with scheduling.

Tapper again: "Are you aware that a security clearance...?" Pence finally admitted something about "paperwork.

It's a frustrating interview to watch.

Discussion Starters:

• How well did Pence handle the questioning? Should he have handled it differently?
• The New York Times writer says this type of questioning should be the norm, not the exception. Do you agree?
• Has TV reporting changed over time? Have reporters gotten less aggressive, as some claim? If so, why do you think this is the case?

Comms About the Oakland Warehouse Fire

Oakland city officials and others are commenting on the "Ghost Ship" warehouse fire that killed at least 36 people who gathered for a concert party. A refrigerator may have caused the fire, but the building was under investigation for illegal living areas and potentially hazardous garbage on the property. A press release from the City of Oakland gives some history:

The last permitted use of the building was as a warehouse. On November 13, 2016, the City of Oakland received complaints of blight and unpermitted interior construction at the building. On November 17, 2016, a City building inspector visited the property and verified the blight complaint, but could not gain access to the building to confirm the other complaint regarding unpermitted construction. This is an ongoing investigation.

Members of the police department, sheriff's office, and others held a news conference on Sunday: 

Reporting has been painful, as more bodies have been found, most people in their 20s and 30s. We don't yet know whether the warehouse owners or Ghost Ship managers will be charged. One of the managers, Derick Ion Almena, said of the tragedy: "They're my children. They're my friends, they're my family, they're my loves, they're my future. What else do I have to say?" Later, he posted, "Confirmed. Everything I worked so hard for is gone. Blessed that my children and Micah were at a hotel safe and sound ... it's as if I have awoken from a dream filled with opulence and hope ... to be standing now in poverty of self worth."

A New York Times article blames rising housing prices in the Bay Area and in other cities in the United States:

The victims died because they were trapped in a tinderbox. Yet the economic backdrop of the tragedy is also important because it shows how rising rents and fears of eviction can push vulnerable people in a desperate search for housing to unsafe spaces.

For some artists, Ghost Ship offered a rarity: a place to work and sleep. 

Image source.

Discussion Starters:

• Almena was criticized for his first comment, which sounded cold. What else should he have said?
• Assess the news conference speakers. What advice would you give them for improving crisis communications and presentation delivery?

Diageo Bans PowerPoint

Diageo, an alcoholic beverages company, has banned PowerPoint presentations at some meetings. In an AdAge article, James Thompson, the company's North American chief marketing and innovation officer, describes his perspective:

"It stops conversation. It makes people feel secure they've communicated what they wanted to. But, in fact, it doesn't move anything on," he said. So he has instituted a PowerPoint ban in some meetings. "Just talk to me, please" is his plea. His goal is to ensure his marketing team is "not totally buttoned-up all the time," he said. "We just want people to be at their best, and that is usually when they are able to think and respond and build rather than sell."

The change is part of other efforts, for example, hiring, to revive the company culture. Thompson said, "I've got nothing against MBA programs," but he is recruiting people from different sources instead of "where people came into the organization in a very conventional way and worked their way up in a very conventional way."

Discussion Starters:

• Do you agree with Diageo's decision? What are potential consequences of the decision?
• What could be some alternatives to a ban on PowerPoint?
• If you banned PowerPoint at some meetings, which type of meetings would you include?
• Consider different types of PowerPoints discussed in the text book. How are some outputs better for some audiences?

Acceptance and Concession Speeches

After a surprise Donald Trump presidential victory, the future president and Secretary Clinton gave their respective speeches. Both candidates were respectful to the other, with Trump complimenting Clinton on a hard-fought campaign, and Clinton encouraging people to support Trump as our new president.

Clinton's concession speech asked people to give Trump a chance to lead. She said she hoped he would be "a successful president for all Americans."

Discussion Starters:

• To introduce Trump's speech, future Vice President Mike Pence said, "This is a historic night." It is: this is the first U.S. president who has had neither military nor government experience. Besides Trump's background, what else makes this election victory "historic"?
• Assess Trump and Clinton's delivery skills. Understandably, they are both tired! What other observations do you have?
• Both Trump and Clinton were, shall we say, political in their comments. Which parts are least believable?

AT&T Defends Time Warner Deal

AT&T is planning to acquire Time Warner, and it's already facing skepticism. Critics say the deal will increase prices and reduce consumer choice. But AT&T CEO Randall Stephenson argues that they are trying to reduce prices, increase quality content, and increase innovation, for example, by creating new ad models. He promises to be a "head-to-head, nationwide competitor with the cable ecosystem."

In a press release, Time Warner CEO Jeff Bewkes' quote starts with enthusiasm about shareholders: "This is a great day for Time Warner and its shareholders." He goes on to discuss innovation:

"This is a natural fit between two companies with great legacies of innovation that have shaped the modern media and communications landscape, and my senior management team and I are looking forward to working closely with Randall and our new colleagues as we begin to capture the tremendous opportunities this creates to make our content even more powerful, engaging and valuable for global audiences."

Whether the deal would stifle competition concerns both Republicans and Democrats. Donald Trump said, "As an example of the power structure I'm fighting, AT&T is buying Time Warner and thus CNN, a deal we will not approve in my administration because it's too much concentration of power in the hands of too few." And Bernie Sanders tweeted, "The administration should kill the Time Warner/AT&T merger. This deal would mean higher prices and fewer choices for the American people."

Discussion Starters:

• How well did the AT&T CEO address concerns about the acquisition? What principles of persuasion did he use in the interview?
• Read Time Warner's press release. How consistently are the two companies speaking about the deal?
• What's your view? Do you think the acquisition would be bad for consumers as some people fear?

News Conferences About Hurricane Matthew

After wreaking havoc in Haiti and Cuba, Hurricane Matthew is making its mark on Florida, and politicians are encouraging people to leave the area. One day apart, Florida Governor Rick Scott and Florida Senator Marco Rubio were in front of the press.

Governor Scott emphasizes the potential loss of life and discourages people from focusing too much on the storm path. He wants people to evacuate: "We are preparing for the worst, hoping for the best, and not taking any chances." 

Senator Marco Rubio echos a similar theme: "Don't focus so much on the cone as you should on the fact that here, over the new few hours, the winds are going to pick up, the rain is going to come in, and you need to be prepared for what that means."

Discussion Starters:

• Why don't people leave when they're told to evacuate during a storm?
• How well are Scott and Rubio making their points? What else could convince people to leave a vulnerable area?

More Trouble for Wells Fargo

In what The Wall Street Journal called "another round of blistering criticism," Wells Fargo CEO John Stumpf faced the House Financial Services Committee on Thursday. If Elizabeth Warren didn't challenge Stumpf enough last week during the Senate Banking Committee Hearing, Chairman Jeb Hensarling stated early on, in his opening statement, "Fraud is fraud. Theft is theft."

He also said, "All culpable individuals must be held accountable." Earlier in the week, Stumpf was criticized for firing low-level employees but retaining managers. For the first time, Stumpf said that "10% or more" of the 5,300 employees fired were branch managers, but that didn't seem to soothe the committee members. Others expressed enthusiasm for the $41 million clawback (money recovered from Stumpf's compensation), said he should be fired, and encouraged the break-up of Wells Fargo.

Jeff Sonnenfeld, A Yale University School of Management professor, called Stumpf "completely unprepared" and called the scene "political theater."

To make matters worse for Wells Fargo, the bank will pay $24 million in settlements for "allegedly improper repossessions of cars belonging to members of the U.S. military."

Discussion Starters:

• How well did Hensarling introduce the hearings? Did you find him too harsh, right on target, or something else?
• Sonnenfeld also says Stumpf wasn't prepared for questions. Do you agree with his assessment?
• What were Stumpf's strongest and weakest points?

News Conference About the NJ Train Crash

One person was killed and 108 were injured when a train crashed in Hoboken, NJ. What caused the crash is still unclear, and NJ Governor Chris Christie promised an investigation: "We have no indication that this is anything other than a tragic accident but ... we're going to let the law enforcement professionals pursue the facts."

Christie gave a news conference with NY Governor Andrew Cuomo, calling the incident "obviously an extraordinary tragedy." He said it was too early to guess what happened.

• Analyze Christie's delivery skills at the beginning of the press conference. What principles from Chapter 11 does he use?
• Next analyze Cuomo's delivery skills. What similarities and differences do you notice?
• How well do the governors respond to questions? Which were the most difficult to address?
• This isn't the first train crash in the area. Research other recent events and how officials handled those situations.

Wells Fargo CEO Suffers Tough Questions

During the U.S. Senate Committee Hearing, Wells Fargo CEO John Stumpf responded to difficult questions, particularly from Senator Elizabeth Warren, a democrat from Massachusetts. Stumpf's prepared responses, particularly the "only 1%" of employees argument, wasn't well received by Warren and others. Warren interrupted with harsh words, telling Stumpf, "You should resign and give back the money you took" and calling his practice "gutless leadership."

Another tense moment, reported by The Wall Street Journal, was when Senator Robert Menendez challenged Stumpf's salary:

Mr. Stumpf said earlier in the hearing that the fired employees had been making "good money" of $35,000 to $60,000 a year, a point that Sen. Robert Menendez brought up. "How much money did you make last year?" asked Sen. Menendez. "$19.3 million," replied Mr. Stumpf.

"Now that's good money," Sen. Menendez replied, unsmiling.

Menendez, from New Jersey, gave a poignant example of a woman's daughter whose credit score was affected by the scandal.

Discussion Starters:

• How would you describe Warren's approach in questioning? Do you find her inquiries fair, unfair, or something else?
• How well did Stumpf respond to Warren's questions?

Wells Fargo Reaches Settlement Agreement

Wells Fargo is taking action after the discovery that bank employees opened millions of fake checking and credit card accounts. Employees opened accounts in unsuspecting customers' names so they could earn credit for the sale. The bank benefited from fees people paid on accounts they never used.

In addition to paying a $100 million settlement fee to the Consumer Financial Protection Bureau, the bank has fired 5,300 employees over the past few years.

The company issued two major communications related to the situation: 

• A press release
• An email to employees

In addition, Jim Cramer interviewed CEO John Stumpf on Mad Money:

Image source.

Discussion Starters:

• Compare the two Wells Fargo statements. How well does the company tailor these messages to primary and secondary audiences?
• How can customers miss paying fees? What is their responsibility, and what is the company's? Consider visual displays of bank statements in your response.
• How well does Stumpf respond to Jim Cramer's questions? Which are his strongest and weakest arguments?

Best Speech of the Conventions: Michelle Obama

Many are saying Michelle Obama's speech was the best of the bunch at the Democratic National Convention (Hillary's aside), and I would agree. From her humble laugh, overwhelmed at the crowd's response at the beginning to her call to action at the end, she captured the hearts of the delegates and, Democrats hope, some Republicans too. 

Obama talked about children throughout her speech, particularly her own: 

"That is the story of this country, the story that has brought me to this stage tonight, the story of generations of people who felt the lash of bondage, the shame of servitude, the sting of segregation, but who kept on striving and hoping and doing what needed to be done so that today I wake up every morning in a house that was built by slaves.

And I watch my daughters, two beautiful, intelligent, black young women playing with their dogs on the White House lawn.

And because of Hillary Clinton, my daughters and all our sons and daughters now take for granted that a woman can be president of the United States."

She tried, as did other speakers, such as Mike Bloomberg, to elevate the vote beyond a Republican/Democrat decision and focused on the best person to lead: 

And make no mistake about it, this November when we go to the polls that is what we're deciding, not Democrat or Republican, not left or right. No, in this election and every election is about who will have the power to shape our children for the next four or eight years of their lives.

And I am here tonight because in this election there is only one person who I trust with that responsibility, only one person who I believe is truly qualified to be president of the United States, and that is our friend Hillary Clinton.

Discussion Starters:

• What makes Michelle Obama's speech so compelling? Consider the content as well as her tone and body language. Do you agree that hers was the best of the convention? 
• Obama didn't mention the controversy around Melania Trump plagiarizing her 2008 DNC speech. Should she have? 
• Which other speeches in both conventions were powerful? Do you find any compelling, even though they may not align with their political views? 

Melania Trump's Plagiarized Speech

By any definition, Melania Trump's GOP Convention speech was plagiarized from Michelle Obama. The similarities between Donald Trump's wife's speech and Michelle Obama's 2008 DNC speech are uncanny. Here's one comparison from CNN, and other similarities exist:

Donald Trump's campaign chairman Paul Manafort denied accusations of plagiarism: "To think that she would do something like that knowing how scrutinized her speech was going to be last night is just really absurd." Senior Communications Advisor Jason Miller said only, "In writing her beautiful speech, Melania's team of writers took notes on her life's inspirations, and in some instances included fragments that reflected her own thinking. Melania's immigrant experience and love for America shone through in her speech, which made it such a success."

Later, the RNC communications director, Sean Spicer, said that searches for some of Ms. Trump's phrases turn up similarities from "My Little Pony" and John Legend, who tweeted, "I would very much like to be excluded from this narrative." But the phrases are not nearly as verbatim as those in Michelle Obama's speech. Spicer told The Huffington Post, "Melania Trump said, 'You work hard for what you want in life.' Akon said, 'Work hard for what you get in life.' John Legend said, ‘Work hard.'" 

Update: Meredith McIver, a Trump staff writer, took responsibility for the mistake. A New York Times article said the letter "breathed new life into a story now in its third day." 

Discussion Starters:

• How could such a mistake happen? Melania Trump said, "I read once over it, that's all, because I wrote it ... with (as) little help as possible."
• The Trump campaign said that no one will be fired over this incident. Should someone take the fall? 
• Does McIver's admission end the conversation? What else, if anything, should the campaign managers or Trumps say? Is The New York Times writer right: did the admission just keep the story alive? 

Cameron's Resignation Speech

Having campaigned for the UK to stay part of the European Union, Prime Minister David Cameron had little choice but to resign when the vote was for "Brexit." (See full text.)

Cameron complimented people on both sides of the debate: 

I want to thank everyone who took part in the campaign on my side of the argument, including all those who put aside party differences to speak in what they believed was the national interest.

And let me congratulate all those who took part in the "Leave" campaign - for the spirited and passionate case that they made.

As expected, he ended positively: 

I love this country - and I feel honored to have served it.

And I will do everything I can in future to help this great country succeed.

Discussion Starters: 

• Reactions to Cameron's speech have been highly positive. Do you agree? If so, what makes this a successful speech? How could it be improved? 
• Consider the speech organization. Create an outline showing his main points. What is the logical sequencing? 

Communications About Orlando Tragedy

The tragic shooting at an Orlando, FL, gay club has brought communications from local politicians, global mourners, and of course, presidential candidates. The killer's motive could be homophobia, terrorism, or both, depending on your perspective. With 50 people dead and another 53 wounded, this is the largest attack since 9/11 and has left people wondering how and why.

Here's a summary of communications about the event:

• President Obama's statement. Sadly, this isn't his first speech following a shooting tragedy in this country, and his message is consistent about needing more gun control.
• The National Rifle Association's op-ed in USA Today.
• News conference with police chief, FBI, and mayor, June 12 (below)
• Police chief's news conference, June 13
• Orlando college statements offering condolences and support.
• Presidential candidates' statements:
  • Bernie Sanders
  • Hillary Clinton
  • Donald Trump

Image source.

Discussion Starters:

• Compare the presidential candidates' statements. How do their positions differ, and which do you most support?
• Assess the news conference. How are the officials sharing responsibilities, reporting on events, demonstrating sympathy, and so on?

UCLA Responds to Shootings

It's another sad day of shootings, this time at UCLA, leaving two dead in what seems like a murder-suicide. 

The university has published several communications to keep the community informed and help people deal with this tragedy: 

• An email from Chancellor Gene Block, also posted on the university's website
• A news statement on the website
• A press conference with the Chancellor, posted on YouTube

Messages offer condolences and counseling, thank police and others who responded, and focus on healing. Trying to get back to some sense of normality, the university will resume classes except in the engineering building where a professor was killed. Provost Scott Waugh explains: "Obviously there's a lot of very distressed students, faculty and staff. And our goal within the school is to heal those wounds and make sure that they feel comfortable with the situation before resuming normal activities."

Discussion Starters: 

• Who are the primary and secondary audiences for the university's messages? 
• Assess the chancellor's press statement. What principles of delivering bad news and delivering oral presentations does he use? 

Data Visualization as a "Discipline"

A Harvard Business Review article reminds us to focus on our message when visualizing data. Author Scott Berinato suggests asking ourselves two questions to start: 

• Is the information conceptual or data-driven?
• Am I declaring something or exploring something?

Berinato then identifies four types of visual communication: idea illustration, idea generation, visual discovery, and everyday dataviz. For idea illustration, he offers a weak and an improved example. You'll notice that the first includes elements of "chart junk" that detract from the message.

Discussion Starters: 

• How does Berinato's second example illustrate principles from Chapter 9 in the text book? 
• Consider a message you need to communicate. How does this article help you decide what visuals would support your points? 

Ted Cruz Ends Campaign

After the Indiana primary, presidential candidate Ted Cruz announced the end of his campaign. He told a crowd of supporters that he doesn't see a "viable path" to the office: 

"And so, with a heavy heart, but with boundless optimism for the long-term future of our nation, we are suspending our campaign. But hear me now, I am not suspending our fight for liberty. I am not suspending our fight to defend the Constitution, to defend the Judeo-Christian values that built America. Our movement will continue. And I give you my word that I will continue this fight with all of my strength and all of my ability."

His message is positive, but he was not so just hours before the polls opened when he said, "If Indiana does not act, this country could well plunge into the abyss." 

Cruz tried to defeat Donald Trump in the past couple of weeks by announcing former presidential candidate Carly Fiorina as his vice presidential running mate. But a Morning Consult Survey reported that this decision would have no impact on voters, and the results have played out. This tweet refers to the downsizing at Hewlett Packard when Fiorina was CEO:  

Discussion Starters: 

• Analyze the primary and secondary audiences for Cruz's speech. How well does he meet their needs?
• Also analyze his tone and delivery style. In what ways does this match what you would expect of a presidential candidate ending his campaign, and how does it differ?

Fun at This Year's Correspondents' Dinner

The White House Correspondents' Association Dinner is the one night the president and others can make fun at themselves and each other publicly. The dinner is an annual roast of politicians, celebrities, and journalists.

Here are a few highlights from President Obama's speech from NPR: 

• "I was running on CPT, which stands for jokes that white people should not make." [a reference to NYC Mayor Bill de Blasio's bad reference]
• "As you know, Spotlight is a film about investigative journalists with the resources, the autonomy, to chase down the truth and hold the powerful accountable. Best fantasy film since Star Wars."
• "Savannah Guthrie left the White House press corps to host The Today Show. Nora O'Donnell left the briefing room to host CBS This Morning. Jake Tapper left journalism to join CNN."

Of course, the current presidential candidates were fair game. He poked fun at Hillary Clinton's lack of Facebook skills, Donald Trump's history of "running waterfront properties into the ground," and Bernie Sanders' reputation as a democratic socialist.

Discussion Starters: 

• Which of President Obama's jokes worked best, and which fell short? How many references did you miss? (You have to keep up with news to get the jokes.) 
• Watch Cecily Strong's speech. How does it compare to President Obama's?

Maine Governor Stops Mid-Speech, Calls Students "Idiots"

The Governor of Maine walked out in the middle of a dedication speech at the University of Maine at Farmington. Paul R. LePage was thrown by seeing students holding protest signs. The Governor's speech begins at 5:27 on this video.

The Chronicle describes the interruption:

Mr. LePage reportedly saw the signs 15 seconds into his speech, and then began to pause and struggle with his text. After 30 seconds more, he said he was done, apologized, and left the stage.

"Thank you, you idiots out back there with the signs," the newspaper quoted Mr. LePage as saying as he left. One sign said: "LePage: Maine's Shame." The other was an environmental report card that gave Mr. LePage an F.

The Governor later apologized at a Town Hall meeting:

"First and foremost, I apologize to President Foster and especially to Theodora Kalikow for the sequence of events on Tuesday. I was humbled to be invited to speak at a ceremony to honor Theodora Kalikow and recognize the great legacy she has left the University of Maine at Farmington, as well as its faculty, staff and students.

"I am accustomed to daily attacks and ridicule from protestors, but most people are not. Neither Theo, nor the people who were gathered to honor her, deserved for this heartfelt occasion to be disrespected by smug and self-serving protestors. If they wish to protest me, that's fine: we all have the right to express our freedom of speech. But this event was not about me. I was sickened by the lack of respect displayed by two protestors holding up demeaning signs-including one with Theo's name on it-during an event that was supposed to celebrate and honor a remarkable woman who has contributed so many years to improving education in Maine.

"For more than five years, the media has flocked to events where I have been asked to speak, not to cover any good news about the events, but to disparage me over issues totally unrelated to the events. Since I am such a distraction to the media, I will no longer attend some of these public events. I sincerely hope the media will continue to attend these events and report on the good people of Maine and the many positive things they are doing for our state."

The Governor may have a short fuse. In another incident this week, he prevented the media and legislators from accessing a meeting about education. He said, "The press take seven seconds of what I say, and they make a s*** show out of it. I'm tired of it."

Maybe he just needs a vacation.

Discussion Starters:

• Assess the Governor's apology. How does this meet and fall short of business communication principles?
• How can presenters avoid being affected by protesters and other interruptions?