Layoffs Planned at WeWork

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After a failed IPO and questions about its leadership and financials, WeWork is planning to downsize. New co-CEOs Artie Minson and Sebastian Gunningham warned employees to expect layoffs but said they will be handled “humanely.”

The new leadership had already prepared employees: "While we anticipate difficult decisions ahead, each decision will be made with rigorous analysis, always bearing in mind the company's long-term interest and health." The new information gives employees a better sense of what will come.

But news stories aren’t consistent. Fortune reports 2,000 layoffs or about 16% of WeWork employees affected, while Dice reports 5,000. Dice acknowledges differences in reporting.

Affected employees could be in business segments that will be spun off, so they may still have a job. WeWork may try to sell Meetup, Managed by Q, and Conductor brands.

Discussion:

  • Assess WeWork’s communications to employees so far. Even if the percentage were clear, the number of layoffs may change. Are the new leaders doing the right thing in giving an estimate now?

  • Employees know layoffs are coming “soon.” Should they have more specific dates? Consider whether this is a good idea.






https://fortune.com/2019/09/25/wework-new-ceos-memo-employees/


Forever 21 Files for Bankruptcy

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Retailer Forever 21 has filed for bankruptcy, and employees are not happy. In its Letter to Customers, posted on the website, the company explains the process:

This does NOT mean that we are going out of business – on the contrary, filing for bankruptcy protection is a deliberate and decisive step to put us on a successful track for the future.

Hundreds of employees are planning to unionize with United for Respect, which also represented employees from Sears and Toys R Us during their bankruptcies.

The Washington Post reports employees’ reactions to the Forever 21 decision:

[S]everal employees cited past instances where Forever 21 swiftly closed stores with little warning or explanation, which prompted their concerns over how the company would treat employees amid bankruptcy.

Unions are seeing opportunities in retail employees. Private-section union membership has been shrinking in the U.S. and is now only 6.4%, compared to 33.9% of government workers. As retail employees get discouraged by their employers, union organizing activity has been increasing.

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Image source here.

Discussion:

  • Analyze the Letter to Customers. Which principles of communicating bad news are followed? How could the message be improved?

  • Explain the ethics of a company filing for bankruptcy. Use an ethical decision-model, such as that in Chapter 1, to determine the effects.

  • What’s your view of retail employees unionizing? What are the benefits to employees and potential downsides of union activity and of forming a union?

Juul CEO Steps Down

With new reports about the dangers of vaping, Juul is replacing its CEO, Kevin Burns, with former Altria tobacco executive K.C. Crosthwaite.

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Following several deaths and worrying data about increasing numbers of young people vaping, the company also announced a pause in all advertising. The decision comes after major media companies and networks banned e-cigarette advertising. Juul had already stopped marketing and selling its flavored products.

The company’s news statement is typical for a CEO announcement with confidence expressed about the departing CEO (Kevin Burns), the new leadership, and the direction of the company. Below is the Kevin Burns’ quote:

“Working at JUUL Labs has been an honor and I still believe the company’s mission of eliminating combustible cigarettes is vitally important. I am very proud of my team’s efforts to lead the industry toward much needed category-wide action to tackle underage usage of these products, which are intended for adult smokers only. Since joining JUUL Labs, I have worked non-stop, helping turn a small firm into a worldwide business, so a few weeks ago I decided that now was the right time for me to step down. I am grateful to be able to confidently hand the reins to someone with K.C.’s skill set, which is well-suited to the next phase of the company’s journey.”

Juul image source.

Burns image source.

Discussion:

  • What are the communication objectives of the news statement? How well does it meet those objectives?

  • Assess Burns’ quote. What are the objectives of his statement, and how well does it meet those?

  • Altria had bought a 35% stake in Juul, so the CEO decision makes sense, and Crosthwaite is an industry insider. How do you view the decision?

WeWork Co-Founder and CEO Steps Down

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WeWork announced that Adam Neumann will leave his position after controversy about the company’s financial situation and the co-founder and CEO’s behavior. Within a week, the company went from preparing for an IPO to facing criticism that led to this ouster and a delayed public offering.

The company valuation has been reduced from about $47 to $15 billion based on governance issues and what the Wall Street Journal calls “ballooning losses.” The Journal also reported on Neumann’s “eccentric behavior,” including a heavy-party lifestyle that recently involved bring marijuana on a plane to Israel and saying that he might like to be the prime minister .

In its news release, WeWork provided scant information and a few quotations, including this from Neumann:

“As co-founder of WeWork, I am so proud of this team and the incredible company that we have built over the last decade. Our global platform now spans 111 cities in 29 countries, serving more than 527,000 members each day. While our business has never been stronger, in recent weeks, the scrutiny directed toward me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as chief executive. Thank you to my colleagues, our members, our landlord partners, and our investors for continuing to believe in this great business.”

Neumann image source.

WeWork office image source.

Discussion:

  • Compare the company’s news release to others announcing CEO departures. How does this one differ, and why would the company take this approach?

  • What are the communication objectives of Neumann’s statement? How well does his quote meet those objectives? What else, if anything, should Neumann say or do?

United Air Kerfuffle

A United Airlines representative participated in an entertaining Twitter exchange about seat prices. The customer has a point: it’s silly to have empty seats on a plane. But United also has a point: the seats are more expensive, and this customer didn’t pay the extra fee.

The Lexus analogy is a curious one. The better analogy may be stadiums or theaters. In some cases, we will see people move closer to a field or a stage, but I understand (although I’ve never been) that this isn’t allowed at the U.S. Open.

Discussion:

  • What’s your view of United Airlines’ policy? What other examples are similar? Can you think of a better analogy?

  • What’s your view of the Twitter exchange? Is the customer right, antagonistic, rude, or something else? How about the United rep?

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Dorian News Conferences

Local officials are holding news conferences about the impact of Hurricane Dorian.

Miami Mayor Francis Suarez announced mostly good news for the city, but he also addresses the terrible impact on the Bahamas.

Bahamas Prime Minister Hubert Minnis announced worse news: five fatalities. Since then, the number has risen to 30.

Discussion:

  • Compare these two presentations, particularly the content and tone. What differences do you notice?

  • How effectively did each government official convey the news?

  • What leadership character dimensions did they demonstrate?

Howard Schultz Update

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Former Starbucks CEO Howard Schultz has decided not to run for president, after all. He communicated the news in an email and on his website. In the email, fonts changed in the middle, but it looks better online. At right are the first few paragraphs.

The full message explains his reasons, which include the election process and his health.

Discussion:

  • Analyze the message. Consider the audience, communication objectives, writing style, organization, and reasoning. What works well, and what can be improved?

  • At what point does he announce the news?

  • What are his strongest and weakest arguments for not running for president?

  • What causes fonts to change in the middle of an email, and how can you avoid this in your own writing?

Overstock CEO Resigns

Overstock CEO Patrick Byrne resigned after admitting to a relationship with Russian agent Maria Butina. Butina is serving prison time because of her attempts to gain political access during the 2016 U.S. presidential election.

Byrne announced his decision in a letter to shareholders. He begins with the news:

“In July I came forward to a small set of journalists regarding my involvement in certain government matters. Doing so was not my first choice, but I was reminded of the damage done to our nation for three years and felt my duty as a citizen precluded me from staying silent any longer. So, I came forward in as carefully and well-managed fashion as I could. The news that I shared is bubbling (however haphazardly) into the public. Though patriotic Americans are writing me in support, my presence may affect and complicate all manner of business relationships, from insurability to strategic discussions regarding our retail business. Thus, while I believe that I did what was necessary for the good of the country, for the good of the firm, I am in the sad position of having to sever ties with Overstock, both as CEO and board member, effective Thursday August 22.”

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Byrne’s letter then describes his thinking about Overstock, including blockchain technology, retail, and strategy.

This announcement came 10 days after Byrne wrote a news release titled, “Overstock.com CEO Comments on Deep State, Withholds Further Comment.” In that post, he refers to “Men in Black” and his “Omaha Rabbi,” reinforcing perceptions that Byrne is a controversial figure.

MarketWatch shows the stock performance during this period.

Byrne image source.

Discussion:

  • What’s your view of Byrne’s decision to resign? Consider his history with Overstock, company performance, and the company trajectory.

  • CNN referred to Byrne’s first news release as “strange.” Do you agree?

HP CEO Resigns

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HP CEO and President Dion Weisler will step down after about four years in the position. In a news release titled, “HP Announces CEO Successor, the company identified Enrique Lores as the next company executive.

The announcement has the typical quotes, from the incoming and outgoing executives and from the board chair. Weisler’s decision is positioned as “due to a family health matter” and notes that “he will be returning home to Australia.” Chip Bergh, the board chair, reinforces the message in his quote:

“On behalf of the board, we respect Dion’s decision to support the needs of his family. We thank him for leading HP post-separation, building a strong team and restoring the company to drive strong shareholder value creation over the last four years.”

In after-hours trading, HP shares dropped more than 6%, according to a Wall Street Journal article.

Weisler image source.

Discussion:

  • How does this company news release compare to others announcing CEO resignations, for example, Overstock?

  • What’s your view of mentioning Weisler’s personal situation in the announcement? Why would the company include this? From Weisler’s point of view, what are the reasons to include or exclude this information?

Capital One's Response to the Breach

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A hacker got access to 140,000 Capital One customers’ credit information and social security information, and about 106 million people were affected by other leaked information. Officials arrested Paige A. Thompson, who goes by “erratic” and was a former Seattle technology company software engineer.

In a bar chart, a BBC article puts this breach in context of others. Capital One’s press release describes the company’s quick response:

“Capital One immediately fixed the configuration vulnerability that this individual exploited and promptly began working with federal law enforcement.”

The release also includes a statement from Chairman and CEO Richard Fairbank:

"While I am grateful that the perpetrator has been caught, I am deeply sorry for what has happened. I sincerely apologize for the understandable worry this incident must be causing those affected and I am committed to making it right."

In addition, as expected, the release includes information for customers, offers free credit monitoring, and provides an FAQ.

Image source.

Discussion:

  • Analyze the press release. Consider the audiences, objectives, organization, tone, and so on.

  • How well does Fairbanks demonstrate humility in the press release? What other leadership character dimensions are illustrated? How well does he inspire confidence in Capital One?

  • Analyze the BBC chart shown here. What works well about the chart, and what else would be helpful to understand these breaches in context?

Fisher-Price Recall

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At first, the company stood by their product, but after 10 infant deaths since 2015, Fisher-Price voluntarily recalled its Rock ‘n Play sleeper. The decision affects 4.7 million products, and the notice is now prominently displayed on the Fisher-Price homepage. When you follow the link, you see the page at right, which lists all “Recall & Safety Alerts.”

The announcement on April 5 points to a Consumer Product Safety Commission (CPSC) alert, which suggests that customers stop using the product for infants more than three months old, when they can turn over and suffocate.

The announcement on April 12 is a full recall, which urges customers to “immediately stop using the product” and return it for a refund.

Discussion:

  • Analyze the communication situation. Who are the primary and secondary audiences of Fisher-Price’s messages? What information do those audiences need? How might they react emotionally? What are the company’s communication objectives?

  • Product recall messages typically follow a particular structure and provide specific content. What do you observe from this message?

  • Should Fisher-Price have issued the recall earlier? Why or why not?

Southwest Faces Customer Service Criticism

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Despite trading on the NY Stock Exchange under “LUV,” Southwest is taking some heat from customers because of the Boeing 737 MAX plane groundings. According to a USA Today report, customers says Southwest didn’t handle rebookings well:

They're peeved about Southwest's handling of passenger rebookings, especially last-minute flight cancellations that leave them with few options. And they're perplexed by Southwest's uncharacteristic lack of flexibility, with affected passengers given two options: take the alternate flight, even if it's days later or to a different airport, or get a refund.

Our first clue about problems came with Southwest’s first statement about the plane groundings. Little guidance was offered for customers to rebook. The first three comments on a Southwest message posted on March 13 illustrate the problem.

A Southwest spokesman said it’s a challenging situation—like a snow storm that lasts for many weeks—and claimed that the airline did everything it could, including offering "massive flexibility'.'

Discussion:

  • Southwest could not have prevented the Boeing 737 MAX disaster, but what about its own customer service situation? What, if anything, could company leaders have done differently?

  • How should Southwest react to customers’ complaints now? I see nothing on its website or blog.

Boeing System at Fault

According to investigators, the flight-control system caused trouble before the Boeing 737 MAX crash in Ethiopia. The report also concluded that pilots followed procedures and did nothing wrong.

On its website, Boeing posted a video and statement of CEO Dennis Muilenburg’s apology.

April, 4, 2019

We at Boeing are sorry for the lives lost in the recent 737 MAX accidents. These tragedies continue to weigh heavily on our hearts and minds, and we extend our sympathies to the loved ones of the passengers and crew on board Lion Air Flight 610 and Ethiopian Airlines Flight 302. All of us feel the immense gravity of these events across our company and recognize the devastation of the families and friends of the loved ones who perished.

The full details of what happened in the two accidents will be issued by the government authorities in the final reports, but, with the release of the preliminary report of the Ethiopian Airlines Flight 302 accident investigation, it’s apparent that in both flights the Maneuvering Characteristics Augmentation System, known as MCAS, activated in response to erroneous angle of attack information.

The history of our industry shows most accidents are caused by a chain of events. This again is the case here, and we know we can break one of those chain links in these two accidents. As pilots have told us, erroneous activation of the MCAS function can add to what is already a high workload environment. It’s our responsibility to eliminate this risk. We own it and we know how to do it.

From the days immediately following the Lion Air accident, we’ve had teams of our top engineers and technical experts working tirelessly in collaboration with the Federal Aviation Administration and our customers to finalize and implement a software update that will ensure accidents like that of Lion Air Flight 610 and Ethiopian Airlines Flight 302 never happen again.

We’re taking a comprehensive, disciplined approach, and taking the time, to get the software update right. We’re nearing completion and anticipate its certification and implementation on the 737 MAX fleet worldwide in the weeks ahead. We regret the impact the grounding has had on our airline customers and their passengers.

This update, along with the associated training and additional educational materials that pilots want in the wake of these accidents, will eliminate the possibility of unintended MCAS activation and prevent an MCAS-related accident from ever happening again.

We at Boeing take the responsibility to build and deliver airplanes to our airline customers and to the flying public that are safe to fly, and can be safely flown by every single one of the professional and dedicated pilots all around the world. This is what we do at Boeing.

We remain confident in the fundamental safety of the 737 MAX. All who fly on it—the passengers, flight attendants and pilots, including our own families and friends—deserve our best. When the MAX returns to the skies with the software changes to the MCAS function, it will be among the safest airplanes ever to fly.

We’ve always been relentlessly focused on safety and always will be. It’s at the very core of who we are at Boeing. And we know we can always be better. Our team is determined to keep improving on safety in partnership with the global aerospace industry and broader community. It’s this shared sense of responsibility for the safety of flight that spans and binds us all together.

I cannot remember a more heart-wrenching time in my career with this great company.  When I started at Boeing more than three decades ago, our amazing people inspired me. I see how they dedicate their lives and extraordinary talents to connect, protect, explore and inspire the world — safely. And that purpose and mission has only grown stronger over the years.

We know lives depend on the work we do and that demands the utmost integrity and excellence in how we do it. With a deep sense of duty, we embrace the responsibility of designing, building and supporting the safest airplanes in the skies. We know every person who steps aboard one of our airplanes places their trust in us. 

Together, we’ll do everything possible to earn and re-earn that trust and confidence from our customers and the flying public in the weeks and months ahead.

Again, we’re deeply saddened by and are sorry for the pain these accidents have caused worldwide. Everyone affected has our deepest sympathies.

Dennis Muilenburg
Chairman, President & CEO
The Boeing Company


Discussion:

  • Analyze Boeing’s communications so far. After the report was published, who were the primary and secondary audiences for these messages? What are the company’s communication objectives, and to what extent were they achieved?

  • What’s your view of the timing? Should the CEO have communicated via video and statement earlier or wait, as he did, for the investigation report results to be published?

  • What leadership character dimensions are demonstrated by this situation?

OurBus Handles a Mistake with Humor

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OurBus sent an email with a link that wasn’t yet working and quickly corrected the mistake with some fun. The company offered a $7 discount for rides booked on St. Patrick’s Day and corrected the link with the subject line, “Our Bad. That code doesn't quite work yet...”

In the first email, the date is clearly March 17, but the subject line, “It's your lucky day. Our flash sale starts NOW,” is certainly deceiving.

Discussion:

  • Assess the second message from OurBus. How well did the company handle the situation? What changes would you suggest? (Hint: alignment.)

  • Are people still saying “my bad”? Did they intend to play on “OurBus” with “Our bad”? If so, would it have been better to write, “OurBad”?

  • Which leadership character dimensions does this situation illustrate?

Another Boeing Plane Disaster

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The same model Boeing plane that crashed in Indonesia last month has crashed on its way to Nairobi. Although U.S. Federal Aviation Administration confirmed that the Boeing 737 MAX Jet is safe, several airlines have grounded the planes. Other groups, such as the Association of Flight Attendants-CWA, have called for an investigation: “While it is important that we not draw conclusions without all of the facts, in the wake of a second accident, regulators, manufacturers and airlines must take steps to address concerns immediately.” American Airlines will continue to fly the planes. A spokesperson for the pilot union said, it is “very early, but we are watching it very, very closely.” Norweigan Air has grounded the planes based on advice from European Aviation Group, and the UK has banned the model from its airspace.

With 40% of the planes out of service, Boeing is taking a financial and public relations hit. In a message to employees, Boeing CEO Dennis Muilenburg wrote, “We are confident in the safety of the 737 MAX and in the work of the men and women who design and build it.” He also wrote, “Since its certification and entry into service, the MAX family has completed hundreds of thousands of flights safely.”

Boeing’s website statement expresses condolences and describes plans for a software enhancement.

Image source.

Discussion:

  • How much evidence is enough to determine whether to ground planes? What is the logical fallacy to be avoided?

  • How well is Boeing handling the communication? Consider both internal and external messages. What are Muilenburg’s challenges at this point?

Alex Trebek Announces Bad News

Alex Trebek, the longtime host of “Jeopardy!” announced that he has pancreatic cancer. Since 1984, Trebek has been almost synonymous with the TV show, and now his Stage 4 diagnosis is casting doubt on the show’s future.

In a video, Trebek, announced the news with optimism and some humor, referencing his three-year contract. Unfortunately, the prognosis for pancreatic cancer is very poor. The ten-year survival rate is only one percent—the lowest rate of any cancer. Steve Jobs died of pancreatic cancer in 2011.

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Discussion:

  • Assess Trebek’s video announcement. How does he convey the bad news and display emotional appeal?

  • Did he do the right thing by announcing the news himself? Why or why not? How do the show and network benefit, and what are the downsides?

  • What leadership character dimensions does Trebek demonstrate?

  • Assess the cancer survival rate chart. What principles of business communication does the designer follow, and how could it be improved?

HBO CEO Departs

HBO CEO Richard Plepler is leaving the company. His announcement came shortly after HBO’s chair of the board spoke with the WarnerMedia CEO about possibly taking over HBO and Turner.

Here is Plepler’s email to employees:

My dad always gave the best advice. Whenever there was a difficult decision to make, he counseled that since no one could ever have perfect visibility into the future, the best thing you could do was trust your instincts. It has been a touchstone for me throughout my life, and I have found myself returning to it again recently as I think about what is an inflection point in the life of this wonderful company. Hard as it is to think about leaving the company I love, and the people I love in it, it is the right time for me to do so.

In the past weeks, I’ve thought a lot about the incredible journey of this company in the nearly 28 years that I have been blessed to be here. It’s a journey of great pride and accomplishment because so many of you, and many others before us, have made HBO a cultural and business phenomenon. Thanks to all of you, we are today churning on all cylinders both creatively and as a business. Thanks to all of you, I can move on to the next chapter of my life knowing that the best team in the industry remains here to carry on our continued progress and success. As I have said before, this is the team of teams.

It has been the great joy of my professional life to share this ride with you over these many years. And the great honor of my professional life to be your CEO. I don’t have the words to express my gratitude for the support and talent that made our success together possible. But suffice it to say, my love for this place, and for all of you, is deeply a part of me and will last a lifetime. I look forward over the coming weeks to thanking as many of you as I can for the thousands of contributions big and small that have made “this thing of ours,” to quote Tony Soprano, so special. I have told John, who has been nothing but gracious since we spoke, that I would work closely with him to assure a seamless and organic transition.

We’ve created a great and unique enterprise and I know that you will protect its legacy and do all to enhance its future in the years to come.

Know that I will always be cheering loudly, even when I am outside this building, as HBO continues to thrive.

With respect, admiration, and gratitude,
Richard

Image source.

Discussion:

  • Assess Plepler’s email. Who are his primary and secondary audiences? What are his communication objectives?

  • What principles of business communication does Plepler follow, and how could he improve the email?

  • What, if anything, does he give as the reason for his decision? Should he say more about this? Why or why not?

  • What leadership character dimensions are illustrated by his email?

Amazon Changes NYC Plans


After months of searching for a new headquarters location and deciding on Long Island City, Amazon has changed course and withdrawn the plan. In a blog post, the company explained the decision:

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After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens. For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term. While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.

We are disappointed to have reached this conclusion—we love New York, its incomparable dynamism, people, and culture—and particularly the community of Long Island City, where we have gotten to know so many optimistic, forward-leaning community leaders, small business owners, and residents. There are currently over 5,000 Amazon employees in Brooklyn, Manhattan, and Staten Island, and we plan to continue growing these teams.

We are deeply grateful to Governor Cuomo, Mayor de Blasio, and their staffs, who so enthusiastically and graciously invited us to build in New York City and supported us during the process. Governor Cuomo and Mayor de Blasio have worked tirelessly on behalf of New Yorkers to encourage local investment and job creation, and we can’t speak positively enough about all their efforts. The steadfast commitment and dedication that these leaders have demonstrated to the communities they represent inspired us from the very beginning and is one of the big reasons our decision was so difficult.

We do not intend to reopen the HQ2 search at this time. We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the U.S. and Canada.

Thank you again to Governor Cuomo, Mayor de Blasio, and the many other community leaders and residents who welcomed our plans and supported us along the way. We hope to have future chances to collaborate as we continue to build our presence in New York over time.

Amazon claims the new office would have created 25,000 jobs, but NYC lawmakers questioned the subsidies the company would have received. Critics also oppose Amazon’s anti-union stance and cite concerns about how the growth would affect Queens. In the end, officials say Amazon was inflexible; one local politician referred to the company as “a petulant child.”

According to a New York Times article, “Amazon’s decision is a major blow for Gov. Andrew M. Cuomo and Mayor Bill de Blasio, who had set aside their differences to lure the giant tech company to New York.”

Long Island city image source.

Discussion:

  • Analyze Amazon’s statement. How well does the company announce the decision, while maintaining relationships?

  • What else, if anything, should the company say at this point?

  • Should Governor Cuomo or Mayor de Blasio make their own announcements? Why or why not?

More About Failure Resumes

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Two years ago, a Princeton professor’s “CV of Failures” went viral, encouraging all of us to admit our misses and view them as learning experiences. This week, The New York Times popularized the idea in an article, “Do You Keep a Failure Resume?

The author advises a strategy:

“When you fail, write it down. But instead of focusing on how that failure makes you feel, take the time to step back and analyze the practical, operational reasons that you failed. Did you wait until the last minute to work on it? Were you too casual in your preparation? Were you simply out of your depth?”

Of course, what he’s proposing is self-reflection. But the approach is rationale: to think through what happened. Research tells us that a more emotional approach—allowing yourself to actually feel negative emotions from a failure—leads to greater learning and makes it less likely that you’ll make the same mistake in the future.

We may avoid failure because we feel shame. The graphic above shows the difference between failing and “being a failure.” Experiencing failure instead of feeling like a failure helps us be vulnerable instead of feeling what could be debilitating shame.

Quote image source.

Being a Failure image source.

Discussion:

  • How do you typically view failure? Do you try to forget about it? Are you harsh with yourself? Or something else?

  • Do you have a process of regular self-reflection? What could you do on a daily basis to learn from both your successes and your failures?

Marriott Breach Involved Passports

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Although fewer people were affected by the Marriott data breach than originally expected, millions of passport numbers have been stolen. Marriott representatives have clarified that the breach happened at Starwood before the acquisition was completed. In its latest statement, Marriott confirmed that the following were stolen:

  • There were approximately 8.6 million unique payment card numbers, all of which were encrypted

  • There were approximately 5.25 million unique unencrypted passport numbers and approximately 20.3 million encrypted passport numbers.

Officials say it’s unlikely that someone could create a fake passport based on only a number. But the breach is worrying because passport numbers provide intelligence agencies with information about where people go, particularly when they cross borders. The U.S. hasn’t charged China with the breach, but experts say tactics are similar to those used in other breaches.

Marriott is offering new passports for guests whose documentation was used for fraudulent purposes.

Marriott image source. Passport image source.

Discussion:

  • Analyze Marriott’s communication so far: the audience, objectives, organization, tone, and so on. What works and what could be improved?

  • Compare the communication to how other companies handled a data breach.

  • Should Marriott offer new passports to all affected guests—not just those whose documentation was used for fraud? Why or why not?