New HP CEO Meg Whitman Addresses Criticism

Meg Whitman, former Ebay CEO and candidate for Governor of California, has been appointed Hewlett-Packard's new president and CEO. In an interview with All Things Digital, Whitman and HP Executive Chair Ray Lane addressed the criticism of Whitman's lack of enterprise technology experience:

AllThingsD: Meg, the main criticism of you, since you've been named CEO of HP, is that your main experience before was at eBay, which is a consumer-facing company. The response on yesterday's conference call has been that at eBay you were a purchaser of a lot of enterprise technology and that this gives you some important relevant experience. I get the point, but could you elaborate on it a bit? How does having been an enterprise buyer help you be HP's CEO?

Whitman: What HP needs now more than anything else is management skills, communication skills, and a commitment to executional excellence, all of which I know well, and are sort of core competencies from my 35-year career in business. I know technology because I ran a company whose very existence would not have been possible without it, and was a very significant buyer of technology products. And so that brings me a unique buyer's perspective. But I have not spent 35 years in the enterprise business. Add so what that means is that I will be relying heavily on Dave Donatelli, on Todd Bradley, on the senior executives at HP, and also, frankly on Ray Lane, who was at Oracle for many years and EDS, and who knows this space well. So I think what customers will get is that one plus one equals three.

In a conference call, Whitman addressed current issues at HP, but investors are skeptical: the stock was down 4% in early trading today.

Discussion Starters:

• How well do you think Whitman addressed the question about her experience?
• Read the full interview with Meg Whitman. How did she handle some of the tougher questions? Which are her best and weakest responses? 
• Research HP's leadership history and recent performance. What, if anything, can the company do to improve its communication to investors and the public?

Solyndra Legal Team Gets Into the Action

Solyndra executives had agreed to testify before the U.S. Oversight and Investigations Subcommittee, but their lawyers have since advised them to plead the Fifth Amendment. Solyndra, a solar-panel manufacturer that received $535 million in stimulus funding, has filed for bankruptcy and is now under criminal investigation. The executives maintain their innocence: "The company is not aware of any wrongdoing by Solyndra officers, directors, or employees in conjunction with the DOE [Department of Energy] loan guarantee or otherwise..."

Two letters from the legal team explain why executives Brian Harrison (CEO) and Bill Stover (CFO) will not answer questions that may incriminate them during Congressional hearings on Friday.

In response, U.S. committee members expressed their dissatisfaction:

"Who exactly are Solyndra's executives trying to protect, and what are they trying to hide?

"Despite repeated assurances that they would testify voluntarily and answer questions this Friday, today we received the news that these executives – who had plenty to say to federal officials when securing half a billion dollars in taxpayer funding for their venture – plan to invoke their Fifth Amendment right against self-incrimination and will not answer questions from Congress."

Discussion Starters:

• Compare the two legal letters for Solyndra executives. What minor differences do you see, and how do you account for these?
• How do you assess the U.S. committee chairmen's response to the news? What do you notice about the tone of their statement?
• Consider the politics involved in this situation. Who are the major players, and what is driving their actions?

Netflix CEO Apologizes and Announces Company Split

Netflix CEO Reed Hastings is trying to win back goodwill lost by the company's recent price hike. In an email to customers, Hastings admits "I messed up. I owe you an explanation." In a video, Hastings introduces his head of DVD operations to explain the latest change -- splitting Netflix into two companies: one that will handle streaming video (to retain the Netflix name), and another to manage DVDs by mail, called Quikster.

Critics say that the deal was hastily put together, citing, among other issues, the Twitter handle @Quikster, currently owned by an individual represented by an image of a pot-smoking Elmo (reported by TechCrunch). 

The Netflix blog post amassed over 15,000 comments within a day, reminiscent of the outcry after the July price hike.  Fans and former Netflix customers may remember the video parody about the public reaction.

Discussion Starters:

• Looking at the Netflix blog, how well do you think the company is currently handling comments? What recommendations do you have for the CEO to improve communication at this point?
• How successful do you find the video? What works well, and what, if anything, would you suggest that Hastings and Rendich change in their presentation?
• How justified do you consider the public reaction to the news? In what ways is this different from the anger expressed earlier from Netflix customers?
• Of Netflix's three main messages -- the email, the video, and the blog post -- which do you think is most effective and why?

UBS CEO Memo Following $2.3B Loss: "The buck stops with me"

A 31-year-old rouge trader has caused close to $2.3 billion in losses for Swiss bank UBS. Unauthorized, speculative trades over three months apparently went unnoticed until the trader's recent arrest. UBS is expected to be able to absorb the hit, but Moody's is investigating the firm for a potential downgrade.     

In a memo to staff, UBS CEO Oswald J. Grübel acknowledges that people are "shocked and disappointed" and tells employees "our fundamental strengths as a firm remain intact." Grübel also encourages employees to report wrongdoing:

"Ultimately, the buck stops with me. I and the rest of senior management are responsible for dealing with wrongdoing. I only wish to remind everyone that all of us have a part to play in identifying and reporting wrongful behavior and conduct in the workplace. If you feel uncomfortable about informing your line manager, I urge you to use one of the other available channels for doing so."   Download memo from UBS CEO

Discussion Starters:

• How could a loss of this magnitude have happened at a company like UBS?
• How do you assess Grübel's memo to staff? How well does he handle the bad news? What arguments do you find most and least convincing in the message?

Slim Budgets for UK Public Sector Internal Communicators

In an ironic twist, public sector organizations have dwindling budgets for internal communication. According to a survey conducted by UK consultancy Gatehouse and the Institute of Internal Communication (IoIC), one third of respondents have no dedicated internal communication budget and 27% have less than £10,000. At the same time, respondents identified several priorities for communicating with employees:

• Reengaging employees (40%)
• Communicating strategy and direction (30%)
• Communicating cost cutting (20%)

Tough times are ahead, so companies clearly need to focus on communicating with employees. On the upside, organizations surveyed do have dedicated internal staff: only 6% have no one, half have between one and five communicators, and 21% have more than 20 people dedicated to internal communication.

Image source.

Discussion Starters:

• Other than a lack of commitment to employee communication, what could the slim budgets mean for these UK public companies?
• How was internal communication handled at the last company where you worked? What examples of employee communication do you remember, and were they successful?

Typo on 9/11 Memorial

Perhaps it was bound to happen, but the heartache for a family is still real: the name of a 9/11 victim was misspelled on the Lower Manhattan memorial. Jeffrey Schreier's name was spelled "Jeffery."

Family members were very upset when they noticed the error. Schreier's sister, Janice Hart, said, "This is the only place we could go to have some solace, and to see his name engraved incorrectly was very distressing to us." Hart's husband, David, said, "You feel as though Jeffrey's soul is now looking down and saying, 'Can't you get my name right?'"

Bank of America Will Cut 30,000 Jobs -- The Largest Number This Year

Bank of America is cutting more jobs. Following the 6,000 jobs lost earlier this year, a $5 million investment by Warren Buffett's Berkshire Hathaway Inc., and a management-team shake-up, the company will lose 30,000 jobs in attempt to scale down the largest bank in the country.

CEO Brian Moynihan has some explaining to do. The stock is down 48% this year, and the Bank is still paying for what some believe were poor acquisitions of Merrill Lynch and, particularly, Countrywide. BofA wins the dubious honor of having the largest number of cuts this year. (The U.S. Postal Service announced 30,000 last year and has cut more than 100,000 jobs in the past five years.)

As part of its communication strategy, Bank of America issued a press release to provide an update on "Project New BAC." (BAC is the stock symbol.) And in a conference call, Moynihan described four points that support Bank of America's future success.

Discussion Starters:

• Read Bank of America's recent press release. If you were an investor, would you find this reassuring? Why or why not?
• Listen to the introduction to Moynihan's conference call. Based on this introduction, which of his four points do you find most convincing? Least convincing?

Volunteer Experience Could Land You a Job

A recent survey has convinced LinkedIn to add a new field to online profiles: "Volunteer Experiences & Causes." According to the survey of 2,000 professionals, 41% of hiring managers believe that volunteer experience is just as valuable as paid experience, and 20% of hiring managers have made hiring decisions based on a candidate's volunteer work. Eighty-nine percent of the survey respondents had performed volunteer work, yet only 45% of them included this on their resumes, feeling that they didn't want to exploit the community group -- or because they didn't think about including the experience.

Volunteer work could give you skills and experience that employers want: teamwork, interpersonal skills, sales and marketing, and more. So why not include this on your resume, particularly in a tight, competitive labor market?

Discussion Starters:

• Do you currently list volunteer work on your resume? Why or why not? Will you add it now that you see how much it is valued by employers?
• What are the downsides of including volunteer experience on your resume?
• Looking back on your volunteer work, what competencies (skills, knowledge, or abilities) do you believe the experience developed that might be useful in your career?

Hacked NBC Twitter Account Announces Ground Zero Attack

Twitter hacking continues. This time, NBC is the victim, and the tweets are cruel. The Script Kiddies hacked Fox News in July, claiming that President Obama had been assassinated. Apparently, NBC's social media director clicked on an email attachment that allowed access to the culprit:

"'Ryan, You need to get off TWITTER immediately and protect your family from the hurricane. That is an order.' Osborn wrote back 'I'm sorry. Who is this?' The sender then replied, 'I'm the girl next door' with an attachment. Osborn said he mistakenly clicked on the attachment and it contained a Christmas tree."

Discussion Starters:

• What is your reaction to the series of hacking? Are these harmless pranks or potentially dangerous?
• What, if any, are the ethical implications of Twitter hacking?
• How do you assess NBC's statement: "The NBC News Twitter account was hacked late this afternoon and as a result, false reports of a plane attack on ground zero were sent to @NBCNews followers. We are working with Twitter to correct the situation and…sincerely apologize for the scare that could have been caused by such a reckless and irresponsible act"? Is this an appropriate response, or do you believe that more should be included in the network's statement?

Fox Sports Makes Fun of Asians at USC

For a Fox Sports Network video to promote the Pac-12 football conference, comedian Bob Oschack interviews Asian students at USC. These students don't know about the conference -- and likely don't care -- but are asked to speak on camera.

Download Fox Sports Network Targets Asians at USC

A spokesperson from Fox Sports apologized for the video:

"The context was clearly inappropriate, and the video was removed as soon as we became aware of it. We will review our editorial process to determine where the breakdown occurred and we will take steps to ensure something like this never happens again."

Discussion Starters:

• Do you consider the video racist? Is it ethical? Explain your position.
• What could Fox Sports change in their editorial process to make sure this doesn't happen again, as the spokesperson promises?

Yahoo CEO: "I've just been fired over the phone..."

Carol A. Bartz leaves Yahoo in the same style in which she ran the company. Known for her abrasiveness, Bartz sent this email to employees: 

Hired in January 2009 at Yahoo, Bartz has a history of writing strong emails, such as this one, in which she tells her staff, "...people seem like they're waiting for something. I'm not sure if it's a sugar-low or what, but we need to stop waiting and get moving. Good things do not come to those who wait, they come to those who make things happen."  She is also known for her liberal use of the "F-bomb," as on this quarterly earnings call.

Following Bartz's email to staff, the board chair and Yahoo founders sent an email of their own, announcing the decision and explaining other changes at the company.

Discussion Starters:

• In Chapter 1 of the text, you read about communication media choices. What is your assessment of the chair of Yahoo's board firing Bartz over the phone? What could be the rationale for terminating her over the phone rather than in person?
• What is your assessment of Bartz's email to Yahoo employees? Do you consider this appropriate, inappropriate, or something in between?

In Full-Page NYT Ad, Starbucks' Schultz Promises No Campaign Donations

Howard Schultz, Starbucks CEO, has pledged to withhold campaign donations until Washington gets it together. As a full-page ad in Sunday's New York Times, Schultz communicated his frustration in an open letter. The pledge, which he says 100 business leaders have signed, includes two parts:

"First, to withhold political campaign contributions until a transparent, comprehensive, bipartisan debt-and-deficit package is reached that honestly, and fairly, sets America on a path to long-term financial health and security. Second, to do all we can to break the cycle of economic uncertainty that grips our country by committing to accelerate investment in jobs and hiring."

 Discussion Starters:

• Read Schultz's entire letter. Which arguments do you consider strongest and weakest in his appeal?
• How does Schultz balance logical arguments, emotional appeal, and credibility in his letter? What examples do you see of each?
• From a branding perspective, what are the benefits and risks of a corporate CEO publicizing a message such as this?
  

iPhone 5 (Lost in a Bar...Again) is Thin and Has Holographic Display (Not)

You've heard it before: a guy walks into a bar and loses an iPhone. Apple devotees get a glimpse of the iPhone 5 the same way they heard about iPhone 4: presumably because someone accidentally left one in a bar.

PR strategy side, the new (fake) iPhone is rather stunning: the size, laser keyboard, and holographic display may impress even the most diehard Droid user.

Discussion Starters:

• Do you believe this is a publicity stunt for the new iPhone? If so, why doesn't Apply just issue a press release like other companies?
• Does the product hype make you more or less likely to want the iPhone 5? Will you wait on line overnight for it?

Should the NYC Mayor's Office Have Disclosed Domestic Violence Arrest?

When Bloomberg's deputy mayor Stephen Goldsmith resigned, the administration said that he was leaving "to pursue private-sector opportunities in infrastructure finance." In a statement, Goldsmith said, "The change will provide me, at age 64, with more flexibility for me and my family and a secure foundation for our future."

But the story has changed. Prior to his resignation, Goldsmith was arrested following an altercation with his wife and spent two days in jail. Critics say that the arrest should have been disclosed as soon as the administration knew. This is significant partly because of Goldsmith's role, which was to oversee major city agencies: police, fire, transportation, sanitation, and buildings.

Discussion Starters:

• Did the administration have a responsibility to disclose Goldsmith's arrest? 
• Evaluate the decision: what are the arguments supporting and against disclosure? How might the administration's view differed from Goldsmith's perspective?
• Goldsmith's wife seems to have changed her story from what was reported in the arrest record. The original record describes quite a physical scene, and yet Mrs. Goldsmith later denied that physical violence occurred. What role, if any, do you think she played in the decision not to disclose the incident?

JCPenney Apologies for "Too Pretty to Do Homework" T-Shirt

JCPenney's new T-shirt and the promotional text offended many. 

The controversy played out on JCPenney's Facebook page with comments like this one:

The company was quick to apologize:

"J.C. Penney is committed to being America's destination for great style and great value for the whole family. We agree that the 'Too pretty' t-shirt does not deliver an appropriate message, and we have immediately discontinued its sale. Our merchandise is intended to appeal to a broad customer base, not to offend them. We would like to apologize to our customers and are taking action to ensure that we continue to uphold the integrity of our merchandise that they have come to expect."

Discussion Starters: 

• Do you consider the T-shirts offensive or just funny?
• In a follow-up message, JCPenney Corporate Communications representative said, "We are not happy about the shirt! We're looking into it right now, to find out how it happened. It was only online, not available in stores, and we have removed it from the site." How do you assess JCPenney's reaction?

Hyundai Commercial NSFW or the Netherlands

A car with three doors? The Hyundai Velostar looks like a coupe and boasts a "functional 3rd door," according to the website description. In an odd twist, a commercial promoting the Velostar emphasizes the door, yet was banned by Hyundai's head office for its explicit content. Critics say that the commercial was designed to be viral and that the ban is simply part of the marketing plan. 

It is an interesting question: the third door is not listed among the Velostar's safety features, apparently the main point of the commercial.

Discussion Starters:

• Do you consider the commercial too explicit for American TV? Why or why not?
• Do you think that pulling the ad was a planned marketing ploy by Hyundai -- or a genuine reaction to the commercial?
• What ethics are involved in this situation? Is the commercial ethical? If Hyundai planned for the video to be banned and viral, is that ethical?

Cornell University President Wants to End Fraternity Pledging

In an opinion letter in The New York Times, Cornell University president David Skorton demands an end to pledging, which he calls a "guise" for hazing. According to Skorton, pledging is not, as some fraternities purport, a way for students to prepare for membership, but "is often the vehicle for demeaning activities that cause psychological harm and physical danger." The impetus for this action, says Skorton, is a student death in February believed to be the result of fraternity hazing. Skorton is calling on the Greek community to offer solutions:

"Yesterday, I directed student leaders of Cornell's Greek chapters to develop a system of member recruitment and initiation that does not involve 'pledging' - the performance of demeaning or dangerous acts as a condition of membership."

As for any sound, persuasive argument, Skorton address the skeptic's question:

"Why not ban fraternities and sororities altogether, as some universities have done? Over a quarter of Cornell undergraduates (3,822 of 13,935 students) are involved in fraternities or sororities. The Greek system is part of our university's history and culture, and we should maintain it because at its best, it can foster friendship, community service and leadership."

Discussion Starters:

• Do you agree with President Skorton that the line between hazing and pledging is blurred? Why or why not?
• What do you consider to be the most persuasive argument in his letter? Least?
• What would convince fraternities to abide by this request? In other words, what is the best way to persuade fraternities to change?

Insurance Companies Communicate Before the Hurricane

Allstate is getting out ahead of the chaos: in an email to customers, the company offers suggestions for preparing for Hurricane Irene. The company's website offers additional advice. (Click to enlarge).

State Farm also offers advice for customers on its website. The "Disaster Response" page lists these tag lines:

• State Farm Has Unmatched Disaster Response and Recovery
• Ready to Respond to Hurricane Irene

Discussion and Assignment Ideas:

• Why would the insurance companies communicate before the hurricane? What do they have to gain?
• Compare the two companies' web communications about the hurricane. Explore both sites and identify differences in approaches and assistance offered. Which do you think works best and why?
• In an email to Allstate or State Farm, offer your advice for improving its communication. Use examples from the competitor's website to support your points.

Steve Jobs Submits His Resignation Letter

Steve Jobs has resigned as CEO of Apple and will continue as Chairman of the Board. He will be replaced by Tim Cook, who has filled in for him during his most recent medical leave. Jobs' resignation letter does not explain the reason, but his resignation is believed to be related to pancreatic cancer that has plagued Jobs in the past.

While speculation about the impact of Jobs' departure runs rampant, investors are "undaunted," according to Reuters. The stock dropped a mere 1.7% on the news.

Discussion Starters:

• Compare Jobs' resignation letter to previous emails to employees: Janaury 2011 and January 2009. What differences do you notice?
• Watch Jobs' Stanford University commencement address from 2005. What lessons do you take away from this speech?

Surf the Web Guilt-Free

A recent study, "Impact of Cyberloafing on Psychological Engagement," found that time spent browsing the Internet had positive results on productivity. Researchers at the National University of Singapore found that people who spent 10 minutes surfing were "significantly more productive and effective at the tasks than those in the other two groups [who did other tasks] and reported lower levels of mental exhaustion, boredom, and higher levels of engagement," as reported by The Wall Street Journal.

The effects of surfing were better than personal emailing, phone calls, and texting for a 10-minute break.  According to Vivien Lim, one of the study's authors, these tasks are not as restorative because they demand more cognitive attention. But when people surf, they "usually choose to only visit the sites they like -- it's like going for a coffee or a snack break."

This study has important implications for employers. Concerned about lost productivity, some companies restrict employees' online behavior. Perhaps they should relax the standards -- and focus on work outcomes instead.

 Discussion Starters:

• What do you do when you take a break from work or studying? What do you find most relaxing?
• On a job, have you surfed the web or done non-work-related tasks online? Did your company or manager frown on this, or was it acceptable for a few minutes?
• What are the downsides of employers allowing surfing on company time?