Netflix Confuses Customers Again
In an about-face, Netflix CEO Reed Hastings undid the company split announced last month. In a brief blog post, Hastings wrote,
"It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs.
"This means no change: one website, one account, one password… in other words, no Qwikster."
Investors' concerns about the price hike and increasing costs of content caused the stock to fall, according to Reuters.
Update: Read an interview with Reed Hastings from The New York Times.
Discussion Starters:
- What could Hastings have done differently to avoid this situation?
- For future moves, how can Netflix include customer input to make better decisions?
- How can Netflix recapture lost customers at this point? Do you believe the executive team can do anything to restore the company's image?
New Study: Social Media Posts Can Make or Break a Hiring Decision
Previous studies have shown that people involved in the hiring process search online for candidates. A new study by Reppler confirms that 91% search Facebook, Twitter, and/or LinkedIn before making a hiring decision.
This study gives us good and bad news about the results of these searches. Although 69% of employers have rejected a candidate because of what they saw posted, 68% have hired a candidate for the same reason.
The study reminds us that smart candidates post positive information about themselves online. Here's an enlarged infographic.
Assignment Ideas:
- Google yourself and see what you reveal. Are you well represented on the web? Do you want to change anything to improve your online reputation?
- Create a LinkedIn page if you don't already have one. To bolster your online reputation via LinkedIn, add connections, provide more detail in your profile, and join professional groups.
Two More UBS Executives Resign
Not surprisingly, the two co-global heads of UBS's Equities division have resigned. These resignations follow a trading scandal that cost the Swiss bank $2.3 billion and the CEO's resignation on September 25.
An email to employees from interim CEO Sergio Ermotti uses a sharper tone than emails from the previous CEO:
"We have to be straight with ourselves. In no circumstances should something like this ever occur. The fact that it did is evidence of a failure to exercise appropriate controls. Our internal investigation indicates that risk and operational systems did detect unauthorized or unexplained activity but this was not sufficiently investigated nor was appropriate action taken to ensure existing controls were enforced."
Discussion Starters:
- Ermotti's email uses an indirect organizational plan. Do you think this is appropriate in this case? Why or why not?
- Compare Ermotti's email to that of Carsten Kengeter, the head of the UBS investment bank. What differences do you notice, and how would you explain them? Download UBS emails.
Steve Jobs and Business Communication
Former co-founder and CEO of Apple and technology pioneer Steve Jobs died at the age of 56. The LA Times reports that "Jobs spoke of his desire to make 'a dent in the universe.'" Well he certainly did.
For business communicators, Jobs taught us to give "Zen Presentations" and gave us entertaining examples of short emails -- a window into the world of a CEO engaged with his customers.
Apple has created a website, Remembering Steve Jobs, in his memory, and the company is asking people to share "thoughts, memories, and condolences" at rememberingsteve@apple.com.
The Chicago Tribune has catalogued a few videos of Jobs, including this one, dating back to 1984, when Jobs introduced an early Macintosh computer:
More Emails Embarrass Their Writers
In case you need more proof that your emails may become public, two successive front page New York Times articles on Monday highlight damaging emails. The first article uncovers emails about Solyndra, the solar-panel manufacturer that received government funding and has since declared bankruptcy. In one email, Lawrence Summers, President Obama's former chief economic adviser, wrote, "While that is good for us, I can't imagine it's a good way for the government to use taxpayer money." 
In another email, he wrote, "I relate well to your view that gov is a crappy vc [venture capitalist]." Depending on your perspective, these emails prove that either the administration should have known better than to make the Solyndra deal or there was serious, rational internal debate about the prospect before the deal was done.
The second New York Times story revealed emails about the pipeline currently debated. According to the artile, "...e-mails released Monday paint a picture of a sometimes warm and collaborative relationship between lobbyists for the company building the billion-dollar pipeline and officials in the State Department, the agency that has final say over the pipeline." The emails have environmental groups questioning the objectivity of those making the final decision.
In both of these situations, it is doubtful that the writers intended for their emails to become public.
Discussion Starters:
- How could these emails have been better protected? Is it possible to keep email from being retrieved later by simply deleting it?
- What lesson do you learn from these articles? How can you protect your own communications in the future?
Reebok Pays $25 Million Because of Deceptive Ads
As it turns out, you can't get toned just by wearing a pair of shoes. Reebok is paying big refunds because claims about their RunTone and EasyTone shoes cannot be substantiated. The company marketed these products on claims such as "You can work your hamstrings and calves up to 11% harder." Lacking evidence to prove these results, Reebok was fined $25 million by the Federal Trade Commission. Customers may apply for a refund via the FTC website.
Although Reebok agreed to the settlement, the company stands by its products and will continue selling the shoes. In a statement, Reebok affirms,
"We have received overwhelmingly enthusiastic feedback from thousands of EasyTone customers, and we remain committed to the continued development of our EasyTone line of products."
Discussion Starters:
- How did Reebok fall short in its claims? What questions would you have after hearing the data about the shoes?
- Do you consider Reebok's advertising to be deceptive? Why or why or not?
Got Milk? Or Get Fired
A CEO of a public relations firm has had it with office selfishness. Although Keith Zakheim denies following through on the threat (as yet), he sent an email to all employees: "You will be fired for not replacing the milk." What's worse: the threat or a PR CEO's lack of apostrophes?
From: Keith Zakheim
Date: September 27, 2011 8:20:21 AM EDT
To: Beckerman Staff
Subject: I don't know what else to do...I have repeatedly requested until I am blue in the face that the person that finishes the milk must replace the milk. Its not complicated and is a simple sign of respect for fellow employees.
So, imagine my chagrin this morning when I stumbled in at 715 after enduring a typically painful Redskins loss and in dire need of a shot of caffeine, only to find that the skim milk in the refrigerator had three drops of milk left. Literally 3 drops, an amount that would maybe fill the tummy of a prematurely born mouse. The person that did this is either incredibly lazy, obnoxiously selfish or woefully devoid of intelligence - 3 traits that are consistent with the profile of FORMER Beckerman employees.
As you can tell from the tenor of this email, I am not happy and at my wits end. Allyne, Ilhwa, and I have repeatedly beseeched you to replace the supplies that you consume - whether its pencils, paper, or MILK. This costs you nothing - I pay for it! Yet, it is still repeatedly ignored.
So, I am gravely serious when I write this - if I catch someone not replacing the milk, or at least, in the case where the downstairs store has close already, not sending an email to the office so the first person that arrives (usually Christa or me) can pick one up upon arrival - then I am going to fire you. Im not joking. You will be fired for not replacing the milk, and have fun explaining that one to your next employer. This is not a empty threat so PLEASE don't test me.
99% of this office consists of great people that work hard, treat their employes with respect, and understand that they are part of something that is bigger than them. However, there seems to be a small element that doesn't understand this. So its time that they do or else they should start refreshing their resume.
For those of you who have worked for me for years, you know this is not my style so PLEASE take this seriously!
Thank you for your cooperation.
KZ
-
KEITH ZAKHEIM | CEO
BECKERMAN
ANTENNA GROUP
Excessive Kissing on Southwest Flight?
#BoycottSouthwest Airlines is trending because of an in-flight kissing incident. Leisha Hailey, an actress on the TV show The L Word, and her partner, musician Camila Grey, were asked to deplane after kissing on board. Hailey tweeted about the incident:
"I have been discriminated against by @SouthwestAir. Flt. attendant said that it was a ‘family' airline and kissing was not ok."
"This is an outrage. I demand a public apology by @SouthwestAir and a refund. Hate is not a family value. I will never fly this airline."
Proud of their LGBT-friendly policies, Southwest posted this statement:
Update: Southwest has issued a second statement, explaining that the passengers were removed from the plane because of profanity, not kissing.
Discussion Starters:
- After reading about this incident, would you boycott Southwest? Why or why not? What other information would you want to know before making a decision?
- How do you assess Southwest's response to the situation? What did they do well, and what, if anything, could they have done differently?
UBS CEO Resigns
Following the scandal that caused Swiss bank UBS $2.3 billion, CEO Oswald J. Grübel has resigned. In a memo to employees, Grübel says, "I did not take the step of resigning lightly."
In the memo, Grübel includes a pep talk for employees:
"As I've always emphasized, a lot of work remains to be done here. So don't let recent events distract you from your work. Continue giving your all and keep your focus on your clients. I am certain that UBS can carve out a strong place for itself within the fundamentally changing financial industry."
This memo follows a previous communication to employees, in which Grübel explained the incident and wrote, "Ultimately, the buck stops with me."
Discussion Starters:
- Who are Grübel's primary and secondary audiences for this memo?
- What would you identify as Grübel's goals of this message?
- In your opinion, to what extent did he achieve these goals?
Note to Tweeters Who Hire Ghostwriters: Change Your Password
Someone who calls himself a "Social Marketing & Communications Strategist" is facing embarrassment over his Twitter account. Apparently, @Mark Davidson had hired three people to ghostwrite tweets for him, only to be exposed on his own Twitter feed. One angry former writer took advantage of Davidson's failure to change his Twitter password and kept posting after he stopped working for Davidson:
Discussion Starters:
- What are the ethical considerations of someone tweeting for someone else? Does Davidson's job influence your perspective? (On Twitter, he describes himself as "Internet sales & marketing professional. I write a lot of things to amuse myself and others. On occasion, I even have deep thoughts.")
- After this incident, Davidson (himself, apparently) posted this tweet: "WANTED: Social Media Account Ghost Writer. We've recently had an opening at http://twitter.com/#!/markdavidson. (Serious inquiries only.)" Would you apply? Why or why not?
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
- 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.
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?