In Statement, Paterno Says, "I Wish I Had Done More" (and update)
Penn State's Board of Trustees took decisive action Wednesday night and fired both Coach Paterno and president Spanier in response to the sexual abuse scandal that has rocked the university. Paterno had submitted his resignation, but the Trustees decided that he would not coach another game.
Before the Trustee's decision, the legendary football coach gave an emotional farewell talk to his team and coaches and issued a statement, read here on the Tim Brando show (text below):
I have come to work every day for the last 61 years with one clear goal in mind: to serve the best interests of this university and the young men who have been entrusted to my care. I have the same goal today.
That's why I have decided to announce my retirement effective at the end of this season. At this moment the Board of Trustees should not spend a single minute discussing my status. They have far more important matters to address. I want to make this as easy for them as I possibly can.
This is a tragedy. It is one of the great sorrows of my life. With the benefit of hindsight, I wish I had done more.
I am absolutely devastated by the developments in this case. I grieve for the children and their families, and I pray for their comfort and relief.
My goals now are to keep my commitments to my players and staff and finish the season with dignity and determination. And then I will spend the rest of my life doing everything I can to help this University.
Spanier issued his own statement following the news of his termination.
Discussion Starters:
- Is Paterno's statement appropriate, given the situation? Would you expect to see something different?
- Why do you think Paterno decided to resign? Was this the right decision at the right time?
- How do you assess the Trustees' decision to fire Paterno and Spanier? Do you side with the Trustees or the protesting students?
- How do you assess Spanier's statement? In what ways is his statement appropriate or inappropriate in this situation?
Penn State Flubs Response to Child Abuse Accusations
Former Penn State Defensive Coach Jerry Sandusky has been arrested for abusing eight minors. Apparently, Athletic Director Tim Curley and VP for Finance and Business Gary Schultz were told about one incident but kept silent. They have since been charged with perjury.
The president of Penn State, Graham Spanier, issued a statement backing Curley and Schultz:
The allegations about a former coach are troubling, and it is appropriate that they be investigated thoroughly. Protecting children requires the utmost vigilance.
With regard to the other presentments, I wish to say that Tim Curley and Gary Schultz have my unconditional support. I have known and worked daily with Tim and Gary for more than 16 years. I have complete confidence in how they have handled the allegations about a former University employee.
Tim Curley and Gary Schultz operate at the highest levels of honesty, integrity and compassion. I am confident the record will show that these charges are groundless and that they conducted themselves professionally and appropriately.
The president has been harshly criticized for his response. One media expert offered this alternative for the university's response:
I am horrified to learn about the sexual abuse of eight minors. As a parent, I understand just how sacred a responsibility we all have to keep children safe. We will cooperate fully with the investigation and do everything possible to make sure this never happens again.
As for Mr. Curley and Mr. Schultz, I would ask everyone to wait until the facts of the case have fully emerged before forming a judgment.
This statement more appropriately acknowledges the victims without aligning the university with Curley and Schultz. Since the president issued the statement, Curley has been placed on administrative leave, and Schultz has stepped down and retired from the university.
The Board of Trustees of Penn State University are also planning for the dismissal of Joe Paterno, the current football coach, who, according to a New York Times article, "has more victories than any other coach at college football's top level and who made Penn State a prestigious national brand."
Discussion Starters:
- How do you assess the proposed rewrite of the president's statement? What are the improvements -- and what are the risks -- of such a statement?
- Do you agree with the university's decisions to 1) place Curley on administrative leave, 2) accept the resignation/retirement of Schultz, and 3) plan the exit of Paterno? Why or why not?
More Tears for J&J
Consumer groups are protesting Johnson & Johnson because of what they claim are carcinogens in shampoo for babies. According to a report, Baby's Tub Still Toxic, a formaldehyde-releasing ingredient is found in Johnson's "No More Tears" Baby Shampoo in the United States, Canada, and China, although the company distributes a formaldehyde-free formula of the shampoo in several other countries. In a letter, the Campaign for Safe Cosmetics referred to meetings with J&J representatives and urged the company to reformulate the shampoo.
J&J has responded to the criticism with a statement that describes Johnson's Natural (an alternative product line), assures consumers that their products are safe, and describes steps they have been taking to reduce "preservatives that release tiny amounts of formaldehyde to guard against bacterial contamination."
Discussion Starters:
- Evaluate the consumer group's letter. Which are the strongest and weakest arguments? How does the group use logical arguments and emotional appeal?
- Evaluate J&J's response statement. Same questions: which are the strongest and weakest arguments? How does the company use logical arguments and emotional appeal?
College Students Value Social Media Access at Work (Some More than Salary)
Employers, take note: according to a new Cisco study,"The ability to use social media, mobile devices, and the Internet more freely in the workplace is strong enough to influence job choice, sometimes more than salary." The New Workplace Currency report, which surveyed 2,800 students and young professionals, gives clear guidance to employers who want to recruit top talent.
Fast Company reports,
According to the report, 40% of college students and 45% of young professionals would accept lower-paying jobs if they had more access to social media, more choice in the devices they could use at work, and more flexibility in working remotely. More than half of the college students surveyed indicated that if an employer banned access to networks like Facebook at work, "they would either not accept a job offer from them or would join and find a way to circumvent."
The report is interesting but not all that surprising, is it?
Discussion Starters:
- What is most and least surprising from the report? (See full infographic.)
- From an employer's perspective, what are the downsides of offering the choice and flexibility that new workers want?
- As a job seeker, what is important to you? Which of the report's findings reflect your own priorities for a new job?
- During a job interview, what do you think is appropriate to ask regarding social media and mobile devices? What would you ask at a second rather than a first interview?
QR Codes Get New Life
Just as people were questioning the impact of scannable QR codes, Starbucks has a new campaign. The company has introduced a series of codes that, for example, offer music from a particular coffee region or portray experts talking about a type of coffee. Look for the ads in stores and in popular magazines, such as People.
QR codes are getting more creative. Custom QR codes, tailored to specific companies or products, can be quite beautiful, such as these designs. Mashable also posted a few special QR codes, including these for Disney:
Discussion Starters:
- Have you used a QR code? What value do you see for companies?
- Why are QR codes slow to catch on? Why do you think people may not use them?
What Does 7 Billion Look Like?
It's hard to imagine such a large number (unless you're Warren Buffett), but the world population will soon be 7 billion strong. What are some ways that we can visualize this number? This CNN video tries to help us, just as Zephyr Teachout helped us make sense of the $700 billion doled out in government funding during the financial crisis in 2008.
Discussion Starters:
- Which of the comparisons in the CNN video help you to visualize 7 billion most easily?
- What are other ways that you can help people visualize 7 billion? Imagine that you're translating this number for 5th graders, college students, and senior citizens. What comparisons might work best for each group?
Herman Cain's "Smoking" Video Goes Viral
Campaign manager Mark Block is a one-man show in a promotional video for Republican candidate Herman Cain. Speaking to a severely close camera, Block encourages Americans to take action:
Tomorrow is one day closer to the White House. I really believe that Herman Cain will put united back in the United States of America, and if I didn't believe that, I wouldn't be here. We've run a campaign like nobody's ever seen. But then, Americans never seen a candidate like Herman Cain. We need you to get involved because, together, we can do this. We can take this country back.
Then, Cain takes a drag of a cigarette. Cue the patriotic music, show the award-winning Herman Cain smile, and you have yourself a viral video.
Asked about the video, Cain said, "We weren't trying to send any subliminal message whatsoever. Many of us found it hilarious because we know Mark Block."
The video has received a lot of attention. On the Colbert Report, Stephen Colbert pokes fun of the ad by lighting up a cigarette and showing his own version of Cain videos.
Discussion Starters:
- What is Mark Block's strategy with this video? Do you believe he was successful?
- What ethical issues do you see in connection with this ad?
- What are the potential ramifications for Herman Cain and his candidacy?
Meet Ginni Rometty, IBM's New CEO
Virginia Rometty is elected IBM's new president and CEO. As IBM's first female CEO, Rometty joins the list of a small but growing number of women leaders of Fortune 500 companies, including Xerox's Ursula Burns and Hewlett-Packard's Meg Whitman.
At the FORTUNE Most Powerful Women Summit earlier this month, Rometty spoke of the importance of taking risks in one's career. In these excerpts from the summit, we see a bit of her personality and what drives her.
Discussion Starters:
- What is Rometty's delivery style for this presentation (impromptu, extemporaneous, scripted, or memorized)? Is this style effective for the situation?
- What effective delivery techniques does Rometty demonstrate in these short excerpts?
- What parts of her presentation do you consider most memorable?
Do Real Men Drink (Diet) Dr Pepper?
In a popular ad campaign, Dr Pepper appeals to men: "It's not for women." You may have seen the commercial, which shows "what guys want": shooting, jeeps, and yelling.
Some call the ad "tasteless -- more mocking than macho." The campaign does explicitly exclude women. If you're a woman and try to use the company's Facebook app, you'll get this message:
"Sorry, ladies. Dr Pepper 10 isn't for women. But we may have something more your speed at drpepper.com."
Dr Pepper 10's Facebook page is a flurry of activity with over 10 million "likes." One fan isn't fooled at all:
Discussion Starters:
- Do you consider the ad sexist, as some believe it is? Why or why not?
- Does the campaign encourage you to try Dr Pepper 10 or avoid it? Or, are you indifferent either way?
Goldman Sachs Reneges on Dinner and Donation
Goldman Sachs had intended to attend a fund-raising dinner for the Lower East Side People's Federal Credit Union, a small organization that lends to the poor. But when the invitations went out, they listed "Occupy Wall Street" as one of the honorees. Goldman, identified as an event sponsor, pulled its $5,000 funding pledge and declined the invitation. (The company continues to fund the Credit Union's financial education program.)
According to event organizers, Goldman didn't want to be associated with the Occupy Wall Street movement, whose members carry signs such as, "Goldman Sachs is the work of the devil." The company has been a target of some of the demonstrations, such as this one in Boston.
"Their money was welcome, but not at the price of giving up what we believe in," said a Credit Union representative. "We lost their $5,000, but we have our principles."
Apparently, the discussion about the decision was interesting. According to one source affiliated with the event, "It was one of those email exchanges that you talk about the next day at the office." I hope the emails make the Internet rounds soon!
Discussion Starters:
- What do the Occupy Wall Street demonstrators stand for, and how does this affect companies such as Goldman Sachs?
- Do you agree with Goldman's decision about the dinner? Why or why not?
- What are the potential consequences of the company's decision?
Employee Quits Marriott Accompanied by a Marching Band
Some employees like to go out in style -- and embarrass their employees while doing it. Fed up with his job at a Marriott Hotel, Joey DeFrancesco brought a marching band with him to tell his boss that he quit. Why waste time writing a boring resignation letter to just one manager when a "Joey Quits" video can be viewed by over 2 million people within 10 days?
According to Joey, "The working conditions in the hotel are horrendous." He had more to say to CBS News. Apparently, some of the YouTube comments were getting annoying, so he added this note, "I have another, better job already. So stop talking about that and worry about your own jobs."
A Marriott spokesperson confirmed that Joey had worked at the Marriott Renaissance in Rhode Island for three years and made this statement:
"You know that we take employee satisfaction very seriously as a company - creating a sense of community and pride within our hotels is a top priority. The Renaissance Providence actually has a number of employee programs in place that encourage health, wellness and employee satisfaction. While this is an unfortunate way for an employee to resign, we are confident that hotel management works closely with staff to continue to find ways to make the hotel a rewarding place to work for everyone."
Discussion Starters:
- After watching the video and reading the background information, do you sympathize more with Joey or with the hotel? Why?
- How credible do you find Joey? How do you assess his credibility?
- Evaluate the Marriott spokesperson's response. What is effective and ineffective?
Barnes and Noble Pursues Borders Customers
Now that Borders has closed its doors, Barnes and Noble has purchased some assets -- including Borders' customer list. With an email, Barnes and Noble is luring Borders' former customers to its stores. The subject line was an odd choice: "Important Information Regarding Your Borders Account." (The last time I saw a similar subject, I received 18 emails about a security breach.)
Another curious choice in the CEO's email was the vacillating tone -- at times bold ("Our intent in buying the Borders customer list is simply to try and earn your business") and at times legalistic:
"As part of Borders [sic] ceasing operations, we acquired some of its assets including Borders brand trademarks and their customer list. The subject matter of your DVD and other video purchases will be part of the transferred information. The federal bankruptcy court approved this sale on September 26, 2011."
Barnes and Noble makes an additional pitch on its website: "Four Convincing Reasons to Stay in the Barnes & Noble Family."
Discussion Starters:
- How do you assess the Barnes and Noble email? What are the most and least persuasive arguments?
- What examples of credibility, logical arguments, and emotional appeals do you see in this message?
- Where are the direct sales messages in this email? Do you consider these subtle or too much?
Assignment Idea:
- Rewrite Lynch's email in your own words. What improvements can you make to the message?
Bank of America Tries to Repair Its Image
As the target of some "Occupy Wall Street" demonstrations, Bank of America is fighting back. The company's image has suffered in part because of many foreclosed homes (and "robo-signers"), a recent announcement of $5 monthly fees for debit cards, 30,000 layoffs, and a poorly timed website outage. Now Bank of America is running ads in major cities to focus on its good work: charitable donations, small business loans, and loan modifications to help homeowners prevent foreclosure.
Bank spokesperson T.J. Crawford explains, "The campaign aims to deliver the facts about Bank of America's local impact. Sharing the significant work we do at the local level and critical role we play is more important than ever." An ad that ran in Charlotte, NC, the bank's headquarters, had the tagline, "We're working to help keep the North Carolina economy moving forward."
In July 2011, Bank of America published its first Corporate Responsibility Report. On its website, the bank reaffirms its "commitment to shareholders, customers, and clients." In a video on the site, the company gives several examples of how it has served local communities.
Discussion Starters and Assignment Ideas:
- The "Executive Summary" of Bank of America's Corporate Social Responsibility report is 16 pages (download). How does this differ from a typical executive summary? Why do you believe Bank of America took this approach?
- Convert the executive summary to a more typical one-page executive summary. What is most important to include, and how can you present this information? For variety, write two versions: one as paragraph text and another in presentation software format (e.g., PowerPoint).
- How do you assess Bank of America's messages? Do you buy its image as a socially responsible company? Which messages in the CSR video do you find most and least convincing?
RIM CEO Apologizes for BlackBerry Outages
After four days of outages affecting millions of BlackBerry users, Research in Motion (RIM) CEO apologized and tried to explain the situation. In a video "Service Update" message, Mike Lazaridis said little about the technical problems, which elsewhere were described as a hardware failure (a core switch) within its network.
Although the video lacked detail and made no promises about when the service issue would be "fully resolved," Lazaridis delivered an emotional appeal:
"I apologize for the service outages this week. We've let many of you down. But let me assure you that we're working around the clock to fix this. You expect better from us, and I expect better from us."
Lazaridis also acknowledged, "We know that you want to hear more from us."
No surprise, public reaction was vehement. After all, people have been resorting to using the telephone and (horror!) the fax machine. Some of the more than 10,000 Facebook comments compliment BlackBerry's previous service, others bash the iPhone, but many vent their frustration:
In April, Lazaridis was in the news for his emotional reaction during a BBC interview. In July, the company announced layoffs. Clearly, the outages are another challenge for RIM.
Discussion Starters:
- In Lazaridis' video, what examples of persuasive strategies do you see? Which do you find most and least effective?
- Lazaridis didn't give a lot of detail in the video. Do you think this is an appropriate strategy? Why or why not? If not, what could he have done differently?
- How do you evaluate Lazaridis' delivery skills in the video? What does he do effectively, and where does he fall short?
Few Companies Respond to Tweet Complaints, but They Get High Marks When They Do
In a recent study of 1,300 consumers who tweeted a complaint about a product, service, or brand, only 29% heard back from the company. As Marist Research reports, although 49% of tweeters expected the company to read their message, less than one-third received a response.
Older tweeters were more optimistic that companies would read their tweet: 65% of those over 55 compared to 38% of 18-24 year-olds.
When companies did respond, they got high marks from consumers. When asked, "How did you feel when the company contacted you as a result of your tweet?" 83% said, "I loved it" or "I liked it," and 74% were "very satisfied" or "somewhat satisfied" with the response. This is good news for companies that do take the time to respond to complaining tweeters.
See the full PowerPoint summary here.
Discussion Starters:
- Why would a company NOT respond to a tweet complaining about its products or services? What are the downsides?
- Why would a consumer tweet a complaint rather than use other channels (e.g., a letter, an email, an online comment form, or Facebook)? From the consumer's perspective, what are the advantages and disadvantages of each channel?
- Have you tweeted about a brand or product? What, if any, response did you get, and were you satisfied with the response?
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?