Students Remember More with Handwritten Notes

A Wall Street Journal report discusses several studies that encourage handwritten instead of typed notes. In one study, students watched a PowerPoint presentation and took notes one of the two ways. After the lecture, students who had taken notes on their laptop had done slightly better in "recalling facts"; however, longer term, after the opportunity to review their notes, students who had handwritten their notes performed better. This group's notes were longer and included images, which could have contributed to their more robust responses. According to one researcher, the hand writers have an advantage to "grasp ideas" and "hold onto new concepts."

The actual writing process doesn't seem to be at play; instead, it's about the "focused attention that handwriting requires." Also, handwriting is slower, which makes the note-taking process more intentional.

Other research supports laptop bans in classrooms. One study found that "students with open laptops remembered less lecture content than those with closed laptops." Several faculty have made the decision for this reason and because of other distractions. An assistant professor at Columbia University cited more reasons in a Washington Post op-ed about his decision to ban laptops:

• Since most students can type very quickly, laptops encourage them to copy down nearly everything said in the classroom. But when students stare at the screen of their laptops, something is lost. The students shift from being intellectuals, listening to one another, to being customer-service representatives, taking down orders. Class is supposed to be a conversation, not an exercise in dictation. 
• Clay Shirky, a professor at New York Univeristy, recently asked his students to stop using laptops in class. Another recent study convinced him to do so. The title: "Laptop multitasking hinders classroom learning for both users and nearby peers." A research team in Canada found that laptops in the classroom distracted not only the students who used them, but also students who sat nearby. Meaning, not only do the laptop-using students end up staring at Facebook, but the students behind them do, as well.
  

Discussion Starters:

• How do you prefer to take notes? Does this research influence your process?
• What about this research rings true for you, and what aspects do you question?

Emory Chalk Writing About Trump: Free Speech or Intimidation?

Emory students and administrators are debating whether chalkings on campus about Donald Trump are appropriate. In a letter to the school community, President James Wagner discussed both sides of the argument:

Dear Emory Community,

Yesterday I received a visit from 40 to 50 student protesters upset by the unexpected chalkings on campus sidewalks and some buildings yesterday morning, in this case referencing Donald Trump. The students shared with me their concern that these messages were meant to intimidate rather than merely to advocate for a particular candidate, having appeared outside of the context of a Georgia election or campus campaign activity. During our conversation, they voiced their genuine concern and pain in the face of this perceived intimidation.

After meeting with our students, I cannot dismiss their expression of feelings and concern as motivated only by political preference or over-sensitivity. Instead, the students with whom I spoke heard a message, not about political process or candidate choice, but instead about values regarding diversity and respect that clash with Emory's own.

As an academic community, we must value and encourage the expression of ideas, vigorous debate, speech, dissent, and protest. At the same time, our commitment to respect, civility, and inclusion calls us to provide a safe environment that inspires and supports courageous inquiry. It is important that we recognize, listen to, and honor the concerns of these students, as well as faculty and staff who may feel similarly. . . .

The letter goes on to identify actions the university will take, including clarifying policies and providing more opportunities for dialogue. The president also chalked a message of his own, shown here.

In related news, a Chronicle story reports the results of a Gallup survey about students' view of free speech on campus:

Nearly half of college students believe in curtailing the news media's access to campus events in certain scenarios, such as when protesters want to be left alone (48 percent), when they believe a reporter will be biased (49 percent), and when they want to tell the story themselves on social media (44 percent), a new Gallup survey has found.

At the same time,

While more than 75 percent of students believe colleges should expose students to all types of speech and viewpoints, a majority of students believe campus climates prevent people from saying what they believe out of fears of offending others.

Image source.

Discussion Starters:

• Describe both sides of the issue in this situation. Image you're a student on either side of the argument: defend your position.
• How well did President Wagner's letter address the controversy?

Amtrak Response to Crash

Once again, a rail crash brings mostly service updates-no apologies on its website and in the press. An Amtrak train struck maintenance equipment in Chester, Philadelphia, killing two maintenance workers and injuring 34 passengers and an engineer. The derailment disabled the internal communication system, so passengers in some cars didn't receive information for a half-hour after the accident.

According to a Reuters report, Amtrak has little to say:

Amtrak spokesman Mike Tolbert said the railroad was operating its normal schedule of train service along the busy Northeast rail corridor on Monday. He referred all other questions to the NTSB, which did not immediately respond to a request for comment.

As usual, the railroad's website is focused on service updates with nothing in the way of an apology. The "News Release" page shows two posts, one announcing the service disruption and another announcing the restoration plan. This was also the case in a Metro-North derailment in 2013 that killed 4 people.

Likewise, the Amtrak Facebook page gives only service updates.

To find an apology, we need to go to back to a 2015 crash. At the time, Amtrak's Facebook page did express some sentiment, although it repeats in subsequent posts, "We are deeply saddened by the loss of life." The second post conveys the message well:

As always, our first concern is taking care of our customers and employees. We have established a Family Assistance Center in Philadelphia to work closely with the family of passengers and crew on the train. Family members are encouraged to call the Amtrak Incident Hotline (800-523-9101) with questions about individuals on the train.   For our employees, the Amtrak Employee Assistance Program is staffed with trained counselors to support our employees and co-workers.

UPDATE: Finally, an apology on the Facebook page. Still nothing on the website.

Discussion Starters:

• What could explain the lack of apology? What, if anything, is different between this incident and 2015?
• How can Amtrak balance service updates and empathy? What should the organization post where?

"Brooklyn Bernie" Tweets

A New York Times article touts Bernie Sanders' Twitter approach, including a ghost tweeter. Twenty-seven-year-old Hector Sigala, Sander's digital media director, tweets anything potentially newsworthy as it happens. 

If numbers matter, the article reports a comparison between the Democratic frontrunners: 

Sanders has close to 2 million followers on his Twitter campaign account and has tweeted nearly 8,000 times. His opponent, Hillary Clinton, has tweeted less, 5,000 times, but she has nearly 6 million followers.

Sanders, however, has an edge because his tweets are much more personalized than Clinton's, say some social media strategy experts.

"He's been able to really resonate with (different groups) and connect with them on a level that many other candidates have not been able to do," said marketing consultant and social media strategy specialist Dr. Kay Green.

Although Sigala is proud of increasing Sanders' followers from 50,000 to almost 2 million, he is more focused on how tweets perform and has learned a few things: 

"We have got to" do something will do significantly worse than a tweet reading "We gotta."

"That's because it sounds like Brooklyn Bernie," Sigala said with a laugh.

This one was retweeted 2.4 thousand times and liked 7.2 thousand times. Not too shabby.

Image source. 

Discussion Starters: 

• What makes a good campaign tweet? What principles do we know about social media posts that will help your response? 
• How do numbers of social media likes and followers measure outcomes, and how do they fall short? What are the best measures of social media posts?

Former Trump Communications Director Quits and Reveals Strategy

So much for loyalty. A communication director for Trump's Make America Great Again Super PAC has quit the campaign and written an open letter about her experience. Most significant, Stephanie Cegielski says that Trump wanted to hit double digits and perhaps hit second place, but he never wanted to nor expected to be in the lead. 

In her letter, Cegielski wrote, "His candidacy was a protest candidacy," and she describes her history:

"Almost a year ago, recruited for my public relations and public policy expertise, I sat in Trump Tower being told that the goal was to get The Donald to poll in double digits and come in second in delegate count. That was it."

She describes her initial excitement representing an alternative candidate but writes, "It wasn't long before every day I awoke to a buzzing phone and a shaking head because Trump had said something politically incorrect the night before. I have been around politics long enough to know that the other side will pounce on any and every opportunity to smear a candidate." 

Cegielski, like many, was surprised at his continuing success. She eventually got disillusioned and now fears a possible win: 

"What was once Trump's desire to rank second place to send a message to America and to increase his power as a businessman has nightmarishly morphed into a charade that is poised to do irreparable damage to this country if we do not stop this campaign in its tracks.

"I'll say it again: Trump never intended to be the candidate. But his pride is too out of control to stop him now."

Cegielski's credibility is at stake. The New York Times and The Wall Street Journal haven't taken up the story, and a Washington Post writer calls the article a successful "exercise in reputation management."

Discussion Starters: 

• Read Cegielski's entire open letter. How do you assess her credibility? Consider The Washington Post perspective. Part of the writer's criticism is "She was literally the P.R. person for the Public Relations Society of America," and she "took a position teaching a class at New York University's School of Professional Studies" on Reputation Management.
• What, if any, loyalty does Cegielski have to Donald Trump and his campaign? 

Soccer Salary Differential Charts

Five members of the U.S. Women's National Team filed a complaint with the Equal Employment Opportunity Commission (EEOC) citing pay discrimination based on sex. Business Insider created a few simple bar charts to show striking comparisons. 

 

This one, and the others, are clear and simple, highlighting that the women's complaint may be justified. In the article, Business Insider uses strong language to describe the differences: 

• "...a closer look at the differences in pay between the men and women reveals a disparity that is jarring."
• "While it [per diem pay] is the smallest form of compensation, the difference between the men and women is arguably the most jaw-dropping."

In the four charts, consistency helps the viewer get the message quickly. All show men and then women on the x axis and use only two or three colors. 

Discussion Starters: 

• What principles of visual communication do these charts follow? How could they be improved? 
• Read the women's complaint. From the data presented, what other charts could complement the message? Consider pie charts or more creative visuals such as infographics.

Harsh Rejection Letters

Business Insider has gathered a fun lot of rejection letters to people who went on to have successful careers. One, to Andy Warhol, appears in Chapter 8 of the text book; others are to Harry Potter writer J.K. Rowlings and movie director Tim Burton. 

Many are harsh. Forget about a "buffer" and letting the receiver down gracefully. The one shown here, about fantasy writer Ursula Le Guin's novel, starts with a short compliment, and then doesn't mince words. A letter to Gertrude Stein mocks her book: "Hardly one copy would sell here. Hardly one. Hardly one." 

Some, although tough, probably gave good advice. A letter to comic book artist Jim Lee told him, "Your work looks as if it were done by four different people," and explains which parts were best and what he should work on: "Resubmit when your work is consistent and when you learn to draw hands." The artist agreed with the rejection. 

Specific feedback is best, but it doesn't have to cut to the bone.

Discussion Starters: 

• How do these examples differ from business rejections today? Why do think there is a difference? Consider the era and industry. 
• What is the harshest rejection you have received? How did you react, and what did you learn from it? 

Bad Data Almost Makes a Documentary

A study had found a link between autism and the vaccine for measles, mumps and rubella, but the article, published in 1998 in the British medical journal The Lancet, was retracted in 2010. The article caused parents not to vaccinate their children and, as a result, a rise in measles in Britain and the United States. This situation was used as an example of bad data in Chapter 9 of the text book. 

Although the study author, Andrew Wakefield, has had his medical license revoked because of financial and ethical violations, he recently directed and wrote a documentary, "Vaxxed: From Cover-Up to Catastrophe," which was to play at the Tribeca Film Festival. 

In a New York Times article, a doctor at Vanderbilt University School of Medicine discredited Wakefield's work as a documentary film: 

"It gave these fraudulent ideas a face and a position and an energy that many of us thought they didn't deserve. We're all for ongoing reasonable debate and discussion, but these are ideas that have been proven to be incorrect many, many, many times over the past 15 years."

The film has been pulled, with festival founder Robert De Niro explaining, "My intent in screening this film was to provide an opportunity for conversation around an issue that is deeply personal to me and my family. But after reviewing it over the past few days with the Tribeca Film Festival team and others from the scientific community, we do not believe it contributes to or furthers the discussion I had hoped for."

Discussion Starters:

• Did the film festival make the right decision? What are the consequences? 
• What are the implications of this situation for business communicators researching and writing reports? 

"Advantage Women" Program for Gender Equality

Ad agency Burson-Marstellar has a new initiative to help companies close the gender gap. According to PRWeek, the program will help companies with communications to "help all levels of leadership recognize the importance of women in executive roles and gender balance across the workplace":

Burson-Marsteller plans to leverage its research and data analytics to produce "evidence-based campaigns," including internal audits, perception analyses and research and message testing on women audiences.

This matters to companies partly because women make 90% of household purchase decisions.

The World Economic Forum has a Gender Gap Calculator that shows how old you'll be when the gap is eliminated, mediated by your home country. I'll be 169 years old. 

Of course communication is only part of the issue. Companies can make themselves more attractive to women leaders and encourage directors and senior managers to hire women, but a culture shift within an organization takes years, and we have a lot more work to do.

Discussion Starters: 

• How would you describe the impact of the gender gap on men and women?
• How can communication help? In other words, how will Burson-Marstellar be working with companies? 

Companies Threaten to Boycott Georgia

As Georgia Governor Nathan Deal ponders a religious-liberty bill, several companies, and now the film industry, have threatened to withdraw their business if the bill becomes a law. The Washington Post explains the purpose of the bill (H.B. 757), on the surface:

The bill protects religious leaders from being forced to perform same-sex marriage ceremonies and individuals from being forced to attend such events. It also allows faith-based organizations to deny use of their facilities for events they find "objectionable" and exempts them from having to hire or retain any employee whose religious beliefs or practices differ from those of the organization.

However, people are concerned that the measure is discriminatory. According to the Human Rights Campaign (HRC), 

The bill adds a so-called "Religious Freedom Restoration Act" (RFRA), as well as retains and broadens discriminatory provisions that give explicit cover to taxpayer-funded religious organizations choosing to discriminate. While falsely framed as prohibiting the state government from making funding or tax status decisions based on an organization's religious views, in reality it opens the door to discrimination in social services and employment against a wide range of Georgians. The RFRA and other provisions could result in a range of harms. Taxpayer-funded adoption and foster care agencies could refuse to place children in desperate need of loving and caring homes with LGBT couples. Homeless shelters could turn away unwed couples and their families. Food pantries could turn away people of other faiths or even engage in race discrimination. Drug counseling centers could refuse to hire a qualified LGBT therapist.

Delta, Coca-Cola, Home Depot, Marriott, and Google, are among those urging Gov. Deal to veto the bill. Disney, including its subsidiary Marvel, wrote in a statement, "Disney and Marvel are inclusive companies, and although we have had great experiences filming in Georgia, we will plan to take our business elsewhere should any legislation allowing discriminatory practices be signed into state law." AMC Networks has expressed similar sentiment.

The revenue loss could hurt the state's economy. Georgia is the third most popular state for feature films, after California and New York. A letter signed by actors, writers, producers, and others working in the industry echoed the companies' concerns: 

Dear Gov. Deal,

As leaders in the entertainment industry, we have deep concerns about H.B. 757, which would sanction discrimination against LGBT people and others in Georgia.

As you know, Atlanta is often referred to as the Hollywood of the South. During the last fiscal year, at least 248 films and television productions were shot in Georgia, adding at least $1.7 billion in direct spending to the state's economy. Additionally, the entertainment industry helped to bring more than 100 businesses to Georgia through relocation or expansion in the past fiscal year. Only two states - California and New York - have a larger entertainment industry footprint and both have statewide non-discrimination protections on the books. Unfortunately, Georgia not only lacks such protections, but could soon move from a bad situation to worse with H.B. 757.

We pride ourselves on running inclusive companies, and while we have enjoyed a positive partnership on productions in Georgia, we will plan to take our business elsewhere if any legislation sanctioning discrimination is signed into state law.

We urge you to veto H.B. 757 and send a strong message that Georgia will not tolerate discrimination against citizens, employees and visitors to the state.

Thank you in advance for your consideration of this urgent issue.

Image source.

Discussion Starters: 

• How persuasive is the letter from the Hollywood constituencies?
• What should Gov. Deal do? Either way, how should he communicate his decision?
• Do you find the bill potentially discriminatory? How does the language affect your reaction?

Starboard Value Wants New Yahoo Board

Yahoo has been struggling, and hedge fund Starboard Value has a solution: replace the entire current board of directors. Known as an activist group, Starboard was successful in ousting Darden Restaurants' board in 2014 and gave us a great example of a persuasive PowerPoint deck. So far, we see a letter to shareholders, but with the same persuasive language. The opening is shown here:

NEW YORK, March 24, 2016 /PRNewswire/ -- Starboard Value LP (together with its affiliates, "Starboard"), one of the largest shareholders of Yahoo! Inc. (NASDAQ: YHOO) with an ownership interest in approximately 1.7% of Yahoo's outstanding shares, representing an investment of approximately $570 million, today announced that it is nominating a slate of nine highly qualified candidates for election to Yahoo's Board of Directors at the 2016 Annual Meeting.

Starboard also announced today that it has delivered the following open letter to Yahoo shareholders, which includes the names and detailed biographies of each of Starboard's nominees towards the end:

A LETTER TO THE SHAREHOLDERS OF YAHOO! INC.

Yahoo's Current Board has Failed to Deliver Results for Shareholders

Significant Board Change is Desperately Needed to Hold Management Accountable and Properly Oversee any Operational Turnaround Plan, Separation, or Sale of Assets

The Board Refuses to Embrace the Need for Significant Changes at Yahoo

Starboard is Therefore Nominating a Slate of Nine Highly Reputable and Extremely Qualified Directors for Election at Yahoo's 2016 Annual Meeting

The letter goes on to say, "We believe that Yahoo is deeply undervalued and opportunities exist within the control of management and the Board of Directors (the "Board") to unlock significant value for the benefit of all shareholders.  Unfortunately, as we have outlined in previous letters, we have been extremely disappointed with Yahoo's dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the Board.  We believe the Board clearly lacks the leadership, objectivity, and perspective needed to make decisions that are in the best interests of shareholders."

CEO Marissa Mayer has made several attempts to trim the business, but the company may be sold. In the shareholder letter, Starboard criticizes the process: "Bidders are uneasy over what was described as an uncharacteristically long document, three to four times longer than usual, without inclusion of private financial information." The board is accused of dealing unfairly in the process.

Discussion Starters:

• Read the Starboard Value letter to shareholders. What principles of persuasion are illustrated? How do the word choices contribute to or detract from the argument?
• How should Marissa Mayer respond? Research the Darden situation to draw some comparisons.
• Do you think we'll see a detailed PPT deck, as we did for the Darden situation? Why or why not? What are the similarities and differences in the businesses that may drive the genre choice?

Kellogg's Responds to Employee Urination Incident

Kellogg's is responding to a video showing a man urinating onto a conveyor belt at one of its factories. The video was taken in Memphis, Tennessee, in 2014 during a labor dispute, so any affected products are past their expiration date. In other words, it's too late to worry whether your box of Rice Krispies was tainted.

The U.S. Food and Drug Administration has started a criminal investigation, and the company is investigating internally. Of course, customers are furious.

Kellogg's has issued a statement and is addressing questions on its Facebook page. To CNN, Kris Charles, a Kellogg's spokesman, said the company is "outraged by this completely unacceptable situation." He also said, "We were shocked and deeply disappointed by this video that we just learned of yesterday. We immediately alerted law enforcement authorities and regulators." 

Kellogg's also posted a notice on its website.

Discussion Starters:

• What would lead an employee to take this action? Imagine the scene at the factory. Would other employees see this and not take action? In other words, how does something like this happen?
• Are people over-reacting, or is this a serious issue?
• Assess the company's response. How well did the social media manager address the Facebook post? Could he or she have said anything different?
• In addition to the statement given to CNN, what else could the company have said?

MSNBC Host Tells Clinton to Smile

MSNBC host Joe Scarborough tweeted a suggestion to Hillary Clinton, and the backlash was fierce.

 

A Washington Post headline called it "tired advice," but Scarborough hasn't been inspired to apologize:

In a series of tweets Wednesday, Scarborough responded on Twitter, saying "we've called @BernieSanders grumpy for a year. @HillaryClinton is tough as hell. She doesn't need this fake outrage." In yet another tweet, he wrote, "we've hammered all candidates on their style and substance. We try to hold all candidates to the same standard." In reply to a woman who said he crossed a line, Scarborough wrote that "I don't look at HRC as a woman anymore than I did Thatcher. I look at her as a tough candidate who can handle it."

An NPR article gives us some history about women and smiling:

Back in 1970, the feminist writer Shulamith Firestone proposed her "dream action" for the women's liberation movement: she called for "a smile boycott" in which, she wrote, "all women would instantly abandon their 'pleasing' smiles - henceforth smiling only when something pleased THEM."

In these situations, it's helpful to consider whether Scarborough would have made the same comment to a man-and what others are saying about the presidential candidate, which Vogue reports:

Fox News's Brit Hume wrote: "Hillary having a big night in the primaries. So she's shouting angrily in her victory speech," while commentator Howard Kurtz suggested Clinton should speak in a more relatable tone. "Hillary shouting her speech," Kurtz Tweeted. "She has the floor; a more conversational tone might be better for connecting with folks at home."

Discussion Starters:

• Do you consider Scarborough's and other comments to be sexist or gender biased? Why or why not?
• Most articles confirm that Clinton does, in fact, smile. How, if at all, does this factor into this discussion?
• How does your own propensity to smile affect interactions and presentations? Have you received useful feedback about this?

Ad Agency CEO Resigns

In the midst of a discrimination lawsuit and evidence of sexist and racist behavior, the CEO of J. Walter Thompson has resigned. Founded in 1864, J. Walter Thompson is the fourth-largest agency in the world and was acquired in 2015 by WPP. 

In a highly publicized case, Erin Johnson, JWT's chief communications officer, accused CEO Gustavo Martinez of an "unending stream of racist and sexist comments as well as unwanted touching and other unlawful conduct." 

Alleged comments made by Martinez are shocking, so I won't quote them here, but you can read them for yourself if you're interested. 

WPP responded with a statement from Martinez: 

"I am aware of the allegations made against me by a J. Walter Thompson employee in a suit filed in New York Federal Court. I want to assure our clients and my colleagues that there is absolutely no truth to these outlandish allegations, and I am confident that this will be proven in court."

Johnson has a video of a May 2015 company meeting apparently showing Martinez making offensive comments, but his lawyers are trying to prevent this as evidence for the case, claiming it contains "highly confidential and proprietary" information.  

Image source.

Discussion Starters: 

• What else, if anything, should parent company WPP say at this time? 
• A lawsuit is usually an employee's last resort. How can employees subjected to discriminatory or harassing remarks address them internally? What is a company's responsibility in such situations? 

Carrier Layoff Video Goes Viral

In a video taken by a Carrier employee, we see bad news delivered first hand. An executive announces that the furnace and heating equipment factory will move to Mexico-eliminating 1,400 jobs at the Indianapolis plant.

Understandably, employees are upset. Represented by the United Steelworkers union, they receive good pay, including overtime. Employees seem to like working at the factory, despite long hours and what a New York Times article calls "painstaking work." As one employee said, "It's pretty cool working there. And when you do it for 60 hours a week, people are like family."

Akhil Johri, Carrier's CFO says that factory moves and job cuts "painful," but essential "for the long-term, competitive nature of the business and shareholder value creation. We feel good about being able to execute on that." The company is concerned that it will go the way of the auto industry, unable to compete with international manufacturers.

Robert McDonough, a senior executive at United Technologies (Carrier's parent company), said, "This was a really tough decision. This will have a real impact on folks we care about and this community. We're an American company, but we compete globally."

Still, UT promoted the decision during a recent meeting with shareholders and analysts, who typically react positively to such news. As the NY Times explains, 

"Wall Street is looking for United Technologies to post a 17 percent increase in earnings per share over the next two years, even though sales are expected to rise only 8 percent. Bridging that gap means cutting costs wherever savings can be found."

UT CEO Gregory J. Hayes is feeling the pressure of stock performance, and his 2015 bonus was cut by 50%. But, as article says, "with a total compensation package of $5.7 million, he made more last year than Carrier's factory workers could earn in several lifetimes."

Discussion Starters: 

• What's your view of the decision? Consider both UT and the employees' perspective. 
• Assess what we see of the Carrier meeting. How could the company have delivered the news differently? What, if anything, would change the employees' reactions? 

SeaWorld Ends Orca Breeding Program

SeaWorld is still trying to recover from the negative publicity from Blackfish, the 2013 documentary about orca whales in captivity. Now, the entertainment park has announced it will no longer breed orca whales. This is the biggest move since SeaWorld changed its shows, and it gives hope to animal rights activists. PETA tweeted about the decision as well as Ringling Brothers' decision to stop traveling with elephants in its circus. 

Slate is probably right. Pressure continues to mount on SeaWorld: ticket sales continue to decline, and corporations continue to pull partnerships. 

Although the reaction to the news is mostly positive, this still leaves current orcas in captivity, not living in the best conditions. But some experts say there's little other choice: whales bred in captivity cannot easily be released.  

Discussion Starters:

• Read SeaWorld's "5 Things You Need to Know. . ." Assess the content choices and approach. Who is the intended audience? Would they find this piece convincing? What questions might remain? 
• Should SeaWorld have made this decision long ago? Why or why not?

Wounded Warrior Project Exposed for Overspending

The Wounded Warrior Project, a not-for-profit organization that helps war veterans, is under fire for overspending. With 500 employees and $225 million raised in 2015, the organization seems, on surface, to be successful and doing good work. But its expenses show a different picture: 

• $250 million budgeted for soda and candy for its staff
• A CEO who was paid $470,000 a year
• Less than 60% of funds going to veterans (about 90% of top organizations' funds go to programming) 
• Lavish staff retreats, including one at a five-star resort that cost almost $1 million

The snack expenses have received particular attention. The budget was revealed in a senior executive's email about staff gaining weight. According to The Daily Best, "Emails reveal that the organization spent more than $46,000 on snacks at its Jacksonville, Florida, headquarters in summer 2015."

In addition, employees have been quoted saying the environment is like a "frat party" and that the outings aren't about team-building as claimed: "You don't learn anything about your teammates, you don't learn anything about how to better serve-you just have a good time at donors' expense, you have a good meal, and then everyone drinks."

Why hasn't this been reported sooner? According to another employee, the organization operates like a cult:

"It's a brainwashing, in essence… You need to be quiet, do what you're told, drink the Kool-Aid and parade around with that logo on. It's cult, it really is… it's like how you would train a monkey, if you do something give them a piece of candy-in this case you give them a T-shirt or a polo… it's extreme intimidation," 

According to The Times article, "At least half a dozen former employees said they were let go after raising questions about ineffective programs or spending."

No surprise, Wounded Warriors is also criticized for not meeting veterans' needs. Programming like cooking classes, yoga, hiking trips, and Lego clubs aren't that helpful. 

The CEO and COO have been ousted, and the board is trying to rebuild the organization. In a press release, management disputes many claims but admits, "The review also found that some policies, procedures and controls at WWP have not kept pace with the organization's rapid growth in recent years and are in need of strengthening."

Image source. 

Discussion Starters: 

• What do you think prevented employees from going to the press or other sources about Wounded Warriors' overspending? Even if jobs are threatened, we do have whistleblower laws to protect people. 
• In addition to the press release, what should Wounded Warriors do to rebuild trust? Do you think the organization will be successful, or is it hopeless?
• Will employees have a difficult time finding a new job? How can they discuss their experience in a job interview?

GS and Barclays Emails to Staff

A Goldman Sachs partner wrote an email to junior staff that was intended to be motivational. BusinessInsider writes, "every young person on Wall Street should read it.

Presumably, the impetus was a lot of unhappy people because of the market conditions and several recent employee departures. The email includes big pictures and few words. This is the first screen of it, and here's the rest. 

According to BusinessInsider, "We're told that the associates love it and they're passing it around internally." 

When Googling to find the email, I came across this Barclays email to interns from last summer. I'm not sure how I missed it, but it's an incredible example of Wall Street culture and communication.

The Washington Post published the email, calling it "the latest cringeworthy Wall Street memo to interns." It included "Ten Commandments" for new interns, such as bringing a spare tie for associates, wearing a bow tie, being the last one to leave at night "no matter what," and bringing a pillow to work for sleeping under the desk. The second commandment sounded overriding: "Remember: this is a summer internship for a full-time offer. It won't be easy. If you can't handle the heat, get out of the kitchen."

The Post received this response from Barclays management: 

"This email communication was in no way authorized by Barclays. Barclays is fully committed to creating an environment where both our bankers and our business can thrive. We have implemented policies and training guidelines to enable employees to gain valuable experience while at the same time maintaining a healthy work-life balance."

Discussion Starters: 

• Do you agree with BusinessInsider's assessment of the GS email? Why or why not? 
• What's your view of the large pictures? Do these help or detract from the written message? 
• How do you find the Barclays' "Ten Commandments" email? Does it match with your experience as an intern? 
• Discuss what may have happened internally at Barclays after The Washington Post published the email. Should intern managers have leeway in what they communicate to interns, or should their communication be held more tightly? 

250 Men's Wearhouse and Jos. A. Bank Stores to Close

Tailored Brands has announced the closing of about 250 Men's Wearhouse and Jos. A Bank stores. The men's clothing stores aren't producing expected profits, and a recent change worsened the situation. Jos. A Bank held a "buy-one-get-three-free" promotion for years, which annoyed consumers, but eliminating the sales strategy lost comparable-store sales 14.6%. 

In a press release on its website, Tailored Brands explained the decision with quotations from CEO Doug Ewert.

"While our fourth quarter and full year results were consistent with our revised guidance, we remain very disappointed by the weak Jos. A. Bank results.  Our transition away from unsustainable promotions has proven significantly more difficult and expensive than we expected.  We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business. Additionally, our Men's Wearhouse, Moores, and K&G brands continue to perform well, with profitability in line or ahead of our expectations. . . . 

As part of our store rationalization program we plan to close approximately 250 stores during fiscal year 2016. The store closures fall into three categories. First, we expect to close 80 to 90 full-line Jos. A. Bank stores which we believe have limited potential for meaningful profit improvement. Second, we will close all Jos. A. Bank (49) and Men's Wearhouse (9) outlet stores. We have determined that outlet stores, which collectively were not profitable, are not sufficiently differentiated enough from our core offerings and have not resonated with our customers. Lastly, we intend to close between 100 and 110 MW Tux stores. These closings are a continuation of our strategy of migrating tuxedo rentals to full line stores and reflective of our new partnership with Macy's, Tuxedo Shop @ Macy's.  We have refined our Tuxedo Shop @ Macy's rollout schedule and now plan to open 166 stores in 2016 with the balance of 122 stores to be opened in 2017."

Ewert did express his confidence in the remaining stores: "We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business."

Discussion Starters: 

• Analyze the company's statement. Looking at the organization, style, tone, and so on, which principles of business writing are followed, and which are not?
• How will employees react to this news, particularly after the decision to end the suit promotion?

Zuckerberg Calls Out Employee About #AllLivesMatter

CEO Mark Zuckerberg isn't pleased with the Facebook employee who crossed out "Black Lives Matter" and wrote "All Lives Matter" on the company's graffiti wall. In an internal message to staff, Zuckerberg called the action "disrespectful" and "malicious." 

 

MPK refers to the company's Menlo Park, California, office. Overall, two percent of the company's employees are Black, and I'm sure this incident won't help with their recruiting efforts. The tech industry statistics, according to USA Today, are worse:

A fraction of the tech work force in Silicon Valley is African American and little progress has been made on  the problem. Only 1% of venture-capital-backed start-ups are led by African-Americans and less than 1% of general partners at major venture capital firms in Silicon Valley, the ones that back tomorrow's Facebooks and Googles, are African American.

The predominantly white male industry runs the risk of losing touch with the diverse nation - and world - that forms its customer base. At the same time African Americans are being excluded from the fastest-growing, highest-paying jobs in the nation.

The graffiti wall is an open space for employees to write anything-and yet, crossing out another's writing makes a statement in itself. Zuckerberg is taking a positive approach by inviting employees to learn more about the #BlackLivesMatter movement. 

Image source. 

Discussion Starters: 

• Explain the issue as you understand it. What are #BlackLivesMatter and #AllLivesMatter?
• What's your view of Zuckerberg's reaction and message to staff? 
• The company may find out who changed the marking, What, if any, action is appropriate to take against the employee?