Is Sears Doomed?

SearsYahoo Finance sees little hope for Sears. For years, the retailer has been closing stores and now it seems to be on its last leg. Declining sales caused the company to close 80 stores in July and another 64 through December.

CFO Jason Hollar remains optimistic:

We understand the concerns related to our operating performance. We have fallen short on our own timetable for achieving the profitability that we believe the company is capable of generating. With that said, the team remains fully committed to restoring profitability to our company and creating meaningful value.

This next sentence is a lesson in business jargon:

We believe that our liquidity needs will be satisfied through the foreseeable future using the levers available to us through our portfolio of assets.

In other words, they still have stuff to sell off (like brands) to keep the company afloat-perhaps not the best strategy. A failing company that sells its profitable bits is taking a big risk. The CEO of a retail consultancy doubts anything can save the business:

[T]he funds raised are not being used to develop of growth the firm - they are being used to prop up an ailing and failed business.

In our view, it is now too late to turn this around. It is just not financially feasible to reverse it.

How long can this drag on? BizCom in the News posts in 2011 and 2014 also focused on Sears store closings.

Image source.

Discussion Starters:

  • What are the Sears' executives communication choices at this point? They can continue to prop up the brand image, or . . . what are some other options? Assess the potential consequences of each
  • Am I too harsh about Hollar's comment? If you were advising him to use simple or "plain" language, what would you suggest he say instead? You might consider a little emotional appeal as well.
  • Hollar mentioned Kenmore as a potential sales opportunity. What's Sears without Kenmore?
Read More

Comms About the Oakland Warehouse Fire

Oakland-ghostship1Oakland city officials and others are commenting on the "Ghost Ship" warehouse fire that killed at least 36 people who gathered for a concert party. A refrigerator may have caused the fire, but the building was under investigation for illegal living areas and potentially hazardous garbage on the property. A press release from the City of Oakland gives some history:

The last permitted use of the building was as a warehouse. On November 13, 2016, the City of Oakland received complaints of blight and unpermitted interior construction at the building. On November 17, 2016, a City building inspector visited the property and verified the blight complaint, but could not gain access to the building to confirm the other complaint regarding unpermitted construction. This is an ongoing investigation.

Members of the police department, sheriff's office, and others held a news conference on Sunday: 

Reporting has been painful, as more bodies have been found, most people in their 20s and 30s. We don't yet know whether the warehouse owners or Ghost Ship managers will be charged. One of the managers, Derick Ion Almena, said of the tragedy: "They're my children. They're my friends, they're my family, they're my loves, they're my future. What else do I have to say?" Later, he posted, "Confirmed. Everything I worked so hard for is gone. Blessed that my children and Micah were at a hotel safe and sound ... it's as if I have awoken from a dream filled with opulence and hope ... to be standing now in poverty of self worth."

A New York Times article blames rising housing prices in the Bay Area and in other cities in the United States:

The victims died because they were trapped in a tinderbox. Yet the economic backdrop of the tragedy is also important because it shows how rising rents and fears of eviction can push vulnerable people in a desperate search for housing to unsafe spaces.

For some artists, Ghost Ship offered a rarity: a place to work and sleep. 

Image source.

Discussion Starters:

  • Almena was criticized for his first comment, which sounded cold. What else should he have said?
  • Assess the news conference speakers. What advice would you give them for improving crisis communications and presentation delivery?
Read More
07: Persuasive Amy Newman 07: Persuasive Amy Newman

Catchy "Save Our Snowmen" Campaign

The organization Cool Effect has a clever ad campaign, including a full-page in this Sunday's New York Times calling for a "Global Snowman Sanctuary."

  Snowman2

In a video, Cool Effect takes a fun approach to bringing attention to climate change. The organization is using crowdfunding to support projects that reduce carbon emissions. A summary on the video explains:

More than 4,000 species of snowmen are threatened every year by climate change. In 2016 alone, large Avalanches of snowmen have been seen migrating thousands of miles away from their yards of origin to colder climates. With safe havens like The Global Snowman Sanctuary few and far between, we need your help to provide a cold shelter from the excruciating warmth. The planet can't wait and neither can they.

In an interview with the Yale Climate Connections group, Cool Effect CEO Marisa de Belloy said, "One differentiator from existing climate change conversation is our method of communication."

Discussion Starters:

  • What's your reaction to the group's communication? How is it different from other climate change initiatives?
  • What are the potential risks of this approach? Consider a few downsides and how the strategy might backfire.
Read More

Campaign Debrief Gets Heated

A postmortem campaign session at Harvard University's Kennedy School of Government "erupted into a shouting match," according The Washington Post. Hillary Clinton's communications director Jennifer Palmieri blasted the Trump campaign:

"If providing a platform for white supremacists makes me a brilliant tactician, I am proud to have lost. I would rather lose than win the way you guys did."

Palmieri was emotional during the discussion; the Post reported that she "choked up at various points of the session."

Kellyanne Conway, Trump's campaign manager, took her share of shots:

"Guys, I can tell you are angry, but wow. Hashtag he's your president. How's that? Will you ever accept the election results? Will you tell your protesters that he's their president, too?"

Campaign Debrief

Discussion Starters:

  • What's your view of the exchange? In what ways is this discussion productive, and how did it fall short?
  • Someone on the Trump team said of the Clinton team, "You guys are pathetic." Do you agree? Is this just about "sour grapes"?
  • Are people still saying "hashtag"?
Read More

Princess Cruises Admits Dumping

Princess CruisePrincess Cruises, a division of Carnival, will pay $40 million in penalties for illegally dumping oil-contaminated waste into the ocean. The Department of Justice announced the news and called the activity "deliberate":

Princess Cruise Lines Ltd. (Princess) has agreed to plead guilty to seven felony charges stemming from its deliberate pollution of the seas and intentional acts to cover it up.  Princess will pay a $40 million penalty-the largest-ever criminal penalty involving deliberate vessel pollution-and plead guilty to charges related to illegal dumping of oil contaminated waste from the Caribbean Princess cruise ship.

Assistant Attorney General Cruden had harsh words for the company:

The pollution in this case was the result of more than just bad actors on one ship. It reflects very poorly on Princess's culture and management.  This is a company that knew better and should have done better.  Hopefully the outcome of this case has the potential not just to chart a new course for this company, but for other companies as well.

Princess Cruises responded extensively in a statement posted on the website, in an FAQ, and in videos from the company executives. The president's video blames a few employees. A comment posted on YouTube under the video sums up one response: "this video needs taking down and a new one with someone who looks sorry is put up. her reading of this is terrible, like watching a 12yr old at a school play."

Discussion Starters:

  • Read the company's statement and watch the videos. How well do the executives respond to the crisis? What could they have done differently?
  • Does this news affect your decision to take a Princess Cruise? Why or why not?
Read More

Olive Oil Companies Sue Dr. Oz

Dr. OzDr. Oz is in trouble again for possible false claims. The TV personality is featured in the textbook in Chapter 9 for promoting products without evidence that they work. Now, an olive oil trade association, North American Olive Oil Association (NAOOA), is suing him for attacking the industry.

On his show, Dr. Oz said, "[A] shocking 80% of the extra virgin olive oil that you buy every day in your supermarket isn't the real deal," and "It may even be fake. Most of the olive oil in your pantry might be a scam." But Dr. Oz used taste tests, which Eryn Balch, a NAOOA representative said aren't an accurate way to determine product quality and purity.

A Forbes article explains the issue:

The problem with the study and its interpretation is twofold:  1) Sensory taste tests cannot detect purity and 2) The number of samples was small and hardly representative of the marketplace, testing only three specimens each of fourteen imported and five California brands. "It got misinterpreted, and it just spread," Balch said. Even the New York Times got it wrong, with an infographic claiming that 69% of all imported olive oils are "doctored," even though the Olive Center report showed no such thing. The Times eventually corrected its mistake but the damage was already done. "It's been five years now, and it's still spreading," Balch said.

Dr. Oz was most recently in the news because a group of doctors signed a petition to have him removed from his position at Columbia University Department of Surgery. He also made headlines for promoting a weight loss program without proven evidence. His impact is sometimes called the "Dr. Oz Effect" because his claims sell a lot of product.

Image source.

Discussion Starters:

  • Dr. Oz will fight the suit, of course. What claims and evidence will he use to make his case?
  • What does it take to convince you to buy a new product or stop buying a product you have been using? Consider principles from Chapter 7 on persuasion: logical argument, emotional appeal, and credibility. To which do you most respond?
Read More

Starbucks Gets a New CEO

Starbucks RoasteryStarbucks CEO Howard Schultz will become chairman of the company and leave the CEO job to Kevin Johnson, who has served as chief operating officer for the past two years. This is a big move for the company that Schultz bought in 1987 and led through tremendous growth since.

With the change, Schultz announced plans to open at least 20 Roastery premium coffee stories, which have been successful in Seattle. Schultz says the concept "has become widely recognized as the world's most immersive, coffee-forward retail experience."
In a news release and on a media conference call, Schultz says he'll shift his focus to retail innovation. Some speculate an interest in politics, but we'll see about that.

Johnson complimented Schultz on his leadership-to be expected during this type of transition:

I do want to acknowledge the obvious: Howard Schultz is among the world's most iconic leaders and entrepreneurs. I know Howard doesn't personally think of himself that way, but as his business partner and friend, I know this to be true. It is a privilege to work side-by-side with Howard. I have great confidence in our strategy, the partnership that we have developed, and the world-class talent we have assembled.

The Wall Street Journal reports that the decision is not based on data:

But the big bet is based solely on Mr. Schultz's instinct that it is the right thing to do. "There was no research," he said. Convincing his board and senior management team to create another brand wasn't easy.

Image source.

Discussion Starters:

  • Read the news release and media conference call script. What key messages do you take away?
  • What's your view of the decision? Should Schultz have more data to justify the move, or are his instincts enough?
  • The photo is a Starbucks Roastery store. What do you think of the design? Consider the target market.
Read More

Some Carrier Jobs Will Be Saved

Carrier-bigpicSome Carrier employees in Indiana will keep their jobs, while other positions, as planned, will move to Mexico.

President-elect Donald Trump has met with Carrier executives to keep the plant open for manufacturing gas furnaces. This is good news: more than 1,000 U.S. positions will be saved, but communication with employees has been lacking. Understandably, employees are skeptical about the decision and want more details. 

Here are a few quotes from those affected:

  • "There's excitement with most people, but there's a lot of skepticism and worry because we don't know the details."
  • "There's a few that are worried. And there's still a few that don't even believe this is real. They think it's a play, a set-up or a scam."
  • "Who is going to be retained? What is the structure there will be for the retention? What is going to be put in place?" "Are these the same jobs at the same wage? I would sure like to know as soon as I can."
  • "I'm optimistic, but I don't know what the situation is. I guess it's a good sign. ... You would think they would keep us in the loop. But we know nothing."

The last quotation is from the president of a local United Steelworkers union. The plant closure was announced in February and video recorded by an employee. During the meeting, the speaker said that they would involve union representatives, but they may be a missing link in this recent news.

Carrier released a statement about the decision, claiming, "The incentives offered by the state were an important consideration." Vice President-elect Mike Pence is currently the governor of Indiana.

Image source.

Discussion Starters:

  • What advice would you give to Carrier executives about how the plan is communicated? Consider how the initial announcement took place as well.
  • The company has a practical challenge: although they may have accepted incentives to keep the plant open, details about staffing have yet to be worked out. How can they communicate with employees in the meantime?
Read More
06: Neutral | Positive Amy Newman 06: Neutral | Positive Amy Newman

Dallas Cowboys Tony Romo's Statement Surprises Fans

Dallas Cowboys quarterback Tony Romo had a compression fracture and was replaced by a rookie player, Dak Prescott. During this time, the team did well, and it was painful for Romo to see. He made an emotional statement to express his feelings. He talks about the "dark place" and finding out "who you really are and what you're really about."

Romo compliments Prescott and says he has earned the right to be the Cowboys' quarterback. The Washington Post explains:

There will be no going back, not after this game. The Dallas Cowboys belong to Prescott, and Romo's future will have to be figured out later. Prescott led the Cowboys to another road victory Sunday, a bewildering, 35-30 defeat of the Pittsburgh Steelers at Heinz Field that gave Dallas an 8-1 record, a chokehold on the NFC East and eight consecutive victories.

Romo watched in a hooded sweatshirt, still inactive. But he will be healthy soon, maybe by next week. Prescott put to rest - for now, if not for good - any questions about who will play quarterback for the best team in the NFC.

Discussion Starters:

  • Romo's statement is unusual. How do you interpret what he's saying? Who is his audience, and what are his objectives?
  • One commentator said it's painful to see your team lose without you, and it's painful to see them win. How do you see that factoring into Romo's statement?
  • How do you feel about Romo after watching the video? How do you think his teammates may have reacted?
  • How would you rate Romo's emotional intelligence?
Read More

South Korean President Mired in Scandal

South Korea protestsWith a dismal 4% approval rating, South Korea President Park Geun-hy is facing possible impeachment. The country is outraged, and people are calling for her resignation. The trouble involves the president's long-time friend, Choi Soon-sil, who was just indicted for fraud and abuses of power.

The Washington Post describes Park's relationship with Choi:

A famously aloof person, Park is accused of relying on Choi for everything from policy advice to wardrobe choices, instead of seeking counsel from her aides. Choi, the daughter of a shamanistic cult leader, is accused of exploiting those ties to raise money and win favors for herself and her family.

Choi used her influence to get companies to "donate" $70 millions; business leaders felt if they didn't contribute, they would be subjected to audits or other actions taken by the government. The prosecution for Choi determined that Park was heavily involved.

According to The Washington Post, the protests are the largest the country has seen since 1987, when South Korea democratized.

Image source.

Discussion Starters:

  • What parallels do you see between this story and recent company scandals?
  • How should we decide when it's time for a country or a company president to resign? Is it Park's time?
Read More

Communications About Train Derailment in India

More than 140 people died, and dozens more were injured when a train derailed in Uttar Pradesh State, India. Although the cause isn't yet determined, one theory is a crack in the rail, which may be one of dozens on the country's tracks.

Railway Minister Suresh Prabhu visited the site and said, "Right now the immediate priority is rescue people and to bring relief to those injured and that's what we are doing." He later gave a statement to a reactive audience.

According to a CNN report, the train system employs 1.3 million people and serves 23 million passengers every day. The rail system has been criticized for poor maintenance: 

India's sprawling rail system is state-run, and the government is being heavily criticized on the nation's television networks. The rail system is known to be poorly maintained, and upgrades have been long overdue. In its last budget, the government put aside large sums of money to modernize the system, to improve traffic lights and lay more rail tracks.

According to a BBC report, "Train accidents are fairly common in India, where much of the railway equipment is out of date. An accident in Uttar Pradesh in March last year killed 39 people and injured 150." In 2014, 27,581 people died in train-related accidents in India. 

Discussion Starters:

  • How would you describe the setting where Railway Minister Suresh Prabhu is speaking? How does this compare to similar situations in the United States?
  • What should Prabhu say in his statement?
Read More
02 and 03: Interpersonal Amy Newman 02 and 03: Interpersonal Amy Newman

"Mansplaining" Hotline

MansplainingA Swedish trade union set up a temporary hotline for men and women to report instances of "mansplaining" on the job. Mansplaining was first described in 2008, and the term starting becoming popular around 2102. An Atlantic article describes its origins and offers a definition: "explaining without regard to the fact that the explainee knows more than the explainer, often done by a man to a woman."

A spokesperson for the union described the rationale for the hotline:

Our objective is to contribute to awareness and start a discussion which we hope will be the first step in changing the way we treat each other and talk about each other in the workplace.

It's important to create awareness about how seemingly small things that we do or say add up to a larger issue.

Mansplaining may be a type of microaggression, a term used for subtle, yet damaging forms of discrimination. Microaggressions can be small acts and expressions that, taken alone may not constitute, for example, racism or sexism. But when people are subjected to similar acts or comments over time, it sure feels like racism or sexism.

Columbia Professor Derald Wing Sue has written extensively on the subject. He defines microaggressions as "brief and commonplace daily verbal, behavioral, or environmental indignities, whether intentional or unintentional, that communicate hostile, derogatory, or negative racial slights and insults toward people of color."

Image source.

Discussion Starters:

  • This post started about mansplaining and ended about microaggressions. Do you see the connection, or is this a stretch?
  • Consider your own experience with mansplaining. Have you experienced it or done it? How has it affected you?
Read More

JPMorgan Found Guilty of Hiring Chinese Execs' Children

JPMorgan logoJPMorgan Chase will pay settlements worth $264 million for hiring the children of Chinese executives in exchange for business. A three-year investigation found that the hires constitute bribery, and five more banks are under investigation.

An SEC press release describes the findings:

According to an SEC order issued today, investment bankers at JPMorgan's subsidiary in Asia created a client referral hiring program that bypassed the firm's normal hiring process and rewarded job candidates referred by client executives and influential government officials with well-paying, career-building JPMorgan employment.  During a seven-year period, JPMorgan hired approximately 100 interns and full-time employees at the request of foreign government officials, enabling the firm to win or retain business resulting in more than $100 million in revenues to JPMorgan.

"JPMorgan engaged in a systematic bribery scheme by hiring children of government officials and other favored referrals who were typically unqualified for the positions on their own merit," said Andrew J. Ceresney, Director of the SEC Enforcement Division.  "JPMorgan employees knew the firm was potentially violating the FCPA yet persisted with the improper hiring program because the business rewards and new deals were deemed too lucrative."

A company statement is nowhere to be found. The major news articles don't include a company quotation, and neither the Press Releases or News and Announcements sections of the JPMorgan website list a response. 

According to a statement by the U.S. Department of Justice, the company has taken some internal action:

JPMorgan APAC also took significant employment action against six employees who participated in the misconduct resulting in their departure from the bank, and it disciplined an additional 23 employees who, although not involved in the misconduct, failed to effectively detect the misconduct or supervise those engaged in it. 

Discussion Starters:

  • How does this happen inside an organization? Consider who is involved in hiring decisions-sometimes a lot of people.
  • Should JPMorgan make a statement about the settlement? Complete an audience analysis before you decide, and consider why the company leaders might choose to stay silent.
Read More

New Balance Responds to Neo-Nazi Controversy

New BalanceNew Balance sneaker company has aligned with Trump's trade policies and is getting Neo-Nazi support it doesn't want. People responded by trashing their sneakers, and the company tweeted this statement.

A GQ writer suggests, instead, that New Balance should be more direct:

Why not just say, "We do not want the endorsement of Neo-Nazis and if you are a Neo-Nazi please stop wearing our shoes." Is it really that hard to plain and simple condemn Neo-Nazis? This seems to be an attempt to not ostracize any customers or even, yes, Trump himself.

New Balance seems to be walking a line, trying not to lose customers on either side of aisle. The executive may very well be questioning whether he should have weighed in about the trade policy at all. Although CEOs should enter political debates carefully, New Balance has a lot at stake, according to a company statement:

As the only major company that still makes athletic shoes in the U.S., New Balance has a unique perspective on trade in that we want to make more shoes in the U.S., not less.

Discussion Starters:

  • Should the executive have resisted commenting on Trump's trade policy? Why did New Balance enter the conversation?
  • What's your view of the company's statement? Should it have been more direct, as the GQ writer suggests? What are the potential consequences?
Read More

Facebook's Fake News

Facebook has been displaying news according to users' preferences, which could override news that conflicts with their point of view. During the election, people saw fake stories that may have affected their vote. One frequent fake news writer bragged, "I think Trump is in the White House because of me. His followers don't fact-check anything - they'll post everything, believe anything."

BuzzFeed analyzed data from Facebook news stories and found that the top 20 fake election news stories outpaced shares, comments, and reaction to the top 20 legitimate election news stories. Although Mark Zuckerberg at first denied any connection between FB's fake stories and the election outcome, he later posted a plan for the social networking site to address fake news.

Zuckerberg posted, "[W]e don't want any hoaxes on Facebook." Still, he said, it's tough to distinguish fake news, and it's quite uncommon:

"Of all the content on Facebook, more than 99% of what people see is authentic. Only a very small amount is fake news and hoaxes. The hoaxes that do exist are not limited to one partisan view, or even to politics. Overall, this makes it extremely unlikely hoaxes changed the outcome of this election in one direction or the other."

This is a clever strategy, but the top 20 fake news stories got more than 8,711,000 shares, reactions, and comments, so it's not an insignificant number.

Melissa Zimdars, an assistant professor of communication and media at Merrimack College, compiled this list of ways to spot fake news.

In addition, a small group of students at a hackathon at Princeton University wrote FiB, which uses an algorithm to distinguish true and false news.

Discussion Starters:

  • How do you assess news on Facebook or other social media sites?
  • Have you ever posted something that you knew wasn't true? Why, and did you consider the potential consequences?
  • Do you think fake news stories influenced the election? How?
Read More

Diageo Bans PowerPoint

Diageo websiteDiageo, an alcoholic beverages company, has banned PowerPoint presentations at some meetings. In an AdAge article, James Thompson, the company's North American chief marketing and innovation officer, describes his perspective:

"It stops conversation. It makes people feel secure they've communicated what they wanted to. But, in fact, it doesn't move anything on," he said. So he has instituted a PowerPoint ban in some meetings. "Just talk to me, please" is his plea. His goal is to ensure his marketing team is "not totally buttoned-up all the time," he said. "We just want people to be at their best, and that is usually when they are able to think and respond and build rather than sell."

The change is part of other efforts, for example, hiring, to revive the company culture. Thompson said, "I've got nothing against MBA programs," but he is recruiting people from different sources instead of "where people came into the organization in a very conventional way and worked their way up in a very conventional way."

Discussion Starters:

  • Do you agree with Diageo's decision? What are potential consequences of the decision?
  • What could be some alternatives to a ban on PowerPoint?
  • If you banned PowerPoint at some meetings, which type of meetings would you include?
  • Consider different types of PowerPoints discussed in the text book. How are some outputs better for some audiences?
Read More

Marriott CEO's Letter to Trump

Sorenson Letter to Trump
Marriott CEO Arne Sorenson is the latest company executive to write about the election results. In an open letter on LinkedIn, Sorenson offers some leadership advice.

The letter starts with Sorenson's views about government's role:

"The government has no business in our bedrooms – or our bathrooms. Everyone, no matter their sexual orientation or identity, has a right to live without interference in their private lives. Similarly, everyone, no matter their sexual orientation or identity, gender, race, religion disability or ethnicity should have an equal opportunity to get a job, start a business or be served by a business. Use your leadership to minimize divisiveness around these areas by letting people live their lives and by ensuring that they are treated equally in the public square."

Sorenson then focuses on three areas: "infrastructure, immigration reform and tax reform." As a hotel manager, Sorenson clearly is concerned about potential reductions in global travel and talent. He also encourages a more realistic approach for immigrants who are already in the U.S.  

Discussion Starters:

  • Why do you think Sorenson chose an open letter on LinkedIn as the medium for his message? What are some alternatives?
  • What principles of persuasion, discussed in Chapter 7 of the book, does Sorenson use? Try to find examples of logos, pathos, and ethos.
  • How does Sorenson's role as the CEO of Marriott influence his positions? Which of his suggestions would benefit hotel companies?
  • Should Trump respond? If so, how, and what should he say?
Read More

Grubhub CEO: Agree or Resign?

Grubhub
The CEO of Grubhub had a tough message for employees who disagree with his anti-Trump sentiment: "you have no place here." After the election, Matt Maloney wrote an email about tolerance and inclusion. He expressed his disappointment in Trump's election, particularly his "demeaning, insulting and ridiculing minorities, immigrants and the physically/mentally disabled" and his "nationalist, anti-immigrant and hateful politics."

He went a step further at the end of the email:

"If you do not agree with this statement then please reply to this email with your resignation because you have no place here. We do not tolerate hateful attitudes on our team. I want to repeat what Hillary said this morning, that the new administration deserves our open minds and a chance to lead, but never stop believing that the fight for what's right is worth it."

Media reports and social media responses interpreted Maloney's message as a threat: anyone who voted for Trump should resign.

Maloney has responded that his email was misinterpreted:

"I want to clarify that I did not ask for anyone to resign if they voted for Trump. I would never make such a demand. To the contrary, the message of the email is that we do not tolerate discriminatory activity or hateful commentary in the workplace, and that we will stand up for our employees."

This distinction is important; otherwise, the company may be discriminating against people based on political views.

Discussion Starters:

  • Read Maloney's full message to employees and his statement. How do you interpret his original message and the explanation?
  • Should Maloney have sent the email to employees? What are the benefits and risks to the company and to him personally?
  • Could Maloney have revised the email to avoid the controversy? How so?
Read More
Amy Newman Amy Newman

Danny Meyer Encourages Employees to Listen

Restaurateur Danny Meyer wrote a post-election message to his employees, reflecting on the Trump win. It's a mixture of election-hangover, reconciliation, and encouragement. Like other business owners, Meyer is taking the opportunity to support his staff's communication, particularly listening to one another.

Dear USHG Colleagues,

It is a gray, damp morning in New York City and by the empty, downward looks on the faces of some of the same pedestrians I see almost every morning on the way to work, it seems that many did not sleep a whole lot last night. Other than the usual sirens and periodic honking car horns – my morning walk was far quieter and more self-reflective than usual. Like others, I am working hard to sort out my own feelings so that I can be there for my family and for you. I'm not going to sugar coat it: this is tough.

Before any of us can make sense of what will transpire in America following this election, let's acknowledge what we do know:

1) Democracy works. This campaign was hard fought, and Americans came out in droves to make their votes count. We will have a new, democratically elected president who prevailed in the Electoral College, and the results will be accepted, even if not appreciated by the slight majority of voters who voted elsewise. Do not underestimate how important and how unusual that is among the world's nations.

2) For those who feel completely shocked and disappointed by the election results (didn't all the polls tell us it would be otherwise?), note that the outcome itself mirrors the very theme of the entire election: that as a country we have done an inadequate job of listening to or hearing one another, and when enough people don't feel heard, massive change is inevitable. When will we learn that it is far more important for people to feel heard – even than to be agreed with? As a country and as a society which too often prizes shouting over respectful listening, we have clearly done a poor job at that.

3) Donald Trump will be our next president. I acknowledge that I found it hard to type those words, but there, I did it, and it was actually therapeutic. Acceptance of reality is never a bad first step to healing.

4) My dogs woke up today wagging their tails, wanting to be fed, and needing their morning walk. They slept perfectly well last night, and I believe they are fully prepared to accept the election results so long as they continue to be loved and cared for by the human beings they love: their family. I learned something from them this morning.

5) Other than feeling really tired and somewhat off kilter, I did my usual morning routine. I remembered to shave, managed to put on both socks and shoes, and got myself to work. I've already given five hugs today, and received five in return. They won't be the last.

6) We are an incredibly resilient country and company, and there is no way that the results of this election are going to erode our ability to pick ourselves up and to persevere. When faced with any type of adversity, we have always found ways to end up in a better place, and this time will be no different. I feel confident that we will all see the sun shining – even before the end of this week.

As I wrote to you the night before the election – even before knowing these results – we have both a responsibility and a powerful opportunity to lead with our strongest suit: hospitality. The root of the word hospitality is hope, and hope is optimistic. I need each one of you to remember this : that every single person who chooses to dine at one of our restaurants – or anywhere we serve food, is primarily paying us to deliver the four gifts we are capable of doing better and more consistently well than anyone else:

1. Eye Contact – let people know you see them!

2. Smile – let people know you are happy to see them!

3. Hug – let people know that in making them feel good, you feel good!

4. Good food – give them the pleasure they came for!

Give those gifts with abandon, and we will show one another, and our guests why we are champions. It always works.

Enlightened Hospitality works and over the course of our company's history, whenever we have been tested by challenges, whenever our world has been rocked, and times are uncertain – we have turned to what we know and do best: first taking care of ourselves, so that we can do a remarkable job at taking care of others. I'm holding myself accountable to that, and need you to do the same. And that begins with listening.

I am aware that many in our community may have woken up this morning feeling just as elated by the election results as others are feeling deflated. I honor that, and want to learn from every single point of view. What a privilege we have to be a company that provides tables at which people can break bread, communicate their feelings, be heard, and advance what is best about being human!

Writing this has given me the opportunity to express myself to you, and if you've read this far, you've given me the gift of being heard. I hope you will examine your own feelings, and feel safe expressing yourself to your colleagues, and give them the gift of doing the same.

It is eminently clear to me that people who feel, express, listen, hear, and love is who we are, and what we must do for one another, and for our guests.

I promise to do that to my utmost for you.

Danny

Danny Meyer | CEO
Union Square Hospitality Group
www.ushgnyc.com

Restaurants are in the news after the election. Nation's Restaurant News summarizes, from a policy perspective, how Trump's presidency may affect the industry. And a New York Times article today, "Owner Was Target, but Restaurant Workers Are Swept Up in Immigration Raids titled," may justify concerns about immigration.

Discussion Starters:

  • What are Danny Meyer's main points to his employees? How do you think employees could receive it? Consider people on both sides of the aisle. 
  • Read the Nation's Restaurant News article. How would you summarize the potential impacts of Trump's presidency on the industry? Restaurant owners seem to be mixed about whether it's good or bad news.
Read More

NY Times Promises Fair Coverage

The New York Times publisher and executive editor sent an unusual email to subscribers about election coverage. Poynter reports that this email and another to employees were in response to criticism of left-leaning coverage of the campaign.

NYT re Election Coverage

The message is both reflective and forward-looking, questioning an unprecedented election and assuring readers fair coverage of President Trump in the future. The publisher and editor promise to stay true to the newspaper's core mission, and they thank loyal customers.  

Arthur Sulzberger is the newest member of the family to be named publisher of The Times. A fifth-generation publisher, Sulzberger is a descendant of  Adolph S. Ochs, who bought the paper in 1896.

The email comes after Sulzberger sent an internal memo to staff:

Dear Colleagues,

As we close one of the most momentous weeks in our nation's recent history, let's pause for a moment on those famous instructions that Adolph S. Ochs left for us: to cover the news without fear or favor.

As Donald Trump begins preparing for his new administration, those words have rarely felt more important.

The Times is certainly not afraid - our investigative report has demonstrated our courage many times over. That fearless, hard-fought journalism will always stand as the backbone of The Times, no matter the President.

But we also approach the incoming Trump administration without bias. We will cover his policies and his agenda fairly. We will bring expert analysis and thoughtful commentary to the changes we see in government, and to their ramifications on the ground.

We will look within and beyond Washington to explore the roots of the anger that has roiled red and blue America. If many Americans no longer seem to understand each other, let's make it our job to interpret and explain.

Our predecessors founded our singular newspaper for just this moment - to serve as a watchdog to the powerful; and to hold mighty institutions accountable, without fear or favor. We are more than ready to fulfill that promise.

Together, we have built the world's best digital newsroom and it, too, was made for just this moment. We will chronicle the new administration with a lightning-fast report that features stories told in every medium and on every platform.

Here is what we have all dedicated our careers to: Going after the biggest stories in the world, and telling them as ambitiously as possible.

Get some rest this weekend. We have lots to do.

Arthur

Discussion Starters:

  • You might read this as either an admission or a defense. What's your view? 
  • What are the communication objectives of both emails? You might consider the newspaper business today. To what extent do you think they meet those objectives? Overall, are the messages effective?
  • Assess the writing style against principles in Chapter 5. Pay particular attention to word choice and sentence structure.
Read More