Shark Tank Episode Illustrates Lack of Listening and Humility

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The owners of Birddogs didn't do very well on Shark Tank. In Season 9, Episode 14, investors grilled the makers of gym shorts with built-in underwear and were skeptical about their responses.

At some point, Kevin O'Leary stopped the discussion to ask how they thought things were going. They didn't say much at that point, but viewers knew the answer: they probably wouldn't get a deal. At the end, Daymond John, the clothing expert and most likely partner, said, "You were also telling us about how you're better than everybody else. . . . I think it's a very elitist attitude, and I just wouldn't be able to work with you."

The entrepreneurs spoke in generalities about how their marketing was better than that of anyone else. They also claimed a 40% email marketing open rate, while their competitors had only 4%, which the sharks didn't believe.

When Lori Greiner was asking questions, one of the owners kept trying to jump in. He didn't demonstrate good listening skills.

Perhaps the worst of it was at the end. In closing, one of the men was incredulous about why they didn't get a deal.

Discussion:

  • Watch the episode (available on Hulu). How well do you think the team handled the pitch? Do you share the sharks' view that they were arrogant and that their numbers "didn't add up"?
  • How do you assess their presentation skills? What would have improved their delivery?
  • How could they have listened and demonstrated humility? Try to give specific examples.

Oprah's Rousing Speech

At the Golden Globes, Oprah did what Oprah does: get a crowd going. Her acceptance speech for the Cecil B. DeMille award echoed themes from the night, celebrating Rosa Parks and the #MeToo movement.

Seth Meyer's show opening included a bit about Oprah running for president, and her speech did sound a bit "presidential": "I want all the girls watching here and now to know that a new day is on the horizon!" If we judge by the standing ovation and social media reactions, she already has a following.

A Washington Post article goes beyond last night's reactions and quotes her partner saying, "It's up to the people. She would absolutely do it."

Discussion:

  • What were the main points of Oprah's speech, and how did she organize it?
  • Assess her delivery skills. What makes this a powerful speech?
  • How did Oprah demonstrate compassion in the speech? How effectively did she get her message across?

Al Franken Resigns

In a statement CNN calls "totally unapologetic," Minnesota Senator Al Franken has resigned. Although he was awaiting an ethics committee investigation, more women have come forward in the meantime reporting similar incidents of groping and forced kissing.

A group of more than 30 senators led by New York Senator Kristen Gillibrand called for his resignation. In a Facebook post titled "Senator Franken Should Step Aside," Gillibrand wrote that she is "shocked and disappointed" by his behavior, and she referred to this time as "a watershed moment."

Franken read a statement on the Senate floor, including this section:

"Over the last few weeks, a number of women have come forward to talk about how they felt my actions had affected them. I was shocked. I was upset. But in responding to their claim, I also wanted to be respectful of that broader conversation. Because all women deserve to be heard and their experiences taken seriously. I think that was the right thing to do. I also think it gave some people the false impression that I was admitting to doing things that in fact I haven't done. Some of the allegations against me are simply not true. Others I remember very differently."

He also pointed to others accused:

"I am leaving while a man who has bragged on tape about his history of sexual assault sits in the Oval Office and a man who repeatedly preyed on young girls campaigns for the Senate with the full support of his party. But this decision is not about me. It's about the people of Minnesota."

A CNN editor summarizes Franken's statement: 

"The message of all this is clear as day: I didn't do anything really wrong. The people who say I did are wrong or don't remember it right. And it's ridiculous that people like Trump and Moore are in the White House and might be in the Senate, respectively, while I am being forced out."

Discussion:

  • Do you agree with the CNN writer's assessment that Franken doesn't really apologize? Why or why not?
  • Watch Franken's full statement and assess his delivery skills. How well does he use tone, gestures, and so on to support his message?

Wells Fargo's Stiff CEO Video

TempWells Fargo is still trying to rebuild trust after several scandals, including creating millions of fake accounts for customers. The company sent emails to customers and included a link to a new video featuring CEO and president Tim Sloan.

The email starts with a sort-of apology, indicating that they haven't communicated enough.

Wells Fargo home page
 
Dear Wells Fargo Customer,

Customers like you have told us they want to hear more about what we've been doing to address our challenges over the past year.

Please click here for a two-minute message from our CEO and President, Tim Sloan.

We've been making things right for our customers and team members, compensating customers who were harmed, and rehiring thousands of team members.

We've been holding senior leaders responsible, up to and including termination, and the forfeiture of hundreds of millions of dollars in executive compensation.

And we've been fixing what went wrong, including the elimination of product sales goals for retail bankers in our bank branches and call centers, reinforcing our commitment to ethics and integrity, and refocusing everything we do on our customers.

For more details and the latest on our ongoing efforts to build a better company for our customers, please go to www.wellsfargo.com/commitment.

 

Sloan's messages are consistent: they take responsibility, and they are trying to "make things right." But Sloan is as stiff as he was in another video, created in April.

Discussion:

  • Do you agree or disagree with my criticism of the email and video? Why or why not?
  • How else would you evaluate the email and video?
  • Sloan also isn't giving many specifics. What else, if anything, should he say?

Air Force Admits Failure

The U.S. Air Force admits it didn't properly report Devin P. Kelley's history to federal law enforcement. The error is critical because Kelley's violent past may have prevented him from buying guns he used to kill 26 people in a Texas church. Kelley spent 12 months in prison and left the Air Force with a "bad conduct" discharge after harming his wife and child.

Air Force spokeswoman Ann Stefanek said, "Initial information indicates that Kelley's domestic violence offense was not entered into the National Criminal Information Center database." This omission led to Kelley's passing the background check before he could purchase guns at a firearms retailer.

Of course, the incident raises bigger questions about how often relevant background information is not reported about former service members. U.S. Air Force Sec. Heather Wilson appeared on MSNBC's Squawk Box to admit the failings during a televised interview. When asked whether she was concerned about possible liability from victims' families, she said, "No, I'm more interested in responsibility. And we've taken responsibility, and we're going to find out what happened and fix it.”

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Discussion:

  • The Air Force has readily admitted a critical failing, which could have led to 26 deaths. Why would the organization choose this disclosure?

  • Describe how Wilson is demonstrating vulnerability. What are the potential downsides?

Goodell Skirts Anthem Issue

Temp 2NFL Commissioner Roger Goodell seems to be conflicted about how to handle the issue of players kneeling during the national anthem. A PR Daily writer summarizes the results of a recent news conference.

His aim was to stem backlash over players kneeling during the national anthem. However, Goodell's response didn't do much to alleviate the NFL's troubles.

This video caption reads, "Roger Goodell: 'We believe everyone should stand for the National Anthem' | NFL." But other messages aren't quite as clear. In a memo to owners, Goodell wrote, "we also care deeply about our players and respect their opinions and concerns about critical social issues. The controversy over the Anthem is a barrier to having honest conversations and making real progress on the underlying issues."

In a tweet and elsewhere, President Trump has made his perspective clear. Temp 2

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Discussion:

  • Assess Goodell's news conference. Consider his audience and communication objectives.
  • Contrast the NFL's with the NBA's. What differences and similarities do you notice? Which league is handling the controversy better?

How Bad Was Theresa May's Speech?

TempThe Telegraph calls it a "car crash" and "one of the most disastrous conference speeches in history." British Prime Minister Theresa May faced three problems in front of the Conservative Party Conference in Manchester.

First, a protestor interrupted the speech to hand her a "P45," which is a document used to fire workers in the U.K. (Sounds like a "pink slip" in the U.S.) The prankster was escorted out, and May recovered by making a joke: "I was about to talk about someone I'd like to give a P45 to, and that's Jeremy Corbyn," who is the leader of the Labour Party. 

Then, she had a coughing fit and had to drink a glass of water, some of which seemed to spill into her hand. (Here, I'm reminded of Marco Rubio's odd sip of water.)

Finally, captions dropped a letter, leaving "for" as "or." The Telegraph and other media outlets reported this mishap as "the stage falls apart," but I would say that's quite an exaggeration.

Discussion:

  • I think the media outlets were too harsh. Do you agree? Why or why not?
  • This is a humbling experience for May. How well did she recover?
  • What lessons can you take for your own presentations?

Wells Fargo on the Hot Seat Again

TempAgain, Wells Fargo executives faced angry lawmakers, and again, Senator Elizabeth Warren encouraged the CEO to leave. This time, she told CEO Timothy Sloan, "You should be fired." Last year, around this time, she told former CEO John Stump, "You should resign." She also referred to Stumpf's actions as "gutless leadership."

Senator John Neely Kennedy had tough words for the CEO too:

What in God's name were you thinking? I am not against big, but with all due respect, I am against dumb. I am against a business practice that has puts Wells Fargo first and customers second.

Sloan defended the board and his leadership by saying that a "throughout, independent investigation" has been made public. He said that he's "been making change at this company for 30 years," his actions have resulted in "fundamental change at the company," and that he has "the support of 270,000 people."

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Discussion:

  • How convincing do you find Sloan's testimony? Should he continue at Wells Fargo or leave the company?
  • Analyze Elizabeth Warren's arguments. Do you find her criticism too harsh, on point, or something else?
  • From this longer video segment, do you believe Sloan is holding himself accountable? What tells you he takes responsibility, or what else would he need to do to convince you?

News Conference About Hurricane Maria

TempRicardo Rossello the governor of Puerto Rico, gave a news conference to encourage people to move to shelters before Hurricane Maria hit. He warns people that the storm will be "catastrophic" and unlike what residents have experienced in the past.

The video caption reads, "Governor URGES Puerto Rico residents to shelter as Hurricane Maria arrives," but he could sound more urgent.

Sadly, the governor was right in his predictions. Hurricane Maria left the entire island without power and destroyed many properties.

That's a lot of people supporting him behind the podium. We don't know whether they each spoke or were there for some other reason.

Discussion:

  • Who are the governor's primary and secondary audiences for the news conference?
  • What are his communication objectives for each audience?
  • How well does he achieve his objectives?
  • How urgent does he sound to you? What could he do to sound more urgent?

News Conference about Deaths at Florida Nursing Home

TempEight people died in a nursing home from heat after Hurricane Irma. Local police, the medical director of a nearby hospital, and the city mayor held a news conference to describe the situation. Although the video references six people, two additional have died for a total of eight at Rehabilitation Center at Hollywood Hills. No one was present from the facility.

Florida Governor Rick Scott called the situation "unfathomable" and "inexcusable." The facility didn't lose power, but the air conditioning wasn't working. It's not clear why people weren't transferred to another facility, for example, the hospital across the street. Patients died of heart attacks, dehydration, and other issues related to the extreme heat.

Critics say that some business in Florida, such as gas stations, are required to have backup generators, but this is not the case for nursing homes. A criminal investigation has begun. The owner of the facility has a criminal past involving kickbacks; the case was settled for $15.4 million

At this point, the facility has been evacuated, and people are being accommodated at other locations.

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Discussion:

  • Who should be held accountable in this situation?
  • Assess the three statements in the news conference. How appropriate was each to the person's role?
  • We're obviously missing someone from the rehabilitation facility. Would representation help or hurt their case?
  • For the questions we hear in English, how well does the police chief respond? What strategies does he use to deflect questions he can't or won't answer?

iPhone X Face ID Doesn't Work During Presentation

TempDuring Apple's big presentation to unveil and show features of the iPhone X, the Face ID program didn't work.

The presenter, Craig Federighi, SVP Software Development, reacted briefly when the passcode screen came up. Then he said, "Let's try that again." He picked up another device, and the feature worked.

What happened? Verge reports that it probably wasn't a problem Face ID. Rather, the passcode screen came up as a precaution just as it would on earlier versions when you restart your phone or when you haven't used it for a few hours.

Still, it was tough moment for Federighi.

Things often go wrong during presentations but, as is the case for more serious company crises, how the situation is handled is sometimes remembered more than initial issue.

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Discussion:

  • How well did Federighi handle the situation? What, if anything, could he have done differently?
  • Apple has been quiet on the issue. Should the company explain what happened? If so, in what form, and what should they say?
  • In this small moment, do we see authenticity from Federighi? What does he tell us about who he is as a person?

Equifax Statement About Security Breaches

TempA cyberattack on credit reporter Equifax revealed personal information about 143 million people. What makes this breach worrying is the type of information that was stolen: Social Security numbers, birth dates, addresses and, driver's license numbers.

On the home page of its website, Equifax has a red post directing readers to a statement for more information. They are also offering identity protection for people affected.

Temp

But the company isn't making it easy. When I entered my information, I saw a message that I may be affected, and then I saw the message at right, saying, in order to enroll, I would need to revisit in 4 days for some reason. Temp

The company fixed another criticism: if you signed up for their protection, there was some question about whether you were waiving rights to sue. The company clarified: "In response to consumer inquiries, we have made it clear that the arbitration clause and class action waiver included in the Equifax and TrustedID Premier terms of use does not apply to this cybersecurity incident."

Overall, the company is accepting responsibility. The Chairman and CEO Rick Smith explained the situation on a video.

Discussion:

  • Assess Equifax's statement. What principles of bad news are followed, and how could it be improved.
  • Now assess Rick Smith's video statement. Consider the question above as well as delivery skills.

Defense After Nurse Is Arrested

TempA nurse at a Utah hospital was arrested for disobeying an officer's request, and everyone seems to be apologizing. An officer asked Alex Wubbels to draw blood from a man who was unconscious, and she refused. Wubbels said, in order to draw blood, the patient would need to be under arrest, and she would need to see a warrant. She said she had authority from hospital administrators to maintain her position.

The police officer, Jeff L. Payne, became angry and said she would be arrested if she didn't comply. And then he followed through while Wubbels screamed for help. It seems that Officer Payne's anger may have impaired his judgment.

Statements from the Salt Lake City major and the chief of police offer apologies for the incident:

Mayor Jackie Biskupski:

"Like many of you, I watched the video of police officers interacting with University of Utah Medical Center nurse Alex Wubbles for the first time through the media late yesterday. What I saw is completely unacceptable to the values of my Administration and of the values of the Salt Lake City Police Department. I extend a personal apology to Ms. Wubbles for what she has been through for simply doing her job.

There is currently an Internal Affairs investigation examining the actions, and the Civilian Review Board is conducting a parallel investigation. I have reiterated to Chief Brown that I expect the highest level of professionalism and integrity from his team. I have also instructed Chief Brown to conduct a thorough review of all policies and trainings to ensure respect for all individuals, in all situations. Following the incident Salt Lake City Police Department command met with hospital administration. We immediately changed policies that may have been a factor in this encounter, and the officer's duties have been modified.

I take these incidences very seriously. Since I took office, I have been working with Salt Lake City Police Department to increase our use of de-escalation techniques and we have had great success, and this incident is a troubling set back to those efforts. No medical professional in Salt Lake City should be hindered from performing their duties, and certainly not be fearful of the police officers they so often partner with to save lives."

Chief Mike Brown:

"I was alarmed by what I saw in the video with our officer and Ms. Wubbles. I am sad at the rift this has caused between law-enforcement and the nurses we work so closely with. I want to be clear, we take this very seriously. Immediate steps were taken and within 12 hours, body cam footage was reviewed and an internal affairs investigation started. We've looked at the actions that took place, the policies that could have prevented it, and the training that must be done. Within 24 hours of this incident, Salt Lake City Police Department took steps to ensure this will never happen again. We met with hospital CEO and COO, Nursing Management Team, their legal representation team, and University of Utah Chief Brophy. 

Most notable of all these conversations were that we apologized for the incident and promised to find a solution. Additionally, our policy management team continues to work closely with the hospital staff on improved policies and training. 

To date, we have suspended the officer from the blood draw program. We have already replaced our blood draw policy with a new policy. All remaining officers on the blood draw program have reviewed, and are operating under the new policy and protocol.

It is my sincere desire to get back to a very cooperative, respectful, and friendly relationship with our "brothers and sisters in white" we work so closely with. Salt Lake City Police Officers have a very soft spot in our hearts for all medical professionals. We know that if we are ever hurt in the line of duty, it is their caring hands that will perhaps save our lives one day. 

I believe we can learn from mistakes and from building strong relationships with everyone we work with and serve. By doing that we become a stronger police department." 

In addition, Mayor Jackie Biskupski apologized during a news conference and announced an internal investigation. Biskupski also said they met with hospital administrators and changed some policies. Police Chief Mike Brown also apologized  and said they would put steps in place to make sure this type of incident doesn't happen again.  

Discussion:

  • How effective are the apologies from the mayor and police chief? What works well, and what could be improved?
  • How well did they answer questions? What were their best responses?
  • In what ways did the nurse demonstrate courage? What risks did she take to stand by her position?
  • How did she also demonstrate integrity?

Pastor Responds to Criticism

TempJoel Osteen, senior pastor at Lakewood Church in Houston, Texas, has a large following, but he has taken a hit since Hurricane Harvey. Critics say Osteen should have offered his mega-church, which seats 16,8000, to people needing housing after the storm. Instead, Osteen tweeted his prayers, and people say it wasn't enough.

Church officials said the building experienced "severe flooding," but pictures told a different story. In TV interviews, Osteen defended the church's practices. He said, "The main thing is, the city didn't ask us."

 In an article on PR Daily, Brad Phillips raised the issue of authenticity:

If you're cynical about televangelists, Osteen's tone in the Today show interview probably struck you as smarmy and self-satisfied. If you're one of the millions of people who watch his sermons and read his books, you probably viewed him as sincere.

Phillips also questioned why the church didn't have plans in place and, specifically, why the leaders didn't coordinate with Houston city officials ahead of time. 

The social media response has not been kind: memes abound.

Discussion:

  • What's your view of the church's actions during and after the hurricane?
  • How well did Osteen respond to criticism? What are his main arguments? Which are strongest, and which fall short?
  • Given Phillips' question about Osteen's authenticity, how do you view his interview on the Today show?
  • What's your view of the social media response and memes: cruel, justified, or something else?
  • How do your own religious beliefs or practices influence your assessment of the situation and of Osteen, particularly? 

Corona and Other Brands Capitalize on Eclipse

With the total eclipse coming Monday afternoon and glasses hard to come by, Corona is offering a solution. In a 35-second video, the company instructs us how to make a viewer from a beer box. TempApparently, solar corona is the beer's namesake, so the connection isn't entirely random. Ad agency Cramer-Krasselt created the campaign.

NASA Goddard posted a video to show how to make a viewer out of a cereal box, and a generic box is used as an example. But other companies have been using the eclipse to promote their brands.

A CNBC article identifies "17 clever ways brands are cashing in on the eclipse." Volvo, for example, designed a custom moon roof for viewing the eclipse from the road, but reports warn about traffic and accidents if people aren't careful while driving. Other companies are selling drinks, mattresses, train rides, houses, and a variety of food: half-moon cookies, donuts, pizza, and more.

Discussion:

  • What are potential downsides of a brand associating with the eclipse and using the event to promote products?
  • What is the most outrageous promotion you have seen related to the eclipse?

VP Pence Makes the Commencement Rounds

Notre DameMore than 100 students walked out of Vice President Pence's commencement address at Notre Dame, but he got a better reception at the Naval Academy.

In his Notre Dame speech, Pence applauded the university for its commitment to free speech:

"While this institution has maintained an atmosphere of civility and open debate, far too many campuses across America have become characterized by speech codes, safe zones, tone policing, administration-sanctioned political correctness - all of which amounts to nothing less than suppression of the freedom of speech. These all-too-common practices are destructive of learning and the pursuit of knowledge, and they are wholly outside the America tradition."

 A statement by the students read, "Mike Pence's policies target the most vulnerable groups in our society."

 At the U.S. Naval Academy, Pence spoke about character, particularly, "humility, orientation to authority, and self-control. Here's what he said about humility:

Remember that character is destiny. Be men and women of integrity. People follow people they trust.  

I truly believe that among the most important qualities of leadership-whether it's in the armed forces or any other endeavor-are humility, orientation to authority, and self-control. And I encourage you to cultivate these qualities as leaders in increasing measure every day from this day forward.

With humility, consider others to be more important than yourselves. Be servant leaders.  Approach every challenge as a learner and a listener first. In multiple counselors there is wisdom, and the best decisions by the best leaders come from counsel and collaboration.

 

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Discussion:

  • What's your view of the students' walking out on VP Pence's speech? Read their rationale. Does it influence your opinion?
  • Assess his speech at the Naval Academy. What are the high and low points from your perspective? How would you assess his delivery skills? How might your political opinions influence your assessment of his speech?

President Trump's Coast Guard Speech

Trump Coast GuardPresident Trump gave the commencement speech at the Coast Guard Academy. The theme was perseverance, and he gave the new graduates good advice:

Now, I want to take this opportunity to give you some advice. Over the course of your life, you will find that things are not always fair. You will find that things happen to you that you do not deserve and that are not always warranted, but you have to put your head down and fight, fight, fight. Never, ever, ever give up. Things will work out just fine.

Apparently, he then went off script:

Look at the way I've been treated lately. Especially by the media. No politician in history - and I say this with great surety - has been treated worse or more unfairly. You can't let them get you down. You can't let the critics and the naysayers get in the way of your dreams. I guess that's why, thank you, I guess that's why we won.

The speech came after a difficult week for the president: he fired FBI Director James Comey, who questioned the president's integrity in return.

Of course, reports about President Trump's speech vary according to political alignment. Conservative outlets such as Rush Limbaugh and Fox News applaud his calling out the media. Limbaugh wrote, "Media Livid," and Fox's headline was "Trump Takes on Media." Compare those headlines with CNN's: "Trump's Pity Party at Coast Guard Academy Was Shameful."

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Discussion:

  • What's your view of the speech? Do you agree more with the conservative media outlets or the more liberal CNN? How does your opinion align with your own political views?
  • Take the other side of the argument. In what ways was the comment appropriate or inappropriate?
  • How would you assess President Trump's speech overall? Consider delivery skills discussed in Chapter 11.

United Announces New Policies

United actionUnited Airlines CEO Oscar Munoz has found some strength and a way out of the situation that angered so many around the world. The company admits that dragging a man off of a flight two weeks ago wasn't the best way to make room for four United employees.

The company has published "Changes We're Making" in an email to loyalty members, in videos, on its website, in a report, and in an interview with NBC News. The website statement begins as follows:

We are making changes to ensure that we always put customers first

By United Airlines

Earlier this month, we disappointed our customers and ourselves when a passenger was forcibly removed from one of our planes. We can never say we are sorry enough for what occurred, but we also know meaningful actions will speak louder than words.

We committed to take action as a result of this incident, and today marks the first step in changing how we fly, serve and respect our customers.

 In the email with the subject line, "Actions Speak Louder than Words," United summarized its most significant policy changes:

We will increase incentives for voluntary rebooking up to $10,000 and will be eliminating the red tape on permanently lost bags with a new "no-questions-asked" $1,500 reimbursement policy. We will also be rolling out a new app for our employees that will enable them to provide on-the-spot goodwill gestures in the form of miles, travel credit and other amenities when your experience with us misses the mark. 

The $10,000 offer for re-booking is particularly clever: it's a generous amount, and it's unlikely the airline will have to pay that much.

Meanwhile, the airline settled with Dr. Dao for an undisclosed amount. Good idea to end the nightmare. The last thing United needs is more publicity about the case.

Discussion:

  • How are they doing? Analyze the audience, communication objectives, content, and writing and presentation styles. Also consider the timing and policy changes.
  • Read the full report. Which principles of report writing are allowed, and what could be improved?
  • To what extent will these communications and policy changes affect United's image?

Heated Wells Fargo Shareholders Meeting

WellsThe annual Wells Fargo shareholders meeting was disrupted by angry shareholders wanting to understand how 2 million accounts were created without customers' knowledge and without the knowledge of senior leaders of the organization. One attendee shouted, "You did it that way and you allowed it to continue for years." Another yelled, "We elected you guys to protect us, to be our watchdogs, and you were not." Security removed three protestors.

Despite the protests, all 15 board members were re-elected, although some narrowly. The board's three newcomers, including the new CEO, Tim Sloan, won more support.

Sloan started the meeting with a promise to change:

"There is no doubt that the last seven months have been one of the most difficult periods in our company's 165-year history. I can assure you that we are facing these problems head-on and that Wells Fargo is emerging a much stronger company."

Board turnover will happen over time. Some directors are nearing the mandatory retirement age, and others may still be forced out. But for Brandon Rees, the deputy director of the A.F.L.-C.I.O.'s investment office, the change isn't coming quickly enough. The group holds 1.6 million shares of Wells Fargo, and Rees voted against all of the current board members:

"Fresh blood is needed to ensure that the board has sufficient independence. The narrow vote puts incredible pressure on some directors to reconsider their membership. I hope that by this time next year, we have a new slate."

In March, Gretchen Morgenson wrote a New York Times piece about the increasing number of online shareholders meetings. Partly for convenience, partly to skirt accountability and confrontations like this, more and more companies are holding web-based meetings. The director of an asset management group was quoted in her article:

"These are not management's meetings; they are the meetings of the owners of the company." Online-only events give company officials "tremendous power over controlling, censoring and really limiting the engagement of share owners with the board and management."

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Discussion:

  • Are you surprised at the board vote? Why or why not?
  • What's your view of the shareholders who spoke out? Were they inappropriately disruptive or just finding their voice?
  • What do you think of online shareholder meetings. When might they be appropriate or not?

United CEO Speaks Out

SW competitionAfter an insufficient apology, United CEO Oscar Munoz has changed his tune. In an interview with ABC News, Munoz said, "This first thing I think is important to say is to apologize to Dr. Dau, his family, the passengers on that flight, our customers, our employees. That is not who our family at United is. You saw us at a bad moment."

Munoz also changed his view of the passenger. In a letter to employees, he seemed to blame the passenger, but in the interview, he said Dr. Dau wasn't at fault at all, although he did pause before saying so.

When asked why he didn't communicate "that shame" (he said he was "ashamed"), Munoz said he wanted to get the "facts and circumstances first." He also said his words didn't reflect what they were really feeling.

He explained that the incentive model needs to be re-evaluated because it clearly works better before people have boarded. For the future, Munoz said they will never bring a law enforcement official on a flight to remove a paying passenger again.

Discussion:

  • How did Munoz do in the interview? What principles of crisis communication did he demonstrate, and where did he fall short?
  • What else should Munoz have said?
  • Analyze Munoz's delivery skills. How would you advise him to approach future interviews?
  • Southwest and other airlines are taking full advantage of the situation. What are the potential downsides of ads like the one here?