Stanford Event Criticized as "Too White and Too Male"

The organizer of a history conference at Stanford admitted to having trouble identifying a more diverse panel of speakers. All 30 are white men.

Priya Satia, history professor at Stanford said, “Given how prevalent women are in the history department, you’d have to try really hard to come up with a roster of speakers that looks like that." Satia also leads the history department's diversity committee.

Referred to as a "conservative British historian" by the New York Times, Niall Ferguson says he invited women, but only one could attend. Ferguson also said, "We all agreed that we must redouble our efforts to represent diverse viewpoints in future conferences." 

Discussion:

• What are some possible reasons for the lack of diversity?
• Should Ferguson have done more to recruit women and people of color? How could he approach the conference planning differently?
• What is Stanford's responsibility? I don't see a statement from the university.
• In what ways does Ferguson demonstrate vulnerability, and in what ways does he fall short?

Toys R Us Closes

https://www.toysrusinc.com/restructuring

Toys R Us will close its remaining 735 U.S. stores and will lay off about 33,000 employees around the country. The company tried to survive after a bankruptcy filing in 2017, but the retailer can't compete with large stores, such as Walmart, and online sellers, such as Amazon.

Critics say Toys R Us failed to generate excitement, as one analyst describes in The Washington Post article:

“The liquidation of Toys R Us is the unfortunate but inevitable conclusion of a retailer that lost its way. Even during recent store closeouts, Toys R Us failed to create any sense of excitement. The brand lost relevance, customers and ultimately sales.”

A professor of brand management echoed this theme:

“We know that customers are willing to pay more for an enjoyable experience — just look at the lines at Starbucks every day — but Toys R Us has failed to give us anything special or unique. You can find more zest for life in a Walgreens.”

New York Senator Chuck Schumer is asking for the Federal Trade Commission (FTC) to ensure that customers aren't left "holding the bag" if they can't cash in or buy products with gift cards, particularly those recently received in December for Christmas.

Toys R Us has only a short statement on its website announcing the liquidation.

Discussion:

• Should the company leaders say more about the decision? What else, if anything, could be included in the statement?
• In addition to legal responsibilities, do company leaders have ethical responsibilities to make good on outstanding gift cards? Why or why not?
• In what ways has the company failed to learn from failure?

Turnaround for Martin Shkreli

We see a different Martin Shkreli from the one criticized for smirking during a congressional hearing on Capitol Hill in 2016. Shkreli ran Turing Pharmaceuticals when the company was accused of raising drug prices 5,000% in 2015. At the time, he was only 28 years old and was called "the most hated man in America."

Last week, Shkreli was sentenced to seven years in prison for fraud committed while he was a hedge fund manager and while running another drug company, Retrophin.

Shkreli pleaded for leniency. According to a CNBC report, he "broke down in tears." Another  article summarizes his statements in court:  

"The one person to blame for me being here today is me," a choked-up Shkreli told a judge before she imposed the prison term in Brooklyn, New York, federal court.

"Not the government. There is no conspiracy to take down Martin Shkreli."

"I took down Martin Shkreli with my disgraceful and shameful actions."

"This is my fault. I am no victim here," Shkreli said, before breaking down into tears as he promised not to let his lawyer Benjamin Brafman down in his efforts to contribute to society.

"Do not feel bad for me," Shkreli told a packed courtroom that included supporters and family members, many of whom had written letters asking Judge Kiyo Matsumoto to spare him from a harsh sentence.

And he had a message for the investors he duped: "I am terribly sorry I lost your trust. ... You deserve far better."

"I was never motivated by money," Shkreli said. "I wanted to grow my stature and my reputation."

"I am here because of my gross, stupid and negligent mistakes I made."

Image source.

Discussion:

• Let's assume Shkreli's statements are sincere. How could you explain Shkreli's smirking in 2015 at such as serious hearing and his behavior more recently?
• Do you believe Shkreli's statements are sincere? Why or why not?

NYT Learns from Failure

The New York Times admitted a mistake: the paper failed to write obituaries for some extraordinary women:

Since 1851, The New York Times has published thousands of obituaries: of heads of state, opera singers, the inventor of Stove Top stuffing and the namer of the Slinky. The vast majority chronicled the lives of men, mostly white ones; even in the last two years, just over one in five of our subjects were female.

The paper has begun a collection of obits for people "who left indelible marks but were nonetheless overlooked." Write-ups are available for 15 women, including Sylvia Plath, an accomplished poet who committed suicide; Margaret Abbott, the first woman to win an Olympics game; and Ida B. Wells, who fought racism and lynchings in the South in the 1890s.

Discussion: 

• How well does The New York Times address the failure? 
• Why are they writing these obituaries now? What are the arguments for the collection and against it?

More Companies Take Action to Curb Gun Sales

Dick's Sporting Goods has taken a strong stance on gun control. In a statement, the company announced it will no longer sell assault-style rifles and will no longer sell firearms to people under 21 years of age. The statement dances the fine line between both sides of the gun control debate:

We support and respect the Second Amendment, and we recognize and appreciate that the vast majority of gun owners in this country are responsible, law-abiding citizens. But we have to help solve the problem that’s in front of us. Gun violence is an epidemic that’s taking the lives of too many people, including the brightest hope for the future of America – our kids.

Walmart also announced it will no longer sell to people under 21 years of age. The company ended some firearm sales in 2015, so this policy further restricts what people can purchase when.

Companies are in a tough spot. Dicks, Walmart, Delta, and other companies have suffered backlash for their decisions, including people promising to boycott.

Discussion:

• Compare Dick's and Walmart's statements. How do they differ? Which is more effective and why?
• Describe Dick's choices. What are the risks and rewards of the announcement?
• Should other CEOs jump into the controversy? How might the decision depend on industry, customer base, or the leader him- or herself?

News Conference About Florida Shooting

Officials have made statements about the school shooting in Parkland, Florida, that left 17 people dead and another 16 injured. Themes focus on healing—giving families and others affected time to mourn, charging the perpetrator, and preventing similar incidents from happening in the future.

As we typically see in these news conferences, multiple people give their perspective, and we may see the influence of their role and their personal views.

Political conversations about the FBI's role and gun control have already started. President Trump also made a statement after the tragedy.

Discussion:

• Analyze each person's contribution to the news conference. How do you see their role and their personal views affecting what they say and how they say it?
• What's your view about the political conversation: should we avoid talking about gun control now, or it this the best time? How do your own political views factor into your perspective?

Tweets Cause Journalist to Lose Job Offer

The New York Times has rescinded a job offer to a journalist because of reactions to some of her tweets. Criticism about Quinn Norton came after people discovered her relationship with a neo-Nazi called "Weev." Norton referred to him as a friend. The Times also reported new information about Norton: "It also turned up years-old tweets by Ms. Norton in which she used slurs against gay people and another in which she retweeted a racial slur."

We know that most recruiters use social media to vet candidates. The practice is controversial: some believe it's an invasion of privacy, while others believe it's potentially discriminatory. In this case, information was discovered about Norton after an offer was extended, which led to the awkward situation of pulling the offer. Other companies will do a thorough review of candidates before an offer is made.

According to Jobvite's 2017 Recruiter Nation report, recruiters disapprove of candidates' "political rants" online. This situation may fit that category.

Discussion:

• What's your view of companies "Googling" candidates? What are the arguments for and against this practice?
• Did the Times make the right decision? Why or why not? Read more about Norton's views here.
• How does Norton's potential job with the New York Times affect the outcome? Would a different media company have made a different decision? In other words, how is this an issue of integrity?
• Norton chose not to disclose her social media history. Would her vulnerability have helped or hurt her candidacy at the Times?

Toys "R" Demonstrates Vulnerability in Message to Customers

Struggling with competition from Amazon and Wal-Mart, retailer Toys "R" Us will close 1,600 stores to try to stay in business. The news follows the bankruptcy filing in September and may be the company's last chance.

In a message to customers posted on the website, Chairman and CEO David Brandon delivers the bad news and demonstrates vulnerability:

In addition to the update, Brandon confirms, in bullets, two issues that may be most relevant to customers now:

• We are open for business and ready to serve you.
• We are honoring customer programs.

Discussion:

• Read the entire message to customers. What are Brandon's objectives, and how well does he meet them?
• How does Brandon demonstrate learning from failure and vulnerability?
• Assess the message organization and writing style. What works well, and what could be improved?

Morgan Stanley Clarifies a Termination

In December, a female reporter accused a former congressman who was hired as a managing director at Morgan Stanley of sexual harassment. Morgan Stanley fired Harold Ford Jr., and he lost his gig as a frequent commentator on MSNBC.

Ford had maintained his innocence, and now, the company is saying Ford was not terminated for sexual harassment but was let go because of other misconduct: 

" Morgan Stanley would like to clarify the circumstances of Mr. Ford’s departure. We take allegations of inappropriate conduct seriously, The press has reported that Mr. Ford was terminated for sexual misconduct. He was not. We have not received any internal allegations of sexual harassment or misconduct involving him either before or after his separation became public. As previously stated, his separation was based on corporate policy.”

The statement is curious because it mentions only internal allegations—or maybe I'm reading into it too much.

Discussion:

• How do you read the statement and possible distinction between internal and external?
• Why would Morgan Stanley issue such a statement two months after Ford's termination?

Intel CEO Warns of Vulnerability, a Little Late

The CEO of Intel has bad news: a patch for a chip vulnerability will slow down computer operations. In an interview with Bloomberg, a technology analyst explains the typical process when finding security issues: companies find a bug and solve it before going public. However, this time, an issue known for perhaps a year went unsolved and was kept quiet—until now.

Bloomberg says chip makers had downplayed the effects of the patch, but CEO Brian Krzanich has finally described the issue:

“We believe the performance impact of these updates is highly workload-dependent. As a result, we expect some workloads may have a larger impact than others. As of now we have not received any information that these exploits have been used to retrieve customer data.”

In other words, the patch works but will slow down operations.

A technology analyst says this is the first time chip makers like Intel have gotten caught needing to admit a potential vulnerability, and it's unclear why it hasn't been fixed before this point.

Bloomberg reports on the secrecy and implications:

“Our first priority has been to have a complete mitigation in place,” said Intel’s Parker. “We’ve delivered a solution.”

Some in the cybersecurity community aren’t so sure. Kocher, who helped discover Spectre [a bug], thinks this is just the beginning of the industry’s woes. Now that new ways to exploit chips have been exposed, there’ll be more variations and more flaws that will require more patches and mitigation.

"This is just like peeling the lid off the can of worms," he said.

Image source.

Discussion:

• In what ways did Intel avoid accountability? How did the avoidance affect the company? What would have been a more appropriate response to finding the bugs?
• Distinguish between this computer vulnerability and vulnerability in interpersonal relationships. One is good; the other is not.
• Read the Intel CEO's quote, above. It sounds jargony but was presented at CES, a conference of IT professionals. Did he use appropriate language, or does his word choice demonstrate a lack of transparency? What do you think?

Restaurant Closes and Owner Says Little

Guy's American Kitchen and Bar in Times Square, NYC, will close after just five years and plenty of controversy. The owner, Guy Fieri, has a big personality and has been known to be defensive when criticized. After a scathing 2012 review of the restaurant, Fieri went on the Today show to voice his reaction:

"I thought it was ridiculous. I mean, I've read reviews —- there's good and there's bad in the restaurant business, but that to me went so overboard, it really seemed like there was another agenda."

"The tone, the sarcasm, the question style."

"To me, it's impossible to come in and have a dining experience and have every single thing is wrong, unless you come in with a different agenda and you want to sensationalize something and you want to blow it out of the water. It's a great way to make a name for yourself — go after a celebrity chef that's not a New Yorker that's doing big concept in his second month. Great way to hit it."

Now, Fieri isn't saying much about the decision to close. The restaurant website homepage, shown here, looks like business-as-usual, and Eater reports an "update" on its article:

"Update: In a statement to Eater via a spokesperson, Fieri did not shed light on the reason for the closure, but noted he is 'proud' of serving millions of people throughout the years and thanked his team."

Discussion:

• Compare the process of closing this business with that of Book World, also recently announced. How do the companies' approaches differ? 
• Fieri could demonstrate some humility and vulnerability, but we don't see much. How could a different reaction help him?

Book World Announces Closing

The country's fourth-largest bookstore is closing the last of its 45 stores. Communicating such bad news is difficult for any leader. Book World was a family-owned business since 1976, which probably makes the decision even more painful.

The announcement, including book liquidation plans, is posted on the company's website. We see some of the writers' personality with the abundant use of exclamation points. Otherwise, the message is fairly straightforward.

Discussion:

• How do we see Book World's leaders demonstrating authenticity and vulnerability in this post?
• What's your view of the exclamation points? When is it appropriate to use these marks in business writing, and when is it overkill?
• What else, if anything, should the Book World statement include?

Amtrak Leaders Take Responsibility

Amtrak's leaders have apologized for a train crash in Washington that left three people dead and about 100 more injured. Two of the men who died were train enthusiasts who traveled together to experience the new route.

In the past, Amtrak has been slow to apologize. This time, the response is better, yet not enough for some, as you see in this response on Twitter.

The president and CEO's full message is below:

To our customers,

On behalf of everyone at Amtrak, I want to share that we are deeply saddened by the tragic event involving train 501 on December 18th. We are profoundly sorry for those who have lost a loved one, were injured, or are otherwise impacted by this horrible event. At this time, our primary concern continues to be caring for our customers and employees, and we are using every available resource to assist those affected. We share everyone’s sense of urgency to identify exactly what caused this to happen, and we continue to fully cooperate with the investigation being led by the NTSB.

If you are traveling with us during the holiday season, I want to assure you that Amtrak remains committed to your safety. Our primary focus is and will always be getting you to your destination safely, comfortably, and efficiently. We are truly privileged to serve you and thank you for your continued patronage.

Richard Anderson

As always in these situations, Amtrak provided regular service updates on its website, and this apology is an improvement. But, after several similar crashes, including those involving MTA trains, people want to know what will be done to prevent this from happening again.

Discussion:

• What's your view of the president's message? How well does the message meet principles of apologies?
• What else should the organization do now? How can it rebuild its image and assure people that Amtrak trains are safe?

Morgan Spurlock Admits Sexual Misconduct

Documentarian Morgan Spurlock published an account of his sexual conduct, admitting, "I am part of the problem." He demonstrates vulnerability and describes a situation which a woman describes as rape. He also admits that he was "unfaithful to every wife and girlfriend I have ever had." Spurlock is the first public figure who admitted misconduct before he was accused.

His most famous movie was Super Size Me, which criticized McDonald's for unhealthy food. Super Size Me 2: Holy Chicken! was going to premiere at the Sundance Film Festival but will be withdrawn. In addition, Spurlock's production company, Warrior Poets, announced that he will step down:

On behalf of Warrior Poets, we as partners have always supported our company and its endeavors. As of today, Morgan Spurlock will be stepping down effective immediately.

We will continue to lead the company as equal partners, producing, distributing & creating from our independent production company.

Respectfully,
Co-Founder & Partner Jeremy Chilnick
and Partner Matthew Galkin

Discussion:

• What's your view of Spurlock's statement, which some call a "confessional"? Some consider it trite, while others applaud his openness.
• Was it best for Spurlock to step down from Warrier Poet? Why or why not?

Podcast About Using LinkedIn for Networking

In this 8-minute podcast, hear how Lizzie, a Cornell University student, musters up the courage to contact people on LinkedIn for informational interviews. Her message is shown here.

Amy Newman with Lizzie on LinkedIn

Chipotle Announces Search for New CEO

After founding the first Chipotle restaurant in 1993, Steve Ells will leave his position as CEO and become executive chairman. Chipotle locations have struggled with food safety issues since 2008, when customers at a La Mesa, California, restaurant came down with hepatitus, and 54 Kent State students were affected by norovirus at a local restaurant. Since then, other locations have been affected by these illnesses as well as Salmonella and E. Coli.

Company stock has suffered, and this move signals a hopeful change. It's a tough spot for the company's board because Ells has been the face of Chipotle for so long, but the situation has not improved despite efforts for better food safety and new menu items, such as queso dip, which was not well received.

In a company press release, Ells is quoted:

“I am incredibly proud of Chipotle and our people – and grateful to our loyal customers – and while we are continuing to make progress, it is clear that we need to move faster to make improvements,” said Ells. “Simply put, we need to execute better to ensure our future success. The Board and I are committed to bringing in an experienced leader with a passion for driving excellence across every aspect of our business, including the customer experience, operations, marketing, technology, food safety, and training.”

Added Ells, “Bringing in a new CEO is the right thing to do for all our stakeholders. It will allow me to focus on my strengths, which include bringing innovation to the way we source and prepare our food. It will ultimately improve our ability to provide our guests with delicious food that is prepared with high quality ingredients that are raised responsibly and served in a way that is accessible to everyone. I am confident that this will allow us to deliver value for our shareholders, and provide rewarding opportunities for our employees. Chipotle has vast unrealized potential. As we work hard to restore our brand, I believe we can capitalize on opportunities, including in areas such as the digital experience, menu innovation, delivery, catering, and domestic and international expansion, to deliver significant growth.”

The board chair is also quoted, speaking highly of Ells:

“Steve is a visionary leader and one of the most successful restaurateurs in history, having grown Chipotle from a single restaurant in Colorado to more than 2,350 restaurants today. Steve made the decision, and the Board agreed, that now is the right time to identify a new CEO who can reinvigorate the brand and help the company achieve its potential. We are committed to recruiting a world-class CEO for this incredible opportunity.”

Discussion:

• Read the entire press release. What is not said? Should the release include anything else? 
• How well does Ells's quote inspire confidence in the future of the brand? What parts do you find most and least convincing?
• Who are the audiences for the press release? What are the company's objectives?
• In a sense the board is demonstrating vulnerability. How would you describe their approach, and how effective do you think this is?

Uber's Recovery Problem

Uber's new CEO Dara Khosrowshahi may be having a tougher time than he anticipated. New charges have been issued against the company, including paying off a hacker to keep quiet about stolen customer information.

An analyst on Bloomberg said, "The payment of ransom is egregious, and the lack of investment in proactive cybersecurity measures...was beyond the pale." Other industry experts agree. “I was shocked,” a CTO officer at Menlo Security Inc. “Companies need to own up.” The board recently began an investigation into the $100,000 payment, and they terminated the chief security office and another employee as a result.

Before this incident, Bloomberg reports that Khosrowshahi was already apologizing for the company's past actions:

Since he took over, London moved toward outlawing the service, citing “a lack of corporate responsibility.” Uber is appealing. (“I apologise for the mistakes we’ve made,” Khosrowshahi said in response.) He then traveled to Brasilia to meet with officials there and ward off restrictions on Uber’s business. (“In the past, we were a bit aggressive,” he told a Brazilian newspaper.) And now the mishandled data breach. (“We will learn from our mistakes.”)

I will argue what I have in the past on this blog in my new book on Building Leadership Character: Travis Kalanick lacked humility. He believed he was above the law and therefore wouldn't be help accountable for anything.

Discussion:

• Do you agree with my assessment of Kalanick? Why or why not?
• What can Khosrowshahi do to rebuild the company image?

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.”

Image source.

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?

Comparing Data About Drug Overdoses

We can talk about the opioid crisis and try to persuade people in many ways: by telling stories, showing pictures, or presenting data. The number of deaths from all drug overdoses in 2016 is 64,070, but without more context or comparisons, it's hard to know what this number means. Is it a lot?

One important data point for context is the U.S. population, which is about 324 million. Still, does this convince you this is a "crisis," as the media calls it?

One convincing approach is to compare the number of deaths. When we compare the figure to deaths from car accidents, AIDS, and the Vietnam War, we see that, indeed, the deaths from drug overdoses are significant-at least compared to other death tolls we consider significant.

Here's an example of a simple bar chart to represent these numbers visually.

Image source (pills).

Discussion:

• What other comparisons could work well to convince an audience that drug addiction is a serious issue?
• A different approach is to personalize the crisis. I heard an interview with someone who almost died from an overdose, and he said that, about every six months, someone he knows dies from an overdose of opioids. How compelling do you find this report? What are the potential downsides of using this type of description?

NFL Owner Criticized for Comment

The owner of the Houston Texans has apologized for a comment he made when describing protests around players kneeling during the national anthem. For weeks, the NFL has struggled with its response, and now the situation is exacerbated by inflammatory comments. Owner Bob Nair said, "We can't have the inmates running the prison," as he expressed concern about the league's revenues.

Players were offended by the comment and, according to an ESPN report, considered a walkout. One player, Andre Hopkins, skipped practice. A Mashable writer explains sensitivities around the comment:

This, of course, is not a very sensitive thing to say given the context of the protests: started by Colin Kaepernick as a means of protesting the police-involved killings of unarmed black men, continued by a group of mostly black players, facing criticism and pressure from a group of mostly white owners concerned about their bottom line.

Nair did apologize in a statement: 

"I regret that I used that expression. I never meant to offend anyone, and I was not referring to our players. I used a figure of speech that was never intended to be taken literally. I would never characterize our players or our league that way, and I apologize to anyone who was offended by it."

Image source.

Discussion:

• What's your reaction to the comment: offensive, no big deal, or something else?
• How well does Nair's apology meet criteria for good apologies?
• How well does Nair demonstrate vulnerability in this situation?