Jodie Fisher, Actress

Jodie Fisher, an actress who appeared in several R-rated movies and on the NBC reality show “Age of Love” may never have thought her resume would include bringing a major technology company to its knees.   But it happened on Friday when Hewlett Packard’s board of directors forced CEO Mark Hurd to walk.

After Fisher wrote a letter claiming sexual harassment, the board investigated, concluding no on the harassment, but yes, there was a problem. Hurd violated company policy by falsifying expense reports.  They weren’t happy that he concealed his relationship with Ms. Fisher, and paid her when there was no legitimate purpose.  

Move over Tiger.  Self-destruction always finds a new poster-boy.  Tiger is officially old, old news, especially since he can’t find his game to save his life.  Hurd’s legacy now becomes just another tragic story about a swift end to a great career.  Shake your head and wonder.       

The board did the right thing, of course, even though initially people were questioning it.  They had ethical issues in the past.  The policy was crystal clear.  And Hurd had championed it.  HP’s standards of business say employees should pose a simple test as they decide whether an action is appropriate: “Before I make a decision, I consider how it would look in a news story.”  

It’s particularly painful for HP employees and investors, since Hurd is said to have brought a period of consistency and outperformance.  Those who watch the company credit him for the most successful corporate turnarounds in American business history, posting five years of blistering profit growth and iron-fisted cost cutting. The stock outperformed the broader market by 101% over his five-year tenure. 

But you can’t let the CEO’s stink all over the company, period.  As a director, your duty is to protect the brand. Yes, Wall Street is chattering now about how uncertain HP’s future is.  But long term, the company will survive.  In fact, on Monday, some analysts were calling it a buying opportunity as the company is well positioned and the stock relatively cheap.   

Still, there’s a lesson here, about how the CEO brand and the company brand co-exist, sometimes uneasily.  Like Tiger’s wife, HP’s directors knew the marriage was doomed.  Mirroring the self-respecting Elin, they called it what it was and I doubt they will ever look back.  Hurd will be hurting all the way to the bank with an exit package reportedly worth $35 million; his once glorious CEO brand suffers a mortal wound.  But HP, while vulnerable without a succession plan, will come out fine.   

Short term, it will be rocky; company executives will have to go into defensive posture as they have, assuring the street that they will stay the course and aggressively pursue their strategy for new markets and products.  Investors may wait until they recruit the new CEO to pass ultimate judgment.  But the board should be lauded.  They didn’t flinch.  

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President Obama needed a win.  Coming off of one of the worst speeches of his career, the Oval Office “tough guy speech,” his words were ringing hollow with Americans, drawing howls even from supporters.  But the President’s ratings soared when he gave a swift kick in the military britches to General Stanley McChrystal, relieving him of command in Afghanistan after the interview he gave to Rolling Stone. 

McChrystal sealed his own fate when during a 10-day interview with Michael Hastings he and his senior aides poked fun at just about every civilian at the top.  He left Hastings no choice to write, and the reader no room for interpretation, by assailing the President, Vice-President, and National Security Advisor James L. Jones -who they dubbed a “clown.”  

The president’s announcement was applaued by the media like the chorus in a Greek play.  Hallellujah.  Top network anchors and pundits on CBS, NBC, CNN, and MSNBC all used the same phrase: “brilliant move.”  (But they never talk to each other, wink wink.)  I guess it’s just because they stand  shoulder to shoulder on the White House lawn with six inches of room on each side.  Or perhaps it’s just because they’re all drinking from the same political water cooler.  And the water is very blue.

In spite of that, Mr. Obama deserved the praise for his decisiveness.  He showed a side we have been longing to see – Decisive Leader.  It was a bona fide Commander in Chief moment.  And we haven’t seen many (some toughies would say any) of those.  He deserved our genuine praise.  One swift decision is hardly a pattern, but Americans are truly, mady, deeply hoping to see more of THAT president.     

Decisiveness is cool.  Decisiveness is sexy.  And it’s in short supply- not just in politics, in business.   The C -Suite could use more leaders who can say yes to this, no to that.  Personally as the CEO of a small company I would not dare cast the first stone.  Some decisions are hard to make.  You get tied up in knots.  When you can’t make a decision however, you drive yourself and everyone else nuts. 

What people long for are leaders who can make the call and communicate to the troops.  Like every great general, your job is to decide and then get everyone aligned and moving in the same direction.  People who work for you just want to know what the game plan is so they can get on with it.

I certainly have moments of indecisiveness.  But I also have no tolerance for people who can’t get out of their own way.  For example, it drives me loopy sitting in a restaurant when people take 15 minutes to decide on a dinner selection.  They wave off a polite, well-paced, patient waiter four times while debating the merits of salmon encrusted in almond flakes versus steak au poivre.  If you’re my mom you’ve earned the right to take your time.  Otherwise, please, make your choice.  You won’t even remember what you ordered tomorrow morning.  And by the way if you’re eating at McDonalds you can just order the Chicken McNuggets and change up the sauces - they have 8 of them.  And, it’s very scary that I know that.  

You are going to screw up.  But make the call and tell everybody anyway.  99.8 percent of the time it won’t be the end of the world.  And whatever happens people won’t be sitting on their hands waiting to DO SOMETHING.  Make the decision, move on.  Next?  

Why is that important?

Imagine Obama had taken weeks to decide what to do with the general? The media circus that would have surrounded the “decision” would have been a joke.  It’s over and done with and we can go back to wondering why BP is acting like idiots.  Hallelujah.

Baby boomers have trouble with this.  We (and I know not everyone reading this goes into that baby boomer “we” but go with me for a moment) are the generation who were suddenly given more than chocolate, vanilla and that crazy three-flavor ice cream combo our grandparents served (was it strawberry?)  We were given mint chocolate chip, rocky road, and eventually Oreo.  Soon there were 437 flavors.  Today, our kids have even more choices.   

Yet all these choices have not improved our skill at CHOOSING. 

So let this be a lesson to all of us.  Decisive is in.  Go out there today and make a decision - even if you’re not sure.  Pretty soon your staff will be saying things like — “brilliant move.”  And hey, even if they don’t, at least they won’t be confused. 

 http://newsbusters.org/blogs/kyle-drennen/2010/06/23/media-praise-obamas-brilliant-decision-fire-gen-mcchrystal#ixzz0s91zgomJ

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Carl-Henric Svanberg, Chairman, British Petroleum

There are easy targets and then there are easy targets.  I almost hesitate to write about Carl-Henric Svanberg, Tony Hayward and the bunch, because the entire media world has already aimed, fired and riddled the bulleseye with bullets.  What else can be said about this hapless gang? 

On the other hand, since my thing is communication and leadership, I do want to comment because there are lessons here.  Aside from how stupid can you be.   

The Chairman of BP has been nowhere to be found for the first 60 or so days of the oil spill.  when he got a call summoning him to the White House to pony up with billions for the restitution fund, he came out of his cave and spoke just like a cave man.  I am referring of course to his reference to the victims of the Gulf of Mexico oil spill as “the small people.”

It took only minutes for the thing to go viral which meant of course they had to issue the ever-popular press release apology.  Svanberg apologized for having spoken “clumsily” to reporters.    

”What I was trying to say - that BP understands how deeply this affects the lives of people who live along the Gulf and depend on it for their livelihood - will best be conveyed not by any words but by the work we do to put things right for the families and businesses who’ve been hurt.”  Nice try, but no amount of wordsmith-ing is going to make up for a blunder the size of the Gulf.    

If it had just been this one gaffe then people might attribute it to the language barrier (Svanberg is Swedish), or a stressful slip of the tongue.  However, it was only the latest of several BP executive “gaffes” during the eight-week controversy.

Tony Hayward, BP CEO

Just when it seemed Gulf residents couldn’t get any more outraged about the massive oil spill fouling their coastline, word came Saturday that BP’s CEO was taking time off to attend a glitzy yacht race in England.  The social media networks lit up as Gulf Coast residents remarked they’d like a day off from the onslaught of oil on their coasts.  What could the BP spokesman say?  It was the first “day off” Hayward had had since the April 20th oil rig disaster and he has a keen interest in this annual race.  And, this came after a misstep not long ago when he told reporters that he just wanted his life back.  He was forced to apologize.   

So how did it happen?  Of course these guys have never lived under the withering scrutiny of worldwide press and the democracy of the 24-7 blogosphere.  They’re used to coming and going pretty much as they please and saying what they think.

At the same time they seem to be utterly unaware of the impact their words and actions have on others.  As with every corporate crisis, it’s usually not the mistake that kills you  (although this one is bad).  You become Public Enemy Number One because you don’t appear to have any sympathy - strike that - any awarness whatsoever of the plight of others.  

As we speak, some adjunct professor is drafting a case study for Harvard Business School and it’s the easiest thing he or she has ever written.  Only this one won’t be that brilliant Tylenol case that everyone has studied for twenty some years.  This will be a case study in how everything can go wrong some of the time. 

It would be easy to conclude that these guys don’t just have tin ears.  They seem to have forgotten where they came from.  I have no idea whether they grew up with privilege, but they weren’t always kings of their world.  At some point along the way when people uttered the word “CEO” or “Chairman” to them you have to believe they thought, wow, wouldn’t that be great someday?  To have the opportunity to lead a company?  What an awesome responsibility.  What a privilege.

As the author of two books with CEO in the title (Speak Like a CEO, and Motivate Like a CEO) I’m often asked to “defend” those titles.  “How many CEOs really communicate well?” People will ask.  Or, “How many CEOs do you know who really motivate other people?” 

I’ve never spoken publicly about this, but my editors at McGraw Hill were also doubters - more than a little concerned about the choice of title for book #1.  “CEOs don’t have a very good reputation,” one remarked when we were debating what to call it.  I assured them that most of my clients were very interested in getting to the C suite or were already there.  That turned out to be true, as it became a business best seller. 

One reason I love working with leaders is because the vast majority of them love their companies and understand pretty clearly what an impact their words and actions have on others. They are keenly aware that they have a responsibility to those who work for them, live in their communities, and buy their products.  Unfortunately they aren’t the ones who make headlines. 

If you are lucky enough to get to sit in the proverbial corner office, fly on the corporate jet, and play golf at the nicest country clubs,  I think it’s worth cultivating an attitude of gratitude.  If you haven’t done that lately, and you know whether you have, then pour a little humility into that cup of coffee along with the milk and Splenda.  A sense of entitlement is the underlying attitude that leads to shooting yourself in the foot.  One mistake is a gaffe.  A bunch of them that occur because you are acting like the emporer who has no clothes is foolhardy.  

Don’t get me wrong, I think if you are smart and work hard you should get what you “deserve.” The good life is a good thing.  But when you run a company, every day you must to get up and thank those hard-working lucky stars of yours and be thankful for the people who make it possible.  Cultivating that attitude will prevent you from developing the mindset that gets you into trouble when your company is in peril.

I hope – really I do – that eventually things turn around for BP because of the good people who work there and the thousands who invest in BP stock in their retirement portfolios.  Nobody is rooting for BP to fail.  We need oil, we need profitable companies to create jobs and make our economy run like the wind.  I just hope as BP is writing out the check they’re remembering that in the grand scheme of the big wide universe, we’re all pretty darned small.    

 

 Svenberg's comment on "small people" : Play Now | Play in Popup | Download

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The Wall Street Journal reports this morning that a growing number of corporations are tracking social media such as Facebook and Twitter to gauge public sentiment and avert potential public relations disasters.  Ford Motor Company, PepsiCo and Southwest Airlines are among the companies deploying software and assigning employees to monitor internet postings and blogs.

What does this mean to your company?

Whether you’re a large corporation or a small business, this is the time to get into the virtual conversation.  If you don’t have a strategy to incorporate social media you’re falling behind.  Consider this: Twitter, Facebook and YouTube are rapidly becoming mainstream business communication tools.   See my earlier post.  You may not “get it” yet, but your clients and customers do. 

Monitoring the conversation about your company is a monumental task.  A cottage industry is already springing up around managing the virtual conversation.  You either have to hire employees or find outside firms to stay on top of it and help you create positive online buzz.  Yes, there is tracking software that will identify posts about your company, but let’s face it, you have to have human beings do the rest. 

What’s interesting is that while the mode of communciation has changed, the principles of of communication are the same.  This is especially true if people start saying crummy things about you, true or not.   Crisis communication rules are in effect.  That’s why you absolutely have to know what’s going on out there.  You need to anticipate what issues could become a crisis and undermine your reputation.  

If you’ve been through crisis media training, you already know that when you ignore an issue, that can trigger a ”secondary” crisis far worse than the original.  The longer you ignore it, even if it is baseless rumor or the grumblings of disgruntled customers and employees, the greater the risk.  So online, just as with traditional media, you have to get the facts out there.  Be honest.  Apologize if you mess up.  The only difference is you have to be faster than ever before.  

Click Here to download a complimentary article: CEO Survival, Crisis Communications: Media Interviews which applies to any and all types of media.

Follow me on twitter now: http://twitter.com/CEOCoachBates
 

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No question David Letterman’s first attempt at apologizing over the Sarah Palin jokes failed - a few nights ago, he was clearly not feeling true remorse, and obviously defensive when he said he was sorry.

But, what about last night?  On his show. Did he get it right the second time?

And, more importantly, should you care?  

Let me take the second question first.  We should care because -AS WE ALL KNOW -apologies are all too rare.  We’ve all been on the receiving end of a half-hearted or insincere apology.  It’s almost worse than no apology at all.

It requires a balance of confidence and humility to really apologize. 

More importantly, it matters because a GOOD apology (when appropriate) enables you to build strong, deep, authentic relationships.  It helps you in marriage, with your kids and family, and your friends.  An apology is a gateway to improving the human condition.  And yes, it is a great asset in business.  It builds bridges to the future and that’s important because none of us are perfect.  We have, and will continue to make mistakes.

Now to the first question, did he get it right.

This is not a yes or no.  It is a matter of degree.  The words were right.  The tone still felt … well … like he did it because he had to.   I would give it a 6.5 on a scale of 10.  I have no idea what Letterman was actually thinking and feeling last night.  He appeared to be in some pain.  But whether that was because he felt the sting of remorse, or just shock over being chastised, only he knows for sure.  

By reiterating it was a ”coarse joke” and saying that it was “beyond flawed,” he scored some points with me.  ” He went on apologize not only to Palin but the the two daughters involved, Bristol and Willow, the Palin family (good so far)  and “everyone else who was outraged by the joke.”  

This is where I have trouble. 

It reminds me of people who say, “I’m sorry if you were offended,” instead of “I’m sorry, what I said was offensive.”  There should be no qualifier regarding who was offended.  We should ALL be offended.  When you add that part, you’re not owning it.  You’re putting the emotional onus on others.

He finished by saying, ”I’m sorry about it and I’ll try to do better in the future.  Thank you very much.”  Again, maybe its semantics, but I would have left out the world “try.”  This reminds me of people who appear to commit to you when they say, “Let’s try to have dinner this summer,” or “I’ll try to get back to you next week.”  My opinion - the word “try” is a cop out.  Commit.  I WILL do better in the future.”

It also reminds me a little of the time when years ago, of Arnold Schwarzenegger apologized for mistreating women just days before the California recall election in which he was elected governor.  Now I’m a huge fan of the governor’s, but when you read some of the things he supposedly did, which I will not to desribe in this column, he said “A lot of what you see in the stories is not true, but at the same time, I have behaved badly sometimes, I have done things which were not right which I thought was playful, and now I recognize that I have offended people.”  Again, there’s that –sorry if YOU were offended thing.

If you want to read a phenomenal book about this topic of apology, I highly recommend “On Apology,” by Aaron Lazare, M.D. Chancellor, Dean and Professor of Psychiatry at the University of Massachusetts Medical School.  He is a leading authority on the psychology of shame and humiliation and wrote a highly regarded article on the topic that led to appearances on Oprah and Talk of the Nation.  But don’t let his academic cred put you off.  It’s a beautifully written and well documented look at topics such as the growing importance of apologies in today’s society; the meaning of apology; and the paradox of apology.   It helped me understand more clearly how to acknowledge and offense, what it means to feel remorse, the concepts of explanation and reparation, and the overall healing power of a genuine apology.

I hope that Letterman meant it.  I really do.  Sarah Palin has accepted the apology, so I guess we should too.  It’s just that I would rather be writing about a GREAT apology.  Too bad they are so rare. 

Here’s a clip of his apology if you want to listen.  Let me know what YOU think.

Oh, and if I owe you an apology, will you let me know?

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If you subscribe to the idea that workplaces operate a lot like families (the personalities, the relationships, the challenges) then you might be interested in some information I found while researching the long term impact of crisis on a family.  This information came from the Head Start program model for assessing crisis.

As you read these, ask yourself how it might apply to your team or organization.

During a crisis, people tend to:

Have difficulty thinking clearly.  People in crisis may quickly skip from one idea to another in conversation, making them difficult and confusing to follow.  They may have trouble relating ideas, events and activities to each other in a logical way.

Dwell on meaningless activities.  In an attempt to combat anxiety, people in crisis may become overly involved in activities that are not productive.  They are likely to need considerable help in focusing on activities that bring the crisis to an end.

Express hostility or numbness.  The feeling of loss of control and vulnerability experienced by most people in crisis may be expressed through hostile words and actions directed toward anyone who intervenes in the situation.  Others may withdraw or experience depression; they seem not to care about the crisis or its outcome

Act impulsively.  Although some people become immobilized in crisis situations there are others who react impulsively without any regard to the consequences of their behavior.  This makes a complex situation even more difficult to resolve.

Feel incompetent.  A crisis presents a threat to one’s sense of personal competency and self-worth.  To counter low self-esteem, people in crisis may assume a façade of adequacy or arrogance.

How can you counteract the impact of a prolonged state of crisis in your organization?  Here are 7 steps you can take immediately to help you take the pulse of individuals and the organization as a whole, and get people focused and on track:

1.    Schedule meetings with individuals on your team

2.        Ask them about projects they enjoy or would enjoy doing

3      Facilitate ways for them to do work they enjoy that has an impact on the organization

4.      Schedule the next meeting in two to three months to check in on how they’re doing

5      Talk about the big picture people long to work for a purpose greater than themselves

6.      Focus conversation on the future – exciting opportunities ahead – this is one of the most important tenants of crisis communication – help people see what is possible

7.      Talk about it in your meetings, your conversations and your emails – a steady flow of positive, future focused communication will alter the din of bad news

For more tips on how to lead during crisis, go to the articles section of our web site:

www.bates-communications.com/articles and click on leading in crisis.

Or go to our bookstores and order a copy of the booklet: The Power of Adversity, How to Communicate with Confidence, Make Powerful Connections, and Thrive in Challenging Times

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