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Archive for November, 2010

The New Math of Reputation

November 23rd, 2010

One of our latest posts focused on the resurrection, both football and reputation-wise, of Michael Vick, the quarterback of the Philadelphia Eagles. In keeping with a sports theme, this past week saw some heated debate about reputation on the baseball diamond and specifically the vote for Felix Hernandez as the American League Cy Young Award winner.

Despite a mediocre 13-12 win-loss record, albeit for the lowly Seattle Mariners in the less classy American League West, Hernandez bested CC Sabathia of the New York Yankees who had 21 wins and David Price of the Tampa Bay Rays with a 19-6 record both of whom do battle in the powerhouse American League East. It used to be that wins and/or strikeouts made a pitcher’s reputation and secured the prestigious and lucrative Cy Young Award but not anymore.

Commentators pointed to how Mr. Hernandez fared despite the low run production of the Mariners, they pointed to his quality starts, and even his impressive record against the strong American League East teams. ESPN, the masters of useless sports statistics, speculated about whether a pitcher with a losing record could win the Cy Young and trotted out something called Wins Above Replacement to analyze deserving pitchers of the past with so-so records.

As new math is rewriting what makes reputations in sports, advanced algorithms are also having an impact on who’s hot and who’s not in the world of social media. This past week at the Web 2.0 Summit, Twitter co-founder Evan Williams was asked how the company determines what users to suggest for the “who to follow” section. Williams stated that Twitter uses a reputation score that the company’s ‘science and math people’ have come up with that delves into a user’s Tweeting activities and interactions. While Williams did not go into specifics of the math involved, he did hint that in time, the reputational number crunching methodology could be made public.

Perhaps sports and social media could be of help in evolving the reputational analytics of corporations and executives. Can corporate social responsibility, sustainability and employee satisfaction come to the fore such as quality starts and wins above replacement have in baseball? Will quarterly earnings and share price go the way of wins? And can Twitter’s ‘science and math’ guys put together an algorithm for determining what companies and corporate leaders to follow?

rtauberman General Corporate , , , , ,

On the busiest travel week, airlines can use common sense to improve reputations

November 22nd, 2010

Good operations are the best defense in a crisis.

But what happens when operational improvements actually cause the backlash? Just ask the TSA, an agency under fire for their airport “reality show” that can only be dubbed Extreme Airport Security. (Or lecherous old guy loves his job.) The TSA, and the people who no longer travel commercial, say these measures are necessary. But the people who vote with their wallets may have another view, such as the suggestion that these screenings are like legalized sexual assault.

Many travelers plan to opt out of holiday travel this year. Those who are traveling are being encouraged to decline the so-called porno-scanners and to insist that the pat down be conducted in full view so the entire security line can witness what is being described as a civil rights violation. Others are planning airport protests and disruptions such as wearing kilts to give TSA screeners more than they bargained for.

Since 9/11, Americans have gone along with most anything dubbed as terrorism prevention. Sure, there was some Patriot Act backlash, but it was mostly talk. This movement could be incredibly disruptive, and the TSA won’t be the loser. It will be the airlines, and the traveling public.

Thanksgiving week is the busiest travel week of the year. It kicks off the holiday season, which can make or break an airline’s performance, and its reputation. The aviation business is capital intensive, volatile and economically vulnerable. If you’ve ever been behind an inexperienced traveler in the security line, you know that a handful of disruptive people could create chaos at the airport.

Airlines’ reputations have been declining in recent years as seats shrink and charges for legroom, luggage and meals increase. Most travelers don’t distinguish between the TSA hassle and the airline hassle. To them, it’s all travel hassle.

On the eve of the nation’s biggest travel week, with the threat of traveler disruption, what’s an airline to do? Here’s a quick set of suggestions.

• Prep your team – Put extra people on the concourse floor, and prepare them for even greater than usual crankiness. A little humor, and free food for employees, can go a long way here.

• Humanize the process – Going to Grandma’s house shouldn’t feel like traveling to America in steerage in the early 1900s. Greet customers by name when they check in. Offer them cold water at the gate. Smile, even if you don’t feel like it. Acknowledge their frustration, even if it isn’t your fault.

• Common sense goes a long way – Be flexible and bend the rules if it doesn’t compromise safety and security. This isn’t the weekend to charge for a bag that is a pound overweight, or to send a mother with surly teenagers back to her seat at the gate because you haven’t called her row yet.

• Communicate with travelers – Use social media to communicate in real time with your customers. Advise them on security wait times, weather and flight delays, and other important info that helps them plan and manage their travel. The only thing worse than being behind someone who holds up security is missing your flight while you wait behind someone who holds up security.

cwinters General Corporate , , ,

The Road to Redemption: Just win (after showing remorse), baby

November 19th, 2010

Since early 2007, when he was indicted for his leadership role in a dog-fighting ring, the name Michael Vick has been associated with a few words: failure, animal cruelty, and felon. But after emerging from prison two years later, Vick seemed to do all the right things. He kept a low profile aside from charitable events with the Humane Society, he showed humility and remorse when asked about his past, and he supported his Philadelphia Eagles teammates while he was relegated to the sidelines at a stage in his career when most quarterbacks hit their peak.

But over the past few months – and particularly following his six-touchdown performance on Monday Night Football this past week – the buzz around the NFL is that the new words associated with Michael Vick are: comeback, dominant, and perhaps most stunning, MVP.

What happened? He’s consistently performed spectacularly on a national stage. (Of course, this isn’t a unique example in the NFL – Baltimore Ravens defensive icon, Ray Lewis, who was implicated in the cover up of a murder early in his career, is the new spokesperson for Old Spice.)

This would seem to lead credence to the famous motto of Oakland Raiders owner, Al Davis: just win, baby. And it’s true that outstanding results aid in recovery from even the most spectacular failures of character and competence. But again, it’s not that simple. Without showing that he’s learned from his mistakes and displaying remorse, the NFL Commissioner – and certainly no NFL team – would allow Vick on the field to show off his stunning talent.

When you fail on a massive scale, there is a process for earning that license to shine again. The good news is that eventually there will be opportunities to change the conversation from what you did to what you’re doing. Make it your mission for that story to be about your future, not your past.

In the end, America loves great stories of redemption. It seems that by taking the proper steps to make amends and then returning to perform with excellence, Michael Vick is about to become its next one.

pwalotsky General Corporate , , ,

Can You Be the Happiest Place on Earth When Your Employees are Unhappy?

November 16th, 2010

For years, Disney Theme Parks have been known as the “happiest place on earth,” yet persistent rumors about Disney as a difficult workplace have abounded that behind the Mouse Ears and the Zippity Doo-Das was in fact, an “evil empire.”

This recent survey indicates that there may be some truth to those rumors. The 2010 BlissIndex considered employee satisfaction (or, in Disney’s case, dissatisfaction) with growth opportunities, salary and benefits, work-life balance, career advancement, job security, senior management and ultimately – whether or not employees would recommend it as a good place to work. It’s hard to believe that the most magical place on earth is actually closer to hell on earth for those that work there, ranking behind 40 corporations and even the military, which, also surprisingly, came out on top.

Having cited brutal working conditions and likening Disney to Nazi concentration camps, employees are not holding back when it comes to telling the world what conditions are really like in the land of talking animals, beloved Princesses and happily ever after.

While the disenchanting news isn’t enough to keep my family away from Orlando (yet), it should be more than enough for management to sit up and listen to the ambassadors of the brand’s reputation. Disney’s reputation and its future business are at stake, making this one problem worth solving, no matter how difficult. Being the happiest place on earth is a tall order. And it is a promise that will be hard to keep when employees are disgruntled and disenchanted. And once the experience stops living up to the promise, even Prince Charming won’t be able to save them. The time for action is now.

How can Disney put the whistle back into Whistle While You Work?

They can start by listening. Acknowledging the issues and seeking input to improve their culture, with the goal of elevating the employee experience to that of the guest. I’m not talking about an overnight fix. The first step in restoring credibility in the eyes of any corporate stakeholder is listening. Maybe it’s a series of virtual town-hall meetings, maybe it’s in-person workshops, but the dialogue must be started and the focus should be on how to be successful. Maybe it’s time to rekindle the passion that the franchise was built upon. But the concept of treating employees like guests is a good place to start. Eliminate the double standard between treatment of your colleagues and your guests. And in the words of Jiminy Cricket…let your conscience be your guide.

This survey is like the warning to Snow White not to eat the poison apple. They can act on it, or wait for that apple to choke them.

dlauer Employee Engagement ,

Toyota Ideas for Good: Good Idea, or cheap parlor trick?

November 10th, 2010

Consider Toyota, the brand that became synonymous with the word “recall” in recent years. Toyota seems destined to be the poster child for reputation destruction and the subject of cases studies that will be taught for years to come in college PR courses. First, they denied the problems. Then they apologized – well, sort of. And then they apologized some more. They launched campaigns about safety and trotted out customer testimonials.

And none of it was particularly effective. So what now? Toyota is changing the subject.

Exhibit A is the Ideas for Good commercial about Toyota technology and football? The spot I saw features a Mom, talking about how she feels just a little less worried about her son playing football, thanks to Toyota sharing its technology.

The dangers of football have been top of mind for parents and sports fans after the tragic paralysis of the Rutgers special teams player during an apparent routine kick return, plus the recent spate of impact-related head injuries in the NFL.

As a rabid sports Mom who has made those trips to the ER with kids with concussions, the Toyota commercial grabbed my attention, so much so that I stopped doing dishes and came into the family room to watch. Then my PR persona kicked in and I wanted to learn more about this campaign, which ranges from using Toyota technology to improve NASCAR safety to employing LEED building techniques to preserve Yellowstone Park’s pristine beauty. Toyota also is asking the public to submit ideas for new ways to use its technology for the good of the world.

Is Ideas for Good a good idea?

Well, considering that Toyota is mired in a seemingly endless stream of bad news – the company announced yet another recall last month, the strategy of finding a way to play offense is a good one. Focusing on how Toyota is helping the world is smart, regardless of whether the beneficiaries are driving Toyotas or not. It shifts the conversation from the defensive position taken by Toyota loyalists defending the brand to a conversation befitting the leader that Toyota once was and presumably want to be again.
On paper, a textbook formula for reputation recovery looks like this:

At the appropriate time, stop apologizing – check.

Move beyond your self-centered conversation – check.

Engage your stakeholders for collaboration to benefit someone besides yourself – check.

Will Toyota succeed in moving beyond the recall overhang? Some of that depends on when and if the recalls finally end. Even then, only time will tell. But I give them an A for effort.

cwinters Crisis Communications , , ,

Leadership Advice from the Greats

November 10th, 2010

This year’s World Business Forum featured iconic leaders like Jack Welch, Al Gore, Jim Connelly and David Gergen discussing their views on how to lead, and how to be successful in today’s environment. There were some amazing presentations, and some memorable moments…almost too much to remember. Thankfully, they issue a summary report of each session to everyone who attended – to help capture the lessons and the wisdom, and help attendees implement what they’ve learned.

If you didn’t have two days to spend at Radio City, you can still benefit from the advice of these leadership greats… download the 2010 World Business Forum Report, courtesy of HSM and MWW Group.

Enjoy!

cwinters MWW Group ,

What’s LOVE got to do with it?

November 4th, 2010

Whole Foods CEO John Mackey isn’t afraid to speak his mind. And in his latest YouTube missive, he expounds on the ever elusive topic of trust – how to earn it and how to make it part of your culture. At the core of his argument – you need to bring love and care into the workplace in order to achieve trust.

If you are thinking this all sounds a bit kumbaya, you wouldn’t be alone. But a quick Google search of caring for employees (not “love in the workplace – that is for a different kind of blog!) informed me that Mackey isn’t alone. There is a Florida furniture company that offers spiritual care to its employees with Company clergy available at work. People are writing their graduate thesis papers on the advantages of caring in the workplace. And the recruiting section of virtually every company website talks about how the organization cares for its employees.

But is that the same as love? Is there room for love in the workplace? And does it translate into trust?

While the language Mackey chooses in this video sounds a lot like a Sunday School teacher, the concept that people who know that their Company and its leaders legitimately care about them are more likely to trust is grounded in the kinds of lessons we all learned from our Depression era grandparents (or for the youngest members of the workforce, great grandparents). And intuitively that kind of culture would translate into care and concern of customers and communities.

So why don’t I buy it? I am a true believer in some of the underlying concepts here of respect for others, the importance of being passionate and the value of a leader who really speaks his or her mind.

I don’t know much about the culture at Whole Foods – and maybe this video will really resonate with the people who work there. But by posting it on YouTube, it seems Mackey is trying to speak to a broader audience…and for a cynical, spin-sensitive person like me, the saccharine nature of the message makes me suspicious.

The moral of this story? Choose your words carefully. Even when the message is good, the tone still matters.

cwinters General Corporate ,

When CEO Transitions Mean Trouble

November 4th, 2010

Yesterday I quipped via Twitter that it was a great day to put out a press release if you didn’t want anyone to pay attention to it.

This wasn’t actually intended to be advice, but apparently someone was listening. Seventh Generation announced the … hmmm, departure of the outspoken, high profile founder Jeffrey Hollender amidst all of the post-election hubbub.

Neither side is saying much, but the conventional wisdom suggests that it may have been an issue of affecting a true transition in the succession of leadership to the handpicked, Pepsi-grown CEO Chuck Maniscalco, who quietly resigned only a year after taking the CEO position.

The online community is lamenting over the loss and questioning the future commitment of Seventh Generation to the environmental principles that are the core of its brand. Some consumers are saying that they will go back to vinegar and baking soda because they don’t trust a company that would oust its founder. There have even been attempts to start a grassroots movement to call headquarters.

Hollender, an iconic folk hero among eco-loyalists, is admired for his direct, outspoken nature that is Vermont’s version of Richard Branson. More than one person is comparing his ousting to the now infamous and ultimately ill-advised ousting of Steve Jobs by Apple back in the day.

But at the heart of the issue is the lack of transparency. The suspicious timing of announcing a decision that was apparently determined more than a week ago, the unceremonious removal of Hollender’s bio from the company website, no press release about his departure and the vague comments of the company’s “conversationista,” such as describing the company’s recent history as a “difficult period.”

Sudden leadership transitions present unique communications challenges. It is even tougher when the CEO in question is as high profile and iconic as Hollender. The volume of blogs, tweets and re-tweets are testimony to our long-standing point of view on the need to tell your own story.

Nature abhors a vacuum. If you don’t tell your story, someone else will … and probably not to your liking.

cwinters General Corporate , , ,

The Democratization of Leadership: Should employees get to vote on the CEO?

November 1st, 2010

Election Day is upon us. Pundits are talking around the clock about the weather, and who votes early; what a vote for a Republican really means (NObama), and Bill Clinton, still the most popular Democrat around, is calling this cycle a Fact Free Election.

This may not be the Democracy our founding fathers envisioned. But it’s the one we’ve got. It seems that in the Web 2.0 universe, lots of things are getting democratized. The consumer owns the brand. Citizen journalists change the reputations of people, places and governments with a Tweet. And leadership has been democratized…meaning that the power of the leader rests with the stakeholders’ willingness to follow.

The notion of democratization of leadership is at the heart of concepts that have spawned a plethora of leadership books and philosophies, with the concept of the servant leader being the most direct, obvious connection. And while many ascribe to notions like leadership is a privilege, leadership as service and give lip service to the notion of employees being the most important priority, few walk the talk more than Arkadi Kuhlman of ING Direct.

I’ve been hearing about Kuhlman from our ING account team for some time (ING Direct is an MWW Group client), and I heard Kuhlman speak for the first time at our World Business Forum panel. He lives up to the hype. He wowed me with his candor, and his willingness to say what other people are thinking, but keep to themselves in a down to earth style I haven’t seen since Gordon Bethune’s employee meetings at Continental Airlines where he told people, “The airline business is easy, you just have to get people where they want to go on time, with their underwear.”

Kuhlman has taken accountability and service to the employees to a whole new level. And he is asking his employees to vote on whether he should continue to serve. After 10 years at the helm, he wants to know if they are still on board with the Company’s vision, direction and more specifically, are they willing to follow him? Arkadi points out the shareholders are asked to affirm their confidence in leadership every year.
Boards of Directors get to “vote” on the CEO at every meeting – and they either stay the course or call Korn Ferry. But the employees don’t get a vote. Employees have as much of a vested interest in the Company as its shareholders, and in many ways more important. Simply put, it is up to the employees to deliver the performance that translates into financial results and shareholder value…shouldn’t they get a vote? Shouldn’t their vote count the most?

Employees affirming their confidence in leadership, whether formally or informally, is a powerful concept that could potentially transform Companies and cultures. It could be the talent war game changer. How many CEOs would have the guts to do it?

cwinters Executive Visibility , ,