NBC Fires Matt Lauer

Another media star has fallen after reports of sexual harassment. NBC fired Matt Lauer after one complaint, but the company mentioned more were likely—and they have come.

Several women tell about Lauer's inappropriate attention, advances, and exposure. He played what Variety called a "crass quiz" at work that categorized women.  

Lauer worked for NBC since 1994, mostly as a "Today" show co-host. Known as "the crown jewel of the network’s news division," Lauer interviewed U.S. presidents and other senior leaders and celebrities throughout this career.

On air, Savannah Guthrie, Lauer's co-host on the show, read a statement from NBC Chairman Andy Lack. She was emotional as she read the decision.

Lauer issued this apology statement: 

"There are no words to express my sorrow and regret for the pain I have caused others by words and actions. To the people I have hurt, I am truly sorry. As I am writing this I realize the depth of the damage and disappointment I have left behind at home and at NBC.

"Some of what is being said about me is untrue or mischaracterized, but there is enough truth in these stories to make me feel embarrassed and ashamed. I regret that my shame is now shared by the people I cherish dearly.

"Repairing the damage will take a lot of time and soul searching and I'm committed to beginning that effort. It is now my full time job. The last two days have forced me to take a very hard look at my own troubling flaws. It's been humbling. I am blessed to be surrounded by the people I love. I thank them for their patience and grace."

Discussion:

• How well does Guthrie handle the announcement?
• Did NBC do the right thing in terminating Lauer? Was it too much of a risk after just one complaint?
• Assess Lauer's apology. How convincing do you find the statement? What else, if anything, could he say?

CBS This Morning Responds to Charlie Rose

After CBS co-host Charlie Rose was suspended for sexual misconduct, Gayle King and Norah O'Donnell were left to pick up the pieces. They didn't shy away from addressing issues directly. 

O'Donnell read from a script, and King had a script but didn't follow it as closely. She spoke from a more personal perspective, saying she is "not OK," and "I am still reeling." She mentioned her personal relationship with Rose but said, "He doesn't get a pass."

King hit on some points we haven't been hearing much about during all of reports of sexual misconduct, for example, the impact on women's bodies and on their careers and on what it's like for people close to an accuser to have conflicting, confusing feelings about the person.

The Washington Post covered allegations of sexual misconduct against Rose, including eight women, whose stories had "striking commonalities." Rose issued an apology statement:

“In my 45 years in journalism, I have prided myself on being an advocate for the careers of the women with whom I have worked,” Rose said in a statement provided to The Post. “Nevertheless, in the past few days, claims have been made about my behavior toward some former female colleagues.

“It is essential that these women know I hear them and that I deeply apologize for my inappropriate behavior. I am greatly embarrassed. I have behaved insensitively at times, and I accept responsibility for that, though I do not believe that all of these allegations are accurate. I always felt that I was pursuing shared feelings, even though I now realize I was mistaken.

“I have learned a great deal as a result of these events, and I hope others will too. All of us, including me, are coming to a newer and deeper recognition of the pain caused by conduct in the past, and have come to a profound new respect for women and their lives.”

Discussion: 

• What's your view of this segment? How well do you think the co-hosts handled the situation?
• Assess Rose's apology. How does it compare to others we have seen?
• Rose was revered in the industry, but CBS didn't hesitate in suspending him. Did they do the right thing?

Florida State University Suspends Greek Life Activities

A fraternity member's death was the last straw for the president of Florida State University. John E. Thrasher suspended all fraternity and sorority activities on campus, calling for "a new normal for Greek life."

The student death, which occurred during pledging, follows another student death in September and cocaine charges for another member. In a statement, Thrasher explained the decision and called on the Greek community to find innovative practices. He emphasized the importance of the pause: "The president said this pause is needed to review and reflect on the loss of a young life."

In a long list, the university itemizes what is not allowed, including meetings or events, and specific FSU activities are mentioned, such as Homecoming "pomping, skit night, or spear-it night."

Discussion:

• The university website refers to the decision as an "indefinite interim suspension." Sounds redundant, doesn't it? Do you think this is intentional or a grammatical oversight?
• Assess the university's FAQs. How well does the administration anticipate and address questions?
• The president is demonstrating compassion and courage, but of course, not everyone agrees with the decision. What are the counterarguments?

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?

Pro-Life Congressman Resigns

We might expect a congressman who serves on the U.S. government's House Pro-Life Caucus to be against abortion in his personal life. But Representative Tim Murphy reportedly suggested that his girlfriend get an abortion if she is pregnant.

A women who says she was having an affair with Murphy went public with text messages:

She: "...zero issue posting your pro-life stance all over the place when you had no issue asking me to abort our unborn child just last week when we thought that was one of the options."

He: "I've never written them. Staff does them. I read them and winced. I told staff don't write any more."

Curiously, he didn't dispute her allegation about the abortion request. Pro-life advocates criticized Murphy for his "hypocrisy."

Although the woman wasn't pregnant, Murphy resigned from his position. House Speaker Paul Ryan announced the decision, saying "I think it's appropriate he move on to the next chapter in his life." Murphy said he'll "take personal time to seek help as my family and I continue to work through our personal difficulties." 

Murphy also posted a statement on his website:

Statement From Congressman Tim Murphy

For Immediate Release: October 4, 2017
Contact: Carly Atchison 202.225.2301

WASHINGTON, DC - Today Congressman Tim Murphy (PA-18) released the following statement:

"After discussions with my family and staff, I have come to the decision that I will not seek reelection to Congress at the end of my current term.
 
"I plan to spend my remaining months in office continuing my work as the national leader on mental health care reform, as well as issues affecting working families in southwestern Pennsylvania.
 
"We have accomplished much in the past year through the Helping Families in Mental Health Crisis Act and there is much work yet to be done.
 
"In the coming weeks I will take personal time to seek help as my family and I continue to work through our personal difficulties and seek healing. I ask you to respect our privacy during this time." 

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Discussion:

• Assess Murphy's statement. How well does his address the situation? What else, if anything, could he say, or what could he say differently?
• In what ways is this situation an issue of integrity? Do you see a contradiction, or do you believe Murphy's political stance and personal stance may differ?

Equifax Visits Congress

Former Equifax CEO Richard Smith admitted failures during a House Energy and Commerce Committee hearing. Smith had already apologized in a video statement, but during the hearing, he mentioned his personal accountability:

"The criminal hack happened on my watch. I am truly and deeply sorry for what happened."

Yet critics say that Equifax is still not taking full responsibility. A TechCrunch article highlights Smith's testimony blaming one person: 

"The human error was that the individual who's responsible for communicating in the organization to apply the patch, did not."

The TechCrunch writer seems to think this is ridiculous:

"The notion that just one person didn't do their job and led to the biggest breach in history is quite an amazing claim and shows a fundamental lack of good security practices. But that's what Smith says led to this disaster."

Smith and Equifax's CIO retired from the company after the news became public, which took a while: executives apparently knew about a software issue back in March, but the company didn't announce the breach until September.

A Wired article cites "6 Fresh Horrors from the Equifax CEO's Congressional Hearing." In addition to the delayed admission, the article attack's Equifax's technology, including inadequate patching, failure to encrypt data, limited security reviews, and insufficient website capabilities.

Another twist is this case is why three top people in the company sold $1.8 million in stock around the time they would have learned of the breach. Smith denies questions of integrity:

"I've know these individual for up to 12 years. They're men of integrity. I have no indication that they had any knowledge of the breach when they made this sale." 

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Discussion:

• Assess Smith's testimony. What parts do you find most and least convincing? 
• What else, if anything, should Equifax do now to rebuild trust?
• In what ways is this case an issue of integrity?

News Conference about Deaths at Florida Nursing Home

Eight 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?

Equifax Statement About Security Breaches

A 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.

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.

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.

Comms About Hurricane Harvey

As Texas prepares for Hurricane Harvey, government officials and news organizations are preparing communications to help:

• President Trump issued a statement about monitoring the storm and encouraging people to evacuate if they are in the Hurricane's path. The president is also tweeting about the storm.
• His statement points to Ready.gov, a website rich with resources for preparing families in case of flooding, hurricanes, or extreme heat.
• CNN's website shows live updates of the storm's path.
• The National Hurricane Center is posting coastal warnings and a visual of the cone.
• Texas Governor Greg Abbott was interviewed by BBC and is hosting a meeting to plan emergency operations. (His website includes a tweet but nothing else yet about the storm.)

And, of course, the media is covering the storm with bold headlines:

• "Major disaster" (BBC)
• "Monster storm" (Washington Post)
• "Could be much worse than Sandy" (NY Post)

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Discussion:

• Explore Ready.gov. What do you notice about the key messages, organization, and use of visuals? How easy is it to find information?
• Ready.gov, as of now, doesn't feature Hurricane Harvey; it's generic. Should the site be updated to feature the storm? Why or why not?
• Also explore Governor Abbott's website. Does this site feature the hurricane yet? How do you think the hurricane should be positioned here?

Irvine Finds Room for Admitted Students

University of California, Irvine, is trying to do right by 800 students who accepted the college's admissions offer above the expected number. When making admissions decisions, colleges always consider their "yield," or the percentage of students who will enroll. Admissions officers admit more students than they have space for, assuming some won't come because of financial reasons or school preference.

Initially, Irvine rescinded offers from about 500 students, but it was too late for them to enroll in other schools by that time. They informed students during the summer about transcript and other issues, which happens in a few cases each year, but this is an extraordinary number.

Then university administrators began softening. They admitted that they used standards that were too strict in order to lower their enrollment numbers. The vice chancellor wrote a message to students, including this excerpt:

We heard from some students that this year's process was too stringent and our customer-service approach needs improvement. I acknowledge that we took a harder line on the terms and conditions this year and we could have managed that process with greater care, sensitivity, and clarity about available options. Also contributing to the angst many of you have experienced is our traditional communication and outdated telephone systems that did not serve us well in this circumstance. For those who felt ignored or mistreated, I sincerely apologize.

We are making every effort to do better, immediately. I have directed the admissions team to step up the personal outreach to notified students. We're bringing in more people to review appeals and answer phones. We are committed to correcting any errors swiftly and providing the help you need in an empathetic and understanding way.

A few days later, Irvine's chancellor also apologized, and the university found a way to accommodate 290 more students. His message included this excerpt:

The stories of our students whose college dreams were crushed by our decision to withdraw admissions to hundreds of students are heartbreaking. And unacceptable.

This process is not working. We are a university recognized for advancing the American Dream, not impeding it. This situation is rocking us to our core because it is fundamentally misaligned with our values.

The apology is notable because we see so few of them from university presidents. Writers for The New York Times and Insider Higher Ed commented on the rarity of apologies, partly because of the complexity of academic institutions.

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Discussion:

• Analyze the chancellor's and vice chancellor's messages. What communication principles do they use? How do the messages compare in content, tone, word choice, and organization?
• What should Irvine have done differently in this situation? What are all of the touch points with students that could have been improved?

Microsoft Lays Off up to 4,000 Employees

Microsoft will cut thousands of sales and marketing employees in a company restructuring. Most are outside the U.S.

An internal memo describes Microsoft's new strategy for partners and customers but doesn't mention the layoffs specifically. The memo reminds me of a 2014 Microsoft layoff memo criticized for its jargon. Here's an excerpt from the recent one:

There is an enormous $4.5 trillion market opportunity across our Commercial and Consumer businesses. We are uniquely positioned to drive our customers' and partners' success by leading them through their digital transformations, and becoming their partner of choice. To help us do that, starting today, we begin to implement changes to our Commercial and Consumer models. These changes will position us to best meet the evolving needs of our customers and partners, and empower them to achieve more.

To lead this digital transformation and capture this opportunity, the changes we are announcing have been shaped on the following growth drivers, which will enable us to align the right resources for the right customer at the right time.

Research tells us that receivers prefer to hear bad news up front, although givers prefer to "ease" into it. In Microsoft's 2014 layoff memo and another in 2015, the news comes late. In this one, it doesn't come at all. 

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Discussion:

• Why do you think the email doesn't mention layoffs? What are some good reasons to avoid the decision here?
• Read the memo excerpts from Geekwire. How many jargon words do you count?
• Here's a fun activity: rewrite the memo in English.

Uber CEO Travis Kalanick Resigns

What will I write about now? Five large Uber investors have forced CEO and Founder Travis Kalanick to resign. He had already taken a leave following the latest embarrassing news: a negative report from outside counsel and a "sex letter" to employees from 2013. His mother died in a boating accident recently, which may have made it easier for the board to convince Kalanick to go-or maybe he realized it was finally time.

In a statement to The New York Times (not yet posted on the website), Uber's board said Kalanick "always put Uber first." That's true, and possibly to the company's own detriment. Employees, drivers, and shareholders seemed to take a back seat (sorry) to Kalanick's ambitions.

Kalanick said in a statement, "I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight."

An Uber spokesperson told Reuters that Kalanick's decision "was a surprise to everyone." First, it doesn't sound as though it was his decision. Second, really?

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Discussion:

• Is this the right time for Kalanick to go? How do you think the board fits into the decision? Why did shareholders instead of board members force his resignation?
• We don't see a full statement yet from the board. What should the company say?

More Bad News for Uber

This is not a good couple of weeks for Uber, and particularly, for CEO Travis Kalanick. After about 8 months on the job, Gautam Gupta, the head of finance will leave, continuing the stream of departures. Last week, the company terminated Anthony Levandowski because of disputes over trade secrets from his previous employer, Alphabet.

In an email to staff, Gupta wrote, "As I leave, Uber will begin the search for a CFO to lead the finance team. This role is critical to writing the next chapter at Uber." By some reports, Uber will have a difficult time recruiting a CFO; the position has been open since 2015. Part of the difficulty lies in questions about the company's business practices; the Financial Times reports an example:

Uber's bookkeeping and pricing practices have come under scrutiny in recent weeks, as Uber announced a refund of tens of millions of dollars to drivers in New York earlier this month, which it said was due to a calculation error.

These departures bring the total to almost a dozen, just as Kalanick is trying to change his personal image. Sadly, he lost his mother this week in a boating accident, and his father was injured. 

Discussion:

• Some question whether Kalanick should remain as CEO as the company goes through an IPO. What do you think?
• What would you consider to be the attractions and drawbacks to the CFO position? In other words, what personal and professional advantages and risks should someone consider before taking the job?

Hyundai's Whistleblower

Kim Gwang-ho took a big risk revealing safety issues at Hyundai, his employer for the past 26 years. The engineer reported failures in proper engine checks that could prevent accidents. Whistleblowing is extremely rare, as Kim describes, "I will be the first and last whistleblower in South Korea's auto industry. There are just too many things to lose." He also said, "I had a normal life and was better off, but now I'm fighting against a big conglomerate."

Hyundai denied allegations in a statement, as reported by Reuters: "The company promotes openness and transparency in all safety-related operations, and its decisions on recalls comply with both global regulators and stringent internal processes."

The company also defended its practices, arguing that they were investigating issues before Kim raised them: "Hyundai has taken appropriate steps to ensure safety, quality and compliance with applicable regulations in our markets, including all recalls Hyundai has conducted to date."

Meanwhile, investigators raided Kim's house and confiscated some documents. Kim said, "At first my wife asked me not to do it. She was worried about living costs if I'm fired. But I'm stubborn, and persuaded her that the problems will be buried forever without my confession."

But the company eventually rehired him and reimbursed him for lost work time.

Kim's complaints did inspire the South Korean government to mandate a recall-the first in the country's history. In addition to the 1.5 million cars voluntarily recalled by the Hyundai and Kia, the government requirement adds another 240,000 to the list. 

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Discussion:

• Analyze how Hyundai is handling this situation and the statements made so far. What could be improved?
• How believable do you find Hyundai's responses? Based on what language or other criteria are you forming your opinion?

Snap CEO Unconcerned About Stock Drop

For a recent IPO, Snap Inc. is taking a big hit. The stock dropped more than 20% when the company missed its first-quarter results, and few people seemed interested in picking up the shares. Analysts worry that Facebook is a fierce competitor that will usurp what's unique about Snap. Snapchat has recently introduced features for video and images to be maintained forever, which is not the original intent of Snapchat.

CEO Even Spiegel isn't helping. Jim Cramer joked, although he's against hazing, Spiegel is arrogant and needs to be hazed. Cramer suggested, on future earnings calls, Spiegel say he wants to do better and then turn it over to his CFO. Cramer said, "Humility is a fabulous thing."

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Discussion:

• This is a difficult situation for the CEO of a newly public, suddenly billion-dollar company. Spiegel has to be confident, yet Cramer suggests humility. How can he do both?
• Spiegel compares Facebook to Yahoo and Snap to Google, which is one of the reasons Cramer called him "arrogant." Do you agree with the comparison? Do you agree with Cramer's assessment?
• Read more of Spiegel's earnings call here. What does he need to improve?

Richard Branson's Letter About Virgin America

Richard Branson wrote an open letter lamenting the end of Virgin America. Alaska Air Group purchased the company in 2016 and, only three months later, decided to retire the brand. An Alaska Air official said, "We are going to be able to create a real, strong, integrated airline for travelers on the West Coast." Brandon says, "It has a very different business model and sadly, it could not find a way to maintain its own brand and that of Virgin America."

Branson uses emotional language to describe the decision and the demise of Virgin Records:

With a lot of things in life, there is a point where we have to let go and appreciate the fact that we had this ride at all. Many years ago, I shed tears over selling my beloved Virgin Records for $1 billion, which we needed to fight off British Airways' Dirty Tricks campaign to try to put Virgin Atlantic out of business. Many tears are shed today, this time over Alaska Airlines' decision to buy and now retire Virgin America.

Branson compliments the airline's employees and customers and includes memories:

Every market was hard-won. The launch parties, the networking, the productivity on flights, the live concerts at 35,000 feet, the marriage proposals, the first in-flight wedding, the Oprah Skype to the plane!

As you might expect from a big personality like Branson, he ends the letter on a dramatic note:

George Harrison once said, "All Things Must Pass." This was the ride and love of a lifetime. I feel very lucky to have been on it with all of you. I'm told some people at Virgin America are calling today "the day the music died." It is a sad (and some would say baffling) day. But I'd like to assure them that the music never dies.

Discussion:

• Analyze Branson's letter. Who are the primary and secondary audiences? What are the communication objectives? What is the organizational strategy?
• Given your analysis, how well does the letter meet its objectives?

Uber Loses President After Six Months

Adding to Uber's trouble, President Jeff Jones resigned after only six months on the job, citing issues with the company. Reuters summarizes a statement submitted by Jones, who was previously the CMO for Target:

"I joined Uber because of its mission, and the challenge to build global capabilities that would help the company mature and thrive long term," Jones said.

"It is now clear, however, that the beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber, and I can no longer continue as president of the ride sharing business," he added. Jones wished the "thousands of amazing people at the company" well.

This is the sixth executive departure within the month. In an emailed statement, Uber wrote, "We want to thank Jeff for his six months at the company and wish him all the best."

This weekend, The New York Times Technology section reported that Bill Gurley, whose venture capital firm, Benchmark, owns 20% of Uber, is taking a more active role in the company. Gurley is known for warning start-ups about "excessive risk-taking." The Times also describes Gurley as "a rare figure, a Silicon Valley habitué who chides some of the biggest start-up stars to show some discipline and drop their arrogant behavior." It sounds like Uber will get some lessons in humility.

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Discussion:

• Jones didn't have to say anything when he left. Why do you think he chose to handled the situation as he did? What were his other choices and the potential consequences?
• Uber's statement is short and sweet. Should the company have said something else?
• What does humility mean to you? Do you agree that Uber could use a dose?

Medium's Layoff and Strategy Post

Medium CEO Evan Williams, also co-founder of Twitter, posted news about the blogging site's new direction, including 50 layoffs. His blog post is a good example of communicating bad news in a respectful, sensitive way.

In this post, Williams takes responsibility for past decisions that haven't panned out:

Our vision, when we started in 2012, was ambitious: To build a platform that defined a new model for media on the internet. The problem, as we saw it, was that the incentives driving the creation and spread of content were not serving the people consuming it or creating it - or society as a whole. As I wrote at the time, "The current system causes increasing amounts of misinformation…and pressure to put out more content more cheaply - depth, originality, or quality be damned. It's unsustainable and unsatisfying for producers and consumers alike….We need a new model."

He also used plenty of emotional language to refer to people (e.g., "Obviously, this is a tough thing to do, made tougher by the immense respect and love we have for these people who have helped make Medium what it is today") and to refer to the business (e.g., "broken system").

Fortune reviews Williams' plan to change the business model, particularly focusing more on serving people, but the author is skeptical: "It is unclear how the company will approach the new goal."

Discussion:

• What examples of emotional language do you identify in Williams' post?
• How do you think employees reacted to the message? Consider employees both leaving and staying.
• He's quite open about the decision and plans for the business considering this is a public blog post. Why would he take this approach?

Kraft Heinz Withdraws Unilever Bid

Kraft Heinz won't acquire Unilever, after all, the two companies announced in a joint press release. The news sent ripples through Unilever's stock, which fell 7% after rising 13% on the initial news. 13%.

The original bid was for $143 million, but Unilever's response wasn't enthusiastic, claiming the price "fundamentally undervalues" the company. Ken Shea, a Bloomberg analyst questioned the whole deal: "The strange episode suggests that Kraft Heinz acted a bit hastily with its takeover plan, and evidently did not think it fully through. Also, the timing and size of the bid-coming just after its earnings conference call on Wednesday last week, in which it downplayed the need for acquisitions-likely leaves their Wall Street credibility diminished."

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Discussion:

• How does the withdrawal reflect on Unilever? Kraft Heinz?
• What's your view of the joint statement? Why would the two companies take this approach?

Ralph Lauren Loses CEO and Value

Ralph Lauren CEO Stefan Larsson resigned over what the Chicago Tribune calls a "creative clash" with the company founder. The company is struggling to maintain sales as its preppy style appeals to an older crowd, and the brand hasn't found a way to attract new customers.

In a statement, founder Ralph Lauren said, "We both recognize the need to evolve. However, we have found that we have different views on how to evolve the creative and consumer-facing parts of the business. After many conversations with one another, and our board of directors, we have agreed to part ways."

In retrospect, perhaps Larsson was a tough fit: he came from Old Navy, which is a budget brand. He was quoted in the company's press release: "In June, we announced a plan to refocus the Company on what made it iconic, evolve that for today and build our brand to its full potential. That plan is on track—I am proud of the progress the whole team has made and I am committed to ensuring its uninterrupted execution. Ralph will always be an inspiration to me, and I am grateful to have had this experience."

Lauren also said, "The board and I are committed to the execution of the Way Forward Plan and continuing to move our business and iconic brand forward."

The stock fell 12% after the news was announced.

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Discussion:

• Read Ralph Lauren's press release. How well does the message convey what happened? Does reading the release enhance or diminish the image of the brand in your eyes?
• Assess Larsson's quotation in the release. How well does he explain his own performance while maintaining the company's brand?