More Trouble for Wells Fargo

In what The Wall Street Journal called "another round of blistering criticism," Wells Fargo CEO John Stumpf faced the House Financial Services Committee on Thursday. If Elizabeth Warren didn't challenge Stumpf enough last week during the Senate Banking Committee Hearing, Chairman Jeb Hensarling stated early on, in his opening statement, "Fraud is fraud. Theft is theft."

He also said, "All culpable individuals must be held accountable." Earlier in the week, Stumpf was criticized for firing low-level employees but retaining managers. For the first time, Stumpf said that "10% or more" of the 5,300 employees fired were branch managers, but that didn't seem to soothe the committee members. Others expressed enthusiasm for the $41 million clawback (money recovered from Stumpf's compensation), said he should be fired, and encouraged the break-up of Wells Fargo.

Jeff Sonnenfeld, A Yale University School of Management professor, called Stumpf "completely unprepared" and called the scene "political theater."

To make matters worse for Wells Fargo, the bank will pay $24 million in settlements for "allegedly improper repossessions of cars belonging to members of the U.S. military."

Discussion Starters:

• How well did Hensarling introduce the hearings? Did you find him too harsh, right on target, or something else?
• Sonnenfeld also says Stumpf wasn't prepared for questions. Do you agree with his assessment?
• What were Stumpf's strongest and weakest points?

News Conference About the NJ Train Crash

One person was killed and 108 were injured when a train crashed in Hoboken, NJ. What caused the crash is still unclear, and NJ Governor Chris Christie promised an investigation: "We have no indication that this is anything other than a tragic accident but ... we're going to let the law enforcement professionals pursue the facts."

Christie gave a news conference with NY Governor Andrew Cuomo, calling the incident "obviously an extraordinary tragedy." He said it was too early to guess what happened.

• Analyze Christie's delivery skills at the beginning of the press conference. What principles from Chapter 11 does he use?
• Next analyze Cuomo's delivery skills. What similarities and differences do you notice?
• How well do the governors respond to questions? Which were the most difficult to address?
• This isn't the first train crash in the area. Research other recent events and how officials handled those situations.

Wells Fargo CEO Suffers Tough Questions

During the U.S. Senate Committee Hearing, Wells Fargo CEO John Stumpf responded to difficult questions, particularly from Senator Elizabeth Warren, a democrat from Massachusetts. Stumpf's prepared responses, particularly the "only 1%" of employees argument, wasn't well received by Warren and others. Warren interrupted with harsh words, telling Stumpf, "You should resign and give back the money you took" and calling his practice "gutless leadership."

Another tense moment, reported by The Wall Street Journal, was when Senator Robert Menendez challenged Stumpf's salary:

Mr. Stumpf said earlier in the hearing that the fired employees had been making "good money" of $35,000 to $60,000 a year, a point that Sen. Robert Menendez brought up. "How much money did you make last year?" asked Sen. Menendez. "$19.3 million," replied Mr. Stumpf.

"Now that's good money," Sen. Menendez replied, unsmiling.

Menendez, from New Jersey, gave a poignant example of a woman's daughter whose credit score was affected by the scandal.

Discussion Starters:

• How would you describe Warren's approach in questioning? Do you find her inquiries fair, unfair, or something else?
• How well did Stumpf respond to Warren's questions?

Wells Fargo Reaches Settlement Agreement

Wells Fargo is taking action after the discovery that bank employees opened millions of fake checking and credit card accounts. Employees opened accounts in unsuspecting customers' names so they could earn credit for the sale. The bank benefited from fees people paid on accounts they never used.

In addition to paying a $100 million settlement fee to the Consumer Financial Protection Bureau, the bank has fired 5,300 employees over the past few years.

The company issued two major communications related to the situation: 

• A press release
• An email to employees

In addition, Jim Cramer interviewed CEO John Stumpf on Mad Money:

Image source.

Discussion Starters:

• Compare the two Wells Fargo statements. How well does the company tailor these messages to primary and secondary audiences?
• How can customers miss paying fees? What is their responsibility, and what is the company's? Consider visual displays of bank statements in your response.
• How well does Stumpf respond to Jim Cramer's questions? Which are his strongest and weakest arguments?

Best Speech of the Conventions: Michelle Obama

Many are saying Michelle Obama's speech was the best of the bunch at the Democratic National Convention (Hillary's aside), and I would agree. From her humble laugh, overwhelmed at the crowd's response at the beginning to her call to action at the end, she captured the hearts of the delegates and, Democrats hope, some Republicans too. 

Obama talked about children throughout her speech, particularly her own: 

"That is the story of this country, the story that has brought me to this stage tonight, the story of generations of people who felt the lash of bondage, the shame of servitude, the sting of segregation, but who kept on striving and hoping and doing what needed to be done so that today I wake up every morning in a house that was built by slaves.

And I watch my daughters, two beautiful, intelligent, black young women playing with their dogs on the White House lawn.

And because of Hillary Clinton, my daughters and all our sons and daughters now take for granted that a woman can be president of the United States."

She tried, as did other speakers, such as Mike Bloomberg, to elevate the vote beyond a Republican/Democrat decision and focused on the best person to lead: 

And make no mistake about it, this November when we go to the polls that is what we're deciding, not Democrat or Republican, not left or right. No, in this election and every election is about who will have the power to shape our children for the next four or eight years of their lives.

And I am here tonight because in this election there is only one person who I trust with that responsibility, only one person who I believe is truly qualified to be president of the United States, and that is our friend Hillary Clinton.

Discussion Starters:

• What makes Michelle Obama's speech so compelling? Consider the content as well as her tone and body language. Do you agree that hers was the best of the convention? 
• Obama didn't mention the controversy around Melania Trump plagiarizing her 2008 DNC speech. Should she have? 
• Which other speeches in both conventions were powerful? Do you find any compelling, even though they may not align with their political views? 

Melania Trump's Plagiarized Speech

By any definition, Melania Trump's GOP Convention speech was plagiarized from Michelle Obama. The similarities between Donald Trump's wife's speech and Michelle Obama's 2008 DNC speech are uncanny. Here's one comparison from CNN, and other similarities exist:

Donald Trump's campaign chairman Paul Manafort denied accusations of plagiarism: "To think that she would do something like that knowing how scrutinized her speech was going to be last night is just really absurd." Senior Communications Advisor Jason Miller said only, "In writing her beautiful speech, Melania's team of writers took notes on her life's inspirations, and in some instances included fragments that reflected her own thinking. Melania's immigrant experience and love for America shone through in her speech, which made it such a success."

Later, the RNC communications director, Sean Spicer, said that searches for some of Ms. Trump's phrases turn up similarities from "My Little Pony" and John Legend, who tweeted, "I would very much like to be excluded from this narrative." But the phrases are not nearly as verbatim as those in Michelle Obama's speech. Spicer told The Huffington Post, "Melania Trump said, 'You work hard for what you want in life.' Akon said, 'Work hard for what you get in life.' John Legend said, ‘Work hard.'" 

Update: Meredith McIver, a Trump staff writer, took responsibility for the mistake. A New York Times article said the letter "breathed new life into a story now in its third day." 

Discussion Starters:

• How could such a mistake happen? Melania Trump said, "I read once over it, that's all, because I wrote it ... with (as) little help as possible."
• The Trump campaign said that no one will be fired over this incident. Should someone take the fall? 
• Does McIver's admission end the conversation? What else, if anything, should the campaign managers or Trumps say? Is The New York Times writer right: did the admission just keep the story alive? 

Cameron's Resignation Speech

Having campaigned for the UK to stay part of the European Union, Prime Minister David Cameron had little choice but to resign when the vote was for "Brexit." (See full text.)

Cameron complimented people on both sides of the debate: 

I want to thank everyone who took part in the campaign on my side of the argument, including all those who put aside party differences to speak in what they believed was the national interest.

And let me congratulate all those who took part in the "Leave" campaign - for the spirited and passionate case that they made.

As expected, he ended positively: 

I love this country - and I feel honored to have served it.

And I will do everything I can in future to help this great country succeed.

Discussion Starters: 

• Reactions to Cameron's speech have been highly positive. Do you agree? If so, what makes this a successful speech? How could it be improved? 
• Consider the speech organization. Create an outline showing his main points. What is the logical sequencing? 

Communications About Orlando Tragedy

The tragic shooting at an Orlando, FL, gay club has brought communications from local politicians, global mourners, and of course, presidential candidates. The killer's motive could be homophobia, terrorism, or both, depending on your perspective. With 50 people dead and another 53 wounded, this is the largest attack since 9/11 and has left people wondering how and why.

Here's a summary of communications about the event:

• President Obama's statement. Sadly, this isn't his first speech following a shooting tragedy in this country, and his message is consistent about needing more gun control.
• The National Rifle Association's op-ed in USA Today.
• News conference with police chief, FBI, and mayor, June 12 (below)
• Police chief's news conference, June 13
• Orlando college statements offering condolences and support.
• Presidential candidates' statements:
  • Bernie Sanders
  • Hillary Clinton
  • Donald Trump

Image source.

Discussion Starters:

• Compare the presidential candidates' statements. How do their positions differ, and which do you most support?
• Assess the news conference. How are the officials sharing responsibilities, reporting on events, demonstrating sympathy, and so on?

UCLA Responds to Shootings

It's another sad day of shootings, this time at UCLA, leaving two dead in what seems like a murder-suicide. 

The university has published several communications to keep the community informed and help people deal with this tragedy: 

• An email from Chancellor Gene Block, also posted on the university's website
• A news statement on the website
• A press conference with the Chancellor, posted on YouTube

Messages offer condolences and counseling, thank police and others who responded, and focus on healing. Trying to get back to some sense of normality, the university will resume classes except in the engineering building where a professor was killed. Provost Scott Waugh explains: "Obviously there's a lot of very distressed students, faculty and staff. And our goal within the school is to heal those wounds and make sure that they feel comfortable with the situation before resuming normal activities."

Discussion Starters: 

• Who are the primary and secondary audiences for the university's messages? 
• Assess the chancellor's press statement. What principles of delivering bad news and delivering oral presentations does he use? 

Data Visualization as a "Discipline"

A Harvard Business Review article reminds us to focus on our message when visualizing data. Author Scott Berinato suggests asking ourselves two questions to start: 

• Is the information conceptual or data-driven?
• Am I declaring something or exploring something?

Berinato then identifies four types of visual communication: idea illustration, idea generation, visual discovery, and everyday dataviz. For idea illustration, he offers a weak and an improved example. You'll notice that the first includes elements of "chart junk" that detract from the message.

Discussion Starters: 

• How does Berinato's second example illustrate principles from Chapter 9 in the text book? 
• Consider a message you need to communicate. How does this article help you decide what visuals would support your points? 

Ted Cruz Ends Campaign

After the Indiana primary, presidential candidate Ted Cruz announced the end of his campaign. He told a crowd of supporters that he doesn't see a "viable path" to the office: 

"And so, with a heavy heart, but with boundless optimism for the long-term future of our nation, we are suspending our campaign. But hear me now, I am not suspending our fight for liberty. I am not suspending our fight to defend the Constitution, to defend the Judeo-Christian values that built America. Our movement will continue. And I give you my word that I will continue this fight with all of my strength and all of my ability."

His message is positive, but he was not so just hours before the polls opened when he said, "If Indiana does not act, this country could well plunge into the abyss." 

Cruz tried to defeat Donald Trump in the past couple of weeks by announcing former presidential candidate Carly Fiorina as his vice presidential running mate. But a Morning Consult Survey reported that this decision would have no impact on voters, and the results have played out. This tweet refers to the downsizing at Hewlett Packard when Fiorina was CEO:  

Discussion Starters: 

• Analyze the primary and secondary audiences for Cruz's speech. How well does he meet their needs?
• Also analyze his tone and delivery style. In what ways does this match what you would expect of a presidential candidate ending his campaign, and how does it differ?

Fun at This Year's Correspondents' Dinner

The White House Correspondents' Association Dinner is the one night the president and others can make fun at themselves and each other publicly. The dinner is an annual roast of politicians, celebrities, and journalists.

Here are a few highlights from President Obama's speech from NPR: 

• "I was running on CPT, which stands for jokes that white people should not make." [a reference to NYC Mayor Bill de Blasio's bad reference]
• "As you know, Spotlight is a film about investigative journalists with the resources, the autonomy, to chase down the truth and hold the powerful accountable. Best fantasy film since Star Wars."
• "Savannah Guthrie left the White House press corps to host The Today Show. Nora O'Donnell left the briefing room to host CBS This Morning. Jake Tapper left journalism to join CNN."

Of course, the current presidential candidates were fair game. He poked fun at Hillary Clinton's lack of Facebook skills, Donald Trump's history of "running waterfront properties into the ground," and Bernie Sanders' reputation as a democratic socialist.

Discussion Starters: 

• Which of President Obama's jokes worked best, and which fell short? How many references did you miss? (You have to keep up with news to get the jokes.) 
• Watch Cecily Strong's speech. How does it compare to President Obama's?

Maine Governor Stops Mid-Speech, Calls Students "Idiots"

The Governor of Maine walked out in the middle of a dedication speech at the University of Maine at Farmington. Paul R. LePage was thrown by seeing students holding protest signs. The Governor's speech begins at 5:27 on this video.

The Chronicle describes the interruption:

Mr. LePage reportedly saw the signs 15 seconds into his speech, and then began to pause and struggle with his text. After 30 seconds more, he said he was done, apologized, and left the stage.

"Thank you, you idiots out back there with the signs," the newspaper quoted Mr. LePage as saying as he left. One sign said: "LePage: Maine's Shame." The other was an environmental report card that gave Mr. LePage an F.

The Governor later apologized at a Town Hall meeting:

"First and foremost, I apologize to President Foster and especially to Theodora Kalikow for the sequence of events on Tuesday. I was humbled to be invited to speak at a ceremony to honor Theodora Kalikow and recognize the great legacy she has left the University of Maine at Farmington, as well as its faculty, staff and students.

"I am accustomed to daily attacks and ridicule from protestors, but most people are not. Neither Theo, nor the people who were gathered to honor her, deserved for this heartfelt occasion to be disrespected by smug and self-serving protestors. If they wish to protest me, that's fine: we all have the right to express our freedom of speech. But this event was not about me. I was sickened by the lack of respect displayed by two protestors holding up demeaning signs-including one with Theo's name on it-during an event that was supposed to celebrate and honor a remarkable woman who has contributed so many years to improving education in Maine.

"For more than five years, the media has flocked to events where I have been asked to speak, not to cover any good news about the events, but to disparage me over issues totally unrelated to the events. Since I am such a distraction to the media, I will no longer attend some of these public events. I sincerely hope the media will continue to attend these events and report on the good people of Maine and the many positive things they are doing for our state."

The Governor may have a short fuse. In another incident this week, he prevented the media and legislators from accessing a meeting about education. He said, "The press take seven seconds of what I say, and they make a s*** show out of it. I'm tired of it."

Maybe he just needs a vacation.

Discussion Starters:

• Assess the Governor's apology. How does this meet and fall short of business communication principles?
• How can presenters avoid being affected by protesters and other interruptions?

Sponsor Trouble for Maria Sharapova

Russian Tennis star Maria Sharapova is in a tough spot. She admitted that she failed a drug test and has taken "full responsibility" for it. 

Sharapova said she was taking Meldonium, a medication for heart disease, which was added to the list of banned substances this year. She also said that the medication goes by another name, which she didn't know: "It is very important for you to understand that for 10 years this medicine was not on WADA's banned list, and I had been legally taking the medicine. But on January the first, the rules have changed." She also said, "I made a huge mistake. I let my fans down and I let the sport down."

But did she have to call the hotel's carpet "ugly"? 

Although her admission and apology are clear, her sponsors don't want to wait for more news. Nike issued this statement: "We are saddened and surprised by the news about Maria Sharapova. We have decided to suspend our relationship with Maria while the investigation continues. We will continue to monitor the situation." Tag Heuer and Porsche also cancelled contracts, with the former explaining, "We had been in talks to extend our collaboration. In view of the current situation, the brand has decided not to renew the contract with Sharapova."

As of today, Nike's website page, "Maria Sharapova News" shows positive stories about the star and no mention of the decision. 

Discussion Starters: 

• How well is Sharapova handling the situation? Assess the news conference. 
• Did Nike, Tag Heuer, and Porsche do the right thing? What pressures are on the sponsoring companies?

The Republicans' 11th Debate

Insults flew during what theSkimm called the "1,000,000th GOP debate." Hosted by Fox News, the debate included the last four standing candidates: Donald Trump, Ted Cruz, Marco Rubio, and John Kasich. Here's part 1:

After Trump's boycott of the previous debate, he and moderator Megyn Kelly started out on a better note:

"Mr. Trump. Hi. How are you doing?" Kelly said.

"Hi Megyn. You're looking well," Trump said.

BusinessInsider listed a few highlights of the debate, which I appreciate because I don't have the stomach for barbs about hair styles and body parts. Some clips relevant to communication follow:

9:18 p.m. EST - Trump dodged a question from Wallace about why some of his clothing line was made in Mexico instead of the US. Instead, Trump went after Rubio's assertion that the former reality-television star inherited $200 million from his father.

"This little guy has lied so much about my record," Trump said.

9:21 p.m. EST - Rubio slammed Trump for resorting to ad hominem attacks instead of addressing questions about policy. 

"You see what happens again when you challenge him on a policy issue?" Rubio said. "You ask him about economic issues, and he the first thing he does is launch into this thing about 'little Marco.'"

"He doesn't have answers and he's asking to be president of the United States."

10:23 p.m. EST -Rubio criticized Democrats for "politicizing" the water crisis in Flint, Michigan.

"The politicizing of it is unfair," Rubio said of the water crisis. "Because I don't think someone woke up some morning and said 'Let's poison people.'"

Discussion Starters:

• Assess the three examples above. How well did the candidates respond to the question or handle the issue?
• What do you consider to be the high points-and low points-of the debate?
• Who do you think "won" the debate?
• What, if any, influence will this debate have on the rest of the primary elections?

Awkward Moment During VW Presentation

A protester didn't help Volkswagen's image during a press conference at the Geneva Motor Show. Dressed in a VW uniform, comedian Simon Brodkin got on stage to place a fake "cheat box" under the car while board member Jürgen Stackmann was speaking.  

Stackmann was in a tough spot and said "Thank you" repeated and awkwardly tried to escort Brodkin away from the car.

This isn't the first time Brodkin pulled a prank. During a FIFA press conference, he threw $600 in bills at President Sepp Blatter. After that stunt, Swiss authorities charged Brodkin with trespassing. 

Discussion Starters: 

• What's your view of Brodkin's antics? Is his approach more productive, disruptive, or destructive? 
• How well did Stackmann handle the incident? What could he have done differently? 

In Tightening Race, Arguments About Wall Street

Hillary Clinton and Bernie Sanders debated last night in an elevated argument about policies and finances. In January, for the first time, the Sanders campaign raised more than Clinton's, which her finance director said was, "a very loud wake-up call." Clinton also won the Iowa caucus, but by a small margin. As a result, the tone of the debate changed.

In this clip, the reporter asks about Clinton's record, and Sanders avoids the question to discuss his view on "big banks."

As Sanders campaigns for equity, he shuns contributions from financial services companies: "I am very proud to be the only candidate up here who does not have super PAC, who's not raising huge sums from Wall Street and special interests." He questioned Clinton's contributions from companies, such as Goldman Sachs, which paid her $675,000 for three speeches, and gave examples of inequity:

He said that when a "kid gets caught with marijuana, that kid has a police record." But when "a Wall Street executive destroys the economy" and pays a $5 billion settlement, he has no criminal record.

Wall Street has been a popular topic on both the Republican and Democratic campaigns. Ted Cruz was recently criticized for accepting money from Goldman Sachs without disclosing it.

Discussion Starters:

• Assess the candidates' arguments about Wall Street. What's your opinion on the power of Wall Street?
• Who do you think won the debate? What were the highlights?  

"Why I Left My Sorority" Video

The Chronicle of Higher Education interviewed Alex Purdy, a student at Syracuse University who posted a video, "Why I Left My Sorority." Purdy explains her decision without calling out her particular sorority, but gives some damning examples, such as sisters "body shaming" other sisters. She says the biggest problem is "the overwhelming lack of compassion for one another." Purdy is also careful to say that this reflects only her experience and may not represent all sororities.

In the interview, Purdy says she worked on the video for more than six months and had been worried about how people would react. Since then, the video, with the hashtag #sororityrevamp, has received more than 100,000 views, and Purdy has appeared on the Today show.

Most Twitter comments are positive, complimenting Purdy for raising the conversation. Some expressed gratitude for their own sorority, which they say is a kind, compassionate place.

Dani Weatherford, executive director of the National Panhellenic Conference, provided this statement for The Washington Post:

We share in Alex's call for a thoughtful dialogue regarding how to best shape the modern sorority experience. Our member organizations set high standards, and a conversation about living up to them is one that we always welcome.

We also know that for millions of women, sorority membership has been and continues to be transformational and life-changing. We know from research that sorority women are not only more likely to graduate, but to graduate on time and to report a positive sense of engagement in their personal and professional lives.

For us, Alex's story is a reminder that our work must continue as we seek to enhance a sorority experience more than 100 years strong that's rooted in creating opportunities for service, leadership and scholarship. 

Discussion Starters:

• What examples do you hear of logical argument, emotional appeal, and credibility?
• How does she organize the video? Do you find this structure helpful to her argument, or does it detract from her points?
• How do you assess Purdy's own credibility? What makes her credible, and what might diminish her credibility?

Marriott CEO Interview at Davos

Marriott CEO Arne Sorenson told Bloomberg TV at Davos that he's optimistic about the hotel outlook for 2016. 

 

Sorenson uses logical arguments to explain his perspective on rates and bookings despite weak performance in the stock market. Referring to industry data, he makes a convincing case that Marriott will see similar revenue in 2016. 

In discussing the Starwood acquisition, Sorenson explains the purchase of equity (and a lower price today than what was announced) and describes plans for the integration mid-2016. He also talks about more potential M&A activity for other hotel companies.

Discussion Starters: 

• What examples of logical arguments do you identify in Sorenson's interview?
• What data does he use to support his points? 
• Sorenson is realistic. Identify at least three examples of reservations and qualifiers you hear him use. How do these help or hurt his position? 

Another Call for Hope in Obama's Last SOTU

President Obama's presidency came full circle in his last State of the Union (SOTU) address. The speech was not without humor. The president began by promising to keep it short, so people could get back to Iowa for more campaigning.  (Transcript)

As expected, the president highlighted accomplishments from his administration and laid out plans for the future. The speech sounded optimistic, which of course, was the theme of his first presidential campaign. He ended this way:

That's the America I know. That's the country we love. Clear- eyed, big-hearted, undaunted by challenge, optimistic that unarmed truth and unconditional love will have the final word. That's what makes me so hopeful about our future.

I believe in change because I believe in you, the American people. And that's why I stand here, as confident as I have ever been, that the state of our Union is strong.

The audience reaction is typical and always baffles me: Republicans don't support anything a Democratic president says, and the opposite happens when we have a Republican president. It's strange to me when the President makes some points that, surely, everyone agrees with. Early on, he says, "First, how do we give everyone a fair shot at opportunity and security in this new economy?" The camera is on Marco Rubio, who sits stoically in non-response. Doesn't he support opportunity for everyone?

As usual, major newspapers showed their political bent in reporting on the SOTU. The Wall Street Journal ran a secondary headline on the front page with the title, "GOP Candidates Contrast Obama's Speech With Their Own Aims." The Journal showed additional stories under the "Politics" heading further down on the site, shown here.

In contrast, The New York Times ran the story as the main headline of the day with the title, "Obama Offers Hopeful Vision While Noting Nation's Fears," and ran more stories, including opinions, with positive titles about the speech.  

Discussion Starters: 

• What do you consider to be the highlights of President Obama's speech?
• Look at the audience's reactions. What's your view of the convention I mention above: how does the non-response serve each side?