New McKinsey Report with Charts

Business Communication and Character always includes a McKinsey report as a positive example, and the latest report about attrition and hiring doesn’t disappoint. Posted on the website without a fee, the report starts with a clear heading:

People keep quitting at record levels, yet companies are still trying to attract and retain them the same old ways. New research identifies five types of workers that employers can reach to fill jobs.

Main points are interspersed throughout the report in blue text, and descriptive headings with background images provide clear section divisions. The report is logical and easy to read, starting with the reasons for “The Great Renegotiation” or “The Great Attrition” (renamed from the “The Great Resignation” in previous news reports). Next, readers learn about “five personas”—types of workers and how to target each for employment.

As I always enjoy in McKinsey reports, the charts are clear, visually appealing, and varied. This report uses a simple color scheme and charts as they should be used: to interpret data and provide a lot of information at-a-glance.

Overall, this is a good example for our business communication students to follow.

The King's Speech

Although not a business presentation, King Charles III’s first address after Queen Elizabeth’s passing teaches communication lessons. His objectives are to pay deep respects to his mother, while reassuring the British citizens (and the world) by establishing his leadership.

Although, news reports show people “shocked” by the Queen’s death, this time was inevitable, and The King had plenty of time to prepare. He tackles difficult subjects, for example, the family split, in expected fashion—by alluding to them without addressing them directly. Another example is the extraordinary inflation that Britain has suffered. He mentioned “charities and issues for which I care so deeply” that will now be taken up by the new Prince of Wales.

The Guardian identifies a few examples of “expressions of open emotion.” One was “I want also to express my love for Harry and Meghan as they continue to build their lives overseas.” The couple’s leaving royal life after experiencing racist comments from the family has been painful and a public scandal. Other examples follow, as The Guardian reports:

“I count on the loving help of my darling wife, Camilla” and finished with an emotional sign off to his “darling Mama” when he wished: “May ‘flights of angels sing thee to thy rest’,” a quote from the ending of Shakespeare’s Hamlet.

From an American perspective—and other cultures—the speech may be considered flat. He is sitting and reading from a script, and his pace is slow and deliberate. But the speech is certainly appropriate for the difficult situation that the King faces, just one day after a new Prime Minister shook hands with the beloved Queen.

Bed Bath & Beyond Statement About CFO Suicide

A leader’s death by suicide is particularly difficult to communicate. Bed Bath & Beyond, with an interim CEO and already suffering from declining sales, profits, and stock price (despite a temporary run-up by Reddit), faced news of the CFO’s dramatic death. Sadly, Gustavo Arnal jumped from his apartment building in Manhattan two days after an investor presentation about the company’s strategy to further cut jobs and close stores. Hired two years ago, Arnal was recently accused, with another executive, of artificially inflating the stock price before selling about $1.4 million worth of shares, which was pre-planned.

What is appropriate to say in such a situation? News articles took one sentence from the company’s statement: “The entire Bed Bath & Beyond Inc. organization is profoundly saddened by this shocking loss.” The entire statement is below and does what it needs to do: express condolences and respect to his family and recognize his career and his value to the company.

As a bad-news message, the main point is right up front. Appropriately, the writers demonstrate compassion and integrity: the statement does not mention the cause of death or the pending litigation.

UPDATE: A Wall Street Journal article describes the incredible stress that Arnal was under, working 18-hour days. Before the long weekend, he had requested a break, which was in discussion.

Bed Bath & Beyond Inc. Mourns the Loss of Executive Vice President and Chief Financial Officer, Gustavo Arnal

UNION, N.J., Sept. 4, 2022 /PRNewswire/ -- Bed Bath & Beyond Inc. (NASDAQ: BBBY) today announced that Gustavo Arnal, Executive Vice President and Chief Financial Officer of the Company, passed away on September 2, 2022. The entire Bed Bath & Beyond Inc. organization is profoundly saddened by this shocking loss.

"I wish to extend our sincerest condolences to Gustavo's family. Gustavo will be remembered by all he worked with for his leadership, talent and stewardship of our Company. I am proud to have been his colleague, and he will be truly missed by all of us at Bed Bath & Beyond and everyone who had the pleasure of knowing him," said Harriet Edelman, Independent Chair of the Bed Bath & Beyond Inc. Board of Directors. "Our focus is on supporting his family and his team and our thoughts are with them during this sad and difficult time. Please join us in respecting the family's privacy."

Mr. Arnal joined Bed Bath & Beyond Inc. in May 2020 following a distinguished global career in finance at Avon, Walgreens Boots Alliance, and Procter & Gamble. At Bed Bath & Beyond Inc., Mr. Arnal was instrumental in guiding the organization throughout the coronavirus pandemic, transforming the Company's financial foundation and building a strong and talented team. He was also an esteemed colleague in the financial community.

Image source.

U.S. DOT Airline Dashboard

The U.S. Department of Transportation (DOT) created what it calls a “dashboard” for passengers to know what to expect when their flight is delayed or cancelled. This work results from ongoing debate about airlines’ responsibility, particularly given the many issues travelers have experienced since the pandemic. Transportation Secretary Pete Buttigieg has pushed the airlines to offer at least free meals for 3-hour or longer delays and free hotel stays when passengers need to wait at an airport.

Although some airlines say they already offered these accommodations, DOT Deputy Secretary Polly Trottenberg said this is about enforcement: “Now that it’s in the customer service plans, it’s not something in discretion. It’s something we can enforce. And I think this dashboard is really going to kind of raise the state-of-the-art for consumers.”

As a visual, the dashboard works well. Looking across the rows, we see clearly what to expect from each of the airlines. Categorizing the actions by cancellations (shown here) and delays makes sense from the passenger’s perspective. However, the graphic is skewed right on the page because of the left-side column.

In addition, when I hear “dashboard,” I think of a more complex, interactive spreadsheet. The only functionality seems kind-of silly. The dropdown menu at top doesn’t add value because we can just as easily scan across to see what any airline provides. Also, I’m not sure why anyone would want the ability to “keep only” or “exclude” specific items—or to see repetitive text when they mouseover the markings. Finally, I chose “view data” and got the following in a pop-up window, which communicates nothing relevant.

I would call the visual a table, matrix, or grid. But I don’t want to disregard the good news: airlines are communicating what customers can expect, can be held accountable and, in some cases, are providing better service.

RadioShack Takes Risks in New Ad Campaign

RadioShack launched a new advertising campaign that includes sexual and other questionable references. The situation is an interesting example of persuasive communication—catchy and potentially offensive.

A Wall Street Journal article describes franchisees’ mixed reactions to the approach as well as the company’s new cryptocurrency exchange platform. As the majority franchisee, Bob Wilke, president of HobbyTown Unlimited complained, “This is so damaging to their integrity, and the reputation of the brand. We just do not want to be associated with that type of marketing.”

The company follows a sad story line, with 8,000 at its prime in 1999, filing for bankruptcy in 2015 and 2017, getting acquired, and limping along with 110 stores today. Looking at RadioShack’s history, we do see a different picture from the current marketing. This Business Insider article chronicles ads from the company’s inception in 1921, when products were sold primarily through catalogs.

Abel Czupor, the new marketing head, responded to the controversy: “Every company that has lovers also has haters, but that just means that marketing is working. And I would rather have lovers and haters than not having anyone that knows about the brand.” Edgy marketing attracts attention, but it’s not always positive. Business communication students can analyze the company’s roots and progression to decide whether the current strategy might work or only drag the brand further down.

Tip Menus Increase Tips

A Stanford Business researcher found that tip menus in NYC taxi cabs increase the amount people tipped unless the suggestions are too high. Percentages offer options without having to calculate the dollar amount, which seemed to appeal to riders.

In his working paper, Kwabena Baah Donkor theorizes that “the cost of deviating from the norm tip and opting out of the default tip menu are both high relative to the taxi fare.” Typically, people choose conforming and will take the easier path. Both are reasons to select a given tip percentage, assumed to be what others do in a similar situation.

Of course, this research is useful for other tipped workers. Students might consider other applications: in what other contexts could a menu of options simplify decision making and ultimately increase revenue or further business goals?

New Text Management Tools

Finally, we’ll soon be able to mark iPhone text messages as unread in addition to pinning them to the top of the heap. Android users can mark texts as important and organize them into categories based on sender and type.

These features recognize that texts are pervasive and useful—and becoming as overwhelming as email. Businesses do provide timely, relevant information, and people are more likely to open texts than emails, often within 15 minutes, so the appeal is clear.

My concern is whether texts are replacing email as a more efficient way of communicating—or whether they are simply piling on, causing us to spend more screen time.

UPDATE: A Wall Street Journal writer suggests additional tools and, as I suggest, ways to set limits.

Arguments About Student Loan Forgiveness

Students might be interested to analyze persuasive messages about the new U.S. student loan forgiveness program. Political pundits, economists, journalists, my sister—everyone has an opinion on the plan, which the government frames as “The Biden-Harris Administration's Student Debt Relief Plan.”

Today’s Wall Street Journal editorial board op-ed argues that the plan will benefit universities, giving them permission to raise tuition further.

In a New York Times op-ed, Paul Krugman takes a broader view and considers the impact on the economy.

Students can find additional arguments—and will have their own ideas. As for all arguments, identifying logical arguments, emotional appeals, and credibility illustrates an author’s persuasive communication strategy. Students also will identify rhetorical devices, organizational approaches, and logical fallacies. For example, the WSJ article refers to “Ivory Tower progressives,” and Krugman uses questions throughout his article.

This Week’s Charts

A Wall Street Journal article includes a few simple data slides about people losing and finding jobs. The first line chart, shown here, is a good example of an at-a-glance picture of the employment rebound. The second chart, below, takes a bit longer to digest but provides more information. Both do what graphics should do: illustrate relationships of data to provide insights.

This Bloomberg image about SoftBank’s “epic losses” made me smile. I used the bank’s vague, data-less graphics as examples in Chapter 9 of Business Communication and Character. But in those SoftBank slides, one of which is below, the arrows pointed up, showing the bank’s overly optimistic view of WeWork.

Nuclear Preparedness Video Fail

A New York City video about what to do during a nuclear disaster is criticized as unhelpful and lacking context. Mayor Eric Adams approved the PSA, part of a series about how to handle emergencies, such as extreme heat and flooding. Those videos received a few hundred views, while this one garnered more than 800,000, so officials consider it a success, but the reaction is mocking.

The video narrative says, “So there’s been a nuclear attack. Don’t ask me how or why; just know that the big one has hit.” Critics say that these types of service commercials typically start with some public announcement telling us what has or could happen. Mayor Adams said that the video was planned ”after the attacks in the Ukraine, and O.E.M. took a very proactive step to say, let’s be prepared,” and he “thought it was a great idea.” But we have no introduction. We’re left to worry: is the Ukraine facility an imminent danger?

Video presentation and quality count. Oddly, the YouTube post starts with an ad for a survival food kit. Then, the 1.5-minute video offers simplistic suggestions: get inside, stay inside, and stay tuned. Experts also question the advice. As one says, “get inside” isn’t practical when your house is gone, which will be the more likely case.

This situation may be the result, as the New York Times article suggests, of using a small, inexperienced production company. I wonder whether more context and more research, including focus groups, would have helped. Regardless, this is a communication failure.

Google Employee Petition

Google employees are petitioning for the company to stop collecting abortion-related data. The concern comes after Roe v. Wade was overturned, which could put women who search for abortion services in jeopardy.

Launched in January 2021, Alphabet Workers' Union is driving the petition, now signed by more than 650 employees. The group is asking Google to refrain from turning data about searches and illegal abortions over to authorities, as Facebook did; to omit “misleading ‘pregnancy crisis centers’” in search results, including maps, which often lead to anti-abortion centers; to stop donations and lobbying entirely; and more.

As tech employee activism becomes more prevalent, employees feel more empowered to demonstrate courage. I don’t see the entire petition, but I wonder whether employees are asking for too much, particularly an end to all lobbying and political donations. A more focused, realistic request of actions that show the company’s leadership among tech companies could be more effective.

Although the petition was sent to CEO Sundar Pichai and other executives on Monday, the group hadn’t received a response by Thursday. Company leaders are called on to demonstrate integrity—transparency in communication and consistency with company principles. This is also an opportunity to lead with humility and to show a willingness to be vulnerable because this is a highly sensitive issue with no clear answers. Although a difficult situation to address, leaders must respond, particularly before the story becomes about the lack of response.

New CEO Announcement

Foot Locker announced a new president and CEO. Mary N. Dillon, an external hire, will replace Richard A. Johnson, who is retiring after about seven years in the position.

The statement is typical for a positive-news message. First is a quote from Johnson expressing his gratitude and touting the new leader:

We are confident that Mary is the ideal person to serve as Foot Locker's next CEO and lead the Company forward. Mary has established a remarkable track record in the retail industry, and she brings an incredible mix of talent, experience and commitment to take Foot Locker to the next level.

Then, a quote from Dillon shows her enthusiasm:

I am thrilled to be joining Foot Locker, an iconic company that possesses a strong set of values and focus on the customer experience as well as tremendous growth opportunities. It is clear how Foot Locker sits at the heart of the global sport and sneaker community, and I am excited to become part of the Company's team. I look forward to working closely with Dick to ensure a smooth transition, and to partnering with the Board, leadership team and nearly 50,000 team members around the world to build on Foot Locker's strong foundation and help shape the Company's future.

Next comes a quote from the new nonexecutive board chairman, Dona Young, who had been an independent director.

The statement is a bit odd in that the title and subtitle are mismatched, and the subtitle could be misread.

Regardless, the news is good: although the company doesn’t explicitly say so, Foot Locker will be one of very few public companies that have women in both top roles. Dillon will be one of about 30 women who lead S&P 500 companies.

Calm App Layoff Email

Even meditation apps get bad news. Although the Calm app grew quickly during the COVID lockdowns, the company is now laying off 90 of its 400 employees—more than 20%.

I can’t find the full email online, but the Wall Street Journal posted these quotes:

Regrettably, today we are reducing our overall workforce by 20%. While some of you will be impacted, all of you will be affected. I can assure you that this was not an easy decision, but it is especially difficult for a company like ours whose mission is focused on workplace mental health and wellness.

“We did not come to this decision lightly, but are confident that these changes will help us prioritize the future, focus on growth and become a more efficient organization.”

The article also describe what’s missing:

Mr. Ko’s memo didn’t elaborate on the reasons for the layoffs but promised employees “a more in-depth discussion on the future of the business” at an all-hands meeting scheduled for Friday. A Calm spokeswoman declined to make Mr. Ko available for an interview.

Typically, layoff memos explain reasons, which we know helps employees understand and accept bad news, as I describe in Chapter 8 of Business Communication and Character. More transparency and accountability might be useful.

Maybe Ko doesn’t want the reasons publicized, knowing that the email would be circulated. I also wonder whether the reasons are dire, and despite having a $2billion valuation, the company doesn’t yet have a solid plan for regrowth.

Quiet Quitting and Communication

I wonder whether “quiet quitting” is a communication cop out. TikToker @zkchillin describes the term as “quitting the idea of going above and beyond at work.” He explains, “You’re still performing your duties, but you’re no longer subscribing to the hustle culture mentality that work has to be your life. The reality is, it’s not.”

This sounds like having a work-life balance, and I’m all for it. But the hyperbolic language (and alliteration) makes me curious about how this decision gets communicated. In professional jobs, position descriptions are flexible documents, with the last bullet typically, “other duties as assigned.” How do employees decline responsibilities, particularly tasks they were expected to—and had been willing to—perform in the past?

If an employee feels overburdened, it’s their responsibility to raise concerns over time. That takes courage and integrity and is a more mature and direct strategy than what sounds like passive-aggressively not doing work. Without that conversation, when output is compared to previous work, the employee will appear to be slacking even if they are meeting job responsibilities.

What is the impact on others? If tasks are openly renegotiated, then a team could work more efficiently. Instead, “quiet quitting” misses this opportunity and implies that some work might get tossed to other team members.

I also wonder how long this strategy will last if layoffs become more prevalent in a down economy. Employees have the upper hand now, but that won’t always be the case.

Amazon + iRobot Press Release

Amazon’s news release announcing the iRobot acquisition is as simple as they come. As a neutral/positive message, the news is right up front and focuses on the benefits to customers of using the Roomba product.

The statement says that the companies “have entered into a definitive merger agreement under which Amazon will acquire iRobot,” but acquisition seems more accurate than merger. The typical quotes from company leaders express enthusiasm on both sides. Then, company information sections and legal boilerplate dwarf the news.

As usual, what’s most interesting is unsaid. Roomba will help Amazon expand its Astro robot, which has had limited success. The day of the announcement, iRobot, struggling with declining sales and delayed orders, laid off 10% of the workforce. The acquisition faces anti-trust questions and privacy concerns. As the head of a consumer advocacy group said, “It's about the company gaining still more intimate details of our lives to gain unfair market advantage and sell us more stuff." Of course, all that is missing from the company statement.

Meta Explains Chatbot Offense

Meta’s new artificial intelligence software is already failing. The chatbot, BlenderBot 3, seems to believe Jewish conspiracy theories and that President Trump won the 2020 election, as shown in the conversation here.

Meta is focusing on BlenderBot 3’s pilot status and requires users to accept a statement before they interact:

I understand this bot is for research and entertainment only, and that is likely to make untrue or offensive statements. If this happens, I pledge to report these issues to help improve future research. Furthermore, I agree not to intentionally trigger the bot to make offensive statements.

The company describes BlenderBot 3 as a “state-of-the-art conversational agent that can converse naturally with people” and claims that feedback will improve how the bot interacts:

Since all conversational AI chatbots are known to sometimes mimic and generate unsafe, biased or offensive remarks, we’ve conducted large-scale studies, co-organized workshops and developed new techniques to create safeguards for BlenderBot 3. Despite this work, BlenderBot can still make rude or offensive comments, which is why we are collecting feedback that will help make future chatbots better.

As we learned from other messages this past week, company leaders are pushing back on complaints and asking customers to be patient. We’ll see whether Meta’s strategy of managing expectations turns out better for Blender than Microsoft’s response to complaints about its 2016 chatbot, which was removed after making anti-Semitic, racist, and sexist comments. Meta asks us for feedback, but I’d rather get offended by humans and invest my time in educating them instead of a bot.

CEOs’ Direct Talk

A Wall Street Journal article this week, “CEOs Ditch the Warm Talk as Economy Shows Signs That ‘Winter’s Coming,’” provides several examples of leaders’ direct communication. When we analyze bad-news messages in business communication, we consider the organizational strategy and, more important. tone and content choices. The current wave is for CEOs to warn employees about layoffs and prepare them for tough times ahead.

Some CEOs use this direct strategy to manipulate employees to return to offices, but others are demonstrating integrity. A CEO who asks employees to “do more with less” is being transparent. Employees may be motivated by this type of talk—either to work harder and cut costs or to leave the company. If employees leave, the CEO might be OK with that, hoping to reduce headcount or hire new workers who are more productive and have different skills.

Although the article title refers to declining “warm talk,” I would argue that the talk is compassionate—honestly preparing employees so they can make decisions about how and whether they want to continue working for the company.

Images source.

Cracker Barrel’s Minimal Response to Burger Criticism

Cracker Barrel added the plant-based Impossible Burger to its menu and faced more backlash than expected. An executive explained the change:

"Our new breakfast menu innovations provide a personalized experience with delicious breakfast choices to satisfy every taste bud—whether guests are nostalgic for homestyle food, hungry for a nutritious plant-based option or have a craving for a sweet treat. At morning, noon or night, we want guests to enjoy craveable breakfast favorites at a compelling value.”

But many customers responded negatively:

• "Don't ever try to push that crap in my direction. Stick to the basics that made your franchise a success,"

• "Are you kidding me? Who do you think your customer base is? I still order the double meat breakfast, and it's not even on the menu anymore."

• "You just lost your customer base. Congratulations on being woke and going broke..."

I don’t see much in response from Cracker Barrel, except the picture above on Twitter. A company spokesperson did release this statement to NBC News:

"We appreciate the love our fans have for our all-day breakfast menu. At Cracker Barrel, we’re always exploring opportunities to expand how our guests experience breakfast and provide choices to satisfy every taste bud—whether people want to stick with traditional favorites like bacon and sausage or are hungry for a new, nutritious plant-based option like Impossible Sausage."

Maybe the company gave fuller responses on other social sites, or leaders may have decided to stay out of the fray and let people decide what to order. They did enough testing—in 50 restaurants—to know the market. With the hand-shaking image, they accept responsibility and invite people to just get along. This could be an example of a minority group of outliers making noise, but ultimately, going back to their favorite restaurant as always.

Robinhood Layoff Message

Robinhood attracted retail investors during the pandemic but is facing losses as users leave the platform. In Business Communication and Character, I criticized Robinhood’s aggressive marketing tactics to lure inexperienced investors. Now, the company is doing its second round of layoffs: 9% of staff in April and another 23% in August. Lucky for us, the message to staff is posted on the Robinhood blog—a smart move because notes like are typically leaked, anyway.

Overall, CEO Vlad Tenev’s message meets criteria for bad-news communications. The main point is upfront, as I suggest for layoff messages because employees should know the news already. According to this message, they do: Tenev refers to All-Hands meetings before and after the written message. We get the sense that internal communication has been ongoing and that decisions have been transparent.

The message tells employees what’s next and that they will hear the news quickly: “Everyone will receive an email and a Slack message with your status—with resources and support if you are leaving. We’re sending everyone a message immediately after this meeting so you don’t have to wait for clarity.” The better approach would be individual, in-person (or Zoom) meetings, but this isn’t always practical.

Tenev described part of the reasons for the reductions but omitted a recent $30 million fine and increased regulatory pressure. Yet he demonstrated accountability and humility by admitting bad decisions. He wrote, “As CEO, I approved and took responsibility for our ambitious staffing trajectory—this is on me.” In addition, on a press call, Tenev admitted, “The reality is that we over-hired, in particular in some of our support functions.”

Tenev also demonstrated compassion. He sounds human, saying goodbye to people who will leave and encouraging people who will stay, without being too positive, which could be off-putting.

In sum, this isn’t the best layoff message example we have, but it’s certainly not the worst. I would share this with students as a positive example.

"Woke" Report for Medical Colleges

The Wall Street Journal editorial board criticized an Association of American Medical Colleges (AAMC) report as “woke” because it identifies diversity, equity, and inclusion (DEI) competencies for future doctors. A draft copy of the report shows recommendations for students, residents, and faculty.

Competencies include what you might expect for medical professionals, for example, advocating for diverse health care teams, mitigating biases, eliminating inequities, and practicing anti-racism. Although typical for encouraging DEI practice in any profession, the WSJ editorial board has harsh words for the report:

The woke domination of American higher education can seem tragically comic when it’s confined to the English department. But when it infiltrates the hard sciences, far more is at stake. Read and wince at how woke politics is about to infect medical education.

Business communication students can analyze the report purpose, structure, and style—and the opinion letter as an example of persuasive communication.