Tag Archives: CEO

Starbucks: The Adults In the Business World

18 Wednesday Apr 2018

Posted by in All Rights Reserved, Branding, Business, Communication, Crisis Management, Customer Relations, Customer Service, Discrimination, Employee Retention, Ethics, Honor, Human Resources, labor, Lessons of Life, Life, Management Practices, Nevada, Public Image, Public Relations, racism, Respect, Social Media Relations

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When you have with 238,000 employees, most of whom interact with the public all day, someone is going to do something stupid. That is a fact of human nature. The question is, how the leadership of a company deals with an incident? In the case of Starbucks, you be the adult and not the five-year-old.

Racists Don’t Think They’re Racist

Racism is a major problem in this country. Racists usually don’t know they are a racist. In their minds, they do what they think is ‘natural’ from their cultural perspective. What is natural is what is correct. This means most racists are in the bigot closet and don’t even know it.

There is no racism test for an employer to give a job applicant. If there were, a lot of people would be unemployable. Closet racists are going to be hired at all major corporations. Sometimes, like at Cracker Barrel, the racism is condoned by the employer; however, most companies avoid hiring overtly racists employees. At least that’s what they claim.

Regardless, when an employee does something that is racist, many executives will attempt to minimize the incident, or attempt to deny the issue was about race. The public relations (PR) people are experts at diluting the obvious by reminding the media that motivations can’t be proven. From a PR perspective, a company, like United Airlines, can do no wrong, even when it does something wrong.

Starbucks Policy of Responsibility

The leadership at Starbucks is probably not perfect, but at least they make every attempt to be aware of what is correct from what is wrong. That is why Kevin Johnson, the CEO of Starbucks wasted no time in responding to one of his employees calling the police on two African Americans for trespassing in a Starbucks when they didn’t purchase something in the store.

In this incident is noteworthy that at least six officers were present to arrest two non-combative African American males. It was overkill that the police were called, and overkill that six police responded. If a white man had robbed the Starbucks it is likely that it wouldn’t have had this response.

The victims of this incident were held for over eight hours after being arrested. They were released after the police admitted they had no crime to with which to charge them.

What Starbucks Didn’t Do

Johnson didn’t offer excuses for his company. He didn’t say the video doesn’t really tell the whole story. The CEO didn’t even hint that it might not have been a racist act.

Instead, Johnson offered apology after apology.  Johnson met directly with the men involved. He called the act “reprehensible.” It is unclear what happened to the employee in question, but the employee is no longer at that store.

Most companies today look like children trying to cover up their misbehavior after a public relations incident such as this one. It is good to know that Starbucks is capable of using common sense and decency in responding to this situation.

Sadly, the rest of the employees at Starbucks will be impacted by this one person’s act. We all pay for the bad behavior of others.

4 Lesson’s Yahoo’s CEO Marissa Mayer Has Taught Us

10 Monday Sep 2012

Posted by in Business, Communication, Crisis Management, Customer Relations, Customer Service, Education, Employee Retention, Ethics, Human Resources, Information Technology, Internet, Lessons of Life, Management Practices, Opinion, Public Relations, Respect, The Tipping Point

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Marissa Mayer: Management by Destruction

On July 16, Yahoo announced that they hired 37-year-old Marissa Mayer, a former Google Vice President (VP), as the new Chief Executive Officer (CEO) to turnaround the company. A little over a month later Mayer hired a new Chief Marketing Officer (CMO), which should not be surprising. How she did it tells us a lot about her management capabilities and about Yahoo’s Board of Directors.

Often a change in direction for a company will require new leadership in key management positions. Anyone who doesn’t know their job is in jeopardy when a new CEO walks in the door is kidding themselves. Sometimes a new CEO will ask for the top management to resign. Sometimes a new CEO will just give the old management team a severance package. Sometimes a CEO will take six months to get to know the company and then make changes. All these options a part of nominal business operations.

However, Mayer reportedly fired Mollie Spillman, her old CMO 1) by phone, 2) while she was on vacation, and 3) ten minutes before Yahoo’s official announcement that the new CMO would be Kathy Savitt.

Wow. Apparently, Mayer like burning all her bridges before she blows them up.

It’s important to note that Mayer’s age and/or gender are not at issue. Man or woman, old or young, what Mayer did was ethically questionable and has far reaching implications for Yahoo. Her slam-bam-you’re-fired-ma’am stunt is worthy of analysis for what it says about Mayer, Yahoo, and management-by-intimidation.

Lesson 1:  Mayer’s Questionable Ethics and Leadership
It doesn’t take guts to fire somebody. Firing someone is easy. Firing someone is a power trip. If you walk up to person on the street and say, “You’re Fired!,” it will probably only get you a confused stare followed by a laugh, but if you say, “You’re Fired!” at an underling employee, you have shown you are dominant and all powerful. To fire someone is a rush to the sadist.

Separating an employee from an organization with dignity and respect takes sensitivity, experience, and humility. It requires that the manager talks with (not at) the employee, and it requires the manager check their need for power at the door. Firing someone over the phone while they’re on vacation demonstrates a lack of experience and a lack of humanity.

In her defense, Mayer may have been reacting to another executive who left Yahoo one week before. It is possible that Mayer thought that Spillman might also leave and decided she would exercise a preemptive strike by replacing her before she could find another job. Still, that’s a weak reason to behave like a tree house club President.

Lesson 2:  How to Destroy Morale
When the CEO trash-n-bashes an employee it sends a message to everyone else in the company: Time to look for another job. How can any employee at Yahoo avoid wondering if they will be fired the next time they’re on vacation? How can any manager at Yahoo not believe that Mayer’s questionable ethics is now the model they should be following?

No Reason to Yahoo Behind This Sign

No Reason to Yahoo Behind This Sign

Mayer did make a peace offering to her employees soon after she took over by offering free food to full-time employees and a free iPhone. But her offerings weren’t free. In return for free perks she put extreme pressure to perform. She pushed a new product up by months and gave the development team one week to prove it could be done. When the team came back a week later and said it couldn’t be done on the schedule she demanded she said she would find another team that could do it.

This shows the classic fatal error in management-by-intimidation (MBI): Failing to trust and listen to the people you have working for you. It may be great to tell the investor a tale of tough-love while scratching your balls and dining on the company’s dime, but it really means that the customer is going to get a rushed, half-baked product that shows how mediocre your organization can be when it comes to innovation. Don’t get me wrong, some people…okay most people, need to be pushed, but most people don’t like to work in a threatening environment.

This shows the classic fatal error in management-by-intimidation:  Failing to trust and listen to the people you have working for you.

The result of MBI is that all your employees start looking for other employment options. The people with great ideas and skills are grabbed up by the competition and Yahoo will be left with the people who nobody else wants. Now you have an organization consisting of the worst performers.

Lesson 3:  Yahoo’s Future is in Doubt
In the past five years it has averaged a new CEO each year. That says more about the Board of Directors than it does about the CEO’s. The problem is that there is no quick fix and it is likely that Mayer management style is being encouraged by dysfunctional leadership in the Board room. Yahoo needs positive, creative, loyal, and happy employees if the company is to dig its way out of the hole its in. Creating an environment of fearful, anxious, angry employees is guaranteed to keep them noncompetitive now and in the future.

Throwing money, free food, or free iPhones may appease employees temporarily, but people want and need to be valued and treated with respect. The moment an employee feels that their neck is on the line is the moment they are no longer have ownership in the company, and when employees don’t have ownership, they stop caring. Uncaring employees are saboteurs in an organization. Yahoo likely has almost 15,000 saboteurs with intimate knowledge of the company’s secrets, weaknesses, and plans. That doesn’t bode well for customer satisfaction, nor company stock price.

Lesson 4:  Inexperience Does Not a Good Manager Make 
Of the Fortune 500 club, Mayer is the youngest CEO. Publicly, she has been a celebrated rising star at Google since she joined as employee #20 in 1999, and was Google’s first female engineer. Privately, some accused her of being a glory-hound seeking attention and fame. Despite having no business degrees (her bachelor’s and master’s degrees from Stanford are in computer engineering specializing in artificial intelligence,) she rose through the company to be a Vice President.

It was appropriate for Yahoo to hire a young executive. There are many people under 40 who are wise beyond their age, or have solid experience in people and resource management; however, Mayer’s lack extensive executive management experience seems to be demonstrated in her immature behavior.

Bonus Lesson:  Micromanagement – Slapping Your Team in the Face
It was reported last week that Mayer is now reviewing the candidates for every open position at Yahoo. That’s correct, Mayer is overseeing every potential new hire for every opening in a company of 15,000 employees. Nothing says you’re a ‘stupid ass’ to your management team quite like taking away their ability to choose who will work for them. If anyone at Yahoo didn’t know that they are valueless, Mayer and the Board of Directors have certainly removed all doubt.

Every business school should be studying Yahoo. Studying successful management is important, but studying an organization that is in a meltdown can teach future would be leaders why you can’t build up your organization by tearing apart your employees.

Tony Hayward: The very model of a modern Major General

23 Wednesday Jun 2010

Posted by in 2020 Enterprise Technologies, Branding, Communication, Crisis Management, Customer Relations, Customer Service, Ethics, Lessons of Life, Management Practices, Passionate People, Public Relations, Rotary

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by Paul Kiser [Twitter: ] [Facebook] [LinkedIn] [Skype: kiserrotary or 775.624.5679]

Tony Hayward - Modern Major General

Enough with the BP CEO bashing! Regardless of any verbal gaffs, or ill-advised yacht racing, if Tony Hayward, the shining star of BP, is guilty of anything he is only guilty of being the perfect CEO. A corporate executives first and last duty is to his investors and when we measure up Mr. Hayward he is, in fact, the very model of a modern corporate executive. If it please the court of the business world I’ll present my case:

POINT ONE: When he took the reins of BP (that does not stand for Bloody Petrol) he immediately weeded out all those people who, and I quote, “….wanted to save the world.” Saving the world is not the goal of business, making money is, and no one can say that Mr. Hayward didn’t make money for the investors of BP. Score one for the British! They’ve become as obsessive about profit as the an American conservative!

The Public Image of Tony Hayward...but it doesn't count

POINT TWO: After the fire and rescue of the victims from the platform Mr. Hayward’s legal team leapt into action to detain the survivors until they signed a release saying that they were not injured…which, in legalese is to say they were signing a waiver of all liability, not a just that they were not physically injured, but that BP could not be sued for any mismanagement, negligence, etc. This reflects devotion that Mr. Hayward and his team have for the investor. Duty first and last!

POINT THREE: Within hours of the disaster BP’s crack crisis response team sprung into action securing all information and potential access to protect the corporation from negative portrayals by the world media. First  there was no oil leaking, then only 5,000 barrels, then, well, no comment. Carefully crafted statements were released to reassure the investors, (not the public,) that the event was a minor setback and the amount of oil would have a minimal impact on the excessive amount of water in the Gulf of Mexico. Textbook Public Relations work!

POINT FOUR: Unfortunately, BP could not hide massive oil slicks from the cameras of the media and that could scare the investors…but wait a minute…they could hide them by pouring millions of gallons of toxic dispersants on the oil at the point of origin! Yes, it would make collection the oil impossible, but that was save-the-world thinking, and this was not the time to shirk the duty to the investor with ethics. Again, Mr. Hayward shows us his stuff!

POINT FIVE: The pièce de résistance (my apologies to the British for resorting to French) was the yacht race that Tony Hayward took leave of the United States to attend. As outrage among the American public reached a fever pitch it was a stroke of genius by a perfect corporate executive to again restore order with the investors by demonstrating that this oil spill event is all much ado about nothing and normal aristocratic life is alive and well in this man’s corporation.

It is true that not since King George III have the average, non-conservative American been so incensed with a British national, but the public is passé (again my apologies for using French) in the corporate world, especially in the world of big oil companies. The public will trade ethics for petrol (I’m trying to compensate for using French by using British words) any day of the week. The public’s role is to buy their product, not tell them how to obtain it. Tony Hayward has been true-blue to the investors…I wouldn’t be surprised if his urine is blue! No one can dispute that as a model of the corporate executive, Tony is the best of the best.

I rest my case.

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