Whether they like it or not, the web sites, advertisements, and posters are prompting many companies to be All-In.
Consider three current examples:
One PR model often followed in similar embarrassing, costly circumstances is to deny, downplay, then barely acknowledge and reluctantly fire a few people (a la Goldman Sachs). In response to its exorbitant losses,
JPMorgan Chase went public before news leaked nationwide, started the CEO apology tour quickly, and accepted resignations or fired people involved. Their behavior is interesting because their Values Statement reads: Our values are reflected in the way that we conduct our business and in the first-class results that we consistently achieve for our clients.
2. Best Buy's CEO, Brian Dunn, resigned in April for undisclosed personal reasons (All-In blog post). The reasons were disclosed yesterday: he had an extremely close relationship with a female coworker, and it affected the workplace. In light of that disclosure, Best Buy's Chairman resigned yesterday because he knew about the relationship. On its web site, one of Best Buy's values is to "Show respect, humility and integrity." At least in the midst of disrespect and lack of integrity, the company is showing some of both this week.
3. Yahoo's CEO, Scott Thompson, was lambasted the ten days, including here, for lying on his resume for years. When the lie became public ten days ago, the former CEO downplayed the lie and only acknowledged the distraction it had become for the employees. However, others took the lie more seriously. The executive who led the hiring process of Thompson, who began work at Yahoo in January, was let go, along with others. Yahoo's values include: We are committed to winning with integrity.The CEO was not committed to the same thing, and he is out.
I blogged about it Friday because of the impact on corporate culture, and several people protested because the lie was so minor and didn't matter. So minor, they insisted, it shouldn't even be called a lie but an oversight.
Late yesterday, the CEO apologized for the distraction the lie had caused. He did not apologize for the lie itself or explain how it had been perpetuated throughout his hiring or previous employers. In the memo obtained by CNN, Thompson says, "I want you to know how deeply I regret how this issue has affected the company and all of you." (Source: cnn.com)
Whether you call it a lie or an inadvertent oversight, or any other name, the issue, its cause, and its management have become major to the employees.
From cnn.com: A senior Yahoo executive, who spoke to CNN on the condition that his name not be used, said: "Thompson has quickly lost the confidence of many employees, who think he has to go."
Managers and executives often underestimate the impact their actions have on the people around them. When you need your people to unite as a team to move a company forward, they need you to be truthful. They will notice if you're not, and the corporate culture will be impacted.
(Article at cnn.com)
May 13, 2012:
Yahoo confirmed late today that it's CEO, Scott Thompson, left the company as a result of the padded resume.
Article on cnn.com