Considering the numerous, and very public, crises facing the oil and energy industry, it should come as no surprise that energy trade publication BIC Magazine focused its August issue on crisis.
The business world is full of Shakespearean kings: people whose virtues and flaws seem larger than life. We can now add Mark Hurd to the list.
Hurd took over Hewlett Packard from Carly Fiorina in 2005 when the company was an underperforming, disheartened mess. He quickly began to turn the company around, making it the leader in its field. He was headed for the CEO Hall of Fame (if anyone ever creates one.) (more…)
Just as H-P was trying to bring closure to an embarrassing and damaging chapter (see above), Sara Lee tried to close its own. It announced that CEO Brenda Barnes will not be coming back. However, the uncertainty surrounding Sara Lee will continue.
Barnes had been on medical leave since May 14 after suffering a stroke. The company mishandled the initial announcement, saying only that she was taking a leave of absence as the result of an undisclosed illness. A company news release said no more details would be provided “out of respect for Brenda’s privacy.”
The lack of detailed information caused jitters on Wall Street as rumors flew around the about the nature and seriousness of her illness. And, inevitably, the details quickly leaked out, leaving Sara Lee with egg on its face. (more…)
There is a lesson for everybody in the flap over supposedly racist remarks made by Shirley Sherrod, the head of the Department of Agriculture’s rural development office in Georgia. The lesson is this: while we are in an era of instant global communication and instant response to a crisis or controversy is more important than ever, knee-jerk reactions are as hazardous as ever. Both the NAACP and U.S. Secretary of Agriculture Tom Vilsack got burned by not looking before they spoke.
Fox News and other conservative advocates bombarded the airwaves and the Internet with a video clip of Ms. Sherrod, an African-American, telling an NAACP group last March that she had discriminated against a white farmer 24 years ago. The excerpt of the speech was damaging: “I was struggling with the fact that so many black people had lost their farmland, and here I was faced with having to help a white person save (his) land. So I didn’t give him the full force of what I could do. I did enough.” (more…)
We’ve all written a bitter letter to an ex at some point in our lives. Most of us are smart enough not to actually send it.
I would hate to be one of Cleveland Cavalier Owner Dan Gilbert’s ex’s.
In a brutal, bitter letter to fans, Gilbert called LeBron James all the nasty things one thinks about someone who broke your heart. “Narcissistic.” “Cowardly.” “Selfish.” He even mentions how this will affect the children (cue Maude Flanders). (more…)
It’s summer, it’s been hot in NYC (although today is nice), and we need a break from the politics and oil spills. So, time for some ice cream!
Carvel celebrated its 75th Anniversary by giving celebrities cards entitling them to free ice cream for the next 75 years. And, evidently, Lindsey Lohan’s mother took advantage of it. Even though the cards were given to her daughters, not her. (more…)
In every crisis lies some kind of opportunity. The best leaders find it and turn it into an advantage.
For President Obama, the McChrystal affair was such a moment. The president has been struggling with low ratings from the public, based to a great extent on a perception of being weak and indecisive. The loose tongue of General Stanley McChrystal and his associates that resulted in a damaging Rolling Stone article put Obama to the test. The commander in chief had no choice but to send McChrystal packing. (more…)
The saga that resulted in the ousting of General Stanley McChrystal as commander of American operations in Afghanistan has to boggle the mind of any PR professional. The errors made by McChrystal and his staff seem more appropriate to a book than the length limitations of a blog post.
In the first place, it’s hard to understand any rationale for a person in his position agreeing to a profile piece in Rolling Stone. It’s even harder to understand why his PR consultant would recommend and arrange it. The downside is huge; the upside is limited at best. (more…)
The hearing is winding down (4:30p), and after 2.5 more hours of testimony Tony Hayward has not helped BP’s image one bit.
In fact, if possible, he may have set it back.
His strategy seems clear - he was not going to give any specifics, pushing off any answer until “after the investigation was finished.” He could have gotten away with this if he had specific points and ideas to offer instead. But, no, he just gave basically nothing. (more…)
BP CEO Tony Hayward has survived the first section of questions from House Sub-Committee members (they have taken a one-hour recess for votes on the floor). And, he’s still standing, still has all his hair, still can form a sentence in English.
Other than that, there’s not much positive for him so far.
His best “performance,” as it were, might have been his last. Facing questions from John Dingell about decisions made before he was CEO, Hayward was able to say “I can’t answer that” convincingly and honestly. This contrasts to when he was questioned by Henry Waxman, who was asking his opinion on the decisions, where he would only say he would wait until the investigation was over.
The bottom line here is Hayward does not seem to have a credible story to tell. He has talked about safety, and changes BP has made since he took over, but the company’s track record makes this a tough sell. And, frankly, he’s doing nothing to sell it. Hayward should have, from the start, made a compelling case about specifics he has changed, how they have resulted in fewer problems, and at least give some idea of why they did not seem to work in this case.
I would be shocked if his second round of testimony goes much better for him.
