JetBlue Rules … but read the fine print

JetBlue customer Bill of Rights

The jetBlue horror story of travelers interminably stuck in planes as cancelled flights stacked up due to ice storms, has become legend. Many other airlines face the same difficulties due to weather emergencies but the focus was intensely on JetBlue this time for two reasons:

1) JetBlue has a stong compact with its Customers (capital “C”) and is supposed to be different. 2) the real problem was communication – leaving travelers stranded and confused with little or no warning.

Well, in a swift turnaround that will undoubtedly deeply impact the airline business and serve as a case study in rapid response PR, JetBlue has turned obstacle into opportunity with a signature Customer Bill of Rights and impressive action to back it up. The reality of Congressional action also undoutedly prompted the airline to take the initiative.

In a halting speech, obviously sincere and down-to-earth, jetBlue founder and CEO David Neeleman delivers a YouTube video “Our promise to you” that has so far received over 40,000 views and 119 comments. I would have trained Neelman to be smoother and more precise in his delivery but his intent was unmistakable: contrite, apologetic, touching. He betrayed a trust, and he knows it.

It is prominent on the home page of the jetBlue web site - links to the Customer Bill of Rights, the video, an apology, an invitation to communicate, how much cash you get in the event of cancellations, departure delays, overbookings. A key point – not once in all the communication is the weather or any outside force blamed. jetBlue takes full responsibility. 

How did Wall Street react to the masterful jetBlue PR moves.? The stock quote says it all: JBLU: $13.19  +0.29 +2.25%

What about the fine print? All refunds outlined by jetBlue are in the event of a “Controllable Irregularity.” I was unable to find a definition of this in all their communication. Is weather a controllable irregularity? Instructions from flight control? Can any legal types, or those familiar with the airline industry, shed light on this? Will the “controllable irregularity” clause come back to haunt jetBlue?

THE APOLOGY: “You deserved better – a lot better – from us last week and we let you down. Nothing is more important than regaining your trust and all of us here hope you will give us the opportunity to once again welcome you onboard and provide you the positive JetBlue Experience you have come to expect from us.” Sincerely, David Neeleman, Founder and CEO, jetBlue

Bold Moves Leads Huge Losses

Ford Bold Moves marketing campaign 

Since I wrote the post What The Hell is Going on at Ford?, July 24, 2006, I have kept a close eye on Ford. How could you not? They are major business news – one of the goliath Top Three US auto companies fighting for its life.  The question six months ago was: can its Bold Moves blog, social media and ad campaign re-brand the company and drive it toward profitability. The answer is obviously a resounding no, as Ford today reported staggering losses. See Ford Reports Biggest Loss Ever (CNNMoney.com). 

Weak sales of its key pickup trucks in the quarter and $9.9 billion in after-tax charges due to employee buyouts and plant closing plans resulted in $12.7 billion loss for 2006. That works out to a loss of just over $24,000 a minute throughout the course of the year, or about the price of a Ford Mustang – Chris Isidore, CNNMoney.com, 1/25/07

Ford threw a Hail Mary pass, as far as its public marketing campaign, and asked the great mass of consumers out there to help re-define the company, give it purpose. The consistent comment Ford got from the public was: Build better cars and cut the BS. Some resented the quasi-public company appeal as being intrusive, and a sign of weakness. Lee Iacocca, when he was saving Chrysler from the abyss, used to say “Lead, follow, or get out of the way.” Ford was groping, saying “Please love us and buy our cars, we are trying so hard.” 

All the behind-the-scenes chatter, and the many displays of the rich, deep, entrepreneurial history of the company, and the exhortations to “Change or Die” (Okay, does that mean that they now die?), and the almost desperate, retro public love fest with the Mustang, could not overcome the central issue with Ford – they need to build cars as well as Japan, Korea, Germany, virtually anywhere else. As edgy and seemingly forward-thinking as Bold Moves was – it was hopelessly mucked in the past.  

So, does Ford have a chance? Possibly. Wall Street did not hammer the stock, yet, on the news. They took a big but necessary hit on employee buyouts. They have a dynamic, turnaround driven CEO. But it’s clear that Bold Moves yielded meek returns and a new campaign is needed. How about Baby Steps? See final Bold Moves video episode.

Ford Bold Moves

Ford Bold Moves is a video documentary series that takes you inside Ford Motor Company as it attempts one of the largest corporate turnarounds in history. With candid interviews from Ford executives, employees, industry experts and even Ford detractors, Bold Moves approaches each segment from every angle and keeps asking the question: Will Ford succeed?

H-P Spy Drama The Watergate of Corporate America

Is there a bottom to this story? If so, we’re not close to reaching it. Spy vs Spy at H-P escalated to the public humiliation phase when chagrined and seemingly clueless corp execs are shamed by Senators who are usually subjected to this kind of scrutiny by their constituents. All that pent up Senatorial rage.

Characters are clearly drawn now. Dunn, or Duh!, the Chairwoman, claims she did not know what was going on, takes no responsibility, and thought you can get someone elses phone records merely by asking. Huh? Hurd, or Heard!, is the CEO, the guy who has pleased shareholders by taking control of an organization rife with destructive, internecine battles. He has increased shareholder value (the mantra), and, most important, he says that spying in news rooms and obtaining records under false pretenses is clearly wrong and it will never happen again and he will restore trust at H – P. He was coached well.

You have the scapegoat and you have the hero, and it is clear which is which. For desired outcomes, this is the optimum stance. You want the CEO, going forward, to fix a serious problem and stabilize the company that was doing well before all this.  You really don’t care about a disgraced Chair, who is no longer part of the company. Dunn’s greatest mistake to me from a public relations perspective is that she does not show remorse or offer insight into what occured. Simply being appalled would help.

In corporate drama there are heros and villains, winners and losers. Ms. Dunn may be correct in all her assertions, and Hurd, for all I know, knows much more than is evident and was more culpable than we can see.  In the end, when the stories are written in the newspapers,  filmed for television, and spread through blogs and Internet news sources , we are left with impressions, sound bites, and a storyline.   Mark Rose, New York

H-P Drama Heats Up, Stock Hit

As we predicted, new revelations at H-P are elevating the Spy vs. Spy boardroom drama to another level. An article in The New York Times yesterday (registration required) recounts an H-P executive branch that seems as out of control as the Nixon Whitehouse. So far today the stock is down 4% and CEO Hurd is going to hold a press conference. Today’s Wall Street Journal article on H-P (subscription required) insinuates that the CEO knew more than previously thought.

No need to editorialize about yesterday’s Times article. Stitch together excerpts and you get a top notch corporate thriller:  A H-P internal dossier subtitled “Covert Operations” discusses feasibility studies about placing investigators acting as clerical employees or cleaning crews in the San Francisco offices of CNET and The Wall Street Journal. Phases of the operation were code named Kona I and Kona II. I repeat the headline from my initial Sept. 8 post on this topic: How can you be so stupid?

Significantly, the Times story is co-authored by Damon Darlin, who has been writing about the scandal from the outset, and Kurt Eichenwald, the Times’ venerable investigative business reporter. Eichenwald’s most recent book is “Conspiracy of Fools,” about Enron. Does he smell a book here? Mark Rose in New York 

Hurd On The Street

This is the news from MarketWatch/Dow Jones: Hewlett-Packard Co. said Tuesday that embattled Chairwoman Patricia Dunn will retain her position until the company’s January 2007 board meeting, when she will be replaced by company Chief Executive Mark Hurd.

The timing is about right. We suspected that she would be axed around now, with Hurd consolidating power. Amazing how quickly this news shot to the front page of news weeklies and top-line television news shows. The story faded in the wake of 9/11 remembrances and now pops up again. As it will again and again.

Terrible PR imbroglio for the company, eh? Not really. The stock has risen fairly steadily – see MarketWatch charting for HPQ – since we first wrote about the H-P Boardroom Spy vs Spy drama on Friday, September 8.

The place for H-P boardroom news and other juicy insider news and commentary is the DealBreaker.com . Ever wonder what Ben Bernanke looked like when he wrote his hippie dictionary in 1968? Wonder no more. Check out DealBreaker. Mark Rose, New York

How Stupid Can You Be?

I would like to be more eloquent and insightful but … the mess at Hewlett-Packard just leaves me shaking my head. Masked identities, accessing phone records of reporters and Board members, private eyes, spying on their own Board members. What sort of hubris and cunning drives that sort of corporate behavior? So far, the only good guy here is Tom Perkins, established and respected Silicon Valley VC and long-time H-P Board member, who blew up and quit when he found out about the Spy vs. Spy routine at H-P. 

Five reporters at The Wall Street Journal gang up today for a page one story that digs into the role of “prominent Silicon Valley attorney” Larry Sonsini and the H-P non-executive Chairman Patricia Dunn.  What’s frightening here is  Sonsini’s apparent legal opinion that “pretexting,” the method used to obtain protected information, is common practice and within the law. I am sure that we will have a slew of regulatory, legislative and legal opinions about that.

This is the sort of juicy corporate drama that WSJ excels in and since they were victim of shenanigans, as were other news outlets, they will have very sharp knives for this one. See WSJ story – subscription required. See New York Times story Hewlett-Packard Spied On Writers In Leaksregistration required.

There will be firings, lawsuits, criminal investigations and perhaps trials, legislation introduced and debated, books, movies, TV PR blitzes and salivation at each new revelation. Reporters will be very aggressive pursuing this story. – Mark Rose, New York

 

Dell Closes The Loop

I had yet one more communication from a Dell “customer advocate” regarding any concerns I may have about a potentially exploding battery in my Dell notebook computer. Dell certainly deserves kudos for its aggressive “social media outreach” during this crisis. When I originally blogged about this – see Dell On The Blog Offensive – I was a very dissatisfied long-term customer. The other day “Dennis UID#01129265″ from Dell sent an email asking if I had any other questions before he archived our communication. He was the second Dell rep I had communicated with.

What’s significant here is Dell proactively reaching out through blogs and email to elicit comment, continue dialogue and assist with problems. Richard Levick posts an excellent analysis of of the Dell exploding battery crisis on his blog. I believe there were more nuances to this story than Richard acknowledges (legal issues involving public disclosure/the story leaked) but his crisis communication counsel is obviously based on intelligence and experience, and much appreciated. – Mark Rose, New York

Corporate Blogs Still Suck

Do they? See Direct 2 Dell blog.

Dell On The Blog Offensive

Photo from theinquirer.net - scoop in the Dell exploding notebook newsI was furious when Dell announced its huge recall of notebook batteries that had the potential to explode. I was angry because the web site url the company gave for recall info was non-functioning and the phone number supposedly set-up to handle complaints was disconnected. There was nothing, not a word, of the recall on the Dell web site. Could they be so clueless and not to have a communication mechanism for what was billed as the largest consumer tech recall ever?

Turns out Dell was not clueless, far from it. They had been scooped by a small tech news source – The Inquirer – news, reviews, fact and friction – and their well laid communication plans were shot to pieces.

Dell thought they had this news under wraps until Tuesday, Aug. 15, but Sunday, August 13 The Inquirer piece ran. That soon caught the attention of a couple of enterprising Wall Street Journal reporters who posted an item on the exploding notebooks Monday afternoon. Soon after The New York Times posted a story on its home page that was later accompanied with a picture of a man looking inside the cab of his pickup truck that was incinerated by an exploding Dell notebook computer battery (manufactured by Sony). Take a look at the picture. It’s gruesome.

I am not an innocent bystander in this story. I recently bought a Dell notebook and I wanted to know if I had to call in the SWAT team to mismantle my computer before I took it on a plane trip to Seattle.

I have bought Dell computers, servers and peripherals for 20 years and I am a fan of the company, despite its marginalization of the consumer through increasingly inferior, on-the-cheap customer service. The day the recall was announced Neville Hobson hit it with a post: Dell’s Reputation Tipping Point queried if exploding laptops would sink the company. I weighed in with my thoughts, and my fury, and “Richard” from Dell answered.

He said that Dell was spending $100 million (widely reported) to beef up customer service and their blog, Direct2Dell was helping people get through the recall. The blog was indeed helpful, especially since Digital Media Manager Lionel Menchaca was moderating and reaching out to others in Dell to get answers.

I had some more give and take with “Richard” from Dell on Neville’s blog and was impressed that the company was smart enough to have bloggers proactively reach out with the company story and to put a name and face behind the story (There were photos of actual people on Direct2Dell).

I am writing this on a Dell Inspiron notebook. It hasn’t blown up … yet. Mark Rose in New York. 

Microsoft Gets It

Microsoft CEO Steve BallmerMicrosoft CEO Steve Ballmer has been taking a lot of heat for his comparison of Microsoft and China and Bill Gates and Mao (see quote below). But the guy speaks off the cuff, he has a certain cool, nerdy cred and he can get away with it.  Contrary to what we might expect, Microsoft has been an innovator in allowing employees to freely blog, while rival Google is much more restrictive. The video podcast interviews of Ballmer are engaging – he comes off as a big, smart kid who will always get off on what cool technology can do.

These skills are essential for Microsoft right now as the company goes through a critical transition. Although the company has performed admirably in the past five years its stock has languished. Ballmer talks in three’s: Let me give you at least three things to think about, which I’m happy to defend - he says to the Wall Street Journal in a Q & A (subscription) You cannot counsel a client in better message delivery. 

The big question of course: can communication drive the company? So far, it hasn’t. Microsoft has a great story but the stock is a huge disappointment. The C-level response to that is that they are patient, they make big bets, and they have surprised the Street, investors, partners and customers before. A lot hinges, of course, on the success of the new OS, Vista, scheduled to launch 1Q, ’07. Regardless, Ballmer has done a lot to mute the Evil Empire image of the company that Gates was not able to shake. – Mark Rose in New York

WSJ: Many companies faded away after their founders left. What can you say that would assure people that, now that the co-founder is moving on, Microsoft is in good hands?

Ballmer: There have been many companies who lost their greatness post their founders… When did China get great? China didn’t get great under Mao Zedong. China got great under – in the recent years – probably got great under Deng Xiaoping.

Wal-Mart Blows It Big Time In Chicago

New York Next? The Chicago city council will vote today to raise minimum wages for workers at big box stores like Target and Wal-Mart (Wal-Mart has ambitious expansion plans in Chicago, and they want to move into New York City). Current wages at Chicago stores such as Wal-Mart and Target start at about $7.25 an hour (source – Financial Times). The bill, expected to pass, would mandate $9.25 per hour in 2007, rising to $10 in 2010 for work in “big box” stores, and an additional $1.50 benefits supplement.

Wal-Mart is sparking legislation all over the nation that is doing more to raise workers benefits than any union campaign. By aggressively fighting local governments that want their constituents to have fair wages and benefits Wal-Mart sets itself up as the invading behemoth that is intent on subservience and fealty to the retail machine. Wal-Mart mistakenly believes that these skirmishes are merely “site fights.” There is a larger pattern here they need to recognize, because it permanently alters their operations and bottom line. Put the money they waste on “site fights” into education, job training, infrastructure improvement in the communities where they do business and site fight issues will fade away.  Mark Rose in New York