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The rise of the apologetic CEO

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We now live in the era of the apologetic CEO, but do those words have meaning and consequences?

There was a time when CEOs bore the stiff upper lip. Never explain, never complain. It worked for hundreds of years, essentially telling customers and employees “We are trying our best, but if you don’t like it, leave”. Hold the line.

But the Covid pandemic, and the rise of the Teflon-politician plus social media, have now changed business and the way a CEO and their company deals with the outside world.

Sorry now seems to be the easiest word.

Apology strategy

It works like this:

  • Major stufff up that the company expects will go unnoticed
  • Denial of the stuff up or silence
  • Public and then political backlash
  • CEO accidentally says something publicly that makes it worse
  • Board intervenes
  • CEOs top media team hire external crisis comms team to fix things
  • External camera crew hired and sets up in the lobby of corporate HQ or on the factory floor
  • CEO makes a grovelling apology trying to connect with customers.

But what does it do to fix the original crisis? And has it become a cynical attempt at being seen to take ownership (the buck stops with me), but then nothing happens?

The Qantas case

Qantas prides itself as the national flag carrier, even though it’s a publicly listed company now. But it finds itself constantly caught in the grips of customers, unions, the media and the government.

Following the pandemic, Qantas found itself in a world of pain. On the plus side, travel was back in a big way and the profits would soon follow. In this instance, it was better to be the CFO than the CEO.

Qantas stood down thousands of workers, many of whom left the relatively low-paying fickle aviation industry for higher-paying, stable jobs on the other side of “air side”.

Staff problems

I recently met a tram driver who used to be a Qantas International pilot. Instead of trekking to Melbourne airport to start work, he now begins his shift by meeting the tram at the end of his street. Basically, the staff moved on.

As the post-covid era rolled along, bags were lost, flights were canceled and angry customers vented to the media, then-CEO Alan Joyce ran through the “PR crisis handbook” outlined above.

Deny, blame, admit, move on.

Here was Alan Joyce’s apology in August 2022:

“On behalf of the national carrier, I want to apologise and assure you that we’re working hard to get back to our best.”

Fast forward to this month, and Alan Joyce is out at Qantas. His replacement is his CFO, Vanessa Hudson.

CFOs focus on operations and streamlining processes but sometimes struggle with human connection. A CEO has to put everybody first, but a CFO has to put the company first.

Vanessa Hudson is a lower-profile CEO than Joyce, so far avoiding the spotlight, or being seen mingling with celebrity chefs.

A year after Joyce’s apology, Ms Hudson recorded a video statement to customers:

“I was a part of the leadership at the time, but clearly I wasn’t the chief executive then. I am the chief executive now and what I would say is that I would like to be judged by what we do now and how we behave going forward.”

Moving On

While the CEO has changed, the messaging has not. This may soon happen, as Vanessa Hudson grows into the role and identifies people who need to be moved on and people who need to be moved in.

But once she builds the right team, listen to them. Often CEOs ignore internal advice and only listen to external consultants.

For passengers though, what difference does an apology make? What happened in that year after Alan Joyce apologied that made Qantas better for today?

Historically when Qantas has been in trouble, they unleash another rendition of I Still Call Australia Home during some sort of sports final.

It’s like the partner who keeps breaking trust and continually begs for forgiveness. It’s time to pack your bags and burn that red flag.

The Qantas dilemma

Qantas has some big issues that will take decades to fix. Airlines are slow-moving beasts.

Aside from the huge debt burden, unions that are bolstered by a High Court win, plus favourable governments running the country and the states, and an angry customer base ready to rock up with pitchforks, there are even more fundamental issues facing the new CEO.

Australians are famously egalitarian. We demand high service at a low cost, and we’re not afraid of complaining until things are changed. That’s how we’ve built this great nation and keep rolling Prime Ministers.

Qantas flight QF1, an Airbus A380-800 aircraft, takes off from Sydney International Airport en route to Dubai, above Botany Bay, in Australia August 22, 2017. REUTERS/Jason Reed/Files

Jumbo sized problem

For decades, Qantas has been stuck with the wrong-sized planes. Not since the 747 has there been an aircraft that meets the comfort needs of passengers and the budgets of airlines at the same time.

Airlines have been demanding more fuel-efficient planes and aircraft manufacturers are trying to squeeze more range out of smaller carbon fibre frames.

Anyone who has flown a 787 Dreamliner will soon forget the LED windows, and remember how much more space there was on a 747 or A380. Anyone who has dropped an Airpod in economy knows what I’m talking about.

Australians are big people who require big planes and bigger seats with wider pitch.

Australia is a long way from anywhere. As is New Zealand, yet Air New Zealand has come up with far more innovative ways to keep passengers comfortable on long-haul flights than Qantas.

FILE PHOTO: FILE PHOTO: A Ryanair Boeing 737-800 airplane takes off from the airport in Palma de Mallorca, Spain, July 29, 2018. REUTERS/Paul Hanna

The airline industry has been marching to the same tune for decades, since the emergence of RyanAir and Southwest. Cheaper flights, poorer service, and a relationship with customers that is cost-based, not value-based. The rise of airport security only tipped the scales even further towards mean airlines.

For those times, Joyce was the right CEO for Qantas, as he had successfully built up Jetstar in Australia. And frankly, Qantas couldn’t carry on running as a government-funded airline.

The Crying CEO

Qantas is an example but far from the only company that struggles with its messaging. There are the CEOs that go even further.

Remember the CEO who took to LinkedIn to post a weeping selfie after making the decision to make staff redundant?

Braden Wallake runs the Ohio-based business-to-business marketing agency Hypersocia. The post received more than 6,700 comments and nearly 33,000 reactions.

Some LinkedIn users mocked Wallake’s post, calling him “out of touch” and “cringe-worthy” or suggested that he should focus on helping his former employees rather than on how the situation had affected him.

New CEOs Building Trust

The appointment of a new CEO marks a significant transition that can shape the future of an organisation.

Upholding a strong ethical compass reassures stakeholders that the CEO will make decisions aligned with the organisation’s core beliefs. This builds trust over time.

The CEO’s track record and expertise play a pivotal role. In the case of Vanessa Hudson, this will be her most difficult task, given she was holding the financial levers at the airline.

Apologising is good spin, but action is a must.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Ford’s all-electric plan for Europe proves too challenging to achieve by 2030

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Ford has revised its plan to go fully electric in Europe by 2030, admitting it was too ambitious.

Originally aiming to transition entirely to electric vehicles, the automaker now plans to continue producing some internal combustion engine vehicles alongside electric ones.

Mike Costello from Cox Automotive joins for the latest. #featured

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Democrats scramble to rally behind Harris as Trump allies launch next phase of campaign

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Biden Withdraws: President Joe Biden Ends Reelection Bid, Endorses Kamala Harris.

 

After weeks of battling to salvage his political career – claiming he wouldn’t be stepping down after a disastrous debate performance – the president’s sudden change of course was not announced through an Oval Office address or a campaign speech. Instead, it was revealed in a letter posted to social media while he was recovering from Covid-19 at his beach house in Delaware.

“And while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term,” Biden wrote in a letter posted to X.

Harris expressed her gratitude for Biden’s endorsement, stating she is “honoured” and committed to “earning and winning” the nomination. Should she secure the nomination, Harris would make history as the first Black woman and first Asian American to lead the ticket of a major political party. To facilitate her candidacy, the Biden-Harris campaign has updated its filings with the Federal Election Commission, renaming its principal committee to reflect Harris’s new status as a presidential candidate.

Despite Biden’s support, the path forward remains uncertain. It is unclear whether Harris will automatically become the nominee or what alternative processes the Democratic Party might consider. Additionally, sources suggest that Senator Joe Manchin, an independent from West Virginia, is contemplating re-registering as a Democrat to enter the presidential race.

In response to Biden’s withdrawal, former President Donald Trump criticised Biden as “the worst president by far in the history of our country” during a call with CNN. Trump has also launched a fundraising appeal to rally his supporters.

 

 

 

 

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Trump allies launch campaign against Kamala Harris as he boasts an easier victory

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Donald Trump has said he thinks Kamala Harris will be easier to beat than Joe Biden.

With Biden out, Trump’s campaign will now adjust its strategy, focusing on attacking Harris and any other possible Democratic candidates. They aim to convince voters that Harris would be just as ineffective as Biden.

Biden faced growing doubts about his ability to win re-election, especially after a weak debate performance against Trump. Some Democrats also lost confidence in his leadership, leading him to step down.

Donald Trump said he thinks Kamala Harris will be easier to defeat than Biden. Trump and his team quickly began attacking both Biden and Harris online, claiming that Biden was not fit to be president and that Harris would be just as bad.

Allies of former President Donald Trump quickly launched their campaign against Vice President Kamala Harris on Sunday afternoon, preparing a series of anti-Harris ads and planning their strategies for attacking her.

“I call her laughing Kamala,” Trump told the crowd, during his nearly two-hour appearance. “You can tell a lot by a laugh. She’s crazy. She’s nuts.”

 

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