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.
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.
Industry trends
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.
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.
NSW Premier Chris Minns condemned a recent anti-Semitic attack in Sydney’s eastern suburbs, where cars were set on fire and properties were vandalised with anti-Israel graffiti.
Emergency services received reports of a car fire on Magney Street in Woollahra early Wednesday morning. Fire & Rescue NSW extinguished the fire, but multiple cars and buildings suffered vandalism.
Graffiti with messages like “Kill Israel” was found on walls. A crime scene has been established, and an investigation is underway. Police are looking to speak with two suspects aged 15 to 20, who were in the area at the time of the incident.
It’s just out of control!
Days after firebombing of Synagogue in Melbourne, now more #antisemitism in #Australia, this time in my former hometown of Sydney, with cars set alight and multiple homes vandalised with anti-Israel graffiti, in the strongly Jewish suburb of Woollahra. pic.twitter.com/gCdCrlSlXU
Minns described the attack as “shocking” and stated, “This is not the Sydney we want.” He emphasized that such racist acts aimed at dividing the community would not succeed.
He plans to consult with police about the investigation, assuring the public that those responsible will face justice.
NSW Health Minister Ryan Park also denounced the incident, calling it offensive and concerning.
It follows a similar act of vandalism in November, where cars were spray-painted with phrases like “f**k Israel.” Various buildings, including the Chiswick restaurant, were also targeted in that incident.
A 26-year-old man, Luigi Mangione, is fighting extradition to New York to face murder charges for the shooting of UnitedHealth executive Brian Thompson.
Mangione was arrested in Pennsylvania after a five-day manhunt and denied bail for the second time.
During a court appearance, he made a statement directed at reporters, though its meaning was unclear.
Legal experts believe Mangione’s fight against extradition could prolong the process, but success is unlikely.
Authorities are investigating whether he acted alone or had assistance leading up to the shooting.
Mangione was recognized at a McDonald’s by an employee and was found with a firearm, clothing, and fake IDs matching the shooter’s description.
Weapon possession
He has been charged with gun and forgery offenses in Pennsylvania, in addition to murder and weapon possession charges in New York.
Investigators are still determining the motive behind Thompson’s targeted killing. It was revealed that Mangione had chronic back pain and previously worked as a data engineer.
His family expressed shock and devastation over his arrest and offered condolences to Thompson’s family.
Thompson, a father of two, had been the CEO of UnitedHealth’s insurance unit since 2021 and was in New York for a company event. The incident has heightened frustrations concerning healthcare access and insurance issues in the U.S.
Rupert Murdoch’s attempt to change the family trust to consolidate control under his son Lachlan has been rejected by a Nevada commissioner.
The ruling, made by Commissioner Edmund J. Gorman Jr., stated that Murdoch and Lachlan acted in “bad faith” while trying to amend the irrevocable trust, which divides control equally among Murdoch’s four oldest children.
The 96-page opinion characterised the plan as a “carefully crafted charade” intended to secure Lachlan’s executive roles unconditionally.
Murdoch’s lawyer expressed disappointment and plans to appeal the ruling.
FILE PHOTO: Media mogul Rupert Murdoch poses for a photograph with his sons Lachlan and James in London.
Media empire
This dispute is critical as it affects the future control of Murdoch’s media empire, which includes Fox News and other major outlets.
While the intention was not to diminish financial stakes, the ruling reflects deep family tensions, especially given differing political views among the siblings.
The commissioner noted Lachlan initiated the proposed changes, created a plan dubbed “Project Family Harmony,” and labeled James as a “troublesome beneficiary.”
Despite Lachlan and Rupert’s efforts, the attempt to marginalise James was deemed insufficiently justified by the court.
Murdoch’s family trust, established in 2006, retains his control until his death, and includes provisions allowing amendments.
However, the commissioner found that Murdoch and Lachlan’s actions were not supporting their siblings’ best interests.
The ruling is not final and may be contested further in court.