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Russia has cancelled itself. But the world should beware of poking the Russian bear
There’s a long time saying in foreign relations – never poke the Russian bear. Putin is a bully, but he’s not crazy. And his memory runs deeper than the consumer based societies in the West.
Once upon a time, nationhood had meaning. To belong to a country or a state. Globalisation helped change that, and the 747 allowed us to become citizens of the world.
And then there’s Russia. A country still obsessed with its past, and a nation which never fully adapted to the fundamental foundations of democracy – freedom.
But we in the liberal democracies and allies of the United States work to a different drum to the Russians. Our politics is fast, our leaders can live or die in an instant
The trouble with the West
Our political terms are short, and our memories are even shorter. You have to dig deep to remember that controversy involving Donald Trump and Ukraine’s President Zelensky didn’t you?
Consumerism was invented to keep people going to work. Work helped to give people something to do, in the belief we can own things and create better lives. That system plays to our deepest needs as humans.
The differences between the societies in the UK, Canada, NZ, Australia and the US shrink year on year. Local media struggles against global tech companies. Everything is imported, because it’s cheaper and better designed.
When did you last seek out a locally built car?
We have a relationship with our governments: keep our house prices climbing, our kids in school, our roads free and enough money to go to the pub, and we’ll let you keep your job.
But in Russia, their society has gone the opposite direction. Russia has renewed its aviation aircraft manufacturing sector. It’s space capabilities are state-of-the-art. It has one of the largest militaries in the world.
In Russia, to be, is to be Russian.
The heart of the problem in the Ukrainian crisis is the strength of the interstate system.
America has a habit of finishing a game of chess as the victor and walking away to start a new game. Never looking back to check what happened to its former opponent.
Once the Cold War was over, America moved on to other projects.
But Russian’s never forget.
How did Russia get here? My personal window into Putin’s media | TICKER VIEWS
Putin and the rat
Vladimir Putin used to catch mice as a child in his home. One day he cornered a mouse. It’s a sinister story often called Putin and the Rat.
His mother, who had lost a child to diphtheria and nearly starved to death during World War 2, swept streets, cleaned lab equipment, and did other odd jobs for low pay.
Putin and his parents had no hot water, and their toilet sat next to a dilapidated stairwell. It’s here where Putin learned perhaps his most important life lesson.
He said: “There were hordes of rats in the front entryway. My friends and I used to chase them around with sticks.”
“It had nowhere to run. Suddenly it lashed around and threw itself at me. I was surprised and frightened. Now the rat was chasing me.”
Putin escaped, but the memory sits there with him. It not doubt helped him to climb the ranks to become Russia’s leader.
Russia has been cancelled
Now, the world has cancelled Russia. Every day more sanctions, flight bans and financial decisions are being made. Even Switzerland is considering sanctions. Even Germany has increased its military spending in response. Even sporting codes, usually reluctant to get involved in politics, are picking sides.
Right now, Putin’s Russia is backed into a corner like never before. Sure, it’s a corner of his own making, but a rat doesn’t know that. Nor does it care. A corner is a corner. And when you’re cornered you’re prepared to do whatever it takes to get out.
Putin is said to be held up in a secret location in the Ural Mountains, a handy place to be when you’re using the “N” word around your military commanders.
Alone and cut off from the real world, after spending much of the pandemic isolated from human beings, Putin is now that rat he once cornered.
The world should be prepared.
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.
Apologising is good spin, but action is a must.
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