Archive for the 'Corporate' Category
February 23, 2007

Why Jet Blue’s Apology Works

I am a JetBlue customer.  I am also a fan.  But, I admit that when the airline initially fumbled the customer service and public relations challenges that followed the snow/ice storm that whacked the East coat on Valentines Day (is it cliche to call it a ‘Valentines Day Massacre?’), I thought the airline was doomed.  You see it all the time — a company screws-up, the press jumps all over them, customers start gravitating to a competitor — and a few months later a little notice appears in the media saying that the company filed for bankrupty.

This won’t kill JetBlue.  In fact, I think the airline will come back even stronger than before and their response to this communications disaster will drive significant changes in the entire airline industry. 

What worked?  First, the very same issue that led to JetBlue’s troubles during the storm — their small size, and relatively thin management structure — played a key role in their recovery.  If JetBlue had acted like most companies and issued a press statement or used a PR firm to offer an apology to customers, it would have fallen flat.  When David Neeleman, JetBlue’s Founder and CEO, went on a personal apology tour through the media and talked directly to customers online (through the JetBlue website and even on YouTube) it came across as genuine, sincere, and personal.  Watch the video - it is obvious that Mr. Neeleman hasn’t slept in days, is taking the responsibility and stress of the crisis very personally.  Nobody wants the man to suffer, but it is nice to know that a CEO isn’t shielding himself from tough times when customers are up in arms.

Second, they took swift and decisive action.  Lots of companies promise to fix problems when a crisis hits.  Usually the investigation into what went wrong takes a few months.  Then a few more months pass before any real changes are announced.  The public forgets what really caused the problem and the impact that the changes a company makes are hardly noticeable.  Not at JetBlue — their new Customer Bill of Rights was issued within days of the crisis, while emotions were still high over the delays and inconveniences.  In today’s fast-moving media environment, where news travels very quickly and the attention-span of the average person is very short, JetBlue was able to put into place a plan for real change while their audience was still paying attention.

The way JetBlue responded to this crisis — in the media, to their customers, online, by making the necessary changes to their structure and policies quickly — probably saved the airline.  We all know that weather will always cause problems for airline companies.   But while I think we all gave up on most of the major airlines long ago when it comes to supporting us as customers when these situations hit, JetBlue has earned itself at least one more chance to prove that its model, and customer-focused philosophy, can and does work.  I think it does work and I look forward to flying JetBlue again (in March, I am heading down to Austin, TX — a direct flight from Boston!) so I can show my support.

January 22, 2007

CEOs Blogging, Sometimes Awkwardly

I want to give a little shout out to Jason Goldberg, the CEO of Jobster.  (Full transparency, Jason is also a friend of mine - we used to work together).

Jason has become, with help from the mainstream media, the poster child for why CEOs should not blog.  First the two local papers - the Seattle Times and Seattle Post-Intelligencer (Jobster is HQ’d in Seattle) dinged Goldberg, presumably for not scooping them before releasing his comments to the blogosphere.  Today, the New York Times gets into the act, reporting on Jason’s blogging with the following lede:

Some executives, like Jonathan I. Schwartz of Sun Microsystems, pull it off with aplomb. Others, like Jason Goldberg of the online recruiting company Jobster, have had more difficulty.

The article isn’t that bad - mostly straight reporting - but the examples that the reporter, Damon Darling, chose seem to imply Jason is struggling.  He doesn’t mention the countless posts where Jason talks about good hiring practices and shares his personal theories on business leadership.  I don’t see a lot of CEOs offering that information up for free on a blog - or even offering it up at all in most cases.
Jason deserves a lot of credit for using his blog to help explain some major changes at Jobster over the past few months - including the downsizing of nearly half the staff.  Most CEOs would hide behind a press release, a spokesperson, or not say anything at all.  Most CEOs wouldn’t try to explain their actions, let alone submit to questioning from the general public.

At times Jason’s blogging has been awkward – at first denying there was any trouble, only to later change tune.  He explained that his obfuscation was a necessary measure designed to give the employees of Jobster first knowledge of the impending changes.  That seems plausible to me, and at least he came up with a reason — not your typical CEO move.

Don’t let them get you down, Jason.  The press hasn’t figured out yet how to report on CEOs who blog, and more importantly, tell the truth about what is happening in their companies.  Other CEOs should take a page from your book.

Update: Jason sent me this ‘Confessions of a CEO Blogger” video he put together.  Good to see he’s not taking all the criticism too seriously.

 
   
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