Saturday, December 24, 2011

Hiccups for Best Buy Are Humbug for Some Customers

No, Virginia, Santa Claus isn't Best Buy. One has a crisis, the other doesn't. Guess which is which.

If you guessed Best Buy, give yourself a Christmas cookie. You may have heard:

"The nation's largest specialty electronics retailer announced Wednesday that 'overwhelming demand for some products from Bestbuy.com has led to a problem redeeming online orders made in November and December.'


"The company apparently failed to anticipate a surge in online purchases following enticing online deals and was forced to cancel orders when it could not fill them. On the company's website, customers wrote on message boards about their experiences, titling their posts 'Best Buy Cancelled my Christmas!' and 'Bait, Switch, and THEFT by BestBuy.'" (http://bits.blogs.nytimes.com/2011/12/23/best-buy-black-friday/)

Best Buy apologized, blaming overwhelming demand of hot product offerings. It says less than one percent of orders were canceled, according to Susan Busch, senior director of Best Buy’s public relations.


“'What was wrong is that there was an unacceptable delay between order confirmations and cancellations, and for that we are very sorry,' said Busch, in an e-mailed statement. 'It’s important to note that this was a rare situation based on a high volume of orders over a short period of time.' She said that Best Buy was giving electronic gift cards to affected customers as a goodwill gesture."  (http://bits.blogs.nytimes.com/2011/12/23/best-buy-black-friday/)


Less than one percent, an apology, and electronic gift cards to affected customers. Is that good enough?

"Customers expressed their frustration in Best Buy’s online forums, with some parents asserting that the retailer had ruined Christmas for their children."  The word is out there to more than one percent of consumers.

"'It is a hiccup for the company,' Morningstar analyst R.J. Hottovy said. 'They were kind of behind the curve building out their online channel. They've done a good job investing in it, but if you make a lot of rapid changes, inevitably there are going to be growing pains.'"  (http://www.pressofatlanticcity.com/news/press/atlantic/best-buy-s-failure-to-fill-orders-lets-down-some/article_07218586-2dc5-11e1-a3d7-0019bb2963f4.html)

There was another hiccup. "It was Best Buy’s second online problem of the holidays: the company also flubbed a pre-Black Friday special for its Reward Zone Premier Silver loyalty program participants, angering some of its best customers, who were unable to check out and complete their Web purchases."  (http://www.nypost.com/p/news/business/best_buy_oops_it_our_bad_DMaTNoIEI74n506Os7cyBJ)

A hiccup isn't "a" hiccup. It's a series of events that can eventually become painful. Sometimes when I get hiccups, they go on and on until my chest hurts and I can't eat. Yes, Best Buy will emerge with its bottom line probably unaffected. But beware: Circuit City had hiccups that eventually put it out of business.

The part that bothers me most is, "The Minneapolis-based company has declined to specify how many orders are affected or which products are out of stock. The inability to fulfill some of those orders was unsurprising but also upsetting for the company, analysts said."  (http://www.pressofatlanticcity.com/news/press/atlantic/best-buy-s-failure-to-fill-orders-lets-down-some/article_07218586-2dc5-11e1-a3d7-0019bb2963f4.html)


Why withhold that information? A further consideration that makes me go hmmm: "To compete, Best Buy has expanded its online offerings, cut back on square footage in the U.S. by closing stores and sought to expand internationally."


Yet it wasn't ready for so many on-line sales. Holiday sales are 40% of Best Buy's annual business. It does little good to increase sales volumes and then not meet them. Plus it waited four weeks to tell customers they wouldn't receive their orders.  The retailer has to reassure its customers it is reliable. I would suggest, Best Buy, to hold your breath, take a drink of water, and eat a mouthful of peanut butter. All those things can help stop the hiccups.

Thursday, December 8, 2011

Political Advocacy Is One Thing; Cutting off Your Nose Is Another

Someone explain to me how such childish behavior helps this business and extinguishes a smoldering crisis.

"A business owner in western Georgia instituted a new company policy recently: 'We are not hiring until Obama is gone.'

"Bill Looman, who owns U.S. Cranes, LLC in Waco, Georgia, explained that while 'I’ve got people that I want to hire now,' he didn’t think he would be able to foot the expense 'unless some things change in D.C.'
Not content to simply implement the new policy internally, Looman decided to plaster it on all his company’s trucks. He did so, as 11Alive noted, 'for all to see as the trucks roll up and down roads, highways and interstates....'

"More importantly, Looman’s assertion that he would be able to hire more workers but for Obama’s economic policies defies reason. In the last few months alone, Obama has proposed giving major tax credits to businesses that hire new workers, including a $4,000 credit for hiring the long-term unemployed. Just this week, Obama signed a law to give additional tax credits to businesses that hire veterans.

"Ironically, despite the fact that he claims to want to hire new workers, Looman’s anti-Obama anti-hiring stance will prevent his business from enjoying any of these new incentives." (http://thinkprogress.org/politics/2011/11/27/376148/georgia-not-hiring-until-obama-gone/)

He sounds qualified for Congress, but not to run a successful business.

Wednesday, December 7, 2011

Massey Energy Saga Continues, And So Do the Lessons We Can Learn

Epilogue: There's almost always a price to pay for ignoring smoldering crises. Or in this instance, actually inviting a sudden crisis.

Case in point is Massey Energy and its Upper Big Branch Mine, where 29 men died in an explosion in 2010. I've written the story to death in this blog for some 18 months. One manager awaits sentencing, an investigation into other possible arrests continues, and the company was sold cheap early this year to Alpha Natural Resources. Massey's CEO was forced to retire a year ago and, if he's not trembling in his boots, he should be. The federal Mine Safety and Health Administration released its final report on its investigation of Massey yesterday. Alpha will have to pay a $210 million settlement.

"The report by the federal Mine Safety and Health Administration found 369 safety violations at the Upper Big Branch mine, though most weren’t considered contributing factors in the April 2010 explosion. Fines related to the violations account for $10.8 million of the settlement, which also includes compensation for victims’ families and funds to improve underground mining safety." (http://www.courier-journal.com/article/20111206/NEWS01/312060120/West-Virginia-coal-mine-violoations)

The investigation found “systematic, intentional and aggressive efforts” by Massey and its subsidiary, Performance Coal Co., to hide safety problems from regulators. "It did that by maintaining two sets of safety inspection record books, one with faked data giving the impression there were minimal concerns, and a more accurate, production-oriented record the company used to keep the coal flowing."

The report also accuses the company of intimidating workers who reported safety issues.


"Performance Coal President Chris Blanchard told one miner, 'If you don’t start running coal up there, I’m going to bring the whole crew outside and get rid of every one of you,' the report recounts. MSHA says interviews also revealed that a top company official suspended a section foreman who delayed production for one or two hours to make safety corrections."

“Massey knew or should have known about all of these hazards but failed to take corrective action to prevent a catastrophic accident,” the report says.

Now there's a great quote! Read it again. How many of our organizations know about a problem but fail to correct it? And how many don't know about problems because they don't have "sniffers" in place to identify them? That's what a smoldering crisis is.

Failing to obey laws and standard operating procedures should be pretty easy to spot. The issue is, what are you going to do about it? And for harder-to-spot smoldering crises, your organization needs a system in place to identify them and a management resolve to correct them.

Monday, December 5, 2011

Elderly Woman Claims She Was Strip Searched; Government Agency Calls Her a Liar

It's beginning to look a lot like Christmas. But the holidays don't have the same feel anymore. Where we once had, "Grandma got run over by a reindeer," we now have, "Grandma got strip searched at the airport."

At the risk of making light of a bad situation that may be symptomatic of how the Transportation Security Administration operates some of the time in some of the places, this poor woman claims to have been put through a lot at JFK Airport.

"Lenore Zimmerman said she was whisked away to a private room and made to take off her pants and other clothes after she asked to forgo the screening because she worried it would interfere with her defibrillator. She missed her flight and had to take one two-and-a-half hours later, she said."  (http://overheadbin.msnbc.msn.com/_news/2011/12/03/9191260-84-year-old-woman-i-was-strip-searched-at-jfk?chromedomain=usnews)

Okay, here's where the credibility of you and your organization come into play. "But the Transportation Security Administration said in a statement Saturday no strip search was conducted. 'While we regret that the passenger feels she had an unpleasant screening experience, TSA does not include strip searches as part of our security protocols and one was not conducted in this case,' the statement read."

So the little-old lady, 84 years old, 110 pounds, lied about a strip search? What, did she stop off in the bar for a belt and a smoke and so she missed her plane?

There's more tear-jerk fodder. "As she tried to lift a lightweight walker off her lap (as she sat in a wheelchair), she said the metal bars hit her leg, causing blood to flow from her gash, the newspaper reported. 'My sock was soaked with blood,' she said. 'I was bleeding like a pig.'"

Most of us would believe the little old lady before we believed TSA. That's why TSA shouldn't have denied the strip search occurred without thorough internal and outside investigations. TSA has done some dumb things here and there. I don't know Mrs. Zimmerman, but she's a grandma, and my grandmas wouldn't lie about a strip search.

Symbolism is important when crafting your messages. I remember an episode of All in the Family when Archie was in a car accident. He was all set to sue their pants off -- until his lawyer discovered his wreck was with a station wagon full of nuns.

Mrs. Zimmerman is no station wagon full of nuns. But TSA's statement should have said, "We are sorry for any embarrassment and inconvenience our passenger may have endured. Strip searches are not a standard procedure of TSA nor should they be. We will investigate the incident thoroughly and, if we feel it's necessary, will have outside investigators look into the matter. This should not have happened and should not happen again."

Now you didn't flat out call the woman a liar. You said you would take action. And if you corroborate the woman's story, there is far less crow to eat. According to TSA, "A review of closed-circuit television at the airport showed proper procedures were followed, Jonathan Allen, a TSA spokesman, said in a statement.

"'Private screening was requested by the passenger, it was granted and lasted approximately 11 minutes,' the statement read. 'TSA screening procedures are conducted in a manner designed to treat all passengers with dignity, respect and courtesy and that occurred in this instance.' The private screening was not recorded."

Who you gonna believe? We're not talking facts, we're talking perceptions.

Mrs. Zimmerman said she is considering filing a law suit. She might as well. TSA is a far cry from a station wagon full of nuns.

I Can't Think of an Appropriate Title

"Police say a 69-year-old woman from Palm Springs has been arrested after her husband reported that she tried to cut off his penis with a large pair of scissors.


"Palm Springs police said in a statement Sunday that Virginia Valdez was arrested on suspicion of mayhem, assault with a deadly weapon and spousal abuse.

"Online jail records say she was released Sunday and is scheduled to appear in court next month." (http://usnews.msnbc.msn.com/_news/2011/12/05/9222193-police-wife-tried-to-cut-off-husbands-penis)

In a related story, Herman Cain has dropped out of the Republican Presidential race. He blames the news media, but the real problem was too many women he once worked with tried to raise Cain.

Mail Boxes May Join TV Aerials in Musems

What does a business in financial crisis do? The people in the record business switched to eight-tracks, then cassette tapes, then CDs. The people in the computer business make laptops and Notebooks and I-don't-know-what-else-because-I-haven't-checked-Best-Buy's-Website-yet-today. We (if you're old enough) progressed from Beta to VHS to DVDs and Blue Ray.

You get the idea. Obsolete industries that can't transition to meet new consumer demands will whither. Nothing new here.

Now take the United States Postal Service. Email replaced letter writing more than a decade ago. I pay all my bills but one line. Once every few weeks, I receive a card or worthwhile something in the mail. The rest of my mail is trashed, much of it unopened.

"The Postal Service is on the brink of insolvency. It's facing another 20% drop in mail volume on top of the 20% volume drop it has already weathered. It has racked up $5.1 billion in debt this year and faces a deadline to make another $5.5 billion payment to its health care retirement fund on Dec. 18."  (http://money.cnn.com/2011/12/02/news/economy/postal_service_next_day/index.htm?hpt=hp_t2)


It needs to do more than close post offices and slow mail service, which will inconvenience those like my mother who still use snail mail. This is a crisis that has been coming for years. The latest downsizing simply delays the inevitable -- a bigger downsizing in a few years.

The Postal Service missed the boat when it didn't respond adequately if at all to threats like Internet Explorer, Facebook, and cell phones, plus competitors like UPS and FedEx. Now the post office needs to come up with the latest and greatest communications technology instead of worrying about the compliance of my mail box dimensions.

The postal service is still trying to sell vinyl record albums in an era of music downloads.

The Tale of a Racist Church, a Troubled Televangelist, and an Abusive Coach

Today I want to update some stories I've commented on in the past. I said how I would handle the situations. Whether these people in crisis did the right things (based on my humble opinion) -- well, let's see.

Kentucky Church Tries to Ban Interracial Couples From Worship (December 1 blog)

"A tiny all-white Appalachian church in rural Kentucky has voted to ban interracial couples from joining its flock, pitting members against each other in an argument over race. Members at the Gulnare Free Will Baptist Church voted Sunday on the resolution, which says the church 'does not condone interracial marriage.'"

The latest: The church Sunday overturned its interracial ban, "saying it welcomes all believers. Stacy Stepp, pastor of the Gulnare Free Will Baptist Church in Pike County, told The Associated Press that the vote by nine people last week was declared null and void after it was determined that new bylaws can't run contrary to local, state or national laws. He said the proposal was discriminatory, therefore it couldn't be adopted...."

"Stepp said the Sandy Valley Conference of Free Will Baptists declared the vote on Thompson's resolution null and void during a meeting on Saturday. He said he told church members on Sunday about the decision and proposed a resolution to promote 'peace, love and harmony.' He said the resolution to welcome all believers passed with a unanimous vote." (http://www.npr.org/templates/story/story.php?storyId=143122466)

Was it just my Sunday School class that taught me that Jesus welcomed all? There was no issue here but racial hatred. It never should have happened and it never should have come to the attention of the Associated Press. In the end, the church punted as it should have. But there never should have been a fourth down. The issue was divisive within the church and I'm sure in the small community. Think: How is this going to play out on Main Street and the news media and is it really all that important to do?

Atlanta Televangelist's Ego Wounds His Mission (September 24 and 26, 2010)

"'The more powerful a Christian leader becomes, the fewer restraints that other people can put on them,' said the Rev. H.B. London Jr., vice president of ministry outreach for Focus on the Family. 'Some of these men and women become so powerful that no one can tell them no.'"


He (or maybe she) was talking about megachurch leader Eddie Long. He was accused last year of using his lavish and glamorous lifestyle to lure four young men into sexual relationships. The men received undisclosed settlements, even though Long never admitted he did anything wrong. Long also has been accused in involvement in an investment scam.

The latest: "In the past few days, Bishop Long and his wife Vanessa have been in the media for a divorce announcement that was made, rescinded and then reinstated all within hours of each other on the same day. After the last announcement stating that Mrs. Long would indeed follow through with the divorce petition, Bishop Long is now taking time off to spend with his family." (http://www.theroot.com/buzz/bishop-eddie-long-takes-leave-new-birth)


How touching! This mess probably is beyond fixing. Long has been in the public spotlight and made lots of money. How long is he going to take to heal his family? For the sake of his mission and all those who looked to him for leadership, he needs to step down. He needs to say the mission is more important than he or the distractions these accusations have created.

Sometimes, the organization is more important than one or a few transgressors. See below.

Former Penn State Coach Talks to Media About Sexual Scandal

This one has been written to death, but deserves one more reference and one more comment. The situation goes from bad to worse to -- what comes next?

I was going to take Jerry Sandusky to task, but my cohort Larry Smith, president of the Institute for Crisis Management, beat me to it. To paraphrase Ecclesiastes 3, (I guess there's a religious theme today), there's a time to speak and a time to shut up. The time to shut up has passed for Sandusky.
The latest: "The outrage was greater when he finally defended himself. Then it occurred to some so-called leaders that blaming potentially sexually abused children for their mistreatment was not gonna work. Then Sandusky agreed to do a four-hour interview with the New York Times, reiterating that, in his mind, he didn't do anything wrong. And the uproar was even greater." (http://www.crisisconsultants.blogspot.com/)

I return to the poster child for misspeaks, Tony Hayward of BP during the gulf oil spill. Remember the one that got him sent out to pasture? "I want to get my life back."

I preach -- Larry and I preach -- that "no comment" is probably never an appropriate response. But neither should your comment dig you deeper into a hole. Larry's blog suggests this was an appropriate comment for Sandusky: "'This is an issue that is likely going to be resolved in the court of law, and responses to those kinds of questions will best be answered in the court of law and not in the court of public opinion.'"


Isn't that better than, "If I say so, I'm not attracted to boys, that's not the truth because I'm attracted to young people, boys and girls." (http://www.cnn.com/video/#/video/sports/2011/12/04/pkg-candiotti-sanduscky-nyt.cnn)

Thursday, December 1, 2011

Only Whites Allowed

Why do people create crises when they don't need to?

"A tiny all-white Appalachian church in rural Kentucky has voted to ban interracial couples from joining its flock, pitting members against each other in an argument over race. Members at the Gulnare Free Will Baptist Church voted Sunday on the resolution, which says the church 'does not condone interracial marriage.'" (http://www.kentucky.com/2011/11/30/1978678/small-ky-church-votes-against.html)

Stella Harville and Ticha Chikuni - an African and now her fiance - visited the church in June and Chikuni sang a song for the congregation. Dean Harville, the church's secretary, said he was counting the church offering after a service in early August when he was approached by Thompson, who told him Harville's daughter and her boyfriend were no longer allowed to sing at the church.

But thank goodness the church isn't racist.

"The church member who crafted the resolution, Melvin Thompson, said he is not racist and called the matter an 'internal affair.' 'I am not racist. I will tell you that. I am not prejudiced against any race of people, have never in my lifetime spoke evil' about a race, said Thompson, the church's former pastor who stepped down earlier this year. 'That's what this is being portrayed as, but it is not.'"

Some 35 or 40 people attended the meeting when the vote was taken. Most didn't vote. The tally was 9-6 in favor of banning interracial relationships.

Why invite public scrutiny?