employee communications

February 22, 2013 by Marc Hausman

Blistered LivingSocial Strikes Back, My Take-Aways

Should we have empathy for LivingSocial CEO Tim O’Shaughnessy for assuming the mantle of corporate executive punching bag?

It has been a tough week for Tim and his daily deal gang. After announcing a new round of $110M in financing, the terms of the transaction were blistered in a report issued by a relatively obscure financial data company called PrivCo.

In its analysis, PrivCo throws around loaded words like “desperate”, “emergency infusion”, “total collapse” and “final gasp.”

Can O’Shaughnessy recover from PrivCo’s damaging (and inaccurate) report? (Photo: BusinessInsider.com)

O’Shaughnessy responded yesterday in an internal memo published by the Washington Business Journal that clarifies the terms of the financing and eloquently points out that the folks at PrivCo are liars and dunces. Here are notable points from O’Shaughnessy’s memo:

–The transaction was an equity round, not a debt infusion.

–The quotes from a “senior LivingSocial communication executive” included in the PrivCo report are straight up fiction.

–Two of the three investors listed on the PrivCo site as participating in the round didn’t participate, and one isn’t even an investor in the company.

The damage is done though. That’s because a LivingSocial customer, partner, employee, vendor or creditor who reads (or is even aware of) the report is most likely left with one unsinkable thought: perhaps it’s time to sever the relationship.

I have a couple of take-aways from O’Shaughnessy’s experience:

1. If you put yourself out there as an innovator and thought leader, you need to accept and be prepared for shots (both legitimate and cheap) when you stumble. And yes…we all stumble.

2. Maintain intimate channels of communication with your most important audiences. In addition to his well crafted memo, I suspect O’Shaughnessy and other members of LivingSocial’s executive team have spent time on the phones and in meetings with customers, employees and investors.

3. Keep it real and simple in your messaging. O’Shaughnessy’s memo is personable and in plain English. It’s well played! So much of communication (sales, marketing, social, etc.) is loaded up with jargon and corporate babble. All that crap does is lessen the credibility of the source.

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UPDATE (FEBRUARY 26)

PrivCo has issued a new press release that defends its original report about and assessment of LivingSocial’s recent capital raise. Here’s a link.

November 19, 2012 by Marc Hausman

Lessons in Communication Failure

I’m all in when it comes to the value of team sports.

I grew up playing soccer at a highly competitive level. My experience on the pitch taught me values related to leadership, sportsmanship, peer interaction, communication, and overcoming adversity and disappointment.

For the past 20 years I have played pick-up basketball three times a week to maintain physical health and well-being, and as a more productive outlet for my competitive issues. I’m a productive CEO and, more important, better husband and father because of my accomplishments (and mistakes) on the court.

I’ve had two experiences this year related to team sports which have soiled my enthusiasm. The first involves a friendly acquaintance whose son plays basketball for a big time division I college program.

During his freshman year, his son played an average of 25 minutes a game with solid output in scoring, rebounding and assists. In his sophomore year he barely made it onto the court…ever.

I asked if his son had spoken with the coach to learn what he needed to get back into the playing rotation. His father explained to me the coach prefers not to speak directly with his players, rather leaving that chore up to assistants.

Huh?

My own son is a third grader and a decent soccer player. This year he joined a travel team that is affiliated with prominent club in the area. (I will not mention the name because he is still a member of the team.)

The club’s directors instruct the coaches to have little (if any) interaction with the parents. Their rationale is they want to dissuade the parents from attempting to coach from the sideline or interfere with decisions related to playing time.

While there is logic to this thinking, I still find it shocking. These are 9-year-olds who are at a maturity level that require engagement and participation from their parents.

Regardless of the level of competition, a coach is in a leadership position and has a responsibility to communicate with a set of key audiences (players, parents, sponsors, etc.). Failure to do creates an environment ripe for failure.

I always try to keep the absolute need for communication in mind when working with my colleagues at Strategic Communications Group (Strategic). Honest dialogue is the bedrock of a productive relationship.

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UPDATE: I just came across this letter from now former Minnesota Gopher’s football player AJ Barker. It reinforces the contention in my blog about the importance of clear and honest communication in any organization.

Blistered LivingSocial Strikes Back, My Take-Aways

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