Saturday, October 31, 2015

Rogers PR Nightmare

Imagine the following conversation between a father and son:
Father: It’s time to let your brother play with the truck.
Son: No.
Father: I said you could have it for five more minutes, and it’s been five minutes, so give your brother the truck.
Son: No! It’s mine!
(The father takes the truck away and hands him a toy car, and his son starts crying)
Father: Look, the car will be just as fun, and it’s the right thing to do for your brother.

It’s not hard to understand the father’s mindset. He’s just trying to be fair to his sons, and doesn’t feel he’s done anything wrong. The reaction? That’s probably just because the kid doesn’t yet understand the importance of sharing, which was why the father explained that giving the truck away was the right thing for his son to do.

From an outside perspective, though, it’s clear that this situation could have been handled better. This brings me to the news item I wanted to analyze as something like a business case.

At the time of this writing, Rogers Communications, owner of the Toronto Blue Jays is mired in what many agree is a public relations nightmare. What led to this crisis? Here’s the general idea: last year, Rogers attempted to surreptitiously find a replacement for outgoing President of the Toronto Blue Jays, Paul Beeston. News about their search attempts leaked to the public. Beeston probably knew his days with the Jays were numbered, so it wasn’t long before he announced that he would step down at the end of the 2015 Major League Baseball (MLB) season. The search for Beeston’s replacement continued until August 31st, 2015, when Rogers announced that Mark Shapiro would become the new president of the Jays starting on November 1st, 2015.

Incidentally, the General Manager of the Toronto Blue Jays, Alex Anthopolous had a contract slated to end on October 31st, 2015. Ordinarily, such an arrangement would be perfect for an organization; a subordinate’s contract ending just before a new executive steps in, enables the new executive to freely select a candidate who can operate best under his supervision. There’s just one small twist in this story. Alex Anthopolous is incredibly revered by his peers, his staff, and the Blue Jays’ fan base. He was largely considered to be the one responsible for acquiring all the best players his team could afford in the previous offseason and trade deadline that pushed his team to have a stellar second half of the 2015 season. That led the team to its first postseason appearance in the last 22 years. It was such a remarkable feat, that his peers honoured him with an “Executive of the Year” award. As expected, Alex Anthopolous was offered a contract extension from Mark Shapiro and Rogers. He opted to walk away. Anthopolous believed that the organization wouldn’t be the right “fit” for him anymore.

A huge portion of the Blue Jays fan base was outraged. Alex Anthopolous was the one who engineered the Jays’ first playoff appearance in 22 years. How many more painstaking years of waiting will there be until their next meaningful attempt at the World Series with the leadership change? They finally had something good going, and now there’s a dramatic change to the organization…that truly stings.

Since he declined the offer, Alex Anthopolous has vaguely tried to assure the public that Rogers and Shapiro treated him very well. There was no ill will among them. He assured that the decision he made was solely his; it should be completely on him. Mark Shapiro hasn’t said a word. He didn’t want to make any statements until his contract came into effect on November 1st. Yet among the three parties involved, it was Rogers’ responses that intrigue me the most from a psychological, and business perspective.

Rogers issued a press release, and this is what they had to say:
Alex has done a terrific job as GM of the Blue Jays over the past six seasons, and we would have loved it if he stayed with the club. Like the fans, we too are disappointed he has chosen not to accept our five-year contract offer, but we wish him the very best. Alex leaves behind an outstanding front office team and coaching staff that played a key role in shaping the team’s great run this season. They will continue to operate in leadership roles next year as we look to build upon the team’s success. We remain committed to putting a winning team on the field and look forward to many more exciting seasons for the Blue Jays.

This press release would have been fine if it were not for the phrase: “he has chosen not to accept our five-year contract offer.” It’s bizarre for such a press release, and it sticks out like a sore thumb. Alex Anthopolous is widely regarded as a private person when it comes to details pertaining to contract negotiations, so this isn’t doing him any favours; that’s for sure. So why did Rogers have to state that the offer was for five years? The only reason why they felt the public needed to know is to assure them that Rogers Communications wanted the public to know that it feels it didn’t do anything wrong. Conversely, they feel the public ought to know that they did everything they can to appease them. Subtly implying that they didn’t do anything wrong does not make people more sympathetic towards them; just like taking away a child’s toy because it’s the “right” thing to do, does not heal their wounds. So the fire rages on…

On the day of this writing, another article was published featuring statements from Edward Rogers, deputy chairman at Rogers Communications. It’s another attempt to provide clarity in murky chaos; yet, if the general reaction I’m perceiving from the fan base is any indication, people aren’t buying in. Every statement made sounds like a cover-up. Fighting this PR fire, doesn’t seem to be working for Rogers.

Did it have to be this way? Would could Rogers do now and in the future to prevent something like this from happening again?

As a regular reader of Harvard Business Review (HBR) I’m convinced that the answer to the first question is: no. This entire incident was poorly managed, but there are steps that can be taken by members of the organization to improve future responses to crises. The first is to realize that simply stating the facts from the perspective of the business garners no sympathy from anyone outside of it. Instead, the focus should shift away from trying to control the damage inflicted on the organization’s image, and onto understanding why people are reacting the way they are to stop the fire at its source. There’s no sense in focusing on spraying the fire when there’s a leaking oil valve that’s constantly feeding it. It’s a waste of time, it’s a waste of resources, and no meaningful progress can be made towards a resolution.  

Rogers needs to understand that the fan base is distraught because they’re concerned that the elation they felt during the Blue Jays’ playoff run in 2015 will not continue beyond next year with a new leadership figure at the helm. Discussing Alex Anthopolous’s five-year contract with one-year opt-out does not abate this concern whatsoever! They do mention in their initial press release that they “remain committed to putting a winning team on the field and look forward to many more exciting seasons for the Blue Jays.” Unfortunately, such a vague statement leaves little positive to the imagination. Then, mentioning the five-year contractual term offer takes away from what could have been a press release with an overall positive future outlook. It takes a press release that could have been used to ease the concerns of fans, and turns it into one that serves to protect the organization’s image. You can’t put out a fire if you’re afraid of being burned.

As I wrap this up, I’d like to share some articles I enjoyed reading on HBR and that somewhat pertain to this ongoing farce. The articles listed below are all written by Peter Bregman, as I find his articles to contain some of the more pragmatic advice that can be applied in life.

This title’s pretty self-explanatory, and I believe that Rogers could have spent a little more time listening (and by extension, understanding) the complaints from the fan base before issuing statements about contractual details that fans could care less about.

Alex Anthopolous did this extremely well in this situation. Rogers did the opposite, and effects have been disastrous for them in the last week. Their unwillingness to concede some responsibility for losing Anthopolous (they were involved in the negotiations after all), and constantly focusing how Anthopolous was the one who rejected the offer isn’t helping them. A simple position such as: “we apologize to the fans for being unable to come to terms with Alex Anthopolous, but we will work hard with the highly-qualified Mark Shapiro to ensure the Jays will continue to be successful,” would be a much more positive message than, “Anthopolous rejected the wonderful offer we gave him, so it’s not our fault.”  

This article shows how we can better respond to negativity. There’s clearly a lot of negativity surrounding the fan base right now, but there’s also some positivity: there’s hope that the Jays can and will play in the postseason next year. Understanding what people are positive about and what people are negative about, and then knowing how to validate those feelings is important in easing tensions between two people or groups of people.

This article explains the difference between intentions and consequences. Rogers probably didn’t intend for any of this to happen, and that’s what they naturally focus on. “We didn’t mean for Anthopolous to leave.” The fans don’t care about Rogers’ intentions; they’re focused on the consequences. The reality is that they made mistakes, and it now hurts fans to think that they may not see the same level of success for years to come. Fans don’t need denial from Rogers at this point; fans need Rogers to accept their responsibility for the consequences and the dissatisfaction the fans have as a result.

In this article, Peter Bregman asserts that we speak for three main reasons: (1) to help ourselves, (2) to help others, and (3) to connect with each other. He believes (as do I) that if what we’re about to say detracts from one of those three reasons, then we shouldn’t speak at all, (to at least change the message before speaking). As I really don’t believe that Rogers’ statements genuinely helped others or helped connect one another, perhaps it stands to reason that they could learn to speak more strategically.

This article discusses an earlier point I made in which I explained that effectively addressing a problem involves understanding its causes and addressing the root causes rather than addressing superficialities. Responding to emotional outbursts involves pretty much the same idea and starts with validating how people are feeling rather than offering solutions to problems people didn’t have in the first place. As I previously stated, providing details of the contractual offer made to Alex Anthopolous did not help Rogers because that wasn’t really the problem, so it only made people feel worse.  

Wednesday, October 7, 2015

Looking Back at the Blue Jays, Looking Forward with the Leafs

Today, the Toronto Maple Leafs play their season opener. Much of recent discussions about the Leafs in recent months surround their off-season front-office overhaul bringing in new coach, Mike Babcock, and new GM, Lou Lamoriello. Patience was requested from the front office with the expectation that it will take a while to rebuild the Leafs to their former glory. Some suggest, it may very well take five years, and from this notion springs speculation around media quarters about the players around whom the Leafs may build around. Nazem Kadri, perhaps? Or maybe Morgan Rielly?

On this date, I’m actually more of a baseball fan. Tomorrow, the Toronto Blue Jays will play their first playoff game since 1993. But with all the talk about the Leafs maybe needing five years to rebuild their glory, I starting thinking about the Jays…where were they five years ago?

Five years ago (2010) was Alex Anthopoulos’ first year as GM of the Toronto Blue Jays taking over the position from J.P. Ricciardi. A quick comparison of rosters reveals that only three Blue Jays from 2010 remain with the team today: Brett Cecil, Jose Bautista, and Edwin Encarnacion. More on them later. Another name stands out to me: Ricky Romero.

2010 was Ricky Romero’s second year in the major leagues with the Jays. His performance was on an upswing, and one year later, he represented the Toronto Blue Jays at the All-Star Game. At some point, Romero’s performance started to decline. He was eventually assigned to Double-A New Hampshire, and released by the Jays in April 2015.

Brett Cecil’s first call-up was in 2009, but not as a reliever; he was a starting pitcher. For the next four years, Cecil would be repeatedly promoted and demoted in accordance with the Jays’ needs for starting pitching. 2013 would be his first year as a relief pitcher, and marked the first time he was selected to the All-Star Game.

Edwin Encarnacion, then a third baseman, was acquired in a trade with the Cincinnati Reds (along with two pitchers) for third baseman Scott Rolen. The story goes that the Jays didn’t really want Encarnacion, but the Reds didn’t either, so the Jays had to take him to acquire the pitchers in the deal. If this seems inconceivable, it’s because Encarnacion wasn’t the power-hitting all-star he’s known to be today. Prior to 2012, Edwin Encarnacion had an OPS that hovered between 0.7 and 0.8, and generally hit fewer than 20 homeruns per season, with the highest season homerun total of: 26 in 2008 with the Reds. His defense wasn’t all that spectacular either. He had a career-high 25 errors with Cincinnati in 2006, and a high of 18 as a third baseman in Toronto. Since 2012, “Edwing’s” OPS has been consistently above 0.9, and averages more than 37 homeruns per season with a career high of 42 in 2012. He also only has 3 errors in 59 games at first base this season. Not to mention, he was selected as an all-star in 2013 and 2014.

Jose Bautista has been an all-star every year since 2010. His performance picked up since he became the regular right-fielder for the Toronto Blue Jays. Enough said.

Could any of this have been predicted five years ago? Ricky Romero was an all-star, and there are still debates about what went wrong between him and the Blue Jays. Brett Cecil was a starting pitcher who became an all-star once he was moved to the bullpen. Edwin Encarnacion was once someone no team wanted, but blossomed into a perennial all-star that the Jays couldn’t imagine being without. Jose Bautista’s been an all-star for six straight seasons, but prior to 2010, that would have been inconceivable.

Hockey’s different from baseball, but it’s still a sport, and part of the fun of sports is a certain degree of unpredictability. Current stars may not be future stars, and future stars may not be current stars. The players who were on the roster at the end of the 2010 – 2011 season about five years ago and remain on the roster today include: Tyler Bozak, Nazem Kadri, Joffrey Lupul, Dion Phaneuf, and James Reimer. Clearly a team’s “core group of players” is more dynamic than static. If history is any indication, three to five members of the current roster may remain five years from now, and there’s a good chance the five listed above may not be part of it. Who will they be? Only time will tell. But what fun it is to imagine the possibilities!


All stats were obtained from baseball-reference.com.