In the News–Leadership & Strategy
Crisis of the Week: Fujifilm Addresses Accounting Problems
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, June 19, 2017
Fujifilm Holdings announced that losses from accounting irregularities in New Zealand were much larger than first thought and extended to the company’s Australian office-equipment unit. The announcement left some to wonder how much control the company has over its overseas units.
The company said it conducted a review and found the losses would widen further but did say it found “a problem” with controls at its Fuji Xerox subsidiary. Fujifilm said inappropriate accounting occurred in part because of commission and bonus “incentives” for managers and employees that “placed an emphasis on sales.” It said six board members at Fuji Xerox would resign to take responsibility for the losses that now total around $340 million. It also docked the pay of all Fuji Xerox board members and two other senior executives.
Using Fujifilm’s statements and those of its executives, the experts break down the company’s crisis management performance in this instance.
“Fujifilm’s public response to its ‘inappropriate accounting’ crisis was enough to be effective as witnessed by the fact the story lasted no more than a few days in the global news cycle,” said Davia Temin. “While the company’s public responses were terse, minimal and occasionally odd, they were unprecedented in their openness and disclosure.” […read more]
Keep Calm and Manage a Crisis
Erica Christoffer, REALTOR Mag, February 2017
A crisis in real estate can occur because of poor market conditions, hampered cyber security, a natural disaster, and even threats to your reputation. But Davia Temin, CEO of Temin and Co., a crisis management firm, wants brokerage owners to know that when your business faces trouble, it’s an opportunity to exercise leadership.
Temin, who has served as a spokesperson for major organizations during crises over the last 20 years, shared some universal tips about how to respond to a business-oriented emergency during the 2017 REALTOR® Broker Summit in San Diego. “I try not to put lipstick on a pig,” she said. “Figure out what the situation is and what you can do within the bounds of the organization to address it in the right way.” […read more]
Trump’s Oval Office Tweets Force CEOs to Choose Fight or Flight
Shannon Pettypiece, Rick Clough, and Lindsey Rupp, Bloomberg, February 8, 2017
President Donald Trump is injecting himself into the daily business of U.S. companies to an unprecedented extent, spurring investors and executives to weigh their exposure to his wrath when making decisions.
The latest was Nordstrom Inc., which drew Trump’s public anger on Twitter Wednesday for discontinuing his daughter Ivanka’s line, saying sales had slumped.
Two hours after attacking the department store, Trump hosted Intel Corp.’s Chief Executive Officer Brian Krzanich in the Oval Office to announce that the semiconductor-maker would spend $7 billion on a factory in Chandler, Arizona, creating 3,000 jobs. Once again, Trump took to Twitter.
Not even three weeks into Trump’s presidency, the moves fit a familiar pattern in his dealings with companies: do what Trump wants, or face a presidential rebuke. This direct, company-by-company intervention is forcing CEOs and corporate boards into a choice they’ve never before faced with a sitting president — are we with him, or against him? — in a way that distorts normal decision-making and conflicts with shareholder interests.
Some choose to fight.
“It really depends on who your customers are, what demographic they fit into and whether you want to play towards that or play statesman-like corporate CEO,” said Davia Temin, CEO of Temin and Co., a communications consulting firm. […read more]
Trump CEO Brain Trust Huddles as Corporate America Splits
Justin Sink and Matt Townsend, Bloomberg | Quint, February 3, 2017
President Donald Trump has needled Mary Barra at General Motors Co. He’s troubled Doug McMillon at Wal-Mart Stores Inc. and gone after Boeing Co., once headed by Jim McNerney. Those business leaders, and about a dozen others, sat down on Friday with Trump to talk trade, regulation and more.
In his first two weeks as president, Trump has rewritten the Washington playbook for corporate America, as he has for U.S. allies. In the process, he has opened rifts between companies over how to approach matters ranging from taxes to immigration and revealed the first cracks in companies’ tentative embrace of him, drawing criticism from some of the chief executives who were in the room Friday morning.
The meeting is the latest in a series of White House events designed to allow Trump to solicit feedback from business leaders — and burnish his image as a can-do businessman ready to strike deals. The events usually start with pictures and video clips to feed the news cycle and then a closed meeting with the president and top aides.
After the photo ops is when it gets interesting, of course, and it could be up to Blackstone’s Schwarzman to keep things in order, said Davia Temin, founder of the crisis-management company Temin & Co. in New York. If he’s allowed to be in charge, he should run it like a board meeting, with vigorous but respectful debate.
“One model is a high degree of professionalism and politeness, even while being tough and entrenched in your questioning,” she said. But “some boards are different — some boards you have knock-down, drag-outs.” […read more]
Crisis of the Week: Qualcomm Chips Away at South Korea Probe
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, January 9, 2017
Chip maker Qualcomm Inc. takes crisis center stage this week after a regulator in South Korea said it would fine the company $853 million for alleged antitrust violations related to its patent-licensing business.
Qualcomm denounced the decision by the Korea Fair Trade Commission, calling it “inconsistent with the facts and the law” and vowing to appeal. “For decades, Qualcomm has worked hand in hand with Korean companies to foster the growth of the wireless Internet,” the company said in a statement. “Qualcomm’s technology and its business model have helped those companies grow into global leaders in the wireless industry. This decision ignores that win-win relationship.”
The experts evaluate how well the company is handling this crisis.
Davia Temin, chief executive, Temin and Co.: “Qualcomm’s press release response to the ruling of the Korea Fair Trade Commission threaded the needle very well. It is cogent, nuanced, well-stated and argued, and persuasive without being overly aggressive or over-wrought. The communication had a number of goals: to respond to the markets and investment community, to put Korea on public notice that it will appeal and begin to frame the elements of that appeal while trying to not antagonize the Korean government or the court, since Qualcomm is relying on the court’s favorable hearing of the appeal.
“Qualcomm is facing a severe threat to its business model worldwide with this ruling, and in answering it appears to be setting its defensive arguments for many countries to come. Given the importance of a nuanced response, Qualcomm could not offer up a marketing or PR-like overstatement; it needed a clear but lawyerly response, delivered by its general counsel–and that is exactly what it provided. The right person is quoted, and Don Rosenberg’s pull-out quote is effective.
“Will it win the day? Yet to tell, but the response is thoughtful, strategic and understatedly persuasive. [The company has not] answered questions from the media…but it will have to answer questions from analysts on its next earnings call, and the media will be listening in, so they will need to be consistent and additive as this story unfolds.
To read the full article, CLICK HERE.
Tackling Disruption and Convergence in 2017
Tony Chapelle, Agenda, January 9, 2017
The Center for Board Matters at accounting and management consulting firm EY has identified six main priorities that corporate boards are likely to focus upon in 2017. However, one of those topics, dealing with disruption and convergence, is perhaps the most vexing of problems boards will deal with this year, so Agenda has called on a group of experts to address this challenge. We asked one director and a handful of corporate governance experts to distill and offer advice on how boards can help their managers develop and implement competitive and effective strategies while the world bombards them with disruption and convergence.
Davia Temin, CEO of strategy and communications consulting firm Temin and Company, says boards need to pay attention to the evolution of convergence.
For example, almost all corporations have had departments or silos that traditionally focused on cyber security and risk management. They’ve also had traditional marketing departments. But now, the ability of a law firm or an online retailer to send and receive information securely has itself become a marketing issue. If clients don’t have assurances that a company has certifications or other indications of top-notch Internet protection, they may not use a company’s services or products.
More broadly, Temin says, with mainstream news and social media converging, it’s going to be important for boards to ensure that regular news is clearly differentiated from simple opinion.
In order for directors to get out in front of disruption scenarios, she says, “the board really needs to assure that the company strategy factors in all possible disruptions that they know of right now when it comes to products, to the business environment, to the business model and to consumer audiences.” […read more]
Four Years of Living Dangerously: CEOs Brace for the Trump Era
Matt Townsend, Bloomberg Technology, December 19, 2016
As president-elect, Donald Trump is pro-business and a champion of corporate tax cuts. And anti-free trade and a big-company bully.
That’s a disorienting mix for chief executive officers trying to suss out whether Trump in the White House will be a blessing or bad luck. Planning ahead’s no easy task when the next commander in chief is a guy with a hair-trigger Twitter finger who touts policies that could both help and hurt U.S. companies.
“It will be a fascinating experience to see how things that have worked inside global organizations translate to the political arena,” said Davia Temin, founder of the crisis-management company Temin & Co.
For all that, the victim of a Twitter pounce must be careful, she said. “Never start a press war with someone who can outgun you.” […read more]
Donald Trump just tweeted about you — what do you do?
Cory Schouten, CBS MoneyWatch, December 9, 2016
A high-profile dustup this week between Boeing CEO Dennis Muilenburg and President-elect Donald Trump has left corporate board members and CEOs on edge.
Shortly after news emerged that Muilenburg had questioned Trump’s stance on trade in a speech in Chicago, the president-elect fired back with tweets threatening to cancel the company’s contract to build two new Air Force One jets. Boeing’s stock fell but eventually recovered after the CEO and Mr. Trump made nice on a phone call. (Boeing also pledged $1 million toward the inauguration festivities.)
The exchange was a cautionary tale for business leaders who are accustomed to a certain way of interacting with political leaders, said Davia B. Temin, president and CEO of a boutique management consultancy focusing on crisis and reputation management.
Temin, who advises several industrial, biotech and financial firms, including Fortune 500 companies, talked with CBS MoneyWatch about the implications of the Trump-Muilenburg exchange. […read more]
Forging Thought Leadership into a Titanium-Strong Marketing Tool
Dean Rotbart, Monday Morning Radio, March 23, 2015
This week on Monday Morning Radio, Davia Temin tells listeners how to forge thought leadership and reputation management into titanium-strong marketing tools – both for yourself, and for your company or products.
Davia is interviewed by Dean Rotbart, co-host of Business Unconventional, the one-hour radio newsmagazine that aired weekly on News/Talk 710 KNUS AM in Denver. […read more]
To listen to the full article, click below.
To download the podcast from iTunes, Click Here.
Crisis of the Week: Delta Grounded After Computer Crash
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, August 22, 2016
Delta Air Lines finds itself in the crisis spotlight following a power failure that led to a crash of its computer network that prompted the cancellation of more than 1,000 flights on the first day alone, with around 1,000 more flights canceled on the second and third days of the event.
The company’s chief executive, Ed Bastian, apologized in a video statement and took full responsibility for the system meltdown, saying in a second video statement the snafu was a one-time event started by a power outage and a small fire. The company provided updates, offered travelers $200 vouchers, waived flight-change fees and put hundreds of fliers up in hotels.
Using the statements made by the airline and the comments of Mr. Bastian, the experts evaluate how well Delta handled this crisis.
“Delta did not improve its reputation for trustworthiness with its early statements about its recent computer system crash causing thousands of cancelled flights,” says Davia Temin. “Delta appeared to be more worried about minimizing its damage first, only [later] acknowledging the full severity of the situation–during which time social media was ablaze with customer rage and protest.” […read more]
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