FunnyBusiness: Everything About Business Except The Bottom Line

Sun Country Airlines - Victim of The Economy and Petters Group Fraud Investigation

Employees at Sun Country got a love letter from their CEO,Stan Gadek, saying 50% of their paychecks will have to be deferred until 2009. They can't get a loan to cover expenses but its not due to the credit crunch - it's due to a federal investigation of their parent company The Petters Group

Sun Country Airlines is my favorite airlines-I try to fly it whenever I can ( Southwest does not come to Minneapolis or they would  be my favorite airlines. Currently I'm in Seattle and I almost always fly Sun Country when I come here but this time because of scheduling, I hopped on a NWA flight. Can Sun Country survive both the credit crunch and The Petters Group Fraud investigation?

According to an FBI affidavit filed to obtain the nine search warrants, Petters and a handful of associates have conducted a decadelong fraud that offered investment opportunities in funds backed by liquidated merchandise that could be sold for a profit. But the government alleges that the purchase and sales orders generated by the funds were fictitious.

By some estimates, the fraud is in the billions of dollars, according to the search warrant affidavit.
                                                                                                                               Star Tribune

The airlines's two largest unions which represent the pilots and flight attendants haven't endorsed the plan.

Does Your Body Language Talk Leadership?

Leadership is a beautiful thing. In a week when our country -- the world-- is looking for leadership it is important to remember that:

Words are 7% effective

Tone of voice is 38% effective

Non-verbal clues are 55% effective
                                       Institute for Management Excellence

For more on what your body language is saying about your leadership style check my post on BlogHer

How Will International Corporations Respond to The Chinese Contaminated Milk Scandal

One would have hoped that the International Corporate Community  would have learned something from last year's rash of problems with Chinese products -- think contaminated pet food, think 9 million toys recalled because of lead contamination, think toothpaste and clothing (The Financial Times has a complete list of the recalls from the past two years.)

Yet, while a staggering 53,000 babies in China are ill because of the contamination, the CEO of Fonterra - the New Zealand firm that is part owner of the Chinese dairy responsible for the melamine says they really couldn't have foreseen the problem.

Fonterra missed testing for melamine ... so did everybody else," says Ferrier, who then corrected himself to say Sanlu missed testing.

He says Fonterra has worked aggressively with Sanlu and has confidence in its quality control, but it is difficult to predict "criminal contamination".

"We invested in a local company under the expectation that we could continue to bring in quality rules and procedures to make sure product was healthy for Chinese consumers".

"But ... jeez, someone coming in and poisoning milk? You can't get it all".

In future, Ferrier expects companies around the world to be checking for a wide range of contaminants.
                                                                tvnz.co.nz

Huh? How can any company doing business in China not be concerned that there could be safety issues with the products. And after the melamine contamination in pet food  why didn't every company start testing their food products for this potential killer?

Fonterra repeated that it first knew of the contaminationin early August, and took what it regarded as the best actionby working with local Chinese authorities on a product recall.

“If something did exist prior to that we’re shocked that it did and we obviously feel that if people were aware of it itshould have gone to the board,” chief executive Andrew Ferriertold a media briefing.

The contamination did not become public until mid-Septemberafter the New Zealand government informed the Chinese government, although there are allegations that San Lu managerswere investigating complaints of sick infants eight months before they told the board and Fonterra. 

At some point, you'd hope that the International corporate community would establish some safety guidelines to ensure that products produced in China are safe for international consumption. At least one industrialist working in China says, corporations did not learn what they should have from last year's product scandals.

Some companies learned the need for extra diligence in China the hard way, during a spate of scandals last year from unsafe foods and toothpaste to melamine-laced ingredients in pet food.

But many continued to disregard the risks, said Jeremy Haft, a businessman who runs factories in China in a variety of industries, including medical products, clothing and building supplies.

"I don't think much was learned from the recalls of a year ago," said Haft, who has written of his experiences in a book, "All the Tea in China."

Tokyo-headquartered Lotte Group, a major snack maker, got caught up in the storm Friday after its popular chocolate-filled Koala cookies were recalled in Hong Kong and Macau because of melamine contamination.

Packages of the cookies, still on sale in Shanghai, list whole milk powder as an ingredient.

How bout international corporations holding a China Safety Summit and come out with standards and policies that all corporations agree to and work together to make sure their Chinese counterparts adher to.

Has any corporation called for these standards or for any kind of oversight to protect their consumers? Why not?

It's time to bring  real quality control to China. It's time for international corporations to  invest in  creating environments that produce safe products.It's called checks and balances. It's called ethics.

More on the Chinese Milk Contamination Scandal at BlogHer.

Workers In India Go Postal: Union Labour Minister Tells Corporations:" You've Been Warned."

On Monday Lalit Kishore Choudhary, who  headed up  the Indian operations of Graziano Transmissioni,an Italian manufacturer of  car parts, was bludgeoned to death by  laid off workers. The next day  Oscar Fernandes, who is India's Union Labor Minister said the murder was a result of corporate hiring and firing practices.

“People are employed on contract basis. There is disparity in wages of permanent workers and contract workers. There is simmering discontent among workers and they should not be driven to such an extent as happened in Greater Noida...Managements have to see this as a warning and they should also respond adequately,” Fernandes said.

He said that companies tend to hire people on contracts even when they are in a position to make permanent appointments, leading to fewer jobs in the organised sector. “Workers react violently when they lose their jobs,” the Minister said, adding, “At the same time, managements have their problems also. But what I am saying is that the whole issue should be viewed with compassion. I appeal to companies to treat workers’ problems with compassion.”

                                                                                                                       Indian Express.com

Fernandes later apologized for this remark after business leaders expressed their outrage. For the business leaders,the murder is the latest in a round of violence that  is causing grave concern that foreign corporations may decide that India is too violent to invest in.

The murder has stoked fears that outbreaks of mob rule risk jeopardising the sub-continent’s economic rise. Thousands of violent protesters recently forced Tata, the Indian conglomerate that owns Land Rover and Jaguar, to halt work on a plant being built to produce the world’s cheapest car, the £1,250 Nano. The move could result in £200 million in investment costs being written off.

Tata stopped work three weeks ago, saying that it could not guarantee its workers’ safety at the factory in the state of West Bengal. The billionaire industrialist Mukesh Ambani said that the Nano crisis showed how protesters were creating “a fear psychosis to slow down certain projects of national importance”. Other companies, including Vedanta, the London-listed mining company, have encountered similar problems in India.
                                                                                                                               Times Online

Lehman Bros New York Office Still On Schedule for $2.5 Billion Bonus

Under the category of You Can't Make This Stuff Up, Lehman Bros evidently tucked away a cool $2.5 billion before they declared bankruptcy. That money is evidently protected and can be used to give bonuses to 10,000 employees

To paraphrase the restaurant scene in When Harry Met Sally " I'll have what they're having.

   

Many of Lehman's UK staff are particularly angry about the US payouts because it has emerged that in the days running up to the bankruptcy, some $8bn in cash was transferred out of the account of the bank's European business into accounts at the New York head office.

There is no suggestion any of this cash was used to supplement the bonus fund, but partly as a result of the transfers, PricewaterhouseCoopers (PWC), the administrator to the European business, initially found it impossible to guarantee salaries would be paid. The September wages of thousands of European staff were only secured in the middle of last week, when PWC negotiated a £100m loan to fund the payments. PWC wrote to Lehman Brothers' head office in New York last week, requesting the repayment of the $8bn, but a spokesman said yesterday that the administrator had received no formal response.

                                                                                                          Financial Times

Not So Funny Monday: Going To Work While The Financial Markets Are On Edge

Working out on the elliptical today I tuned into Squawkbox on CNBC-- that would not normally be my channel of choice. But today with financial institutions Lehman Bros collapsing, Merrill Lynch swallowed and AIG. teetering.

Of course, I can't listen to CNBC all day. I have work to do. I'm still listening.( Just heard the folks say Lehman Bros collapse due to hubris - hubris is a word you can now count on hearing every day)  But I don't have to have the TV on all day long.

Time was you'd have to crank up the radio at the top of the hour to find out what was happening during a financial crisis,and then go back to work until the next news updates. Today the info is flying in real time.

I'm pretty sure I'll spend the day checking tweets and CNBC every 15 minutes or so. Unless things really go south, it will be a major distraction day and not a complete showstopper.

But what about you? Will you be tracking Wall Street today. And if yes, where are you going for your info and how often do you think you'll do a check in? 

New Way To Get Job Interview--Share Recruitment Video on Blog

At the same time Deloitte is announcing significant layoffs, the company is forging ahead with an aggressive social media MBA recruiting campaign--  Born2Consult. It has a very funny job interview video which has a 4 1/2 star rating on YouTube.

This is not just a YouTube campaign, Deloitte is  also  reaching out to bloggers to share the video.

There is a reward.

From Etc. and Etc,a 26 year old student in Chicago, who found an interesting email from Feed™

... i find this one mail from a certain feedcompany. They are part of a recruiting initiative currently underway at Deloitte - Born2Consult.

So the deal is that i share this video (it is quite funny - take a look) and feedcompany would forward my resume to Deloitte. Quite neat eh! Many things have happened to me through the blog - finding a job was something I'd have never thought about. Blogging does give something back, apart from the pure pleasure of writing :)

Enjoy the video and wish me luck...

What makes this aggressive recruiting campaign even more interesting is that Deloitte is in the process of major layoffs.

Francine McKenna who blogs at The Auditors was doing a little key word research a few weeks ago to see which search terms people were using to find her blog. This is what she discovered:

What I saw in the searches in just one day...

deloitte is firing people auditors blog
deloitte laid off
deloitte lay off
deloitte lay offs
deloitte layoffs
deloitte layoffs san francisco
deloitte rif
deloitte severance package
deloitte starting salary low

...confirmed what I heard last week...

...and foretold what I would hear yesterday:

From a reader:

D&T is processing a downturn in audit personnel starting Monday.

McKenna has had conversations with  Deloitte's National Director of Public Relations, Deborah Harrington who assured her the company was not rescinding any job offers and was still recruiting.

  to Jesse Leon for posting video on Facebook.

Another Reason Why Sending Layoff Notices By Email Is Never A Good Idea

Here's an opportunity to play Senior Management for a few moments. See, an email that was supposed to go to the senior management team at Carat -- its a media company --accidently was sent to their entire workforce and then that email was deliberately sent to the media and now its out there for the world to see.

Oops.

The highly sensitive email was asking senior managers to review a communication plan for laying off 10% of its workforce. This is where you come in. Please read the recommended layoff communication and share your feedback. I've included links provided by Death By Email if you want to read the supporting material

What do the documents say?  Take a look:  Carat Restructuring Communications Plan and Carat Restructuring Memo.

                                                                                                                                                                                                                 

Here is the message that the Chief People Officer wanted feedback on. Let's just say she's gotten an earful. From reading the communication plan it does not seem that the company was planning on notifying people by email that they were losing their jobs. Unfortunately, that's how they got the news.

Message to Impacted Employees
“I uUnfortunately, I have some difficult news which that affects you and your position
with the company. Based on the continued reduction in our client’s’ spend and a restructuring
of the core functions (insert group here), we had to evaluate a number of factors
and tooktake a hard look at our future and currentcurrent and future business needs
(capacity), performance, and the evolving skill sets needed for our clients and their
businesses. As a result, we no longer have a role for you. This was a very difficult decision
which that is affecting a number of people across Caratthe entire organization. Your
last day with the company will be _____________.
I know this is difficult news to handle. I want you to know that we have prepared some
information that I would like to review with you now. This is important information concerning
your severance, medical benefits and outplacement assistance. This is the
package we have arrangedarrange for anyone affected by a reduction in staff such as
this.
Please know that we value your contribution to the company and want to help you as
with your transition into the next stage of your professional career. Let’s review your
package and make sure you understand what we have provided. We also have outplacement
services to offer you as a part of your transition if you are interested in taking
advantage of that service.
If you would like to go home today and come back tomorrow to clean out your desk or
office, you are free to do so. We would like you to meet with your manager following our
meeting to transition your work. We will be communicating to your team today. Your
manager will be contacting clients. We ask that you do not contact your any clients to
discuss this situation. As Since this is affecting a number of people, we will be communicating
to the office later today what has occurred.
Please review the materials that we have provided for you. You have one week (or 45
days depending on situation) to review your severance agreement, sign it and return it
to me. In the meantime, don’t hesitate to call me if you have any questions.”

Since the purpose of the email was to have senior management provide feedback, what feedback would you give?

Here's my recommendation it doesn't have anything to do wth the messaging -- anyway you say it someone just los their job.
My issue is in the thinking that senior management review should be conducted via email. 
Hold a meeting for the senior management team. Discuss it in person, together...Hand out the material at the meeting and then collect all copies so that no one can copy, fax, scan or in any way use the information to share with the world.

If you can't do the meeting in person. Do a video conference and send the material by courier or FedEx. If you can't do the video conference, do a WebEx . If you can't do a WebEx  do a phone conference but whatever you do, talk to each other,

Good luck.

Another Reason Why Sending Layoff Notices By Email Is Not A Good Idea

Here's an opportunity to play Senior Management for a few moments. See, an email that was supposed to go to the senior management team at Carat -- its a media company --accidently was sent to their entire workforce and then that email was deliberately sent to the media and now its out there for the world to see.

Oops.

The highly sensitive email was asking senior managers to review a communication plan for laying off 10% of its workforce. This is where you come in. Please read the recommended layoff communication and share your feedback. I've included links provided by Death By Email if you want to read the supporting material

What do the documents say?  Take a look:  Carat Restructuring Communications Plan and Carat Restructuring Memo.

                                                                                                                                                                                                                 

Here is the message that the Chief People Officer wanted feedback on. Let's just say she's gotten an earful. From reading the communication plan it does not seem that the company was planning on notifying people by email that they were losing their jobs. Unfortunately, that's how they got the news.

Message to Impacted Employees
“I uUnfortunately, I have some difficult news which that affects you and your position
with the company. Based on the continued reduction in our client’s’ spend and a restructuring
of the core functions (insert group here), we had to evaluate a number of factors
and tooktake a hard look at our future and currentcurrent and future business needs
(capacity), performance, and the evolving skill sets needed for our clients and their
businesses. As a result, we no longer have a role for you. This was a very difficult decision
which that is affecting a number of people across Caratthe entire organization. Your
last day with the company will be _____________.
I know this is difficult news to handle. I want you to know that we have prepared some
information that I would like to review with you now. This is important information concerning
your severance, medical benefits and outplacement assistance. This is the
package we have arrangedarrange for anyone affected by a reduction in staff such as
this.
Please know that we value your contribution to the company and want to help you as
with your transition into the next stage of your professional career. Let’s review your
package and make sure you understand what we have provided. We also have outplacement
services to offer you as a part of your transition if you are interested in taking
advantage of that service.
If you would like to go home today and come back tomorrow to clean out your desk or
office, you are free to do so. We would like you to meet with your manager following our
meeting to transition your work. We will be communicating to your team today. Your
manager will be contacting clients. We ask that you do not contact your any clients to
discuss this situation. As Since this is affecting a number of people, we will be communicating
to the office later today what has occurred.
Please review the materials that we have provided for you. You have one week (or 45
days depending on situation) to review your severance agreement, sign it and return it
to me. In the meantime, don’t hesitate to call me if you have any questions.”

Since the purpose of the email was to have senior management provide feedback, what feedback would you give?

Here's my recommendation it doesn't have anything to do wth the messaging -- anyway you say it someone just los their job.
My issue is in the thinking that senior management review should be conducted via email. 
Hold a meeting for the senior management team. Discuss it in person, together...Hand out the material at the meeting and then collect all copies so that no one can copy, fax, scan or in any way use the information to share with the world.

If you can't do the meeting in person. Do a video conference and send the material by courier or FedEx. If you can't do the video conference, do a WebEx . If you can't do a WebEx  do a phone conference but whatever you do, talk to each other,

Good luck.

The PR- Blogging Wars: Pitching healthy mom products to Cancer Blog

Toddler Planet is a blog about a mom, her kids, her friends and her on-going battle with breast cancer. Yesterday she shared a post about a PR pitch made to her blog. This is why bloggers have little patience for PR folks

Many of us who went to BlogHer and passed out cards are now being approached by advertisers to promote products on our blogs.  Some of us do, and some of us don’t. (And some of us do, on other sites. I don’t do products on this blog, but I will review things on my other blog, Review Planet. Just cause it’s fun, and it’s been a way for me to learn about new products when I wasn’t out and about in the stores this year.  But I don’t do them over here, with rare exception.)

This pitch I found particularly hilarious this morning:

After looking at your site, I feel that you and your audience would be interested in knowing about us and our little contest! The idea is simple: we’re looking for healthy, active moms who can tell their story, give advice and empower moms who aspire to “do it all” without neglecting themselves.

Um.

No.

I doubt you looked at my site much.

Not only does she have a sense of humor but she is being kind. She could have named the PR professional who sent the ridiculous pitch. She did not. I do hope said PR person follows up and discovers the mistake and sends a public apology.

What are the chances of that happening?