Law And More

Reputation Restoration and Goldman Sachs - Now a Wrap for Image-Fixer Jake Siewert But New Branding Challenges Emerge

"Jake Siewert, who guided Goldman Sachs’ reputational recovery in the aftermath of the global financial meltdown, is joining Warburg Pincus." - Kevin McCauley, Odwyerpr.com, April 16, 2021.

In 2010, in Rolling Stone Matt Taibbi had positioned and packaged Goldman Sachs as "The Great American Bubble Machine." Taibbi contended:

"From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression ..."

Siewert took that on. His strategy was essentially to make Goldman Sachs transparent and to humanize its executives. Tools for that included podcasting and social media. Most of Wall Street shuns such openness. Siewert also healed relationships with much of media and with policymakers.

Now Siewert is moving on.

But new kinds of reputational trouble have arisen for Goldman Sachs. The media and internally its employees are focused on its culture. The rot is within.

In a recent edition of Vanity Fair, William Cohan turned over Goldman Sachs' ugly underbelly.

Within the organization, the beefs range from overwork to frat-boy values. In regard to the latter a former intern Patrick Blumenthal filed a lawsuit in 2020. In that lawsuit "Blumenthal v. Goldman Sachs, et al.," the plaintiff claims harm from hazing.

This could bite the leadership in the butt, just as it had in Deloitte UK and KPMG UK. Because of the contentions about a toxic culture, one executive stepped down from that particular position, another resigned from the company.

In western economies there is a movement against all forms of workplace bullying. 

Obviously, the Goldman Sachs' brand is in play, yet again. Heads could roll.

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

 

BigLaw - Lack of (authentic) Succession Planning and Power

"Law firm partnerships are populated by some of the brightest and most educated people in the world, so there should be plenty of promising leaders in their ranks ready to take the reins when it’s needed." - Patrick Smith, Law.com, April 19. 2021.

Except where governance principles mandate it, succession can often be rocky in many businesses - of all sizes.

Power is wonderful. And what head is willing to surrender it - or risk losing it!

In his iconic book "The Hero's Farewell," Jeffrey Sonnenfeld details how difficult it is for a former leader to let go of what had gone along with a previous position. that. So, of course, the game becomes to stay in that position. 

Many of us from a corporate background have observed first-hand the myriad ways leaders can duck succession planning - at least the kinds that will result in identifying and developing the next generation of leadership. For example, strong candidates for that will be forced out.

Similiar obstructionist tactics probably are playing out in BigLaw. And since that entity doesn't really operate as a business those with the power can get away with it. 

William Shakespeare nailed it in "Henry IV, Part 2" - Uneasy lies the head that wears the crown. Therefore, don't take on additional risk to one's power by nurturing someone who could wind up seizing it. 

Small changes can trigger big success in your career and your business communications. Swing by for a complimentary consultation (janegenova374@gmail.com)

Prestigious NYC Prep-School Niche Disrupted - Push-back on Idelology, Tuition, Behavior by Leadership

"Head of elite NYC school Dalton [Jim Best] resigns after parents complain about 'obsessive' and 'wildly inappropriate' antiracism agenda that included reenactments of 'racist cops' in SCIENCE classes." - Jennifer Smith, Daily Mail, April 17, 2021.

Dalton in not alone among the prestigous private schools in New York City in which parents perceive liberalism has gone too far. There has also been push-back at Grace Church and Brearley. At Grace a math teacher went public in objecting to the ideology. At Brearley a father yanked his child out of the prep school because of that same thing.

But the issue of ideology may only be the tip of the iceberg. Parents are also enraged that the sticker price for tuition - over $50,000 - hasn't been reduced even though there haven't been in-person classes since March 2020. At universities there have been class-action lawsuits filed by students requesting discounts. They allege that remote instruction has been subpar.

In addition, in the prep-school niche there has also been turmoil because of alleged sexual misconduct. The head of Regis high school Rev. Daniel Lahart has stepped down. This had inflicted another blow on the branding of Roman Catholicism. Since the Boston Globe broke the story of clergy sexual abuse of boys in 2002, the Church has struggled with reputation restoration.

Why this disruption in the prep-school niche matters is because those prep schools are feeder pools for the next generation of leadership in capitalism. The graduates will stop off at elite universities for undergraduate degrees, then elite professional schools and eventually assume the power positions in American institutions. 

Now, there could be the beginning of a reconfiguration of where the current ruling class seeks socialization and an edge for their offspring. Other launching pads could replace the prep schools. 

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

 

The Ranking Game Has Come to This: Temple Online B School's Former Dean Moshe Porat Indicted

"The indictment unsealed Friday charges Moshe Porat, 74, the former dean of Temple’s Fox School of Business and Management, in Philadelphia, with conspiracy and wire fraud for allegedly providing phony information to U.S. News & World Report between 2014 and 2018." - Patrick Thomas, The Wall Street Journal, April 16, 2021.

Two of Porat's subordinates at the time were also indicted. They were each charged with one count of conspiracy related to committing wire fraud.

Porat denies that allegations.

The cooked-up data about the online M.B.A. program focused on:

Number of students who had taken the Graduate Management Admission Test exam

Average work experience of students

Percentage of students enrolled part-time.

In 2018, the school notified U.S. News & World Report that the data had been manipulated. Soon after that, Porat was forced to leave. There were then federal and state investigations.

However, as the sayings go in law: The bell had been rung. The egg had been broken. Before this disclosure by the school, for four consecutive years that online program ranked number-one in the U.S. News & World Report ranking system. 

Students who enrolled in that particular program because of that ranking then had to deal with the reality that their alma mater was involved in a front-page media scandal. That could reduce the brand value of their degree. 

Anything to do  with rankings in higher education is big news, That's because higher education is in essence BigBusiness.

When rankings slip for any professional school, be it business or law, those in leadership could lose their jobs. When rankings increase that usually results in higher quality students applying, brandname professors accepting positions, more research funding and larger donations from alumni.

The pressure is intense. Therefore, if it is proved that Porat and his team fudged the numbers or if they take a plea deal, that would be no surprise. Rankings represent a high-stakes game.

Ironically, the ranking game itself had gotten into a pickle this year. That happened with how U.S. News & World Report ranked law schools. As Law.com reports, three times it had t0 change the rankings of law schools. That threw shade on its own branding. It also opened the door wider on a discussion of the ranking game itself. Should it be allowed to continue?

Earlier several elite business schools refused to submit data to a ranking organization. They claimed that COVID had disrupted too much for the numbers to reflect any reality.

Reflection: Is the ranking process itself in play?

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

Liberty University Sues Its Former President Jerry Falwell Jr.

More shade is thrown both on the branding of conservative Liberty University and its former president Jerry Falwell Jr. 

That's because media outlets such as The Hill are running with the University's filing of a lawsuit in Virginia state court yesterday against Falwell. That University had been founded by Falwell's father in 1971. It stood as a symbol of the best of American conservative thought and behavior.

The litigation contends that Falwell withheld pertinent information from the board of trustees when negotiating his contract in 2019. The lawsuit has three counts: breach of contract, breach of fiduciary duty and statutory conspiracy.

The alleged concealment involved two matters. One was the extortion plot by the pool caretaker Giancarlo Granda who threatened to disclose details about an affair with Falwell's wife Becki. The other was about Falwell's alleged impairment by alcohol. It is contended that Falwell anticipated a scandal would break and he wanted to ensure a hefty severance package. 

The suit seeks $10 million in compensatory damages. In VA that can be tripled. There is also a request for punitive damages. 

Before the suit had been filed Falwell had resigned from his job. More recently so did his son Trey, who had served as vice president. The University is making no comment about the latter resignation.

What a branding mess.

The University looks foolish for getting into this high-profile pickle. 

Falwell probably is finished as a conservative leader. Among his errors of judgment had been appearing on a boat with his arm around a female not his wife and his trousers unzipped, with the underwear visible. 

Along the way in this saga, Falwell has sued the University of defamation but dropped the lawsuit, without explanation.

At one time he had extreme influence in the conservative movement. It has been said that he was able to motivate evangelicals to support the political aspirations of Donald Trump.

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

 

KPMG UK Votes in New CEO - Will Jon Holt Create Non-Toxic Culture?

KPMG UK, like Deloitte UK, has been positioned and packaged in global media as a platform for a toxic culture.

Its chief executive office Bill Michael had resigned. His remark to employeess, which could constitute his legacy, had been to "stop moaning." The workplace is known for the extreme long hours as well as the heavy travel.

Now, reports Bloomberg Law, the partners at KPMG UK have elected a new head. That's Jon Holt. He will serve until September 2025. The question is: Can Holt create a more humane culture for that accounting firm? Or will he only attract more bad press?

After all, the international media outlets are gunning for KPMG UK. 

The story of 2021 is the workplace whose ethos is bullying. The latest study of that is the book "Work Won't Love You Back." by Sarah Jaffe. 

Meanwhile, BigLaw continues to take it on the chin in legal media for its own kind of toxicity. Here are excerpts from the anonymous employee-rating platform of their law firms - Glassdoor:

For instance, for Jones Day, one employee comments, "Management is poor, they will make up things that you supposedly did wrong in order to prevent a salary raise, long hours, bizarre start-finish times with no flexibilty, management exhibits favoritism, have to work nights and weekends ..."

At Paul Weiss, here it is: "I was not motivated to work because I was yelled at and chastised for any mistake that I made. This is usually because upper management yells down the chain to the people they work under, and the cycle keeps going. That is how you learn at Paul Weiss (at least in my department). If you can drink the koolaid and fit in, it's great. You'll need to be intense and able to take criticism well. I don't think I was ever praised ..."

At Willkie Farr, the posting reads: "Some of the more powerful partners in Houston are very difficult to work for and it makes the entire office an unpleasant place to work."

And, at Boies Schiller, here you have the colorful observation: "I've worked here only a few months but this place is toxic. It's the Hunger Games in suits. There's a very prominent Bro culture that undermines the simplest of things."

Capitalism in its latest configuration may not survive. Lawyer turned journalist Jill Filipovic also throws shade on that version of capitalism in her brisk-selling book "Ok Boomer, Let's Talk." 

Internationally, power could be put in play. And, not just in the workplace.

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

 

Yale Law Professor Amy Chua aka Tiger Mom Needs Guidance in Crisis Management - The Urban Cockroach Phenomenon Dominates Her Brand

As many know, brandname law professor at Yale and iconic expert on parenting (Tiger Mom) Amy Chua had been reprimanded last week by her employer.

Essentially it had been a slap on the wrist: being stripped of the assignment to oversee a group of 1Ls next semester. Small stuff. 

Had Chua been trained in crisis management or had contracted with a public relations firm to position and package that negative development in her branding, she would have done two things. They are fundamentals in reputation restoration. 

The two musts in effective crisis communications are:

• Admit any part in what has been contended or proved to have transpired. The mea culpa humanizes. 

 

• Unless there is a need for continual briefings, lay low. Most negative developments blow over. Someone else or some other organization will be screwing up.

Instead, Chua sprung into a defensive mode. She issued this letter to colleagues. One would have expected someone trained in law - a profession that operates on language and nuance - not to have transmitted such as document.

Among other things, she contends she felt "bullied." In the Zoom meeting she demanded with the Yale Law powers that be she indicates she felt "degraded." 

Of course, as crisis-communications experts worth their salt would say, those moves following her lightweight censure have worsened the situation.

For example, influential Abovethelaw has run with these latest developments. Google loves ATL.

In short, what could be called the urban cockroach phenomenon has taken place. As anyone who has grown up in New York City or Jersey City, New Jersey knows, once one "roach" enters the space, many more will follow. Often it's impossible to "get rid of the roaches."

In this situation, alumni have come forward to refute Chua's defense. Expect more constituenices to creep onto the surface from where they had been in a safe resting state.

Here is the article I published in O'Dwyer Public Relations on how her husband Jed Rubenfeld could restore his own reputation. He had been suspended from teaching at Yale Law for two years. The reason had been alleged sexual misconduct. 

Likely, Chua will also require that kind of process of reputation restoration. Her brand is in play. It could be rescued if she takes the right steps. It could lose its entire equity if she continues making some very bad moves. 

Reflection: As Dan Goleman hammered, cognitive IQ has less to do with success that emotional intelligence.

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

In Bridgegate, Bridget Kelly Got Off the Hook - Big Implications, Legal and Political

"In the New Jersey scandal known as Bridgegate, the high court ruled last year that a political-retribution scheme that involved crippling a town with traffic jams didn’t constitute federal fraud. The decision already has prompted the reversal of most charges in a high-profile insider-trading case, and could hurt prosecutors’ efforts to preserve convictions in a case that exposed ethical failures at one of the Big Four accounting firms." - Dave Michaels, The Wall Street Journal, April 12, 2021.

That U.S. Supreme Court ruling reversed the conviction of former aide to New Jersey Governor Chris Christie - Bridget Kelly.

In an earler trial she had been found to be a key player in the traffic jam on the George Washington bridge, created for political retaliation. However, amid all those legalities Christie himself had not been prosecuted. That made the Bridgegate scandal all the more high-profile. There was also sympathy with Kelly as a mother. It was difficult to buy in that she had orchestrated the plan without input from above. What political aide has that kind of authority?

SCOTUS had reviewed whether unsavory behavior constituted criminal fraud. What was determined had been this: Federal criminal fraud can only be ruled when the behavior is intended to obtain funds or material goods in a underhanded manner. 

As the legalities currently work their way through the legal system, the whole matter of the 2013 Bridgegate has been resurrected to bite Christie in the butt. His current political comeback can be derailed. For example, on "This Week" he attacked U.S. Joe Biden's infrastructure initiative. 

In response, reports Keith Griffith at the Daily Mail:

"Chris Christie has accused President Joe Biden of 'lying' about the contents of a massive infrastructure spending proposal -- but quickly faced questions about his own credentials on infrastructure from critics who recalled his infamous 'Bridgegate' scandal."

The social network Twitter went wild with pushback on Christie. Again, he may have become radioactive. This is at a time when the GOP is struggling with its post-Trump Administration identity. Also, with the Democrats in control of the White House and the U.S. House, myriad constituencies are focusing on making friends and influencing the liberals. In itself, that could leave a yesterday politico like Christie out of 2021 looping. The media outlets could begin ignoring him. The focus will be the new GOP players.

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

 

Tiger Mom Amy Chua Gets Spanked by Yale Law School

Next academic year at Yale Law School Professor Amy Chua aka "Tiger Mom" cannot lead a small group of 1Ls, reports Abovethelaw.

That is the penalty for violating an agreement she made in 2019 - on her own initiative - not to have students at her home in a social context. Such a prohibition was enacted when her husband Jed Rubenfeld had been suspended for two years. A cloud about his conduct with students, including possible sexual misconduct, had hung over him. Therefore, there was to be the halt on students visits to the Chua-Rubenfeld household. 

Despite the agreement, Chua continued to have students over her home in a social context. Since she entered the agreeement on her own initiative the contract could have been interpreted as non-binding. 

Within the Yale Law School community that socializing with students had been controversial. Some of those invited over had found how they were treated offensive. For example, they might have been given unsolicited feedback on their appearance. Such was not welcome.

What is amazing is that after the suspension of her husband Rubenfeld, Chau did not toe the line with her conduct. 

Obviously, the way she exercises her power is being scrutinized.

On O'Dwyer PR, I had published an article on how Rubenfeld can do reputation restoration. Soon I may have to do one for how Chua can rebrand. 

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.

 

BigFour, Now CBS - Will BigLaw Be Next in Having to Address an Alleged "Hostile Workplace?"

"CBS has parted ways with top executives in its television station group amid an investigation into their conduct ... The executives, Television Stations Group President Peter Dunn and David Friend, its senior vice president of news, were suspended in January after a Los Angeles Times report on allegations the pair had fostered a hostile work environment." - Joe Flint, The Wall Street Journal, April 7, 2021.

The investigation, which is still not over, is being conducted by law firm Proskauer Rose. The CBS Entertainment Group Executive George Cheeks has not indicated what that review has revealed. But, what we do know is that the two executives have been terminated.

Those two terminations follow the steps taken by two BigFour accounting firms in the U.K. in response to the existence of a "toxic" workplace.

At Deloitte U.K., Dimple Agarwal stepped down from her leadership position in diversity. She is still employed at Deloitte U.K., though.

At KPMG U.K.'s chairman, Bill Michael resigned. However, that might not change much. Bloomberg Law observes that the culture of the BigFour is slow to remimagine itself.

And, therefore, despite the terminations and stepping-back at CBS, Deloitte U.K. and KPMG U.K., the leadership at BigLaw might not do much to change the culture. However, given the growing media attention to "hostile workplaces" and "toxic work environments," law firms might have to at least address the contentions that such exist. 

Universally, a beef in BigLaw is about oppressive partners. Often, in the media that's referred to as "bullying." And, it's frequently documented with surveys.

Glassdoor, the platform for posting anonymous employee opinions and ratings, showcases those kinds of complaints.

For instance, for Jones Day, one employee comments, "Management is poor, they will make up things that you supposedly did wrong in order to prevent a salary raise, long hours, bizarre start-finish times with no flexibilty, management exhibits favoritism, have to work nights and weekends ..."

At Paul Weiss, here it is: "I was not motivated to work because I was yelled at and chastised for any mistake that I made. This is usually because upper management yells down the chain to the people they work under, and the cycle keeps going. That is how you learn at Paul Weiss (at least in my department). If you can drink the koolaid and fit in, it's great. You'll need to be intense and able to take criticism well. I don't think I was ever praised ..."

At Willkie Farr, the posting reads: "Some of the more powerful partners in Houston are very difficult to work for and it makes the entire office an unpleasant place to work."

And, at Boies Schiller, here you have the colorful observation: "I've worked here only a few months but this place is toxic. It's the Hunger Games in suits. There's a very prominent Bro culture that undermines the simplest of things."

Sure, BigLaw makes a lot of money for the folks working in it. But so does BigFour Accounting in the U.K. and CBS does in the U.S. Yet, Deloitte U.K., KPMG U.K. and CBS took high-profile steps to disclose unacceptable conditions and move to correct specific instances of it.

BigLaw might find pressure in the court of public opinion to make examples of partners who are perceived as creating a hostile place to work. To make not subject to lawsuits, they might have to hire another law firm to conduct the internal investigation.

Will that change the culture? It could be a start. Meanwhile, Millennial lawyers are introducing their own values to working in the legal sector. If there is no hope of alignment, talented associates know they can go elsewhere. Some have considered the timing right for going solo. 

Yes, place your paid sponsored content on this blog. Affordable rates. Please contact Jane Genova at janegenova374@gmail.com.