2: 37 am, I received an e-mail from my organization containing a message from Andrea Jung announcing her decision to step down as our chairman. The message was sent out at that hour, so the message reached all associates before we could hear the news on the television or read it on the Internet. Additionally, the message Ms Jung sent out was very similar to the press release Avon sent out to media outlets. These internal and external communications were strategically timed to prepare associates with the information before stakeholders outside of the organization were informed. My company prepared me before I was inundated with questions from my representatives.
Here is a copy of the press release from Avon Products, Inc, (2012), regarding Andrea Jung stepping down as Avon's chairman:
Avon Executive Chairman Andrea Jung to Step Down from Board at Year End after Successful Transition; Will Continue as Senior Advisor
Fred Hassan to become Non-Executive Chairman on January 1, 2013
Oct 5, 2012
NEW YORK, Oct. 5, 2012 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today announced that Andrea Jung has informed the Board of Directors that she will step down as Executive Chairman and Board member, effective December 31, 2012 after a successful transition to new leadership under CEO Sheri McCoy. Ms. Jung will continue as a senior advisor to the Board beginning on January 1, 2013.
Fred Hassan, currently lead independent director, will succeed Ms. Jung next year and assume the position of non-executive Chairman on January 1. Mr. Hassan is a managing director and partner at Warburg Pincus and the former Chairman and Chief Executive Officer of Schering-Plough Corp.
"My decision reflects the successful transition to new leadership. I believe the end of the year is the appropriate time for me to shift my role from Executive Chairman to senior advisor," Ms. Jung said. "It has been a great privilege to serve the company over the past two decades, most notably the millions of Avon Representatives and thousands of Associates around the world. I look forward to supporting the Avon Board of Directors."
Ms. Jung continued, "Fred's experience and leadership on the Avon Board, and his unusual record of leading turnarounds at world-class companies over his distinguished career make him ideally suited to take on the independent Chairman role."
Mr. Hassan said, "On behalf of the Board, I want to thank Andrea for her many years of service to the company as she helped make Avon an iconic beauty leader with an unrivaled global footprint and a preeminent force for women's economic empowerment. We look forward to continue to work with Andrea in her role as a senior advisor."
About Avon
Avon, the company for women, is a leading global beauty company, with over $11 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through over 6 million active independent Avon Sales Representatives. Avon's product line includes beauty products, as well as fashion and home products, and features such well-recognized brand names as Avon Color, ANEW, Skin-So-Soft, Advance Techniques, Avon Naturals, and mark. Learn more about Avon and its products at www.avoncompany.com.
SOURCE Avon Products, Inc.
As an Avon associate, I am not permitted to share internal e-mail communications. What I can share is, this press release is very close to the e-mail associates received hours before the press release was sent to media outlets. Several passages were exactly the same in the internal and external communication. This speaks directly to our weekly reading when Argenti et al, (2005) explains Dell's communication strategy. "Dell Direct not only describes the company's business model, but it is about as clear a unifying communications statement as a company could possibly have" (Argenti et al, 2005, p. 85). Avon's internal and external communication's strategy are as similar as they can possibly be aligning all stakeholders and the media who have an interest in this information.
References
Argenti, P. A., Howell, R. A., & Beck, K. A. (2005). The strategic communication imperative. MIT Sloan management review, 46(3), 83-89.
Avon Products, Inc.: Avon executive chairman andrea jung to step down from board at year end after successful transition; will continue as senior advisor. (2012). Retrieved from http://media.avoncompany.com/index.php?s=10922&item=126181
Hi Jacqueline,
ReplyDeleteI thought your post was very interesting. I'm sure you appreciated the timing of the message, but did its similarity to the media press release "cheapen" the communication or make you feel like the organization was just checking the box in the communication plan?
Sometimes I feel like packaged communication and corporate press releases are not genuine. I know sometimes the emails are sent out at those awkward times because the market is closed. I guess sometimes I feel like the organization has the strategy and plan for communication for investors and not necessarily for the benefit of their employees, would you agree?
Hi Melanie,
DeleteI can't speak for Jacqueline, but I agree with you about that. We get packaged communications from senior administration that sometimes feels like it's just a CYA measure...if you get my drift.
K
Hi Melanie,
DeleteThank you for your comment. The e-mail that the Avon associates received had a personal message at the beginning of the e-mail in addition to the closing paragraph. Ms. Jung's message was very touching and so sincere, there was no doubt she was trying to convey her true feelings about leaving her post and the affect it will have on the organization. The rest of the e-mail was very similar to the press release and disclosed information about the new chairman. To answer your question, Ms. Jung's e-mail was personal and heartfelt, and in no way did I feel my organization was just checking off a box in the communication plan.
As a corporte associate with a public company, I am used to these types of communications. Additionally, I feel grateful to receive the information before the rest of the world hears the news. I would much rather open an e-mail to read the news than to turn on the news and hear it on CNN. Whether it benefits the investors or not, it is a huge benefit to the employees!
Thank you!
Hi Jacqueline,
ReplyDeleteInteresting perspective from someone on the inside of Avon. I imagine that they want to put out a consistent message to all stakeholders because of they were to show any daylight (differences of message) that might open themselves up to all sorts of problems, including how its operations are perceived on Wall Street. If they tried to sugar coat your CEO's departure but sent out something far more brutal to employees, someone from within your organization might reach out to CNBC and that kind of reporting could tank the stock.
Hi John!
DeleteThanks for your response. I agree with you that Avon must keep the message consistent to protect the stock! As an associate, I know and my peers know what is behind the decision for Ms. Jung to step down. Despite 11 Billion in revenue last year, our organization has struggled for several years, especially in North America. Additionally, several top Avon associates were being investigated for bribery in China. Jung was questioned, but was not involved in the scandle. In my opinion, those two issues were the catalyst for her departure.
Thanks!
Hi Jacqueline,
ReplyDeleteThis was a great example of corporate message alignment. Although the company sent the email internally hours before the press release went out, it does seem like fabricated communication or fake inter-personal relations; an example of a corporation going through the motions- a courtesy FYI. What did you think when you saw the press release that was almost identical to the email corporate employees received? Did it effect the morale? Did it effect how valued you feel as a corporate employee?
Hi Andrea,
DeleteThank you for your comments! The e-mail I received was fabricated in that the company had to inform the Avon associates before the press release went out ot media outlets. But, it was personal in nature. Some of the wording used my Andrea Jung was heartfelt and there was no question that she was being sincere. The press release was a formal business announcement and directed to a different audience. However, the two messages did contain the exact wording regarding Ms. Jung's replacement, aligning the two communications in that manner. The messages were parallel from a business standpoint to show solidarity as an organization for the incoming chairman. In addition to the business announcement, the associates received a personal message directly from Ms. Jung as well, which did make me, and my peers, feel valued as employees. The last line of Ms. Jung's e-mail states, "I will always be your huge champion, cheering you all on and rooting like no one else for your individual and collective success and well-being" (Andrea Jung, 2012). She goes on to sign the e-mail, "With huge gratitude and affection, Andrea". The last sentence made me feel emotional regarding her departure, and I really appreciated her personal touch in the message.
Thank you!
Jacqueline,
ReplyDeleteDid this news come as a shock to the rank and file at Avon or do you think at least some of them saw it coming? As I posted on Melanie's comment, I agree that it sometimes feels like there is not as much thought given to personalizing internal communications as perhaps there could be. Did you feel that way after reading the press release?
But it is commendable that at least Avon gave you a heads-up so that you are not caught completely off-guard if/when the subject comes up with your associates. Do you know if there is any plan to provide those of you that deal with associates any kind of script or guide to follow so that all of the district managers are communicating the same message to the associates? That would be another sign of integrated and coordinated communications, wouldn't it.
Thanks for sharing.
K
Hi Kerry,
ReplyDeleteThanks for your comment! As you can see in my responses to Melanie and Andrea, Ms. Jung did personalize her message and her words seemed very sincere. In fact, that part of the message was so touching, I felt saddness for her departure.
As for your question about a script for district managers, we did not receive one. We are directed to go by the information shared in the press release, but we can share the kind words Ms. Jung shared with us on her e-mail. I can't forward the e-mail, but I can speak about it.
Thank you Kerry!