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The WORDS Issue - Brunswick Group
A J O U R NA L O F C O M M U N I C AT I O N S A N D C O R P O R AT E R E L AT I O N S I S S U E 1 5 2 0 1 8

The WORDS Issue
MARK PALMER, former
Enron spokesman, on
telling the truth
MARY BEARD talks
about Women & Power
The man behind the
HASHTAG
The Shakespeare of
SILICON VALLEY
Plus Christopher Dodd
and Dambisa Moyo
The WORDS Issue - Brunswick Group
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        critical issues and stakeholder relations
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editor-in-chief Kevin Helliker
managing editor Carlton Wilkinson
art director Frank Tagariello
deputy editor Edward Stephens
content production manager Laura Templer
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The WORDS Issue - Brunswick Group
T
                                                                            he talent and gift of communications and
                                                                            language is obviously one of the great differentiators
                                                                            between us and other animals. We have been able to
                                                                            talk in complex ways for tens of thousands of years, if
                                                                            not more, but it is easy to forget that the written word
                                                                            is a quite recent phenomenon. Only just over 5,000
                                                                            years ago, the Sumerians made written words come to
                                                                            life, pressing cuneiform characters into clay tablets.
                                                                We have come a long way in 5,000 years. Today, an average
                                                             of 23 billion text messages are sent per day, and 350,000 tweets
                                                             per minute. With such volumes on multiple channels and visual
                                                             content powering up everywhere, one might expect written or
                                                             spoken words to have a diminished importance. Actually, we
                                                             believe the opposite. One of the many great opportunities of the
                                                             digital world is that we can all become publishers. The power
                                                             and reach of effective content, written or spoken, has never
                                                             been greater. In their book, Everybody’s Business, Brunswick              SIR ALAN PARKER
                                                             Partners Lucy Parker and Jon Miller defined us as being in the            CHAIRMAN,
                                                             Age of Conversation. We cannot control the conversations going            BRUNSWICK GROUP

                                                             on around us inside or outside our organizations, but we can
                                                             contribute to, and sometimes shape, those conversations with the
                                                             power of great and powerful content and how we use our words.
                                                                It feels like sound bites, bumper stickers and tweets have the
                                                             greatest impact. They are more easily shared and re-shared,
                                                             such as “Make America Great Again.” But most glance off of
                                                             us. Headlines and sound bites catch our eyes, but well-crafted
                                                             and thoughtful words can capture our hearts and minds and,
                                                             in a digital age, they can go further and last longer. As we have
                                                             exponentially increased our consumption of words and media,
                                                             it seems we have also sharpened the mental and critical faculties
                                                             for greater editorial competence. We can discard more of what
                                                             comes at us as we pick out what we want to fully engage with. The
                                                             paradigm has moved to pulling content, not pushing it.
                                                                The challenge for the corporate world is that we start from a low      THE BEST
                                                             level of trust – corporate speak, legalese and spin not only fail to
                                                             deliver, but can even be hugely damaging. Humanity, authenticity
                                                                                                                                       WORDS ARE ABLE
                                                             and honesty always rule the day. Our CEO and my colleague Neal            NOT ONLY TO
                                                             Wolin, in this edition, quotes Ernest Hemingway, reminding us             COMMUNICATE
                                                             that the way to approach the task of writing is to “start with one
                                                             true sentence”– everything else comes from that.
                                                                                                                                       A POINT OF VIEW,
                                                                The best words are able not only to communicate a point of             BUT TO CONNECT
                                                                                                                                       AND SHOW
PHOTOGRAPH: DAVID REES

                                                             view, but to connect and show you see the world the way others
                                                             see it. Helping clients make their case and make those connections
                                                             has always been at the heart of what we do at Brunswick.
                                                                                                                                       YOU SEE THE
                                                                I hope you enjoy this edition as we celebrate the extraordinary,       WORLD THE WAY
                                                             wonderful and potentially magical power of words.                         OTHERS SEE IT
                         b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8                                                                            3
The WORDS Issue - Brunswick Group
10,000 SPEECHES
                                                                                    22         Former US Senator
                                                                                               Christopher Dodd talks
                                                                                               to Brunswick’s Casey
                                                                                               Becker about the power
                                                                                               of words and stories

         6    QUOTES FROM THE ISSUE
              “You can’t spin your way out of
                                                         LESSONS FROM THE FRONT
                                                         Brunswick’s Mark Palmer offers        12
              trouble you acted your way into”        lessons from his traumatic days at
              – Mark Palmer                                Enron, where he proved that a
                                                      corporate spokesman can emerge
                                                          from scandal with his integrity
         7    SPOTLIGHT SECTION
              Insights from Brunswick colleagues
              around the world
                                                                   and reputation intact

                                                                                                                    12
              7C
                HURCHILL LESSON The
               master’s words sometimes
                                                                      YES COMMENT
                                                           “No comment” is no longer a
                                                       safe way for companies to dodge
                                                                                               19
               overplayed the occasion
              8H
                ONESTY IS POLICY                                      tough questions
               Corporations have an obligation
               to tell the truth, not to entertain
              9 AFRICA SURPRISES M&A and
                                                                 #SORRYNOTSORRY
                                                     Apologizing on Twitter isn’t as easy      20
                democratic reforms are on the rise                      as it may seem
               	BREXIT is messy business, says
              10
                  Brunswick’s Pascal Lamy,
                  a former WTO Director
                                                        ”FOR PERSONAL REASONS”
                                                      The old euphemisms for executive         21
                                                            departures no longer suffice
     9        WELCOME TO THE WORDS ISSUE
         11   Brunswick CEO Neal Wolin
              writes: “Best to lead by this credo:
                                                                  ALL TOO FAMILIAR
                                                       Germans are conflicted about the        27
     8        Words matter, always”                       spread of US-style informality                            20

4                                                                             b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8

The WORDS Issue - Brunswick Group
THE WORDS ISSUE

           SINGAPORE SLANG
28         The fledgling city-state’s economic
           miracle began with its unlikely
                                                                                     EUROGLISH
                                                             Brussels English is shot through with
                                                                       slang and words from other
                                                                                                        54
           choice of an official language                    European languages, and is evolving
                                                               into a new lingua franca for the EU

30         MARY BEARD
           The celebrated author, classicist
           and feminist tells Brunswick’s
           Edward Stephens that it will
                                                             THE BIRTH OF THE ADVERTORIAL
                                                                 The pugilistic style of legendary      56
                                                                 Mobil executive Herb Schmertz
           take more than a hashtag to                        remade corporate communications
           overcome thousands of years of
           the silencing of women

                                                        35
                                                              THE POWER OF AUTHENTICITY
                                                             A word-for-word translation isn’t the      58
33         FROM THE TOP
           Four CEOs reveal particular words
                                                                best way to reach your audience

           that helped define their styles
                                                                  CHINESE IN YOUR POCKET
                                                                    Computers are using a more          59
35         STRATEGY OVERLOAD
           Seemingly everything today is
           described as “strategic,” rendering
                                                             human approach to translation, with
                                                                results that are greatly improved

           that word all but meaningless
                                                                 INTERVIEW: QUID FOUNDER
                                                                      A student of literature uses      60
37         DUKE OF DEVONSHIRE
           A small bookshop in London’s
                                                                words to find overlooked patterns
                                                                      in the chaos of cyberspace
           Mayfair has a history rich in literary
           – and literal – nobility
                                                        30                 CYBER RESILIENCE
                                                             DarkMatter guards the Middle East’s        64
40         INTERVIEW: DAMBISA MOYO
           The author, economist and Chevron
           board member talks about the
                                                                 explosive growth of connectivity

           future of democracy, and her love of
           her native Zambia
                                                                 BUILD A BETTER PASSWORD
                                                              A good password doesn’t have to be        67
                                                                        impossible to remember

           HE CREATED THE HASHTAG
44         Chris Messina talks about the
           practicalities and politics behind
                                                                    INTERVIEW: AVIV OVADYA
                                                                 The leading prophet of a looming       68
           the symbol                                         “infocalypse” warns that businesses
                                                                     must act now to be prepared

47         PHILOSOPHY’S ODD TURN
           This tongue-in-cheek essay argues                         Stories on art, business, and
                                                                 politics beyond our main theme         71
           that modern corporate                        67
           communications can be traced to
           Wittgenstein                                                  BOARDS IN BRAZIL 71           WIDE ANGLE
                                                                    The nation emerges from the
                                                              expansive “Lava Jato” probes with a
           THE POETRY-WRITING CEO
50         Jaithirth Rao, founder of India’s
           MphasiS, talks about his love for
                                                                clearer definition of transparency

                                                             INTERVIEW: MIGUEL MADURO 73
           plain speaking and W.H. Auden                       The head of a new EU school talks
                                                              about governance beyond the state

                                                               INTERVIEW: CARLA KRIWET 76
52         MAKING “LOVE”
           The iconic sculpture by Robert                           How Philips competes with
                                                                       Silicon Valley for talent
           Indiana grew out of his fascination
           with words – and old wooden beams                      INTERVIEW: WES MOORE 80
                                                               The CEO of Robin Hood tells of its
                                                              role as Wall Street’s favorite charity
53         BREAKING THE RULES
           The Economist’s language                                    CRITICAL MOMENT 82
           columnist notes that even Jane                           Physicist Stephen Hawking’s
           Austen broke the rules of grammar            40        triumphs over chaos were ours

b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8                                                           5
The WORDS Issue - Brunswick Group
“The solution is a combination          “I happened to contribute            “Of all the headwinds
      of bravery and the ability to         this interesting, small little     democracies are facing, the
     recognize the words you hear                hack on language.”            overarching one is myopia.”
    yourself speaking as your own.”                CHRIS MESSINA                        DAMBISA MOYO
               MARY BEARD                         Creator of the hashtag           Best-selling author, economist,
          Best-selling author, classics                    44                       and Chevron Board Member
           professor at Cambridge                                                               40
                      30                     “Occasionally, you might
                                            speak a phrase that people        “Probably the worst and the
        “You can’t spin your                   will recall. But what          best things that will happen
     way out of trouble you acted           they remember is how you         we can’t quite predict. But that
           your way into.”                       made them feel.”            doesn’t absolve us from doing
              MARK PALMER                                                      our best to predict them.”
                                                CHRISTOPHER DODD
        Brunswick US Managing Partner                                                    AVIV OVADYA
                                                   Former US Senator
         and former Enron spokesman                                                     Chief Technologist,
                                                           22
                       12                                                        University of Michigan’s Center for
                                                                                    Social Media Responsibility
      “The world is awash in data –       “Honesty about why executives                         68
        most of it numbers. But             leave has a powerful effect
    floating along in the sea of data           on those who stay.”             “He mobilized the English
          is language, arguably                   SHAHED LARSON              language and sent it into battle.”
                                                   Brunswick Partner            US President JOHN F. KENNEDY
       the most important way in                           21                        Speaking of former British
       which humans make sense                                                    Prime Minister Winston Churchill
               of the world.”                                                                    7
              BOB GOODSON
                  CEO, Quid                                                   “A room without books in it is
                      60                                                        quite a depressing place.”
                                                                                    DUKE OF DEVONSHIRE
                                                                                      Owner of Heywood Hill
                                                                                           bookshop
                                                                                                 37

                                          QUOTES
                                            from the
                                                        issue

                                                                                                                       ILLUSTRATION: EDMON DE HARO

6

The WORDS Issue - Brunswick Group
SP TLIGHT
                                                                                                                            Sharing insights
                                                                                                                            from Brunswick
                                                                                                                            colleagues around
                                                                                                                            the world on a
                                                                                                                            medley of topics

                                                                                                                            I
                                                                                                                              n 1899, a parliamentary
                                                                                                                              candidate from Oldham stood
                                                                                                                              to address a local church
                                                                                                                            gathering. “Never before in
                                                                                                                            the history of Oldham have so
                                                                                                                            many people had so much to

                                                                                                                      Of TIME&PLACE
                                                                                                                            eat,” he declared. As a junior
                                                                                                                            minister nine years later, the
                                                                                                                            same politician stood beside an
                                                                                                                            irrigation project in Africa and
                                                                                                                            said, “Never before in the history
                                                                                                                            of Africa has so much water been
                                                                                                                            held up by so little masonry.”
                                                                                                                               Before he became the greatest
                                                                                                                            orator in British history, before
                                                                                                                            he won the Nobel Prize in
                                                                                                                            Literature, Sir Winston Churchill
                                                                                                                            gave speeches that surely
                                                                                                                            generated some mirth. “He was
                                                                                                                            renowned throughout his career
                                                                                                                            for lavishing verbosity on issues
                                                                                                                            that simply didn’t warrant it,”
                                                                                                                            said Philip Collins, the author
                                                                                                                            and speechwriter for former
                                                                                                                            British Prime Minister Tony Blair.
                                                                                                                            Appearing on an Intelligence
                                                                                                                            Squared panel called “Words that
                                                                                                                            Changed the World,” Mr. Collins
                                                                                                                            argued that the perfect context
PHOTOGRAPH: MILITARY HISTORY COLLECTION / ALAMY STOCK PHOTO

                                                                                                                            for Mr. Churchill’s grave tone
                                                                                                                            and tenor arose only when he was
                                                                                                                            in his 60s, and serving as British
                                                                                                                            Prime Minister amid the Nazi
                                                                                                                            invasion of western Europe.
                                                                                                                               Of Mr. Churchill’s speeches
                                                                                                                            in 1940, Mr. Collins said, “What
                                                                                                                            gives them their real gravity is the
                                                                                                                            fact that the peril is real.”
                                                                                                                               For me and for others who
                                                                                                                            work with words and who love
                                                                                                                            the Churchill legacy, Mr. Collins’
                                                                                                                            lesson is worth remembering. If
                                                                                                                            we try to emulate the great orator
                                                                                                                            on behalf of a brand or product,
                                                                                                                            we could succeed – and sound as
                                                                                                                            cartoonish as Mr. Churchill did at
                                                                                                                            that Oldham event.

                                                              b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8                                             7
The WORDS Issue - Brunswick Group
SPOTLIGHT

   That isn’t to say Mr. Churchill
isn’t worth studying for routine
tips about words and writing.
“Short words are the best, and the
old words best of all,” he said.
   In an unpublished 1897
piece called “The Scaffolding           The point of corporate                                                              tell it as often as needs be – but
of Rhetoric,” Mr. Churchill             communications is                                                                   repeat the same message on the
identified what he thought              not to entertain, but to                                                            same facts. There is no need to
were the principal elements of          tell the truth                                                                      improvise, nor to elaborate. As
                                                                                                                            pressure rises, the same truth

                                        Exacting HONESTY
a great speech: correctness of
diction, rhythm, accumulation of                                                                                            can be repeated. This is now
argument and analogy.                                                                                                       commonly done, for example, in

                                        T
   Deliberate writers will also take          he leader of a public                                                         corruption cases.
particular comfort in knowing                 company has a duty to                                                             “The Board will not allow
that Churchill was slow. He                   inform the public of material                                                 corrupt behavior in this company
estimated one hour of work for          events that an investor, actual                                                     and will sort it out at once,” is a
every minute of a speech.               or prospective, would consider                                                      typical example. This statement
   Obviously, those traits alone        significant in deciding whether                                                     is fact. It tells the market what
don’t account for his brilliant flair   to buy or sell the shares. He or                                                    the view of its Board is, and
with words and thankfully he            she must tell the truth – and                                                       shows their determination to
offers other hints. As a film-maker,    tell it as soon as is reasonably                                                    deal with it.
I’m especially interested in how        practicable. He has no duty                                                             It is tempting to shift from
he described his writing style as       to spin, nor to comment, nor                                                        the provision of necessary
a “rapid succession of waves of         entertain, although in the                                                          information material and
sound and vivid pictures.”              pressure of the moment, many                                                        useful to the market and, under
                                        go down this path.                                                                  pressure, stray into the realms

  “Short words are                          The audience, in the form
                                        of the media, have much more
                                                                                                                            of entertainment – “feeding the
                                                                                                                            beast” may be the function of the
the best, and the old                   freedom. They can comment,
                                        they can entertain, they can
                                                                                                                            media, but it is not the function
                                                                                                                            of the company.
  words best of all”                    write, or broadcast, from a point
                                        of view: left or right, capitalist or
                                                                                                                                The CEO is concerned with
                                                                                                                            what the public needs to know.
         Winston Churchill
                                        communist, young or old. Some                                                       He may wish to elaborate
   One hopes that circumstances         public-service broadcasters have                                                    and expand, according to his
never arise to emulate Prime            duties imposed by the state; the                                                    temperament, but he would do
Minister Churchill in his               BBC, for example, has a duty to                                                     well to always bear in mind the
moments of greatness. The most          be “impartial” in its coverage. But                                                 questions, “Am I informing or
eminent Churchill historian, Dr.        while many in the private media                                                     am I entertaining?” and “If I
Andrew Roberts, says, “An awful         strive mightily for accuracy and                                                    comment, why do I comment?”
lot of people thought that it was       have strong ethical standards,                                                          One last word – on apologies:
impossible to beat the Nazis, yet
what Winston Churchill did, by
                                        they are entitled to select what           It can be hard to                        When disaster strikes, an apology
                                                                                                                            is often necessary and usually
                                        they report, and decide upon
constantly putting Britain’s peril      which particular facets in the           stick to the mantra                        welcome. It shows ownership,
in the greater historical context                                                                                           courage and sympathy. It need
of other times that Britain had
                                        diamond of truth they wish to
                                        shine their light.                          of “FACTS ONLY”                         not become an admission of legal
nearly been invaded, but had
been ultimately successful, he
                                            A chief executive has no such
                                        luxury. He has to tell it like it       in a fast-developing,                       liability; lawyers’ fears in this area
                                                                                                                            are overdone.
managed to tell the British people
that this could happen again.”
                                        is, and dangers surround him
                                        if he launches into the areas of
                                                                                      unexpected                                One can be very sorry that
                                                                                                                            something has happened,
   Or, as US President John F.
Kennedy said of Mr. Churchill:
                                        comment or entertainment.
                                        “A storm in a teacup,” “a minor
                                                                                    and unwanted                            whether an explosion or a share
                                                                                                                            price collapse; saying sorry
“He mobilized the English
language and sent it into battle.”
                                        incident,” “a forgivable error” can
                                        be claimed by the commentators,
                                                                                        situation                           and expressing sympathy with
                                                                                                                            the victims is a proper human
Churchill’s greatest legacy may         but less easily by the miscreant.                                                   instinct. Sympathy and sorrow
                                                                                                                                                                       ILLUSTRATION: SERGE BLOCH

be his assurance that victory can       It can be hard to stick to the          straightforward. First, find                and a determination to put
be achieved against all odds. As        mantra of “facts only” in a fast-       the truth. (This is not easy in             things right are not the same as
Churchill himself once put it,          developing, unexpected and              complex organizations that have             professing guilt. Apologies need
“Never flinch, never weary,             unwanted situation.                     lost their way.) When the truth             not be about fault or liability –
never despair.”                             Viewed this way, however,           has been found, if it is materially         they are about empathy.
Sonal R. Patel is an Executive          communication becomes                   different from market knowledge             Rob Webb QC is a Brunswick Senior
Producer for MerchantCantos.            much simpler; the rules are             or perception, tell it; tell it all and     Adviser based in London.

8                                                                                                               b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8

The WORDS Issue - Brunswick Group
global economic alignment.
                                                                                                                                                                                           Between 2004 and 2014, Sub-
                                                                                                                                                                                        Saharan Africa became the world’s
                                                                                                                                                                                        second-fastest-growing region
                                                                                                                                                                                        after Asia Pacific, driven in large
                                                                                                                                                                                        part by the voracious demand
                                                                                                                                                                                        for natural resources created by
                                                                                                                                                                                        China’s rapid industrialization.
                                                                                                                                                                                        However, structural changes – the
                                                                                                                                                                                        direct result of political shifts
                                                                                                                                                                                        toward democratic accountability
                                                                                                                                                                                        and good governance – played a
                                                                                                                                                                                        critical role.
                                                                                                                                                                                           Applying these trends across
                                                                                                                                                                                        broad sections of the continent
                                                                                                                                                                                        would be an oversimplification.
                                                                                                                                                                                        Among the Eurasia Group’s top
                                                                                                                                                                                        10 global risks for 2018 is rising
                                                                                                                                                                                        terrorism in Africa, with the
                                                                                                                                                                                        Western powers increasingly
                                                                                                                                                   Cape Town’s Table Mountain
                                                                                                                                                                                        distracted by their own domestic
                                                                                                                                                   carries its “table cloth” of
                                                                                                                                                   clouds – a sign, legend has it,      politics. Among the best
                                                                                                                                                   of a smoking contest between         performing economies on the
                                                                                                                                                   a local pirate and the Devil.        continent, Ethiopia and Rwanda
                                                                                                                                                                                        aren’t exactly model democracies.
                                                                                                                                                                                        But they are predictably governed

                                                               AFRICA bucks                                  of defense. Yet early evidence
                                                                                                             suggests that João Lourenço,
                                                                                                                                                   risk for inbound mergers last year
                                                                                                                                                   was almost exclusively due to the
                                                                                                                                                                                        and focused on trying to
                                                                                                                                                                                        prioritize economic development

                                                               the political                                 technocratic general and newly
                                                                                                             elected president, deserves his
                                                                                                                                                   most sophisticated democracy on
                                                                                                                                                   the continent: South Africa.
                                                                                                                                                                                        over political squabbling.
                                                                                                                                                                                           However, in key economies,

                                                               risk trend
                                                                                                             corruption-free reputation –              South Africa accounts for        private markets are growing
                                                                                                             almost immediately he pushed          nearly two-thirds of Africa’s M&A    and thriving. While the decade
                                                                                                             back against military cronyism        activity by value and about half     of growth was not driven by

                                                               S
                                                                     ociologist daniel bell,                 and nepotism.                         by volume. Political uncertainty     manufacturing, early signs show
                                                                     writing in the 1950s about                  In Liberia, the winner in         brought inbound deals by             it may be on the rise, aided
                                                                     mid-20th century ideologies,            the country’s first democratic        volume down 45 percent in the        again by China’s expanding
                                                               observed, “the old passions                   presidential election invited         first quarter of 2017 – though       appetite. Combined with
                                                               are spent.” That turns out to                 members of the losing party to        measured by value, that activity     Africa’s technology leapfrogging
                                                               be wrong, as recent political                 join him in a unity cabinet. Africa   was up significantly.                in areas such as fintech and
                                                               contests for the souls of major               is full of surprises.                     The hype about South Africa’s    communications, this might just
                                                               western societies shows. The                      Political risk, once considered   institutional arrangements           sustain the continent’s promise as
                                                               brutal rebellion against liberal              purged everywhere but in Africa,      is proving warranted. This is        the world’s next major market.
                                                               values and globalization in major             is for the third year the primary     encouraging and should help the      Itumeleng Mahabane is a
PHOTOGRAPHS: DAN ROWLANDS / TOP, ROBERT MUCKLEY/GETTY IMAGES

                                                               Western democracies is a potent               threat to global trade. But across    region be more resilient to inward   Partner and Head of Brunswick’s
                                                               reminder that societal change is              Africa, the significant political     investment at a key moment of        South Africa office.
                                                               a predictable force – constructive
                                                               change is not.
                                                                   African countries are doing                                                      HIGH-TECH MARKETING
                                                               their own up-ending of the world              SANDWICH SIGN goes viral               has been humbled recently
                                                               view, but landing in a surprisingly           by the good old-fashioned sandwich board. Propped on a
                                                               more positive posture. Last year,             sidewalk or hung from a human being, the classic ad form hit
                                                               Zimbabwe saw something as close               peak popularity in the 19th century, then faded into irrelevance.
                                                               to a legal coup as you can get –                Until early this year, that is, when a lowly sandwich board
                                                               and suddenly, a place that pretty             outside a Denver coffee shop made national headlines, including
                                                               much everyone had written off                 on the front page of The New York Times. Shared widely on
                                                                                                             social media, the board’s message – “Happily gentrifying the
                                                               is on an all-out charm offensive
                                                                                                             neighborhood since 2014” – drew hundreds of gentrification
                                                               with Western investors.
                                                                                                             opponents to the coffee shop, temporarily forcing its closure.
                                                                   In Angola, many were cynical                In Manchester, England, meanwhile, a sandwich board outside
                                                               about elections and the transition            a café noted that an online reviewer had criticized its porridge.
                                                               of political power from a colonial            The board made national news by inviting passers-by to give the
                                                               revolutionary leader to his                   disparaged porridge a try. Lesson: A punchy message can break
                                                               comrade in arms and minister                  through the limits of any medium.

                                                               b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8                                                                                                       9
The WORDS Issue - Brunswick Group
SPOTLIGHT

Brexit remains messy at                   Depending on the manner
best and its costs,                    of its departure, Britain faces an
unclear, says Brunswick                economic or a political price.
Geopolitical’s Pascal Lamy             The more the UK leaves the EU,

W
         e’re approaching the          the steeper the economic price
         two-year anniversary of       tag. A softer withdrawal reduces
         the Brexit vote.              economic costs, but increases
    And still the mechanics of how     political ones. Britain can, of
the UK will leave the EU, and at       course, leave and negotiate new
what cost, are unclear and hotly       trade agreements. But can they
debated. I expect we’ll see more       do better with a market of 60
talk than progress for a long while.   million consumers than they
    I’ve compared the UK trying        did in a market of 500 million
to leave the EU to a chef trying to    consumers? I’m not so sure. In
remove an egg from an omelette         trade negotiations, you gauge
that’s been stirred since 1973 –

                                       A painful SEPARATION
difficult, frustrating and almost
certainly messy.
    As someone who has been
 in trade negotiations for more
than three decades, it is difficult    the weight of a market – making
to overstate the technical and         more concessions for a large
regulatory challenges that             market than a small one.
Brexit poses – challenges that            Exiting enough to satisfy
are further complicated by             Brexit supporters, but not
political calculations.                so much that it damages the
    Take financial services. How       British economy – that’s a
they’ll be regulated between the       delicate compromise, and one
UK and EU is a key part of the         that doesn’t appear to be on the
Brexit discussion, but I doubt         table in London. It might take
will be part of any trade              something akin to a political
negotiation. So even if a trade        spasm in the UK before such a        “more complicated,” he said.              scenario that should keep CEOs
negotiation is reached – an            compromise gains real traction.      Neither metaphor is perfect, but          awake at night on both sides of
ambitious goal in and of itself           Rather than a decades-old         at least the professor’s offers the       the Channel.
– how banks can operate and            omelette, a German professor         hope of a smooth landing.
                                                                                                                      Pascal Lamy is a Principal at
firms will be regulated remains a      equated the complexity of the            A hard one, which                     Brunswick Geopolitical, and former
separate issue to be resolved and      UK leaving the EU with the first     unfortunately cannot be totally           Director General of the World
then implemented.                      Moon landing – only Brexit was       excluded at this stage, is the            Trade Organization.

                                                                            SWEARING
                                                                                                                      system that broke global banking,
                                                                                                                      but for bad language.
                                                                                                                         Despite the aversion to
                                                                            Are curse words an                        swearing, evidence suggests it can
                                                                            unforgivable scourge or a                 help teams bond. Far from artless
                                                                            healthy way to build trust?               and vulgar, research shows that

                                                                            I
                                                                               n her book swearing is good            swearing in small groups demands
                                                                               for You, Dr. Emma Byrne argues         social skills to express differences
                                                                                                                      between teams and nuances                  ILLUSTRATIONS: LEFT, SERGE BLOCH; TOP, FABIO CONSOLI
                                                                               that new research reveals how
                                                                            we might be better off to invite          specific to each member’s role.
                                                                            profanity into the office. But               In addition, Dr. Byrne’s
                                                                            she’s also clear that trying to           research shows swearing reflects
                                                                            implement a pro-swearing policy           on credibility: The greater the
                                                                            will be an uphill battle.                 rate of swearing, the less likely the
                                                                                Dr. Byrne tells how during            person was to be dishonest.
                                                                            the 2008 crash a Goldman Sachs               Ultimately, there’s no simple
                                                                            senior manager described a sub-           answer. Though it risks giving
                                                                            prime mortgage transaction in             offense, it seems that at the right
                                                                            an email as “one shitty deal.”            moment, a well-turned expletive
                                                                            When the emails were released             can work wonders.
                                                                            to the public, Goldman Sachs              Laura Templer is Content
                                                                            apologized – not for supporting a         Production Manager in London.

10                                                                                                        b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8

WORDS
                                                                                                                                      INTRODUCTION

                                                                                             revival of Western economic prowess. And our researchers
                                                                                             at Brunswick Insight reveal what people really hear when a
                                                                                             company says, “No comment.”
                                                                                                We also show how even great writers like Winston
                                                                                             Churchill or Ernest Hemingway found it hard to choose
                                                                                             the right words. Churchill, winner of the Nobel Prize in
                              Welcome to the Words edition of the Brunswick Review,          Literature, put one hour of work into every minute of a
                              in which we illustrate the power of words to promote           speech. Hemingway rewrote the last page of “A Farewell
                              economic and social progress.                                  to Arms” 47 times. The secret behind virtually every great
                                 In these pages we trace Singapore’s status as an            writer and speaker is a team of brilliant editors.
                              economic star to its decision in 1965 to make its official        For anyone preparing a spoken or written
                              language English – even though few residents back then         communication, a basic recommendation is to identify
                              spoke it. We show how one man started a linguistic             the target audience. But Mark Palmer, Brunswick’s US
ILLUSTRATION: EDMON DE HARO

                              revolution by inventing the hashtag. We offer tips from        Managing Partner, adds a chilling coda. It comes from his
                              former US Senator Christopher Dodd on how to prepare           experience as the former spokesman for Enron: Never forget
                              and deliver a great speech. Cambridge’s best-selling           that your audience may include the Department of Justice.
                              classicist Mary Beard talks to us about lingering restraints      Best to lead by this credo: Words matter, always.
                              on the voices of professional women. Economist Dambisa
                              Moyo explains why words – her fourth book is currently
                              on best-seller lists – offer the best hope for starting a      NEAL WOLIN, CHIEF EXECUTIVE OFFICER
O
                                    n october 25, 2001, the phone rang on the desk of mark palmer,

MARK                                Vice President of Communications for Enron. The caller was a Wall
                                    Street Journal reporter inquiring about an Enron special-purpose entity
                                    called Chewco. • “Never heard of it,” said Mr. Palmer. Promising to look
                                    into Chewco, he said he would get back to the reporter. • During his first
                         five years as Enron spokesman, Mr. Palmer had scrambled to accommodate ever-
                         mounting interview requests from journalists enthralled with the innovation,
                         the boldness and the incredible growth of Enron. During that time, the value of
                         Enron stock more than quadrupled to $90 a share. • But 2001 brought a series of
                         setbacks: Short sellers planted skepticism in the media, the company’s charismatic
                         CEO abruptly resigned and Enron took an unexpected $1.2 billion charge against
                         equity. The stock sank to below $20 a share. • As he set out to gather information
                                                                    about Chewco, Mr. Palmer still believed

                  PALMER
                                                                    in Enron’s capacity to recover. He still
                                                                    believed in the leadership of Kenneth Lay,
                                                                    the company’s long-time chairman who
                                                                    had recently re-assumed the title of CEO.
                                                                    As for Chewco, Mr. Palmer expected to
                                                                    get a quick answer and move on to his
                                                                    next task. • But within moments, he
                                                                    learned from an Enron executive that
                                                                    Chewco might be a deeply flawed entity.
                                                                    Enron executives investigating the files
                                                                    of Andy Fastow, the company’s recently
                                                                    departed CFO, were finding that Fastow
                                                                    might have improperly structured
                                                                    Chewco to circumvent accounting rules
                                                                    and enrich himself. If this suspicion were
                                                                    true, Chewco’s obligations would turn
                                                                    into Enron debt, further destabilizing
                                                                    the company’s finances and destroying
                                                                    what was left of its reputation. The news
                                                                    floored Mr. Palmer. • Exercising an
                                                                    authority that he arguably didn’t wield,
                                                                    Mr. Palmer called for an immediate
                                                                    gathering of top management, including
                                                                    Mr. Lay. So distraught was he that on
                                                                    the way to that meeting Mr. Palmer

FORMER ENRON SPOKESMAN                                            ON TELLING THE TRUTH                           ILLUSTRATION: NIGEL BUCHANAN

12

MARK PALMER

                  made a detour to the bathroom to vomit, a delay                During the company’s fall, Mr. Eichenwald
                  that cost him a seat at the meeting he had called.          covered Enron for The New York Times. “Mark
                  So Mr. Palmer sat on the floor of a small crowded           Palmer never even approached the line of being
                  conference room. During the meeting, when Mr. Lay           deceptive to me or I think to any reporter,” says
                  failed to immediately grasp the Chewco implications,        Mr. Eichenwald. While covering Enron for the
                  Mr. Palmer took charge by loudly slapping his hand          Times, Mr. Eichenwald said that “If Mark told me
                  on the floor. “I’ll tell you what’s going on, Ken,” Mr.     I was going down a wrong path with my reporting,
                  Palmer shouted at the Chairman and CEO. “The                I would immediately stop. He had that kind of
      AFTER       Wall Street Journal knows more about what’s going           credibility because, conversely, when I was right,
  GOVERNMENT      on at your company than you do!”
                      Then Mr. Palmer demanded, as he had before,
                                                                              he never told me I was wrong. Mark understands
                                                                              that credibility is something you have to build and
 INVESTIGATORS    that Enron hire an independent investigator. This           that the only way to build it is by being honest. He’d
SWARMED ENRON,    time Enron followed his advice.
                      Seventeen years later, Mr. Palmer serves as the
                                                                              always do his best to get an answer and if the answer
                                                                              was ugly he’d give it to you.”
 MR. PALMER LAY   US Managing Partner for Brunswick Group, where                 The Wall Street Journal’s Rebecca Smith and John
  AWAKE NIGHTS    he offers advice on a range of topics, most notably
                  how to navigate a corporate crisis. To that discussion
                                                                              Emshwiller played a significant role in uncovering
                                                                              Mr. Fastow’s secrets. In their 2003 book, 24 Days,
REPLAYING EVERY   he brings a degree of firsthand experience that he          they said they “didn’t think Palmer had ever
COMMUNICATION     wouldn’t wish upon anyone. The son of a Vietnam
                  War Navy attack pilot, Mr. Palmer grew up believing
                                                                              knowingly given them false information.” It seemed
                                                                              obvious “that (Palmer) had been trying to be helpful
 HE EVER ISSUED   that hardship should be embraced, tackled and               and honest.”
  ON BEHALF OF    internalized, rather than just talked about. But the
                  trial he endured as chief Enron spokesman during
                                                                                 A University of Missouri journalism graduate,
                                                                              Mr. Palmer worked as a broadcast journalist before
  THE COMPANY     its spectacular rise and scandalous fall convinced          joining Fina, an oil-and-gas company, as its all-
                  him that Post-Traumatic Stress Disorder is a                around spokesman and marketing guru. He was 35
                  real affliction. Ever since that episode of nausea          in 1996 when a headhunter recruited him to Enron,
                  in the Enron bathroom, his gag reflex has been              a natural-gas pipeline company that was disrupting
                  oversensitive. “Before Enron, I could have been a           the industry by creating a market for trading natural
                  sword swallower. Ever since Enron, if I get just a little   gas. This innovation not only was proving to be
                  bit stressed my gag reflex is hypersensitive,” he says.     profitable but also good for consumers. “Enron
                      The lessons he gleaned from Enron underscore a          had this idea of a gas bank, and it really improved
                  type of risk not always appreciated on the front lines      the natural gas market in the US. It solved the
                  of corporate communications. After government               problem of there being shortages in one market and
                  investigators swarmed Enron, Mr. Palmer lay awake           surpluses in another,” says Mr. Palmer.
                  nights replaying every communication he ever issued            Now, a brilliant Enron executive named Jeffrey
                  on behalf of the company, aware of the potentially          Skilling – instrumental in the gas bank concept
                  criminal implications of a corporate spokesman              – was pushing for deregulation of the electricity
                  knowingly saying anything wrong or misleading.              market, an effort that required approval of both
                      Mr. Palmer passed that test, in the view of the         federal and state regulators. “You had this patchwork
                  media as well as government investigators.                  quilt of crazy regulation where someone in Long
                      It’s not that every communication he ever made          Island might be paying 22 cents a kilowatt-hour for
                  on behalf of the company was accurate. He says, “It’s       power while someone in New Hampshire might be
                  awful to look back on statements that I made based          paying 8. We felt like we could do the same thing
                  on getting an answer from (an Enron executive) and          with electricity that we had done with natural gas –
                  having it end up being wrong.” It’s that the fraud          even out supply and generally lower the price.”
                  at Enron was known to only a few of the energy                 As Enron’s stock rose steadily, Mr. Palmer and his
                  giant’s tens of thousands of employees. “If corporate       team fielded an ever-growing number of interview
                  fraud weren’t limited to particular individuals             requests initially from trade journalists, then from
                  with a particular level of power, then it wouldn’t          the world’s top business publications. “We became
                  be a secret,” says Kurt Eichenwald, whose 700-page          a Wall Street darling, and a media darling. That the
                  masterpiece on Enron, Conspiracy of Fools, conveys          most innovative company in America was a former
                  the shock awaiting those at the company charged             natural gas pipeline company – that was just a great
                  with investigating Mr. Fastow’s deals.                      story,” says Mr. Palmer.

14                                                                                       b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8

80

                                                                                                                                                                                                               70

                                                                                                                                                                                                               60

                                                                                                                                                                                                               50

                                                                                                                                                                                                               40

                                                                                                                                                                                                               30

                                                                                                                                                                                                               20

                                                                                                                                                                                                                  10

                                                                                                                                                                                                                  0
                                                                                                                                                                                                                       2015 2016 2017

                    Mark Palmer (bottom
                    right) and his much-
                    reduced staff following
                    the Enron bankruptcy in
                    December 2001. Their
                    good humor here belies
                    the difficult times they
                    were negotiating.

                                                                                                                                              An admirer of both Mr. Skilling and Mr. Lay,

                     From $90 to $0
                                                                               ENRON’S STOCK PRICE
                                                                                                                                           and a believer in their mission, Mr. Palmer said he
                                                                               from August 2000
                                                                               to January 2002                                             “bought into the mission, and became like a lawyer                  Trust
                                                                                                                                                                                                               more
                                                                                                                                           who zealously defends his client.”                                  16%
                                                                                                                                              As Enron became more a trading company than Unsure
                                                                                                                                           an energy concern, its accounting grew increasingly                  3%
                                                                                                                                           complex, puzzling some analysts and investors.
                     $100                                                                                                                  But Enron’s deals and books had the blessing of
                        90                                                                                                                 white-shoe lawyers and a blue-chip accounting
                        80                                                                                                                 firm, Arthur Anderson. Meanwhile, Enron’s critics
                        70                                                                                                                 often had their own agendas, as short sellers or foes
                        60                                                                                                                 of deregulation, and Mr. Palmer pushed back hard.
                        50
                                                                                                                                           “As spokesperson, I zealously Management
                                                                                                                                                                          communicatedBudget       our          Technolo
                                                                                                                                           message,” he says.
                        40
                                                                                                                                              “When you’re the spokesman of     36%a company70%                     52%
                        30
                                                                                                                                           whose success played out on the free and open
                        20
                                                                                                                                           market, a company that’s the darling        of WallCiteStreet
                                                                                                                                                                           Of cybersecurity         inadequate   Of threat ale
                        10                                                                                                                 and of the media, you develop aprofessionals
                                                                                                                                                                              level             funding for
                                                                                                                                                                                       of confidence             are imprope
                                                                                                                                                                            have a direct      cybersecurity      prioritized b
                                                                                                                                                                               reporting        technology        systems an
                         0                                                                                                                 that becomes arrogance,” he says.line “Looking     back,       it’s must
                                                                                                                                                                                  to the        or security           be manu
                        8.23.00    10.23.00 12.23.00     2.23.01    4.23.01    6.23.01       8.23.01       10.23.01      12.23.01                                                CEO                 talent       reprioritize
                                                                                                                                           shocking how full we were of ourselves.”
                                                                                                                                                                            Visibility      Investment Accurac
                                                                              Data is compiled from Enron Securities Litigation Web Site      The beginning of the end came in the spring
                    As short sellers became            unexpected resignation                  when CFO Andrew Fastow
                                                                                                                                           of 2001 when Fortune ran a story asking whether
                    suspicious about how               of CEO Jeffrey Skilling in              resigned under pressure                     Enron was overpriced. The story pointed out that
                    Enron made its profits,            August of that year, shook              one day after CEO Ken                       few analysts understood how Enron actually made
CHART: PETER HOEY

                    the stock of the much-             investors, whose fears                  Lay expressed confidence                    money. The stock began to fall. In August, the stock
                    admired company                    seemed vindicated when                  in him. The end came
                    began to fall. A Fortune           Enron took a $1.2 billion               when lenders lost faith,
                                                                                                                                           took a steep dive when Mr. Skilling, CEO only since
                    article in the spring of           charge against equity                   ultimately forcing Enron                    February, resigned, citing personal reasons. Then
                    2001, followed by the              in October. It didn't help              into bankruptcy.                            The Wall Street Journal began questioning the

                    b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8                                                                                                                                     15
MARK PALMER

                    accounting behind certain limited partnerships set         turned up ever-grimmer details about its slipshod
                    up by Mr. Fastow.                                          financial structures and in many cases improper

40
      “KEN,            As the stock continued to slide, Mr. Palmer felt
                    responsible. Many of his superiors told him that
                                                                               accounting, Mr. Lay kept exhorting Mr. Palmer to
                                                                               somehow improve media coverage. That prompted
                    Enron was suffering only a perception problem,             the financial team that had replaced Mr. Fastow
                    initiated by short sellers and perpetuated by              to sit Mr. Palmer down and show him what they
                    journalists who did not understand the company’s           had discovered to be the true state of affairs: The
                    complex accounting methods.                                company had little in the way of cash flow and the
                       When the WSJ persisted, raising questions               value of its equity paled beside a potentially $40
                    about the limited partnerships, Mr. Palmer asked           billion load of debt triggered by its falling stock
                    Mr. Fastow to provide an interview about them.             price and lowered credit ratings. For Mr. Palmer,
BILLION DOLLARS     Mr. Fastow refused, yelling on the phone that the          that horrible news brought relief.
 IN OBLIGATIONS     idea was idiotic and questioning Mr. Palmer’s
                    competence as a spokesman. “Looking back, I realize
                                                                                  “I had thought this was my fault. I had thought
                                                                               that all of our 401(k)s were going to zero because I
     AND NO         that Andy Fastow screaming at me should have been          couldn’t convince the media that they were wrong,”
 CASH FLOW IS A     a tell-tale sign,” says Mr. Palmer. “I know that dogs
                    don’t bark because they’re going to bite you. They
                                                                               he says. Later that evening when Mr. Lay again
                                                                               beseeched Mr. Palmer to silence the WSJ, Mr. Palmer
  PR PROBLEM,       bark because they’re afraid.”                              replied, “Ken, $40 billion in obligations and no cash
   BUT BAD PR          To make matters worse, Mr. Palmer recalls,
                    Mr. Lay told him, “Mark, what are you doing to get
                                                                               flow is a PR problem, but bad PR didn’t cause it and
                                                                               good PR can’t fix it.” As Mr. Palmer puts it now, “You
DIDN'T CAUSE IT     the Journal to quit writing these stories? They’re         can’t spin your way out of trouble you acted your
    AND GOOD        killing us.”
                       Even as the SEC announced an investigation
                                                                               way into.”
                                                                                  Enron’s falling stock price was creating havoc
 PR CAN’T FIX IT”   into Enron, and as the company’s own executives            at a company that had heavily used its shares as

                                   KURT EICHENWALD ON WRITING “CONSPIRACY OF FOOLS”
                    Enron’s demise inspired more than                                                  Every document and every
                    a dozen books. The best of them is                                                 description of an event from those
                    arguably the best business book                                                    records is then listed in a timeline,
                    ever written: Kurt Eichenwald’s                                                    which usually runs between 500
                    Conspiracy of Fools. Mr.                                                           and 1,000 pages long. Each entry
                    Eichenwald, who had covered Enron                                                  describes which document in
                    for The New York Times, describes                                                  which binder contains the cited
                    here his book-writing process.                                                     information and on which page.
                    His fifth book, A Mind Unraveled,                                                      But documents aren’t a story
                    will be published in October by                                                    – that comes from people who
                    Ballantine Books.                                                                  experience the events. For each
                       In the 12th hour of our interview,                                              of my books I have interviewed
                    the former Enron executive                                                         at least 100 people, often for an
                    described the morning he climbed                                                   exhausting number of hours. My
                    out of bed and drove to the office                                                 sessions with Ken Lay, the late
                    to face the unraveling of the energy                                               Enron chairman, lasted more than
                    giant. Responding to my question,                                                  70 hours. Then the information is
                    he said a digital alarm clock                                                      entered into the timeline, with each
                    awakened him.                           that reads like a novel, but               interview subject listed under a
                       “What color were the clock’s         the details that can simply be             code name.
                    digits?” I asked.                       imagined by a fiction author                   Ultimately, I stitch all of the
                       He threw up his hands. “Why do       all have to come from either an            information in the timeline into
                    you need to know that?”                 interview or a document.                   a first draft that can run to 2,000
                       To portray the kind of visual            The main story emerges                 pages. Once that is finished, I
                    image common in fiction, I often        from hundreds of thousands of              read it and often, for the first time,
                    have to ask questions that can          documents I obtain. An assistant           discover what the book is about.
                    seem absurdly detailed. What type       I call “the document wrangler”             Then I cut hundreds of pages to
                    of sandwich did you eat? In which       places all of the records in               produce a final product that is rich
                    pocket did you carry your wallet?       chronological order, then sorts            in detail, such as the color of alarm
                    My goal is to write nonfiction          them into hundreds of binders.             clock digits.

16                                                                                            b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8

Former Enron chairman
                                       and CEO Ken Lay, center,
                                       and his attorney Mike
                                       Ramsey in 2006, about
                                       to enter a courthouse in
                                       Houston, Texas, for the
                                       second day of a trial on
                                       fraud and conspiracy
                                       charges against Mr. Lay.

                                                                           collateral, and rising doubts about the company’s      accounting firm Arthur Anderson collapsed under
                                                                           financial integrity prompted its trading partners to   the weight of an Enron-related obstruction-of-
                                                                           insist upon more and more onerous terms. Growing       justice conviction that was reversed years after the
                                                                           counterparty distrust of Enron and its CFO forced      closing of the firm.
                                                                           Mr. Lay to fire Mr. Fastow. Because that action came      All the while, Mr. Palmer and his team continued
                                                                           only a day after Mr. Lay had publicly expressed        running the Enron communications department.
                                                                           confidence in his CFO, the firing hardly calmed        After Enron filed for bankruptcy protection in
                                                                           nerves, inside or outside the company.                 late 2001, Mr. Palmer’s communications staff got
                                                                              Then came the Wall Street Journal call asking Mr.   slashed to seven from 27. Since August, that team
                                                                           Palmer about a partnership called Chewco. It turned    had handled the resignations of the CEO and
                                                                           out that some of the structures Mr. Fastow and         CFO, new president and CEO announcements,
                                                                           his co-conspirators had set up were being used to      Sept. 11-related announcements, a $1.2 billion-
                                                                           disguise bad business decisions, create phony income   charge against equity, news about Enron credit
                                                                           and funnel money to Mr. Fastow and other cronies.      crunches and now bankruptcy, among other
                                                                              In the days, weeks and months that followed,        big announcements. The remaining seven team
                                                                           Enron filed for bankruptcy protection, Mr. Lay         members worked around the clock often without
                                                                           left both the board and then the company under         going home, fielding as many as 400 calls a day.
                                                                           pressure from creditors, Congress ran rote show           Mr. Palmer slept on a boardroom couch while
                                                                           hearings, and federal prosecutors investigated and     another member of his team slept under her desk.
PHOTOGRAPH: DAVE EINSEL/GETTY IMAGES

                                                                           then brought criminal charges against Messrs.          He showered in the company gym and saw his wife,
                                                                           Fastow, Skilling and Lay, in addition to dozens        Cozy, when she arrived to bring him fresh clothes. In
                                                                           of other Enron executives forced to plead guilty       the last three months of that year, he lost 35 pounds.
                                                                           to crimes rather than risk defending themselves.          Recruited to take charge of Enron a month
                                                                           How much Mr. Lay and Mr. Skilling knew about           after its bankruptcy, turnaround specialist Steve
                                                                           Mr. Fastow’s crimes remains unclear, but both had      Cooper encountered “the most catastrophic, most
                                                                           sold massive amounts of Enron stock ahead of the       investigated, most chaotic scene you could imagine.
                                                                           company’s downfall, leading to zero objectivity        Enron was being investigated by virtually every
                                                                           among potential jurors in the Houston area. The        arm of the US government – the DOJ, SEC, FTC,

                                       b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8                                                                                           17
MARK PALMER

Department of Energy – and sued by dozens of                in Vietnam, describe the ways he and his fellow
states’ attorneys general. It had all the elements that     prisoners had stayed positive – by seeing how
attracted massive scrutiny by the press.”                   long they could stay conscious during torture, by
   Fielding all that was Mr. Palmer. “He brought            communicating with each other via a kind of Morse
order and thoughtfulness and transparency to what           Code, by memorizing the name and capture date of
was a massive shitstorm,” says Mr. Cooper.                  every other prisoner, and honoring a system wherein
   The psychological toll on Mr. Palmer and his staff       the longest held would be the first released.
was tremendous. In a matter of weeks, the company              In that way, Mr. Palmer turned the months-long
they represented had gone from admired to reviled.          slog into a kind of contest. He began to pride himself
A typical experience for them was when Mr. Palmer           on making sound decisions despite fatigue and
learned that his daughter’s high-school journalism          anxiety. Long accustomed to feeling pressure from
teacher stood at the front of class and referred            both his superiors and the media, he saw clearly now
to all Enron executives as “criminals.” For years           what he had known all along, that his only duty was
accustomed to fielding requests from journalists            to the truth, even if the truth was, “I don’t know.”
competing to write front-page features, the team            Tackling one phone call at a time, one day at a time,
now faced a prosecutorial press that felt betrayed.         he began to feel more than equal to the task. “In a
   As requests for information intensified, Mr.             crisis like that, what matters is mindset – somehow
Palmer and his team had little of it to give. Their         maintaining a productive, positive mindset,” he says.
first priority was to avoid giving bad information,            Recalling his insistence that the company hire an
which increasingly meant they had no information            outside investigator, Mr. Palmer wishes he’d also
to give at all. At one point, Securities and Exchange       demanded that it hire a psychological consultant
Commission Chairman Harvey Pitt became irate                – ideally one with crisis expertise – to help his
when he read in a news story that Mr. Palmer                staff and others at Enron headquarters through
declined to answer reporters’ questions on grounds          the tumultuous weeks before and after Enron’s
that Enron was being investigated by the SEC.               bankruptcy. “Companies in a crisis hire workout
   “Harvey Pitt was furious, saying an SEC                  specialists, and they hire financial advisers, and all
investigation should never be used as an excuse for         of that’s vital, but the mindset of those advisers
not telling the truth,” Mr. Palmer recalls. “But I wasn’t   is action, action, action. That doesn’t address the
hiding the truth. We simply didn’t know the truth.”         problem of shame and anxiety and fatigue in a
   At times, Mr. Palmer wondered how long he and            culture that used to feel proud, and wants to feel
his staff could go on. Issuing one bad bit of news          proud again,” he says.
after another, amid a government investigation                 Mr. Palmer believes that a serious crisis can’t be
that would put all of their previous work under a           managed according to any pre-conceived playbook.
spotlight, the communications staff was plagued             But he believes it offers an enormous opportunity
by fatigue, depression and anxiety. It didn’t help          for leaders to negotiate the unforeseen in a way that
that their retirement funds were stuffed with now-          inspires and encourages employees, investors and
worthless Enron stock.                                      the media. Never is a leader more closely watched or
   Once, Mr. Palmer called his father to ask if he          more widely heard than during a crisis, Mr. Palmer
should quit. His father, the stalwart Naval aviator         notes, adding that what all stakeholders seek from
and former TWA captain, noted that no one was               a leader at such moments is competence, diligence               MARK PALMER
shooting at him. “My father said, ‘I think you’re           and honesty, especially honesty.                                Brunswick’s US Managing
really good at what you do. If you stick it out, you’ll        Mr. Palmer believes that his experience leading              Partner, Mark Palmer
probably learn a lot. You’ll probably be even better.’”     during crisis gave him extraordinary insight into               leads the firm's Dallas
                                                                                                                            office. He has 30 years of
   For Mr. Palmer, a turning point came one day             how to avoid or limit such debacles, and the key                global experience in
when his boss, Steve Kean, said, “You know what? At         factor is honesty. Given the very human desire to               corporate, crisis and
                                                                                                                            litigation, and financial
the end of the day, what we have to do is be proud          please one’s boss, and given the boss’s very human
                                                                                                                            transactions. Previously,
of the way we conducted ourselves. We’ve got to be          desire for positive reports, how can leaders create             he was VP of corporate
able to tell our grandchildren that we did the right        a culture where their workforce isn’t afraid to tell            communications and
                                                                                                                            organizational
things.” Inherent in that thought was the promise           even the most unpleasant truths? “I got my Ph.D. in             effectiveness at Sysco
that this crisis would end. It wouldn’t last forever.       that at Enron,” says Mr. Palmer.                                Corporation. From 1996 to
Nothing does. Mr. Palmer remembered listening                                                                               2004, he served as
                                                            kevin helliker is Editor-in-Chief of the Brunswick              Enron’s managing director
to a former squadron-mate of his father’s, a man            Review. He is a Pulitzer Prize-winning journalist, who          and senior vice president
who had spent seven years as a prisoner of war              spent nearly three decades at The Wall Street Journal.          of global communications.

18                                                                                                     b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8

YES Comment L                                                                                  itigants entering a courtroom, where
                                                                                                                                 their case will unfold before a judge or jury,
                                                                                                                                 are often accompanied by armies of lawyers
                                                                                                                                 wielding reams of briefs, boxes of exhibits,
                                                                                                                          and sophisticated legal arguments. But outside the
                                                                                                                          courtroom, these same litigants have traditionally
                                                                                                                          been armed with nothing more than a terse “no
                                                                                                                          comment.” (Research from Brunswick Insight, below,
                                                                                                                          shows what stakeholders think of that response.)
                                                                                                                              Certainly the stakes are high in both arenas. But
                                                                                                                          while thousands of hours go into preparing for the
                                                                                                                          outcome of a court case, the impact of that case on
                                                                                                                          reputation has historically been an afterthought – or
                                                                                                                          a matter on which litigants and their lawyers simply
                                                                                                                          put their heads in the sand.
                                                                                                                              Supporting a legal strategy with a communications
                                                                                                                          plan targeting key stakeholders helps create a
                                                                                                                          narrative that connects with them and frames the
                                                                                                                          issues in a way that makes the legal arguments
                                                                                                                          understandable, and perhaps even appealing.
                                                                                                                              Communications outside the courtroom can be
                                                                                                                          tricky, particularly when a company is fighting on
                                                                                                                          multiple fronts and anything said in one forum can
                                                                                                                          have implications in another. But time and again,
                                                                                                                          we’ve seen that litigants who prioritize the outside
                                                                                                                          world – with its echo chamber of 24-hour news and
                                                                                                                          digital, user-led discussions – better weather the
                                                                                                                          litigation storm.
                                                                                                                          ellen moskowitz, a Partner, leads Brunswick’s US
                                                                                                                          Litigation Practice. She is based in New York.

                                                                                                                PERCENT

                                                                                                                75
                                   When a company                                                                         say “no comment” means a company is
                                                                      BRUNSWICK INSIGHT

                                  59
                                  says “no comment,”                                                                      “more concerned with the bottom line
                                                                      on what people actually                             than doing what’s right”
                                                                      hear when you say

                                                                                                                82
                                                                                                                          say “no comment” means a company
                                                                      “NO COMMENT”                                        knows that answering the question will
                                                                                                                          “damage the company’s reputation”

                                                                                                                77
                                                                                                                          say “no comment” makes them
                                      PERCENT of                                                                          “trust a company less”
                                    Americans hear
                                     that company

                                                                                                                73
                                                                                                                          say “no comment” means a
ILLUSTRATION: FRANZISKA BARCZYK

                                   saying they don’t                                                                      company is “deliberately trying to hide
                                      have a legal                    This data was collected by brunswick
                                                                                                                          something”
                                                                      insight in early March 2018 from a
                                    leg to stand on,                  nationally representative survey of 715

                                                                                                                59
                                                                      US adults. Brunswick Insight provides
                                      and are just                    critical-issues research for market-
                                                                                                                          say “no comment” means a
                                  avoiding admitting                  moving decisions, and combines data-
                                                                      driven counsel with an emphasis on
                                                                                                                          company “lacks strong leadership”
                                     guilt in public                  research and analysis.

                                  b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8                                                                                       19
S
        ince the start of his presidential
        campaign in June 2015, President Trump
        used apologetic language 20 times on Twitter.
        Thirteen of his tweets (65 percent) included
terms that qualified the apology, like “if,” “however,”
or “on the other hand.” The President isn’t alone
in his approach. According to data analyzed by
our team, over a 30-day period in early 2018,
“sorry” or similarly apologetic words appeared
20.4 million times on Twitter – and in one out of
every five instances, “sorry” was followed, either
immediately or shortly afterward, by a single word
that completely undermined it: “but.”
   Harriet Lerner, a best-selling author and clinical
psychologist at Columbia University, believes
there may be no worse word for apologizing. “‘But’
automatically cancels out an apology,” she wrote,
“and nearly always introduces a criticism or excuse.”
Its widespread use in tweeted apologies – more
than 4 million times in that 30-day span – may
explain why a Brunswick Insight survey found that
while 80 percent of Americans expect the CEO to
apologize for a company’s mistake, only 13 percent

#SorryNotSorry
                                                                                         contributed to actors being dropped from movies,
                                                                                         CEOs departing the C-suite and politicians resigning
                                                                                         their offices. Organizations endure, but often with a
                                                                                         different leader at the helm.
                                                                                            So what does a good apology on Twitter look like?
believe that apology is entirely genuine. Even though     It may seem easy                  Platitudes and legal jargon suggest a tweet was
Twitter’s reach is small compared to its social           for an executive               written by a team rather than a leader, which makes
media peers (Twitter has 330 million active users;        or company to                  audiences understandably skeptical. The passive voice
Facebook has 2.1 billion), the platform is designed
                                                          tweet “I’m sorry.”             – “mistakes were made” – or qualifying the apology
for real-time conversation and is heavily weighted                                       implies a leader is more interested in avoiding blame
                                                          What to say with
with influencers, policymakers and journalists,                                          than fixing the problem. Plain writing, with a lot of
making it the channel of choice for most corporate
                                                          the remaining                  “I” and “me” pronouns, is a good place to start.
communications in the aftermath of a mistake. But         271 characters                    Words matter, but behavior and authenticity
with all of the trolls and traffic on Twitter, and with   is the hard part.              matter more. Like a good golf swing, there must be
companies mishandling apologies and still reporting       Brunswick’s                    follow-through. In 2015, Taylor Swift announced a
strong earnings the following quarter, how much           zack condry                    boycott of Apple Music over a one-month trial that
does a well-worded apology on Twitter really matter?      and sparky                     neglected to compensate the artists for that time
   Many of the benefits of a well-coordinated apology     zivin report                   period. Eddy Cue, Apple’s SVP of Internet Software
seem obvious but difficult to quantify: a stronger                                       and Services, responded quickly in two tweets: The
reputation, more credibility with stakeholders, or                                       first said Apple would fix the problem, the second
preventing a bad situation from being much worse.                                        was to Taylor Swift directly, saying “we hear you.”
                                                          sparky zivin, a Partner,
A 2015 study conducted by the Korea Advanced                                             Taylor Swift ended her boycott and, at the time of
                                                          oversees Brunswick
Institute of Science and Technology found timely,         Insight’s Washington, DC       this article, is still with Apple Music.
                                                                                                                                                           ILLUSTRATION: MARK SMITH

well-worded apologies on Twitter “reduced the level       group, which provides             Ms. Lerner writes that any apology should look
                                                          critical issues research for
of negative sentiment” surrounding a mistake –            market-moving decisions.
                                                                                         to convey: “Yeah, I get it; I screwed up. Your feelings
better than the alternative, but not exactly inspiring.   zack condry is a Director      make sense, and I’m taking this seriously.” That’s a
   If large organizations seem to be able to weather      on the digital team, and       good template for executives to start with the next
                                                          also based in Washington,
an apologetic misstep, it’s often a different story       DC. Additional reporting by    time they need to tweet “I’m sorry.” Those two words
for individuals. Couched, toothless apologies have        riley back, an Executive.      matter, but what comes after makes all the difference.

20                                                                                                  b ru n s w i c k rev i ew · i s s u e 1 5 · 2 0 1 8

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