"(T)o say that the individual is culturally constituted has become a truism. . . . We assume, almost without question, that a self belongs to a specific cultural world much as it speaks a native language." James Clifford

Thursday, June 12, 2014

Trading Egalitarian Reputational Capital For First-Class Business: JetBlue Airline

It may sound trite, but managers really do compromise or expunge their company’s reputational capital altogether in order to chase down the additional revenue obtainable from a market segment that had been extraneous to the reputation. If the new advertisements have a Janus-like duplicitousness air, the source is not likely even to admit to the previously long-held principles. Indeed, the contrivance can be discerned from the way in which artful managers use words themselves—stretching them for an intended effect well past their respective meanings and customary usages. Unfortunately, the made-up diction can be contagious in a society that esteems organizational position.

I have in mind Jet Blue’s switch from its egalitarian single-class cabins to the first/coach bifurcated model. Left in the jet-wash is the company’s long-standing principle of egalitarianism, lost in the anticipation of more revenue from business travelers. Jami Counter at a website that includes reviews of airlines suggests that Jet Blue would no longer be “challenged winning their fair share of corporate and business contracts because they didn’t have a true premium experience.”[1] What, pray tell, is a premium experience? How does a true one differ from the mere garden-variety? In the case of JetBlue, the benefits to the business traveler include “the longest, widest flatbed seats” on any route within the U.S., and four “suites”—single-seat “pods” with their own doors.[2] The latter reminds me of the forts my elementary school friends and I used to make in the woods behind the school; each of us would pick a bush and use its base to build a tiny enclosed “fort.” It would seem that adult business travelers have the same instinct.

In any case, we don’t have to look far to see where verbal garbage like “a true premium experience” comes from. Perhaps the experience-warping complimentary “signature drink” before take-off and a “cocktail” before dinner might render experience itself transparent, such that the airline could indeed market “experience” itself. All the same, I would be more interested in the 100 channels on the seat’s 15-inch screen, and whether I could plug my laptop into it as I sit in my little fort as the elongated tin can careens forward at 30,000 feet at 500 miles an hour.

Jamie Perry, the airline’s director of product development, delivered a line as if on cue that the novelty would not be limited to the “Mint,” or first-class” experience; an “effort to reinvent the core cabin”[3]—where “core” is a cover for coach—boils down to bigger seats, power-outlets at each one, and up to 100 channels of television undoubtedly to placate perturbed pre-existing customers accustomed to flying egalitarian. Perry's linguistic over-reach—the larger seats and additional plugs hardly constituting an invention in any sense of the word (and reinvention being an oxymoron, like rebeginning)—points to a certain round-aboutness that is anything but up-front and transparent. 

Behind the "reinvented cabin" is a manufactured shift from the longstanding egalitarian premise to that of all boats rising—just not to the same level. The lack of equivalence is precisely what the fuzzy word-play is meant to blur. That is to say, the crafty wordplay—“core” for coach and “premium experience” for first-class service—dovetails with the wily switch from the long-held principle to one that allows for broader revenue streams. 

I disagree with Counter’s contention that JetBlue did not change its business model in the process; in fact, I would say that the first-class/coach standard fare deprives the airline of the more distinctive model, and thus of the associated reputational capital. To be sure, Counter does acknowledge that the change “could alienate the loyal JetBlue flier who now has to walk past (five) rows of a very premium experience.”[4] There we go again! How exactly does a person walk past an experience? Does a person say, “Hey, guess what—yesterday I was out doing errands and I drove right past an experience!” The response is likely to be, “Time for your medication again, dear.”

In actuality, the coach passengers are to walk past rows of more spacious seating arrangements and larger television screens. Putting the matter thusly, rather than artfully and without concrete substance, makes the cost to the airline’s reputational capital transparent—especially with respect to the loyal (i.e., long-standing) passengers who will of course instantly notice the unpalatable change. Such passengers need only look over at Southwest Airline, whose approach to attracting more business passengers was to expand to big-city airports and offer “business select” priority boarding, a free drink, and extra frequent-flier miles rather than introducing a separate class of seating.[5] That is to say, Jetblue managers could have went with alternatives to the old first-class/coach model. The principles that a company supposedly “stands for” are indeed expendable, particularly when they grind up against an untapped source of revenue.



1. Charisse Jones, “Egalitarian JetBlue Tries Out First Class,” USA Today, June 12, 2014.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ben Mutzabaugh, “Southwest Finds Itself at a Crossroads,” USA Today, June 30, 2014.

Monday, June 9, 2014

On the Toxicity of Ineptitude and Denial: The Case of Wal-mart's Pharmacy

On June 6, 2014, Walmart conducted its annual stockholder meeting under “scrutiny on all fronts.”[1] Revenue at the company’s stores in the U.S. had declined for five consecutive quarters. Walmart was also facing ethical questions over how the company’s executives handled bribery allegations at the Mexican division, as well as on the low wages going to non-supervisory workers (esp. part-timers). In short, the question facing the management was whether the company was being managed by cutting corners, as manifest both in terms on incompetence and unethical conduct. That the shareholder proposal to split off the chair of the board from the CEO did not meet even a preliminary tally of votes suggests that the company would sooner go under than that its management would be held to account.

On the day of the meeting, I happened to be at a Walmart store for what must have been two hours. I had stopped in to pick up medicine only to find that the pharmacy employees had lost my prescription. “You cancelled it and it was handed back to you,” an employee informed me. The system says you have it. Well, I didn’t, and after waiting over an hour for a manager to look at the camera footage, I was coming to the conclusion that someone had lied to cover up the mistake. For the prescription was cancelled and returned to me forty-five minutes after camera footage showed me leaving the store for the day. “You could have phoned in the cancellation,” the store manager suggested. Unfortunately for him, that would not explain how the paper prescription got into my hands.

Turning to his assistant, the shift manager, I asked if it is likely that the prescription had been inadvertently thrown way. “Oh, no, that doesn’t happen here,” she assured me. “Well,” I concluded, “then if no one handed it to me, and your employees don’t throw things out in there, then the prescription should still be in there, right?” Even as she nodded affirmatively—meaning the paper had been misplaced—the store manager interjected his view that the chances are minimal that it is still there. “The system indicates that it was given to you,” he said. I was stunned. Had he not been listening? I began to understand how it could be that the front managers and cashiers could have been getting away with treating customers so rudely right under the nose of the store’s manager. He went on to add that he and his assistant had done “excellent due diligence” and unfortunately the camera angle did not give him a clear view of me talking with the pharmacist after I had dropped off the prescription so he couldn’t be sure—in spite of having “an excellent camera system.” I was stunned at the sheer disjunction in what the guy was saying.

Clearly, someone had lied, as no one had handed back my prescription to me (and I had not cancelled the prescription). In this case, the lie had staying power, for the medical provider who had written the prescription refused to reissue or revalidate it even when the pharmacist called to explain the situation. Even though Walmart had erroneously cancelled and lost my prescription, it was “my responsibility.” I was between a rock and a hard place, neither one being willing or even perhaps even capable of deviating from a rigid script. Not having a primary-care physician locally, I would have to go without until the end of my visit.

Speaking the next day with a pharmacist at a Walgreens after I tried again in vain by stopping by the offending hospital’s emergency room, I learned that it was indeed unusual for a prescription provider to refuse to revalidate a prescription that had been erroneously cancelled. I also gathered from that pharmacist that I had erred in supposing that the pharmacy at a Walmart would somehow be immune from the sort of incompetence that plagues the company at the store level.

That very evening, a Walmart truck-driver killed one comic and seriously injured Tracy Morgan and two other passengers on the New Jersey Turnpike after going without sleep for than 24 hours.[2] In response, a Walmart statement claimed that the employee had not violated any federal regulations. Nevertheless, police charged him with manslaughter and assault. Interestingly, Congress was at the time bowing to industry pressure by backing off proposed regulations that would have required companies like Walmart to see to it that their truck drivers are getting enough sleep. One might say that Walmart’s management is asleep behind the wheel, even amid claims of being fully alert.



[1] Anne D’Innocenzio, “Walmart Faces Shareholder Scrutiny at Annual Meeting,” The Associated Press, June 6, 2014.
[2] David Jones, “Truck Driver in Tracy Morgan Crash Had Not Slept in 24 Hours: Complaint,” The Huffington Post, June 9, 2014.