Jake should take the fall Long chen 15300680055 Course: English for Academic business Date: 27 December 2017 1/5
1 / 5 Jake should take the fall Long CHEN 15300680055 Course: English for Academic Business Date: 27 December, 2017
Jake should take the fall 1. Introduction: SimplePay and its crisis SimplePay, a mobile-payment processor, is once the market leader in the mobile-pay space. The recent leakage of customers'email addresses has trappe a trust crisis. Many customers expressed concerns about the security breach and even in unwillingness to use the processor, whilst distrust from the Wall Street has delayed the companys IPO. Thanks to PR departments quick response and It departments careful repair, all is under control now. However, the board decided that someone needed to be held publicly responsible, so as to make amends and restore image The tricky problem is whether a resignation is a must. If so, is it enough and who should it be? 2. An assessment of Simplepay's performance Performance of Simple pay in the crisi be assessed by the 4Rs principle for Readiness management proposed by Robert L. Heath, .Risk management Training and professor from University of Houston. 4Rs(see Figure 1), abbreviation of reduction, readiness, T 4R response and recovery requires enterprises assess the possibility of risk and drift Recovery Identification emergency plans so as to handle crises orderly Recovery plannin Elimination Figure 1 4Rs principle and gradually return to normality According to the principle, communications that are not only prompt but also timely with customers affected are a necessity when handling public relations. That is exact what PR has done, ie. the immediate contacts with related people, messages given to the public and an apology focused on the hackers. As for IT department, though a little slow, they provided the latest and most comprehensive data 姝,"从三鹿问题奶粉事件看企业品牌危机管理”(硕士论文,首都经贸大学,2009,pp.45 2/5
2 / 5 Jake should take the fall 1. Introduction：SimplePay and its crisis SimplePay, a mobile-payment processor, is once the market leader in the mobile-pay space. The recent leakage of customers’ email addresses has trapped it in a trust crisis. Many customers expressed concerns about the security breach and even an unwillingness to use the processor, whilst distrust from the Wall Street has delayed the company’s IPO. Thanks to PR department’s quick response and IT department’s careful repair, all is under control now. However, the board decided that someone needed to be held publicly responsible, so as to make amends and restore image. The tricky problem is whether a resignation is a must. If so, is it enough and who should it be? 2. An assessment of SimplePay’s performance Performance of SimplePay in the crisis can be assessed by the 4Rs principle for crisis management proposed by Robert L. Heath, professor from University of Houston. 4Rs(see Figure 1), abbreviation of reduction, readiness, response and recovery, requires enterprises assess the possibility of risk and drift emergency plans so as to handle crises orderly and gradually return to normality1 . According to the principle, communications that are not only prompt but also timely with customers affected are a necessity when handling public relations. That is exact what PR has done, i.e. the immediate contacts with related people, consistent messages given to the public and an apology focused on the hackers. As for IT department, though a little slow, they provided the latest and most comprehensive data 1 张姝, "从三鹿问题奶粉事件看企业品牌危机管理” (硕士论文, 首都经贸大学, 2009), pp. 4-5 Figure 1 4Rs principle
security measures, a solid foundation for Simple Pay to win back trust. As information security technology is the core competence of electronic payment businesses, the company ought to emphasize the new upgrade to inform the public that SimplePay again safe to use. Nevertheless, given that some consumers already tend not to log in, he company must cogitate the way it announces the upgrade Proper responses demand accurate judgements and thus are often a matter of possibility. Therefore, in crisis management, reduction and readiness outweigh the third. Unfortunately, in this case there was no risk assessment nor emergency plans, which is part of the reason why the breach happened and of simplePay's dilemma of the selection of the person to be blame The priority of recovery for SimplePay is to reassure customers. The board's strategy that a public gesture should be utilized to demonstrate how serious SimplePay take the breach is quite reasonable. A resignation could signal SimplePay cares its users. Relationships are built once people choose one companys products, so when things go wrong, responsibilities have to be taken, just like spokesmen of Player,'s Battlegrounds keep apologizing for some users'cheating behaviors Although having never instigated fraud, they apologize to show appreciation of user experience. In consideration of the severity of Simple Pay's crisis, apologies are not enough and a resignation is recommended 3. Jake should resign Jake should take the blame and resign. After all, performance in other departments was meticulous and impressive. By definition, Chief Executive Officer is a decision maker on high-level strategies and other key policy issues". Jake, however failed to organize his team to establish a risk assessment system or drift emergency plans. Worse still, as a hi-tech company resting on the stability and robustness of its software, prevention of loopholes is by far more important than thinking of countermeasures. Had Jake emphasized SimplePay's top-level design, the company would not have been caught in the question of resignation now. Indeed bugs might Kaplan, Which CEO characteristics and abilities matter, Journal of Finance 3(Summer 2012): 67 3/5
3 / 5 security measures, a solid foundation for SimplePay to win back trust. As information security technology is the core competence of electronic payment businesses, the company ought to emphasize the new upgrade to inform the public that SimplePay is again safe to use. Nevertheless, given that some consumers already tend not to log in, the company must cogitate the way it announces the upgrade. Proper responses demand accurate judgements and thus are often a matter of possibility. Therefore, in crisis management, reduction and readiness outweigh the third R. Unfortunately, in this case there was no risk assessment nor emergency plans, which is part of the reason why the breach happened and of SimplePay’s dilemma of the selection of the person to be blame. The priority of recovery for SimplePay is to reassure customers. The board’s strategy that a public gesture should be utilized to demonstrate how serious SimplePay take the breach is quite reasonable. A resignation could signal SimplePay cares its users. Relationships are built once people choose one company’s products, so when things go wrong, responsibilities have to be taken, just like spokesmen of PlayerUnknown's Battlegrounds keep apologizing for some users’ cheating behaviors. Although having never instigated fraud, they apologize to show appreciation of user experience. In consideration of the severity of SimplePay’s crisis, apologies are not enough and a resignation is recommended. 3. Jake should resign Jake should take the blame and resign. After all, performance in other departments was meticulous and impressive. By definition, Chief Executive Officer is a decision maker on high-level strategies and other key policy issues2 . Jake, however, failed to organize his team to establish a risk assessment system or drift emergency plans. Worse still, as a hi-tech company resting on the stability and robustness of its software, prevention of loopholes is by far more important than thinking of countermeasures. Had Jake emphasized SimplePay’s top-level design, the company would not have been caught in the question of resignation now. Indeed, bugs might 2 Kaplan, "Which CEO characteristics and abilities matter,” Journal of Finance 3 (Summer 2012): 67
even have been detected through regular examinations Besides, severity of this leakage was actually underestimated. During the great Depression, due to depositors'distrust, over 5,000 American commercial banks went broke. In certain aspect, SimplePay resembles a bank, acting as an agent that transfers money from payers to receivers. This commonality means trust is lifeblood for SimplePay. Therefore, as consumers' defections went beyond expectations, its foundation possibly has been damaged, though no further information except email addresses were hacked. Jake should realize that the reason SimplePay survived the storm is not his loss but luck and his colleagues' endeavor. If Jake. ceo and the leader, really possesses a sense of duty, he should stand out and resign. 4. To restore image: get an endorsement for the upgrade Jake's resignation can indeed leave a positive impression on customers yet is irrelevant to SimplePay's new upgrade. SimplePay needs the upgrade to demolish skepticism demonstrated by numerous questions the customer service department received about the security of the processor. However, guarantee of security from SimplePay itself is partial and appears unpersuasive. Ratings from a strong third-party of relevant expertise, like Microsoft and HP, are more compelling, as exemplified in the crisis jinhua ham was confronted with On November 16, 2003 CCTV reported that some workshops used DDVP, which is high-toxic pesticide, as preservatives to produce hams in Jinhua. The whole country was shocked. The mayor's concern speeded up rectification and qual ity improvement but the real difficulty lay in how to convince the public. 17 days later, the government successfully invited the biggest meat company in Japan to visit local production bases and obtained a 30 million RMB order. On December 28, CCTV praised that producing hygienic hams had become a consensus of all companies in Jinhua. Those measures worked, for Jinhua Ham still enjoys popularity in China and has been served in the banquets of Hangzhou G20 summit Romer, Christina D, The Nation in Depression, " Journal of Economic Perspectives 7(Spring 1993): 19-39 Mike Peters, "A bite of Hangzhou, ChinaDaily, August er/2016-08/30/content 26640347. htm, accessed December 2017
4 / 5 even have been detected through regular examinations. Besides, severity of this leakage was actually underestimated. During the Great Depression, due to depositors’ distrust, over 5,000 American commercial banks went broke3 . In certain aspect, SimplePay resembles a bank, acting as an agent that transfers money from payers to receivers. This commonality means trust is lifeblood for SimplePay. Therefore, as consumers’ defections went beyond expectations, its foundation possibly has been damaged, though no further information except email addresses were hacked. Jake should realize that the reason SimplePay survived the storm is not his loss but luck and his colleagues’ endeavor. If Jake, CEO and the leader, really possesses a sense of duty, he should stand out and resign. 4. To restore image: get an endorsement for the upgrade Jake’s resignation can indeed leave a positive impression on customers yet is irrelevant to SimplePay’s new upgrade. SimplePay needs the upgrade to demolish skepticism demonstrated by numerous questions the customer service department received about the security of the processor. However, guarantee of security from SimplePay itself is partial and appears unpersuasive. Ratings from a strong third-party of relevant expertise, like Microsoft and HP, are more compelling, as exemplified in the crisis Jinhua Ham was confronted with. On November 16, 2003 CCTV reported that some workshops used DDVP, which is high-toxic pesticide, as preservatives to produce hams in Jinhua. The whole country was shocked. The mayor’s concern speeded up rectification and quality improvement, but the real difficulty lay in how to convince the public. 17 days later, the government successfully invited the biggest meat company in Japan to visit local production bases and obtained a 30 million RMB order. On December 28, CCTV praised that producing hygienic hams had become a consensus of all companies in Jinhua. Those measures worked, for Jinhua Ham still enjoys popularity in China and has been served in the banquets of Hangzhou G20 summit4 . 3 Romer, Christina D, "The Nation in Depression," Journal of Economic Perspectives 7 (Spring 1993): 19-39. 4 Mike Peters, "A bite of Hangzhou," ChinaDaily, August 30，2015， http://usa.chinadaily.com.cn/epaper/2016-08/30/content_26640347.htm，accessed December 2017
The order from the Japanese company as well as the second report from CCTV acted as an endorsement, implying that Jinhua Ham again was trustworthy. A strong disinterested third-party works the same way and thus can aid simplepay to rebuild their former image: the processor was safe for daily use 5. Conclusion In a century when mobile internet, big data and AI have been discussing every day, technology is becoming more and more important. Consumers will come in most instances if one product, in the form of certain software or hardware, are well designed and maintained, such as people's preference for Windows system and iPhone Whilst companies focus on R&D, attention must also be paid to analyzing consumption psychology, to developing customer relationships and most importantly to caring their clients. CEOs resignation undoubtedly can manifest SimplePay's deep regret for the inconvenience the breach has caused. Together with an upgrade of guaranteed safety, SimplePay will regain the public's trust 5/5
5 / 5 The order from the Japanese company as well as the second report from CCTV acted as an endorsement, implying that Jinhua Ham again was trustworthy. A strong disinterested third-party works the same way and thus can aid SimplePay to rebuild their former image: the processor was safe for daily use. 5. Conclusion In a century when mobile internet, big data and AI have been discussing every day, technology is becoming more and more important. Consumers will come in most instances if one product, in the form of certain software or hardware, are well designed and maintained, such as people’s preference for Windows system and iPhone. Whilst companies focus on R&D, attention must also be paid to analyzing consumption psychology, to developing customer relationships and most importantly to caring their clients. CEO’s resignation undoubtedly can manifest SimplePay’s deep regret for the inconvenience the breach has caused. Together with an upgrade of guaranteed safety, SimplePay will regain the public’s trust