My Three Cents

How Communications is Saving Lives in Chile

2010-03-10T10:45:00.007-05:00

"Urgent. In Constitucion an eight-year old boy named Ivan Lara showed up alone. He's looking for his family," read the tweet.

In earthquake torn Chile, there is one language that connects everyone, regardless of where they are from. Social networking is the lingua franca.

Your life might well have been saved if you were lucky enough to have had a BlackBerry or iPhone with you when the 8.3-magnitude quake struck. Twitter and Facebook have been critical resources for help: coordinating rescue for individuals buried in the rubble, finding food and water, and reuniting families and friends.

According to a recent article in USA TODAY , Chile ranks fourth worldwide in terms of social networking penetration among its home and work internet audience. While traditional media have focused on hard news, the piece said, Twitter, Facebook and some Google applications have been key for communicating locally about personal needs.

If we ever doubted the universal utility of social networking, this should put those doubts to rest. It’s not just about chat. It’s also about the instantaneous delivery of critically important information, which has enabled a quantum leap in personal safety.

Technorati Tags: Chile, earthquake, Ivan Lara,social networking, USA Today , communications, public relations, Makovsky

HE NEVER SAW HIMSELF AS OTHERS SAW HIM

2010-03-08T12:13:00.015-05:00

He was humble. He was kind. He was deeply devoted to his family. He was a leader in his profession. He always shared his knowledge. He was a strategic thinker. He was conscientious. He cared.

And the list of Harvey Greisman’s virtues goes on and on. But everything came to a screeching halt about a week and a half ago. For Harvey Greisman died suddenly while he was on a trip to Florida to attend his father’s funeral.

The suddenness of it all left everyone frozen in their tracks.

His death was shocking for me, as Harvey was my friend. I had just had dinner with him a couple months ago. Professionally, I had served on a number of panels with Harvey and most recently had invited him to participate as a member of our IPREX global panel on the financial crisis last May.

The respect for Harvey was broad and deep. He served in leadership positions at IBM and GTE. He was on boards of organizations like the Arthur W. Page Society and the Institute for Public Relations . Most recently he headed global communications at MasterCard.

“But he never saw himself, I now understand, as others saw him,” noted his wife. “He never thought of himself as an industry leader, and I never knew that he was. And rather than focus on the great things he did do, Harvey always thought about what he didn’t do and didn’t say – at meetings or assignments on or off the job. He was never truly satisfied with his contribution.”

This was a sad revelation about the man. I always admired Harvey and was disappointed to learn that he was not aware of the esteem in which he was held. As professional communicators, we need to be more forthright in communicating our positive feelings to colleagues both about what they represent to us and mean to others.

Technorati Tags: Harvey Greisman, Mastercard, communications, public relations, Makovsky

The Financial Value of Reputation

2010-03-04T15:28:00.018-05:00

Call them whatever you want, but one thing is certain. When Goldman Sachs talks, people generally listen. That’s why I found a statement from Goldman’s just published annual report to be nothing short of monumental: for the first time, the bank added “adverse publicity” to the laundry list of financial risks it faces going forward.

As reported by The Wall Street Journal ,arguably the most respected voice on Wall Street has acknowledged that negative press coverage could have a material impact on its financial results – or, more to the point, that corporate reputation possesses tangible financial value. This follows on the heels of a study a number of years ago by Ernst & Young that found 35% of a typical public company’s valuation relates to intangibles like brand awareness and regard.

Goldman’s insight, which is unparalleled in investment banking and, in my opinion, would have been impossible just a few years ago, suggests that the Great Recession may be convincing financial leaders that risk management involves more than investment portfolios. That’s good news for public relations professionals who have long argued that intangible assets like corporate reputation have genuine impact on the financial statement – and should be valued and managed accordingly.

Technorati Tags: Goldman Sachs, annual report, communications, public relations, Makovsky

WHAT’S IN A NAME?

2010-03-01T11:55:00.012-05:00

The answer to that question? Everything. Among the people who know you, when they hear your name, they think of everything about you. Your character. Your appearance. Your relationship with them. Your usual behavior. The terrific or horrible things you have done. Your demeanor. Your reputation. And the list goes on.

If you are famous, then all of those things are magnified among those who know of you. Apply the above factors to Tiger Woods, Angelina Jolie, Barack Obama, Meryl Streep, Lindsay Lohan, Mark McGwire, Bernie Madoff.

Well, I think you get the idea. Thus, it was not surprising to read in a recent New York Times article that people with the Madoff name, whether relatives or not, feel the need to change it—or proclaim “not-related”—because of the stigma. (Madoff carried out the biggest Ponzi scheme of all time, causing client losses of more than $60 billion.) His daughter-in-law, Harriet, asked the court to allow her and her children to change their name to Morgan, noting that she cannot get a decent dinner reservation with the Madoff name, today synonymous with evil. And in the financial services world, she noted, the name is a real “horror show.”

Further, a guy I know who worked on the so-called legitimate side of the Madoff brokerage operation, has been out of work for months because of the stigma on his resume which, he says, is holding back potential employers.

However you stack it up, and whether you are an individual, a corporation or an institution, your name IS your total identity. It stands for all that you are. Your deeds and presentation create the perceptions that make your reality. May you build a name that anyone would be proud to bear.

href="http://technorati.com/tag/reputation>reputation,public relations

The PR Explosion

2010-02-25T09:06:00.028-05:00

I always find Veronis Suhler Stevenson’s (VSS) Communications Industry Forecast interesting reading, but the latest edition revealed an important shift in client spending that bodes well for the public relations industry. Here are some highlights:

• Client spending will rise by 55% to $8 billion in 2013 — $3 billion of which will be spent on word-of-mouth marketing, which includes social media outreach, as well as offline brand ambassador programs.

• Expenditures on PR and word-of-mouth increased by 7% — to $5.2 billion — in 2008 versus the prior year.

• In 2008, advertising represented the smallest share — at 24% — of the four major communication segments, the first time that has happened since the study began in 1986.

• From 2008 to 2013, VSS forecasts that traditional advertising will decline by another 3%, following a 11% decline over the past 2 years.

“Advertising is very expensive, and in tough times, companies demand greater ROI. Traditional advertising is not as measurable as the Internet or other forms of marketing communications,” said Jim Rutherfurd, EVP and managing director of VSS in a recent interview in PRWeek. “It is also part of a trend that started long ago that has seen companies move from mass media to more targeted communications.”

Technorati Tags: VSS Communications, client spending, public relations

The Tiger Lays an Egg

2010-02-22T14:32:00.001-05:00

Vulnerable? Yes. Disciplined? Yes. Cold? Also, yes.

While Tiger Woods’ public apology — “I had affairs. I was unfaithful. I cheated.” — was possibly truthful and certainly forthcoming, it was delivered as if he were a robot communicating zero on the feelings scale. Nowhere did I hear expressions of deep remorse or how much he loved his wife and family; rather, he sounded as if he were duty-bound to make this confession … as if this calculated step were a prerequisite for the next calculated step in his plan for redemption.

When I saw a TV interview with his Buddhist priest, it all came together. Tiger had veered too far from Buddhism in recent years, he advised, and the priest confirmed. The priest stated that the first step needed to be a strong, truthful confession of all the misdeeds, and only then could progress be made.

Despite some anecdotal criticism of his apology directed at “his PR handlers,” to me the talk sounded like something written and directed by a Buddhist advisor, perhaps even the priest. The austere surroundings. The decision not to answer questions — which would be in keeping with the confessional first step. The priestly, “I’m meeting my commitment,” tone.

I recognize that The New York Times and many others have praised what he did and held Tiger up as a role model against others who did not make a high-profile public apology (such as Mark Sanford, Governor of South Carolina, and John Edwards, presidential aspirant). I disagree. There are also those who claim that since he is not an elected official, he had no responsibility to publically apologize. I disagree. Anyone who becomes a star and accepts endorsement money has an obligation to the public.

We live in a world of engagement. Tiger did not engage his audience.

Whether you like the word transparency or not, who knows how Tiger really feels? He refused to answer questions, and that is anything but transparent. This situation, which could have been put to bed with a quality performance, will haunt Tiger for some time. He may not be answering questions now, but he will have to face the music whenever he returns to golf.

Technorati Tags: Tiger Woods,
unfaithful, apologize,Mark Sanford, John Edwards

Measure Twice, Cut Once?

2010-02-16T13:23:00.004-05:00

Today’s guest author is Frank Ovaitt, Executive Vice President of Makovsky + Company and Head of Research and CEO Emeritus of the Institute for Public Relations

“Measure twice, cut once” may be good enough for carpentry, but not for public relations.

Actually, it’s not good enough for carpentry either. Any competent carpenter has theoretical knowledge of materials, structural strength, the requirements of various applications and practical knowledge of standard practices and tools. Listening and learning from the customer is also critical, of course.

So it is in public relations. Many practitioners focus too much on measurement at the expense of other domains of research. In fact, there are four kinds of research-based knowledge that every professional needs:

1. Foundational research. For a practical example, consider Toyota’s response to its multi-faceted safety crisis. There is solid theoretical research that would have told them that explanation and confrontation would not work in this case (sometimes they do). With so much blame attributable to the organization, Toyota should have gone much quicker to accommodation strategies (apology, assurance and compensation).

2. Best practices and benchmarking studies. These help us understand important trends in public relations so we can consider whether they apply in a given situation. In crisis communications, this might mean research on what kind of scenario planning experienced practitioners use to be ready for whatever comes.

3. Initial or formative research. When you begin campaign planning, this work should precede all other work. Start with desired business outcomes. What additional knowledge (of audience attitudes, for instance) do you need to define PR objectives, strategies, tactics and messages? Returning to our crisis example, research can even identify “what could go wrong here” before possibility turns to disaster. The risks are different for a drug company versus a retail company or a tech company, but they are still knowable.

4. Measurement and evaluation. Even in a crisis, you can use online and offline metrics to understand what’s been achieved and how to achieve more. Do stories that quote your spokesperson have a more positive tone? Which messages are resonating, and which are falling flat? You have to keep tracking to keep improving.

Public relations practitioners shouldn’t sell themselves short — as if the research needs in this field are as simplistic as the carpenter’s “measure twice.” It’s the rich mix of four domains that really marks true professional work.

Technorati Tags: Frank Ovaitt,
foundational research, crisis,online metrics, offline metrics

Let's Retire these Words!

2010-02-11T15:04:00.008-05:00

I recently read a funny and thought-provoking article in TIME magazine about the 15 words and phrases that should be banned from the English language in 2010 for “Mis-use, Over-use and General Uselessness.” The list, compiled by Lake Superior State University (LSSU), includes:

1. Shovel-ready
2. Transparent/Transparency
3. Czar
4. Tweet
5. App
6. Sexting
7. Friend (as a verb)
8. Teachable Moment
9. In These Economic Times ...
10. Stimulus
11. Toxic Assets
12. Too Big to Fail
13. Bromance
14. Chillaxin'
15. Obama (as a prefix)

“’In these economic times,’ purging our language of ‘toxic assets’ is a ’stimulus’ effort that’s ‘too big to fail,’” said a LSSU spokesperson.

I’m afraid that I’m an offender. (I’ve caught myself, more than once, using “transparency,” “app,” “tweet,” “in these economic times” and “too big to fail.”) But where, I ask you, are the following words and phrases that should also be banned: “public option,” “unprecedented,” “OMG” and “at the end of the day”?!

Surprisingly, there is such a superabundance of useless words in the workplace that I blogged about this topic back in October. Yet every year brings an entirely brand new crop of annoying, over-used words!

Toyota Exhausted

2010-02-08T14:33:00.009-05:00

The so-called “quality” car — that has stood out for decades since the foreign car invasion of the U.S. many moons ago — has finally “collapsed,” so to speak … or at least its reputation has. Its business may follow, if the blunders continue and Toyota fails to publish a “repair plan” that customers can believe in.

First the company said it was the floor mats that caused the stuck-accelerator problems, then electrical issues in the accelerator itself and lately it is braking problems in the Prius. There has also been a parade of communications mistakes, while people are dying due to these problems.

The headline in Sunday’s New York Times is “Toyota Has Pattern of Slow Response on Safety Issues.” Authors James Kanter, Micheline Maynard and Hiroko Tabuchi cite design changes to correct safety issues that the company has been making — without telling customers about the underlying problems with cars already on the road. Yet according to the NYT, the CEO has balked at questions regarding whether the company has ever withheld safety information.

Further, while the CEO has issued a couple of apologies, he has been delegating the task of reassuring American consumers on various key TV shows and plans to do the same at Congressional hearings next week. The executive selected to be the “face” of the company has none of the operational responsibilities required to speak to these issues.

So what do we have here? Slow response, when immediacy is a fundamental in crisis communications. Lack of clarity and transparency, when being above board with customers is the only way to save your skin, if you can save it at all. Lack of accountability, when accountability means the CEO is front and center.

All the fundamentals of crisis communications are being violated, not unlike the missteps of Enron, Worldcom, Arthur Andersen and even Tiger Woods. As the great American philosopher, George Santayana, has said, “Those who cannot remember the past are condemned to repeat it.” Is Toyota suffering from a case of “historical amnesia” so profound that the company’s communications efforts have collapsed in exhaustion?

Technorati Tags: Prius, Toyota,
safety issues, breaking problems,Hiroko Tabuchi, James Kanter, Micheline Maynard

INDIA REVEALED: 10 SURPRISING FACTS

2010-02-04T17:15:00.010-05:00

On Monday, just back from India, I posted my impressions of Mumbai (formerly Bombay) in my blog . I tried to
capture the kaleidoscopic quality of a city that combines the old and the new, extreme poverty and astonishing economic growth. Despite the city’s (and indeed India’s) pressing problems, India is definitely beginning to take its rightful place on the world stage.

Today, I’d like to drill down a little deeper and share with you 10 interesting facts about the country that Goldman Sachs has predicted “could be 40 times bigger by 2050.”

1. At 1.27 million square miles, India about a third of the size of the US.

2. India is the #2 most populous country in the world (with nearly 1.16 billion people), just behind China. In fact, India has almost four times the population of the United States.

3. Like the US, India is a federal republic: power rests with the voters who chose their governmental representatives. Everyone age 18 and older has the right to vote.

4. The two most prominent religions in India are Hinduism (80.5%) and Islam (13.4%), according to the 2001 census. However, Jainism and Buddhism have been practiced in India for nearly 2,500 years. What’s more, Jews and Christians have lived continuously in India since 200 BC and 52 AD, respectively.

5. There are 15 official languages in India. Hindi is most widely spoken language and the primary tongue of 41% of the population, but English is the most important language for national, political and commercial communication.

6. Slightly more than half of India’s work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with less than one-third of its labor force.

7. India’s top industries are: textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software and pharmaceuticals.

8. With more than 427 million mobile telephones in use, India currently outranks the U.S. in terms of cell phone subscribers. (China is #1.)

9. There are 81 million internet users in India … more than in Canada and the U.K. combined.

10. At $3.55 trillion in 2009, India’s GDP (purchasing power parity) is ranked #5, after the EU, US, China and Japan.

SOURCES: CIA - The World Factbook and the National Portal of India’s Interesting Facts about India.

Technorati Tags: india, Goldman Sachs,
Mumbai, communications, public relations, Makovsky

It's Happening in Mumbai

2010-02-01T14:59:00.025-05:00

I have just returned from a week of business meetings in Mumbai (formerly Bombay), India, with a range of leading companies in multiple industries. Taking all the meetings as a whole, I saw a dynamic business community rearing its head, both nationally and internationally. There were those companies that saw enormous expansion within the Mumbai area only and, with a population nearing 20 million there, that opportunity is apparent. But there were also several $500,000+ firms that see market opportunities in the U.S. and Europe. Our schedule was set up by our IPREX partner firm in Mumbai: Concept, a leading public relations and investor relations firm and 2007 “Agency of the Year” in India, which has offices in key cities.

Mumbai is clearly a communications-conscious business community. Firms we spoke with saw the importance of communications in terms of building company value and launching new products. They were as concerned about the implications of social media and how best to channel its uses as we are. They realize that proper use of communications can enhance their growth, and they see enormous merit in moving in the right direction.

Physically, these corporations were generally set back behind gates in courtyard settings, as opposed to street-front structures. This certainly speaks to security concerns. Understandably, security was strong at both our hotel and other public buildings. At many, security personnel checked cars before entering by lifting the hoods and searching the trunks. Next, individuals walked through a security gate and then were scanned with an electronic wand.

Mumbai is still a contrast in styles. There were quite a few more skyscrapers since we were there in 2005, but by and large it remains a developing city. You still see an occasional cow walking in the street, and there are still 8-9 million people living in slums.

Nevertheless, there is a momentum in Mumbai that is reminiscent of New York. You can feel the electricity the minute you enter the city. The traffic is among the most crowded in the world because there is no underground or aboveground transportation system (although one is now under construction). The city has some stunning architecture, much of it built during its British colonial days. Dotted with more modern structures, the elimination of its slums, and hopefully cleaner buildings from yesteryear, Mumbai has the potential to be a masterpiece, contrasting the old and the new.

Technorati Tags: IPREX, Mumbai, slums, India, Concept Communication

CUSTOMER VS. EMPLOYEE: Challenging Conventional Wisdom

2010-01-27T15:52:00.007-05:00

The customer is number one. This is a fundamental tenet of business…and, might I say, business folklore. Some years ago, business executive Hal Rosenbluth wrote a book called The Customer Comes Second . If Rosenbluth is right, who is first? He says the employee.

Now there is a study — cited in The New York Times — that suggests Rosenbluth may be right. The employee may indeed be more important than the customer. The study found that strong sales growth was correlated with an organizational culture in which employees thought more highly of the company than did society at large.

In fact, there was 7.46% rise in sales for the companies whose employees like the company much more than consumers did; and there was 9.02% drop in sales for companies at which employee opinion was far below customer opinion.

This proves that employee impressions of a company are critical to its success...and critical to attracting business. Employees are the face of the company. They are the ambassadors who make a difference.

In fact, if employee attitudes are much better than expected, customer approval of the company actually increases exponentially — sometimes even surpassing employees’ approval — and sales go through the roof.

This study leaves no doubt whatsoever about the importance of employee relations programs and what it takes to win over customers … whether you see them as #1 or #2.

Technorati Tags: Hal Rosenbluth, New York Times,
customer, employee,communications, public relations, Makovsky

Is Domino’s Dissing Its Customers?

2010-01-25T09:34:00.012-05:00

Domino’s Pizza, the nation’s second largest pizza chain, recently launched its new formulation in a flurry of media, both traditional and online. What I found extraordinary about the whole marketing campaign was its focus on how awful Domino’s old recipe was, describing the “classic” Domino’s pie as “mass produced, boring, bland,” with a taste like “cardboard” … worse even than microwave pizza.

Some people love the ads; others, not so much. In that last group are the perplexed Domino’s customers who actually liked the old pie. “… They are basically saying, ‘We've been shoveling you crap for years and now we want you to trust us,’” said Kelly O’Keefe , managing director of the Brand Center at Virginia Commonwealth University in a recent AP interview.

I totally agree. Suggesting that you’ve been cheating your most loyal customers for the past 50 years by selling them a second-rate product is just not the strongest platform for future growth.

On the other hand, the company’s new CEO, J. Patrick Doyle, has said, “The old days of trying to spin things simply doesn't work anymore. Great brands going forward are going to have a level of honesty and transparency that hasn't been seen before”

How can you argue with that?

Generally considered a leader in delivery and value, Domino's has indeed taken some hits when it comes to taste. The ads are definitely eye-catching. And so far, the publicity pay-off has been impressive, including endorsements of the taste of the new pie by, among others, all five hosts of CBS’s Early Show and Stephen Colbert , who said that the new Domino’s pizza tastes “like an angel giving birth in your mouth.”

It’s a risky approach — and not one I’d recommend to a client — but it just might work. We’ll have to wait and see.

Technorati Tags: Domino's pizza, pizza,
J Patrick Doyle, Stephen Colbert,communications, public relations, Makovsky

The "Blurry" President

2010-01-21T13:57:00.008-05:00

The senatorial victory of Scott Brown , a Republican in the largely Democratic Massachusetts, should not have been a big surprise to the Democratic Party.

They had to know that they have been doing a sloppy job of packaging their candidates and their health reform bill…and yet have continued nonchalantly on their way. Has the Party so quickly forgotten how effectively Obama was packaged: the engaging smile, the audience outreach, the simple to remember “yes, we can” slogan. Americans like slogans and memorable phrases with a message. They take to candidates who engage them.

Scott Brown had those qualities. Martha Coakley was snippy. Why run a chancy, audience-insensitive candidate in an election where your life depends on it? And you need to build upon the legacy of the man who “founded,” “pioneered” and fought hard to get health care reform before he died.

Where is Obama’s leadership? Who can really define the health reform bill in a few sentences, if not a few words? No one. The Republicans used one word that everyone can remember: “expensive.” What happened to the so-called best communicator among Presidents since Ronald Reagan? As Frank Rich of The New York Times said in a telephone interview with Don Imus on FOX Business Network the other day, he’s gone “blurry.”

Technorati Tags: Scott Brown,
Martha Coakley,Frank Rich, Obama,
communications, public relations, Makovsky

Surprising Stats: An Average Day on the Internet

2010-01-14T10:46:00.014-05:00

Just how big is the internet? Mind-bogglingly big.

Online Education (via The Presurfer ) has produced a fascinating graphic about an average day on the internet. Among the stunning statistics:

• Over 210 billon emails are sent out every day — the equivalent of more than a whole year’s worth of regular mail in the U.S.

• Bloggers post 900,000 new articles every day — enough to fill The New York Times for 19 years.

• 700,000 new members are added to Facebook every day — approximately equivalent to the population of Guyana.

• Three million images are uploaded to Flickr everyday — enough images to fill a 375,000-page photo album.

Who would have imagined this just a few years ago?

Technorati Tags: internet,
flickr,online education, facebook,
communications, public relations, Makovsky

Tinkering with Conan’s Image

2010-01-11T15:34:00.008-05:00

Has Conan O’Brien failed as the new host of NBC’s “Tonight Show”? I’d say the answer is yes. Reason? Diluted image.

The only question in my mind is why NBC is coming to such a rapid conclusion and not giving O’Brien the time he needs to build his audience. That is unfortunate. When he started the show last June and Jay Leno , the previous host, was moved to 10 PM, Jeff Zucker, CEO of NBC Universal, said, “We’re going to judge this on 52 weeks,” according to The New York Times . But after only 17 weeks, NBC has telegraphed its intention to return Leno to the 11:35 PM spot followed by O’Brien at 12:05. It’s a real slap in the face to Conan.

During his initial six months, Conan O’Brien averaged 2.8 million viewers, whereas Jay Leno, during the six-month period prior to Conan’s starting, averaged 5 million viewers. Leno’s failure at 10 PM affects the money local 11 PM news in various spots around the U.S. can make, and it affects Conan, as well.

All of this hullabaloo puts the spotlight on Conan. As a long-time Conan fan from his “Late Show” days, I have been mighty disappointed in his “Tonight Show” brand. And I assume others have been equally disappointed. Conan is a product of New York — he looks it and acts it. His long legs, shock of red hair, sardonic smile and offbeat humor fit the culture here. He’s a little different. New Yorkers like somebody a little different, as probably do many viewers throughout the country who watch after 12:30 AM. On the “Late Show” he would come out, do a few twirls, shake his hips in hula-like fashion, stick his thumbs in the air to the right and left as if he were hitching a ride — and then get started. So everyone was laughing before he said word one.

So what does NBC do? Move Conan O’Brien to California. Remove the physical antics which were his trademark. Soften his sardonic wit. Keep his subtleties. And what do you have? A diluted Conan. A Conan who is no longer Conan. He is someone I do not know. Middle America will buy New York (e.g., Joan Rivers and Jerry Seinfeld), but they won’t buy someone who is not real.

Leno is an easy sell in middle America. Not too good looking. Regular guy. Humor is sharp, funny and easy to understand. Exceptional track record at a time when there is an advertiser recession and local affiliates are losing money. No brainer.

You can take the boy out of New York but you can’t take New York out of the boy. NBC: are you listening?

Technorati Tags: NBC, Conan O'Brien, Tonight Show, Jay Leno,
communications, communications, public relations, Makovsky

IS NOTHING AS IT SEEMS?

2010-01-07T15:42:00.003-05:00

May I have the privilege of one more postscript on the ongoing Tiger Woods scandal? I know we’ve all heard enough, but I have one additional point to get off my chest.

I was with my brother the other day when he raised some interesting questions. How did Tiger Woods maintain his squeaky-clean image for such a long time? How did he get away with multiple infidelities during the many, many years that he was held up as Accenture’s — and other leading advertisers’— role model? Is nothing as it seems anymore? Is no image real…or above reproach?

Finally, is the Tiger Woods story shocking because it underscores the fact that little today is what it appears to be … or that most is not what it appears to be?

Even with modern day internet transparency, certain information is likely to elude us. That may be because the press or others become so enamored of certain celebrities that factoids which could be explosive refuse to gain traction. Or the information is simply overlooked…at least until the crisis breaks. So, while it remains possible for one whistleblower to bring down an institution (and we advise clients to be prepared for that possibility), the revelation doesn’t always happen — or it may not happen for years, as was the case with the exposure of Woods’ many affairs.

There are and always will be celebrities and high-profile corporate leaders with good characters and high moral fiber. And they will exist among those whose reputations are built with the support of public relations. As public relations professionals, we do our best to ensure — via research, client probing and, ultimately, agreements with our clients — that they are providing thorough information that enables us to tell the truth. Full and fair disclosure from our clients is essential for us to do our best for them. Not to do so is to be like the patient who doesn’t tell the whole story to his psychiatrist. Once the due diligence is done and the agreements are signed, we cannot know what lurks behind corners.

Technorati Tags: Tiger Woods, Accenture, transparency,
communications, communications, public relations, Makovsky

Gandhi's Seven Blunders to Avoid: in 2010

2010-01-04T16:07:00.004-05:00

As the decade of the “noughties” winds to a close, it’s time to think positive! It is 2010! Let us not forget the mistakes we made in 2009 (and before), but let’s also not wallow in regret! Let’s focus instead on consciously avoiding the blunders that created the crises of the past ten years.

Shortly before he was assassinated, the great spiritual and political leader, Mahatma Gandhi, compiled a list of the “Seven Blunders of the World” which are particularly relevant as we enter a new decade. If we avoid these blunders, we will enjoy a better result, Gandhi advocated. Each of the Seven gives us food for thought:

1. Wealth without work
2. Pleasure without conscience
3. Knowledge without character
4. Commerce without morality
5. Science without humanity
6. Worship without sacrifice
7. Politics without principle

As a communicator (and a human being), I care about all seven blunders. It strikes me that a corporation, for example, would do well to examine its corporate values with special reference to items #1, 3, 4, 5 and 7.

Fortunately, in our great country, we have a choice of how we approach our relationships in business and personally. The standards Gandhi has set provide an excellent foundation for the beginning of any new year!

Technorati Tags:Mahatma Gandhi, Seven Blunders of the World,
communications, public relations, Makovsky

GIFTS DELIVER MESSAGES

2009-12-28T09:43:00.003-05:00

Great public relations requires empathy — the ability to put yourself in the shoes of your audience — so that you can deliver messages in the self-interest of that audience. This is true whether you’re engaged in a major corporate campaign or merely a relationship with another individual.

The most obvious example of the latter is during the holiday season, when you receive someone’s name in a “Secret Santa” gift exchange at the office or when you’re looking for the perfect presents for family members or friends. What do I buy for them? What do they need? What are their interests? For example, if I buy a book, would they prefer history, romance or a cookbook? What choice do I make to underscore my understanding of and respect for the recipient?

Clearly, gifts deliver a message. The more individualized the message — the more it demonstrates your affinity for and emotional connection with the recipient — the more likely it is that your gift will evolve over the years from just another present to a keepsake with real sentimental value. Objects like an autographed book with a personal message or a one-of-a-kind antique can really touch a chord.

Well, my then-5-year-old son, Matt, did that for me about 20 years ago. This was the first of many times, but this holiday gift stands out in my memory. Why? Because he made it himself. It is a small, round, blue clay paperweight with a doughnut hole, covered with silver-colored nuts and bolts. It is about three inches in diameter. And it is something that catches your attention. It reflects his sense of design and color. Perhaps, even his ability to manage a project to completion. Today — and for many years now — it sits as a memento on my desk at the firm. It reminds me of Matt’s childhood and his strength as an adult.

This gift has a “sticky” message that touched my heart — which is the underpinning of every relationship, whether between an organization and its constituents or just two individuals.

Technorati Tags:communications, public relations, Makovsky

A HOLIDAY GIFT FROM PR TO THE I.R.S.

2009-12-21T15:54:00.004-05:00

Billions of dollars will be flowing into the U.S. Treasury shortly, because of an incentive program that rested on a carefully crafted international publicity strategy. Without the latter, this “windfall” could never have occurred.

What was it and how did it happen? For years the Internal Revenue Service, the U.S. tax collector, had been after Americans who had set up bank accounts in Switzerland to avoid paying taxes. At the center of this violation was the Swiss banking giant, UBS, which had admitted selling off-shore financial services that enabled tax evasion and agreed to a $780 million fine. UBS also agreed to turn over the names of about 4,450 American clients suspected of tax evasion. But this was just the tip of the iceberg.

According to an article last month in The New York Times, 14,700 Americans living and working in over 70 countries — with secret foreign bank accounts — took advantage of an aggressively publicized amnesty program for those who came forth by the mid-October deadline. They “were lured” to the program to avoid the risk of potentially ruinous fines, back taxes and possible jail time.

Some clients are challenged to measure the value of publicity. With the right public relations program – in this case, an amnesty opportunity – the value was not only in recovering tax revenues, but also in putting a halt to an illegal cross-border business practice that will most likely not happen again.

According to Lynnly Browning, the author of the Times story, the U.S. plans to expand its program to more countries and also take a closer look at the web of financial advisors, lawyers, accountants and others who help banks sell these illegal services. The attention-getting fear factor is once again at work.

Technorati Tags: Internal Revenue Service, Switzerland,
UBS,
The New York Times,
Lynnly Browning, tax evasionpublic relations, business, Makovsky,

FORECASTING THE GLOBAL ECONOMY

2009-12-17T14:28:00.003-05:00

I had the good fortune of gaining some important insights from Michael Corbat, CEO of Citi Holdings and head of the brokerage and asset management unit of Citigroup, who spoke on the global economic outlook at a recent luncheon sponsored by the New York Chapter of the Swedish-American Chamber of Commerce.

Here are some highlights of his talk, which made a real impact on my thinking:

• The U.S. economy is recovering but will lag behind many other parts of the world. The overall recovery will need to be driven outside the U.S.: primarily in India, China and Brazil.

• European recovery will be fragmented. Spain has a terrible unemployment market. Germany is much stronger. Things are not great in Italy.

• We have moved from spending to saving. This will not be a short-term trend but a long-term one. People used to pay their mortgages first; but because home values are slipping, they are now paying their credit cards first and their auto loans second. Credit card delinquencies appear to have peaked.

• The debt to GDP ratio is 40% and will move to 70%. It will take two decades to return to 40%.

• Credit markets are still dependent on what is being put in by governments – consumer confidence is low and is largely centered on peoples’ estimation of the stability of their jobs and the value of their homes. Both are under considerable stress.

• At Citi, we’ve helped keep 700,000 people in their homes. Nevertheless, we’re involved in a large-scale cleanup. With a presence in 100 countries worldwide, we are reorganizing our business globally to focus on our strengths. We will be more like we were 20 years ago.

• Citi is tying itself to global customers to move their businesses forward. Many companies have become extremely defensive and need to build and invest in technology. We will co-partner with them to help them grow.

• The U.S. has a lot of rebuilding to do. We have undermined our credibility. The general expectation is that the U.S. will continue to be a power, but not as strong as it once was.

Technorati Tags: financial crisis, credit rating,
Michael Corbat,
Citi Holdings,
Citigroup, Swedish-American Chamber of Commerce,public relations, business, Makovsky,

The Reason Accenture Left Tiger

2009-12-14T16:46:00.005-05:00

It is no surprise that Accenture, among his many sponsors, has decided to part ways with Tiger Woods—unlike AT&T, PepsiCo and Nike, which are still hanging on.

In my blog dated December 3, 2009, “Tiger’s Transgressions: Are They Really a ’Private Matter’?”, I noted that Tiger’s “reputation and advertising revenues, by and large, should remain intact.” However, that blog was written before the revelation regarding multiple affairs (plus serious issues surrounding his home life) came out. Possibly, other sponsor relationships will unravel if the flow of seamy details continues.

Accenture is the first major one to go (minus Gillette, which put the relationship on hold), largely because the global consulting firm’s ad campaign was centered on its research, analytics, strategy and precision. Accenture advertising says, “It’s what we call performance anatomy, and it’s one key finding from our groundbreaking research into the world’s most successful companies.” The image includes a graph line which denotes attitude as 50% and aptitude as 50%. Tiger’s strategic skills — indeed, his entire persona — have been indicted by his actions. Thus, the ad theme, “Go on. Be a Tiger.” is no longer valid. If you take the total picture into account, he no longer represents even Accenture’s tagline, “High performance. Delivered.”

As The New York Times notes in its article on Monday, December 14th in the Business Day section, “Big Risk in a One-Man Brand Like Tiger Woods,” that is indeed true. Nevertheless, Accenture has gotten great mileage out of its Tiger Woods campaign, which has gone on for years. Despite the risk, one-man or one-woman brands will continue to be a strategy that will be applied by companies in the future. Nevertheless, there will likely be a momentary pause.

Technorati Tags: Tiger Woods, crisis, communications,Accenture, The New York Times , communications, public relations, Makovsky

Bill Gates and Warren Buffett Speak Out

2009-12-11T09:39:00.003-05:00

Recently, Columbia Business School hosted an evening with Bill Gates, former chairman of Microsoft and current chairman of the Bill & Melinda Gates Foundation, and Warren Buffett, chairman of Berkshire Hathaway. The event was televised on CNBC on November 12, 2009.

Some of their observations regarding character, philosophy, principles and the future (which I have paraphrased) are worth thinking about. They influenced my thinking and might influence yours, as well.

Question: Will greed ever go away?
Buffett: Greed will always be here.

Question: What is the most important thing you do every day?
Gates: Learning. Reading a lot and arming myself with information.

Question: What industry is going to produce the next Bill Gates?
Gates: Perhaps the energy business or healthcare. We haven’t solved a lot of medical problems and more will be solved. Both sectors have a chance to produce some significant leadership.

Question: What are your feelings about the future of the U.S.?
Buffett: I am enthusiastically optimistic about America.

Question: What keeps you up at night?
Gates: Little keeps me up at night. Well, long-term, I am concerned that our educational system is not improving as much as it should.

Question: What’s the one thing your MBA at Columbia prepared you for?
Buffett: I discovered my interest in investments.

Question: What makes you stand out from the crowd?
Buffett: If you can say, “We did what we did because we have a passion for it” -- that makes you stand out from the crowd.

Question: As you progress in your business career, what are the key things to remember?
Buffett: Consistency, focus and staying positive.

Technorati Tags: Bill Gates, Columbia Business School, Microsoft, Bill & Melinda Gates Foundation, Warren Buffett, Berkshire Hathaway, communications, public relations, Makovsky,

The Foreign Government Investor in the U.S.:

2009-12-07T16:44:00.004-05:00

Big overseas government investment funds from Kuwait, Singapore, Qatar and Abu Dhabi “that came to the rescue of (our) banks during the financial crisis are going home with their pockets full of bounty,” according to The New York Times Business section, December 7, 2009.

These foreign government funds, known as sovereign wealth funds, were the subject of a recent talk at Makovsky by Dr. Efraim Chalamish, an international investment law scholar and Global Fellow at New York University who spoke to our staff on perception and communications issues surrounding sovereign wealth funds investing in the U.S. Since many do not know a great deal about these funds, I did a quick interview with Dr. Chalamish following the talk. Here are some of the highlights of our conversation.

Define sovereign funds.

The terminology around sovereign funds is still a work in progress. The definition recently adopted by the International Monetary Fund and the sovereign wealth funds community includes three fundamental elements: ownership of the fund by the foreign government, an investment strategy that includes foreign financial assets and investing the funds to achieve key financial goals in the mid-to-long term.

How would you describe the perception barrier to foreign investment in the United States?

In general, the U.S. offers its foreign investors a relatively open regime for foreign investment, and therefore the U.S. receives a steady stream and a high level of foreign investment. However, various regulatory aspects of investment law are frequently used by U.S. politicians to promote political goals and serve as drivers for legislative changes. Since clarity and consistency are very important factors for foreign investors, the U.S. has to make sure that it communicates rapidly any such changes in investment law.

What are the top three things that sovereign wealth funds should consider when contemplating a business investment today in the U.S. and how should they approach the communications challenges here and in their own countries?

Overall, communications via the media can play an important role in the investment process by positioning the deal in the U.S. as furthering the strategic interests of both sides, improving cross border economic activity and creating jobs. Moreover, common economic interests can make allies out of enemies.

Beyond communications, here are three important points to consider:

First, the funds need to contemplate potential regulatory challenges to the investment. A significant investment in a strategic industry will lead to a governmental review that may delay the process. For example, the review may include measures such as limitations on the nationality of board members or a requirement to spin off certain company divisions -- all related to the level of control of the acquired company.

Second, since many of these funds will want to continue to invest in the U.S. in the future, the process must be a positive experience. This underscores the need to work closely with the U.S. government, building mutual trust and emphasizing the benefits to all parties.

Third, foreign governments need to communicate to their nationals the importance of long-term financial planning in order to achieve higher returns. This is especially important in countries that have traditionally invested their currency reserves in local assets and now might view jurisdictions, such as the U.S., as risky, particularly due to the recent financial crisis.

As a foreign investor, is it more important to manage perceptions in the government community or with the general public? Why?

In the case of foreign investment, it is important to manage perceptions in both communities. The Committee on Foreign Investment in the United States, a government body, can approve an investment or impose certain limitations on it. At the same time, it is also important for the general public to have a positive perception. As we learned from the Dubai Ports World story, negative emotions among the general public, driven by protectionist sentiments and local nationalist voices, can induce politicians to reject an investment which would otherwise have been approved.

Technorati Tags: investment funds, financial crisis , The New York Times, Dr. Efraim Chalamish, New York University, sovereign funds, International Monetary Fund ,foreign investment,
Dubai Ports World controversy, communications, public relations, Makovsky,

Tiger’s Transgressions: Are They Really a “Private Matter”?

2009-12-03T15:49:00.002-05:00

A minor traffic accident for one of the great superstars of sports has escalated into a full-blown public relations crisis. Yesterday, Tiger Woods released his latest statement on the matter, saying, “I have let my family down and I regret those transgressions with all of my heart” and asking that reporters and his fans respect his respect his privacy.

“Personal sins should not require press releases,” he wrote, “and problems within a family shouldn't have to mean public confessions.”

It’s a beautifully crafted and moving plea, but also a little disingenuous. Unfortunately, as a result of his empyrean celebrity, Woods doesn’t really have a private life.
Avoidance of the press early on didn’t help Woods' case. He was wrong to reject questioning by police three times after making an appointment to speak with them and his subsequent failure to put all his cards on the table only increased the public's curiosity, while compromising his relationship with corporate sponsors.
Fortunately, Woods has spent so much time at the empyrean heights and amassed such a huge reserve of goodwill that I believe his reputation and advertising revenues will, by and large, remain intact. But he should now be aware that he is not invulnerable, and future buyers may be more hesitant. Because of his fame, he cannot expect the same “simple, human measure of privacy” of an ordinary citizen … particularly not today, when social media make everyone with a cell phone or a digital camera a potential gossip columnist.

Technorati Tags: Tiger Woods, crisis, communications, public relations, Makovsky