Public Relations – Crisis Management And Paying By Results

Just a brief post to keep the blog fresh – I’m off to the former Yugoslav Republic for a spot of light media training, so – oh faithful blog snorkellers – you’ll have to do without your daily fix for a while. But, and well, here’s a thing.

It’s PR Week! The industry bible (cover price £9,674.32, at a quality newsagent near you).

No, I’m not having a pop. Not this week, anyway. Nope, I want to say – hoorah! Well done! Valuable stuff, delivered in an interesting fashion, the sort of content that I would recommend any young practitioner hoover up and keep on file for future reference. I am, of course, talking about their bit on ‘Five Steps to Better Crisis Management’. Have a click, enjoy.

Mind, I was properly pissed orf by the news article on page 2. ‘Payment by results criticised’. By the PRCA. You get the feeling that the industry bodies don’t want us to drag ourselves out of the dark ages. Payment by results is the way forward. As long as you’ve agreed what success and failure looks like and how over-achievemnt will be rewarded. It already happens in the heady world of M&A financial PR – no result, no payment – but the Tulchans and Finsburys and Brunswicks of this world make bloody sure that no matter what happens, a success is seen to have been achieved – triggering the success fees.

In the case of Cadbury-Kraft, that was a share of £240m. That’s what I call payment by results.

Corporate Reputation – Toyota And The Need For Purpose

I am very fond of the internet. (Even though, obviously, I don’t know all of it.) It’s mostly the way that things just crop up, without one necessarily looking for them, which provide insight into, and opinion on, stuff that is instantly resonant and relevant. There’s always someone out there in webworld who sees the connection between events and best practice, in any field, or sector, or discipline, even when you haven’t. Everything I’ve just said here is, of course, stating the obvious – that’s what you’d expect from the feral communities engendered by the net – and it’s not that which astounds. No – it’s the serendipity with which the net throws things one’s way – almost as if there was some sort of a fate lending an ethereal hand.

Most likely, it’s to do with quantum. Algorithm’s gonna get you.

Anyway – here’s a piece that I think is splendid. It’s from a blog called Decision to Lead – Expanding the Practice of Leadership and it’s by a lady called Frances Frei, who is (according to the blurb) ‘Harvard Business School’s resident expert of service excellence’. Which, to my mind, gives her a bit of gravitas.

The piece is about the whole ongoing Toyota situation of which we are all aware, even if we’re not sure how many cars have been recalled and what, exactly, they’ve been recalled for. Mechanical bloopers, shall we say. Frances comes at it from the angle of what I will call ‘corporate religion’ and what she calls a purpose. You can read the post yourselves, dear blog snorkellers, but Frances posits that Toyota lost its focus on its corporate purpose of ‘improvement’ – improvement of its product and improvement in the way its product was constructed. From the pursuit of this purpose came business success – sales and profits. Toyoat lost its focus – or rather its focus shifted, from improvement as a corporate purpose, to sales and profits as goals in themselves. As these became the goals of the company, so corners were cut, so the pride and motivation of the workforce became less – and it was then but a matter of time before what happened, happened.

It’s a great lesson – shame that it takes a global product recall, and its affect on the consumer, to teach it. The lesson is that businesses and organisations that have true longevity, that are the ones that enjoy enduring success (in the form of sales and profits), that are the ones that engender respect and admiration in their stakeholders – these are businesses for whom sales and profits are not goals in themselves. They are function of the bigger corporate purpose – the mission, the vision, the intent, the corporate religion – whatever you’d wish to call it. With a clearly defined and articulated purpose comes pride and motivation and – yes – reward for the people that make the business or organisation run.

(PS. Lest I be accused of being an unreconstructed, irredeemable hippy, I know that there are industries and business sectors where the purpose is nothing more or less than profit, and the people who are involved in them are wholly subsumed in the pursuit of the purpose – banking, mostly. I will be hippy-ish, mind, and ask whether we’d be in such a global economic bind right now if, perhaps, the bankers had had another purpose, other than sheer greed.)

(PPS. The need for corporate purpose has been around forever. I say this to prevent anyone trying to tell me that it’s part of the New Age of business, where everyone has a voice and everyone’s voice is important, which has been brought about by that life-changing, world-shaping phenomenon, social media. Horse droppings.)

Social Media – Handling Online Criticism

Once again, dear blog snorkellers, never let it be said that I don’t give you anything of any value. Here’s a piece which I came across recently, which is entitled “For Nonprofit Organizations: How To Handle Online Criticism” (As you can see from the errant and offensive ‘z’, it’s an American post.) Don’t be put off by the whole ‘Nonprofit’ bit (if you’re not a nonprofit), the meat of the article applies across the board. It is a long and lengthy piece, stuffed full of links, so it takes a bit of time, but it contains good thinking on the topic.

For the sake of clarity, I am not a fan of social media as a commercial marketing or communications tool. I think it is overrated and overvalued, and that far too much is being made of it by people who do not understand (for who can) where it is going, how it will develop and what effects (if any) it will have on the way people make purchasing decisions.

The one thing that I am certain of, however, is that social media will cause and trigger more problems than it solves. The very fact that anyone, anywhere – if they have internet access – can post anything is going to lead to trouble. It’s the whole ‘infinite number of monkeys, with an infinite number of typewriters’ deal, only in this case an infinite number of surfers with an infinite number of fora are unlikely to produce the complete works of Shakespeare – more likely the sort of chaos that is created by the complete works of any local council’s department of works.

But what is guaranteed is that with complete freedom of expression comes a complete range of opinion – including the bitter, twisted, isolated and disturbing – and some of that opinion will be critical. And if that critical opinion gains critical mass – rightly or wrongly – very quickly (very quickly indeed) it will be everywhere.

How you deal with that criticism – the speed with which you do so, the manner in which you do so, the content that you use – will reflect upon your enterprise, business, organisation or brand and – in fact – offers an opportunity to amass valuable reputational credits.

Public Relations – Owning The Media Agenda?

Here’s an interesting piece from O’Leary Analytics in Ireland, who’ve done some work on the media profile, and the coverage achieved by, Ryanair – purveyor of ostensibly cheap, yet somehow slightly threatening, airline travel to the masses.

Their conclusion is that the team at Ryanair, love ‘em or loathe ‘em, actually ‘own’ the media agenda – by which I understand that they manipulate it to their own ends.

Which is fair, and probably true – but what is genuinely interesting here and a real lesson for all communicators is not that Ryanair own the media agenda, but how they have achieved that ownership.

Until I saw O’Leary’s work on this, I presumed that it was the force of personality of (Wee Angry) Michael O’Leary, the airline’s head honcho, a man with a real flair for charm, diplomacy and stakeholder relations. (No, of course he hasn’t.)

But it’s not. What it is, is the company’s fearless willingness to court controversy and – most importantly – to isolate the stories (or make them up, if necessary) that are certain to create that controversy. There’s also no doubt that success and profitability are key imperatives that run throughout the business and occupy everyone’s mind. (Take the case of the Ryanair ‘we’ll make people pay for using the toilet’ story – started as a PR stunt, now seems set to become a reality, presumably because there’s a few euro to be had out of it.)

If you look at the peaks of Ryanair coverage, they’re mostly around stories that are completely calculated to grab media attention – and they’re not all positive. A set of bad results? Discount fares some more! Halve your order for new aircraft? Give some money back to shareholders! Even if it’s bad news, Ryanair do not seek to hide it – no! It’s just another opportunity to court controversy – to take control of the media agenda.

No – lest I be pilloried here – I’m not saying that this works for all companies in the same way it works for Ryanair. Ryanair is happy to have a devil-may-care, abrasive, unsympathetic, non-customer-centric image – O’Leary (Michael, not Analytics) would be the first to say it’s all about keeping prices down – that’s all that matters (in tandem with making some money for the shareholders, obviously). Not all companies – in fact very few companies – would wish to be seen in the same way.

But that’s not to say that we can’t all learn something from the Ryanair example – adapt their mindset and way of doing things to suit our own set-up, and our own corporate culture. And in so doing, maybe get a greater level of control over our media’s agenda.

Public Relations – A Question Of Ethics

Credit where credit is due – good feature in last week’s PR Week (probably still on sale at a newsstand near you, this week’s cover price £53.47) on the subject of Professional Ethics: Should You Promote These Products?

And it was a good piece – not only did it address the issue of whether who you work for and what you stand for are, possibly, different things – it also rounded up some decent spokespeople. I’m not saying it wasn’t flawed – have a quick shufti here – but it was thought-provoking and it did address one of the big industry issues.

It was particularly resonant for me because it’s an issue that I had a quick go at, some time ago, here on this very blog. If you fancy it, you can have a quick scan here.

In brief, I said that I didn’t care very much – I’m a smoker, I drink, I’ve been known to eat chips and fatty foods and, as someone has to defend the reputation of the arms industry, then it might as well be me.

I should qualify it, however, and in the light of the PR Week article, by saying that while I (obviously) have the life principles and overall standards of a weasel, I would not consider, on behalf of any client, running a communications strategy that was illegal, unethical or harmful. I think this is where the confusion lies – just because a company’s products may have the potential to be harmful (alcohol, tobacco, guns), doesn’t mean that the comms strategy has, or needs, to be.

(And yes, within my own moral code, lying on behalf of my employer is allowed – where the greater good of that employer and its stakeholders would be compromised by my not so doing. Which is a very rare occurrence.)

So was there anything that I wouldn’t touch with a bargepole? Well, yes. And this is why the PR Week article struck a chord. Very topical.

It was the thing that (I think) the PR Week article missed out. Forget guns, booze, fags, porn and fried food. It’s much worse than that. It’s something on which – I think – we can all agree.

It’s Nick Griffin and the horrible wingnuts over at the BNP.

Social Media – PR ‘Students’ And Twitter

You couldn’t make it up. This is another one of those jaw-dropping, what-the-f*ck moments. A moment when – for someone who’s spent the best part of two decades in the corporate communications business – I actually begin to question why I’m here and why the industry exists.

Here is a link to a post on the Teaching PR blog (May 2009), from Grady College, University of Georgia. I can only presume that this is a seat of learning with the same level of gravitas and respect that is accorded to Keele here in the UK.

It provides some hints and tips to PR students on ‘what not to tweet’. I’m not going to paraphrase it here. Trust me, you need to read it in all its truly frightening originality.

Without beating about the bush, the hints about ‘what not to tweet’ are not bad. Basic, but good guidelines for those embarking on a Twitter feed. But they’re all about image and communication – things that, arguably, a student of PR should have a natural feel for.

Personally, if I came across a potential communications practitioner making any of these mistakes, I would advise them that perhaps they have made the wrong career choice and that they should f*ck off and trouble some other industry with their ridiculous and naïve viewpoints and attitudes. (Hey – call me harsh.)

On top of that, if Grady College feel the need to give these hints and tips to their students, then they have wholly failed to engender any sort of PR sense into them – thus, arguably, their course should be shut down.

It’s this sort of misunderstanding, naivety and ill-informed behaviour that will provide the comms industry with the next generation of PR lovelies – all blonde hair and parties – that will perpetuate the crass mythology of PR as a business of fluff and spin and will continue to deny the industry its seat at the top table.

My faithful blog snorkellers will know my feelings on social media. This scary nonsense does nothing to change my opinions, or give me any faith in the future of our profession. I’ll leave you with the following:

“Earlier this semester, @BarbaraNixon tweeted a wise suggestion to her students: go to the Web and look at your last page of tweets. Is that really how you want to represent yourself to the world?

If not, it’s time to rethink your twitter strategy.”

No, it’s time to rethink your life.

Social Media – Vodafone Twit Highlights Need For Corporate Social Media Control

I’ve said it before and I’ll say it again – corporate use of social media is a dangerous thing, and if you are going to dip your toe, then you need a frankly medieval ‘corporate use of social media’ policy in place to ensure the wingnuts do not scupper your dinghy.

As happened earlier this month over at Vodafone, a rather large purveyor of telecommunications services to the global community. Vodafone’s on Twitter, d’you see, and although it’s only managed to garner some 9.5k followers with its 5k-odd tweets, it’s pursuing its strategy with verve.

Suddenly, last week, a tweet was tweeted suggesting that – avert your eyes, those of a sensitive disposition – “@VodafoneUK is fed up of dirty homo's (sic) and is going after beaver”. Well. Here’s commentary from www.pocketlint.com, suggesting that Voodoofone’s Twitter account is internally compromised.

Of course, it wasn’t, and – whether you choose to believe it or not, you have to give credit to Mojambofone’s crisis management people – pocketlint posted this yesterday, recounting Jujufone’s official explanation. For those of my blog snorkellers what is hard of de clickery, the explanation is pretty much ‘a big boy did it and ran away’. Only in this case, they appear to have found the big boy, and I can only imagine that he (or she, even) is in a small room somewhere, tied to a chair, while some HR lovelies get all 16th century on his ass.

 Moral of the story? There need to be rules. Perhaps Blackmagicfone has a ‘corporate use of social media’ policy, but it sure as hell ain’t working. As I’ve postulated before, there’s always a proportion of employees – and of the general public, as it happens – terminally afflicted with Twitterette’s. This is the unholy urge to shout ‘bum!’ and ‘poo!’ in public places and at inappropriate times. Generally when confronted with a mass medium (like Twitter, or Facebook), the implications of which they do not fully understand. They do not understand that their ‘bum!’ has a potential audience of – ooooh – everyone. (Luckily, in this case, it was an immediate audience of 9.5k people – although you can still find the post, because it’s been re-tweeted and re-tweeted – whatever that means.)

Anyway, bottom line – a proper use of social media policy, with proper rules, is absolutely imperative. It won’t stop this sort of nonsense altogether, but it may make the f*ckwits think twice. I recommend really, really serious disciplinary action. Boilings in oil. Skinnings alive.

But really, the way to deal with it – folks – is NOT TO GET INVOLVED IN THE FIRST PLACE.

How many times do I have to say this?

Social Media – Not Just For The Nasty Things In Life….Oh…Hold On…

This piece from the new York Times. Jonathan Schwartz, the ‘last chief executive’ of Sun Microsystems – sounds like he ought to be the subject of a movie starring Tom ‘Frighteningly Insane’ Cruise – announces his resignation via Twitter. (Here’s the feed in all its Twittery glory.)

(Actually, I’m fairly sure that he didn’t announce his resignation via Twitter – technically speaking – I’m fairly sure that he did it like everyone else would have, in a letter, delivered by hand to Larry Ellison, CEO of Oracle and a man ‘not especially fond of Mr Schwartz’.)

For the hard of clicking, who want everything fed to them on a plate, he did it in the form of a haiku.

That being as it may, the NYT has some interesting stuff to say about Mr Schwartz. Apparently, he ‘has been fond of using the internet as a soapbox’ and was ‘the first CEO of a major company to put up his own blog’ and, indeed, ‘pushed the Securities and Exchange Commission to put blogs on equal footing with press releases and filings when it comes to disclosing critical business matters to investors’. Doesn’t say whether he succeeded.

Which all sounds great. Then you dig a little and find that between April 30 2008 and Feb 3 2010, he managed 36 tweets. Hardly prolific, although he has amassed over 10,000 followers. (Sycophants.) Oh – and his Twitter tag is OpenJonathan, which I’m not wholly convinced by. Luckily, a lot of his Tweets link to his blog.

And his blog’s a belter. This is the way it should be done. The NYT under-egged the cake in my opinion. It was started in June 2004 – here’s the first post, read it before Mr Ellison takes it down – it’s been updated regularly and, as far as I can see, mixes core product messaging (at least I think that’s what it is, I’m not really qualified in the techie arena) with splendid, apparently homespun philosophy. I particularly like the post about having lunch with Tony Blair – genius.

Anyway, this isn’t a hagiography. What it is is a suggestion that more c-suite execs should be trying to approach this tone of voice and this balance of content and should be talking to their audiences through the medium of digital (and I do mean the medium of digital, not the medium of social – I know they’re easily confused. For the record Twitter is social – and we can see here that it’s nowhere near as effective or compelling as the blog, which is digital).

As we know, in this post-economic apocalypse age, our audiences – especially employees, suppliers, business partners and customers – want messages of comfort and reassurance, and want to see companies walking the walk, not just talking the talk. What better way to achieve this than by showing a bit of personality – something that people can relate to.

Why do I suspect that Mr Ellison of Oracle probably disagrees.

Corporate Communications – Power Of The People, Not Power Of The Media

Recently I posted about Starbucks and its amazing transformation – a 200% rise in profits over a three-month period – and how it appeared to be driven by a) the return of Howard Schultz (undoubtedly) and b) an emphasis on great, best-in-class, employee and customer relations. True, S-Bux has more than five million Facebook fans and 700k Twitter followers, but the reality is that the ‘conversations’ that are taking place there – while no doubt translating into some level of sales – are in no way responsible for the dramatic turnaround in Big Coffee’s fortunes.

No, they are not. But it didn’t take very long before some socmed evangelista leaps on the bandwagon and attempts to imply that they are and – more – that Howard Schultz prefers social media over other marketing channels. I was alerted to this frightening opportunism by this post on Steve Virgin’s blog, which directs you to the piece in question – here – at BrandRepublic.

The argument, which is used to engender and foment one of my least favourite discussions (‘Why do some people get it, and others don’t?’ – more of it later), is based on an interview that Schultz gave to Marketing Magazine – which you can read here.

(Sorry, dearest blog snorkellers mine, I know this is a lot to be dumping on you, late on a Wednesday afternoon, but it is important in our crusade against the spurious lionisation of social media as a tool for business benefit.)

In the interview, Mr Schultz was asked ‘Which one (marketing) channel will take precedence?” – a leading question, of ever there was one – and his answer was really quite clever. He said “I think social media is a natural exten­sion of our brand because we want to do things that are unexpected, and to speak to all sorts of people who are engaged in social media. It’s tough to measure but there is an incremental benefit to sales.”

And he’s right, there is an incremental benefit to sales – but notice he’s careful not to go overboard in terms of what that incremental benefit is. He also, tellingly, qualifies his answer by saying that social media ‘is a natural extension of (the Starbucks) brand’ – ie it is suited to the Starbucks brand, but not necessarily suited to other brands. He also, even more tellingly, doesn’t actually answer the question – he doesn’t say that social media is the channel that ‘will take precedence’. To put those words in his mouth is careless misinterpretation.

And, as promised – here’s a thought on that ‘getting it’ question. (Apparently, according to an Internet Advertising Bureau study, only a fifth of marketers see social as core to their marketing strategy.) Some brands, businesses or corporations don’t seem to ‘get it’ because they don’t need to. It is not right for their brand or business. It is not – in Mr Schultz’s words – ‘a natural extension.’ It really is as simple as that.

Corporate Communications – Trends for 2010

Following on from the piece in PR Week (issue dated January 29, probably still on sale, this week’s cover price – oooooo – £12.34, or nearest offer – or just click here) about the latest Edelman Trust Barometer (well done the Week – a genuinely useful news piece – I have high hopes of you for the future), I came across this, an article from Entrepreneur magazine.

(Before I go on, I should also say that the author of the article, one Susan Gunelius, also features regularly in Communicate Magazine’s ‘Who’s Blogging What’ section. So do I, actually, so it’s no guarantee of quality.)

Anyhoo – yesterday, btw, was Groundhog Day and the wee critter duly came out of his quarters, saw his shadow and condemned us to six more weeks’ winter. Or maybe it’s just the States. Small creature’s vermin, in any case. The article in Entrepreneur magazine provides – for discussion, obviously – 10 marketing trends for 2010. I have to say that my initial instinct was to discard it as hippy nonsense (and some of it I still do) but in the light of what Messrs Edelman had to say, I can’t help but thinking it needs a further examination, especially in terms of how some of the 10 might affect the corporate communicator.

Thinking caps on, then, chaps – eyes down, here are the trends that we should be pondering:

  • Transparency and trust are paramount (Edelman go as far as to propose that trust and transparency rank higher than product quality – I’m summarising – and that financial return is one of the least important factors in driving corporate reputation)
  • Less interruption, more enhancement and value-add – don’t go disturbing people with your messages (unless you’re Mr T and Snickers) – give them something they can use
  • People want value – sometimes as simply as making their disposable incomes go further with discounts and free stuff – give them that and they’ll love you
  • Show, don’t tell – actions speak louder than words, so demonstrate what the benefit of your stuff is – what will the audience actually get if they give you their hard-earned
  • Peace of mind is the new black – your audiences want reassurance, because they’re hurting right now, and they want to hear it in your marketing and communications messages

OK – I’ve paraphrased it, and I’ve not included all of the 10 Marketing Trends for 2010 – because I still don’t believe in the ‘global conversation’ voodoo, and I do think that there is still an outside chance that social media as marketing, comms and sales tools may still be exposed for the valueless charades that they are. (Oooops – did I say that out loud?)

(Back to Edelman briefly – their study shows that traditional media are still more highly trusted that social media, blogs or websites – so there, social media evangelists and gurus! Eh?)

Finally, and it’s not new, but maybe we can make it work this time round – ‘integrated marketing trumps standalone tactics’. This means a new era of co-operation between sales, marketing and comms, if we are to get it right.

(Less sniggering at the back, please.)