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Friday, January 29, 2010

Word of Mouth: Reputation Builder, Reputation Killer

Latest research by The Nielsen Company this month points to 82% year-on-year growth of global time spent on social media sites. This has clear implications for companies looking to build and protect their reputation in the online space and for those who either mismanage or underestimate the power of 'member communities'. Examples of corporate misdemeanours in this area were alluded to in my previous post: Online Reputation: Tips to Navigate Disaster.

However, it is not unreasonable to expect that many companies do not have the expertise to effectively manage their own reputations - and that they have genuine needs for wise counsel in this area. It can be a minefield finding the right expertise, however, in a PR industry that is largely self-regulating.

At a regular monthly networking meeting with the intelligent and fun folk at the Executives Association of Great Britain, I had the great coincidence - and pleasure I might add -  to be seated next to Nick Peters. As it turned out, a fellow, no-nonsense Yorkshireman (should I state, more specifically, of the East Riding). Following a colourful journalistic and broadcasting career in the UK and US, Nick recently launched and now edits and publishes Business First magazine. I have already tweeted on how content-rich and refreshingly informative his title is.....

......and that before he published my feature on pages 26-27 of this month's issue. A feature delving right into the pitfalls of dealing with the PR industry. Take a look. I'm risking contention I know with my industry peers. But it's not all bad news! Companies do have a practical guide here how to ensure they work with the best and safeguard their public integrity.


Thanks to Nick Peters, Editor-inChief/Publisher, Business First Magazine for granting link-to permission www.businessfirstmagazine.co.uk

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Monday, November 30, 2009

Survival of the Fittest: PROs at the limit of Endurance

With the corporate lifespan of a CEO reduced to 3.5 years, the pressure is on for close advisors to demonstrate worth beyond the cloistered confines of the Board room and into the darker recesses of the business. For decades, communication and PR professionals have fought for their place at the Board, garnering trust and necessarily close rapport with their CEOs. Rightly so. It is a place I defended rigorously during my career as a Fortune 500 and FTSE 100 corporate communications director.

However, a precarious situation arises in that intimate rapport between a senior communicator and their CEO as career fortunes become intertwined; the term departure of a CEO can mean the shunning and corporate isolation, if not sometimes dismissal, of a communications chief for no apparent reason other than their perceived over-association with the 'ancien régime'. Unfair, yes. But internal perception often prevails over business logic.

Yet bright prospects beckon. With PR professionals placed fortuitously at the ever-narrowing intersection between traditional and emergent social media, and with an increasingly volatile issues and advocacy environment that business must contend with, stars in the communications industry may be re-aligning.

In true Darwinian style, those PR agencies and individuals who flex, who broaden their skills, who actively apply their accumulated past wisdom and sate their knowledge are those most likely to outlive the short CEO life-cycle; those least disposed to change simply risk dropping out of the PR gene pool altogether.

So, with market turbulence still in prospect, what are the key attributes that will determine survival of the fittest among in-house PR executives - and agencies?

This summer, we advised Dr. John A. Caslione on the launch of his business book, 'Chaotics', written in association with global marketing guru Philip Kotler. Their case study based premise is that an era of turbulence, with chaos, risk and uncertainty, will characterize the future business landscape. Corporate communicators will correspondingly need to fine-tune their agility, composure and strength in handling the 'material' issues facing industry. Acquisitions, divestments, increased activism and the need for ever broader community engagement will test the commercial, leadership and predictive strengths of the communicator charged with bringing the outside world in to corporate strategy.

A contributive understanding of what constitutes good corporate governance, an acquired intuitive sense of consequences of corporate action, of the process and rules of engagement in exchanging meaningful dialogue with mobilising influencers are essential in this recession and post-recession environment. It will force supreme skills in building collaborative networks, in leadership and tactical diplomacy.

Communicators will need to emerge as a new breed of innovator, leading organisations through new social pathways.Too many still underestimate the need to upskill beyond their traditional media understanding. But arguably the train is already leaving the station: Twitter is establishing itself as potent social media platform among Fortune 100s and over 61 Fortune 500 CEOs are penning blogs.

Attributes such as penetrative media contacts, razor-sharp written and verbal communication skills, a motivational presence and an aesthetic eye will no longer stand out as key differentiators. In Maslow's terms, these once-lauded skills have become simple hygiene factors, though they certainly credit the evolution of the PR industry thus far. Foresight and ongoing evolution are necessary here.

For communication agencies, acquiring in-house levels of client and commercial insight will be essential. It is where I have found my reverse transition from in-house to consultancy extremely valuable. De-layering, driving economy, transparency and accountability will remain essential in these straitened times. Breaking down protectionism and forging strategic partnerships with social media, marketing and technology companies will drive integrated client solutions. Out-sourcing specialist skills and improving the short-term project offering will enhance agility.

For organisations, only those willing to attract and empower strong communications talent will see their own prospects transform, whilst resistant ones will certainly continue to require application of the communicator's more traditional powers; those of persuasion, endurance - and staunch optimism!

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Sunday, September 13, 2009

Economic Upturn? 10 Questions CEOs & PROs Must Ask!


With the OECD's Interim Economic Outlook published just last week, this has been a good time for many state officials around the world to declare visions of "green shoots" of economic recovery. Indeed Japan, France and Germany were reported officially out of recession (if you consider at least two quarters of positive domestic growth as an indicator).

If you are a British Member of Parliament, however, such an early prognosis may condemn you to Whitehall's wasteland and a very public drubbing along the lines of that received by Business Minister, Baroness Vadera, when she dared allude to prospects of an UK economic revival earlier this year.

No. For the moment at least, British MPs - and Labour pundits in particular -  are well advised to keep stumm as the country lags the overall economic trend, notwithstanding tentative signs of UK manufacturing recovery (the strongest growth in three years during July.) Whether Prime Minister Gordon Brown's address this Tuesday to the annual Trade Union Congress will raise the embargo - and thwart David Cameron's electoral ambitions in the process - remains to be seen.

This restrained approach must not, however, be aped by commercial enterprise. Just as contingency planning is necessary in advance of an imagined crisis, organizations need more than ever to anticipate and embrace the notion of resumed corporate success - even if it currently seems to be doomed prophecy. For this is not the time for bears in the boardroom if companies are to muscle their way out of the curve and seize early competitive advantage (a philosophy echoed by corporate strategy guru, Philip Kotler and CEO Dr. John A. Caslione in their latest book, 'Chaotics', whose UK launch strategy we recently advised).

Nor, must I say, is it the time for organisations to cut their communications talent. While CEOs and senior leadership teams may be bunkered down in their war rooms, good PR professionals* - in-house or agency - are those supremely qualified and adept at raising a head above the parapet, at sounding the marketplace, at taking a long-view of horizon opportunities and shaping a more bulllish internal culture to evolve corporate success.

In an earlier blog, 'The Client Brief: When PR Agencies Fail', I mentioned that strong PR advisors would tease out the essence of what makes a company viable for the future and build strategies to create subtantial corporate reputation and growth. Certainly CEOs should already be asking themselves the following questions with trusted, seasoned PR/communication advisors driving answers in a way that builds a future corporate mission that is transformative, perhaps even revolutionary, in helping an organization re-launch itself into a deeply altered landscape.

These, then, are my top 10 questions for the current climate - in no particular order and by no means definitive:

1. Learning
"What learnings - or "gems" - have we taken from being forced from our comfort zone? (What worked? What failed? What mattered to the marketplace?)

2. Innovation
Are we embedding those "gems" throughout our product service offering, talent recruitment/retention, issues intelligence and control, corporate language? (What will be the timeline and specific action points to do so?)

3. Skills
Have we upgraded our skills to achieve more with less (for our clients/customers/shoppers/users?)

4. Proximity
Have we reinvigorated our public/social and internal employee networks?

5. Dialogue
Have we evolved our understanding of, and outreach through, their connection channels? (have we clarified internal roles/responsibilities and protocols?)

6. Competitivity
How will we organise our infrastructure and processes to secure and maintain future USP innovation and agility?

7. Value
How will we (re)structure to make our client/customer value sustainable - and understood?

8. Feedback
How will we capture and feed client/customer/public/regulatory trends and response into our continuous improvement?

9. Relevance
Is our current business model still relevant to achieve all of the above - sustainably?

10. Vision
What does success look like and how will we measure it/drive accountability?

Just as slowly as doors to opportunity open, so too can they slam shut, leaving many institutions - and their consultants - on the outside if questions about the company's future shape and role are not aired in a frank, timely and trusting environment.This is where robust, proactive PR counsel matters.

We'd be very interested in hearing whether the current climate and prospects are re-shaping the way your are interrogating your business. Or that of your clients. Please do post your insights which we always enjoy reading!

*In a future posting, I will take a look at what makes a great communications advisor and the skills they too need to survive in these turbulent and uncertain times. Please feel free to share any advance thoughts.

Image thanks to kind contribution by Alex Nolasco http://www.flickr.com/photos/alexandernolasco/382374166/

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Thursday, July 30, 2009

The PR Brief: What it Should Include

In my last blog, I outlined the reasons why so many agencies fail to deliver against client briefs. One of my esteemed associates suggested that I focus this month on what a client brief should include, given that I profess a robust brief to be the foundation to building solid PR programmes - and to recruiting the right agency talent.

My thoughts may not be all-encompassing and I recognize that a degree of tailoring is always necessary. In essence, however, I have 3 guiding principles in setting up a good brief:
  1. CONFIDENTIALITY: No brief must ever be submitted to any outside service provider without a legally endorsed NDA (non-disclosure agreement). I am happy to provide an example of this.
  2. INTEGRITY: Extreme care must be taken not to include material of a financially sensitive nature (always worth running a brief past the IR team). An equal amount of care must be taken not to 'spin' content. The brief is not a PR document, but a frank and honest review of the company's opportunities and issues to build robust PR response.
  3. RELEVANCE: The brief should be geared towards framing the issues and opportunities that the agency can be expected realistically to support. This demands that clients have given first thought to what their marketing/agency expectations are and that they understand what peripheral information is important in helping agencies better understand the company and climate in which they'll be expected to operate.
For me, word count does not matter. Content does. And this, in my view, is what a good agency brief should include:

1) The Corporate Story
This section must give as much flavour about the dimension, character, values and principles of an organisation to help PR agency familiarisation but also to aid external corporate positioning.

  • What is the company provenance/history and track record?
  • What have its milestone achievements been?
  • What are its stated mission, vision, values?
  • What are its key metrics (financial/geographic) and growth ambitions?
  • Is it a market leader or challenger?...
  • ... And how does it shape and execute that role?
  • What characterizes the company's leadership and internal culture?
  • What is its business model and structure?
  • What are the company's issues and crisis alert procedures?
2) The Trading Environment
Here follows an analysis of the company's trading prospects and opportunities, coupled with a realistic analysis of the marketplace threats/issues that the agency may be required to take into account as it develops PR plans.
  • Who is the competition?
  • What is driving their strategy against the company?
  • Which media channels do they exploit?
  • What is the company's relative performance?
  • What is the company's market differential (eg. technology, innovation, commercial)
  • Where are the trading threats - and opportunities?
  • What are the regulatory barriers? How are these being addressed?
  • How does the company plan to raise future market entry barriers?...
  • ...Or exploit current market conditions?
  • What is the company's product/service roadmap?
  • What key sales and marketing initiatives are planned over the next year to drive growth?
3) The Market Environment
This section begins to deal directly with the company's public outreach strategy and begins to provide insight into the more direct role a PR agency can be expected to play in support.
  • Who is the company trying to reach?
  • How are these audiences segmented?
  • What is the current company proposition/message to these audiences?
  • What motivates and characterises the target consumer/purchaser/specifier groups?
  • Which (online and offline) media channels most influence these groups?
  • Which other organisations (NGOs etc) also influence purchase decision?
  • What impact have these media/groups had?
  • What have been the company's past, public issues? Were they resolved?
  • Which marketing/corporate outreach initiatives have seen most success?
  • Where has the company failed to reach/penetrate its markets?
  • What are the company's key marketing objectives over the next 1-5 years?
4) The Internal Community
This section recognizes the interdependencies between external and internal communications planning and focuses on how the internal corporate culture can impact or promote external PR success.
  • How many employees are located across the company?
  • What are current employee engagement strategies/dialogue channels?...
  • ...How effective are they?
  • What is the employee retention record?
  • What are the outcomes of any employee surveys? What are the key issues?
  • Are any major corporate restructuring initiatives planned?
  • How is internal and external communications structured?
  • Who are the key spokespeople/external ambassadors?...
  • ... How competent or well equipped are they?
5) PR Agency Objectives
This section deals with the very specific company requirements of the PR agency and should relate clearly to the above company analysis. It should form the basis of the final agency quote and be embedded within subsequent contractual obligations. For example:
  • What credentials (skills, experience, specialism, contacts) must the agency demonstrate?
  • Which geographies will they serve?
  • What will be their messaging and corporate positioning contribution?
  • What strategic market/PR/media insight should the agency contribute?
  • Which markets/audiences should the PR agency engage?
  • What (online/offline) influencer programmes should the agency deliver?
  • How must the agency integrate with the business?
  • How should the agency evolve its client PR skills?
  • How will success be measured? What are the key performance metrics?
  • What is the budget?
  • How will the agency ensure transparency against spend?
  • How will they report (to whom, by which method, with which frequency)?
A good client brief is the precursor to any agency pitch and final selection; it sets clear client-agency expectations and is integral to final contractual obligations; it is the reference against which ongoing agency performance can be objectively measured and reviewed.

A good agency, as I mentioned in my last post, will engage with this brief, may challenge it and generate value-adding discussion to help move the company forward in its thinking.

My passion for a good client brief stems from the conviction that, without a brief, there is no performance. And without performance, the communications role will never be viewed as a robust, commercially-minded and trusted entity within an organisation. It is ultimately, therefore, a tool of professional - and personal - credibility.

(With our FTSE 100 and Fortune 500 in-company credentials, we have vast experience in setting up client briefs, including agency performance goals and metrics, as part of any PR agency recruitment or performance evaluation process. Contact us if you would like to learn more).


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Tuesday, June 30, 2009

The Client Brief: When PR Agencies Fail

Many businesses fail every day for reasons outside of the current economic climate. According to the United States' Small Business Administration (SBA), around 90% of small businesses fail within the first two years of operation primarily because many entrepreneurs lack the basic knowledge and experience to handle early-stage commercial challenges. Poor marketing strategy, where companies are unable to use their PR and marketing tools effectively to promote and sell to their publics, is cited as one critical internal threat to success.

Just this month, 'The Industry Watch' report by accountants and business advisors, Stoy Hayward, predicted that rising unemployment and falling consumer spending would cause a record 36,200 businesses in Britain to fail this year - almost one hundred per day - with no let-up until at least 2011. Wide-scale threatened job losses across Europe at electronics giant, Phillips, bear out the gloom but raise nagging doubts as to whether a more progressive consumer outreach strategy could have helped mitigate any potential loss.

As a former corporate director of communications, I've always taken extremely seriously my responsibility to lead my in-house team and out-sourced PR agencies under the common mantra that a marketing/PR campaign (or agency itself) is only as good as the initial client brief. Indeed, I would still to this day vehemently argue that a thorough brief remains the essential pre-condition to any campaign success.

The notion that you only get out what you put in holds particularly true in the client-PR agency relationship. As a former client and team leader, I would have no qualms stalling all activity until a thorough brief was documented, agreed upon internally and contractually bound along with corresponding agency performance metrics (subject to quarterly review). A good brief always makes the difference between focused and strategically beneficial activity versus knee-jerk, unaccountable action that offers little sustainable worth to a company.

What concerns me, despite having made the transition to consultancy, is that placing the entire onus of campaign success on the client's ability to brief is a distortion of a relationship that, by its very nature, should be collaborative and based on shared responsibility.

All too often I have encountered PR agencies using the mantra of poor client briefing to explain away the failure of a PR campaign to get off the ground - usually at budget renewal time and having conveniently invoiced a year's worth of activity without raising campaign issues along the way. On the flip side, this is usually when I have been called in by companies to trouble-shoot the PR agency relationship on the basis of failed expectation and zero accountability against spend. These can be highly charged, emotional gatherings where no-one - not least the organisation being served - emerges as the winner.

The notion that a PR campaign/agency is only as good as the client brief is flawed on several fronts:

Firstly, it assumes that the commissioning client fully understands the nuanced discipline of PR or audience dialogue.
I am astounded that, in this day and age, some large corporations still segregate the in-house marketing function from PR (in the same way that some micro-segregate online reputation management from social media marketing). I have been often struck by the absence of basic experience and knowledge some senior marketers - and other commissioning functions - display in such a grass-roots area of public engagement so pivotal to a company's public fortune. Whilst it's a fabulous opportunity to help educate and raise internal organisational standards in public engagement (as I've often done), it's also an open invitation to poor campaign management, wasted funds and corporate exploitation by unscrupulous PR agencies (as I have witnessed and also had to correct all too often).

Secondly, it assumes the client PR principal is an expert in PR campaign and resources management.
Whilst institutions such as the UK's Chartered Institute of Public Relations are seeking to address professional standards in the qualification and practicing license of PR executives, there is still an overhang from an era that saw executives from all walks of functional life drift into the communications role as a 'pre-retirement' holding place or where organisations misguidedly perceived communications to be a safe, soft haven to place people - for a variety of reasons. A controversial statement, I know. But I've seen plenty of examples of the effects of poor talent placement in senior PR/communication roles.

Thirdly, it assumes that the client is fully candid about their business!
It is perhaps one of the hardest tasks of any communications professional to deal with a company that refuses to acknowledge it has issues to address or opportunities for change. Yet the 'Pollyanna Principle' is rife in organisations where a fear of failure prevails. This can be borne out of a punitive corporate culture, (I know one where executives were fired if a negative press article appeared) the complacency of market leadership, the refusal to acknowledge a need for change - or out of the primitive and ill-judged belief that the purpose of PR is purely to spin good news stories as an extended form of corporate advertising.

Yes, these companies still exist. In a June article in the Wall Street Journal, 'Why Business Plans Don't Deliver', its author states a number of reasons why business plans commonly fail, citing, among other things, an 'Everything is Wonderful' belief on the part of leaders who fail to recognize potential pitfalls to their organisation's success. Failure, for instance, to acknowledge the impacts of competition, pending legislation, changing public mood, the evolution of technology and new media channels will fundamentally distort any campaign brief and set PR teams immediately up for failure. Worse still, any attempt to distort reality among the public and its serving media will carry long-term reputational damage from which it is always extremely difficult - and often impossible - to recover without fundamental leadership or corporate change.

Finally, it allows too much abdication of responsibility and passivity on the part of outside agencies.
As a client, my respect for the calibre and value of an outside consultant always rose proportionately with the lengths to which they would go to risk an incisive, thought-provoking and sometimes unpalatable question to draw you out of your comfort zone. Being provoked to a mild degree of defensiveness is a good sign of an agency capable of analysing your business, of seeing disconnects with public expectation and future trends, of delivering stark truths and guiding your company towards meaningful and positive change.

Of course, some companies and individuals will always prefer the nodding acquiescence and unquestioning compliance of an agency that has retention of that year's contract at the forefront of their mind beyond the construction of a long-term client relationship built on commercial insight and candid exchange. Equally, those companies and corporate individuals may not yet be ready to face change - and may be culturally incapable of doing so. There are plenty of well-paid, big-name PR firms already trading in that space. It is not where my company operates.

Thankfully, there are also plenty of pioneering PR enterprises staffed by passionate individuals motivated to see their clients prosper at the risk of pushing sensitivities. Equally, there are companies keen to maintain their agility and profile edge when the upturn comes and who encourage active agency intervention and strategic input.

It is always incumbent upon any outside advisor or agency to interrogate a company's brief; to cross-check the robustness of a company's position and assumptions in a changing marketplace; to unearth the gems that may not be immediately apparent to those operating perhaps too closely within an organisation; to challenge existing methods of audience outreach and to inform new dialogue channels; to help companies achieve and exceed their existing and future marketplace potential. None of which can occur without healthy exchange and proactive input by the agency into that initial corporate brief that symbolises the manifesto on which the company will secure its future public licence to operate.

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