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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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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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Sunday, April 5, 2009

Where Greek Myth Meets Modern Reality

It's time I posted my latest blog again and, being away for two weeks in Cyprus, I thought I would use the opportunity to escape to a remote, cobbled-street cafe in Polis and post something more light-hearted beyond my usual observations on technology and the economy. Ha! It is not so easy to escape one's predilictions, I find - even here as I sit a universe far away, it seems, from the call of the Western World digesting the rich G20 summit meal that left a rather gristly lump of further Afghanistan commitment to swallow.

I thought I might 'pen' something casually observant about the unsettling juxtaposition I find between the entrenched, "sunset stage" English expat community clearly at home here with left-hand driving - and inclement weather as it happens to be today! It is a population finding its place amidst an ebullient, though rather aesthetically decayed form of mediterranean life. For Cyprus appears to have quite a unique character.

Here, on the Northern coast in Latsi, understated fish tavernas serve an amazing array of fresh catch yet pay little homage to the precious needs of tourists looking for the usual trappings of finished boulevards and well-groomed hedgerows. Indecipherable road signs in the Greek alphabet make navigation in some parts impossible on pot-holed, half-completed roads, whilst liberal consumption of a particularly potent form of 80% proof "fire water" makes driving more precarious with locals given to test their new-found invincibility on hair-pin mountain bends.

Meanwhile, not far from Pomos , an ominous military outcrop juts over the coastline. Set among deserted hills and erected by the Turkish military to keep monitor over Greek Cypriot counter-activities, it's a hideout worthy of any James Bond villain. An expressive love of children, voluptuously-curved olive-skinned women and children further accentuate cultural differences.

From what I have seen in my short stay thus far, half-finished cement-block villas are definitely de rigeur. It has not taken long to realise that the country, a close neighbour with Lebanon, Syria and Iran, is mirroring similar Western European, if not UK-specific, issues.

Talking to long-term visitors and residents of the island, the collapse of Sterling has meant that many pensioners looking for their final sanctuary here in the sun are having to retreat back home with pensions eroded and mortgages now unsustainable. House/villa prices here are startlingly high by UK standards. The building boom that happened under past EU funding means vast tracts of natural land have been turned over for development and now remain in a state of unattractive disrepair as new purchases are abandoned and building contracts suspended under the current economic freeze.

Selling existing villas, I am told, is nigh on impossible as the market has come to expect ownership of brand-new builds. Rental markets, however, are threatened by the shrinkage in global travel and, despite being the Easter season, all seems unseasonably quiet with some local restaurant takings down 40%.

One resident bitterly reports that this has not stopped the Russians from acquiring prime land designated and previously protected as areas of natural beauty as local officials look to any forms of (multi-million dollar) income generation. Indeed, the sweep of cliffs leading to the impressive Aphrodite Baths, that once apparently afforded uninterrupted views of mythical coastline, is now entirely obscured by luxury villa and hotel developments.

It is here where I lost my mobile phone. If ever there was a good place to lose it, here it was on the dramatic shores where Aphrodite, acccording to Greek Myth, used to bathe and receive her lovers. No doubt she felt the compulsion to claim my phone to put in a quick 'come-hither' call to Adonis. Who can blame her?

Whilst once such a loss might have caused apoplexy, I find myself amazingly non-chalant about my loss of mobile phone connection. In the past, it would have felt like a limb had been severed or that my business had been placed in mortal jeopardy. It is, however, astounding to think that I can sit in a back-street cafe in an obscure part of town, re-connect to the world in a WiFi flash via my laptop, update my Facebook and Twitter accounts, log into essential emails to notify everyone that I simply now have a different channel through which I can be reached. I can sit, thousands of miles away from home, take in the atmosphere and life around me and post my 'live' thoughts as they occur to my company blog.

We are increasingly one world. United by technology and bound by common economic issues that increasingly transcend geographic borders and cultures. It somehow feels appropriate to me that the G20 summit happened when it did, at a time when I might otherwise have presumed I'd find myself here in Cyprus in a completely different world, comfortably isolated and immune from 'other world' issues.

I am not by any means a political activist, but I find some degree of serendipity in this sense of shared responsibility and united citizenship. And, of course, in the fact that I can still operate the realities of business seamlessly from the land of far away myth.

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Tuesday, January 20, 2009

Obama: On the Brink of Danger?

Lexicographers ages hence may well look to the word 'deficit' and deem it to have entered common, new-age parlance from around 2008 A.D. It's as prevalent now as were the terms 'easy money', 'fat cats' and 'de-regulation' so reminiscent of the hedonistic era of Thatcherism in the 1980/1990s (Kenneth Clarke should feel quite at home in his newly appointed position as Tory shadow business secretary, notwithstanding Labour's current tenure).

The scale of the current banking deficit means that world governments are collectively having to raise a reported 1 million, billion dollars of taxpayers' money to recapitalize banks to promote even greater spend (debt) among average householders - under the guise of developing the business economy. Meanwhile, according to latest ONS figures published last week, Britain's goods trade deficit with the rest of the world stretched to £8.3bn in November - its widest margin since records began more than 300 years ago. It bears testimony to the criticism of the country as a failed manufacturing and increasingly reliant, service-based economy.

Reputation deficit, however, is a term rarely, if ever, used. It's what I would describe as the shortfall between what communities expect from an organisation - or individual -on the one hand, versus what that company or individual is ultimately willing - or able -to deliver. And yes. It too is measurable.

Too large a gap creates a toxic void that can develop dramatically without warning or it can evolve imperceptibly to corrode any goodwill towards a business, individual or regime. If left unchecked, it can mean the end of careers and personal ambition, or the collapse of any future legitimacy to operate. Obvious examples include the impeachment of Bill Clinton, the forced resignation of Richard Nixon, the abolition of apartheid, the dissolution of Arthur Anderson in the wake of Enron and dismantling of the Berlin wall.

Today marks a truly historic day in America's inauguration of its first black African-American President, Barack Obama. Backed by 92% of black American votes and by international credibility and appeal that transcends global religious and geographic divides, the hopes of so many in the world rest on his promise today to help ''remake America''.

Yet he, too, despite his considerable store of goodwill, stands precariously at the edge of a reputational abyss. Amidst the ''gathering clouds and raging storms'' of an economy in the grip of its most severe recession since the Great Depression, with a budget deficit projected to exceed $1 trillion this year, with two costly wars being waged and the American health and welfare systems under perilous strain, Barack Obama may well find the public's initial euphoria short-lived without swift, positive action and some early economic 'wins'.

For here, at the one end of the reputation scale, is the weight, calibre and values of the individual; at the other the sensitivity and enormity of the political issues faced. It may require that the American people find it in their hearts to rise above any immediate, personal concern and give him a fair chance to succeed for the scales not to tip against him - and generate his own reputation deficit before he's even off his olympian-size starting blocks. As his advisor, I would recommend that reasonable patience be his repeat, key message to the outside world if he is to overcome this first goodwill challenge to this much-needed, new era Presidency.

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