Posts Tagged ‘reputation’

Beating the Bankers

Monday, August 30th, 2010

No offense to all my colleagues in the PR industry, but the world is pretty topsy-turvy when the public has a more positive view of us than of bankers.

I’ll let that sink in for a minute.

Ah, the exquisite joy of nah, nah, na nah nah.

For my entire career, advertising and PR people have scraped the bottom of the barrel full of miscreants not to be trusted, right down there with used car salesmen.

According to Ragan’s PR Daily News Feed, (okay, consider the source) the public has a whopping 36 percent approval rating of the ad/PR industry.  That might not seem like much if you’re an art director or a copywriter, but let me tell you, it beats the airline, pharmaceutical and banking industries, to name a few.

I’m not sure our image has risen among the public, but perhaps others have just sunk while we stayed the same.  Or maybe with those glamorous Mad Men running around cable TV, our image has improved.  Or not—all those three martini lunches were nothing to brag about.

Of course, since “image” is our stock in trade, you’d think we’d do better for ourselves.  What is that homily?  The cobbler’s children go barefoot?  While, what?  While we PR people are busily boosting the image of the airline, pharmaceutical and banking industries?  Ooops.  I guess not.

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50+ Years Later, Brand Basics Remain

Monday, June 21st, 2010

There’s an iconic B2B ad by McGraw-Hill Publishing from 1958 that’s been played and replayed over the years.  I first saw it in the ‘80s, and now it’s been reprinted in the current issue of B2B magazine.  It’s a fabulous photo of a grumpy businessman sitting in his office chair on a white background, glowering at the reader.  Here’s the copy:

“I don’t know who you are.

I don’t know your company.

I don’t know your company’s product.

I don’t know what your company stands for.

I don’t know your company’s customers.

I don’t know your company’s record.

I don’t know your company’s reputation.

Now—what was it you wanted to sell me?”

It’s a classic ad, as true in 1958 as it is today.  Yes, things have changed significantly, but it’s still important to build your brand, maintain your reputation and be memorable in the marketplace.  It’s still important to pre-sell your audience, regardless of the vehicle you use.  Of course, in 1958 there was only one practical vehicle, and hence the final line of copy in the ad:

MORAL:  Sales start before your salesman calls—with business magazine advertising.

Now sales start with web sites, e-mail campaigns, SEO (Search Engine Optimization) and so much more.  But the fundamental concepts haven’t changed a bit.

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When Your CEO Chokes on His Own Foot

Monday, June 14th, 2010

It’s been a few days since we’ve heard from BP’s Tony Hayward.  I envision his PR team struggling with rope and duct tape to bind and gag him in the boardroom, posting sentries at the door.  The man just kept spewing gaffes like, um, oil in the Gulf.

To recap a few of his most egregious utterings:

“What the hell did we do to deserve this?”

PR lesson #1:  It is not about you, Tony, or even your company.  It is about the 11 people who died, and the people whose livelihoods are destroyed, to say nothing of the environment.  How can a CEO be this tone deaf?  People’s lives are lost.  Keep priorities straight.

“The amount of volume of oil and dispersant we are putting into it [the Gulf] is tiny in relation to the total water volume.”

Are you trying to tell us this is not much of a problem, Tony?  If so, here’s PR lesson #2:  Tell the whole truth and nothing but the truth.  Do not attempt to downplay or understate the problem.  It just irks people deeply when you assume they are too dumb to know the biggest environmental disaster in history when they see it.

“I think the environmental impact of this disaster is likely to have been very, very modest.”

Tony, Tony, Tony.  See PR lesson #2.

And finally, the ever famous, “I’d like my life back.”

PR people everywhere are checking their records to see when they’ve last updated their CEO’s media training.  For years I tried to get one of my clients to develop a crisis communication program that included CEO training, but they always had other priorities.  And yes, I understand that.  It’s easy to put off and invest the money in more urgent initiatives that have obvious payback.

But if a disaster strikes, it’s too late for media training.  You’ll have to get out the duct tape.

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A Mess of Stress

Tuesday, June 1st, 2010

Quick, think of the most stressful job you could have.  Firefighter.  Surgeon.  Police Officer.  Yup.  Check, check and check.

But according to ThomasNet NewsIndustry Market Trends, two of the top 10 most stressful jobs are, get this:

Public relations officer and

Advertising account executive.

No wonder I’m a mess.  I’ve been doing both those jobs for most of my career.  And yes, they can be stressful, but typically I haven’t had to face life and death decisions on a daily basis like, say, a surgeon does.

But I do recall one spectacularly stressful morning when I walked into my office and the phone was ringing.  I hadn’t had my cup of tea yet when I answered and heard, “Hello, this is John Q. Reporter from CBS.  You’re live and on the air.  There are 28 people dead at your Good Hope facility.  What do you have to say about this?”

Well, my immediate desire was to say, “No speak English.”  But instead I had to say that I knew nothing about it.  It was a little after 8 a.m. and none of my colleagues was in the office yet.  I told the reporter I’d get back to him, asked him his deadline, and promised to call by then, whether I had all the info he needed or not.

Then I had to try and figure out what happened, which was a bit tricky because I worked for a Fortune 500 company with multiple subsidiaries, about three of which could have been involved in this tragedy.  As it happened, the 28 people who died were on a ship that crashed into a dock at our Good Hope facility.  And while we owned ships and barges, this particular ship was not ours.

Once I had the facts straightened out, I was able to prepare a statement for the press.  But then I had to get the approval of someone—anyone—above me in the chain of command.  And there was only one guy available who said, call the PR consultants in NYC and do whatever they tell you.

And here’s where the stress came in.  The yahoo at the PR firm (well, I won’t name it, but it was famous at the time) said, “Tell the press that the damage to our dock is minimal.”

What about the loss of human life?  Not our concern.  Tell reporters our assets remain intact. Or some such rot.  Really.

So I ignored our PR pros who were paid a kingly retainer fee, and by doing so I ignored the exec who was several notches above me in the pecking order.  Instead, I went with common sense.  Which was to deliver a statement to the press:  While the ship does not belong to our company, we deeply regret the loss of human life near our facility.

And our company’s name never appeared anywhere in the press.  Which is sometimes the greatest achievement you can have as a PR person—NOT getting mentioned.

And yes, it was stressful, but still nothing like being a cop on the beat.

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EMS Outsourcing and Trust

Tuesday, May 25th, 2010

Circuits Assembly recently had a couple blogs with some interesting topics:

1)  Nokia is outsourcing again after a year of pulling the work in-house.  This can only be good news for our business.

2)  Some opine that it’s best to manufacture electronic products in the region into which the product will be sold.

And what about outsourcing in the region in which electronic products will be manufactured?  Isn’t that a good idea?

With all the talk about globalization, do things just come down to the fact that people like to do business with their neighbor?  Is there some kind of comfort level we have when we deal with people in our own region?  Is there greater trust?

Because, in fact, trust is everything when you’re doing business.  Recently some financial and petroleum companies, among others, have seen trust in them erode.  It would be interesting to determine how lack of trust has affected their bottom lines on a case-by-case basis.  Because surely it has to some degree.  I’d like to see how much.

Then we could quantify the importance of trust and reputation.  And then we’d have an idea of the value of maintaining that reputation.  Which would make all of us in PR breathe easier.

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The Masters and Brand Mastery

Monday, April 12th, 2010

You can ask Accenture and other companies who bailed on Tiger Woods: When a person is also a brand in and of himself, and the brand is elevated to great heights by all who perceive him, there’s probably going to be a precipitous fall. And some marketers are bemoaning that consumer mistrust of this one brand is leaching to taint mistrust of many brands.

Maybe it’s true, but I would say most brands get what they deserve. Customers will be loyal to you if you give them ample reason to be. And they’ll stay loyal if you can sustain the reasons people trust you. No matter what size your company, it really comes down this:

Does your company have integrity?

So much easier said than done. Some would argue a big consumer goods company has a tougher time maintaining integrity by virtue of its size alone. But I would say it’s not a cakewalk for B2B companies either.

We B2B manufacturing firms have more different types of employees interacting directly with customers than most: ordering, shipping, accounts receivable, sales and more, depending on the type of product or service you offer. Every one of these people has to live up to the brand promise in every single transaction we make. Nearly impossible.

The point is, brand loyalty is very personal. And people aren’t perfect. Trust takes a long time to build and just seconds to shatter.

Take Tiger Woods, the most current, obvious example of a fallen brand. No matter how somber and sincere he looks in the new Nike black and white ad with a voice-over of his deceased father (ultra creepy, I think), Tiger has broken his brand promise. He is not yet to be trusted, although maybe he can build it back over time.

And yesterday, when Phil Michelson won the green jacket and tearfully hugged his wife (who has breast cancer) and their children, well, pass the tissues. The contrast between Phil and Tiger, who came in fourth, could not be greater. It’s all about honor, character, keeping your promises—for individuals and for companies too.

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Toyota: Crisis Communications or Catastrophe?

Monday, March 8th, 2010

Over the years I’ve counseled my clients to have crisis communication plans, up-to-date and ready at all times, just in case. Central to those plans is a process for identifying the problem, and telling the truth about it—the whole truth, and quickly. But what do you do when the truth will not set you free but will instead send you into a free-fall of catastrophic proportions?

The truth about Toyota is not good. Seems the problems they have are systemic. Seems they’ve been cutting corners all over the place. Seems, according to Fortune magazine, they have “a culture that prizes speed and efficiency over reliability and safety.”

There’s just no amount of PR that can change those fundamentals. Not until the core problems are thoroughly examined and totally corrected. When the problems are ingrained in the culture, like Toyota’s, that could take some time. Usually, in a crisis situation, you can find a reason things went wrong and fix it. There have been some online comparisons of Toyota to the classic crisis situation of Tylenol in the early ‘80s. But Toyota wishes they could have it so good.

Tylenol was a victim—they were sabotaged with poison. Toyota sabotaged themselves by abandoning what their brand had represented for years—quality. Tylenol had an expensive but relatively easy fix—recall the product and design those irritating but safe tamper-proof caps. (I’m sure this didn’t seem easy to Tylenol at the time, but they came out with the new bottles pretty quickly.) How long will it take to change Toyota’s entire way of doing things?

And here’s one more reason Toyota’s situation is very different from Tylenol’s. The Tylenol crisis didn’t happen in the age of the Internet. There were no legions of bloggers whipping up a froth of vitriol. There were no web sites popping up all over with URLs like ToyotaSucks.com. There was no Jon Stewart doing a six-minute segment entitled “The Toyotathon of Death” that’s played repeatedly on YouTube.

As a veteran PR person, I would like to say that PR can do its job to get Toyota out of this mess.  And certainly PR can help.  But slapping on a band-aid when you really need major surgery will only make the patient sicker in the long run. Yes, Toyota is Tweeting. Yes, the company is offering whiz-bang incentives to get customers’ confidence back. Yes, the company is doing some public groveling.

But no amount of PR will change the fact that Toyota can’t be trusted right now. The company played fast and loose (pun intended) with our safety for the sake of profit. And all the Tweets in the world won’t restore its reputation until it makes some fundamental changes. And even then, the climb back will be tough. Maybe impossible.

The headline in a recent morning’s paper makes me doubt Toyota’s future: Fixed Toyotas Still Accelerating. That’s not a crisis. That’s a catastrophe.


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