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The PR Hurt Locker: Ten Land Mines to Negotiate in a Crisis (six through ten)

Monday, March 8th, 2010

Bye Bye Reputation

Posted by Tom Gable

The previous post covered the first five of ten land mines to avoid in a crisis: guilt, no plan, lack of culture and core values, big hat (no cattle) and CEO ego. The following delve more into hazards to negotiate during implementation.

6. Attorneyitis – This land mine occurs when otherwise good messages and communications that the CEO and crisis team have approved get handed off for legal review and come back bruised, bloated and infected with the deadly disclaimer virus. Short, compelling copy turns fuzzy around the edges. Statements of fact become weighted down with convoluted clauses and abundancies of redundancies (In one set of Frequently Asked Questions that Gable PR crafted to explain a law suit our client filed against a magazine for libel and slander, a sharp 19-word sentence nailing the editor for deceit was turned into 100 words of circumlocution without a verb). The test: read a sentence out loud and if everyone’s eyes glaze over like you were reading from C-Span transcripts or they laugh so hard they herniated, start over.

7. Torpor at the Top (also called Coagulation in the C-Suite) – The media are almost always on deadline and pressed to complete their rounds of interviews with sources from all sides. Many have preconceptions that will drive the coverage, often in a way not appreciated by the target organization. With a well-rehearsed crisis plan and message strategies in place, an organization can dedicate itself to responding as quickly as possible to the media call instead of setting it aside and agonizing what to do while waiting for the lawyers to return your call. The process includes knowing the time zone where the media call originated so you don’t stuck in a time warp between west coast and east coast and lose the opportunity to respond. Providing solid facts and evocative quotes ensures more balanced coverage. If the organization is in the right, its fast response and candor can lead to establishing positive media relationships that can be of major benefit for decades.

When crises hit, companies without plans or facing some of the other land mines outlined here can struggle internally in determining a course of action. Some advisors tell the CEO to delay, which can be brilliant or fatal, depending upon the crisis. Copy often gets written by committee. In situations such as these, communications professionals or outside consultants brought in at the eleventh hour need to light fires under the corporate derrieres of those in the executive suite and loosen the clotted communications channels. Getting back to the media with even a short statement (“We are checking all the facts and will get back to you as soon as we have an answer.”) can help mitigate pending disaster. By not responding or responding after deadline, you get immortalized with the regrettable line that usually appears as the last sentence in the story: “The company was unavailable for comment.” A speedy response, on the other hand, generates a positive impression; the guilty don’t return media calls or have the lawyers call.

8. Dueling Fiefdoms – We’ve seen warring factions fire off random shots of bad advice within the corporate halls in hopes of furthering their own interests in internal turf wars rather than contributing energetically and without guile to the master crisis plan for the overall good of the organization. Lack of corporate alignment and certainty of purpose have broader ramifications in preventing an organization from achieving its business and marketing goals. In a crisis, the problem is exacerbated and accelerated. Good organizations exhibit grace under pressure through positive, consistent communications. For the unaligned and contentious, disaster looms. The media find the inconsistencies among dueling factions and probe deeper, confronting one faction with the claims of another and repeating the process until the inside story unfolds with conflicting voices from every corner.

9. Stuck in Jargon or Legal Land – This isn’t necessarily fatal, just annoying and a potential roadblock to getting your compelling messages through the clutter and promoting good media relations. Speaking in a sincere, human voice will help build bridges with the media and the ultimate target audiences on the other side of this filter. As noted in Attorneyitis, 100-word sentences without a verb don’t cut it. Jargon in a particular niche and working with trade journals can be acceptable. In a crisis, when broader financial, business, consumer and investigative reporters are involved, one needs to apply what some media call the “Bozo Filter.” This methodology came to light during a Media Relations Summit in New York featuring journalists from a wide range of leading publications, news services, on-line sources and broadcast. One noted technology journalist with one of the world’s most respected publications said he had set up Bozo Filters on his email to automatically delete messages from certain agencies or individuals and those containing words he felt were useless or meaningless. For creating compelling messages, start with the evidence developed for your crisis communications plan. Analyze the background information, input from outside resources and historical coverage of the industry, company, organization or related topic. Think big picture. Envision perfect coverage. A trick Gable PR uses to help clients focus on the goal is to have them imagine the perfect headline for this situation. What would it say and where would it appear? Then, can we work backward from perfection and align all our plans, themes, core values, evidence strategies and tactics to bring it to life.

10. No comment – This often springs from some of the considerations listed above (guilty, attorneyitis, torpor at the top). Avoid this nuclear land mine whenever possible. Even providing a comment that you will get back to the media as soon as you’ve had a chance to conduct an internal review, analyze the complaint or get input from those outside the organization is better than saying “no comment,” which comes across as “guilty as charged.” Armageddon may seem eminent, but there will be a future. Salvaging a small part of the reputation during difficult times can provide a starting point for building a new one for the future. Work with your crisis team to analyze your different message strategies and what you hope to achieve for the long term.

A Final Word

Some experts estimate that less than five percent of all crises are fatal to an organization or individual. CEOs reinvent themselves regularly, particularly in industries with high failure rates (technology, biotechnology, Internet). Companies and organizations go through constant change, deal with major public issues and keep moving forward. The path becomes much easier with a continuous investment in image as a part of corporate strategy, developing strong core values, having crisis PR plans in place (and rehearsed) and avoiding potential land mines when your next crisis erupts.

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Posted in Authentic PR, Brilliant Counsel, Client Service Results, Crisis PR, Horizon Management, Team Play | No Comments »

Crisis PR: Three Core Principles and Planning Checklist to Guide Your Actions

Friday, February 12th, 2010

Reputation Skewered

Posted by Tom Gable

Most major organizations create crisis plans in advance of need, update them regularly, have a strategic array of tools and tactics ready to go (hidden Web sites, video, audio, fact sheets, media kits) and even rehearse their responses. The better job an organization does before a crisis strikes – or at the beginning to quickly manage a crisis based on sound principles should a plan not be in place – the better the result. These fundamentals came to mind in tracking the Toyota recall, the changing communications strategies and lack of responsiveness early in the game.

In creating a crisis plan and carrying it out in any crisis communications situation, three basic principles should guide your actions:

One – Be honest and stick to the facts. Do not speculate, hypothecate or exaggerate. Those impacted by the crisis deserve nothing less – and your reputation may be damaged irreparably if you aren’t truthful and authentic.

Two – Think strategically about the long-term. It is too easy to be reactionary, get caught up in the grinding short-term pressures of the situation and scurry to respond to those demanding answers from every quarter. What do you stand for? What are your core values? Your culture? Are your responses to the crisis consistent with these values and authentic – no hype? How will your actions today be viewed a year from now? Five years from now?

Three – Maintain unified and consistent communications during implementation of your plan. Nothing will erode your credibility faster than conflicting messages coming from different sources within your organization (be aware that the media – and class action attorneys in some cases – will pursue every angle in search of controversy, unethical behavior or criminal intent).

Another key factor for launching a crisis plan: speed of response. As witnessed with the issues swirling around Toyota as it sank deeper into a crisis PR vortex, lack of pro-active communications resulted in the news media, elected officials and other outside sources taking control of the message momentum. Instead of being fast and responsive, Toyota seemed to adopt the Three S Strategy: be silent, slow and stonewall.

Crisis PR is a team sport that requires a great play book. As a starting point for creating your own plan, Gable PR has developed a detailed checklist (click here) to guide any organization through the essential elements required. Think of it as a critical pre-flight check list. From this start, any organization can adapt it and keep it evolving to keep up with the changing requirements for communicating in the nanosecond news cycle spawned by Twitter, Facebook, Blogs and traditional media embracing 24/7 coverage.

Depending on each crisis, some areas will require more research, planning and action than others. Please take a look at the list and let me know what else might be added, enhanced, edited, deleted or explained more clearly. Crisis PR, to borrow a line from Ernest Hemingway, is something of a moveable feast and the goal is to take charge of the menu.

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Posted in Authentic PR, Brilliant Counsel, Client Service Results, Crisis PR, Horizon Management, In the Beginning, Team Play | No Comments »

Beyond Crisis PR: Can Toyota Change Its DNA?

Saturday, February 6th, 2010

Road to Recall

Posted by Tom Gable

The Toyota crisis PR case is not just about the recent recalls, global media scrutiny and potential Congressional action in the U.S. It has metastasized from neglected issues within the body corporate to impact vital functions in every fiber of the Toyota being.

Possible deeper issues were discovered by Ken Bensinger of the LA Times and others in major media. He started following the case after an off-duty CHP patrolman and three family members died when the accelerator stuck on their Toyota and they crashed in rural San Diego County in August 2009. Toyota’s president, Akio Toyoda, apologized. Soon, Toyota recalled 4.3-million-vehicles, its largest recall ever.

As outlined in an interview with the NPR affiliate KPBS in San Diego, Bensinger and his LA Times colleagues started probing. They found issues going back to 2001, 2007 and 2009. Toyota talked about floor mats as one cause, then the next day said there were issues with a sticking accelerator pedal. Analysts thought the answers didn’t add up and began asking about design flaws in the electronic throttle system. Were there deeper problems that Toyota wasn’t addressing?

Bensinger said Toyota talked about quality and safety but seemed to be ignoring problems. He said they practiced global “obfuscation” and he then walked the KPBS listeners through a litany of Toyota transgressions over the past decade.

The problem from a PR standpoint wasn’t just obfuscation and a pattern of not dealing with the issues in a forthright manner. As I noted in the same interview, the issues go into the heart and soul of the corporation. What does Toyota stand for? What are its values? Those are the first questions corporations need to ask themselves if they are going to position themselves above the competition. Then, can they deliver on the promise?

If Toyota stresses quality and safety, can it relaunch and walk the talk over time? Can it invest in image as a part of corporate strategy, not in stonewalling, silence and slow responses?

The Wall Street Journal in an essay on Feb. 6 identified deep cultural factors to be overcome:

In Japan there is a proverb, “If it stinks, put a lid on it.” Alas, this seems to have been Toyota’s approach to its burgeoning safety crisis, initially denying, minimizing and mitigating the problems involving brakes that don’t brake and accelerators that have a mind of their own. President Akio Toyoda, grandson of the founder, was MIA for two weeks and the company has appeared less than forthcoming about critical safety issues, risking the trust of its customers world-wide.

This has been a public-relations nightmare for Toyota, as its brand name has been synonymous with quality and reliability. Crisis management does not get any more woeful than this and the cost of this bungling so far—the initial $2 billion recall and the loss of 17% of share value since Jan. 21, when the gas-pedal recall was announced—is only a down payment on the final tally. The recall will surely expand, including cars produced in Japan. Lawsuits are being filed and an expensive settlement looms. And then there are the idle factories and empty showrooms to account for.

It is not surprising that Toyota’s response has been dilatory and inept, because crisis management in Japan is grossly undeveloped. Over the past two decades, I cannot think of one instance where a Japanese company has done a good job managing a crisis. The pattern is all too familiar, typically involving slow initial response, minimizing the problem, foot dragging on the product recall, poor communication with the public about the problem and too little compassion and concern for consumers adversely affected by the product.

The New York Times also documented a pattern of slow response on safety issues and detailed engineering issues going back to 1996 and covering almost every model.

Can Toyota change its DNA? At a press conference in Nagoya on Feb. 5, Toyota President Akio Toyoda expressed his deep regret for the inconvenience and concern caused to Toyota customers. He said he would take the lead toward improving quality around the world by establishing a global quality task force and implement a six-point action plan to improve quality in every region.

Turning the Exxon Valdez wasn’t easy. Check back in two years, which is probably the minimum time it will take to make a course correction, set new plans in place, start building a new culture and generating consistent, positive results over time versus navigating through the rubble from a permanently damaged reputation.

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Posted in Authentic PR, Client Service Results, Crisis PR, Horizon Management, Hype Free PR, In the Beginning | No Comments »

In Crisis PR, It’s Not Always How You Start But How You Finish

Tuesday, February 2nd, 2010

Shrinking image?

Posted by Tom Gable

The news media, auto industry analysts and elected officials have been aggressive in going after Toyota for its delays in responding to a growing crisis about sudden acceleration in some of its models from gas pedal and floor mat issues.

NPR opined that “the carmaker that could end up doing long-term damage to the sterling reputation it has painstakingly built up for several decades.” It cited a slow response time in dealing with the problem and communicating.

Critics in the story noted that “the worst-case outcome for the company would be if any of the investigations uncovers evidence that Toyota has been aware of the problem for longer than it has admitted.” This implied that Toyota may be hiding something.

The theme turned up in a Los Angeles Times story:

The pedal maker denies that its products are at fault. Some independent safety experts also are skeptical of Toyota’s explanations. ‘We know this recall is a red herring,’ one says. Sudden-acceleration events in Toyota and Lexus vehicles have been blamed for at least 19 fatalities and 815 vehicle crashes since 1999.

Critics jumped on quickly to ask for specific timetables. The Toyota CEO was largely silent (a Japanese TV crew caught him at a financial conference in Davos, Switzerland, where he made a short apology). Toyota then pulled its brand advertising, ran public service ads in major daily newspapers around the country, hired a PR firm and started communicating.

When Toyota went public with a PR blitz, they used their head of U.S. sales rather than CEO. Some said this seemed to indicate that Toyota wasn’t dealing with the issues at the highest level.

“We deeply regret the concern that our recalls have caused for our customers, and we are doing everything we can — as fast as we can — to make things right,” Jim Lentz, Toyota’s U.S. sales chief, said in a statement on Monday (Feb. 1, 2010).

Although late in responding by crisis PR standards, Lentz did the classic: recognize the issue, apologize, empathize and then set a vision for the fix.

Over the years, in dealing with crisis communications issues involving everything from religious scandal, to threats to public safety, to corporate and organizational implosions, Gable PR has found that three basic principles should guide your actions in every crisis situation:

One – Be honest and stick to the facts. Do not speculate, hypothecate or exaggerate. Those impacted by the crisis deserve nothing less – and your reputation may be damaged irreparably if you aren’t truthful and authentic.

Two – Think strategically about the long-term. It is too easy to be reactionary, get caught up in the grinding short-term pressures of the situation and scurry to respond to those demanding answers from every quarter. What do you stand for? What are your core values? Are your responses to the crisis consistent with these values? How will your actions today be viewed a year from now? Five years from now?

Three – Maintain unified and consistent communications during implementation of your plan. Nothing will erode your credibility faster than conflicting messages coming from different sources within your organization (be aware that the media – and class action attorneys in some cases – will pursue every angle in search of controversy, unethical behavior or criminal intent).

Toyota can get beyond this crisis, recover from short-term damage to its brand and regain the trust and respect it enjoyed by investing in image as a part of corporate strategy. What will Toyota stand for in five years? Quality, customer care, engineering, design, reliability, value? All of the above? Whatever the vision, the next step is developing a strategy to provide ongoing evidence to support the vision. This goes beyond manufacturing to every way Toyota touches its customers and future customers.

In the era of instant communication, organizations need to take an immediate look at the issues it faces. Gable PR uses a crisis communications check list for starters. In less than an hour, we can work through the issues and determine priorities and critical tasks for action, including the speed of response.

For Toyota, it may have done a fast analysis and then decided to go slow in responding for internal or legal reasons. For the “new Toyota,” it should establish procedures for responding at warp speed to any outside concern. Instead of two days to a week, how about two hours or less, even if it’s to say “we are working on this and will get back to you as soon as the facts are in?”

For energizing every corner of the organization, the management schools have many cases for going beyond PR and establishing operating principles to live by in evolving the culture. What directions will Toyota give to its design and engineering teams to analyze what happened with the pedals and mats and develop new approaches to quality control? For the future, if a problem occurs once a new model rolls out, have rapid response teams with the power to analyze issues and make fast decisions on resolving the problem and then pro-actively communicate the new direction with an integrated PR program.

A pro-active internal approach builds support and understanding, then provides the foundation for launching the pro-active communications program. Educate internal audiences first. Develop a consistent messaging strategy, from the basic level of how dealers will answer their phones and respond in the future. Establish procedures for Tweeting updates as they occur and linking to Web sites for more details. Even if working on the image over three to five years, build a sense of urgency into the culture. Empower people to think about continuously improving every aspect of the business every day. By setting a new standard and vision, Toyota can then set in motion the critical business practices and cultural commitment to walk its talk over time – and finish a lot better than it started.

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PR and Reputation Management for the Future – Clear Vision, Moving Horizon

Friday, December 18th, 2009

The Moving PR Horizon

The Moving PR Horizon

Posted by Tom Gable

As reported here previously, a PRSA Counselors Academy survey identified the key issues facing the PR agencies and internal staffs in the ongoing transition of the PR professional from vendor to trusted counselor. The top line action items: demonstrating return on investment (ROI), providing authentic counsel, embracing social media, improving technology and finding new ways of measurement.

My segment during a panel discussion of the findings at the PRSA International provided ideas on enhancing client service. As covered earlier, Gable PR and many others recommend getting off to a fast start by using internal and external audits. They are a cost-effective and quick means of gathering the intelligence required to create strategic long-term programs.

With research in place, agencies and internal PR staffs can start planning to build future image from a strong foundation and based on a bright, strategic vision. As an analogy, think about creating a beautiful new high-rise office building, cathedral, synagogue, museum, football stadium or other major architectural undertaking. What do you want the finished product to look like – the final rendering? Then, what are the essential elements needed to bring the vision to life?

Steel-Solid Facts, No Hype

In PR, branding and positioning, the foundation must be legitimate, ethical, credible, authentic and steel-solid with facts. From there, image builds on three to four core values. Then, every piece of communications provides additional support for each core value, building a row at a time to create a future award-wining edifice. Add a row or two of hype? And the walls will come crumbling down.

How to organize the PR efforts necessary to create new images and reputations? We call it Horizon Management, a concept that assumes you can plan for and achieve the desired results. Then, once the desired position is reached, positive communications must continue to perpetuity. Markets change. Competitors come and go. New communications tools are created and channels opened. So aim for the horizon – and keep moving the horizon!

The pro-active PR professional routinely looks a year or more ahead for new opportunities and provides the leadership that keeps relationships and results growing over time. Go beyond the ordinary and expected. Fresh ideas keep clients and bosses engaged and enthusiastic. The approach also builds trust and respect. Even if there is disagreement, clients know the professional is focused on their future success, not personal agendas. As a result, the PR professional is transformed from vendor or staff person to trusted counselor and strategic partner, building relationships that endure and prosper.

Horizon Management

Here are a couple of quick tips for launching horizon management.

Conduct an Environmental and Situation Analysis

  • Annual plans, milestones, events, conferences, quarterly reports, audit info, other “knowns”

Get Creative with the “Flip Side”

  • What exists? What doesn’t?
  • Where are the holes?
  • What new ideas can we bring to the table?

Take Your Plan Over the Horizon

  • Propose bigger ideas, new programs, and added value
  • Have short-term action items for daily engagement
  • Set a vision for the future (changing image, behavior)
  • Brainstorm regularly, provide continuous creativity
  • Update monthly and keep moving the horizon
  • Manage for results, not time
  • Understand client rhythms, synchronize
  • Set new standards for responsiveness

Monthly Litmus Test on Program Success

Examine recent client experiences, relationships, evolution, momentum, stagnation and any confusion or misdirection:

  • What worked?
  • What didn’t?
  • What (or who) changed?
  • What was missing?
  • What steps do we need to take to generate clearly superior results?

Detailed Check List for Client Success

  • Understand the client business, plans, and goals
  • Match expertise to client needs
  • Do your homework
  • Set realistic expectations
  • Build a team – internally and with the client
  • Develop long-range plans, critical steps
  • Establish procedures, protocols for planning, ongoing creative, approvals, measurement
  • Be strategic and authentic
  • Use appropriate tools and tactics
  • Communicate consistently and creatively!
  • Keep moving the horizon
  • And celebrate as you build relationships that endure to perpetuity

Obviously, these are bullet points that require a lot more thought for each and could be turned into a chapter in a book (They are! The Fifth Edition of the PR Client Service Manual is advancing toward release in Spring 2010). For a free PDF of the Fourth Edition, circa 2001, email me at tom@gablepr.com.

Posted by Tom Gable

As reported here previously, a PRSA Counselors Academy survey identified the key issues facing the PR agencies and internal staffs in the ongoing transition of the PR professional from vendor to trusted counselor. The top line action items: demonstrating return on investment (ROI), providing authentic counsel, embracing social media, improving technology and finding new ways of measurement.

My segment during a panel discussion of the findings at the PRSA International provided ideas on enhancing client service.  As covered earlier, Gable PR and many others recommend getting off to a fast start by using internal and external audits.  They are a cost-effective and quick means of gathering the intelligence required to create strategic long-term programs.

With research in place, agencies and internal PR staffs can start planning to build future image from a strong foundation and based on a bright, strategic vision. As an analogy, think about creating a beautiful new high-rise office building, cathedral, synagogue, museum, football stadium or other major architectural undertaking.  What do you want the finished product to look like – the final rendering? Then, what are the essential elements needed to bring the vision to life?

Steel-Solid Facts, No Hype

In PR, branding and positioning, the foundation must be legitimate, ethical, credible, authentic and steel-solid with facts.  From there, image builds on three to four core values. Then, every piece of communications provides additional support for each core value, building a row at a time to create a future award-wining edifice. Add a row or two of hype? And the walls will come crumbling down.

How to organize the PR efforts necessary to create new images and reputations?  We call it Horizon Management, a concept that assumes you can plan for and achieve the desired results.  Then, once the desired position is reached, positive communications must continue to perpetuity.  Markets change. Competitors come and go. New communications tools are created and channels opened.  So aim for the horizon – and keep moving the horizon!

The pro-active PR professional routinely looks a year or more ahead for new opportunities and provides the leadership that keeps relationships and results growing over time. Go beyond the ordinary and expected. Fresh ideas keep clients and bosses engaged and enthusiastic. The approach also builds trust and respect. Even if there is disagreement, clients know the professional is focused on their future success, not personal agendas.  As a result, the PR professional is transformed from vendor or staff person to trusted counselor and strategic partner, building relationships that endure and prosper.

Horizon Management

Here are a couple of quick tips for launching horizon management.

Conduct an Environmental and Situation Analysis

Annual plans, milestones, events, conferences, quarterly reports, audit info, other “knowns”

Get Creative with the “Flip Side”

What exists? What doesn’t?

Where are the holes?

What new ideas can we bring to the table?

Take Your Plan Over the Horizon

Propose bigger ideas, new programs, and added value

Have short-term action items for daily engagement

Set a vision for the future (changing image, behavior)

Brainstorm regularly, provide continuous creativity

Update monthly and keep moving the horizon

Manage for results, not time

Understand client rhythms, synchronize

Set new standards for responsiveness

Monthly Litmus Test on Program Success

Examine recent client experiences, relationships, evolution, momentum, stagnation, confusion

What worked?

What didn’t?

What (or who) changed?

What was missing?

What steps do we need to take to generate clearly superior results?

Detailed Check List for Client Success

Understand the client business, plans, and goals

Match expertise to client needs

Do your homework

Set realistic expectations

Build a team – internally and with the client

Develop long-range plans, critical steps

Establish procedures, protocols for planning, ongoing creative, approvals, measurement

Be strategic and authentic

Use appropriate tools and tactics

Communicate consistently and creatively!

Keep moving the horizon

And celebrate as you build relationships that endure to perpetuity.

Obviously, these are bullet points that require a lot more thought for each and could be turned into a chapter in a book (They are!  The Fifth Edition of the PR Client Service Manual is advancing toward release in Spring 2010).  For a free PDF of the Fourth Edition, circa 2001, email me at tom@gablepr.com.

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Posted in Authentic PR, Brilliant Counsel, Client Service Results, Clutter Busting, Horizon Management, In the Beginning | No Comments »

PRSA Survey: Social Media Mastery, Authenticity, ROI are Top Three Issues Facing PR Profession

Monday, November 16th, 2009

PRSA International Conference Hotel, San Diego

PRSA International Conference Hotel, San Diego

Posted by Tom Gable

In an era dominated by millions of corporate, institutional, government and other voices clamoring for attention through every communications channel possible, members of the PRSA Counselors Academy responding to a national survey, ranked “demonstrating return on investment,” “providing authentic counsel” and “mastering social media” as the top three issues to be addressed in helping their clients and advancing the future of the public relations profession over the next two years.

The survey was conducted online during October among 450 members of Counselors Academy, a professional interest section of the Public Relations Society of America dedicated to providing principals and senior counselors of public relations firms with the resources to grow their firms and the counseling skills of their people. Membership is limited to accredited counselors (PRSA or Canadian Public Relations Society) or consultants with 10 or more years experience in the profession. Eighty-nine responded, or almost 20 percent of those surveyed.

The results were released on Nov. 9 during the PRSA International Confernece in San Diego and served as the foundation for a panel discussion on “How to Tackle the Three Toughest Issues Facing PR Counselors Today.” The panel was chaired by Tom Gable, APR and PRSA Fellow, CEO of Gable PR, who designed the survey. It included Sydney Ayers, APR, president and CEO of Ayers Public Relations and chairwoman of PRSA Counselors Academy, and Joel Curran, APR, senior vice president and managing director, Manning Selvage & Lee, Chicago.

The survey asked respondents to rank from 1 to 5 their impressions of different internal and external issues facing the profession in 2009-10 in four major categories, with 1 being “Very Unimportant” and 5 being “Very Important.” The top four issues in each category:

Client Relations: demonstrating return on investment (ROI), 4.60 and No. 2 overall; providing authentic, strategic counsel, 4.55, No.3 overall; measuring results, 4.43, No. 5 overall; and connecting PR to the C-suite, 4.25; and raising agency fees, 3.63.

Media and Technology: mastering social media, 4.70 (No. 1 overall); enhancing technology capabilities, 4.53 (No. 4 overall); the 24/7 news cycle, 4.31; and decline of traditional media, 4.24.

External Issues: the economy, 4.34 (No. 6 overall); government regulation, 3.59; losing business to consulting firms, 3.20; and dominance of the biggest multinational firms, 2.80.

Partnerships and Resources: values and ethics management, 4.23; developing strategic partnerships, 4.18; recruiting and retaining talent, 4.13; and expanding agency services, 3.98.

Respondents represented a cross section of agency sizes: under $500,000 in annual billings, 27.3 percent; $500,000 to $999,999, 42.4 percent; $1 million to $4.99 million, 21.2 percent; $5 million to $9.99 million, 9.1 percent; and over $10 million, no responses.

Those responding were largely senior practitioners: less than 10 years in the profession, zero percent; 10 to 15 years, 6.1 percent; 16 to 20 years, 3.0 percent; 21 to 30 years, 57.6 percent; and more than 30 years, 33.3 percent.

From the data, the panelists provided insights and action plans for addressing Client Relations, Social Media and Changing the Way PR Firms do Business.  Next: lessons from the panel; connecting with the client.

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Posted in Authentic PR, Brilliant Counsel, Client Service Results, Horizon Management, In the Beginning, Social Media | No Comments »

PR Horizon Management: Pointing Clients Toward New Territory, Long-Term Results

Thursday, October 29th, 2009

Posted by Tom Gable

The public relations profession faces many challenges in these hardscrabble times. Clients are holding tight, cutting their public relations budgets or simply saying goodbye. Competitors swoop in, looking for hints of weakness in a client-agency relationship. Business consulting, advertising and marketing firms aren’t far behind, promoting their tool kits as a means of not only surviving but growing in touch economic times. What steps can agencies take to ensure that their clients are incredibly pleased with the work being done, the results generated on their behalf and the agency relationship?

Based on lessons learned from working through three previous recessions (some better than others!), I’ve come to realize that success in client service and retention requires a manic sense of urgency to deliver short-term results combined with a disciplined approach to creativity and long-range planning. Smart agencies provide clients with ideas and strategic plans that will be generating results six, nine and twelve months into the future. The best way to get the agency or in-house team pointed in the right direction and taking action: create a system and process to drive results.

Developing Your System

At Gable PR, we experimented with different approaches in the 1992 recession. The goal was to have clients envision gaining market share and mind share from their competitors by committing to pro-active public relations. Statistics from several sources provided validation; the companies that continued marketing in troubled times grew faster than those who didn’t. We began calling our system “horizon management” and worked to get the client on board for sailing together toward new and beneficial destinations.

As recently presented during a recent PRSA Webinar and based on longer lessons found in The PR Client Service Manual, pro-active systems work best with an interactive team process; the more brainpower the better. One approach is to hold regular meetings every Monday to update on all client activities. For long-term impact, use the meeting to brainstorm new ideas for each client on a rotating basis. Chose one client or two as the subjects for the next meeting. Have the team leader or account manager review background information in advance of the session, including client calendars, milestones, known events and activities, conference schedules, editorial calendars and focus editions.

The Planning Spreadsheet

Then, to make it easy for everyone to visualize the flow of activities and critical deadlines, plot your plan on a project management program or Excel spreadsheet. List activities in the first column, months in the subsequent columns over the next year or two and put in check marks to note when activities or events are expected to take place.  A rough sample can be found here on the Gable PR Web site.

Then, during the creative session, analyze each opportunity and see what result might be generated to advance the client’s business, marketing or capital plans, or all of the above. Envision media relations, community relations, investor relations, social media activities, trade relations and public affairs opportunities unfolding across time.

Agency teams can brainstorm on the tactical approaches within each area, set priorities and also get creative in looking at what we call “the flip side” — what’s there and, more importantly, what’s not there? The initial road map gives the agency a simple planning document to track, and makes it easy to take detours and add new side trips while still keeping the original destinations in mind as the program unfolds.

From Brainstorm to Masterful, Strategic PR Plan

With team brainpower, the agency has now created a master plan for the year, with a series of new ideas it can present to the client, implement and keep updating with creative sessions that are adjusted to point to new horizons. Clients get excited. They see the agency as creative, intuitive, pro-active and worth keeping! New ideas can also drive new budgets.

The flip side is sitting back and bemoaning the lower budget and managing for time, not results. This inevitably ends up with the client calling to ask one of the worst questions on earth for an agency: “What have you done for me lately?”

Every agency’s mission, as well of those on internal PR staffs on the client side, should be ensure you do great work both lately and for the long-term. Techies call this parallel processing. Handle the daily tasks with alacrity and skill while working on your horizon program that generates results that go beyond the ordinary and expected for every client. The approach creates value and ROI for the client and relationships that endure to perpetuity (well, maybe not quite that long, but potentially for years and even decades).

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The Sequenom Case: In Crisis PR, No-Hype and No-Spin Should Prevail

Wednesday, September 30th, 2009

Posted by Tom Gable

Can authentic no-spin PR, even in a crisis, help a company maintain a semblance of credibility, protect its reputation on the downside and set a vision for the future that even supports its stock price?

Sequenom Inc. in San Diego won’t know. On Monday, it issued a news release via PR Newswire with the headline: “SEQUENOM Announces Completion of Independent Investigation.”

The lead paragraph:

SAN DIEGO, Sept. 28 /PRNewswire-FirstCall/ — SEQUENOM, Inc. (Nasdaq: SQNM) today announced the completion of the independent investigation by a special committee of independent directors related to the test data and results for the company’s noninvasive prenatal test for Trisomy 21 (Down syndrome). The independent counsel engaged by the special committee interviewed over 40 witnesses and reviewed over 300,000 documents and emails.

Okay, so what’s the issue? Buried in the fourth paragraph is the bottom line of the investigation:

The company has terminated the employment of its president and chief executive officer, Harry Stylli, Ph.D., and its senior vice president of research and development…obtained the resignation of its chief financial officer…and one other officer… (and) also terminated the employment of three other employees. While each of these officers and employees has denied wrongdoing, the special committee’s investigation has raised serious concerns, resulting in a loss of confidence by the independent members of the company’s board of directors in the personnel involved.

How did the news media play it? Here are the headlines and first paragraphs from stories in the San Diego Daily Transcript, San Diego Union-Tribune and Xcomony.

Sequenom fires CEO and others after investigation (SDDT)

Sequenom Inc. says it fired its CEO and its research chief following an investigation into the mishandling of test results for its Down syndrome blood test. A total of four executives and three other employees were terminated or resigned, the company says.

… Sequenom said Harry Hixson Jr., 71, a member of its own board and a former president and chief operating officer of Amgen Inc. (Nasdaq: AMGN), will take over as interim CEO. Another board member, Ronald Lindsay, 61, will be interim CFO, and controller Justin File, 39, will be the principal financial and accounting officer.

…Sequenom’s (Nasdaq: SQNM) SEQureDx test, which screened maternal blood to discover Down syndrome in fetuses, was on track to reach the market in June until the company disclosed in late April that study data had been “mishandled” by employees. That made the data unreliable and lead to delays, hammering the San Diego company’s stock price.

Sequenom ousts CEO, other execs (Union-Tribune)

The San Diego biotechnology company Sequenom said yesterday that it has ousted its CEO and several other executives after an investigation into the mishandling of study data.

The discovery of the data problems in April led the company to postpone the launch of the test and to suspend four research and development employees. The test remains on hold, though the company has not disclosed specifically what went wrong…Now the company says the public should not rely on any of its previously announced data for the test, and it is not disclosing a timetable for development of eventual commercialization.

Sequenom Shares Tank After Executives Ousted Over Data Mishandling (Xconomy)

Sequenom shares plummeted 44 percent today in after-hours trading after the San Diego-based company said it has ousted CEO Harry Stylli and its head of R&D in the wake of an investigation into mishandling of data for its prenatal genetic test for Down Syndrome.

Sequenom shares fell $2.50, or 44 percent, to $3.20 in after-hours trading after the conference call. That’s a painful free fall for investors who bought last year on the enthusiastic news about Sequenom’s test, which drove shares up to $27.76 the day after the original announcement on Sept. 23, 2008.

How could this have been played differently by the company, to perhaps better results? One has to avoid the attempt to try short-term spin and think strategically about rebuilding credibility and creating a foundation to recover long-term reputation and valuation.

On positioning for the future, Hixson has impeccable credentials and credibility. During a conference call, he said the company is instituting new disclosure controls and procedures on all fronts, launching training in ethics and scientific processes and adding a new science committee on the company’s board of directors to oversee its research and development strategy and activities – definitely a positive direction.

The company said the data problems appeared to be confined to the Down syndrome program. It recently launched a separate test to identify parents with increased risk of having babies with cystic fibrosis, so is not a one-compound wonder, as happens with many biotech companies. The cystic fibrosis data, handled by a different unit than the one handling the Down syndrome data, has been validated by outside third-party collaborators. In addition, Hixson said the company still believes it has a valid approach to the detection of Down syndrome through genetic analysis of maternal blood. He said the company hopes to maintain its collaboration with Oxford University researcher Dennis Lo, who licensed his intellectual property to Sequenom for developing and commercializing its prenatal test.

He told the media that he and Lindsay were currently in the midst of strategic planning for the coming year and setting new priorities, with more to come as they get into it.

“We are determined to emerge from this experience stronger,” Hixson told the media.

What could have Sequenom done differently? One approach is to like a news organization rather than an attorney. How will the news be played? Then, be aggressive and pro-active in telling its story and making a few major points:

  • Sequenom has completed an independent investigation of issues involving the mishandling of data and release of results that were not accurate
  • As a result, the board has fired its CEO and removed others in top management and units involved with the mishandling
  • The company and its technology are sound Harry Hixson, former president of Amgen and a board member, is taking over and has announced plans to move forward aggressively in correcting internal issues while also continuing to pursue important research
  • The mishandled data related only to the Down syndrome studies and not to a promising study in identifying parents whose children could be prone to cystic fibrosis
  • The new Sequenom team will be doing all it can going forward to rebuild trust in the company, its people and the promise of its technology and research

Admittedly, there are issues with an ongoing SEC investigation and the raft of class action law suits that will follow, requiring some legal scrutiny of all communications and news releases. But being more candid from the outset and NOT burying the news in the fourth paragraph would probably have enhanced company credibility, started rebuilding trust and shored up the confidence of some investors by setting a vision for future change and, perhaps, success.

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GM Volt Hits Reputation Management PR Hype Trifecta; Math Strangely Missing

Wednesday, August 19th, 2009
What's behind the curtain

What's behind the curtain

Posted by Tom Gable

General Motors held a major media event to promote the 230 mile-per-gallon capability of its Volt electric car, preceded by a “What is 230″ viral campaign.  PR and marketing experts jumped in quickly to question the goal of the hype program for a car that wasn’t due out for one year.  Was it a preemptive strike against other electric cars in the queue? Or one small step for GM in repositioning itself?

The campaign did create buzz, plus questions, criticism and skepticism – the PR reputation management Trifecta.

Even worse, the media missed the big story and one that potentially pops the 230 MPG bubble: the Volt will be more costly to own and operate than less expensive cars getting far worse gas mileage.

The media debate centered on the validity of the MPG claims. The Los Angeles Times pointed out that the 230 MPG was based on city driving where the car might never use the gasoline engine. GM had calculated highway mileage for longer trips but didn’t release the data. Cynics wondered if the number fell in the Hummer range.

CNET raised similar questions about the mileage calculations and said it “begs an obvious question: how can the mileage of electric vehicles be compared to gasoline cars?”

AdAge took umbrage with the “What is 230?” buzz campaign.

“The push was flawed because it was ill-timed, targeted a group that is not likely to be the core Volt buyer and — most of all — didn’t offer enough clues to engage people,” Abbey Klaassen wrote.

Ian Schafer, CEO of Deep Focus, said he saw more talk about the government moving onto a 230-volt standard than this being for an electric car. Jokesters wondered if the question came from Conan O’Brien asking what was the new weight of Christie Alley.

Scout Labs, which measures social-media chatter, noted in AdAge that the “What is 230″ buzz also helped deliver a spike for rival Toyota’s Prius, an unintended consequence.

AdAge asked GM why do a teaser campaign. CEO Fritz Henderson said that in order to win a new generation of buyers, “we need to relate to people between 16 and 30. They communicate differently and we need to make sure we plug into that.”

“That may be true, but so is this: At $40,000, the Volt will be too expensive for much of that demographic,” AdAge notes, which gets to the BIG issue.

Surprisingly, if you do the math on costs of the Volt versus traditional cars costing less and getting significantly lower miles per gallon, the Volt loses.

The following table shows the cost of owning and buying gasoline for cars costing $20,000, $30,000 and $40,000 (estimated cost of the Volt). The 48-month and 60-month payments were calculated at 10 percent interest using Bankrate.

For mileage, the calculations were based on driving 10,000 miles a year and getting 20 or 40 miles per gallon at a price of $4.00 a gallon. We rounded off the Volt to 200 MPG from 230, assuming there might be a little highway driving.

In the worst-case scenario of traditional cars getting 20 miles per gallon over five years and a total fuel cost of $10,000 versus $1,000 for the Volt, the $20,000 and $30,000 cars are $16,496 and $3,748 cheaper to own and operate than the electric Volt. At 40 MPG, the savings are $21,496 and $8,748 over five years ($5,000 total fuel cost versus $1,000 for the Volt).

Bottom line: before using all your big guns, tools and tactics to launch a new initiative, position or product, analyze the backfire. Will it be minor, from the omnipresent critics and skeptics, or could it create long-term damage to your reputation and future business and marketing goals?

Four and Five Year Costs – Volt Versus 20MPG and 40MPG Cars Costing $20k and $30k

Car Cost

48

Annual

Subtotal

20 MPG

TOTAL

Diff

$20,000

$507

$6,087

$24,349

$8,000

$32,349

$17,147

$30,000

$761

$9,131

$36,522

$8,000

$44,522

$4,974

$40,000

$1,015

$12,174

$48,696

$800

$49,496

48

Annual

Subtotal

40 MPG

TOTAL

Diff

$20,000

$507

$6,087

$24,349

$4,000

$28,349

$21,147

$30,000

$761

$9,131

$36,522

$4,000

$40,522

$8,974

$40,000

$1,015

$12,174

$48,696

$800

$49,496

60

Annual

Total

20 MPG

TOTAL

Diff

$20,000

$425

$5,099

$25,496

$10,000

$35,496

$16,496

$30,000

$637

$7,649

$38,245

$10,000

$48,245

$3,748

$40,000

$850

$10,199

$50,993

$1,000

$51,993

60

Annual

Total

40 MPG

TOTAL

Diff

$20,000

$425

$5,099

$25,496

$5,000

$30,496

$21,496

$30,000

$637

$7,649

$38,245

$5,000

$43,245

$8,748

$40,000

$850

$10,199

$50,993

$1,000

$51,993

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Posted in Authentic PR, Client Service Results, Horizon Management, Hype Free PR, Social Media | 1 Comment »

Aquarium of the Pacific Survey Sinks to Bottom of the PR Tank

Monday, August 10th, 2009

Underwater Wonder

Underwater Wonder

Posted by Erin Koch

We frequently remind our clients at Gable PR of the importance of getting solid audience intelligence before launching a comprehensive PR program. Knowing which messages will move your audience to take action, as well as where they get their information is the foundation of an effective PR campaign. It’s the PR equivalent of plotting a cross-country automobile trip; know all the nuances and details long before you even start packing.

But it is absolutely crucial that this research be conducted in a way that will result in accurate data. The road map can’t be based on leading questions or a biased audience sample.

I recently received an e-mail from the Long Beach Aquarium of the Pacific. The e-mail asked me to complete a quick Zoomerang survey. I agreed. From the outset, it was apparent that the aquarium was attempting to find a new pricepoint for the Child ticket. So they were conducting audience research on new ticket prices: a topic that will clearly require a good road map for communicating with their guests. Here is how the survey went:

    • Screen 1 – Would you be willing to pay $18.95 for a Child admission to the Aquarium of the Pacific?
    • 2 – Would you be willing to pay $17.95?
    • 3 – $16.95?
    • 4 – $15.95?
    • 5 –$14.95?

Now, as a card-carrying father to three fish-loving kids, how do you think I answered each question? As I continued checking off the “no” box, the amount of the proposed ticket price kept dropping! A wonderful thing! So I obviously continued checking “no” until the survey moved on to a different topic.

Had the question been phrased differently, I might have had a different response. For example:

At Aquarium of the Pacific, we strive to provide each guest with an experience that is worth far more than the price of admission. In this challenging economic climate, we are currently reviewing our ticket prices to determine whether changes might be acceptable to our valued guests, and would appreciate your honest input on what you would be willing to pay for a Child admission. Please check off all boxes that apply:

    • $18-20 [ ]
    • $16-18 [ ]
    • $14-16 [ ]
    • $12-14 [ ]

Giving the question more context, then providing the full range of prices under consideration on a single screen, makes me much more likely to give a straightforward answer, rather than trying to “game” the system to get the price to go as low as possible. It would also be easier and faster to complete, increasing the response rate.

Audience research is crucial. But the effort is wasted if the data is collected in a way that is biased. In this case, the Aquarium of the Pacific is very likely to receive data that indicate that very few of their prior guests are willing to pay even their lowest proposed price for a Child admission.

A final note: once I completed the survey, the screen stated, rather tersely, that I did not meet the qualifications to continue to an additional survey. A simple “thank you for your valued input” would have been good PR and much friendlier. And, more importantly, as a huge fan of the Aquarium of the Pacific, I dread the thought of them making a crucial pricing decision based on an awkwardly constructed survey completed by a non-representative audience sample.

Photo by Kevitivity

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Posted in Brilliant Counsel, Client Service Results, Horizon Management, In the Beginning | No Comments »

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