Archive for Issues Management
May 28, 2009 at 8:54 am · Filed under Issues Management, Globalisation, Public Relations
“Could I try the heart?” asked Canada’s Governor General, Michaelle Jean as she leaned over a dead seal. She was showing her support for the Inuit tradition of seal hunting in the face of an EU ban on seal products. While Inuit cull small numbers of seal using traditional methods, EU members object to the larger-scale killing by commercial hunters of thousands of seal pups.
So after eating some raw seal meat the Governor General tucked into a bite of raw heart. Her verdict? It tastes “like sushi.” She encouraged all Canadians to sample raw seal.
(Side question: Is this now a national duty or merely an invitation? Are Canadians obliged to eat raw seal much like Japanese school children being served whale meat in school canteens?)
During the peak of “Mad Cow” disease (bovine spongiform encephalopathy) brave British politicans were photographed…enjoying a barbequed steak! Nothing could hold these brave men back as they tucked into a prized British export. (”If it’s safe enough for me…”) Eventually England killed 4.4 million head of cattle.
Now Swine Flu is in the headlines. The misnomer is leading to bans on the export of pork. And while world health authorities have changed the name to “H1N1 Virus” it lacks the same pizzaz as “Swine Flu” especially to the readers of The Daily Telegraph.
Today’s cover features “the first family of swine flu” - now under quarantine to stop the spread of the disease (pictured below: John and Fiona Darcy with sons Jarryd and Nicholas - source: The Daily Telepgraph).
My question: Will they put some pork on their fork? Should Kevin Rudd stop by with a take-away serving of Pork Lo Mein?
April 30, 2009 at 2:46 pm · Filed under Issues Management
In Israel a formal apology was offered to the Ambassador of Mexico. Deputy Health Minister Yakov Litzman suggested the swine flu be renamed Mexico flu as pigs are not kosher. Says National Public Radio in the USA:
Mexico’s ambassador to Israel formally protested Litzman’s statement. Israel’s Foreign Ministry later apologized, saying Litzman was “just kidding.”
Meanwhile in Egypt some 30,000 to 40,000 pigs will be culled - even though there appears no link between the animal and today’s outbreaks.
Swine Flu was so named as the humble pig was likely the breeding ground of today’s influenza (most accurately known as H1N1). The strain combines elements of swine flu, avian flu and human influenza. Within the pig the cocktail came to life and began spreading from human-to-human.
For reassurance, there is no danger with pork. In fact the misnomer of Swine Flu is causing significant damage to the farming industry. The Australian Pork Council is working to keep the public reassured, according to ABC Rural - “Eating pork is safe, says industry”:
“We need to watch what’s happening, but there’s no risk whatsoever from pigs or pig products in Australia.”
These reassurances are not helping as numerous countries place bans on the import of pork and pig products from nations with reported cases of swine flu. This is leading to a sharp drop in the price of grain - a feedstock for pigs.
For now the name - Swine Flu - is having the unintended consequence of scaring consumers and importers off pork.
The challenge now for producers, industry associations, government and the media to continue providing accurate information in a calm manner. Public hysteria is easily raised through sensational reporting. Each form of communication - from traditional media to social media - can help assuage fears and correct misperceptions. Yet to breakthrough the cluttered airwaves pork producers need some visual-friendly imagery and smart spokespeople to achieve results.
Why not try:
-
Eye-grabbing graphics?
-
A voice on Twitter and Facebook?
-
An up-to-date web site with consumer information?
-
Leaflets in stores on smart and safe pork handling?
-
Savvy chefs armed with materials ready to speak to television morning shows?
It’s now an obligation to keep consumers informed on the facts and to separate the fiction. Or us little piggies will never go to market…
April 16, 2009 at 12:38 pm · Filed under America, Issues Management
US Federal Reserve Chairman Ben Bernanke took the role saying he didn’t want to create a cult of personality. Former chairman Alan Greenspan was so well-known and influential that USA presidential contender John McCain, in the race for the White House in 2000, said if Greenspan died in office he’d put sunglasses on him and prop him up in his chair. Bernanke wanted to do things differently and develop the profile of the institution, not the man.
Times have forced a change.
The world faces the greatest economic challenge since the Great Depression. Poor management will cause further collapses and leave the global economy stagnant for years. The rapid fall-out and global spread of the recession have taken all by surprise. Coordinated, rapid action is mandatory to stave off a downward spiral.
Yet the issues are complex and the solutions hard to understand. Greenspan once famously said, “if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.” President Barack Obama has his entire reputation riding on the perceived efficacy of his actions. Trillions have been spent trying to stabilise financial systems and auto manufacturers. It needs to work - and it needs to be perceived to work.
Yesterday Bernanke gave a speech in Atlanta at Morehouse College. Here he devolved into a primer on the economy and explained the basic fundamentals. After he sat with students and took questions. The speech and the discussion were broadcast on national television.
The lesson for corporate communications is clear. Financial matters are a challenge for most consumers to understand. “Dumbing down” is not always an option - while it may be simple to explain a term deposit in a 30 second advertisement, you can’t squeeze plans for global economic rescue into so short a space. So instead Bernanke is trying to “smarten up” the populace. He’s taking every opportunity to explain to the American people what is happening and how the Reserve Bank’s actions are helping.
Today “The Australian” covers this and more under the title “Bernanke’s PR Rewrites Fed Script.”
March 31, 2009 at 12:10 pm · Filed under Issues Management, Media Industry
A few weeks back USA media commentator Rachel Maddow aired a segment about AIG and their use of public relations firms (see 11 March blog posting). She then chose to closely examine the track record of one of the firms that AIG uses. The segment led to a letter being issued by that firm’s CEO to all employees. And…you guessed it…another segment on The Rachel Maddow Show.
Here’s the dig. Rachel’s show is really popular. She’s a ratings star, according to Wikipedia:
Since its debut, the (Rachel Maddow) show has topped Countdown as the highest rated show on MSNBC on several occasions. After being on air for a little over a month, Maddow’s program doubled the audience for MSNBC’s 9PM hour.
Clearly Rachel Maddow has made attempts to speak to the public relations firm in question. This is exactly the type of appearance the CEO should have accepted. By failing to engage the conversation is one-way. Rachel is in control. She’d no doubt enjoy a fiery debate with an well-versed professional. Instead she was denied the chance and the story ran another day.
Lesson? Is it “do as I say, not as I do” for clients of that agency?
March 24, 2009 at 11:38 am · Filed under Issues Management, Globalisation
Royal Bank of Scotland (RBS) has already received a significant injection of taxpayer-funds in the first tranche of emergency government lending late last year. This past weekend The Sunday Herald in Scotland writes that RBS is likely to receive much, much more (”RBS will get ‘billions’ in US bail-out of economy” by Ian Fraser). In Sydney RBS now has a prominent facade as the old ABN-AMRO Tower has been renamed the RBS Building-Tower-Shining Edifice.
So with a big building - and a bigger bail-out - I was keen to learn more when I saw RBS sponsoring a large display in Sydney’s Martin Place.
It was odd to see such a large - bubble - with the RBS logo so prominently displayed. I figured inside would be the legendary “toxic assets” that were the root cause of this global strife. I imagined bio-hazard engineers mopping up collateralised debt obligations and other nasties.
Instead RBS had a sports car that simulated a real “on track” experience. Brochures invite participants to:
Take the Challenge
Using a full size formula 1 show car with a driving simulator, you can test your instincts, nerve and reactions to set the fastest lap (source: The Sydney Challenge hand-out from RBS Martin Place display)
Now people have accused me of being cynical - and I agree. I have been a little biased in past posts. And at first I was horrified. Last year RBS accepted US$30 billion in government funding to continue operations (according to CNN). Today it is in line to receive tens of billions of dollars more. And in Australia, RBS has no retail banking operations. So the RBS Bubble is to keep the brand front of mind with corporations and other banks.
Then the penny dropped. Of course it makes perfect sense. RBS needs its customers to have all the reflexes of a professional race car driver if they are to survive the harrowing twists and turns in the coming months.
Who says the RBS display in the centre of Martin Place is a waste of tens of thousands of dollars?
March 11, 2009 at 8:57 am · Filed under Issues Management, Media Industry, Public Relations
In the midst of a bad new year, global insurance group AIG has made news by adding another public relations agency to its roster. It seems unusual that an announcement of this type has been made - perhaps it was to make it easier for journalists to contact the right firm for assistance?
It backfired spectacularly as one commentator tries to come to grips with a taxpayer-funded company hiring public relations agencies. Rachel Maddow then lists all the clients that have hired the same agency - and says, “…evil has PR on speed dial.”
It will be interesting to see how the firm handles its own crisis.
March 3, 2009 at 4:21 pm · Filed under America, Issues Management, Globalisation
Great communications achieves cut-through. You hear a phrase that you immediately understand and remember - and it epitomises the issue at hand.
Warren Buffett - the Oracle of Omaha - has a wonderful way with words. He’s been tested in his most recent shareholder letter when trying to explain the devastation wrought by the global financial collapse. Buffett says of 2008:
By year end investors of all stripes were bloodied and confused, much as if they were small birds that had strayed into a badminton game.
No confusing that imagery. And yes, I feel much like a battered sparrow. Who doesn’t?
But what chills the blood is Buffett’s description of the government’s response:
In poker terms, the Treasury and the Fed have gone ‘all in’.
That doesn’t leave any room for maneourvre, does it?
In Australia the government has kept a few spare chips in reserve. The Reserve Bank of Australia chose not to lower interest rates at today’s meeting. That means there’s a little more flexibility for future changes. And Prime Minister Kevin Rudd has rushed AU$42 billion in aid out. But that’s billion with a “b” and not like the $1 trillion now being laid out in America. (Cut to Dr Evil in Austin Powers who exits a time machine and decides, in the 1990’s, to blackmail the world for $1 million. What comes after trillion? Gazillion?)
But back to bloodied birds. If you’re trying to make sense of the global financial collapse then look no further than Warren Buffett’s letter to shareholders. It’s plain, understandable and damn sobering.
March 2, 2009 at 8:53 am · Filed under America, Issues Management
After the Detroit CEOs flew private jets to Washington DC, caps in hand, crying poor mouth, the beleaguered corporate jet industry can’t get a break. Cessna has launched a series of advertisements - “We think it’s time to tell the other side of the story”. And oddly I have to concur - to a degree.
Most companies use corporate jets for rapid point-to-point service for mid-level managers. The interiors have more in common with no frills airlines than luxury jets. They fly routinely from headquarters to distant plants in cities no longer serviced by direct flights. Ford had one such workhorse that went from Detroit to Memphis then Kansas City in a routine circle twice a day. There was no on-board catering or movies. It was traveled by engineers and product designers working on day-to-day tasks.
At times like this, the corporate jet is the workhorse of the sky.
But let me tell you about the show ponies. Ford Credit had one CEO particularly enamoured of private jets and Ford had a fleet of them. Each jet was kitted out with an interior evocative of each major brand. My staff were instructed to get the Aston-Martin jet every time. This long-range aircraft was first ordered ostensibly to fly to Asia non-stop from Detroit. Problem was the marble and leather interior weighed so much the plane needed to refuel mid-way through long haul flights. But it was nice inside.
The private jet terminal was small and comfortable and dedicated to Ford management. As soon as all passengers arrived the jet was boarded and cleared for take-off. When’s the last time your flight left five minutes after you got the airport?
In some instances the jet still made sense. Eight executives huddled together to plan the day’s activities then conducted long-distance business with stop-watch precision. But like any smart option the corporate jet was prone to abuse. Like the time an in-flight meeting was called on a direct flight to Orlando with the CEO’s family a few days prior to Christmas. Once the leader and his encourage were off the plane - and the hold was emptied of gifts - the meeting was cancelled and the plane flew back to Detroit.
Today sales of corporate jets have fallen off a cliff. Second-hand jets are available with “make an offer” listed on their web ad. I’d encourage you to gather some friends and bid as a consortium. A plane that commanded $48 million in boom times can now be had for $30 million. Imagine - where else in your life can you make an $18 million saving? At these prices why not buy two? It sure beats flying commercial…
February 26, 2009 at 11:13 am · Filed under Leadership, Issues Management, Australia
One of Australia’s most contentious CEOs is leaving at the end of June. Sol Trujillo has been in charge of Telstra for the past four years. (Telstra is the former government monopoly telecommunications giant that now must face a competitive world post-privatisation.)
Australians love to hate Telstra - it’s part of the national identity. Yet additional venom has been reserved for CEO Sol Trujillo. In turn he’s alientated government, the media, the public, customers, unions and shareholders. You have to admit he’s been quite thorough.
Before he even took the job or started as CEO Trujillo had several factors working against him. Telstra has offered decades of shoddy service at exorbitant prices. When I first moved to Australia in 1990 it was common to have one call to the USA costing over $100. Today a $100 phone card can keep you in touch for two or three years! Repairs were slow and new installations were slower. Hence - we love to hate Telstra!
Second factor working against Trujillo? Sin of all sins - he’s American. And Americans are universally idolised and despised in Australia (or is it just me?). We’re loud, brash, know-it-alls. We wear sneakers with khakis and shout when talking would do. We’re ignorant of the world and its customs (”Look at the funny Australian money!”). And when we succeed we don’t fade into the wallpaper and share the credit - we thump our chests and say, “Damn right!” Ain’t that awful?
Last year Sol was found to be less trustworthy than…the Wiggles. For real!
But the king pin reason for the “I Hate Sol”club is his approach to government relations and business. He rallied against restrictive government policies that would have forced Telstra to provide competitors discounted access to trunk lines. He fought to retain market share. And he made it difficult for government to take Telstra for granted.
But (and this is a BIG but) Sol did so in a very public manner. He and his team aired their grievances in the media, on-line and in public. It was reminiscent of Karl Rove where “divide to conquer” approaches split red states from blue states, brother from brother. The “in your face” style of issues management was very out of place in Australia and very controversial.
So farewell Sol. And as for the replacement CEO? Get ready. Because you’re replacing Sol people will love you - but only a little. After all, you’re at Telstra. (That is unless you’re a Wiggle!)
February 3, 2009 at 9:28 am · Filed under Leadership, Issues Management
Last Monday companies in America announced 70,000 job cuts. That was one day alone. In the USA unemployment tops 10% in numerous states and the national average is inching up daily (especially on Mondays, right?). Nearly every company worldwide is looking to make cost cuts - and most times that involves letting people go. Yet too often it’s handled poorly leading to longer-term problems. Remaining employees are demotivated, restless and scared - “survivor’s guilt” mixed with “am I next” pangs.
So if you’re preparing to shed jobs, here are a few rules to consider:
- Be Prepared
Works as the official motto of the Boy Scouts - so it might work for you. Spend time planning the TOTAL cutbacks and then go to your employees. There is nothing worse than “death by a thousand cuts”. Do what you have to do and be done with it. But don’t re-start the sackings a month later. It’s bad planning and even worse management.Also remember all the audiences these employees deal with on a daily basis. Will you have the resources to contact key clients? What about supplier relationships? What critical knowledge needs to be transferred - and how will you manage all your external relationships with a pared-back workforce?
- Tell It Like It Is
We’re all adults (mostly). We can handle the bad news. (”Your puppy ran away” may have worked when you were a kid but if the dog is dead tell us the dog is dead.) Explain why the cutbacks are necessary and what it means for the remaining employees. Some will see an increase in workload. Try to motivate the remaining employees to help keep the company viable. McKinsey points out that employees can accept bad news better when they understand the underlying business strategy. Treat us like grown-ups and explain why this is necessary.
- Treat Everyone With Dignity and Respect
Fired employees are people, too. Just because they’re superfluous to your business doesn’t mean they’re worthless. People will be in shock when you break the news. Make sure you keep the messages simple - and have on paper all your key points. Most questions centre on the mundane - entitlement pay-outs, long service leave, company car access, etc. But being prepared with these details will eliminate the majority of the trauma. And manage their emotions. They are likely to be in shock (followed by anger).Try to avoid patronising language (”I know how hard this is for you” sounds hollow if you get to keep your job). This is not about you or the company. When you’re talking to people who are losing their job keep the focus on them, their needs, their next steps, etc.
- Tell It Again (And Again)
Saying it once is just the start. People need messages to be repeated again and again. We’re currently managing communications for a company under Voluntary Administration. Yet despite letters, web updates, emails, meetings and the like every day someone calls trying to understand the basics. Why are they closed? What’s this mean to me? I reckon people begin to understand the third or fourth time they’ve heard a message - that’s why advertising is effective when repeated. Don’t “launch and leave” - make sure you tell it again and again.
- Be Prepared for the Unexpected
No matter how much advance planning, there’s always a surprise. When letting go 300 stockbrokers in Hong Kong for a client, the people who were to be told first in an 8:00 am meeting found their computer access cut off the morning they showed up for work. HR told IT and all PCs were cut off. Those arriving for the 8:00 am meeting were already aware - and angry. A healthcare company in New Jersey I had as a client was working to close a plant. Employees learned the day prior when electricity to certain areas of the plant was cut. Again, a supervisor took remedial action to cut costs.
None of these lessons is foolproof. There will still be slip-ups and surprises. However doing the hard planning in advance and preparing your materials will save a lot of pain and embarrassment - for you, your employees and your former employees.
« Previous entries ·
Next entries »
