Posts Tagged ‘measurement’

PR is NOT the Guardian of Corporate Reputation

Friday, November 16th, 2012

A guest post by James G.Savage — A few weeks ago Sean posted eloquently on the value of a firms’ reputation. Akin to the accounting concept of goodwill, there is general agreement that reputation and, hence, reputational risk is, in fact, tangible and material. In light of the wreckage of the past few years, stakeholders increasingly assume companies are on top of reputational issues, but in fact most companies still do not have any sort of proactive reputation management strategy, with no holistic approach to building reputation and mitigating risk.

Functionally, who owns corporate reputation? In the risk management world there is a fierce debate going on right now over that very point. Most corporate communicators reading this blog would probably assume PR is front and centre here, as communications is at the intersection of brand, business, stakeholders and reputation.

And they’d be dead wrong.

Reputation management remains at a very nascent stage. Like the parable of the blind men and the elephant, various internal ‘experts’ within the enterprise approach corporate reputation from their specific fields of expertise. Within companies, the C-suite assumes reputation is top-of-mind for all employees, while specific functions – enterprise risk management/GRC (governance, risk and compliance), marketing, communications, operations, product development, corporate sustainability, even IT – equally assume they “own” guardianship of the firm’s reputation. These various parties work diligently in splendid isolation from one another, often falling victim to the critical myths I outlined in an earlier white paper.

The author of KPMG’s authoritative Reputational Risk Survey, Dr. Thomas Kaiser, put it this way in a recent interview with Britain’s Risk Universe magazine:

The role of PR departments is essential for ‘clean-up’ operations following a reputational risk event, but they should not be key in its active management. Reputational risk is not a PR exercise – the underlying problems of any event need to be solved rather than actively managed after the event.

To me, that quotation epitomizes the singular failure of corporate communications to get beyond the tactical and be seen as central for business strategy and corporate reputation. Kaiser adds that “people (in the enterprise) need to define their role in reputation management.

So I’ll put it out there for this blog’s readers. Has PR missed the boat? Are we down there in the weeds thinking reputation management is merely a matter of getting rid of that nasty Facebook post or Twitter meme without taking the lead in communicating to the C-suite why the attacks on reputation are occurring? Have communicators been sidetracked by CSR into being the Pious Works department?

If PR doesn’t lead, then whom?

Jim Savage is principal of Reputation Leadership Group (www.reputationleadershipgroup.com) (RLG), of which Sean is a member of the board of advisors. They have been collaborating and co-conspiring happily for many years.

 

 

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On the balance sheet, it’s ‘goodwill’

Friday, September 28th, 2012

A fever dream of most communicators I know is that we could quantify in monetary terms the public relations/communications value to organizations. It inspires yearning, craving, shivering, salivating and panting — at least in a few communicators I’ve known.

The marketing folks love to lord it over their PR colleagues — X impressions equals Y prospects equals Z sales. We don’t apply that formula often, and I worry that if we concentrate too much on quantifying impact on sales, we wind up reducing our role by at least half if not more.  In the broadest sense, all communication functions are about impact on the business of the business, true, as we won’t sell as much with a bad reputation as we might with a good one.

The trouble is that looking for that direct formula can lead to discounting issues management, employee communications, social responsibility, community relations, and all other stuff that isn’t directly related to product/service PR.  This is why I embrace the term “integrated communications,” but reject the inclusion of the word “marketing” in between the two words.

What we need is a monetary proxy for reputation, and I wonder whether “goodwill” might be a worthy solution. Goodwill is, in a merger, the difference between book value and the price paid in the acquisition. It’s the value in real terms of the brand, the reputation the acquired company brings to the table, the potential sales represented by the customer base.  You might say that the intrinsic knowledge of the employees (as opposed to the explicit knowledge) has value in that construct too. Think of an industrial firm, such as Goodyear, with all the patents it owns, all the innovations it’s bringing to the table. Surely those are worth something in financial terms.

Improving reputation, even if it doesn’t draw an explicit path to revenue, should lead to an improvement in the overall value of the enterprise. The activity that brings about that improvement can be quantified in terms of impact through research, both objectively (in terms of behavioral factors such as recommendations), and subjectively (in terms of qualitative measures such as willingness to recommend.) We then could look for statistical linkages among those data.

OK, my academic friends can sharpen their red pencils, no doubt, as I’m grossly oversimplifying. But I’m fairly certain that there is something to this. What if we could document the reputational impact of influence?

Think with me…

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IABC Heritage conference is Oct. 14-16 – See you there!

Thursday, September 27th, 2012

The international conferences for both PRSA and IABC are epic gatherings. I attended several of them, but found the scale rather overwhelming, especially when trying to network. It seems like everyone is hustling to their next session, and there are few opportunities to connect with the same person across the days. That’s why I’m a big fan of the IABC Heritage Region conference – the scale is smaller and the ability to make personal connections better.

Besides, the quality of speakers is outstanding, the social aspects entertaining and this year’s conference is a mere two hours down the road from me in Pittsburgh. No cross-country flights, no rental cars, no tsuris. I’m a sponsor this year, and will have the honor of introducing a couple of speakers.

If you’ve wanted to shoot the breeze a bit on PR, measurement, internal comms, reputation, influence or anything else, come to the conference and find me. Hope to see you there.

Here are just a few of the sessions I’m looking forward to:

Andy Warhol: Marketing the Man and the Museum

Nicholas Chamber, Curator, Andy Warhol Museum

From Campbell’s soup cans to colorful portraits of Marilyn Monroe, Andy Warhol’s pop art celebrates the artistic expression, celebrity culture and ad-centric focus of the 1960s. As a renowned and often controversial artist, Warhol took the world of marketing to its limits in both his professional and personal life. The Andy Warhol Museum, which is the largest museum in the United State dedicated to a single artist, contains an extensive collection of Warhol’s art and archives. This session will take a closer look at Warhol’s early career in the advertising industry and the museum’s marketing efforts to engage with a diverse international audience about the artist’s life and work.

Best Practices in Engaging and Empowering Colleagues Through Social Media

Heather Young, Senior Manager, Corporate and Colleague Communications, Pfizer, Inc.

At the companies who do it best, no one person or department “owns” social media. Instead, they create advocates of their employees and train and empower them to speak on behalf of the company. This unique approach to social media requires hands on community management, policies that protect the company and its employees and a certain bravery and willingness to  accept risk. The payoff is an authentic, two-way, social media conversation that helps to positively shape and influence a company’s reputation. In this session, learn about these lessons through Pfizer’s Think Science Now program.

Setting Quantifiable Objectives: The Key to Proving PR Value

Mark Weiner, CEO, PRIME Research

In every business case – whether the organization is large or small, for-profit or nonprofit, local or global – there is an objective. But the best objectives in the world aren’t good enough if they can’t be measured. Corporate communicators increasingly are being required to provide proof of real value in the programming they plan and implement. An effective public relations program is rooted in research, which is used to set objectives, develop strategy and design tactics then moves through program execution and evaluation. This session will take attendees through a proven process for setting objectives that are measurable as well as address how to communicate with the C-suite about the process.

The New World of Communication: How Social Media, Games and Behavioral Economics Have Rewritten the Rule Book

Adam Wootton, Director of Social Media and Games, Towers Watson

The session will explore the new tools available for communicators to use to engage their audience with a focus on behavioral economics, social media, games and game mechanics. Participants will learn why these new tools are important, their advantages and disadvantages, and how to talk to senior leaders about them. Easy steps to get started for each will be shown along with firsthand practical examples for use.

 

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Notebook: Reputation questions to chew on

Monday, September 10th, 2012

With trust in business — particularly big business — holding steady, but near all-time lows, and a political climate bent on slavish promotion of business and business people on one side, and equally slavish denunciation of business and business people on the other, where does that leave the public relations function of reputation management?

What are the components of reputation, and how do you measure them? What role do business executives play in supporting or undermining reputation? How do social media reflect popular opinion — or not? Do transactional relationships help or hinder reputation? Do simple errors constitute a crisis of reputation? Why or why not?

How should businesses (and other organizations) respond to reputation issues? What role does organizational behavior play? What about employee behavior, customer service, problem resolution?

I’m pondering these things, and realizing that they’ll take some research and exploration.  Stay tuned for some expert witnesses in this space in the days and weeks to come.

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Connect with me this fall

Monday, July 16th, 2012

There will be three great opportunities this fall to sharpen your professional saw, and to schmooze with me!  Sept. 10-11, I’m at “Connect 12” the PRSA Employee Communication Section conference at NYU in The City. Oct. 14-16, I’m the bronze sponsor for the IABC Heritage Region Conference in Pittsburgh at the Westin. Nov. 12-13, I’m back to New York for the 2012 IABC and PRIME Research Global Strategic Communication and Measurement Conference (where I’ll be speaking as well as schmoozing!)

Each of these conferences will be terrific. The PRSA section conference will be my first; I went to International in Washington, D.C., a couple of years ago, and managed a section dinner which was great fun. I’m looking forward to lower Manhattan and a chance to meet new folks and connect with friends.  The Heritage conference is outstanding – I spoke last year in Detroit, introduced a keynoter two years ago in Philly, and have served on both the sponsorship and speaker committees in the past. It’s always great to connect with IABC peeps!

Two years ago, I spoke at the IABC Communication and Measurement Conference in Seattle, and I’m delighted my friend and Institute for PR Measurement Commission colleague Mark Weiner (CEO of PRIME Research) invited me to participate this year.  Expect a great program at The Yale Club.

Hope to catch you at one – or all of these!

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Why is telling the truth so hard?

Monday, June 18th, 2012

Creative Commons, by Brian Hillegas

The Institute for PR has published “Ethical standards and guidelines for public relations research and measurement“, which PRNewser’s Tonya Garcia summarized as “Basically, don’t be a horrible, self-serving liar.” The statement, By Dr. Shannon Bowen, John Gilfeather, & Dr. Brad Rawlins, is a stake in the ground, and on the surface might seem to be a statement of the obvious. But PR as a profession still seems ethically dubious — witness the latest in a long line of Walmart amazin’s stories.

Walmart hired Mercury Public Affairs to lobby LA city hall to approve construction of a store in Chinatown. No problem. But when Mercury employee Stephanie Harnett went to a meeting of Warehouse Workers United, which wants to unionize Walmart’s workers, she lied about who she was, claiming to be journalism student from the University of Southern California.

Both Walmart and Mercury declaimed any responsibility — Mercury saying that she was a junior member of their staff and that no one, neither Mercury nor Walmart, told her to do any such thing.  I’d be tempted to write this off as a sad commentary on PR education and the “anything goes” culture of the modern age, but Socrates did a better job of making that argument.

What seems likely is that both Mercury and Walmart tossed her under the bus. Media reports say that Harnett was shaking like a leaf during her ruse, so she has to know that what she was doing was wrong. Of course, apparently she got over it in short order. Her Twitter account is closed (good idea; it can’t have been much fun to read the tweets), and she’s keeping a low profile.

Walmart’s not known as a Pantheon of ethics — the Astroturf campaign, the Mexico bribery issue. And many PR firms seem willing to do whatever will generate revenue, from selling war through deliberate falsehood to representing dictators.  PR ethics can seem like a contradiction in terms.

But I won’t give up, and neither should you. Thanks to Bowen, Gilfeather and Rawlins, we’ve got another arrow in our quiver.

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Getting attention with internal communication

Monday, January 16th, 2012

It’s become a cliche, you know. Overworked employees who can’t keep up with all the information they need to consume to be effective, despite (or because of) e-mail, voicemail, Facebook, Twitter, Yammer, Sharepoint…  But why blame the tools? It’s the strategy that needs work.

I recall 17 years ago when “we want employees to manage their own information” became a watchcry.

The idea was to create a repository of news and information and get people to seek it out.  This change from “push” to “pull” was supposed to take the heat off of communicators and bring about a knowledge revolution. Instead, employees voted with their feet, ignoring most all the news we pushed out, especially the stuff that supposedly was “important” — the company strategy, leadership messages and  human resources materials.  We were repurposing news releases in those days, not really originating stories from the employee perspective. We were passive, and we waited for our internal clients to come up with stuff.

Well, that’s not altogether true. We called them and asked, “Got any news?” What we should have done is treated employees as our clients and looked for reasons to do a piece, not expect our leaders and managers to come up with stuff on their own.

All through the years, our best-read materials at Key, Goodyear, National City and other places were stories, not news. They had people and drama and conflict and tension, or at least a compelling new angle on our business, told through example and demonstration, not mere recitation of fact.

At Goodyear, we had our interns do a ton of writing for our intranet, GO.  During their yearlong assignment, they’d cover plenty of news, such as events, quarterly earnings, significant announcements and industry doings, of course. But they also had to originate stories, particularly in the last couple of months of the assignment.

They wrote country profiles, talking with leaders and others about the business situation. They did stories on different parts of the business and people. And they did a multipart series focusing on one regional business, or on the fastest-growing geographies in the company.

These stories got read because they helped employees make sense of the information instead of merely leaving everything up to them.

We began to attract news from all the major business units, increasing our annual story count into the range of 1,200 – 1,500 stories per year.  Over a two-year period, we tripled our monthly GO traffic (visits and pages viewed) and saw a 10% increase in understanding of our company strategy.

How do you get attention, cut through the clutter? Write (produce) stories that matter to your employees, balancing the need for leadership to transmit information with the need for employees to have relevant content available to them.  Do research among employees and leaders to discover what those stories should be, and do it often.

All you’ve got to lose is your irrelevancy.

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What are your predictions?

Sunday, January 1st, 2012

I decided to take a stab at putting together a “communication predictions for 2012” post and asked on Twitter for contributions in hopes of getting it out this coming week. As it happens, Judy Gombita (@jgombita) and Paul Seaman (@paulseaman) have obliged with their thoughts, and Heather Yaxley (@greenbanana) has written a definitive post on PR trends that bears close examination.

I’d  appreciate your thoughts, especially about measurement and internal communications. Where might we go in 2012?

My reactions to Judy and Paul are below – about Heather’s piece, I can say only, READ IT.

Judy’s comment:

Fingers crossed @CommAMMO: #corporatecommunications (aka #PR) is going to embrace LEADing (not OWNing) #SoMe for integrated communications.

Integrated communication is not only inevitable, but highly desirable, especially around Social Media. What I’d hate is to have Marketing inserted between Integrated and Communication.  As Judy’s crossed fingers aver, this isn’t an ownership question, it’s a question of leadership. You know my adage: All marketing is communication, but not all communication is marketing. Thanks Judy!

And Paul’s:

@CommAMMO #corporatecommunications the only safe prediction is that 2012 is unpredictable. Yet I forecast an increase in PR spend over 2011.

Speaking as a small businessperson, I hope Paul’s right! But I also hope that the increase in spend includes a modicum for effective measurement, research and evaluation. We CAN measure the effectiveness of communication activity and do so cost-effectively, but not for free. I fervently hope that the extra PR ducats are for issues management, reputation and employee communication, not just publicity and press agentry. Here’s hoping. Many thanks, Paul.

Note: 2012 marks my third year in the land of entrepreneurship and blogging/tweeting. It’s been fun, and I very much appreciate your kind attention to my fevered scribblings. As per lately, I’m blessed with clients, teaching, grad school and family obligations, but aspire to participate in a few chats and cogitate herewith for your consideration. Mazel Tov for 2012!

-Sean

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Use 3 C’s to Work Together

Tuesday, August 9th, 2011

There’s been an animated discussion over at SpinSucks.com following a post from the always interesting @GiniDietrich on whether public relations needs mostly to be about driving sales.  Gini says,

You see, I believe a few things:

  1. Public relations (not publicity) can and should be measured to sales results;
  2. Public relations professionals need to gain some basic marketing skills or our industry will become defunct;
  3. Public relations is the very best place for content development because we are, after all, writers; and
  4. Really good content does more than attract Web site visitors or increase brand awareness – it generates inbound leads for the sales team.

Reading the comments, it’s evident that she’s got a lot of support for these notions, and while I don’t disagree that PR can drive sales, I don’t see that as the only role we PRs should play. There’s a bunch of stuff that we can do — issues management, employee communications, reputation management — that could be claimed by other departments but are mainly within our primary skill sets and usual responsibilities. The comment stream debates the point more than adequately (and entertainingly.)

But the reason I’m taking up your valuable time now is about how to set aside our provincialism and play well with others.

There’s substantial scholarship in the area of integrated communications, both against it in concept and for it. The thrust of the argument is whether all communication functions are aiming toward an eventual marketing outcome — driving sales. My colleague at Kent State University, Bob Batchelor, is solidly in that camp, as are communicators like @BethHarte and Gini.  I’ve frequently said that all marketing is communication but not all communication is marketing, but that could be a style preference: for too many marketers, all stakeholders look like customers, and all channels look like megaphones — I don’t want to “sell” to employees, community leaders, governmental officials, et. al.

I fully recognize the elegance of a unified approach to communication strategy. There are many benefits to integrating communications, but actually pulling everyone into the same department can be challenging, and we have to guard against efficiency getting the best of tailoring messages and methods. So how do we realize the benefits of integration without necessarily integrating?

I’ve got a process: The 3 C’s — Communication, Coordination and Collaboration.  I want to give each of these appropriate due, especially regarding how you measure, so I’ll tackle the first in the this post, then write some more on the others.

Communication seems so easy and basic, but it isn’t.  I’m aware of two organizations – large, global, complex — where you learn very quickly that the various communication functions aren’t talking to each other very much at all.  In particular, matters of budget, strategy and tactics take place in isolation, siloed-off from the beady eyes at “corporate.”

In short order, that leads to inconsistency in go-to-market (we can be consistent and still have appropriate tailoring), and lack of appropriate visibility and strategic alignment. At National City Corporation, a regional bank, we were in the thick of the financial crisis.  The communication team was distributed — a relatively small corporate department, with the business units (Private Bank, Corporate Bank, Retail and Operations) hosting their own departments.

Given the crisis circumstances (anyone remember 2008? Me too.), we needed to speak with one voice, to provide leadership and strategic understanding, to know what employees and customers were talking about.  So, we instituted a daily conference call for communication leads across the company. We started discussing these matters — not with an eye to seize the conversation and dictate strategy, but to better understand the situation and provide guidance.

Within five meetings, our working relationships improved. Within a month, we agreed to meet in person and work through a strategic process to better align our groups. Three months in, we were able to cut the meetings to weekly, because we’d started cooperating on many communication opportunities.

Communication opens doors — but only when it’s done with a heart for authentic improvement and understanding, not power grabs and dictates.

More on this coming up.

 

 

 

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Writing is topic for next #icchat

Thursday, July 7th, 2011

Robert J. Holland

Whither writing for the modern internal communicator? That’s the question special guest Robert J. Holland, president of Holland Communication Solutions, will answer in our next #ICChat, Thursday, 14 July at 10 a.m. Eastern.

Robert’s history reads quite a bit like my own: jobs with big companies, including ATT & Capital One, followed by entrepreneurship — he’s been at the latter a little long than I, however, eleven years versus my two. Over the years he’s amassed dozens of clients from Fortune 500 firms to nonprofits to small businesses. He’s also a university prof — Virginia Commonwealth University, where he teaches in the PR sequence of the School of Mass Communications.

Author, teacher, top-flight communicator – I’m delighted to welcome Robert to our #icchat family. Follow him on Twitter@RobertJHolland and find his blog at http://robertjholland.wordpress.com/.

 

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