Thursday, March 26, 2009

TMI - Three Mile Island or Too Much Information?

This weekend marks the 30th anniversary of the Three Mile Island meltdown. Without a doubt, people a whole lot smarter than I will be discussing and dissecting what happened and what should have happened from both a communications and operational point-of-view.

The meltdown led to several new "truths" in crisis communications and nuclear energy. Specifically, the world was taught the importance of preparing for the former and the hazards of the latter.

But is nuclear power dangerous? The common perception is that it is. (You can read an article from The Washington Post about the relative safety of nuclear power. You can also read about the critical hours of the meltdown here. ) In many ways, that's all that matters.

To be sure, the world of communications has changed drastically in the past 30 years and, while there is a lot to learn from the events of Three Mile Island, it's important to remember that at the time, there were no cell phones or Blackberrys; internet or email. Information could be released in a controlled, deliberate manner that I'm sure some communicators look back upon with envy.

I think the lesson for today's communications environment is attitudinal in nature. It's important to remember that companies and organizations much do what they can to prepare for a crisis situation. They must be ready to communicate effectively and avoid stonewalling. Information will always find a way out, either through deliberate or accidental action.

Take the steps you need to now by examing what your organization's exposure to risk is and determine how you can prepare to deal with a crisis when it happens.

Wednesday, March 25, 2009

New Light on AIG Bonuses

If you didn't yet read The New York Times, there's a fascinating op-ed - a resignation letter from an AIG executive.

This is a smart public relations move by Jake DeSantis, the author. He is making his case in a clear and understandable manner and, in so doing, he is setting himself up, in a very public way, as a good guy.

The letter also serves to educate those who thought - myself included - that the bonuses recently paid were obscene. The case put forth by DeSantis is that AIG double-crossed its executives - overpaid as they may be - who had absolutely nothing to do with the unbearable collapse to which we are all bearing witness.

DeSantis points an accusatory finger at Edward Liddy, AIG's current CEO for speaking in one way and behaving in another.

Already, it seems the rhetoric in DC vis-a-vis the AIG bonuses is dying down. Why? Because of the dissonance between what people are saying and what actually took place. DeSantis, I think, wins points for consistency of word and deed.

Again, public relations is about what you do and NOT about what you say.

Tuesday, March 24, 2009

Selling luxury these days

Most of us, it seems, are preoccupied with paying rent, mortgages and other basics. Why then - or more accurate, how - can a company such as Bugatti possibly sell any of its $1.5 million Veyrons?

I'm not a car guy but even I can appreciate a machine that can go a tad over 250mph. (The fastest I've ever gone was 100mph in a Datsun Stanza while pointing downhill on I-87 with the wind at my back. The car was shaking more than Chuck Yeager's "Glamorous Glennis" on October 14, 1947...) Practical it ain't. But that's not the point. The point is they're selling!

Forbes Life - it's amazing the publication even comes out at all - has a fascinating feature on how Bugatti does it. It is a case study in one-to-one marketing and worth reading. Here are the salient points:
  • You don't buy a Veyron; you apply for one;
  • Most of the marketing budget goes toward shipping a demo car to a prospect, along with a professional driver who will show what the machine is capable of doing;
  • The number of people in the world who might buy one is tiny and the company actively seeks them out to talk to them, one-on-one;
  • The car is constantly being watched, via satellite, where every parameter of the car is monitored.

Granted, most of us don't have products or services that are appropriate for such a tiny portion of the planet's population. Nonetheless, the artcile got me going because it points out some important marketing tips:

  • When you can, aim for exclusivity.
  • Demonstrate what it is you have to sell.
  • Determine your audience and speak to them directly.
  • Overservice and exceed expectations.

And now, if you'll excuse me, I have to go hit the open road.

Monday, March 23, 2009

Dear Kind Friend. If you deposit $10,000 into my account in Nigeria...

My friend Aparna, a graphic designer, forwarded to me this wonderful Reuters piece about Nigeria rebranding itself.

The country, known for its emails and various other forms of online scammery, is hoping to shed its seamy image with some t-shirts and caps with the power to restore self-confidence.

I wonder if a US-based firm is helping and, if so, they were required to deposit some money into a third-party bank account, secure in the knowledge that a huge payday awaits.

Bill George is only half-right

According to Bill George, former CEO of Medtronic (NYSE: MDT) and now a professor at Harvard Business School, the worst thing a CEO of a company is crisis should do is "hire a PR firm and ask it to restore your image." (March 16 issue of Fortune)
Far be it from me to tell Mr. George he's wrong. But he's only half right.
Hiring a public relations firm can be the smartest move a CEO makes. A smart PR firm will work with its clients to figure out how to build their reputations in times of "peace." Diligently working to help spread the clients' gospel through all forms of media, speaking engagements and so on, is what a good public relations firm does.
Why? (1) To help grow and protect business and (2) so that in times of crisis you have a reputational leg upon which to stand as you make your case for what went wrong (or not) and how things will be changed moving forward (or not). If your company hasn't been making its PR investments, how could it possibly reap the benefits of any dividend?
The mistake so many managers make is assuming that hiring a PR firm can wait until a company is in crisis. I've said this is this space too many times to count: public relations is about what you do; it's not about what you say. If your company screwed up, you have to own up and demonstrate the way out of the mess.
Public relations professionals are not magicians and don't "spin it" for a living. PR pros help build well-deserved reputations and play a critical role in their defense.

Friday, March 20, 2009

Heeeeere's Barak!

Unless you've been hiding under a rock, you know that President Obama appeared last night on The Tonight Show with Jay Leno. It was a big deal. A sitting president has never done that before. And, of course, everyone has an opinion.

Including me.

It wasn't a mistake for him to schedule the appearance and, in retrospect, it went well. The only gaffe came when the president compared his bowling ability to the Special Olympics.

So, does this mean that sitting presidents now have to do the late night circuit? No, and we can all learn a lesson. Every media appearance and speaking opportunity for any spokesperson or chief executive needs to be judged in terms of importance and weighed against the person's ability to handle the situation. Obama did well because he thinks on his feet and doesn't seem to have to rely on thoroughly canned talking points. Also, he's usually rather funny.

Imagine if President Bush had tried the same.

Bottom line: it went well and it was a positive experience. As my favorite television president says, "What's next?"

Thursday, March 19, 2009

NEWSFLASH - People are watching their money!

Old story - A number of years ago, I helped a furniture remanufacturer with key messaging. They thought they sold on value; turns out the "green" issue was their customers' hot button with value a close second.

They're in luck because, according to Mark Penn (about whom I've written before), "green" is no longer increasing heart rates; value is.

In an incredibly long-winded piece, Penn explains that consumers now are watching their pennies and, yeah, being green is still cool, but saving green is where it's at.

I guess that makes it official.