My Three Cents

PR Trumps Advertising, Winning at International Ad Festival

2009-07-06T10:00:00.006-04:00

In a stunning coup, it was a public relations campaign that won the ad industry’s highest honors — Grand Prix awards in the categories of PR, direct and cyber campaigns — at the annual Cannes Lions International Advertising Festival last month.

The “Best Job in the World” campaign for Tourism Queensland centered on an AUD$150,000 six-month contract to serve as “caretaker” of a pristine island on the Great Barrier Reef. Also included in the “compensation package”: round-trip tickets and free use of a gorgeous, multi-million-dollar oceanfront villa. The successful candidate would be responsible for reporting his or her experiences to a global audience via weekly blogs, photo diaries, video updates and traditional media. This is public relations, not traditional advertising.

"The way the world is heading is voluntary engagement," said David Lubars, Chairman and Chief Creative Officer of BBDO North America and head of the Cannes Film and Press Juries in a recent interview in Advertising Age. "The work has to be a magnet."

This event marks the death of the solo ad campaign, where the same messages are shouted over and over to your stakeholders. You have to attract, engage and dialogue with them. This is something public relations has been doing — and doing well — for a very, very long time.

I predict that with the decline of traditional ad venues (and especially, newspapers), smart marketers will increasingly be turning to public relations as the dominant technique to build brand and demand.

Technorati Tags: Makovsky + Company, Grand Prix awards,Cannes Lions International Advertising Festival, The Best Job in the World, Tourism Queensland, David Lubars, BBDO North America , Advertising Age, business, communications, public relations

IT'S NOT WHAT YOU KNOW, BUT WHO YOU KNOW???

2009-07-01T14:28:00.004-04:00

It has been an adage for as long as I can remember: who you know is more important than what you know. It is relationships, the adage suggests, that really get you somewhere … in fact, relationships trump wisdom or any systemic knowledge central to your organization.

It is clear to me that knowledge and relationships have equal weight and both make important contributions to the success of every company. Nevertheless, the reality is that, sometimes, the "I know X" phenomenon carries such weight that it can indeed supplant a systemic approach which, in the long run, might be better for the organization by fostering healthier operations and a better communications platform.

Nevertheless, it can be challenging to persuade some people that knowledge has equal weight, since we’ve all been brought up to believe in this adage. Here is a case in point: the National Committee for Responsive Philanthropy (NCRP) recently conducted a study — reported in The New York Times — which showed that more than 100 foundations that lost 30 to 100 percent of their assets in the Madoff scandal had four or fewer board members. Now what is wrong with that?

Aaron Dorfman, executive director of the NCRP, notes that one or more people on a small homogenous board either knew — or knew someone who knew — Madoff and were aware of the fact that he paid great returns for a sustained period of time. But, Dorfman points out, “it's not enough to allow Uncle George or Grandpa to say Bernie Madoff is a great guy and (then) make an investment." Dorfman believes, and I concur, that a larger, diversified board would not have accepted this casual approach and would have instituted a system whereby criteria were established for an investment policy. According to the NYT article, the median size of the boards of foundations that are members of the Council of Foundations is 11.

If there is a system in place that reflects the size board needed for a particular organization and enables the knowledge and facts to meet the entity’s goals, then the entire board can take responsibility for decisions regarding investments or any other matter. The end result might be the same, but the solution will be arrived at because of agreed-upon criteria, rather than someone’s general impression that so-and-so is a great guy and performs well.

This appreciation for systems, regardless of what needs to be achieved in business, is not to be confused with the very fact that public relations is all about building relationships with an organization's constituencies who can make or break a business. How well you get to know the people in these constituencies is fundamental to the success of that organization. But public relations, indeed, is a system in and of itself.

Technorati Tags: National Committee for Responsive Philanthropy, The New York Times, Bernie Madoff , Aaron Dorfman, organization, Makovsky + Company, communications, public relations

SURPRISES IN THE TOP JOB

2009-06-29T10:11:00.007-04:00

“What has surprised you most about the top job? What do you like most in people you hire? What message would you convey in a commencement speech?” These questions and more are asked of corporate leaders by The New York Times reporter Adam Bryant in the column titled, "Corner Office," in the Sunday Business Section. As in my last blog, I am focusing on some of the more unique observations made by the vice-chairman of Wal-Mart Stores, Eduardo Castro-Wright, and the CEO of Darden Restaurants, Clarence Otis, Jr. which I believe we can all learn from. These are lessons in communications, if ever there were ones.

The biggest surprise for Mr. Otis is "how amplified everything you say or do is." He elaborates that if you are thinking out loud, some thought you had, suddenly becomes a directive "even though ten seconds later in your own mind, you dismissed it." On the other hand, a disappointment for Mr. Castro-Wright is that business schools don't teach certain behavioral courses that are so critical in the leadership job: "how you talk with an employee you're firing" or "how you talk with an employee who comes to your office late at night to tell you that her daughter is sick, and she might not be able to come in the next day."

I feel Mr. Otis' next point is critical. He likes people he hires to be "comfortable with ambiguity and uncertainty" and not unmoored by people with differences regarding the same situation. "They've got their wits about them, so they're looking as much for the opportunity that's inherent in that as they are for the risk." Wise advice. Mr. Castro-Wright also hits on a key point, noting that leadership roles require both physical and emotional energy. "You're exposed so often to decisions that are emotionally charged, you have to have the balance and the energy, the emotional strength to actually do it."

"...Provide leadership in whatever area [you] choose to dedicate [your] life to," says Mr. Otis, as his key commencement message. It is an obligation for those of us who are so privileged to have elite educations, he points out. He also notes that what the individual wants to accomplish is crucial, but the person needs to make sure “that those things have some payoff for others." Obviously, he reminds us, nothing is accomplished alone.

Mr. Castro-Wright underscores in his proposed commencement message that there is no leader who can be one "if he or she doesn't have personal integrity, or if they don't deliver results, or if they don't care about the people they lead or if they don't have a passion for winning."

Technorati Tags: Makovsky + Company, The New York Times, Adam Bryant, Corner Office, Mr. Castro-Wright, Mr. Otis, Darden Restaurants, Wal-Mart, leadership, business, communications, public relations

The Most Important Leadership Lesson

2009-06-25T15:32:00.005-04:00

I am always looking for novel perspectives on business leadership, or even reminders of leadership basics that are often forgotten. And lately I have been finding them in the series on leadership in the Sunday Business section of The New York Times in Adam Bryant’s column titled, "Corner Office," where various CEOs and senior executives answer some fundamental questions, such as: “What is the most important leadership lesson you have learned? How has your leadership changed over time?”

Here—based on interviews with the vice-chairman of Wal-Mart Stores, Eduardo Castro-Wright, and the CEO of Darden Restaurants, Clarence Otis, Jr.—are some points I found worthwhile that all of us can learn from.

I particularly like and believe in what Mr. Castro-Wright says. He makes two salient points: "Leadership is about trust. It's about being able to get people to go to places they never thought they could go. They can't do that if they don't trust you." But that trust, he implies, can only be built, and the consequent achievements it enables, "if you do not care who takes credit for" the achievement. As we know, business is a team sport, but the team, Mr. Castro-Wright implies, may be as important as any individual ego. It is no doubt why at Makovsky + Company, our "collaboration" value wins out over the others when we recognize role-modeling via our We Achieve program.

The point is reinforced by Mr. Otis from another angle. "Leaders really think about others first. They think about the people on the team, trying to help them get the job done...and think last about 'what does this mean for me.'" He cites his years in the theatre and his reliance on others in the cast as preparing him for his current role. "You could have your piece [lines] down, but if one person on the team [cast] doesn't, you're in trouble."

Technorati Tags: Adam Bryant, Corner Office, Makovsky + Company, Mr. Castro-Wright, Mr. Otis

JUST A SIMPLE LID, Please.

2009-06-22T10:21:00.005-04:00

Am I a petty guy just because I want to buy a cup of coffee with a solid lid – with no hole in it -- that stops it from spilling?

And what the heck does this have to do with smart public relations?

Well, let me tell you the story. It seems this happens to me mostly in airports, but it could happen anywhere.

You go to Starbucks, or any one of the others. You have a suitcase and a briefcase to carry -- and you get handed an aroma-packed tall paper cup of coffee with a lid that has a sipping hole. So you can't put it in a bag, obviously. You need a full hand to carry it. "

Do you have a lid without a hole in it ?" I ask. Of course, 90 percent of the time the answer is "no!" So then I ask, "Do you have a tape I can put over the hole so I can put this in a bag and don't have to carry my briefcase and suitcase in one hand?" You know the answer. And so now I think twice, particularly at airports, about buying the cup of coffee I so desperately want. And then there's the brewmeister's attitudes when I make my request. They don't care. How can they not get it?

Flat lids without holes could not be more expensive than the "holy ones." Are they? I refuse to be vanquished on this one. Isn't this basic customer satisfaction? Good public relations? Even if I am in a minority, it seems so logical to at least provide a choice.

Technorati Tags: coffee, Starbucks, Makovsky + Company, communications, public relations

Combine Environmental with Economic Sustainability

2009-06-18T14:27:00.005-04:00

In his Green Inc. blog last April in The New York Times, James Kanter cited recent research that underscores rising consumer skepticism about green advertising. The Havas Media survey of more than 2,000 consumers found that nearly two out of three (64%) people are tuning out marketing messages because they are viewed “as little more than opportunism on the part of big business.”

Nevertheless, consumers continued to show strong interest in buying goods and services from responsible sources. “It is not a case of consumers being fickle, but rather a case of businesses being perceived as unauthentic,” reports Havas.

In a speech before the IPREX Worldwide Conference in New York City, on May 14, Michael Lee, Executive Director of the International Advertising Association, described how broadening the issue can help to create more receptive stakeholders.

“Consumers define sustainability more broadly than marketers and they care more about social and economic issues such as poverty, employment and health care more than environmental concerns by a substantial margin,” he said, describing a new approach to communicating sustainability developed by shopper-marketing agency Saatchi & Saatchi X.

Green marketing may be tired but “blue marketing” — which encompasses environmental with other social, cultural and economic concerns — will work better.

Technorati Tags: Green Inc, The New York Times, James Kanter, Havas Media, green advertising, Saatchi & Saatchi X, blue marketing, Michael Lee, International Advertising Association, IPREX, Makovsky + Company, communications, public relations

The Role of Retailers in the Green Equation

2009-06-15T15:39:00.005-04:00

The Environmental Protection Agency (EPA) recently released its list of the top 50 Green Power Partners — those organizations that are the leading purchasers of electricity produced from renewable resources, such as solar, wind, geothermal, biomass and low-impact hydroelectric power.

Some of the findings may surprise you. Here is a list of America’s top 10 green retailers:

1. Kohl's Department Stores
2. Dell
3. Whole Foods Market
4. Wal-Mart California and Texas
5. Starbucks
6. Staples
7. Lowe's
8. Safeway
9. Sprint Nextel
10. Coldwater Creek

According to Michael Lee, Executive Director of the International Advertising Association and a guest speaker at the recent IPREX Worldwide Conference in New York City, consumers — often confused when it comes to green claims — look to retailers to be the arbiters. What’s more they don’t just look to green-positioned retailers, such as Whole Foods and Trader Joe’s; they also look at companies, like Wal-Mart, “that have been working hard to burnish their green credentials.”

Technorati Tags: Environmental Protection Agency, Green Power Partners, renewable resources, Kohl's Department Stores, Dell, Whole Foods Market, Walmart, Starbucks, Staples, Sprint Nextel, Lowe's, Safeway, Coldwater Creek, Michael Lee, International Advertising Association, IPREX, Makovsky + Company, communications, public relations

Where Do C-Suite Execs Go for Information?

2009-06-11T13:13:00.003-04:00

Here’s an interesting nugget of information to share the next time you hear a colleague or client say that the best way to cut costs in a recessionary environment is to prune the social media elements of your communications program: The Internet is by far the most important source of information for C-level execs, more than three times as critical as newspapers. TV is ranked 5th at 3%.

Internet 67%
Newspapers 18%
Magazines 6%
Trade Publications 3%
TV 3%
Radio 2%

On average, C-level executives spend 15-16 hours a week on the Web; in fact, the Internet is where most of their media consumption takes place.

These are among the useful—sometimes surprising—findings of a 2008 survey of C-level and senior management executives commissioned by GartnerG2 & Forbes.com and conducted by Insight Express.

Here are the top six ways C-level execs spend their time online:

• Check e-mails before I do other work
• Online research
• Forward interesting online articles to co-workers or friends
• Read business/financial site e-mail newsletters
• I visit sites for business/financial news before I do other work
• Research competitors and industry trends

Technorati Tags: Makovsky + Company, recessionary+environment, social media, Internet, Forbes.com, GartnerG2, Insight Express, business, communications, public relations

Bloomberg: Where The Money Comes From

2009-06-08T11:28:00.018-04:00

“We have minute-by-minute connections to our customers. And that is really what distinguishes us from The Wall Street Journal,” noted Marty Schenker, an executive editor at Bloomberg, who recently led a seminar at the IPREX Worldwide Conference in mid-May. Representatives of independent PR firms from 16 countries were in attendance at the conference, which was hosted by our firm. (I was a founder of the global public relations partnership, in 1983.)

“We may think a story is important, but if our customers aren’t reading it, it’s not,” said Marty Schenker. “Our customer measurement tool covers every story category: finance, sports, medicine, etc. We remove poorly read stories on a dime.

“Our business model won’t succeed if we don’t provide customers with an edge: market moving news…news that leads to good trades…news that enables a customer to make money because of us. At bottom, that is what really differentiates Bloomberg News.”

Technorati Tags: GM, The Wall Street Journal, Marty Schenker, Bloomberg, IPREX, independent PR firms, Bloomberg News, Makovsky + Company, business, communications, public relations

GM: The Message for Now

2009-06-04T11:26:00.007-04:00

Shortly after GM’s bankruptcy filing, the company unveiled a new ad campaign on television and the Internet entitled, “Reinvention,” which seeks to explain what the “new” GM will be. A goodly amount of time is spent recounting the company’s past sins (e.g., too many brands, an unsustainable cost structure, etc.). While “confession is good for the soul,” these “sins” have been dissected by the media ad nauseum and, I hazard a guess, virtually any one could recite them by heart. The balance of the ad describes the new GM in rather general terms (e.g., cars with greater fuel efficiency and technology and so on), which, in essence, is what virtually every car company has been talking about.

What does the situation call for? Certainly not ads featuring “feel good” images of the moon landing and sports scenes – these serve as diversions. The situation calls for “plain speak.” GM would have been better served if its ads featured CEO Fritz Henderson discussing his plans for fixing the company, using him much the same way as Chrysler used its iconic CEO Lee Iacocca at a time when that company was staving off bankruptcy through government guarantees of its loans nearly 30 years ago. Those ads featured Iacocca intoning the line: "If you can find a better car, buy it."

Thanks to the media’s reporting of GM’s calamities over the past several months, we don’t really need history lessons. Instead, the American public and, certainly the car-buying public (not to mention the taxpayers whose money is invested in GM), need to know the specifics of its turnaround plan, milestones by which to gauge its progress and, of course, that the company will stand behind its brands by honoring warranties.

Technorati Tags: GM, bankruptcy filing, financial, Reinvention, fuel efficiency, technology, Fritz Henderson, Chrysler, taxpayer, Lee Iacocca, turnaround plan, brand, business, communications, public relations

The Latest Online Explosion

2009-05-31T18:18:00.006-04:00

B2C buyers have been flocking online forever. But the same has not been true of B2B buyers. In fact, conversations I have had with our B2B clients indicate there remain lingering doubts about whether their customers are online at all in any real numbers. So B2B companies should be made aware of the following statistics.

• More than 89% of B2B buyers go online for information before making purchase decisions, according to a recent study by Enquiro Research. In fact, online research is even more important than word-of-mouth and trade publications.
• According to the engineering search engine GlobalSpec, 91% of engineers reported using the Internet to find components and suppliers.
• And 98% of all B2B buyers conduct a web search sometime within the research process, says eMarketer.

This tells us that all B2B public relations clients need to be advised that there will be negative market impact if they do not integrate the online market into their strategic plans.

Technorati Tags: Makovsky + Company, B2C, B2B, Enquiro Research, GlobalSpec, online market, public relations agency, career, business, communications, public relations

Are You Making It in PR?

2009-05-28T16:45:00.002-04:00

I call these “The Basic Four.” You’re unlikely to get to the top if you can’t master these career building tips:

1. Be a good manager. If you were to survey every head of a public relations agency — worldwide — I’d bet you’d get almost 100% agreement that people who are gifted managers and great at follow-through are few and far between. Add strong creative skills to the mix, and you’ve got yourself a career with limitless potential.

2. Acquire the right skill sets … especially, general media relations, working the social media, writing, research, organizing events, persuasion, presentation ability and creative idea development.

3. Cultivate strong strategic abilities. Strong strategists advance faster. To learn strategy, besides on the job, take a look at the case studies of industry awards competitions, like the Silver Anvils, available through PRSA; and take advantage of the resources provided by all the other professional organizations, like the National Investor Relations Institute and the Institute for Public Relations.

4. Build up your leadership skills. Leadership is not dictating to others. Leadership is all about role-modeling the highest standards of knowledge and service, excellence and integrity, and influencing others to follow you.

You have to have a vision and you have to be good at communicating it to others. Then you need to turn that vision into action. That requires the ability to collaborate with and motivate the other members of your team. (As a matter of fact, the corporate values espoused by our firm — initiation, innovation, communication, collaboration, motivation and education — have all been shaped to promote leadership.)

Underlying it all is a passion for what you do! Without that, all the above will only get you so far.

Technorati Tags: Makovsky + Company, leadership skills, corporate values, Institute for Public Relations, National Investor Relations Institute, PRSA, Silver Anvils, awards, media relations, public relations agency, career, business, communications, public relations

What We Look for When Hiring Entry-Level Employees

2009-05-26T10:13:00.004-04:00

Despite the tough job market, we are still interviewing entry level candidates, preparing for the time when this economic downturn is over.

We’re interested in job candidates who have a classic liberal arts education, who have demonstrated intellectual achievement in a wide variety of disciplines, such as English, science, math, history, political science and business. In my opinion, wide-ranging intellectual curiosity, a diversified skill set and the ability to learn quickly are prerequisites for a career in public relations. Nevertheless, we also consider those with strong communications backgrounds because they bring an understanding of our business that others don’t have.

Of course, specialists are always welcome at Makovsky + Company (after all, our tagline is the “Power of Specialized Thinking”). And, unlike many generalist agencies, we believe that specialization is the best way to build reputation, sales and fair valuation for our clients. But the fact is, most people just starting out in our business tend to be generalists, and we believe in hiring the best of them and training them for our specialties. There is no doubt you have an advantage at Makovsky if you are a finance or biology major.

Last month, I was one of the panelists for PRSA’s April 9 webinar: “Accelerate Your Career in Public Relations,” I shared some of the other qualities that we want in our candidates: a strong work ethic and a sense of humor, a demonstrated ability to lead and good presentation skills. We’re looking for people who are open to new thinking and new experiences … who are willing to try new things. Narrow-minded people need not apply.

Of course, the ability to handle stress well is absolutely essential, because in our business, every day is filled with highs and lows that are often unexpected and largely outside our control.

Finally, other than strong academic performance, those who hold key student leadership positions are attractive. College student leadership activities are often a laboratory for learning strategy and networking, strengthening interpersonal skills, and getting a taste of sales and management. These positions also build confidence. My own experience as a student leader added greatly to my development in business.

Technorati Tags: Makovsky + Company, job market, entry level,career, specialists , Power of Specialized Thinking, public relations, communications, business,

PR’s Next Big Opportunity

2009-05-21T15:58:00.002-04:00

PR’s next big opportunity channel for reaching consumers? The mobile device-personal computer.

According to a February 2008 survey by KPMG, the audit, tax and advisory firm, 87 percent of advertising and media executives say media companies will move more content for mobile consumption in the next two years. Sixty-five percent say that media companies currently adapt less than a quarter of their content for mobile consumption.

The rise of the mobile device/personal computer, 40 percent of the respondents say, is the second most disruptive force in media today, only to be exceeded by the pullback of ad dollars.

Note this: 61 percent of respondents say that fewer than 30 percent of ad agencies have a plan in place to leverage social media for their clients. This is a huge gap that we, as public relations professionals with our dialoguing skills are uniquely well qualified to bridge!

Technorati Tags: Makovsky + Company, KPMG,mobile device, media companies, opportunity, advertising , communications,public relations

“Big Apple” Networking

2009-05-18T15:46:00.006-04:00

It’s sometimes easy to forget that not all social networking takes place online.

I’m reminded of this because one of the best networking opportunities in our business is happening this Thursday. It’s PRSA-NY’s Big Apple Awards ceremony at the Rainbow Room on May 21, at 6:00 pm. It’s a unique opportunity to see examples of the great work done in our field over the past year, while making connections with the some of the best and the brightest people in our profession.

Whether you’re the CEO of a leading global public relations firm or a sole practitioner, an executive vice president or an account coordinator, networking in the “real world” can deliver a wealth of career benefits. It can help you to:

Raise your business and personal profile.

Develop friends and advisors whose expertise and support you can tap when you need it.

Benchmark your own performance against the best practices of others.

Build rapport with potential new partners, vendors, customers, employers and employees.

Generate new business leads. (When we analyzed the sources of Makovsky’s leads last year, we found that nearly 40% had originated from the contacts our people made while networking).

Twitter, LinkedIn and Facebook are great … but nothing can beat a face-to-face encounter with another live human being. In my book, networking is right up there with intellectual curiosity, honesty, a sense of humor and the ability to sell, manage and think strategically as a “must have,” if you want a career in public relations.

If you’re not already out there and networking, the Big Apple Awards celebration is an opportunity you shouldn’t miss.

Technorati Tags: Makovsky + Company, Big Apple Awards, PRSA-NY, Twitter, LinkedIn, Facebook

The IPREX Treatment

2009-05-15T14:34:00.005-04:00

What is the “IPREX Treatment”? It is what we are giving and getting this week from May 14-16!

Getting? Broadening our perspective. Deepening our thought processes. Gaining new viewpoints from around the world. Adding new depth to what we already know. Meeting new people, many of whom are industry stalwarts. And overall, enhancing our professionalism.

Giving? Makovsky + Company is hosting the international annual meeting of IPREX in New York City, where most of our members — from 25 countries and 37 U.S. cities — will gather to engage in a range of forums exploring our theme, “Multinational Issues in a Multimedia World.” IPREX is the third largest international corporation of independent public relations firms.

Various speakers and seminars will focus on the following issues: the green opportunity for public relations firms, the overall corporate reputation devaluation caused by the economic crisis and how to respond to it, the topics that international and domestic reporters are most concerned about addressing, and dissecting Google to discover new ways it can positively support our practices.

Among our guests will be heads of global communications from leading Fortune 500 companies — including General Electric, Eastman Kodak, Bausch & Lomb, Prudential, Pfizer, MasterCard, Swiss Re, Viacom — an Executive Editor of BusinessWeek, the head of CorpComm at Google and leading Bloomberg reporters. We’ll also be touring Google and Bloomberg.

For 25 years the IPREX Treatment has massaged its members with an intellectual and diagnostic salve designed to bring new depth and expertise, thereby enabling us to apply new thinking and increase our clients’ satisfaction everywhere in the world that we collaborate.

Technorati Tags: Makovsky + Company, IPREX, New York City, international, Multinational, Multimedia,Google,Fortune 500 , General Electric, Eastman Kodak,Bausch & Lomb, Prudential,Pfizer, MasterCard, Swiss Re, BusinessWeek, Bloomberg, communications,public relations

Mother's Day — One Day Late

2009-05-11T16:57:00.002-04:00

Somehow I have managed to write a blog at least weekly for three years and have never written one about my mother. This fact hit me yesterday on Mother's Day, and I felt very guilty, particularly because, unbeknownst to her, she played a critical role in my decision to enter the communications field. Even more importantly, she helped shape the person I am today.

My mother was a great communicator, although she would not have described herself that way. She just came by it naturally. She was sincere, articulate and had enormous candor. Yes, she would scream at me when I did something inappropriate, but she also recognized me for the good things I did and was not sparing in her praise. On the one hand, she was a cheerleader for climbing the mountain and getting to the top, and yet, she had no trouble having the difficult conversation with me when it was necessary, and only today do I understand the discipline it took.

She never wrote journalistically, but reading her letters, written daily when I was away at college, was like donning a robe and lying on a couch and reading a good book. How I looked forward to getting those letters! Many were strategic in nature, advising me why I should take a certain path and noting the tactics to employ to get there. Mom did have a way of repeating herself, and that isn't all bad in management communications. When I moved to New York, the letters continued to come, and some were five or six pages; it seemed it was nothing for her to write for an hour about the family goings-on and her various concerns. Today they would call my mother transparent.

One of the attractions of being in a public relations firm was the diversity of clients and the intellectual challenge in learning all about the clients and their various industries. It was mom who stressed the importance of learning about many things simultaneously and having many irons in the fire. As children, my brothers and I were given every kind of lesson in the book — from acting and ice-skating to athletics, singing and violin. We needed to become cub scouts and boy scouts, go out for the class play and still get top grades in school. It made me a natural for an arts and sciences education, designed to develop intellectual diversity... one of the traits we look for in our recruits. I don't think she realized it, but she was planting the seeds of management and leadership.

Lastly, mother seemed to handle bumpy rides well. She coped, mostly staying calm, although sometimes the anxiety showed. There were ups and downs with me, my brothers and my dad's business. Nevertheless, she was steady.... she was the glue that held it all together. She helped get us through the tough periods ... and in that, taught me a management fundamental: that you can get through almost any challenging period if you hang in there and actively work at solutions. It was not so much what she said but what she did that demonstrated the ideal of persistence. She understood — and demonstrated — that communication often transcends mere words.

Underlying everything was my mother's passion for her children, their well-being and her desire for us to engage in life responsibly and with self-respect. Although she passed away many years ago, she remains one of my most important role-models.

Technorati Tags: Mother's Day, business, communications, public relations

Top 100 Brand Dropouts

2009-05-07T16:25:00.005-04:00

Financial services companies and automakers should be making every effort to implement an intensified PR and branding program to preserve the value of their brands.

The Millward Brown’s BrandZ Most Valuable Global Brands 2009 report noted that the 15 brands that dropped out of the top 100 were all in these two categories. Among the financial names were AXA, AIG, Merrill Lynch and Wachovia.

Yet most other brands in the top 100 sustained their value. Conclusion? An April 27 Ad Age article states an important truth: that with a few exceptions, ”consumers are blaming companies and leaders for current troubles, not brands.” This finding is underscored by the most recent Harris Reputation Quotient (RQ) study which stated that a record number of Americans — 88% —describe the reputation of corporate America as “not good” or “terrible.”

Thus, with the proper public relations and branding programs, financial services and auto products have a better chance of regaining their bond with consumers than the leadership of the companies that are behind these products and services. Major $ await those brands in these two categories that act rapidly.

According to the BrandZ study’s authors, the total value of the top 100 brands — about $2 trillion — “didn't suffer the decline one might expect in a recessionary environment.”(Brand value was determined by a set of calculations that includes a distillation of the earnings represented by that bond with consumers.)

For the record, the #1 brand was Google, followed by 6 other tech and telecommunications brands in the Top 10.

Technorati Tags: Makovsky + Company, Financial services, automakers, branding, The Millward Brown’s BrandZ , AXA,AIG,Merrill Lynch, Bernie Madoff, Harris Reputation Quotient ,Google, public relations

How to Get the Best Out of Social Media

2009-05-04T16:18:00.003-04:00

As business deepens its activity in the social media, the need for guidance on how to expand and where to go and the best strategies to apply increase. Thus, consultants loom more important. But the question is who is the right consultant and what qualifications do they need to have to give business the best advice.

Here are some options: Digital shops, advertising agencies or public relations firms? Which can serve clients best? The answer should revolve around the dynamics of the social media environment, and which of the aforementioned options provides the best fit to meet the needs at hand.

The technical knowledge of the digital counselors is important. But is it the centerpiece? The promotional language of advertising may be appropriate for ads but not for Wikis, blogs, Facebook, message boards, etc.

Fundamentally, what makes the social media – the social media? Dialogue. Dialogue is the foundation of social media and the very foundation of public relations itself. Public relations is about building relationships with constituencies that are critical to the survival of any corporate or organizational entity. Through public relations companies reach out and converse. The challenge is bringing value to these multiple conversations that are held between and among constituencies that corporations wish to reach. That is what public relations is all about: the integration of a client’s value message into a dialogue with its targets.

Technorati Tags: Makovsky + Company, social media, Facebook, Wiki, transparency, blogs, message boards, dialogue,

Barbara Walters: Tips on Interviewing…And More

2009-04-30T15:35:00.002-04:00

A few weeks ago Barbara Walters discussed “The Interview” as a panelist at The Newhouse School of Public Communications (Syracuse University) breakfast. Makovsky + Company is one of several sponsors of that program. I note some of her rules and observations:

Knowledge – “Know the interviewee better than they know themselves – and know where you are going with him or her in the interview.”

Preparation – “Before the interview – do your homework and do not depend on questions others may write.”

Loyalty – “Your loyalty is to the audience – don’t promise them something you can’t deliver.”

Keeping Promises with PR Pros – “Some public relations people say you can’t talk about this or that with the interviewee. If you violate that promise, the pubic relations professional won’t work with you again.”

The Worst Interview – “The worst interview I ever did was with Warren Beatty. I asked him ‘how are you?’ There was interminable dead silence. Finally he said, ‘fine.’”

The Best Interview – “My best interview was Katherine Hepburn. I said you are a legend. And she said, “No. I am an old tree – an oak tree – not a weeping willow’.”

Celebrities I Wanted But Didn’t Get – “Anyone I wanted to interview and didn’t?

Jackie Kennedy Onassis

The Pope

Bernie Madoff

The Madoff Question – “What would I have asked Bernie Madoff? ‘How could you do this to your friends’ ”

Editing Interviews – “How you edit an interview is very important. I always sit in on editing sessions. I am a very good editor and it is hard work. You can criticize me on my interviewing style, but this I am good at.”

Interviewing Obama – “What is charming about Obama – is when he was with his wife, he leaned over, as he wiped his teeth with his index finger, showing her she had lipstick on her teeth. His PR people did not edit it out.”

Technorati Tags: Makovsky + Company, Barbara Walters, The Newhouse School of Public Communications, Warren Beatty, Katherine Hepburn, Jackie Kennedy Onassis, Bernie Madoff, The Pope, Barack Obama

Out of the Shadows

2009-04-27T14:58:00.004-04:00

Ben Bernanke, Chairman of the Federal Reserve System, is speaking out and it is making news!

Bernanke is only fulfilling Obama’s promise about transparency — talking to the American public about the financial crisis, as indeed he should be doing.

But, according to an article last week by Jon Hilsenrath, chief economic correspondent for The Wall Street Journal, Bernanke entered the office wanting to make the central bank less personality-driven than it was under his predecessors, Alan Greenspan and Paul Volcker. His decision to step forward was only due to the current economic quagmire and the need to establish a dialogue with the American people.

According to Hilsenrath, Greenspan during his tenure as Chairman of the Fed gave only one on-the-record TV interview, almost never took questions after speeches and “delighted in his ability to obfuscate.” Bernanke, on the other hand, “is taking his campaign for openness in directions he hadn't anticipated.”

The reality is that, recession or not, the president of the Federal Reserve ought to be addressing the American public on a regular basis (e.g., monthly or bi-monthly). The visibility factor should not be an option, but a requirement.

The only caveat — since statements by the Federal Reserve chairman have stock market impact — is sensitivity to current developments (e.g., quarterly reports or a looming crisis). Ideally, the timing of his remarks should be as market-neutral as possible (although that may not always be possible). On the heels of the economic travails of the past year, communications has hopefully risen in stature at The Federal Reserve so that it will become a permanent policy pillar.

Technorati Tags: Makovsky + Company, Ben Bernanke, Federal Reserve System, Obama, transparency, financial crisis, Jon Hilsenrath, The Wall Street Journal,Alan Greenspan,Paul Volcker,recession,American public, business, communications, public relations

It’s Not Only Communications!

2009-04-23T15:38:00.003-04:00

At most firms, “silo thinking” compromises the way they address sustainability.

For example, management may commission a state-of-the-art green building from their facilities department, but then neglect to orchestrate complementary changes in the departments responsible for vendor practices, product sourcing and packaging, site location and corporate communications. Typically, the result is that the anticipated payback in terms of environmental impact, return on investment and risk management falls short of goal.

So what did we do? We formed a sustainability consortium which, through its collective 360° expertise, will offer a unique, cross-functional perspective that is necessary to help corporations manage risks and leverage business opportunities across the board. Called Interraction, the new consortium provides businesses with both advisory services as well as execution of its recommendations.

Of course, that includes communications. In fact, Interraction links communications with leading global business advisors in science, law, engineering, architecture and management consulting to provide organization-wide solutions to climate change/sustainability issues using a diagnostic tool called the Sustainability Scorecard as the starting point to assess and manage climate change risk.

The Scorecard functions like a full body scan in a medical check-up. It provides a snapshot of the notable risks throughout an organization, pinpointing specifically the impact climate change can have on a firm’s growth and reputation. The findings are summarized in an easy-to-understand risk index. The consortium then collaborates with a client’s leadership to review the findings, identify areas of concern, and discuss options for managing the risks uncovered.

In addition to Makovsky, Interraction’s member firms include the following leaders in the environment and sustainability:
• Arnold & Porter: A preeminent global law firm with special expertise in environmental issues
• Buro Happold: A premier international design and engineering firm
• carbonRational: A management consulting firm with special expertise in building sustainable enterprises
• FXFOWLE: Leading international architects
• Svante Scientific: A leading provider of business-friendly climate data

Technorati Tags: Makovsky + Company, silo thinking, sustainability, green building, risk management , environmental, consortium , Arnold & Porter,Buro Happold,carbonRational,FXFOWLE,Svante Scientific, business, communications, public relations

Contagious?

2009-04-21T09:20:00.002-04:00

General Motors and Chrysler are travelling down a path that seems to be leading them to Chapter 11 bankruptcy…and there is considerable support for that strategy from those who believe the company has been out of touch with the products the marketplace has needed and wanted for years. Thus, they say, the company deserves to “go under.” That position is further supported by “free market” advocates who believe “free market” outcomes should happen naturally, and the bailouts are an attempt to keep a dead man alive.

But note the “American Thrift” survey in the April 27th issue of TIME Magazine (click the “Shopping” button). If allowed to go bankrupt, 29% of Americans, nearly a third, will not buy a car from a U.S. automaker that declared bankruptcy, even if the government guarantees the warranty.

That means that a massive public relations campaign will be required to restore confidence in the company and their products, and most likely, it will take years to accomplish. The entire supply chain will be at risk. In fact, the fear might be contagious, and the 29% figure will no doubt increase as people who are current car owners of these bankrupt operations begin to worry about getting access to parts and start questioning the integrity of all American automakers. Despite the inherent risks of all business, many may believe that a sacred trust has been broken should these bankruptcies happen. The ensuing public relations campaign most likely will require a broader range than anyone would fathom except those who have really thought this thing through.

Technorati Tags: Makovsky + Company, Bankruptcy, free market, bailouts, TIME Magazine, General Motors, Chrysler, American automakers,Chapter 11, business, communications, public relations

DOMINO’S DIDN’T HAVE TO FALL

2009-04-16T15:14:00.005-04:00

Domino’s Pizza, one of the nation’s largest pizza chains, was victimized by a prank pulled by two employees of a franchise who tainted sandwiches (I’ll spare you the details). These two geniuses thought it would be hilarious to film their acts and put the video on YouTube. In short order, the video was viewed more than a million times and discussions were spread throughout via Twitter.

An email to bloggers from Domino’s spokesman, Tim McIntyre, was quite telling. He wrote, “We got blindsided by two idiots with a video camera and an awful idea.” This comment suggests that Domino’s hadn’t been fully prepared for the emergence of such a crisis. (Note to CEOs: Do you have a crisis plan? If so, check your crisis plans and update them to include attacks via social media, if necessary.)

How did Domino’s handle the situation? From where I sit, badly. Mr. McIntyre said that Domino’s executives decided not to respond aggressively, hoping that the controversy would quiet down. While the company had been made aware of the videos by Monday evening via a blogger, it took them until Wednesday to get a Twitter account as well as a YouTube video of the CEO in place to respond to consumer concerns.

What should Domino’s have done?

First, the CEO should have been front and center addressing the issue within minutes of learning all of the details and formulating a response designed to allay customer concerns, regain their trust and defend the brand. All media – social as well as traditional channels – should have been aggressively employed.

Second, the company might have benefited from calling in independent authorities (e.g., health testing services or government health officials) to inspect and vouch for the efficacy and safety of Domino’s kitchen practices in every single location.

Third, Domino’s might have called in a former cabinet official (preferably one linked to health matters) or a noted domestic doyenne like Martha Stewart to spot check Domino’s kitchens at various locations. Their findings could be released quickly and through a host of media channels.

Finally, the company could have scheduled and publicized training and/or retraining sessions for all employees, to demonstrate the company’s commitment to and concern for the wellbeing of its customers.

Social media has changed the way we learn about and respond to crises. While news of a crisis can spread quickly, relevant companies can use these approaches to quickly respond and prevent further damage to their corporate reputations. There is no need for any business to be “blindsided” – particularly a household name like Domino’s – when in this age of transparency, it should have been “prepared.”

Technorati Tags: Makovsky + Company, Domino’s Pizza, franchise, Twitter, YouTube, Tim McIntyre, crisis, crisis plan, social media, blogger, government health officials, corporate reputations, business, communications, public relations

IS BANKRUPTCY NECESSARILY THE END?

2009-04-13T16:06:00.005-04:00

Bankruptcy filings are up more than 9% through the first three months of this year for a total of more than 323,000 petitions, according to Automated Access to Court Electronic Records (AACER), a leading provider of United States bankruptcy data. Of that total, more than 20,000 were commercial or business filings, brought about mainly by increasing job losses and the tight credit markets.

Aside from the discussions about General Motors and Chrysler possibly going bankrupt, there have been a number of fairly high profile bankruptcy cases, including some of the nation’s most prominent newspapers (e.g., The Chicago Tribune) , as well as such erstwhile retail stalwarts as Circuit City and Fortunoff, which was founded in 1922.

There are two types of bankruptcies: Chapter 7 and Chapter 11. Chapter 7 literally means the end – the companies are liquidating, as in the case of the two retailers mentioned above. Chapter 11 doesn’t necessarily mean the end.

To survive Chapter 11 bankruptcy, a company should have a valuable asset base, something that can be reorganized into a viable entity. Communications plays an important part in any reorganization, particularly when you stop to consider the number of constituencies that need to be addressed; the list includes creditors, suppliers, employees, customers, shareholders and so on. The reason: a Chapter 11 bankrupt company will need continued support as it undergoes the reorganization process and approvals of the plan from secured lenders. First, it must overcome the bankruptcy stigma – sales and image are usually badly affected. Customers need to keep buying – and sometimes customers mistakenly believe the doors are closed. Thus, a powerful customer-focused public relations program needs to be designed to rebuild the business. But there are public relations opportunities with the other constituencies as well.

Technorati Tags: Makovsky + Company, Bankruptcy, AACER, job losses, credit market, General Motors, Chrysler, The Chicago Tribune, Circuit City, Fortunoff, Chapter 7 , Chapter 11, business, communications, public relations