Economic Crisis, Good Communications
March 31, 2009
The Economic crisis and the collapse of financial companies has and will continue to supply the news media with an ample supply of material for reporting.
Yet most of the institutions at the epicentre of the crisis remain silent.
Perhaps Ben W. Heineman Jr., GE’s former senior vice-president for law and public affairs, says it best –
Where are the chief executive officers, top management and corporate directors of the world’s financial institutions? Their failures, that familiar litany of excess leverage, indecipherable financial instruments, poor risk management and woeful
compensation systems, are the main catalyst for these unprecedented problems. There has been a stunning silence on private-sector causes and private-sector cures from the private sector itself. This is unconscionable, because their lapses raise
profound political and economic questions about the balance between government regulation and corporate self-determination.
Ouch!, yet deserving. Where indeed are these “captains of industry”, who were so visible during the good times? Rather then focusing on the communications gaffes, let us take a look at those companies that stepped up to the communications task.
DanskeBANK is one of the standouts. They have a section on their website that does an admirable job of explaining the crisis and how it affects the Bank and its customers –
This section called “The Crisis” is an informative and insightful resource. This is a model for other companies.
Another company doing the right things for communications to stakeholders is Northwestern Mutual–
Noteworthy items include a low-key approach (a welcome alternative to hype) and a notice that the CEO received a Ethics award. The company also uses a time tested tool to build trust: testimonials. These are real stories that anyone can relate to. The fact that people are willing to use their names is telling. Northwestern is another good example of communications during the current crisis.
Finally, there is a good read “Corporate Communications in Financial Crisis: The New Paradigm“.
Some key points include —
Be for Something. With public trust in Corporate America and Wall Street at an all-time low, no amount of explanation or finger-pointing will salve the wound. Instead, the business community needs a leader, or leaders, to show everyone the way out. There is a hunger for this kind of forward-looking leadership – and the longer the marketplace goes without it, the harder it will be to convince stakeholders that it’s even possible.
Limit the excesses. The first companies to effectively define themselves as “anti-perk” institutions are the ones that will assume the leadership position articulated above. Consider the example of John Reed, who took the helm of a struggling New York Stock Exchange for an annual salary of one dollar in 2003. That’s the kind of decisive action needed now because it communicates a commitment to the new way forward in deed, rather than word. With the Dodd Amendment already limiting compensation at banks that accept TARP funds, companies are wise to identify ways to adjust their compensation structure, award non-cash bonuses (e.g. restricted stock), and cut back on the frills that have already landed companies in hot water.
If under investigation, cooperate, cooperate, cooperate. New SEC Chairwoman Mary L. Schapiro has already moved to do away with an existing rule that requires enforcement division lawyers to seek the approval of Commissioners before negotiating penalties. To be sure, the SEC is on the lookout for villains to use to burnish its watchdog credentials. If your company lands in the spotlight, now is not the time to either fight nor hide. Today, companies can assume one of two roles – poster child of reform, or poster child for reform. Cooperation that goes above and beyond mere compliance is the best way to ensure that your company never gets cast in the wrong role.
Deliver bad financial news early and all at once. Such an approach may seem counter-intuitive – and frightening – but it is a critical strategic approach that subsequently defines how a negative story is felt and seen by your most important constituencies. Do not let the drip-drip-drip of rumor and/or real negative news play out publicly in the marketplace. Today, assumptions are almost always worse than the truth.
As always, but especially in tough times, leaders need to get out of their offices and do what they are paid to do — LEAD with Integrity.
Hallmark Touts a Recession Thoughtful Cards Campaign
March 31, 2009
Amidst a time of uncertainties, a shaky and unstable economy, many businesses are either failing under the pressure or rolling with the times. Hallmark cards has chosen the latter as they continue to thrive with the budget-friendly line of .99 cents cards that they introduced in the late 1990s. They were able to spot a trend developing, assess its direction and take their product line towards the way the future was heading.
Often in times of economic hardship, the last thing that consumers think about are the ‘extras’ in life. Things like eating out, shopping jaunts and electronic toys/gadgets become more of a distant luxury than an everyday purchase. Times are tough. Belt buckles are tightening and there are a lot of ‘no’s’. People are having to make some hard changes in their budget and lifestyle, and life’s little luxuries are no exception.
Even though consumers are making often drastic changes, does not mean that they are willing to sacrifice quality for cost. They don’t want to necessarily go cheap, but just want to be frugal, to think smarter about their purchases. Don’t we all? I know I for one have decided to make my money work smarter for me rather than sacrificing what I want just to say that I’ve got it. No, I don’t want to confuse “anything” for “something.” I still want quality at an affordable price and I try to find it in all areas of my spending. Of course, I’m not the only consumer doing that and Hallmark recognizes that consumer trait and expounds on it.
Hallmark has (in my opinion) a very smart marketing and trend development unit of their corporate company because they have been able to stay on target and find just what it is that customers want and will go for. Someone there did their homework and has been able to determine the buying habits of consumers, developing their product line around it touting money saving benefits as their slant.
Each time that Hallmark has introduced a new line of greeting cards has not been all wonderful. Like any other business, they have made mistakes, some huge, some not so smart. They have introduced products that weren’t quite so welcomed (their divorce greeting cards failed), and have at times missed what was hot and what was not. But all in all, they seem to be on point with the bulk of their offerings.
The company’s campaign to (re)ignite the .99 card line is unveiling with a television spot and online digital offerings targeted at savvy consumers who are “looking to send the very best” but want to be frugal at the same time. I think it will be an instant hit, as their money-wise campaigns have been before.
Would Your Employees Wear Mardi Gras Costumes for You?
March 30, 2009
I often write about how important employees are as the ultimate brand advocates and ambassadors next to consumers. If your employees are treated well and truly believe in your company and your brand, then they’ll talk about it, and they’ll influence others. In the end, your sales will rise. But would your employees where Mardi Gras costumes, complete with beads, masks and more, for you?
That’s what Harrah’s asked 2,000 employees to do at the company’s Showboat casino in Atlantic City, New Jersey as part of its new, corporate-wide ”Everybody Plays a Part” program. The goal of the initiative is to make the consumer experience at Harrah’s casinos more social, and each Harrah’s property can implement the program as they choose — such as Showboat’s Mardi Gras festivities.
My question is this — would your employees willingly participate in similar activities? Or are they annoyed when they have to leave their desks for the obligatory company events? Would they wear Mardi Gras costumes for you? Read more
On the Hunt for Passive Candidates
March 30, 2009
The idea that high-value talent is concentrated among people not looking for jobs has become widely accepted in the recruiting community. And the potential to locate these “passive candidates” is probably the top reason cited for using LinkedIn as a recruiting tool.
So—how true are these propositions? And how does the hunt for PCs relate to the Careers website?
On the first proposition . . . just don’t miss Ronald Katz’s article “What’s So Great About Passive Candidates?” and the brisk discussion that follows it. Some highlights:
- There is no bright line between the active and passive states.
- Needing a job doesn’t automatically mean there’s something wrong with the candidate—especially in the present economy.
- Finding and hiring passive candidates usually costs more. Worth it?
- The mere fact of current employment isn’t necessarily a good predictor of potential value.
On the second proposition . . . it’s worthwhile to take a second look. Certainly there has been a swarming effect around LinkedIn for recruitment, and definitely it’s related to the passive-candidate hunt. But as LinkedIn increasingly becomes a database for recruiters, there’s no reason to assume that most (or any) people with LinkedIn profiles are “passive.”
And now that LinkedIn is a happy hunting ground, there are hunters aplenty. Although LinkedIn was a secret weapon when Lou Adler offered 10 Great Tips for Using LinkedIn to Find the Best Passive Candidates on the Planet in January of 2008, those were the good old days. By February of 2009, LinkedIn was releasing Talent Advantage, an extensive suite of search-and-woo tools for recruiters and companies.
That said, there’s still some room left for getting creative with LinkedIn—and you can even do it on a budget with PeopleToucher, a clever LI search application. One thought: There are still some really passive candidates on LinkedIn, in the form of entrepreneurs and self-employed folk who in fact are using LI for other purposes than luring recruiters. In the rapidly changing talent landscape, these hold-outs may offer a new source of energy and ideas for companies that aren’t getting everything they need from conventional hires.
So what’s the connection between passive candidates and the Careers website? Arguably, these are the visitors who may demand the most from your site. Active candidates might love your site if it lists any jobs they can apply for, and ignore everything else while filling out forms and uploading resumes. If there are no applicable job listings, they may leave in a hurry (unless the site provides other rewards, and/or encouragements to stay connected).
But a passive candidate contacted by a recruiter may very well go straight to the company site for a look around. And what they find there could have a considerable influence on whether they decide to pursue the opportunity.
Cause Marketing or Opportunity Marketing for Kentucky Fried Chicken?
March 29, 2009
There are so many clever and creative ways to utilize your media sources for your corporate marketing campaign that you could essentially never run out of ideas to use. Effective use of your media strategy involves doing things that are unconventional, creative and attention-getting. With so much competition both online and offline for consumer marketing dollars, it’s often a gray place trying to decipher what’s marketing and what’s not. What can sometimes be quite interesting are the things that corporations will do to bring exposure for themselves. I found one.
While I certainly do believe in strategic marketing and in-your-face type of placement marketing, I have to wonder though just what type of marketing this is that Kentucky Fried Chicken (KFC) has decided to do lately.
The chicken chain has created a type of good-will marketing in the town of Louisville, KY by repairing the city’s potholes. It seems that this was a big problem for the residents of the city, with the potholes causing damages to their vehicles. Not to mention that the potholes were also an absolute eyesore on top of the hazards that it was causing for the citizens. This was a problem that needed addressing and needed to be fixed right away. KFC to the rescue. But whom are they rescuing? (Full Press Release)
Now what KFC did to help the city in this situation is impressive. Very impressive. The chain fixed the town’s potholes and made the streets smoother and drivable again. They donated their time, their resources and their LOGO to the effort, so that means every time someone passes by one of the repaired potholes, they will have KFC to thank for it. And, they won’t have to wonder who to thank because KFC’s logo will be looking back up at them as a reminder that they are responsible.
There is cause marketing, and then there’s good will marketing. This of course would seem plausible that it would fall under good will marketing because it does in fact impose a feeling of “good will.” But to whose good will is it beneficial?
I personally am more inclined to be impressed and throw my dollars to the subtle and genuine but clever corporate marketing campaign that catches my eye. In other words, don’t try too hard. It doesn’t look so good when things are too “in your face” and you can’t get away from it. Because, I would worry that what if the KFC campaign/good will marketing was such an impressive hit that more corporations wanted to do it to. Then, would streets be inundated with signs, logos and pothole cover with corporate names on them? Will we be able to drive down the street and not see an advertisement plastered across every flat surface? Where is the line drawn or am I over-exaggerating? Is this really not that big of a deal?
Do you think companies corporate franchises like KFC present themselves unselfishly by making such types of donations? Or does it look disingenuous and as a type of “marketing tactic?”
http://adage.com/article?article_id=135534
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