What a time to be in corporate public relations…can you pick three corporations right now that have been in a boat load of trouble lately? Right alongside these three examples are CEOs at the helm suffering from poor brand image as they take the fall for the team.
>>Avon. CEO Andrea Jung is struggling with recent mismanagement. Stories in the Wall Street Journal and elsewhere suggest her leadership is suspect. Forecasts are way off base, the SEC has launched and investigation, and investors are none too pleased.
(Aside: I used to sell Avon; so did my mom. I was my own best customer. I still love many of its products but the line diversified to include Curves fitness products, attire and a teen line. Way too much; unruly, but who asked me?)
>>Netflix. No surprise, right? This company flip flopped its subscribers about DVDs and pricing while opening new markets in the UK at the same time. Who is tired of reading about Reed Hastings’s PR debacle already? Read the link on this; Gini does a fab job of rehashing the entire mess, so no need to reinvent the wheel here.
>>H-P. I was surprised to learn the company would spin off its PC business unit. Without its flagship product line as a source of revenue, how would it meet expectations on Wall Street? Then, after installing Meg Whitman, former e-Bay executive and California gubernatorial candidate, as CEO, the company flip flopped and decided to keep computers in its product suite. H-P cited expense as a deciding factor.
I am certain you have more examples to share of corporate flip flops that unfolded in the public domain.
Now, let’s segue to the corporate boardroom. For sure there is a chief public relations officer who has a seat at these boardroom tables? I mean, right? One would expect serious PR strategy and input into serious corporate decisions that impact investors, analysts, stakeholders, consumers, the media, and more.
Why then are these corporations being “permitted” to make these customer-facing errors as if they weren’t thought through? Is there no PR counsel at the table or is PR not being invited to lend its expertise? Honestly, watching these gaffes unfold and multiplied hundredfold by word-of-mouth marketing makes me wonder.
The H-P debacle is pretty intense. The company just told the world it really didn’t want to devote innovation to its PCs; rather, it would produce subpar product. That’s my takeaway after a spinoff failed. I already have a negative image of H-P’s computers anyway; having them try to get out of that business doesn’t bode well for future sales.
For any business regardless of size, here is the type of PR counsel I provide (as do my colleagues):
>>We are trained in strategy to assess the effect of corporate decisions on markets and external audiences.
>>We know how to create story angles and to which media to pitch them for best light in sticky situations.
>>We contribute to messages developed with each audience in mind, and we draft appropriate communications targeting each.
>>We anticipate the backlash and negative impact of un-vetted business decisions.
>>We develop ongoing strategy to counter market pulse and rebuild damaged brands.
It strikes me that corporate PR, in two out of three of the above examples, is getting the raw end of the stick. Who’s responsible for allowing these very public gaffes; certainly no reputable PR professional would counsel its C-suite to engage in flip flop at the risk of damaging stock, brand, sales, and future growth.
I don’t know…I’m suspect there is any communication counsel. And, if there is, perhaps the leaders aren’t listening. I can’t imagine you get to the point in your communication career and give such shoddy advice as some of these leaders are receiving. Maybe that’s me being naive and wanting to think the best of our industry, but I find it hard to believe. Their counsel could very well be overrun by legal or some other factor we’re not seeing. If it were me? I’d take a stand like Bradford Williams did at Groupon. You don’t want to listen to me? I quit.
Spot on. (@ericamallison) I hate that we’ve worked hard as a profession to get a seat at the table only to show up like this with these corporations. Perhaps @Shonali can lend some thought coming from corporate. I agree, it’s got to be something, like legal or board over-ride. El stinko. Thanks, Twin. (P.S. Vote #3)
When I was at FH, Bridgestone/Firestone was a client when tires were blowing up all over the place. I’ll never forget the meeting where the client decided they weren’t going to take our counsel. I watched the partner resign the business right then and there. We all know how that company ended up.
Not being familiar with the “normal” relationship between PR and other corporate decision-makers, I cite internal politics and messages sent by folks who forget that Twitter is always watching.
Were it so simple, Shakirah. You may’ve noted in my piece when I said “Chief PR Officer.” The C-Suite rarely includes such a title; does therein lie the problem?
You’re right, I didn’t think of that. Huh, you probably have something there (way more than something, I know–I’d probably need a course in corporate structure to figure it out; I work for a Federal contractor and that has it’s own set of… well, you know).
G’Day Jayme,
Back in 1981, Al Ries and Jack Trout published “Positioning; The Battle for The Mind.” Earlier this year–2011–the readers of “Advertising Age” voted “Positioning” as “The Best Marketing Ever.” Al and Jack published more fine books about marketing.
These days, Al co-authors with his daughter, Laura. A few years back they wrote “The Fall of Advertising and The Rise of PR.” I’m astonished that these books haven’t been read by lots of people who should have read them.
I’m no expert in PR or marketing. But if I’ve learnt anything in 35 years of running a business, it’s this: “Marketing isn’t everything. But everything is marketing.” And you can quote me if you like.
Let’s both have fun!
Regards
Leon
Jayme, I can’t think of any corporate flip-flops, but I can sure think of a long list of corporate messes where PR had to be called in to clean up a brand’s reputation after a melt-down of some sort. Tylenol, the Beef Industry, Nestle, Toyota — just to name a few.
Which do you find more satisfying? Helping a brand avoid a public mess in the first place? Or helping a brand clean up a mess after a fall?