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January 27, 2006

The Me2 Revolution

I wrote the following essay for the annual Edelman Trust Barometer brochure, which will be published as an insert in PRWeek on February 13th:


The traditional approach to corporate communications envisages a controlled process of scripted messages delivered by the chief executive, first to investors, then to other opinion-formers, and only later to the mass audiences of employees and consumers. In the past five years, this pyramid-of influence model has been gradually supplanted by a peer-to-peer, horizontal discussion among multiple stakeholders. The employee is the new credible source for information about a company, giving insight from the front lines. The consumer has become a co-creator, demanding transparency on decisions from sourcing to new-product positioning.


Smart companies must reinvent their communications thinking, moving away from a sole reliance on top-down messages delivered through mass advertising. This is the Me2 Revolution. What is now required is a combination of outreach to traditional elites, including investors, regulators, and academics, plus the new elites, such as involved consumers, empowered employees, and non-governmental organizations.

The most profound finding of the 2006 Edelman Trust Barometer is that in six of the 11 countries surveyed, the "person like yourself or your peer" is seen as the most credible spokesperson about a company and among the top three spokespeople in every country surveyed. This has advanced steadily over the past three years.

In the US, for example, the "person like yourself or your peer" was only trusted by 22% of respondents as recently as 2003, while in this year's study, 68% of respondents said they trusted a peer. Contrast that to the CEO, who ranks in the bottom half of credible sources in all countries, at 28% trust in the US, near the level of lawyers and legislators. In China, the "person like yourself or your peer" is trusted by 54% of respondents, compared to the next highest spokesperson, a doctor, at 43%.

Meanwhile, "friends and family" and "colleagues" rank as two of the three most credible sources for information about a company, just behind articles in business magazines. Again, in the US, the "colleagues" number has jumped from 38% in 2003 to 56% in 2006. We facilitated the revolt by employees of Morgan Stanley against top management, soliciting opinions through their futureofms.com website, which then led to stories in traditional media.

Why the change, with increased reliance on those you know? The Edelman Trust Barometer shows clearly the deep trust void facing traditional institutions including business, government, and the media.

Government scandals in the past year alone include the termination of Antonio Fazio, the Governor of the Bank of Italy, for passing confidential information on a merger, the Gomery Commission finding of illicit payments to ad agencies in Quebec, and the failure of the US government to respond adequately to the devastation caused by Hurricane Katrina.

Business has also had several major issues, including the termination for cause of long-time AIG CEO Maurice Greenberg for alleged self-dealing, the conviction of Tyco CEO Dennis Kozlowski for cheating shareholders, and the spectacular collapse of Refco only four months after its IPO worth $2 billion.

Beyond the lack of confidence in the traditional sources of information lies a more fundamental change, a yearning to move beyond the simple act of consumption of information to social networking. The rise of MySpace, Facebook, and Wikipedia is premised on sharing of content with a group of likeminded individuals. It is the wisdom of the crowd, with constant updating of content based on personal experience. Media companies like the BBC have already harnessed this powerful force - most notably during the horrific London bombings of July 7,2005 - to bring stories from citizen journalists on the scene to its BBC.com.

There is sharing of content because now we can do it easily, quickly, and colorfully.The Pew Center for Media noted that 60% of US teens have created and shared content on the Internet.

How can companies embrace this future of empowered stakeholders? Speak from the inside out, telling your employees and customers what is happening so they can spread the word for you. Be transparent, revealing what you know when you know it while committing to updating as you learn more. Be willing to yield control of the message in favor of a rich dialogue, in which you learn by listening. Recognize the importance of repetition of the story in multiple venues, because nobody believes something he or she hears or sees for the first time. Embrace new technologies, from employee blogs to podcasts, because audiences are becoming ever more segmented. Co-create a brand by taking on an issue that makes sense for your business, such as GE's Ecomagination campaign where green is truly green.

In 1850, author Ralph Waldo Emerson commented on the rising importance of newspapers to the young American republic. He said, "Look at the morning trains (with their commuters)...into every car the newsboy unfolds his magic sheets, two pence a head his brand of knowledge costs."

We are now at the point of reinventing the experience of communications, the essence of the Me2 Revolution.

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Posted by Edelman at January 27, 2006 9:54 AM

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Comments

Excellent points Mr. Edelman.

One thought to add to the mix: as "who you know, who you trust" online becomes a bigger component of non-early adopters' lives, what should we - both the technical and pr early adopters do to make more trust possible?

I'm speaking from the perspective of a micro-ISV (a self funded software startup), but what would you urge developers do?

Posted by: Bob Walsh at January 27, 2006 8:48 PM


Richard, Interesting findings. I wonder where PR professionals sit in this "trust" barometer. They are neither peers, or family, or friends. Yet they seek to recommend and influence media coverage, and viral messaging, etc.

There are too many PR people who know little to nothing about the companies they represent or their products. From my experience in covering the tech industry at the Financial Times, and elsewhere, some PR professionals don't even know if their client is a software or a hardware company.

Yet these are the people that say they can influence favorable coverage of their clients in the client's industry, and in the broader media.

I would say this study is a big wake up call. The PR industry had better start reinventing itself right now...and be quick about it, imho.

Posted by: Tom Foremski at January 28, 2006 11:26 PM


Fascinating.

Now we see where value can be created quite clearly. The "person like yourself or your peer" is where value is transferred. Effective Public Relations which influences the culture of "person like yourself or your peer" as part of a conversation taps into these conversations, not to deliver 'messages' but to engage the trusted messengers and their peers.

This means that PR has to work in both directions – from the organisation and into the organisation - as a conduit and driver for perpetual change in the process of levering wealth for both the organisation and the community.

Sometimes this is not easy (in the last year examples are Dell, iPod and the Radio 4 theme tune), but in the end the outcome is healthy for both company and consumer.

This goes further than "How can companies embrace this future of empowered stakeholders? Speak from the inside out, telling your employees and customers what is happening so they can spread the word for you. Be transparent, revealing what you know when you know it while committing to updating as you learn more," because it requires a capability to listen to the response of both internal and external communities.

How do we do this? We have to be better at monitoring and analysing the content of the 'long tail' and we have to be better at responding at the speed of mouse.

Monitoring and evaluation is the easy part, that only requires a capability to adapt technologies and that costs a few thousand dollars. Responding is harder because it means that public relations has to be part of the corporate DNA, and not just answering to the fading authority of the dominant coalition by working with the ever changing and morphing groups within the enterprise.

Are we seeing the role of Public Relations changing into a definition that adapts from Edward B. Tylor's definition of culture and into "that complex whole which creates cultural space for an organisation including knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by man as a member of society to lever values though the creation of effective relationships."

Posted by: David Phillips at January 29, 2006 5:29 AM


We do know quite a few things about trust. For example, we know that trust comes not from blind faith, but from relationships and *repeated* interactions. If I've interacted with you many times I'll come to trust you when there's an issue to deal with. (Just like a marriage: if you only talk wehen the kids have been arrested, you'll deal with the issue but you wan't build trust or a relationship.) The implication for PR is that they must help their clients interact with their publics when they don't HAVE to, so they can can draw on that relationship capital when they need to.

We also know that trust isn't readily transferrable, and that we trust people not institutions. (We NEVER trust institutions, and the PR industry that has grown up to try and make this happen is a rip-off.)Exactly as The Cluetrain Manifesto said, the key to all this is to re-humanize by actually getting real people, not their hired representatives, to interact.

So, as has been suggested here, PR must do less trying to represent their clients, and be more like true counselors, trying to help their client executives do better public relations themselves. Any journalist will tell you that they ignore the phone calls of what they see as PR flacks, but will instantly return the calls of a CEO himself or herself. (But what does THAT do to the economics of the PR business if you can't leverage junior people churning out press releases?)

Tom Forenski's point above is absolutely correct. Professionals of all kinds pretend to know more about their clients' industries than they really do, and it hurts them badly. Now there's a PR and trust lesson for you: you can't be trusted if you're actually faking it.

Posted by: David Maister at January 31, 2006 7:25 PM


David
This is why I want PR to have a seat at the table...and why PR people have to Live in Color...to be integral part of their communities within and outside of the company. They need to bring relationships from broad stakeholder world. Your Taylor quote is terrific.

Posted by: Richard Edelman at February 2, 2006 10:27 AM


You are going to gain trust if...
You listen
You make changes suggested by your interested community You acknowledge error You speak through multiple channels You allow dissonance and don't control Forget the message and embrace the conversation

Posted by: Richard Edelman at February 2, 2006 10:27 AM


I think that the PR business has to adapt, from a world of mass production to custom dialogue, from press releases and pitching to listening and counselling. It means more training and fewer but better people, a model more akin to consulting and law firms than the broad pyramid used in the past with worked pushed downward. But be clear that I don't just want experienced people working on my business--I want those who are steeped in their communities, who Live in Color by engaging in arts or NGOs or whatever.

Posted by: Richard Edelman at February 3, 2006 10:05 AM


Mr. Edelman,

I couldn't agree more. As a college student heavily involved with public relations it is reassuring to know that there is a bright, exciting future to the profession. I know my peers and I are ready to jump in. It's about time we started listening, building those relationships and converging. Your blogs make wonderful discussion topics in the classroom.

Posted by: Jennifer Rice at February 6, 2006 10:44 PM


Richard -

I think you're argument is wonderfully eloquent and spot on. There was a study several years ago that pointed to internet audiences gravitating to user created content, at the time they referenced tools such as e-mail and instant messaging. Today, the tools have developed further and include rich media solutions such as audio and video podcasts, blogs, and RSS. With these new techniques, the dialogue has evolved and grown from peer-to-peer sharing of personal content to a much broader and engaged space on virtually any topic that includes corporations, non-profits, stakeholders, and individuals.

Clearly the rules of engagement for the communications community have been redefined.

Jason Cohen
President
CityCast Media, LLC.

Posted by: Jason Cohen at February 16, 2006 9:40 AM


This is truly exciting time for PR business. We have the opportunity to get involved in product creation, in employee activation and in bridging between companies and critics such as NGOs. Thanks for reading my blog.

Posted by: Richard Edelman at February 21, 2006 11:26 AM


This is a untrue time for PR business. Now you have the opportunity to show your moral standards and your communications skills, dealing with the shameful Edelman-WalMart disaster. Thanks for reading my comment.

Posted by: Dr. Dean at October 17, 2006 8:58 AM


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