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April 28, 2006
Germany's Future Depends in Part on PR
I have spent the entire week in Germany (with the exception of a day in Amsterdam), spending time at major German companies such as Allianz, Burda Schering, and VW. As always, I come away impressed by the glamour of Munich, the efficiency of Frankfurt, the gritty edgy feeling of Berlin and the lovely orderly life in Bonn. Angela Merkel's election as Prime Minister has given new hope, as her popularity soars above 70% (note that she is in a coalition government because she barely won a majority of votes). The Government has embarked on a feel good PR campaign that coincides with hosting the World Cup, replete with giant exhibits of German innovation such as aspirin (large pill in the center of Berlin). The reality of the country, however, is very much in another place, with government and business moving along divergent paths and with people raising their savings levels because they lack confidence in the government's ability to deliver on promised pensions after retirement.
Here are some important facts:
Given this daunting set of challenges, what is the way forward for the country? And why do I believe that PR is a fundamental part of any effective strategy?
First, change, especially drastic change, only works with a positive vision of the future. Horst Teltschik, former national security advisor, has the right idea and said it eloquently in our meeting on Thursday. "The question for this economy is how to get beyond constant restructuring and cost reduction. We have to grow again as we did in the late 80s. We have to grow by innovation. We have to make our products superior to the competition, to be category leaders, not price competitors." So PR message #1 is for Germany to own innovation.
Second, most of the change messages I have seen from German CEOs are couched in McKinsey language of best-in-class or scale economies or productivity metrics. I will probably have my Harvard Business school diploma declared null and void for this comment. But I have never seen a work force do better simply on the basis of compulsion and fear of job loss. Everyone wants to be on a winning team, with shared values and common purpose. There must be a rational and emotional approach, right and left brain working together. So PR message #2 is we do this together, listening to our work force and inspiring them, opening direct and regular communication with workers, not simply through the union at the negotiating table. I saw a terrific example of this type of thinking at Schering, where there are town hall meetings every week and daily updates on the company web site on progress of the integration with Bayer. Encourage employees to blog, even at times to be critical of the company--the clear show of support for employee voice is critical.
Third, country identity today is tied up with the success of the companies based in that nation (note rise of Korea is partly linked to dramatic rise of Samsung). The Edelman Trust Barometer 2006 found that German companies were the most trusted around the world. Yet there is a strange reticence to impose any central control, leading to a federalized and localized approach. Yet now more than ever, as jobs are being moved from Germany to faster growing markets like China and Eastern Europe, the self confidence of the home market requires recognition of German attributes such as design, innovation and care for the environment. Fear of being "too German" because of historic burdens is no longer the right approach--Brand Germany has to be about the future.
These need to be universal messages from German companies wherever they operate. So PR message #3 is central creative control, with local implementation.
The role of PR is essential in a time of drastic change. Only through a completely transparent approach that shows the path to a better future can Germany achieve its full potential. Let me know what you think.
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Germany, PR, Public Relations
Posted by Edelman at 4:20 PM
Comments
I'm not sure whether Edleman has the German client in China market. As my experience, though the German clients put the China market as a very high position and mark the growing data in the financial report even the annual report, they have very slow counterattack action to the competitors in the market. In PR campaign or strategy, it's the same situation.
Posted by: Sara Zhao at April 30, 2006 2:23 AM
Let me get this straight... Unemployment is at 12% and there's going to be a tax increase?
I've never heard of a country that successfully taxed itself into prosperity. I wish them luck.
Posted by: Phil Gomes at April 30, 2006 1:16 PM
First of all I hope you had a good time.
Then, something is wrong with the mood in Germany and the issues you address do play a role. While I agree that PR needs to play a role in straightening the ship, there are several factors which will hinder a PR-induced push.
1. "We" are still running a "each man for himself" kind of race - a fundamental shift to a joint effort is needed.
2. You will have trouble getting enough companies to change to a transparent communications model because the way most of the operate at the moment, profit is valued higher than the humans producing the profit.-> How do you sell "let's all work together for joint success" when companies are closing factories although they are profitable just because the same factories overseas make more profit?
3. Something is wrong with the media. With the current editing e.g. in the main news programm on TV you will have trouble getting the message into the programm.
The process you'd like to see can only come from within companies or from within communities. My guess is that it will take a long while until "we" get there.
Posted by: Sebastian Keil at May 1, 2006 8:46 AM
Good Afternoon Richard,
I'm a second year student in PR in London, and my opinion is a student's one not a professional one, but according to what I understand of the PR activity, I think that what you said about the PR role in the perception of the positive future of the Germany is not enough.
I was born and lived in France for almost all of my life but my parents come from Cameroon, and I have been particularly concerned with the troubles that French government faces against the CPE (first employment contract) as I found that although it was right, it missed its essential task to communicate with French people, particularly the opinion leader, by explaining why this contract was so important for the future of the France.
I think that like the majority of European Countries, Germany has to face the aggressive competition of countries such as China or, closer, from Eastern Europe countries.
I agree with you when you say that PR is particularly essential in this drastic period to draw a positive picture of our future. It is important to believe in the future. But I think that PRO will miss their objectives as the French government did, if you don't highlight first the economic reality: the truth is that the world is changing. I think that the real transparency is to tell them that being competitive has a price: companies will continue to close their plants to make profit and more and more the labour market will become hard, specially for those people with low academic qualifications or not qualifications at all.
Peugeot closed its plant last week in England, and I think that it will be very hard to explain to all of these former employees that they have to believe in the future, whereas most of them think that they have been betrayed.
Whatever the number of personal blog and internal communication PR people will set, employees won't believe them.
As I said earlier, you're right when you say that PR can help to draw a better image of the future, but I think that this point of view will apply for a particular audience.
To be totally effective, I think that PR should work more closely with the government and the companies to design more tailored messages that address the fear and the angry of thousands unemployed people to show them that everything is done to help them.
Dyane
Posted by: Dyane Ekwe Bell at May 1, 2006 8:56 AM
DE you are right. The best PR is about an honest assessment of the future, so the German people know the true face of global competition. We are going to be key to the success of any strategy because belief comes through understanding and vision. Thanks for writing.
Posted by: Richard Edelman at May 1, 2006 11:18 AM
Sara,
Very insightful comment. In fact German companies look to China for a key aspect of a growth strategy.
Posted by: Richard Edelman at May 1, 2006 11:19 AM
Sebastian
The tough choices in business require moving jobs and making change. But the context must be explained and the employees given a real sense of the future.
Posted by: Richard Edelman at May 1, 2006 11:23 AM
One thing that we really need when it comes to the need for PR is a totally different approach when valuing the potential of public relations. In many German companies today, the battle between PR and marketing is still won by the latter. The mental shift is to use PR to open and develop communities which will then be open to marketing measures. The real challenge for marketers will be the ability to surrender control to the consumer.
Posted by: Magnus Wied at May 2, 2006 5:19 AM
I go beyond even the marketing versus PR argument. I think that the management consultants and investor relations folks also win out over PR. The idea that the less a CEO says the better is their mantra. I totally disagree with it. I use Klaus Kleinfeld at Siemens as a model--he writes a blog each week and 7,000 people in the Siemens global empire are reading it. Thanks for writing. By the way, can you have Heiko contact me please
Posted by: Richard Edelman at May 2, 2006 2:44 PM
Thanks for the reply. Sure, employee communications need to improve, but that alone will not win over Germany. I agree with Magnus that PR is still seen at the "also-ran" in the marketing mix. I see your vision, but unfortunately you can convince only one at a time to understand the changed media landscape we now live in.
Posted by: Sebastian at May 3, 2006 3:42 AM
Hi Richard,
What you seem to be alluding to is that a pivotal role that German companies and their suppliers could play is ensuring their corporate social responsibility (CSR) programs are properly coordianted and aligned to really addressing the interests and concerns of their stakeholders.
I would assume that in an increasingly complex economy with the EU, with deepening economic, social and environmental inequities, stakeholders (including shareholders, analysts, regulators, activists, unions, employees, community organisations, and media) demand companies be accountable not only for their own performance, but that of their entire supply chains.
Perhaps corporate public relations needs to be this glue that helps all sections of a company comunicate their goals and achievements and ensures that all stakeholders can engage and participate with them to create the trust needed in that society. As you say, they've got some great innovation, heritage and business system prowess upon which to build.
Posted by: Tristan at May 3, 2006 10:32 PM
This is an interesting post to say the least. I think the same conditions that exist in Germany are present in the US. American companies need a "Brand America" campaign. Unfortunately with globalization, its forces are prompting every company around the world to compete on price as consumers tend to see more and more products as commodities. Consumers want "more" but they want lower prices in order to consume even more. Innovation may not always yield lower prices initially, the easy way out has been to search for cheaper labor pools thus displacing potential loyal citizens/consumers of the brand. The caveat is that mass media influence i.e. PR will be invaluable in this global one world westernized economic system. At some point this business cycle is going to repeat itself similar to the Age of Mercantilism where governments partnered with business brands and went global to ascertain wealth and build loyalty and national pride back home. At some point I could see in Germany the government capitalizing on innovation by doing Ads that feature Mercedes, BMW and Audi/VW collectively promoting innovation "Buy Germany's best". In any event Pr/Marketing will continue to increase in importance as companies and countries try to inspire and maintain relevance.
Posted by: Djuan at May 4, 2006 8:32 AM
First of all: your 3 PR messages would be the right choice. But Sebastian Keil's opinion regarding a transparent communications model is right, I'm afraid. I've managed a workshop for IQPC about weblogs and issues management in Frankfurt last December and worked with a couple of communication officers of several companies you're mentioning above. Their prime interest was monitoring and not dialogue orientated forms of communicating. It's control - not opportunity - that matters. And that's not only an issue concerning blogs: it's an issue regarding corporate communications at all. We'll see more corporate blogs of DAX-companies in future and in front of the firewall. But it'll take much more time than I've ever expected.
Posted by: Gerrit Eicker at May 10, 2006 12:28 PM
You are pointing at a major tension in the stakeholder ecosystem: when consumers keep asking for cheaper prices, and shareholders expect quick returns on their investment, this can only be achieved by exerting maximal pressure on costs and salaries. Outsourcing is one of the ways to achieve this, resulting in the loss of local jobs. Trust disappears in the crack, and that's the problem for brand Germany - as for France, by the way: "design, innovation and caring for the environment" are great ID markers, but it doesn't put Wurst on the table. So you get a brand that isn't trust-based and not inclusive either. perhaps it is time to consider the European business model (Donalf Kalff)wiht its focus on sustainable growth.
Posted by: Robert de Quelen at May 11, 2006 9:29 AM
Robert,
Fascinating piece on the European business model in today's NY Times on outsourcing. Note that 30% of jobs in Spain are temporary--employers are terrified of having full time employees because in a downturn, the cost of termination is huge. P--add URL of story please.
Posted by: Richard Edelman at May 11, 2006 11:18 AM
I think your article hits several points after working at Audi. I think Germany has a lot of problems that the people I feel do not want to realize these problems exist. As an intern in a German company, I can say that the Germans themselves are not happy with a 3% Mehrwertsteuer increase, a 500€ university administration fee and higher cost health insurance payments makes most Germans unhappy as well as very concerned about their country's economic future. Because of this, Germany needs to focus on Arbeitlösigkeit reform as well as overall government reform. The government needs to look at ways to give tax incentives to businesses and provide means possible to reform Germanys pension system. All of these issues raise tough questions with the heavily unionised German workforce making change difficult. Germanys future depends on the willingness of the unions to realise that they will need to give up more in order to globally compete with the world.
Posted by: Jeff Alstadt at October 16, 2006 5:29 PM
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| TrackBackApril 27, 2006
Gilmor Gang Podcast
A Gilmor Gang Podcast about syndication that I participated in last week with Michael Arrington, Amanda Congdon, Jeff Jarvis and Doc Searls has now been posted.
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Podcast, Syndication, Media
Posted by Edelman at 12:06 PM
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| TrackBackApril 24, 2006
Gum the Keyboard, Stop The Presses, PR Man is Movie Hero
This has to be a Hollywood first. In an utterly forgettable movie, Fun with Dick and Jane, comic Jim Carrey is cast as Dick Harper, Vice President of Communications for Globodyne Corporation. The company is an agglomeration of 90s fraud machines Enron, Tyco, and HealthSouth, headed by villain CEO Jack McAllister, played by Alec Baldwin, who sells his shares at the top of the market, goosing up quarterly results by using every financial device from earnings cookie jars to off-balance sheet limited partnerships to hide losses. Poor Harper is thrown into a CNBC-like interview in which the Ron Insana anchorman character reveals the fraud, causing the Globaldyne stock to plunge to zero and forcing bankruptcy of the company and ruin for its pension fund.
Harper resorts to a life of petty theft to maintain his lifestyle, then executes the ultimate Robin Hood maneuver, gulling his former boss McAllister into donating the $400 million wrongly appropriated from the company to the bankrupt pension fund. The stirring conclusion is a press conference lionizing McAllister's social conscience, ending with him being hoisted onto the shoulders of grateful workers.
How can we build on this new Hollywood persona, the action-hero PR person? Or better yet, how can we offset the negative images of the mealy-mouthed apologist in the Constant Gardner or the cynical opportunist in Thank You for Smoking? Here are a few ideas, especially for those who are directors of corporate communications:
1) Make the process of communications transparent and participatory. A good example is the launch of a website, desirsdavenir.org, by the French president candidate Segolene Royal. According to the Financial Times, she is "encouraging the public to contribute to a participative forum and promising to adopt the best ideas." A French blogger, Stanislas Magniant, said in the same story, "She is demonstrating that she is listening. . .You have a site and the whole blogosphere of Segolenites are...creating a buzz around it."
2) Move from spokesperson to participant in policymaking. You can bet that Steve Harris, who has returned as top PR executive at General Motors, is at the decision making table along side CEO Rick Wagoner. I am certain that Harris is behind the new policy of speaking directly to GM workers about what is necessary to insure the future of the company, instead of solely relying on communicating to employees through the UAW, the auto workers'union. An effective and trust-based dialogue is critical to acceptance of voluntary reduction in benefits so PR becomes an essential part of strategy.
3) Take the lead on issues that have historically been assigned to other corporate departments, such as Human Resources or Manufacturing. For example, my friend, Jonathan Blum, who runs communications at YUM Brands, has managed issues as diverse as planning for Avian Flu and relations with suppliers (Tyson) and NGOs on poultry slaughter methods. The advantage for a PR person is the possibility of input from multiple stakeholders and a more universal solution to the problem.
4) Help to make change. Note the ambitious plans of Wal-Mart (an Edelman client) in the environmental arena. Saturday's New York Times said, "The sheer magnitude of Wal-Mart's plans to become more environmentally friendly has been enough to give pause to all but the most vehement of the company's critics." There is truly first-mover advantage, where bold actions in the public interest are recognized and appreciated.
As always, I appreciate your perspective about how to improve and accurately reflect the reputation of the PR professional?
I am off to Europe today and will write about progress in the German blogosphere on my return.
Technorati Tags:
PR, Public Relations
Posted by Edelman at 9:05 AM
Comments
Richard,
Whiling away my time in a Heathrow airport hotel room (I'm off to see our new client - British Airways tomorrow) and lamenting the paucity of English television I found myself spending more time using my wireless lap top to watch Australian and US news services. In doing so, I again welcomed the growing development of the new media where we can get the news we want, when we want it and how we want.
What struck me was how the MSM is increasingly beginning to catch up to this revolution and improve its offerings in this regard.
That the MSM is late to the revolution is well known, that they have now recognised the earlier errors of their ways was reinforced just minutes later as I ate dinner in the hotel lobby cafe and read two most interesting pieces on the new media revolution in MSM publications.
The first in this week's Economist (http://www.economist.com/surveys/displaystory.cfm?story_id=6794156) with an extensive survey on the impact of new media and the second in Australia's Business Review Weekly with its cover story (http://www.brw.com.au/fearticle.aspx?relId=17521) detailing how the nation's second largest media company, Fairfax, is positioning itself for the new media revolution.
I suspect you'll not find any of the information in either publication particularly new, as they simply demonstrate what you've been saying for ages - that communication has changed and that it is now about conversations and participation.
Posted by: Tim Grau at April 25, 2006 3:52 PM
Early into my first public relations course at Syracuse, the teacher challenged us to think of a media representation of the public relations professional that was positive. Not a single character or story could be recalled. Gum the keyboards indeed! Thanks for this uplifting post.
To your fourth point, I would like to mention that there is a multi-stakeholder holy grail taking place in October that is being planned as we speak (type? blog?) and it is called the Internet Governance Forum. Anyone can contribute to the planning of the inaugural meeting and the actual meeting itself is likely to be a live multi-stakeholder process. This is an opportunity for anyone, especially those interested in international approaches to Internet communications issues (spam, data protection, net neutrality etc.), to gain exposure to the policy side emphasized by point (2) and participate in an international discussion. The IGF was born out of the UN's World Summit on the Information Society and represents a major initiative to use the Internet for an extremely diverse, multi-stakeholder process. For tech PR pros, one very practical benefit to paying attention to the international discussion is the value in understanding which issues are shaping the global use of the Internet and who the key stakeholders are. The address is http://www.intgovforum.org/ and to the future PR heroes among us, "up, up, and away!"
Posted by: Eric Hansen at April 25, 2006 11:19 PM
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| TrackBackApril 14, 2006
MSM Getting On the Stick
I have had long conversations with reporters and editors from the Financial Times, Forbes.com and the Wall Street Journal in the past week. Here are some important facts for PR people to keep in mind about the evolution of Mainstream Media in the digital age:
* MSM on-line is now acting as aggregators, such as Andrew Ross Sorkin's Deal Book under the NY Times.com banner, which takes content on M&A from multiple media sources, or Forbes.com which has 125 media partners including CNET, AFX and Variety.com. This is a way to retain readers in the fold beyond the eight minutes average spent on average, for example, on nytimes.com.
* MSM on-line is now trying to crowd the vertical trade media. Forbes.com has organized sub-sites in logistics, infrastructure, and digital entertainment. The idea is to move beyond the traditional agenda setting of MSM, a horizontal approach to educating opinion leaders across a broad spectrum of industries and interests, toward a more vertical approach that may appeal to the specialized interests and shorter attention spans of the on-line reader.
* MSM on-line is more hard news oriented than feature oriented. Reporters are getting better about filing high quality work immediately on-line--there is less iteration of the story content than two years ago. Video is being appended to stories on the on-line MSM. An example would be an MPEG file showing a new ad campaign running alongside the story.
* MSM on-line believes in the concept of "entwined media" (this per Jim Spanfeller, boss man at Forbes.com who hopes to write a book on this topic), where the same story content is used across platforms (video, audio, data bases, analysis, print on-line). He describes consumer control not in terms of time shifting (the DVR concept) but in terms of media selection appropriate to need. An example would be an investor who sees a story on line, wants to hear or see the CEO interviewed by the Forbes reporter, then can dig into the analytics to see competitive performance.
* The demographics of MSM on-line are changing and becoming more like the MSM itself. An example is Forbes.com, where the average reader of the magazine is only three or four years older than the on-line entry. The on-line products are drawing younger readers to the mainstream entries. The growth is stunning--note that in the month of March, Forbes.com had 19 million unique visitors, up from 8 million a year ago.
* The on-line MSM entries try to stay true to the style of their MSM siblings. So Forbes.com tries to be edgy, contrarian, pointed, and provide information that you can trade on.
* MSM and on-line MSM staffs are being merged, most recently at Dow Jones. This is making for a very long and difficult work day for reporters. They are being asked to file for Asian edition by 10 am to noon, for Europe by 2 pm, for the US between 4-6 pm, with fling in between for wire services and the Web.
Here are the implications for PR folks:
1) Reporters expect PR folks to send ready to use digitized content or to arrange for CEOs to make the time for a sit-down video interview. Pictures matter more than ever.
2) Don't count on getting thrust of story amended so easily just because it is on-line--we have to work with reporters to get it right from the start
3) MSM on line reporters are ambivalent about bloggers as a news source. Don't count on the bloggers being the on-ramp to stories in MSM on line. Most of the MSM on line reporters are not bloggers and are operating in walled gardens.
4) Don't be disappointed with a placement in the MSM on line version and persuade your client that in fact you may get more traction with this approach as first choice.
As always, I want your views on my post.
Posted by Edelman at 8:40 AM
Comments
I would add, monitor globally. A story on line in Africa is still seen by folks in your back yard. In these past people did not see buy the international media.
Posted by: David Phillips at April 17, 2006 7:02 AM
I think you are right on the money. As the time between release and broadcast, or print, decreases in time -- it becomes much more imperative to position the release with more information than just the text. Pictures, audio, video and background links all will help the journalist finish your story.
The PR industry is stuck in the mud with what we are providing journalists. Plain text press releases are meaningless. We need to start to tell the story before the journalist gets the release.
I think www.enr-corp.com is starting to put this together -- including global media monitoring. Check them out. They also just pulled together a deal with Business Wire -- should be interesting.
Posted by: Chris McTague at April 17, 2006 10:10 AM
PR Education: Your "implications for PR folks" parallel the implications for PR education. Even if the practitioner is not the one handling the technical aspects of digital content production, it will behoove them to understand the demands of a journalist needing various digitized content. Sensitivity to new demands on journalists in merged production environments must be explicitly taught to PR students.
Aggregators: Hopefully MSM or "branded" aggregators will provide some small balancing influence to the myopic side effects on a media consumer's worldview that personalized news subscriptions can cause. Or will they make it worse? The burden would seem to rely on the interest of the MSM's aggregating staff member(s) to present objective/diverse sets of perspectives.
Posted by: Eric Hansen at April 17, 2006 2:31 PM
Thanks for writing to me. Think about how we are all assimilating the plethora of information that confronts us each day. I retain visuals often better than words. My mentor Mike Deaver tells me that impressions are critical--if so, visuals along side the words make a huge difference.
Posted by: Richard Edelman at April 18, 2006 9:46 AM
EH
The usual wise commentary from you--thanks. We are trying to do our part on PR education front. We will be offering each month to PR educators and their students a 1 hour best of Edelman in new media starting in September. So the XBOX case, the Starbucks case etc. Stay tuned.
Posted by: Richard Edelman at April 18, 2006 9:47 AM
Richard,
What would you recommend to the PR industry to incorporate more of the visual in our efforts. It seems that the entire PR world is still dealing with PRN and BW with text releases -- struggling over any distribution of video -- and overall not engaging journalists at all.
If you are correct, and I agree, that most people retain visuals better than words -- why do we keep doing the same thing and expecting a different result?
Posted by: Chris McTague at April 21, 2006 8:55 AM
I seek a diverse work force because we will be able to serve our clients better Simply stated a white suburban middle aged person's view of the world is not especially creative or edgy. I know that blogging has helped me stay relevant but I need smart people who are living in modern culture to push me and others to excellence
Posted by: Richard Edelman at April 25, 2006 2:06 PM
Just as mainstream media is now learning to develop cross platform content so we must adapt our pr techniques. We should be facile with camera cwell phones or mini cams for video. We should be able to post photos to flickr where they can be downloaded by interested parties. More later I need to get on a plane
Posted by: Richard Edelman at April 25, 2006 2:07 PM
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| TrackBackApril 11, 2006
MarketingMonger Podcast
I was recently interviewed on the MarketingMonger podcast, which is hosted by Eric Mattson. You can download it here.
Posted by Edelman at 2:06 PM
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| TrackBackApril 7, 2006
Disgrace at Duke; What Took So Long Anyway?
Disgrace at Duke; What Took So Long Anyway?
President Richard Brodhead of Duke University took strong action on Wednesday, April 5 to reclaim the moral high ground after his school has been battered by a burgeoning scandal, with three Duke Lacrosse players accused of raping a dancer from a predominately African-American college at a party at their fraternity house on March 13. As Mr. Brodhead noted in his communication to alumni, "This episode has touched off angers, fears, resentments...brought glaring visibility to underlying issues...concerns of women about sexual coercion and assault...concerns about the culture of certain student groups that regularly abuse alcohol and the attitudes these groups promote...concerns about the survival of the legacy of racism, the most hateful feature American history has produced."
This post does not seek to examine the underlying issues. Others will do so in a more eloquent manner. It suffices to say that as a father of three daughters, I am repulsed by the alleged violation of basic human dignity. There can be no excuse for this type of behavior. But let me focus instead on the communications issues in this crisis. In particular, let's examine the accusation that the University has been too slow to respond to the crisis.
The Context--The town of Durham has had a very "fragile relationship" with the University, according to the local newspaper News & Observer. According to the paper, "Fifteen players--about 1/3 of the (men's lacrosse) team--had previous criminal charges in Durham in the past three years, mostly related to drunken and disruptive behavior. Most of those charges were resolved in deals with prosecutors that allowed the players to escape criminal convictions." The paper goes on to quote faculty member Kathleen Smith as saying the faculty was unaware of the team members' legal record. President Brodhead's note to alumni acknowledges that "There have been reports of persistent problems involving the men's lacrosse team, including racist language and a pattern of alcohol abuse and disorderly behavior."
The Timeline--
March 14, early AM--Victim relates story to Durham police
March 15--Duke begins investigation, though University says nothing
March 18, 21--Duke mens' lacrosse team plays games against N. Carolina and Cornell
March 24--SVP for public affairs John Burness says in response to lacrosse team members going for DNA tests, "Duke University is monitoring the situation and cooperating with officials, as are the students."
March 25--In response to stories confirming the hiring of women from an escort service to dance at the party and that alcohol was served to underage lacrosse team players, Duke decides to forfeit games against Georgetown and Mount St. Mary's. President Brodhead said, "Physical coercion and sexual assault are unacceptable in any setting and have no place at Duke. There will be very serious penalties if the charges are verified but the facts are not yet established."
March 29--Duke decides to suspend all games of the men's lacrosse team until the rape allegations are resolved. The team captains acknowledged certain judgment lapses in holding the party, but denied the allegation of rape and said they did not want to play competitively until the DNA results are finalized. President Brodhead said, "While we await the results of the investigation, I remind everyone that under our system of law, people are presumed innocent until proven guilty. One deep value the university is committed to is protecting us all from coercion and assault. An equally strong value is that we must not judge each other on the basis of opinion or strong feeling rather than evidence of actual conduct."
April 3--SVP for public affairs Burness confirms to News & Observer that there were frequent complaints to Durham police on rowdy behavior and charges against 15 players over the past two years for drunk and disorderly conduct.
April 5--Lacrosse coach resigns with no comment. Presidential council convened to scrutinize Duke's response to the situation, another will consider the lacrosse team's behavior and culture. President Brodhead's statement is noted above.
Conclusions
1) It took too long for the President of the University to lay out the context, which he did eloquently on March 25. There were eight days with no apparent comment by the university brass and ten days in which the only official statements came from the athletic director and the SVP of public affairs. What doesn't seem to be apparent in the coverage to date is whether Duke officials were led down this communications path by legal counsel. I believe that there are times when the court of public opinion needs heavier weighting than those applied in the legal courtroom. This could be one of those cases.
2) The best type of statement in the days just following the event would have established Brodhead's unequivocal support for due process but also a determination to understand the root causes of the problem and a restatement of his commitment to the rights of the accuser, not just the accused.
3) There had to be a separation of the interests of the accused and those of the university. In fact, the lawyers for the lacrosse players and the Durham District Attorney have been scrapping quite publicly for days about trying the case in the media.
4) The university community was relatively calm until March 27, when protestors chanted in front of the administration building. So there was a week of tolerance for the president, until enough details about the party were established to give credence to the accusations.
The general best practice in crisis communications is for the top person, the CEO or university president, to respond quickly to the problem, laying out a process for resolution then following up regularly with all stakeholders to assure full transparency. In this case, it became clear that the University would not control the release of information as it was a criminal inquiry. All the more reason why, at the outset, the University had to establish its position and its commitment to a thorough review of the incident and the environment that spawned it.
Posted by Edelman at 5:06 PM
Comments
In corporate America, there is a five-step process in crisis "manaqement". With apologies to Jack Welch, they go something like this:
The first stage is denial. The problem isn?t that bad, the thinking usually goes, it can?t be, because bad things don?t happen here, to us. The second is containment, wherein leaders try to make the problem disappear by giving it to someone else to solve. The third stage is shame-mongering, in which all parties with a stake in the problem assign blame and claim credit. Stage four: blood on the floor. In just about every crisis, a high profile person pays with his job, and sometimes he takes a crowd with him. In the fifth and final stage, the crisis gets fixed and, despite prophesies of permanent doom, life goes on, usually for the better. Which stage describes Duke/Brodhead at the moment?
Posted by: Stan DeVaughn at April 7, 2006 8:05 PM
Hi Richard:
Communicating quickly and accurately is indeed a cornerstone of crisis communication planning. During a crisis, your focus should be to deal with the situation, gather accurate information and communicate quickly. Your goal should be to "speak with a clear voice."
Yet my biggest concern as a Duke alumni was the acute absence of women as spokespersons during this particular gender/race violence incident. Why were there no women academic spokespersons or alumni leaders speaking on behalf of Duke? Where were the women? Any women?
This incident could irrepairably damage Duke's reputation among women students and alumni. Issues like this can cascade across colleges and create a halo effect if improperly tended. During this crisis, a woman's voice would have helped to deliver a strong and positive leadership message of assurance to women.
As a woman and Duke MBA alumni -- and Chicago YWCA Junior Board Chair -- I wish Duke's administration had handled it differently.
Should Duke's President have been the sole spokesperson? I respectfully disagree. One of Duke's Women's Initiative leaders (Susan Roth, Judith White, or Donna Lisker) should have been at his side. Too bad Nannerl Keohane was not available.
Alas, women are still marginalized in news media. Women are far less likely than men to be considered experts in media coverage. They are more often relegated to voices expressing personal experience or popular opinion.
kindly,
kirsten
Posted by: kirsten at April 8, 2006 2:36 AM
Mr. Edelman,
I read your new blog post before leaving for the evening, and I have another possible answer to your question of why it took Duke so long to respond. I agree that a wiser move would have been to come forward early with transparency. As you noted, the fundamental problem has been more about timing and less about content. President Broadhead’s response in recent days has been appropriate for the most part. It just took a week too long to say it.
So what took so long? While instinctually, the logical conclusion is that legal and fundraising concerns drove Duke’s decision to keep the investigation under wraps, I think there is another cause that has gone largely neglected. I have a sister currently at Duke and a cousin who was just accepted, and after speaking to both of them this past week, it occurred to me there was another primary driver of this decision to stall: admissions yield.
As I’m sure you’re aware, all colleges and universities recently mailed out their admissions decisions to high school seniors. I don’t think there is any doubt that these allegations will in some cases make accepted high school seniors choose another school over Duke. With fewer students accepting offers, Duke will need to dig deep into its less-qualified wait-list to fill its freshman class. As a result, not only will Duke’s incoming class be less accomplished, but also, the lower yield and higher admissions rate will damage its position in the annual U.S. News & World Report ranking. It’s reasonable to believe their hope was if this investigation could be kept quiet into April, there would be less impact to yield, requiring fewer acceptances from the wait-list (both of which factors into the U.S. News ranking). So aside from legal and fundraising concerns for containing this to the extent possible, the timing of admissions decisions was also a likely factor in their choice of tactics.
Have a great weekend.
Best,
Phil Walotsky
Posted by: Phil Walotsky at April 10, 2006 9:31 AM
Kirsten
I don't believe in president of Duke as single spokesperson But I do believe that the president has to set the context initially as does a CEO in a crisis That was the key missing piece here--you are right to suggest a woman as one of the spokespeople in next communications
Posted by: Richard Edelman at April 10, 2006 9:46 AM
Stan, I would like not to think that you are correct I believe the President of Duke has now regained the initiative But it took far too long to get here and has cost the university in reputational sense
Posted by: Richard Edelman at April 10, 2006 9:48 AM
Hello Mr. Edelman:
I am curious to know if you have any thoughts on how the other institution, North Carolina Central University, has done in handling this situation? The accuser is a student there, and thus far the university community has tried to support her through press conferences and demonstrations.
I am a former employee of NCCU's public relations department, so I know first-hand that their small staff must have their hands full with such national attention and constant media requests for the university's response. I have seen news clips of NCCU students reprimanding the media for unfair portrayals of the victim as far away as Miami, FL. In your opinion, could such coverage have a negative impact on this university as well?
Best,
Alonda
Posted by: Alonda at April 26, 2006 1:39 PM
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| TrackBackApril 6, 2006
Update to Is there a Conflict within Workaholic Behavior?
The FT's Patii Waldmeir (subscription req'd) writes today that law firms may be realizing that introducing more of a work-life balance into the firm's culture could save money in the long-run.
Posted by Edelman at 9:51 AM
Comments
Rich, interesting article by Ms. Waldmeir. She also notes the impact of generational change on attitudes to lawyerly work; young lawyers seeking more in life than money.
Your blog post made me seek out the NALP Foundation report referred to in the article, and it's not easily available on the internet. However one of the co-authors, Susan Saab Fortney, has got this article up:
http://www.nalp.org/assets/library/351_1105worklife.pdf
I think that there seem to be a few law firms out there being kind and gentle to their serfs, but it's not a trend yet.
Posted by: Bob M at April 7, 2006 6:12 AM
Dear Richard:
Personally, I don't find anything wrong with being committed to ones work and working hard to do it well. It's amazing that people are now apologizing for this. Maybe it's a generational thing (yes, I am a Boomer). But then again,the folks in Silicon Valley, Israel's hi-tech industries, and Bangalore don't seem to find it unusual.
Keep up the 6AM e-mails.
Regards,
Steve Edelman
PS I wonder if we're related.
Posted by: Steven Edelman at April 7, 2006 2:47 PM
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| TrackBackApril 3, 2006
Is there a Conflict within Workaholic Behavior?
I am sure that all of you have noticed the upsurge in articles on the longer work days now being embraced or tolerated by employees around the world (except in France, but that is for another blog). Trains leaving New York suburbs for the City at 5 am are now quite full. Electrical usage, which formerly spiked upwards at 6:30 am, is now showing high usage beginning at 5:45 am.
Cameron Stracher wrote in Saturday's Wall Street Journal that first year attorneys are now being expected to bill 2,200 hours per year. Her calculations anticipate a 1.5 multiple on hours in the office to hours billed, so that would require a 3,300 hour work year or 63 hours per week.
Leave the workaholic tendencies to folks in Wall Street and to lawyers, I say. PR people will find an inverse relationship between compulsive overwork and truly outstanding results for clients. Here's why:
Never before has there been such a premium placed on a big idea that can succeed across media platforms. That idea no longer necessarily comes from an ad agency. As PR people can attest we are increasingly considered equal partners in developing the central creative premise. PR professionals are only inspired to this type of creative excellence by being part of the bigger world outside of the office, noting social trends and engaging with mass culture, experiencing client and (dare I say) their competitor products. Our service is a combination of inspiration and perspiration.
We are in a social business. Relationships based on trust really matter. Meeting reporters, NGO activists, legislative aides, academics and artists are a core component of what we bring to clients. We need non-billable time to expand our personal circle of acquaintances.
We are running a marathon, not a sprint. Our business is not one of transactions. We provide continuing advice and strong relationships are devised over periods to time. Turnover is the biggest problem in the industry, with the average agency enduring a 25% churn in any given year, especially at the lower levels. Many of those who depart move out of the business, a loss of our investment in their analytical capacity and writing ability. This is even more acute in rapidly developing markets in Asia, where turnover and hours logged ais even higher.
What can we do to create a virtuous circle--retaining our people, producing superior creative work, achieving the necessary level of profitability and networking with relevant stakeholders? Here are a few ideas:
Lead by Example-I am a writing this blog, partly as Confessions of a Reforming Workaholic. We can recognize the people in the company who give something back to their communities through volunteer work. Make sure that parents attend their kids' sporting events. Make the corporate awards programs about the quality of the work, the level of employee satisfaction and the attaining of excellent financial results.
Provide Greater Mobility-Mobile, RSS and Web devices provide more control, flexibility and employee empowerment, not simply devilish mechanisms to get more work out of an always-on employee force. There should be some guidance about using them because its not all right to be checking blackberries during brainstorms and meetings.
Values and Measurement-Company culture is often quite different in far flung offices around a network. There should be clear direction on expectation of work load. Annual employee surveys are one useful way to assess compliance.
Proper Budgeting-We spend far too much time on the creative process in winning new business and then put together the budget at the last minute based on standard templates. We then invest in the relationship by agreeing to terms that only provide profit by over work at the lower levels. In many instances, we give away the creative ideas and yield revenue by billing on execution. We should be paid for the value of our contribution. We need to experiment with alternate billings models and do a better job explaining to procurement officers the ROI of budgeting for "strategic counseling." Some of the best work comes when we proactively take ideas to our clients, though this effort is rarely charged.
Providing Office Time to Get Out of the Office-At Edelman we launched what we affectionately call "Living-in-Color" about two years ago to encourage staff to take time during (or after) the day to get out of office and do something to either give-back to the community or/and re-charge their creative juices by, for instance, going to museum with colleagues. While it's difficult to quantify the benefits to Edelman's P&L, I see the results through more relevant and inspired ideas and enthusiastic professionals.
Posted by Edelman at 11:34 AM
Comments
How does one measure progress? Is working longer hours a progress to be proud of (as the simplistic bashing of the French who refuse to go that way implies)? Or should progress be measured by the increase of real leisure time and good health? How many people get sick because of excessive "working" hours? How productive are people who are overworked/overexploited? I wonder what are the results (in terms of productivity and global health -for the individual, the family, the community at large) of the 4 day work week experience in Canada? As I recall the 4 day work week started in the US (Quaker Oats?) but apparently so much theatened vested interests it did not take hold. I am convinced that in many instances there would be no loss of productivity with less hours than by forcing people into unsustainable schedules.
As for the economic impact of more leisure it would certainly create more jobs... in all leisure related sectors and decrease the number of days lost to illness and accidents. Is the fact that the US is beyond most industrial countries in paid vacation a sign of superiority or the result of very weak unions that stopped obtaining for all the workforce what has been in achieved without any major disruption in the last 50 years and is taken for granted in most EU countries? How long is the standard paid vacation at Edelman-USA? How long is the standard paid vacation at Edelman in France? Just curious :)
Posted by: philippe at April 3, 2006 3:39 PM
Bravo, Richard! We need more experienced professionals pointing out the productivity perils of running a rat race.
Posted by: Mike at April 5, 2006 10:27 AM
One of the reasons why people are working very long hours is because the nature of business has changed despite advantages gained from technology that faciitate communications. Two of these changes are: 1) speed to market--- getting products out has reached supersonic speed. The companies that are most competent in this arena are the ones that are winning the game; 2) corporate structures are still stuck in the old managerial/ hierarchical structural models despite working in a global market that requires a great deal of flexability.
Technology is a catch-22. It is the cause of people working long hours due to increased accessability, but it can also provide solutions to this distressing situation. In particular, the PR industry, which is based on relations as Richard points out, has much to gain. Moves in this direction are already under way as savvy companies analyze their internal social networks and identify bottlenecks. Intel Corp., for example, sees an opportunity in creating technology that lowers the time cost of teamwork. At Intel, the drive to reduce the time spent sharing knowledge and collaborating is an outgrowth of efforts to better coordinate far-flung operations that stretch from Israel to India. One idea being pursued is "dynamic profiling" -- technologies that automatically summarize areas on which a researcher or a manager is focusing, based on the subjects of their e-mails and Web searches. The PR industry that focuses on collaborative idea-generation could also utilize dynamic profiling and other web-based organizations.
We probably will see a rise in new forms of Web-based organizations where people can contribute without having their time eaten up by existing corporate hierarchies. Blogs, collaborative online databases (wikis) and open-source software development all use the Net to handle much of the coordination among people rather than relying on top-down command and control. Embracing technological innovation could eventually lessen bureaucratic time burdens on overworked professionals. For further reading, a good article on the subject is:
http://www.businessweek.com/magazine/content/05_40/b3953601.htm
Posted by: Nabeela at April 10, 2006 9:39 AM
N
Thanks for adding to the conversation. I believe firmly in technology as a means of lowering stress and adding to efficiency. I see a different face of technology, however, in excessive blackberry addiction, a neurotic need to be constantly on line and a lack of time for thinking. Anyway we should all be conscious that overwork does not yield optimal results.
Posted by: Richard Edelman at April 10, 2006 10:10 AM
Yes, I do tend to agree with you. There was a great article in Washington Post last year on how people develop tendinitis. It was called "For Some, Thumb Pain Is BlackBerry's Stain."
Thanks for writing!
Nabeela
Posted by: Nabeela Khatak at April 10, 2006 2:06 PM
Living in Japan where there is no BlackBerry (yet), I always notice how North Americans comment on how relaxed they are when they visit Tokyo on business trips. Several have spoken about how 'liberated' they feel, sounding almost like reformed smokers who are no longer enslaved by cigarettes. Freedom to focus and to think rather than to respond spasmodically to fragments of always-incoming information still seems to be valued.
It's no secret that Japanese working hours tend to be longer than those in America, but even though some have questioned -- with reason -- the productivity of those hours, I have been to enough meetings in the US and Canada in recent years -- where people rudely no longer pay attention or listen to each other as they constantly check e-mail -- to see how BlackBerry may inhibit rather than aid productivity (at least when used in a compulsive way, which regrettably seems pretty common).
In Japan a 12-hour day may be pretty standard (plus what can be brutal commuting time), but there seems to be a clearer demarcation between personal time and company time that the BlackBerry has helped to blur elsewhere. Americans (and Europeans of course) do get to go home earlier, but when they are there, less and less of their time outside of the office really belongs to them it would appear and I think that's a pity.
Posted by: Bob Pickard at April 13, 2006 10:23 PM
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| TrackBackBrief Response to Mr. Guinane of the Guardian Newspaper in the UK
This is a brief response to Mr. Guinane of the Guardian newspaper in the UK, who has at least been consistent in his skepticism about the role of the PR agency in the blogosphere. My comments to the NY Observer reporter did not suggest a covert desire to evade scrutiny of our corporate clients by probing reporters. I believe in a full presentation of facts and suggesting credible spokespeople to interested journalists. Should a story result that is one-sided and unfair, however, I feel that a company is warranted in posting materials offered the journalist and inviting bloggers or other reporters to offer their opinions. Our job is to enable a better conversation, not to "spin" nor to obfuscate.
Posted by Edelman at 11:32 AM