« May 2008 | Main | July 2008 »
June 26, 2008
The Old Lions Roar
PRWeek organized a luncheon yesterday in Chicago for the founding fathers of the PR industry, including my father, Dan Edelman, Harold Burson, David Finn and Al Golin. All of these octogenarians (Golin is on the door step at 78) are still active in their firms and passionate about the PR business. Here are some of the highlights from the lunch (I was invited as an observer—was told that I would be invited as a participant in another thirty years!)
1) At the Creation—All of these gentlemen had served in the military and had experience in journalism. Harold Burson began his boutique in New York City in 1946, David Finn with Bill Ruder in New York in 1948, Dan Edelman in Chicago in 1952 and Al Golin in 1956 in Chicago. Burson was quick to point out that there were literally hundreds of PR practitioners (there were 500 listings for publicity or PR in the 1947 Yellow Pages for Manhattan) who had been in PR in the armed forces. Edelman and Golin were in the consumer marketing business from the beginning, Burson focused on business to business and Finn always had an arts/cultural unit though he “had to get commercial clients as well.” Burson merged his firm with Bill Marsteller’s advertising company based in Chicago in 1953 to form BM.
2) The Breakthrough—For Al Golin, it was a cold call to a fast food restaurant owner named Ray Kroc who had a small company named McDonald's; this is still Golin Harris’ top client. For David Finn, it was the merger with Harshe Rotman in Chicago, which propelled the firm to the top of the profession in the late 70s. For Harold Burson, it was the decision to go global in the early 60s, pushed by large clients such as Clark Equipment, and the win of the General Motors account. For Dan Edelman, it was the California Wines account which enabled the opening of two offices in the state, then the success of the Washington office, both in the late 60s.
3) The Operating Style—Each reflected on a life of hard work and sacrifice. Dan Edelman said he worked every Saturday until 3 pm. Burson noted that he had been in Chicago over 500 times in his career; he was given an award by the Park Hyatt near the Water Tower as one of the top five lifetime customers of the hotel. Golin said that he had to go without a paycheck several times early in his career but that his employees never had to do without one. No private planes or yachts for these entrepreneurs; they reinvested in growth of the business.
4) On Remaining Independent—Dan Edelman and David Finn gave the predictable response, the superior growth potential in PR and its position at the apex of the communications business, counseling the C suite. Burson noted that ad agencies had long been interested in the PR business, initially through their own subsidiaries (JWT, Benton and Bowles, BBDO, McCann Erickson all had PR units in the 60s) then by acquiring firms such as Hill & Knowlton (bought by JWT in the 70s).
5) On Family in the Business—Finn said that he had shown each of his children a study that indicated the high risk of failure of second and third generation owners, to discourage them from coming into the firm. It had the opposite effect; all four of his children work at Ruder Finn, along with three of his grandchildren who dine with him at least once a month. Dan was very generous in his remarks about me, while giving credit to my two siblings for their contributions to Edelman.
6) On Continuing to Work—Golin had the most unbelievable story. One of his erstwhile friends suggested that Golin was still working because he was “greedy.” Quite to the contrary, Golin said. “I work because I love what I do. I am still making a contribution. I am off to Singapore next week for a client roundtable on the Olympics.” Each of the other men comes to the office and is involved with clients.
7) On Competing—The gentlemen professed deep respect for each other, noting that their skirmishing for clients had always been done on a highly ethical basis. It came to light that Ruder Finn had tried to acquire Golin Harris in the early 80s!
In holding this event, Julia Hood and Keith O’Brien of PRWeek recognized the power of example and the importance of individual initiative in the creation of the modern public relations business. None of the present CEOs need to justify the profession to clients. In fact, these four men set the stage for the present success of the industry. For that, we owe them our respect and gratitude.
Posted by Edelman at 2:19 PM |
Comments
Sir Richard Edelman, I'm Ed Cordevilla, a PR practitioner for a decade now in the Philippines. I have my own PR firm Mediatrends, Inc., it was incorporated in 2004. I enjoy your piece here. It's inspiring to read about other PRs, especially about the institutions in the industry. PR business is still new in the Philippines, being a third-world country subjected under a dictatorship for two decades. I'm glad to have found your site. Blessings to you and your company.
Ed Cordevilla
Posted by: Ed Cordevilla at June 27, 2008 5:33 AM
Your best post ever. Thank you. Inspiring stuff to an agency owner.
Posted by: Todd Defren at June 27, 2008 10:27 AM
Richard -
What a terrific post! Thanks for sharing.
Leo
Posted by: Leo Bottary at June 27, 2008 10:51 AM
The Chinese have it right when it comes to honoring elders.
Seeing these distinguished industry giants continue to play a role in the profession is inspiring. I just hope some of the newer members of our field glean knowledge from these truly remarkable individuals before they are gone.
Our company would not be where it is today without earning the trust of your father, Al Golin and Harold Burson. I enjoyed the reading the post and will think of Harold Burson the next time I walk past Chicago's Park Hyatt.
Posted by: Dave Armon at June 27, 2008 1:02 PM
Richard,
I enjoy all of your posts and the insights you share, but I also found this one particularly moving. I have been very fortunate to have worked for and to know Harold, less fortunate not to really know Messrs. Edelman, Golin and Finn. But Harold speaks of each so respectfully and I know that they have don and continue to do so much for a profession that has been very good to me.
Posted by: Michael Claes at July 3, 2008 6:19 PM
Richard,
I also had the pleasure of being an observer at this roundtable and was especially fascinated to hear the observations of these four gentle giants of our industry.
A point that you made toward the end stuck with me: That despite the financial success that each of these men ultimately achieved, they resisted any impulse to buy private jets or other toys of their wealth. They all remained practical despite their success; no doubt a product of their generation. I look forward to the PRWeek article and thank Julia and Keith for making it happen.
-Bill Zucker, Burson-Marsteller
Posted by: Bill Zucker at July 3, 2008 6:58 PM
Post a comment
| TrackBackJune 20, 2008
A Walk Into History
“They found my grandmother’s grave stone in the Huangpu River. It had been in one of the four Jewish cemeteries in Shanghai.”
So began the afternoon tour of Jewish Shanghai with Lily Klebanoff Blake, born in China during World War II, who joined our Edelman’s Global Leadership to talk about her city before its huge modernization program. (disclosure: Ms. Klebanoff Blake is the mother of Justin Blake, who manages the Corporate and Public Affairs unit for Edelman in NY City)
Our first stop on this emotional journey through time was the Ohel Rachel Synagogue, a large Sephardic structure constructed in the early 1900s. It is now used as a history center by the Shanghai Municipal Government, with black and white photos as period pieces on the walls, the synagogue immediately brought back memories. “I remember being a small child running up and down the center aisle during services, while my uncle, the rabbi, glared at my parents, as if to say get this kid under control,” she said. There is currently an on-going debate about the future use of the synagogue, with the new generation of 3,500 Shanghai Jews wanting to restore it to religious status, while the City would prefer a more elaborate Jewish historical center.
Ms. Klebanoff Blake then took us to the former French Club, now part of the Okura Hotel in the city, a former hub of nocturnal activity for the wealthy. “There were all sorts of people here every night,” she said as she guided us into the ornate Art-Deco ballroom, “including notorious gangsters such as Big Eared Tu.” You can really imagine the swing band dressed in white tie under the gigantic chandelier, with the bay windows open onto the dramatic gardens.
Her guide, an Israeli named Dvir Bar-gal, informed us that there were three waves of Jewish immigration to Shanghai. First were the Iraqi Jews, the Kadoury and Sassoon families, who were traders, real estate magnates and hotel owners (personal sidebar -- my first night as a married man was in the Peace Hotel, ducking the mosquitoes as there were no screens for that hot May evening). They were so wealthy that they built mansions that encompassed four acres (one is now the Children’s Museum of Shanghai). The second group emigrated from Russia (for example the Klebanoff clan came initially to Harbin, a port city, and then to Shanghai) in the textile and retail sectors (note: Ms. Klebanoff Blake’s uncle owned Siberian Fur Store which even survived the Cultural Revolution!). The third group, the only one I had ever known, came during World War II from Europe.
Mr. Bar-gal continued,” The Chinese consul general in Vienna, Austria, issued approximately 10,000 passes to Jewish families seeking to escape the Nazis. In fact, he is the Chinese version of Oskar Schindler (from the movie Schindler’s List).” The Jews made their way from Vienna by train to Genoa, Italy, sailed through the Suez Canal, south of India to Shanghai, which was an open city under the provisions of the settlement of the Opium Wars with Britain in the 1840s. They came with little or no money, obligated to live in the International Legation in a special ghetto created by the Japanese occupiers who had taken control of the city in 1939. The density of the ghetto was stunning. It had 1,600 people in a single block. We visited an apartment that was in recent years occupied by Mr. Wang, custodian of the Ohel Moshe synagogue, for Ashkenazi Jews who came in the 30s, which had a tiny bathroom used by 16 people which was basically an open hole in the ground as a toilet.
A little known fact was revealed by Ms. Klebanoff Blake during our tour; the Germans sent a high-ranking officer to lobby the Japanese High Command in China to liquidate the Jewish ghetto by taking the residents onto ships, then sinking them with all aboard off of the Chinese coast. The wealthier members of the community brought gold bars and cash to the Japanese officers, who decided not to proceed with the ship concept. A few months before the War ended, in true irony, 41 of the ghetto residents were killed by stray American bombs, seeking to sink Japanese ships in the harbor.
Most of the Jews moved after the Revolution of 1949, either to Israel or to the West, especially the US. With the construction boom in Shanghai, little is left of the historic district. Mr. Bar-gal is seeking contributions to purchase land so that “the head stones we have saved from the River or from use as cutting boards in homes can have a final resting place, in a new Jewish cemetery.” His web site is www.ShanghaiJewishMemorial.com, which has a terrific search by family name function. One can also contact him about making a donation to the Ohel Rachel Synagogue, badly in need of plaster and paint, at www.shanghai-jews.com.
I found Ms. Kleanoff Blake’s story so compelling that I wanted to share it with all of you. Here is a photo of Ms. Klebanoff Blake, her son Justin Blake and me in front of the Ohel Rachel Synagogue.
Posted by Edelman at 5:02 PM |
Comments
Thank you for recalling us of the Jewish group living in Shanghai, but for this passage,we forget them and will do so all the time.
I think from now on I will keep paying attention to the condition of ghetto.
(I am a sophomore studying in University of International Relations, Beijing. This is a College having lots of graduates who finally set foot in the PR field, such as Edelman, Ruder Finn, Ogilvy, etc. Of course, I also plan to do so, and Edelman is my favorite).
Two years later, I will study abroad, maybe in the U.S. Then I will go back to pursue the chance in Edelman, not for the fine salary and the 1st place reputation but the company's culture. Wish me to succeed!
Reading your blog has become a part of my daily life, so keep it up.
Regards.
Posted by: Hastings at June 21, 2008 5:30 AM
Thank you for posting this and sharing the work of Dvir Bar-gal. Shortly after starting at Edelman, my husband and I took Dvir's tour in Shanghai and were blown away by the history. Your blog posting enabled us to again share the experience with our family, friends & co-workers.
Posted by: Robin Edwards at June 24, 2008 3:20 PM
Post a comment
| TrackBackJune 13, 2008
State of the Chinese Blogosphere
I am at Edelman’s annual leadership meeting in Shanghai. We just heard from a group of Chinese bloggers, including Raymond Zhou, Isaac Mao, Steven Lin, Tangos Chan, Sam Flemming and Adam Schokora - disclosure; Mr Schokora works for Edelman China. Here are some of the most salient points:
1) Social media in China has two constant themes: the rich/poor divide and nationalism. According to Mr. Zhou, there is tremendous risk in ignoring blogs with “anti-China feeling,” such as those prompted by Sharon Stone’s recent comment about the earthquake in Sichuan Province caused somehow by Chinese behavior in Tibet. “Christian Dior did exactly the right thing in distancing the company from her and even making up an apology for her.” He noted that Carrefour didn’t respond to false claims that they supported the Dalai Lama, which spread like wildfire across Bulletin Board Systems (BBS) until they reported by mainstream media. “By playing the victim, being passive in the face of attacks, the company allowed the venom to go away.”
2) The large mainstream media, including China Daily, People’s Daily and CCTV is “a one direction world,” said Mr. Mao. “But we are now in a many to many world. Even though my parents get most of their information from TV, I send them text messages via the cell phone, so the world has become less hierarchical.” There was a text message alleging that one of the owners of Carrefour was financing the Dalai Lama. Then each person has to forward the text message to ten people, otherwise, you are not patriot.
3) Bulletin Board Systems (BBS) is the dominant form of social media in China, noted Mr. Flemming. For example, 200,000 women posted 1 million messages last month on cosmetics and 300,000 people put up 5.5 million messages on autos, he stated. There are vertical BBS options such as Xcar. Mr Tangus said that smart companies are now making it easy to grab video content on their web sites that can easily be sent via BBS. Mr. Zhou added that BBS is becoming highly segmented; “there are now micro-hobbies within each hobby.”
4) Commercialism has made blogs quite sensational. Mr. Zhou suggested that “in a world where performance is based on the number of page views, bloggers tend not to be the best journalists.” He provided a hypothetical example of a BMW running onto the curb and hitting a pedestrian as a perfect blog post that would be put onto the front page of Sina.com because it plays to the stereotypes of the rich person. Mr. Mao said that mainstream media often gets story ideas from bloggers; he suggested that Beijing residents will likely complain on-line during the upcoming Olympic Games about the traffic or impolite tourists. “Social media will portray this as the non-harmonious Games.”
5) BBS and blogs are amplifiers of stories in mainstream media. “The angry youth of China made their voices heard on-line after the torch relay incident in Paris,” said Mr. Mao, then the mainstream media reflected that feeling. After the recent earthquake, most of the bloggers had to rely on the Government for information, particularly CCTV, said Mr. Chen. “Then in the relief stage, there was lots of BBS discussion, giving us a more comprehensive picture of what was happening.” The blogs and BBS helped to raise money for victims while also “serving as a place for public grieving, to post prayers for the dead.” For a special report on how the Chinese blogosphere covered the earthquake, go to CICdata.com.
6) The best Chinese bloggers are from mainstream media, said Mr. Zhou. “They use social media because they are not as closely regulated as in their regular jobs.” He cited the reporter from Xinhua who blogged continually from Sichuan Province during the visit of Premier Wen Jiabao to catalyze the relief effort. Mr. Lin believes that “bloggers consider themselves reporters now; they dig out stories.”
7) Companies are getting serious about digital spend in China. Mr. Flemming said that brands can achieve awareness through TV advertising but “to tap into consumer passions, you need to go on line.”
8) The Chinese and English blogospheres are quite closely connected, said Mr. Mao. Some of the prominent Chinese bloggers such as Tangos Chan blog in English.
9) As in the US, there is huge attention paid to celebrities in the on-line world, according to Mr. Schokora. “But most blogs are about people’s lives,” he said.
These bloggers were incredibly impressive, committed to change, convinced that they were part of a new China where individual expression and frank speaking will win. They love the idea that in Mr. Zhou’s words,”We have moved beyond the propaganda posters as the voice of the people. Now we have a platform for ordinary citizens to give their views.” They also relish the high level of involvement in social media; according to Mr. Flemming, “98% of Chinese with access to the Internet have contributed to blogs or BBS.” I would appreciate your views as always.
Richard with the Chinese bloggers
Posted by Edelman at 11:01 AM |
Comments
Very valuable post! In the USA and in Europe there is very little understanding of how the Chinese internet works, and what are the drivers of ordinary Chinese to go online, what are their interest, and the way they face with issues.
More understanding will help better analyze what it really means that the Chinese internet today is larger than the English speaking one.
Posted by: David Orban at June 14, 2008 3:44 PM
It is also interesting to explore how the Chinese government has sought to deal with the acute realization of the power and influence that digital media has in China.
China has one of the highest level of active online participation rates in the region and largest sheer number of internet users anywhere in the world. Despite past efforts to regulate the online environment, the government has come to realize the difficulty of imposing control over such a medium. Instead, they have taken to listening and learning, and the indications are they are taking what is said online very seriously indeed.
The legitimacy of the Party is predicated on the (idealized) notion that it is "for the people". Online discussion is, by its very nature, unmistakably the 'vox populi'. To achieve its stated goal of a harmonious and stable society, at a time when China is facing increasing challenges over unequal distribution of wealth, inflation and achieving sustainable development, this is not a voice the government can be seen to ignore.
And nor is it. The government's response to diverse range of issues, from Tibet, to the Japanese SDF's participation in the earthquake relief efforts, to investigations of instances of local corruption, all show them as being markedly responsive to calls online for government action.
This, in turn, encourages Chinese netizens and bloggers into believing their voice has actual power.
I think the government in China will increasingly seek to utilize social media and online communications as a tool to channel social frustrations and strong emotions among ordinary people, just as they sought to channel grieving over the earthquake.
Companies need to be aware that digital media is no longer just one limited vehicle through which to reach a certain demographic - it is increasingly a broad-based platform which impacts on all stakeholder groups - and most certainly including the government.
(Disclosure: Ilse Schache works in Edelman's Shanghai office).
Posted by: Ilse Schache at June 15, 2008 9:17 AM
Richard - Great post. Can you comment on the role of User Generated Content vs. the role of Professional content or Freelancer developed content on websites. Do you think that User Generated Content will overtake the other sources? What do you think the future of the online content 'editor' will be?
Posted by: Tom at June 15, 2008 9:50 PM
Thanks for this interesting introduction to the Chinese blogosphere. It will be great if you follow this up with a number heavy "state of social media in China" post.
Posted by: Gaurav Mishra at June 16, 2008 1:13 AM
Tom,
There is a role for both. Professional content in the sense that mainstream media reporters are increasingly using blogging as way to communicate. User generated content in personal experience, genuine tone.
Thanks for reading my blog,
Richard Edelman
Posted by: Richard Edelman at June 16, 2008 2:53 PM
Hi, good overview. Regarding 'social media' in China. If this is about citizen journalism, this is a very difficult subject (because of government rules and censorship). I do believe there are some developments, but it is difficult.
I think blogs and bbs are just two ways for people to discuss. Many discussions are hidden from the web, because they take place in IM's such as QQ (Groups). I think when one only looks at blogs/bbs/and perhaps twitters, you would overlook this important (but very difficult to research) aspect. Perhaps you did this on purpose though, to have a well defined subject.
Posted by: Thijs (Shenzhen) at June 20, 2008 12:57 PM
Thanks for the post Richard. Great info.
Allow me share a few numbers to help put a bit of context around the Chinese digital / social media landscape.
- 235 million Internet users; the largest Internet user population in the world
- Nationwide penetration of Internet usage is still quite low, at about 15%; a sign of tremendous growth yet to come
- 75% of these 235 million users are urban residents and educated
- 80% of these 235 million users are between the ages of 15 – 35 years old
- 60+ million active blogs
- 80+ million active participants on BSS forums (bulletin board system, i.e. online discussion forums)
- Of these 80+ million BBS users, 36.3% spend 1 - 3 hours a day reading/contributing to different forums; 44.7% spend 3 - 8 hours, and 15.1% spend 8+ hours; 60% will login to at least 3 BBS forums more than 3 times a week
- 3 billion registered BBS users (a single netizen can register to different forums multiple times)
- Chinese BBS forums experience 1.6 billion page views and 10 million new posts daily(!)
- 600+ million mobile phone subscribers (in Q1 of 2008, Chinese mobile phones users sent nearly 175 billion text messages)
- China is consistently adding 5 - 10 million new mobile phone subscribers a month
[The above figures are extracted from the January 2008 results of the China Internet Network Information Center's (CNNIC: www.cnnic.net.cn/en/index) biannual survey of the Internet in China. Some figures have been adjusted upward to account for inevitable increases over the last 6 months. CNNIC's mid 2008 survey results will be published in the very near future. Watch CNNIC for the latest figures.]
Thanks,
AjS
Posted by: Adam Schokora at June 22, 2008 8:23 AM
Dear Richard,
Thanks for taking personal interest in my little query.
Dear Adam,
Thanks for sharing such rich data on the Chinese blogosphere.
Regards,
Gaurav Mishra
Posted by: Gaurav Mishra at June 23, 2008 5:59 PM
“Thijs’ comment is spot on...for those who arent familiar with “QQ groups” let me provide some background. Very simply, a QQ group is a “private” online discussion forum, with a small twist. QQ groups are user-created interest groups that bring netizens together (anyone who wants to join the group...many groups are invite only though) in a single QQ instant messaging window for multi person interaction. It’s “group instant messaging,” but not a chat room. The key difference between a QQ group and a typical online discussion forum or chat room is that the “thread” / interaction / conversation is not public “on the Web”...it cannot be seen online....it’s captured only in a group members instant messaging window (which is part of the QQ software application on the user’s computer). Thijs’ point is that a significant amount of online chatter in China happens within these QQ groups that simply can’t be monitored or quantified / qualified in any real way as it’s not housed publically (as conversations on typical blogs / discussion forums are)...honest online conversational research in this channel is basically impossible. Further, the talk that happens in QQ groups is often quite open as the space is basically “safe”...talk about everything from critical citizen journalism, to “group watch” sporting fans, to how to organize offline in protest against Carrefour / “any brand”, to challenging the government, to even porn (!), etc. exists in these QQ groups....the Chinese government / Net Nanny can’t and doesn’t do much about it. Online chatter in China does indeed go far beyond just blogs / microblogging and BBS boards. Thanks for the comment Thijs.”
Best,
A j S
Posted by: Adam Schokora at July 2, 2008 1:45 PM
For those interested, the Guardian has recently published an article written by Isaac Mao about the Chinese blogosphere. Its well worth the read: http://tinyurl.com/57zny4
Posted by: Adam Schokora at August 5, 2008 11:41 PM
Post a comment
| TrackBackJune 5, 2008
A Social Entrepreneur
With Barack Obama’s hard-fought victory in a historic Democratic nominating process, the inevitable scramble for the Clinton voting bloc ensued. Both candidates, McCain and Obama, rightly reflected on Senator Hillary Clinton’s determined push for the Presidency. McCain said that as a father of three daughters, he was thrilled to have such a visible role model competing for America’s toughest job. Perhaps he was thinking about Gandhi’s comment, “To call women the weaker sex is a libel. It is man’s injustice to women. If by strength is meant moral power, then women are immeasurably men’s superior. If non-violence is the law of our being, the future is with women.” How to train the next generation of female leaders? Try this model from India.
Bunker Roy was raised in the most upscale neighborhood in Delhi. After university, he informed his mother that he intended to move to the countryside, to live with the poor rural people, to dig irrigation wells. Mr. Roy initiated night schools for young girls. According to the Nike Foundation, girls in developing countries work about six hours a day gathering wood, fetching water and tending cattle, while boys work only forty five minutes because they are going to school. Mr. Roy, who visited Edelman’s offices in New York this week, told our employees that his program has educated 100,000 girls in the past thirty years. Mr. Roy presents compelling data on his students, showing delayed marriage, lower fertility rate and better performance by next generation females. The night school children elect a representative council, including a prime minister who traveled to Stockholm to receive an award from the Queen of Sweden. When the Queen asked how this young woman, who had never been outside of her village, had such confidence, she told Mr. Roy to tell the Queen, “Because I am the Prime Minister.”
He started the Barefoot College in 1972 to train “the poorest of the poor.” He pioneered the use of solar power to electrify entire villages. His favorite solar engineers are “grandmothers in their mid 50s, because they are dependable, not liable to leave the village, and committed to the job.” Professional skills enable the women to cross traditional gender barriers; according to Mr. Roy, a grandmother told the local men that she had to stay for the planning meeting because her expertise as a solar engineer was required. The other key resource is water; in Rajasthan, there are periods of up to six years when there is zero rainfall. Mr. Roy has built the roofs of his schools to double as rainwater collection sources; the sealing of the roof is done in private by the women, who use a mixture of clay and their own urine to waterproof the facility. Schools collect enough from a single rainfall to be self sufficient for six months.
Mr. Roy gave up a promising career in business to work with young women. He did so with the conviction that he could make a difference through social entrepreneurship. In a world of constrained resources, we in the West have much to learn from the women of India, in their effective use of water and solar. He sums up his approach by quoting Gandhi -- "I live simply so others can simply live."
Please share your stories with me of others who are contributing in this manner.
Posted by Edelman at 2:24 PM |