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September 25, 2009
Clinton Global Initiative—Where Interests Align
I attended the Clinton Global Initiative for the past two days in New York City. It is the fifth year for the CGI, started by former President Clinton to unite business, government and civil society behind specific commitments to remedy shortcomings in infrastructure, health, human capital and access to financing. The meeting features top executives from companies (Mike Duke of Wal-Mart), government (President Obama, Secretary of State Clinton, Prime Minister Rudd of Australia, President of Chile, Bachelet, Queen Rania of Jordan) and celebrities (Bono, Julia Ormond, Jessica Alba) who reported on the progress they have made and the steps that need to be implemented in the future.
Here are some of key highlights from the meeting which illustrate how we’re moving from a shareholder to a stakeholder society:
1) Michelle Bachelet, President of Chile, said the financial crisis proved the failure of laissez faire economics. “We must change the economic and social framework to resume the effort to equalize nations in the world.”
2) Kevin Rudd, Prime Minister of Australia, said that the balance between “legitimacy and efficiency” must be regained after a period of sole reliance on efficiency. The Australian Government is making a direct investment in solar in the desert area of the country, near the electric grid.
3) Jack Ma, CEO of Alibaba, noted that he places customers first and employees second. “If investors don’t like that approach, they can sell their stock.” He announced a major foundation initiative, hoping to spur more Chinese millionaires into philanthropic causes.
4) John Chambers, CEO of Cisco Systems, said that technology companies are best able to balance executive compensation and performance “because our investment time horizon is necessarily long term. I took no salary for three years after the Internet bubble burst in 2001. But I have made it back in the last four years.” Note that Cisco Systems replaced GM in the Dow Jones index earlier this year.
5) Craig Mundie, chief technologist at Microsoft (disclosure: client), said that his company is working hard in both energy and health-care to give consumers the tools to change behavior. He cited the HOHM software, which can be downloaded for free, that enables home owners to assess their energy efficiency and make changes. The company is doing the same in health, with wireless signals from your scale and heart monitor to do a daily tracking of key statistics.
6) President Barack Obama said, “Real progress must come from the bottom up. We should embrace a new spirit of engagement, based on mutual interests and respect. Government cannot do it alone; it must rely on partnerships with business and civil society to seize the promise of this moment. We must make clear the kind of future we want to build; it is not enough simply to stop terrorists, we must change the conditions that engender terrorism.”
Edelman has made its own commitment to a CGI sponsored project, 1Goal, which seeks to mobilize athletes participating in the World Cup in 2010 in South Africa to support education for all children. We are doing a global press briefing on October 6 hosted by UK Prime Minister Gordon Brown, Brazilian President Lula, leaders from South Africa, France, Netherlands, plus FIFA head Sepp Blatter. We aim to secure financial support for FIFA’s goal of addressing the 50% of the world’s uneducated children who reside in Africa, a worthy legacy for World Cup 2010. I was on the stage today with Queen Rania of Jordan, Bono, Jessica Alba, representatives of FIFA, Intel and Cisco Systems (sometimes I feel like Zelig, the Woody Allen character who shows up in unexpected places!).
Those of us in public relations are really in the lynch-pin role to bring together companies, charities and countries to ameliorate pressing social issues. In Edelman’s Midyear Trust Barometer study, 1,700 opinion leaders across six countries stated that they expect societal concerns as important a consideration in a CEO’s business decision as investors’ priorities—data chart below. President Obama asked us to consider what each of us can do as individuals. “You don’t have to hold office to be a public servant.” Especially in these trying times, we should begin a new era of service to our communities.
Posted by Edelman at 11:49 AM |
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| TrackBackSeptember 16, 2009
A Year Later
I was standing in the dark in my gym shorts and t shirt in Rock Creek Park in Washington DC this morning at 5:45 am, ready to begin the hour long Sarge US Army style workout with 45 other middle-aged (lunatic) men and women. As I gazed up at the sliver of a moon and the stars, I recalled a very different setting a year ago as I prepared myself for prostate cancer surgery at Memorial Sloan Kettering Hospital. Walking down the hall to the operating room, I looked longingly out the window at the end of the hallway and fantasized that I flew away, miraculously cancer-free. Having indulged my imagination, I lay on the operating table, stuck out my left arm for the drip and went to sleep, awaking fully ten hours later. My wife and the surgeon told me that the operation had been a success, the cancer was contained in the prostate and I could get on with my life. Here is what I have learned in the course of the past year:
- Take a Real Break—Maybe I was lucky that the world was in such chaos a year ago with the AIG bailout and Lehman going bankrupt. Don’t work for the two weeks after surgery. You have a catheter. You are uncomfortable. You are on drugs to dull the pain so your judgment is in question. Read books, watch DVDs, take naps when the spirit moves you. When you go back to your job, start by going for half days, then going home for a nap. You will be back to full speed more quickly if you follow this approach.
- Slow and Steady—The only exercise allowed in the three months post-surgery was walking. So like Forrest Gump, I started walking and just kept walking. In the beginning it was around the block, then a half mile, then by the end of the three months, six mile walks at a decent pace. I was giddy at the prospect of playing tennis again come December, played for six consecutive days and developed severe tennis elbow, taking me out another two months. Some lessons are hard to absorb for those who are naturally impatient and hyper-active.
- There Will Be Frustrating Moments—Side effects of the surgery fade gradually. You quickly find out that downing two beers, then trying to walk home with full bladder is a fraught experience. You will put pressure on yourself to recover more quickly than the average patient, to perform in all aspects of your life. Forget it—consider this time as spring training, when you work out the kinks in your batting swing.
- Change Your Life But Only If You Want To—I have opted out of certain dinners and resigned from non-profit boards that no longer excite me. I still love long bike rides, body-surfing in the Atlantic Ocean, playing tennis, reading history books, hanging out with my kids (if they will have me) and working in PR.
- Give Back by Being Available—I got my best information before my surgery from those who had been through the process. I have spent hours on the phone with men referred to me by my surgeon or friends evaluating their options, culminating in a Wall Street Journal story which recounted my own search for best treatment option.
- Now Get Back to Work—I have a giant poster signed by people in the Edelman Washington office. My favorite quote is from Rob Rehg, who runs the unit. “Get back to work. We need you.” This pithy phrase captures perfectly my approach. You get knocked on your rear end and you have two choices; for me there was only one, get up and get going. You have to overcome your fear post-surgery. My big moment was the successful delivery of the Grunig lecture at the University of Maryland in mid-October.
- Family, Friends and Co-Workers Are Stakeholders—Keep them informed. Tell them how you feel. They will be scared to say anything for fear of saying the wrong thing. Invite them over for a visit, go for a walk, show that their concerns are more imagined than real. My favorite gift was three small basketballs from my friend George Hornig. I had each visitor in the early days sign them so I could remember their kindness forever. Here is a picture (below).
Posted by Edelman at 11:42 AM |
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| TrackBackSeptember 9, 2009
The CEO’s Dilemma; A Year After Lehman’s Demise
I had breakfast this morning with Heidrick & Struggles CEO Kevin Kelly (disclosure: friend and client). He told me about his soon to be released book, Leading in Turbulent Times, based on recent interviews with thirty CEOs across Asia, Europe and North America. Just after the fall of Lehman Brothers and AIG bankruptcy, boards asked CEOs to “hunker down” and conserve cash. There were almost no CEO changes for the ensuing six months. Now that stability has apparently been achieved in the global economy, the pressure from boards of directors for short term performance is unrelenting.
Kelly gives four principles for CEOs seeking to achieve optimal performance:
1) Be visible, to your employees, customers and investors
2) Utilize your soft skills, not just the hard ones. Learn how to be “soft” in hard times. Top performing CEOs have high Emotional Quotient, not just superb intelligence
3) Communicate, then communicate even more
4) Think long term—invest in research, top talent, new products
It is interesting to hear a top recruiter acknowledge that skills in PR are central to success for a CEO.
Kelly’s book covers common ground with the new study from the Arthur W. Page Society and Business Roundtable Institute for Corporate Ethics (http://awpagesociety.com/site/resources/awp_trust_report) called The Dynamics of Public Trust in Business—Emerging Opportunities for Leaders. After a description of the drivers of trust (mutuality, balance of power and safeguards), the report goes on to recommend five steps to re-build trust:
1) Create values for enterprise and assure adherence
2) Maintain strong relationships with mediating institutions
3) Embrace transparency
4) Explain contribution the firm makes to society
5) Work with others in your line of business to build trust (lowest common denominator theory)
How can a PR person reconcile these two pieces of intellectual capital? Recognize that trust is premised upon action and communication. Great companies are expected to deliver returns to shareholders and make a contribution to society. Trust recovery depends on cooperation between business, government and civil society (note recent Edelman Trust Barometer findings of co-dependence of business and government trust ratings—for the first time!). CEOs are important but not sufficient voices for their companies, as engagement is created by mid-level employees with serious knowledge of products and less perceived bias to exaggeration. Repetition of story and co-creation help to establish credibility of content (people have to hear, see or read a story five times before believing it—average person has eight sources of news daily). We are designing our Edelman Trust Barometer 2010—if you have any ideas for great questions, please send them along soon as we go into the field in October.
Posted by Edelman at 12:39 PM |
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Interesting findings by Kelly. CEOs are focused on trust. That's why BRT Institute is working on the issue. We thought it was significant that the academics who advise CEOs on trust are adherents of stakeholder theory and found common ground with CCOs. I'm anxiously awaiting Trust Barometer 2010 -- want to see if trust in government still lags trust in business in U.S.
Posted by: Roger Bolton at September 14, 2009 1:28 AM
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| TrackBackSeptember 3, 2009
Thomson Reuters; Building the Modern Media Company
I had a meeting this morning with Brian Rhoads, managing editor of the Americas, and Martin Howell, editor in charge of companies’ news, of Reuters News. We had a wide-ranging discussion on the competitive landscape, the new demands on the reporters and the business model following Thomson’s acquisition of Reuters. Here are the important comments made by these two senior journalists:
1) Thomson Reuters is shifting how it covers the news, and its global network allows its 2,700 reporters around the world to make connections that other news organizations no longer have the resources to do. “We are pushing for a lot more insightful analysis and greater depth, including enterprise reporting,” Howell said. This reflects an evolution in the balance of the customer base for the company, from the traditional Reuters clientele of foreign exchange traders seeking the breaking news in short form, to a wider clientele including more law firms, hedge funds, mutual funds and financial advisors. Howell was very proud of his reporters covering the Stanford imbroglio, noting that he had sent several reporters to the Caribbean to pursue the story.
2) As one of the largest multimedia news agencies in the world, Reuters is making considerable investments towards repositioning its news in an effort to anticipate the future needs of customers – many of whom are now of the Google/YouTube generation. It is focused on interacting deeply with customers through innovations in multimedia and social media.
3) As part of this effort, the company is re-launching its financial video product. There is an open beta test under the name, Project Insider, which provides the “immediacy of video while giving the manageability of text.” Rhoads went on to say that a fund manager seeking to understand SEC Commissioner Schapiro’s testimony before Congress could highlight that phrase in the text then just clip the relevant thirty seconds of video onto an email to clients. Go to http://etv.thomsonreuters.com to sign up.
4) There is a new emphasis on commentary. Well-known journalists such as Matt Goldstein, formerly of BusinessWeek, are among the columnists. There will be a team of 25 by the end of the year. Primarily based in London and New York, the commentary team also will have a presence in the main emerging economies. It will draw on Reuters unparalleled news coverage from its 200 bureaus around the world.
5) Reporters are being added or shifted to bolster coverage in Washington DC, China and the Middle East. Particular emphasis has been given to financial services, restructuring, health, and greentech. By having a capable staff in Bangalore who is expert in writing headlines, reporters in the U.S. are freed up to pursue more exclusive stories.
6) There is an increasing focus on summits and conferences. Among the topics in coming months are Russia, restructuring and the new business/government relationship.
7) Reuters has been public in its views on the evolving online news industry, often times in disagreement with other big name publishers on issues like aggregation. On Reuters.com, its primarily ad-supported consumer news site, it encourages bloggers and other news sites to link to our content. “Simply put, we believe in the link economy.”
PR people must drop stereotypes about wire services and recognize that Thomson Reuters is now the primary means of reaching 500,000 financial professionals who are subscribers to its terminals or other data services. In fact, they claim that a billion people around the world view their news every day. Make this one of your first stops on tours of media in Hong Kong, London, New York or other global capitals.
Posted by Edelman at 9:44 AM |
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Looks like it's going to be a terrific new space, Richard, congratulations to you and the NYC team!
Barry
Posted by: Barry Collodi at September 9, 2009 7:30 AM