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December 22, 2011
Highlights of My Year
January—The World Economic Forum in Davos saw investment bankers pushing back on government leaders. A particularly heated exchange between French President Sarkozy and Jamie Dimon of JP Morgan Chase comes to mind—also early commentary by Bob Diamond at Barclay’s Bank on how the period of remorse for banks must be over.
February—Howard Schultz addressed our US leadership team about the turnaround at Starbucks, giving us a preview of his book, Onward. Then I drove from Seattle to Vancouver, over the Peace Arch crossing into Canada. In Vancouver, I met a doctor who works with heroin addicts, actually giving them clean needles and a safe place to sleep as a way to combat the spread of HIV/AIDS.
March—The family goes to Peru to hike for four days to Machu Picchu as part of a group of thirteen including my brother and his wife. I slept in a tent for the first time in 45 years. The climb over Dead Woman’s Pass at 14,000 feet was challenging and inspirational. Note to self: buy a flashlight for night time so don’t have to rely on Blackberry for light.
April—Visit to India and Abu Dhabi/Dubai. In India, I went to a jewelry shop to buy a present for my wife (25th wedding anniversary). I was shown necklaces for $80-100,000—my price range was 1/10th as much. I also went dune bashing in the desert—a twenty-minute sensory overload of Indian techno-music and a constant urge to throw up due to wild gyrations of dune vehicle.
May—Delivered the commencement address to Syracuse University Newhouse School. It was my first visit to the Carrier Dome—only slightly intimidating to speak with jerseys of sports heroes Derek Coleman, Floyd Little looking down at me. Best spontaneous idea: asking parents and graduates how they heard about the death of Osama bin Laden (parents: mainstream media; graduates: social).
June—Trip to London for our global leadership meeting. One of highlights was volunteering to replant reeds in a lake in Regent’s Park. Thigh-high in water, I earned the moniker Mud Man. Also visited Oxford University for the first time, paying special respects to the much-revered Bodleian Library.
July—First visit to the Anheuser-Busch brewery. Brief pat to the Clydesdale Horses and quick sample of local fare. In 100-degree heat, cold beer just perfect.
August—My favorite two weeks of the year are in August, when my three kids are all in town. I love going to the ocean to body surf and on long bike rides followed by multiple beers.
September—I took my eldest daughter to Harvard Business School. Thirty-three years after my own graduation, I felt like a salmon depositing eggs upstream, then floating down the river again having achieved succession.
October—A fascinating dinner in the UK with media leaders. We had a long debate about objectivity versus ideology. We also had a great discussion about the ownership model of the Guardian, which has a large staff but low ad revenue subsidized by its foundation status.
November—My middle daughter’s Bowdoin College volleyball team won the NESCAC championship over Middlebury, its first in school history. I delivered the keynote speech at the 50th annual Institute of Public Relations dinner, making the case for public relations in both policy and communications.
December—A four-city trip to Singapore, Seoul, Tokyo, and Beijing. The main shopping street in Seoul is filled with luxury brands that are attracting hundreds of shoppers. In Tokyo, I spoke to the Keidanren communications group, arguing that the Fukushima nuclear disaster was a breaking point for the public’s tolerance of the nuclear utility and the government’s command- and-control approach to communication.
It has been a really busy year, but that is how I like to live—moving around the world, seeing our clients, gathering primary rather than secondary information.
I will be back after the first of the year. Enjoy the holidays.
Posted by Edelman at 9:45 AM |
Comments
That's interesting about how people heard about bin Laden's death! In this age of information overload, I actually prefer to get much of my news via friends on Facebook. It filters out the useless, insipid and merely depressing (Kardashians, small-time crime) and helps me focus on bigger news, cultural trends and, in general, discussion-worthy topics. (After all, discussion is the reason these news items are being shared on Facebook.)
Posted by: Deirdre Mars at January 10, 2012 11:50 PM
Rich,
You are a Renaissance Man... loved reading about your peaks this year. Chip Bupp is a neighbor, client, and friend-- he sent me your way. Glad to connect! Kathy
Posted by: Kathy Schowe at January 11, 2012 2:16 AM
Woo Richard Edelman,
"HIGHLIGHT OF MY YEAR"
I am so so happy about your posting,Its un......believable.you are not Richard ,you are Rich by mind :)
Posted by: Venner Tina at January 17, 2012 5:03 PM
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| TrackBackDecember 16, 2011
Fukushima: Turning Point for Communications in Japan
I have just delivered my address to the Keizai Koho Center in Tokyo. Communicators from many of the large Japanese companies were in the audience. My topic was Fukushima. I asserted in my speech that Japan is a model of excellence for the world in so many ways, from manufacturing prowess to the resilience and decency of its people when confronted by the epic disaster of six months ago.
What is not world class is the country’s institutional approach to communications. That much was evident in the aftermath of the disaster, when mainstream media, business and government failed to keep pace with events and lost the confidence of the people. The Asia Pacific Journal reported last month, “A rapidly increasing number of people, within and without Fukushima Prefecture, turned to the Internet and Twitter for information. The blogs, lectures, interviews of Koide, Takeda and Noro Mika of the NGO Bridge to Chernobyl became highly influential sources for a public that felt abandoned by mass media and government.”
The reality of today is that the people are, in the words of Edelman senior executive Richard Sambrook, formerly of the BBC, “on the field and playing in the game.” There is a new expectation of transparency, of immediacy and of clarity of purpose. It is no longer acceptable for a senior executive to go to a highly scripted press briefing with elite media, answer a few questions, then retreat into the corporate shell. The information void will be filled by bloggers covering the story from the scene.
The role of the public relations executive is to act as advisor on policy as well as strategist on communications. In fact, PR should be at the same decision-making table in the C-suite as the general counsel, the operations manager, the chief marketing officer and director of corporate strategy. All are advisory functions to the CEO with equal status; when PR is not part of policy, failure is inevitable.
I understand the challenge facing PR executives in Japan, where the culture demands respect for seniority and compliance with orders. But it is our responsibility in this changed world, with dispersion of authority and technology empowering individual expression, to fight for our constituents, the broader set of stakeholders beyond investors and government.
This is not a problem unique to Japan. In the US, PR people are often brought in at the end of the process, handed creative concepts or strategic decisions and told to “get out and spin the story.” This misapprehension of our role, the myth that PR people can, through personal relationships, magically control the outcome of stories, undermines the profession. In fact, good PR is based on good policy. The “what to do” precedes the “what to say and where to say it.” This is the essence of Public Engagement, the evolution of business as a positive force in society and the commitment of business to participate meaningfully in the continuous global conversation.
Some important Japanese companies, such as Nissan and Uniqlo, are already taking to heart this new approach to commerce. We must all explain to our colleagues in business and government that it is the time to embrace the change. To not take this road poses a far greater risk.
I attach a copy of my speech for your reading pleasure. Those of you who read my Institute of Public Relations speech from a month ago will see similar recommendations. I would appreciate your comments, as always.
Posted by Edelman at 11:02 AM |
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| TrackBackDecember 9, 2011
Singapore: The Face of Prosperity
I have just finished my second day in Singapore. It has been the usual whirl of visits with clients, an upbeat meeting with our staff, and a discussion with students at Singapore Management University (SMU). Here are my observations on the city, having last been here two years ago.
1) A Tourism Destination—Always a center for business, Singapore now has a bustling tourism sector. The main change is the opening of the Marina Bay Sands Resort (disclosure: a client), which has 2,600 hotel rooms in three towers, 51 restaurants, 330 retail shops, and a casino with 600 gaming tables. Tourism receipts grew by 49% from a year ago, up to $18.9 billion. The most important sources of tourists are, in order: Indonesia, China, Australia, India, and Malaysia. One hundred and eight (108) new meetings and conventions were held last year, up 35% from prior year.
2) Dominant HQ for Technology—49 of the 50 largest tech companies have their regional headquarters in Singapore. This is also true for pharmaceutical companies this city-state is becoming increasingly central for finance. Other interesting sectors like bio-tech and media are developing fast.
3) The Traffic Congestion Charge Works—You can get around very easily by car because there are relatively few autos on the road. Instead of having a car, the Minnesota-born professor who taught class tonight at SMU walks, takes the subway or hails a cab. New York State legislators should visit to see what should happen in New York City. The traffic congestion charge varies by zone, time of day, vehicle type, and traffic conditions.
4) The Gorgeous Mosaic—The population of more than 5 million has nearly doubled in twenty years, with 30% being non-Singaporean (non-residents or permanent residents) and the local population being a mix of over 70% Chinese, 15% Malay, 10% Indian.
5) The Blue Lights on Orchard Road—It is a bit bizarre to observe Christmas in the tropics. The main road is festooned with blue and silver lights as shoppers patronize the retail outlets. If the number of shopping bags on arms is any indicator, people have money and are spending it.
6) How to Make Government a Social Media Player—The Singapore Government is experimenting with blogging and with embassies on Facebook and Twitter—a challenge for any government. Singapore will be probably come up with a pragmatic answer on how best to engage. Interesting one to watch.
7) Concern about US and Europe—There is real confusion about the impending US election, particularly about the possible Republican nominees. There is genuine affection for President Obama, but an understanding of the impact of high unemployment on electoral politics. The European situation is viewed as potentially toxic for Asia, with fears of a repeat of 2008-9 when exports plunged. Europe is increasingly seen as less relevant as a power player and its politicians as feckless and impotent. (One person quipped, “The Lost Continent”.)
8) Southeast Asia as Regional Bloc—The increasing integration of Singapore, Indonesia, Viet Nam, Thailand, and Malaysia is creating a trading unit, a source of mobile labor, and important manufacturing export machine. Money is flowing in from the Middle East, India, and China.
9) Real Estate Boom—The price for a 2,000 foot apartment in central city is $3 million USD. There is lots of new construction so prices are rising quickly, despite plenty of capacity being created.
That is all for now. Off to Seoul on Sunday, then Tokyo and Beijing. My next blog post will be a week from today on those three important cities.
Posted by Edelman at 11:39 AM |
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HI,
Looking forward to reading your entry about your Seoul experiences!
Thanks,
Cathy
Posted by: CathyB at December 21, 2011 8:57 AM
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| TrackBackDecember 2, 2011
The Two Triangles
I was at Harvard Business School on Wednesday for a conference on US competitiveness. I took the opportunity to attend a marketing class, which happened to be discussing the Dove Campaign for Real Beauty (you may recall that Edelman was the PR agency for Dove).
I found the summary at the end of class most interesting. The professor, Vineet Kumar, asserted that the new brand management is “meaning management.” Kumar described a new marketing paradigm (the old one, taught in the 1970s to this aspiring MBA, showed the path from awareness to preference to purchase and repurchase). The new triangle, developed at Tuck Business School, still has “Awareness” at the base, the value proposition. It then moves up to “Association,” which Kumar described as “what the brand can do for me and how the brand creates fun or social approval.” At the top of the pyramid is Resonance, which, Kumar opined, “few brands ever attain. This is true engagement, with the brand becoming part of a person’s identity.”
I was pleased that he acknowledged that Dove had attained this type of relationship with its consumers. The class came to the conclusion that in order to achieve resonance, the brand has to allow open conversations around a topic of societal interest. Brands have to be willing to risk losing control in exchange for gaining credibility.
Resonance can be achieved in a parallel fashion, by using the new Topology of Influence. Jonny Bentwood and his colleague Jonathan Hargreaves have been working on a way to define influential people by their characteristics. In short, in a social network, a person should not be valued by the number of friends or followers he or she has, but by whether he or she is opening up new conversations. The Bentwood Hargreaves school suggests that PR folks find and engage with Idea Starters—people who begin the discussion on a specific topic. The best way to work with Idea Starters is to challenge them to a debate (my colloquy with Bentwood this morning was on my use of Radical Transparency versus his preference for Translucency).
The other four groups in the Topology of Influence are in order: the Amplifier, who is credible because he or she connects various Idea Starters or takes an idea to a broader group; the Curator, who acts like a librarian and peer expert in collecting and displaying conversation threads; the Commentator, who adds value by joining conversations but is a critic more than an idea generator; the Viewer, who adds value by improving search rank. This is an upside down triangle: the process begins at the narrow end of the triangle and concludes with the viewer at the wide end.
We are implementing this in our offices around the world, spearheaded by David Armano, by mapping digital influence for our clients. We analyze the conversational and search data to identify critical topics, individuals and media properties. The resulting ‘influence matrix’ is created using a variety of tools including the Edelman Level solutions. We then map visually and create content and engagement programs from analyzed data. Measurement of course is also critical and we do this my looking for ‘new signals’ generated by efforts and access opportunities for further reverberation.
Our new goal in marketing ought to be market driving—to go beyond giving customers what they want today and envisage what they might want later. To do this brands must risk being social, to co-create a meaning with customers, to share the product before launch so that it can be improved. The greater risk is to embrace the same old marketing wisdom that advertising GRPs yield consumer preference.
Posted by Edelman at 3:37 PM |
Comments
Very interesting post Richard.
I truly believe we are currently at a tipping point whereby sociology and technology are colliding enabling us to identify and engage with different kinds of influential people according to their behavioural characteristics.
Only now can we adapt messaging strategy dependent upon the kind role that someone has in the topology.
There is a perfectly valid reason why we need to understand influence. Brands and marketers have limited time and money so we must engage with the people that count in the right manner. Only of we do this can we hope to have our message spread.
Posted by: Jonny Bentwood at December 5, 2011 12:14 PM
Hi Richard,
I think the speaker at Harvard has simplified the way this is taught at Tuck. It seems to gather together some of the concepts used by Kevin Lane Keller. There's a useful summary of them at http://bit.ly/KellerBrand
Duncan.
Posted by: Duncan Chapple at December 25, 2011 2:02 PM
Great post Richard!
Personally, I think the initial concept/ idea/ discussion is paramount to the development and success of any PR campaign. It would be great if more projects involved a PR firm right from the conception stage!
I've carried a quote with me for some time now from the late Laurie Kerr of International Public Relations who stated that the process of PR could be summed up as follows: 'Attract, Identify, Remind, Inform & Sell.'
Beyond that, my conceptualization/ business model for today works as follows: Any communication needs to attract attention, then entice consumers to migrate from their current product/ service and then ultimately adopt it. I.e. Just try asking a current iPhone user to swap to another device!
Posted by: Alex Bagg at January 5, 2012 12:05 AM