strategic comms nyu spring 2014
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Strategic Communication
Mark MisercolaMarch 2014
“Mr. Magoo Effect” (Guerilla PR
Wired)
- We’re all overwhelmed by information- 10,000 messages today vs. 1,000 in 1983- What we think we see or hear is really
something different- Comprehension is vague
Environmental Factors
• Mr. Magoo Effect is compounded by “Data Smog.”
- Brain capacity is inundated- Can only recall sound bites …
not all of it is accurate
• We’re making decisions based on bits of information that mesh with pre-conceived beliefs or perceptions.
Environmental Factors
• Confidence in business leadership is at an all-time low
• Employee surveys consistently rank communications and lack of faith in senior management among the top concerns.
The Fallout
• Businesses that communicate poorly do not perform as well as those that do:
- Effective communications can add up to 3% to ROI
- Poor leadership communications is a competitive disadvantage
• Top talent gravitates to businesses that have great leaders and leadership communications.
The Cost
• Companies with better reputations:
- Pay less for supplies- Are treated better by the media
(better than free advertising), fare better during crises
• Accrue benefits that actually enhance profits
- Market capitalization is often higher
- Reputational capital (“goodwill”) is stronger and can be a competitive advantage
The Fallout
How do we effectively manage and enhance corporate reputation in a business world where audiences are
overwhelmed, highly skeptical and difficult to reach?
The Central Challenge
The Answer
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Answer is part:
•Performance•Behavior•Communications
Chapter 1Reputational Management
Chapter 1: Reputational Management
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Reputation = Performance (P) + Behavior (B) + Communication (C)
Chapter 1: Reputational Alignment
Chapter 1: Companies that Paid the Ultimate Price
Establish a formal mechanism to periodically monitor, measure and manage reputation.
Page 14
Chapter 1: How do you effectively manage reputation?
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Chapter 1: 10 Precepts of Reputational Management
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• Know and honor your organization’s intrinsic identity (J&J)
• Know and honor your constituents (do not presume to know what’s good for them – GM, Red Cross)
• Beware conflicts of interest (Arthur Andersen/Enron)
Chapter 1: 10 Precepts of Reputational Management
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• Beware of “CEO Disease” – inability to see/manage looming problems (BP)
• Do not lie (Nixon, Clinton, Martha Stewart)
• Reputation is an asset that must be managed like any other.
Chapter 1: Expanded Reputation Formula
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Authenticity counts – to be authentic requires integrity.
Chapter 1: Expanded Reputation Formula
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• Authenticity counts – to be authentic requires integrity.
Reputation = (Performance + Behavior + Communication) x Authenticity Factor
• Understand and value the components of reputation.
• Establish a formal mechanism to periodically monitor, measure and manage reputation.
• Assign oversight to senior officers.
Chapter 1: Best Practices
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Chapter 2Ethics and Communication
“Communications take place in a climate of belief. Effective persuasion over time requires not merely truthfulness but
intentionally about truthfulness.”Page 39
Chapter 2: Ethics and Communication
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“Leadership is a relationship between those who aspire to lead and those who chose to follow … success in leading is wholly
dependent upon building and sustaining those relationships that enable people to get extraordinary things done on a regular
basis.”
Page 33
Chapter 3: Leadership is a Relationship
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Chapter 2: Ethics and Communicating
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Richard Nixon, Watergate
Chapter 2: Ethics and Communicating
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Bernie Madoff Ponzi Scheme Lance Armstrong, doping
Chapter 2: Ethics and Communicating
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Chapter 2: Ethics and Communicating
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Chapter 2: Ethics and Communicating
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Bill Clinton, Monica Lewinsky, 1998Madonna Nude Photos Scandal, 1985
“Increasingly, corporate communications departments are seen as the conscious of a company, and play an important
role in helping a company behave ethically.”
Page 60
Chapter Two: Ethics and Communications
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High Road
• Always tell the truth and do what’s right• When you’re wrong admit it, beg for forgiveness• Fire/punish those responsible• Put in place a system to detect, monitor and promote
ethical behavior.
Chapter Two: Ethics and Communications
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Less than High Road (Madonna Approach)
•Acknowledge the problem and admit nothing •I don’t have a problem with it, you do!•My family is off limits•Go to rehab or detox• Come back in six months and no one will remember • Cautionary note: Works well for top celebrities but not
corporate executives.
Chapter Two: Ethics and Communications
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Chapter 3Media Relations
Chapter Three: Media Relations
• Media relations is one PR’s core disciplines and often one of the most visible.
• The most prized of all communications skills and those who have excellent media contacts/ relationships get more job offers.
• One of the most difficult for senior management to understand.
Chapter Three: Media Relations
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Chapter 3: Media Relations
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• Encompasses how an organization interacts with the media including:
- Building long-term relationships with members of news media.
- Managing ad hoc contact with reporters who call the company for first and only time.
- Proactively seeking media coverage and responding to requests for information.
- Developing procedures to measure, monitor and manage contact between employees and media.
Chapter 3: Media Relations
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• When story turns out well, media rep is a hero.
Chapter 3: Media Relations
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• When story turns out badly, media rep usually takes a hit.
• Med rep needs a support boss
Chapter 3: Media Relations
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• The best media relations professionals are advocates in two directions:
- They clarify and focus the organization’s viewpoint for news media.
- Also help management better understand the reporter’s intentions and whether to engage with him/her.
• Friend or foe?
Chapter 3: Media Relations
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“A big part of the media relations person’s job is to figure out what the journalist’s perspective is. If the perspective is favorable and accurate, reinforce it. If unfavorable, try to understand why, and
then deal with the problems and issues.”
Page 87
Chapter 3: Media Relations
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• Journalists need media relations professionals more than ever to help fill news hole.
• Trusted media relations pros are invaluable.
Chapter 4Social Media
Chapter 4: Social Media
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“The collection of software that enables individuals and communities to gather, communicate, share, and in some cases
collaborate or play.”
Chapter 4: Social Media
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“Social media has become a fundamental and widespread part of how people and organizations communicate and participate
online.”
Chapter 4: Why Social Media Matters
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Chapter 4: Why Social Media Matters
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“With social media, anyone can create and distribute content online easily, quickly, often freely (or cheaply), and with little or no technical know how. With social media, people can connect with organizations and
each other in ways that were limited or not possible before.”
Chapter 4: Why Social Media Matters
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Chapter 4: Social Media
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Enables Conversations
Chapter 4: Social Media
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Encourages Collaboration
Chapter 4: Social Media
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Fosters Engagement
Chapter 4: Social Media
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“Social media does not replace most other forms of communication; it
complements, expands and enriches organizational communication.”
Chapter 4: Social Media Characteristics
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• Authenticity: people want organizations to communicate as they would in conversation.
• Transparency: Organizations must be more transparent on social media and willing to field/deal with complaints in a public forum.
• Two-Way Conversations: Favors bottoms-up information flow, instead of top-down.
Chapter 4: Social Media Characteristics
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• Speed: Social media favors those who respond quickly and honestly.
• Collaboration: When used correctly, social media is great relationship building tool.
Chapter 4: Social Media
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“The collection of software that enables individuals and communities to gather, communicate, share, and in some cases
collaborate or play.”
Chapter 4: Social Media
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Chapter 4: Social Media
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Chapter 5Organizational Communications
Chapter 5: Aligning Employees with Organizational Interests
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“A 2007 study by Brodeur Partners and Watson Wyatt found that across organizations, only half of managers described
themselves as knowledgeable about how their company wants to project itself … and less than half said their company enabled
them to take action to deliver the brand support the organization’s reputational interests.”
Page 137
Chapter 5: Aligning Employees with Organizational Interests
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“Companies that solve the problem and succeed in creating alignment can expect to see increased discretionary effort,
retention of top performers, and overall financial performance.”
Page 137
Chapter 5: Aligning Employees with Organizational Interests
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• Aligning and engaging employees in support of reputational interests must be leader driven and led.
• Senior leadership must own the process.
• Requires support functions to participate (Comms, HR, marketing, compliance, etc.)
• Must get attention of employees.
John Chambers, Cisco
Chapter 5: Aligning Employees with Organizational Interests
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• To align employee behavior with reputational interests …
- Communicate aspirational goals, values
- Clearly communicate practical rules and tactics
- Engage employees in dialogues
John Chambers, Cisco
Chapter 5: Aligning Employees with Organizational Interests :
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Three keys:
• Consistent, simple messaging
• Personalized messaging• Alignment and
dissemination of messaging across platforms.
Chapter 5: Aligning Employees with Organizational Interests
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“ … through our internal tracking studies in dozens of organizations, we discovered … a phenomenon we call the ‘puke point.’ It refers to the point in time that leaders become so sick of staying on message (and hearing themselves repeat it) that
they ‘want to lose their lunch.’”
Page 151
Chapter 5: Aligning Employees with Organizational Interests
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“ What’s remarkable is that this point in time frequently coincides with an upswing in employee understanding of and engagement around the strategy. In other words, it’s important for leaders to
stay on message even after they’re sick of doing so because that’s … when employees are just starting to truly get it.”
Page 151
• People are more likely to act to solve a problem if they know they only need to do one thing.
• “Single action bias.”• When you need to create
urgent action, don’t ask everyone to do 20 things.
Chapter 5: Aligning Employees with Organizational Interests
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To align employee performance with reputational interests …
• Provide a message with which everyone can align.• Stay on message (in words and actions).• In tough times, rally employees around a cause that they can believe in.• Don’t let employees practice on customers – rehearse them before the
customer encounter.
Chapter 5: Aligning Employees with Organizational Interests
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Chapter 12Crisis Communications
• No two crises are ever exactly alike.
• Every organization at some point will be on the receiving end of an event that risks reputational damage.
• Effectively managing a crisis response can enhance a reputation and be a competitive advantage.
Chapter 12: Crisis Communications
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• Most business don’t manage crises effectively.
• In a crisis, the absence of communications is your biggest enemy.
• Most business leaders have to learn the hard way …
Chapter 12: Crisis Communications
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Chapter 12: Giuliani, press conference 9-11
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Chapter 12: Crisis Communications
• Reacting quickly is essential to protecting a reputation in a crisis.
• The organization that moves first usually wins.
• Golden Hour – early phases when opportunity to influence the outcome is greatest.
• Incremental delays have a greater impact on the likelihood of success.
Chapter 12: The Need for Speed
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1. Ignore the problem 2. Deny the severity of the
problem3. Compartmentalize the
problem to contain it4. Tell misleading half-truths5. Lie6. Tell only part of the story7. Assign blame8. Over-confess9. Panic 10.Shoot the messenger
Chapter 12: 10 Avoidable Missteps
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• Tell it all• Tell it fast• Tell them what you’re going
to do about it• Tell them when it’s over• Get back to work
Chapter 12: Control the Agenda
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1. Ignore the problem 2. Deny the severity of the problem3. Compartmentalize the problem to contain it4. Tell misleading half-truths5. Lie6. Tell only part of the story7. Assign blame8. Panic 9. Shoot the messenger
Chapter 12: 10 Avoidable Missteps
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• Pay attention to rumors.• Work to eliminate them as
quickly as possible – within first 45 minutes.
• Best approach: Dispel them or don’t comment (litigation)
Chapter 12: Dealing With Rumors
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45 minutes
• You have maximum influence over the outcome.
Chapter 12: Critical Points in the News Cycle
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6 Hours
• Once story crosses a wire service, is broadcast, or becomes subject of social media, it is out of your control.
• Can still be managed but at reputational cost.
Chapter 12: Critical Points in the News Cycle
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Three Days
• Once printed by newspapers, expect story to be alive for several days.
• Sustained reputational damage.• If not controlled, expect two
weeks of negative coverage.
Chapter 12: Critical Points in the News Cycle
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• Expect continuous coverage• Rumors accepted as fact, perception becomes reality.• Reputational damage is unlikely to recover from extended of scrutiny.
Chapter 12: Critical Points in the News Cycle
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Two Weeks