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Seizing Opportunity From Disaster

April 10, 2009 | Written by Kathy Bloomgarden

“Never waste a serious crisis,” says Rahm Emanuel, President Obama’s chief of staff. He argues that the United States should take advantage of the urgent need to take bold action in addressing the country’s current financial situation by once and for all setting the country on the path toward energy independence, affordable healthcare, regulatory reform, and a fundamental overhaul of our education system. He makes the compelling argument that in the current environment, our long term solutions have become our immediate goals. Case in point: in 1973-74 America missed the opportunity to confront the energy crisis by continuing an energy policy based almost solely on cheap oil.

At this year’s World Economic Forum in Davos, Switzerland, Klaus Schwab, the WEF’s founder and chairman, had a similar message. “We are experiencing the birth of a new era, a wake-up call to overhaul our institutions, our systems and, above all, our thinking and our actions,” he said in his opening remarks. But we all know that change sparks anxiety. And transformational actions require broad and sustained communications.

In the current economic environment, corporate America can take steps to seize opportunity from disaster by:

  • Focusing on the basics
  • Breaking with the past
  • Moving quickly
  • Changing the mind-set
  • Communicating, even the uncertainty

Public relations is a critical tool to enable this change process, to gain alignment internally, and to explain to a company’s multiple shareholders the new strategy and path forward. We’re seeing some companies implement strategies that, in Emanuel’s words, “could not be done before.” These times require dramatic action. AMD, the chip manufacturer has spun-off its manufacturing operations to focus on high-end chip design. It is an innovative model, yet one that has met resistance. Convincing communications is key to building support for what is a breakaway approach. Ford has promised a fully-electric vehicle by 2011 that will get up to 100 miles on a single charge. This is fundamental to Ford’s long term health but will no doubt generate push-back by some interests. Outreach and communications must underpin these changes.

Corporate leaders need to be thinking of how to move ahead decisively in a world that looks radically different than it did just a few months ago. What can they be doing to grasp opportunities and to position themselves so that they will be better off than they were before the crisis began, while at the same time keeping their core business intact? In some cases, like the automobile industry, it means taking the bold steps it has long avoided, like getting their manufacturing costs in line with their competitors and making a commitment to more fuel efficient vehicles that don’t depend on the internal combustion engine invented more than 100 years ago. In others, like AMD, it means re-focusing their core business. These are all attempts to take an extremely difficult situation and turn it to long term advantage.

Every attempt at transformational change will not be successful, of course. Yet despite the disheartening, relentlessly bad economic news, it is important to remember that most American workers will not be losing their jobs; most companies will not go out of business. For the vast majority of these businesses, it will be vital to use the economic downturn to revaluate their priorities, focus on what will calm the waters now, and take smart, strategic decisions that can (via communications) build confidence and trust, leading to future growth. Emerging from the recession will depend on sound strategic steps and the initial revolutionary sparks that must be nurtured now. That’s what will, in the hopefully not-so-long-term, help drive an emergence from the current recession.

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Choose Me, Part 2

July 29, 2008 | Written by Richard Funess

The whole process of hiring someone is fascinating. For instance, the physical aspect of confronting the prospect, no matter how many times one has done it before, can be very daunting for both interviewee and the interviewer. Potential employees know why they are there. You’re facing them, judging them, rating their comments vs. those heard from others applying for the same job. Like professional boxers in the first few rounds of a fight "feeling each other out" until the opportunity comes for the applicant to strike hard with his or her best shot, delivering the strategic superlative–making the statement that turns the interviewee’s "choose me" to the interviewer’s "this guy’s good!"

I began thinking about the numbers of people I spoke to over the years. Literally hundreds. Trying to remember them. Their faces. Their peculiarities. Their stories. Their desperation. Their smugness. Their confidence. How they greeted me — shook my hand without worrying about holding it for too long or short of time. Their overall body language. And the banter: How many stories I heard as to why they wanted to leave their current job; or for that matter were out of a job and what made that happen? And then there’s the reason they moved from city X to region Y– because of a great opportunity from which they were now dying to exit!

Interestingly enough and more often than not, personal feelings surrounding their lives dovetailed with discussion of professional goals. Many times these revelations tipped the scale one way or another. How they felt about their past co-workers. How would their new job affect leisure time/personal time. How many kids they had, and dogs and cats too!

There were times, I must admit, that I obsessed over the most minute of details in order to make the right choice of a new hire. During luncheon interviews I started analyzing how they ate their food, and used their napkin. I found it important if they smelled of cigarette smoke or faked it by devouring too many breath mints…and did that really matter? I remember a few times thinking about a pretty good applicant sitting there, in a well-ventilated room, oozing copious quantities of perspiration on a very cold winter day. Would he do the same when meeting with a client? Conversely, I was envious of another potential hire who appeared cool as a cucumber when the temperature was in the 90’s and we were sitting by the pool at the Beverly Hills Hotel!

And what happens to the people who don’t get chosen? How bruised will their egos be? Will they be vindictive and when they get another job, will they smirk with glee when they hear about your firm losing a big piece of business or better yet, beat your firm in new business competition? For them, the phrase "Choose me, and see what happens", could very well be "Lose me, and see what happens!"

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Choose Me, Part 1

July 17, 2008 | Written by Richard Funess

In 1984, Alan Rudolph directed a film titled "Choose Me". It provided a lot of laughter, tears and radio talk show telephone calls to an on-air therapist. (If you have a chance you should order it on NetFlix when you’re in the mood for a great little movie.) It also provided me with an apt title for this blog.

Of the many responsibilities I’ve had in my career, the "Choose Me" experience, as I like to call it, of hiring new people, at all levels, might be considered the most trying. The titles may have been different, the responsibilities varied, the market factors may have been an issue, the use of a good executive recruiter could have made it easier, but the bottom line would be for me to choose the best candidate for the job!

What really makes one a better choice than the next? You’ve reviewed their resumes, acknowledged their impressive education, their previously held positions, listened to their thoughts on business and business strategy, received input from the internal or external recruiters (who in most cases are going to try to match the best players for your team) checked references you’ve been given by the candidate (lot of objectivity there!) done your own Google search, Facebook, etc, etc. With all those things done, is making the final decision to choose one individual over another really as objective as it should be?

In the business book section at Barnes & Noble, I perused a book entitled "I Quit, But Forgot to Tell You". One of the first lines in the book cites a survey which states that 72% of management has failed to acquire interviewing, hiring and profiling skills. But, I find the surest way of choosing the right people lies in the little things we observe about a potential employee—the things that aren’t mentioned in "How To Hire" books or business magazine features. They’re not really measurable because I believe they’re based more on personal feelings, life experiences and one’s own ego — few employers would admit to that.

(The second installment of this entry will appear next week)

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Simpatico

June 23, 2008 | Written by Richard Funess

Working with partner public relations agencies in South America/ Latin America can be exasperating or exhilarating, depending on one’s fundamental understanding of the people, culture, the accepted local business practices (which are different in each country) and most importantly, on an established simpatico between you and the agency partner. And since simpatico, is a word taken directly from the Spanish language to mean "Sharing similar temperaments or interests, and therefore, able to get along well together" its usage here is very apropos.

Simpatico– always loved that word. I liked the sound of it the first time I heard it in junior high Spanish class and derived the meaning without looking it up in a dictionary. Just got it!While it’s not technically onomatopoetic, since it doesn’t literally sound like the meaning, it did result in creating in my mind and even in my gut too, a feeling of likeability, friendship"being on the same page," if you will.

For me, there’s an inherent quality to simpatico that reflects an emotional tie and not just a surface definition. And the ability to get along with someone and understand them on an emotional level is as necessary to complete a business deal as are the bottom line forecasts and profit margins. When negotiating and working with any foreign agency partners or businesses — there’s got to exist a simpatico between you and the principal of the other agency to make it work!

If there’s simpatico, a "deal" in Latin America can be solidified and locked in by a handshake — the letter of agreement can come later;

Making a point of correcting the "English" of a Latino partner-to-be shows no sign of simpatico, and in fact can be interpreted as a sign of "American" arrogance;

Under estimating the intelligence of a potential partner because of a language barrier is anti-simpatico (an actual word in Spanish);

Having simpatico with a business partner in Latin America reflects an understanding of his or her culture, and the comfort level that results makes negotiating that much easier;

Finally, simpatico with a Latino/Latina business partner imbues trust and will lead to more joint ventures in the future.

While most of the above can relate to all kinds of business dealings in any country, it has a uniquely Hispanic flavor to it —kind of like the difference between ketchup and salsa –they both add flavor, but because of their origins the nuances make all the difference! In dealing with Latin America, the nuances of making a deal, closing it and continuing the relationship, require simpatico as the "special sauce."

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Webbys

June 16, 2008 | Written by Richard Funess

If somebody mentioned ‘Webby’ to me a year ago, I would have immediately thought of a fantastic bakery on Ventura Boulevard in Studio City (outside LA proper) which made the most incredible Chocolate Cheesecake one could imagine. This week, I got my taste of the other Webby — the leading international award honoring excellence on the Internet — everything from websites, interactive advertising, online film and video and mobile site last Tuesday night at the Cipriani Wall Street.

I found myself entertained, informed and pretty darn close to having a revelation about where the PR industry and communications in general have come and are going into the future. I was also ashamed to admit that this tenth annual event was a first for me!

And the people in attendance! One of our Digital Studio staff members rushed up to tell me that she had just shaken hands with "Will.i.am" and how cool that was! Will Iam? I thought, "Gee, what’s the founder of the pet food products company doing here? Maybe he wrote a blog to dog owners on nutrition and that was being honored! WRONG!

The majority of attendees were young enough to be my children but hip enough to fit into any crowd and hold their own intellectually. There were a few of us in attendance from the Baby Boomer generation (and we stood out like Don Johnson at a Twisted Sisters concert) wide-eyed and amazed at seeing how much in the dark we really were about current communications. But that’s when I suddenly started thinking about one of the biggest challenges facing PR agencies and sr. execs right now that will impact the industry’s future.

Getting senior managers, who have been in the business for over ten years to become fully acquainted with the newest Web 2.0-based tools, strategies, and solutions required to drive and/or assist us to handle public relations issues now and in the coming years.

After experiencing the Int’l Academy of Digital Arts and Sciences’ Webby fest, I’d say the key to this challenge is more psychological than anything else—altering the mindset and attitudes of PR "vets" so that they are fully aware of and open to ideas and techniques to reach target audiences through innovative Internet approaches. Making the challenge a challenge and not a chore–that’s what I’m talking about! Learning by not only exposing oneself to ideas of the young and bright, but actually becoming a part of the milieu, can add years to our business and personal lives.

This also requires smart hiring of X and Y-generation staff, who must be predisposed to joining in a collaborative process working with the uninitiated senior manager whose knowledge of all things digital is maybe only at Level One. "Teaching" without condescension can add years to their business and personal lives too!

Only if senior mangers realize the benefits of incorporating Web technology and current methodology into their agency’s new business initiatives will they be comfortable enough and receptive enough to work with the younger "screen junkie"generations to "sell-in" program tactics based on online strategies to current and new clients.

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