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Archive for the ‘Communications effectiveness’ Category

Toyota’s Safety Muddle Signals Need for a New Era of Trust Communications — Not the Crisis Communications of the Past

Monday, February 8th, 2010 by John Mallen

On Jan. 27, The Wall Street Journal reported that Toyota Motors’ President Akio Toyoda is worried about how the growing safety recall of more than 8 million vehicles will affect the company’s reputation for quality. Just yesterday, the Bloomberg Business Week’s Insider Newsletter editor Katherine Davis reported that he’s ducking the press as he swishes cockails with the global elite in Davos. “You can’t buy this kind of publicity - nor would you want to.”

Being in the publicity business, I have been drawn to Toyota recall reports like a bug to a bulb on a summer’s night. After all, we in the PR business are always probing “crisis communications” and explicating how they were carried out and what we could have done better. Truth is, crisis communications, crisis management and similar terms are proven to be some of the most popular Web searches for PR. Toyota is on its way to being one of the “big ones” when it comes to crisis commuincations, right up there with Tylenol for J&J and Bhopal for Union Carbide.

What’s surprising to me is how a corporate icon for quality, embracing notions of consumer safety, fell so low. I saw a similar display in the late 1970’s as our client McDonnell Douglas avoided confronting media questioning what was going on with DC-10 aircraft falling out of the sky. We’d been working on behalf of the company after the issues with cargo doors were resolved, when DC-10s around the world were grounded following the crash of American Airlines Flight 191, killing 273 people. Unwilling to discuss details after the bloody negative publicity earlier in the decade, I recall pleading with our account director who was at headquarters as I held The Wall Street Journal’s aviation writer on the other phone threatening to “go” to print with a page one-article based on comments he had gathered from outside the company. It was a dramatic example of, “If you don’t speak for the company they [critics] will.”

That was my PR indoctination into the rules of engagement for crisis communications — a set of principles devoted to guiding institutions away from garnering even worse public opinion and, sometimes, even helping them deflect the blame. Some of this deflection may be underway as information from Toyota points to the flaws being in materials from CTS of Elkhart, Ind. which are used in the brake systems.  Deflection doesn’t really work. In  the end, the best crisis communicators help companies navigate through stormy waters, without sinking the whole ship. I think there is another, more basic role that communications can help with.

Total quality?

What happened at Toyota?  Having gone through years of B2B communications for many manufacturers, Toyota’s “total quality” focus had become legendary and highly respected.  How many hours have I sp

ent with clients from around the world talking about Kaizen (continuous improvement), Kaiban, Genchi Genbutsu (go and see for yourself)?  All of these are more or less part of the larger Toyota Production System (TPS) which led to the company being a hallmark for quality writ big. I recall some years ago receiving a call from a senior VP at then AlliedSignal, telling me one of his businesses had received an award fro

m Toyota for quality and being asked to stiumlate coverage in the Wall Street Journal. The fact is the Journal, as a matter of policy didn’t cover awards, but this was the exception — an all-American brand being annointed by the global leader in quality!

Dig into the Toyota legend and you’ll discover a systematic and passionate commitment to improvement of the product and the production process. But what is going on that such a premier global leader in one of the most competitive economic segments could find itself as today’s successor to the likes of GM (and the Corvair) and others of the mighty American motor industry featured in Ralph Nadar’s “Unsafe at any Speed” blockbuster of 1965?

Too big to care

How does such a great company like Toyota, with an intense focus on quality, find itself skewered in public opinion on the issue of safety?  After all, safety would seem to be a strategic byproduct of safety. Indeed, the issue is not over unsafe designs of the 60s, like chrome dashboards that cause injuries in seat-beltless vehicles. These are brake components that allegedly don’t work all of the time.

The root is far more profound than the CEO cowering in Davos versus confronting the media (though he should have been more up front). The root is an internal view, a culture that has reacted slowly to reports of safety failings, as reported in the New York Times. They have gone a little “safety deaf,” Transportation Secretary Ray LaHood said.

We in the PR field can help companies set the record straight, as the latest television commercials from Toyota attempt. We in advertising and marketing communications can attempt to shift the attention of consumers from the economic havoc of the past two years to the potential of the future under the guidance of smarter and wiser investor advisors. We can help try to focus attention on one or another perspective in a health-care debate that seems to have more revolutions than Macy’s front door in the peak holiday shopping season. But we cannot affect the fundamental business problem.

The culture of insititutions that take strategic aim at the perpetuation and growth of these organizations may, along the way, have lost touch with the basic purpose of the business and the customers they were founded to serve.

The foundation of trust

A recent PR forum ask people in the practice to come up with ideas about how to restore trust in our institutions. My take is that the communicators can no longer successfully serve their organizations with reactive crisis management campaigns. We need to move in a more fundamental way. Toyota’s recall problem was only a blip, if that, when the trust question was raised. I said then and still believe that the issue of trust cannot begin with a PR or advertising campaign.  It must begin with the culture within an organization, and with that culture enabling members to speak out and be heard when a quality or safety issue is first observed. Such a culture begins with the customer in mind. How does what the company is doing affect those who buy and use our products?

The new role of communications

Professionals like me are hired to help our companies or clients put their best foot forward. Looking to an increasingly competitive future with growing complexities from the integration of advanced technologies, and the new needs to care for the environment and sustainability, I suggest that communications must place an intensive focus on fundamentals — including the fundamental of giving employees a voice, an opportunity to use their voices, and a cultural freedom to hold the organization accountable to its principles.

Feedback

Friday, February 5th, 2010 by John Mallen

Looking into SuperFreakonomics,” the “explosive follow-up to Freakonomics” we receive this wisdom from the authors: “Good feedback is hard to come by and extremely valuable. Not only did we receive feedback on what we’d already written but also many suggestions for future topics.”

Authors Steven D. Levitt and Stephen J. Dinner are reflecting in essence on an enterprise that began as a partnership where the economist (Levitt) and writer (Dubner) began packaging stories that illustrated and underscored a law of economic behavior which says people respond to incentives, though not in a predictable way, thus ushering in the “law of unintended consequences.”

Indeed, as they explain, the book was published before these powerful laws were associated with the freaky way people behave.

The outcome led to great ideas e-mailed in from readers. The book’s success also led to a strategic by-product – the authors as (paid) speakers on the lecture circuit and, in that context, to more reader recommendations of content for number two

These suggestions from readers brought about an enrichment of the content in book number two, which the authors claim to be better than book number one.

They claim to benefit from the economic phenomenon of cumulative advantage – “that is the prominence of our first book produced a series of advantages in writing our second book that a different author may not have enjoyed.”

So the lesson is about the value that arises from listening is bigger than the value of using the feedback to tune your operation so every year you get better and better – like Toyota does. In addition, you can get strategic by-products like the authors’ speaking gigs – the readers came to them – and useful ideas for a new-generation product or service.

The key point – it really pays to listen!

Obama Overexposure for Health Care Reform? Naa! It’s All About Frequency

Monday, September 21st, 2009 by John Mallen

11-21-09 NYTIn marketing frequency holds a lofty position as a key factor for effectiveness. Frequency is  the number of times a consumer needs to see your ad before they recall an buy.

I mention this because on September 20th virtually every pundit I’ve heard has hinted that President Obama may suffer from overexposure. 

Following a number of news conferences since January, multiple appearances on television interview programs, the President appeared on five different public affairs shows yesterday, and tonight he appears on David Letterman.

Of course all of this aligns with his goal of selling comprehensive health insurance reform.

The question of overexposure has to do with a struggle of the Mainstream Media to understand their own roles in an era of sea change in media and communications.  No longer is MSM the interpreter of developments for us - - at least in this case.

President Obama is using the MSM as an advertising media, speaking directly to the citizenry.  Not once, not twice … But clearly as he delivers consistent messages that are successively relayed on these networks and by other media who cover the President’s every major action.

So how many times do you have to repeat the message to get people to buy? At least three, but maybe seven, 17  if you are on line and, well, maybe up to 20 times.  These stats are well explained by Aussie blogger Bryan Ong in “A Marketing Blog by Marketing Journal” in a great 2006 post and another in 2007

My take?  What’s in play is an PR campaign driving frequency for the President’s main points.  He doesn’t need to buy air time.  But the message is direct from the country’s CEO to his electorate  ( who in turn can place extraordinary pressure on the directors, that is to say Congress)

What’s the message for those of us in the ” real world” of tight budgets, scarce resources and limited time?  The answer is more than the enduring value of frequency itself.  Even more  significant in the President’s campaign is an underlying two-step strategy. Get the out in your voice, accurately.  Then let it go viral.

To take the message public, perhaps you and I cannot command time on Sunday public affairs programs.   But you and I can publish on the Web in our own voice and with accuracy.  And we can take it viral.  I’ll post more on the Web opportunities in a future blog.

 Image from The New York Times, Sept. 21, 2009

Describe Yourself!

Wednesday, August 26th, 2009 by John Mallen

I have just been led to a compelling piece “How the Leading Social Sites Describe Themselves” by Steve Rubel. Steve’s piece is worth reading, but his view applies to far more than the social Web, and touches on a favorite peeve of mine.

Rubel’s blog follows his return to the City from the Bay Area where a high penetration of Digerati (I love that term) is accompanied by a parochial focus of these tech-savvy folk, as evinced by how popular social Web sites introduce themselves. It really would be difficult for someone who is not a member of the cognoscenti to make an intelligent choice from among Twitter, digg, Friendfeed and others.

I find the same condition far too often in too many places. Take trade shows, where in my experience the more high-tech the exhibitor the more undifferentiated their presentations. Glitzy to be sure. Clarity of what they are, not much. The same carries over to brochures, videos, Web sites and other marketing materials. You really need to dig to understand just what they’re about.

I’m with Steve Rubel. Describe yourself! It’s job No.1 for any customer facing activity.

Need help? Just call us or any of our 39 colleague firms in the Public Relations Global Network.

How to drive business development for small business

Friday, January 30th, 2009 by John Mallen

How do you drive business development for your small business?

There are numerous sources of business ideas. Many are excellent and proven. I want to bring your attention on one tool we all use — but too often left to fend on its own — communications.  Call it advertising, promotion, public relations (PR) or anythiong else. But all of these are in the communications bucket. In small business (and often larger ones) communications is the empty seat at the leadership table. But it is a powerful success enabler.

“Okay,” you say, “let’s get out there and run some ads.” Let’s get a promotion going.” Not necessarily bad, not necessarily good either. What you need to start is a business strategy which is well-supported by a communications strategy. Let’s take it by the numbers.

First — be clear about your business strategy. If you have been moving along from one year to the next, stop. Take stock of where you stand, what you want to achieve and how you will get there. All this sets the foundation.

Second – market research. This can be as simple as listening well to customers or asking questions of customers and prospective and listening to their answers. Market research could be results of a highly sophisticated study conducted by your trade association. It could be as basic as having your people ask a similar set of questions of everyone they deal with for a period of time, and systematically analyzing what they say. Research means understanding the context of your market, the dynamics affecting behavoirs and the impressions shaping opinions about your firm or the future.

Third — explore how communications can work in the marketing environment to accelerate your organization’s stratgegy and its progress toward realizing your goals. Central to success here means stepping away from tendencey to type cast marketing communications, and in, “Let’s get out there and run some ads.” Ads to do what?   Knock on the door of your customers’ attention to get awareness, share of mind, or generate traffic. Understanding how communications can contgribute to your business strategy means setting communications goals and developing a strategy for communications — all in support of the business growth plan.

Fourth — do it. Create an affordable, executable plan of action. Using one communications tool effectively is far superior to using a set of tools that fail to achieve, because you cannot achieve the frequency needed, or they don’t reach the right people, or any of dozens of reasons these efforts so often fail.

The greatest cause of failure is the fixation on the tools that we personally understand and find appealing versus the tools needed to drive the strategy — if there is indeed any strategy at all.  These four steps can be extremely difficult to execute with any discipline, especially when you’re taken with the daily challenges of running your business. Being so close to your business does not provide the vantage you need to move effectively from step one to implementation. If you can, it would pay you to enlist the support of a professional or a small brain trust of advisors to help you set the course.

The most citical professional support initially is not the development of an ad or drafting of your press releases. These skills will make sense, but only once you have identified a strategic plan for communications. In many cases, it would be preferable to execuite simply so long as it is focused and sustainable. By this I mean having one well-targeted promotion, or driving awareness through one well-aimed direct marketing ad campaign.

Communications is one means of driving devbelopment for your small business. Following these steps will ensure that whatever communications you deploy drive success.

The Personal Touch Counts

Monday, March 31st, 2008 by admin

 Today I was browsing in our small, comfortable library perched on rise that overlooks the Hudson River — perfect for book people, especially on a day with  light rain from gray skies, the last huff of a winter only recently officially surpassed by daylight saving time and the equinox. I noticed faded maroon covers of The Harvard Classics, and found myself drawn to Vol.39, Prefaces and Prologues“No part of a book is so intimate as the Preface. Here …the author descends from his platform, and speaks with his reader as man to man, disclosing his hopes and fears, seeking sympathy for his difficulties, offering defence or defiance, according to his temper, against the criticisms which he anticipates.”I like the fact that the personal character of of the prefaces and prologues made it into “the most comprehensive and well-researched anthology of all time … both the 50-volume “5-foot shelf of books” and the the 20-volume Shelf of Fiction,” writes on-line publisher Bartleby.com The Harvard series was compiled by retired Harvard University President Charles W. Eliot, LLD and English professor William A. Neilson and published by Collier between 1909 and 1917. “Together they cover every major literary figure, philosopher, religion, folklore and historical subject through the twentieth century,”continues Bartleby.Hmmm. Prefaces. They are like blogs, not as egalitarian maybe, but quite personal. They are not Facebook personal, but they are publication-bound personal.That personal touch is enormously valuable and persuasive in every form of communications, including marketing.

Words Pull

Tuesday, February 26th, 2008 by admin

courtesy-ronald-reagan-library.jpgFor sometime now, I’ve seen our clients succeed by relying on the power of the “word”.  Words communicated through voice and writing, are often supported by images, graphic, and the surrounding context of events.  At the root is the notion and concepts that we hook to words, and the emotional power they have.  Thus, in addition to reporting information, words tug at us; they inspire (or repel) the human spirit.  This is eloquently presented in today’s Wall Street Journal by Stephen F. Hayes, a senior writer for The Weekly Standard Candidate Ronald Reagan used “… words that move and uplift, that give hope to the hopeless. These words inspired millions of voters nationwide to join the grand experiment called democracy, casting votes Sen Barack Obamafor their candidate, their country, their destiny.”  (“Obama and the Power of Words,” February 26, 2008; Page A19) Hayes’ point is the competition missed , even mocked the power in candidate Ronald Regan’s words and the same may be taking place in the GOP’s reaction to candidate Barack Obama,  where the unassailable power of words  rich in compelling, high-purpose concepts are taking significant market share from the pragmatic execution-and-implementation opposition. Lesson: words pull. The deeper they touch the human spirit, the more powerful the effects.