January 11, 2010 7:33 pm : Comments 000
There is no retailer I admire or trust more than Nordstrom. My fervent loyalty stems from a favorable experience years ago when a menswear department manager voluntarily refunded the cost of a suit after I complained about premature wear. I had bought the suit a year earlier, didn’t have a receipt, and there was no record of my purchase in the computer. I was so impressed with the store’s sense of accountability, I felt compelled to buy two suits. I have pretty much shopped at Nordstrom exclusively ever since, and now carry the retailer’s loyalty program Visa card. Without question, the goodwill and repeat business generated by that refund far outweigh the latter’s actual dollar cost.
On the service and value front, Charles Schwab is quietly becoming the financial services industry’s closest equivalent to Nordstrom. But they’re not entirely there yet, and founder Charles Schwab would be wise to take a closer look at the customer service playbook of Blake Nordstrom, the CEO who runs the retailer that bears his surname. (While Schwab is no longer CEO, he remains chairman and apparently is active enough in the business to command more than $3 million in annual compensation).
Although I maintain some of my assets with Schwab, I readily admit that I am highly distrustful of the company. Allow me to explain the paradox.
My relationship with Schwab is currently limited to plain vanilla bank products where I’m certain I have virtually no risk (or at least the faith and backing of the U.S. government). I would never buy an investment product from the firm because, unlike what I’ve learned to expect from Nordstrom, I do not trust Charles Schwab to stand with integrity behind the products they push.
In the past few years, Schwab has unloaded some highly dubious products on its customers, including quasi money market funds called Schwab YieldPlus and long-term bonds known as auction rate securities. Schwab faces class actions suits relating to the sale of its money market funds and has been charged with Martin Act Fraud by New York Attorney General Andrew Cuomo for peddling the auction rate securities. (Important Disclosure: S&A represents an attorney who has a case against Schwab relating to Schwab YieldPlus. That said, the comments in this blog post represent my thoughts and observations and are mine alone).
My outrage and lack of confidence in Schwab is not simply that it sold the money market funds and auction rate securities, but rather its failure to do right by clients who allegedly were misled. While most of Schwab’s competitors have settled with regulators and reimbursed their clients for losses relating to auction rate securities, pass-the-buck Chuck is following the old-school Wall Street strategy of saying the clients were entirely to blame: “Roughly 90% of the clients who invested in (auction rate) securities came to Schwab asking us to locate and make available these investments for them,” Chares Schwab wrote in a Wall Street Journal op-ed last August, emphasizing his firm “never guaranteed individual success.”
While that may be true, customer service is not simply about written guarantees, Chuck. It’s also about ensuring your customers view you as trustworthy and reliable.
People shop at Nordstrom because they can do so with confidence. If something goes wrong with a purchased product, there’s little if any doubt that the store will do the right thing when you bring the defect to their attention.
In truth, when it comes down to the fundamental principles of effective brand management and customer service, it really doesn’t matter what you are selling. As Donald Porter of British Airways once aptly put it, “Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong.”
So why didn’t Charles Schwab do the right thing with respect to making customers who essentially were sold defective products whole again? Perhaps the lawyers deemed doing so too great a legal risk.
While that stance may have a significant upside in the courtroom, it will not be without a significant downside cost elsewhere. By not stepping up as other firms have done (voluntarily or otherwise) to make allegedly misinformed product purchasers whole again, Charles Schwab will squander immeasurable current and potential client goodwill and badly undermine the impressive work of those responsible for creating Schwab’s Nordstrom-like experience.
In truly world-class organizations, the legal and marketing functions do not operate as separate silos, in good times or crisis, and a measured balance is routinely struck between their sometimes conflicting interests – and for good reason. After all, the only ones to ultimately benefit from letting Legal call all the shots are, well, the attorneys themselves.
Customers have talked, Chuck. Perhaps it is time you started listening.
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October 10, 2009 9:30 pm : Comments 002
I avoid one-actor plays as I typically require a developing plotline and the interaction of multiple characters to hold my rather limited attention span. But I saw a one-actress play this week that has been weighing on my mind and not just because of its incredible intensity. The show reminded me once again as to why you should never judge a book by its cover.
The play is called “Guido Girl,” a coming-of-age musical memoir about Marianne Ferrari’s struggle to escape her oppressive adolescent life in the Bronx and realize her dream of becoming a Broadway star. Ferrari is an amazingly talented actress with a host of impressive theater and television credits, which came as a big shock to me when I read the program guide. Ferrari also happens to be a Pilates instructor at the midtown Manhattan studio where I train, and based on just a few good morning pleasantries, I always perceived her as being a rather shy and soft-spoken woman, albeit one with a very beautiful smile.
Turns out, Ferrari is anything but soft-spoken and her inimitable smile masks a rather troubled past. Ferrari is one of four children of Italian immigrants who arrived on the shores of New York harbor on the Andrea Doria a year to the day before it sank on July 25, 1955. Her parents would hardly be model candidates for a profile in Parenting magazine – her mother made her endure such indignities as pointing out which child was responsible for each Cesarean scar. Her father pointedly told “Marriana” she was washed up at 15 and blamed Ferrari and her siblings for his failure to become an opera star. So much for the stereotype that Jewish parents are the true Olympians when it comes to laying on the guilt.
Ferrari has a deft ear for foreign accents, and her imitation of her Scottish music teacher alone is worth the price of admission, though I found the simulation of how he ultimately sexually exploited her unsettling. Ferrari boldly shares some of her most humiliating childhood moments, like how Michael Meade dumped her because she was such an awful kisser. Fortunately, a more experienced girlfriend named Desiree taught her the ropes. And then there was Fifo, the career aimless boyfriend who took her virginity but had nothing more to offer than good sex.
Ferrari eventually found her way to California and embraced est and various other self-help programs for lost souls. Despite her painful childhood memories, she returned home 12 years later to help take care of her father, who was ailing with cancer but eventually beat the disease. Although its quite possible I just missed it (I often miss critical parts of plays), my only disappointment with the show is that Ferrari doesn’t share whether her parents are still living. While I’m certain they would be quite proud of their daughter’s acting and singing talents, I can’t imagine they would love her portrayals of them.
What is most remarkable about “Guido Girl” is the sheer physicality of Ferrari’s performance. She is in constant motion the entire 80 minutes she is on stage, climbing on blocks, contorting her body, and impersonating men and woman of all ages and nationalities. If not for her advanced Pilates training, I strongly doubt Ferrari could muster the stamina to do the show multiple evenings.
“Guido Girl” is alternatively hysterically funny and painfully sad, and I strongly recommend seeing the limited engagement show. And if by chance you are in the market for some top-notch Pilates instruction, I urge you to sign up for some lessons with Ferrari at the Equinox Fitness Club on Park Avenue, where, incidentally, the Pilates teaching standards are decidedly among the highest in the country.
You’ll have no problem finding Ferrari. Just look for the seemingly soft-spoken woman with the deceptively beautiful smile.
Emerging Artists Theatre presents
Guido Girl
written and performed by Marianne Ferrari
Directed by: Troy Miller
Musical Direction by: Peter Saxe
Produced by Agustine Welles
October 06, 2009 through November 01, 2009
Mondays @ 9pm
Tuesdays @ 7pm
Saturdays @ 9:30pm
Sundays @ 6pm
Location
TADA Theatre
15 W. 28th St., 2nd Floor
New York, NY 10001
Tickets
www.brownpapertickets.com
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August 4, 2009 1:37 pm : Comments 000
I could never make it as a restaurant critic. Don’t get me wrong — I enjoy fine dining as much as the next person and would have no problem doling out the criticisms when warranted. It’s the delivery of high praise that would be more problematic for me. There are only so many original ways I can imagine to describe a perfectly prepared filet mignon.
Writing another blog post about yet another exceptional Holy Cross intern poses a similar challenge. For the past five years, S&A has participated in the college’s innovative internship program. Although we provide a learning experience for a deserving junior or sophomore, it is the school’s alumni association that pays the student a stipend. Without exception, every Holy Cross intern we’ve had has far exceeded our expectations and raised the bar for their successor. Lauren Olney, our Holy Cross intern this summer, continued that tradition.
In years past, our Holy Cross interns worked primarily with my colleagues, as the general consensus around here is that an intern shouldn’t be subjected to my desultory ways. My brain typically processes information faster than I can articulate what I’m thinking, and I’ve been known to get quite frustrated when someone can’t immediately read my mind. Lauren isn’t easily intimidated and from the get-go displayed a certain grit and maturity that showed she was up to the challenge. The fact that Lauren also is a stubborn perfectionist made us kindred spirits.
One of the challenges of working with Lauren is the incredible speed and accuracy with which she completes her tasks (admittedly, not the worst challenge for a manager to have). I once gave her a project that I expected would take her an hour to complete. Fifteen minutes later, she was at my door, finished assignment in hand, asking for another one. I marvel at how quickly Lauren can navigate the web and mine critical research; she manipulates web resources with the panache and flair of a virtuoso conductor commanding an orchestra.
Lauren’s accomplishments here at S&A are quite impressive. We have a client in a financial niche not readily understood by outsiders. Not only did Lauren learn their business, she used that understanding to secure a profile story on the company in an influential trade publication. Even Jeff, one of the best media guys I know, was in awe. Lauren also came up with one of the best slogans we submitted to a client, though admittedly she had a decided edge in this department (her father is vice president of marketing at a major consumer company).
I grudgingly note as well that Lauren’s blog post on New Jersey two weeks ago has generated more traffic lately than my own blog posts. Underscoring her endearing modesty, Lauren says her family and friends likely account for most of the volume. (Kudos to the person who taught Lauren you should never upstage your boss).
Lauren also handles rejection well. Lauren didn’t argue or complain after Jackie spiked a blog post after I had her rewrite it three times (Jackie’s concern was with the appropriateness of the theme for a corporate blog, not the quality of the writing). The experience was no doubt highly frustrating, but Lauren learned first-hand that S&A’s strength is teamwork and mutual respect for the judgment of others (Jackie has the final say on all corporate blogs, including mine).
But what I’m most grateful about Lauren are the lessons she taught me. Among them:
Daily Print Newspapers Have No Future
Lauren is quite knowledgeable and inquisitive, but she grew up in a digital world. She dutifully reads the New York Times every day - on her iPhone. And heed this Mr. Sulzberger: You try charging Lauren even a nickel to access your content and you will lose her as a reader. Given that some 34 percent of people in Lauren’s age group don’t even follow the news, it’s hard to imagine that the print editions of newspapers will be economically viable in a few years.
Journalism Can’t Attract the Best and the Brightest
Lauren is a talented writer and editor, her research and analytical skills are extraordinary, and she works on her college newspaper. Lauren also is quite resourceful: she had a Facebook account in high school when the site was supposed to be restricted to college students. Lauren would make an exceptional reporter, but she isn’t considering a career in journalism because she doesn’t think she is “aggressive” enough.
With few exceptions, the best journalists I know get by on the dint of their intellect and integrity, not their aggression. But the media’s reputation has been so badly sullied that journalism is now perceived as a business best suited for loud, self-absorbed individuals interested in promoting themselves rather than serving the public good.
Don’t Stereotype Generation Y
Young adults in the so-called Generation Y age bracket have been maligned for their supposed sense of entitlement, less-than-hearty work habits, and pop culture-punctuated speech. Suffice to say, Lauren and all her Holy Cross predecessors distinguished themselves through their industriousness and professionalism. Never once did any of our Holy Cross interns show up even one minute late for work and they always offered to stay beyond their scheduled departure times. I’d match their writing and verbal skills against those of any generation.
Apparently some companies are turning to consultants now to help them better understand and manage the younger members of their workforce. I have some valuable advice for these companies: Your money would be better spent sending recruiters to schools like Holy Cross who attract top students with a seemingly very different mindset and work ethic than their headline-hogging peers.
If Lauren Olney is representative of our nation’s future leaders, the country will be in very good hands.
Good luck in your senior year, Lauren. You will be missed!
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August 4, 2008 11:41 am : Comments 000
What exactly is a “people person”? Boasted by many candidates vying to get into the public relations industry as their number one qualification, the phrase is really empty in meaning. Sure, in order to be good at PR you have to be confident and social, but in my past ten weeks at Starkman & Associates I have learned that there is much more to it.
As an English major at Holy Cross I have an innate fondness for the complexities of language. In Tom Stoppard’s Rosencrantz and Guildenstern are Dead, the two protagonists comment on the power of language when they say “Words, words. They’re all we have to go on.” If I have learned one thing from my internship this summer, it is the importance of words and how they can be both your greatest asset or your biggest threat. Words are the primary tool we use to interpret the world around us and at Starkman & Associates I believe that good writing is the foundation of our business.
From press releases to website content, a large part of my responsibilities over the course of my internship have involved writing. Whereas in the English papers I write back at Holy Cross I can cover up a bad idea or statement with fancy language, PR writing strips language to its bare minimum, leaving no room to hide. PR writing is not about how many SAT words you can use in a sentence, but rather how clearly and effectively you can communicate your ideas. In PR writing, less is always more.
In the wake of the Bear Stearns scandal, I have learned that for better or worse every word counts. From the way one talks to clients on the phone to the way emails sent throughout the office during the day are worded, you have to be ready to be held accountable for everything you say or write. Being able to anticipate how the person at the other end is going to interpret your words is very important. Does this fall under the qualifications of being a people person? Perhaps, but the point is that you cannot simply get by in this industry only with charm.
Although my experience in this field is limited, I have discovered a common trait amongst the people I work with and that is their inability to settle. This company could throw out catchy press releases or become complacent with the success their clients have already had, but that is not the case. The true PR individual is always striving to learn more and do more. They find the most creative project to recently have been done and they find a way to top it.
According to the Public Relations Society of America “public relations helps an organization and its public adapt mutually to each other”. This description is aligned with the views of Edward Louis Bernays, one of the “founding fathers” of PR. PR firms and the media must reach a half-way point in which one does not impose their own ideas upon the other. PR therefore is largely about compromise.
While I do not claim to be an expert, I can say that my time at Starkman & Associates has revealed the public relations industry to be a challenging and exciting world in which only the ambitious will survive.
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August 1, 2008 8:33 am : Comments 001
Among the many reasons I think so highly of my colleagues here at S&A is that they have all advanced themselves professionally by the sheer strength of their talent, enthusiasm, and strong work ethic, not by their ability to play the “corporate politics” game. While it is commonly said that 20 percent of employees do 80 percent of the work within any organization, that is most definitely not the case here. Every member of the S&A team is in full swing well before most companies’ employees are just clocking in for the day.
Given the high performance bar that these employees set, S&A can be a rather daunting place to work, especially for a college junior. Our exacting internal standards coupled with the sophisticated client projects we undertake and the mach speed at which we often work can tax the most ambitious college student. Understandably, we don’t expect our interns to keep up with the pace. We simply expect that they truly partner with us to make their internship a meaningful learning experience.
As I’ve written before, we participate in an internship program by Holy Cross that has been an incredible experience for us. We learned of Holy Cross’ internship program through one of their graduates that we had hired. It’s a rather novel approach – we provide the learning opportunity and, as long as there is a Holy Cross grad on staff, the school’s alumni organization takes care of paying the intern’s seasonal stipend. Every Holy Cross student and graduate that has walked through our door has vastly exceeded our expectations. This summer was no exception.
We had the distinct pleasure to work this summer with Kaitlyn Curley, who became a critical member of our team almost from the moment she arrived. Kaitlyn doesn’t just seek to perform tasks – she strives to understand the rationale behind them, to identify trends, to spot parallels. Her analytical skills are quite impressive. As a result, Ms. Curley took on considerably more responsibility than we anticipated with amazingly little direction.
Kaitlyn has a great work ethic. She always arrived on time and often worked well beyond her designated departure time to finish her projects, even when they weren’t due for another day or two. When given assignments, she would take copious notes and ask insightful questions to ensure she had what she needed to complete the task with exceptional speed, accuracy, and proficiency. We never saw Kaitlyn websurfing, talking to friends, or working on personal matters while on “company time.”
To say that Kaitlyn is quiet is an understatement. She is one of those people who you never know quite what they are thinking and, like my colleagues Jackie and Jeff, can keep her opinions and emotions VERY close to the proverbial vest. I also know that she plays lacrosse, as I caught her one night trying to quietly sneak past my door in her field attire. Although Kaitlyn is slight of build, I strongly suspect she is a terror with a lacrosse stick. You know what they say about the quiet ones – they’re always the ones you have to watch out for!
Today is Kaitlyn’s last day with us, and we are all noticeably disappointed for it. We will miss her spirit, her great work, her strong ideas, her fresh enthusiasm, and her company. Good luck in school this year, Kaitlyn, and don’t forget to call us first when looking for your first full-time job. It would be our great honor to have you back on board.
I’ve often wondered if Holy Cross makes its students great or if it simply has a knack for attracting great students. Regardless, I’m impressed how everyone I’ve met from this well-respected institution is intellectually well-rounded and inculcated with enviable values and discipline. If anyone knows of a Holy Cross graduate interested in initiating or continuing their career in public relations, please send them our way.
Let’s just say that résumés with Holy Cross on them tend to move to the top of the pile at S&A.
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April 18, 2008 2:19 pm : Comments 000
When a company is coming under fire from the public and media, you can count on their related official statements sounding anything but meaningful or spontaneous. Such statements are often perfunctory at best and clearly written with kid gloves snuggly fitted on the committee of writers’ hands. As a result, the issued statement is invariably bland, sweepingly broad, and peppered with enough “PR-speak” so that it doesn’t say very much at all. Example:
Reporter: “How can the company justify paying 300 times book value to acquire a failing company owned by the CEO’s son-in-law?”
Spokesperson: “NEWCO is proud of its corporate governance practices and its commitment to increasing shareholder value. We look forward to expanding the NEWCO brand through this merger of equals.”
Ok, so maybe I’ve crafted more than a few statements in PR-speak myself.
That said, how incredibly liberating to come across a corporate comment in the newspaper that not only speaks directly to the issue, but does so with real gusto…a statement that puts the inquiring reporter in his place and publicly questions his news judgment….a statement where the spokesperson stops being a shiny, happy person for a millisecond to say what he or she is really thinking.
Surprisingly, such a statement was issued by none other than CBS News. In response to a question about the embattled Katie Couric possibly – but not definitely – but, let’s face it, increasingly likely – “barring a change” – possibility of quitting as the anchor of “CBS Evening News”, CBS issued the following statement to the New York Post:
“We think readers are extraordinarily bored with this infantile and nasty pilling on… and will continue to focus not on baseless rumor and conjecture, but on the quality and depth of the broadcast – which is second to none.”
Wow – that’s a big change from the more traditional “we’re very proud of…” and “we have no plans for any changes regarding…” statements reportedly issued earlier.
Alas, the Post didn’t report whether a name was attached to the more recent statement, so I don’t know the identity of the verbal sharpshooter. But whoever you are, I applaud your courage and candor. I’d be delighted to buy you a drink.
Something tells me you could use one.
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April 10, 2008 1:13 pm : Comments 002
One of the great frustrations for any profession is to be defined in the public’s collective mind by the unethical or scandalous antics of a handful of individuals whose behaviors or values don’t mirror the majority of those in their industry. Just ask any reputable lawyer, car salesman, mechanic, or real estate agent.
Or ask someone in private equity. That sector is most often associated with the likes of Blackstone’s Stephen Schwarzman, who has reaped billions of dollars by buying healthy companies, crippling them with debt and massive layoffs, and then selling them at a huge profit. Although there are countless private equity firms who have contributed mightily to the economy and the public good, the average Joe or Jane steadfastly identifies the industry with greedy individuals who pillage companies and feast on $40 crab claws.
The PR profession certainly isn’t immune to public misperceptions either, which is more than a tad ironic. Indeed, we are the proverbial shoemaker’s children when it comes to our own reputation management. Our public credibility gap has, sadly, only widened lately thanks to the headline-generating missteps, blunders, and ethical breaches of some high-profile practitioners. While these individuals may occupy corner offices, I am loathe to use the term “industry leader” to describe any of them for they have shown via their actions, words, or values that they do not represent the trail-blazing people in the PR industry who truly deserve professional respect and admiration.
Mark Penn, the CEO of Burson-Marsteller, is the industry’s embarrassment du jour. While the mainstream media has been highly critical of Senator Hillary Clinton’s decision to allow Mr. Penn to keep his day job while serving as a key advisor on her presidential campaign, Burson-Marsteller has largely been given a free pass on its equally problematic decision to allow Mr. Penn to continue on as its CEO.
As someone who has generated a significant amount of new business through referrals from people with whom we work, I appreciate the value of having a CEO who is so connected as to have the ear of someone who could very well be the next president. But one of the cardinal rules of reputation management is that you should never act behind the scenes in a way that would prove to be embarrassing or detrimental if it was covered on the front page of the newspaper.
Mr. Penn’s decision to meet with officials from Colombia, which hired Burson no doubt in part because of Mr. Penn’s connection to Senator Clinton, and subsequent apology after his meeting became public, was an insult to the firm’s employees who dutifully uphold the firm’s published commitment to avoiding conflicts of interest and to all the clients who were taken in by the firm’s grandstanding about its ethical approach to business. It also demonstrated that Mr. Penn’s greater loyalty is to the Clinton campaign rather than to Burson’s clients.
But the Colombia incident isn’t the only instance of ethical malfeasance at Burson under Mr. Penn’s leadership. The Wall Street Journal in September reported that Burson was aggressively waging a campaign advocating against Google’s planned acquisition of DoubleClick. But in its outreach to reporters, Burson representatives failed to disclose to reporters that it was working for Microsoft, a major Google competitor. According to the Public Relations Society of America (PRSA), such subterfuge is wholly improper and a significant ethical breach.
Harold Burson, an industry luminary and the co-founder of the firm that employs Mr. Penn, also has ethical problems with PR firms not disclosing their vested interests. “I’m totally opposed to front organizations that do not disclose where their funding comes from and to my knowledge – we’re a big company – we have never started or organized a group where the funding sponsorship was unknown,” Mr. Burson said in a 1999 interview that was first cited by PR blogger Mark Rose. Things have clearly changed at Burson since Mr. Penn assumed the leadership.
Further, Mr. Penn reportedly has been actively involved in Burson’s representation of troubled mortgage lender Countrywide Financial. For an inside look at one of the most dubious reputation management campaigns ever waged, this article in the Wall Street Journal and this one in Salon is must reading.
Regrettably, Burson isn’t the only global PR firm causing the industry considerable embarrassment. It was reported on Gawker, a media-focused website, that Edelman, which also made pledges about its ethical approach to business and commitment to honesty, tells clients that it is okay to lie to the media. CEO Richard Edelman denies the story, of course.
I’ve met Richard Edelman and even once entertained thoughts of joining his firm (heck, we once cheekily considered calling this blog “5:45 a.m.” as opposed to his own “6 a.m.” blog to suggest we were at work before the Big Boys of the industry). My take from afar? Mr. Edelman is decidedly one of the most decent, personable, trusting, and gracious senior executives in the PR business. But his trust has repeatedly been misplaced. In recent years he has increasingly chosen to surround himself with political operatives, including Leslie Dach, who worked at Edelman for nearly two decades, albeit with some sabbaticals to work on various political campaigns.
Mr. Dach, the subject of an extremely damning profile in The New Yorker, formerly oversaw Edelman’s Wal-Mart account and he has since joined the giant retailer. During Dach’s leadership, Edelman initiated the “Wal-Marting Across America” blog, supposedly penned by a couple of customer enthusiasts who turned out to have been bought and paid for by the PR firm. That campaign was one of the most egregious communications frauds in recent memory. Edelman still retains the Wal-Mart account, which suggests the controversial retailer wasn’t too chagrined after being outed for the deception.
Then there is the issue of Ronn Torossian, the CEO of 5WPR, which claims to be one of the fastest growing PR firms in the industry. Mr. Torossian has a penchant for threatening litigation (see Strumpette’s Torossian Lawsuit countdown clock), a brash style, and a rather skewed perception of where he fits in the pecking order of industry giants (To wit, he reportedly said this a few years ago with respect to legendary PR man Howard Rubenstein: “5WPR are the new kids on the block to challenge him as the leading PR person in NYC.”). I will let the folks at Gawker fill you in on a major reason why Mr. Torossian comes to mind while writing this particular post.
Finally, there is Michael “The-Flack-When-You-Are-Under-Attack” Sitrick. As I’ve noted before, I admire Mr. Sitrick’s willingness to rough up reporters who write negative stories about his clients (although some of the reporters he has taken on are among the smartest and fairest in the business) and I salute Mr. Sitrick for his ability to dupe 60 Minutes into doing an uncritically sympathetic story about his controversial client Biovail being an unjustified victim of short sellers. Yet his outrages and messianic attacks on short sellers for their dubious activities loses some of its steam when you read that his firm has apparently engaged in some highly questionable practices itself.
(Full Disclosure: I briefly was retained by an attorney to assist in a matter involving Spyro Contogouris, a hedge fund researcher who was a prime target of Mr. Sitrick’s attacks)
Over the years I have been frequently criticized by PR people for being “extremely naïve about PR” and “thinking too much like a reporter.” I’ve been told that PR is an inherently dirty business that often requires the use of dishonesty and deception to get the job done. But I don’t buy that, nor do the people who work here. At the end of the day, our reputation for integrity and transparency is our most cherished corporate asset, and no client, project, award, or piece of business is worth its sacrifice. These values have served us well.
The PR industry has no shortage of practitioners who are quick to advise others how to manage their reputations. It’s high time we did something about our own.
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March 20, 2008 10:43 am : Comments 001
Some people are movie buffs, while others are into the theater. Me? I’m a big radio fan.
When I was 12, my uncle Specs Howard (then the top-ranked morning man at WKYC in Cleveland) used to take me to work with him whenever I came to visit. I was in awe of him and his job, and soon dreamed of being a DJ myself at CKLW, a Detroit radio station well known to anyone living east of the Mississippi who came of age in the late 60s and owned a transistor radio. In those days, radio was fun and was dominated by zany and distinctly local personalities such as Cousin Brucie (New York), Larry Lujack (Chicago), Dick Purton (Detroit), “The Real” Don Steele (Los Angeles), and Brian Skinner (Toronto).
Regretfully, radio took a really bad turn some 20 years ago. The FCC relaxed restrictions on the number of radio stations that media companies could own in individual cities. That sparked a massive wave of consolidation and the advent of generic radio formats that plague the industry today. No matter where you live, chances are there is a “Lite” radio station on your FM dial that drones on just like the one we have here in New York.
It is no secret that radio has been suffering a decline in listeners over the last 20 years or so. Everything but the real culprit – vapid programming – has been blamed, from the advent of MTV and VH1 to personal cassette players, CD players, MP3 players, iPods, and even alternative personal entertainment devices like home-based video games. Personally, I point the accusatory finger at the bland, cookie-cutter approach to programming.
Thankfully, there remains one station that still harks back to the glory days of radio. It’s K-Earth 101 (ok, technically KRTH, 101.1 FM), a Los Angeles radio station that sounds as unique and vibrant today as it did 35 years ago when it debuted as Southern California’s “oldies” station.
Even if you’ve never left the East Coast, chances are strong that you’ve heard some of the stentorian voices that have crackled through the airwaves from that station over the years as many of them enjoyed nationally syndicated shows or did commercial voiceover work on the side. In addition to Mr. Steele, they included Charlie Van Dyke, whose God-sounding voice is quite fitting since he left full-time radio to become an ordained minister (and who also lived my dream of being the morning man at CKLW), Robert W. Morgan (”a good Morgan to you”), and Charlie Tuna. Sadly, Messrs. Steele and Morgan have since passed on to that great DJ booth in the sky, but Mr. Van Dyke still does K-Earth’s station identification spots and Mr. Tuna, who has a Star on the Walk of Fame, recently rejoined the station and sounds as great as ever.
I’ve been listening to K-Earth online for a while now. Some of the station’s personalities seem like family. I often fantasize about living in southern California and listening to an LA radio station allows me to live there vicariously. Admittedly, it can be frustrating to hear about their 70 degree temperatures as you bundle up to head out into NYC’s freezing cold, but then again, there is something to be said about listening to news of interminable freeway tie-ups knowing you won’t have to experience them.
One of my favorite personalities is Gary Bryan, a former bass player in a Seattle rock band who subsequently morphed into one of America’s top DJs. In addition to being quite funny with a Count Dracula-like laugh, Mr. Bryan strikes me as a modern-day Ward Cleaver: he frequently talks about his wife and three daughters, and judging by his comments, he’s quite the family man. Mr. Bryan also isn’t afraid to take on controversial issues – for weeks he waged a campaign lobbying for The Monkees to be inducted in the Rock and Roll Hall of Fame.
Mr. Bryan’s sidekick is entertainment reporter Lisa Stanley, an effusive and quite likeable woman who sometimes comes across as the stereotypical bleach-bottle blonde. Whether it’s an act or not I don’t know, but either way, Mr. Bryan has great fun at her expense. Once, during a discussion about the incoming Santa Ana winds, Mr. Bryan suggested to Ms. Stanley that she stick her head out the window so she could get a refill. That’s the type of all-in-good-fun banter that goes on during their morning show.
Also accompanying Mr. Bryan is a seemingly soft-spoken producer named Samantha Stander, newscaster Bob Malik (who has a classic 60s news voice), and someone generally referred to as “Timmy the Cabana Boy”, who I assume is the show’s engineer. The ensemble works well together and they seem to genuinely like each other.
Although all the K-Earth announcers are quite talented and all have very distinctive personalities, my other favorites include “Shotgun” Tom Kelly, Dave Randall – unquestionably the hardest working all-night guy in the history of radio– and Christina Kelley, one of the top female personalities working in radio today.
Although oldies formats are fast disappearing round the country, KRTH does surprisingly well in the local ratings. According to K-Earth’s program director Jhani Kaye, the station ranks number four in the highly coveted 25-54 demographic, which underscores there is still a strong market for personality-driven radio.
So thank you Gary, Lisa, Bob, Charlie, Tom, Christina, and all your colleagues at K-Earth. In a world that sometimes moves too quick, is sometimes too impersonal, and is sometimes just too downright mean, it’s comforting to know there are still a few folks left in radio who are fun, civil, and a delight to listen to.
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February 15, 2008 4:01 pm : Comments 001
Let’s face it, most airlines are indifferent about public relations. Although the major ones were once ranked among the most creative and effective brand marketers, today they are more concerned with trying to figure out how to cram more people on the plane than with making sure passengers are happy. United’s friendly skies are no longer quite so friendly, Delta is hardly ready when you are, and few travelers would say that American Airlines is still something special in the air.
But there is hope. I have found a smart, engaging airline public relations executive who is quite remarkable not only for her media smarts, but also for her savvy ability to permanently disarm one of her company’s critics. I’m talking about Abby Lunardini, director of corporate communications for Virgin America.
My dealings with Ms. Lunardini began last month when I contacted her for comment on an item I was considering about Virgin America. Without going into details, suffice to say that it probably wouldn’t have been a blog post that Ms. Lunardini or her bosses would have treasured.
As you know, I had already written some critical things about my experiences with this upstart airline, and had exchanged emails with senior management in the past. I wasn’t sure what type of reception I’d receive from Ms. Lunardini, but I assumed she knew the history and would, accordingly, hardly count herself among the blog’s biggest fans.
Ms. Lunardini defied my expectations. There was no cold shoulder, no blatant or subtle hostility, no Target-esque brush off of a mere blogger, and no tersely worded official statement or tight-lipped “no comment” in response to my less-than-favorable inquiry. Her professionalism, sincerity, and responsiveness were quite impressive.
But what really stands out is the way she subsequently used the opportunity provided by our dialogue to follow up on a request I made months ago to a Virgin America flight attendant for an autographed photo of Sir Richard Branson for my colleague Jackie Condie, who absolutely reveres the guy for his business acumen and PR smarts. Ms. Lunardini let me know that the photo request had not been forgotten and that she was hoping to get the photo signed when she saw Sir Richard at a party the company was throwing to celebrate the launch of service to San Diego.
Now here’s where I must confess to having an utterly shameless moment: I couldn’t help but ask Ms. Lunardini if it might be possible for Jackie to attend the San Diego celebration and meet Sir Richard in person. Not only did she oblige, she insisted that I come to the party as well. And so Jackie and I briefly found ourselves in southern California this week enjoying weather that should be considered sinful in mid-February.
Let’s just say Ms. Lunardini throws a heck of a party.
With help from an impressive group of representatives from the D.C. and Beverly Hills offices of Ogilvy Public Relations Worldwide, the flawlessly executed party at a trendy San Diego hotel was done in real style and class. Everything was to the king’s taste.
The party was filled with interesting people, ranging from Chamber of Commerce folks to Virgin America vendors. We also met a woman who made a critical video of Virgin America after her flight was delayed for some five hours. She, too, had been invited to the party.
Despite all the pressure Ms. Lunardini was clearly under, she still found time to make good on her promise. When we gave our names at the door, a representative from Ogilvy without looking at the list attentively said to Jackie, “Oh yes, you’re the one we need to make sure meets Mr. Branson.” You would have thought we were VIPs.
Just after 9 p.m., we were instructed to go to a quiet area upstairs. A few minutes later, we were introduced to Sir Richard who shared a few words and graciously agreed to pose for a photo with Jackie. Later we learned he was actually rather sick with the flu. You’d never have guessed it.
I’ve worked with Jackie for more than 10 years and I don’t recall a time she’s ever looked quite so thrilled. Ok, well, maybe at her wedding. Some people have asked us if spending a few minutes in his company was really worth the hassle and aggravation of making a cross-country trip in two days. Seeing the look on her face as she shook the man’s hand, there is no question about it. Definitely yes!
So many thanks Ms. Lunardini for an experience Jackie and I will never forget, and for changing this blogger’s perception of airline PR people. Like Virgin America itself, you are clearly a standout in your crowd.
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February 5, 2008 12:05 pm : Comments 003
Update: The New York Times claims that the Portfolio piece was “inaccurate”.
Update 2: Alex Berenson admits some truth on NPR and The New York Times‘ comments had an element of spin.
More about Alex Berenson.
The New York Times‘ pharmaceutical industry reporter Alex Berenson scored a heck of a Page One scoop last week when he revealed that Eli Lilly was looking to reach a settlement with federal prosecutors over the company’s alleged inappropriate marketing of antipsychotic drug Zyprexa. A staggering “mea culpa” settlement figure of $1 billion or more was mentioned.
This was a big story, no question about it. Eli Lilly is a publicly traded company and the $1 billion settlement would be the largest ever paid by a drug company for improper drug marketing (so said the Times).
In the piece, reporter Alex Berenson cited sources who requested anonymity “because they have not been authorized to talk about the negotiations.” He also included a statement from an Eli Lilly representative saying, in part, “…we regularly have discussions with the government. However, we have no intention of sharing those discussions with the news media and it would be speculative and irresponsible for anyone to do so.”
So how did Mr. Berenson get the scoop? It turns out that it wasn’t through any tried-and-true gumshoe reporting techniques taught at j-school. He simply had the fortune of having the same last name as one of Eli Lilly’s attorneys.
According to a story posted today on Portfolio.com, one of the drugmaker’s outside attorneys at Philadelphia-based Pepper Hamilton had mistakenly emailed detailed, highly confidential information on the settlement talks to the reporter instead of Bradford Berenson, the intended recipient (co-counsel at another law firm).
The email gaffe, unquestionably one of the greatest fears of everyone handling sensitive information, is apparently the result of very similar email addresses: Mr. Berenson, the reporter, simply goes by berenson in his email address while Mr. Berenson, the attorney, goes by bberenson.
We can’t honestly fault the Times or its reporter for breaking this story. I would have done the same thing back in the day. But Mr. Berenson mislead by omission. He should have been upfront with readers about how he learned of the settlement talks. Since there was no official confirmation from either side, doing so would have gone a long way toward letting readers judge the credibility of the story for themselves. Mr. Berenson quotes Nina Gussack, a Pepper Hamilton lawyer representing Eli Lilly, as saying she couldn’t comment on the case. Judging from Eli Lilly’s own statement, it doesn’t appear that anyone alerted the company’s spokesperson as to how Mr. Berenson got the story.
Mr. Berenson’s earlier reporting on this topic has been called into question before. According to a respected federal judge, Mr. Berenson was “deeply involved” in an “illegal” scheme that effectively amounted to “stealing” documents. (Neither the Times nor Mr. Berenson have ever publicly explained the extent of his involvement.)
Eli Lilly is reportedly sticking by Pepper Hamilton, and I applaud the company for its loyalty. That said, I can’t help but wonder why an attorney at Pepper Hamilton had Alex Berenson’s email address in her email database in the first place. As I’ve argued before, reporters and attorneys are best left in separate corners. Especially when the latter specializes in high-profile, high-stakes crisis work. By any measure, Eli Lilly’s PR handling of allegations of wrongdoing regarding its Zyprexa marketing has been a debacle. If its attorneys are driving the media relations strategy, it’s easy to understand why.
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