GolinHarris

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By Sharon Sim-Krause
ssimkrause@golinharris.com

Excitement builds as the world counts down to the Beijing Olympics, now just 45 days away.  More and more U.S. companies are expanding and venturing into China and the greater Asia Pacific region; Asian companies are also coming to America.  Where companies go, public relations follows.  Business success in any market is built on effective communications.  How? By adapting the conventional approach and embracing a global, yet local mindset.  As with cultural differences, significant variations are found between U.S. and Asian PR tactics. 

Here are three considerations for practicing PR in U.S. or Asia:

Understand Cultural Differences
Effective communications begins with a sense of how business is practiced in each country. Have an open mind and be aware of those differences. Understanding the economic, political and social environment will equip you not just for witty water cooler chats, but strengthen your local interactions and media relations outreach.

The Media Holds the Key Here and Over There
The media is no doubt essential to building a company’s image and visibility. You have to understand how to approach foreign media and target their interests.   For example, media phone interviews work in the U.S. but are rarely practiced in other countries. Although press conferences are an effective PR tool in Asia, they are not as readily embraced by U.S. media.  The U.S. media prefer one-to-one briefings, fresh news hooks, and generally do not accept invitations for sponsored trips.  But on the contrary, some Asian media welcome sponsored trips and some Chinese media expect "travel allowances" when attending press events hosted by companies.  

Localization Is Essential
When most people think of Asia, they think of countries like China, Japan, and India.  But with more than 37 countries – home to nearly 4 billion people in the world - localization is key.  The United States, with a population of 380 million, reflects distinct cultural differences from state to state and from city to city, too.  The best way to disseminate messages abroad is to modify strategies and tactics to accommodate each country’s unique perspective. Even if you are based in the country, you should consider leveraging local partners to customize your messages – in a genuine and culturally sensitive manner – to the needs of the local audience.

Successful planning and execution of localized, ongoing public relations programs can yield your company long-term rewards in the international arena, providing mutual benefit to you and your new hometown. 

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By Al Golin
agolin@golinharris.com

There are six things any company can do to ensure its own authenticity, its own real-ness, over time. As Chairman of GolinHarris, one of the world's premier public relations agencies, Al Golin calls these his "Reality Rules."

Mr. Golin believes that if companies and their leaders truly live and work by these standards, they have a great opportunity at long term success in growing and maintaining strong brands.

These rules are:

1. Make Real Connections. Many companies are afraid to show people "behind the scenes" of their businesses at the risk of exposing sensitive information. But great brands understand that -- if they have nothing to hide -- there is a benefit to letting customers know what goes on behind the scenes. Such openness builds trust, and trust cements long-term customer relationships.

2. Fix it Before it Breaks. The old saying "If it ain't broke, don't fix it," is, in reality, bad advice. Successful companies don't rest on their laurels. They get real with themselves, admit to their weaknesses and constantly look for solutions to challenges -- even when they are at the top of their game.

3. Keep your Customers Close: If you don't ask your customers what they want, how can you really know what they want? Companies that tinker with products or services without customers' permission run the risk of damaging their brands.

4. Celebrate your Workforce. Too many companies today look at their employees at "commodities" or, worse, "overhead." But great companies celebrate their employees and celebrate achievements of the workforce every day. This fosters greater employee engagement, commitment and performance.

5. Be Genuine. For years, advertising and P.R. companies alike have used "beautiful people" as the face of brands, leaving consumers with the impression that beauty breeds success. However, consumers have shown they connect better with people like themselves. So companies today are making a concerted effort to use "regular guys" in their branding efforts.

6. Reality Starts at the Top. Recent history is littered with executives who lost a grip on reality by drinking a little too much of their own champagne. Arrogant leaders have toppled once great brands, from Enron to WorldCom. Successful CEOs of today must sprinkle confident leadership with a little humility to succeed.

In his speech, "Time for Brands to Get Real," Mr. Golin elaborates on these rules, and illustrates them with case examples and his own experiences from more than 50 years as adviser to the leaders of great brands, including McDonald's, Nintendo, Dow and others.

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By Al Golin
agolin@golinharris.com

Most of us are aware of how a relatively small number of companies lost trust quickly, dramatically and devastatingly. Through unethical practices, poor judgment, or plain, old-fashioned greed, they made mistakes that alienated their stakeholders. Organizations, however, can lose trust in a slower, more
private manner, though sometimes no less devastatingly. I’d like to share some examples of how this can happen. Think about the acts themselves and how they serve as cautionary lessons for what can happen when issues of trust aren’t fully considered.

Making a Difficult Leadership Transition Even More Difficult

When brilliant, charismatic CEOs leave companies, it’s often inevitable that their companies experience second-guessing and morale problems.  To a certain extent, the new CEOs need to develop thick skin. If they overreact to criticism or decide to implement their own strategies out of egotism (because they want to prove they can blaze a path as bright and shining as their predecessors), they risk breaking the bonds with stakeholders the company has worked hard to build.

Underestimating the Impact of Unethical Behavior

In a cynical, jaded age, people often fail to realize that most of us retain the capacity to be shocked by bad behavior. Organizations frequently overestimate how much we’re willing to let them get away with.  They don’t seem to realize that their own employees as well as external communities will be highly offended by questionable or unethical behavior, and that unless they address this problem quickly and decisively, trust will be lost.

Failing to Anticipate Trust Vulnerabilities

As we’ve seen, a loss of trust isn’t always the result of a company’s misdeeds. Instead, their sins are more subtle. Too often, they simply overlook how their actions impact a particular group’s trust (or lack thereof) in the organization. Instead of pursuing a trust bank strategy where they look for opportunities to build and solidify stakeholder relationships, companies unwittingly fall into trust-breaking traps.

Appearing Like You’re Not Playing by the Rules

When companies are perceived as underhanded or arrogant, they lose respect. For instance, they bully suppliers into lowering their prices or they use their influence with government to get a favorable tax law passed. When large, powerful corporations act in this manner, they send the message that “the rules don’t apply to us.” This may not be their intent – and they actually may be operating in a fair and equitable manner – but the perception is that they’re taking advantage of others. This perception tarnishes the company’s reputation and strains relationships.

Appearing Like You Have Something to Hide

Companies can create distrust not just by what they say but by what they don’t say. There are instances
when silence speaks volumes. For example, a company’s fortunes go south and weeks or months go by without it saying anything about the possibility of downsizing until employees read about planned massive layoffs in the papers. Or a class action discrimination lawsuit is filed against an organization and a company refuses to comment on it, even as rumors circulate about the company’s terribly discriminatory policies. An unwillingness to clarify a situation or defend the company against charges tends to weaken the bonds of trust.

Refusing to Face Reality

Some organizations are too proud for their own good. They are very successful for a period of time but they can’t adjust to changes in the marketplace that demand they adapt how they operate. As a result, they stubbornly – some might say, obsessively – follow a path that everyone, from their employees to the financial community and from their vendors to their customers, knows is wrong. Trust is lost because when companies aren’t honest with themselves, they’re not honest with others.

Changing Too Much Too Fast

Change has been embraced by the corporate world, and organizations have changed policies, processes, and even cultures to fit new realities. In many instances, this has helped organizations become more successful and more responsive to employees’ needs. In some situations, though,change has trampled corporate traditions and left employees, customers, and other groups confused about mission and values. At its worst, radical change can plunge a company into a type of limbo, where it’s neither the company it was nor the company it wants to be. In others words, people aren’t sure what the company is, and it’s difficult to trust an entity without an identity.

Putting the Company’s Needs Before Those of the Customer

One of the fastest ways to lose trust is by prioritizing the company’s requirements over those of the customers and making it clear to customers that they come in second. Typically, this sin is committed because of organizational arrogance. A company believes its product or service is so much better than anything else out there that it can raise prices, reduce services, and make other changes that benefit it and don’t benefit customers. Although some companies may be able to get away with these actions in the
short term, in the long term they suffer because they won’t always have competitive advantage. Eventually,
other companies will catch up with them and customers will eagerly shift their loyalties because of the way they’ve been treated.

When a company does something that diminishes trust, the consequences can be major or minor, short-term or long-term. Just because it doesn’t lead to an immediate bankruptcy doesn’t mean that it won’t have an impact. It pays for all organizations to be exceptionally vigilant against committing acts of distrust.

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By Christian Fuchs
fuchs@golinharris.de

Apart from their actual work – be it supplying services or manufacturing products – many companies know how important it is to appear higher, faster and stronger than their competitors. Alongside this comes the Olympic claim: “Being there is what counts!”. regardless of whether good or bad news is involved. What matters is the coverage.

Overcoming the lack of will-power

There are, however, a large number of companies who still have difficulty in identifying topics with PR relevance or who fail to recognize the value of PR for the success of a company. The reasons for shying away from taking a competitive sporting approach to the subject are many and varied. Some companies, for example, operate businesses in which confidentiality is essential and which can therefore not be made public without lengthy discussions.

Then again there are companies where time constraints prevent them from seizing opportunities for conducting an interview with the media in the wake of a deal or a conference. Often the reason is that companies are involved in activities that are not worth reporting because they can be provided at least equally well by competitors, or because they are assumed not to interest a broad readership. Given the limited scope of a daily newspaper, it is quite understandable that the half-yearly results of a company not listed in the DAX have negligible news value and will therefore not be further published. But, if you put your hand on your heart, is it not perhaps sometimes a question of convenience?

Media is more than the business and finance sections in newspapers

This is where the PR agency comes in as a trainer, sports psychologist and initiator. It not only enables its customers to take part in the games but also to achieve positive scores. PR professionals are therefore able to spot the relevance of the story behind the story. Firstly, they show companies the disciplines in which the media are looking for opinion leaders and also prepare company topics in such a way that the media cancover them with interest. Secondly, company news do not always only have to appear in the business and financial section of a newspaper. Every day in Germany new categories appear that often even permit more space for a ‘tour d’horizon’ and also provide scope for the industry expertise and future visions of a company to unfold. PR experts help companies to prepare this know-how for the media – like muscles, which though already present, still need to be exercised.

Another increasingly decisive factor is the preparation so that it is actually possible to gain a response from the media on the day and at the venue of the competition. In the same way that a product launch cannot be communicated without a product, issues of stage direction are becoming more and more important. In this connection, the agency will relieve the customer of many working phases: it will take care of selecting exciting locations, the journalists to approach, possible guest speakers, the fringe programme, the right moment to send out the invitation, the choreography of the event and each detail, no matter how small. After all, only those who aim for a top achievement, will stand a chance of being amongst the medals in the long term.

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By Zandra Zuno
zzuno@golinharris.com

Every business has to consider the impact and opportunity of the rapidly expanding Hispanic population. The U.S. Census Bureau predicts that by 2050 one in every four Americans will be of Hispanic ancestry. Hispanics represent both the fastest-growing and largest minority group in the U.S. with an annual buying power of $870 billion—about nine percent of the total current U.S. purchasing power. There is no question that this is an influential market.

The rapid growth and acculturation of Hispanics in the U.S. demands targeted marketing communications programs. The availability of Latin America brands in the U.S. and newly developed "Hispanic brands," coupled with long-standing American brands, offer a broad range of choices for the Hispanic consumer. With more choices than the general market, building brand loyalty among Hispanics is paramount, and public relations becomes a key tool in driving brand preference among these consumers.

Today's Hispanic market is more complex than ever before. Hispanic PR programs deserve a smarter, more comprehensive approach to reaching this critically important audience that goes beyond cookie-cutter tactics. Do PR professionals know what they need to do to effectively communicate and connect with this vibrant group? Let me offer some initial suggestions:

• Hispanic PR is strategy not tactic. Long gone are the days of translation-based media relations labeled as "Hispanic PR initiatives." Effectively reaching the Hispanic market requires a strategic approach at the outset of planning and not as an afterthought to the general market plan. It requires everything any other PR plan would entail—clear objectives, research, segmentation, on-target messaging, relevant programming and media outlets, as well as measurement. The practice of "translating" a general market strategy or PR materials for the Hispanic market is truly setting a program up for failure.
• The Hispanic market is far from homogenous. The Hispanic market is vastly diverse. First of all, the term "Hispanic" describes an ethnicity, not a race, so Hispanics can be Caucasian, Black or Asian. Secondly, Hispanics come from a number of different countries and while most share a set of interconnected values and motivations, there are vast cultural differences between being Cuban, Dominican, Guatemalan, Mexican, Puerto Rican and so on. Understanding this becomes especially important when developing grassroots community events on a local level. What may work in Chicago's La Villita neighborhood may not necessarily work in Miami's Little Havana.
• Acculturation adds even more diversity. Hispanics are more likely to blend and adapt to the U.S. while still maintaining their culture, than to assimilate. With the upward trend of U.S.-born Hispanics, levels of acculturation are also on the rise, giving way to a new culture that balances traditions with a new identity in the U.S. When looking at a particular Hispanic segment, determining where they fall within the acculturation continuum is critical. Attitudes and behaviors can vary from a recent immigrant to someone that is first or second generation Hispanic in the U.S. Understanding the acculturation process and the diversity within the community becomes critical for developing messaging and programming, as well as identifying media outlets.
• Español is no longer the norm. The Spanish language is no longer a defining factor for Hispanic identity. Given the diversity of today's Hispanic market, PR practitioners will need to study what language will best resonate with the particular Hispanic audience and thus identify the language preference for particular initiatives. Will your target prefer Spanish-only, Spanish-preferred, Bilingual, English-preferred or maybe English-only? Identifying what segment of the Hispanic population is the ideal target is essential—both from an origin and acculturation standpoint—but understanding what language is most relevant is vital.
• Broaden the perspective. Yes, generally speaking, Hispanics love their soccer. But do we need yet another soccer-related program to target Hispanics? Using sports, music and entertainment to get the attention of Hispanics can be very effective. But PR practitioners have the ability to really work beyond and explore programs that are relevant to the extensive interests, needs and motivations of Hispanics. Like most Americans, Hispanics also want a healthy family, quality education for their kids, a home of their own, financial stability and even a business start-up. Tapping into these insights can really broaden the offering toward PR initiatives that educate, inspire and motivate. Showing Hispanic consumers that you "get them" beyond the typecast, can go a long way in developing brand loyalty and preference.

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By Sharon Sim-Krause
ssimkrause@golinharris.com

Excitement builds as the world counts down to the Beijing Olympics, now just little more than a month away. More and more US companies are expanding and venturing into China and the greater Asia-Pacific region; Asian companies are also coming here. Where companies go, PR follows.

Business success in any market is built on effective communications. How? By adapting the conventional approach and embracing a global, yet local mindset. Of course, significant variations are found between US and Asian PR tactics. Here are three considerations for practicing PR in the US or Asia:

1. Understand cultural differences. Effective communications begins when you have a sense of how business is practiced in each country. Have an open mind and be aware of those differences. Understanding the economic, political, and social environment of the other country will equip you not just for those witty water-cooler chats, but it will also strengthen your local interactions and media relations outreach.
2. The media holds the key here and over there. The media is no doubt vital to building a company's image and visibility. You must understand how to approach foreign media and target their interests.
   
   For example, media phone interviews work in the US, but are rarely practiced in other countries. On the other hand, press conferences are an effective PR tool in Asia, but not as embraced by US reporters, who prefer one-to-one briefings, fresh news hooks, and generally don't accept invitations for sponsored trips. Some Asian media, on the contrary, welcome sponsored trips. In fact, some Chinese media expect "travel allowances" when attending press events hosted by companies. Localization is essential. When most people think of Asia, they think of countries like China, Japan, and India. But with more than 37 countries - home to nearly 4 billion people - localization is key. The US, with a population of 380 million, reflects distinct cultural differences from state to state, city to city.
   
3. Localization is essential. When most people think of Asia, they think of countries like China, Japan, and India. But with more than 37 countries - home to nearly 4 billion people - localization is key. The US, with a population of 380 million, reflects distinct cultural differences from state to state, city to city.

The best way to disseminate messages abroad is to modify strategies and tactics to accommodate each country's style and perspective. For example, business letters and press releases should be written in the format of your host country (watch sequence of dates, British versus American spelling, traditional Chinese versus simplified Chinese, currency signs, and more).

Even if you're based in the country, consider leveraging local partners to customize your messages - in a genuine, culturally sensitive manner - to the local audience's needs.

When your initial foray into a new market hits the prime-time news and meets your communications and business objectives, then you're off to a great start. This is just the beginning, though. Critical to success is the planning and execution of ongoing, localized PR programs that tie into your company's larger strategic goals.

"Great bounty awaits your valiant efforts overseas," read a fortune cookie at the end of a recent delightful meal at a local Chinese restaurant. Indeed, it's true. Your commitment to new markets will yield wonderful experiences and your company long-term rewards in the global arena. Bon voyage!

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By Jan-Hendrik Eickmeier
eickmeier@golinharris.de

An up-to-date and informative website has long been a standard feature of a company's external communications. What is often neglected, alongside optical aspects such as consistent implementation of the corporate design and high usability, is integration into the overall communicative concept. Yet on the Internet too, it is precisely the combination of wide-ranging services and a target-oriented preparation that is so crucial. Under the heading of Web

2.0, the demand for communication with Internet users is becoming more prominent. User-generated content, blogs or viral campaigns steer the users' gaze towards new opportunities on the WWW.

Innovative is Not Necessarily Useful

However, a large number of these "new" means of communication should be selected, developed and applied with great care and with a view to customer and user structure. Here it is of prime importance that customer affinity to such tools should either be present or capable of being stimulated.

Blogs as an example: disillusionment is setting in increasingly here. Companies do in fact have to carry out regular maintenance in order to establish a serious dialogue with users. As with many PR concepts, they only function via the factor of continuity and interest. Those who have nothing to report will gain little credit with their own blogs and are unlikely to establish a genuine dialogue with users.

Set up services according to target group

First of all, an Internet presence should mainly serve fundamental information requirements. Depending on customer and business structure, the services offered not only have to provide a gain in information, a precisely targeted range may also increase satisfaction with a site and the length of time spent there.

Page segmentation for example: information can be found more quickly if it is grouped into specific user groups. Many companies, for example, already make use of their own sub-offerings for customers, suppliers or journalists. An updated, targeted offering with rapid access to production information, contacts or download information also raises visitor satisfaction and is therefore the first indication that visitors to the site are taken seriously and provided with comprehensive information. Ideally, a carefully planned Web presence will fit into the overall communicative concept and offer a long-term basis for corporate communication — if required, additional building blocks can be evaluated and incorporated and offline communication can be continued on the Internet.

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By Jürgen Parr
parr@golinharris.de

No day passes without a new case of a bank losing billions or of a board member from a large corporation coming under suspicion of tax evasion. All of this continues to erode the population's trust in managers and banks. The current list stretches from Klaus Zumwinkel, takes in Jérome Kerviel (Société Générale), IKB, Bayern LB, West LB, Sachsen LB — and could go on. The Who's Who of leading managers and most prominent players in the financial market has managed to ensure that the public at large has lost any trust whatsoever in our financial system and its leading figures. It is therefore no surprise that generalizations abound and it is becoming virtually impossible to make a discriminating consideration. What can companies, banks and managers do "to combat this" or to help people view this image in a different light?

Increase transparency

Finance Minister Peer Steinbrück spelled out the communicative line of approach at the New Year's reception of Deutsche Börse on 28 January. The most important commandment for the banks at the moment, he claimed, was to sort things out quickly and "to do so without any long delay." Those who only reveal their information little by little were not only provoking punishment by the market, but damage for the entire financial sector, he went on, adding: in view of the current crisis of trust in the banking sector and in the financial markets, there was a need to increase transparency. Steinbrück demanded improvements in banks' internal risk management. Germany will also be campaigning for more transparency on the international level.

Growing lack of trust — investment products unknown

At the beginning of the year, the institute for brand controlling BrandControl conducted a survey which concluded that every third wealthy individual had lost trust in the banks due to the subprime crisis. And this damages the image of private domestic and foreign banks as well as the state banks: 44 per cent of the respondents in the private banking target group and 38 per cent in wealth management have no more trust in the banks. This applies above all to the Sachsen LB, which is mistrusted by some 20 per cent of the private banking target group and just under one-third of the wealth management group. Two more banks among the total of 40 analysed also score badly: roughly 20 per cent of the two target groups have lost trust in both the Deutsche Bank and West LB. Added to the mistrust is another problem: many wealthy individuals are not at all familiar with the investments offered by the banks. This affects roughly 20 per cent of the private banking target groups and more than half of those in wealth management

More open and more credible communication now!

Neither the principles of the Bundesanstalt für Finanz-dienstleistungsaufsicht (BAFin), the German regulatory authority for financial service providers, nor the German Corporate Government Code is able to prevent such rejection and loss from occurring. Often it is the profane greed for power and millions that drives individuals to act in this manner. And seldom do the type and contents of the communication lead to any generation of understanding or sympathy when the public prosecutor's office instigates legal proceedings into the billion-dollar deficit. Banks and managers are best able to convey trust during their routine dealings: day in, day out, they prove that they do in fact deserve the trust from customers, investors and employees.

The current crisis on the financial market shows that the banks now, more than ever, need to expand their communication in order to regain investors' trust and address potential customers. This also includes being better-informed about complex products and indicating possible risks. Managers have a special social responsibility for the acceptance of the market economy: only those who adhere to the rules of the game and laws can expect that business and managers will also be accepted and their demonstrable performance appreciated. Corporate social responsibility and philanthropy programmes are of little use here either if the communication is not fundamentally correct. Trust is only earned by those who communicate openly, honestly, credibly and consistently even if the subjects and occasions may not always be positive.

  

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By John Morgan
jmorgan@golinharris.com

It has been a very interesting past several months for the GolinHarris in Asia Pacific. In addition to the diverse bodies of work featured in Breakthrough, we managed a half-dozen or more projects we’ll never be able to discuss outside the sanctity of our client relationships.

Here's a sample of the kind of calls a public relations firm sometimes receives:

• A manufacturer is wrongfully accused of product defects by a very tiny NGO with abundant access to new media.
• A manufacturer needs to recall a product line due to a freak defect it never could have anticipated in which the item proves to be flammable in direct, intense sunlight.
• A transportation company experiences the death of an employee and the injury of a customer—in two different Asian geographies on the same day.
• A well-known F&B chain is taken to court by a customer who claims to have ingested a foreign object at one of the company's locations.
• A company fails to deliver on a customer promise, fails in its honest attempt to correct it and then wakes up to find the details of the episode in the paper the next day.

You probably already have a headache just reading about these unfortunate events. The good news, though, is that in all five scenarios, GH has seen clients live to do another day of business. When I look back on why these potentially catastrophic episodes did not explode, the answer is very clear: Every GH client had a healthy respect for the fundamentals of crisis management and the courage to act swiftly and responsibly.

Every one of these clients knows that customers, business partners, analysts, investors, NGOs and the general public hold them to extremely high standards for how a company should react in a crisis—today more than ever before. If any stakeholder group feels they have been slighted, they don’t hesitate to speak up and speak out. And today every stakeholder group has access to communication tools and media that can spread news and complaints faster than ever before, all around the world. This is not one of those "what to do in a crisis" articles. Well, maybe it is. But I’m writing this more as a friendly reminder of the 10 keys to effectively managing a crisis.

1. Candor: State the facts when you know them, accept responsibility and recognize that the problem exists and that something must be done to fix the problem.
2. Leadership: Explain what happened and display appropriate visibility by the appropriate level of company spokesperson.
3. Responsiveness: Respond in a timely and appropriate manner, and if you can, involve third-party allies.
4. Corrective Action: Explain what you’re doing to correct the situation. Also, remember that corrective action should be rational and responsible, yet at the same time should aim to reach beyond public expectations.
5. Compassion: Show the appropriate level of remorse, empathy, regret and/or sympathy.
6. Visible Decisiveness: Ensure that you are seen doing the right thing.
7. Anticipation: If you did your homework in anticipating potential crises, then you already know, fundamentally, how to respond—which means you have more time for the critically important details of your response strategies.
8. Internal Pulse: If you have listened to your employees and engaged them in the process of managing the unfortunate incident, then they have become ambassadors of defense, not finger pointers.
9. Foundation: You have the first aspect of a reputation-insurance policy: Your company has always conducted business by the highest ethical standards so that stakeholders are more prone to empathize with you.
10. Social Responsibility: You have the second aspect of a reputation insurance policy: Your company has been actively involved in its industry and in the lives of its customers … so they are even more prone to empathize with you and come to your defense.

I have delivered these 10 tips dozens and dozens of times over the years, both during training sessions and in the heat of the moment. I used to be amazed how many of our clients didn’t understand them, or worse yet, were not compelled to act on them.

Today, I'm pleased to say I’m amazed how many of our clients live and breathe these fundamentals and rise to the occasion in what may be either a minor annoyance or the beginning of their darkest hour. It is rewarding to know that more and more, communications professionals are among the first that business leaders contact when bad things happen.

So, in conclusion, two thoughts: 1.) Keep up the good work; and 2.) It wouldn't hurt to read that list again.   

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By Brad Burgess
bburgess@golinharris.com

Sustainability as a concept has been around for quite some time. In 1987, the United Nation's Brundtland Commission created a report with the intention of distributing resources and equity around the world. "Sustainable development," a key term coined by the group over two decades ago, has since grown to become a household term almost akin in popularity (or notoriety) to the "rise of China."

Indeed, one cannot open a newspaper or Web page now without seeing the announcement of an organization "greening" itself or demonstrating its commitment to sustainable practices. "Moving Consumers from Green Interest to Green Action," a recent study conducted by Insight Research Group, reports that 81% of respondents maintain the current focus on environmental or "green" issues is "here to stay" rather than a "passing fad," and 78% of respondents said they are "willing to make a lifestyle change for the good of the environment."

The popular consensus, with only a few dissenting opinions, is that incorporating sustainable practices into your business is not only a good way to earn respect with your stakeholders but also delivers concrete returns on investment. Having swept the Western world, sustainability is now nearly an equally important force driving business and political decisions in China.

In modern China, as in the world at large, electronic communication in the form of bulletin board systems, blogs and SMS text messages often carry more sway than traditional media. Many people are increasingly skeptical of the business community, and they have the ability to analyze situations for themselves. This grassroots influence means that companies have the opportunity to make an impact on how consumers perceive their brand, but only if sustainability efforts come across as meaningful and authentic.

China Trends

2008 is an important year for China with the coming Olympics. The Games have undeniably brought exceptional attention to the capital, and this includes a renewed interest in improving programs to ensure Beijing’s sustainable development.

China's government leadership not only approves of programs that demonstrate sustainability but has taken active steps to guarantee that China will be well taken care of now and in the future. In China’s 11th Five Year Plan, the country set out to not only develop “harmoniously”—as government leaders have pledged to—but also move toward becoming an innovative nation rooted firmly in the principles of sustainability.

Energy efficiency and environmental care remain the largest priorities, especially in light of China’s recent environmental challenges, from the environmental impact of the Three Gorges Dam to polluted air in Beijing. Safety standards have also been a key issue this past year. Recent news that only half of China's new buildings being constructed meet national standards was a serious setback to China reaching its goal of making buildings 50% more efficient by 2010.

It is encouraging that the National Reform and Development Commission—which is charged with promoting sustainable development strategy—has presented a series of industry sectors that are to be prioritized going forward, including oil and chemical, renewable energies, material sciences and environmental technologies.

The case for sustainable development in China is strong. The government is behind it, and forward-looking businesses are aligning themselves with it.

Considerations for building a sustainability program

For companies doing business in China, sustainability should be a key ingredient of corporate social responsibility (CSR). Traditionally, CSR activities have focused on philanthropy rather than active engagement. Now, numerous MNCs are offering CSR programs that emphasize the environment, the community and employees.

Also, there is a growing tendency toward “owning” an area of CSR. This approach will be increasingly important for companies looking to stand out from the crowd as more organizations look to demonstrate commitment to China through sustainability. Instead of holding sporadic, one-time events or sponsorships that are unrelated to the company’s business strategy in China, CSR programs—including sustainability initiatives—must be clear, integrated and seamless.

Steps to sustainability

Here are specific recommendations for companies building sustainability positioning in China:

• Make a well-informed and well-researched decision to choose a particular area of sustainability-related CSR that is strategically worth pursuing in China and then seek to own it.
• Seek a trustworthy, established partner, such as a Chinese government agency that is trusted for long-term relationship building and joint program creation.
• Tie in strategy with employee relations, allowing China staff to become engaged.
• Ensure that benchmarking is built into the system. As Chinese become savvier about sustainability, they will also become more skeptical. It will be essential to make available hard data on just how sustainability initiatives deliver results rather than just engaging in promotional activity.
• Develop comprehensive intelligence around the “owned” sustainability property and build thought leadership around that approach.
• Proactively communicate what you are doing.

China ... on the right path

Clearly, sustainability and environmental issues are not going away any time soon. China has much to do as it moves from being a developing nation to being a fully developed country. Companies and organizations are wise to align their business strategy with the country’s sustainability trends. Those that do will win.

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By John Morgan,
jmorgan@golinharris.com

Public Relations has clearly changed and prospered in many ways over the past 12 months in Hong Kong. The industry is more aggressive than ever before as agencies jostle to support the thriving HKSAR economy, which naturally feeds into China and all other parts of Asia. It's no longer a matter of survival for agencies; it's a matter of securing the right clients who truly understand how communications can drive their business strategies. Then, it's up to us to design and execute strategies that deliver, regardless of approach or the traditional boundaries of PR.

Many businesses remain cost-conscious years after SARS, 9-11, economic deflation and a new chief executive supported by a new, more progressive administration. Business leaders with vision understand the need to invest in communications-uniting it in meaningful ways beyond products to more far-reaching commitments such as sustainability, CSR and issues management-and then put in place strong advocates at the board level to ensure follow-through.

The key to success is simple: Don't limit yourself. Hong Kong has always been a place where people work tirelessly to succeed and entrepreneurs thrive. PR practitioners must have the chutzpah to keep pace. For instance, pharmaceuticals are thriving, but the regulatory environment is and always will be strict. How do we work around that? How do we stay within the bounds of the regulations but still employ enough creativity to catch the attention of consumers?

We did that for Bayer with an idea called "Dramics," drama combined with comic strips, which communicate messages about male erectile dysfunction in a playful yet meaningful way. They have led to amazing sales increases for ED drug Levitra and given the brand a place alongside iconic competitors. Our PR agency felt a press release just wouldn't get the job done. We didn't box ourselves in to an antiquated brief and we won in the end.

But if I had to choose the two greatest opportunities (which are also the greatest threats), it would be new media and sustainability.

We at GolinHarris have a commitment at the global level that every plan we submit to clients must have a new media component. But does this work in Hong Kong? I would say we're close, but we're not there yet. Certainly, new technologies are having a profound effect on how information is consumed, how perceptions are formed and how people live. However, the storm hasn't really hit us here yet in Asia-in my opinion, it's still brewing.

In Hong Kong, bloggers are having more of an impact not on the individuals who log onto their sites, but on traditional journalists. Studies have shown that more than 50% of journalists read blogs daily, which inspire story ideas and even quotes. These citizen journalists are clearly impacting change. They're seeding activism in rapid-fire ways through rapid-fire technologies on messages that, frankly, aren't always based in fact. Then again, bloggers are also blowing the whistle on activities that used to be very easily hidden. Those of us who have been in PR for a while remember the impact CNN had on the news cycle not so long ago. (Remember the days when we had to wait for the 6:00 news?) Well, the new media impact is clearly more profound and certainly without boundaries.

With that all said, corporates here in Hong Kong still haven't picked up on the power of new media. They understand how to use it to drive sales and maybe enhance their brand, but not to manage sensitive issues or to drive corporate reputation. Many believe they have new media well covered with a comprehensive website. Consumers want more today. They're not static bookworms, they want interactive dialogue...two-way conversations in real time!

Corporates in the U.S., for instance, tend to have three kinds of blogs: CEO blogs, Customer Relationship blogs and CSR blogs. Again, we see some of these in this part of the world, not many. But when the Hong Kong Chief Executive launches his own blog to share experiences from his personal life (one that is not focused on the issues), one would think this would serve as inspiration for corporates to open up a bit? Well, some have, but most have not.

But activists sure have new media figured out. An increasing number of pressure groups and NGOs use new media to mobilize public support over controversial issues. It's their powerful new way to seek an alternative means to influence policy-makers and other concerned parties. Local Hong Kong chapters of Greenpeace and Friends of the Earth, solo activists on their PCs and even well-respected activists such as Christine Loh are communicating their views daily for all to see (with no subscription required!).

Shifting to sustainability, I should mention that as I write these comments, I'm on my way out the door to a speech by Al Gore entitled "Ethics and Sustainability." Years ago, many thought of the former U.S. Vice President as a softy, an alarmist, and a guy who once claimed to have invented the Internet. Today, he's helped lead a charge to wake up the highest level of corporate leaders who now throw sustainability challenges to their board members with very bold five-, 10- and 15-year goals. Sustainability commitments have gone from rhetoric to very real, very specific action plans designed to tackle some of the biggest challenges facing business and the world today. From climate change and fair trade to waste and raw materials, and the list goes on.

In Hong Kong, we're seeing two mindsets. Local businesses are still wondering what they need to do about this. Meanwhile, those that are part of a larger mothership are being requested by their HQs to adapt and localize very sophisticated global sustainability commitments. But a select few are going for broke. Take the Dow Chemical Company, for instance, which is launching "The Human Element" campaign in China as part of their 2015 Sustainability Goals. They've made a significant commitment to explain and then inspire Chinese people about what sustainability is and why it's important.

So here's what the changes in Asian PR over the past 12 months really come down to, at least specifically in Hong Kong:

• There's a shift in media preferences. We must use a multi-faceted approach for solid PR - radio, print and TV is just the beginning.
• New and traditional media must co-exist. The key is applying the right mix of media strategically.
• More so than ever before, we need to be more specific about potential and target customers/ stakeholders, map out their concerns/ issues/ wants/ needs/ desires, and provide a tailored discussion platform to communicate directly.
• Never underestimate the speed and geographical coverage of spreading news and opinions. Try to digest the authors' key messages as quickly as possible, then respond promptly and constructively. And then once you've done all that, blog away my friends. It's a daily newspaper at your fingertips.

In other words...you snooze, you lose.

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By Nikki Lin
nlin@golinharris.com

Brad Burgess
bburgess@golinharris.com

When flipping through the pages of a European or North American newspaper, it is more than likely the reader will come across an article related to China. Mandarin Chinese is quickly being added to school curricula in the West as students and parents identify it as a key second language. The world is watching China and cares very much about what kind of country it is becoming as it takes a more prominent position on the world stage.

The public relations industry in China is in a similar position. Like China, the industry is growing at a very impressive rate. According to a recent survey conducted by the China International Public Relations Association, the public relations industry had grown by approximately 33 percent in 2006 compared to a year prior (2006 Report of the China Public Relations Industry).

In 2005, an article in PRWeek (UK) titled "News analysis: China's PR leap is brought to earth," claimed that 7,000 new staff would be needed in 2007 to work in the PR industry, and 9,500 in 2008.

What does all this excitement mean? It means that just like China's economy, the PR industry's rapid growth presents many opportunities-and many exciting changes.

Changing Trends

PR as an industry is relatively young in China. Some experts affirm that the industry is little more than 20 years old and that real maturation in the field has only come about recently (Mao Jingquan, chairman of the Shanghai Public Relations Association, Shanghai, October 18, 2006).

While this may be somewhat unsettling, the good news is that the PR industry is developing and professionalizing very quickly and positively. There are many reasons for excitement.

First, professionalization is raising people's perceptions of the industry. As most China watchers know, guanxi (the Mandarin term for relationships) has a very important place in Chinese life. The very epistemology of PR, which includes this term, is problematic in China. When one mentions working in the "connections" industry, it is understandable why most Chinese are confused as to just what that means. Many Chinese misunderstand PR as a job where beautiful practitioners wine, dine and provide services to clients. Thankfully, increased educational programs in PR and other factors are helping to change this perception.

Clients are also seeing the increasing value of PR to their brands, and they are seeking strategic communications counsel from their agencies. Public relations companies in China have traditionally been event-centric. This is changing. While events continue to play an important role in brand promotions, it is becoming increasingly recognized that they need to fit within an overall strategic framework supporting the brand communications strategy.

Second, the media environment in China is changing rapidly. China's media environment is one of the most complex in the world. There were nearly 12,000 publications nationwide in China as of 2006 (McCann). Going forward, there are some noteworthy changes worth paying attention to as media becomes more competitive. To increase sales, media coverage is becoming more edgy and critical. One of China's top financial magazines, Caijing, is known for its incisive and investigative coverage and is highly regarded by foreign media in China. There is also a trend toward more consolidation, moving away from fragmentation and complexity in the media.

Next, the very nature of communications is changing in China. Younger Chinese love sharing information with each other in online communities, such as blogs and BBS forums. As this group seeks authentic engagement and truth, these media and other new media are becoming increasingly important.

Issues

While the China PR industry is exciting, the industry faces some very real issues. One major problem is retaining staff. Again, there is a clear market demand for PR professionals. The natural downside of this is staff bouncing from one agency to the next seeking higher pay. Staff frequently receive phone calls from recruiters, and if company loyalty is low, the staff listen. This also allows salary packages to be renegotiated very quickly in exchange for retention. Many practitioners move up a position in a year's time. The dangerous result is the possibility that staff in management positions have not had adequate management experience.

Another major problem is that there are so many players in the industry. With more than 2,000 local agencies and most major international agencies operating in China, there is plenty of competition. While competition is good and will ultimately help agencies offer better services for clients and raise the bar in general for the PR industry, many of the agencies are very new and do not have specialized knowledge in strategic communications. Many entrepreneurs note the industry growth and decide to get into the game with little experience, skills or expertise.

Public relations is a very exciting field, and perhaps nowhere is the industry more dynamic than in China right now, where it is growing and changing at a rapid speed. Like many things in China, as the industry develops it will learn from others, but it will also develop a very Chinese character. 

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By Jean Gonsoulin
jgonsoulin@golinharris.com

Those of us in the baby boomer generation, and perhaps those who followed, remember the cautionary rule for traffic safety we learned in school: "Stop, look and listen, before you cross the street." The same basic concept can apply to managing crises or volatile issues. When companies find themselves under attack, they often scramble to do damage control without really addressing the underlying problem. Instead, they need to do the things that fall naturally under the simple mantra of "Stop, Look and Listen" in order to truly resolve the issue and preserve the company's reputation.

Stop...doing what you're doing. Whether it's bad business practices that have now come back to bite you, or personal missteps that reflect poorly on the company, the only way you truly fix the problem is to stop doing it. Obviously the rule does not apply to crises that are beyond your control, but in those instances, the public is much more forgiving.

Remember, the true measure of a company's reputation is how it behaves when others aren't looking; so if you do things that are ethically or morally inappropriate, providing "key messages" will get you nowhere if fundamental change is not made.

Look...at the issue from all angles and see how you can right things. Critical self-examination can be a painful process, particularly when a company has been accused of wrong-doing or is the subject of negative publicity. The natural inclination is to go into a defensive posture and make justifications for why the situation occurred. However, the smart company will step back, look at the issue, figure out how it got to this point, determine what changes can be made to rectify it and come up with honest explanations for what cannot be changed.

Your constituents and the public as a whole can be understanding, and even forgiving, in a crisis if you are candid in your admission of your failings or shortcomings, and you make an honest effort to right the wrong. They will accept your limitations if your explanations are credible and they see that you are committed to doing the right thing.

Listen...to your constituents - internal and external. With issues management, it is important to consider all audiences impacted by the situation and its resolution. Too often, companies only consider their investors or the media. However, employees are usually shaken by crisis and their morale becomes a factor; vendors or partners will have questions and their confidence in you can flag; and certainly, customers can turn their loyalty on a dime over a problem.

In crisis or issues management, the first step should be to list every possible audience involved or affected. Then consider what each one's concerns will be with regard to the situation and what their individual communication needs will be. Are they worried about their job? Do they need to hear from you as the CEO? Should they hear from you in person or will a reassuring email or company-wide voice mail be sufficient. It's not enough, though, to reach out to your audiences; there must be a mechanism in place for a two-way dialogue because your audiences want to be heard.

Then, it's important to listen. What is the feedback to your communications? Are there valid suggestions for making changes? By carefully listening, you can determine whether your efforts for reform or remediation are making a difference and ultimately restore trust among your constituents.

There are certainly no hard and fast rules when it comes to crisis and issues management because every situation is different. But there are some elementary guidelines to follow that can help you navigate a bumpy road.

First and foremost is to do the right thing. Even with investor demands to turn higher profits, or management pressures to gain great efficiencies, a company must ultimately operate ethically and have faith that the rest will fall into place. And operating ethically means doing the right thing, fixing things when you don't, and listening to the people who matter. Taking the time to stop, look and listen before you cross the street can save your life. Doing the same with your business can save your reputation.

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By Jeff Beringer
jberinger@golinharris.com

As we look forward to the next 50 years of communication, many in our industry are trying to predict which channels and information sources audiences may trust most in the years ahead.

Will mainstream media be obliterated by "citizen journalists" who self publish their thoughts on a whim -- and who don't always subscribe to conventions of journalistic integrity such as rigorous fact-checking and multiple sources commonplace in mainstream media?

And will online/digital sources of information replace the stalwarts of the media world today? Or will the biggest names in news simply keep evolving their product offerings into new formats?

The answer is probably somewhere in between.

Today, LexisNexis unveiled the results of a new survey asking consumers about the kinds of information channels and sources they trust most today for critical news (such as pandemics, looming weather events, etc.), and which sources they'll likely rely on in the future.

A few of their key findings:

• Today, consumers still trust "traditional" media most for critical news -- "traditional" defined as professional journalists from newspapers, television and radio (and their related Web offerings)
• Emerging media including citizen journalists (eg, bloggers), Web-only news outlets, and direct to audience communications tools like podcasts took a distant second in trust for "breaking" news.

Neither of these two conclusions should come as a big surprise. But it's important for professional communicators to read between the lines here: The method by which information is published or shared isn't nearly as important as the credibility of the source and the journalistic integrity behind the information. New media channels such as Web-based news outlets are among the most trusted information resources, so long as they're authored by someone who can be trusted to tell it to you straight.

It's also important to note that this survey speaks primarily to breaking news -- like the live reports from the shores when a hurricane is coming in -- not more "niche" news that's specific to an individual's interests. Other studies clearly show that consumers rely on the Web for finding more in-depth information and dialogue about sharply-defined topics of interest. While the Today Show or MSNBC.com may cover a myriad of technology-related stories, Apple loyalists may find more news and opinions specific to their interests on The Unoffical Apple Weblog (TUAW).

The Internet has made it easier than ever before to get news on demand any time of the day, on any particular topic. And as consumption of "traditional" (print newspapers, magazines, TV) continues to decline across many demographic sets, more and more individuals are feeding their growing appetite for news -- particularly news specific to topics of interest -- by going online. As consumers get more comfortable with getting specific news online, you can bet that they'll get (and trust) more of their "breaking" news from online sources too.

Lexis-Nexis went on to ask survey participants about how their media consumption habits are likely to change in the future.

The key take-away? Most consumers say that, in the future, they'll be a bit more "inclusive" in their media consumption, relying on both traditional/mainstream/established media channels and more "emerging" channels such as bloggers and direct-to-consumer sources like podcasts.

As we continue to evaluate the right channels for communicating with our target audiences effectively, it will become increasingly important to understand which information sources, channels and technologies they trust most. And adapt the way that we tell our clients' and organizations' stories accordingly.

At GolinHarris, we're investing a great deal of intellectual capital in preparing for the changes already underway. We're refining (and in some cases, building anew) the processes and tools that allow our teams to move quickly with changing consumer media habits and build creative campaigns that reach audiences effecitvely in the myriad of channels they trust.

One such example of this is Dialogue -- our approach for delivering client messages across relevant channels whether online, offline, or even experiential. For each client's unique communications challenge and audience, we devise a creative strategy and deliver messages appropriately through the right mix of channels that matter to the people we're trying to reach.

50 years from now, it's hard to imagine exactly what the landscape of influential media might look like, but it's safe to say those with a track-record of accuracy and balance in reporting will come out on top. Whether it's online or off.

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By Fred Cook
fcook@golinharris.com

As GolinHarris celebrates its 50th anniversary, we decided to look into the future. To better understand the issues facing our company and our clients it was best to look at the next 50 years.

We conducted extensive research and identified a few trends that we feel will have a major impact on society, consumers and companies. Here is our take on a few of them.

GLOBALIZATION

Globalization, the first of these trends, is at the center of this changing world. All businesses are dealing with the reality that the universe is shrinking. Brands are universal. Time zones are meaningless. Go global or go home!

As companies look to compete globally, outsourcing will become common practice in the coming years. According to Forrester Research, at least 3.3 million white-collar jobs and $136 billion in wages will shift from the U.S. to low-cost countries like India, China and Russia by 2015. Many of these will be white-collar jobs. In fact, some insurance companies are already sending heart patients to India for less expensive surgery. As every major company expands into Shanghai, Mumbai and Warsaw, the PR industry is customizing communications tools for those markets. But the global marketplace is complex.

Barriers to business are at an all time low, but cultural sensitivities have never been higher. Experienced marketers will continue to adapt American consumerism to fit new territories. But in regions like the Middle East and Asia, cultural differences can present huge hurdles for U.S. brands, as seen by the controversial introductions of Rolling Stone magazine into China and Playboy into Indonesia. The same issues apply to foreign companies like Dubai Ports World and the China National Offshore Oil Corporation (CNOOC), whose attempts to enter the U.S. market were greeted with a firestorm of criticism. The reaction in the Muslim world to the Pope's recent comments highlighted the world's current cultural divide.

Moving forward, effective international communication will require more than reach. It will demand local sensitivity. It will be the "glocal" brands that will succeed in the era of globalization - companies that understand local behaviors and preferences.

MULTICULTURALISM

A second, very important trend is unfolding inside the U.S. - multiculturalism. Buoyed by higher birthrates and increasing immigration, minorities will comprise one-third of the U.S. population by 2016.

Every business has to consider the impact and opportunity of a rapidly expanding Hispanic population. The census bureau predicts that by 2050 one in every four Americans will be of Latino ancestry. In Los Angeles, that number is already one-in-two. Hispanics represent both the fastest-growing and largest minority group in the U.S. By 2020, they will represent one-half of the growth of the U.S. workforce. The recent U.S. elections are just a preview of this diverse group's future power and influence. Exit polls show that Republican candidates won only 30% of the Hispanic vote - the fastest-growing segment of the electorate - while Democrats garnered 69%.

But the cultural shift won't be limited to Hispanics. America will likely see an African American president within 20 years, and Asians, the second-fastest growing ethnic group, will become increasingly influential in American society and business. Already there are 635 Asian media outlets in the U.S. and that number expands daily. In the next 50 years, the minority will become the majority. Multiculturalism will be mainstream.

Multiculturalism is not only an American phenomenon. In Dubai, 80% of the population is made up of foreigners who are contributing to the growth and development of that thriving country. In the future, European nations will rely on immigration to help counteract their declining populations, which according to Eurostat are expected to fall from 461 to 450 million in the next 50 years. But growing minority populations can create cultural clashes, as we have recently seen in France where, according to some estimates, one quarter of the population will be Muslim by 2030.

We are experiencing a "cultural fusion." Globalization and multiculturalism are rapidly merging diverse cultures into a blend that will impact every aspect of society, including music, movies, food, fashion, and of course business. This seismic shift will transform communication. It will not be enough to address emerging cultures by simply creating separate practices to focus on individual ethnic groups. In the coming decades, the current ethnocentric approach to public relations will be replaced by a more holistic perspective. Future PR professionals will understand the differences and sensitivities of different cultures - because they will be part of them. Around the globe, an increasing number of young multinationals will join the profession, mirroring the diversity of the world they live in.

LONGEVITY

There is another demographic group that deserves special attention. Currently in the U.S., there are some 80 million Baby Boomers. In China, there are 343 million. By 2020, the Centre for Aging in London estimates that there will be nearly 700 million individuals in the world that are over 65 years of age. By 2050, 35% of Germany's population and 42% of Japan's will be over the age of 60. It will be interesting to see how these efficient societies manage the issues associated with an aging society.

The longevity of this age group represents a global business opportunity and a corresponding social challenge. This year, 330 American Boomers will reach age 60 - every minute - all year long. On the average, they will live to be 77. In another 20 years, life expectancy may surpass 80 years. In 50 years, it could be 85.

Smart marketers are awakening to the enormous buying power of this older consumer, whose home equity alone exceeds $3.5 trillion. The changing needs and priorities of the "Zoomer" generation, which expects to jog into the afterlife, will drive demand for products and information tailored to their unique lifestyles, which are centered around travel, entertainment and wellness. In fact, Baby Boomers purchase 45% of the world's digital cameras. Why? To take pictures of their vacations and their grandchildren.

But all Boomers aren't wealthy. In fact, in many developing economies they are the poorest segments of society. By 2050, worldwide healthcare costs will double. And in rural China, almost 80% of the population has no health insurance.

Governments alone can't solve all the issues related to this demographic explosion. Business will have to help. In 2030, there will be two workers paying into U.S. Social Security for every one beneficiary, compared to seven-to-one when it was created. By 2050, global healthcare costs are expected to double. What will retirements look like? Who will pay for them? What amount of public resources are appropriate to prolong life? Who gets to decide?

The answers to these questions will have a huge impact on the health care industry and on every organization with retired workers, like General Motors, which has three times as many retirees as employees. Issues related to longevity will dominate political campaigns and public policies for the foreseeable future. The leaders of the PR industry, most of whom are part of this aging generation, should play a major role in addressing them.

THE CONNECTED CONSUMER

These societal trends are emerging amidst an earthquake of change for the individual. Technology, of course, is playing a major role. There is no question that the world is becoming fully digitized. In 2005, worldwide computer sales reached one billion, and it took 30 years to get there. It will take only three years to sell the next billion. And by 2007 that same number will be connected to the Internet. Consumers worldwide purchased over 800 million cell phones in 2005, bringing the installed base to two billion. China boasts the world's biggest number of subscribers at 350 million, which is expected to grow to 600 million by 2009. 50 million PDAs are in use right now and that number is growing at a compounded annual rate of 40%. Globally, Apple has sold 40 million iPods, which analysts predict is only 10% of future sales. These are the devices that will carry the messages of the future.

Along with the rise of technology comes the rise of convergence. Today a cell phone can be used for text messaging, emailing, couponing, taking pictures, playing games, surfing the Web, downloading songs and scanning barcodes. In Asia, Muslims are using mobile phones to indicate the direction of Mecca and send them prayer alerts five times a day. While in India, worshipers can send text messages to the temple of the Hindu god Ganesh. In three years, 210 million people worldwide will watch television on their handsets. By 2011, 25 million Americans will swipe them instead of credit cards.

Broadband will lead the way to a future where data, voice and video, from a single provider, will converge on a single platform. By the end of this year, more than half of American homes will have broadband. By 2010, there will be 500 million subscribers worldwide, 50% of them will be living in Asia Pacific.

The most significant convergence is expected to be Voice over Internet Protocol (VoIP). According to ZDNet Research, the number of residential VoIP subscribers worldwide is expected to increase to 151.2 million by 2010, an annual growth of 57% from 2005. A perfect example is Skype, an internet phone service that in three years has gained 100 million users worldwide, permitting free long-distance calling from PC to PC. Available in 27 languages and used in almost every country around the world, Skype is developing a cult following much like Google, where users say, "Let's Skype."

Anyone who lives with a student beyond fifth grade knows that 75% of today's teens communicate by instant messaging. And a quarter of those say they choose to "IM" their friends - even if they're sitting in the same room.

The appeal of being "always on" isn't the importance of what's being said. It's just being "always on." Millennials, born after 1980, worry that "if I turn off my phone and don't check my email, I won't exist."

Future marketers will need to be as conversant with the medium as they are with the message, and they will need to leverage every channel to effectively reach their multi-tasking audience.

Tomorrow's savvy customers are coalescing at an unprecedented rate in a new world of social networking. Gen X is history. Gen Y is passed.  Today, it's all about generation MySpace.

Consider this: 100 million people around the world have set up their own personal pages on MySpace in just two years time. The site reportedly attracts new registrations at a rate of 230,000 per day, and is the fastest growing site on Google, with more page views than eBay. Membership is expanding by five million a month. In 10 years, MySpace could easily be one billion strong, which explains why marketers like Nintendo and Disney are using it to launch new products. By 2010, eMarketer estimates, ad spending on social networking sites alone will hit $2.15 billion.

NEW ACTIVISM

Growing alongside new media is another trend -- new activism. Its clearest manifestation is the rise of non-governmental organizations or NGOs. According to a UN report, there are nearly 40,000 international NGOs, and even more national ones. More than two million currently operate in the U.S., most starting in the last 30 years. By the middle of this century that number could double.

As tight budgets force a retreat by governmental agencies from many corners of the public arena, NGOs are more than ready to jump into the breach - many driven by their own non-negotiable social, political or religious agendas. They are growing in power and they have the tools to change the equation. If a company feels wronged by a newspaper or TV station, it can always threaten to pull its ads. Try that with a blog. Look at what "Free Republic," a conservative internet forum, did to Dan Rather and CBS. How about what "Smoking Gun" did to Oprah and her endorsement of James Frey's "A Million Little Pieces?"

There are no secrets in this brave new world. But it isn't big brother that is watching. It's the people. Every activist group, no matter how small, has the weapons in hand to attack a major corporation and sometimes bring it to its knees. Insight and experience dealing with NGOs will be a valuable asset in the protection of corporate reputation. It will no longer be enough for companies to simply inform activist groups about what they are doing. In the future, they will have no choice but to engage them in the process.

AUTHENTICITY

Despite the dramatic changes in demographics and technology, there is one overriding constant - the human element. As the world becomes more complex, more diverse and more connected it also becomes more human. More real. This points to the most important trend of all. It's permeating our culture and changing our business. The trend, in a word, is authenticity.

Last Fall, a study conducted by Yankelovich found a near-universal disgust with the quality of all types of leadership in America. People are fed up with politicians, business, religious and charitable leaders and particularly, journalists. 64% said our leaders have been corrupted, simply by being in power. 73% said leaders are out of touch with the average person.

People are demanding authenticity. You can see this in their choice of entertainment. Years ago, Hollywood never would have supported films like Super Size Me, Grizzly Man, March of the Penguins, or a low-budget documentary like An Inconvenient Truth. But they became hits because enough people declared them authentic. And, while Taylor Hicks and Kelly Clarkson may not be the most talented singers in the world, more people voted for the 2006 season finale of American Idol than they did for the 2004 U.S. Presidential election. In fact, Super Girl, the Chinese version of this popular TV show, draws a viewing and voting audience of 400 million!

On the Internet people are looking beyond the established sources to get information. Five out of the top 10 websites are based on consumer-generated content. Wikipedia is the #1 online reference destination with 67,000 active contributors working on more than 4.6 million articles in more than 100 languages.

The most talked about advertising campaign this year was Dove's "Real Beauty," which featured very authentic women.

We're at the dawn of an era where people want authentic stories about authentic people. And PR people are the storytellers. It's our job to help find the authenticity at the core of our companies and clients, and tell those stories to the world in real words that will really be heard.

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By Idil Cakim
icakim@golinharris.com

The emergence or blogs, wikis and social networking sites has pushed many communication professionals to the defense lines. Thinking of negative or misinformed comments posted in public forums, many associate social media with potential liability.
Yet, the same technologies that allow Internet users to post and circulate information in the blink of an eye can be used to communicate proactively during crises - when companies need to provide fast, accurate and candid information to their stakeholders.

Authenticity is the essence of social media. Using social networks to spread messages to consumers can give organizations the sincere, human voice they need to maintain trust and rebuild connections. An example of this novel approach recently came from JetBlue. When the airline's passengers were stuck for hours in aircrafts after a winter storm, the airline founder and CEO, David Neeleman, stepped up and apologized to his customers. JetBlue partnered with the user-generated video site YouTube to distribute the CEO's message to the airline's prospect, current and future customers. The video "Our Promise to You" was viewed over 275,000 times in a month. Close to 500 people left comments, many passed Neeleman's message to friends and family. The video appears among the top 25 findings on Google when searching under "jet blue," increasing the visibility of the company's response.

JetBlue has a 360-degree approach to online crisis communication, providing information and seeking customer feedback on an ongoing basis. Indeed, Neeleman sustains communications and gives updates on the progress his company has made since the winter-storm debacle on his flight log located on his company's Web site. His blog entry "Talk is Cheap" links back to a contact us area that solicits complaints as well as compliments. Using tools that create a direct and open dialogue between the company and its customer base, JetBlue makes a successful attempt at earning social capital and managing its reputation.

While the JetBlue case may represent a unique approach to corporate communications, conscientious cybercitizens have long been using social media tools to build networks during crises. Following the devastation of Hurricane Katrina, New Orleans Metro bloggers reported from the affected areas and beyond providing local and up-to date accounts of the rescue efforts. Those looking for missing relatives filled the blogs' comments sections with names and tapped into the blog reader networks to get information on their loved ones. Sympathetic citizens beyond the New Orleans area also used blogs to communicate with those who wanted to help and organize efforts. Grace Davis from Santa Cruz, CA, set up the Katrina blog in August of 2005 and kept it live for a year, coordinating volunteer efforts and directing care packages to the right shelters.

Another example of an online help center built by cybercitizens is the Southeast Asia Earthquake and Tsunami Blog. This site is still alive, drawing over three million visits. The blog links to a Tsunami help wiki, which connects personal, state and agency sources with those who need assistance following natural disasters.

Crises are disruptive events. However, companies can re-assemble these broken pieces by transmitting the information through human networks - Internet users linking to one another, alerting each other and taking action online/offline. With easy-to-use tools such as blogs and wikis, individuals, non-profit organizations, new and established companies can go through the same channels to raise awareness, inform and reach stability.

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By Christian Fuchs
cfuchs@golinharris.com

More and more companies want to distinguish themselves as a brand. But how do they communicate this general orientation? Many of these companies acknowledge, with a view to potential clients, the importance and necessity of appropriate usage of communication tools. They therefore specifically invest in Corporate Identity, PR and/or advertisement.

However, to what extent brand communication is able to influence the value of a company is often disregarded. At this, many other target audiences must be factored in - staff, media, opinion leaders, associations, action groups and all that make investment decisions.

Indeed, investors seldom reveal that not only do they orient by hard facts and profit forecasts, but they also take into account the image, which was created by the continuous and appropriate blend of brand communication tools. But surveys show the often-unforeseen high impact of brand value on a company's market value. According to PriceWaterhouseCoopers, the brand value/market value ratio for industrial goods is around 18%, while short-term consumer products hit an average 62%. Brands can account for up to two-thirds of market value, like Beiersdorf or BMW for example. The embodied brand value expresses the present value of prospective profits that are solely generated by means of brand presence. This means, the stronger brand presence is embedded in target audience, the more communication is able to strengthen the company's value.

Brand Value Measurement Pays Off

Another aspect plays an important role in the accretion of company value: the measurable brand value, especially in comparison with other brands and during nondiscriminatory evaluations. In the last couple of years, many methods have been taken root that not only affect investor relations work, but also the planning of marketing budgets, mergers and acquisitions as well as leveraged buyouts. At the same time the demand's price elasticity can be ascertained.

The market value's intangible components are taken alongside its physical brand attributes into account. "Goodwill" (the difference between potential purchase price and book value of a company and its brand portfolio) thereby plays a crucial role. However, only few from over 20 different evaluation methods, like the cash-flow-method, are accepted even by international financial reporting standards (IAS/IFRS). In order to chose the right evaluation method, a company is well advised to define the purpose and value of an analysis before committing itself to a very time-consuming and costly measurement of its own brand value.

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 By Nicolaus Wilk
nwilk@golinharris.com

In search of the next big trend and potential pivotal market, marketers need to keep an eye firmly fixed on Asia. As governments across the region place an increasing emphasis on building brands, more and more companies are running global accounts from the area, creating great opportunity for marketing services.

Asia has a unique mix of political systems and economies; religions and cultures; and companies and industries. This mix and match creates a necessity to adapt, resulting in widespread innovation across the region, and bringing with it a prominent role in industrial manufacturing.

In fact, many large Western brands have their products manufactured in Asia through the dreaded process known as outsourcing.

However, Asia is also home to many large brands, having transformed the processes learned through outsourcing into proprietary techniques for own brand production. And, according to a recent study by GolinHarris and FutureBrand, this trend is likely to increase.

In November 2006, GolinHarris and IPG sister company FutureBrand conducted an internal study to see how five Asian countries were promoting domestic brand building, and how this could potentially impact marketing in the region. Several common trends emerged.

1. Asian governments are viewing branding as a key to increasing economic growth. Phrases such as "compete with the globalization of industries," "strengthen industrial linkage for economic growth," and "raise enterprise brand competitiveness in the global market" pepper government strategies. Recognizing the link between brand development and economic growth also creates a great incentive for the governments to ensure the success of their initiatives.
   
   For marketers, these initiatives and link can only mean good news: more new emerging brands. Asia has become a hotbed of high growth companies, each looking to make their mark on the global economy and in consumers' heads. Competition is fierce, but the rewards high. In addition, marketers need to realize the strong link between nationalistic pride and domestic brand growth. Helping the emerging brands first grow at home will ready them for the international market.
   
2. Asian governments are directly investing in brands through various incentive packages. China, Singapore and Taiwan each hold "brand awards" with cash prizes. Malaysia, South Korea, and Taiwan provide loans, grants, or direct funding for international marketing.
   
   Recognizing and grabbing these incentives them are yet another service marketers can provide clients. By collaborating with the government, and also by staying abreast of local news and policies, the industry can provide a new and valuable benefit to clients, and can help some marketers stand out in a crowded field.
   
3. Asian governments recognize the need to monitor brand growth and highlight successful cases. The governments studied each are developing some form of brand tracking tool to measure brand growth. This will not only help convince domestic companies the value of branding, but can also help replicate success.
   
   As the marketing industry strives for continued innovation and accomplishments, national brand monitoring and best practice case studies can help create new benchmarks and foster industry learning. In addition, marketers can develop novel tools to assist the governments in defining brand growth.
   
4. Asian governments are training youth in branding as a key to sustained brand development. Many of Asia's largest companies are headed by the old guard; resistant to change and not open to branding. The governments have realized that these industry stalwarts will most likely not embrace new branding and marketing techniques, and have thus turned their sights on the next generation of workers, and even youth, to carry the mantle of brand pioneers.

This is a direct benefit to the industry, as a new crop of qualified staff is entering the workforce. Raised during the Internet era, the young workers are quicker to embrace the latest technologies and products marketers are rolling out. Additionally, government-organized training sessions provide a new platform for industry promotion and recruiting.

With broad government, industry, company, and consumer support, brands from Asia are now taking their seat among the world's top tier. Marketing campaigns are growing in size, and as government initiatives mature, GolinHarris expects more Asian companies to start developing global campaign accounts.

To assist in this development, GolinHarris maintains a network of 10 offices across the Asian region. GolinHarris not only strategically helps local brands step onto the global stage, but also supports Western brands in entering the region and grabbing market share. For more information, please visit www.golinharris.com

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By Stanley Liu
sliu@golinharris.com

Asia has long been the destination many of the largest Western companies have turned to for production outsourcing. Lower manufacturing costs and companies eager for business readily produced products for big name Western brands.

However, as costs have risen and margins drop, and as outsourcing has shifted from one low-cost nation to the next, branding has come to be seen as a necessity in the new economy in Asia. As governments across Asia realize the value in branding, and the power of brand value, they are increasingly taking a more prominent role in developing domestic brands.

Several Asian countries have implemented "branding" initiatives; government programs designed to spur domestic companies in developing their own brands. GolinHarris, along with IPG sister company FutureBrand, conducted an internal study to further mark the rise in branding.

GolinHarris and FutureBrand studied the national branding initiatives across five Asian countries: China, Korea, Malaysia, Singapore, and Taiwan. Research quickly revealed that each nation already has internationally famous brands, and that government's role is to now encourage other domestic manufacturers to develop into new potential blockbuster brands.

In China, the government has earmarked RMB 700 million (US$87.5 million) for its Brand Promotion initiative. Buffering this national branding program are efforts conducted by regional governments, which hope to reap the economic rewards of strong brands.

China hopes its branding efforts will help the country "compete with the increasing globalization of industries and services" against other nations. The government assists companies by: sponsoring branded companies in attending international exhibitions; helping branded companies place advertisements in select markets; and by aiding companies in setting up marketing agencies and sales channels. Regional governments provide prizes to top brands in a measure of direct investment.

Korea's decades-old governmental policy has already paid dividends, as global consumers readily turn to consumer electronics makers LG and Samsung. The two conglomerates, along with Hyundai and Daewoo, previously received direct government investment under their chaebol structure.

Now, the government is promoting its "Vision for Brand Power Korea 2010" plan, which centers on having 70 percent of total Korean exports come from brand name companies, and to place more than 10 Korean brands among the world's 100 most recognized brands list by 2010.

The government hopes to achieve these ambitious goals by providing brand education and access to branding expertise. Already Korea has set up a Brand Management Centre to deliver brand consulting, best practice, market trends, and consumer analysis to interested parties.

Malaysia has taken a different path, as it not only props up domestic brands, but has branded the country as a whole for tourism in its "Malaysia, Truly Asia" campaigns. The combination looks to turn the companies that provide the sights, sounds, and smells one sees on a vacation into global brands tourists take home with them.

To this end, Malaysia created its National Branding Task Force. The task force has the enviable challenge of formulating and reviewing national strategies to support potential brand growth, and will identify and approach companies to undertake brand-building activities. In addition, the task force will assist in reviewing and creating incentives to fund brand-building initiatives.

The city-state of Singapore already serves as a regional hub for many of the world's largest companies, but the goal of its BrandPact initiative is to further increase the strength of its domestic brands.

Singapore hopes to invest SGD 20 million (US$13 million) to promote the brand value of more than 5,000 domestic companies. The government will provide direct funding and sponsorship as part of the initiative. Other key programs include access to branding expertise and promotional activities such as the "Enterprise 50" list of promising domestic companies.

In Taiwan, efforts are underway to create an environment conducive to brand building. Taiwan is well known for its IT sector, with brands such as Acer, Asustek, and Trend Micro; but the island is competitive in many other industries, as diverse as yachts, bicycles, sporting goods, and even high-tech clothing.

The island's government last year kicked off its seven-year US$61 million "Branding Taiwan" campaign to encourage industries to shift from design manufacturing into brand manufacturing. Key to this progression will be: design training; establishing a brand evaluation system; and marketing efforts raising awareness of Taiwanese brands.

These five countries are not only representative of efforts Asia-wide, but also are helping create a template for future countries to follow. The potential exists for marketers to jump in and help grow new Asian brands from the bottom up - an exciting challenge for anyone in the region. While the process will be slow, the enthusiasm and government commitment ensure long-term success.

GolinHarris maintains a network of 10 offices across Asia to help Western brands enter the region and grab market share, and to strategically assist local brands in stepping onto the global stage.

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By John Morgan
jmorgan@golinharris.com

So, you've gone through all the strategy sessions, and like it or not, you realize you need a celebrity to help Client A make some waves to build their brand - particularly since Client A is a multinational with no real advertising budget and little resources on the ground in your pocket of Asia Pacific.

I'm not going to debate the use of celebrities in consumer PR. We all know it works well in some cases and not so well in others. Let's focus instead on the challenges many of us face today when the decision is made to use celebrities: limited budgets and the resulting need to be extremely practical yet creative in which celebrity we choose to endorse products; and then how we use said celebrity.

By both necessity (reduced budgets) and general disappointment, I've moved away from A-grade celebrities. Today, I'm a big fan of well-known personalities not quite in the A-grade celebrity mix - ambitious sorts with names strong enough to attract attention who also realize they need effective, long-term partnerships to help them advance their own careers. I hesitate to give this group a title like B-grade or Tier Two because that downgrades this underrated breed that can do an incredible job of building brands and selling products. But since we have to call these folks something, let's call the A-Graders the "Superstars," and their counterparts "Stars."

Here's a focus-on-the-fundamentals approach we've used with our "Stars":

Solid negotiation to ensure an effective partnership.
First, we interview the Stars like we would any new hire to get a good feeling of how well they would be able to deliver key brand messages. Second, we ask them to commit to learning about the brand and product - the emphasis here is that we need more than photo ops. We work hard to make sure it's a win/win situation from the start for both sides.

Familiarization Trips to Corporate HQ
We speed up the learning curve by taking the Stars to the client's base, where they learn all there is to know about becoming an effective spokesperson. Very often, we can package this experience with a media familiarisation trip to simultaneously generate media coverage. This works particularly well when the client is based in an interesting locale and can showcase manufacturing or R&D.

Advertorials
We generate plenty of photo ops during the familiarisation trip, which can be re-cycled in a variety of ways, particularly advertorials.

Cross partnerships
Most Stars are diligently working their careers over a number of directions such as sports, recording, film, etc. We leverage our existing relationship to create new opportunities by sponsoring our Stars' other activities, as appropriate.

Extend the budget
You obviously save cost by not using the Superstars. We leverage these savings to do more activities throughout the year.

Stay the course
We've had Stars become Superstars during the course of our multi-year partnership. We then simultaneously enjoy the benefits of both a Star and a Superstar.

There you go. My apologies to the Superstars I've worked with over the years (not that any of you remember me), but the Stars are just not the second choice any more...and for good reason.

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By Michael Fulton
mfulton@golinharris.com

There can be absolutely no compromise on ethics – you are either ethical or you are not. Ethics is a requirement for earning trust and at GolinHarris trust is more than a tagline, we live it everyday – especially in Washington, DC.

Recent scandals have rocked the nation's capital with unthinkable acts of bribery, forgery, deceit, mail fraud, over-billing and improper use of e-mail technology. Those on trial, convicted or charged with this conduct are surprisingly Members of Congress, their staff, lobbyists and defense contractors.

Those of us who communicate in government settings need to be on our best behavior at all times and set a model for others to follow. In my 25 years working in Congress and at this public relations agency, I would be hard-pressed to find a time where government leaders at all levels held such a low public opinion rating. In an election year, this is not a favorable trend for incumbents.

The reaction by Congress and the White House – as well as in some state capitals – has been to tighten the reins on lobbyists who enjoy First Amendment rights of advocacy and who add considerably to the public policymaking process.

Before any number of extreme measures are adopted, those of us working as lobbyists and public affairs practitioners need to be proactive, not defensive, as the dialogue continues. At GolinHarris, we continue to comply with existing measures and use our experience and position to strengthen industry-wide compliance among peers and clients alike. But, earning trust requires us to do more:

Reporting: We punctually submit the required twice yearly lobbying reports to the Clerk of the House and the Secretary of the Senate and register for each client we sign on. We go out of our way to abide by gift and meal limitations, even educating our Congressional guests to the "costs" of client and agency offerings of fellowship.

Education: GolinHarris as an agency is big on training, and we have added for our lobbyists and public affairs professionals special certification classes on ethics offered by the American League of Lobbyists and George Mason University.

Communication: At each staff meeting and gathering of the government relations team, we add time to our agenda to talk through any scenarios that could put our clients or us in an awkward or questionable position. Sometimes even the appearance of impropriety can send the wrong message.

Self-Policing: It is critical that we watch each other and provide checks and balances that will prevent any potential ethical breaches. Honest and candid feedback on client campaigns, tactics, sponsorships, events, campaign contributions and meetings is essential. Our company offers a toll-free hotline to report any questionable employee practices.

Enforcement: Congress has given those regulating lobbyists and communicators the tools and the teeth to effect improper behavior, and the overseers need to exercise their power before harsher rules and penalties are enacted.

Client and New Staff Orientation: We counsel each new client and new staff person working in government about the appropriate rules and regulations that must be followed to appropriately lobby Congress. We have turned down assignments for organizations that did not make us confident that they would properly advocate or would follow the rules.

Consultation: We don't hesitate to ask the experts when we don't know the answer to a possible scenario. Our experience is that the Ethics Committee, Secretary of the Senate, Federal Elections Commission, and other resources are able and willing to respond quickly to our questions.

The need for strong representation in Washington, D.C. and in our state capitals is as great now as it has ever been. Current unethical and criminal conduct should not deter those who have something to say and who need help voicing their opinions or ideas. There are far more dedicated elected representatives, eager staff aides who are in government for the right reasons and lobbyists, public affairs professionals and grassroots advocates who add value to our political debate than there are those who are making headlines and de-valuing our system.

GolinHarris is focused on building trust with our nation's policy leaders through ethics leadership and powerful communications ideas. For us, it's not a new concept – it's the way we've been doing business for 50 years.

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By S. Keith Burton
kburton@golinharris.com

Through 14 years of leading specialized teams in employee communications, change has been the watchword. Corporate re-engineering, cultural transformation efforts, waves of mergers and acquisitions, economic growth and decline, the introduction of new technologies, periods of recession and inactivity, layoffs and downsizing, labor relations campaigns, the globalization of business—all have dramatically influenced employee communications around the world.

Gone long ago are the days when employee communications practitioners were relegated to designing newsletter mastheads or video presentations. Our work is centered on providing strategic counsel in support of overarching business plans; creating information and tools to help align employee populations with business objectives; translating complex structural and organizational models so that front-line employees can deliver expected behaviors; and designing communications training programs to better engage employees in a client's business.

That's today. But what will our work become tomorrow?

I believe our future, just as our past, will show further evolution, additional refinement and continued advancement of the discipline to help influence the performance of corporations around the globe. To that end, following are the key trends we expect will influence the work of those who lead organizations:

1. New technologies will change employee communications as we know it. Is your company ready for the coming digital boom? AOL tells us it has more than 200 million registered users who send about 2 billion messages every day—and the workplace is increasingly the realm of IM users who employ the technology to work "real-time" together, regardless of geography or time zone. The further proliferation of technology—from e-mail to wireless devices to Podcasting to blogging and other electronic forms of communication—will dramatically alter ways we communicate internally. Today, communication is instant. It comes so forcefully and in such volume that many liken it to "drinking information from a fire hose." The ways we use new technologies to better filter information flow and to reach key groups such as sales and marketing professionals in the field, telecommuting employees and the growing world of contract professionals, will be essential to corporations. Doing so, however, will require rethinking our approach to content, customization and the adoption of new tools and electronic gateways to moderate and fine-tune information flow.
2. The age of specialization in employee communications will grow. A one-size-fits-all employee communicator is becoming a rare breed. Today's companies are increasingly seeking multi-disciplined professionals who can effectively leverage deep experience in employee communications with specialized knowledge gained from such areas as performance management, compensation and benefits, organizational design, labor relations and expertise in integrated marketing. Recently, a U.S. food producer asked for my help in identifying an employee communications specialist with packaged goods experience, clear knowledge in how to work with a large union population, expertise with the Stern Stewart & Co. Economic Value Added (EVA) model and an ability to create new models for leadership communication. Seeking this type of specialization and sophistication will continue as corporations increasingly leverage communications to achieve strategic business goals.
3. Diversity will remain front and center in our work. The true globalization of our economy is placing increased pressure on our discipline to finally solve its diversity challenges—both in terms of the professionals involved in these careers and in representing the true global nature of today's multinational corporation. Takeda Pharmaceuticals has adopted inclusion policies that welcome applicants from a multi-faceted segment of the population. These new policies will also seed Takeda with employees who can better translate and communicate the company's vision, culture, ideas and business plans. To effectively engage our global employees, we must ensure that our communications and communicators truly mirror the population and geographic locations of our people and can lead more customized programs for key internal audiences. As one client recently reminded us: "Just because our company is headquartered in the U.S. doesn't mean we want a U.S.-centric employee communications program."
4. The outside will increasingly influence the inside. For the past several years the Internet has grown in its influence of employee populations. Message boards at Yahoo, AOL and other websites are creating communities of employees and observers who increasingly, in an unregulated fashion, discuss and influence business performance, cultural practices, the flow of rumors in the corporate grapevine and both official and unofficial activities. Although the future role of blogs and bloggers has yet to be determined as a key internal communications channel, the external presence of these pundits is increasingly shaping our national and international dialogue. Beyond this, truly progressive companies will seek out ways to better leverage the "inside" to influence the marketplace as corporations come to realize that employees truly are one of their greatest assets.
5. Labor organizations will seek out new populations to organize—around the world. Labor unions have been losing power in American society for some time, and a smaller and smaller percentage of workers are members of labor unions today than has been true in many decades. Some analysts see these changes as temporary, part of the ongoing back-and-forth shifts in power in the workplace, while others see them as permanent and as indicating a major change in the workplace of the future. In many industries and sectors, the role of organized labor has been minimized to levels never before seen. To bolster membership we are witnessing—and will continue to see—labor reach out to new employee segments for membership. My prediction is that segments such as healthcare, professional services, software development and medical device manufacturers will experience increased organizing activity, as will places in the U.S. such as Baltimore (a healthcare hub for providers), Charlotte, Dallas, Kansas City and others as unions reach out to satellite UAW sites, aerospace centers, historic trucking hubs and traditional manufacturing centers now evolving in new ways. Look for union growth, as well, in international markets such as Mexico, Iraq, Cambodia and Australia, to name several, as multinational companies—Bechtel, Kellogg Brown & Root, Adidas, The Gap, J.C. Penney, Boeing, among others—seek to offshore jobs or expand global operations.
6. The struggle to reach manufacturing employees will improve. Front-line manufacturing employees have long been one of the more difficult audiences to reach and engage in corporate and internal communications. The sheer job demands of production cycles, "third-shift" operations and other time- and labor-intensive activities often pushes communications to the backburner. While face-to-face communications remains the most effective, successful companies are increasingly finding ways to reach front-line workers through wall displays, visual "performance dashboards" and, in some cases, through electronic channels such as interactive kiosks. The success that can be generated by increasing this audience's engagement and reducing turnover is a key to improving margins. As internal communicators, we must continue experimenting and piloting new programs that effectively engage this critical audience.
7. Audience-specific communications communities will become more prominent. The advent of intranet-based managers' communities—many call them "managers' portals"—has heralded a new age for audience-specific communications that many companies will turn to in hopes of meeting increasingly specific audience needs. Managers, sales and marketing professionals and others need information and strategies customized for their needs that are more direct and timely. Failure to do so will result in a failure of message cascading and bolster an impenetrable "Concrete Middle" as the river of communication flows around, rather than through, intractable second-level executives. How pervasive are the new intranet communities? At one location of a leading Federal agency, we found more than 2,000 web sites directed to the interests of special work groups. Rather than eliminate these sites, we sought to re-align and harness them with a more authoritative voice and in through a unified look and feel of a great organizational brand recognized globally.
8. The age of the celebrity CEO is dead. The past five years have proven firsthand that the age of the celebrity CEO is over. What the rise of corporate governance, corporate scandals, a focus on business ethics, securities laws and the Sarbanes-Oxley Act of 2002 could not kill altogether, time and a new generation of leaders have evolved. These new leaders are less "spotlight" and more "flood-light" in style. They are leading by consensus, focusing on performance, and listening more intently to their managers and front-line people. They have humility. They are less "I" and more "we" in style. They may have learned business under the Welches, Fiorinas, Gerstners and Eisners, but they practice leadership with a new style.
9. U.S.-centric versus global communications models to realign. For years, global companies based in the U.S. acted as domestic companies with international operations. This will no longer be the case, as companies—regardless of where they are domiciled—must learn to and adapt to their local market needs, differences and opportunities. Specifically, we are witnessing European and Asian markets prove resistant to employee communications messages and programs that are not sensitive or respectful of culture and operating differences.
10. Metrics to evaluate employee communications effectiveness will increase. Measuring employee behaviors and actions against employee communications activities still trails other key metrics for finance, human resources, sales and marketing. Our own model for Trust, Leadership and Preference is being adapted to demonstrate how specific actions that come as a result of employee communications practices will change performance in more measurable ways that translate in terms of quality, productivity and economic value.
11. "Real-time" communications will be increasingly pervasive. Grapevines now are electronic as well as traditional, and we cannot suppress or control them. They operate 24-7 and we must adopt a "real-time" view that ebbs and flows daily.
12. Home-grown talent proves to be greater asset. Many companies are increasingly realizing that they cannot meet their growth objectives without fostering and developing leaders from within. For these companies, now not only is recruitment important, but so is moving your leaders through the system to best leverage their institutional knowledge and skill sets.

We have reached an important plateau in the practice of employee communications. Gains achieved in recent years through best practice models have been adopted by leading brands, and those slow to adapt will catch up in the next two to five years.

It's now time for new breakthroughs. These breakthroughs will come to us in the form of better personalizing brands, evolving business models to better "include" employees and creating "micro" programs that can be dialed up or down dependent on the ever-changing business climate. Further, we will adopt—or be forced to adopt—communications and business models that align all issues, cultures and differences against a common platform for growth. All-the-while the information proliferation and overload will grow, potentially leading to what we have dubbed "The Clutter Bomb." It will be the companies who can effectively balance this clutter with the evolutions in the practice of employee communications who will succeed—and we look forward to being a part of that future with you.

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By Michael Fulton
mfulton@golinharris.com

Non-profit organizations, college and university administrators, and hospital executives across America are cataloging facility, equipment and research needs to present to their Congressional delegations for consideration of federal appropriations support. Some do it very well, and others stumble over the process and timing, which are designed to weed people and projects out of contention.

The process changes with new leadership in the White House and Congress, the economic situation, Congressional staff changes, the attitudes of agency heads, and the types of projects being requested. This year will be no different. As the deadline for Congressional scrutiny of federal proposals looms for the next cycle, let's look at what works.

Timing, Timing, Timing
The numbers of appropriations projects of all kinds continue to grow each year, so the Appropriations Committee staff set deadlines between mid-March and mid-April each year for the receipt of letters requesting funding from your Congressional representative. Missing this deadline and not following the often last-minute Subcommittee and Full Committee mark-up sessions as well as House, Senate and Conference Committee consideration can spell doom for your institution's project.

Project Proposals That Persuade
If you write a competitive grant proposal in response to a published request for proposals, the numbers of pages can go into the hundreds with minute detail. In the federal appropriations process, a brief two-page document containing the concept; rationale; national, state and local need; and budget synopsis is all that is required. Congressional staff often wants to boil your presentation into a one-pager to submit to a Subcommittee chairman.

Presentation Whets Appetites
Do top officials at your organization need to come to the nation's capital to present the project? No, but it helps immensely to personally present the proposal and the strong support backing it. Meeting with Members of Congress or key staff can provide meaningful feedback and a sense of where your project stands.

Follow Up Is Essential
The squeaky wheel (not pestering) gets the grease in Washington, D.C. Thoughtful calls, letters or invitations to campus from the college or third-party supporters around Committee or Floor consideration can make a difference.

Bad News Travels Fast
A problem at your organization unrelated to your project can bring disaster if your institution does not proactively address this issue with your allies in Congress. Over the years, I have seen several projects not funded because of a question of leadership or bad press.

Credit Where Credit Is Due
If your project is funded, it is important to assist the Congressional office(s) announce it properly and to hold a ceremony related to the success. Any media or speeches about the federal funding should give credit to those who made it possible. Not doing so can hinder future efforts with those Members of Congress who feel neglected or used in the process.

Applying to Agencies for Earmarked Funding
As soon as the ink is dry on the appropriations bill funding your project, you should inquire as to how to best work with the federal agency to secure the grant earmarked in your behalf. There are millions of dollars each year not claimed by the organizations receiving earmarks and those funds are reprogrammed for other activities in future years.

As long as Representatives and Senators are elected, the practice of earmarking will continue. If your organization seeks federal earmarks, commit to improving your handling of the process, timing and relationships that can lead to millions of dollars. If you are not pursuing earmarks from the discretionary federal budget, those who are readying their submission thank you. Some institutions are going to receive major grants with the help of their Congressional representatives -- it may as well be yours!