The national unemployment rate just passed 10% and people are stressed out. But don't tell that to the wordsmiths in Washington who repeatedly claim they created a million jobs. Or saved them.
Wait a minute. How can one create or save a job? Either the job exists or it doesn't. Either people have a job or they don't. Oh, OK, I finally get it - this new spin really means some jobs were created and some were saved, but injecting lots of gray into what is typically a black and white argument is bad PR.
This is a practice your business needs to avoid at all costs.
The word "or" itself implies a lack of clarity. I compare using it in marketing and politics to the carnival game where the heads randomly pop up and disappear before you can pound them with a mallet.
Frustrating, isn't it?
And when no one really knows what percentage of jobs were saved versus created, whose job is being saved and whether that job is worthy of "saving", people start thinking the worst. Every time The New York Daily News reports about MTA workers sleeping in subway customer service booths on city-time and corrupt politicians with multiple no-show jobs - it's not hard to wonder if the "saved" are really them.
Consumers want honesty and clarity in sales pitches and part of the public backlash felt by Democrats in New Jersey and Virginia was no doubt due to nervous people who don't buy nebulous claims they can't see in their daily lives. At the very least, people want to hear sentences that make logical sense.
What if the "Created or Saved" logic were applied to consumer goods?
"Your washing machine's waranty will last 4 or 2 years"
"This vehicle gets 30 or 18 miles per gallon"
"This dress is size 6 or 2"
Most of us would walk right out of the store.
Saturday, November 7, 2009
Wednesday, October 21, 2009
Reliable Brands, Profitable Companies and Reality TV Don't Mix
Once upon a time, Reality TV was seen as the best way for undiscovered people with talent to become famous. Now it's the surest way to destroy families and careers.
What happened? Actually, nothing. Reality TV was always a dumpster fire waiting to happen, and once the novelty wore off, the unstable, psychotic nature of its "contestants" were easily recognized by the naked eye.
While sensible, intelligent, rational people tend to either ignore or shut down the psycho-stalker girlfriend or boyfriend, Reality TV gives them new, high-profile forums to satisfy their endless appetite for attention. But we all know the stalker is consumed with the short-term, and that does little to help the long-term success of your brand.
Isn't it funny you never see a well-run company using Reality TV stars as pitch people? In theory, it would make perfect sense for a bulk retailer like Costco to feature Jon and Kate Gosselin (with 8 kids to feed) in their marketing. But to their credit, Costco knew better.
In fact, you don't have to be in business with a Reality TV star to feel the negative effects. Dating one is frought with danger as well. Just ask Shawne Merriman of the San Diego Chargers who almost had his entire career blown up when Tila Tequila leveled a fake assault charge over the summer.
First thing I uttered when I read about Merriman's arrest - "That's what happens when you get mixed up with a Reality Star".
So I don't think it really mattered whether the Balloon Family's incident was a proven hoax or not. I'll bet most of us already thought something was fishy the minute we heard about "Wife Swap".
Always remember - Reality Stars have limited shelf lives...and with each fiasco, their relevancy grows shorter and shorter.
No wonder perception is the "Reality" that counts most.
What happened? Actually, nothing. Reality TV was always a dumpster fire waiting to happen, and once the novelty wore off, the unstable, psychotic nature of its "contestants" were easily recognized by the naked eye.
While sensible, intelligent, rational people tend to either ignore or shut down the psycho-stalker girlfriend or boyfriend, Reality TV gives them new, high-profile forums to satisfy their endless appetite for attention. But we all know the stalker is consumed with the short-term, and that does little to help the long-term success of your brand.
Isn't it funny you never see a well-run company using Reality TV stars as pitch people? In theory, it would make perfect sense for a bulk retailer like Costco to feature Jon and Kate Gosselin (with 8 kids to feed) in their marketing. But to their credit, Costco knew better.
In fact, you don't have to be in business with a Reality TV star to feel the negative effects. Dating one is frought with danger as well. Just ask Shawne Merriman of the San Diego Chargers who almost had his entire career blown up when Tila Tequila leveled a fake assault charge over the summer.
First thing I uttered when I read about Merriman's arrest - "That's what happens when you get mixed up with a Reality Star".
So I don't think it really mattered whether the Balloon Family's incident was a proven hoax or not. I'll bet most of us already thought something was fishy the minute we heard about "Wife Swap".
Always remember - Reality Stars have limited shelf lives...and with each fiasco, their relevancy grows shorter and shorter.
No wonder perception is the "Reality" that counts most.
Monday, October 12, 2009
Anger Management: Your Best Move in Crisis PR
David Letterman is taking a continued public relations beating over his flings with interns and it didn’t have to be that way.
Most PR firms will tell their clients to manage a crisis by being the first out of the gate with bad news – but it won’t help if they fail to recognize the larger dynamic behind the problem. David Letterman is no dummy and at first glance, his clever mix of self-deprecating humor and attempts at humble honesty could be considered textbook crisis PR.
But unfortunately, the other side of this story was rooted in deep anger far more than financial opportunity. Whether it involves a celebrity, politician or your business, an enemy scorned is acting on emotion and that is a PR nightmare. Your crisis plan needs to expect the worst – in fact, because you are rational and your opponent is not, think out of the box and expect beyond the worst.
Letterman and his PR team were kidding themselves thinking that being the first to spin a tale of extortion would temper public opinion on the actual acts committed and thus, shut the enemy down.
If anything, it fired up Letterman’s opponent even more.
Let’s start with some obvious advice – “say it out loud first”. If it doesn’t sound good, it probably isn’t a good idea. Case in point – Taking the intern you are flinging with along on a family vacation sounds less than brilliant, doesn’t it? Letterman of all people should know that combining non-marital sex and public figures is risky business. Just ask Louisville Basketball Coach Rick Pitino – nothing good ever comes out of romping in the back parking lot of an Applebees. Add a steamy diary and a jealous boyfriend to the mix and maybe the “victim” approach isn’t always best option to mitigate a crisis.
Most PR firms will tell their clients to manage a crisis by being the first out of the gate with bad news – but it won’t help if they fail to recognize the larger dynamic behind the problem. David Letterman is no dummy and at first glance, his clever mix of self-deprecating humor and attempts at humble honesty could be considered textbook crisis PR.
But unfortunately, the other side of this story was rooted in deep anger far more than financial opportunity. Whether it involves a celebrity, politician or your business, an enemy scorned is acting on emotion and that is a PR nightmare. Your crisis plan needs to expect the worst – in fact, because you are rational and your opponent is not, think out of the box and expect beyond the worst.
Letterman and his PR team were kidding themselves thinking that being the first to spin a tale of extortion would temper public opinion on the actual acts committed and thus, shut the enemy down.
If anything, it fired up Letterman’s opponent even more.
Let’s start with some obvious advice – “say it out loud first”. If it doesn’t sound good, it probably isn’t a good idea. Case in point – Taking the intern you are flinging with along on a family vacation sounds less than brilliant, doesn’t it? Letterman of all people should know that combining non-marital sex and public figures is risky business. Just ask Louisville Basketball Coach Rick Pitino – nothing good ever comes out of romping in the back parking lot of an Applebees. Add a steamy diary and a jealous boyfriend to the mix and maybe the “victim” approach isn’t always best option to mitigate a crisis.
Monday, August 17, 2009
Tight Lips Float Ships
I'm no fan of Michael Vick and don't think a dog-killer deserves to make another dime in pro football, but I'll give the Philadelphia Eagles' PR people big kudos for their expert management of a potentially explosive situation and its aftermath.
According to ESPN, Vick had been signed for 48 hours before the story broke and in a world full of leaks, inside tips, blogosphere rumors and 24/7 media focus on Vick himself, keeping the signing quiet for that long was nothing short of amazing. This tight-lipped, disciplined bunch provided the team plenty of time to carefully schedule an announcement, get everyone's sound bites in order, line up "character" surrogates like Governor Ed Rendell and Tony Dungy, and even scoop 60 Minutes' own Vick interview that aired last night.
The Eagles may have questionable morals and (temporarily) angry fans, but their deft PR operation gives Vick's signing a chance of not blowing up in their face.
According to ESPN, Vick had been signed for 48 hours before the story broke and in a world full of leaks, inside tips, blogosphere rumors and 24/7 media focus on Vick himself, keeping the signing quiet for that long was nothing short of amazing. This tight-lipped, disciplined bunch provided the team plenty of time to carefully schedule an announcement, get everyone's sound bites in order, line up "character" surrogates like Governor Ed Rendell and Tony Dungy, and even scoop 60 Minutes' own Vick interview that aired last night.
The Eagles may have questionable morals and (temporarily) angry fans, but their deft PR operation gives Vick's signing a chance of not blowing up in their face.
Wednesday, August 12, 2009
Jet Blue Reclaims Its Mojo
Looking for an excuse for your business to be aggressive? Jet Blue just gave you one.
For one month - September 8th through October 8th - Jet Blue is offering an all-you-can-fly monthly pass for $599. And they didn't buy an expensive ad to tell us. They simply tweeted this offer with no hard cost and within three hours, it became the 3rd Top Trending Topic on all of Twitter with thousands of comments and re-tweets.
The pure brilliance of this campaign extends beyond the obvious cache acquired on social media sites. First of all, Jet Blue correctly identified its ideal customer base by realizing the aggressive, traveling, profitable businesses of 2009 are run by web-centric, tech-savvy entrepreneurs. These entrepreneurs don't read the print version of the New York Times - they are instead on Twitter, Facebook, Digg, etc.
Jet Blue knows they are dealing with smart people who appreciate other smart businesses and can easily adapt a one-month business strategy for new client pursuits in any city the airline services. With casual travel traditionally diminishing after the summer, Jet Blue is building loyalty among a targeted customer base that will be spending money this fall.
Secondly, it is obvious this campaign is partially designed to increase Jet Blue's frequent flier membership, as monthly pass-holders must become a True Blue members to book flights through this offer. Do the math - a bigger frequent flier base means better contracts with corporate partners like American Express...which means more money in the end.
While the low-cost airline featuring those leather seats with TV's had been somewhat listless in 2009, within a few short hours today, Jet Blue reclaimed all its lost mojo.
For one month - September 8th through October 8th - Jet Blue is offering an all-you-can-fly monthly pass for $599. And they didn't buy an expensive ad to tell us. They simply tweeted this offer with no hard cost and within three hours, it became the 3rd Top Trending Topic on all of Twitter with thousands of comments and re-tweets.
The pure brilliance of this campaign extends beyond the obvious cache acquired on social media sites. First of all, Jet Blue correctly identified its ideal customer base by realizing the aggressive, traveling, profitable businesses of 2009 are run by web-centric, tech-savvy entrepreneurs. These entrepreneurs don't read the print version of the New York Times - they are instead on Twitter, Facebook, Digg, etc.
Jet Blue knows they are dealing with smart people who appreciate other smart businesses and can easily adapt a one-month business strategy for new client pursuits in any city the airline services. With casual travel traditionally diminishing after the summer, Jet Blue is building loyalty among a targeted customer base that will be spending money this fall.
Secondly, it is obvious this campaign is partially designed to increase Jet Blue's frequent flier membership, as monthly pass-holders must become a True Blue members to book flights through this offer. Do the math - a bigger frequent flier base means better contracts with corporate partners like American Express...which means more money in the end.
While the low-cost airline featuring those leather seats with TV's had been somewhat listless in 2009, within a few short hours today, Jet Blue reclaimed all its lost mojo.
Tuesday, August 11, 2009
PR for the Ponies
As an avid fan, I refuse to believe horse racing is a dying sport. But it sure needs an Extreme Makeover.
One way to fix the worst-marketed business in America is to model a new beginning after one industry participant who “gets it”.
Del Mar Racetrack in San Diego is horse racing’s shining star because it realizes tracks need to be destinations far more than gambling venues. Del Mar didn’t take the good California weather for granted – instead, it offered meaningful rewards to bring high-income phone bettors into its exclusive turf club. Del Mar then turned its attention to the most important consumer in America - professional women from 25-50 years old. Ten-thousand women in the Clubhouse on a Friday is no accident – it took restaurants and bars with patio seating, cross-promotion with area spa’s, and aggressive sales to company and social groups. Add to the mix a clever branding campaign - “Cool as Ever” - and it’s easy to see why Del Mar succeeds where everyone else fails.
The track identified its “wheelhouse”, targeted numerical goals for its base customers and then went out and got ‘em. Drive around any yuppie neighborhood from the Gaslamp to West Hollywood and you’ll see strategically purchased, tastefully designed billboards featuring the track’s best amenity of all – attractive, well-dressed customers with money to burn. And no other racing venue has mastered the power of the Internet – from social media to trendy websites, Del Mar gets the word out that this is a place where you want “to be seen”.
Racetracks elsewhere need to wake up and emulate Del Mar. Granted, a day at Aqudeuct in New York (which is a dump) is not an easy sell in February, but there is no excuse for a majestic venue such as Belmont – located just 5 miles down the road - to be barely drawing 2,000 fans on a summer Friday.
Last Sunday’s showdown venue in New Jersey – Monmouth Park – has blown it even worse than Belmont. The track’s affluent location, neighboring amenities such as multiple spa’s and restaurants, proximity to the beach resorts, cost-effective summer calendar, and quick accessibility from New York easily rival Del Mar. And every Friday from late May through September, thousands of young, affluent New Yorkers looking for a release pass right by Monmouth (there’s even a train stop at the track) on their way toward summer beach houses. But with poor management, Monmouth has lacked the vision and organization to grab this demographic, let alone bring them back. Instead, the track markets itself ineffectively to the wrong audience, schedules daily racing at inconvenient times, and provides few amenities to attract women.
With a dearth of creative thinking, the debate at many East Coast tracks like Monmouth and Belmont now centers on slot machines. This is, at best, just another option for blowing the family fortune on the penny machines, and just plain old bad news for racing. Adding slots is nothing more than a desperate attempt by politicians to bolster bloated state agencies that could easily be eliminated.
So don’t believe that naysayers - horse racing is not unwatchable and nor is it pre-ordained for extinction. It is, however, a victim of small minds with short-sighted
vision.
The ponies deserve some good PR, so here are four quick ideas to fix horse racing:
4pm summer post-times – Races at noon will keep the broke degenerate with 8 Racing Forms busy, but it is pure insanity to ignore the after-office crowd of thousands who’ll drop $200 a person at the track...right now, they opt for the martini bar down the road.
WiFi in track restaurants – with explosive growth of virtual entrepreneurs, more business than ever is being done in creative venues - cafés, bars, planes, and even the beach. Any reason why someone wouldn’t bet the 3rd race before a conference call with clients?
Stop incessantly promoting trainers – the casual fan doesn’t really understand the role of a trainer, so stop wasting time promoting them. Top owners with big checkbooks already know who the best trainers are – and that’s what matters most to trainers anyway. For the rest of us, we want to know more about the jockeys. Several female jockeys, by the way, are savvy enough to be tweeting regularly.
Don’t make the Triple Crown impossible – Fans love rivalries, so why not make every entry in the Kentucky Derby commit to all three Triple Crown races? To make it even more interesting, the top 14 in Kentucky would go to the Preakness and the Top 10 in the Preakness would go to the Belmont. Kind of like a playoff system with higher purses and every competitor having to race the same schedule. And while the Kentucky Derby should remain at the beginning of May, make the Preakness the weekend after Memorial Day and the Belmont on July 3rd. Then we’d have fresh horses in every race and end the anticlimactic, fan-killing pattern of unknowns taking down a goliath at Belmont.
One way to fix the worst-marketed business in America is to model a new beginning after one industry participant who “gets it”.
Del Mar Racetrack in San Diego is horse racing’s shining star because it realizes tracks need to be destinations far more than gambling venues. Del Mar didn’t take the good California weather for granted – instead, it offered meaningful rewards to bring high-income phone bettors into its exclusive turf club. Del Mar then turned its attention to the most important consumer in America - professional women from 25-50 years old. Ten-thousand women in the Clubhouse on a Friday is no accident – it took restaurants and bars with patio seating, cross-promotion with area spa’s, and aggressive sales to company and social groups. Add to the mix a clever branding campaign - “Cool as Ever” - and it’s easy to see why Del Mar succeeds where everyone else fails.
The track identified its “wheelhouse”, targeted numerical goals for its base customers and then went out and got ‘em. Drive around any yuppie neighborhood from the Gaslamp to West Hollywood and you’ll see strategically purchased, tastefully designed billboards featuring the track’s best amenity of all – attractive, well-dressed customers with money to burn. And no other racing venue has mastered the power of the Internet – from social media to trendy websites, Del Mar gets the word out that this is a place where you want “to be seen”.
Racetracks elsewhere need to wake up and emulate Del Mar. Granted, a day at Aqudeuct in New York (which is a dump) is not an easy sell in February, but there is no excuse for a majestic venue such as Belmont – located just 5 miles down the road - to be barely drawing 2,000 fans on a summer Friday.
Last Sunday’s showdown venue in New Jersey – Monmouth Park – has blown it even worse than Belmont. The track’s affluent location, neighboring amenities such as multiple spa’s and restaurants, proximity to the beach resorts, cost-effective summer calendar, and quick accessibility from New York easily rival Del Mar. And every Friday from late May through September, thousands of young, affluent New Yorkers looking for a release pass right by Monmouth (there’s even a train stop at the track) on their way toward summer beach houses. But with poor management, Monmouth has lacked the vision and organization to grab this demographic, let alone bring them back. Instead, the track markets itself ineffectively to the wrong audience, schedules daily racing at inconvenient times, and provides few amenities to attract women.
With a dearth of creative thinking, the debate at many East Coast tracks like Monmouth and Belmont now centers on slot machines. This is, at best, just another option for blowing the family fortune on the penny machines, and just plain old bad news for racing. Adding slots is nothing more than a desperate attempt by politicians to bolster bloated state agencies that could easily be eliminated.
So don’t believe that naysayers - horse racing is not unwatchable and nor is it pre-ordained for extinction. It is, however, a victim of small minds with short-sighted
vision.
The ponies deserve some good PR, so here are four quick ideas to fix horse racing:
4pm summer post-times – Races at noon will keep the broke degenerate with 8 Racing Forms busy, but it is pure insanity to ignore the after-office crowd of thousands who’ll drop $200 a person at the track...right now, they opt for the martini bar down the road.
WiFi in track restaurants – with explosive growth of virtual entrepreneurs, more business than ever is being done in creative venues - cafés, bars, planes, and even the beach. Any reason why someone wouldn’t bet the 3rd race before a conference call with clients?
Stop incessantly promoting trainers – the casual fan doesn’t really understand the role of a trainer, so stop wasting time promoting them. Top owners with big checkbooks already know who the best trainers are – and that’s what matters most to trainers anyway. For the rest of us, we want to know more about the jockeys. Several female jockeys, by the way, are savvy enough to be tweeting regularly.
Don’t make the Triple Crown impossible – Fans love rivalries, so why not make every entry in the Kentucky Derby commit to all three Triple Crown races? To make it even more interesting, the top 14 in Kentucky would go to the Preakness and the Top 10 in the Preakness would go to the Belmont. Kind of like a playoff system with higher purses and every competitor having to race the same schedule. And while the Kentucky Derby should remain at the beginning of May, make the Preakness the weekend after Memorial Day and the Belmont on July 3rd. Then we’d have fresh horses in every race and end the anticlimactic, fan-killing pattern of unknowns taking down a goliath at Belmont.
Tuesday, July 14, 2009
The UFC "gets it"; Major League Baseball remains clueless
With friends in from out of town, I did not watch Saturday night's UFC championship fight only because we couldn't find a viewing location not charging at least a $20 cover. But we still looked for it. We still wanted it. And that alone says a lot.
Most Americans probably don't understand all the cage fighting rules and I don't think the UFC cares one bit. They have made their product interesting, personality driven, and based on what I read Sunday, controversial too. The UFC has smartly recruited top "wrestlers" from the WWE and put them in positions where these combatants actually have to fight. And let us not forget that WWE Raw (with all its "fakeness") is the top rated program nationwide on cable year in and year out.
Baseball, on the other hand, remains a PR and marketing disaster. Obsessed with obscure statistics and pooh-poohing controversial but interesting figures, the sport is just plain boring. And the TV ratings confirm it. Baseball's head honchos (plus the non-athlete writers which it gives too much power) subvert the game's strongest personalities, start games too late, look indecisive at critical junctures, and communicate to fans poorly.
From not telling a national TV audience (and the Tampa players facing elimination) whether Game 5 of last year's World Series would be called for rain, to banishing huge stars like Manny Ramirez (the most exciting pure hitter in baseball) into lifelong purgatory for something everyone did, baseball and its writers worry about all the wrong things. And some of it could be traced to that awful decision to declare a tie in the All-Star Game several years back.
"Well, everyone's out of pitchers", explained Commissioner Bud Selig. He completely forgot that millions of viewers had invested four hours into a game that now ended in blah. Not controversy - just blah. And because at that time, the All-Star game was purely an exibition, wouldn't it have been fun to allow position players to return and watch Derek Jeter try to pitch? Or A-Rod? Or Manny throw a fastball in dreadlocks? Now THAT would have been interesting! You can bet the ranch the WWE or UFC would have been all over that. But baseball misses PR opportunities all the time and then botches crisis management.
Hence, the overreaction that the All-Star game should be played for home-field advantage in the World Series. The exhibition beauty and fan appeal a sport like the NBA has in its All-Star game (top players trying crazy shots) is now non-existent in baseball's version. It's just another game with other teams' players most fans don't know.
Zzzzz.
No wonder speculation is rampant that tonight's All-Star game will be the least watched ever.
Meanwhile, the UFC is steamrolling its way to huge numbers and bigger audiences.
Interesting matters more than boring in 2009 - but then again, it always has.
Most Americans probably don't understand all the cage fighting rules and I don't think the UFC cares one bit. They have made their product interesting, personality driven, and based on what I read Sunday, controversial too. The UFC has smartly recruited top "wrestlers" from the WWE and put them in positions where these combatants actually have to fight. And let us not forget that WWE Raw (with all its "fakeness") is the top rated program nationwide on cable year in and year out.
Baseball, on the other hand, remains a PR and marketing disaster. Obsessed with obscure statistics and pooh-poohing controversial but interesting figures, the sport is just plain boring. And the TV ratings confirm it. Baseball's head honchos (plus the non-athlete writers which it gives too much power) subvert the game's strongest personalities, start games too late, look indecisive at critical junctures, and communicate to fans poorly.
From not telling a national TV audience (and the Tampa players facing elimination) whether Game 5 of last year's World Series would be called for rain, to banishing huge stars like Manny Ramirez (the most exciting pure hitter in baseball) into lifelong purgatory for something everyone did, baseball and its writers worry about all the wrong things. And some of it could be traced to that awful decision to declare a tie in the All-Star Game several years back.
"Well, everyone's out of pitchers", explained Commissioner Bud Selig. He completely forgot that millions of viewers had invested four hours into a game that now ended in blah. Not controversy - just blah. And because at that time, the All-Star game was purely an exibition, wouldn't it have been fun to allow position players to return and watch Derek Jeter try to pitch? Or A-Rod? Or Manny throw a fastball in dreadlocks? Now THAT would have been interesting! You can bet the ranch the WWE or UFC would have been all over that. But baseball misses PR opportunities all the time and then botches crisis management.
Hence, the overreaction that the All-Star game should be played for home-field advantage in the World Series. The exhibition beauty and fan appeal a sport like the NBA has in its All-Star game (top players trying crazy shots) is now non-existent in baseball's version. It's just another game with other teams' players most fans don't know.
Zzzzz.
No wonder speculation is rampant that tonight's All-Star game will be the least watched ever.
Meanwhile, the UFC is steamrolling its way to huge numbers and bigger audiences.
Interesting matters more than boring in 2009 - but then again, it always has.
Wednesday, July 8, 2009
"Exhibit A" Why WiFi Itself is Good Marketing
Several months ago, my Twitter friends at @SDTips wondered whether Amtrak would soon install WiFi on its trains. Turned out Amtrak had quietly installed this service on its DC Acela service – the same route VP Joe Biden takes to and from his home in Delaware. We all got a few chuckles over Biden and then dismissed the notion of ”Train WiFi” around the nation any time soon. After all, refitting older equipment with modern conveniences must be too difficult.
Or is it?
Fast forward to June – after a cross-country flight on Virgin America (who just put WiFi on all of its planes), I grabbed an early morning Peter Pan express bus from Boston to New York....fully equipped with WiFi.
Which got me thinking....if Peter Pan can offer WiFi on a $35 bus ride, why can’t Amtrak do the same on a $125 per person regional train running the same route?
Peter Pan and other bus carriers - including customer service grease fire Greyhound – are smartly taking advantage of market opportunities born from the recession and the “new entrepreneur”. Today’s 2.0 companies are willing to give up the dining car and some leg room in exchange for several hours of productive business on the web. And they’re saving precious money along the way.
As for Amtrak, they sadly have missed yet another boat. But misguided thinking is inherent in any business run by the government. And Amtrak is a business. While I’m sure President Obama’s vision of bullet trains between San Diego and LA will be nice...someday...maybe...why not save billions in “studies” and equip those existing Amtrak cars with WiFi right now?
People who don’t think offering a value-added service has real marketing value are out of touch with the word-of-mouth marketing power that is sweeping the globe via sites like Twitter, Digg and Facebook. This blog just gave Peter Pan Bus Company positive word-of-mouth marketing and handed Amtrak a little beat-down. Neither entity paid me a cent in advertising but these words are about to be tweeted to 455 loyal followers.
Meanwhile, Amtrak still spends a fortune on traditional advertising – billboards on highways, poorly placed outdated commercials, and even a rolling sign I recently saw at an LA Angels home game (and don’t remember a word of the content). No wonder Amtrak is billions in debt.
Or is it?
Fast forward to June – after a cross-country flight on Virgin America (who just put WiFi on all of its planes), I grabbed an early morning Peter Pan express bus from Boston to New York....fully equipped with WiFi.
Which got me thinking....if Peter Pan can offer WiFi on a $35 bus ride, why can’t Amtrak do the same on a $125 per person regional train running the same route?
Peter Pan and other bus carriers - including customer service grease fire Greyhound – are smartly taking advantage of market opportunities born from the recession and the “new entrepreneur”. Today’s 2.0 companies are willing to give up the dining car and some leg room in exchange for several hours of productive business on the web. And they’re saving precious money along the way.
As for Amtrak, they sadly have missed yet another boat. But misguided thinking is inherent in any business run by the government. And Amtrak is a business. While I’m sure President Obama’s vision of bullet trains between San Diego and LA will be nice...someday...maybe...why not save billions in “studies” and equip those existing Amtrak cars with WiFi right now?
People who don’t think offering a value-added service has real marketing value are out of touch with the word-of-mouth marketing power that is sweeping the globe via sites like Twitter, Digg and Facebook. This blog just gave Peter Pan Bus Company positive word-of-mouth marketing and handed Amtrak a little beat-down. Neither entity paid me a cent in advertising but these words are about to be tweeted to 455 loyal followers.
Meanwhile, Amtrak still spends a fortune on traditional advertising – billboards on highways, poorly placed outdated commercials, and even a rolling sign I recently saw at an LA Angels home game (and don’t remember a word of the content). No wonder Amtrak is billions in debt.
Wednesday, June 3, 2009
If it Wants to Survive, Hummer Needs to Focus on Customer Pride
Finally free from the mismanaged shackles of GM, Hummer has a second lease on life. To ensure survival, Hummer's new corporate leadership could learn one huge lesson from Twitter.
Cultivate Pride.
Tweeters have demonstrated immense self-pride about the platform and reinforce its value whenever they can - especially among one another. This has been essential for Twitter "The Corporation" in retaining top Tweeters and marketing (via word of mouth) the advantages of user loyalty to new prospects.
Hummer, a product that Americans either love or hate, needs to do the same. For many Hummer owners, they are not ashamed of driving a gas-guzzling, stick-out-like-a-sore-thumb product around their towns. In fact, many revel in knowing people hate their vehicle. I am personally close to one such owner. He'll defend that thing to the bitter end but at some point, it has get lonely on the soapbox. He could use some reinforcements like marketing strategies to connect Hummer lovers with each other and rewards for continued loyalty.
After all, the more good feeling consumers have about their own product, the more they will talk about it's virtues to others - even if it's in a defensive posture.
This concept was completely lost on GM. They not only took their customer base for granted but missed an golden opportunity to broaden appeal by simply marketing viral pride of existing owners. So when Hummer became the symbol of excess, high gas prices and environmental scorn, GM was totally unprepared to react.
First, they hoped the storm would pass. Then they made a litany of explanations and excuses for the vehicle's shortcomings. Finally, they marginalized the vehicle's appeal even further by promoting an obscure "what if" campaign about Hummer's value in times of emergencies like a hurricane or fire. Knowing a Hummer could survive a natural disaster is all fine and good, but how did that help the "under attack" owner in suburbia (with a socially conscious family) defend his product?
It didn't, and hopefully the new corporate team in charge of Hummer will be smarter than that.
Cultivate Pride.
Tweeters have demonstrated immense self-pride about the platform and reinforce its value whenever they can - especially among one another. This has been essential for Twitter "The Corporation" in retaining top Tweeters and marketing (via word of mouth) the advantages of user loyalty to new prospects.
Hummer, a product that Americans either love or hate, needs to do the same. For many Hummer owners, they are not ashamed of driving a gas-guzzling, stick-out-like-a-sore-thumb product around their towns. In fact, many revel in knowing people hate their vehicle. I am personally close to one such owner. He'll defend that thing to the bitter end but at some point, it has get lonely on the soapbox. He could use some reinforcements like marketing strategies to connect Hummer lovers with each other and rewards for continued loyalty.
After all, the more good feeling consumers have about their own product, the more they will talk about it's virtues to others - even if it's in a defensive posture.
This concept was completely lost on GM. They not only took their customer base for granted but missed an golden opportunity to broaden appeal by simply marketing viral pride of existing owners. So when Hummer became the symbol of excess, high gas prices and environmental scorn, GM was totally unprepared to react.
First, they hoped the storm would pass. Then they made a litany of explanations and excuses for the vehicle's shortcomings. Finally, they marginalized the vehicle's appeal even further by promoting an obscure "what if" campaign about Hummer's value in times of emergencies like a hurricane or fire. Knowing a Hummer could survive a natural disaster is all fine and good, but how did that help the "under attack" owner in suburbia (with a socially conscious family) defend his product?
It didn't, and hopefully the new corporate team in charge of Hummer will be smarter than that.
Thursday, May 14, 2009
Nancy Pelosi Drinks the Roger Clemens Kool-Aid Too
One would have thought our distinguished Speaker of the House had learned something from Roger Clemens (see my last blog). Or at least she would have someone on staff who listens to sports talk radio.
Turns out she did actually have someone on her staff, however, who attended the 2003 CIA briefings on water torture. Regardless of whether Nancy Pelosi herself was briefed in person or it was just the staffer who oops, forgot to take notes, The Speaker is going "all-in" too with blistering attacks on the CIA, George Bush, George Washington, George Burns, Boy George - basically anyone who she hopes won't do an Andy Pettite presser and blow her latest story apart.
In my critique of Roger Clemens' horrendous new PR campaign, I particularly noted that attacking the media, whose writers select the Baseball Hall of Fame, wasn't a bright idea. So how do you think the CIA will react when they hear Ms. Pelosi has declared all-out-war on them?
Think of it this way - who would you be more afraid of in a street fight? People who attend baseball games for living or a sophisticated, lethal giant who primarily collects and leaks information on mortal enemies?
While it's been established that Roger Clemens is repeatedly trying to play the same weak hand, Nancy Pelosi seems to be making up her strategy on-the-fly. Not a recipe for winning at poker when across the table sits the world champion of bluff. And in our 24/7 world of instant news, Pelosi's PR moves are fraught with big-time danger.
Know when to fold 'em, know when to walk away. Pelosi could have been statesman-like and took the hit. Instead, she's "all-in."
Too bad I never find people like Nancy and Roger at my table in Vegas.
Turns out she did actually have someone on her staff, however, who attended the 2003 CIA briefings on water torture. Regardless of whether Nancy Pelosi herself was briefed in person or it was just the staffer who oops, forgot to take notes, The Speaker is going "all-in" too with blistering attacks on the CIA, George Bush, George Washington, George Burns, Boy George - basically anyone who she hopes won't do an Andy Pettite presser and blow her latest story apart.
In my critique of Roger Clemens' horrendous new PR campaign, I particularly noted that attacking the media, whose writers select the Baseball Hall of Fame, wasn't a bright idea. So how do you think the CIA will react when they hear Ms. Pelosi has declared all-out-war on them?
Think of it this way - who would you be more afraid of in a street fight? People who attend baseball games for living or a sophisticated, lethal giant who primarily collects and leaks information on mortal enemies?
While it's been established that Roger Clemens is repeatedly trying to play the same weak hand, Nancy Pelosi seems to be making up her strategy on-the-fly. Not a recipe for winning at poker when across the table sits the world champion of bluff. And in our 24/7 world of instant news, Pelosi's PR moves are fraught with big-time danger.
Know when to fold 'em, know when to walk away. Pelosi could have been statesman-like and took the hit. Instead, she's "all-in."
Too bad I never find people like Nancy and Roger at my table in Vegas.
Wednesday, May 13, 2009
Clemens Goes "All-in" Again With Another Bad PR Gamble
Roger Clemens will never win the World Series...of Poker. Neither will his new PR team.
However, both could learn a lot from the Gambler himself, Kenny Rogers - "You have to know when to hold 'em, when to fold 'em, and when to walk away". Wise advice indeed that a good PR person entering a sticky steroid-tarnished reputation project should have drilled into Clemens.
Sadly, that didn't happen. Hence, behold the wreckage from this week's bizarre appearance on national radio. Clemens, after already dealing himself horrible hand after horrible hand with a 5 of Clubs high-card each time, just went "all-in" again and along the way, accused everyone else at the table of cheating - including "the house".
Mistakes from Clemens' new PR machine abound, but let's start with the fundamental problem - not "knowing" your own client.
The most immediate and vital service a competent PR person can provide is not advice - it is gaining a deep understanding of the client's psyche. If you understand what makes your clients tick, then you know exactly how to jump on opportunities that fall in their wheelhouse and avoid those that could sink the ship. In the case of Clemens, you are dealing with an ultra-competitive personality who has made a living off of "willing" victory from the jaws of defeat. Your client is so driven to be right all the time that he has already risked perjury charges via an ill-advised appearance in Congress. It wasn't very bright to shout innocence over reported steroid use when your best friend Andy Pettite, at the same hearing, refutes your story. The DNA testing didn't help either, but in the case of Clemens, many Americans had sort of forgotten about it. Factors like time, A-Rod and Manny had simmered the the raging grease fire in Clemens' kitchen.
Until now.
Probably desiring to "get the client out there" and make a quick statement that there's a new sheriff in town, Clemens' new PR Rep sent Roger out on ESPN radio to refute a new book being released about steroid use in baseball - and particularly, Clemens' prominent role in this scandal. Problem is that few people knew anything about the book until Clemens went public to bash it. Even radio host Mike Golic admitted on air that he had no idea any new book was coming out until Clemens' PR person called to schedule an interview.
And to make matters worse, the book was not written by someone with limited credibility like Clemens' arch-enemy and steroid-dealer Brain McNamee....or roid-poster-boy Jose Canseco. Instead, it was written by well-respected sports journalists led by the NY Daily News who took several painstaking years to compile extensive data and fact-check numerous sources. Yet among the obvious talking points provided for the interview, Clemens' made sure to call the book "people crawling up my back to make a buck."
Attacking four journalists is never a good idea. And because the media doesn't make CEO pay, trying to deprive a reporter/author of a revenue-source that took years of blood, sweat and tears to write is all but certain to further alienate colleagues. How do you think the baseball writers, who choose future Hall of Fame classes, appreciated their profession being trashed by a suspected roid-head facing federal perjury charges?
Even the "new material" in Clemens' press kit sounded ridiculous. For example, saying he would be crazy to use steroids because of a family history of heart disease...via the step-father!... definitely flunks the credibility test. And his whole rant about foundations and charity golf events sounded similar to the convicted corrupt politician who suddenly found religion. In all, the presentation came off looking sloppy and desperate.
Quite frankly, the interview should have never been scheduled in the first place - regardless of content.
Roger Clemens' continuing blunders could teach any company that good Public Relations does not emanate from Public Noise. Like I always say, "Be who you are", but "say everything out loud first" before going public - because sometimes, the best move may be to fold 'em and walk way.
However, both could learn a lot from the Gambler himself, Kenny Rogers - "You have to know when to hold 'em, when to fold 'em, and when to walk away". Wise advice indeed that a good PR person entering a sticky steroid-tarnished reputation project should have drilled into Clemens.
Sadly, that didn't happen. Hence, behold the wreckage from this week's bizarre appearance on national radio. Clemens, after already dealing himself horrible hand after horrible hand with a 5 of Clubs high-card each time, just went "all-in" again and along the way, accused everyone else at the table of cheating - including "the house".
Mistakes from Clemens' new PR machine abound, but let's start with the fundamental problem - not "knowing" your own client.
The most immediate and vital service a competent PR person can provide is not advice - it is gaining a deep understanding of the client's psyche. If you understand what makes your clients tick, then you know exactly how to jump on opportunities that fall in their wheelhouse and avoid those that could sink the ship. In the case of Clemens, you are dealing with an ultra-competitive personality who has made a living off of "willing" victory from the jaws of defeat. Your client is so driven to be right all the time that he has already risked perjury charges via an ill-advised appearance in Congress. It wasn't very bright to shout innocence over reported steroid use when your best friend Andy Pettite, at the same hearing, refutes your story. The DNA testing didn't help either, but in the case of Clemens, many Americans had sort of forgotten about it. Factors like time, A-Rod and Manny had simmered the the raging grease fire in Clemens' kitchen.
Until now.
Probably desiring to "get the client out there" and make a quick statement that there's a new sheriff in town, Clemens' new PR Rep sent Roger out on ESPN radio to refute a new book being released about steroid use in baseball - and particularly, Clemens' prominent role in this scandal. Problem is that few people knew anything about the book until Clemens went public to bash it. Even radio host Mike Golic admitted on air that he had no idea any new book was coming out until Clemens' PR person called to schedule an interview.
And to make matters worse, the book was not written by someone with limited credibility like Clemens' arch-enemy and steroid-dealer Brain McNamee....or roid-poster-boy Jose Canseco. Instead, it was written by well-respected sports journalists led by the NY Daily News who took several painstaking years to compile extensive data and fact-check numerous sources. Yet among the obvious talking points provided for the interview, Clemens' made sure to call the book "people crawling up my back to make a buck."
Attacking four journalists is never a good idea. And because the media doesn't make CEO pay, trying to deprive a reporter/author of a revenue-source that took years of blood, sweat and tears to write is all but certain to further alienate colleagues. How do you think the baseball writers, who choose future Hall of Fame classes, appreciated their profession being trashed by a suspected roid-head facing federal perjury charges?
Even the "new material" in Clemens' press kit sounded ridiculous. For example, saying he would be crazy to use steroids because of a family history of heart disease...via the step-father!... definitely flunks the credibility test. And his whole rant about foundations and charity golf events sounded similar to the convicted corrupt politician who suddenly found religion. In all, the presentation came off looking sloppy and desperate.
Quite frankly, the interview should have never been scheduled in the first place - regardless of content.
Roger Clemens' continuing blunders could teach any company that good Public Relations does not emanate from Public Noise. Like I always say, "Be who you are", but "say everything out loud first" before going public - because sometimes, the best move may be to fold 'em and walk way.
Wednesday, March 25, 2009
Mike Bloomberg is the All-Business, All-the-Time Guy who DOES "GET IT"
A Quinnipiac Poll released yesterday said that New York City Mayor Mike Bloomberg gets high marks for job performance but is personally viewed by city residents as unable relate to their everyday struggles because he is "cold and business-like".
To which Bloomberg replied: "I am what I am."
To which we comment: "Thank goodness!"
Just think of the alternative during a current governmental and political landscape that is a complete mess. Start at the top with "Governor Grease Fire" who plans to hike taxes into the stratosphere on 80-hour work week people doing OK-enough to create jobs while giving 35-hour work week public employee unions huge raises; next is our Assembly speaker who loaded countless special interest pay-to-play pet projects in the proposed budget; then there is the MTA, which is about to raise fares by 25% and drastically cut service on subways that are already dirty and rarely run on-time; and most unsettling of all, there is a new report out stating that the portion of New York City's entire operating budget spent only on paying out retirement benefits to former city employees will cross the 50% mark at some point in 2009. And by the way, Mike wasn't in City Hall when these employees were hired.
That's why the last thing New York needs right now is a soft, fuzzy, back-slapping "leader" who is obsessed with people "liking him."
All-business, all-the-time is exactly the right approach and as always, Mike Bloomberg appears up for the job.
The pitchfork mentality groups that are bashing anyone in this country who is making money won't like to hear this, but it is people like Mike Bloomberg who are going to ultimately get this economy rolling again...
..and not necessarily the politician Bloomberg; instead, the all-business, all-the-time Bloomberg who built a media empire from scratch that now employs thousands of men and women at all levels. New York desperately needs more people like Bloomberg who always problem-solves in an entrepreneurial manner, knows how to create jobs, sees the big picture, and isn't afraid to take on entrenched money-sucking special interests.
In fact, any organization could use Bloomberg right now. I nominate Conde Nast as Exhibit A. The New York Post today reported that some of the publishing giant's chauffeured execs and top editors were finally about to ditch the limo rides to and from work in favor of subways...not including Anna Wintour of course, and only when it is not raining.
Conversely, Bloomberg has been a strap-hanger for years and is famous for plopping his own desk into a bullpen-style office environment next to the entry-level assistants and secretaries.
If you don't think "business-culture" stuff like that matters then consider that Conde Nast has been forced to shut down multiple publications and is considering corporate-wide furloughs come June. Mayor Bloomberg? He's about to win a third term going away.
At its best, New York is a no-nonsense, get-it-done, results-driven town. A place where a "Grinder" can work hard and become successful. Walk around the streets of New York and you'll meet these folks everywhere. The corner food-truck guys who set-up shop at 5:30AM Monday through Saturday. The restaurant-owner who double-shifts every day without second thought to survive and grow. The truck-driver who battles endless congestion to get the deliveries into all five boroughs by noon. The responsible financial workers who drive themselves so much into the ground, that even on weekends, they eat, drink and sleep economic growth. And let's not forget the writer, typing like crazy in a Starbucks window near you and multi-tasking complex articles into 25 deadlines per week.
Ironically, it also sounds exactly like the guy in charge of the whole plave 8 million people call home.
This recession - when all said and done - will be remembered for ending the "Era of Entitlement." The era people like David Patterson, Sheldon Silver, and Anna Wintour are still desperately clinging to.
But whether he gets elected or not, a "Grinder" like Mike Bloomberg is too smart and too hard-working - like the rest of us - not to be doing just fine and creating opportunity for others while he's at it.
All-business, all-the-time. New York shouldn't have it any other way.
To which Bloomberg replied: "I am what I am."
To which we comment: "Thank goodness!"
Just think of the alternative during a current governmental and political landscape that is a complete mess. Start at the top with "Governor Grease Fire" who plans to hike taxes into the stratosphere on 80-hour work week people doing OK-enough to create jobs while giving 35-hour work week public employee unions huge raises; next is our Assembly speaker who loaded countless special interest pay-to-play pet projects in the proposed budget; then there is the MTA, which is about to raise fares by 25% and drastically cut service on subways that are already dirty and rarely run on-time; and most unsettling of all, there is a new report out stating that the portion of New York City's entire operating budget spent only on paying out retirement benefits to former city employees will cross the 50% mark at some point in 2009. And by the way, Mike wasn't in City Hall when these employees were hired.
That's why the last thing New York needs right now is a soft, fuzzy, back-slapping "leader" who is obsessed with people "liking him."
All-business, all-the-time is exactly the right approach and as always, Mike Bloomberg appears up for the job.
The pitchfork mentality groups that are bashing anyone in this country who is making money won't like to hear this, but it is people like Mike Bloomberg who are going to ultimately get this economy rolling again...
..and not necessarily the politician Bloomberg; instead, the all-business, all-the-time Bloomberg who built a media empire from scratch that now employs thousands of men and women at all levels. New York desperately needs more people like Bloomberg who always problem-solves in an entrepreneurial manner, knows how to create jobs, sees the big picture, and isn't afraid to take on entrenched money-sucking special interests.
In fact, any organization could use Bloomberg right now. I nominate Conde Nast as Exhibit A. The New York Post today reported that some of the publishing giant's chauffeured execs and top editors were finally about to ditch the limo rides to and from work in favor of subways...not including Anna Wintour of course, and only when it is not raining.
Conversely, Bloomberg has been a strap-hanger for years and is famous for plopping his own desk into a bullpen-style office environment next to the entry-level assistants and secretaries.
If you don't think "business-culture" stuff like that matters then consider that Conde Nast has been forced to shut down multiple publications and is considering corporate-wide furloughs come June. Mayor Bloomberg? He's about to win a third term going away.
At its best, New York is a no-nonsense, get-it-done, results-driven town. A place where a "Grinder" can work hard and become successful. Walk around the streets of New York and you'll meet these folks everywhere. The corner food-truck guys who set-up shop at 5:30AM Monday through Saturday. The restaurant-owner who double-shifts every day without second thought to survive and grow. The truck-driver who battles endless congestion to get the deliveries into all five boroughs by noon. The responsible financial workers who drive themselves so much into the ground, that even on weekends, they eat, drink and sleep economic growth. And let's not forget the writer, typing like crazy in a Starbucks window near you and multi-tasking complex articles into 25 deadlines per week.
Ironically, it also sounds exactly like the guy in charge of the whole plave 8 million people call home.
This recession - when all said and done - will be remembered for ending the "Era of Entitlement." The era people like David Patterson, Sheldon Silver, and Anna Wintour are still desperately clinging to.
But whether he gets elected or not, a "Grinder" like Mike Bloomberg is too smart and too hard-working - like the rest of us - not to be doing just fine and creating opportunity for others while he's at it.
All-business, all-the-time. New York shouldn't have it any other way.
Friday, March 20, 2009
AIG CEO: "I have people skills!" Congress: "We fixed the glitch." And let me tell you something about TPS Reports...
After watching Wednesday's Congressional theatrics between AIG CEO Ed Liddy and the distinguished line-up of grandstanding politicians, the first word that came to mind was....
Initech.
Yes, we are referring to that infamous symbol of incompetence and dysfunction portrayed in the classic movie "Office Space."
And if you think about it, Wednesday's back and forth on the Hill wasn't much different from the one below:
"What exactly....would you say you do here?"
"I have people skills god (darnit)...I'm good with the god (darn) customer! What the (heck)'s wrong with you people!!!"
If the only items missing from that hearing were two guys named Bob and a pink shirt with clashing blue suspenders, Americans could have retained a little piece of mind. But what looms most disturbing about the latest AIG debacle is how both the company's CEO and certain Members of Congress like Chris Dodd remain clueless as to what really drives public anger.
And newsflash...it's not all about the money.
First of all, most honest hard-working people don't believe in bailouts, but when absolutely necessary, these "emergency" measures are supposed to, at the very least, end all the bad behavior. If every stench of foul odor cannot be removed, then the public expects a supreme effort - not excuses. And from their elected leaders, the public wants a road map toward recovery - not a bunch of finger pointing among politicians.
Hence why the average American does not equate executive "retention" with "people skills" and does not recognize blowhard Congressional hearings as any form of "restructuring".
Imagine if the "Bobs" had asked Ed Liddy and Senate Finance Chairman Chris Dodd..."What exactly would you say you do here?"
Odds are they wouldn't have responded "hand out bonuses to bad executives" or "write sweetheart corporate loopholes in bailout laws". Instead, Liddy was sold to the public as the "fixer". And despite decades of business as usual, Congress promised Americans that "this time - because of the gravity of this economic crisis - things will be different."
In the end, things weren't different at all. According to most Americans, the "fixer" turned into nothing more than another arrogant corporate "enhancer". As for Congress, is it any surprise that for the first time in over three years, Republicans now lead Democrats in a generic head-to- head? People are mad, really mad - so regardless of the technical, constitutional or contractual merits of each retention bonus and special legislative clause, figureheads like Liddy and Dodd are paying a hefty price for not being "who they were supposed to be".
At Triumphant Communications, we constantly preach the covenant "be who you are supposed to be". Sounds simple doesn't it? Tell people what you do best and then go out and do it. Yet it never ceases to amaze how quickly individuals and companies ignore this covenant, and not surprisingly, ignorance is the fastest path to failure right now.
To make matters worse, ignorance also tends to lead to overreaction and as Exhibit A, I submit the actions of people like Charlie Rangel (who has his own questionable financial issues) to impose a 90% tax on these bonuses paid by AIG....or as in "Office Space" terminology, "we fixed the glitch."
Or did they?
As I recall, fixing the glitch and the hostile takeover of a certain red stapler by "Office Space's" Big Brother figure - Lumberg - led Milton to burn Initech to the ground. Do we want the same for our financial institutions as a whole? Or doesn't it make much more sense to simply remove incompetent people from the process.
Obviously, no one wishes the fate of Initech on the American economy. However, we will not insult "Michael Bolton" by comparing him to AIG and various Members of Congress, and we are not even close to "celebrating these guys' entire catalog" of work right now.
Initech.
Yes, we are referring to that infamous symbol of incompetence and dysfunction portrayed in the classic movie "Office Space."
And if you think about it, Wednesday's back and forth on the Hill wasn't much different from the one below:
"What exactly....would you say you do here?"
"I have people skills god (darnit)...I'm good with the god (darn) customer! What the (heck)'s wrong with you people!!!"
If the only items missing from that hearing were two guys named Bob and a pink shirt with clashing blue suspenders, Americans could have retained a little piece of mind. But what looms most disturbing about the latest AIG debacle is how both the company's CEO and certain Members of Congress like Chris Dodd remain clueless as to what really drives public anger.
And newsflash...it's not all about the money.
First of all, most honest hard-working people don't believe in bailouts, but when absolutely necessary, these "emergency" measures are supposed to, at the very least, end all the bad behavior. If every stench of foul odor cannot be removed, then the public expects a supreme effort - not excuses. And from their elected leaders, the public wants a road map toward recovery - not a bunch of finger pointing among politicians.
Hence why the average American does not equate executive "retention" with "people skills" and does not recognize blowhard Congressional hearings as any form of "restructuring".
Imagine if the "Bobs" had asked Ed Liddy and Senate Finance Chairman Chris Dodd..."What exactly would you say you do here?"
Odds are they wouldn't have responded "hand out bonuses to bad executives" or "write sweetheart corporate loopholes in bailout laws". Instead, Liddy was sold to the public as the "fixer". And despite decades of business as usual, Congress promised Americans that "this time - because of the gravity of this economic crisis - things will be different."
In the end, things weren't different at all. According to most Americans, the "fixer" turned into nothing more than another arrogant corporate "enhancer". As for Congress, is it any surprise that for the first time in over three years, Republicans now lead Democrats in a generic head-to- head? People are mad, really mad - so regardless of the technical, constitutional or contractual merits of each retention bonus and special legislative clause, figureheads like Liddy and Dodd are paying a hefty price for not being "who they were supposed to be".
At Triumphant Communications, we constantly preach the covenant "be who you are supposed to be". Sounds simple doesn't it? Tell people what you do best and then go out and do it. Yet it never ceases to amaze how quickly individuals and companies ignore this covenant, and not surprisingly, ignorance is the fastest path to failure right now.
To make matters worse, ignorance also tends to lead to overreaction and as Exhibit A, I submit the actions of people like Charlie Rangel (who has his own questionable financial issues) to impose a 90% tax on these bonuses paid by AIG....or as in "Office Space" terminology, "we fixed the glitch."
Or did they?
As I recall, fixing the glitch and the hostile takeover of a certain red stapler by "Office Space's" Big Brother figure - Lumberg - led Milton to burn Initech to the ground. Do we want the same for our financial institutions as a whole? Or doesn't it make much more sense to simply remove incompetent people from the process.
Obviously, no one wishes the fate of Initech on the American economy. However, we will not insult "Michael Bolton" by comparing him to AIG and various Members of Congress, and we are not even close to "celebrating these guys' entire catalog" of work right now.
Sunday, February 1, 2009
Dear Postmaster General: People under 40 don't read mail in print!
For all the excitement and opportunity derived from the Internet and social media, our economic prosperity could be short-lived if we ignore what is left behind.
Although somewhat lost in last week's deluge of layoffs and "stimulus calculus", the Postmaster General requested that Congress allow him to cut one day of mail delivery in the near future. All sentimentality aside, the US Postal service, which is also the nation's 3rd largest employer, swims in a troubled sea a red. Unfortunately, it's more like drowning, and the $7.9 billion lost since 2007 is just the tip of the iceberg. By 2016, the postal pension trust fund for every retiring letter carrier will be completely bankrupt. To replenish it will cost taxpayers at least $40 billion, and if Congress allows the Postal Service to borrow against what remains right now as a budget band-aid - well, the math could really get ugly.
Most market experts agree with what we at Triumphant Communications already know - Americans under the age of 40 read little or nothing sent to them in print and AARP cardholders aren't far behind. After all, my own mother who kept Hallmark in business for years, is now addicted to Evite.
Considering these new economic and cultural realities, why should we prop up an institution the Internet is rendering obsolete?
We don't personally hate the Post Office and just four years ago, about 40% of our company's own marketing business involved direct bulk mail. But the advent of new digital platforms and their explosive growth forced us to change our business model. We think the US government needs to do the same.
While lawmakers could endlessly debate how to better efficiency at the Postal Service, it won't solve the long-term problem because here is the hard truth:
The Democrats in Congress whose campaigns are backed by the powerful postal unions do not dare mention reducing junk mail in their platform to slow global warming. And the Republicans who suggest privatizing the Postal Service fail to account for the possibility of massive job losses and the corresponding human toll from such a move.
However, the Internet is not about to crawl under a rock anytime soon, which means mail will continue its trek toward marginalization. The question is how to welcome progress while protecting the livelihood and retirement of thousands of postal workers.
We think President Obama has a historical opportunity to transform the US Postal Service into a carefully balanced model of organizational and mission-statement reform. Mail will continue and should continue in the near future, but cutting at least one day of delivery instantly provides money sorely needed to keep postal pensions solvent. A second day of reduced delivery could also enable the administration to try a variety of pilot programs that prepare the Postal Service for an inevitable reality come 2020 and beyond. One such option is transitioning younger postal employees into technology-based education programs for a 21st Century workforce. Mr. Obama spoke of this frequently during the campaign, and perhaps some of the .7% in the controversial stimulus now projected to band-aid 2009's postal operations could be a good place to start.
Although somewhat lost in last week's deluge of layoffs and "stimulus calculus", the Postmaster General requested that Congress allow him to cut one day of mail delivery in the near future. All sentimentality aside, the US Postal service, which is also the nation's 3rd largest employer, swims in a troubled sea a red. Unfortunately, it's more like drowning, and the $7.9 billion lost since 2007 is just the tip of the iceberg. By 2016, the postal pension trust fund for every retiring letter carrier will be completely bankrupt. To replenish it will cost taxpayers at least $40 billion, and if Congress allows the Postal Service to borrow against what remains right now as a budget band-aid - well, the math could really get ugly.
Most market experts agree with what we at Triumphant Communications already know - Americans under the age of 40 read little or nothing sent to them in print and AARP cardholders aren't far behind. After all, my own mother who kept Hallmark in business for years, is now addicted to Evite.
Considering these new economic and cultural realities, why should we prop up an institution the Internet is rendering obsolete?
We don't personally hate the Post Office and just four years ago, about 40% of our company's own marketing business involved direct bulk mail. But the advent of new digital platforms and their explosive growth forced us to change our business model. We think the US government needs to do the same.
While lawmakers could endlessly debate how to better efficiency at the Postal Service, it won't solve the long-term problem because here is the hard truth:
- The cut in mail volume increases each year - in 2008, volume was down 4.5%
- Only 9% of mail is correspondence - letters, birthday cards, outgoing bills, etc. (Forbes.com)
- Households receive 7 times more mail than they send
- $320 million in local taxes are used each year to collect and recycle bulk mail
In other words, the Post Office has become the slowest, priciest, most eco-unfriendly, paper-based telemarketer in the world. And not by accident either. Congress and the Post Office together reworked the agency's business plan several years back to make cheaper bulk mail - er, I mean junk mail - the backbone of its long-term financial stability. This may have still made sense in 1999, but it's completely unrealistic in 2009.
And then there is the environmental impact of junk mail. According to the non-profit group 41pounds.org, a year's worth of new junk mail requires the destruction of 100 million trees and the use of 28 billion gallons of water. That equals the carbon footprint of 9 million cars.The Democrats in Congress whose campaigns are backed by the powerful postal unions do not dare mention reducing junk mail in their platform to slow global warming. And the Republicans who suggest privatizing the Postal Service fail to account for the possibility of massive job losses and the corresponding human toll from such a move.
However, the Internet is not about to crawl under a rock anytime soon, which means mail will continue its trek toward marginalization. The question is how to welcome progress while protecting the livelihood and retirement of thousands of postal workers.
We think President Obama has a historical opportunity to transform the US Postal Service into a carefully balanced model of organizational and mission-statement reform. Mail will continue and should continue in the near future, but cutting at least one day of delivery instantly provides money sorely needed to keep postal pensions solvent. A second day of reduced delivery could also enable the administration to try a variety of pilot programs that prepare the Postal Service for an inevitable reality come 2020 and beyond. One such option is transitioning younger postal employees into technology-based education programs for a 21st Century workforce. Mr. Obama spoke of this frequently during the campaign, and perhaps some of the .7% in the controversial stimulus now projected to band-aid 2009's postal operations could be a good place to start.
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