My Three Cents

Why I Am Optimistic

2009-02-09T17:11:00.003-05:00

These are tough, turbulent times. The national debt is now pushing $11 trillion. Unemployment is way up; the S&P, way down. In fact, in the 185-year history of the Standard & Poor’s Index, the two years with the lowest return (-50%) were 2008 and 1931 … during the Great Depression.

So why am I so optimistic about the future of the country and my firm?

Because history demonstrates that the entrepreneurial spirit can triumph in even the most trying economic times … even in the depths of the Depression. Take a look at three companies launched in 1931:

• When Standard Oil of New York merged with Vacuum Oil, it created the predecessor of the company now known as ExxonMobil.

• In 1931, Shojiro Ishibashi founded the Bridgestone Tire Company — today, the world's largest manufacturer of tires and a range of other industrial products.

• That same year, Sears Roebuck President Robert Wood was convinced he could make money selling car insurance through a mail order catalogue. Today, Allstate is the largest publicly held personal lines insurer in the U.S.

In 2007, the combined sales of these three companies totaled $471 billion. That’s more than the total GDP of Sweden! And it’s just the tip of the iceberg.

A host of other great companies and brands trace their birth to the ten years immediately following the Great Wall Street Crash of 1929 … among them, Hewlett-Packard, Revlon, Unilever, Baxter International, Sara Lee, Westin Hotels, Canon, GMAC Insurance, Zabar’s, Morgan Stanley, Krispy Kreme, Pepperidge Farm, Avery Dennison, DC Comics, T. Rowe Price, Owens Corning and GNC.

In 2005, Senator John Kerry said, “In this remarkable time for the world, I refuse to believe it’s time to stop believing in the possibilities of our remarkable country. I refuse to accept the downsizing of the American Dream. I refuse to bet against American entrepreneurial spirit and American ingenuity.”

I believe that the entrepreneurial spirit — which is alive and well in the United States — gives us the power to turn adversity into advantage. And that’s why I have every confidence that we will successfully weather the current storm.

Technorati Tags: national debt, Unemployment, Standard & Poor’s Index, 2008, 1931, the Great Depression, future, history, Senator John Kerry, the American Dream, entrepreneurial, American, business, communications, public relations

SUCCESSION PLANNING: REMEMBER THE CEO JUST RENTS THE OFFICE

2009-02-02T16:55:00.005-05:00

In just the first few weeks of 2009, a number of corporate CEOs were sent packing. Seagate, Tyson Foods, and Borders Group were just some of the companies that announced changes at the top. Also, Apple chief Steve Jobs is taking a leave of absence for health reasons after months of speculation. More CEO changes are rumored to be on the way and may include some of the world’s leading companies.

The company’s reputation can be seriously tarnished if the succession issue is left unaddressed. For instance, commenting in his blog on the situation at Apple, New York Times business columnist Joe Nocera wrote: "The time has come for Apple's board to take control of this subject from Mr. Jobs and do the right thing by the company's investors.”

One of the main responsibilities for a CEO and the company’s board of directors is the development of a succession plan to insure the continuity of the company. Despite the critical importance of CEO succession, many companies are unprepared for the “changing of the guard” – either planned or unexpected. As a result, what should be an orderly, well-planned transition often turns into a crisis situation alarming virtually all of the company’s constituents – employees, suppliers, customers and, of course, investors.

One of our faced a succession issue, more specifically how to communicate the change at the top. The outgoing CEO was popular and successful. The board had identified his successor, a dark horse candidate virtually unknown to the outside world. Their initial plan was to announce the early retirement of the CEO without mention of his successor; a follow-up release would have identified his successor. We advised them that the executive changes should be announced in one comprehensive release to avoid unnecessary speculation and investor panic. They listened and we helped build an identity for the incoming CEO by arranging media interviews as well as through direct contact with the company’s investors.

In its report entitled, “A Practical Guide to CEO Succession Planning,” Russell Reynolds Associates, a leading executive search firm, outlines a number of steps designed to insure a smooth transition at the top. These include creating a written succession plan by the board, which should be reviewed twice a year. This plan establishes the basis for selecting a new leader through an examination of the company’s strategic direction while factoring in various business challenges. With the plan in place, the board can review internal as well as external candidates. The report also outlines the steps to insure a successful transition such as knowledge sharing between the outgoing and incoming CEO as well as a program to communicate with the company’s various stakeholders.

The current economic downturn will undoubtedly lead to more CEO departures. As the CEO is often “the face of the company,” its standing and reputation will depend on how the issue is handled.

Technorati Tags: Seagate, The New York Times, Tyson Foods, Borders Group, Steve Jobs, Apple, Joe Nocera, succession plan, Russell Reynolds Associates, investing, CEO, investors, business, communications, public relations

An Inappropriate Thank You Note

2009-01-26T17:41:00.008-05:00

Outrageous! Chrysler has been spending hundreds of thousands of dollars on ads that have been running in The New York Times, USA Today and the Wall Street Journal , among other media outlets, to thank Americans for “investing in Chrysler” through the government's $17.4 billion auto industry bailout. The ad also stated Chrysler’s commitment to making quality products, improving fuel economy and providing “vehicles you want to buy.”

It is hard to fathom why Chrysler would be spending this kind of money on a thank you note when they are struggling to survive.

Don’t get me wrong. Thank you notes are nice. But the bailout was not a thoughtful gift to Chrysler from its legion of fans. Nor are taxpayers investors in the classic sense … so why does the ad use the term “investing?” Among all the investment options open to taxpayers, they did not choose to buy shares in Chrysler…it was a government decision, right or wrong.

While thanking your stakeholders is a noble policy, it could have easily been achieved through public relations techniques including press releases, the website, and emails … which would have amounted to a comparatively small dollar amount and could have accomplished the same thing. These funds could have been better spent on research to make better vehicles.

Taxpayers who are forced to help Chrysler in this bailout have a right to be angry about what undoubtedly is perceived as irresponsible spending. This was a disappointing public relations move on the part of Chrysler.

Since writing this, I noted that the ad was posted on the Chrysler blog. In fact, it got so many negative comments that Chrysler recently pulled it.

Technorati Tags: Chrysler, The New York Times, USA Today, Wall Street Journal, government, auto industry, fuel economy, bailout, taxpayers, investing, stakeholders, vehicles, business, communications, public relations

When America Expected a Black President — and Why

2009-01-21T12:52:00.009-05:00

I was intrigued by the reprint of a 2001 survey of the American public appearing in USA Today on January 19, the day before Barack Obama’s inauguration, which asked the question, “When do you think the US will have its first black President?” Keep in mind that this question was asked in 2001. Here’s the answer:

• 43%: within 25 years
• 36%: within 10 years

The remaining 21% were split into small percentages showing “never,” “no opinion“and “after or within 100 years.”

Why, I wondered, did nearly half the population say “within 25 years” and why only slightly more than a third say “within 10 years”? What were the conditions in 2001 that would make people feel that the election of a black President was possibly six elections off? Here are my speculations on the entire matter as well as why one-third of the population turned out to be right.

The first reason is lack of a viable black candidate. While there have been many proven black leaders in positions of national responsibility who became a recognized force in public life — Ralph Bunche, Frederick Douglass, Harriett Tubman, W.E.B. DuBois, Sojourner Truth and Marcus Garvey and, of course, Martin Luther King — only a handful ( including Shirley Chisholm and Carol Moseley Braun) have run for the presidency. None was considered a mainstream candidate.

More recently, Colin Powell — who served, during his illustrious career as U.S. Secretary of State, National Security Advisor, Commander-in-Chief of the U.S. Army Forces Command and Chairman of the Joint Chiefs of Staff, during the Gulf War … and who led us to victory countering Iraq in its invasion of Kuwait during the administration of Bush 41— might well have been the most universally respected and credible potential Presidential candidate in recent memory, but he declined to run. Condoleezza Rice, Secretary of State during the administration of Bush 43, was never a candidate. At the time of the USA Today survey, therefore, there was no one on the horizon to make a black President seem imminent or even something that could happen in the foreseeable future.

Secondly, among the 43% or 36% who might have been far-thinking, they possibly realized that the minority population of the U.S. was projected to pass the white population in 2042, making the minority a majority, thereby increasing the likelihood that, by then, we would indeed elect a black President.

Thirdly, we were lacking role models. While to some extent Hollywood movies (such as “Deep Impact”)and television shows (like “24”) have cast blacks in political leadership roles and even the presidency, the idea still seemed like a novelty … far-fetched.

Fourth, most black political leaders who had declared for the presidency were positioned as representing the black community and dedicated to improving the lot of that community, rather than all of us. Two come to mind: Chicago’s Jesse Jackson and Al Sharpton, from New York. It would have been challenging for them to change their positioning, as their careers were built on that premise; their identities as advocates for African-Americans were already firmly established.

Fifth, in 2001, following 9-11, as a nation focused on security, and in the throes of the dot com recession, the ascendancy of a black President was just not on the public’s mind. Impressive black talent was emerging in business and state leadership, but the numbers were not significant enough for even those paying attention to make bold predictions.

Obviously the 36% who predicted the event would happen within 10 years were either clairvoyant, lucky or saw something that others did not. For example, the aforementioned rise of blacks in state and business leadership positions, the changing attitudes gradually wrought by the Civil Rights Act and the integration and social acceptance of blacks among those on university campuses (e.g., by the dawn of the new millennium, most fraternities and sororities had eliminated the color and religion bar).

Whatever the reasons people made those projections in 2001, I know I am not alone in contending that Barack Obama’s success transcended color. Nevertheless, the very fact that his election happened is still a critical positive change in American attitudes and the way in which our legal system can effect that change.

Obama, the man, caught the drift of what the public needed to hear, and he delivered. From the very start of his campaign, Obama has refused to allow himself to be positioned as a “race” candidate. Unlike his predecessors (e.g., Jackson, Sharpton, et al), he spoke unifying themes: change when the public felt change was needed, bringing people together following a period of divisiveness, inclusiveness when we needed the power of many to get things done, and a vision of hope when the public pulse required optimism and reconciliation.

What came across was a man who could lead with compassion and get things done, not a black man inevitably linked by his color to the many challenges the black community has faced for years, although he embraced those as well.

The situation recalls the statement made by the famous black actor, Sidney Poitier, in the 1960’s movie, “Guess Who’s Coming to Dinner.” Poitier plays the role of a brilliant doctor who has held world-class health leadership positions. He’s about to marry an upper class white woman. Poitier, facing the rejection of his father who feels his son should stay within his station, says, “Dad, the difference between you and me is that you see yourself as a colored man, and I see myself as a man.”

We have come a long way since the ‘60s. But this indeed describes Barack Obama and the image he projects. Many social forces enabled us to become color blind. His self-image can only positively affect the black community and how it sees itself, in the future. This perception and the resulting self-confidence of that community can only expand the talent available to make this country greater.

According to the Washington Post, in 2000, President Clinton's former chief adviser on race, Christopher Edley, Jr., was asked to speculate about the prospects of a black president by 2020. "I'm pessimistic about that," said Edley. "I think we will see a woman or Latino before we see an African American."

Nearly one-third of the population in that 2001 survey was able to more accurately predict the future than Edley, now dean of the Boalt Hall School of Law at U.C. Berkeley. They were visionary enough to imagine our first black president. I’m proud they were able to do so.

Technorati Tags: Washington Post, Colin Powell, Bill Clinton, Toni Morrison, election, Martin Luther King, population, President, Barack Obama, inauguration, USA Today, American, business, communications, public relations

The 13 People, Places and Things that Most Need a PR Bailout in 2009

2009-01-12T15:32:00.011-05:00

What’s a public relations bailout? It’s a necessary, fundamental and substantive change in an individual, organization or institution that’s lost its way, which requires a program to communicate the change and thereby redeem the entity’s reputation. Here, in no particular order, are my picks for the top 13 of 2009:

The financial services industry (e.g., subprime lending, asset management, credit default swaps, hedge funds)

U.S. Securities and Exchange Commission (SEC)

The Republican Party

Ford, Chrysler and GM

City of Detroit

New York Yankees

Oil Industry

Alan Greenspan

United States (as a global brand)

Airline Industry

Starbucks

Richard S. Fuld, Jr. (former chairman of Lehman Brothers, now in Chapter 11 bankruptcy.)

Paris Hilton

Technorati Tags: financial services industry, SEC, Republican Party, Ford, Crysler, GM, Detroit, New York Yankees, oil industry, business, Alan Greenspan, United States, global brand, airline industry, Starbucks, Richard S. Fuld, Jr., chapter 11 bankruptcy, Paris Hilton

The First Presidential Blogger?

2009-01-05T12:04:00.003-05:00

Imagine! The first blogger President. And a blog is right in line with the bold and transparent environment which Obama has tried to create.

He could discuss every new or controversial policy in a blog – and people throughout the world could comment. While he could tackle topics from Iran and Iraq to health and defense, he also could talk about his favorite movies, how he spends time with his daughters, and the foods that he can’t resist. With one keystroke, he could conduct his own “March of Dimes” for the people in Darfur and with the next, challenge a trade in baseball or softball. Press conferences could be conducted on the internet with instant survey reactions to what is being said.

This Presidential internet strategy would model democratic behavior – and serve as an example for the world. It literally is worldwide citizen engagement. As FDR gained support of Americans via the radio fireside chats, Obama has the opportunity to build global support for his vision of a unified world. Idealistic? Maybe. But possible with this new chosen channel.

While the government has challenged Obama’s use of the Blackberry for fear a misstatement or sharp response could be published rapidly around the world, nothing offers better control than a blog. It is final once it is posted. All responses can be calculated.

The only negative I can see is that it indeed will accelerate the shift away from newspapers, TV and radio even more than before.

But the overriding advantage — if Obama is open to it and can find the time — is that citizens of the world will get to know our president in a way that has never happened before. And perhaps that level of communications can bring a level of understanding that has never existed in the world.

Technorati Tags: President, Obama, controversial policy, blog, internet strategy, Americans, Makovsky, Blackberry, March of Dimes, business, communications, public relations

Peace سلام Paz שלום Paix 平和 Мир Fred

2008-12-22T17:15:00.005-05:00

[NOTE: That’s “peace” in English, Arabic, Spanish, Hebrew, French, Japanese, Russian and Swedish]

This week and next, I’d like to take a break from my usual blog to pause, express gratitude for the blessings of family and friends and to wish you — my readers — peace, joy and prosperity now and throughout the New Year.

Boosting Employee Morale in a Down Economy

2008-12-15T12:39:00.006-05:00

I remember after 9/11 how significantly employee morale fell; it was understandable. Nevertheless, while I always found a great escape in my work during such periods, that obviously isn’t true for everybody.

Thus, it was not surprising — in the current economic environment — to learn that there is once again a breakdown in employee morale. A recent survey found that more than a third of employees attributed the decline in morale to a lack of open, honest communications on the part of their bosses about what was really going on in the company. Other reasons for poor morale were failure to recognize employee achievements (19%) and micromanagement (17%). Such breakdowns – with all the work to be done – are not good for any firm or for the economy at large.

Enter the Makovsky “We Achieve” program – designed to “make” bosses talk to their employees (and all of us talk to each other) and recognize those who role-model best practices. It is based around business-size cards, each with a Makovsky firm value: educate, communicate, innovate, initiate, collaborate and motivate. Anyone demonstrating one of those values through his or her behavior is given a card, noting on the back the specific action. The person with the most cards wins a cash prize bi-monthly.

Thus, it was interesting to note that 48 percent of executives cited communications as the solution to strong employee morale, and both recognition and monetary rewards were runners-up in the battle to beat bad morale.

Technorati Tags: employee morale, poor morale, best practices, micromanagement, innovate, 9/11, Makovsky, business, communications, public relations

“Green” Pressure

2008-12-08T15:31:00.005-05:00

Investors are now starting to “go green,” which will likely impact corporate action.

With that in mind, it is important to note that Makovsky + Company’s “Green Gap Survey” of the Fortune 1000, with Harris Interactive, demonstrated that while nearly 80% of corporate leaders were personally concerned about climate change and the threat it posed to future generations, only 57% of companies were taking action to address CO2 emissions standards.

However, once major institutional funds start diverting their “greens” to corporations that indeed are acting to change the environment, might that lagging percentage go up?

A recent New York Times story by Elisabeth Rosenthal on November 28 noted that “investing with the idea of improving the environmental actions of corporations, not just maximizing profit, is catching on among some big pension funds and foundations particularly in Europe and even in the U.S.” These huge funds are redirecting investment to either those companies who don’t damage the environment or have programs that limit their emissions that contribute to global warming. Some funds are also divesting themselves of stakes in companies that are environmentally lax.

Some of the funds involved are the Norwegian Government Pension Fund–Global, ABP (the huge Dutch government pension fund), the pension fund of the British Environmental Agency and the California State Teachers’ Retirement Fund, among others.

Money talks – and the “green gap” will close … albeit gradually. Other expected pressures ? Federal regulations and consumer demands.

Technorati Tags: go green,climate change, pension funds,Elisabeth Rosenthal, social media communications, environment, New York Times, Harris Interactive, Makovsky + Company, Investors, communications, public relations

IBM, Trust and the Great Global Conversation

2008-12-01T16:22:00.006-05:00

At least once a month our firm invites a thought leader to present and discuss a topic of particular interest to our PR professionals and others on our staff. Last month’s guest speaker was Adam Christensen, IBM’s social media communications manager. Adam provided us with an excellent overview of how IBM is integrating all aspects of Web 2.0/social media — including social networking, blogging and podcasting — into its communications efforts.

For me, the two most significant takeaways were 1) the staggering numbers of IBM employees worldwide who are involved in blogging and other forms of social media and 2) the freedom and respect for their independence that they receive from their employer.

IBM realized, Adam said, that the general public’s perception of the IBM brand will be significantly shaped by their interaction with its 380,000 employees, and the opinions they spread among their families and friends. Further, the perception of the IBM brand among its employees also will be shaped by collaboration with each other.

Thus, in 2003, at a time of great change for the company, IBM was exploring what its brand stood for. Employees were invited to post their responses on a message board. Many of the earliest responses were negative in tone. IBM could have shut down the message board, but it had faith in its people — and that faith was not misplaced. Sure enough, once people had had a chance to express their doubts and fears, they began to express their feelings about the strengths of the brand, the company and its people, products and services.

Today, with IBM’s 380,000 employees now in 170 countries, IBM has 60,000 registered bloggers. About 15,000 are individuals who post with some regularity. Their involvement in the social media is an important expression of IBM’s culture of collaboration … one of the technology leader’s special strengths.

Even IBM’s corporate blogging policy was developed collaboratively by its bloggers. There is no IBM staff person dedicated to monitoring blogs.

IBM’s collaboration platforms also extend to clients, partners and competitors, as well as key opinion leaders. According to Adam anyone on the outside can have contact with anyone on the inside.

I’ve often said that “trust is where it’s at.” IBM employees’ leadership in the social media is a testament to the central importance of trust in the corporate culture at IBM.

Technorati Tags: Adam Christensen, IBM, social media communications, blogging, IBM brand, corporate blogging policy, social networking, business, communications, public relations

The Power — and Truth — of Headlines

2008-11-24T10:37:00.008-05:00

It has always been my philosophy that, if you want to do a fast read of any media channel, you don’t have to read the body of an article; the headline will tell you a lot regarding trends, content and even future direction.

I do admit that sometimes there can be a negative headline that has positive body copy or the reverse, but that is rare. It typically occurs when there is an attention-getting point within the story and usually does not reflect the bulk of the story.

Here is an assortment of headlines I found in The New York Times Business Section on November 11:

Electronics Store Files for Bankruptcy

A $150 Billion Rescue for A.I.G. As It Reports a $25 Billion Loss

Fannie Mae’s Years of Gains Evaporate in a $29 Billion Hit

Big Quarterly Loss for Nortel: Shares Are Down 25%

DKHL Cuts 9,500 Jobs in U.S. and an Ohio Town Takes the Brunt

Corporate Doubts Send Shares Down

Citigroup Offers to Ease Mortgage Terms

Tyson Foods Posts a Profit, But Forecasts A Downturn

Tribune Company Loses $121 Million

Out of nine randomly selected headlines, six were negative, two were neutral and only one was positive. Reading these dire headlines would tend to reinforce your trepidation about the global economy and its impact on your own financial well-being.

This was a great reminder to me of the power of headlines to reduce a complex issue to a simple dichotomy: good news or bad. Mostly bad. Bad news sells, as is testified to by the old TV producer’s adage: “If it bleeds, it leads.”

Since 1986, the Pew Research Center for the People & the Press has regularly surveyed the U.S. public about the extent of their interest in major news events of the day. Although the size and scope of the American news media have changed dramatically over the past 20+ years, the news interests and preferences of the American people have remained surprisingly static. “Disaster news” (reports about catastrophes, man-made or natural) garners the most attention, followed by “money news” (stories about employment, inflation and prices — especially the price of gasoline) and “conflict news” (stories about war, terrorism, and social violence). Certainly that accounts for at least part of the negative tilt of the Times’ headlines on Veterans Day.

By all means, use headlines as signposts to content that’s worth a second glance. With all the messages bombarding us all day long, who has time to read more than a fraction of what’s out there? However, I would also recommend reading deeper and more widely, if you’re interested in more than just the “news hook” … if you’re interested in what is really going on.

Technorati Tags: headlines, The New York Times, Pew Research Center, news hook, American news media, disaster news, money news, conflict news, business, communications, public relations

Marketing in Challenging Times

2008-11-17T16:13:00.007-05:00

Many companies seem to be wrestling with the same question today: “In these troubled times, should we be cutting back on our marketing initiatives?”

If you listen to Advertising Age, you won’t cut your marketing budget … at all … ever!

As editor Jack Neff wrote earlier this year: “Don’t cut that budget. Recessions offer what may be unprecedented opportunities to market in an environment of relatively less noise, as others cut back.”

Of course, AdAge may not be the most neutral authority when it comes to the value of marketing. What do the academics and social scientists have to say?

Harvard Business School Professor John Quelch; Gary Lilien and Arvind Rangaswamy, professors at Penn State's Smeal College of Business; McGraw-Hill and a research firm called Meldrum & Fewsmith all agree that increasing marketing and/or advertising expenditures in a recession yields powerful benefits, including better business performance, increased sales, higher profits and a dramatic positive change in market position.

The McGraw-Hill study of 600 industrial companies, for example, found that B2B firms that maintained or increased their advertising expenditures during the recession “grew their sales 275% from 1980-1985. Sales of those that cut their ad spending averaged only 19% growth during the same period.”

According to Anna Maria Virzi, executive editor of The ClickZ Network , during the 2001 recession, Dell and Wal-Mart saw the downturn as an opportunity to invest more than weaker rivals in marketing. They were following the path laid during the Great Depression, when Camel cigarettes and Chevrolet were known for their aggressive marketing and grabbing market share from rivals.

And remember: PR is significantly less expensive than advertising and much more credible. We’re talking about a modest investment in time and money that delivers a major return on investment.

When pondering the future, think of yourself as a distance runner — if you’re strong already, when you hit the hill, you’re going to speed up a little. You need more than just strength, you need the strategy and nerve to exploit your strength.

Technorati Tags: marketing, advertising, recession, Advertising Age, Jack Neff, John Quelch, Gary Lilien, Arvind Rangaswamy, McGraw-Hill, Meldrum & Fewsmith, Anna Maria Virzi, The ClickZ Network, advertising expenditures, business, communications, public relations

International Perceptions About Obama

2008-11-10T15:11:00.003-05:00

Here are some are some perceptions about President-Elect Barack Obama which have appeared mostly in the international press and reprinted mostly by The New York Times. I have purposely not attributed these quotes or the country of origin so that you can focus on what is being said, rather than who said it or where it was said. In many cases these are statements of government officials, academics and social scientists and they emanate from nearly every continent.

A Unique Country
"There is a country out there where tens of millions of white Christians, voting freely, elect as their leader a black man of modest origin, the son of a Muslim. There is a place on Earth – call it America – where such a thing happens."

A Shifted Course
"But wonder is almost overwhelmed by relief. Mr. Obama’s election offers most non-Americans a sense that the imperial power capable of doing such good and such harm – a country that, they complain, preached justice but tortured its captives, launched a disastrous war in Iraq, turned its back on the environment and greedily dragged the world into economic chaos – saw the errors of its ways over the past eight years and shifted course."

A Part of Us
"People feel he is a part of them because he has this multiracial, multiethnic and multinational dimension. People find some thread of their own hopes and ideals in Mr. Obama. He represents, for people in so many different communities and cultures, a personal connection. There is an immigrant component and a minority component."

America Again a Beacon of Hope
"His ability to inhabit so many categories mirrors the African experience. For America to choose as its citizen in chief such a skillful straddler of global identities could not help but transform the nation’s image, making it once again the screen upon which the hopes and ambitions of the world are projected."

Empathy with the Poor Nations
Mr. Obama’s background, particularly his upbringing in Indonesia, made him suited to understanding the problems facing the world’s poorer nations.

Overcoming our Racist Past: A Symbol for Others?
"There is another paradox about the world’s view of the election of Mr. Obama: many who are quick to condemn the United States for its racist past and now congratulate it for a milestone fail to acknowledge the same problem in their own societies."

Changing our Image in Russia
"Definitely, this will improve America’s image in Russia. There was this perception before of widespread racism in America, deeply rooted racism."

An Obstacle in Nigeria but not in the U.S.
"If Obama had been a Nigerian, his race, color and age would have been an intractable problem."

Everything is Possible
"He has so many things not preferable in a president. He is a black, and his middle name is Hussein, and all that stuff. But this is a country where everything is possible."

Focus on Quality
"This is a historic moment not only for the United States, but so we can all get away from perceptions about religion and race and instead consider the quality of the person."

Obama on Iraq
"While the election of a black man as the president of the United States was considered admirable, Mr. Obama’s promise to start withdrawing troops from Iraq was a cause for great concern."

Change – For Real?
"But most of the teenagers at the post-election discussion said they would need convincing before they were willing to believe that ‘change’ was more than a slick slogan."

I would only add that while Obama stands as a role-model for all Americans — minorities as well as whites — hopefully, his election will also change perceptions of blacks within their own communities. For example, I have heard that some young black men who are hard-working students and make excellent grades are ridiculed by their black friends as being “too white". Now we have a black president who stands among the elite in terms of his academic pedigree.

Further, Obama was criticized by some blacks during the primary days as not being “black enough” because he was not descended from slaves. Hopefully, his election now is a symbol for all blacks everywhere. The polls have shown that there was no “Bradley effect” (a vote in the voting booth is different than a poll declaration) among voting whites, and that Obama got 43% of the white vote.

Obama connected with a large number of the voting public both verbally and silently by projecting calm, humility and leadership. His victory – as has been acknowledged – is a transformational one, both actually and perceptually, throughout the world. May his achievements in the next four years stand as tall as the perception about Obama stands today.

Drucker: Defining Business

2008-11-03T09:33:00.008-05:00

Peter Drucker, the esteemed business strategist and visionary, developed simple definitions of some of the most popular words in the business vernacular, e.g. success, management, people, plans, leadership. I discovered these in Drucker’s books. I hope you find them as thought provoking as I did:

Business – the purpose of a business is to create customers

Education – leaning how to learn, and continuing to learn all one’s life

Efficiency – doing better what is already being done

Hiring – finding out what someone is really good at, and then placing him or her in a position where those strengths can produce results

Innovation – the act that endows resources with a new capacity to create wealth

Leadership – doing the right things

Management – doing things right

Management Focus – the great danger in an organization is that managers disappear inside it and spend all their time and energy on internal problems

People – the most important resource in business

Plans – good intentions that immediately degenerate into hard work

Success – wherever there is a successful business, someone once made a courageous decision

Time – a unique, irreplaceable and necessary business resource that most people take for granted

Technorati Tags: Peter Drucker, business vernacular, education, efficiency, hiring, innovation, leadership, management, management focus, people, plan, success, time, business, communications, public relations

From Financial Chaos to Financial Order

2008-10-27T09:19:00.002-04:00

Transparency is a powerful antidote for what ails our capital markets.
Christopher Cox
Chairman
SEC

In view of the globalization of our financial markets, shouldn’t we form an international body that, if not a regulatory group, at least a watchdog alert system which helps prevent transactions in one sector or country from negatively affecting other areas. As Tom Friedman noted in his New York Times October 19th column: “We’re all connected and nobody is in charge.” Is my proposal too wild a dream?

The British were invested to the tune of $1.8 billion – according to Friedman -- in Icelandic banks that went under, and which the Icelandic government finally seized control of. Among the investors were 120 British municipalities, as well as universities, hospitals and charities. Of course, this is most likely a footnote to the billions in mortgages which were bundled and sold up the global financial ladder, the root cause of this international credit crunch.

In the same New York Times issue and across the page, Christopher Cox, SEC Chairman, comments on the lack of regulations on credit default swaps, which are like insurance on assets that default, in this case, mortgage-related securities. $440 billion in AIG – issued credit default swaps, have been put at risk. Cox notes that the total market for these swaps -- $55 trillion, bigger than the GDP of all nations on earth – operated in the shadows, without public disclosure or any legal requirements for these contracts to be reported to the SEC. Therefore, says Cox, “So government regulators have no way of assessing how much risk is in the system” – and how others may be threatened.

If we know what is going on and report it accurately, then investors will have confidence in the markets, can assess risk and know where to put their money.

However, I do recognize that this will be no easy undertaking given the differences in regulations and market philosophies throughout the world. For example, while the U.S. capital markets are “rules-based,” markets in the UK are “principles-based.” In addition, there are varying accounting standards throughout the world that would have to be meshed in some way.

Cox argues for Congress to set up such a regulatory system. Let’s do that. But I say take it another step forward. Since internationally we are all each other’s clients (key global economies are already tied together), why not set up a transparency system that at least watchdogs the world, and assesses the possibility of establishing global regulations that will change worldwide chaos to worldwide order? As difficult as this may be, it is worth a try. The management of this intricate global economic system may also yield peace dividends.

How Newspapers Can Adapt to the Internet Age

2008-10-20T14:13:00.005-04:00

I’m intrigued by an idea I’ve recently read about called “community funded journalism.” A website called Spot.us seeks ideas for investigative articles that people feel should be done and then asks the community to provide the funds to pay journalists to do the work … the end result of which is published on the site. Obviously, if there is no response, the story dies.

Why am I intrigued? Because if properly handled, it could be a very democratic and collaborative way to save newspapers and one that, but for the Internet, could not happen. It also offers public relations professionals an alternative to a relevant editor in the print media who is holding back a commitment to cover a client story that desperately needs to be told. We, of course, all realize that this “Spot.us innovation” has come about because the rise of the internet has resulted in a decline in advertising support of newspapers.

The good news is that an article that flies via Spot.us truly has the support of various groups; in fact, that support (or lack of it) adds an element of measurement before the article is even printed. Furthermore, anyone can propose a story about anything. This further empowers citizens. Newspapers can develop their own website version of Spot.us, setting it up as a supplement to their print editions.

What are the possible downsides of this creative idea? The New York Times notes: (1) If an organization with an agenda sponsors an article, the piece could be biased. Therefore, Spot.us limits every contributor to no more than 20 percent of the total cost. It also seems Spot.us should cite the profiles of the contributors, if not the names themselves. (2) This approach enables journalism to be bought by the highest bidder. But, once again, limiting the percent any one contributor makes can offset this problem. (3) Newspapers have a right to purchase these stories from Spot.us but then they would need to disclose that they did so and perhaps even reveal the profile of the underwriter. (4) News that is important may not get the support it should, and key stories could be lost.

This “crowdfunding” approach is worth thinking about because it is another example of how newspapers might adapt their model to the Internet age, and help solve their financial problems. Of course, their profits would have to be taken into account and when arriving at a price, many journalists would become free agents, receiving assignments from multiple news organizations, thereby employing many of those who are now out of work.

Technorati Tags: newspapers, internet, community funded journalism, Spot.us, community, The New York Times, crowdfunding, business, communications, public relations

What If the Whole World Could Vote?

2008-10-13T09:41:00.006-04:00

The U.S. is one of the most powerful countries in the world, so it’s not surprising that there are lots of non-Americans who share our intense interest in the U.S. presidential election. The Economist is giving them a voice through a nifty web-based global version of the U.S. Electoral College.

The fact that the Economist is doing this speaks to the world impact of our government — an interesting point in view of the almost universal “U.S.-bashing” over the past eight years. It also underscores the financial magazine's recognition of the importance of its nearly 700,000 U.S. subscribers and the need for continued growth here.

In an interview with Ad Age, the Economist’s Ron Diorio is quoted as saying, “We're trying to recognize that the U.S. has a significant role in the world's economy and politics and offer people a way to get a little bit off their chest.”

The authentic U.S. Electoral College is comprised of 538 electors, the equivalent of the total membership of both Houses of Congress (435 Representatives and 100 Senators) plus 3 electors allocated to Washington, DC. Each state has as many electors as it has Representatives and Senators in Congress. Since the most populous states have the most seats in the House, they also have the most electors.

The Economist’s version gives 195 of the world's countries — including, of course, the U.S. — a say in the election, by allocating a minimum of three electoral-college votes to each, plus one vote for every 700,000 citizens in the country. For example, China, with a population of more than 1 billion, has 1,900 votes; the Bahamas has 3. The U.S. has been allocated 432 votes out of the 9,875 vote total.

Voting in the Economist's Global Electoral College will close at midnight London time on November 1, when the candidate with most votes will be declared the winner.

Technorati Tags: U.S. presidential election, Economist, U.S. Electoral College, U.S.-bashing, Ad Age, Ron Diorio, Congress, Global Electoral College, business, communications, public relations

An Urgent Transparency Concern

2008-10-06T14:39:00.007-04:00

I have an urgent transparency concern that impacts all political parties, our government, the entire nation and the world.

It is brought to mind by the current publicity noting whether McCain's health records have been fully exposed, that only 20 reporters were invited to a three-hour only session last May to review 1,173 pages of these records without the ability to take copies. Of course, the records refer just to McCain's physical health, and the review time allotted and the number of reporters involved seem inappropriate in view of the gravity of the situation.

But why pick on McCain? True, his melanoma history is an issue, but what about the physical health records of all four candidates running? Further, what about their mental health records? Why aren't they vetted and presented in an organized way simultaneously for all to see?

Shouldn't there be an election law requiring that certain standards be met in the release of both physical and mental health records to the media? And once elected shouldn't presidents and vice presidents have a required mental health check up the same way it is now traditional to have a physical health check up--with results reported to the public?

According to NYU’s Scienceline blog — which is produced by graduate students in the university’s Science, Health and Environmental Reporting Program — the medical records of presidential candidates are shielded by federal law. No candidate for commander-in-chief is legally required to disclose any medical conditions. Nevertheless, I feel strongly that the public has a right to know if a candidate suffers from any physical or mental condition that impedes his or her ability to govern … and that includes the ability to make a rational decision.

For 20years, mental conditions were hushed up, insurance did not cover psychiatrist visits, and the voting public would tag anyone as "crazy" if he or she had a psychological consultation. Many remember the removal of Tom Eagleton as a Democratic VP candidate in 1972 because it was discovered that he once had had shock treatments. Yet, according to a 2006 study in the Journal of Nervous and Mental Disease, 18 US Presidents suffered from a variety of psychiatric disorders, including depression, anxiety, bipolar disorder and alcohol abuse.

Fortunately, times have progressed, we are more sophisticated and understand the wonderful miracles that can be wrought by medical treatments of many kinds. That does not mean that certain conditions may not, indeed, warrant removal. On the other hand disclosure should not necessarily mean termination of a candidacy. But standards for disclosure should be set, and the degree of detail that is required. The 20 reporter, 3-hour limit McCain imposed should not be at his discretion. Today, sitting presidents customarily go through an annual physical with personal physicians, but the examination is not legally required. And even in this enlightened age, there is no law requiring a public report that our leaders are still of sound mind and body.

It was shocking for me to learn in Doris Kearn Goodwin's book, No Ordinary Time, which focused on the domestic impact of World War II, that Franklin Roosevelt had not had a complete physical checkup for years during his presidency, and only did so at the insistence of his daughter, as he became increasingly listless during the latter part of his third term. His physical showed that he had been suffering from an increasingly serious case of congestive heart failure over three years---undetected until that checkup. If my memory serves me correctly, the book revealed that this information was never released to the American public. Roosevelt was reelected for a fourth term---and then died within a year after the election.

Our nation's survival may be dependent on legislated transparency when it comes to the health condition of our candidates and leaders.

Technorati Tags: transparency, McCain, health records, presidential election, election law, Scienceline blog, Science, Health and Environmental Reporting Program, Tom Eagleton, mental health, Journal of Nervous and Mental Disease, Doris Kearn Goodwin, Frankin Roosevelt, business, communications, public relations

Current Financial Chaos Spotlights Ineffective Crisis Communications Planning

2008-09-29T15:15:00.005-04:00

Bad news abounds. Banks are failing as in the case of WaMu. Lehman went bust. “Shotgun” mergers a la Bank of America’s recent takeover of Merrill Lynch have taken place. All at a dizzying pace. This has led me to wonder how prepared were our government officials and the managements of these companies to deal with these crisis situations? From where I sit, not very well.

Given the amount of money at their disposal it is inconceivable to think that those in charge of these entities could not have afforded to retain crisis communications specialists. If they did have access to such advisors, they probably weren’t used effectively. Often, bankers and investors can delude themselves into thinking that the good times will last forever, never planning for the inevitable downturn.

For nearly 30 years we have advised clients on how to navigate a crisis, many have been severe. Many of these clients did not have a crisis plan in place before coming to us. We prepare our clients for the worst case scenarios. We brainstorm with them and encourage them to think the unthinkable about every possible situation that could impact their businesses. Then we develop a plan. About half of what you need to navigate a crisis can be done well in advance of it hitting.

While I could fill pages with advice, I will offer a few helpful management tips:

Manage expectations – This might be too daunting a task given how rapidly things change in times of a crisis; however, communicating appropriate expectations about the degree of a problem on an ongoing basis will earn management a degree of credibility and speed the recovery process for the company’s reputation.

Know your stakeholders and rally the troops – Although it may be too late to build a relationship with key stakeholder groups once a crisis hits, it is not too late to reach out to them to reassure them and address their concerns. All stakeholders are important but employees are critical to the firm’s ability to weather the storm, therefore, special attention needs to be placed on employee communications during times of crisis.

Speak with “one voice” to all stakeholders – Simplicity, clarity and frequency are the name of the game here. Companies benefit from a consistent delivery of a message of stability, control and a plan to rectify the situation.

Increase management visibility – In times of crisis, the senior management team needs to be visible, project a level of control, tackle the tough questions, offer plans and solutions, and instill a level of confidence in all stakeholders to foster the belief that the company can emerge stronger than ever.

“We don’t comment on rumors” doesn’t apply in crisis situations – If unfounded rumors regarding the health of an organization are causing investors and other stakeholders to act irrationally, the firm has an obligation to publicly address their concerns for the benefit of all stakeholders.

A crisis plan is like your last will and testament; you need one but hope you never have to use it.

Technorati Tags: crisis communications planning, financial chaos, WaMu, Lehman Brothers, Bank of America, Merrill Lynch, mergers, crisis plan, management, stakeholders, business, communications, public relations

Bridging the “Green Gap”

2008-09-22T15:49:00.007-04:00

The gap between values and behavior represents a significant reputational risk for individuals, institutions and entire industries. It’s true for the Presidential race. It’s true for Wall Street. And it’s no less true for corporations’ role in addressing climate change, according to the results of a study released by our firm today.

Conducted by Harris Interactive, the 2008 Makovsky Green Gap Survey of 150 leading executives at Fortune 1000 companies found that the vast majority (80%) of top American executives say they are “personally concerned” about climate change. Despite the fact that they believe that climate change is real — and a threat to future generations — as a group they are not driving their organizations to act on those convictions. For example, 76 percent say that their companies should be collaborating with industry groups, suppliers and/or customers to address CO2 emissions standards, but only 57 percent are doing so. While 71 percent say that their companies should be educating employees on climate change issues, only 49 percent are following through.

This is the “green gap.” What accounts for it? It’s not what you would think … it’s not that there is no perceived pay-off for responsible environmental stewardship. In fact, the vast majority (73%) of senior executives link environmentalism with business success. Sixty-one percent say that actions taken by corporations can, in fact, effect change on the environment. What’s more, three out of four (75%) think their company’s action on climate change issues could improve their corporate or brand reputation, strengthen sales and ROI (67%) and improve employee recruitment and retention (58%).

With such a substantial pay-off, why is there a “green gap” at all? According to the respondents, it’s a matter of resource allocation (cited by 60%) and cost (47%).

In her post on BusinessWeek’s Green Business blog, Associate Editor Heather Greene quotes, Makovsky EVP Robbin Goodman as saying, “American business leaders as a group are deeply concerned about global warming and believe that responsible environmental policies make business sense. The challenge moving forward, however, is to unleash these convictions.”

I couldn’t agree more! American businesses see shared responsibility when it comes to remedying the effects of climate change; individuals, the federal government and foreign governments also need to do their part. But it’s up to U.S. corporations to start the ball rolling. We need to bridge the “green gap,” especially when the pay-off represents an increased investment — both financially and emotionally — in the corporation by its stakeholders.

Technorati Tags: green gap, climate change, Harris Interactive, 2008 Makovsky Green Gap Survey, climate change issues, environment, business success, resource allocation, BusinessWeek, Green Business blog, Heather Greene, Robbin Goodman, business, communications, public relations

Passing Up the “National Pastime”!

2008-09-15T11:13:00.005-04:00

I always thought American baseball took pride in being known as the “national pastime.” To me “national pastime” means the sport of the American family; the sport that — regardless of gender or age or origin — almost anyone can play; and finally, the sport that brings millions of Americans together, regardless of income level and regardless of whether you are a participant, a fan or even have passing interest.

As ardent a capitalist as I am, I can’t understand why Major League Baseball would permit the Mets and Yankees (and probably other teams) in their new stadiums to charge nose-bleed ticket prices, thereby dramatically eroding our national pastime’s image by closing out the opportunity average families have to buy good seats, unless they want to “burn in the bleachers.”

We recently learned that the average cost for the most prized Mets seat at Citifield will be $494, a 79% increase over current rates. And at Yankee Stadium: $2500. They go down from there – as no doubt will middle-class fan attendance.

Is this the way to grow the game, inspire a broad fan base, encourage children to participate, build support and compete with other sports? As baseball caters to corporate expense accounts, they lose the largest segment of society from where their fan base has emanated.

While football is no less guilty, there are only roughly 16 games per season compared to more than 10 times that number in baseball. Greater supply. Lower demand. More affordable pricing. Isn’t that the smarter strategy?

Technorati Tags: National Pastime, baseball, sport, Major League Baseball, baseball ticket prices, middle class, Mets, Yankees, business, communications, public relations

Getting Mad for Nothing!

2008-09-08T17:28:00.005-04:00

One of my earliest experiences as an agency person was seeing an angry client rail about pulling his ads from a particular publication because he didn’t like something in an article about his company. I can’t remember the precise issue that roused his ire, but I remember that it was relatively minor and that, even if it weren’t, there were a whole host of reasons not to threaten someone on the editorial side with pressure on the advertising side.

With the advent of the internet, having a hissy fit about editorial content just expands the audience for an unflattering depiction of your company and its executives.

There was ample proof of this last month when Mad Magazine published a four-page parody of a Circuit City ad. You can see the “Sucker City” spoof on the Consumerist blog.

A thin-skinned Circuit City executive named Elizabeth Barron ordered all stores to “immediately remove all issues and copies” of the magazine from the sales floor and “throw them away.”

Her email was picked up by thousands of bloggers and hundreds of mainstream media and read by hundreds of thousands more, who added their own snarky commentary to the mix (such as this one: “Way to go, Circuit City. Your response to this means it's the first time anybody has paid attention to Mad Magazine in fifteen years.”)

The whole brouhaha calmed down the very next day, when Jim Babb, a savvy Circuit City communications pro, wrote an absolutely charming letter to the Consumerist that showed he had a sense of humor:

I spotted the article about Circuit City and MAD Magazine on your site.

Fyi, I became aware of this "situation" only this morning, and I have sent a note today to the Editors of MAD Magazine.

Speaking as "an embarrassed corporate PR Guy," I apologized for the fact that some overly-sensitive souls at our corporate headquarters ordered the removal of the August issue of MAD Magazine from our stores. Please keep in mind that only 40 of our 700 stores sell magazines at all.

The parody of our newspaper ad in the August MAD was very clever. Most of us at Circuit City share a rich sense of humor and irony...but there are occasional temporary lapses.

We apologize for the knee-jerk reaction, and have issued a retraction order; the affected stores are being directed to put the magazines back on sale.

As a gesture of our apology and deep respect for the folks at MAD Magazine, we are creating a cross-departmental task force to study the importance of humor in the corporate workplace and expect the resulting PowerPoint presentation to top out at least 300 pages, chock full of charts, graphs and company action plans.

In addition I have offered to send the MAD Magazine Editor a $20.00 Circuit City Gift Card, toward the purchase of a Nintendo Wii...if he can find one!

A sincere apology … delivered swiftly … with a convincing promise that the problem will not recur. That’s the essence of good media relations and great crisis communications.

Technorati Tags: Circuit City, Mad Magazine, Sucker City, Elizabeth Barron, Jim Babb, Consumerist, business, communications, public relations

U.S. Open: Close Minded?

2008-09-02T16:29:00.004-04:00

Talk about poor customer relations, deceitfulness, close-mindedness, bad public relations and not thinking strategically!

Whatever you want to call it, the 2008 U.S. Open, one of the prime worldwide sporting events, chose to commit a silly and yet insulting blunder.

What happened? The U.S.T.A announced last Thursday that there were no tickets left for the weekend. But, according to The New York Times, tickets were on sale on Friday morning.

The senior director of PR for the U.S.T.A. explained that indeed there were “200-300 seats available for Friday and probably 300 combined for Saturday and Sunday.” In explaining the previous no-ticket announcement, the PR director said, “We were looking to avoid a huge buildup of people, and people going away disappointed.”

Talking straight to potential ticket-buyers would have prevented disappointment at the box office. It would also have prevented a huge “builddown” in credibility both for the U.S.T.A and its senior PR director.

Technorati Tags: U.S. Open, poor customer relations, bad public relations, U.S.T.A, credibility, The New York Times, business, communications, public relations

Ikea: Smart PR, Smart Business

2008-08-26T09:24:00.008-04:00

It is refreshing to see that Ikea, the Swedish/International furniture store, is community relations sensitive, as evidenced by its actions in the Red Hook section of Brooklyn, New York. The store has distinguished itself, particularly in light of protests which have kept other major chains from entering key markets (e.g., residents of Staten Island, Queens and the Bronx have kept Wal-Mart out; and Manhattanites have kept Costco out.) The New York Times tells the story in its front page article on August 11, “Brooklyn Neighbors Admit a Big Box Isn’t All Bad.”

The protests against competitors obviously inspired Ikea’s benevolence but, regardless, its unique community strategies have inspired Brooklyn residents to embrace Ikea rather than turn away, as many opponents did — before Ikea acted — who felt the neighborhood would lose its character.

What I like about what Ikea did is that its management demonstrated wise strategic thinking, which is what one would expect from an established enterprise but often does not get. Management’s tactics addressed multiple audience segments beyond its basic customer base, focusing on those who influence customers, as well: young, old and even the general public. In doing so, the “resistance mat” has become a “welcome mat,” diluting anger through what I call a “community give-back program” focused on building current support and future customers.

Specifically, here are the magnificent moves Ikea made, according to the Times:

Built a grassy waterfront esplanade featuring benches with a view of the Lower Manhattan skyline, which is catching on as a neighborhood gathering place

Provides free N.Y. Water Taxi service between Red Hook and Manhattan, an appealing alternative to the subway

Offers a bus shuttle service taken by many people who are not even planning to enter the store

Allowed local Red Hook residents to apply for jobs at Ikea before others could

Selling 50 cent hot dogs in its café and offering free soda refills

One resident said Ikea’s actions are bringing badly needed visitors to the area who will spend money at other local stores. Another said Ikea may be a role-model for a future where people are less dependent on cars — and for building more developments on the waterfront. “There is a ripple effect,” he said.

But there is a ripple effect for Ikea as well. What it did has already appeared on the front page of the Times, not an easy achievement. That in itself is a magnet for customers. These moves will undoubtedly give a jump-start to business at the new store. Further it positions Ikea as a community leader, thereby sprinkling “stature dust” on it, providing a perception change among both advocates and adversaries, as well as the community at large. Said one resident: “Everyone was talking about it before — now no one talks about it anymore, which is nice.” Smart public relations is more about doing than talking.

Technorati Tags: Ikea, Red Hook, Brooklyn, Wal-Mart, Costco, NY Water Taxi, The New York Times, smart public relations, business, communications, public relations

Using the Internet as an Employee "Weapon"

2008-08-18T18:26:00.010-04:00

This is the story of how the internet has been used as a "weapon" by employees to publicly embarrass a CEO.

Escalating charges and countercharges are not unusual in labor-management disputes, so it was no surprise when United Airlines pilots reacted — loudly — to UAL Corp.’s refusal to negotiate a new contract and the company’s announcement of plans to eliminate 950 pilot jobs and ground some aircraft to help offset the rising cost of fuel. The pilots union countercharged that the airline’s poor maintenance was responsible for four recent aircraft engine failures.

But the battle didn’t stop there. The United pilots launched a website called “Glenn Tilton Must Go,” “as a daily reminder to everyone invested in a positive future for United Airlines exactly where the source of our problems lies.” According to the pilots, that source is the CEO of United who, they say, has neglected the company’s day-to-day operations for two years, while he attempted to engineer mergers with Delta, Continental and US Airways.

The new website highlights the carrier's poor operational and financial performance, encourages passengers to report any problems they’ve had while flying on United and demands Tilton’s immediate resignation.

Readers have responded. Gerry Braun, a San Diego Union-Tribune reporter, for example, tells the tale of a family unceremoniously bumped off a flight the mother had booked six months in advance so that her grown children could visit their dying father in a hospice just once before he died of cancer.

Not only was the launch of the “Glenn Tilton Must Go” website bruited all over the blogosphere, it’s been widely covered by the mainstream media, including BusinessWeek , USA Today, The New York Times, the UK’s Guardian.

As of today, there’s been no official response from United. But the website strategy employed by the union has served its purpose. Tilton has, no doubt, lost support among his employees and the public. The speed of destruction was enabled by the internet and is there for a long time to come for everyone to see. Years ago it might have been a one shot press release covered once in the print and broadcast media.

Technorati Tags: internet, United Airlines, labor management disputes, pilots union, Glenn Tilton, Gleen Tilton Must Go, Gerry Braun, business, communications, public relations