Legacy institutions are partially to blame for our country’s current recession. America has industrial-age business models functioning in a twenty-first century governed by knowledge workers and technology. Unfortunately, the automotive industry, government (think public schools, Social Security, Medicare/Medicaid and the postal service, for starters), airlines, printed news and people are struggling to adjust to the realities of today’s marketplace. Some have already gone along the wayside, like Anheuser-Busch!
As I have disdainfully listened to the debate on bailing out the auto industry, I am reminded about how many of the aforementioned industries in our country need change, but not in the form of a taxpayer bailout. I’m reminded of the system of government that we have adopted in America called capitalism. Pure capitalism was conceived as a self-regulating and self-adjusting economy, which does not have significant economic intervention by government. So, how did we get here?
America has become a country where failure is not an option even though our economic system demands it. This holiday season, my family has counted our blessings as we have friends and family members out of work, struggling and wondering when the recovery will begin. For the most part, they are victims of a culture of culpability, not their own. At its core are some American industries’ refusals to change from doing things the way they have always been done.
A few suggestions:
Auto makers might consider eliminating the dealer model. Bargaining at a point of sale for a product which has fixed costs that do not change once the car is off the line does not make much sense. The out-of-work sales staff of dealerships is a victim in the change. Also, the obvious reorganization of union contracts is a must.
Social Security needs to be privatized so people can safely invest their retirement in interest-bearing accounts that they control, not the government. The current “Social Security Trust Fund” model is inaccurate. There is no trust and there is no fund. Also, raise the age. Americans live longer today than when the program was started.
Public education is broken, but hope abounds with variations of private fee-for-service schooling models popping up everywhere. The Constitution does not specify that the government should pay for schools. Lets blow up the current model and have a mix of public, private, religious, charter, etc. schools from which parents can choose. They should be publicly subsidized, but not at today’s levels. Each community should choose a mix that is right for them. There is no one-size-fits-all.
Airlines are above water today because of low gas prices. All legacy airlines need to reorganize and adopt a better business model (think Jet Blue or Southwest). Some may actually try to predict future consumer behavior like personal air travel on smaller jets. Also, the obvious reorganization of union contracts is a must.
Printed news is almost dead. In an obvious innovative move, the Detroit Free Press and the Detroit Newsplan to go paperless. Printing a paper and delivering it to consumers’ door is no longer a requisite for news gathering. Especially when the internet and radio and television can deliver the same news. Dogs everywhere may protest the elimination of picking up the paper for their masters. Plastic sleeve makers may go out of business. Thought leaders will still read the news and opinions of the day, but maybe not in print. Advertisers will still buy online and in limited print.
People need to adjust as well. With a new administration coming into office, the euphoria of new entitlement programs is sure to grip hard-working Americans. People must resist asking the government for a further bailout. Times are changing. Two hundred-plus years of capitalism has served America well. We will emerge from the recession a stronger country only if our behavior changes and we believe in overcoming personal challenges. Legacy institutions are part of the problem. We need them, but we need them operating from the realities of today’s economy.
I’ll save what this means for the future of public relations for another conversation. Next week (yes, this time I mean it) I will blog about my New Year’s resolution accomplished.
Our Speak Up campaign has been one of the highlights of 2008. Suggesting balanced tips for businesses to communicate more effectively during the recession has been a speaking point in all of our client meetings, a Web traffic driver and a showcase for Saxum’s creative services (Maxus Creative) that support PR. We’ve certainly helped our clients and made some new friends along the way.
A few of the many comments are below:
Comment Number One: I want to compliment you on your great insight in placing the “Speak Up” ads not only in the Oklahoman but in the Journal record. You are so right! Unfortunately in an economic downturn, marketing and PR are often the first places to be cut. As you and I know, this is the last place we should be cutting. This is the time people and businesses should get their name and mission our there even more and show stability in their organization.
Comment Number Two: Last week Jeff stopped by my office and showed me your “Speak Up” video. Just wanted to reach out and let you know that I thoroughly enjoyed the video campaign – shared it with my wife and father over the weekend. Great message during these times.
Comment Number Three: Enjoying your Speak Up campaign. Great forward thinking. Thanks for publishing.
Comment Number Four: I dig it!! Way to put it out there. Differentiation is key…seeing your people – in good times and in BAD is key…smiling is key. God help us if we have to face challenge and hardship following the leadership of one with fear and trepidation in their very own eyes.
Sometimes you hit a nerve with people. In a year-end meeting today, one client said, “We’re all in this boat together. The Speak Up campaign reminds us that we better be rowing the same direction if we hope to get through this.”
Thanks to the team at Saxum for the creative energy to pull this campaign together.
Happy Holidays! Look for my next blog on my New Year’s resolution fulfilled. Always glad to hear from readers.
Renowned pollster John Zogby brought a double-dose of good news to Oklahoma last week appearing at The State Chamber of Oklahoma’s annual Public Affairs forum. Not only did Zogby’s new poll show that two in three Americans have at least a “fair” view of our state, he went on to say he senses an economic buzz in Oklahoma which is missing in most American states.
If Zogby senses an optimistic outlook in Oklahoma, we should take notice. Everyone has less money today than six months ago, but the real leaders in our economy should speak up about what this recession means for them. With national headlines projecting a grim economic future, it is our advice for you to communicate effectively and separate your business from your competitors.
I am keenly aware of the challenges facing the business community and the uncertainty that 2009 promises. That is why we have launched our Speak Up campaign. The campaign is centered on seven tips that aim to help you communicate more clearly and grow while others are stagnant or shrinking.
The tips: Build customer and client relationships. Educate your employees about what the recession means for your industry. Invest in media relationships. Establish your company’s benefit to the community. Keep advertising. Be transparent and gain trust. Smile.
Effective communication is the difference between holding on and growing. You may wonder why a public relations firm would recommend buying advertising. Saxum believes that a balanced marketing approach includes a diverse mix of communications strategies and tactics that lead to business growth and success.
We have even followed our own advice: In today’s edition of The Oklahoman and Monday through Wednesday’s editions of The Journal Record, you will see our Speak Up advertisement prominently placed. How else could we be credible to our clients if we tell them to do one thing, and then adopt another communications platform for our own business? Advertising costs money and is a proven communication tool. We are using it for our benefit.
Times are changing. Trust has never been at a higher premium. Leaders want to know how the struggling U.S. economy affects them. You build trust by engaging your audiences and showing them you have a plan to thrive today and into the future. If you don’t talk to your customers or clients, someone else will.
Zogby was right. There is a positive buzz surrounding our state. Maybe it is time for you to Speak Up and share your success stories and your plans for growth with your audiences.
Email us at info@saxumpr.com and tell us how you are communicating. We can all learn from each other. Speak up and let us hear from you.
For more information on Saxum’s Speak Up campaign, visit www.saxumpr.com/speakup .
Renzi Stone is president and CEO of Saxum Public Relations in Oklahoma City
It was predictable. The economy went south, the government started to bailout banks and stock prices hit the floor. Letters went out from every non-profit I’m a part of trying to raise some extra dollars in fear of a 2009 shortfall. Next? Holiday parties across corporate America were scrapped. From Washington, D.C. to Arizona to San Francisco the elaborate parties that traditionally celebrate the successes of the year were scaled back or eliminated all together.
My best friend is a district manager for Pfizer in Sacramento. At the beginning of next year, the company will face another workforce reduction while the stock continues to struggle without a strong forecast for a new blockbuster drug. Word came down that there would be no company sponsored holiday party for drug reps who are about to endure their second round of layoffs in the last four years. My friend, who took over a terrible territory about a year ago, is paying for the holiday party himself.
His logic?
He asked for a lot from his team this year and the ones who are still around gave him all they had. This may be a down economy, but my friend thought no holiday party was the wrong message to send.
We agree. Celebrating success is one of the most important things you can do for your employees, clients and friends. Without celebration, the motivation to work is reduced.
Intuitive, right? Hardly.
It is a tight economy and we, too, are concerned about the unknown 2009 forecast. We have two constituencies we want to celebrate at the end of the year. Our clients and our team.
For our clients, we eliminated our traditional gift basket and holiday card in favor of a new, creative approach. We have designed a singing e-mail card from our in-house viral media experts at Maxus Creative. Next, we sent a letter to all of clients with a note that we would make a donation to the non-profit of their choice in their name. It is extra work to make a donation to a non-profit of their choice, but we felt it was important to spread our support around.
For our employees and their dates/spouses, we are having our holiday party at McNellie’s Public House, a restaurant client we helped open earlier this year. The Tuesday party will feature heavy appetizers and beer and we will celebrate our successes. Our budget is very reasonable and less than in previous years. The important thing is we are getting together to celebrate our year, together.
Public relations professionals in corporate America need to speak up in board meetings when decisions are being made about small things like holiday parties. Celebration is important and actually becomes a big deal when eliminated.
Renzi Stone has been named one of PRWeek’s“40 under 40” public relations professionals in the United States.
The national award is given annually to the top PR executives in the country under the age of 40. Stone was selected for his leadership, vision and business success.
Stone has previously been recognized by Oklahoma Magazine (2006), The Journal Record (2004) and Oklahoma City Business News (2003) as a top leader under the age of 40. He was one of PR NEWS’ 15 to Watch (2004).
Saxum has received the Marketing Achievement Award from the Society for Marketing Professional Services (2007), was named the thirteenth fastest-growing company in the Greater Oklahoma City area in 2007 (Metro 50 Award), and was recognized again as one of the fastest growing companies in Oklahoma City in 2008.
In efforts to create a more paperless environment, Saxum is reducing its dependence on printed paper. The Saxum team will use a projector during weekly staff meetings instead of printing individual copies, saving about 1,500 pieces (three reams) of paper per year.
In an effort to continue to provide quality service to our clients, Saxum|PR recently conducted an annual review of our media relations accomplishments.
In 2008, Saxum successfully placed our clients in national, regional and statewide media outlets for a total of over 2,000 articles, interviews, web features and videos. The majority of the media coverage garnered by Saxum came from print publications, with television outlets still a strong resource. Saxum is expanding its outreach to online news sites and is increasing its social networking capabilities for clients in an effort to appeal to the changing technological environment.
Executives from the “Big Three” Detroit automakers (Ford, Chrysler and General Motors) sat in a Washington D.C. House committee room last week to plead for taxpayer bailout money from a lame duck Congress who wants to appease the American public and save some semblance of respect and historic significance before session closes. It is likely too late to move public opinion which reports three in four think the 110th Congress is lousy, a trend throughout the past two years of the Democrat controlled Congress. Depite ill feelings, this bailout had momentum. Treasury Secretary Hank Paulson urged a “yes.” The general consensus was Detroit’s timing was good.
Then, the corporate fleet of airplanes arrived from Michigan.
Yes, the G4, Lear and Citation jets few of us have ever travelled on. Corporate America’s taxi cabs used in the name of saving time for important executives. Mind you, I hope to have one of these planes someday, but not as a public company CEO. Certainly not as a public company CEO asking for taxpayer help. And finally, not as a CEO of a near-bankrupt public company whose workforce refused until it was too late to make concessions from their bloated union contracts which cripple their ability to make money. I haven’t even mentioned the overextended pension plans.
Why should America help? We almost did until a gaffe of sheer ignorance caused Congress and America to re-think the bailout. The offense? Alan Mulally of Ford, Robert Nardelli of Chrysler and Rick Wagoner of General Motors all flew their corporate jets in from Detroit – separately. Then, they told Rep. Gary Ackerman (D-New York) that they wouldn’t sell their fleet if the bailout passed.
Certainly, each of these gentlemen were accompanied by someone from their corporate communications team. Likely, these executives sat, legs extended, laptops opened while crafting speaking points for their boss to deliver to a friendly House panel. Surely, they drafted a joint statement to share with their colleagues once the bailout passed. They may have even ordered champagne for the trip home once their case was pleaded successfully. They probably sat quietly.
Is my response a little populist? Yes. Am I way off base? No.
Consider this. Another PR blunder the autos made was a failure to make this issue more than a “Detroit thing.” The three companies have plants across the country, but they failed to make the point that a loss of jobs would affect more than Michigan’s largest city. With Detroit still stuck in a PR nightmare following the jailing of Mayor Kwame Kilpatrick, the country is not in the mood to bailout “Detroit.”
For the “Big Three,” good communications strategies moving forward will be done with damage control, at best. Perhaps I’m wrong about their corporate communication counsel. Perhaps they spoke up. Too often, we have heard too little from the PR team when important decisions regarding the reputation of a company are made. Too often, the PR team is relegated to distributing the press release or reporting to the marketing department. To often, the PR team is respectful and quiet.
To my colleagues who manage the reputation of the companies they work for and represent: Speak up!
Perhaps most interesting is that Oklahoma was the only state in the nation that supported the McCain/Palin ticket in every county and our 66 percent represented the highest percentage victory for McCain anywhere in America. Statewide, Republicans won everything. All Congressional incumbents were re-elected, including Jim Inhofe who scored a landslide victory over a good Democratic challenger Andrew Rice. The State Senate and House turned Republican together for the first time, ever.
This last fact caused state Sen. Charlie Laster (D) to blast the Obama campaign on election night for “abandoning” Oklahoma Democrats because he was polling poorly here.
Outside of politics, Oklahoma’s economy is definitely slowing at a reduced rate than others, but housing and small businesses we talk to are still outpacing the national numbers. Forbes.com’s recession-proof Oklahoma City has been rocked with volatile markets selling off our energy stocks, but our public and private companies remain fundamentally strong, as illustrated by Devon Energy posting its highest third quarter net ever last week. Banks are loaning money. The Ford Center is still sold out with NBA fans cheering the listless Thunder who will lose many more games than they win (which is OK with most people I know). If we are so different than the rest of the country, then why does it feel so good?
A Question: Why is Oklahoma so Red?
A few theories (ranked one to three):
1. Oklahoma has a huge military presence and our economy continues to be insulated. With major Air Force missions in Enid, Oklahoma City and Altus as well as Army presence in McAlester and Lawton’s Ft. Sill, Oklahoma is one of America’s most concentrated military states. Our National Guard has served in Iraq admirably and most people have a relative or friend in the service. I’m not sure other states have this same presence. Finally, it is the economy that ended McCain’s campaign effectively. Oklahoma’s economy, although pierced, is not penetrated and remains strong. A general support of our military heritage combined with a “recession-proof” economy equals a red state blowout.
2. Oklahoma is still populist. Just over 100 years ago, Oklahoma was brought together by businessmen, speculators, farmers and Native Americans (among others). Today, we continue to have different perspectives that govern our decision making process. We trust “people like us” to make our political decisions, perhaps more than qualifications. Oklahomans believe in people first.
3. Democrats in Oklahoma look very different than Democrats in America. Our conservative Ds look more like New York Rs. Voting Democrat statewide in Oklahoma has been a trend in recent years, but did not hold up in this election.
In addition, I asked my followers on Twitter whether Oklahoma was the reddest state and why. Their answers below:
· I am sure that there are two factors that made OK vote Red. One is the Bible influence, the other is the Tax stance of Obama.
· We’ve always been two years behind the California trends, that is, if it doesn’t go out of style first.
· We are wary of anyone who seems too slick, too aloof or who holds too high opinion of himself/herself.
· Because Oklahoma equals small town America. We don’t believe in all the European ideas. We do love our country, God and probably our Guns.
· Not any redder than 04 by vote totals, although Obama did no favors for the rest of the statewide Dems.
Growing up, my father owned the Continental Basketball Association (C.B.A.) team in Tulsa – The Fastbreakers. His intent in purchasing a franchise and moving it to Tulsa was to bring a leading indicator of quality of life to the community (pro sports) and an entertaining product for fans. In its inaugural season, 1988, the Fastbreakers won the C.B.A. championship.
The National Basketball Association is not the C.B.A. In fact, it’s not even close. My dad’s team ultimately failed in Tulsa after its third year because of poor attendance, rotating players and a tired fairgrounds facility. However, all Tulsans remember the Fastbreaker days. When basketball comes up, they still talk about the Bud Light daredevils, Bubby Breaker and players like Otis Birdsong and Anthony Mason. Tulsa was recovering from an oil bust and the team helped heal the community.
Last week, Clay Bennett’s Thunder roared in to the Ford Center in Oklahoma City packed with Oklahoma celebrities, activities for kids of all ages and an entertainment option for our community that only graces the top U.S. cities. Twenty-five years after oil busted, 13 years after we suffered America’s worst terrorist attack (at the time), and one month in to a world-wide financial crisis, Oklahoma City sold out the Ford Center with 19,000+ fans (13,000 of them season ticket holders ) and cheered for a basketball team in the midst of a rebuilding year.
The historical significance of the Oct. 29 opening game has yet to be seen, but for those of us in attendance we felt a sense of accomplishment. Not individually, but as a group. That’s what makes our community so strong and why Oklahoma’s future is so bright.
Side Notes:
· KWTV-9 did a great job covering the first game. From anchors Kelly Ogle and Amy McRee outside to Dean Blevins inside the newly minted “Thunder Dome,” the coverage was A+ and Griffin Communications should be applauded for their commitment.
· NewsOK and The Oklahoman also did an outstanding job in coverage leading up to the game. As a media pro, I cannot think of any angles that they didn’t cover for opening night.
· It will be interesting to see how Aubrey McClendon controlled KSBI-52 grows with the Thunder package. Fuzzy screens and high school football now has a real sports team to build the station around. It would be fun to see it become a high-quality news and sports outlet locally.
