Archive for the ‘CRISIS’ Category

MEDIA CUTBACKS, PRESS CONFERENCES… AND INTERNS ?

Wednesday, December 24th, 2008

Today we held a press conference for a client, and we were very pleased with the amazing turnout, about 10 reporters or so.   Our client was thrilled as well.  Press conferences are always so much fun: they’re risky because you never know how many reporters will show, but they have the potential to be hugely rewarding.  They’re also a lot of fun to set up.

During the press conference, one very young looking “reporter” from a major news outlet was present.  Although he had credentials around his neck, he clearly wasn’t of drinking age.  I was concerned he might be a fraud.  He asked questions during the press conference, and afterwards, my clients’ first question was, “Who is that?”  I had the same question, and sure enough, the “reporter” was, in fact, an intern, who was reporting on the story.  Budget cuts?

A reporter’s accuracy is very important, so I was surprised that a leading news outlet would send an intern to cover a major story.  Especially for a major publication.  Food for thought.

Ronn Torossian

5WPR

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PR: MARKETING PR, MEDIA RELATIONS AS PUBLIC RELATIONS – OR A MIX?

Monday, December 22nd, 2008

This week, I had separate lunches with two colleague CEOs of Public Relations firms.  Both firms are larger than us, and I respect both CEOs.  I can’t say I often dine or spend time with industry colleagues. Generally, my time is spent with clients, employees, journalists or hunting for business.  Given the pure chaos which exists in the market, it’s necessary to hear (and share) with industry colleagues.

An interesting topic that came up was the definition of Public Relations in 2009.  Not the textbook definition, but the actual definition vis a vis what clients will pay for and what agencies can ask to be paid for.  (As I often say, it’s easy to say, much harder to do.  Running an agency isn’t an experiment or concept – it’s reality).  Particularly in times like these, agencies need to be clear on what they do.  Clients rightfully demand responsibility for every penny spent, and PR firms need to know what they are tasked to deliver (and what can they deliver).

A key question for agencies remains: Do we define Public Relations as PR/marketing, or is PR centered around media and media relations?  Or a combination of the 2 ? I ask this question not as an academic, but more as a practicality of running a business.  It’s very challenging to charge a media relations client $50K a month, whereas agencies who look at PR primarily through marketing eyes can often charge that and more.  Conversely, it’s often a challenge to find senior talent who will call the media (as we at 5W PR expect). The skills to succeed at creating PR marketing programs are often antithetical to the skills required to thrive in media.

It is very, very much unknown just how small the PR agency world is.  There are fewer than 200 independently owned PR firms in the US, and that number is sure to shrink in 2009 with the recession.  Of course, the above list doesn’t count the many 1 or 2 person “PR” businesses, which I really wouldn’t characterize as agencies.  And there are also the 20 or so mega agencies owned by publicly traded holding companies.

As the CEO of the 21st largest independent firm in the US, I am often amazed at the small size of PR retainers.  As I often state, a $1M (or even $500K) PR client is one that any PR firm in the US would chase endlessly, whereas a $1M advertising client is one that very few top 100 ad agencies would pay a minute of attention to.  It’s a disparity that I very much hope will change in the future.  But for now, PR simply remains the overlooked bastard step child. 

While reading about the recent scandal surrounding Brunswick, a highly-specialized financial public relations firm, I wondered why PR firm employees don’t earn what bankers earn, despite the fact that PR professionals shape messaging, create public perception, and move stock markets en masse.  It’s because the fees corporations pay PR people simply aren’t in the millions.  (Although a firm like Brunswick does charge a stiff hourly rate, compensation doesn’t come anywhere near to what a top lawyer or banker makes).

Despite The New York Times’ statement that financial PR agencies “are often as deeply embedded in deals as the bankers and lawyers who negotiate them,” PR firms simply aren’t huge businesses like banks or law firms.  For anyone who wants to work at a PR firm, there simply aren’t more than a handful of options.

Ronn Torossian

5WPR

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BRAND INTEGRITY AND PUBLIC RELATIONS

Friday, November 7th, 2008

I just left a meeting with the CMO of a major consumer brand who spoke of networks calling him offering free advertising (zero fee or commitment at all). Essentially the dialogue was, “Try us and if you like it then we will chat.” Confidence or desperation?  My guess is in this environment, it’s more likely to be desperation.  How will this offer affect advertising on this station in the future ?

Which leads to the question: how important is brand integrity when it comes to marketing or PR?  While certain luxury flagship stores will never “officially” discount (Louis Vuitton, Hermes, etc.), choosing to burn their goods rather than discount them, other brands discount heavily and readily. Neiman Marcus stepped up discounts and promotions after dismal same-store sales.

During times such as these, brands have many questions and concerns vis a vis brand integrity.  Do we lower prices and cover costs, or do we go deep into our pockets in hopes of a better tomorrow?  It’s an interesting dialogue, and one I’m sure we’ll hear more of.

Ronn Torossian

5W PR

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RESPONSIBILITY AND BEING TOUGH

Wednesday, November 5th, 2008

Being a boss and owner of a company is a huge responsibility, one which requires being tough and making difficult decisions regularly.  To this day, employing 75+ people is major pressure.

Today I received a call from a major crisis client, one who pays us a major fee solely to keep his company out of the media.  He urged me (to put it mildly) to tell a reporter in no uncertain terms to screw off.  This reporter was poking around endlessly, telling people half truths and straight-out lies about our client in an attempt to get sources quoted for a story.  A previous story by this same reporter had no named sources and many allegations.  I understood why this client was very upset.  So, of course, I harshly approached this reporter, instantly turning into “the bad guy.”  He was poking around in a kind way, and once we got tough, we were the “bad guys.”

Whether it’s (soon to be) President Obama banning reporters who didn’t endorse him from his plane, or the Fox News PR machine being harsh on critics, often times tough PR people are portrayed as not knowing how to deal with the media.  But in fact, these “tough guys” are perhaps the most effective PR people when it comes to difficult issues.

Same goes with owning a business and running a company: being tough isn’t easy.  But it doesn’t mean that there isn’t a modicum of fairness.  Being fair is vital to being tough, both as a business owner, and particularly when it comes to issues and crisis PR.

I complain sometimes to my closest outside business advisor about how difficult it is to run a business.  He reminds me, “If it was easy, everyone would do it, and everyone would be successful.”

Ronn Torossian

5W PR

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THE ECONOMY, JOE THE PLUMBER & A PR FIRM

Thursday, October 30th, 2008

Read today that Joe the Plumber had hired a public relations agency to assist him in getting a record deal? Anyone out there join me in wondering how his 15 seconds of fame translates to people wanting to buy records?

Separately, there’s no doubt the economy is very tough, and while President Bush, both of the Presidential candidates and the brightest financial minds in the world are focused on trying to solve the world’s financial crisis, I believe entrepreneurs and small business owners shouldn’t get sidetracked by that. 

What I have promised to myself, and my employees is: I will work harder than ever before and be more focused to client needs than ever before.  The pledge I believe business owners can make is to simply be hurt a little less than their competitors. 

It’s refusing to lose.

Ronn Torossian

5WPR

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SPIN, PUBLIC RELATIONS & BANKING

Wednesday, October 1st, 2008

Read an interesting article in The New York Times regarding the positioning of major banks’ public statements during this tremendously difficult time. Anyone who doubts that spin exists at all levels should clearly read this. The conclusion of the article from a PR viewpoint is also noteworthy:

“If there are ways people in this room go to jail, it’s probably through crimes of upholstery — the cover-up will kill you,” Joseph A. Grundfest, a professor of law at Stanford University who is a former commissioner of the Securities and Exchange Commission, said at a class for directors of the nation’s Fortune 500 companies which I attended in 2002 in the aftermath of Enron’s collapse.

Oftentimes, I see very public people in very senior financial positions at my gym, restaurants, and at events. You can see on their faces how incredibly difficult it is to be in the public arena and suddenly have the world watching your every move. I expect to see more analysis of how the banks are handling crisis communication in the coming weeks. Either way, this is certainly an interesting read in these very difficult financial times.

Ronn Torossian

5W PR

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MEDIA, ECONOMY AND PR AGENCIES

Tuesday, September 16th, 2008

Whenever there’s an action, there’s a reaction, and the media reacted to Black Sunday from every angle.  PRWeek summed up some of the different coverage.

Whenever a significant (or even not-so-significant) event happens, there are countless ways the media can approach the issue, and hence, many angles good PR firms can capitalize on for their clients.  We often talk about pro-active media campaigns versus reactive media campaigns.  There’s of course incredible value in pre-planned outreach, but rapid response to hot issues in the media is also essential.  Yesterday was one of those quickfire, reactive days.

The streets of NYC are oddly quiet today, and they really shouldn’t be.  The week after Labor Day is supposed to be back-to-work, nose-to-the-grind time.  The gym this morning, my favorite midtown restaurant, Starbucks, the midtown streets – all are eerily quiet.  I’m not the only who’s noticed.  Two clients also mentioned the silence that’s befallen the city, which makes me think it must be true.

My two cents?  Work hard.  Hard work can’t be replaced.  Keep focused and keep pushing.

Ronn Torossian

5WPR

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MEDIA, PR & PAPARAZZI:

Friday, September 12th, 2008

Yesterday’s arrest of Kanye West at LAX was surprising to me primarily because it doesn’t happen more often.  West was arrested for suspicion of vandalism after confronting paparazzi media and allegedly smashing their  cameras.  The struggle between celebrities and the paparazzi is an issue that high profile people must deal with on a day-to-day basis, and it is extremely trying on both physical and emotional levels. It is incredible that today, even after the death of Princess Di, celebrities still have very little protective barriers between them and an intrusive swarm of prying media. Yes, people in the public-eye lose their right to complete privacy when they perform, appear in movies, or get rich by possessing rare athletic ability, but does that mean that there should be no boundaries whatsoever?  Should their children be endlessly subjected to flashing lights? Should they not be allowed to lead somewhat normal lives?

5W has worked with countless celebrities.  I vividly remember walking out of court with Lil’ Kim after she was sentenced in her perjury trial a few years ago. We were managing her crisis communications, and as we walked out the front door, we (Lil’ Kim, one security escort, two attorneys, two of her family friends and I) encountered at least 100 members of the media all jockeying for a shot or a comment.  It was a wall of reporters and photographers, flashbulbs blinking in her face. To say it was a mob scene is an understatement.  After the paparazzi got their pictures, they still wouldn’t move.  There was no choice but to push forward for the two blocks we were required to walk.  It was a very dangerous situation, and in LA, this happens every single day.

Managing the media for corporate clients is far different than managing celebrity-driven paparazzi media.  Every type of public relations, whether crisis-based or paparazzi, consumer or technology, requires different skills and a completely different set of “rules.” I don’t believe for a second that today’s incident between Kanye West and a swarm of paparazzi is an isolated occurrence, nor will it be the last time we read about a celebrity fighting for his privacy with paparazzi.

Ronn Torossian

5WPR

Reporters surrounded Lil' Kim on Thursday outside federal court in Manhattan after her conviction. The rap star was found guilty after two and a half days of deliberations by the jury in the case.

Reporters surrounded Lil Kim

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THE 5TH ESTATE: A VICIOUS MEDIA

Friday, August 1st, 2008

As the owner of a public relations agency, and someone who has worked with governments, lobbyists and journalists, I analyzed The Sunday Times of London expose on lobbyist Stephen Payne (Stephen Payne: a hotshot lobbyist who can get you into White House, July 13, 2008[i]).

Beginning with the basics; bribery is unacceptable, and for a democracy or civilized government it is wholly abhorrent. If that is what happened, it is illegal and reprehensible. That said, I am sure that it will be fully investigated, and I am also very confident that the investigation will lead to little or nothing.

Yet, lobbyists and PR firms are hired to represent and to advocate on their clients’ behalf. It doesn’t suggest that they agree with the causes; its business, not academics. Public relations specialists and lobbyists use their skill and resources to change minds, address laws and affect lives. The job of a lobbyist or PR pro, once they agree to accept a client, is to use every means within law and reason to arrange access, introduce and sell a client’s viewpoint or objective. That’s a fact; the concept that Paine was going to be paid to attempt to offer access and persuade policy is his business, and it is the sole purpose of the business of lobbying.

The author included, albeit buried towards the very end of the article, “that the payment to the Bush library was not a ‘quid pro quo’ and that his company had performed many ‘good things’ for the world that were ‘ethical and always above board… He said that making a payment to the library would have had no impact without the client’s cause having merit…”

So, what he said was, and as the video included represents: If you make a donation, serious people are more likely to listen to you over the crowd of others waiting.

How many political requests does any government receive? Cold calls? Urgent matters? The way of the world, like it or not, is about access and money. In this real world, those who pay are often taken more seriously. There is, of course, outrage that money vastly improves ones ability to gain access. Our system of democracy encourages this. Elections bring the need for campaigns; campaigns bring the need for campaign donations; donations grab the attention of the individual running for office.

Whether is should be that way is a great philosophical question that is often debated and even fought over. Still, no one has yet to develop a better system of government than what we know as our popular election system.

Access and name dropping are key parts of business for lobbyists, PR firms and those in political life. It is often how one gets in the door for new business; most of which may never need the access, save the fact that the client knows you have it. We see this on all levels of business in almost every business. Friends introduce one another for leads; others use a golf course, country club or fraternity to impress and flaunt. Isn’t that offering access? It is, and government access is no different. Payne had access, he dropped names; no scandal!

Also, many in PR are often too quiet about actions by an overzealous media attempting to make headlines and sell ink. Media oftentimes can endanger a client’s business interests to the point of no return. Some reporters, believing they are doing a public service, or thinking a “hard hitting” exposé will get them broadly noticed have zero boundaries at all; pure ruthlessness, often believing they can dictate morality and attack someone, while few call into question the tactics of the reporter.

The media is supposed to be impartial players in the news reporting process. Reporters should give the public objective facts and not impose his or her opinion. Unless the role of the media, is as Howard Kurtz so aptly states regarding a similar incident involving Ken Silverstein to “lie, deceive and fabricate to get the story?”[ii]

Certain elements of the media seem to have no restrictions when it comes to destroying people, businesses and those they deem not to agree with. To me, it comes as little surprise that Payne is someone supposedly close to the Republicans in an election year. Most of American media today leans left and anything on the right is fodder for ideologues with a bully pulpit… that pulpit being a keyboard and the Internet.

Clients pay for positive outcomes, but also for protection from potential negatives. One cannot approach media feebly or even be lulled into thinking they are friends looking to serve the cause of justice. Journalists often claim a mantle of self-righteousness, self appointed and self governed; it neither makes them right nor gives them the right. The public can decide right from wrong based on objectivity.

I recall my recent experience when a Journalist at top tier investigative TV news program called me. The reporter relentlessly pursued an interview with my client, and we were not accepting any. I was running out of ways of saying “no” kindly. He called my client’s office when he could not get me to move. He insisted on speaking with my client, yet I told him again politely “He’s not interested.” Making a long story short; he cursed, threatened, and bad-mouthed me, then he called for weeks on end. He could not get his way “” and was shocked.

Lobbyists, lobbying firms, PR agencies and the like exist to help influence public opinion. As long as the world has existed there have been people serving in those roles. Even God had Moses use his access to his “brother” Pharaoh to lobby the cause of the Hebrews. While of course Presidential libraries must not be built on bribes; being paid to perform a service and providing access are not bribes.

Ronn Torossian

5WPR

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THE ECONOMY

Thursday, July 3rd, 2008

I had a very interesting discussion about the economy today with a tremendously successful client, self-made, he’s worth hundreds of millions of dollars.

He spoke of his fear and gut instinct that this economy could be the worst the U.S. has experienced since the Great Depression.

Born during the Silent Generation, he spoke of growing up in Brooklyn, where women never ever worked.  The cure-all for the inflation problem in the ‘70s was that women went to work to supplement family income.

He said that, today, with 80-90 percent of women working, we no longer have a solution as simple as the one 30 years ago.  So now, how can the economy get better; by sending our children to work?  Surely not!

Hence, the crisis facing today’s families as the economy struggles.

It is continually interesting to me how one’s generational experiences and background affect their world view.

Ronn Torossian

5WPR

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