Ending Fairytales: Judge Denise Langford Morris

According to the Associated Press, Judge Denise Langford Morris has temporarily ended the reverse Cinderella story that took misguided advertising star and self-proclaimed change agent Julie Roehm to the brink of mayhem marketing celebrity. Right, the pumpkin coach she was riding in could not find the right home at midnight and the court unceremoniously dismissed it because Roehm's case against Wal-Mart should have been filed in Arkansas and not Michigan.

In sum, for all that nine months of vicious spin, counterspin, and missteps, the original case seems to have accomplished nothing more than personal brand damage: forever branding Roehm as the former Wal-Mart marketing executive who allowed her judgment to lapse as she leveraged her position for fun and profit. Worse, along the way, she has played virtually every part to create one of the most inconsistent personal images ever, from a heartbroken head of household to a relentless and scrappy street fighter.

As if all this wasn't enough, according to Advertising Age, a spokesman for Roehm said she and her lawyers hadn't yet decided whether to file in Arkansas. No offense intended, but when your best hope is to slowly reverse an impaired image on Facebook, it's probably long past time to focus on the book deal rather than the glass slipper.

Sure, I know more than one person has extended their sympathies to Roehm, but all along I've been miffed by this misadventure. Why? One of my colleagues summed it up nicely. "We were part of a Wal-Mart pitch once and they told us up front, before anything else, 'Wal-Mart is only interested is delivering the lowest possible price to its customers. If you send us a gift, we will send it back and kindly ask that you deduct the amount from our bill.'" It doesn't get much clearer than that.

Ordering Up Ethics: Flogs, Blogs, And Posers

After reading that 279 U.S. chief marketing officers, directors of marketing and marketing managers polled in the PRWeek/Manning Selvage & Lee (MS&L) Marketing Management Survey revealed some confusion over ethics, I posted a poll to see if a self-selected group of participants could determine which of eight case scenarios might demonstrate the greatest ethical breach, noting that some were not ethical breaches (but have had some people attach ethical arguments to them).

While the poll was well read, only 22 people participated as of 9 a.m. this morning (before PollDaddy had some challenges). There are several other accounts for low participation, including: ethics cannot really be measured in terms of “greatest;” not everyone was familiar with the various cases; and people are generally confused and/or don’t care about ethics anyway. All valid points.

Fortunately for me, a few people opted in because I promised to make no claims that this is a scientific survey, but rather a discussion opener for today (and an opportunity to try PollDaddy). So here’s our take on eight...

(Poll 23%) John Mackey, CEO of Whole Foods Market, Inc., anonymously posted disparaging remarks about Wild Oats, a company that Whole Foods is now hoping to acquire. We considered placing this in a secondary position, until Vera Bass offered the following on BlogCatalog: “… I believe that breach of the more specifically defined duties (especially fiduciary duty) and obligations that are developed and maintained by those who carry more responsibility for others than most people do, is, by this definition, a greater breach.” Clearly, this is an ethical breach; and we’ll be adding something to our case study next week.

(Poll 18%) Julie Roehm accepting gifts from advertising agencies while they were seeking the coveted Wal-Mart account. While there are allegedly other ethical breaches related to this case study, we limited the poll to a single breach because it’s enough. While some argue wooing guests is an industry norm, the truth is Roehm knowingly violated her company’s policy and has been spinning ever since. While the initial action was bad enough, her defense of it continues to damage an increasing number of people.

(Poll 36%) Edelman Public Relations Worldwide published a fake blog (flog) last year for Wal-Mart (there were three actually). What makes this scenario stand out is that it was premeditated by people who knew better. The real irony is that Wal-Mart could have avoided the breach with disclosure. Perhaps more ironic, no matter how you feel about Wal-Mart, it has enough good news not to need fake news. We placed it third, but only because no one seems to have been hurt.

None of the other five are ethical breaches. At least, not to date.

(Poll 14%) While the Cartoon Network bomb scare illustrates a worst case scenario for a guerilla marketing campaign to go wrong and clearly impacted Boston (closing roads, tunnels, and bridges for hours), it is not an ethical breach. While ill-advised and perhaps not well thought out, it really wasn’t about ethics. In truth, Turner Broadcasting Systems acted very quickly and accepted all responsibility. The guerilla marketing firm that oversaw the campaign, on the other hand, was much slower to respond.

The (Poll 0%) Microsoft’s laptop giveaway, (Poll 5%) Nikon camera outreach program, and the (Poll 5%) McDonald’s mommy bloggers have all been questioned and talked about by bloggers. While all of them have the potential for an ethical breach, none of them did (that we are aware). As long as bloggers disclose the gift, loan, etc. and do not allow these items to bias their opinions and/or encourage/obligate them to make false claims, then no ethical breach can occur.

The last scenario, where Jobster sent Jason Davis a cease a desist letter, claiming Davis had violated a non-compete clause for launching a social network called Recruitingblog.com, was not an ethical question. While the method was not prudent, there was no ethical breach. The two have since reached an amicable agreement.

So why do we care about ethics? To take from the preface of the International Association of Business Communicators’ code of ethics, because: “hundreds of thousands of business communicators worldwide engage in activities that affect the lives of millions of people, and because this power carries with it significant social responsibilities.”

However, as mentioned, this responsibility is two-fold. I believe that we must be cautious in applying ethics so broadly as it continuously raises doubt in or damages the reputation of people, regardless of rank or position, who have not breached ethics. As is often the case, asking the wrong questions — “Is it ethical to ask for comments on a client’s blog?” — can create more confusion than clarity.

As the best measure of our ethics, we must not only be honest with others but also, and most importantly, with ourselves. If you are ever in doubt, the simplest ethical self-test is to ask yourself one of two questions ...

“Would I be proud to tell my grandmother?” or (depending on who your grandmother was) “Would I be proud to see a story about what I am doing on the front page of the New York Times or Wall Street Journal?” If you can answer “yes” to either, you’re likely in good shape. Case in point, I think Mackey would have answered "no."

Revealing Ethical Realities: PRWeek/MS&L

Some public relations professionals and communicators scratched their heads because I didn't call for the resignation of John Mackey, CEO of Whole Foods Market, Inc. despite the obvious: what he did was wrong. Perhaps part of the answer can be found in the PRWeek/Manning Selvage & Lee (MS&L) Marketing Management Survey.

The survey polled 279 U.S. chief marketing officers, directors of marketing and marketing managers that are focused on consumer-generated media, integrated marketing, and industry ethics. Although some of the questions were somewhat phrased oddly (they are paraphrased here), some of the results might surprise you.

• Wal-Mart’s non-disclosure of its authorship of a blog was a breach in marketing ethics. 55 percent agreed.
• Julie Roehm’s acceptance of gifts and dinners from future advertising agencies was unethical. 46 percent agreed.
• Turner Broadcasting placing magnetic lights in Boston that resembled bombs was a breach. 41 percent agreed.
• Microsoft acted unethically in providing Windows Vista on laptops to technology bloggers. 32 percent agreed.

Clearly, there seems to be some confusion over ethics. Originally, I was going to write something about this, but then decided it might be fun to run a poll to see what some readers think first. Which of the following do you think constitutes the greatest breach of ethics? You can vote for only one (and some might not be ethical breaches); we'll share our take on it next week (after the poll closes).



Incidentally, the MS&L survey also revealed that 17 percent of senior marketers say their organizations have bought advertising in return for a news story; 7 percent said their organizations have an implicit/non-verbal agreement with a reporter or editor to see favorable coverage; and 5 percent of marketers said their companies had paid or provided a gift of value to an editor or producer in exchange for a news story about their company or its products.

So much for the notion that all journalists are somehow pre-equipped to make the right ethical decisions. As I have said before, ethics begins with the person and not the profession. Bloggers have an equal opportunity to be ethical and to suggest they cannot, as some people do, only indicates their own propensity to have an ethical lapse.

Covering Hot Topics: Second Quarter 2007

Every quarter, we publish a recap of our five most popular communication-related posts, based on the frequency and the immediacy of hits after they were posted. While we base this on individual posts, some are related to larger case studies.

Jericho Fans Make Television History

When CBS executives cancelled Jericho over Nielsen ratings, fans of this post- nuclear terrorist attack/small town survival drama went nuts, literally. Using the Internet and social media as their point of organization, they launched the largest cancellation protest in history: sending 40,000 pounds of nuts (from just one store); rallied almost 120,000 petition signers; cancelled CBS related-cable subscriptions; boycotted network premieres; sold network stock; sent in countless letters, postcards, and e-mails; captured media attention in every major newspaper and tabloid; and flooded the network with phone calls. Within a few weeks, CBS reversed its decision in record time, heading off what was quickly becoming an exercise in crisis communication. Of all the posts, pointing out the error in CBS’ marketing of Jericho took top honors with over 10,000 hits.

Link: Jericho

Wal-Mart Strikes Back Against Julie Roehm

If networks are looking for a new made-for-television docudrama, the ongoing Julie Roehm story continues to turn heads (and maybe stomachs). Filled with twists, turns, sex, back room deals, character defamation, lawsuits, countersuits, media bias, allegories, and more spin than the planet Jupiter (which rotates once every 10 hours), this story demonstrates the pitfalls of second-tier executives becoming public figures and the companies that keep them. In the end, if she has any credibility left, Roehm’s personal brand will always be linked to the short-lived, um, alleged Wal-Mart funded affair with a subordinate, her master-class ability to spin herself into another lawsuit and, according to the Chicago Sun-Times, being more indestructible than a cockroach.

Links: Julie Roehm, Wal-Mart

Digital Media Will Change Everything

While some might say it was the very loose Jericho link, we like to think it is related to the increasing interest in the future of digital media, specifically how old media is becoming new media. When we gave some attention to how News Corporation and NBC Universal are speeding ahead with the addition of FUEL TV, Oxygen, SPEED, Sundance Channel, and TV Guide as content partners committed to bringing programming to Web video consumers, people wanted to know what it might mean. To us, it means that one day very soon, broadcast news and entertainment will be forever fused with the Internet, people will access it all via versatile technologies like the iPhone, independents will have the potential to break into the big leagues overnight, and businesses will fully develop what we sometimes call income marketing.

Links: Digital Media, NBC Universal, FOX

Paris Hilton Splits Public Interest

We don’t know about you, but Mika Brzezinski of MNSBC perfectly captured the public’s sentiment over Paris Hilton. In a YouTube clip, Brzezinski refuses to lead the news with Hilton, but then goes on and on about how she refuses to cover it, making her refusal to cover Hilton carry on probably three times longer than if she would have just read the script. Love her, hate her, love to hate her, or hate to love her, we’re not buying that you’re not interested because if we post about her, we always see spikes even though we generally only cover communication side items like blaming publicists, marketing humor, and overly long media statements from jail. Hmmm… maybe that’s why Hilton took second against Roehm in terms of most read public figure.

Link: Paris Hilton

The Office Parodies A Public Relations Nightmare

Although some follow-up stories to JetBlue and Jobster came close, NBC Universal's 2006 Emmy Award-winning show, The Office, proved fictional crisis communication is sometimes more fun than real life. For our part, we wrote up how The Office episode "Product Recall” mirrors how executives sometimes allow a crisis to run away from them by applying “tried and true” communication strategies. In the show, Michael Scott (Steve Carell), regional manager of Dunder-Mifflin, applies the practice of “always running to the crisis and never away from it” after a disgruntled employee at the paper mill put an obscene watermark on one of their most popular paper products. The operative word in this case is “always.” Crisis communication rules are only guidelines, silly.

Link: The Office

It’s very promising to see non-bad news posts starting to give bad news posts a run for their money. We're still hoping good news and educational posts might one day dominate the top five (admittedly doubtful). For example, when it comes to social media, we’d love to see more attention given to our underpinning concept that strategic communication is best suited to drive social media despite the fact that most companies seems to be trying to do it the other way around.

Anyway, while those were the top five posts (and related case studies) for the second quarter, several others came close (and almost all of them beat out last quarter). Runners up (no order): Fans of the The Black Donnellys lobby for HBO to save the canceled NBC show; PR bloggers made a non-issue into an issue over Nikon; JetBlue proved you really can overapologize in a crisis; Jason Goldberg of Jobster goes a whole week or so before behaving badly again; and our sum-up of Harris Interactive mobile advertising research despite my initial skepticism, mostly fueled by a not-so-great Webinar release.

So there you have it, except for one very, very important ingredient: thank you all for dropping by, adding comments, promoting several stories, and continuing to bring communication issues to our attention so we may offer up our sometimes serious, sometimes silly take on them. Whether you agree or disagree, all of it lends well to the discussion and I appreciate those who remember to target the topic and not each other in providing input.

Whacking Wal-Mart: BusinessWeek

If there ever was a case study that I would like to see concluded, it is the continued controversy and media spectacle between Julie Roehm and Wal-Mart. In the end, of the two parties still playing (the rest had the sense to exit gracefully), no one is going to win.

Some members of the media are working hard to make sure of it, looking under every stone for evidence to prove that Wal-Mart is not only unethical but also the embodiment of corporate evil (if you believe some of their accounts). Sure, part of it is Wal-Mart's fault, because if a public relations problem has truly grown out of the case, it is Wal-Mart's apparent inability to keep the story simple: its former marketing executive allegedly based her multi-million dollar advertising campaign decision on who could wine, dine, and woo her the most while using company money to fund an affair.

But that's not the story people are writing. Instead, the latest story to surface in the media's "Whack-O-Wal-Mart" game is BusinessWeek with a write-up penned by Pallavi Gogoi. The lead that Gogoi unearthed from nowhere is the story of Chalace Epley Lowry, who started working at Wal-Mart as an administrative assistant in the communications department in January.

Lowry says she was subjected to a day-long orientation with a heavy emphasis on ethics and was told "if we see something that has the appearance of something unethical we should report it." The person she reported was Mona Williams, vice-president for corporate communications, for what seemed to be related to "insider trading" in Lowry's eyes.

"In all honesty, Mona's transactions could all have been above board," Lowry says, "but I acted in good faith, just pointing out that there might have been some wrongdoing."

According to Wal-Mart, Lowry was confused. The company says she mistook a deferred compensation form for an options exercise request and that Williams did nothing wrong. Williams also learned of the complaint, prompting some inner office tension that resulted in Lowry leaving to find new employment.

There is a lot wrong with this story, but perhaps not in the way some people might think. Although employers might provide ethics training, I suggest employees pursue a better understanding of ethics on their own. Even if your employer tells you to report "the appearance of something unethical" that is not an appropriate solution. Of course, you'll never get this out of the BusinessWeek article.

In this case, Lowry would have been better off asking Williams what the documents were before reporting it. Had the papers been related to stocks and tied to insider trading (as Lowry believed and Wal-Mart refuted after an investigation), she could have given Williams the chance to correct the ethical breach, with an understanding that Lowry would report it if no course correction was made. It's about that simple.

Now I don't believe that Lowry intentionally meant to break her supervisor's trust and breach ethics, but she did. And while that is not the story I read in BusinessWeek, that is what the real story is: give your co-workers an opportunity to correct an ethical breach before going over their heads to report it. If more people did that, maybe there wouldn't be a Roehm/Wal-Mart scuff-up to write about.

Right. Sean Womack could have said, "Gee Julie, those e-mails are a little racy for my taste. Please don't send them." Ho hum. At least he had the good sense to get out of a fight that no one is going to win.

Firing Punchlines: Wal-Mart

If Julie Roehm thinks she has a wrongful termination suit after, er, allegedly breaching ethics policies, then David Noordewier, a former Wal-Mart cashier in Michigan, might get in line. He was fired for joking on his MySpace page that "the average IQ would increase if a bomb were dropped on the company's stores."

According to The Flint Journal, his bosses at the Shelby Township Wal-Mart store in Michigan weren't laughing. Noordewier said he was called into the office as soon as he arrived at work. Officials had him sign an acknowledgment that he was fired for "gross misconduct - integrity issue," which the company described as "theft, violent act, dishonesty or misappropriation of company assets," none of which Noordewier believes fits his situation.

The story says Wal-Mart spokesperson Kory Lundberg would not discuss the incident except to confirm he no longer works for Wal-Mart. Noordewier had a near-perfect attendance and exemplary customer service record, which included customer compliments. Unemployment officials now say Noordewier did not qualify for benefits because he had made a threat.

It seems to me that corporate might consider stepping in on this erroneous local decision. Firing employees for a single MySpace joke (though it might be ill-advised to use the word "bomb" and "employer" in the same sentence nowadays) is a blatant overreaction. The Shelby Township Wal-Mart store manager would have been better off talking to Noordewier rather than taking action.

Besides, this comes at the worst possible time while Wal-Mart is still attempting to perform damage control on its apparent appetite for snooping on, well, everybody. Its heavy-handed surveillance tactics were brought to light during the ongoing battle with Roehm.

Lately, it seems the only good public relations news for Wal-Mart is that Minnesota businessman Irwin Jacobs is suing Roehm. Jacobs, who owns a company that supplies Wal-Mart, says former Wal-Mart executive Roehm defamed him when she published statements about the relationship between his company and her former employer.

The new lawsuit comes after Roehm's ill-advised attempt to exonerate herself of ethical breaches by accusing other executives at the #1 retailer of ignoring company ethics policy too. Now that's a punchline.

Spinning 2.x: Julie Roehm

If the art of spin is part of Julie Roehm's marketing 2.x concept, she's certainly trying to employ it in court. Roehm's defense tactic against Wal-Mart is to exonerate herself by accusing executives at the #1 retailer of ignoring company ethics policy.

She says they accepted trips and gifts from clients and benefited from preferential prices on jewelry and yachts, implying that maybe that makes it okay that she broke the company's ethics policy by accepting gifts from agencies pitching the Wal-Mart account last November and having what seems to have been a heated affair with a subordinate.

According to The New York Times, the filing says "While Wal-Mart asserts that it has policies which prohibit conflicts of interest and the misuse of Wal-Mart assets and opportunities, those policies do not seem to prevent its executives from using both to personal advantage.”

The story is also generating buzz at The Wall Street Journal and CNN Money. Each publisher has a slightly different take on the story, ranging from outlining Roehm's claims in some detail to brushing them off as a weak defense.

It's difficult to tell what the court might think, given this tactic seems to play more to the media than her case. On the quick, it reminds me of a defense similar to one my then 7-year-old son cooked up about a year ago. "Why were you throwing rocks at that house?" I asked. So-and-so "threw rocks at the house first" was his defense. Ho hum.

Since her termination last December, Roehm has fared the worst of the three most cited in this case study. Other than landing a gig at Sports Illustrated, most businesses have given her a lukewarm reception since she filed the wrongful termination case against Wal-Mart. Meanwhile, DraftFCB won K-mart and Wal-Mart stocks are up on the market.

Counting Casualties: DraftFCB

Of all the casualties related to the Julie Roehm vs. Wal-Mart legal battle, the quietest past participant seems to be nursing the largest wounds. According to Noreen O'Leary's Apr. 2 story in ADWEEK, DraftFCB is still in the shadow of scandal.

Although there is no public evidence that the agency's recent account woes are linked to Wal-Mart, O'Leary writes that some claim reviews of the $1.5 million John Deere and $3.5 Applebee's account may both be linked to the scandal. (DraftFCB will not participate in these reviews). Along with these accounts, Qwest Communications, a $95 million client that generates about $15 million in revenue, confirmed it is launching a creative review. The story also implies that S.C. Johnson and Verizon Communications are less secure.

"Whenever there's negative press, there's going to be short-term damage. But I don't think there's any fundamental damage to Howard or his agency," said Michael Roth, chairman of Interpublic Group. "In this business, you're only as good as your last account win. This model of the future, of putting these two companies together and winning Wal-Mart, proves the validity of it. I'm still very bullish about this (the DraftFCB merger)."

Others disagree. One former FCB employee described the mood at the company's New York flagship as "grim," according to O'Leary. "Everyone knew from the beginning that Draft would take the lead, but still, it's as if 100 years of FCB heritage is being shredded by Howard Draft."

I think Roth might be right. If DraftFCB can land a major account that gives it the opportunity to demonstrate creative result-driven work (which has not been easy for the Draft side, some say), it may be able to reverse its course. However, this is a very tall order and will require a sympathetic high-profile major account.

Part of the challenge will no doubt be reflective of the ADWEEK poll that revealed 29 percent of the 2,400 respondents said Draft fared the worst in recent industry scandals, second only to Roehm, with 46 percent. Although recent publicity that revealed Wal-Mart's past electronic surveillance and other espionage missions against employees was extreme, only 10 percent said Wal-Mart fared worst.

Here's my unsolicited take for the three most visible parties might consider for turnarounds and wins in the months ahead:

DraftFCB — Since you already made amends by supplying e-mails to Wal-Mart, take a page from the JetBlue crisis communication plan (sans apologizing forever) and create an agency ethics guide. Take a breath and consider some Ragan Communications findings that suggest: more than 60 percent of mergers and acquisitions fail to deliver the benefits that are promised—often because of the poor quality of communication. You need a message beyond picking up 90 smaller accounts worldwide. The message you have, Draft ROI with FCB creative, doesn't seem to be working. Spark up some integrated social media pitches and that will frighten other agencies, after they stop laughing.

Julie Roehm — Stop calling yourself a "change agent," drop the suit, get out of the press, take an extended vacation, come back refreshed (perhaps a bit remorseful), and start your own "marketing 2.x" firm, whatever that is. Your first few clients will likely be smaller accounts, perhaps in the automotive industry, but sometimes smaller accounts can turn into giants if your ideas really work. (Bonus tip for Sean Womack: stay away! Stay far, far away!) Marriage counseling wouldn't be a bad idea either, even if you didn't do anything as you said. (By the way, I'm married. Don't e-mail me!)

Wal-Mart — Sure, you asked Roehm to pass on perks from vendors and it didn't work. It's not your fault. But the time has come to give up on the notion anybody will make you happy with traditional marketing. You do need something new, but new doesn't mean Roehm's "progressive" and "sexy" that would have never reached your target anyway. So the best advice for the fine folks working on your next campaign is simply this: to get back to basics and rekindle that grassroots shopping for common people concept you once had before all the public relations nightmares and bad communication consulting distracted you. Who knows? Maybe what I call "income marketing" would be right up your aisle.

"Income Marketing" is marketing that generates income instead of simply producing expenses so that even CFOs might like it. Sure, it sounds like something that goes against my shell game post, but one of my colleagues told me to call it something. Besides, that was part of Amitai Givertz's excellent comment at RecuitingBloggers.com.

Have a nice weekend and happy Easter!

Covering Hot Topics: First Quarter 2007

Last year, we published a recap of our five most popular communication-related posts, based on the frequency and the immediacy of hits after they were posted. Today, we've decided to keep it simple, covering the top five of the first quarter.

Antonella Barba Buzzes Up American Idol

When photos of the presumably modest Catholic University student and American Idol contestant posing in front of the U.S. war memorial in Washington, D.C. surfaced on the Internet, everyone from the cruel and crude to the curious and complimentary surfed the Web to see what was there or perhaps not. For our purposes, Barba proved to be an excellent case study in publicity gone wrong. Although we were among the first to call the pornographic photos phony, Barba's insistence that she could sing despite some obvious inability, landed her a series of offers that suggests she has different talents. Recently, Star Magazine listed her as more foolish in Hollywood than no-talent American Idol Sanjaya Malakar. We know why. Do you?

Link: Barba

Julie Roehm Sues Wal-Mart For Her Behavior

Maybe it's because some people still think Julie Roehm sports some nude photos too or because "anything Wal-Mart" always seems to command attention. Either way, the suit and countersuit, that reveals scores of ethically challenged e-mails, raises dozens of questions related to business behavior in a new world with social media. Workplace privacy, business ethics, and the pitfalls of second-tier executives becoming public figures are all part of the equation. Perhaps we're oversimplifying, but our interest in this case study is about whether it pays to draw continuous attention to your own shortcomings. Roehm would have been better off leaving things alone than attacking a former employer who is tired of hearing her name.

Link: Julie Roehm

Jason Goldberg Can't Shake Bad Habits

Jason Goldberg, CEO of Jobster, presents the ultimate paradox in social media. In 2006, he used social media to float the rumor of layoffs at his company and everyone from the New York Times to (most recently) Wired Magazine, as reported by Cheezehead, has chastised him for it. Yet, as crazy as it sounds, social media saves him as often as it slays him. So in what has almost become one sequel too many for the story that would not die (much like the Halloween franchise), Goldberg seems to have taken some lessons to heart despite being unable to break bad habits. He has a nasty tendency to hint before taking action as evidenced by the layoffs, his brief 'engagement' of me, and recently, about the fate of much-loved Jason Davis at Recruiting.com, who is allowing his contract to end after Goldberg hinted that changes were in the works (Davis was not fired nor forced to resign). We're adding a post to this living case study tomorrow, hopefully to shed some light on the continuing confusion.

Link: Jobster

Royal Spring Water Dances With Creative Ethics

Although new, Royal Spring Water seems to be gaining traction as another case study to watch. Just a few days ago, we called the company on peddling fear with its anonymous publisher-produced direct mail piece that sold stocks and the end of the world. Hailing water as the new oil, Royal Spring Water seems to be coming under fire for questionable marketing practices, stock valuation, and its product, billed as "structured water." While most of the muck seems buried by a mountain of news releases about anything and everything to demonstrate momentum, we cannot help but to wonder what the future holds for a company headed by former filmmakers.

Link: Royal Spring Water

Blogging ROI Is Real With The Right Measures

We are always a bit discouraged knowing that bad news tends to trump good news in attracting attention (for traditional and social media alike), but one idea surfaced above the clutter this quarter. Although it is only a sliver of a bigger theory we're working on in between servicing our clients, the 5-in-1 tool concept for blogging accomplished its objective: we were hoping executives and communication-related professionals would think of social media as a very versatile tool rather than force cookie-cutter frameworks upon companies. Simply put, appreciating that social media is a tactic and not a strategy, we recommend looking at existing communication challenges and/or opportunities before attempting to apply social media. By doing so, it's easier to establish measurable objectives that can deliver a tangible ROI.

Links: Blogging ROI, Social Media

Those were the top five most read posts for the first quarter 2007. Runners up (no order) included: Julio "Assad" Pino, JetBlue, Social Media Influence, AP Style on Web site, Using The Force.

A special thanks to all those who dropped by, added comments, and continued to help us shape a blog that is hopefully more useful than entertaining, but sometimes entertaining all the same. Thank you very much. Until tomorrow.

Using The Force: Social Media

"It surrounds us, penetrates us, and binds the galaxy together." — Obi-Wan Kenobi

I'm fully prepared to take a little flack for drawing an analogy between social media and the Force from Star Wars, but the comparison can be as startling as it is humorous. Like the Force, social media has various manifestations with the light side focused on elegance and beauty and the dark side aligned with fear, hatred, aggression, and malevolence.

One side doesn't impose any restrictions on the use of this binding, metaphysical and ubiquitous power. While the other, well, it includes a moral compass. No wonder businesses are reluctant to use what I recently called a 5-in-1 tool because some people are bent on making social media more mysterious than it is with terms like "social computing," "message salience," and "first source analytics."

This thinking serves as a precursor to tomorrow's post on the shell game being played with social media when I'll try to sound more like Qui-Gon Jinn than Yoda who might say "social media is everywhere, and everywhere is social media." Ha! Today, I'm more inclined to address a few heroes and villains in the new world of social media.

There's a smart post from Dina Metha in India pinpointing a very real Sith-minded threat against what I would say might be the least likely blogger to deserve it, Kathy Sierra. This is pretty serious stuff despite my resolve to remain light in this post. What else can you do?

Death threats against people in the public eye or with a public opinion predate blogs by a few million years. Ask any celebrity or politician on the planet and you'll find most of them have more than their fair share of nasties tucked in between the fan mail. It's not right, but it's certainly the price of being a public figure. My sympathies to Sierra; I am hopeful they catch the perpetrators. Indeed, a death threat is NOT protected speech.

In a seemingly unrelated-yet-related story, stands Julie Roehm, who is hoping social media begins to buy into the idea that the evil empire is Wal-Mart. She told the Associated Press in a statement and anyone else who will print it that "...Wal-Mart is insinuating things about my personal life and pretending I violated some code of ethics with advertisers, all to distract from the reality that it didn't want my form of progressive marketing." And then goes on to say: "When you patch together pieces of messages sent at different times, you can create pretty much any story you want."

I'm sorry. For all of Wal-Mart's overspun and supposed "public relations" woes (which is baloney, considering the public seems to shop there with a clear conscience ... giving rise to the notion that Wal-Mart has media relations challenges, not public relations challenges), it's hard to misconstrue "kissy face" e-mails. I write e-mails to people all the time, and don't recall ever needing to mention how I like to look at their face when I'm kissing it, in context or not.

The tie-in here is how some folks like Roehm attempt to manipulate mainstream and social media. Sorry Ms. Roehm, the ethics debacles are your own and I have yet to see any progressive marketing. (Clarification: I have nothing against Ms. Roehm, but I disagree with the concept that you can sue your employer for your own bad behavior.) Still, it's working. Ho hum. Some bloggers are beginning to feel sympathetic toward her (Google: Julie Roehm sympathetic and you'll see). Given many of her supposed professional decisions were obviously for personal gain, how can we really separate the two?

And finally, in what almost became its own post entitled "A Tale Of Two Idols," some folks seem confused as to why Antonella Barba and Alaina Alexander can create such different online images by doing virtually the same thing. In what some might call the school of new social media ethics, it's pretty easy to understand.

Barba, who doesn't sing well (but wants to be a singer without selling sex), presented herself as a good girl but secretly enjoyed bad girl behavior. While Alexander, who can sing pretty well (but is happy to sex it up), presented herself as a borderline bad girl (who burps) who decided to go for it without any remorse on MySpace. The difference is miles apart, but both hoped to sway public opinion by employing traditional and social media directly and indirectly for their own gain. Given the two outcomes, it proves once again that publicity without strategy is fraught with disaster.

The lesson for today, before tomorrow's more business-minded post, is simple enough. Social media (and the publicity that comes with it) is not all that dissimilar from the Force. The big picture is that the social media world, or blogosphere if you prefer, is a collective that binds people together, and is ripe with Sith, Jedi, and everybody in between. There will be those who use it to create wonderful things and those who abuse it for their own agenda, even if that agenda is nothing more than to fulfill their own source of self-loathing by sending death threats.

Really, it's not any different from any community with its heros and villains. It just "feels" different because the community is newer, bigger than ever, and the people, by in large, seem less reluctant to interact with anyone they meet in passing. For those who use the Force for good, you need to know that it takes some resolve, courage (preferably fearlessness), and skill to swim in these waters because the better you swim, the more likely someone will come along to try and sink you.

No wonder executives are unsure of social media. It seems crazy, unless you accept that most often, like anywhere, you create your own experience in the blogosphere just as Roehm, Barba, and Alexander created their own experiences. (I'm excluding Sierra here because I just don't get it beyond the idea the death threats are merely random acts of violence.)

You see, business blogs or any other blog ideas I shared a few days ago do not need to be controversial to be effective. They simply need to be strategic. Oh, and you might want to look for social media Jedi, avoid the social media Sith, and use the Force for good. Just don't fear it because, well, you know, "… fear leads to anger... anger leads to hatred ... hate leads to suffering."

May the Force be with you. Ha!

Spinning Silly: Julie Roehm

The Wall Street Journal has published a statement (for subscribers) from Julie Roehm. Here's the opening of the 520-word story:

"When I look back over the whirlwind of the last 15 months of my life, here's what I see: I left a successful career in Detroit, uprooted my family to move to Arkansas, and took on a demanding job at Wal-Mart as part of its shift in marketing strategy. I threw myself into the job, traveling constantly and working tirelessly to master several components at the same time. ..."

Apparently, Roehm has decided to put on her best spin until the very end. Here's what I see: someone who regrets a whole bunch of choices she made because it didn't work out as expected, despite saying she has no regrets. From this opening line, it is difficult to buy into a message that ties in the very family she recklessly gave up for what she thought was an marketing upgrade.

Selling Change: Roehm & Womack

Emotional Intelligence enthusiasts might see a "change agent" as the perfect person to help a struggling company or industry out of a rut, but CEOs need to be careful with them because change agents can put big holes in the wall as easily as they can pound nails in the right spot.

In other words, a change agent might fearlessly introduce new ideas to enhance a company. Or, a change agent might might become addicted to seeing themselves influence the world around them. In a marriage, one might respark the existing relationship while the other will have an affair.

Juile Roehm and Sean Womack seem to be the latter. Unable to secure a dream offer after the Wal-Mart scandal, they are back in action, pitching a concept that "change for the sake of change" really works, because, well, everything is changing so everyone must change all the time. They call it "marketing 2.x" because they say people are more receptive to "upgrades" than "changes."

There is an irony here because the real drawing power of the dangerous duo seems to have little to do with anything new. Roehm has made sure of that. Back in December, she said "I have enjoyed my time at Wal-Mart and I wish my many friends and colleagues much future success." Of course, that was before she filed the wrongful termination suit, which seemed to beg that Wal-Mart release all its evidence of the illicit affair and other ethical breaches that broke company policy (to say nothing of the vows they once had with other people). As the old saying goes, be careful what you wish for.

As a self-proclaimed marketing expert, she should know that when you wrap up a brand too tightly to a single negative event, eventually the incident will become the brand. It is the very reason that not all publicity is good publicity. Sure, you might capture headlines, but with what consequences? Did Firestone benefit from denying the need for a recall? Did Stoern succeed in establishing scientific credibility? Does anyone really want to hear Barba sing?

Embrace the wrong message and sooner or later everything published about you on the Internet will stick, proving that what is published on the Web can impact your personal brand and future employment. This is the very reason Roehm was ill-advised to file a wrongful termination suit, further damaging her already questionable credibility as a public figure.

In Wal-Mart's countersuit, there are even claims that the pair "misused the agency review process and engaged in travel paid for by Wal-Mart and for the ostensible purpose of furthering Wal-Mart's business interest, but for the actual purpose of spending personal time with Womack." As reported by BRANDWEEK, the court papers reveal Womack was very candid in his e-mail during the review process: "Speaking of equity ... we're both interested in having a stake in our next gig ... More importantly to you, in the two of us you have a team that can help lead your organization in a powerful way. But the opportunity will need to be broad enough."

In another signed "Sean & Julie," the message was: "P.S. These Gmail accounts are WM [Wal-Mart] safe. So, we can have candid conversations."

What lessons can be re-learned from all of this? Several. Not all publicity is good publicity. Never attach yourself too tightly to one bad incident. Protect your personal brand by being ethical, if nothing else. While adaptability is an asset, don't let anyone fool you into believing that change for the sake of change is a good idea. And, as I have said before, e-mail is NEVER private.

Punting With Legal: Roehm

As if Wal-Mart didn't have enough antics from Julie Roehm last year, the retailer has filed a countersuit against Roehm's legal punt. The suit purports to include the texts of steamy e-mails between Roehm and another former Wal-Mart executive, Sean Womack. I'll be looking at this issue a bit more tomorrow (since I keep suggesting that e-mails are NEVER private).

In the interim, you can catch a good summary of the story by BRANDWEEK. There, you can even see things like a message from Womack to Roehm as saying: "My Gmail is secure ... write to me. Tell me something, anything ... I feel the need to be inside of your head if I cannot be near you."

Remembering Top Posts Of 2006

With the new year upon us next week, we would like to say goodbye to 2006 with a recap of our five most popular communication-related posts, based on the frequency and the immediacy of hits after they were posted.

Wee Shu Min’s Post Impacts Economic Reform

When Wee Shu Min, the teenage daughter of a Singapore member of parliament, stumbled across the blog of a Singaporean who wrote that he was worried about losing his job, she thought she’d give him a piece of her mind. She called him “one of many wretched, under motivated, over assuming leeches in our country” on her own blog and signed off with “please, get out of my elite uncaring face,” a post that received international scorn and had such an impact that the Singapore government paid out S$150 million to about 330,000 low-income workers five days before its recent election.

Links: Wee Shu Min, Wee Siew Kim

Jobster Loses Control Of A Blog Rumor

After starting a rumor that 2007 would mean more profitability for Jobster, the rumor runs away from the company as bloggers speculate whether that will mean layoffs at the young, but fast growing online recruitment company. The outcome leads to one of the worst public relations and internal communication nightmares in recent memory. From the net to mainstream media, the Seattle Times picks up on what continues to be an interesting communication case study. A few more days and Jobster might have overtaken Wee Shu Min’s post. Go figure.

Link: Jobster

Wal-Mart Fires Julie Roehm

Julie Roehm never intended to gain her most fame for being fired by Wal-Mart, but that is exactly what happened after Wal-Mart allegedly grew uncomfortable with her friendly connection to Draft FCB, which she had pushed for to become Wal-Mart’s agency of record. Draft FCB was fired three days after Roehm. Still spinning an upbeat message, Roehm told Advertising Age she would take “60 days to find out exactly what I want to do and take advantage that people want to talk with me…” Her other alternative, she said, is to open her own shop.

Links: Roehm, FCB Draft

Jim Gibbons Elected Nevada Governor

Fueled largely by last minute assault allegations made against Jim Gibbons by Chrissy Mazzeo, a 32-year-old cocktail waitress at Wynn Las Vegas, the governor’s race in Nevada became a hot topic nationwide. Eventually, Gibbons overcame the obstacle after video evidence proved he was not in the location where the incident supposedly took place. Gibbons won over Dina Titus, 48-44. For our part, we worked on Gibbons mailers for the Nevada Republican Party’s Victory 2006 campaign after working with State Senator Bob Beers on his spirited policy-changing primary.

Links: Jim Gibbons, Gibbons Wins

Miss USA Crowns In Turmoil

The Miss USA pageant scandals remind us that all of us have personal brands. Donald Trump capitalized on the publicity by teasing Miss USA Tara Conner with the statement, made days ago, that he would be "evaluating her behavioral and personal issues and would make an announcement within the week." He forgave her, but Miss Nevada, Katie Rees, did not fare as well when 3-year-old photos surfaced on the Internet. The decision prompted many to ask whether the Miss Universe Organization had double standards in regard to ethics rulings.

Links: Rees, Conner

Those were the top five topical posts in 2006, followed closely by predictions for YouTube, e-mail disasters, Stoern’s publicity stunt, business card techniques, and Sam Sethi’s dismissal from TechCrunch.

Links: YouTube, E-mail, Stoern, Business Cards, Sethi

Let us hope 2007 brings more attention to the best practices as opposed to the biggest mishaps. Happy New Year!

Taking The Bottom Position

Two days ago, we alluded to the idea that Julie Roehm was only the first casualty of a Wal-Mart insider marketing war. Yesterday, the fine folks at Draft FCB found out they were the next to go, just weeks after they crowed about being in the 'top position,' partly because they won the account. I guess it's back to the bottom position for them, making their ill-advised ad the ultimate case study for irony in advertising.

The not-so-surprising news yesterday was that Wal-Mart quickly overturned Roehm's Draft FCB choice, putting $580 million worth of advertising purchase power back on the table. Several major agencies are already pulling together their marketing plans for the nation’s largest retailer.

Ms. Roehm maintains that she did not accept gifts from agencies vying to become Wal-Mart advertising superstars or that her relationship with subordinate Sean Womack violated company policies. Instead, she told The New York Times: “I think part of my persona is that I am an envelope pusher,” she said last night. “The idea of change in general can be uncomfortable for many people, and my persona as an agent of change can prompt that feeling.”

This seems to be a spin contrary to her attendance at a September dinner given by Draft FCB at the Manhattan hot spot Nobu, where she allegedly explained her presence as one of those cases where “if you don’t ask, you don’t get.” Unfortunately for Roehm, sometimes you do get what you don't ask for, since Wal-Mart has ruled the search process was "tainted by the pair’s behavior and should be reopened."

Draft FCB's (part of the Interpublic Group of Companies) stock fell 6.4 percent on the news it had lost the account. As I often advise clients in Roehm's position and higher, behavior is easily managed. Unless you'll be proud to see the story appear in the Wall Street Journal, er, The New York Times, don't do it!

All cloak and dagger courtships aside, Draft FCB was not ready for the holiday season and neither was Roehm, based on a USA Today story that weak Wal-Mart sales are dampening holiday season hopes.

What USA Today seems to miss is that the 'dampener' might be all Wal-Mart and not all retailers. Given that the agency review was concluded dangerously close to the holidays (not bright), that choosing an ROI (Return On Ideas) agency delivered a dismal negative .01 percent in sales for Nov. (assuming they got anything off the ground), and that Wal-Mart is in desperate need of some top-down strategic communication development to prevent it from further losing its way; I'd say it is not the best national holiday sales indicator at the moment.

You see, it used to be that Wal-Mart was unbeatable because it had a solid message that other retailers could not compete against. Today, Wal-Mart has voluntarily given up this message in order to pursue what it perceived as greener pastures (higher-end retail). Unfortunately, it did this without developing a core message with complete consensus among board members and executives.

In fact, that is why I don't give Roehm "I'm a change agent" as much kudos as some. Her "follow-me-on-faith" approach left the world's largest retail giant without a message, at best, and with a message unsupported by its core consumer, at worst. Gee, I thought we already covered this lesson back when Miller beer alienated its blue collar consumer with ads aimed at a micro-brew generation. Ah, history, let's repeat it. Ah, history, let's repeat it.

Advertising The Lack Of …

Every day, the sudden departure of Wal-Mart marketing boss Julie Roehm is attracting more attention and is increasingly linked to her connection with Draft FCB, which she pushed to become Wal-Mart's agency of record in October.

Speculation suggests Roehm flouted Wal-Mart's strict corporate gratuities policy, which states no one who works for the company can accept any sort of gratuities from suppliers (even a cup of coffee). But the real damage was done when Draft FCB ran an ill-advised, tasteless, and remarkably uncreative Lion Awards advertisement featuring a real male and female lion having sex above a copy line that read "It's Good to Be on Top."

I won't post it here, but you can find a copy of the ad on ADFREAK. The ad is so poorly done and uninspired that one poster accused Adfreak's Tim Nudd of posting a fake. No doubt, Draft FCB wishes it was a fake, as one of its spokespeople has already said the ad was "a terrible mistake."

It's a terrible mistake because some inside Wal-Mart, those who were dissastified with the decision to hire Draft FCB, suddenly had good reason to second guess Roehm's big push. Not good for Draft FCB because Wal-Mart insiders are not the only ones looking to poke holes in Howard Draft's rise to the top of the industry after merging with Foote Cone & Belding (which was already struggling) last June.

As Lewis Lazare wrote in the Chicago Sun-Times, the merger date will "go down as one of the darkest moments in the history of an increasingly troubled ad industry, which, with each passing day, shows new and disturbing signs it has lost its way.”

He called Draft FCB Group depressingly real proof the American ad industry has been totally and tragically upended.

“It's a shame to think that an agency like Draft that was once the lowly tail on a big, healthy, creatively inspired canine has finally emerged as the powerhouse wagging the mangy mutt that is now the general consumer ad business,” he said.

Little did Lazare know that the tail he was writing about would be morphed into a lion within six months. An agency showing its not-so-wild side, after Wal-Mart gave the agency its $580 million account, only added to Roehm's streak of bad luck since joining Wal-Mart.

Last month, she made a questionable call on a press release from Wal-Mart about how a staffer of John Edwards, the former senator and presidential hopeful, inquired about getting a Sony Playstation on the same day that Edwards was having a media event in which he talked about how bad Wal-Mart is to its workers.

Summed: never underestimate the brand damage you can do with a single gratuitous awards program advertisement. A dark day indeed.