Saying Tomato: Whole Foods Market, Inc.

Whole Foods Market, Inc. (Whole Foods) has completed its investigation into CEO John Mackey’s online financial message board postings related to Whole Foods and Wild Oats Market (Wild Oats). The fiasco began months ago after it was revealed that Mackey posted disparaging remarks about Wild Oats on Yahoo financial boards using the anonymous name “Rahodeb.” He did this for years, stopping several months prior to the Whole Foods acquisition of Wild Oats.

The result was one of the biggest games of “you say tomato, I say tomoto” in recent history, with some people insisting it was all good fun (including Mackey before he admitted a lack of judgment) and some people claiming it is an ethical breach of his fiduciary duty with the insistence that he be immediately removed as CEO.

The Whole Foods Board, led by Rahodeb and including "Divad," "Nhoj," "Elleirbag," "Ssah," "Sirrom," and "Hplar," has reaffirmed its support of Mackey. (By the way, Divad, Nhoj, and Hplar led the "independent" investigation.)

So why did they say tomato? They won't say. It’s a secret.

“The Company and the Board intend to cooperate fully with the SEC in completing its related inquiry. Due to the ongoing SEC inquiry, the Company and the Board have no further comment at this time.”

Instead, they have turned over their investigation to the Securities and Exchange Commission (SEC), which is charged with determining if Mackey violated the law. I do not envy the task; exonerating Mackey will smack as permission for more colorful CEOs to do the same. Not to mention, the media, which was once sympathetic to Mackey, is starting to lose their patience with the whole sordid story.

They have several reasons. Mackey’s activities were carried out despite knowledge of them by senior executives and several knew of the postings as of 2001, according to three people familiar with the matter, reports The Wall Street Journal. The independent investigation no longer looks so independent. The company will not comment further. And, the longer it takes to resolve a crisis communication situation, the less likely the media will be on your side.

So why did they say tomato? That’s no secret. It’s simple.

The Whole Foods Board has nothing to lose by doing so. If the SEC does decide to call Mackey’s antics less than vine ripe, then it simply has to announce something like this … “In light of the SEC investigation, which uncovered additional information, we have decided to say tomoto instead of tomato.” And then call the whole thing off.

Understanding Semantics: PR Students

“If A equals success, then the formula is A equals X plus Y and Z, with X being work, Y play, and Z keeping your mouth shut.” — A. Einstien

There are two things I always take away from teaching. First, semantics can sometimes mean the difference between discussion and dispute. Second, teaching, in and of itself, is learning (as long as the instructor listens now and again).

I have yet to teach a class where I do not walk away learning something new. Last night, I learned as much if not more from guest teaching social media for a Fundamentals in Public Relations class, normally taught by Keith Sheldon, ABC, APR, than the students. Then again, they were not only students. Most are also working professionals in media, public relations, and advertising. So it was in discussing social media with them that I learned about several social media roadblocks from the perspective of their respective employers. Here are four:

Social media practitioners claim comments are required.

If there is one stumbling block for companies and organizations it is the erroneous belief that blogs require comments. Concern over comment moderation is one of the largest roadblocks for having blogs deployed.

Reality check: the purpose of the communication dictates whether or not a blog is served by comments, not the medium in which the message is communicated. The conversation does not need to take place on one blog, but can take place across many blogs. (Living in reality: BlogStraightTalk members.) The root of the semantic confusion: practice vs. purpose.

Social media practitioners advocate complete transparency.

The erroneous idea in social media that all employees simply share their thoughts at random and ad nauseam, even if it means disagreeing or damaging the principles or principals of their company. Message control should be abolished, they say.

Reality check: Smart public relations firms never advocated message control; they advocated message management. Given the best communication occurs from the inside out, one wonders what consumers might think when different employees deliver conflicting messages. While some say this all equals transparency, multiple messages can shred authenticity. (Living in reality: Brian Clark).
The root of the semantic confusion: control vs. manage.

Social media practitioners support social media measures.

Across social media, including communication-related blogs, several practioners are pushing measures like Google page rank, Technorati links, friend/follower counts, and Alexa traffic (usually when it suits them). Currently, Alexa traffic is sitting at the top of the heap.

Reality check: The accurate measure of any communication is its ability to engage consumers, change behavior, and/or produce outcomes. While some people mistake the term “outcomes” to mean sales, it is simply means meeting the objective of the communication. In terms of traffic, blog dramas can create some interesting spikes, but if traffic really counts, we might all be better off blogging about Britney Spears. (Living in reality: Robert Scoble). The root of the semantic confusion: buzz vs. outcome.

Social media practitioners always talk about conversation.

Social media practitioners claim that it is all about the conversation and companies should be compelled to have a dialogue with them.

Reality check: If social media is all about the conversation, then why are so many practitioners talking and so few listening? Ergo, what seems to be is that some practitioners are more interested in driving their own one-way communication than they are willing to have a real dialogue with those they demand it from. Some practitioners create blog dramas or storm away in the face of fair criticism, the exact opposite of open two-way communication. (Living in reality: David Maister). The root of the semantic confusion: dialogue (communication) vs. dispute (non-communication).

"If you don't manage your message, then your message will manage you."

While the class revealed additional social media roadblocks, many of them can be traced back to a root cause related to semantics, including the difference between criticism and cynicism. However, I also noted a tremendous difference between these public relations students and communication practitioners and the class I taught just six months ago.

When I told these students that the communication landscape had changed, none of them looked slack-jawed, appalled, or bemused. While only three of them raised their hands when I asked if anyone was engaged in social media (not one blogger), the definition was already familiar to them. What is significant to consider is that participation in social media does not always mean practicing in social media, which again dispels the myth of counting blogs as a measure of acceptance.

More to the point, they made me wonder. Maybe the biggest roadblock that prevents social media from becoming mainstream is not the public as much as the practitioners. In other words, maybe social media is having trouble managing its own message. How ironic.

Drumming Up Interest: Anthony Miranda

When Anthony Miranda was playing drums for Johnny Mathis, he needed to add metal sounds to a hand drum set. But what he didn’t know ten years ago was that a single YouTube video would garner more attention for his solution than he ever received touring with the Grammy Award-winning singer and songwriter or attending trade shows and conventions for five years.

Now, Miranda will be considered as an act featured on Late Night With David Letterman. Representatives from the show caught Miranda's demonstration of his invention, Fingerstix, on what appeared to be a spontaneous YouTube performance in a restaurant.

“My marketing director brought up filming a YouTube video,” says Miranda. “So I concepted the idea of doing it in a restaurant with plates and glasses.”

In many ways, dinner plate performances had previously been proven. Always the entertainer, Miranda had played in restaurants for his friends for years. His talent is amazing; the video a must see. Almost immediately following the launch of the video, Miranda noted increased exposure and sales on his Web site, where you can catch several more dazzling clips.

“Any great idea has to find the right path to market,” Miranda told me. “I’m an inventor and creative person by nature, but even I knew finding the right people to help me take my product from an idea and onto people’s hands was key.”

Five years ago, when Miranda first decided to take his invention public, he went the traditional route. He took it out to trade shows like NAMN and had some success with resellers. It made sense. After all, Fingerstix were responsible for the unique percussion sounds on several albums and movie soundtracks

“I also used them in concerts and clinics and sold numerous sets to the attendees,” he said. “But all of these traditional methods targeted a very focused segment of the market.”

Given Miranda has performed with Mathis, Madonna, Natalie Cole, Gladys Knight, and Tom Jones, one would assume the traditional route would have been enough. However, Miranda gives ample credit to the power of social media.

“It [the video] opened up Fingerstix to a much broader audience,” says Miranda. “The YouTube video was shot in one take and the Fingerstix team posted it a couple days later. I couldn’t believe that hundreds of people watched it shortly after and they still do.”

Miranda says that the Fingerstix team has always used some guerilla marketing techniques to improve sales, but nothing like the YouTube video. Currently, they are working on his next YouTube video. And while Miranda wouldn't give up the concept, he did tell me that it is sure to be sensational.

I have little doubt about that. Who knows? Maybe the next YouTube video will include Hilary Duff. It could happen. Miranda recently added movie producer to his long list of credits and credentials.

Drinking Games: Bud TV

Two years ago, Bob Lachky had enough creative vision to become executive vice president of global industry development for Anheuser-Bush, Inc., which made him responsible for representing the company to alcohol beverage industry groups nationally and abroad, and to enhance the overall image of the beer industry with both the public and within the industry. Fresh off seven consecutive wins in the Super Bowl’s USA Today Ad Meter Poll, he seemed like the perfect match.

“I am excited and inspired by the challenge that has been put before me. And, after leading our creative team to seven consecutive wins in the Super Bowl’s USA Today Ad Meter Poll, I am grateful to be leaving my job as head of brand creative on a high,” Lachky said then.

More recently however, he showed that oh-too-transparent side as he delivered an acid-tongued review of Bud TV with a quotable or two that rivals Lauren Caitlin Upton, Miss South Carolina.

“…as you can tell, I was doing something else at the time, I think had a little stronger sell on this,” said Lachky during Masters of Marketing. “… kind of a flawed idea but a brilliant concept.”

Okay. Sure, Lachky is technically accurate, in that a concept is an abstract and an idea is a visible representation of a concept, but the rest of the summed review of his company’s own communication effort reveals Bud TV wasn’t such a brilliant concept at all. And based on the previews alone, it’s easy to see Bud TV is exactly how Lachky described it: a purposeless waste that featured ‘bizarre’ content and no branding. (A classic example of more buzz, less outcome.)

None of the content is ‘bizarre’ enough to be that funny except one gem on YouTube. The rest is simply a good indication of why Bud TV captures about 50,000 unique visitors per month (that’s on par with some mid-level blogs). Still, the company says it has faith, enough to let all it all run through 2008.

Not to be deterred, Tony Ponturo, vice president of global media and sports/entertainment marketing at Anheuser-Bush, recently tried to put the decision in perspective as the company intends to invest more in entertainment and the digital space.

"We wanted to get through the step of, 'OK, should we continue into '08 as we build our marketing plans?' and that was the decision," he said during a keynote speech at Online Media, Marketing & Advertising Conference & Expo. "I think it (Bud.TV) is something that could have an ending someday, but I think if we keep learning from it and if we keep seeing assets from it ... then it makes sense to continue the site.”

You can catch more of Bud TV talk over at iMedia. But right out of the gate, Ponturo tells us why Bud TV doesn’t work.

“We wanted to go into this sort of new world because of what we are seeing, and what our research suggests, that adults 21 to 27 are using the Internet minimally six hours a week, and obviously that's growing.”

No, no, no. If you want it to work, stop talking about why you did it and start talking about what it promises to deliver (just make sure it delivers something, which it doesn’t at the moment). And, you might ask Lachky to stop poking at the ashes with critiques that reinforce the idea that Bud TV is dead anyway. (I'm still wondering what he was doing while millions were poured away.)

So here are are quick fixes. If you want to save Bud TV, dump the ego-creative concepts and provide content people who drink beer want to see. Like, um, how to brew beer at home. Or maybe, follow a NASCAR driving team around the circuit (oh right, you more or less gave that content model over to Coors). Or maybe, you could cover the Beer Pong championship. Or maybe, you could put in some product placement, since, well, they are your shows. Or maybe, ask people who watch Bud TV to provide some content from time to time.

I dunno. Whatever Bud does next, let’s just hope they don’t launch a completely different channel and spread out their already thin fan base. Oh right, they already did that too, several times over.

Not to worrry, there is always a bright side: after spending $30 million for a site that is less than fluid, some people on the team will likely need a beer in 2008. It brings new meaning to the term case study.

Winning & Losing: Al Gore

As part of Blog Action Day, I’m adding a communication bent to environmental awareness as some inconvenient truths are being reported about An Inconvenient Truth. (Hat tip: State Sen. Bob Beers).

The Credibility Question

The timing of Justice Burton’s ruling — that British teachers showing the film must tell their pupils that Gore makes several false or unsupported claims (although the work is broadly correct) — could not come at a worse time. After all, Gore and the United Nations Inter-governmental Panel on Climate Change (IPCC) just received a joint winner of the Nobel peace prize for educating the world about climate change.

After possibly overreaching on some points, Gore has succeeded in fueling additional conflict over his message of environmental crisis. According to Times Online, the court ruling is the first of many battles ahead. The campaigners who supported the court case will now send copies of The Great Global Warming Swindle, a counter claim funded by Viscount Monckton, to these schools.

The Communication Considerations

What is most interesting to me is how Gore will handle what is his greatest triumph and looming crisis over the same work at the same time; whether the topic of global warming will become even more polarizing for British students than it already is for world leaders; and will this impact the public’s belief in global warming? As the story unfolds, we will begin covering these questions as part of a living case study.

The Environmental Considerations

Recently, I participated in a discussion that accepted the premise that global warming was beyond our control. My point in this discussion was simple enough. Regardless of global warming, we still need to consider alternative fuel sources.

Unless we change current fuel usage in the United States between now and 2030, one-third of the world’s population will be using unhealthy and environmentally damaging fuels to meet their daily energy needs. As it stands now, 1.6 billion people do not have access to electricity, 2.4 billion people rely on traditional biomass such as wood and dung, and 99 percent of these people live in developing countries that will need energy.

As these countries develop, demand will increase at exponential rates, making our traditional model too expensive to maintain anyway. Not to mention, China’s continued development is having an increased demand on the world market (faster than the U.S.) and oil remains one of the most unstable fuel sources for our country with 37 percent of all imports currently being supplied by OPEC.

As I mentioned in January, the debate about global warming, and add to that the need for alternative fuels, is over. Everybody lost. And now that it has been over for some time now, it still seems to me that people need more saving than the planet. Here is one way to help both.

Recognizing Leadership: Social Media

The quality of leadership, more than any other single factor, determines the success or failure of an organization. — Fred Fiedler and Martin Chemers

All across the net — in forums, social networks, fan bases, and even well-read blogs — some people are elevated up by any number of measures and any number of reasons to become perceived leaders in their respective communities or industries.

And yet, unfortunately, when the concept of being a leader arises, whether sought after or rejected on its face, few realize it is not leaders that these varied communities and industries crave. It is leadership.

In June, a few fans, in consideration of my suggestions to promote fandom asked me how to organize a fan club. I obliged them, but was surprised by the response of some, who rejected the idea on its face because Jericho fans did not want any leaders. Off with any leaders’ heads, some said, we are all equal here.

What was missed is that I was not advocating for leaders as they defined the term as much as I was advocating leadership. The two are vastly different.

Leadership is not defined by power, privilege, rank, title, position, or authority. Leadership is a quality of action, one that rarely requires force of law, threat, manipulation, control, or the attempted shutdown of dissent. On the contrary, leaders welcome all parties, all views, and then effectively match those to organizational goals and not necessarily their opinions or preferences.

A successful leader transcends their personality in order to ensure any following is aligned to the organizational goals and not themselves as individuals. The very best of them continually challenge any followers to reach higher obtainable goals, encouraging them to apply leadership as well.

In social media, some bloggers, social network participants, forum administrators, group hosts, and even online talk show hosts become leaders either by pursuit of action, grant of title, or by default simply because others recognize them for their insights and expertise. Yet, relatively few recognize the role they have assumed or accept the responsibility of it. Fewer still have ever been exposed to the difference between leaders and those who think they are leaders.

You can tell which are which. Effective leadership looks for objectivity and truth, taking responsibility for their actions and win the hearts of any following. Whereas those who think they are leaders are subjective, obscure facts, and promote their own partisan interests and make demands while denying the role for fear of being held responsible or accountable. Sometimes, they attempt to force others to succumb to their will because of any number of erroneous qualifications: experience, seniority, title, rank, traffic, followers, friends, links, etc.

Leadership requires none of these things. Rather, it revolves around vision, motivation, inspiration, empowerment, and authenticity. And very likely, but not certainly, it seems to me that Jericho fans are well overdue to find those few who are capable.

If not, the craving for leadership will continually lead toward elevating those who are popular and not necessarily those who have the skill sets necessary. The results can be disastrous, as they have been for the last two weeks.

You see, there is a vast difference between those who start something, provide a forum to talk about something, and those who lead something. Last week, someone responded to me and said he did not want to be a leader. It reminded me of an episode in Jericho, when Gray Anderson was ready, once again, to relinquish authority to Johnston Green. Green basically told him to accept the responsibility or stand aside.

The lesson was as clear in the show as it is for fans today. As I opened, the quality of leadership, more than any other single factor, will determine the success or failure of a third season. Good night and good luck.