Growing Businesses: Slow And Steady

If you are looking for any signs of economic recovery, think small. Small business is continuing to grow at a slow and steady pace despite economic challenges and some uncertainty over the impact of the financial overhaul bill that serves as a contrast to the Federal Reserve's call for increased small business lending.

According to the 2010 Small Business Scorecard/May by SurePayroll, small business hiring continued to increase slightly in May (+0.3 percent over April), bringing the year-to-date increase in hiring to 3.7 percent. The reason is simple enough. There is a psychology behind the optimism.

Small Business Scorecard By Region

• Midwest, up 4.3 percent with Illinois leading growth
• Northeast, up 2.3 percent with no distinguishable leader
• South, up 3.5 percent with California leading growth
• West, up 3.9 percent with Texas leading growth

In most states, the trade-off for improved employment is smaller salaries and slightly diminished optimism (down from 68 percent to 63 percent from April to May) as small businesses accept greater risks to take their companies to the next level.

One Quick Tip For Developing Businesses

As small businesses grow, owners quickly learn they have to wear many hats. Most of them serve as human resources director, purchasing agent, sales agent, bookkeeper, etc., etc. In fact, the number one complaint I hear from many business owners is that they eventually feel pulled away from the passion that prompted them to open their business in the first place.

Even with marketing, social media may have opened up a low cost opportunity that is being readily adopted, but relatively few really have time to follow the "owner online" model prescribed by some social media experts and authors.

Likewise, most small business tips smack of common sense that still can't be executed, e.g., avoid distractions, limit e-mail usage, organize time slots, and tackle the big rocks first. Sure, such tips work but only on a tactical basis. But to succeed strategically, business owners should focus on two things: what they love to do and their overall vision for the company.

Sure, they need to learn some basics across several subjects to ensure they hire the right people and outsource to the right consultants or small businesses. But they don't have to wear all those hats. They only have to wear one, besides whatever it is that they love to do, and that is the hat of an executive who is capable of hiring people who take on dual roles within the company. It's a strategy worth detailing later this week.

Pretending At Freshness: Fresh Content Project

In the film industry, most producers know that you can have a good script and still produce a bad movie. However, if you have a bad script, you can't hope to produce a good movie. Communication works much the same way.

You cannot spin bad actions into positive perception. You can, however, change negative perception by communicating positive action. Even then, it's still hard work. In fact, it can be extremely hard to change public perception when the communication is grounded in truth and results are self-evident, never mind trying to paint a smiley face on sludge.

Ergo, you can adopt social media and still come up short when the focus is on creating the perception of a following (without actually having one). You can give customers every product choice under the sun and gain nothing more than overstocked inventory. You can attempt to spin away a crisis, but all it does is add more fuel to slipping public trust as the oil washes on up on southern beaches.

Best Fresh Content In Review, Week of May 24

• Social Media in Small Business is Anything But Small.
Brian Solis recaps the Small Business Success Index (SBSI) by the University of Maryland’s Smith School of Business with Network Solutions. The study reveals that social media adoption by small business has doubled in the past year, with an emphasis on social networks like Facebook, LinkedIn, and Twitter. The primary reason is to identify and track new customers, but several small businesses are looking to do much more in terms of understanding customers and engaging them.

• Four Reasons Your Social Media Marketing Campaign Sucks.
While small business is adopting social media, it doesn't mean everybody is adopting it right. Dave Fleet pulls together four of the most common reasons social media doesn't always work for business. His list includes investing too little into the effort, scrapping programs too soon, misidentifying the environment as a paid medium, and treating it as a one-way communication tool. He's right. In an effort to establish a presence, businesses assume they can attract an audience too fast with very little effort.

• What Will Top Kill?
At the 36-day mark of the BP oil spill, Geoff Livingston provides a balanced accounting of BP communication efforts. He notes that while its communication improved, much of those improvements occurred too late in the crisis to be effective. The result has been a loss of public trust not only in BP but also the Obama administration, which allowed the company to control most of the communication. Eventually, the administration learned that while the public blames BP, they expected more than oversight from the administration.

• Cut Products, Boost Sales
As someone who writes with a focus on neuromarketing, Roger Dooley frequently hits upon little known facts within the communication and marketing field. While some people are content to attempt to cater to customers by giving them an infinite amount of choices, the science behind the marketing shows the opposite might be true. By reducing the number of selections, sales actually increase. However, Dooley also does a great job in balancing out the analysis. Some low volume products are supported by highly engaged and passionate consumers.

• BP: 2010’s Most Irresponsible Corporate Citizen
After BP claimed it acted responsibly in its attempts to correct the spill, Geoff Livingston analyzes whether or not it can own that statement. Of course it can't. In a virtual repeat of what Toyota did wrong earlier this year, BP was too slow to shore up its crisis communication but too fast in proclaiming a success to stop the problem. Livingston pinpoints seven examples of why the BP communication not only failed but also served to make the public even angrier.

Planning For Disaster: Communicators And PR Must Step Up

While my grandparents were poor by most definitions, my grandfather would go to great lengths to protect one of the last remnants of his family's possessions in the north woods town of Minocqua, Wisconsin. It was a summer cottage, for which he mortgaged his city home in Milwaukee every year in order to keep and maintain it until he retired. My uncle also owned a nearby home.

As one of the few four-season families in the area, my uncle was a natural leader. In addition to being to a small business owner, he served as a volunteer fire chief, mayor, and led teams to mark snowmobile trails across the partially frozen lake every winter. My grandfather, who was a former engineer and seasonal painter, was much the same.

Both men had experience in disaster planning. Coming from a small somewhat isolated community, it was a skill set that could not be left to other people. I even remember my grandfather putting his skills to good use when tornadoes interrupted a Boy Scout paper drive in the heart of Milwaukee. People immediately turned to him to lead.

Nowadays, there are fewer men like my uncle and grandfather, especially in urban areas. Disaster response tends to be left to professionals. But in considering the Gulf Coast catastrophe, it seems we need more citizens to understand response.

In fact, looking back on my recent guest host conversation on The El Show with Geoff Livingston, I think we might have invested some time on disaster planning beyond discussing how communicators can address unethical behavior. Communicators, even public relations professionals, need to establish a role within any disaster planning. It's vital that they do.

The Four Basic Tenets Of Disaster Planning.

1. Mitigation. Mitigation focuses on long-term measures to reduce or eliminate risk. These might include technologies or policies, set in place by companies or government.

2. Preparedness. Planning, organizing, training, evaluating, and improving activities that will ensure the proper coordination of efforts during a disaster.

3. Response. Response includes the mobilization of all necessary emergency services and first responders in the disaster area. Organized response requires a structure (leadership) and agility (creativeness).

4. Recovery. Recovery aims to restore the affected area to its previous state before the disaster. This almost always occurs after a disaster; it is the opportunity to assess where mitigation, preparedness, and response broke down.

Where Disaster Planning Broke Down With The Spill.

1. Mitigation. It seems obvious that neither the government nor BP (and subcontractors) had properly mitigated the potential for such a disaster. While policies were in place, it seems clear the regulatory agency did not have the technical expertise to oversee the procedural breakdown that led to increased risk at Deepwater Horizon.

2. Preparedness. To date, it seems obvious that the preparedness is almost non-existent. While the initial response saved most of the crew aboard the rig, neither BP nor the federal government has a plan for a large-scale coastal disaster. While this incident seems to have been caused by negligence, it strikes me as appalling that the government is largely unprepared for such a disaster.

3. Response. Given the failure of emergency response in the wake of Katrina, which was largely due to a complete breakdown in communications technology (I know because I've worked with the National Emergency Number Association, among other emergency response associations), it is perplexing that a new administration consisting of people who were hypercritical of and capitalized on Katrina would have done nothing to improve their ability to respond to a crisis. There is no communications technology breakdown this time. But there is a complete breakdown in appropriate federal leadership and agility over the response.

4. Recovery. Recovery is not simply litigation as our government has recently demonstrated as the answer for every problem ranging from the border issues in Arizona to the Gulf Coast oil spill. There is an apparent need to understand where the government's disaster planning continues to break down, not only with this administration but also prior administrations. The fundamental responsibility of any government is to protect its people — not from themselves — but from threats beyond the control of citizens. This time around it seems negligence played a role in the breakdown, but what about next time?

Where Any Communicator Can Effectively Play A Role.

Communicators, along with public relations professionals, have a real opportunity here to place a greater emphasis on tangible skills over manipulating public procedures. But to do it, they move beyond push marketing and puffery and embrace the much harder work that used to fall to people like my grandfather and uncle.

In many cases, they won't learn these skills from a textbook or building social media communities. It requires an ability to move from behind the desk, meet with and appreciate the men and women on the front lines, collect their input and consolidate it into a workable plan that anyone can follow.

More importantly, through their investigative work, communicators need to provide the oversight within their companies to point out where mitigation, response, and recovery is especially weak. Nothing needs to be smoothed over. If anything, people tasked with this work need to be as hard as nails, providing proper assessments to the executive team.

As I mentioned last week, bad PR is only a symptom of bad planning, I hope this helps move the conversation away from understanding and toward proactive responsibility. Communicators need not only be internal reporters, they can cut themselves from the same cloth as my grandfather and uncle.

Where Any Citizen Can Effectively Play A Role.

I might offer up the same advice to anyone. It seems apparent that while many local governments and some state governments have disaster response plans that we can count on, these plans are not scalable in the face of a disaster such as Gulf Coast oil spill, the aftermath of Katrina, the border breakdown in Arizona, or even the flooding in Tennessee.

Once they become too big for local and state agencies, the federal government is ill-equipped to respond beyond providing oversight. That means there is a greater need for citizens, each and every one of us, to have enough skills — like my grandfather and uncle did — to protect ourselves and our families in the wake of a disaster.

After all, if I was writing a family disaster plan today, the most obvious conclusion I would have to draw upon from the recovery efforts so far is that there are organizations doing all sorts of things that increase the risks to our health and happiness. And when their own mitigation breaks down, they do not have a plan to save you. We are on our own.

Considering Spin: Obama Administration

"Those who think that we were either slow on our response or lacked urgency don't know the facts. This has been our highest priority since this crisis occurred." — President Obama

Depending on whose accounting of the Gulf Coast oil spill you read, the Obama administration was either on top of the crisis from day one or it was woefully behind. The truth, as it often is nowadays, is somewhere in the middle.

The differences in how the story is reported relates to whether you include the federal government in the timeline, the Obama administration, or the President himself; whether you accept statements over actions; and whether you account for the results.

"From the moment this disaster began, the federal government has been in charge of the response effort." — President Obama

While the U.S. Coast Guard was on scene from day one, most federal agencies represented were merely overseeing BP efforts.

It wasn't until April 29, nine days after the accident and four days after the unified command inaccurately estimated the leak was spewing 1,000 barrels or 42,000 gallons a day (which was estimated at five times as much and later much more), that the Obama administration recognized the spill to be of national significance.

The reporting reveals how much of the communication would be handled from that point forward. On April 25, the unified command provided the inaccurate oil leak estimate, which included federal officials. On April 28, federal officials say BP provided an inaccurate estimate.

Meanwhile, the same press conference Media Matters uses to build its case to prove the administration was in control of the situation paints an obvious picture. The President was "following the BP oil spill in the Gulf of Mexico," the EPA was monitoring, and the secretary of the Interior accurately describes the operations as one of "anticipating," "planning," and providing "oversight."

April 29 is also the day President Obama pledges "every single available resource," including the U.S. military, to contain the spreading spill. He will visit the Gulf Coast to see cleanup efforts firsthand three days later. At the same time, almost every communication from the White House reinforces that the cleanup responsibility belongs to BP.

Almost a full month after Obama made the pledge, Bobby Jindal, Louisiana governor, said that he and other Gulf Coast governors were “taking matters into our own hands.” On June 2, Alabama Gov. Bob Riley questioned why parts of the Gulf Coast are left unprotected. On the same day, Mississippi Gov. Haley Barbour is no longer downplaying the crisis. And while Florida continues to invest in tourism advertising free unlicensed fishing weekends while it can, the fishing industry has already been called a disaster.

Worse, the Gulf Coast may no longer be the only region to be impacted. There is growing concern that oil will reach the Atlantic Coast.

And yet, during President Obama's second visit to the area on May 28, with the prospect of the Top Kill procedure working, he declared "I am the president and the buck stops with me." Shortly after the procedure failed, the President launched a public relations offensive against BP and started to see the accident as an opportunity to press for an energy reform plan.

"I'm confident people are going to look back and say this administration was on top of what was an unprecedented crisis." — President Obama.

According to a release by the Global Language Monitor’s NarrativeTracker, President Obama's confidence ought to be shaken. Overwhelmingly, the public sees the the administration was slow to respond and more than half still don't believe the administration is in control.

• 95 percent of the social media conversations characterize President Obama as "slow to respond."
• Despite what President Obama has said, 52 percent still believe that BP is in charge of the spill containment.
• Most people compare the spill to Exxon Valdez, not Hurricane Katrina, which was a natural disaster.
• The public is split in deciding whether or not Obama is hands on or hands off on this event.

So where is the middle? The federal government (specifically, the U.S. Coast Guard) was on top of the spill from day one. The Obama administration merely positioned itself as an armchair player. Politically, it seemed like the safe bet. If things went well, the administration could claim being on top of it. If things went bad, they could blame BP. The communication bears this out.

As for public perception, it has become a result unto itself. With a catastrophe this large, the only possible way the public might be confused over who is in charge is a direct result of the communication delivered by the administration. As for the President himself, his schedule suggests he is correct in that this has been his administration's top priority, but not necessarily his priority.

And now? The most obvious priority is finding the right scapegoat. Even the international press sees it for what it is, with the President's reported "rage" framed up as just another sign of weakness. BP might be responsible for the spill, but it is not responsible for a plan that reads like more spin than response.

Other Reactions Around The Web.

• Welcome to the Obama BP Spin War.
• Obama Begins Spill-To-Bill Pivot.
• Oil-Spill Spin: Who Can You Trust? (Obama Is Not Even On The List)
• James Carville Slams Obama on Oil Spill.
• How Washington Just Worsened the Gulf Oil Spill.

Making Choices: 10 Steps To Improve Oil Spill Communication

On any other day, I might pen a post much like Bob Conrad, communications officer for the Nevada Department of Conservation of Natural Resources. The oil spill is a consequence of attempting to maintain ever sprawling and increasingly complex human systems.

He's right, much like he was right to cite the 1969 Santa Barbara oil spill crisis. It's comparative in that it was the worst our country had ever seen when 200,000 gallons of crude oil bubbled to the surface and was spread into an 800-square mile slick by winds and swells. As a comparative model, it demonstrates how far we have evolved from the roots of our industrial ignorance.

"I don't like to call it a disaster, because there has been no loss of human life," Fred Hartly, president of Union Oil Co., had said in 1969. "I don't like to call it a disaster, because there has been no loss of human life. I am amazed at the publicity for the loss of a few birds."

"It is sad that it was necessary that Santa Barbara should be the example that had to bring it to the attention of the American people," reflected U.S. President Richard Nixon. "What is involved is the use of our resources of the sea and of the land in a more effective way and with more concern for preserving the beauty and the natural resources that are so important to any kind of society that we want for the future. The Santa Barbara incident has frankly touched the conscience of the American people."

By comparison, the roles seem almost reversed, with BP demonstrating it understands the consequences of its actions and has accepted responsibility to clean up the spill. Whereas the current administration for lack of a plan, has turned toward vilification.

The oil isn't the only containment that needs to be stopped. The runaway communication is equally poisonous.

Ten Steps To Improve Oil Spill Communication.

Step 1. Centralize The Spokesperson. A few weeks ago, someone else might have been better suited to be the primary speaker on the Deep Horizon Response, but today it seems clear U.S. Coast Guard Adm. Thad Allen has the compassion and captured the respect of the media. He understands that there is no time for politics. He is focused on the crisis.

Step 2. Reorganize The Unified Command Communication. With U.S. Coast Guard Adm. Thad Allen in the lead, the responsibility of communication is best placed in a cooperative role between the National Oceanic And Atmospheric Administration (NOAA) and U.S. Environmental Protection Agency (EPA), who can coordinate specific communication from other agencies as needed. There is no need to duplicate resources with multiple communication channels.

Step 3. Make BP A Principal Partner In The Response. Currently, the administration waffles back and forth from positioning BP as the response leader and public enemy number one depending on public outcry. There is no need. BP has accepted responsibility, and while its own communication seems tempered below transparency, it is exceedingly clear that the United States needs its partnership and cooperation to end the crisis. They've hired more than 20,000 people to help.

Step 4. Establish A Response Advisory Counsel. The administration should have already pooled the best scientific, environmental, and industry minds to address the crisis. They need to do it now. There are likely innovations that can be applicable in responding to the crisis, people who can provide counsel to the people on the ground, under the direction of the U.S. Coast Guard.

Step 5. Establish An Economic Advisory Committee. The full scope of the crisis has yet to be fully imagined. Some economic experts are already cautioning that the environmental disaster has enough economic consequence to cause a double dip recession as entire coastal industries have been shut down. Their warnings deserve attention.

Step 6. Save Investigations Until After The Cleanup. While some investigations will no doubt be conducted during the crisis, the emphasis of finding fault in a tragedy is a waste of resources and public attention. Rather than rally the public to smell for blood in the water, it seems more productive to channel their passion to be part of the solution. Every swipe at BP right now is a swipe at the people most capable to fund the cleanup.

Step 7. Coordinate State Action. Some point people from the Unified Command should be dispatched to coordinate regional environmental cleanup efforts with a direct line of internal communication. Given the push back on some members of the press and environmental scientists by non-BP crews, it is clear there are near autonomous groups making up their own rules. It's expected without leadership. They need to be organized and given expressed clear rules. Each state can be involved by coordinating the various local environmental groups and general public under these point people.

Step 8. Direct The Public. Fanning public anger, frustration, and outcry is useless. Instead, more effort and attention need to be coordinated to provide the public with productive action. The bigger picture, beyond political posturing, is that the country is faced with an environmental crisis with consequences that can only be guessed at. Everyday heroes are being made daily as they clean up the spill.

Step 9. Kill The Politicizing. One of the worst communication atrocities made during this crisis to date was a feeble attempt to rub the spill into the noses of those who believe in a limited government. Comments such as "See, you need us now" is a childish comparison to government interventions such as banning Happy Meal toys. This type of crisis is precisely where the government is supposed to take a leadership role in contrast to the encroachment inside our homes.

Step 10. Be Responsible Instead Of Repugnant. When a crisis like this occurs, the knee jerk reaction is to over regulate in response nowadays. Lack of regulation didn't cause the oil spill, but it seems apparent that a breakdown of regulatory oversight contributed. Responsible action would be to reform agencies after the crisis rather than eliminate their ability to function by restructuring them during the crisis.

The Gulf Coast Oil Spill is a tragedy. It is the worst environmental disaster in the history of the United States. However, let's keep in mind that the "worst" line has been crossed dozens of times before Deep Horizon. And while it is unfortunate, it is also very likely they will be crossed a dozens or more times in our future despite any regulatory bodies and safety measures put in place. That is the price of nurturing massive human systems.

Even so, while we cannot control the crisis we might face as individuals, industries, or nations, we can always manage how we react to them. Simply put, the response to a crisis need not be as tragic as the crisis itself. That is a choice. In the past, our nation has had dozens of leaders who made the right ones. Nowadays, we can only hope. But it doesn't seem likely.

Lacking Leadership: Minerals Management Service

With the Obama administration facing its first crisis without a discernible opponent to discredit, House Speaker Nancy Pelosi recently offered up one solution. Blame Bush for the Minerals Management Service, which is the regulatory agency that oversees offshore drilling.

This time around, the excuse seems as desperate as her disgust over being asked whether she would donate hair to help. The reason her allegations seem disingenuous only requires a quick review of the facts.

Minerals Management Service Backgrounder

In the Gulf Coast, the Minerals Management Service (MMS) is partly responsible because it was the one agency that could have pulled the plug on the bad decisions being made. The agency didn't. Even when BP sent unusual rapid-fire requests to modify permits, the agency seemed to keep pace, approving some within as little as five minutes.

Neither BP nor Transocean has commented on the permit changes. And despite the promises of an administration to be more forthcoming and transparent, MMS declines to comment too. Perhaps nobody is talking because they all know the risks.

Sure, MMS had a track record of problems that came to light after the inspector general published a devastating report in 2008. The report revealed ethical lapses related to the MMS royalty collection program and officials at its Lakewood office who had engaged in drug use and sexual activities with industry insiders. But those problems do not necessarily lead to the crisis.

Contrary, according to previous statements from Secretary of the Interior Ken Salazar, the agency had already been beaten into submission with reprimands, terminations, and criminal prosecutions. Salazar himself took the lead in reforming what he described as a corrupt culture. But after his house cleaning, it seems Salazar failed to fix the damage.

As soon as Elizabeth Birnbaum, who recently resigned, took charge of MMS about 10 months ago, she found a demoralized agency ill-equipped to meet the new priority of renewable energy. Clicking on the link to the MMS DOI Strategic Plan seems to confirm it. The return reads "file not found."

While there is no plan, it does seem Birnbaum cared and was trying to manage the leaderless agency, funneling most of her energy into offshore wind projects in the Atlantic. And, she wasn't afraid to speak on the Gulf Coast crisis. In fact, she was preparing to testify before a congressional panel about the agency's role in handling BP's massive oil spill in the Gulf of Mexico. But Salazar's office didn't want her to testify. She resigned shortly after.

The Missed Opportunity For MMS

Despite its own negligence that contributed to the Deepwater Horizon crisis, standard communication protocol would have called for MMS to take charge of its communication much like the U.S. Food and Drug Administration took charge of the crisis created by the Peanut Corporation of America (PCA) in 2009. So why didn't it?

House Speaker Pelosi already provides the answer. Allowing MMS to become the point team on the crisis communication would have circumvented the administration's ability to deflect responsibility.

So instead of MMS (or the EPA as an alternative) taking the communication lead, the Department of the Interior all but silenced MMS before proceeding to break it up into parts. In place of a centralized communication channel, like we saw with the FDA or even FEMA in the wake of Katrina, the public is given a collection of sometimes contradictory statements about the crisis and who is in control.

Even at the special Deepwater Horizon Response Web site, it is unclear who is responsible for managing the content. It's every agency for themselves. There is no leadership.

Sure, the Deepwater Horizon Response site includes the 15 different agencies and companies that make up the Unified Command, but it does not assign any particular agency or company responsible for updates. While U.S. Coast Guard Adm. Thad Allen is now identified as the national incident commander, he was also the first to honestly admit that the federal government was not broadly "in charge."

It was this candid, honest response that prompted the American Spectator to call him the only adult on-scene commander for this disaster. Clearly, he ought to be charge if for no other reason than to stop the non-communication coming from Department of Interior, The White House, and other agencies. (Even this weekend, I received a news release from the EPA with nothing more than a visitation tally count among the President and other cabinet members.)

Why all the confusion? The reality seems to be that no one is in control of the spill or the cleanup. And the sheer lack of a centralized communication plan can only be indicative of a top-down failure to establish any centralized leadership.

The international community is just now seizing on this fact, noting that U.S. authorities took unnecessarily long to define the incident as a national disaster and failed to appreciate early enough that BP had no ready and obvious solution for stopping the leak. For them, it's all too obvious in the speeches being delivered by President Obama.

Obama seems to be waffling on whether to call BP a partner or public enemy number one. In one speech, he even drove home the point that his administration was in control but then stressed BP was letting him down as it called the shots. It can't be both. Or can it?

As investigations continue, the administration can expect the questions will become more and more difficult. The international community is already asking why the Obama administration was poised to open up more offshore drilling when they weren't confident in the regulatory agency overseeing it and without an emergency oil spill response plan.

So far, instead of answering those questions, President Obama has pledged to bring those responsible to justice. Ironically, such a move might include his administration; if not for the leak, then for the containment of it.

A special thanks to Geoff Livingston for inviting me to discuss some of these issues on his online radio show, EL Show, today. Tomorrow, we'll present some ideas on how the administration could attempt to turn the crisis communication failure around.