Working In A Bubble

There has been ample discussion about transparency, as it relates to blogs in particular, but it seems to me corporate transparency is optional, and best left to the discretion of each individual company. You see, I don't subscribe to the notion CEOs shouldn't blog. I think it depends on the CEO and, more importantly, the company's business strategy.

It seems to me the only problem with corporate transparency is the number of CEOs that try it without really understanding what it means. Worse, few consider that working in a bubble might be a different environment all together, becoming a public figure aside.

Maybe the answer to the question, whether to blog or not, lies within a seemingly unrelated question. How prepared are we to manage our reputation once we gain transparent visibility?

It's tricky stuff, doubly so if you have any hope to keep your message consistent. Here are 8 basic questions (I collected them from several experts and executives over the years) to ask about your corporate reputation management, adjusted a bit to skew toward CEO blogs.

1. Can you keep your focus narrow and potential issues manageable?
2. Are you willing to take responsibility (not necessarily accountability) for all employee actions and outcomes, even those outside of your control?
3. Will you maintain a positive, assertive, calm communication style that focuses attention on the most important aspects of any problem?
4. Are you willing to move toward resolution despite any negativity, including antagonistic reporters and crazy bloggers?
5. Are you ready to concede that if your local disaster becomes regional or national, that it is totally your doing?
6. Do you realize that your actions and posts will influence those around you and have an impact on your reputation and the company?
7. Are you prepared to answer tough, probing, and sometimes trick questions from not only the media but also anyone who happens by?
8. Are you willing to share your ideas internally or with consultants prior to posting in order to ensure everyone is on the same page?

If you answer no to any of these questions, then you should probably stay out of the business of blogging. Of course, if you answer no to any of these questions, your company is operating without any concern for reputation management anyway, and sooner or later you'll learn the hard way (these questions apply to picking a company spokesperson too).

Having worked with CEOs and, even more maverick, politicians, I can safely say that the decision to be transparent or blog is an individual question. As many as I have advised to blog, there are dozens more I have advised not to blog. For each, I base my advice on whether it makes strategic sense for the company and if the CEO (or anyone for that matter) is fit to be a blogger.

Or perhaps I shouldn't say "blogger" given the industry push to change the term. What is a blog? Seems to be a lot things to a lot of people, and I don't think narrowing the definition will change that.

Of course, if we are all going to make our companies "bubbles," I propose a new occupational title: "window washer." Just kidding.

Managing The Message

“I still feel like a passenger on that JetBlue flight that's watching helpless on my seatback satellite TV as the plane I'm on makes a crash landing,” said one Jobster employee about the recent interest in Jobster, fueled largely by one of the most horrifically handled communication accidents in recent memory. Unfortunately, unlike JetBlue, not all passengers will be landing safely.

According to Jobster, the reorganization to better align its business to focus on the most efficient sales and support channels, as well as its Website, will result in the loss of 60 positions, primarily those supporting in-person sales and support efforts. From a communication perspective, Jason Goldberg and Jobster — which maintains their first priority was to inform affected employees who were left waiting for days to learn their fate in between ill-advised blog posts — lost much more than that.

Although it reads as one of the better posts ever presented under Goldberg's byline, one that causes me to sincerely hope Jobster's smaller and more focused vision for 2007 will return the company to the start-up success story it was in 2004, I wonder if it will be enough to erase the reputation damage it endured externally and employee morale flogging it weathered internally.

You see, reputation management, which includes crisis communication as noted in my last Jobster-related post, can be equal to if not superior to a successful product. When you lose control of it, which is relatively easy to do, it's difficult for anyone to believe your next message.

If we subscribe to the ideal that it takes 80 impressions to make a message stick (and that negative impressions are eight times more impactful than positive messages), Jobster's rebranding as a company and employer that can be trusted will be a difficult, though not insurmountable, task in the year and years ahead.

The reasons are simple enough. As much as we (especially those of us in the advertising and communication field) would like to believe that we control the definition of our company or clients' companies, we really don't most of the time.

Instead, companies are defined by everything executives and employees communicate about themselves daily (whether written, spoken, or by action); everything executives and employees say about the internal working environment; everything others (from members of the media and bloggers to customers and competitors) say about the company, whether real or perceived; and everything other companies (primarily competitors) say about themselves, which causes people to wonder if the company measures up.

At the end of the day, you add up all these messages and therein lies the "real" (not self-perceived) definition of a company. While there are strategies in managing all these messages, most companies or even advertising agencies do not know where to begin. I'll work harder at sharing some insight here and there for those who care to know; most answers take longer than the single confines of a post to appreciate (and that's not to say I have all the answers), starting with eight questions to ask yourself if you are managing your reputation, which I'll share tomorrow.

To all the other social media experts and bloggers who have contributed to (and will continue to contribute to) this living case study, my gratitude. To all the folks remaining at Jobster who read my posts, I sincerely hope you did not find my criticisms and comments too harsh, but an attempt to provide objective commentary. To Jason Golberg, I hope you keep up honest blogging, perhaps though, with a bit a more sensitivity to the message you want people to read. And to all those who are being asked to leave Jobster, this too shall pass. Good night and good luck.

Reading Minds Online

Whether you know it or not, you probably have a ZEDO cookie in your browser (go ahead and look). Most people do.

ZEDO cookies are relatively harmless, put there by Silicon Valley's largest ad serving company. They track billions of online ads per month and their services are evolving.

Today, ZEDO announced the newest solution is a profile and behavioral tracking system that allows publishers to determine and prioritize up to 1,000 demographic tags and activity tags. In sum, a 25-year-old male snowboarder who earns $45,000 per year and a 35-year-old female lawyer who earns $120,000 a year can be served two completely different automobile campaigns when they are reading articles about cars.

What does that mean? For consumers, it means future Website advertising will become extremely personal. For those in advertising, it means you have another reason to up-sell your clients by producing multiple campaigns based on narrow demographics. And for online privacy advocates, it means marketers gathering too much personal information. For ZEDO, according to Roy de Souza, it means “Our new system is the first of its kind and ensures visitors are served ads they actually want to see. This benefits users, publishers and advertisers."

For the rest, it simply means thinking twice before you lie on a Web publisher survey. Not really. Your profile and behavior will simply be determined by which sections you click through, which may make you think twice before clicking hot topics.

Managing Bad News

Happy New Year!

Last week, I offered to provide some basics in managing bad news when faced with a situation like Jobster as part of a living case study in communication. (Spoiler: If you're looking for dirt, I am sorry to disappoint. You can find plenty of nastiness on Jobster's own blog.)

Perhaps James E. Lukaszewski, APR, of The Lukaszewski Group (one of the most quoted crisis communication management consultants and prolific authors in the field), said it best during his speech to the Canadian Investor Relations Institute in 2001: In the era of instant communication, people will likely bet against you when trouble comes. "Your ability to understand and communicate with confidence in real time with constituents will be the key to winning the perception struggle that crisis always creates," he said.

He is spot on of course. With the exception of crime, malfeasance, or environmental catastrophe, most crisis communication situations are all about perception, and this seems to be the area where Jobster has struggled the most.

You see, downsizing, unfortunately, is part of business when companies are not performing as expected. There is nothing wrong with it, other than the unfortunate impact it has on people. Most people understand this and most CEOs lament the decision, which means companies are generally judged solely on management's handling of layoffs. This is also why I suspect Jason Goldberg's decision to blog about upcoming changes before clearly communicating all the details to employees (just prior to the holidays) was met with such widespread criticism.

Why? First and foremost, he didn't seem to understand he was in a crisis communication situation. Usually, crisis communication situations are identified by one of the following: a dramatic drop in stock prices, a member of management is indicted, outside activists attack the company, acquisitions/mergers/takeovers, anti-corporate government action, and the one that is hardest to identify but best applies here — founded and unfounded rumor.

It doesn't make a difference whether a rumor is founded or unfounded, both can have equal impact on a company's reputation and it is up to a CEO to manage them, with or without the advice of communication specialists (not necessarily public relations practitioners). If they do not, they run the risk of demonstrating that they are not leaders, but simply managers. The difference is that managers generally run an organization by the numbers (try to make the forecast or exceed it at all costs) whereas leaders lead through inspiration, motivation, strategic vision, and people management.

When faced with bad news or a crisis, assuming management recognizes it as such, the best leaders will always consider the following (a sliver from my playbook) once the founded or unfounded rumor surfaces:

• Talk about it as soon as possible.
• Tell the whole truth, even if it means bad news, negligence, or wrongdoing.
• Be clear and concise, addressing details without obscuring the situation.
• Offer full disclosure of all relevant facts, history, and related information.
• Demonstrate empathy or remorse as appropriate to the situation.

By all counts, it seems to me that Jobster did none of these things. They did not seem to consider that, in today's world, communication has an impact on ALL company publics very quickly (employees, shareholders, media members, customers, etc.) and each of these publics will react to information differently. They did not seem to consider most people have gut reactions before listening to the facts and background or waiting for post-holiday explanations. They did not seem to consider that all information, no matter how contained it seems, will eventually be released by someone. And they did not seem to consider that the media, people like the Seattle Times, will frequently turn to additional sources for opinions and comments when management avoids an issue, which could further erode the reputation of the company.

Suffice to say, even if Jobster finds a way to keep every employee (I hope they do, and am sorry if they don't), how the rumor and supporting evidence was managed will still have a negative impact on the company, especially on employee relations. Sure, they don't teach most of this in many MBA programs, but the most experienced leaders in today's business world learn it anyway, either the easy way from "handlers" as they are called by Goldberg, or the hard way.

Given that reputation damage most often occurs from the inside out, I sincerely hope others learn from this living case study. History does not have to repeat, even though it almost always does. Companies are fragile things. Treat them wisely.

In conclusion, I would like to mention that there has been much criticism over whether people should be discussing Jobster at all. Sorry, but I have to disagree. Jobster executives and team leaders have to appreciate that no one but no one gets to choose what others find newsworthy or interesting. On the contrary, you invited bloggers and members of the media to take an interest in the company from day one. You cannot "uninvite" them.

That, in essence, is what public relations (just one aspect of strategic communication) is all about. It's about managing communication, perception, and reputation in good times and in bad. Never should a company expect one without the other. That would be silly.

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!

Knowing When To Post

Jason Goldberg is an Internet pioneer of sorts, not only for developing Jobster (one of the first employee recruitment search engines), but also for starting one of the first truly transparent corporate blogs three years ago. It has never been as polished as some corporate blogs, but Goldberg seems to prefer it that way and it seemed to work, er, until now.

The main reason Jobster has suddenly resurfaced on everyone's radar is because the company, the biggest new Internet company in Seattle, recently instituted a hiring freeze, which venture blog writer John Cook says is a sign that the company may have grown too big too fast. Shortly after, rumors began to surface that the 145-person company would announce significant layoffs.

Although a minor communication crisis was already brewing, Goldberg made it big with a post that asked people to "put down your pencils .... calm it down, relax a bit, and have a nice holiday. We've got no news to give ya before the new year."

From an internal communication perspective, posting this was paramount to the captain of the Titanic asking passengers to refrain from dropping lifeboats in the water until the ship's quartet finished his favorite song. To make matters worse, Goldberg added a post to justify Jobster's future decision to focus on profits in 2007. And again, he asked people to wait for answers.

"why would a young company like jobster care about profits? hmmm... vs. many of the dot com companies not too long ago who didn't? many answers to provide here ... will have to wait for now. but in the meantime I will point to a few big things ..." and goes on to list four of them.

No, there is nothing wrong with streamlining a company to become more profitable, but it is usually a good idea to let your employees know before the rest of the world. Not to mention, asking them to "have nice holidays" before facing major layoffs is almost too painful to post about.

Will there really be layoffs? According to an e-mail, again published by Cook, Goldberg writes: "What I can say is that the changes we will make are 100 percent voluntary and (management) proposed (versus) board dictated."

All this news and continuing updates from Cook has created a second wave of criticism about Goldberg and Jobster. It's unfortunate because this could have been handled better. One of the first golden rules of any crisis communication situation is to deal with the most urgent and critical matters as early as possible. In doing so, the spokesperson or CEO must be direct, decisive, and empathetic to anyone who could be negatively affected by the bad news.

Instead, Goldberg, apparently panicked and without the aid of a seasoned communication professional, wrote from his Blackberry: "I made a personal pledge to be a very public and open CEO, knowing that it could come back to bite me sometimes. I promised to speak my mind and provoke and prod the industry a bit, again knowing that it could open me up to greater criticism and sometimes backfire."

He went on to encourage his readers to read all about the "beating" he received from comments made by anonymous posters on Cook's blog. "Rather than run from it, I encourage folks to go read it."

Um, Mr. Goldberg, please, please stop throwing kerosene on the deck of your sinking ship and you just might save it yet. You see, there is a difference between being a very public and open CEO and one who is empathetic to his employees, investors, and fans.

Lesson for today: Don't tease with bad news, lead with it. It's not fun, but at least it's manageable.