Posts Tagged ‘evaluation’

Words, Actions Both Matter, Right?

Monday, August 31st, 2009

A friend of mine, Big D, is a highly educated and experienced business person who happens to work in PR for a large, international company. I wrote a post not long ago on the limits of communication in business, specifically about the “say-do” gap that exists in many organizations and the need for management problem-solving to address it.  Big D wrote me a fascinating email to disagree with what he termed my assertion that “communication is inferior to action in structuring perceptions,” saying: “The words we use are strong/they make reality.”

I don’t disagree that words are important – in fact, there is a whole theory of public relations (Rhetorical) that supports that statement. I answered him, saying in part: “Behavior is a demonstration of values; language is limited in its ability to demonstrate.”

Both the Rhetorical Theory and much general communication theory are at odds with Excellence Theory, Big D says. Excellence sees public relations as a management function, which necessarily separates the tactics of public relations from its strategy, “this idea that communication is one thing and an organization’s action/behavior is something else.”

I made the argument that language can’t bridge the “say-do” gap if the behavior in question is oppositional to the language, and provided an example of an organization claiming that it values its employees and communities, having a problem if it is engaged in laying off employees and closing plants. Big D replied:

I disagree. Granted, the communication challenge in sustaining that identity claim is greater and the communicator must be smarter and work harder, but a company can indeed lay people off and close plants and still credibly state that it values employees and communities. It happens all the time, and it happens because of the ways in which communicators can influence elements of context and shift the agreed meanings represented by words like “values,” “employees” and “communities.” That’s the magic of the artful use of discourse (or call it strategic discourse, if that’s more marketable). (emphasis mine.)

We often call “influence elements of context and shift the agreed meanings” reframing. Non PR-people call it spin, mostly inaccurately, but still, they aren’t complimenting us. I counsel leaders to avoid words and phrases that can too easily be labeled spin, and be subject to the perception of the say-do disconnect. The “artful use of discourse” is (and should be) a stock-in-trade for any communication professional, and we should beware of reframing ourselves straight into propaganda.

Big D goes on to say that when a country’s leader says, “I value the lives of the men and women in uniform who are willing to sacrifice everything to keep our country free,” sending them to die on the field of battle will not invalidate his/her claim, depending on is how effective the leader is at controlling the meanings of the words in the statement.

This seems relativistic – again, I wouldn’t counsel a leader to say those words, as the claim seems specious at best, if not outright insulting. The leader values the work the soldiers do and the results they will attain more than their lives – he or she has to, otherwise there is little chance he or she will deploy troops in combat. There are political leaders who do not see the value in this sacrifice.

There are many ways of aligning these two seeming contradictions. In fact, Prof. Robert Heath writes in his discussion of Rhetorical Theory that “Cynicism is the outcome of any rhetorical process that is not founded on good reasoning or good reasons.” We absolutely do need to choose our words very carefully because of their ability to create perception and contribute to the development of meaning.

More from the discussion with Big D in the next post.

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Holtz, Murray SocMed Discussion Touches on Measurement

Friday, August 21st, 2009

Erstwhile commentator David Murray (recently named editor of Vital Speeches of the Day; congrats!) has written about his struggles with the demands of social media, the Twitter, Facebook, LinkedIn and gosh-knows-what’s-new, appealing to Internet pioneer Shel Holtz for help.  Shel answered David’s flare and David has since replied on Shel’s blog. The conversation briefly examines the need for social media measurement, and I’ve added a comment to the polite fray.

The substance of my offering is that social media measurement should not stop with output, or the immediate result of the output (Web traffic, comments on postings, etc.) It should, as with any other communication activity, show some kind of impact on business objectives, whether financial or reputational.

Read the Murray-Holtz material and weigh in — is it reasonable to hold social media to similar account as other communication tactics?

Follow David on Twitter @TheMurr; Shel is @Shel. I’m @CommAMMO.

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Handling ‘No-Win’ Media Stories

Monday, August 10th, 2009

The Taliban resurgent in Afghanistan.  The U.S. House wants to spend $550 million on new jets for themselves. Banks fork over billions in bonuses after receiving trillions in U.S. taxpayer funds.  How’d you like to be the PR folks who need to handle those issues?

When I was relatively young in public relations, our top-five execs were poised to gather up a prodigious pile of cash, stock and options — they hit their targets, and then some, for the year.  The main way they’d done so, however, was to cut headcount by 10 percent across the board.  Preparing the internal communications for that proxy release (which would include the compensation details) wasn’t an easy task.

There were good business reasons for the compensation strategy, not the least that there were contractual obligations — they were owed this compensation. The packages had all been vetted by the compensation committee of the board of directors, comprised only of “outside” directors — people who weren’t also employees of the company.  The goals for the year were bottom-line oriented, aligning the interests of the executives with those of the shareholders.  A substantial amount of the dollar value of the pay was long-term compensation — three years’ deferred. And, the largest portion of the package was in restricted stock and stock options, both of which were designed to keep high-performing executives at the company for several years.

After reading the proxy, I felt reasonably comfortable with the reasons for the high pay.  I wrote a paragraph not too different from this last one in a questions-and-answers document for managers, answering the question, “Why did these executives get such high compensation?”

The corporate treasurer called me, with a smile in his voice, and said, “This is an argument you can’t win. Let’s not try to explain the reasons for the packages. Just say that there may be questions as a consequence of news media coverage and refer interested parties to the Proxy.”

I was pretty disappointed.  I’m a fan of sharing the reasons behind decisions. Of course, the danger here was the snicker factor.

The snicker factor is the likelihood that that people will snicker when they read the explanation, that the intent of being transparent and honest will instead be seen as spin.

The reality is that executive pay is a tough story. The reality is that contracts tend to insulate execs from downside risk, that the independent directors are execs at other firms, their motives suspect… You can almost hear the conversation around the water cooler, visualize the Tweets… “Yeah, right! These guys all take care of their own, they’ll do anything to get their piece of the pie, what do they do around here, anyway?”

Do we only explain if there is a likelihood of winning the argument? That certainly would simplify the measurement of our efforts in these matters. By the way, I’m aware of at least one company that, as a matter of policy, separates proactive and positive PR from reactive and negative PR. They feel like they have a great track record and lots of positive reinforcement.  It’s not exactly what the Excellence Theory calls for (two-way, symmetrical), but it has its fans.

For another firm, staying out of any no-win story was the primary objective, and they did (and do) a fine job of it.

As long as we define our function as one of advocacy — and are above board about it — this makes perfect sense.  In those circumstances, we adopt the model that calls for non-participation if there is no objective benefit to our organization. We increase reputation risk by not participating, but perhaps that’s the main question: How risky is participating and explaining compared to staying away from such controversy?

It seems to me to be a question of certain risk versus uncertain risk — we know the snicker factor will kick in if we participate. We don’t know what will happen if we don’t.

Avoiding the devil you know can be a compelling strategy. What do you think?

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Does Social Media Engagement Link to Financial Performance?

Tuesday, July 21st, 2009

Charlene Li of Altimeter Group and co-author of social media book Groundswell, released research that appeared to show a correlation between engagement with social media and a company’s financial performance.  “The study looked at how the 100 most valuable brands — as identified by the 2008 BusinessWeek/Interbrand Best Global Brands ranking — engaged in 11 different online social media channels,” Li’s blog read yesterday.

The research said that the companies most engaged, dubbed Mavens, “on average grew 18% in revenues over the last 12 months, compared to the least engaged companies who on average saw a decline of 6% in revenue during the same period. The same holds true for two other financial metrics, gross margin and net profit.”

Sounds great! Wow!

Only, there are a few folks who aren’t wholly convinced.

Larry Dignan, writing on the Between the Lines blog on Znet, isn’t convinced at all. In fact, he says “Color Me Skeptical,” pointing out that the companies listed as Mavens “haven’t exhibited stellar financial performance in the last 12 months. Starbucks, a maven, has had its margins blown apart by McDonald’s, a wallflower. Dell is quite social, but needs to transform itself in a company that looks more like butterfly HP. eBay? Investors aren’t exactly stoked about the auction site’s growth social media aside. In fact, a lot of the revenue growth is challenged among the mavens.”

Li’s post makes it clear that they’re not claiming the research is causal — but how many people understand the difference? Additionally, I looked for but could not find the R-Squared value for the correlations, which would have given a better indication of the strength of correlation. The report says “statistically significant,” and the chart of the three financial metrics certainly implies strong correlation, at least with the Maven group. The charts on engagement are scatterplots with regression lines in place, but the financial charts are simple bar charts…

And, what of other factors contributing to the higher revenue and gross and net margin figures? The assumption is that social media engagement is responsible for the increase — what if it’s the other way around?  It’s possible that with higher revenue and margin, the companies dedicated more resources (either human or financial) to the engagement effort. The report notes that the higher-engagement groups tended to feature robust teams. Chicken or egg?

Aside from the geeky caviling, I’m by nature quite skeptical of reports such as this (with deep respect, please). Those conducting the research have a vested interest in these conclusions — it really wouldn’t do to show research that says social media has no financial impact when your business depends on the reverse! This area desperately needs additional, scholarly research — using advanced stats to look at as many factors as practical would yield better insights.

For now, I’d pull out the salt shaker before taking this to much to heart.

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Got PR Measurement? Grab a ‘Golden Ruler’

Thursday, July 16th, 2009

If PR research and measurement have been part of your strategy during the past year, enter the Jack Felton Golden Ruler Award for Excellence in PR Measurement & Evaluation.  The award recognizes superb examples of research used to support the public relations practice. Winners get applause at the Institute for Public Relations Summit on Measurement, in October in Portsmouth, N.H.

Better get a move on, though. The deadline for entries is August 15th.  Here’s How to Enter.

Need more inspiration? How about Padilla Speer Beardsley’s Winning Entry 2007 or Shell’s Award Winning Entry 2008.  There are more on the site. But what about social media? Well, there you go!  Got a great story to tell on how you measured social media effectiveness? Get on it.

There isn’t a better resource for information about bridging the gap between the science and art of PR than the Institute for PR. I’m a member of the Commission on PR Measurement and Evaluation, which has done nothing at all for me except transform my professional existence.  I’m no stat-head, but my entire perspective on communication strategy has been immeasurably improved by learning about the measurement and evaluation stuff.

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PR News Measurement Conference an Interesting Event

Thursday, June 4th, 2009

More to follow on this, but I had the fortune to join Ogilvy’s Michelle Rios and Tim Keefe of JP Morgan Chase Card Services on a panel on internal communication measurement yesterday.

The conference was filled with interesting information and hindered only slightly by fairly large panels that required individuals to spend just a few minutes speaking. Otherwise, it was terrific — I’ll report on a few of my favorite presentations in upcoming posts.

Meanwhile, thanks and kudos to my co-panelists, moderator Courtney Barnes (PR News Editor) and that august publication for putting on a great conference.

Here’s a thumbnail:
Angie Jeffrey — Institute for PR Measurement Commission colleague and VMS research and measurement maven — talked about a new way of looking at advertising effectiveness. Linda Locke of Mastercard showed off some very impressive metrics. Matt Gonring of Gagen MacDonald was his usual inspiring self as he called for integrating engagement metrics and other business data. There’s much more. See you later.

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Effective Management Needs Effective Communication

Monday, June 1st, 2009

It seems like such an easy management win. Not liking the numbers early in the quarter? Time to sharpen the knives!

Too many times in my career I’ve seen executives react to lower than expected revenues and/or higher than expected costs by cutting their marketing and communications budgets. It’s seen as a no-pain action: The principals don’t have much juice to stop the slashing, the budget gap closes a bit, and everyone knows about “our sacrifice.”

The problem is that during hard times — we are waist deep at least in a global recession — should be the times when we make the most investment, taking market share, enhancing organizational reputation and demonstrating to employees that we’re in it for the long haul.

Worse yet, organizations tend to handle budget crises poorly, with executives hiding out and managers left repeating media speaking points that don’t address employee concerns. Here are three suggestions:
1. Don’t make decisions that gut long-term capabilities to close short-term budget concerns. In a volatile market, things can change quickly. We want to be ready to take advantage, not hamstrung trying to catch up.

2. Address the specific budget issue with targeted action, not across-the-board cuts. When I worked at KeyCorp years ago, every year, it seemed, we had a new program to cut costs. The only sustainable reductions came when leadership changed the strategy of the company — its overall mission and vision — and then adjusted the enterprise to fit that new strategy. Never use a “peanut butter” approach to cost cutting, it typically doesn’t work.

3. It is reasonable to change the communication strategy to fit the new reality — measurement and evaluation is critical to this process. If you don’t know what works and doesn’t work, you fall back on the jar of peanut butter for your approach. Other departments know their specific contributions to the bottom line, and so should we.

How prepared was your leadership team to communicate with its various constituencies during the financial crisis? They need to know how to prioritize audiences by business objective, choose the right messages and transmit the messages through the right vehicles. As the internal experts on communication, it’s up to us (to use the contemporary phrase) to Represent communication as a business process. Let’s get on it.

P.s., if you’re attending the PR News Measurement Conference in DC this week, find me. I’m on a panel on internal communication measurement in the afternoon.

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