Recognizing Reader Picks: Top Posts Of 2009

With the new year upon us tomorrow, we would like to say goodbye to 2009 with a recap of this blog's five most popular communication-related posts, based on the frequency and the immediacy of reader views after posting.

"What Would You Do If You Weren't Afraid?"

It is probably no surprise that our call for business leaders and government officials to change their communication struck a chord with consumers and communicators. After all, if we were to pick one word to summarize a common theme in 2009, it would be fear.

The message behind the post, which was part of a three-post series, was simple: if you want real change, you need hope over helplessness. And since most "leaders" seemed to struggle with the concept, we advised our friends and readers to ignore them and set out to find their own cheese. We're glad some people did because our government continues to push fear.

Related Labels: Psychology, Economy, Leadership

The Candy Gamble That Didn't Pay Off

For all the buzz-up Skittles earned in early March, nobody is really talking about the rainbow colored candies anymore. After the initial drunken rush of excitement generated by a Skittles experiment that turned its Web site into a collection of social media streams written by consumers, most people woke up with a hangover.

Within 48 hours, 44 percent of the public was left with a negative impression of the candy for trying too hard to be "cool" and eventually demonstrating it and the agency behind it were really clueless about social media. Effective branding, marketing, and social media require much more work than simply "turning over" a brand to consumers.

Related Labels: Skittles, Social Media

Communication Measurement For A Return On Investment

With so many conversations revolving around about how to measure a return on investment for social media and communication in general, we decided to share a formula that we've put into practice in order to measure a return on communication.

[(B • I) (m+s • r)/d] / [O/(b + t + e)] = ROC

Since January, more than 10,000 people downloaded the abstract from our Web site. And, after the initial post, the ROC series that followed remains one of the most popular published here.

Related Labels: ROC, Strategic Communication

Peanut Corporation of America Poisons Public Relations

The Peanut Corporation of America's handling of public relations after causing a salmonella outbreak will forever be remembered as one of the worst crisis communication scenarios in history. For almost three months, the Peanut Corporation of America (PCA) tried to spin its way out of any responsibility for contaminating as many as 2,100 peanut butter products.

The crisis eventually ended with the company filing for Chapter 7 bankruptcy, after the FDA and several investigations finally concluded that the PCA acted with gross negligence and was responsible for sickening over 600 people in 44 states and Canada. The contaminants were also linked to nine deaths.

Related Labels: PCA, Crisis Communication

How Publicity, Public Relations, Social Media, Marketing, And Advertising View Publics

Published in two parts, we presented a model of how publicity, public relations, and social media and then marketing and advertising tend to view their publics. Both posts seemed to hit a home run in pinpointing why there are varied views on how to approach social media.

We remain vigilant in our belief that social media is best viewed as a new environment that deserves an integrated methodology incorporating all means of communication. From our viewpoint, integrated communication seems to be the best source to develop effective methodologies.

Related Labels: Social Media, Public Relations, Advertising

Five additional topics that came close in 2009

• Where Edleman PR sometimes misses on the finer points.
• How spontaneous online debates can sometimes trip up experts.
• A satirical view covering everything silly in social media.
• The ugly truth about some online consumer reviews.
• How to demonstrate authenticity without actually saying it.

When I first started this blog in 2005, I used to lament that the biggest mistakes always seemed to overshadow the best practices. That seemed to change in 2008 as we accomplished a healthy mix of both. This year, communication models and theories have helped provide a better blend of communication-related topics. It makes 2010 seem even more promising.

In closing out 2009, I would like to extend a very special thanks to everyone who joined the conversation on this blog or across any number of social networks where the discussion tends to take place more frequently than in the comment section.

If you are one of the 3,500 subscribers or someone who visits on an occasional basis, I cannot thank you enough for making 2009 one of the best yet. It makes a difference to me, it's appreciated, and I'm grateful for having crossed paths with so many people online and in person.

Counting Consumers: Consumer Reports

If anyone is looking for more evidence that The Futures Company might be right in predicting a dramatic shift in consumer conscience and confidence in 2010, the newest Consumer Reports survey seems to support a portion of it. Consumers are spending slightly less and are less willing to take on debt during the holidays.

Highlights From Consumer Reports Survey

• Consumers traded in unique finds and specialty stores for mass merchandisers (41 percent), online retailers (39 percent) and department stores (21 percent). The primary reason given was bargain hunting.

• Consumers are increasingly using cash as a primary form of payment (76 percent), with debit cards (51 percent) and credit cards (48 percent) falling by a wide margin.

• Consumers who are using charge cards intend to charge less ($636 vs. $723 in 2007), and plan to pay off any debt faster than previous holiday seasons. Last year, 61 percent had paid off holiday credit card debt by January; only 27 percent carried that debt beyond March. And 13.5 million Americans still carry 2008 holiday debt.

• Consumers are planning to purchase 15 gifts, with women out-spending men 16 to 13. Most of these gifts are classified as practical.

• Consumers are planning to shop between Christmas and the new year, with almost half taking advantage of post-holiday sales (81 percent) or purchasing gifts for themselves they did not receive (69 percent).

Overall, consumers planned to spend less on gifts. While spending plans are down, the holiday season has been welcomed by retailers. The Retail Index, which is a component that measures purchases made in November, rose 24 percent at the start of holiday shopping. This is despite consumer sentiment being low, as few have experienced financial improvement during the last six months.

What retailers and advertisers might glean from holiday shopping patterns is that consumers are focused on making smarter purchases, less willing to take on debt, and more likely to respond to common sense-driven marketing messages over affluence-driven purchases. Almost 80 percent also relied on social media for recommendations from friends and family and to find better deals, even if they made their purchases off line.

Predicting Trends: Ad Agencies Brace For 2010

Earlier this month, David Poltrack, chief research officer for CBS, predicted broadcast advertising revenue will increase 5 percent next year. Poltrack made the case that with the exception to some cable networks and NBC paying too much attention to overnight ratings, an increase in broadcast ad buys is good news for agencies.

While this might be good news for advertising agencies, Martin Sorrell, CEO of WPP Group, isn't as excited about incremental improvements. Like Sorrell, several holding company CEOs are pointing to extreme client cost-cutting as the main reason they expect flat organic growth in 2010. Most predict broadcast ad spending to increase less than one percent. Sorell himself said that an economic recovery is the only thing that will reverse the trend.

"I don't understand this degree of optimism. Basically, things are less worse than they were," he summed last week.

So which is it?

Brian Morrissey, writing for Adweek, presented an interesting perspective that finds the balance between marginal growth and no growth for advertising agencies. It might not be the economy. It might be a fundamental shift in the kind of agencies winning accounts.

"Yet the general expectation is that the number of these jobs will increase, particularly as digital initiatives become core not only as marketing channels, but as internal drivers of innovation," he wrote, citing Ameriprise, which was won over in a review that included Publicis & Hal Riney, as an example.

Whether or not you believe digital agencies can take the lead over traditional shops is less important than pinpointing what is happening in traditional shops today. By in large, many are missing a piece of the puzzle for 2010. It's not the economy. It's everything else.

The truth about "traditional" advertising agencies in 2010.

The moniker alone is one challenge. If advertising agencies get stuck with the label that they are traditional, they may be dead in the water within five years. Successful agencies, by their nature, have never been "traditional," a term that now applies to an overemphasis on big budget broadcast creative and ad buys. Unfortunately, that focus will not likely pay the rent next year.

Worse for "traditional" agencies attempting to wait out the economy will be the perfect storm. Despite being well-suited to move into social media, most have been lax in the uptake of the low cost counterpart. The result is three-fold beyond the moniker: agencies have adopted hiring freezes, demoralizing their creative teams; budgets are shifting toward digital, reducing mainstream budgets; and the lack of movement to understand the space at a slower pace than public relations has helped fuel their primary competition, which is generating increased revenue that will allow them to steal away "traditional" talent.

If you need more evidence, think back to the Forrester Research survey that found of 100 global interactive marketers, only 23 percent believed their "traditional brand agency" is capable of planning and managing interactive marketing activities; 46 percent did not believe they were capable. Where the Forrester Research study stops, however, is in adding the economic pressures of marketers over the last two years.

Unlike when advertising agencies were slow to pick up Websites as a viable marketing channel but then recovered by buying up Website design companies, many agencies are struggling too much this time around to repeat the process. So unless Sorrell and other holding company CEOs adjust their thinking beyond the economy, it seems likely digital agencies really will be in a better position to steal seasoned creatives, capture traditional accounts, and reshape the field.

Understanding Economics: Recessions Are Optional

On the day before Thanksgiving, the National Association for Business Economists predicted real growth in gross domestic product for 2010 would be 2.9 percent, up from its October forecast. The forecast is cautiously optimistic, even if the association anticipates the jobless rate might hold at around 10 percent through the second quarter of 2010.

While the estimates seem promising, and mirror other economic data, public sentiment remains stalled. Even among the readers of SmartBrief for CFOs, 42 percent of those surveyed predict the U.S. economy will not begin adding jobs until 2011 or later and almost seven percent wouldn't even hazard a guess.

So who is right? Economists? Employers? The general public?

While it might matter, its significance is about as important as knowing that the sun requires 226 million years to complete one galactic orbit or that our galaxy also moves up and down on a 62-million-year cycle, with biodiversity increasing and decreasing in relation to where we might be. Abundant biodiversity as well as planetary temperatures have historic relevance to our planet and how entire civilizations rise and decline. The people who measure this stuff are astronomers.

How outlook and communication play a critical role in experience.

My grandfather once told me a fable about a gas station attendant and two road-weary travelers looking for a new town to open a new business. While they arrived at different times, both asked the same question. Do you think this town would be a great place to start a business and settle down?

"I dunno," said the gas station attendant. "What was the last town you lived in like?"

The first man frowned: "It wasn't very good for business. The people were lazy, and genuinely unfriendly. Unemployment was high, people wanted to be paid too much, and the housing market had bottomed out. I can't say anything good about it."

"Oh," said the gas station attendant before leaning over to whisper. "You wouldn't like it here then. This town, it's exactly like that. You'd be much better off continuing on and finding a better place than this miserable place."

"Wow," said the man, smiling. "You sure saved me a big waste of time. Thank you."

When asked the same question, the second man smiled: "The people were optimistic, and genuinely friendly. Even in a tight economy, people were willing to work hard, appreciated our efforts in the community, and were generally optimistic about the future. If it wasn't for our expansion, we would have stayed there for years to come."

"Oh," said the gas station attendant. "You'll love it here. This town, it's exactly like that. You can continue on and look if you like, but mister, I think you just found yourself a new home."

"Wow," said the man, smiling. "You sure saved me a big waste of time. Thank you."

When people ask me about what I think about the economy and our outlook, I have two different answers because they are two different questions.

The big picture is pretty obvious, I tell them. As long as employers are waiting for consumers to spend more, and consumers are waiting for better employment, the best anyone can hope for is slow growth through the first two quarters for 2010. And for the most part, that is in line with most economic forecasts.

Our outlook, of course, is different. Since the recessionary pressures took hold, I have always said participation is optional. It is optional because we can either fret along with those best described as the 42 percent who now predict the U.S. economy will not begin adding jobs until 2011. Or, we could invest in finding the 17 percent who predict the U.S. economy will begin adding jobs in the first half of 2010. I'm interviewing my first hire for 2010 next week.

The same can be said for individuals. As much as I think Pat Olsen's post on How to Survive in an Unhappy Workplace might help some people, his third point is the most important of all. With the exception of abusive leadership, workplaces and cities and economies and galactic positions don't make you unhappy. Only you can do that.

It might be the day before Thanksgiving, but it's never too early to be grateful. Until tomorrow then.

Stepping Backwards: Wellness & The Economy Study

According to a 2009 survey by Saatchi & Saatchi Wellness (SSW) on Wellness & The Economy, the current economic climate is having an adverse affect on wellness. Only 10 percent of the population feel wellness is related to being healthy, down from 47 percent before the recession.

Today, people tend to define wellness as changing behaviors, plans, and aspirations. And, the net result seems to be making the population collectively unwell. Their definition of wellness has been redefined as something as simple as paying the rent.

"While consumers haven't completely given up on the goal of health and balance, the definition of health has changed," said Johanna Skilling, director of strategic planning at SSW. "This means that as marketers, we have an important role to play in helping our constituents adapt to new realities in the marketplace."

As a whole, consumers are eating more carbs and sugars, exercising less, and investing less in their appearance. Equally striking was the assessment that most survey participants could be classified as affluent. Less affluent households are suffering even more.

Dropping another notch on the Maslow hierarchy of needs.

Maslow's hierarchy of needs, which is a model proposed by Abraham Maslow in his 1943 paper, outlines a prioritization of human needs. It suggests people tend to pursue physiological needs first, security second, belonging third, self-esteem fourth, and self-actualization last.

Last year, it seemed apparent that the population was mostly focused on security — employment, resources, morality, and health. So if there is any validity in the SSW study, this might be another another step down. Today, people are satisfied with the status quo, provided it can meet their most basic needs.

Even among business leaders, meeting the most basic benchmarks seems to be enough. Marred by a global decline in perceived opportunities, increasingly competitive venture funding, and an over-pronounced fear of failure, 58 percent of companies are employing tactical, short-term initiatives that stress cost cutting and deferred investments (Ronin study) while, in the United States, there has been a 9 percent decrease in entrepreneurs under the age of 45 (Global Entrepreneurship Monitor study).

In other words, it seems older companies are being weighed down by institutional barriers that encourage protectionism (fight) and younger companies or would-be entrepreneurs are leaping toward the next opportunity before their existing projects are nurtured (flee). Ironically, both reactions come from the same emotion. Fear continues to be the primary economic driver, with relatively few exceptions.

What does that mean? The first companies that can remove fear from their planning will be the market leaders in the next decade. And the people who aspire to move their thinking beyond scarcity will likely be the more secure.

Projecting Sales: Retailers Look To Black Friday

If consumer confidence is any indication of what retailers might anticipate this year, beginning with Black Friday, then the best they can hope for is: the fear of a worsening economy may have had a greater impact last year than living in one will have this year.

Most forecasts suggest a small gain in retail sales over last year. And most consider the smallest gain good news, despite consumer confidence indicators there is some validity to the concept that they will be more cautious.

Consumer Confidence Highlights From comScore

• About 75 percent of consumers across all income levels are more afraid of the economic future than ever before.
• 46 percent of over $100k households/65 percent of under $50k households are spending less on non-essentials.
• 42 percent of all consumers across all income levels are overwhelmingly concerned about unemployment/job security.
• Fear of unemployment/job security increased in October all among 100k households and under 450k households.
• 56 percent of all consumers think that unemployment will not begin to improve in 2010.
• 32 percent of all consumers across all income levels are concerned about rising prices, with 100k households also concerned about the devaluation of real estate and financial assets.

Five Tips For Retailers Attempting To Leverage Online Shopping

• Retailers hoping to drive incremental sales in physical retail locations need to develop reasons for consumers to add their store to their shopping route. Sales are not enough; consumers are shopping for an experience as much as they are bargains. For example, a book store that already has an online component can win with physical events like key book signings.

• Retailers that are already advertising across multiple channels this holiday season (digital and traditional) need to align their advertising messages so that one tactic naturally leads into the next. For example, digital advertising might include in-store discounts or promotions and in-store sales might drive return visits online, with a clear indication of why it adds value.

• Retailers mostly know which digital marketing tactics (search, display, email, etc.) are driving traffic to their sites, but most are struggling to convert visitation into sales. There tends to be an over-reliance on general conversation with little call to specific action. Unlike physical stores where customer service agents can answer questions and direct sales, online stores rely almost exclusively on a browse-and-buy shopper. Retailers with a mechanism to engage customers online tend to have more success with demand fulfillment.

• Retailers seem to think they are able to find their demographic online and distinguish which will visit a site, but they are struggling to determine where category buyers are online within that demographic. While it would be challenging to initiate consumer engagement online one week out from the start of holiday shopping, social media programs that engage consumers could readily provide retail outlets with a better understanding of browsers vs. advocates vs. buyers.

• Search spend investments during the holidays is difficult to validate because the reality is that search spend investments are almost a defensive marketing tactic. During non-holiday seasons, it is easier to validate. During a holiday season, it succeeds mostly at protecting against competitors in the pursuit of diverting would-be customers.

Overall, all of the most common questions being posed by retailers pinpoint the real challenge this season. In general, they are all succeeding in increasing site visitation, but most are not converting those visits into sales. Simply put, there are more people buying online but those people are spending less and making fewer transactions and fewer dollars per transaction.

It is not a surprise, as the majority of online marketers seem better quipped to entertain consumers online than selling products or driving physical traffic. So how do you change behavior when the U.S. jobless rate has climbed to 10.2 percent (and the boarder measure has risen to 17.2 percent)?

With 55 percent of consumers saying that they have less money this year than previous years, it is critical for retailers to provide engaging incentives to buyers. According to the comScore report, the most common ideas are to offer free shipping, provide layaway options, and increasing their use of social media. However, where retailers may falter is in how they employ social media — blasting holiday discounts across Facebook and Twitter are unlikely to differentiate their stores.

Any successful social media model will likely be those that engage consumers much like in-store personnel might, directing consumers to their self-defined interests. Isn't that what we always knew about advertising? It works to get people in the door, but someone or something else has to close a sale that delivers value to the lives of the consumer.

Changing Behavior: Consumer Confidence

In coming out of what it defines as the Great Recession of 2008/2009, The Futures Company is setting its sights on a dramatic shift in consumer conscience and confidence beginning to take hold in 2010.

Specifically, The Futures Company sees consumers moving beyond the heightened sense of anxiety and economizing frugality that convinced them (and their employers) to operate from a sense of self-preservation and scarcity. However, in the new post-recession world, The Futures Company does not see consumers returning to an era of accumulation and indulgence. Instead, they make the case for an evolutionary step forward in thinking.

A Darwinian Gale Has Reshaped Consumer Thinking

In its recently published white paper, The Futures Company articulates attempts to identify the crucial characteristics of the marketplace to come, one that will be shaped by a new consumer confidence that would have a direct impact on how marketers, advertisers, public relations practitioners, and social media professionals might proceed. These characteristics include...

• Responsibility. Consumers will be much more responsible when making purchasing decisions, giving more consideration for what they purchase before they purchase it.

• Vigilance. Consumers will be much more watchful about their exposure and position, with every aspect of their spending being questioned and placing increased pressure on communicators to ally with their concerns.

• Resourceful. Consumers will be more resourceful, with an emphasis on the management and conservation of resources that they consider most important to them.

• Prioritization. Consumers will be much more likely to prioritize their purchasing decisions in the marketplace. While this won't change their aspirations, they will think of purchasing decisions as trade offs.

• Network Oriented. With increasing regularity, consumers will forge personal networks of support that they consider essential in a world of uncertainty. The net result will shift the pre-gale presumption of global convergence toward a post-gale world of local "exceptionalism."

Preliminary Conclusions About A Darwinian Gale

There is certainly some basis for the conclusions drawn by The Futures Company. In particular, they are right that marketers have grown too comfortable in an era of indulgence, where they knew what consumers wanted and delivered it to them with an excitement and intensity that compelled people to buy, even if it meant overextending their credit to do so.

They are right that the marketplace is in transition, but some of their glimpses into the future might be slightly offset by other trends that seemed to be dismissed. While there is no doubt consumers will invest considerably more time in defining value, there is an equally likely chance that this definition of value will be based on perception as opposed to reality.

While the current trend certainly suggests a shift toward populist behavior, due largely to an increased reliance on the Internet, we anticipate a pendulum swing back toward the center in regard to popularity defining value over objective thinkers defining value. It almost has to occur as communication continues to increase exponentially and public relations sets its sights on social media, leading to an increased infusion of biased communication in an effort to gain a perception of being valuable.

Much like yellow journalism ushered in objective journalism before many media outlets gave up on the concept in order to cater to stories that affirmed the beliefs of their readers and viewers, someone — either media or other parties — will have to become trusted advisers without individual or organizational agendas.

The other weakness in the white paper is the concept of moving away from globalization without considering the new geography of the Web. While local markets are an increasingly important part of the marketing equation, the white paper seems to de-emphasize the importance of the Internet's ability to create entirely new environments. People aren't only from their geographical locations but also from new destinations like online communities and certain social networks that do not recognize geography as a defining trait among members.

We also found a significant challenge in this world view. Given that consumers have learned that the work is riskier than they once believed, the construct still shows consumer thinking to be based largely on a fear mindset, which in itself has negative consequences, especially as the blame for an air of indulgence is being placed on the mantle of a free market system.

If you can get past some of these challenges, there are glimmers of realities to be optimistic about. The best of which stems from the concept that there is indeed an increased opportunity for companies, and communicators, to turn resourcefulness and innovation into tangible benefits that add real value to the world, which enhances optimism and consumer confidence (much like Steve Jobs did despite the 2001 recession). It is the most accurate assessment in the entire paper.

And from that perspective alone, A Darwin Gale might be worth checking out. Just keep in mind, as the authors freely admit, the future is not fixed.

Forgetting A Public: Public Relations

Earlier this year, Salary.com published the 2008/2009 Employee Satisfaction and Retention Survey that revealed 65 percent of employees were passively or actively looking for new jobs.

What made the survey stand out is that employers only estimated that number at 37 percent. In fact, while employers had a good sense of overall employee satisfaction, they often overestimated the degree of satisfaction by nearly 2 to 1.

Lori Rosenwasser, writing for Forbes, used it to once again remind employers that there may be some fall out for companies that are "not actively recruiting" but are also unconcerned with retention. The most misguided assume employees are holding on to their jobs for dear life.

As evidence, consider The New York Times article that points out employers are too uncertain to hire employees despite an upturn in the economy. With job seekers currently outnumbering openings six to one, the worst ratio since the government began tracking open positions in 2000, continued uncertainty could become self-fulfilling.

While there is some prudence in waiting to fully understand the financial consequences of health care reform, increasing likelihood of potential tax increases and regulations, and rising cost of labor; being overly cautious could further hinder growth, aggravate employee loyalty, and diminish customer service as employees who already feel like they have made sacrifices are asked to do more for less despite signs of a turnaround.

The Public Behind Multiple Publics

Very few employees exist as a singular public anymore. Many of them, especially in larger companies, are also direct or indirect shareholders, customers, industry influencers, regulars, activists, and marketers. Specifically, they don't come to work every day to receive a salary.

They come to work because they might believe in the product or service. They might come to work because they appreciate their 401k may be tied to the company's performance. They may serve on commissions or in associations that either self-police the industry or interconnect with government. They might be fans or friends of the company via an online group. They may vest or fund organizations that lobby government against the industry in which they work. And the list goes on.

Can public relations really afford to consider a news release limited in its scope to the media? Can investor communication claim the economy is the cause when employee-investors might know better? If a company decides to save dollars on the assembly line, do employee-customers decide to purchase another product? Do employees feel forced to join online communities and support the company, granting it even more access to their semi-public communications? Are companies inveterately funding organizations that will press for their next tax increase or sweeping industry changes?

The challenges in meeting the needs of the most neglected public are exponential, well beyond the questions posed by Mary Ellen Slayter at SmartBlog on Workforce. While she rightly suggests that companies operate with integrity, leadership, and responsibility, maybe it's time that public relations professionals consider companies are much more transparent than they ever imagined.

Where Employees Are The Message

To that extent, it may even be the story-beyond-the-story that has Domino's, Ford Motor Co. and Kellogg Co. turning employees into marketing talent. While the story talks about a move to cut marketing costs while creating a bond with audiences, it also creates an opportunity to share multiple messages with multiple publics, especially those that consist of one public with multiple roles.

While not always confined to executives, one of several examples includes GM Chairman Edward Whitacre Jr. attempting to build rapport with viewers before urging them to try GM's vehicles.

"Before I started this job, I admit I had some doubts. Probably a lot like you," Whitacre says as he strides down the halls of GM's Design Center in Warren. "But I like what I've found. I think you will, too."

Is this a message to customers? Or employees? Or investors? Or all of the above? Is it advertising? marketing? public relations? social media (once it is placed on YouTube or a blog)? Or all of the above? Is it a cost-cutting measure? Exercise in transparency? High touch message? Or all of the above?

The move really isn't only about messaging in the current market nor does it necessarily require employees. As advertisers and public relations professionals work toward message integration, it becomes more apparent that communication needs to touch multiple publics for different reasons, especially when those multiple publics can be traced back to the one most responsive to high touch messages.

Right on. It's a bit more complicated than sending a news release, but someone needs to advise executives that the modern employee isn't the same employee that they knew two or three decades ago. Without their support, it's all upstream.

Finding Fearlessness: How To Do It

Dr. Stephen Covey calls it the circle of concern: an outer circle that consists of several factors that people cannot influence such as the economy, security, and inconveniences. And yet, with increasing regularity, more people seem fixated on them at the expense of factors they can directly influence.

In September, eMarketer presented a study that shared why executives love or fear social media. Not surprisingly, almost every executive who valued social media listed qualities related to what they could directly influence: customer relationships, brand enhancement, customer service, employee morale.

Those who feared social media listed things they could not directly influence, such as the unknown, confidentiality, security, and employee productivity among those reasons they fear it. Those fears still remain today.

In every occasion, solutions land in the inner circle while fears fall to the outside.

Yesterday, Jeremy Meyers wrote a post asking how do we address fear? His solution was to offer love and compassion.

While there is truth to the concept, the application isn't always welcome. It isn't always welcome because people who are focused on the outer circle are more likely to consider such gestures with reservation and, well, concern. Sometimes those reservations are warranted. Other times they are not.

Although being overly concerned about the weaknesses of others falls well outside an inner circle (until it expands our own), fearless folks can still help others find fearlessness with clear communication, flexibility, and empathy.

For example, at our company, not every social media or communication program begins with the "ideal" program. We find ways to help companies take baby steps toward "ideal" programs. Simply put, we look for a potential win-win or we move on.

There are no hard feelings if we do. If people aren't willing to meet us halfway, then it's very likely their fears of outsourcing, job security, budgets, results, economic conditions, brand control (whatever that is), customers, etc. are too large for them to take control of their own destiny at that time. There is nothing wrong with that. We don't fault them for it.

How about you? How many fears do you focus on that reside outside your direct influence? The economy? Health concerns? Job security? And what would you do if you weren't afraid?

Managing Upturns: Reactionary Expectations

"Those who succeed will be ones that focused on fundamental issues as the financial crisis and the recession intensified. If competitors are cutting back advertising or cutting their sales force, now is the time to increase or maintain them." — Yoram (Jerry) Wind, a professor of marketing at Wharton University of Pennsylvania

Two weeks ago, I met with an executive who had decided a little bit of publicity could go a long way for her struggling business. A well-placed feature release, she concluded, would make all the difference.

Could it really?

In evaluating the business there seemed to be more nostalgia than newsworthy forward motion. So while a feature release on the company's past position and links to history might have made an interesting story to someone, it seemed far enough off from the company's business objectives that we made a different recommendation for approximately the same investment, but with an ongoing communication program.

While she thought the program was perfect, she passed. Perhaps when the economy shows more signs of an economic upturn, she said. We'll wait until we see increases in revenue. Right now, she said, our expectations are low.

“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.” — Michelangelo

While some companies are already noting that the best six-month run on Wall Street might be revealing an increase in consumer confidence, there are an equal number of companies and organizations that have tied their success to outside forces, especially the economy. A recent article featured by Knowledge@Wharton seems to suggest that even with an economic upturn, low expectations are the way to go.

It's a message that seems to resonate with employees. Watson Wyatt released a study today that reveals cost-cutting actions that employers have been making to deal with the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers. And, according to some key findings, everyone's expectations are already low:

• While organizations have been making major changes, employee engagement has dropped 9 percent since last year for all employees and close to 25 percent for top-performing employees.

• Top-performing employees are 20 percent less likely to agree that they understand the link between their own goals and the company’s goals than in 2008.

• Forty-one percent of employees indicate that changes have had an adverse impact on quality and customer service, while only 17 percent of employers believe this is the case.

“There is no scarcity of opportunity to make a living at what you love; there's only scarcity of resolve to make it happen.” — Wayne Dyer

There are two ways to view economic indicators and the environments in which businesses operate. The first is to view a company as reliant on the economic climate. The second is to discover opportunities within those environments.

The former group of companies are operating on the pretense that they need to protect what they have. The latter group of companies appreciates that they never had anything except what they innovated and earned.

The former group saw revenues decline, as their strategists predicted. The latter saw revenues increase, despite the recession.

What's the difference? Operating from a viewpoint of scarcity usually creates more of the same, with longer term consequences. Or, in other words, the executive I met with two weeks ago will not likely see an increase in revenue any time in the near future. The best she can hope for is that her competitors feel the same way.

Sure, it would have been easier to rehash her company's history in a feature release with no outcomes (or none that aligned with her business objectives) and then send an invoice for the effort. But sometimes accepting the wrong work for the sake of accepting it seems to me to be a different kind of scarcity that sends the wrong message to our team. After all, we're in the business of helping companies grow. We're not in the business of helping them decline. How about you?

Losing Leadership: Where Collectives Begin

Sangeeth Varghese re-raised an interesting question at Forbes, one that was also raised by Harris Collingwood in the Atlantic last June. Collingwood seems to draw a conclusion. Varghese leaves the answer open ended.

Of the two, the original is the stronger piece, better explaining the cornerstone of a study conducted by sociologists Stanley Lieberson and James O'Connor and published in the American Sociological Review in 1972. They argued that leadership accounts for a mere 14.5 percent, with the balance accounting for the marketplace and historical place in the corporate pecking order.

Varghese then goes on to cite Leo Tolstoy, who seemed to make the case that Napoleon Bonaparte, one of the greatest great men of all time, wasn't really the cause of all the momentous things that happened under his name and banner. Collingwood offers J. Richard Hackman, a psychologist at Harvard, who has done extensive work on leadership within small teams, and he has found that leaders do exert measurable influence on their team’s success or failure.

So which is it? And why are these questions surfacing now?

“None of us will ever accomplish anything excellent or commanding except when he listens to this whisper which is heard by him alone.” — Ralph Waldo Emerson

The why may simply be a sign of the times, much like the anti-authority sentiment of the 1970s when Lieberson and O'Connor conducted their studies. This time around, the sentiment is different, sometimes framed up as collaboration trumps individual thought in social media or the collective public good supersedes individual choice regarding choice in health care.

While perhaps unintended, both trends tend to diminish leadership, and with it responsibility. It's easier to defend the position of customers than it is an original idea just as it's easier to raise the banner for the public good against freedom of choice at a time when most people are willing to make and impose sacrifices for a false sense of security.

If there is any irony, it is that neither path is purely right.

"The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark." - Michelangelo

What Lieberson and O'Connor might have missed in their original number crunching is considering how many of the 167 companies they studied helmed leaders at the time. A good number might have held the position of CEO willing to set the aim too low, but only a handful were true leaders, setting the bar much higher. Or, in other words, the majority was inclined to do little more than allow markets and pecking orders to dictate their fate.

The minority, those who reshape the world like Steve Jobs, J.W. Marriott, Henry Ford, Ray Kroc, Estee Lauder, or Jack Welch, tend to account for much more than 14.5 percent. It is their very ability to move forward despite environmental conditions that leads to success (e.g., while some companies suffer through the economy, Apple posted its best non-holiday quarter revenue and earnings in history).

Sure, there are times that the crowd demonstrates wisdom, but there are an equal number of times that those crowds will never produce any clarity of thought like an Albert Einstein, Richard Feynman, or any business leader mentioned above. So where do crowds come into play? Generally, the wisdom of crowds is most likely to prevail when there isn't any leader available.

The symptoms are easy enough to spot. When authority figures begin selling security and charging individual sacrifice in exchange, they are no longer leading but simply attempting to herd the mass. Leadership, on the other hand, requires something different, beginning with individual thought.

Politicizing Business: John Mackey And Everyone

There is an interesting little side bar story written by Darryl Ohrt at AdvertisingAge that suggests rethinking the traditional work day at advertising agencies. He says that since the work day for many is all day that maybe office hours ought to change to fit personal preferences.

There is some truth to that. When someone had to chat with fans of an independent movie release at 11 p.m. on Twitter a few weeks back, I decided it might as well be me. It made for more than a few sleepy mornings, mostly because I start early every day. Unlike most creatives, I like to start work before the sun comes up, which also makes it easier for East Coast clients to reach me.

So why not employees? And why not other businesses?

The comments reveal the reality, with some being for it, some against it, and a few who would outright abuse it to the point of violating labor laws as they turn employees into indentured servants (and thus why labor laws exist).

And then there is health care. I caught a few interesting comments being bandied about last night on Twitter by several communication colleagues, suggesting that John Mackey, CEO of Whole Foods Market, Inc. had lost his marbles.

"Where were his PR advisors?" some asked, despite being the same people who encourage CEOs to write their own blogs, unvetted.

Sure, Mackey is an odd duck. He has been one for a long time. But he's not your typical run-of-the-mill odd duck, which means that his op-ed in the Wall Street Journal on heath care might not be dismissed so readily. The title alone, "The Whole Foods Alternative to ObamaCare," will make a few people cringe, but Mackey has already explained that he didn't write the headline.

The fallout of his op-ed, which simply suggested eight alternatives to government-run health care that ought to be kicked around the Hill, has resulted in all sorts of craziness, including dozens of activist groups calling for a boycott of Whole Foods. There is even a wacky Facebook group that promises to do the same.

Some of the members don't even know why they are boycotting Whole Foods, other than the maligned representations of what Mackey wrote. Some say Mackey said only the rich deserve health care. He never said that. So overall, those members seem mostly concerned about getting media attention so they can say they belong to a group covered by CNN or whatever. Whatever.

There are at least three points to consider in framing up what will become a living case study, with coverage from time to time.

1. Will it become common for everyday people, who generally support the idea of expressing their own opinions online, resort to diatribe every time someone else's opinions differ from their own? And would a reverse boycott include unfriending everyone who joins this group on Facebook?

What happened to open discussion, which seems more productive? Nowadays, people tend to turn off dissent.

2. Are public relations professionals so naive to think that politics and business don't mix? They have always been mixed, and they are increasingly mixed as the federal government has encroached on the private sector.

I may not be a fan of mixing the two in communication, but I do recognize times have changed and the voracity in which executives might talk about politics has changed with it. Ergo, the same people who cheered on executives like Warren Buffet's endorsement of a presidential campaign are the same who now chastise a less politically motivated column on health care reform, written in plain language with some points that ought to be part of the discussion.

3. Are government health care proponents so desperate that they would attempt to hang their hats on an individual who represents no one other than himself? It seems to me, for lack of a better patsy, that some organized political groups are hoping to frame up a debate as health care reform vs. Mackey as a poster child for big business.

Nothing could be further from the truth. Mackey has always marched to his own beat. Sometimes disastrously so. He hardly represents the status quo of business and neither does Whole Foods. As a matter of fact, Whole Foods employees have health benefits.

Whole Foods is not alone. Most businesses are not against health care reform. On the contrary, most businesses want their employees healthy and working. The best of them also want to keep their employees happy or at least motivated, and do so by providing more incentives than unions or government can muster.

The bottom line nowadays is that employer-employee contracts are increasingly regulated by the government, which dictates the hourly wage, benefits, and hours of operation. And, since most of the government's newest regulatory design seems to plan against the exception and not the rule, executives like Mackey will be increasingly forced to speak up, and rightly so. If they do not now, they may not be able to later.

Engaging Customers: Top Brands Online

Wetpaint and the Altimeter Group released a study today that confirms what seasoned communicators with several years of experience already know. Deep engagement with consumers through social media channels correlates to better financial performance. How much?

Companies engaged in social media grew company revenues by 18 percent over the last 12 months. The least engaged saw revenues sink 6 percent over the same time period.

"The closer any company is to its customers, the better, and it's hard to argue with the ability for social media to create such proximity," said Ben Elowitz, CEO of Wetpaint. "In this day and age, companies should feel much more comfortable investing in social media -- the correlation to results is so clear."

The study also concludes that companies which only establish an online presence — present in a few social media channels (Blogs, Facebook, Twitter, etc.) that push messages and seldom engage customers or those spread too thin across dozens of channels — tend to see lackluster returns on investment.

Who are the top ten brands engaged in social media?

1. Starbucks
2. Dell
3. eBay
4. Google
5. Microsoft
6. Thomson Reuters
7. Nike
8. Amazon
9. SAP
10. Yahoo!/Intel (tie)

You can find the entire study via an interactive Web site. Starbucks, which has one of the most prominent engagement strategies demonstrates it understands all strategies require central coordination, each social media channel requires different engagement, and leading company participants understand and can mitigate risk.

Companies often implement technologies without a clear view of how they fit into and support corporate goals. They thus end up with a bunch of point solutions, but no strategy — and worse, no results, with increased internal and external risk.

What does the study mean for smaller businesses?

Companies, regardless of size, need to move beyond tactical considerations and realign their communication plans to fit strategic goals with measurable results. All of their communication decisions need to be grounded in research before companies launch any number of social networking accounts, blogs, and other online technologies.

As mentioned last week, we recently conducted a market intelligence study on a niche industry that should be outperforming despite any economic constraints. However, as this niche tended to rely exclusively on traditional marketing and tactical communication, we were not surprised to find that 15 percent of these businesses had closed in the last six months.

Ergo, even small business needs to reevaluate its communication plans from the bottom up, with those including social media being the most likely to succeed. However, keep in mind, simply entering into social media — creating a fan page or Twitter account — is hardly enough and may even be detrimental. How detrimental? Come back tomorrow.

Changing A Down Economy: It's Psychology

At least once a week in this market, someone tells me their company is holding off on advertising, marketing, or social media until the government can fix the economy and the market improves. And every week, I give them the same advice to think about.

The economy is not your company's problem, it is your company's psychology that is a problem.

As part of what our company does every day, we research specific industries in order to find strengths and weaknesses within specific niches. We do this for many reasons, ranging from our own market intelligence purposes to specific research, forecasting, and communication recommendations for an assortment of clients in this market and elsewhere.

One cursory research study we recently completed tells the story aptly enough. According to research, this particular niche outperforms in a down economy. And, sure enough, in most markets across the country, this particular niche does excel. Except in this market. In this market, 15 percent of businesses operating in that niche have closed. Why?

Localized, national, and global markets behave differently, but with similar psychologies.

Jeanne M. Liedtka, faculty member at the University of Virginia's Darden School of Business, knows. Writing for The Washington Post's leadership blog, she suggests that many businesses have adopted the same strategy as Goldman Sachs — "hunker down, cut costs, batten down the hatches, play it safe, and wait for the economy to turn around."

Her advice? Change your psychology, followed with four solid tips for businesses on any playing field (paraphrased below).

• Conduct some research to help you understand your company and its place within the market.
• Do something, even if it is small, to demonstrate the value of an idea that can propel the company forward.
• If your company has to lay people off, resist any temptation to cut across the board and focus on keeping performers.
• Learn to embrace uncertainty rather than allowing it to immobilize your company with fear.

The economy is not your company's problem, it is your company's psychology that is a problem.

There was some cautionary advice left in the comments of Liedtka's post too. Several stood out, but one worth mentioning came from Giancarlo Newsome, who works with Clockwork Solutions.

"The advice is reasonably sound but there are some significant mines in this field of approach that have been laid that must be exposed... the HOW is critical," wrote Newsome. Hmmm ... how indeed.

While it's always prudent to ensure that internal ideas have not descended into what Kurt Vonnegut once described as badges of friendship or enmity — Their content did not matter. Friends agreed with friends, in order to express friendliness. Enemies disagreed with enemies, in order to express enmity — the how is useful as long as it doesn't immobilize the do.

Sometimes the how needs to come from the first bullet rather than an internal vote on the individual popularity of various people and badges of friendship or enmity (or worse: entitlement, rank, and position) within the organization. If it doesn't, then the organization stands to go the way of Goldman Sachs' thinking.

For that one niche that ought to be over performing in this economy (mentioned earlier), 15 percent have already proven the outcome of that thinking. As the old saying goes, one definition of insanity is someone who does the same thing over and over, and expects a different outcome. It's time to change your organizational psychology. Or has it changed already?

Advertising Still Works: Teen Shoppers

As much as the Internet has had a dramatic impact on way people think about advertising, a new study from Scarborough Research demonstrates that proximity advertising still works. In fact, teen shoppers are looking for it.

"The findings show that teens do in fact notice advertising in the mall, and our study shows that they generally rate it positively," commented Jane Traub, senior vice president of research for Scarborough. "As mentioned previously, teens spend considerable time in the mall, so it is not too surprising that they do notice the advertising that is present in that environment."

Highlights From Teen Shopper Survey

• 91% of teen shoppers notice poster display ads at the mall
• 85% notice hanging advertising banners
• 77% notice sampling
• 58% notice promotional events
• 57% notice TV/video screens
• 48% notice interactive displays/kiosks
• 31% notice moving images projected on the floor or walls

The study also revealed that while 77 percent of teens are concerned about how the economy will affect their families' future, 62 percent said the frequency of visiting malls has increased or stayed the same. On a typical visit, 68 percent of teens spend two or more hours at the mall, with more than a quarter (28%) spending upwards of three hours. More than half of teens (56%) spent $50 or more on their last visit and 29 percent spent $100 or more.

Online and offline communication is integrated.

While proximity advertising (signage, etc.) works, the study also reveals that most teens do not distinguish from online and offline advertising. They perceive all advertising as integrated, with more than 75 percent of males and 69 percent of females chatting with friends about meeting at the mall and purchasing items. More than 67 percent of males and 55 percent of females also went online to learn about specific items before going to the mall.

The full report is available from Scarborough Research/Arbitron Inc. Scarborough Research measures the lifestyle and shopping patterns, media behaviors and demographics of American consumers, and is considered the authority on local market research.

Banking On Troubles: Waggener Edstrom Worldwide

According to a consumer poll conducted by Waggener Edstrom Worldwide and RT Strategies, a mere 8 percent of consumers have full confidence in banks and financial services companies. The firm compares the low water mark to a 31 percent confidence level reported in 2006 by the University of Chicago National Opinion Research Center.

Highlights From Waggener Edstrom Worldwide Nationwide Consumer Poll

• 44 percent of respondents said they heard something from the industry but felt more negative after hearing it.
• 11 percent of respondents heard something from the industry and felt better about it.
• 38 percent of respondents said they have heard nothing directly from the industry at all.

Waggener Edstrom Worldwide concludes that media coverage and/or advertising is shaping public opinion more than direct communication from the industry and that authentic and credible communication positively influences widely held opinions about the industry overall.

"Ironically, at a time when the financial services industry has the most at stake, its communications with consumers and policymakers have descended to a strikingly low level," said Torod Neptune, senior vice president and Global Public Affairs Practice leader at Waggener Edstrom Worldwide. "Perhaps one of the most jarring findings in this survey is the sheer lack of industry leadership in communicating what financial services companies are doing to aid in a broad-based economic recovery."

The consumer poll mirrors a cursory public sentiment report we conducted for a national bank last month, which demonstrated the financial services industry as a whole is causing individual bank brand erosion as a direct result of accepting TARP funds. Areas of concern across the industry include mismanagement, financial waste, security, trust, and longevity.

Where we differ from Waggener Edstrom Worldwide is in its recommendation that there is an opportunity for financial services leaders to step forward in the midst of this storm and proactively communicate a message of trust. Unlike most messages, trust cannot be communicated as an industry as much as it has to be earned at a ratio of one-to-one.

What is also missing from the Waggener Edstrom Worldwide conclusions is that some banks are communicating direct to clients. And, by in large, there are reasons that TARP banks have remained largely quiet. Specifically, not all of them needed TARP funds. The reason they accepted the funds is sound, but it does not resonate with the public while individual banks are targeted for public floggings.

So is there a solution? Sure. But the opportunity isn't to step forward in the midst of this storm and proactively communicate for the industry in an environment where it's good sport to take shots at financial services, where individual bank decisions can erode the credibility of whomever picks up the mantle, or where government has positioned itself in an adversarial role. Instead, an individual bank needs to focus on what it can manage — its own communication to employees, customers, and prospects.

In addition, the message wouldn't be one of trust, but rather one demonstrated by reliability and longevity. And by "demonstrated," I mean with evidence that suggests it is provably true. Each bank, of course, needs to develop a message based on its own situation and core values, assuming it hasn't drifted too far away from those.

Interestingly enough, the less reported on portion of the study reveals that consumers appear willing to give the industry the benefit of the doubt on questions about industry practices, such as the use of TARP funds. That tells me the 8 percent finding that is carrying some headlines today isn't so much about the industry as much as it demonstrates how popular it is to say "I don't trust banks, um, except the one that has my money."

Owning Communication: Be Your Own Voice

While an increasing number of people are wondering if we are headed toward a depression, fear-mongering seemingly in fashion (the only good reporting comes on the front end with Sweden telling GM that their taxpayers will not fund them), and the deficit for this year expected to reach $1.7 trillion, it now seems everyone could use a little good news. You can find a little (but not all) good news in a recent report from global consulting firm Watson Wyatt.

According to the survey of 245 large U.S. employers conducted last week, 52 percent have made layoffs, up from 39 percent two months ago. However, the number of companies planning layoffs has fallen 10 percentage points from 23 percent to 13 percent. Fifty-six percent do, however, have a hiring freeze in effect, an increase from 47 percent in December’s survey.

“Companies have come to terms with the fact that this recession is going to last and that they can’t slash their way out of it,” said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. “Many companies are putting the drastic cuts behind them and are now focusing on smaller, more sustainable cost-cutting actions.”

So, the little bit of good news seems to be that fewer companies are willing to apply leeches to cure their ailments. Now, if only these same leaders could clear their heads long enough to believe they can manage the destiny of their companies. Considering just less than 10 percent of those surveyed believe that we have already hit bottom, not enough do.

In fact, according to the same report, 38 percent believe the economy won't hit bottom until late 2009, and 28 percent believe that the recession will likely last through 2010 ... and beyond. If these company leaders are not careful, they will talk themselves right into the worst case scenarios when what they really need to do is hit the lead key.

If they don't hit the lead key, then they perpetuate the problem. As it stands right now, some polls show that 37 percent of all Americans, nearly 50 percent of Democrats, believe the nation is already in a depression. If that number hits 50 percent of the total population, then the public will unknowingly create a self-fulfilling prophecy.

Some Fresh Facts In The Dour Economy.

• The University of Virginia showed the trouble is mostly focused on four states — California, Florida, Arizona and Nevada — where home prices were the most overheated in the US housing boom. That implies that the housing crisis is overstated. Locally, in Nevada, the market is already showing movement and stabilizing despite what economists are saying about data that is more than two months old.

• After the fiasco faced by Northern Trust, expect more banks to come forward to proclaim they did not need the TARP money. The government ASKED healthy banks to accept the money because they wanted to shield true bailout banks from being singled out, because many banks are paying as much as 5 percent interest on that money, and because good banks accepting TARP helped protect the taxpayer-subsidized funds (hedging against the government funding only losers). The banking crisis may be overstated.

• The crisis on Wall Street seems to be lock step with every time the federal government proposes a new plan. Even when President Obama, who usually carries a message of darker days ahead, encouraged investing, the stock market sank further. It will likely continue as long as regulation and "strings" are part of the package. Several states are even expected to reject stimulus money outright, citing that the money either creates future fiscal problems or that some funding encourages money where it is not needed or critical.

Tactics To Employ As Individuals.

While there are some economic constraints, the real rub is twofold: a lack of leadership, especially from companies that only perform well in ideal conditions; and consumer confidence, which is unfortunately hinged on public and private leadership. It seems to be becoming increasingly obvious that individuals might look to themselves, rather than people outside their homes, for leadership.

• Capitalize on “individual action.” Focus on what you can manage at home, rather than the state of the global economy. The state of the economy is less important to an individual than their place in that economy.

• Establish a clear direction. Know as much as you can about your household's situation, specifically how a two income household might consider what would it take to operate as a one income household. Some people are surprised to learn that in a worst case scenario, they can still pay all their expenses. Knowing this will likely give you peace of mind.

• Cut expenses that appear to be fixed. Expenses such as electric, gas, cable, etc. that appear to be fixed, are not. You can manage all of these expenses, reallocating these funds for social activities, which you need to remain positive.

• Engage your community. Choosing to be active in your community will empower you. It gets you out of the house, provides social engagement, and reinforces how much of a difference you really can make.

• Be honest with yourself and family. The number one communication breakdown in families, much like companies, is a lack of communication about unknowns. Be authentic, even if it means talking about things just to put worries aside.

• Put passion into your job. Focus on satisfying customers over internal challenges or lackluster leadership. The worst case scenario is that you will position yourself for advancement when the economy turns around. Of course, if your company is too dour, look for a new company where your employer will be in the 10 percent minority that knows how to navigate any financial waters. There are some companies out there that are growing more than bemoaning the economy. I know because our client roster includes several.

• Plan your next adventure. Who cares if you don't want to take a trip now. Start planning a trip or some other distraction, even if you do not have a date to make it real. People always perform better when they have something to look forward to.

Much like companies, individuals are better off when they focus on "what is" and "what's possible" as opposed to "what if worries." So, what I'm really suggesting here is that if your employer cannot communicate the level of leadership you need, then consider looking to yourself to provide it.

Unconditioning Fear: Change The Communication

"What Would You Do If You Weren't Afraid?" — Haw

The quote, of course, comes from New York Times business bestseller Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life by Spencer Johnson. It's a good question to ask nowadays, especially with so many people settling into the notion that there is no more new cheese so we all have to protect the cheese we've got.

In fact, most people, including business managers and government officials, seem to be sitting around waiting for new cheese to magically turn up. Some people, like many economists, are saying we're going to run lower, and perhaps out, of the little cheese we have left. And President Obama seems to think that nobody has any cheese so we all better panic.

“The federal government is the only entity left with the resources to jolt our economy back to life,” he said.

"What Would You Do If You Weren't Afraid?" — Haw

In the parable, Haw realizes that it's better to start looking for new cheese than to worry about the cheese that dwindled away. And eventually, Haw begins to slowly lose his fear as he finds little bits of cheese here and there. The more often he succeeds, the more he learns "when you move beyond your fear, you feel free," until he finds bigger and bigger supplies.

But what if Haw had a strong influencer? What if Hem, who was Haw's friend, did more than stick to his victimized mindset and stay behind? What if every time Haw tried to leave in search of new cheese, Hem shocked him with a cattle prod? ZAP!

We already know what would happen. We know that the fear of a negative reinforcement, such as an electric shock, can condition people like Haw, in order to avoid the electric shock, do whatever Hem wants. And if Hem decides he doesn't want Haw to do anything, then he could simply shock Haw frequently and unpredictably until Haw didn't move at all.

It's called learned helplessness. It comes from constant and unpredictable jolts. It comes in the form of fear communication.

"What Would You Do If You Weren't Afraid?" — Haw

Sure, fear can be a powerful motivator in developing awareness. For example, we used the fear of losing a child to develop awareness about pool safety in 2004.

Two years ago, we reworked a billboard originally developed for the United Way of Southern Nevada as a banner for a Bloggers Unite campaign. It used the fear of child abuse to raise awareness.

However, there is a down side to developing fear-based communication. Much like a cattle prod, too much can convince the public that the problem is TOO BIG to do anything about it. When that happens to a cause, people will stop trying to help. Learned helplessness.

So in 1999, we helped the United Way of Southern Nevada change the communication. Instead of fear, we focused on hope. "Great Results Start With U. United Way." Although it was later changed to simply "Great results start with you", it became the longest running, most successful campaign theme in the history of the organization (about seven years).

It worked because we changed the communication. We presented problems, but we also presented solutions made possible by the generous donations of people who supported the campaign. When we managed the campaign, the content usually presented how many people needed a particular service and how much supporters had already contributed to meet that need. Doing so placed goals within reach, motivating people to dig a little deeper and give a little more. We found the cheese.

"What Would You Do If You Weren't Afraid?" — Haw

If you want real change, you need hope over helplessness. And that begins with changing the communication. Otherwise, worst-case scenarios like the one fictionalized by David Brooks with The New York Times could be proven true. And none of us wants that.

It doesn't really matter how you want to apply the message. As an individual or organization, business or industry, community or county, it all works. If you want better outcomes, change the communication. People want something to believe in, not something that reinforces this ridiculous notion that there is no more cheese.

Of course there is cheese to be found. Ignore the dudes with the cattle prods. And then move forward and find it.

Related reading:

NIH Public Access: Habituation of unconditioned fear can be attenuated by the presence of a safe stimulus

National Geographic News: Brain Region for Overcoming Fear, Anxiety Found

Breakthrough Blog: Overcoming fear in foreign policy

Utne Reader: Overcoming fear culture and fear itself

Blacklisting Vegas: President Obama

According to the Las Vegas Convention and Visitors Authority (LVCVA), Las Vegas hosted 22,454 conventions and meetings that attracted more 6 million business people and conventioneers in 2008. It accounted for an economic impact of $8.5 billion, employed more than 46,000 Southern Nevadans (75,000 with indirect employment), and represents close to 15 percent of the city's total visitor volume.

On Monday, President Obama said he wanted to end that.

“We’re going to do something to strengthen the banking system. You are not going to be able to give out these big bonuses until you pay taxpayers back. You can't get corporate jets. You can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayers' dime. There's got to be some accountability and some responsibility.” — President Obama, Town Hall discussion in Elkhart, Indiana

There does have to be accountability and responsibility.

"Mr. President, I understand the enormous burden you carry in dealing with the worst economy since the Great Depression. I also understand the need for accountability, but your comments are harmful to the meetings and convention industry as a whole and Las Vegas specifically." — Mayor Oscar Goodman, Las Vegas, Letter posted at Las Vegas Now

Careless research and ill-advised words damage lives.

According to the Las Vegas Review-Journal, President Obama based his decision on a report that cited "$300 hotel rooms" as an example of extravagance. The Venetian, which is a more upscale property, lists rooms for $189 per night. The LVCVA reports the average room rate was $119.19 in 2008, with a low of $96.39 in December.

Specifically, businesses attend conventions and meetings in Las Vegas because of its room rate discounts, reasonable air fare, diversity of offerings, and the strong local infrastructure to support it. Since 2000, the city has gone to great lengths to carry a dual message that, despite its party town image, it is an extremely smart and cost-effective choice for business.

At least four major companies have already canceled their plans to meet or hold conventions in Las Vegas this year. Some of the cancellations have to do with the perception of Las Vegas, while others might be because of their own financial constraints. State Farm planned to book 11,000 rooms in September, but those rooms will now remain vacant. Wells Fargo, which received some bailout money, also backed out of a 12-day junket in response to cries that the meeting represents wasteful spending.

Unless replaced, the damage caused by these lost bookings could be severe to a local economy already experiencing a 9.1 percent unemployment rate, well ahead of the national average. It is anticipated to hit double digits this year, with the state facing a economic crisis, which began after it was hit especially hard by the subprime mortgage situation.

The campaigning needs to end and bailouts too.

During campaigns, politicians are sometimes quick to call out and vilify opponents, industries, and government. The message becomes simple. Everything is bad, and we need to change it all. While I'm not a fan of peddling fear, many campaign managers understand all too well that these trumped up rally cries can move certain publics to the polls.

However, once elected, most politicians are seasoned enough to understand that the communication needs to shift in order to govern. As elected officials, most know that effective leadership requires the polarization to stop and productivity to begin. They recognize that they no longer represent campaign slogans but rather the Wall Street stock broker in New York and the maid in Las Vegas and the automotive lineman in Detroit. They are no longer entitled to pick and choose which American people they represent. They represent us all.

Regardless of how you feel about Las Vegas, President Obama's message did not communicate anything about this city as much as it communicated something about the recent waves of bailouts and the stimulus package in general. The power of the purse is the ability of one group to manipulate and control the actions of another group by withholding funding, or putting stipulations on the use of funds. This power grab is alive and well in America.

After Monday, it now seems all to clear that President Obama is intending to use this power and perhaps abuse it, under the guise of protecting taxpayer money. However, in delivering this message, he neglects the obvious. The 46,000 Americans directly employed by the convention industry in Las Vegas are taxpayers too. They are owed an apology.

Good night and good luck.