Wednesday, July 25

Branding Champ: Coca-Cola


For the last several years, when I ask people to think about a successful brand, I often ask them to think of Coca-Cola because, well, Coke is it. I don’t even have to drink it to appreciate why Coca-Cola has risen to the top of Harris Interactive’s “Best Brand” poll.

When Ron Kalb, associate director of public relations for R&R Partners, spoke to my class earlier this year, he shared what I thought was one of the most significant studies on branding I had ever seen, which underpins part of the “Fragile Brand Theory” that I have been working on for a few months. The study, conducted by Baylor College of Medicine a few years ago, showed the huge effect that the Coke label had on brain activity related to the control of actions, the drudging up of memories, and things that involve self-image.

The results were nothing less than amazing to me. When Coke and Pepsi were presented to participants in a blind test, their brains did not respond. When Pepsi was presented with its label, their brains did not respond. When Coke or Pepsi was presented with the Coke label, bingo, their brains lit up. Wow! It seems Kalb really did find the perfect quote to reinforce this concept in his presentation …

“Brand is the relationship between a product and its customer.” — Phil Dusenberry, chairman of BBDO Worldwide

Sure, when I talk about it, I tend to go a bit further to conclude brand is the relationship between a product and everyone (customers or not). But both ideas and the concept basically demonstrate that brand is not the product. Brand exists in the world of perception.

Another reason I like the Coke brand so much is because it provides an excellent example of something else I’ve discussed. The consistency of behaviors, actions, or messages can reinforce or detract from the brand. And, the closer a perception is to reality, the easier it is maintain. Coke is beautifully consistent and its messages continually reinforce its brand and reality.

This is true, so much so, that if you walk into a store and find one damaged can of Coke, you are likely to conclude the grocery store clerks are responsible. Yet, if you purchase a bag of Fritos and a tiny pinhole or other damage has allowed the chips to become stale, you are likely to conclude something happened on the Frito-Lay production line. Why is this? Brand.

The same can be said about the concept of polls. In the AdvertisingAge article that I’m about to link to, Matthew Creamer asks what the whole Best Brand poll really means. Robert Fronk, senior VP for Harris' brand and strategy consulting group, is wonderfully honest about it.

"Some of these polls are done for newsmaker purposes, as you know," he said. "Our PR firms love these quick little things to be able to work with."

And so do journalists. And so do bloggers. In some ways, no matter what the methodology is, we are preconditioned to give polls and surveys more validity. When it comes from Harris Interactive, even more so. In fact, I frequently raise an eyebrow when the methodology seems flawed, the number or respondents seems light, or someone assumes a poll does much better than provide a snapshot at the moment, assuming you have the right demographic mix.

In this case, I have to agree with Fronk’s assessment that on one hand, a one-question poll is not going to help a brand marketer. On the other hand, the one-question poll doesn’t diminish the fact that certain companies come to mind.

Sony, for instance, which held the top spot for the last seven years, dropped to No. 2. Does this mean Sony is doing something wrong? Probably not. Personally, I like Creamer’s take on it. He correctly attributes it to Apple’s ability to dominate the portable music-player category. Dell, which had been in the second spot last year, drops two spots to No. 4 this year. Maybe it has to do with their need for a new advertising campaign.

Hey, that was fast. It seems Michael Dell wasn’t joking when he said he wanted to reboot the Dell brand.

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Tuesday, July 24

Publicizing Bans: ERE Network

Although I've always liked David Manaster, CEO of Electronic Recruiting Exchange (ERE) Network, which is the largest active community of recruiting professionals online, he recently published something on his blog that left me confused. There seems to be little communication logic behind publishing the banishment of a member from his organization.

"To date, I've avoided posting about this decision because I didn't want to needlessly embarrass anyone (which is also why I am not using her name in this post)," he wrote. "However, my lack of explanation and transparency in decision-making has resulted in a number of people publicly speculating about what happened, and that is further disrupting the experience of the silent majority on the ERE site — the exact opposite of the intended effect."

While the most obvious is that silence always leads to speculation, there are several other problems with his post from a communication perspective. Today, I'll share the first two. First, Manaster writes that "the other 49,990 members of the network don't care about these personal disputes." Yet, that didn't stop him from sharing this personal dispute with the rest of the world. Second, since everyone in ERE already knew who he was talking about, how does not mentioning her name make any difference?

Now it seems Karen Mattonen, the person Manaster referenced in his post, wants to know too. She posted several questions along with her side of the story, which includes, among other things, dated e-mails and several other names of those involved. One of the e-mails is from Manaster that says: "We can have any conversations that we need to via email, and they will remain private unless you choose to take our conversations public. What is it that you would like to discuss?"

Regardless of which side (if there are sides) people fall on, one thing is certain. It is never a good idea to publish someone's banishment (or loss of employment) on a blog because it broadens the debate and could potentially lead to other problems. In fact, companies might like to know that even journalists will respect "no comment" if the explanation would force the CEO to share a personal evaluation about a former member or employee. A better answer might have been: ask Ms. Mattonen.

Sooner or later, someone always comes forward with additional information that could cause a communication crisis, one that seems to lend itself to a case study. In this case, the person who came forward was Mattonen herself.

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Protecting Consumers: King County


Some people misunderstood me when I suggested local governments might have better things to do than require quick service restaurants like Burger King, McDonald's, and Wendy's to post calorie counts on their menu boards.

The King County Board of Health can be counted among them. Although the New York City case hasn’t had its day in court, new labeling requirements in King County, Washington, now call for all chain restaurants, those with at least 10 branches nationwide, to list calories, saturated fat, carbohydrates, and sodium in each regular food item they serve.

"The Board of Health is responsible for passing laws to protect the health of the public, and to promote healthy behaviors that improve health and prevent illness," Board of Health Chairwoman Julia Patterson said. "There is no better example of our commitment to residents' health than the legislation passed today that protects us from dangerous trans fats and promotes consumer education and informed choices by labeling menus."

May I offer another suggestion? Do what they do in the United Kingdom (as illustrated above) and force these restaurants to say what you mean: “eating large quantities of food may lead to obesity.”

Before you think I am only being sarcastic, CPSI and Public Citizen say almost exactly that in the subhead of their release, which touts who has joined them in “support of rule to combat obesity epidemic,” after they filed a friend of the court brief in the U.S. District Court for the Southern District of New York supporting New York City’s Board of Health against a lawsuit filed in June by the New York State Restaurant Association.

“The stakes in this lawsuit are high,” said Deepak Gupta, a lawyer at Public Citizen who wrote the brief, according to the release. “A victory for New York City’s law could help clear the way for similar laws throughout the country.”

But will it really solve the so-called obesity epidemic? As James Vesely points out in his humorous (or maybe tragic) column in the Seattle Times, “Yoder, whose place is popular with knowledgeable diners and serves as many calories as the next guy, is exempt from the calorie count on his menus — it depends on how many eateries you operate. So Anthony'sHomePort is not exempt, but along Shilshole's watering spots, Ray's Boathouse next door is exempt. Same calories, different menus. A menu at Denny's will be draped with calorie numbers; the one at Metropolitan Grill will not.”

Vesely then says that the new, calorie-clad menus are not going to be popular, or particularly useful. I agree. Despite all the money spent on lawsuits (money that could be applied to consumer education about a healthy diet), consumers are likely to tune them out.

Sometimes we tune them out for good reason (besides the occasional chuckle): Sainsbury’s peanuts warns us that they contain nuts; an American Sears hairdryer warns us it is not to be used while sleeping; and, one of my personal favorites, found on a blanket: not to be used as protection from a tornado.

So please forgive me if I do not feel any safer knowing that 20 states, cities, and counties are considering legislation or regulations that would require fast food and other chain restaurants to provide calories and other nutrition information on menus and menu boards.

The most obvious truth is, when you get past all the spin on an issue like this, the snack, cookie, and soda aisles at our local grocery stores take up the most space for a reason. They're yummy.

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Monday, July 23

Preserving Freedom: Net Neutrality

According to Ghost In The Machine, written by Sharon Herbert, more than 29,000 comments were submitted to the Federal Communications Commission (FCC) since it opened an inquiry into net neutrality. An additional 670 comments were filed by groups and individual Internet users on the deadline, July 16.

So is that it? Theresa Hall reminds BlogCatalog members that’s not it. She wrote U.S. Senator Barbara A. Mikulski (D-Maryland) with her views that Internet service providers should not be allowed to discriminate by speeding up or slowing down access to Web content based on its source, ownership, or destination.

How did the senator respond?

I understand your concern that the Internet should not favor certain content or services over others. I believe that the Internet is not only an important tool, but a vital resource. It has allowed millions of Americans to communicate instantly with people around the world. It has put access to libraries of information at everyone's fingertips. The use of the Internet continues to grow, and the ways we use it continue to expand. Your views on network neutrality will be very helpful to me as Congress considers this issue.

As someone who frequently works in political arenas, I might point out that Sen. Mikulski's response is largely neutral, demonstrating little movement from her position last year. This is surprising to me, given Maryland state legislators acted on their own to put a mandate into place.

So what is this all really about? Some, like the New York Times, suggest it has to do with Verizon Wireless, Sprint Nextel, T-Mobile, and others always being afraid of the competition, which is why iPhone is only available from one carrier (in Europe, you can change carriers any time regardless of the phone you want). In the years ahead, that competition is likely to include companies like Skype and Google, which have called on the FCC to open up more equipment and software options in the wireless industry. In fact, Google is looking for another leap forward with a wireless spectrum in which chunks of radio frequency currently used for analog TV would be freed up by a switch to digital.

Regardless of this behind-the-scenes wrangling, however, the real stake holders in net neutrality are people like you and me because we funded its creation with a combination of tax dollars and subscription fees. Without net neutrality, Internet carriers would very feasibly be able to control content on the Internet by favoring those sites willing to pony up cash for the carrier; or, as they have with mobile phones, lock up technologies so they can be exclusive providers; or create steeper tier systems similar to cable programming; or, quite possibly enforce net censorship.

I suggest, as always, education is the key to understanding. Catch the entertaining video version on YouTube, keep up to date by visiting sites like SaveTheInternet.com, and write U.S. senators and representatives in your state so you have a better understanding of their positions.

In fact, I am doing the latter today and I'll be happy to share their responses in the days ahead. Good night and good luck.

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Saturday, July 21

Turning Tassler: Jericho Rangers


One of the greatest successes made in the past few weeks by Jericho fans is that Nina Tassler seems to have been turned into a “Jericho buzz believer.” Rob Owen, with the Pittsburgh Post-Gazette even captured part of the puzzle of what turned Tassler around from saying as go the ratings so goes the show.

It seems beyond 20 tons of nuts; dozens of forums; thousands of mainstream and social media stories; and tens of thousands of calls, letters, and e-mails; her entire life was immersed in nothing but nuts and Jericho.

While buying a piece of camera equipment at a neighborhood store, the clerk saw Tassler’s name on her credit card… "I sent you an e-mail,” he said.

When she was about to receive test results from a new doctor … "He comes in with his white lab coat and puts his hands in his pocket … and pulls out a bag of peanuts," she said.

And even now, Tassler finds that when she goes out to plug other shows, like the questionable Kids Nation, the talk always turns to Jericho fans making history.

As Tassler talked it over, she says it dawned on her that this was an example of the “social networking" that the fast-talking, 30-something head of CBS Interactive, Quincy Smith, was always bringing up. And she has even acknowledged that taking Jericho off the air for several months last season "maybe wasn't good for the show."

But let’s hang on that “maybe” for a moment. While I’ve grown to kind of like Tassler, lest we not forget she’s always been a dancer. Even when asked by a critic asked whether she had ever disagreed with CBS’s CEO Les Moonves two years ago, she qualified her answer a little bit…

"Hmmmm. No."

Rule number one, according to Tassler last year, is you never say no (at least when you are, um, hearing a pitch). In fact, that is why in October 1999, even though she said she was worn out after the long "pitch" season as head of drama development for CBS, she took a last minute cell phone call from a producer friend who begged: "He said, 'Look, I don't know if you're going to buy it, but I promise you it'll be the most entertaining pitch you've ever heard. I said okay...."

The show, of course, was CSI. But I submit that Tassler has changed a bit over the past few years as president of CBS Entertainment. And that will continue to be important for Jericho fans to remember. She has long since abandoned her love of promoting great stories in favor of the ratings.

"We've really said to the fans, who have been incredibly loyal and incredibly devoted, 'You have got to be our "Jericho" Rangers. You've got to recruit more viewers,'" Tassler has said. "And so far, it looks like that's what we're going to do."

Of course they are, and then some. Even though we are only in the summer rerun schedule, not a week goes by that I don’t receive a reminder to watch Jericho. But even more telling is that these fans, after Tassler plugged jerichorising.com too early (there’s nothing there yet), had a revelation...

If Jericho is to be saved for a complete second season and then a third, it will not be by anyone at CBS. It has to be by the fans. And to do that, they have to move ahead, carving out what is being called Jericho’s Coalition of the Willing.

What this means for CBS is simple. Even if the fans do not overrun the ratings at the start of Jericho’s second season (I think they will because few shows have this much buzz), CBS will be unable to say the fans didn’t do their part. That will be an odd position for the network because social media can be a double edged sword. The more organized fan efforts are today and the more vested they become, the more likely 20 tons of nuts may be an appetizer.

At the same time, Jericho fans might remember that Tassler has gone to bat for many dramas over the years, perhaps even too many. So while there is little doubt her earliest comments conveyed she was uncommitted to the show, I also believe she was likely one of the first advocates to bring Jericho back because of the buzz.

What’s the point? If fans want to turn Tassler from a “Jericho buzz believer” into a full-fledged “Jericho Ranger,” only ratings will do it, no matter what is being said.

Why? Because there may be some reality to the rumor that an abbreviated seven-episode season 2 was to offer closure. And the only way to debunk this notion is to turn even more people beyond Tassler into Jericho buzz believers too. That and, as several stated before, DVD sales.

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Friday, July 20

Revealing Ethical Realities: PRWeek/MS&L

Some public relations professionals and communicators scratched their heads because I didn't call for the resignation of John Mackey, CEO of Whole Foods Market, Inc. despite the obvious: what he did was wrong. Perhaps part of the answer can be found in the PRWeek/Manning Selvage & Lee (MS&L) Marketing Management Survey.

The survey polled 279 U.S. chief marketing officers, directors of marketing and marketing managers that are focused on consumer-generated media, integrated marketing, and industry ethics. Although some of the questions were somewhat phrased oddly (they are paraphrased here), some of the results might surprise you.

• Wal-Mart’s non-disclosure of its authorship of a blog was a breach in marketing ethics. 55 percent agreed.
• Julie Roehm’s acceptance of gifts and dinners from future advertising agencies was unethical. 46 percent agreed.
• Turner Broadcasting placing magnetic lights in Boston that resembled bombs was a breach. 41 percent agreed.
• Microsoft acted unethically in providing Windows Vista on laptops to technology bloggers. 32 percent agreed.

Clearly, there seems to be some confusion over ethics. Originally, I was going to write something about this, but then decided it might be fun to run a poll to see what some readers think first. Which of the following do you think constitutes the greatest breach of ethics? You can vote for only one (and some might not be ethical breaches); we'll share our take on it next week (after the poll closes).



Incidentally, the MS&L survey also revealed that 17 percent of senior marketers say their organizations have bought advertising in return for a news story; 7 percent said their organizations have an implicit/non-verbal agreement with a reporter or editor to see favorable coverage; and 5 percent of marketers said their companies had paid or provided a gift of value to an editor or producer in exchange for a news story about their company or its products.

So much for the notion that all journalists are somehow pre-equipped to make the right ethical decisions. As I have said before, ethics begins with the person and not the profession. Bloggers have an equal opportunity to be ethical and to suggest they cannot, as some people do, only indicates their own propensity to have an ethical lapse.

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Thursday, July 19

Telling No Truths: Whole Foods Market, Inc.

"I sincerely apologize to all Whole Foods Market stakeholders for my error in judgment in anonymously participating on online financial message boards,” says co-founder, Chairman and CEO John Mackey, Whole Foods Market, Inc. “I am very sorry and I ask our stakeholders to please forgive me."

With the lead up to his apology and the very limited number of people he apologized to, I’m not sure this was the best decision, but the fact that this decision was made means fun time is indeed over. Given the possibility that Mackey did not act alone (or at least was not anonymous to everybody who perused Yahoo financial chat boards) while playing the part of the great masked Wild Oats stock vandal, “rahodeb,” it might be for the best. Will it work? Probably not.

Make no mistake, the Whole Foods Market, Inc. board retaining the firm of Munger, Tolles & Olson LLP to advise it during an independent internal investigation means that the damage down the road may very likely exceed “rahodeb” having fun at the expense of others. (The SEC began its investigation the day before.)

While there may be many revelations made during the internal investigation (let alone the SEC investigation), the need to investigate seems to mean: more people may have been involved (it’s hard to keep a secret identity secret for that long without sharing) or they feel a need to analyze whether any of Mackey’s comments did in fact impact Wild Oats stock at any time (online or off). Even more obvious, Whole Foods Market, Inc. wants to apply one of the few “golden no comment” clauses that most journalists respect.

"The Company intends to fully cooperate with the SEC and does not anticipate commenting further while the inquiry is pending." ... "The Board will refrain from comment until the internal investigation is completed."

Why does the “golden no comment” clause work? From a communication perspective, provided the board doesn’t start to squawk, refraining from comment during an investigation gives the company a badly needed pause in its communication, which to date, can be likened to someone hemorrhaging at the mouth. To be clear, the board is concerned about something enough that they feel it is prudent to censor their outspoken CEO for fear it will get worse before it gets better. Most journalists will respect such restraint provided it holds.

Why doesn’t the “golden no comment” clause work? Once a company issues the statement that silence is golden during an investigation, reporters have a nasty habit of looking for anyone and everyone for input and opinion. It almost assuredly increases speculation 100-fold because journalists can no longer turn to the primary source and they have to go out and look for new sources. There is also the risk of someone developing a Deep Throat complex and leaking information to the media, whereby the company won’t be able to respond to any of it unless it gives up its communication blackout. And once you give it up, it’s not fair to ask for it back.

There are other major downsides to applying “no comment during an investigation,” including: all other company news becomes irrelevant (you can’t effectively talk about produce in the room but skip the part where the elephant ate half of it); it makes the company look like there really is a fire under all that smoke (whether there is or not); and, finally, most importantly, it contradicts the concept that someone always talks (because they almost always do).

So, given the company's statements, we have moved from “whole” truths to “no” truths in the case study of Mackey and Whole Foods Market, Inc. Or perhaps, more appropriately, since others are ready to pick up where Mackey left off, we have entered the spin zone where there will be ample hot air about how it’s unfair to comment on a CEO because, as Laura Goldman submits, “I checked with lawyers and confirmed that the postings themselves are not illegal.”

With no disrespect intended, Ms. Goldman is right that this incident should not undo all the good work Mackey has done nor does it invalidate Whole Foods Market, Inc. as a viable company. However, even Journalism 101 students know that you can always find ample lawyers to argue either side of a case. Heck, that’s what makes court reporting sensational enough to have plenty of programming.

Besides, I think journalists and stock traders have been surprisingly kind to Mackey; it’s the public relations and communication people who seem to want his head the most (I’m in the minority by not asking for it, though I think he may have lost it anyway with the apology). Unfortunately for Mackey, I also think the split opinion over his fate will solidify in time; the reactive silence will point most in one direction.

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Wednesday, July 18

Increasing Awareness: Organ Donation

If you trend “organ donation” on BlogPulse, an automated trend and search system for blogs developed by Neilsen BuzzMetrics, you’ll notice a spike yesterday. Today, when the results post, it will be larger.

Why the sudden interest in organ donation, a topic that generally sees only one or two mentions in the mainstream media? Two words: Antony Berkman.

This awareness spike is why I sometimes think of Berkman, president of BlogCatalog, as the polar opposite of Andrew Keen. Berkman believes social media can do great good and, every now and again, he sets his sights on an underserved or underreported social awareness issue to prove it.

Last time, members of his social blog directory focused on education, a campaign that directly benefited more than 1,000 students through DonorsChoose.org.

This time, after members requested an international issue, Berkman settled on organ donation. And, with an assist, BlogCatalog.com even received some mainstream media attention, including Medical News Today (the number one medical news search engine with 1.7 million visitors a month), drawing attention to what has become a global member-driven social awareness campaign. For his part, Berkman encouraged scores of bloggers to make history by participating in the campaign. It looks like they did it.

So who are these bloggers? As an open social blog directory, BlogCatalog.com members include people from all over the world, each with a blog (some have several), who cover a diverse range of topics. But today, most of them focused on some aspect of organ donation, depending on what best served their readers.

Some focused on success stories like Alex Pratt, who suffered from kidney disease for more than 20 years until finding a match at Matching Donors, some wrote on the darker topic of the Black Market as recently covered by Slate Magazine, and some asked their readers to visit OganDonor.gov or provided links to programs within their own countries. Others included how many people are waiting for transplants, ranging from more than 1,700 in Australia to over 2 million in China.

“When you look at the numbers, it’s very frightening. People are dying because they need organs and there are not enough available,” Berkman told me when I asked for NBCB why he chose the sometimes controversial topic. “So we asked ourselves what would happen if we chose one day to make organ donation the most talked about topic on the Web, and then asked our members to write around this important issue.”

Berkman says he is inspired with each new post on blogs like Go! Smell The Flowers, Healthy Lifestyles, and Sensibilid (AD). Together, he says, he knows they have all made a difference.

I think so. Not only does it raise awareness, but it shows me that we often find what we look for in the world or on the Web. Whereas some people work to support antidotal thinking that suggests social media is evil, Berkman employs it to encourage people to do good.

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Tuesday, July 17

Flapping Over Flags: City of Las Vegas


In May, I wrote about a local controversy over Towbin Hummer's 30-by-60-foot American flag and how the Las Vegas City Council ordered it down after residents complained that it was just "too aesthetically unpleasing, too commercial, and too loud."

Today, The Las Vegas-Review Journal reports that the Las Vegas City Council will rehear the case on Aug. 1. The reason: District Court Judge Michael Villani sent the issue back to the City Council on Friday, finding that business owner Dan Towbin should have been allowed to have an attorney represent him before the council.

Adding this quick update seems especially appropriate today because while the Las Vegas City Council will discuss whether flying the American flag is "too aesthetically unpleasing," Nevada brothels were just given permission to advertise their services in Nevada counties where prostitution is illegal.

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Selling Sex: Nevada Brothels

Steve Sebelius, editor of CityLife, seems especially happy in his post on July 12, reporting that U.S. District Court Judge James Mahan made a ruling for summary judgment on behalf of the plaintiffs in Coyote Publishing et. al. v. Heller. He should be: CityLife has some new potential advertisers.

What is Coyote Publishing et. al. v. Heller? It is a lawsuit filed by Allen Lichtenstein, general counsel to the American Civil Liberties Union of Nevada on behalf of several newspapers, that sought to void two state statutes that prohibited brothel advertising in counties where prostitution is illegal.

Right. Although some people do not know it, while the majority of the state allows legal prostitution, the two largest populated areas, Clark County (including Las Vegas, North Las Vegas, Henderson, Boulder City, and Laughlin), and Washoe County (including Reno and Lake Tahoe), do not have any form of legalized prostitution.

I co-wrote, with our former employee Ellen Levine, a feature on this subject for a First Amendment magazine back in 1994, when the Clark County Commission attempted to hinder legal and licensed escort services from passing out handouts because they were “a pedestrian hazard.”

Some of the arguments were sound, like those of Jim McDonald, a vice squad detective for the Las Vegas Metropolitan Police Department, who said once non-prostitution escort services were licensed, they had a tendency to add services until it was often difficult to distinguish whether they crossed the line or not. Other arguments were not so sound, those made by the Clark County Commission at the time, claiming “handicapped people in wheelchairs might not be able to get by someone handing out fliers.”

To be honest, it was hard not to sympathize (a little) with police officers despite the fact that escort handouts were protected by the First Amendment. Why? Well, a lot has changed since then; but in 1994, a modest $1 million per year paid five officers to make approximately 20 arrests per night. At the time, there were only about 200 illegally working girls in Downtown Las Vegas (considered the lowest) and up to five times that amount on the Las Vegas Strip (where the girls worked casino bars), depending on what events were in town.

But for the department, they also had a daunting task because many tourists have heard that prostitution is legal in Nevada, but do not know it is illegal in Clark and Washoe counties. Risqué escort advertising only reinforced the confusion. In fact, Thalia Dondero, then a Clark County commissioner, told me that the confusion would be even worse if it wasn’t for the restrictions of brothel advertising. (Brothels in other areas of the state could not even buy a tombstone advertisement in the Yellow Pages.)

Of course, the new federal ruling changes all this, allowing brothels that are legal in neighboring counties to advertise their services in counties where prostitution is illegal. I can only imagine the confusion will increase tenfold.

Despite leaning toward being a First Amendment purest, I wonder what this ruling might mean for the rest of the nation, given there are many legal products restricted and/or barred from advertising, tobacco and alcohol included. I can’t help but wonder if Judge James Mahan’s logic means it might even be okay for Amsterdam businesses to advertise hash in the United States.

I appreciate this might sound strange coming from someone who assisted a few gaming properties in their case to loosen or remove casino advertising restrictions, but my reasoning was pretty clear then: legal casinos have a right to advertise anywhere gaming is legal. But this new ruling, which I have yet to form an opinion about, seems to suggest legal businesses have a right to advertise even where their products or services are illegal.

“But for our part, the motive wasn't financial. (We're not going to get a raise, or avoid a cut in pay, because of this lawsuit.),” says Sebelius. “The motive was philosophical: We honestly believe that telling a newspaper it cannot accept truthful advertising from a legal, licensed business is wrong. It's prior restraint, and it does violence to the First Amendment's guarantees.”

You know, I’ve always liked Sebelius. For the most part, he’s a straight shooter. But this time around, even I have to wonder when he suggests that Coyote Publishing et. al. v. Heller won’t be a boon for media outlets, billboard companies, and publications like CityLife.

“Speaking of money, some will argue that the corporate masters of CityLife pursued this litigation only to make money from brothel ads. Personally, we don't think there's a gold mine there, but certainly, making money is what corporations do,” he said.

No gold mine? In Storey County, money made from licensing brothels generates the county’s entire operational funds. In Lyon County, the licensing supports most if not all of the county’s hospital. In fact, Dennis Hof, owner of the Moonlight Bunny Ranch and Bunny Ranch Two in Lyon County, has already said he will be tripling his advertising budget to go big in Reno.

Hmmm … I’m starting to think, no matter what anybody thinks of prostitution, that this First Amendment “victory” will eventually backfire, thereby allowing government to find new ways to limit free speech. Nowadays, you never know.

Monday, July 16

Underthinking Mackey: Steven Silvers

Is it possible to be right and wrong at the same time? Steven Silvers is the principal at Denver-based GBMS, Inc., a group of professionals who “understand the complex nexus of business, government, media and community in which organizations operate today.” And, as focused as he is on complex issues, his well-written post says the Whole Foods Market, Inc. crisis might not qualify. On one hand, he is very, very right.

There was little need for the Public Relations Society of America (PRSA) to send out a news release about "reputation impact of undisclosed-identity executive internet postings."

"Corporate executives in all areas of a company must be acutely aware of the ethical implications of communications they initiate, including those under the auspices of being a ‘private citizen,’" said Rhoda Weiss, national chair and CEO of PRSA, in the release (highlighted by Silvers) that aims to capitalize on the case with reactive comment.

Most people get that, I think, which is why Silvers proposes that the most simplified version of the Mackey study is “smart people sometimes do stupid things.” Then he goes on to write a better version of the release: “Don’t post comments on the Internet promoting your company’s stock and slamming your competitors while pretending to be someone else. This is wrong. You could cause a huge PR problem for your company. You’ll probably get sued, and you might be breaking the law. …”

It made me smile, before departing from his assessment a bit. It would be simple, but nowadays things have consequences that are not confined to where they belong. This will not be confined to Mackey. This will not be confined to Whole Foods Market. And this will not be confined to, well, anything.

The consequences, as expected, are likely to be tossed about by folks like Andrew Keen in his admittedly biased war against anonymity and amateurs on the Web. And perhaps, they will even reinforce the call for a code of conduct. And perhaps, there will be some new legislation. And perhaps, we’ll polarize it all.

“We have the most protected, covered, cautious and public relations-barricaded generation of leaders in history. Today’s tightly controlled, artfully packaged executives want to release and spout off, and they somehow think this is a forum where they’ll be held less accountable,” says Jeffrey A. Sonnenfeld, a professor of corporate governance at Yale. Indeed, and executives are not alone in feeling this way.

"It doesn't seem likely that investors who may have read these chat rooms would have had reason to act, thereby materially affecting the stock price, because the CEO's identity seemed to be concealed and the materiality of the comments made looks low," Stephen C. Chick, JPMorgan, wrote in a client note, adding that while Mackey's actions "lack judgment," they are unlikely to affect Whole Foods' stock price.

And there it is. Why is this case study complex? Under the surface of simplicity resides the very foundation of an increasingly challenging issue caused, in part, by public relations’ attempt to mold people into something they are not; the media’s shift to be less concerned with finding the truth and more concerned with gathering up polarized viewpoints; and the public’s desire to create labels for everyone but themselves, good or bad.

The concept that “perception is everything” has permeated every facet of our society to such a degree that most people are increasingly judgmental about the actions of others. And perhaps, it is from this very place where the desire to be anonymous in today’s society seems to have very little to do with people wanting to behave badly and much more to do about their fear of being judged.

Adding rules and increasingly strict guidelines on the Web will only make it worse. I propose our time and energy is much better placed in educating people that it doesn’t make much sense to lend anonymous sources credibility beyond a single comment. While some have better intentions, others have agendas.

"They [the FTC] are quoting rahodeb in some of their legal documents and no doubt seek to embarrass both me and Whole Foods through these disclosures," Mackey has said. In fact, Mackey reports he had fun doing it, implies that he has no regret or remorse, and doesn’t seem to know the difference between making casual anonymous comments about his competitor and manipulating stock.

Is it because he is eccentric or ignorant? Don’t be silly. Mackey isn’t typical, but he isn’t stupid either. He knows that the day he admits that what he did was wrong and apologizes for it will be the same day that the Securities Exchange Commission (SEC) will no longer need to prove that Mackey knowingly violated securities law, intentionally using his anonymous postings to manipulate price.

To be clear, of course what Mackey did was wrong. But virtually every outcome in this case will have little to do with reality and much to do with perception.

The Federal Trade Commission’s ability to prevent the merger will be based on perception. The outcome of the SEC investigation will be based on the determination of motivation, which will be based on perception. Shareholders will decide to buy or sell Whole Foods Market stock based on their perception. And the argument whether anonymity might be protected or abolished will be based on perception. It’s all based on perception because we live in a world that is increasingly focused on, well, perception.

After years of watching us trend toward creating pristine perceptions while nurturing the fear of being judged by others (who might discover the "truth"), maybe it’s time we remember that it is much more dangerous to allow the perception of a personal brand to drift dangerously away from reality and toward some idealized label than it is to manage a brand that represents who we really are; good, bad, or indifferent. (As even Albert Einstein once confessed, he only combed his hair that way for the benefit of the media.)

Or, in other words, Mackey might have considered it would have been equally “fun” to post his comments as himself. People would have the perception he was wacky (they do anyway) and there would be no crisis. But that's the simple part. The harder part is recognizing this issue is complex because we have made the environment complex.

Once we hung horse thieves, now we try to understand and justify them. Once we sought truth, now we celebrate opinion. Once people said what was on their minds, now they hide their thoughts unless protected under the veil of anonymity. Once we shopped because eating dinner with our family was fun; now we ask Whole Foods Market to make it fun for us. Simple indeed.

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Sunday, July 15

Questioning Perception: Geoff Livingston

Geoff Livingston, who pens The Buzz Bin, says the concept of "burying bad news and negative posts with a flurry of good news keeps coming up" again and again. He says it does on New Media Nouveaux and again online via an internal friend’s post at Pownce, which is a presence applicaton that allows you to send messages, links, files, and events to a defined network of friends.

Sure, I've seen this "bury bad news" tactic bantered about plenty: those who promote it (with qualified justifications) and those who do not (see rule 17). Some have even been suggesting that the Online Identity Calculator I employed on Thursday demonstrates why burying bad news and negative posts might work. It does not.

The argument for it is not new. It predates social media and is grounded in the argument that perception is reality. And there really is only one answer to whether that is true, um, sort of: yes and no.

In the world of communication (advertising, marketing, public relations, political consultation, etc.), people, products, and companies live and die by perception every day and all the time. But, to actively live with the mistaken belief that perception is reality is fraught with peril, delusion, and consequence.

For the past 25 years, I've nurtured what once was a .49 cent store-bought spider plant that has followed me from Las Vegas to Los Angeles to Las Vegas to Reno and back again. As you might imagine, after two-and-a-half decades, the plant has grown quite large — around 7 feet in diameter.

Anyone who visits my home is compelled to comment on the spider plant, usually something like "that is the largest spider plant I have ever seen" or "my goodness, your wife must really have a green thumb" (my wife always corrects them) or "you do a beautiful job at taking care of your plants, they are all so healthy."

Although several of these statement grace truths, all of them are really perceptions. Sure, I smile, nod, thank them, but never am I silly enough to believe that their perceptions, as welcome as they are, are grounded in reality. The truth is that my spider plant was in desperate need of a transplant; a pretty big job given the amount of soil and pot size. So despite its rich green color and vibrant leaves, I had been ignoring my plant much like some people ignore their personal brands.

The worst of it occurred while I was on holiday. One missed watering and record aridness (we are now the most arid city in the nation), prompted me to dig a little deeper past all the lush, beautiful green outer leaves to find, um, a crisis. While perception seemed to dictate everything was okay (except some minor bruises), the plant had three major problems: it had created a root layer that was preventing water from reaching the lower layers of the soil; the lower layers of the soil were bone dry as a result; and the plant had literally uprooted itself, with a good 3 inches exposed.

Fortunately, I am good with plants so I managed to save it. Of course, now it only measures 5 feet in diameter and will take a couple of days, if not weeks, to fully recover. I even potted all the babies to produce what will be another beautiful plant. So what does my plant have to do with personal brand?

You can bury bad news and negative posts all you want to create the illusion of a huge and beautiful online image, but sooner or later something will need to be done beyond burying damaged roots with big leafy stories.

Now I cannot go as far as Livingston does and say that all "bad news or negative posts" need to be addressed very publicly (every situation is dependent on too many factors to apply a formula), but I do agree that burying anything is an erroneous idea. As I mentioned when I shared the first sliver of my Fragile Brand Theory, brand damage is generally proportiate to the discrepancy between perception and reality.

Saturday, July 14

Rating Jericho Reruns: E! Online & Buddy TV


Despite having the disadvantage of returning for a summer rerun schedule during a long holiday weekend when many people were traveling, Jericho won its July 6 time slot. This leaves everyone, including E! Online and Buddy TV wondering whether Jericho succeeded in capturing new viewers or those responsible for the cancellation protest.

Given all the curiosity that non-viewers have, wondering what they missed before the controversial cancellation; the enthusiasm of existing fans; and several creative though inconsistent fan-generated campaigns; I'm more convinced than either entertainment media outlet: the bulk of the Nielsen families watching the show were primarily new viewers and the most diehard of Rangers (those fans who could watch a rerun front-to-back and back again).

However, I'm less convinced that the recap show did much to secure new viewers as this spliced together story line was just as jarring as it was when Jericho returned from that ill-fated mid-season hiatus last time. But, the only indication we will have whether the strategy to air the recap (and not another regular show) worked will be the number of viewers who stayed on for the full episode at 10 p.m.

It seems to me that recap shows appear to work better for reality TV than serial dramas, and even then those are painful to watch. That said, perhaps a better indication of Jericho's future success will be if items like the May 29 edition of Daily Variety that is up for auction on eBay will actually sell.

With a starting bid of $2.99 and s/h cost of $5.30, I can only imagine what that might one day mean for those who purchased fan-generated items prior to the return of the show (or the six people who won Copywrite, Ink. "Covering Nuts" T-shirts after I spoke at yesterday's IABC/Las Vegas luncheon).

Will Jericho memorabilia eventually match Veronica Mars or The Black Donnelley? I suspect we really won't know until more episodes are ordered for Season 2 or CBS commits to a Jericho Season 3.

In the interim, there are several interesting online consumer marketing approaches out there and today I'll mention two. First is Remote Access's weekly Jericho guest blogger feature. Second is the art for Jerichon 2007 produced by "rubberpoutry" for Guardians of Jericho as it appeared in the Jericho Times.

Jerichon is a convention being held by fans in the least likely convention hotspot of Oakley, Kansas. While some fans were concerned about the lack of accommodations in Oakley (despite Oakley having some Jericho-like characteristics), the Hays Daily News is all abuzz about the prospect of welcoming 300-500 attendees in a somewhat off the beaten path location. Then again, you never know. No one expected thousands of wayward rockers at Woodstock either.

In sum, although CBS, E! Online, and Buddy TV are sure to be watching the summer rerun ratings (that’s what they do), it might be everything but ratings that indicate the true temperature of this famous fan base. Hot or cold may ultimately be the indicator that attracts new viewers or not. It certainly won’t be CBS marketing efforts.

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Friday, July 13

Telling Whole Truths: John Mackey

According to the Core Values of Whole Foods Market, there is only one way to satisfy the needs of stakeholders. And that is to satisfy customers first.

Oh, make that two ways. According to The Associated Press (AP), John Mackey, CEO of Whole Foods Market Inc. (Whole Foods), found that posting under the anonymous name “rahodeb” was a pretty good way to satisfy the needs of stakeholders as well.

According to the story, Whole Foods announced it would buy Wild Oats for about $565 million, or $18.50 per share. But unfortunately, this comes after “rahodeb” posted the stock was overpriced; predicted the company would fall into bankruptcy; claimed it would be sold after its stock fell below $5 per share; declared Wild Oats' management "clearly doesn't know what it is doing;" and that the company "has no value and no future."

Obviously, “rahodeb” must have miswrote because Wild Oats does have value: $18.50 a share, which is sharply steeper the $5 per share that “rahodeb,” er, Mackey, um, "rahodeb" had hoped for as the masked Wild Oats stock vandal.

In fact, Wild Oats is so valued by Mackey, he has taken to misappropriating his company's public relations and social media communication to flame the Federal Trade Commission (FTC). Apparently, he is not happy they made his anonymous comments public in an attempt to block the merger nor does he accept that the FTC is trying to prevent the elimination of another competitor.

"As previously announced, we set an intention as a company to be as transparent as possible throughout this legal process, and this blog entry is my first detailed effort at transparency," said Mackey in a news release that neglects to reveal how posting anonymous comments on Internet financial forums for seven years might be transparent.

“I provide explanations of how I think the FTC, to date, has neglected to do its homework appropriately, especially given the statements made regarding prices, quality, and service levels in its complaint. I also provide a glimpse into the bullying tactics used against Whole Foods Market by this taxpayer-funded agency,” Mackey continues on his blog. “As stated in our initial press release about Whole Foods Market's challenge to the FTC's complaint, we set an intention as a company to be as transparent as possible throughout this process. This is my first detailed effort at transparency.”

Hmmm ... I suspect if there is any "whole truth" that could potentially win a fruit basket then “this is my first effort at transparency” must be it. Unfortunately, had Mackey done his homework, the best time to be transparent is before one damages personal credibility. So, what this all means is the happiness factor of Whole Foods (where I shop sometimes) is about to be spoiled.

How do I know? Well, some of the writing is already on the blog. Mackey, just days before this seven-year ethical breach came to light, published the graphic above for one of his more colorful, but long-winded posts, Conscious Capitalism: Creating a New Paradigm for Business. He says the image represents “a common view of the good, altruistic non-profit organizations versus the evil, selfish, greedy corporations.”

Overall, I don’t subscribe that the notion that this is really the "common view." It seems more likely to me that each company is charged with its own reputation management. And, with this responsibility, each is free to nurture positive public opinion in any it feels fit, starting with the behavior of its CEO.

But then again, if the "common view" is that corporations are “evil, selfish, and greedy,” it seems to me that any CEO who would attempt to drive down the stock prices of a competitor, under the veil of anonymity, certainly isn't helping this perception go away.

In sum, Mackey wants us to accept that there are truths, half-truths, and now “whole truths.” And while that might sound all fun and amusing (enough to start a living case study), the SEC isn’t laughing.

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Thursday, July 12

Calculating Identity: Career Distinction


After visiting Career Distinction and running its Online Identity Calculator on Tom Cruise yesterday (check the comments on the post), we started to wonder what would happen if we plugged in more people, ranging from notable bloggers to CEO bloggers to CEOs with no direct social media presence.

The mix is pretty eclectic, but it provides some interesting results. Keep in mind that our formula is less than scientific: we used the calculator (beta) to establish whether these individuals have an online identity that matches up with what seems to be their desired personal brand. Since the calculator only offers generalized definitions, we summed up the first three pages of a Google search.

Seth Godin — Digitally Distinct, 10
Desired: A bestselling author, entrepreneur, and agent of change.
Online: A leading marketing author and popular business blogger.

We picked Godin mostly because we had a hunch he would set the high water mark and, no surprise, he did. While there seems to be some slight variation between his desired and online brand, it’s only because the Godin brand overshadows the company he founded, Squiddo. In sum, his brand trends toward top online marketing expert/author (rather than entrepreneur and agent of change) and there is nothing wrong with that.

Johnathan Swartz — Digitally Distinct, 10
Desired: An approachable, likeable, creative, and unconventional CEO.
Actual: An approachable, likeable, creative, and unconventional CEO.

Swartz is the top CEO blogger for a reason. There is virtually no distinction between his online identity and his desired brand — he always presents compelling non-techno babble information to help businesses understand that technological advancements mean market opportunities as opposed to business threats. He does a near perfect job setting the cultural tone of Sun Microsystems and his views mirror what we’ve said for two years.

Jeffrey Immelt — Digitally Distinct, 9
Desired: A hardworking strategist who helped turn General Electric around.
Actual: A relentless workaholic whose biggest hope is everyone else can keep up.

Given Immelt devotes 12 weeks to foreign travel as one of our nation’s leading advocates for globalization, we’re not surprised he doesn’t have time to establish a direct social media presence. Still, as a Fortune 500 company CEO (top 10), others present who he is fairly well, with one small caveat — as much as he is admired, skeptics water down his ideas (despite results), leading us to believe he could score a 10 with a direct presence on the Internet.

Alan Meckler — Digitally Distinct, 9
Desired: A serious business executive and aggressive online CEO.
Actual: A straightforward executive who calls it like he sees it.

As one of the top 10 ten CEO bloggers, we’re not to surprised to see Meckler also scores near the top. There are some identity discrepancies, primarily because his writing and interview style come across as a tough-as-nails CEO when he’s much more approachable than that. Also, his view of Jupiterimages is obviously a bit biased when compared to his view of competitors, but we wouldn’t expect otherwise.

Scott Baradell — Digitally Distinct, 9
Desired: Accomplished brand strategist with corporate communications and journalism experience.
Actual: Journalist turned public relations strategist, which might explain why he never takes the industry too seriously.

With Baradell’s emphasis on public relations, media analysis, and blog entertainment, his online identity tends to shift away from brand strategist. But where his online personality works is that he is unquestionably adept at keeping things interesting. For evidence: check Media Orchard’s R Rating and his anagram post plug of Occam’s RazR among others.

Geoff Livingston — Digitally Distinct, 9
• Desired: A leading marketing expert and top-ranked marketing blogger/author.
• Actual: A seasoned marketing pro, social media analyst, and blogging guru.

For the most part, Livingston has achieved his desired online identity, especially since he has already been recognized as an area marketing blog guru by The Washington Post. Without question, he has some great posts that often cross over into legitimate trade journalism. With a book set for release and several post serials worth reading, he’s coming close to the tipping point. If there is one area to improve, it’s remembering that too much focus on others won’t brand you as a leader.

The Recruiting Animal — Digitally Distinct. 8 (7)
• Desired: The most outrageous and entertaining recruiting blogger and online radio host in history.
• Actual: The most outrageous and entertaining recruiting blogger and online radio host in history.

There is little doubt that The Recruiting Animal has achieved his online identity. He is a classic example of being positively infamous, with his stage name often appearing where you least expect it (even in places his peers might have missed). What’s equally interesting to me is that if we plug in The Recruiting Animal’s real name, his score drops to Digitally Dabbling, but all of the information about him remains on target (just slightly more serious).

Les Moonves — Digitally Disastrous, 8
Desired: A seasoned old school programmer who became CEO of a leading mass media company.
Actual: A CEO with a dated programming vision who calls the shots with little explanation.

Given our coverage of the Jericho cancellation protest (and reinstatement), we noticed that Moonves tends to leave people completely confused. On one hand, he wants CBS to lead the digital charge, but then doesn’t give new media much credit. He dumped Imus and dumbed down CBS News despite what ratings say, yet argued that the original cancellation of Jericho was based only on ratings. Given he has no direct social media presence, his brand is shaped almost entirely by mixed messages that paint him up as a CEO who likes to say “because I said so.”

David Neeleman — Digitally Disastrous, 8
Desired: A relentless innovator who challenged the airline industry to do better.
Actual: An ousted CEO trying to prove his relevance after a company crisis.

I read Neeleman’s blog because I admire what he has accomplished. Some people don’t get this in our coverage of the JetBlue crisis. They won’t get it here either as we’ve noticed a dramatic personal brand shift since his departure as CEO of JetBlue. He insists he is comfortable with the change despite several interviews that suggest otherwise. It doesn’t help that "Montgomery Burns" has taken over his flight log. It’s supposed to be funny, but only it reinforces questionable choices in the face of crisis.

Jason Goldberg — Digitally Disastrous, 7
• Desired: A successful entrepreneur who is leading innovator of the online recruiting community.
• Actual: A young, brash executive who gets caught up in online controversies and spins like there is no tomorrow.

There’s a boatload of information on the Web about Goldberg. Unfortunately, most of it doesn’t seem to have any relevance to what he wants to express about himself or his company. Most of it is about blog controversies, blatant spin, and a sometimes questionable management style. Other times, however, Goldberg even departs from this identity too, which makes people wonder how seriously they should take him. The odd attack-feint retreat-attack-retreat tactic doesn’t help.

Amanda Chapel — Digitally Disastrous, 7
• Desired: A mysterious and provocative foil for the online public relations community.
• Actual: A collective of anonymous writers who believe all publicity is good publicity.

There is a lot of information about the collective Chapel on the Web, but more and more of it has little relevance to what they want to express about themselves. As time goes on, it will be nearly impossible to remove all the irrelevant information. Some people have asked about my interest in Chapel, since they come up on my blog every now and again. Truth be told, I’m more interested in why Steve Rubel, Mark Ragan, and even Shel Holtz continue to feed the Chapel credibility. Is the public relations industry that boring or afraid to debate that it needs an anonymous ghost to do it for them?

Add it up and all of this seems to reinforce the most basic premise of my Fragile Brand Theory. You see, in almost every case listed above, without exception, the closer their personal and online brands are to the reality of who they are, the greater their measure of success in maintaining that brand. It also demonstrates, in a couple of instances, how one handles crisis or controversy can also enhance or erode brand credibility almost overnight.

In closing, just to be fair, we ran my identity too. While there is some discrepancy depending on how you type in my name, I came out with a Digitally Distinct 8 and Copywrite, Ink. with a Digitally Distinct 9. This stands to reason: establishing an online identity for the company ahead of me is by design.

Wednesday, July 11

Branding Public Figures: Tom Cruise


I’ve been working on a mathematically provable brand theory for the last few months and Nicole Sperling’s article on Tom Cruise that appears in the July 13 edition of Entertainment Weekly provided a pretty good public figure example of its most basic (but not complete) premise.

She points out that Cruise’s brand used to be all about his boyish charm turned “rugged good looks, flashy smile, and three Oscar nominations.” But then something happened, starting just prior to the release of Steven Spielberg’s War Of The Worlds (photo above).

Cruise’s increasingly visible dedication to the controversial beliefs that accompany Scientology has produced brand instability and disastrous results. Most recently, on June 25, the German Ministry of Defense announced that “it did not want him to film United Artists’ upcoming WWII movie Valkyrie at the country’s Bendlerblock war memorial” because, according to ministry spokesman Harald Kammerbauer, Tom Cruise is affiliated with a cult.

The ministry has since backtracked, now saying their decision has “nothing to do” with Cruise being a Scientologist. Likewise, Cruise has made the case that he is always an actor first and foremost. Hmmm… neither statement seems very credible and there is a very simple explanation that fits in within the aforementioned theory, which we might call the “Fragile Brand Theory.”

The Fragile Brand Theory accepts the definition that a brand is the net sum of all positive and negative impressions of the subject, Cruise in this case, and then breaks it all down into something that resembles an atom.

Imagine Cruise (the person, not the brand) is like a nucleus that represents the reality of Cruise. It doesn’t really matter what this reality is because people will generally accept realities regardless of what they are, which is why very, very different public figures usually succeed (whether you like them or not): Rush Limbaugh, Paris Hilton, John Edwards, John McCain, Al Gore, etc. Really, it doesn’t matter who any of these people really are because while the nucleus is related to and can be impacted by a brand, it is not the brand.

Unlike the nucleus, brands are reliant on the collective public’s perception about people, products, and companies. As mentioned, they are the net sum of positive and negative impressions. Using the atom illustration, they might look like layers of electrons that circle the nucleus, with the strongest, most authentic electrons being closest to the nucleus, and those that are “made up” or “stretched” being the furthest from it. When too many electrons are too far from the nucleus, the more likely a brand will become unstable, collapse, or be ripped apart.

In a case study of Cruise, the 1995 off-screen Cruise brand came close to mirroring the image of the much-loved character Jerry Maguire (and most characters Cruise portrayed before that). He was a somewhat private but daring actor who, despite being overconfident at times (the classic pride comes before a fall syndrome so many of his characters endure), always managed to better himself and triumph in the face of insurmountable odds.

That is a very different brand than the post-2005 Cruise brand we see today. Now, most of his impressions seem to suggest an arrogant and impulsive actor who frequently uses his fame to argue controversial topics if not create controversy while promoting beliefs grounded in Scientology. Actor first? We think not.

Regardless of how you feel about Cruise, Scientology, his relationship with Katie Holmes (including the Oprah brouhaha), or his war against certain prescription medication (which was at least half right as supported to the extreme by John Travolta), the Fragile Brand Theory suggests whoever the real Cruise is (1995 or 2005) doesn’t matter. What matters is that current public opinion is a reaction to the realization that the 1995 brand they loved is apparently very different from the reality that seems to be.

Generally, if the majority of all electrons remain close to the nucleus, they are more likely to remain in place, creating an extremely strong brand that can withstand anything. But when the majority of all electrons are revealed to be too far away from the nucleus (or in contrast to the existing brand), it becomes unstable.

In other words, if Cruise always acted like he has over the last two years, recent events would hardly be considered controversial let alone impact his career. But, since he has not always acted like this (at least that is the perception), he is suffering from brand instability.

Personally, I don’t really know whether the old Cruise or new Cruise is the real Cruise, but what I do know is that the Fragile Brand Theory demonstrates why a public figure like Britney Spears will always find public sympathy after countless train wrecks and public figures like Mel Gibson will always receive public scorn over a single drunken outburst. En masse, the public does not like it when public figures do not meet brand expectations. (Eg. the Paris Hilton brand can go to jail, but she’s not allowed to cry over it.)

Or perhaps this provides a better example: Rosie O’Donnell can run amok at the mouth because we expect it; Oprah, on the other hand, has to be a bit more cautious as she presents herself to be a grounded and trusted advisor.

In sum, one of the most basic concepts within the Fragile Brand Theory suggests it is more important to stick with your brand choice — whether you choose a halo or horns — than the choice you make.

Of course, you also might want to keep in mind that if your brand is more made up than real, sooner or later, it will collapse under the sheer weight of contrary actions or be pulled apart by unanswered accusations made by more credible sources. It also assumes you or your consultants know how to brand from the inside out; sadly, many say that they can, but most cannot.

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Tuesday, July 10

Communicating For Success: Social Media

Over the past few weeks, I've infused a few posts on how understanding traditional human capital and internal communication might cross over into social networks. For the most part, it included theory without a proven case study.

When I wrote the article, I turned to Southwest Gas Corporation (Southwest Gas) to provide a case study because I knew it was the fastest-growing natural gas company in the United States and consistently benefited from an exceedingly strong internal brand. What struck me about the company then (as it does today) was that its employee-to-customer ratio had increased from 1:415 in 1994 to 1:537 in 2000, but the average employee had 11 years in with the company despite being largely based in a market where 2-3 years was the norm.

"We've continually asked our employees to do more with less," said Robyn Clayton, then manager of consumer and community affairs. "In return, we work hard to provide a satisfying culture and keep them informed. The result is a motivated, loyal workforce."

When Southwest Gas projected natural gas rates would rise the year before, it launched an internal communication plan months before the rate increase impacted the company. Because its leadership recognized that employees would be asked questions by family, friends, and customers in the field, early internal education proved vital to the success of the company (the model still used today).

"By developing a long-term plan that demonstrated we were forthcoming, employees and customers were mostly positive about the increase," explained Clayton. "It was challenging, but we succeeded in empowering our employees and eventually our customers to understand our rates reflect the market."

In other areas, Clayton said internal communication is consistent across departments and several vehicles are in place to keep employees informed. Each update is tied to a specific medium (print, video, etc.), depending on which best communicates the information. Tracking results is fundamental.

"Several months ago, we evaluated the need for an employee video," Clayton said then. "We found that the employees valued it, but wanted shorter programs. Today, we met those needs instead of cutting the program."

The company, which has maintained a successful volunteer program since 1985, also provides community service opportunities on company time. The investment has been returned tenfold: increased involvement, a stronger brand, and personal/professional development for interested employees.

"We have developed a culture that values service to our community," said Clayton. "It has given many their first experience and nurtured lifetime volunteers. Today, our employees take pride in the program and it attracts people with similar values."

It seems understanding human capital has paid off for the company: long-term employee recruitment, retention, succession, and culture building are as vibrant at the company today as it was when I interviewed Clayton then.

Applied to social media, similar (if not the same) results can be achieved by nurturing online cultures even more effectively than print, video, or other communication devices alone. It doesn't matter if the network is an added function of an Intranet or Internet.

Internally, social networks, assuming the communication is well crafted, can be employed to reinforce corporate culture, encourage isolated departments and remote locations to work better together, provide better access to top decision makers (such as a CEO), and educate employees about upcoming corporate changes in real time, which would help minimize any damage caused by misleading internal or external gossip (assuming the executive team doesn't start the rumor).

Externally or even independently of a company, the same techniques can be applied to an online community. While members of a social network are not employees, they do consist of a structure similar to any organization.

As such, they too have human capital. By increasing communication from key stakeholders and the most active members outward, social network stewards might be better able to manage anything and everything from complete network redesigns to the tone of the participants without enforcing rules or expectations that drive members away. As leaders, the most effective social network stewards set the tone and agenda through example much like the best run companies set the tone and agenda for employees.

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Monday, July 9

Measuring Success: Image Empowering

Updated weekly, it might take months before the Image Empowering blog by Stephanie Bivona ever makes the blogger B list, let alone the mythical A list. But does it really matter?

Not for Bivona. Her business strategy for Image Empowering drives her blog; her blog does not drive her business or its message. Her post today reflects this thinking — "The Law of Attraction" as popularized by The Secret suggests that our thoughts manifest what we have.

Although The Secret repackages "The Law of Attraction" and gives it a fresh look, the idea is not a new one. It has been around for a very, very long time with the concept interwoven into almost every pearl of wisdom ever written. In fact, it might even be scientifically provable within the context of quantum physics.

Applying “The Law of Attraction" is also pretty good at debunking the myth of how some people measure social media success, especially among blogs. You see, I know Bivona’s blog will achieve all of its objectives despite never chasing traffic or blog rankings for one simple reason.

As one of our new social media clients, Bivona knows that the success of her blog or any future social media project is that traffic or artificially created rankings are myths being pushed by those who benefit from them the most.

The only people who seem to forward such discussions like A-List Bloglebrity, which uses Technorati to determine your standing in the blog community, are those who already have some rank. (Bloglebrity is similar to the equally popular What’s Your Blog Worth or even Alexa traffic ranking for that matter.)

While these measures are fine for virtual water cooler conversations, it’s silly to think they mean much more than that. Case in point: when this blog broke the top 40,000 on Alexa for a few days, we noticed the average length of time our readership stayed on the blog was reduced from 4-5 minutes to a mere 60 seconds. So what did we really achieve? Not much more than what I just mentioned — it’s an interesting water cooler conversation and opportunity to compare the power of one post to a direct mail postcard.

So while we thought it was pretty nifty, we also know that generating traffic and inflating page rank is pretty easy to do. We know all the tricks used by others, ranging from slanted SEO writing (even if the sentence structure makes no sense) and echoing other blogs (by adding gratuitous links) to weighing in on controversial topics (especially if you take a minority view) and being painfully trollish (like calling people names in the comment sections). For our part, we don’t employ these tactics (though SEO writing seems to come natural) because like Bivona, we’re not after traffic for the sake of traffic nor blog rank for the sake of blog rank.

You see, Bivona is not chasing traffic or blog rank; she’s attracting clientele and creating a means to provide constant contact with her existing clients. Thus, her blog becomes a multi-faceted tool that she has employed as a means to that end. Sure, casual visitors might benefit as her weekly posts shed some light on the importance of empowering your personal image.

Yet, her decision to enter social media was not to become an “A-list blogger,” which would require a different strategy all together. Instead, her blog provides an efficient and effective means to brand her full-service image consulting firm, which is her second business (she also owns a successful practice that buys and sells other companies). We’re even retained to play a part in its development; taking care of some details so she can focus on her clients.

Some of this fits in with this blog too. While our strategy is a bit different than Image Empowering, it’s no less dismissive of traffic or blog rank for the sake of traffic and blog rank. We believe, like any successful business does, that it is best to measure results that match your objectives, whether those outcomes are profitability, market share, niche dominance, or any other measure. In other words, it might be tempting to jump on the traffic and blog rank train, but doing so might produce the opposite of what you desire.

But isn’t that the way it is with everything? When you begin to adopt other people’s measures of success — blog ranking, traffic ranking, attractiveness, self-confidence, wealth, whatever — you run the risk eroding your business strategy (or self-confidence) because one size or measure of success does not fit all.

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Friday, July 6

Gambling Impressions: Disneyland

Disneyland. It's the happiest place on earth; and the place I'm writing from today.

But is it really the happiest place on earth? Or maybe, Disneyland is simply very, very good at messaging. After all, the welcome packages are sprinkled with pixie dust, and come with a commemorative coin.

If negative impressions are eight times more impactful than positive impressions, then it takes 80 positive impressions to erase a negative impression. So the question is: will I have enough positive park experiences to forget the two hours I waited in the hotel lobby at check-in because my room was not ready? Hmmm... probably. There are a lot of positive impressions to be found; some of which almost seem too good to be true — like being told the wait for breakfast will be up to an hour (it was three minutes).

Don't get me wrong. We're having a great time. And at the end of the day, we will have fond memories of the visit. That's the point. Very few places can gamble impressions like Disneyland and live to talk about it because so very few have 80 positive impressions around every corner or in their red back pocket. But Mickey, well, he's one smart mouse.

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Thursday, July 5

Protecting The Net: Network Neutrality

While we were all celebrating the Fourth of July yesterday, it was easy to forget that the Federal Trade Commission (FTC) has decided to abandon net neutrality and allow telecom companies to charge Web sites for access. It's a clear blow to the principle called "network neutrality" that preserves the free and open Internet.

The are only ten days left for bloggers and other people who use the net to make their case before the FCC. At Save The Internet, you can learn a lot about the importance of network neutrality. And you can add your story to the thousands who believe like I do, that the Internet belongs to the people. Congress might remember its role to protect its people wherever they may be, even online.

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Tuesday, July 3

Declaring Independence: United States

We've all heard the saying that a picture paints a thousand words. While often attributed to James Kirke Paulding's phrase "A look, which said as plainly as a thousand words," the aforementioned sometimes falls short as it does with this document, which is often considered the most masterfully written state paper of Western civilization (and under 1,000 words).

United States Declaration of Independence
Introduction & Preamble


When in the Course of human events, it becomes necessary for one people to dissolve the political bands, which have connected them with another, and to assume, among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed, by their Creator, with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.

That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or abolish it, and to institute new Government, laying its foundation on such principles, and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object, evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.


The entire document can be found here. Happy Fourth of July!

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Demonstrating Leadership: Social Media

A few days ago, I mentioned a distinction between management and leadership of a social network. But the difference doesn't just apply to social media, it applies anywhere there is human capital.

Much like companies or organizations can apply the concept "human potential is an asset" internally (employees or members), they can apply the same thinking to social networks and online communities, which are made up of seemingly uncontrollable people. These people don't need management like Andrew Keen or the collective Amanda Chapel prescribe, both who fail to see "human potential as an asset" but rather as something that needs to be managed.

No, no, no. Any time the rules of management are applied to people, especially online, things go terribly wrong. Given tomorrow is Independence Day in the United States, it seems almost too fitting to point out our country was founded on the distinction between management and leadership. Oversimplified, but accurate. England had attempted to manage the colonies. John Adams, Benjamin Franklin, Thomas Jefferson, Robert R. Livingston, and Roger Sherman (among others), offered something else — leadership.

Whether it be the day-to-day operation of any business or social network, if executive and network owners recognize their members as human capital and connect with them, their ability to demonstrate leadership can accomplish great things.

In my study of human capital a few years ago, Geri Travis, senior vice president of Aon, a Fortune 500 consulting company, filled me in. She said that any time management can connect and communicate with employees, it develops credible leadership.

There is no question. Credible, involved leadership—through direct contact, communication, and team leaders (if that applies)—will build employee loyalty, which will translate into loyal customers. In determining the value of an employee, Travis said companies need to look beyond the cost of replacing an employee. Rather, the real hard costs are determined by looking at how many people a disconnected employee impacts every day.

"If employees feel discounted from the company on the job, you have to wonder how much business is at risk," she said. "When companies are in crisis, the consistency and frequency of communication can be just as important as the message. Suspicion and mystery can cause employee disconnect more than the crisis."

At the time, it was apparent that companies were finding ways to do more with less. Travis said that inclusion remained the best solution. Along the way, quantitative (eg. surveys) and qualitative (eg. focus groups) measurements can help create a dialogue between management and employees. (Today, social media can add to the dialogue with employees, and also consumers.)

"Companies spend millions on branding their product, but not their people," Travis said. "Yet, by defining the culture of the company, you would be in a better position to retain, recruit, and build loyalty with the kind of employees you want."

It is sound advice that can be applied anywhere. Much like the best companies, the best social networks are those that lead people. For example, Antony Berkman at BlogCatalog is challenging bloggers to do good by collectively writing about social awareness issues. Or, in a strange sort of odd, loud, and unpredictable way, The Recruiting Animal at RecruitingBloggers.com often skips over the body of an idea and goes for the engine. While their styles are vastly different (which is why I picked them), both are very adept at defining an online culture through leadership, not management.

In sum, if you want to build a successful online community, treat it like a successful business that is sensitive to human capital. Manage the site, widgets, links, etc., but not the people. All people need, much like the greater online community, is a little bit of leadership.

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