Frenemies with Benefits: Engaging Your Critics

Ron Loch
June 6th, 2011
“Like clockwork.” It’s a phrase used to describe a smooth operation, consistency, reliability. But look inside a timepiece and you’ll find that for the hands to move forward they must engage a gear that moves in the opposite direction. For businesses, a similar connection with contrarian forces can help make for smoother operations and greater success. Making “frenemies” can have its benefits.

For most public relations professionals, negative clips and comments historically have been viewed as fires to be put out, often with the overwhelming force of reach and frequency. However, with the dominant role social media play in society today, disgruntled customers or concerned citizens can match the reach and frequency of even the largest Fortune 100 company as long as they have a compelling story to tell. More than ever, a new mindset of engagement is needed – one that embraces contrarians as key stakeholders.

That’s what Domino’s Pizza did in 2009. Despite being the world’s largest pizza delivery chain, it decided to embrace its critics to help improve its product. Convening focus groups of dissatisfied customers, the company’s leadership was subjected to criticisms of its product ranging from the most common, “tastes like cardboard,” to the sublime “there’s no love in Domino’s pizza.” As the market leader, the company really didn’t have an immediate need to change. Being the leader in convenience and price was more than enough to make it successful. But rather than ignore the criticism or combat it with positioning, the company changed its signature pizza recipe, from crust to toppings.

(This post is an excerpt from “Frenemies with Benefits: Engaging Your Critics,” a G&S Insight newsletter article written by Ron Loch, senior vice president at Gibbs & Soell Public Relations. He leads the firm’s Greentech & Sustainability Practice, collaborating with G&S colleagues specializing in advanced manufacturing and energy, agribusiness and food, consumer lifestyle and building solutions, professional services, and technology and general science.)

Go East, Young Man

Jeff Altheide
November 15th, 2010

Sure, we’ve all read about it in business magazines.  But attending the PR & Media China Congress in Hong Kong recently, sponsored by the Asia Business Forum, showed me first-hand the rapidly evolving state of our profession in this dynamic business environment.

Two days of presentations from corporate PR leaders, agencies, NGOs and researchers (coupled with my meetings with Gibbs & Soell agency partners in Hong Kong and Beijing the balance of the week) left me in awe of the complexity, diversity and light-speed change inherent in the region.

Just a few highlights:

Media Relations?  Changing.  While “pay to play” still rules with some media, journalistic professionalism is increasing and reporters are open to bigger stories that explore market trends and research or business development perspectives from corporate leaders.  They’re interested in stories about large scale businesses and how multinationals have grown.   

Social Media?  Changing.  Media coverage in the U.S. has emphasized the Chinese “Great Firewall” and restrictions and blockages of foreign social media sites in the country.  But there were multiple examples discussed of Chinese citizens fighting or supporting companies and organizations through online communities.  One story had 200 Smart cars being sold on Taobao (a prominent retail site) in just over three hours via a Groupon-type discount promotion.  Many Chinese citizens are active and opinionated posters on QQ and other popular channels.

Investor Relations?  Changing.  According to Gibbs & Soell partner Strategic Public Relations Group, 2010 saw the first-ever listings on the Hong Kong stock exchange for companies from Russia, Canada, France, Germany and Mongolia.  The Chinese government is expected to eventually remove or reduce restrictions on citizens owning foreign stocks.  More investments and more investors… more need for dynamic investor relations services.

Corporate Social Responsibility?  Changing.  While many companies still see CSR as philanthropic photo ops with oversized checks, the dedication to and sophistication of corporate programs is improving.  Oxfam Hong Kong reported the number of Hang Seng Index companies voluntarily responding to its CSR Survey doubled from 34 percent in 2008 to a 74 percent response rate in 2009.  While much work remains, Chinese companies are taking broader CSR initiatives more seriously and the local media are increasingly holding them accountable. 

Speaker after speaker, example after example, I couldn’t help but think of the exciting time ahead for PR professionals and businesses in China.  I’m glad G&S, our partners and our clients will be a part of it.

(Guest contributor Jeff Altheide is a senior vice president at Gibbs & Soell Public Relations and oversees growth strategy and innovation for the firm.)

Weakness Has Left the Building

Ron Loch
July 1st, 2010

At a recent swim meet I attended, one of the swimmers was wearing a t-shirt that said, “Pain is Weakness Leaving the Body.” 

I immediately rushed to use that bit of inspiration on my daughter who was getting ready for a race.  I promptly received the “Dad, you’re lame” look.  But I do find it to be an inspiring point of view; if not for my teenage daughter, perhaps for organizations striving to become more sustainable

Change, even when it makes an organization stronger, is often painful. 

This is reflected in a survey of CEOs by the United Nations Global Compact and Accenture.  Of the 720 executives surveyed, 93 percent said that sustainability is important to the strength of their organization, and 80 percent believe that fully integrating sustainability across their business will happen within 15 years. 

However, nearly half pointed to the complexity of implementation across functions and competing strategic priorities as significant barriers to an enterprise-wide approach to sustainability.  These are common barriers that often fatigue important initiatives and stress communicators charged with implementing organizational change. 

In fact, the same change management principles we employ when communicating about mergers and acquisitions, downsizing or restructuring apply to creating a corporate sustainability mindset. 

  • Gain sponsorship from senior executives:  The power of the C-suite is critical to establishing sustainability as a business priority.  If it is crucial to the success of the organization, that importance must be reinforced with nearly every interaction.
  • Deliver relevant messages:  It’s not enough to tell employees why sustainability is important to the company; they need to know why it’s important to them and their career.    
  • Rethink how you communicate success:  Competing priorities suggest that reward systems are out of whack.  If production numbers are traditionally promoted, but not energy cost reductions, then energy conservation will not appear to be a critical business priority.  Forget tradition and look at communications through a new lens.
  • Create feedback loops:  Talking at employees produces little change.  Create ways for employees to engage in the conversation about sustainability initiatives and you can gauge your success in making it a company-wide priority.
  • Grin and bear it:  Let’s face it; change communications can be a pain when you are fighting entrenched interests and legacy processes.  But, take heart.  You’re helping to build a stronger, more successful and sustainable enterprise. 

After all, that pain is just weakness leaving the organization.

 (Guest contributor Ron Loch is a senior vice president at Gibbs & Soell Public Relations. He leads the firm’s Greentech & Sustainability Practice, collaborating with G&S colleagues specializing in advanced manufacturing and energy, agribusiness and food, consumer lifestyle and building solutions, professional services, and technology and general science.)

The Power of Story Telling

Ron Loch
June 24th, 2010

During my Industrial Ecology class the other night, the professor talked about the influence of stories in the evolution of social and environmental awareness. 

There were Upton Sinclair’s “The Jungle,” which led to a call for meat inspection standards, John Muir’s “The Yosemite,” which inspired the creation of a national park system, and Dian Fossey’s “Gorillas in the Mist,” which rallied support for protecting endangered species. 

Each was a story that connected emotionally with people across social, geographic and economic boundaries to inspire understanding and action.

It made me reflect on a discussion I had last week at a G&S event on CSR leadership.  The particular exchange focused on the challenges of pursuing sustainability in organizations that are highly decentralized.

How do you get divisions that are at different stages in their journey toward sustainability to embrace and align with a corporate directive? 

The answer is to share more stories; stories that will motivate the line worker as well as the division president. 

Forget the PowerPoint slides filled with facts and figures.  Find an emotional connection that will get them excited.  

The outdoor clothier Patagonia provides an excellent example of this with its The Cleanest Line blog.  With stories of outdoor adventure, the blog helps crystallize the importance of both the products they sell and their commitment to sustainability without specifically mentioning either.    

Stories are powerful motivators.  In fact, I think the old saying that starts with “give a man a fish and you’ve fed him for a day” needs to be revised. 

Forget about teaching him to fish.

Tell him a good story about the big one that got away and he’ll want to fish for a lifetime.

(Guest contributor Ron Loch is a senior vice president at Gibbs & Soell Public Relations. He leads the firm’s Greentech & Sustainability Practice, collaborating with G&S colleagues specializing in advanced manufacturing and energy, agribusiness and food, consumer lifestyle and building solutions, professional services, and technology and general science.)