The Perfect information storm

As a TV news junkie, I find it interesting that there seem to be two main subjects dominating the talking heads. The first is what ever celebrity has had a break down, been arrested, etc. The second is the messages regarding the economy. While we can always argue from a political perspective how good or bad it is, the way the message is being delivered is fascinating from a messaging and marketing perspective.

For one thing, the message is being disseminated by various talking heads, each representing not just their own point of view, but also the respective investment house or research institute they work for. This leads to a massive amount of confusing and often contradictory information being passed out. It is not uncommon on CNBC to see person A claim that things are great and the economy is finally on firm footing only have person B claim the exact polar opposite.

While I find this maddening to watch one person tell me that the sun out is a good sign and another tell me that the sun out will lead to more skin cancer it is an interesting view to communications theory. This is the perfect information storm. A lot of it confusing and often completely contradictory. This is where the Corporate Communications plate come into play.

Sadly, while many would like to live in a black and white world, the world is really built into shades of grey. But it is our job as communications professionals to offer the best counsel they possibly can. Yes that can offer mean offering unconventional advice.

Take for example the current year that the Boston Red Sox are having. They are out of running this year but as a true fan I can't say the season was a failure. Yes if you set the bar high (winning the pennant) then they aren't going to have a successful family. But if you look at over all performance, overcoming difficulties and adversity, I would argue they have had a very successful season.

The is much information circling the airwaves these days. In some respects the best talking head is combination of facts and information, but also preparation and skill by their own PR or corp comm people. The fact that a certain person's message is being repeated is a combination of both the right message, but also let's not forget the hard work and skill of the PR person behind the scenes doing the message development and pitching the speaker.

Earnings are up, so what about spending some on marketing?

Recent news reports have shown that publicly traded companies are garnering very strong, even record earnings during the first part of this year. To be honest this is not coming from natural growth but from massive across the board cost cutting. Once again we are seeing the short sighted formula of cut costs and make the numbers look good for the quarter end. I would recommend that these companies who intend to avoid irrelevance during the next decade do the following two things.

First of all, spend the money on R&D. As we all know the life cycles of products are growing shorter and shorter each and every year. What was very hot two years ago is now ever so passe. I wonder if Fox wishes they had spent more on researching the market around Myspace before plunking down God knows how much money for a product that is being blown out of the water by Facebook.

Secondly, I would recommend spend money on marketing. This is an excellent time to take advantage of your less far sighted competitors and create a revised and/or deeper image in the marketplace. Most organizations virtually shut down operations during times like this. Planning on campaigns is usually suspended and the planning includes just enough effort to keep some sort of plan going but that's it.

Instead, if you want a company that will emerge from this period stronger and more prepared for the rebound which seems coming quicker than expected than start marketing now. Marketing is an investment and you need to be there to take advantage of what will be a rebound in demand. During this recession a great deal of ink has been spilled about comparisons to the Great Depression. What few people remember is that after the Great Depression and WWII came an explosive growth in all types of demand. That is why the Federal Reserve is so concerned about inflation.

By planning marketing programs now and having them enter the minds of your target markets, you will be well positioned to seize the reins of future economic growth. If you decide to wait until the market shows signs of growth, you may be like the person who decides they do not wish to be too soon to the train station. By the time you arrive, the train may have left the station.

Tom Peters once said that a company can not grow by cutting and that is very true. In order to be successful and grow your company, you need not only a successful marketing plan, designed for periods of both growth and decline, you need to be in a position to capitalize quickly and ahead of any changes in the market. Market leaders drive what happens; followers spend all their energy trying to keep up!

Managing from fear!

Beyond a doubt with live in panicky times. Now my own belief is that we will be looking back on this period in five years wondering what all the fuss was about, but none the less the current temperament is one based on fear. I find it interesting and would like to talk about how much of today's decision making is based on fear. For example there was an interesting report, one which helped to drive the markets, that said most corporate CEO's think the recession is ebbing and business is returning to normal, yet they were afraid to make any investments for a number of reasons.

Also, if you look at Capitol Hill, there is a discussion going on about health care. I don't think anyone would argue this is a necessary discussion and one that may be long overdue, what seems to be the issue is that we are hearing we need to do it now or gloom and doom will prevail, or if we do in fact do it now, time to wait for the for gents on their horses. The only common denominator is fear.

That seems to be the problem with both government and business today. Both of these supposedly intelligent bodies are in fact paralyzed by that fear that leads to paralysis. If you recall what FDR said during his first inaugural address , "The only thing we have to fear is fear itself." Every school child knows that quote. What is less known is what he said after. He described the fear gripping the nation at the time as nameless, "unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance." While today is not any where near as dire as it was during the depression, despite the work of the chicken littles of the world to make it seem that way, we are working and living in an environment that is the opposite of the irrational optimism of ten years ago. Ideally, we should find a middle ground to live in but that is not likely to happen anytime soon.

What we need is for business leaders to actually be leaders for once. Stop thinking you can control everything and realize that there is actually some risk in the world and taking a short term loss for long term success may actually be good. I know that is anathema to the titans that be but it is also the truth. Risk free reward is not going to happen! Mindless risk as we know is very harm full but doing a 180 degree turn is not going to fix anything. How nice it would be to see managers take a real calculated risk and then once or twice take a leap of faith and maybe help get everything back to what passes for normal!

Oh what a terrible morning

Well I had the chance to meet a colleague last night who was interviewing for a job. The hiring manager told her there was a project which unto itself is not that unusual. However, he wanted her to design a marketing and communications program for the next 3, 6 and 12 months for the company's principal product line. He wanted her to treat this as if she were working for the company. Needless to say she didn't do it and though it cost her the job it just goes to show another example of hiring managers trying to get something for nothing because they think they can.

Another sorry example I heard about was from a WSJ online article about a hiring manager who will not speak to anyone who is unemployed and expects only employed people willing to work for his company. I may be wrong, but I believe the article also said that he wouldn't pay to move people and would only pay a small increase. Now first of all the PR person who placed this article doesn't really get the idea that you are supposed to make your client look good when placing them in front of the news media. Sadly, this made them look mercenary and not interested in hiring the best candidate available.

I am still gobsmacked, to quote my British friends that the Sox blew a 9 run lead against the Orioles last night. This is the Orioles people!!! You don't lose to the bloody Orioles! Just a bad game and hopefully the worst one of the season!

OK I am tired of these gray mornings and want some nice summer sun! It does come out in the PM and gets hot and muggy. If it does that again today I am so heading for the Dairy Queen up the street. If not, I will try and get some work done but it is so hard to focus because there is no bright sun to cheer us along!

Oh and I am on a self imposed Michael Jackson boycott. From this point on, I refuse to discuss what is already a stale news topic. Maybe I can help achieve my ultimate goal of putting TMZ out of business!!!

What a great start to the weekend

Oh what a great way to start off a weekend. First, the Sox swept the Yankees and showed off all of their most glaring deficiencies. Chiefly, that the Red Sox have great pitching and real talent. Even C.C. Sabathia, who the Sox owned during the ALCS in 2007. While he pitched better here it was no where near enough to help the Yankees. Also, why is that bozo Johnny Damon still in left? With his arm if he was a third baseman and Big Papi hit a slow roller up the line I would give Papi a 50/50 chance of beating the throw. Papelbon was once again the closer of the year we all love him for. I love that look he gives when he is about ready to throw!

Well some economists think the worst of the recession is behind us? I can't help but think of someone in Banda Ache who on December 27, the day after the Tsunami, said, "Well thank God that's all done with." I am not seeing any improvement from the business end of things and am finding banks still as tight with money as ever. They government wants them to loan out more money but they keep saying we only support a new business who has a sustainable business model, (e.g has revenue) which is silly since I can't get a business started without support, but can't get support with out a loan. Hopefully the economy rebounds as sharply as it went down?

The heavy rain was a nice way to wake up this morning. I can't speak for others but I like sleeping with heavy rain going on. It's a treat and you have to enjoy the small things in life. At this point, have a life of few regrets and those few regrets should revolve around what you didn't do for your friends and loved ones.

Well I am spending part of my weekend trying to finalize the name of my company. This is tough because we went something memorable but it's difficult to be descriptive without going into a 25 word name. So please wish me luck!

Enjoy your weekend!

Rick