Goldman Sachs’ New PR Strategy Makes Headlines

Posted by Shannon M. Wilkinson, May 4th, 2012

Today’s Dealbook reports that “Goldmans’ chief executive, Lloyd C. Blankfein, appears to be embarking on a subtle campaign to help repair the company’s reputation”.

Michael J. de la Merced observes that “in March, the company hired Richard Siewert Jr., a former Clinton press secretary who was a senior adviser to Treasury Secretary Timothy F. Geithner until last year, to head public relations.” His article goes on to detail the challenges he faced.

It is a fascinating look at how the über experts are rehabilitating a controversial Wall Street image….layer by strategic layer.

The Power of Prestige: No Fiction Winner Demonstrates Pulitzer Prize’s Influence

Posted by Shannon M. Wilkinson, May 1st, 2012

When the Pulitzer Prize winners are honored at Columbia University later this month, one category will be conspicuously absent. For only the 11th time in the prize’s 95-year history, its board did not award the Pulitzer Prize for Fiction. One might attribute such inaction to a dismal year in fiction writing, but the ensuing uproar of disapproval suggests that this is an issue of perception and influence rather than literary crisis.

Like other awards such as the Nobel Prize and the National Book Award, the Pulitzer Prize is important because we regard it as an authoritative and discerning arbiter of excellence. Since it is also so widely aspired to, it does more than honor extraordinary cultural achievement. It provides a quantifiable boost in sales to the sort of work that otherwise might not get the attention it deserves in the marketplace.

Strong influence leads to significant expectations

With such influence come significant expectations, though, and this year’s lack of a fiction winner has left many disappointed. Literary professionals are particularly incensed, including the Pulitzer jurors who read hundreds of submissions only see the board decline to recognize the three books they selected. “We were all shocked,” juror Susan Larson told NPR. “The Pulitzer is too prestigious and crucial an award to book lovers, authors and the publishing industry to be sporadically — and unaccountably— withheld,” wrote another juror, Maureen Corrigan, in the Washington Post.

Struggling publishers and booksellers were also understandably upset. “I can’t imagine there was ever a year we were so in need of the excitement it creates in readers,” author and bookstore owner Ann Patchett lamented in the New York Times. Many readers, too, were left empty-handed. Entertainment Weekly‘s Stephan Lee described how his “mother, whose first language is not English, would always buy and spend a painstakingly long time to read and understand the Pulitzer-winning novel each year.”

Ambiguity leaves room for negative conclusions

This isn’t the first Pulitzer-less year in fiction, but the prize’s administrators should consider the fallout. If guaranteeing a prize every year would compromise its integrity, they could consider implementing a more transparent selection process. It’s unclear whether the board deemed all of this year’s fiction finalists unworthy or merely failed to reach the majority consensus required to select a winner. Such ambiguity leaves room for too many negative conclusions.

Corrigan offers some additional suggestions in her Washington Post piece, including eliminating that majority requirement and simply letting the jurors make the call. “We were invited to serve on the jury because we’re recognized as being, in some way, literary experts,” she said. “Why, then, turn the final decision over to a board primarily composed of non-literary folk?”

New York’s literary community may find some solace in Mayor Bloomberg’s recent announcement of the new NYC Literary Honors. The silver lining for the publishing industry is that sales of all three Pulitzer fiction finalists are up. And bookworms now have not one but three great options for their next read, though none will bear that esteemed Pulitzer Prize stamp.

Selling You on Facebook: Setting a Price on Trust

Posted by Shannon M. Wilkinson, April 26th, 2012

The Wall Street Journal’s “Selling You on Facebook,” examines the Facebook-based economy for gathering and selling  personal information. Going forward, these companies–and Facebook–will have  to weigh the importance of building trust with their customers against how aggressively they will pursue their revenue streams.

Great Expectations: The Importance of Understanding What Customers Want from Social Media

Posted by Shannon M. Wilkinson, April 23rd, 2012

As having a social media presence has come to be expected of companies, using it to effectively engage with a burgeoning customer base is not only a smart move, but often a critical one.

The most effective social media strategies are tailored to a company’s brand and audience—and they use the medium to interact with, not just broadcast to, audiences.

New York Road Runners, the organizer of the New York City Marathon and numerous other area races, is growing “by Olympian proportions,” according to the April 2 issue of Crain’s New York Business (subscription required). But as it expands and experiences “growing pains,” some members feel that NYRR’s communications haven’t been sufficient, particularly when it comes to social media. Some of its most dedicated members have come to feel ignored and alienated.

NYRR’s problems point to a larger disconnect in the way companies are using, and customers are experiencing, social media. A recent survey by the CMO Council and Lithium reveals that, while many companies believe that customers are connecting via social media because “the content is agreeable,” the majority of customers expect to be rewarded for their engagement with an additional level of interaction.

A great model for such interaction is Starbucks, which was recently named the most socially engaged company in a study by research firm PhaseOne—in addition to being named one of the most innovative by Forbes. Starbucks has “focused its Web page, Facebook page and television advertisements on the individual and his or her individualized experience with the brand,” according to the survey. Social Media Today highlights how the company has fearlessly encouraged “spirited discussion not only of its products, but also of the company’s positions.” Such engagement isn’t new for the coffee chain. It launched its popular interactive website MyStarbucksIdea.com back in 2008 and has been an “early adopter” of social media, including offering the first-ever nationwide deal on Foursquare and staging successful promotions such as Free Pastry Day and Tax Day.

Talking about the company’s social media efforts in 2010 Advertising Age report, Starbucks’ Chris Bruzzo hits the nail on the head: “This was not [built as a] marketing channel, but as a consumer relationship-building environment.” If NYRR would take a similar approach, it could harness the extraordinary potential of its members in support of its growth. Social media is most effectively used when the flow of information is in both directions.

What’s in a Definition? Public Relations—Past, Present and Future

Posted by Shannon M. Wilkinson, April 20th, 2012

Last month the Public Relations Society of America updated its definition of public relations for the first time in three decades, arriving at the following statement after months of lively discussion and input:

“Public relations is a strategic communication process that builds mutually beneficial relationships between organizations and their publics.”

In addition to sparking plenty of healthy debate, the new definition provides an opportunity to reflect upon how the field has evolved from its early 20th century origins, which The Economist examined in a fascinating 2010 article. So, what has and hasn’t changed about public relations over the last century?

The importance of honesty, transparency and mutually beneficial relationships certainly hasn’t. In 1906, Ivy Lee, one of public relations’ founders, issued a “Declaration of Principles,” in which he wrote that “our plan is frankly, and openly, on behalf of business concerns and public institutions, to supply the press and public of the United States prompt and accurate information concerning subjects which it is of value and interest to the public to know about.” He also viewed public relations as a “two-way street” between clients and the public. Though Lee did stray from them, those principles resonate today, perhaps even more so with the advent of the Internet and social media.

The speed and complexity of public relations, on the other hand, have changed drastically, resulting in the free flow of information through an ever-expanding array of channels. PRSA’s updated definition aims to address such changes, but language like the phrase “strategic communications process” also reflects the prominent role that reputation management has assumed in the industry. As we mentioned last year, Elliot Schreiber, PhD, wrote a must-read PRSA blog post stressing the importance of “a formal, strategic process” for reputation management. The United Kingdom’s Chartered Institute of Public Relations also emphasizes reputation in its own definition of public relations.

 We’ll never reach a consensus on such a definition, but the debate is a valuable touchstone. It reminds us of public relations’ founding principles while also encouraging us to prepare for what its future holds.