IABC International Conference – Shelly Lazarus

Shelly LazarusShelly Lazarus, the Chairman and CEO of Ogilvy & Mather addressed the issue of Building brands in China: Challenges and opportunities.

Highlights:“This is not your parents’ China” China is emerging as a world force.

60 million downloads of a Motorola viral marketing video clip by the BackDorm boys

James McGregor: China is the largest startup and the largest turnaround the world has known.

“You must read your history if you want to have an effective China strategy.”

China is building a modern economy from scratch.

“In China it’s happening all at once. … What would take 50 years in other places happens in China in 20 years. … This is the economic equivalent of Formula 1 racing.”

Of Ogilvy’s 1,000 employees in China, 90% are Chinese.

50% of the work that Ogilvy does in China is for local brands.

Ogilvy also does work for global brands. “But the work is a very delicate balance. You have to take the global brand and make it relevant for China and Chinese culture. Lazarus showed a KFC commercial produced in China and directed to a Chinese audience that echoed themes of family and social responsibility – with very western music.

Ogilvy operates as an integrated communications company in China. This fits both the company’s desired 360 degree positioning and the Chinese condition. The Chinese did not have a history of advertising and PR and other marketing disciplines working in isolation. So, it made sense to integrate them.

Ogilvy’s PR discipline in China represents a proportionately larger share of the company’s revenue than in any other part of the world.

“The best advice I can give you for your China strategy? Focus on your brand.”

“We are the new. We are the future. We are Lenovo. That might be the message for all Chinese brands.”

China Mobile has 250 million subscribers. It has been ranked as the fourth most valuable brand in the world by Milward Brown.

“The 2008 Beijing Olympics will be the biggest coming out party the world has ever seen.”

“Talent is the number one issue in China. … There are not enough experienced people for all the growth. … Ogilvy conducted over 3,000 interviews to hire 345 people. … We’ve had to be very creative and aggressive in our outreach. … Outreach is only a start. Retention is the really hard thing. It’s the biggest problem we face. … We train them. And they they’re stolen for twice the salary. … You have to promise them a career path.”

Interesting presentation from a razar sharp mind.

 

 

IABC International Conference – Tom Keefe

UPDATE: Tom Keefe has posted his slides for this presentation at the IABC Cafe.

Tom Keefe

Tom Keefe tackled the subject Building and online community: New medium, new challenges?

He cited the June 2006 Fast Company cover story, observing that social media sites are growing up and technical barriers are going away.

Most importantly, people are interacting with other people, not just with computers.

Keefe identies three key elements that must be present for community: people with common interests, common location and interaction.

  • Traits that build online community include:
  • Trust: Trust is necessary in both a living and a virtual community. In an online community, trust is built through taking a person’s word that they are who they are.
  • Support: In an online community, one of the biggest things that we give to one another is support. Technical. Practical. Intellectual.
  • Commitment: People must have commitment to post and maintain their content as fresh.

The common element to all communities is communication – communication which spans social, emotional and intellectual dimensions.

He pointed to tagworld, friendster, linkedin as examples of online communities. In particular, ebay has been particularly successful in creating a community with a high trust quotient.

He pointed to the RSA (Royal Society of the Arts) as an example of a successful small-world network.” The small-world network has many advantages over hierarchy:

  • better connected
  • faster responding
  • more fault-tolerant

Social media are being integrated into companies. However, not all forms make sense in all situations. “Walk before you run (or you’ll risk chasing your management away from the idea.)”

He illustrated the challenge of introducting social media into companies by referencing his employer Volkswagen Credit. Externally, Volkswagen Credit is podcasting and has a MySpace presence. Internally, they have RSS availability and some Sharepoint services.

Volkswagen introduced podcasting at the 2006 Detroit Auto Show. Results? They saw a 31.6% click-thru rate for an emil to owners announcing our podcast project. Interveiw podcasts received 13th rank in A&E category

The company produced another podcast for the April 2006 New York AutoShow.

Volkswagen’s presence on MySpace was used for the GTI campaign. They also created MySpace profiles for fast and Helga.

The IT Department has not been enthusiastic about social media. It is important for communicators to work with IT to explain to them how social media can be a benefit to the company.

At present, Volkswagen does not encourage employees or managers to blog. There continues to be a concern about confidentiality within the company. Tom’s own blog is a personal blog.

IABC International Conference – Carol Kinsey Goman

Carol Kinsey GomanCarol Kinsey Goman provided an overview of research that she recently completed comparing the grapevine with formal communications channels.The Grapevine is a powerhouse communication medium in every organization.The grapevine is pervasive. It is present in every organization.According to Goman’s research, when confronted with a major difference between messages delivered by in a speech from senior leadership or the grapevine, 47% of employees would believe the grapevine compared to 42% who would believe the leadership statement. 11% would attribute a blend of credibility to the two sources.Looking at a major difference between a message delivered in an official newsletter (online or print) or the grapevine, only 40% would believe that grapevine compared to 51% who would believe the official newsletter. Anecdotal evidence suggests that many people trust the written word – “Ïf it’s written, it must be true.”

74% indicated that they would choose to believe a direct supervisor compared to 24% who would believe the grapevine. It all depends on the quality of the relationship. People will believe supervisors with whom they have a good relationship. Other supervisors will not be credible.

Finally, 89% would trust a trusted co-worker over the co-worker. Trust is the operative word here, “I don’t gossip with co-workers I don’t trust.”

We can’t stop the grapevine. It is pervasive. It has speed. And now blogs are like the “grapevine on steroids.”

While formal communications are effective to an extent, the grapevine should not be ignored. It will play a role for some people much of the time. Seen this way, the grapevine could be a powerful vehicle to align the company around communications.

The grapevine accelerates

  • When there is a lack of formal communication.
  • Anytime there is an ambiguous or uncertain situation
  • When there are no sanctioned channels for venting
  • When change is impending, and
  • When there are heavy-handed efforts to shut it down.

There is a gap between senior and lower management. Lower managers are more likely to recognize both the existence and the effectiveness of the grapevine.

Managers can influence the grapevine by

  • Understanding the conditions that increase grapevine activity
  • Respecting employees desire to know
  • Increasing participation and influence
  • Sharing the bad news as well as the good,
  • Monitoring the grapevine, and
  • Acting promptly to correct mis-information.

The grapevine may in fact be a powerful tool for communicators.

  • There is some information that people can only get from the grapevine. Soft information about people’s predilections and propensities.
  • Spot problems early and prepare
  • Seize opportunities
  • Build a reputation. The grapevine will boost better performers, but be harsh on others.
  • Bond with co-workers. The grapevine is an embedded survival mechanism. We learn the rules of engagement.
  • Weed out cheaters and liars. They will be exposed by the people who have been directly affected by them.
  • Let off steam
  • Gain power and control. People who are connected to the grapevine gain knowledge and influence.

Look at the grapevine not as a competitive communication channel, but as an additional resource to be monitored and harnessed.

One study has suggested that people receive 70% of their information from informal networks vs. only 30% from formal communications. Yet, most employee communications programs focus almost exclusively on the formal communications, ignoring the informal networks.

Organizations that recognize the value of informal communications get people together. For example,

  • Caterpillar created a Piazza in their European Headquarters to provide a gathering point for informal gatherings and conversations.
  • PARC Xerox wired the coffee pot to people’s desks, providing prompt that would draw people to the coffee maker when there is a fresh pot of coffee. They installed whiteboards beside the coffee pot.

Every company should ask, “Where is the ‘water cooler’ in our organization? E.g. Smokers gathering spot. A van pool for commuters.

The law of the few: If you want effective, sustainable communication in any organization, you must reach a small number of people who are responsible for most communication.

How do you find the small number of employees who are really influencers?

  • Self-selection: Pitney Bowes (PB Voice): Employees volunteer to be ambassadors for communication.
  • Nomination: Disney’s Communication Ambassadors
  • Identification: Social Network Analysis.

Social network analysis starts with a survey of people in a network, asking who they rely on for information, who they find most credible, who they trust, etc. This information is mapped to identify the key influencers who are connectors at the centre of nodes. Once the social network is mapped, it provides the basis for analysis of the nature (positive vs. negative) of the communications, the nature of the influence and other factors.

To influence the influencers,

  • Find out what they think, feel and are currently saying about the organization.
  • Train them to maximize their communication skills
  • Inform them upfront about the back story (what got us to this place)
  • Solicit their opinions, ask their advice and utilize their feedback.
  • Influencing the conversation: “You must encapsulate the spirit of your organization, package it in strategic statements and then emphasize those statements repeatedly – so the message becomes part of the conversation.” Paul Danos, Dean, Dartmouth’s Tuck School of Business.

The question for communicators: How do we engage the grapevine around conversations that matter?

  • Have your senior executives talk about the elephants in the room – the big issues that execs hope nobody will notice or bring up.
  • Future forecasting: talk about trends and what it might mean for your company.
  • Business literacy: You can’t have a conversation about the organization if people don’t know what it takes to make a buck in business.
  • Change communications: facts – fast – frequent
  • Starting rumours: The most powerful rumours are those based on executive behaviour that is symbolic and authentic. So walk the talk.

Carol Kinsey Goman packed her presentation with insights and practical advice. A great session.

IABC International Conference – Rajesh Subramanian

FedExRajesh Subramanian received the IABC’s the Excel Award for his work as the President of FedEx Canada.

His remarks focused on The value of reputation in strategic leadership: Inspiring trust through communication.

He opened with a video clip from “The Big Switcheroo,” a CBC (Canadian Broadcasting Corporation) program that followed Raj as he switched places with a front line employee and returned to the “shop floor.” In explaining why he did this, Raj pointed to internal FedEx research that showed a disconnect between management and employees. The CBC program was part of a larger communications outreach program that management was using to overcome this disconnect. Trust is essential to both employee and stakeholder relations. It can provide companies with some leeway and latitude so that the corporate positions can be understood and worked with.However, trust in corporations continues to erode. Both among external stakeholders and employees. And this decline in trust can lead to increased scrutiny, oversight, regulatory hurdles and delays that will damage competitiveness.Communication is fundamental to building trust. Communicators have a unique role as the corporate conscience – emphasizing honesty, consideration of stakeholder views and interests, and ensuring that promises made are promises kept.

Communications, as the corporate conscience ensures that what is said is what is done. They bring the community’s concern to the management table. And they ensure that the corporation’s commitment to do the right thing is brought home to the community.

But the communications function cannot do it alone. CEOs must play a role.

Trust must be built over a span of time by listening, talking and walking the talk. CEO’s can ensure this happens.

Employees also embody the values of their employers. And in the era of blogs, they have unprecedented opportunity to speak their mind.

Employees must be inspired and persuaded, not coerced, to embody positive values. This requires sincere, effective commitment to those positive values by senior executives.

“As president, I realize that people will take their cues from me. The values I have. The actions that I take. And that is why I believe strongly in the importance of communication.”

Raj noted that FedEx conducts ongoing annual employee surveys. Executives are held accountable in their performance reviews for the actions they take to address issues that emerge in those surveys.

A few years ago, FedEx revamped their performance review process. At that time, communication was integrated into the criteria on which executive performance is judged. Employees also rate managers annually. Over time, this has provided valuable information on what is important to employees.

Additionally, managers are required to participate in quarterly town hall meetings to provide employees with an opportunity to speak their mind about issues without intermediation.

Through this emphasis on communication and delivering action on commitments, asserted Subramanian, FedEx has created a trustworthy environment.

 

 

IABC International Conference – John Gerstner

CommunitelligenceJohn Gerstner, the President of Communiteligence, led an overflow audience (not enough chairs, people sitting on the floor) in an early-morning exploration of E-collaboration and online communities.Some of his observations:

  • People are knowledge-sharers by nature.
  • Until now, there has been a huge difference between the quality of interaction possible in the real world and the virtual world. For online communities, its’ all about bandwidth. And bandwidth is expanding. As this happens, the virtual world will move closer to the real world in quality of experience.
  • Communities of Practice: A group of peers with a common sense of purpose who agree to work together, to share knowledge, to achieve common ends.
  • Trust is essential for the creation of a community of practice.
  • Knowledge sharing in a virtual community will not work if it is seen as an additional responsibility. It should be integrated into the basic function and tools.
  • Why is this important? Because we’re drowning in information. At the same time, as jobs are more complex, we need faster better informed decisions.
  • Good communication requires good knowledge sharing.
  • E-mail is a terrible collaboration tool. Knowledge sharing has to be absolutely easy and not and add-on.
  • Setting up and nurturing online collaboration is a long and winding journey.
  • The new social media tools have brought knowledge sharing to our doorstep.
  • What’s hot? MySpace.com; Cyworld.com; flickr.com; del.icio.us; digg.com; youtube.com; tagworld.com.
  • These social media tools make it easy and fun for people to express themselves online. They ease knowledge publishing and searching for it.

After his initial remarks, Gerstner engaged the audience in a community forming exercise. Lot’s of noise. Initial chaos. Laughter. People getting to know others who five minutes ago were strangers. Order emerging. At the end of the process, groups had formed a variety of communities, each using a range of collaborative tools. An interesting exercise that brought people together and stimulated conversation.

 

IABC International Conference – Monday afternoon sessions

Tod MaffinEven lunch can be a productive time at IABC Conferences. Podcaster and blogger Tod Maffin will override dessert with his presentation, Twenty-first century communication: Are you e-xperienced? The advance blurb for Maffin’s presentation suggests, “While [communicators] may be actively employing today’s new media, they’re probably playing using yesterday’s old rules. … Tod will explain his model of ‘swarm communicating’ – and show you how to undo years of indoctrination in top-down communicating and embrace being an influential part of a viral swarm.” Oh yeah, I’ll be there ready to swarm! 

Tom KeefeLater in the afternoon, I’m looking forward to Tom Keefe’s presentation, Building an online community: New medium, new challenges? Promised takeaways include: “incentives and disincentives to online participation”; “applying social network theory to online community building”; and “a strategy for communicating with a mixed group of techno-phobes and digital evangelists.” I can definitely use the latter at family gatherings.  

IABC International Conference – Monday morning sessions

Monday’s program kicks off with Think Tanks at 7:15AM (breakfast not included!) I hope that others are ready to do my share of the thinking – at least until I’ve managed the first couple cups of coffee.I’m hoping to attending John Gerstner’s E-collaboration and online communities session. Gerstner plans to discuss new tools, trends, best practices and solicit feedback for further IABC Foundation research in this area.

Next, it’s off to the morning’s general session, featuring Rajash Subramanian, IABC’s 2006 Excel (Excellence in Communication Leadership) Award Winner.

I’ll dip into employee communications for the final session of Monday morning. Carol Kinsey Goman’s I heard it through the Grapevine promises to examine how informal grapevine communications compare with more formal employee communications.  

IABC International Conference: Mark Burnett

Mark BurnettMark Burnett delivered the keynote address. Some takeaways:

“There’s so much spin in America that’s untrue. I read my own press releases and ask, ‘Is that really me?'”“Canadians are like Americans with manners.”“In America, you can come from nothing and have a chance.”

“Only idiots try to communicate to everybody with a canned approach.” There are four kinds of people: the engineer kind of person; the artist; a passive person; and the aggressive person. “Analyzing those four kinds of people is how I’ve moved forward in my career.”

“Looking at our world, the only thing that won’t change in the next five years is movies – people will still go the movie theatre. Television will change. More and more people have access to broadband at work. Five years from now, the new prime time may be between 9 to 5 during the day.”

“Doing the same thing won’t work. You always have to be ready to fall on your face. Playing defensively is boring. You have to be willing to take chances in order to win.”

A very entertaining, totally engaging personality. I think I’ll tune into one of his shows. Maybe the one coming up this autumn that he’s produced in collaboration with Stephen Spielberg…

 

 

IABC International Conference: Neville Hobson, Shel Holtz, Alan Jenkins, cont'd

Desirable Roasted Coffee

 

 

 

 

After the break:

Question: What does it take for a company to be ready for social media?

Neville Hobson: Culture. An understanding of the value of conversational communications. You have to be prepared to give up control of your message. An organization that doesn’t encourage people to talk freely about what’s going on in the organization, that requires log-ins for all types of information, is not ready for social media. If the organization is not ready for social media, its use could cause “all kinds of disruptions.”

Alan Jenkins: Even if a company is not ready for blogging, you should nevertheless pay attention and monitor what people are saying and understand why people are saying what they are saying about you. An example of a company that is blogging, but not doing it well, is Arla Foods in Europe. Their PR staff blog. However, senior executives do not. Consequently, the content of the blogs is restricted to commentary about previously reported information. The blogs are stale and uninteresting.

Question: What about portals?

Shel Hobson pointed to Pageflakes, which makes him wonder “why would people pay big money for SAP portals when they can have this for nothing?”

Question: Once you know something is going on? What do you do about it? Can you control it?

Alan Jenkins: “Once your message is out and people are starting to repeat it and manipulate it, you’ve lost control of it. … But then, you’ve never really had control of messages. The nice thing about social media is now you can be part of the conversation about this, and before you couldn’t be.”

Shel Holtz: One of the things that blogs allow is for your people to talk, not just the company. Companies have a hard time admitting mistakes. Individual people will do this more readily. And in doing so, they are humanized and more likely to benefit from good will.

“Influence is wielded through engagement and participation in the conversation. There is no opportunity to control.”

Question: As a corporation or government, would you let the CEO loose with his fingers on the keyboard? What is the role of the communications professional.

Alan Jenkins: The CEO should write for himself. That will bring authenticity. There are many examples of senior executives who do this quite well.

Shel Holtz: The two qualifications for writing a blog are passion and authority.

Alan Jenkins: If your CEO doesn’t want to write, do a podcast. Put a mic in front of them. Ask them questions.

Neville Hobson: Two must reads: Naked Conversations by Scoble and Israel and Blogging for Business by Holtz and Demopoulos.

 

IABC International Conference: Neville Hobson, Shel Holtz, Alan Jenkins

UPDATE: Neville Hobson has posted his slides for this presentation on NevilleHobson.com.

Shel HoltzNeville HobsonNeville Hobson led an un-conference session on Organization communication 2.0: The age of social communication. He was joined by Shel Holtz and Alan Jenkins as panelists.

Neville opened the session with a general presentation of the key concepts and elements of social media: citizen generated content; open-source software; search engines; wikis; podcasting; the Web 2.0 Meme map; the Social Customer Manifesto; MySpace; SecondLife; OhMyNews; tagging (del.icio.us); photo and video sharing (Flickr and YouTube)

Some takeaways:

The Thin Membrane between internal and external communication. “There is a blurring of the division between internal and external communications.” Consumers can speak directly to employees inside companies without intervention from traditional corporate spokespeople. “Eventually, the line between internal and external communications will disappear.”

“The social media ecosystem is primarily technology tools that fulfill something we all do as human beings anyway – which is to connect.” The social media ecosystem includes: blogs, wikis, RSS, podcasts, vlogs, moblogs, MMS, Internet telephony. These tools facilitate communications, engagement, transparency, trust.

Technorati is now tracking 44 million blogs tracked, with the number doubling every six months. The blogosphere is now 60 times larger than it was 3 years ago.

“Community is what this is all about. Building that sense of community is key to Organization 2.0. Whether it’s with consumers, shareholders or whoever that might be.”

Neville cited The Hobson & Holtz Report as an example of the power of social media. Using Skype, Neville and Shel are able to regularly produce their show across a 13 hour timezone difference – at virtually no cost. Today, the podcast’s Frappr map shows listeners around the globe – a community that has grown up around the hobby of two communicators. Question: Will we reach the point where citizen generated content (blogs; wikis) will become as trusted as mainstream media.Shel Holtz, “I don’t trust blogs. I trust some people. … I don’t think we need to have trust in the tools. We need to trust the tools to enable people to have these kinds of conversations. …. In the era of social computing, the power is transferred from instutions to individuals and audiences.”Shel Holtz provide a A good explanation of the Long Tail concept for communicators who speak to narrower or smaller audiences. The magic middle can have a very real impact through time.

Alan Jenkins pointed out that Steve Rubel has become a “trusted agent” for many people. Few know him personally. But many read him and have a sense of familiarity through his blog.

Shel and Neville reach much larger audiences through their blogs than they do through their podcast. Alan Jenkins began podcasting a couple weeks ago. He reported that the number of subscriptions to his blog have increased significantly since he launched the podcast.

After 1 hour and 45 minutes, Neville called for a mid-session break…