The only R word in Canada is "Resilient"

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Yesterday, RBC Financial Group Chief Economist Craig Wright delivered an encouraging message to an audience of Canadian business executives. Overall, Canada’s economy remains strong and is likely to sustain continued moderate growth.

Why do I care? Well, because as the CEO of a public relations firm, I know that my business will be among the first to be affected by a downturn in the economy. So, I am always trying to look over the horizon to gain as much time as possible to prepare for shifts in the economy.

But yesterday’s briefing gave me confidence that I can proceed with the growth plans my company has to take advantage of the development of social media. While there are some pockets of concern (i.e. manufacturing, particularly the auto industry in Ontario), the overall outlook is positive. And that means that I can count on my clients continuing to be open to opportunities to use social media to better connect with their customers, clients and stakeholders.

Mr. Wright offered a wealth of data and analysis, delivered at a break neck pace. Some of the points that stood out for me:

  • Canada will continue to experience offshoring to China. This will be manifested in short term job dislocation, but it should lead to long term productivity improvements in Canada.
  • Oil (something that should be near and dear to the hearts of not only Albertans, but all Canadians): As the speculative froth comes out of oil prices, oil will stay in the $58 to $60 barrel range. That means oil prices around current levels, but above what they have been in recent years.
  • The Canadian Dollar: Commodity prices will come off their highs as global growth moderates. This will take the pressure off the Canadian dollar. It should drift lower to U.S. .85 by the end of the year and the low .80s by next year.
  • Consumers in the U.S., like Canada, are sitting on strong liquidity. So, they are well positioned to deal with the housing slowdown. We’re looking at a soft landing. A housing market that is cooling, not collapsing. There is some risk for Canada, but the reslience of the Canadian economy is quite striking. Low inflation and sound fiscal policy are positive factors in Canada.
  • Exports will remain weak. So, growth in Canada will have to come from  internal growth. And prospects are good for that.
  • The investment side of Canada looks strong. Corporate balance sheets in Canada are very strong. The tightening of the labour market has put the focus on investment. And investment will provide the basis for future growth.
  • Canada’s Banks will be meeting with the Finance Minister next week as part of the fall planning season for the next five year period. As we move forward, a lot of the fiscal surpluses have already been earmarked for spending, so we should not expect significant tax cuts.
  • Canada is the only G7 country paying down our debt.
  • Nine of the ten provinces are now in surplus (except PEI). The feds are in surplus. Going forward, Ontario may dip back into deficit. Growth prospects have been reduced. So, going forward, Ontario has some challenges.
  • We are probably at the peak of interest rates. The next change by the Bank will be down, probably in the second half of next year.
  • Consumer, investment, government all add to the growth prospects, offsetting a weakness in trade.
  • One problem area is skill shortages. We’re running with a 32 year low in unemployment. We’re seeing a swing in immigration patterns toward Alberta and away from Ontario.
  • Alberta’s economy remains strong and will continue to grow. The challenges will be Ontario’s – in manufacturing and specifically the auto sector.
  • Ontario growth will be 1.5% this year and 2% next year.

In summary, we’re looking at some external challenges. Coming off the best four years on record, it’s reasonable to expect some slow down. However, the Canadian economy is resilient. Last year, growth was 2.9%, this year it will be around 2.8%, next year projected for 2.7%.

Not a bad environment overall as we move forward. And a good foundation to plan for continuing growth in the social media and PR business.

We're recruiting

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Thornley Fallis, is currently recruiting highly-motivated and experienced communications/public relations practitioners for our Ottawa office at the level of Senior Consultant and Consultant.

We are looking for people with at least 3 years experience, a consulting/agency/journalism background, and/or communications experience in the public or private sector or with a national association.

Thornley Fallis

You will manage projects, deliver a range of public/media relations and marketing communications advice, products and services, and provide outstanding client service.

You will also participate in new business development and proposal writing as we continue to build our practice.

Strategic communications planning and exceptional writing skills are a must. Bilingualism is an asset.

If you are ready to join a dynamic, growing team at one of Ottawa’s leading communications firms, send your CV to ottawa[at]thornleyfallis.com.

Canadian Council of Public Relations Firms to represent interests of PR consulting firms

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CCPRFA new organization has been launched in Canada: the Canadian Council of Public Relations Firms (CCPRF). The Council, which has grown from a discussion group of PR consulting firm principals based in Toronto, will provide a voice for PR consulting firms operating everywhere in Canada.

The CCPRF’s draft mission statement establishes it as:

…a national organization of principals of leading public relations consulting firms dedicated to promoting the role of public relations in business strategy and organizational performance.

The goal of the Council is to promote the professionalism and development of public relations consulting and provide leadership in areas that influence growth such as professional development, measurement, awards and standards of practice.

CCPRF Meeting 060913

Both the Canadian Public Relations Society (CPRS) and the Canadian chapters of the International Association of Business Communicators (IABC) work hard to support individual practitioners in Canada. But they do not address the interests of public relations consulting as a BUSINESS. And of course, PR consultancies must be successful as businesses if we are to provide growth-oriented career opportunities for PR practitioners.

I believe the Council will fill this essential role. But it can only do this if it is a truly national organization whose membership includes the leading firms in every region of the country.

If you run a PR consulting firm that operates in Canada and has a minimum of $1 million in annual fees, you should consider joining the CCPRF. Support the industry. Support consulting. Help create a voice for our industry.

If you are interested in talking about why your agency should be part of the Council, contact me at joseph.thornley[at]gmail.com. We want you!

IABC International Conference – Pat McNamara

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Apex PRPat McNamara’s session was titled Fuel your business: Strategies from one of Canada’s fastest growing companies. She did not disappoint as she delivered a fast-paced presentation chock full of wisdom and practical tips.

Highlights of her presentation:

One of the secrets of success is to get awards. And we have applied for almost all the awards we won.

The ‘Not so secret” ingredients of a successful, profitable PR business are

  • The right people
  • The right clients
  • The right business

To be successful, you must have a passion both for PR and running a business. If you don’t have that passion, people will not want to work with you.

Pat is a fan of David Maister and she has put much of his advice into practice.

Getting hired is about earning and deserving trust. You need to earn trust. Be generous with your time and help. Show a good understanding of the situation.

The absolute number one key to success is having the right people and the right culture. Unfortunately, PR firms tend not to do a good job of communicating with their employees.

Culture must be consciously created.

  • Reputation is key.
  • Trust and empower your employees.
  • Build a strong, talented management team.
  • Ensure you have a leadership, not boss mentality.
  • Have fun.

At Apex, Pat believes that “The company becomes strong one employee at a time.” Think of employees as individuals. Figure out what each one is good at and figure out how to make those strengths fit into your success formula. Constantly reward success and achievement – in ways that are meaningful to them. And surprise them. The unanticipated can delight.

Always do an employee survey. You cannot pay too much attention to what your employees are thinking.

“People leave managers, not companies.”

If you can keep your employee turnover low, your business will have a firm foundation for growth. Clients stay with businesses that have stable teams.

HumanResources.com has a list of the top 10 reasons people stay at a workplace. 46% is related to people. 18% is related to the job. 12% is pay related. 10% is related to the company.

Ensure that you have a leadership mentaility, not a boss mentality. The company is about the sum of its parts. Everyone should be encouraged to understand and believe that they can contribute.

Focus on ensuring that all people in a leadership position have strong leadership skills and an understanding of the importance of this role.

McNamara recommends Marcus Buckingham and Curt Coffman, First Break All the Rules, as a source for the questions to ask in ensuring that employees are inspired.

To grow your business, you must:

  • Hunt and acquire new prospects.
  • Market to existing clients.
  • Identify new sources of business.

Not all new business is good business. If you work with clients who are not very nice or whom you are not very passionate about, you’ll lose your people. Get the right kind of business, not more business.

Existing clients are the most likely sources of new business and the most profitable.

When deciding who to purse, start with an honest assessment of your capabilities. Do you have a chance of winning this business? To have a reasonable chance, you must have special expertise, the time and the resources to stand out from the crowd.

Find out as much as possible about the client. You must know them well in order to understand their needs.

Ensure that someone on your team is excited about working with the client. If people are not passionate about this, don’t pitch the business.

Stay away from strangers. Don’t pitch unless you can be in the room and present to the client in person. People choose other people, not paper proposals.

Create a very short list that is focused on your capabilities and ability to win (never pitch business that you don’t think you have at least a 50% chance of winning.)

Pursue opportunities by sending creative packages and look for opportunities to interact (e.g. a PR 101 presentation.)

Understand that most people have made up their mind about whether they like you or not within the first two minutes of meeting you. Make the most of this time.

One you’ve won the business, you must work hard to keep them happy. This should be your number one priority. Happy clients will be forgiving. They will take your advice. They will provide positive referrals.

Reasons clients leave firms:

  • Failed to meet deadlines
  • Did not meet budgets
  • Lack of follow-through
  • Did not keep the client informed of project status
  • Poor or inconsistent quality
  • Did not meet expectations
  • Over-promised, under-delivered
  • Lack of enthusiasm
  • Order-takers vs. idea generators
  • Lack of good chemistry or trust.

Ways to keep your clients:

  • Ensure there is strong team chemistry
  • Provide senior level involvement
  • Under-promise and over-deliver
  • Clients are no your friends; remind your staff
  • Take a “no surprises” approach to budgets
  • Set clear expectations; put them in writing
  • Never miss a deadline; develop thorough, doable timelines
  • Ask: what’s the best/worst thing we could do?
  • Use their products
  • Let your clients interact with each other
  • Admit your mistakes
  • Show your passion for their business

Listen to your clients

  • Conduct a client survey
  • Conduct internal reviews – be brutally honest in your assessment.
  • Interact with your clients – walk the halls with them; attend sales meetings; introduce them to new ideas and services even if they are not your own.

Have regular conversations with the client:

  • First week: conduct a client audit and organize an internal indoctrination on how we will work together.
  • 30 days: conduct a review of how we are doing. Walk them through the first invoice
  • 90 days: Ask for an assessment of performance and gauge performance against written expectations
  • Six months: Do an activity recap and a planning session.
  • One-year review: Conduct a written survey and establish new directions.

To grow existing business:

  • Ensure you have multiple contacts
  • Conduct/attend media/presentation training
  • Attend marketing and sales meetings
  • Interact with other suppliers
  • Start an idea generator program
  • Introduce alternate team members
  • Invite them to other client events

IABC International Conference – Wednesday sessions

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IABC International Conference, VancouverThe 2006 IABC International Conference wraps up with s series of All-Star Sessions featuring some of the top-rated speakers from past IABC conferences. (All-Stars seem to need extra sleep. Today’s sessions don’t begin until 8AM, compared with the 7:15 and 7:00 starts for the still-aspiring speakers on Monday and Tuesday.)Shel Holtz

The first of my All-Stars, blogger and podcaster Shel Holtz, will lead a session on The practical impact of social media on your organization. The programme tells me that I will learn how to “convince management that a different, less-controlled approach to communication is in the company’s best interests.” Yep. Something that I think we’ll need to do frequently in the next year.

Then, I’ll join fellow Canadian Pat McNamara for Fuel your business: Strategies from one of Canada’s fastest growing companies. Pat and her company are based in Toronto (where one of our offices is located.) She has built and sustained a very successful business that has a remarkable record for attracting and retaining a talented team of consultants. (She’s also introduced me to PRSA’s Counselors Academy.) Pat’s a real All-Star and I can’t think of any better way to spend my morning than at a discussion led by her. T.J. Larkin

The conference’s Closing General Session will feature TJ Larkin’s presentation on Communicating big change. According to the conference programme. “…studies show that 80 percent of companies say that their change communication is a ‘major failure,’ so clearly radical change is called for.” Larkin was the hit of last year’s conference in Washington for his presentation on the relative merits of online and traditional print communication vehicles. This year’s session promises to be no less thought provoking.

And that’s it. My IABC Internal Conference. Three great days of learning, discussion and thought. Now, it’s time to put these lessons into practice.   

 

 

IABC International Conference – Shelly Lazarus

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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.

 

 

PRSA Counselors Academy Deb Radman

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Day two of Counselors Academy opened with another round of Breakout sessions – small groups of 10 to 15 participants seated around a table for a discussion led by a senior practitioner or an expert advisor.

The first session I attended on “Preparing Your Future Leaders,” was led by Deb Radman, Managing Director of Stanton Communications and a former Chair of Counselors Academy. Darryl Salerno, the President of Second Quadrant, also offered much valuable insight. Darryl is the advisor Steve Cody credits with helping him to develop Peppercom‘s successful formula.

Future LeaderMost of the discussion participants agreed with Radman’s that all people are imbued with somesome leadership qualities. It is the responsiblity of current leaders to help young people to identify and develop the particular leadership qualities each of them possesses.

Of course, some people need more help than others to discover what they have that is special and will help them to lead a team or to run an agency.

Mid-size firms provide an opportunity for people to develop their leadership abilities. We’re in the leadership business: Our work is about helping articulate a vision, helping set goals, planning, researching, advising, persuading, and clarifying. That’s what leaders do.

We must stimulate the people who work for us to consider what kind of leader they might be and what they need to do to get there. Ask employees about who is an aspiring leader? Who do they perceive to be leaders? it’s very revealing.

  • What leaders look like:
  • They have bedrock values.
  • They have the courage to be decisive.
  • Consistent behaviour.
  • They do what they say they’re going to do.
  • They have the courage to be decisive.
  • They enable collaboration by building trust.
  • They create other leaders, not followers.
  • They articulate a clear vision of where they’re going.
  • They choose to lead.

To teach leadership, the people who you are trying to teach must perceive you to be a leader.
You must know what the people in your organization view as leadership qualities; then look at yourself to determine if you have the qualities to lead them, not just to manage them.

Radman emphasized that there is a tremendous difference between being a leader and a boss.

  • Boss drives people; Leader motivates them.
  • Boss depends on authority; Leader on persuasion.
  • Boss uses fear; Leader uses positive reinforcement.
  • Boss fixes the blame; Leader looks for a solution.
  • Boss say “I”; Leader say “we.”
  • Boss will tell people what to do; Leader will entice people to do something.

Leadership is a choice; you must inspire or persuade people to look inside themselves to determine what they want.

PRSA Counselors Academy: Julia Hood

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Julia HoodCounselors Academy Steve Cody conducted an interactive one-on-one conversation with Julia Hood, Editor-in-Chief of PR Week.

Cody led off the conversation by noting that the membership of Counselors Academy is predominantly small and mid-size agencies and that these firms have a sense that “PR Week seems to give inordinate attention to the large agencies.”

“The large firms have larger marketing budgets, more staff, huge global clients and better opportunities to get our attention,” Hood responded. However, she added, “We pay an inordinate amount of time trying to cover medium sized agencies.”

On the question of how she believes PR agencies are doing in relation to advertising in getting the seat at the executive table, Hood had a positive message, seeing PR, “Definitely making strides. The thought leadership that is coming out of the PR world is definitely resonating, especially with CMOs (Chief Marketing Officers). … More and more, you can see advertising agencies understanding this. Advertising agencies are bringing PR agencies in earlier and earlier. That shows that advertising agencies realize that they are not doing the total job.  …. For PR, this is the moment.”

The most animated discussion revolved around PR Week’s treatment of the ethical controversies in which major agencies have become embroiled.

Speaking directly to the overbilling scandal involving Fleishman Hillard’s Los Angeles office, Hood initially suggested that, “No agency leader can say, ‘It can never happen to me.’ So I don’t sense a lot of glee coming out of the industry at Fleishman’s expense on this.”

She was challenged aggressively on this position by questions from the audience. One questioner asked, “Where is the institutional control? the tone of the coverage has been allowing them to get away with it.”

To this, Hood responded, “I think we’ve been pretty unflinching about Fleishman’s responsibility. Fleishman, at the end of the day, was not on trial. I don’t think we let Fleishman off easy. There were times when I wasn’t talking to anyone at Fleishman. At times I felt we had a reasonable point of view and they thought we didn’t.”

This answer elicited follow up question, “Have agencies cut you off?” Hood seemed nonplussed at this question and after some hesitation answered that, “I sat with a senior Fleishman person one time and they were not very happy. But we got through it. For myself, I take this responsibility very seriously. Communicate your displeasure, but don’t abandon the normal rules of dialogue.”

Question: “Who is responsible.”

Hood: “The individual is ultimately responsible.”

Question: Why isn’t there more criticism?

Hood: “It’s not PR Weeks job to impose an ethical standard. That’s the job of organizations like the PRSA. I don’t feel the need to come out on this because I’ve seen evidence of the industry dealing with it.”

Hood was also asked about her reaction to recent reports of attempted “pay for play” (allegations made by Robert Reich). “When talking about the issues of credibility and media and PR’s role,” she offered, “PR has to have an interest in preserving the credibility of the media platform and not undermining it. … We asked CMOs whether they would consider paying for media coverage and, thankfully, the vast majority said no. … This is something you have to address every day. And you’ll have to challenge clients who want to take the easy way.  … It’s a very grey area. A daily reality check to say, Is this crossing the line?”

Hood was also asked for her sense of why mainstream media do not accord PR the same level of coverage that they give to advertising. She noted that, “Richard Edelman just did a Q&A in the Wall Street Journal. Crispin Porter + Bogusky [the subject of a cover story in Business Week] is not really an advertising agency … They were on the cover of BusinessWeek because they challenged the conventional mindset of their industry. … Richard Edelman has changed many of the rules of the game by being out there and talking about their clients. … A lot of PR people do not want to talk about their clients. …. What does that do to the PR industry and its own promotion efforts?

“Finally, I think there is still a basic discomfort on the part of journalists in covering PR, because they know how important their relationships with PR agencies are – and they don’t want everyone to know. …. There is a certain amount of plausible deniability going on in the media … As long as those people feel there is something wrong with disclosing that there is a give and take, there’s a problem there.”

Finally, Cody asked Hood to put herself in the shoes of a start-up PR agency and to suggest how she could get on PR Week’s radar screen. She responded “The first thing I’d do is go online and get a copy of the editorial calendar. Six weeks before publication, we decide on what to do the feature on. Idea generation is absolutely critical. … If you see something in the editorial calendar that you have a unique expertise in or a story about, contact the publication.

“The second thing would be to make sure I know who the news editor is and who the features editor is. All the reporters have beats and they will return to the people who helped them the last time. They want people who will get back to them. Be interesting. Be quotable and be prepared to go on the record. Let us know what the trends are. If you pitch us, give us a clear idea.

“You see stories about large agencies because agencies large agencies pitch us.  We need help to find you sometimes.”

To close the session, Cody asked, “Is Pr Week making money? How can firms here who can’t afford advertising help you out?”

Hood responded that, “PR Week is doing quite well. What’s really pushed us ahead are special projects. … I believe that display advertising is not going to be the centre of the universe for PR Week. …. One thing that does bother me is people who want to be in the magazine who don’t subscribe. That level of participation for your trade publication …. you should get at least one subscription for your company.”

Julia, I’d love to subscribe. If I do, can I persuade you to cover Canadian PR agencies?

PRSA Counselors Academy: Tom Hoog clarification

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I received an email from Tom Hoog that one passage of my post on his remarks at Counselors Academy may have given the reader the wrong impression. Tom’s email said:

hey Joe just reread the blog—-one thought that might clear up a question—on the fifth paragraph I think it was, I’m not sure if the reader may take away the thought that H&K made some mistakes or the industry made some mistakes—clearly my intent was to say the industry had made some mistakes 

My intent was to faithfully capture the intent of Tom’s remarks, which were both candid and full of valuable advice. I appreciate that he took the time to read my post and clarify this point.

PRSA Counselors Academy: Steve Cody

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Steve CodySteve Cody, Managing Partner of Peppercom shared his thoughts about the vital role that having a future-driven vision played in the turnaround and success of his firm.

Cody had to reinvent his firm after the dot com bubble burst. Not surprisingly with a name like Peppercom, his client base tilted heavily to technology. And when the bust hit, many of his clients evaporated.

According to Steve, “Complacency is a killer. It’s critical to figure out how to differentiate yourself because the marketplace is rapidly changing.

“Agencies that just keep on doing what they’ve been doing for years are heading for trouble. The field of dreams approach does not work. We all have the same kind of relationships with journalists. … The more you are seen as just an order taker and a tactical media relations operation, the more your business will be marginalized.”

Cody has based Peppercom’s differentiation on “understanding what is keeping the client up at night and understanding the changes in the marketplace and the business.”

Cody believes in the value of street level market research. He regularly calls “eight to nine people to find out what they see as their challenges.”

He has developed services and solutions that respond directly to the client concerns he has discovered.

For example, after 9-11, he was told by many clients and business executives that they were reining in their communications budgets. When he probed to determine what areas were moving forward, he discovered that companies were looking for ways to heighten their security and ability to respond to a security-related event. Seeing this, Cody sought out and partnered with a security company to develop a CrisisRx program. Through Crisis RX, the two partner firms provide clients with a realistic simulation of their crisis plans in order for them to preview how they will perform should they have to implement them in real life.

Other product offerings developed in a similar way include

Pain-based Selling: Peppercom partnered with a sales training organization to provide clients with hybrid sales training that draws on the basic principals of effective communications that Peppercom offers in its traditional media training.

Business Outcomes: a measurement program development in partnership with a marketing company.

Cody and Peppercom use the intelligence they have gathered through their research as the driver for an aggressive promotion program for Peppercom.

“We are very aggressive in treating Peppercom as a brand. From the very beginning, we treated Peppercom as a brand. Today, we treat it like a $25K to $30K / month client.”

He constantly mines the data for use in articles and speeches. And he says there is a constant appetite on the part of business people to hear “what is keeping their peer group up at night.”

“All of our senior people are tasked with asking what’s keeping you up at night? What’s keeping your firm up at night? Then we publish the results. Every two months or so, we have thought leadership articles coming out.”

Cody has taken much the same approach to establishing a blog: first research what others have done, test his own approach internally and finally launch it publicly.

Recently, he partnered with PR News for a survey of the C-Suite’s opinion of PR, further differentiating his firm in a hot area.

And now Cody is drawing on this research to create PepperDigital to help executives close the gap between traditional reputation management and marketing and what they are doing online. Another need identified through research.