PR Week – How the NBA made a no-win situation worse

“Agency experts, including a former communications executive with the league, say its initial public response inadvertently juiced the crisis….

With that in mind, Dean Crutchfield, CEO of Crutchfield + Partners, says the NBA should have exercised another option: dismiss Morey. Crutchfield says other employers would find rogue commentary of a sensitive geopolitical nature grounds for termination, especially if it was about a critical and growing geographic market, regardless of how well-meaning the message.

“If a senior executive and important representative of Apple came out with a remark like that about their most successful business unit, that executive wouldn’t be there anymore. It simply wouldn’t be tolerated in a corporate environment,” states Crutchfield. “It was one man, one tweet; they should have fired him and fired him fast.”

If they had, instead of making a statement about democracy and free speech, the NBA would have addressed business protocols and guidelines in relation to social media.

“The statement would read something like, ‘This is not how our people behave on social media, uncontrolled and with no regard for their professional responsibility. His personal opinion should have been kept to himself given the platform he has being part of this organization,’” says Crutchfield.

FT – Nike risks being dragged into China NBA dispute

Financial Times reports on a new perspective on NBA v. China spat…Few western companies have more at stake than Nike in the fallout from an American basketball executive’s tweet about Hong Kong.

Here’s a link to the article. My POV is that “despite demands from the likes of Mr Rubio, he would advise the company to stay quiet. “Nike didn’t create this war,” he said. “Any crisis manager would say the same: avoid, avoid, avoid.” The episode could yet work to the company’s advantage, he added. “If they play it right, they’re going to sell a lot more merchandise.”

Turn Me On

Grscreen-shot-2016-12-16-at-4-11-43-pmeat brands are about storytelling and brand voice success comes when you mitigate the turned-off reaction.

Shooting Arrows at Hilary Clinton’s New Campaign Logo

We see the “right” direction you’re going in, but where does it lead and does it work? Thoughts with Alan Rappeport, April 14th, 2015. The New York Times:

Why are Luxury Brands Discounting in China?

How much???!!! You’ve got to be kidding. What’s luxury worth to you in China? Here’s my POV with Michelle Makori, April 9th, 2015 on CCTV:

Missing Customers Lately? Try Going Back To Basics

It seems that a great confusion has arisen in the process of brands doing their branding these days. Allow me to sort this out. A brand, in itself, is not marketing—a brand is who you are. And marketing, in itself, is a means to an end; marketing and innovation exist to draw customers. Unfortunately, these distinctions seem to have blurred, or even switched places, in the minds of many companies. In their relentless drive to maximize shareholder value, many brands have left the customer out.Im certainly not the first one whos noticed this confusion. Jack (“Neutron Jack”) Welch of GE has pointed out that “shareholder value is a result, not a strategy. Your main constituencies are your employees, products and customers.” Welchs observation holds true regardless of whether the brand is business-to-business (B2B) or business-to-consumer (B2C); in the end, its all about business-to-people (B2P, if youll indulge me). And so, these days, as we reap the grim harvest of imprudent lending amidst insider dealing, bankruptcy, accusations, claims and counterclaims—we can see that the misconduct of big brand names has changed the perceived value exchange of B2B brands. In the process, it has transformed the meaning and context of trust.

Look no further than the banking industry if you want an example. Historically, banks focused on acquiring, growing and

Bank

protecting their clients’ assets, and by lending money and making profit out of the assets under management. But, long about 2000, the value relationship between banks and clients abruptly changed. It switched to banks trading their own products at the expense of their clients. Seemingly overnight, the base of the compensation model shifted to how much money you could make by the volume of products sold, not the number of clients under management. The outcome, of course, is something we all know. As for B2C, the excitement has just begun given that Prop 37 will be raising the debate in CA this November on genetically modified food labeling (GMO).

Trust is a crucial ingredient of all brands and their reputations—but that contract of trust has been shattered. Stocks do not have a memory-recall button, but investors and customers do. That’s why fewer than half of all Americans have a favorable opinion of business today. Compounding the brand fatigue that has besmirched many B2B brands is the belief that customer-centricity can be achieved by companies entering B2C’s Temple of Mammon and bedecking themselves with happy logos, comforting language and stock photos of smiling people, all to lift them from their somnolence as staid corporations and market them as genuine, complete, crystalline and pure. (The irony, of course, is that many B2B brands are anything but sweet, friendly and pure.)my life's logos v.2

The financial breakdown has not only eroded consumer trust, but it’s also shifted where consumers place it. Our notion of trust has moved from trust in “the company” as such to trust in the people who run the company. Today, as brands refer to market share, profit share, revenue share, etc., theyre overlooking that what theyre truly competing for is share of trust. To succeed in this era of mistrust and cynicism, B2B brands will have to make several adjustments. First, they must identify who they truly are and why they are in business. This will provide a picture of their future, their organizational style and the direction they need to take. As Jim Collins writes, “All good-to-great companies began the process of finding a path to greatness by confronting the brutal facts of their current reality.”

The second priority is to understand that if customers dont believe in you, theyre not going to come. So, what messages are you delivering that they can believe in? Third, there is a brands culture. According to research by Bain & Co., the average company loses more than half its customers every four years. The two determinates of value creation in business are how tight the ship is run and the closeness of the relationship with the customer. Dont forget that it costs five times more to acquire a new customer than to hold onto the one you already have. Retaining your customers can be achieved only by developing a culture that espouses shared responsibility, shared benefits and shared values.

That last one is critical. Understand that people and businesses live their lives in the future not the present. Whilst many B2B brands have attempted to shift from being functionally oriented to emotionally oriented brands, the real leap is in being values centric brands. It is no longer enough for B2B brands to define themselves in terms of what they are; they must make a commitment—environmentally and socially—about who they want to be.

Trust

The current mind-set misguidedly encases itself in the moment; it forgets the prosperity of the past and, worse, ignores our ability to shape the future. John Maynard Keynes identified sinking confidence and pessimism as causal to sustaining and deepening economic recessions. The psychology of investors and ordinary consumers is in many respects more critical than what might be described as “objective economic conditions.”

The time is now for influential companies to gather and take on the responsibility of advancing the common good as an antidote to the debilitating fear that will assuredly delay economic recovery. Finance might be the brains of corporations, but brands are the heart.

Knowing How Social Movements Happen To Kickstart Funding

Wikipedia rightly defines social movement as a “type of group action. They are the large informal groupings of individuals or organizations to focus on specific political or social issues. In other words, they carry out, resist or undo a social change.” Totally perceptible, but how?

Any successful ‘movement’ needs a core idea, leadership, talent to support the leadership and the people to create the movement. Recent developments like the phenomenal success of OWS shows that it’s not as clear and as easy as that.

David Graeber, one of the founders of the OWS movement likes to say that he had three goals: learning to drive, promote his book and launch a revolution. The first didn’t happen yet, the second proved challenging, and the third is not looking up. Funding has become a crucial element in the sustainability of the organization i.e., growing pains.

Any new organizations dies a thousand deaths as it leaps and straddles forward, often going through several revisions of strategy and vision. I’ve got sympathy for OWS. They’re afraid for the first time. They brought tablets down from the mountian top, we were all enthralled and fascinated. Now this rising star is facing the grist of the mill, their significance is substantial, but their chances of survival thin as their relevance has slipped backed to core fans, little airplay is being provided (apart from their decline) and they could be forgotten.

OWS is a challenger of the rules, heroic in charting a course that’s different to what’s been done before, with principles (often too many) that’s made their stand unique and created such a massive following of millions, but now it needs to stay ‘fresh’ and sustainable. How to halt the rot is to recognize the three core elements that fuel the fire of a movement: frustration about the status quo, injustice from the 1 percent’s cadre and a hope of change. Communication and messaging need to target these to accelerate the funding program:

Build back rapport: Trust
Create relevance: Message
Instant gratification: Knowledge
Ignite passion: Action

Barry Manilow probably has the best advice, “They might not remember what I sing, but they’ll remember how I make them feel.”