May 30

How does it feel?

download (1)There’s nothing like watching multiple, ongoing crises unfold to make PR bloggers happy. For us it’s like winning the Triple Crown.

First, there was Donald Sterling. Then there was GM. Now, we have the V. A. hospitals’ delays. And, each crisis has multiple, never-ending news cycles. That’s manna for reporters and Repman types alike.

In each of the three crisis cases, we’ve seen horrific responses and worst practice examples of how not to manage an unfolding event.

But, rather than repeat what’s already been said by countless others, I’d thought I’d address the other side of these types of mega-crises: the impact on the morale of the rank-and-file employees of all three organizations.

A serious crisis can be like a cancer that, if left unchecked, can kill an organization from the inside out. Sure, customers will bail. Stock prices will plummet and competitors will scoop up market share, but employee morale and productivity are fundamental to any embattled company’s survival.

I’ve counseled many clients over the years, and ensured that human resources specialists work closely with grief counselors, organizational behavior experts and, when appropriate, even motivational speakers to ensure innocent employees’ needs are addressed.

But many company management teams simply forget their employees when a CNN crew is outside corporate headquarters, a Senate investigation is underway or ESPN is providing 24×7 coverage.

To wit, I remember attending a cocktail reception in the immediate aftermath of the massive, 2008 market meltdown. I happened to bump into a friend who had worked at the now defunct Lehman Brothers. I asked him how he was holding up. ‘I’m ok,’ he said, ‘but my family is taking a terrible beating. My wife’s friends are ignoring her and my kids are being taunted at school. As for me, everyone always asks the same question: How does it feel to have played a part in destroying our economy?’

I’m sure a version of that anecdote is happening right now to the tens of thousands of GM employees who weren’t part of the massive, decade-long quality cover-up.

Imagine what it must be like to work at GM right now. I’ll bet you can hear a pin drop in the corporate offices. And, as far as the factory floors are concerned, you better believe stress levels are overheating faster than a broken down ’68 Buick on the Cross Bronx Expressway.

If GM is to ever turn things around, it’s critical they pay as much attention to the psychological and emotional needs of the employee base as they do to regulators, politicians and the media. Ditto for the VA Hospital. As for the L.A. Clippers, I guess their employees can get away with saying, ‘Hey, I worked for an ass. What can I say?’

So, as the GM and V.A. stories move forward, pay attention to the most overlooked part of any crisis story: employee morale. It’ll be interesting to see how each organization does, or doesn’t, attend to the needs of their most important front-line ambassadors.

If nothing else, management should provide employees with credible answers to the question, ‘So, how does it feel to work for (fill-in the blank).’

Jul 08

Motown’s macho man

Imagine picking up a newspaper or turning on the tube to learn your significant other has fallen
4fcaa6ba3e21 in love with someone else. Well, that's figuratively what happened to Greg Anderson, CEO of ad agency BBH, who read his agency had been fired by Cadillac in Advertising Age! No warning by the client. No note thanking the firm for its work. Nothing. Talk about being blindsided. To make matters worse, the exact same fate befell Susan Gianinno, CEO of Publicis, a month earlier.

Both had fallen victim to Motown's new macho man, Joel Ewanick, the VP of U.S. Advertising for General Motors. Ewanick has been in his job for exactly two months. In just 60 days, he's destroyed his own image, further tarnished GM's already tattered reputation and decimated two fine ad agencies. Now, there's something to tell the grandchildren one day (“Curl up on grandpa's lap and let me tell you about the time I whacked two hot shot ad agencies in less than 30 days. You kids will just love it!”).

Prior to GM, Ewanick had toiled for Nissan, Hyundai and a
yacht maker. Something tells his internal ethics compass went awry on board one
of those yachts.

Kudos to Ad Age for once again providing a valuable reader service by outing such horrific behavior. I wish our PR trades would follow suit. Trust me, Ewanick is not unique (and, try saying that three times fast).

If I were the Motown macho man's new agencies, though, I'd be sure the invoices were paid promptly. This guy put the 'v' in volatile.

We've been 'Ewanicked' a few times in our storied history, but it was never as sinister as this. We once pitched the division of a Fortune 500 company, for example, and were told a decision would be forthcoming shortly. Naturally, that was followed by complete radio silence. Then, sure enough, O'Dwyer's printed an article announcing the corporation's new agency of record. I was upset, so I e-mailed the prospect. He responded a few days later saying he thought he'd sent a letter to the losers. Nice. No apology. No explanation. Nothing. Just lots of wasted time and effort on our part and yet another misbehaving prospect not held accountable.

If there's a god (and one wonders nowadays), Ewanick will get his just desserts one day soon. Ideally, he'll wake up in his Grosse Point Farms estate, shuffle to the front door, pick up a copy of Automotive News and read the following, 'Ewanick Sacked. Smith to Head GM's Advertising.' I'll bet a lot of BBH and Publicis staffers would lift a glass of champagne to toast that decision.

Jun 11

There’s dumb, and then there’s GM’s decision to drop the nickname ‘Chevy’


June 11
Every
now and then a corporate marketing decision comes along that is so positively stupefying
that it stops me dead in my tracks. GM's decision to drop the word 'Chevy' in any
and all sales and marketing materials and replace it the more formal
'Chevrolet' is one of those landmark blunders. This is a
train wreck before it even happens. 
Late
Thursday, Chevy tried to clarify their marketing misstep with this video which,
sadly, only further confuses the matter.

Citing
the consistency that other leading brands such as Coke and Apple have employed
in their communications efforts, Alan Batey, GM's VP for Chevy's Sales and
Service and Jim Campbell, Chevy's VP of Marketing, say opting for Chevrolet
will make the brand name more recognizable with consumers. Yeah, sure. And, I
want a pound of whatever drug Messrs, Batey and Campbell are consuming. It has
to be totally mind-altering.

Chevy,
as the
Times article rightly points
out, is an American icon. It's right up there with baseball and apple pie.
People won't stop using it because the brand decided to formalize the name.
Talk about change for the sake of change.

If
Batey and Campbell had their way, FedEx would go back to being called Federal
Express, ARod would go back to being Alex Rodriguez and erstwhile Peppercommer
Stein would revert to Andrew Stein. And, trust me, the latter just isn't going
to happen.

Regardless
of the inanity of their move, the Batey/Campbell dynamic duo will now pour
millions of dollars into a re-branding and re-positioning effort. And, for
what? To get people to say Chevrolet instead of Chevy. That won't happen
either.

Corporate
America never ceases to amaze me. Just when it seems as if smart and
sophisticated marketing campaigns from the likes of OgilvyOne, Crispin and
others are starting to change the way we engage with consumers, something like
dropping the name Chevy comes along.

There's
dumb and dumber. But, this may be dumbest. Period.

May 30

Better late than never

Humming along on its way to oblivion, the General Motors Corporation has finally awakened to the Green movement and announced it would be hiring hundreds of engineers and producing scores of new Hummer_2 models that would be environmentally friendly by 2010.

GM has been stuck in idle for years as an inbred management team allowed Toyota and other foreign competitors to zoom past the once mighty monolith.

Despite finally waking up, GM will continue to lag behind its competitors. Why? Because, while they may have finally stumbled onto the Green trend, GM has yet to produce the kind of quality automobiles that Americans want. So, thanks for becoming eco-friendly, GM. Now, see what you can do about building decent cars.