Bernie Madoff Reminds Us of the Need for Open Communication and Ethics

There is a revival of interest in Bernie Madoff now that the eminent TV program 60 Minutes profiled his family (Oct. 30, 2011). It is a reminder to us all about the value of reputation. I give a speech on branding. I ask my audience if they could imagine the image that their own name would conjure. I then list the following names and show their pictures:

• Mohandas Gandhi
• Mother Theresa
• Martin Luther King
• Hitler!

The flinch at that last name is palpable, especially after the admiration and good will expressed for the others. (Stop and think: When was the last time you heard a reputable family name their son “Adolph?")
Peter Drucker noted that "ethics stays in the prefaces of the average business books." Consider the long line of lies told by a famous oil company when it had a massive spill off the Louisiana coast. The company listed lists otters, sea lions, seals, and walruses as "sensitive biological species" that deserve protection in the Gulf of Mexico. However, there are no otters, sea lions, seals, or walruses in the Gulf of Mexico. They listed emergency phone numbers for mammal specialist offices in Florida and Louisiana that were no longer in service. And their spokespeople proudly stated in their disaster plans that, "under the worst-case spill scenario," it could skim, vacuum, or otherwise remove as many as 20 million gallons of oil a day. In fact, they captured only about 630,000 gallons a day.
Even the best companies often obfuscate in their annual reports. Some may say that "We performed well in a difficult economy," rather than say, "We didn't make our numbers this again again."  Or they may state that "We have a healthy backlog," rather that "Our manufacturing inefficiencies keep us from meeting our delivery goals."
Conducting business in a socially responsible way is, in the end, a sound business practice in and of itself. It allows you to attract the best employees. It helps create an atmosphere in which quality products are produced because your people will proudly stand behind them. Trust helps maintain good relations with people and institutions such as your employees, your shareholders, the media and the local community. Your word becomes your bond, as good as a contract. But most important, it is the best branding possible. After all, if you can't be trusted to keep your story straight, why should your customer trust your products or services? So I encourage all business people to build their trust in the following ways, as I have helped my clients in my role as a professional communicator:

• Inform your employees of the state of your business regularly through face-to-face meetings and publications.
• Issue press releases and meet with members of the local media so that they learn to trust your word.
• Address members of your community and build relationships with your elected representatives.

"I would rather be the man who bought the Brooklyn Bridge than the man who sold it," said Will Rogers. The name "Madoff" is now a synonym for "swindler," and all financial planners now operate under a cloud of suspicion.  Indeed, the hell through which Bernie Madoff put his family, his employees, his customers, and even his colleagues is an argument for both ethics and transparency.

Oprah's Announcement is a Great Lesson in PR

January 24, 2011 -- Oprah Winfrey dropped a bombshell on her audience today when she announced that she had a half-sister of whom she had no previous knowledge. Depending on your viewpoint (or the level of your cynicism), this was either a classic TV moment or a classic Oprah moment: a dramatic reveal, lots of tears, getting to know the sister named Pat, and much time spent on the background of this event.
However, I come at it a different way. I propose that this event is a perfect example of good public relations, such as Oprah and her team have practiced so expertly in the past. Mainly, it supports the notion that a person or organization often should disclose developments or news proactively in order to maintain control of it. Winfrey said as much at the top of the program. She said that she was revealing the news proactively because she and her family wanted to do it on their terms. Based on my own experience, I believe that this was an extremely wise decision.
"I'm telling you today because once the blogs and all the media get hold of this news, there is no telling what they will do with it," Winfrey said. Her strategy aligns with my own, based on my own duties as a media or communications leader. I have often advised my customers and employers that, just as there is no such thing as a perfect vacuum in nature, neither is there one in news. When a story breaks and there is a shortage of information, people will fill it however they can, whether with innuendo, unsubstantiated sources or even misinformation. At that point, you have lost control of your message, and you are now playing catch up. This problem is exacerbated with the social media, where anyone with a Twitter account can send an erroneous message around the world.
Unlike Winfrey, Jay Cutler, quarterback of the Chicago Bears, has allowed such a lack of control to victimize him. He left yesterday's NFC championship game complaining of a knee injury. But many observed that he seemed to be walking with no apparent pain. It was also observed that he was disengaged from the game, not even advising or interacting with his back-up quarterbacks.
Sports talk radio is now abuzz with conjecture about his "heart," his ability to play big in a big game. Some time soon, an examination of his knee will be made public, and if he does not have a major injury, he will be pilloried both in the Chicago media and across the nation.
Oh, I'm sorry, too late, Jay -- That has already happened. Now you are points behind in your PR game and little time left to fill the gap. Is that a familiar feeling?
When many public officials and other figures were caught doing something they should not have, we have often used this term afterward: "The cover-up is worse than the crime." It is an oft-told tale, yet the large majority of people do not learn from it. Maybe this time, the lesson from Oprah will take.

I Told You So -- "Critics say Obama's message becoming 'incoherent'"

CNN recently published an editorial in which many observe that President Obama's message is getting muddled. As a professional communicator and speechwriter, I wholeheartedly agree. In fact, I saw this coming at his inauguration, way back in January 2009.
Read the editorial and then my observations from the President's first day in office. I welcome your thoughts on his fading communication skills.