Crisis Management… Letterman Style

David Letterman may have won the first round in his sex-with-staffers crisis, but it remains to be seen whether his strategy of announcing the scandal in a comedy monologue will help or hurt him over the long run.

A cardinal principle in crisis management is taking charge of your crisis: Don’t leave it to others to define you; define yourself. Letterman did just that. He preempted the media by addressing the situation himself, live on his popular late-night television show. And he did it in the style he knows best, hoping to win over viewers and the studio audience through humor. It was a masterful performance. “Good old Dave; there he goes again!”

Under those controlled conditions, he was also able shift much of the focus away from the affairs and toward the blackmail attempt, thereby eliciting sympathy as a crime victim.

Letterman had at least a couple of other options for taking charge of the bad news:

1. He could have announced it on his show in a serious manner, asking for forgiveness and understanding as so many philandering politicians do. But that is wearing thin and therefore becoming less and less effective. And a serious announcement at the beginning of “Late Night” would have put a damper on the entire remainder of the show. Announcing it at the end would have been just as bad, ending on a down note.

2. Letterman could have broken the news himself by issuing a news release and/or conducting a press conference, but this would give him much less spin control than a “Late Night” announcement. And a press conference would entail answering questions about his sexual conduct, without the comedy. He can dodge most media queries from this point on by refusing comment, so as not to interfere with the investigation in

One thing Letterman knew he couldn’t control was the fact that the news was going to get out, one way or the other. He made the right choice in preempting the media, and in the setting and manner in which he made the announcement.

However, his comedy monologue would have been a bit more helpful to his situation over time had it been more self-deprecating and apologetic in tone. Letterman is a master at his craft and could have pulled it off. Instead, he was almost flippant. It was all, wink, wink, nudge, nudge, “Aren’t I just a loveable little devil pulling the most outrageous stunts?” That could come back to haunt him.

Letterman’s overall strategy for handling his crisis is to weather the storm and survive as the host of “Late Night”. He won round one by delivering ratings and not hurting his show.
What happens from here?

Letterman’s flippant “apology” could eventually backfire.

-Posted by Tony Lentini 10/29/09

Spending Versus investing Your Marketing Dollar

These are tough times. Everyone is trying to find ways to cut costs and operate more efficiently. Perhaps your company has had a layoff in its marketing and PR functions and is contemplating a change in direction. The first thing to find out is: How effective are your organization’s brand awareness and communications programs? How do they stack up against the competition?

Is your brand well recognized by customers, investors and employees? Is it still effective and geared toward the right consumers? Is your logo still fresh and relevant, or does it send the wrong message to the right people? Are your marketing and sales collaterals, signage, corporate communications materials and messages consistent and correctly targeted all across your organization? Are you losing market share to a competitor? Is your perception in the marketplace something you control, or are you leaving that for others to decide? Are your messages driving sales and growth or are they falling flat? Many executives would say, “Now is not the time to mess with our identity; it’s expensive and takes the focus off of our day-to-day operations.”

Those executives don’t work for top-brand companies. Top-brand companies, such as Coca Cola, McDonalds, General Electric and Johnson & Johnson know that their image and what their brand stands for, are of paramount importance, especially in a down economy. Their brand drives sales. So when is the best time to evaluate the above questions? Yesterday!

-Posted by John Sr. 10/15/09

Photoshop or Fireworks?

Which is better for web designers, Photoshop or Fireworks? This is a question many web designers seeking the best out of their work ask themselves. Back before Adobe bought-out Macromedia that was an easy answer, Fireworks. But as time has gone by Adobe since added Fireworks to it’s product line, and Photoshop has evolved adding many features that Fireworks once called it’s own. So, which is better? Even though Photoshop and Fireworks share many of the same tools and both can produce websites there is still differences. Without confusing anyone about the differences I’ll try to help make your choice easier by asking another question. Do you do graphic design and web design, or just web design? If you are a web designer who does more than just web and you dabble in graphic design, then Photoshop would mostly likely be the better choice. With its versatility for photography, it would suit those better who demand more than just web design. But if your focus is strictly web design, then Fireworks is a great choice, and one I would recommend without hesitation. From it’s first release, Fireworks has focused on web designers, and that focus still stands today. So in conclusion, both Photoshop and Fireworks are great tools for web designers. The better choice for you just depends on what your workload includes.

-Posted by Brad 10/9/09

Five mistakes companies make concerning their Annual Report.

1. It’s a requirement!
Most companies today take the attitude that it isn’t that important and only a SEC requirement. There was a time when the Annual Report represented the heart and soul of a company. It was the main marketing tool used in every transaction. It defined the directions of the company, past, present as well as the future. Why has it been regulated to a necessary evil? Has the Internet taken its place? I don’t think so? People may have changed the way they communicate, but people still want to know about their investment, place of employment and who they do business with. I can understand if you want to cut down on the cost of printing or stop the high cost of mailing and shipping, but don’t cut down on the message. Not only do your shareholders, employees and vendors need it,but you also need it! Not everyone understands assets and liabilities or governances and transparence. Don’t assume people understand what your heart and soul is based on a SEC requirement.

2. Accountants making the big decisions.
When times get difficult many times sound marketing decisions are replaced with accountants. Number crunchers never make good marketing decisions. If you need to watch the dollars, set a budget and then create an effective message within that budget. Cutting cost is never an excuse to cut communications. It will take at least 5 years to reestablish your brand presence if you do not make the effort to control it. What savings you think you have today will cost you in the future.

3. Not putting a value on the Annual Report?
How much should an Annual Report cost? It should cost you exactly how much you value your own perception. How much do you spend on your house, car, clothing, etc. to make the desire perception you want others to see? Why treat your Annual Report any differently that you would treat yourself? It should be a reflection of you the President, the one who has been charged with the success or failure of your company. So remember the next time you sign your signature at the end of your letter, you are saying to everyone, “this is how I see my company and this is the way I want you to see me.”

4. Spending too much, unnecessarily.
Can you spend too much? You bet you can. So pick a firm that can work within a given budget. Many companies make the mistake of letting the “professional” make the budget decision. If this is your first Annual Report, you may need some help establishing some goals, but they should still be your goals. Only you know the value and budget that you have for the process. A good firm will not take advantage of the process by bidding low knowing there will be changes where additional money can be made. Each Annual Report firm approaches the process differently. Look for one that is willing to state their cost up front and are willing to stand behind it when the process is over. You may presently have a relationship with a firm, but is it one that is taking advantage of the process with additional cost, revisions and overtime? Find one that is willing to stand behind their proposal no matter how hard the process becomes. That way you will find out if their interest is truly yours. No matter how much you like the final product, it will never be deemed successful if it is over budget.

5. Hiding the Annual or not doing one.
Has instant news on the web replaced the need to tell your story? Your company has a perception. You can control it or you let others control it for you. Many companies think that a website is the answer to communicating. Done right, it is a good start. But most sites have become a hodge-podge of information that has no relevance when it comes to communicating a central company message. The annual report is generally found buried on a page in the financial section - the year’s most important message you have to communicate to your shareholders, employees and vendors. Why not put the Annual Report front and center on the home page? If you are not proud of your accomplishments, why should anyone else be? Communicate with the viewer, establish the playing field, let them know what they are to expect. And then fulfill their expectation. Don’t assume they get it!

Posted by John Weaver on 10/1/09