Communicating in tough times

For many corporate leaders, there is no shortage of hard messages to be delivered. Everyday, it seems, the media recount the latest round of workforce reductions, plant closings, and product recalls. Employees, investors and other stakeholders increasingly demand not only information, but also explanations and plans for corrective action. In difficult times companies are faced with tough decisions. There is a tendency to cut back on services such as marketing and public relations. However, placing an emphasis on marketing and public relations can actually work to a company’s advantage.

There is no better time to invest in your corporate reputation than during an economic slowdown. It is how your business can survive the downturn and thrive upon recovery. It can help motivate employees, reassure investors, and retain customers during difficult times. An aggressive communication component is a key strategy during a down economy. It’s also a great time to stay one step ahead of the competition.

An expanded communications effort can help restore an organization's focus. It’s easy to lose sight of your mission when you’re struggling to maintain profitability or defend market share; there can be a tendency to stray away from the principals and values that form the foundation of the business. Communication initiatives are opportunities to get back to basics. And now is the time to establish your company’s reputation when you step up and talk about the adversity you’re experiencing and what you’re doing to overcome it.

A solid communications plan during a stagnant economy must be positive and not always negative. Most of your competitors are in a similar position, so be the first to tell everyone why and what your plan is for achieving better performance. In communicating externally and internally it is important to develop a series of key messages you want to convey. Depending on the audience, you may want to tailor your key messages. However, the key messages should be balanced in dealing with the problems and the vulnerabilities of the company with its strengths and opportunities.

A public relations firm can help you figure out how to best position your business to take advantage of market opportunities, including the economy’s inevitable upswing when it occurs.

Juries all a-Twitter

This week, Michigan Lawyers Weekly features a story about jurors tainting themselves by Tweeting from the jury box or accessing the Internet from their mobile phones to learn more about the cases they are presiding on. See Juries all a-Twitter, 23 Mich.L.W.847, July 6, 2009. Like the media, the courts need to adjust to the constantly changing landscape of how we communicate and how we access information. The Internet and mobile devices such as the iPhone or Palm provide jurors and others access to instant information about the cases before them. The Michigan Supreme Court amended rule 2.516 of the Michigan Court Rules to prohibit the use of computers, cell phones or other electronic devices during the trial to obtain information on the case. This is mandatory, not discretionary. The rule was amended in response to a number of cases being thrown out due to curious jurors, researching defendants and witnesses and then Tweeting their opinion before any opinion was rendered.

Social media sites, such as Facebook, Linkedin, MySpace and YouTube also provide excellent opportunities for plaintiff's counsel to mine the Internet for information to throw out a case or force a settlement. Mined appropriately and thoroughly, attorney's can learn a lot about the parties to a lawsuit or potential lawsuit.

And finally, some lawyers are using the Internet, the same way they were using television to argue their client's case in the public eye. Instead of turning to investigative reporters or "problem solvers," they are now turning to the Internet to bolster their client's position.

In the article, I caution attorneys to do their own due diligence and see what is being said about their clients on-line. This includes social media sites such as Twitter, You Tube, Flickr, various blogs and other on-line feeds and sites. The same is true for the opposing party, including opposing counsel.

Attorneys may want to consider retaining PR counselto monitor the Internet and/or use the Internet and social media to preserve, protect and enhance their clients reputation on-line. Attorneys may also want to consider hiring a computer forensics or e-discovery firm to see what information they can find on-line. For now, attorneys can set up Google alerts, RSS Feeds, or find other ways to monitor the media.

Regardless, we all need to do a better job of monitoring the Internet. Just as we should secure our credit report every six-months to monitor for identity theft, we should periodically Google or Bing our name, our company name, client's name or other key terms we should be keeping an eye out for.

Can you write me a recommendation?

Often times, people will ask you and others to write a recommendation for them on the popular social media site, Linkedin. However, the July 13 & 20, 2009 issue of BusinessWeek (p. 072) has an article warning managers from writing recommendations about their employees on Linkedin as they could be later used by plaintiff's lawyers in "discrimination or termination cases that put an employee's performance at issue". The article predicts that sooner or later, attorney's will begin to mine social media sites for evidence or was to bolster their clients cases. In some cases, The PR Lawyer is aware of cases in which attorney's have set up Facebook accounts just so that they can gather evidence for their clients and use it to force a settlement or bolster their case should it go to trial. Companies should have a blanket policy for their managers to not use Linkedin to make recommendations. If someone is asking for a recommendation, chances are they are looking for a new job. Save the recommendations for their quarterly, bi-annual or yearly review. And always, when using the Internet and social media sites, exercise caution.

FEC seeks advice on how to improve its website

The FEC is seeking the public's advice on how to improve its website and how best to use the Internet to communicate.The commission first launched its website in 1996, although this is the first time it has sought formal public comment on the site. In particular, the commission wants to ensure "state of the art" disclosure of campaign finance data, federal campaign finances laws and its own regulatory actions. To that end, FEC is seeking comments from representatives of political committees, federal candidates and officeholders, members of the media, authors, students, members of the academic community and advocacy groups. Comments should be sent to the FEC by July 21, 2009. They can be emailed to improvefecinternet@fec.gov. After the deadline, the commission plans to hold a public hearing on the website July 29-30, 2009.

Today’s legal strategies demand public relations

Q&A with Daniel Cherrin, attorney, lobbyist and PR executive High-profile litigation involves not just the defense of the legal claim but also the protection of the client’s public image. Where a case has aroused public or media interest or has the potential, it is vital that attorneys are prepared to face the media. After all, when the damage is done publicly the legal outcome becomes irrelevant.

In today’s 24/7 news cycle, attorney’s through their public relations counsel, can position clients to avoid litigation, minimize risk and protect their reputation, by blending law, policy, politics and strategic communications to provide clients an integrated approach to resolving or avoiding legal problems.

As an attorney, lobbyist and public relations executive, Daniel Cherrin has counseled a wide range of clients during crisis situations providing critical insight and recommendations to deal with situations and how to communicate effectively under less than the best conditions. In the following interview, Daniel draws on his experience in responding to questions about using public relations as an effective part of a legal strategy.

Q: Why do lawyers need to be concerned about public relations?

A: Today’s business environment demands an aggressive strategy to resolve issues legally while protecting one’s reputation publicly. Unfortunately, most people do not realize they need PR until they get a call from a reporter, subpoena from Congress or it is otherwise too late. As a result, lawyers need to be more than legal counselors or advocates. They need to be familiar enough with how perception is created within the public eye and how to use the media effectively to manage that perception. Therefore, the potential impact any litigation will have on a client’s image, reputation, investor relations and future business must be considered in creating a legal strategy.

In preparing for litigation or creating a legal strategy to meet a client’s objectives attorneys must consider the impact on their client’s business and reputation. Reputations take years to create and only seconds to destroy. Engaging public relations counsel early can create a comprehensive strategy that will help clients succeed.

Q. Why is it important to have relationships with public relations experts?

A. In today’s economy decisions are made based upon perception and reputation. Therefore, it is important to have the necessary relationships to make sure a client’s reputation is protected should any litigation become public or even to help position the client to remain out of the public eye. But in establishing relationships with public relations firms, it is important that the PR counsel be sensitive to the legal ramifications of their actions as it relates to protecting the company’s reputation.

To protect a client’s legal interests and also to preserve the client’s reputation publicly, counsel should consider engaging public relations counsel early in the process, so as to develop a complementary strategy and get advice on how to deal with the media and protect the client’s public relations interests. In developing a broad legal strategy that embraces both legal and public relations concerns, lawyers need to look beyond the facts and include public relations concerns as a comprehensive strategy. Public relations counsel can assist attorneys by managing the public relations issues while the attorneys focus on the traditional elements of mounting a case. If both the legal and the public relations components are to succeed, it is essential that both legal counsel and public relations counsel coordinate their efforts.

Q. How can lawyers protect their client’s reputation?

A. A lawyer who is going to represent a client outside the courtroom must become more comfortable in talking freely about their client’s case. Lawyers, trained to protect client confidences and to control information, have a natural tendency to answer only the questions that are asked and to give no more information than is necessary to resolve the issue. In the view of the public, however, information and communication are the two factors that build trust and go a long way toward preserving one’s reputation.

A PR firm can train attorneys in media relations and crisis management so they can feel more comfortable in talking with the media or dealing with the immediate concerns of a crisis. A public relations counselor can employ specific tactics to protect the reputation of a company or an individual leading a company while reinforcing issues legally. For example, in the public eye, we are presumed guilty if we respond to a reporter’s question with “no comment.” A better way to respond to a question you do not want to answer or are not ready to answer is to deflect it, by saying something like: “That is a very good question, one that we are looking into at the moment. As soon as we learn something new, we will get back to you promptly.” Lawyers must be more diligent in looking at the big picture in protecting their clients’ interests in the court of law as well as in the court of public opinion.

Q. Can attorneys handle the PR directly?

A. Given the stakes in today’s litigation environment, attorneys may find it helpful to develop a relationship with a public relations firm, so that it can be ready to assist on short notice if and when it is needed. For example, some public relations firms are known for their expertise in crisis and reputation management while others focus more on soft promotions and publicist work. Some public relations firms focus specifically on litigation communications practice, and even have attorneys and registered lobbyists on staff. Regardless of the case, it helps to establish those relationships early.

Q: If a company would like to learn more about protecting their reputation when faced with potential litigation, how can they reach you?

A:I can be reached by email at dcherrin@northcoaststrategies.com or by telephone at (313) 300-0932.

Funding for Community Development Corporations Exists, Even In Today's Economy

In this week's Crain's Detroit Business, reporter Nancy Kaffer writes about Detroit-based community development corporations rethinking their business model as funding becomes scarce to support their programs. (See Credit crunch forces CDCs to scale back, rethink). While it is true, in today’s economy, it is becoming more-and-more competitive to raise money. However, funding is available through various programs such as: Acquisition of real property; relocation and demolition; construction of public facilities and improvements (such as water and sewer facilities, streets, school conversions); business assistance; energy conservation and renewable energy projects; structural rehabilitation's; planning; transit oriented developments; homeless assistance grants; housing counseling; tenant based rental assistance; Self Help Home ownership Opportunity; Empowerment Zones/Enterprise Communities Program; Neighborhood Reinvestment programs; Mortgage Foreclosure Mitigation Assistance; and, others through the Departments of: Commerce; Education; HUD; the Neighborhood Reinvestment Corporation; Community Development Block Grants; The University Community Fund; Choice Neighborhoods Initiatives; Sustainable Communities Initiatives; Section 108 Loan Programs; Economic Development Initiative Grants; Compassion Capital Fund Grants; Office of Community Services funds; Energy; Labor; Health & Human Services; National Endowment for the Arts; and, other agencies and departments, depending on what you want funded.

In fact, the following community development organizations have turned to Washington to seek federal funds and have retained a lobbyist in Washington:

Reid Community Development Corporation Calhoun County Community Development (Michigan) Southside Community Development South Carolina Association of Community Development Jefferson Square Community Development Norwich Community Development New Man Community Development (Maryland) Paramount Community Development Town of Riverhead Community Development

HUD also is refocused on rebuilding and reinvesting in urban communities. President Obama has also made urban investment a priority, even creating an office in The White House, to focus on helping urban communities. Funding and support may also be available through The White House Auto Taskforce on Distressed Communities.

I cannot think of a better city than Detroit and its surrounding communities, for The White House and Congress to focus on. Detroit has been one of the hardest hit cities by the economic tsunami that rocked our world. And Detroit CDCs are the perfect organization, with an established track record of success and a dedicated group of leaders to help direct money towards the city of Detroit.

Detroit is a city of limited resources. The City government itself is focused on a number of priorities that may not necessarily be "neighborhood" priorities. Therefore, it is important that Detroit-area CDC's work collaboratively to secure additional funds for Detroit neighborhoods. Not necessarily working against the city for federal funding, but working alongside the city to secure funds it would normally not secure. CDCs can work alone in trying to work with Michigan's Congressional Delegation to secure funding or they can retain a lobbyist or advocate familiar with the process and personalities to identify the funding, apply for any necessary grants and work the requests through the legislative process.

Funding is available at a federal level. The CDCs need to identify the projects that need to be funded and then ask for Congressional support.

Twitter Transparency

Two recent lawsuits are challenging on line transparency, beginning with Twitter. St. Louis Cardinals manager Tony La Russa sued Twitter over an account created in his name and Detroit-based PR firm, Tanner Friedman is asking Twitter to reveal the name(s) of those who set up an account and fake agency page on Twitter. (*In full disclosure, one of the named partners at Tanner Friedman is a distant cousin of mine.) According to the St. Louis Post-Dispatch, La Russo's lawsuit claims someone created an account in his name and sent out "derogatory" remarks, thus damaging his reputation, causing "significant emotional distress."PC World recently commented on La Russo's lawsuit, stating that "Twitter's "Impersonation Policy" clearly states that "parody impersonation accounts" are perfectly permissible. As long as the profile somehow indicates it isn't meant to be legit, it's A-OK by Twitter standards." Although La Russo and Twitter are trying to work out a settlement, TannerFriedman just wants answers as to who is using Twitter to try to damage the reputation of a PR firm and wants to hold that person accountable.

According to a recent post on the TannerFriedman blog, a response states that "Legislators in Texas last week passed an “online harassment” bill making it a crime to impersonate people on social media sites." The bill now awaits the governor's signature. According to On Line Media Daily, Rep. Linda Sanchez (D-Calif.) has introduced a federal measure.

This is uncharted territory for lawyers, lawmakers and public relations professionals. In fact, today, websites and social networking sites are being extremely cautious about what is posted on their site as to limit their liability. However, given the enormous popularity of Twitter, Facebook, Linked IN, You Tube and others, some post or parody is bound to slip through the wires.

To avoid any damage and mitigate any loss to your business and reputation, you should constantly monitor the Internet to avoid anyone to cause you any further damage and continue to work to increase your profile among key sectors, including on line media.

Obama -- Creating & becoming your brand

Despite running for President, Barack Obama has created a unique brand that has changed the political landscape. According to Keith Reinhard, chairman emeritus of DDB Worldwide, "Barak Obama is three things you want in a brand: (1) new, (2) different and (3) attractive." And Obama has spread his brand on a new medium that many of us are still trying to figure out -- New media and online social networks. Any forward-thinking business should take note of Obama's rise, despite what you may or may not think of him. According to the April 2008 issue of Fast Company, social networking poses challenges for marketers no matter what or whom they are selling. Companies must cede a certain degree of control over their brands if they are to leverage their on-line presence. BarakObama.com features constant updates, videos, photos, ring tones, widgets and events to give supporters a reason to come back to their site. On mybarackobama.com for example, the campaign's quasi social network, guests can create their own blog, send policy recommendations, set up their own mini-fundraising site, organize an event, even use a phone bank widget to get call lists and scripts to canvass from home. John McCain's and Hillary Clinton's site offers similar networking tools as does Obama, but Obama has invested more in building his brand both on and off-line. It sure beats the "meet-ups" and "move-ons" from the 2004 presidential election. The Obama campaign has also tapped other on-line communities. And while he, like others, must cede some control, you can still stay on message and pass on your messages to others. However, like everything else, you need to continually monitor the web and act or react accordingly. The best strategy however for an on-line presence, is to build your brand, connect with a diversity of viewers and engage others in the discussion.

Today, every company is a media company

While getting our name in the paper is always exciting it is no longer adequate in establishing ourselves as experts. While you may be focusing on securing media about you and your company, your competitors are most likely focusing on an on-line strategy to establish themselves as experts. An effective strategic communications campaign must include traditional media (such as newspapers, magazines, television and radio) and an on-line presence. An easy way to build credibility on-line is to establish relationships with influential bloggers. But bloggers like journalists, do not want "public relations" professionals to send them press releases. Like business today, it all about "relationships." As a result, to effectively build relationships with bloggers, it is important to have the following strategic plan (or some variation): (1) Identify the influential bloggers in your industry -- Visit various websites, review various blog rolls and look at the more traditional media to learn which reporters also have blogs and which are the most respected and visited. (2) Go where the bloggers are -- Attend trade shows or review their blogs to see where they are going. For a list of vents, look into www.upcoming.org. (3) Read the blogs of the people you want to cover you. Let them know you are reading their blog by sending them a timely note about an issue they just blogged about. Include a link to your website or your blog. Also add public comments to posts on their blog. Bloggers like anything that will help increase their rankings and readership. Remember, we all have an agenda. (4) Send bloggers interesting stories especially about other people. Direct them to news items or send them links to new blogs and videos. (5) Start blogging -- This is your opportunity to share your story the way you want it and for other people, including bloggers, to learn about you. (6) Build links -- In order to get the most traction on-line, look to establish links to other bloggers and websites, boost your websites search engine optimization (SEO) and search engine advertising (SEA), list your company in various on-line directors, and look become an on-line expert on sites such as "About.com." And if you have a book or host events, send bloggers a copy of your book and invites to your events. Then, when you need something from a blogger, such as announcing a new product, they will be more apt to listen to you since you already have an on-line presence and have reached out to them with useful information.

IN THE PUBLIC EYE: PROTECTING A CLIENT’S REPUTATION

The sands have shifted in the practice of law. Gone are the days when clients were only concerned about the legal ramifications of a lawsuit or legal quagmire. Today, clients are often also concerned with how they are judged in the public eye and perceived by their customers, vendors and by their own families. In protecting a client’s reputation, “an attorney’s duties do not begin inside the courtroom door -- he or she cannot ignore the practical implications of a legal proceeding for the client.” An attorney should take reasonable steps to defend a client’s reputation.

This is particularly important in an environment where news is reported “24/7” and at times even delivered instantaneously to our cell phones. Likewise, with sales of newspapers and magazines at all-time lows, the media is hungry for a story even if no story really exists. Therefore, lawyers must be more diligent in looking at the big picture in protecting their clients’ interests in the court of law as well as in the court of public opinion.

Today’s legal strategies demand public relations

Today’s business environment demands an aggressive strategy to resolve issues legally while protecting one’s reputation publicly. As a result, lawyers need to be more than legal counselors or advocates. They need to be familiar enough with how perception is created within the public eye and how to use the media effectively to manage that perception. Therefore, the potential impact any litigation will have on a client’s image, reputation, investor relations and future business must be considered in creating a legal strategy.

To protect a client’s legal interests and also to preserve the client’s reputation publicly in a high-profile case, defense counsel should consider engaging public relations counsel early in the process, so as to develop a complementary strategy and get advice on how to deal with the media and protect the client’s public relations interests. In developing a broad defense strategy that embraces both legal and public relations concerns, lawyers need to look beyond the facts and include public relations concerns as a comprehensive defense. Public relations counsel can assist defense counsel by managing the public relations issues while defense counsel focuses on the traditional elements of mounting a defense. If both the legal and the public relations components are to succeed, it is essential that defense counsel and public relations counsel coordinate their efforts.

Protecting a client’s reputation

A lawyer who is going to represent a client outside the courtroom must become more comfortable in talking freely about their client’s case. Lawyers, trained to protect client confidences and to control information, have a natural tendency to answer only the questions that are asked and to give no more information than is necessary to resolve the issue. In the view of the public, however, information and communication are the two factors that build trust and go a long way toward preserving one’s reputation.

A public relations counselor can employ specific tactics to protect the reputation of a company or an individual leading a company while reinforcing issues legally. For example, in the public eye, we are presumed guilty if we respond to a reporter’s question with “no comment.” A better way to respond to a question you do not want to answer or are not ready to answer is to deflect it, by saying something like: “That is a very good question, one that we are looking into at the moment. As soon as we learn something new, we will get back to you promptly.” Retaining public relations counsel

The attorney-client privilege is generally preserved in retaining public relations counsel during the course of litigation. However, it helps when your public relations counsel also happens to be a licensed attorney. In fact, public relations seems to be a popular alternative career for attorneys. In any event, defense counsel should exercise care to ensure that any privilege is preserved. It also is preferable that the public relations firm be retained by and report to defense counsel rather than the client. This will help in mounting a coordinated defense and also help to preserve attorney-client privilege by ensuring that all communications pass through defense counsel.

Likewise, public relations counsel should include defense counsel in all stages of communication and consult closely with defense counsel in developing key messages to make sure it complements the legal strategy rather than puts it in jeopardy. Defense counsel should be present during any conferences involving public relations counsel and the client.

Given the stakes in today’s litigation environment, defense counsel may find it helpful to develop a relationship with a public relations firm, so that it can be ready to assist on short notice if and when it is needed. For example, some public relations firms are known for their expertise in crisis and reputation management while others focus more on soft promotions and publicist work. Some public relations firms focus specifically on litigation communications practice, and even have attorneys and registered lobbyists on staff.

Many of the larger law firms have a chief marketing officer that they can rely upon for initial help or guidance, while others have already retained a public relations firm to assist with matters that are beyond the routine. In any event, defense counsel should look for a public relations firm that has relationships with the media, both local and national, on-line, in-print and on-the-air. A useful source of information on public relations firm is the website maintained by the Council of Public Relations Firms at www.prfirms.org.

In preparing for litigation or creating a legal strategy to meet a clients objectives attorneys must consider the impact on their client’s businesses and reputations. Reputations take years to create and only seconds to destroy. Engaging public relations counsel early can create a comprehensive strategy that will help clients – and defense counsel -- succeed.

[i] Gentile v State Bar of Nevada (Kennedy opinion), 510 US 1030, 1043 (1991).