Published Works

PR 3.0 – The Era of Disruptive PR

admin — Fri, 09 May 2008 13:09:29 -0500

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In an April 2008 article from the Council of Public Relations Firms' online newsletter, The Firm Voice, Ketchum Client Development Director Nick Ragone and Senior Media Specialist Chris Kooluris explain how an era of disruptive PR has emerged in which companies and brands are now engaging their enthusiasts and stakeholders on their terms, not a company's.

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By Nick Ragone, Senior Vice President and Director of Client Development, Ketchum, and Chris Kooluris, Senior Media Specialist, Disruptive Media

Just as the Internet is transitioning from "Web 2.0" to "Web 3.0," public relations is making a similar sort of transition.

If PR in the mid-1990s gave rise to enhanced one-way communication through the mass adoption of e-mail and the Internet, and more recently new technologies like blogs, podcasts, and other online tools have spurred something resembling two-way communications, then what's on the horizon?

We don't believe it will be driven by new technology so much as it will be a change in mindset. We call it "disruptive PR," or to state it more accurately: companies and brands engaging their enthusiasts and stakeholders on their terms, not the companies'. In reality, it means ceding a little bit of the brand's identity to the enthusiasts who love it most by looking at the world through a new set of eyes: the enthusiasts. That might seem like a subtle evolution, but in fact it's a striking departure from the current landscape.

This won't really be a matter of choice; it's going to be a necessity – a table stake for companies that want to remain relevant in a world where irrelevance is quickly becoming the norm.

Why will that be the case? Quite simply, with every passing day fewer and fewer people are consuming media – any type of media. We know traditional media is suffering – look no further than the continued layoffs at the networks, newsweeklies and newspapers as Exhibit A – but that doesn't mean all those eyeballs are automatically migrating to "mainstream" Web sites, either. Some are – look no further than sites like PerezHilton, TMZ, Engagdet, Gizmodo and others as Exhibit B – but in reality only a few dozen Web sites are genuinely thriving in this new world.

A large – and growing – number of people are becoming increasingly preoccupied with their interests because their interests can now be catered to. And this happens in lots of different ways: through social networks, micro blogs, niche sites, gaming worlds, viral programming, and so on. The list is endless and growing (sort of like infinity+1).

The essential truth – for companies the word would be scary truth – is this: Consumers don't have to consume anything anymore that doesn't speak to their interests. If you're a diehard Mets fan, your media consumption may consist of Metsblog.com, SportsNet NY, and the Mets Facebook group, and little else. You may fit the coveted marketing profile – young man 18-34 – but if brands (that aren't called the New York Mets) want to reach you, they had better relate it back to the Mets somehow. That's not an easy thing to do.

To use a real life example, take the case of Dr Pepper, a Ketchum client. Its primary target audience is young men, and its primary brand attribute is that it's flavorful. Given that, its marketing and PR voice has always been a bit irreverent.

But our client Greg Artkop challenged us to go beyond that. No more doing the stuff that the brand thinks is cool; let's engage our enthusiasts by doing something that they think is cool, with the hope being that it would create a deeper connection.

Our concept: Encourage Guns N' Roses frontman Axl Rose to release his decade-in-the-making album Chinese Democracy by offering a free Dr Pepper to everyone in America if the album drops in 2008.

At first blush it might seem bizarre, but to date it's generated over 300 million impressions and has created an almost immeasurable connection between the brand and millions of GNR fans. Why? Because the brand put itself in the place of one of its subdemographics – music enthusiasts – and approached it from their perspective: what would they appreciate, find entertaining, and think is cool. And we made it authentic and funny by purposely excluding estranged GNR guitarists Slash and Buckethead from the free Dr Pepper offer – a small but critical touch.

It worked so well that the reclusive Axl Rose actually thanked Dr Pepper on the official GNR Web site, and revealed that he would share his Dr Pepper with Buckethead because a few of his tracks were still on the album. That might seem like an insignificant thing to most people, but to the GNR fans we were targeting, this was news – big news. They appreciated what Dr Pepper had done, mostly because it was so unexpected, unusual, and out of the ordinary for a company. Their feedback to us (in the form of thousands of blog posts): who knew that Dr Pepper had a sense of humor?

Disruptive PR isn't about attention grabbing stunts, cheesy ploys, or message-driven campaigns. Quite the opposite: It's relating to enthusiasts in a way that attracts their attention – disrupts them so to speak – on their terms, not ours. It's not easy – in fact it's very hard – but it's going to be essential for brands to remain relevant.

Nick Ragone is a Senior Vice President and Director of Client Development at Ketchum. Chris Kooluris heads Ketchum's Disruptive Media group.

Nick Ragone

Chris Kooluris

Pharmaceuticals Need Online Media

admin — Mon, 28 Apr 2008 19:24:50 -0500

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In a March 2008 Op-Ed from PRWeek, Ketchum Executive Vice President and Director of Global Healthcare and Brand Advocacy Ann Moravick explains how the power of digital media is a call to action for drug companies.

Member Spotlight: Jaime Schwartz, M.S., R.D., Account Supervisor, Ketchum

admin — Tue, 08 Apr 2008 20:18:57 -0500

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In a profile from the winter issue of the newsletter of the Greater New York Dietetic Association, Ketchum Food & Nutrition Practice Account Supervisor Jaime Schwartz discusses her career and her role at Ketchum as a Registered Dietitian specializing in food and nutrition communications.

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Interviewed by Lisa Ronco, M.S., R.D., C.D.N.

Reprinted with permission from The Greater New Yorker, a publication of the Greater New York Dietetic Association.

Explain your role at Ketchum.

I joined Ketchum in March 2006 as a Senior Account Executive and was recently promoted to Account Supervisor. My role as an R.D. working in public relations is to provide strategic nutrition communications counsel to food and wellness clients. The majority of the projects I am involved in focus on outreach to health professionals. For example, I played a key role in the development of www.snacksense.com, a new Web site that Frito-Lay launched to provide resources to help health professionals discuss with clients the role of snacking in the diet. I am currently working on a program that Frito-Lay is developing in partnership with the ADA called License to Snack (Web site of the same name), which has both consumer and health professional elements. All of Frito-Lay’s activities at this year’s FNCE were coordinated by my team, including the “Navigating the Aisles” satellite symposium, “The Skinny on Total Fat: A Matter of Quality versus Quantity” session, a media briefing, spokesperson briefing, the writing and layout of 12 education materials for distribution at the booth, as well as booth design.

What do you like best about being an R.D. in public relations?

I love being able to create opportunities for R.D.s to gain visibility as the go-to source for nutrition information. For example, when Wendy’s was looking to launch a program that connects moms with nutrition experts, I recommended to the client a panel of three R.D.s, who were then selected to develop and be featured on the Mom R.D. Web site. I also make recommendations for R.D. spokespeople to appear in TV, print and online interviews on behalf of Ketchum’s clients. I really enjoy being able to “wear different hats” in professional organizations as a member and also as a partner, identifying sponsorship opportunities that are a good match for my clients and the organization. For example, I am not only an active member of the Food and Culinary Professionals (FCP), but I also helped secure a sponsorship for the California Strawberry Commission, coordinating a hands-on culinary workshop in Chicago where FCP members prepared recipes with strawberries to elevate the status of this favorite fruit as more than just a cereal topper or dessert. I even wear different hats in NYSDA, as I am working with the annual meeting coordinators to have “The Skinny on Total Fats” session (which was standing room only at FNCE) presented at NYSDA’s meeting in Albany.

Your current position is far from the typical clinical R.D. role. How did you get to this position?

I got this position, as well as every other role I’ve had, through networking, seeking out mentors, fine-tuning my skills and having a little patience. On my way back from FNCE 2004 in Anaheim, I was sitting at the airport and met Wendy Weiss, an R.D. who worked for Ketchum. She shared what her job entailed, the clients she worked with and how she applied her nutrition expertise. Although Ketchum wasn’t looking to bring on another R.D. at that time and I had just started at Atkins Nutritionals six months prior and wasn’t looking to leave, I sent my rósumé to Wendy for consideration should a position become available in the future. Ketchum brought me in for an exploratory interview the following month and I was called back in a few months later. When I was looking to leave Atkins Nutritionals, I followed up with Ketchum, but they still did not have the right mix of clients to bring on another R.D., so I accepted a position at Kraft Foods. But the following year when Ketchum called, it was finally the right time for both of us. I was brought in to meet with the team, including Ilene Smith, an R.D. who I had met through my involvement in the Dietitians in Business and Communications (DBC). I was offered the position and was relieved that my passion and persistence had paid off.

I know you are quite involved in professional activities. Please tell our readers about your roles outside of Ketchum.

I am the Mentoring Program Co-Chair for DBC, which is greatly rewarding since I benefited so much from the program when I first became an R.D. — having been paired with a mentor who gave me great advice and also eventually introduced me to my graduate school advisor. Even though I have been in New York City for four years, I am still Co-Editor of the New Jersey Dietetic Association’s newsletter News & Views

(can’t let go of my Jersey roots!). I am a member of GNYDA’s PR committee and Secretary of Penn State’s Nutrition and Dietetics Alumni Society. I am also a member of Sports, Cardiovascular and Wellness Nutritionists (SCAN), FCP, Nutrition Entrepreneurs (NE), and Weight Managements (WM).

What other ways have you contributed to the profession?

I was a session speaker at FNCE 2005 on the topic of generational diversity in the workplace and have also presented and published research that I conducted as a graduate student on portion distortion, label reading, and portion size measurement aids. My most recent papers appeared in the April 2006 issue of Topics in Clinical Nutrition and the September 2006 issue of the Journal of the American Dietetic Association. I had great support from Ketchum and Rutgers in publicizing these papers and received national coverage in Elle, Today’s Dietitian, Men’s Health, and an Associated Press story.

Where do you see your career heading?

I have had an amazing two years at Ketchum and am looking forward to the challenges of my new role and future growth opportunities there. I want to continue having an active role in professional activities, especially in the area of mentoring dietetic students and new R.D.s as well as those looking to make a change into business and industry positions.

Do you have a typical workday?

I am definitely a morning person and start my day with either a run, spin class or yoga class. I get into the office around 8:45 a.m. Every day is completely different. But days usually involve planning meetings; client update calls; meetings with team members, partners, vendors, and clients; writing, editing, and delegating responsibilities; brainstorms; budgeting; reading up on the latest food and nutrition news. I aim to leave by 6:30 p.m. but that doesn’t always happen.

Is there a particular day that stands out?

We were working with a celebrity chef last winter and booked him on local morning shows across the country. He was running late from a segment he was filming in New York and missed his flight to Cincinnati. There were no other flights departing that night and we absolutely had to get him there in time for the live morning show. So we had to hire a private jet to take him there! It was 9 p.m. on a Friday night and we were able to locate a jet that had just delivered a heart to a hospital in Boston for a transplant patient. I don’t think anyone on the team slept that night until we confirmed that he boarded!

What changes do you predict in the dietetics field in the next few years?

There are growing opportunities for R.D.s working with supermarkets, both on the corporate level and in-store. This is exciting and such an important place for dietitians to be. However, it will be important to have metrics in place to measure the impact that the education we provide to consumers, store employees and buyers has on sales in order for this area of opportunity for R.D.s to continue to grow.

Where did you go to school and how did you get your start?

I received my B.S. in nutrition from Penn State and then completed the University of Medicine and Dentistry of New Jersey Dietetic internship. After working as a clinical dietitian for about a year, I began my master’s in nutritional sciences at Rutgers, where I was able to tailor my coursework and research projects to focus on communications. I started sending out résumés about five months before graduation to any nontraditional position that interested me. I received a response back from a professor at Albert Einstein College of Medicine that although the research coordinator position I applied for had been filled, she knew of another one at Atkins Nutritionals that would be a good fit for me. I got the job as a Technical Writer for the Health and Medical Information Services division and worked closely with the editorial, communications, and marketing departments. Working at a small organization, with all teams under one roof, gave me a good foundation to work at Kraft, a larger operation with many different departments and agency partners, and then at Ketchum, where I had a steep learning curve in the fast-paced world of public relations, but a very supportive team to help me through it.

What one piece of advice do you have for members?

If you are interested in a certain area of dietetics, there are seasoned professionals who are happy to give you advice and get you going on the right track. If you don’t know who to ask, find someone with a job that interests you and contact them. There is such great support from DPG members; join the groups that fit your niche. I am amazed at what a sisterhood (and brotherhood, too) our profession is and am always inspired by the talent, creativity and passion within our association.

How More Companies Are Embracing Social Responsibility as Good Business

admin — Thu, 03 Apr 2008 09:03:40 -0500

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In a March 2008 article from The Wall Street Journal Online, Ketchum Senior Counsel John Paluszek talks with the Journal Online about the rising importance of corporate social responsibility over the last few decades and the imperative it has become for today's companies.

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Click here to view "How More Companies Are Embracing Social Responsibility as Good Business."

CEO Efforts Key to Consumer Trust

admin — Fri, 29 Feb 2008 11:18:59 -0600

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In a January 2008 PRWeek article, Ketchum North American Corporate Practice Director John Weckenmann explains how the public's opinion of CEOs is driven by their performance with the environment, ethics and employees.

PR at the Crossroads: Survey Pinpoints Essential First Steps for New-Media Neophytes

admin — Fri, 29 Feb 2008 09:47:54 -0600

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Nicolas Scibetta, Global Director of Ketchum's Global Media Network, examines how communications professionals have not yet truly aligned themselves with the channels that consumers rely upon for their daily doses of information, in a January 2008 article from Bulldog Reporter’s Daily ‘Dog.

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By Nicholas Scibetta, Senior Vice President and Global Director, Global Media Network

Reprinted with permission from Bulldog Reporter's Daily 'Dog news Web site. Visit the site to subscribe to the daily service: www.bulldogreporter.com/dailydog.

PR professionals have been getting a bad rap lately by being accused of employing "spray and pray" tactics. As misguided pitches to media outlets are perceived as little more than "spam e-mail," the public relations industry finds itself at a crossroads. Specifically, embracing the Web as a way to dialogue with various audiences means more than simply reaching out to blogs, communicating via e-mail and claiming to have a presence on YouTube. Today’s PR professionals must look at reaching their audiences through a different, often fractured, lens.

From this new lens, a different audience appears — one that consists of a sea of individuals who seek to control the information they receive, and who have the power to do so in ways that communicators sometimes seem reluctant to fully embrace. Second to second, the day’s top stories change for each media consumer — news feeds and customizable searches allow everyone an opportunity to steer their media consumption via a personalized dashboard of information.

The time has come and gone to debate the power of the Web for communicators — acceptance and integration into communications plans is where we need to be. Yet while many claim to be doing this, a recent survey shows the exact opposite, revealing that communications professionals have yet to truly align themselves with the channels that consumers rely upon for their daily doses of information.

Media Myths & Realities: A Public of One, Ketchum and the USC Annenberg Strategic Public Relations Center’s 2007 media usage survey, examines the media habits of consumers in the U.S. and BRIC countries (Brazil, Russia, India and China), as well as communications professionals in the U.S. Looking at more than 40 media channels, the online study asked respondents not only about which channels they use on a day-to-day basis, but also which sources they turn to when making a host of personal decisions. While the research showed an increasingly fragmented use of these channels, word-of-mouth and search engines emerged as the most turned to sources.

So, where does this leave communicators? The continuous creation of new technologies and media channels is speeding up the pace of news gathering and dissemination, while at the same time presenting multiple challenges for communicators in their attempts to reach their target audiences. These media outlets provide infinite possibilities for consumers, offering them numerous channels to turn to for their daily doses of information. Given this media climate, consumers are experiencing personal empowerment like never before, enabling them to create their own media mix.

The Ketchum-USC Survey also showed that despite consumers’ claims that search engines, expert spokespeople and advice from friends and family serve as their primary information sources, communicators place much less emphasis on the implementation of specific word-of-mouth programs or search engine optimization strategies. The wake-up call is here and has been here for some time. By now, we all know that news must be customizable and that to reach our target audience we must optimize these tools.

Still, if you haven’t done anything yet to embrace these new tools, there are at least three basic things communicators should consider and strategically evaluate before implementing a communications program.

Search engine optimization (SEO): Quite simply, search rules. The survey revealed that across the board, in both the U.S. and BRIC countries, search engines ranked among the top four outlets the public is turning to. Despite the fact that the public is turning to search engines in droves, only 28% of communications professionals claim to have an SEO strategy in place. Organizations should consistently evaluate the strategic value of incorporating both paid and organic optimization strategies into their overall communications mix.
Really Simple Syndication (RSS): An easy way to distribute your news with potential for big payoff, RSS enables consumers to craft individualized news feeds and can be a strategic option for bringing content-specific news to the audiences who care most about it. The survey also found that communication professionals believe their corporate Web sites are the most effective sources in influencing consumer opinions about the image or reputation of their companies. This begs the question, is your content available via RSS?
Monitoring: With so many media choices, it’s inevitable that consumer media use will mirror this fragmentation. It’s important to remember that any one of these outlets could be a forum for others to discuss your brand or products. Conversations about your company’s brand, products, services, and so on are happening — whether you like it or not. The question that needs to be asked is, Is your company truly paying attention to what’s being said? Communicators should continuously evaluate their company’s and clients’ online and offline media-monitoring strategies.

There’s no turning back. But the future holds a lot of opportunity — if PR professionals choose to fully embrace it. For more on the survey, visit: www.ketchum.com/2007mediasurvey.

Nicholas Scibetta is Senior Vice President and Global Director of Ketchum’s Global Media Network. He can be reached at nicholas.scibetta@ketchum.com.

Words to the Wise

admin — Thu, 21 Feb 2008 15:23:04 -0600

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Ketchum Editor of Online Communications Joseph Priest reviews words that commonly confound business professionals, in an article from the January 2008 issue of PR Tactics, the monthly newsletter of the Public Relations Society of America.

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Becoming Culturally Fluent

admin — Thu, 21 Feb 2008 14:37:18 -0600

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In an article from the December 2007 issue of Communication World magazine, Ketchum Hong Kong Senior Vice President Geneviève Hilton explains how understanding cultural differences can enhance business and communication.

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Five Questions With Andy Roach

admin — Mon, 04 Feb 2008 17:29:20 -0600

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A profile of Ketchum Partner, Chief Information Officer and B2B Technology Practice Lead Andy Roach explores the synergy of his dual role as Ketchum CIO and Ketchum Technology Practice client leader, in a January 2008 issue of Information Systems Control Journal.

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Andy Roach has a dual role at Ketchum, an international public relations firm. He is the chief information officer (CIO) and group lead for the business-to-business (B2B) segment of Ketchum’s Technology Practice. As CIO, he is responsible for strategic direction and operations management for the agency. As senior counselor for Ketchum’s B2B group, he helps clients develop and execute impactful PR campaigns for the enterprise technology community. Prior to joining Ketchum, he held positions in marketing, technology development and project management at companies including Accenture and IBM.

Roach graduated from the University of California at Santa Cruz with a Bachelor of Arts in philosophy. He enjoys playing guitar and spending time with his wife and daughter. In 2007, he received the CIO of the Year Award from the Pittsburgh Technology Council in the enterprise category, and is a two-time recipient of CIO magazine’s 50/50 Award.

Question

You have a unique position as a CIO and PR executive. How do these roles complement each other?

Answer

I find that the two roles complement each other very well. In my CIO role, I’m responsible for ensuring that our technology investments align with Ketchum’s strategic goals. Because we are a professional services firm, these strategic goals are largely defined by the needs of our clients and the account teams that serve them. Having firsthand experience with our clients as a public relations executive means that I can see how our technology is impacting the business on a day-to-day basis. This kind of insight makes me a better CIO for Ketchum.

At the same time, in my public relations role, I’m responsible for developing and implementing communications programs for our technology clients. In many cases, our clients’ customers are CIOs or other technology executives, so I am both a strategic counselor and representative of their potential customers. These experiences give me direct insight into both sides of the marketing communications “mix,” which enhances the counsel I give to clients.

Question

How and why did you transition or incorporate your IT and marketing/PR backgrounds?

Answer

I have a deep passion for technology. From a very early age, computers and programming have played a role in my life. I used to develop computer games as a hobby during middle school. Later on, I used computers to do graphic design and build databases for various side jobs in high school and college. And, in order to stay productive in these pursuits, I learned how to upgrade and rebuild computers. As I developed in my technology career, I found I was able to provide support, programming and design to others to help them accomplish their goals, too. This included developing databases for marketing-communications and training departments at various companies early on in my career.

In the mid-1990s, I had a strong interest in multimedia and interactive technologies. The cross-section of design, interactivity and information fascinated me. This interest turned into a career in web development just as the dot-com era hit. Not surprisingly, most of the Web sites I built during those days were marketing-oriented. Along the way, I began to counsel clients on their online communications strategies as well.

So, I have always straddled the line between communications work and technology development. Six years ago, this culminated in becoming the chief information officer for a top global public relations agency—Ketchum. Ketchum has always been an innovative company in terms of the opportunities it gives its employees. About a year ago, I was approached with the idea of splitting my time between client work and my CIO duties. Of course, I jumped at the idea—engaging both the left and right sides of my brain on a daily basis is ideal for me, and I think that my experiences give me the skills necessary to do both jobs well.

Question

What advantages do you believe your communications background brings to your role as a CIO or vice versa?

Answer

As an IT practitioner, my number one goal is to make sure that the IT function is meeting the needs of our employees and clients. A significant component of the success of this mission lies in good communication. This means that we do everything in our power to ensure that our employees not only have the tools they need to provide great service to their clients, but also that they are aware of how to use them effectively and efficiently. Having a communications background, I can ensure the proper dissemination of information about technology to Ketchum employees and clients. For every IT implementation—whether it is a security initiative, a training initiative, or developing the case for a new product or service—communications is at the heart of its success. Much of the communication is two-way—it is essential to engage in a dialog with employees. In IT, we find we have to make difficult decisions from time to time; 99.9 percent of the time, employees and clients are willing to go along with our decisions as long as they understand the “why.” Having a good rapport with our constituents is an essential aspect to this mutual understanding.

Question

From your perspective as a CIO, what do you think are the biggest challenges facing CIOs today? Are these the same topics being discussed in the media?

Answer

If I were to abstract what I see as the biggest challenge CIOs face, it is one of ensuring IT stays relevant and valuable in a rapidly changing world. CIOs face a struggle between managing technology innovation and securing the technology foundation.

From always-evolving compliance requirements, to exponentially increasing storage and bandwidth needs, to constant security threats, we spend a lot of our time on the foundational aspects of IT. Ensuring that IT is a “well-run utility” is sometimes taken for granted, and yet it requires an increasing amount of work and creativity. We need to do all of these important things, and also find the time to innovate, to extract as much value as possible out of our technology investments.

In many ways, CIOs have always been at the forefront of innovation at companies. CIOs need to hold on to this important role we play, and I see that becoming more and more challenging. We are seeing a rising tide of consumer technologies coming from outside of IT that are being used to make employees more productive and do exciting new things, but they can sometimes come at the expense of security or other infrastructure considerations. The traditional cycle of standardizing and securing solutions and then leveraging those for business benefit is becoming shorter and shorter.

In order for CIOs to continue to stay relevant and valuable to our companies, we need to learn to marshal the many methods for solving these issues. Frameworks like Control Objectives for Information and related Technology (COBIT) and Val IT are important because they give CIOs a road map to follow to help solve some of the essential issues in IT. Other techniques, such as virtualization, outsourcing, Web

services, etc., also help us to do more with the resources we have at our disposal. And, sometimes, they require more resources, but they bring new benefits.

Managing the balance between innovation and foundation is the essential issue we face as CIOs today. And, I do believe this issue is being discussed in the media and among CIOs, if maybe not in these exact terms. The technology providers that can help CIOs meet these challenges for their business will be the most successful ones. But, in the end, it is up to CIOs to determine the right mix of solutions for their company and their industry.

Question

What has been your biggest workplace challenge and how did you face it?

Answer

The biggest workplace challenge I have had is directly related to the challenge that I believe CIOs face as described previously. I believe it is a growing trend for CIOs to start taking on more and more business-facing roles. With a foot in both sides of the business, I find myself receiving more feedback on my decisions than I ever thought I would. And the feedback comes from a wider variety of people than ever before. Sometimes this can be difficult to maneuver and may even cause me to second-guess decisions that I may have just moved forward on more aggressively in the past.

For instance, if I make a decision to standardize on a particular business application because I have to do that from a cost-efficiency or support standpoint, it is likely that I will hear about it from the employees whose lives I am changing. Most IT professionals are used to that kind of feedback and recognize that these issues are legitimate and should be addressed. However, since I am also on the businessfacing

side, I might work directly with these employees whose productivity may be impacted as a result of the change. This can put me in a Catch-22 situation, where the decision I have made to increase efficiency on one side might be directly impacting productivity on the other side. In this example, one would hope that the productivity hit would be short term, of course.

But even a short-term hit to productivity can affect the business adversely, and I am now more keenly aware of those issues in ways I have never been before. So, I have learned to measure every decision I make on whether it is the right thing for the overall business. Sometimes this requires discussions with my peers on the business side, sometimes it requires conducting pilot programs and, in almost every case, it requires a great deal of communication. I have learned that if I believe what I am doing is right and I have strong business reasons for my decisions that I can articulate to the affected people, then I can feel good about the decisions I make. I find that most people trust and accept that I am trying to make the best decisions for the company. However, I believe very strongly that I cannot take the trust that people have in me for granted—it is something that needs to be earned every day. And transparency is essential to that trust.

The Crisis Simulation: A Case of Mistaken Identity

admin — Mon, 28 Jan 2008 12:31:07 -0600

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James Donnelly, Ketchum Senior Vice President of Crisis Management, examines some misperceptions and pitfalls about the return on investment of crisis simulation exercises, in a January 2008 profile from Bulldog Reporter’s Daily ‘Dog.

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By James Donnelly, Senior Vice President, Crisis Management, Ketchum

Reprinted with permission from Bulldog Reporter's Daily 'Dog news Web site. Visit the site to subscribe to the daily service: www.bulldogreporter.com/dailydog.

Crisis simulations are misunderstood. Let’s set the record straight -- a simulation is not a panacea for improving an organization’s complete crisis management capability.

Certainly, simulations bring some benefits. A greater appreciation for reputation management is gained. Commitments to improve coordination among departments are made. Crisis plans get tweaked. And strategic insights are uncovered for prescribed scenarios. Good results, all.

However, without a broader learning and improvement program in place, these exercises soon become distant memories of an intense workshop . . . and nothing more. Crisis plans don’t always get updated with key learnings gleaned from a simulation. Sometimes, real crises emerge and echo the elements of the mock exercise -- and companies stumble through many of the same mistakes. Other times, a team tested through simulation becomes marginalized when a real crisis happens and top management suddenly takes control. (Unfortunately, we too often witness senior managers who sponsor and invest in simulations, but do not participate nor benefit from the exercise’s key learnings themselves.)

Thus, to truly improve the ability to manage crises, the company must focus on changing mindsets and building behaviors. Simulations are a part of this equation, but a gold-standard capability cannot be achieved solely through a “lightning in a bottle” exercise.

Therefore, some of the most overlooked opportunities in crisis management are choosing the right learning program to fit your needs. In order to improve the total ability to manage crises, you must consider the following elements when designing your learning program:

Goal-setting: pinpointing the areas for improvement
Programming for learning and improvement: orchestrating programs that improve capabilities

Goal-Setting

You need to know what’s broken before applying a fix. While simulations can help companies identify barriers to success, they can’t fix problems such as a lack of role clarity, organizational silos, or individual skill gaps among key crisis managers.

As general rule, if an organization is trying to identify gaps in its crisis-response capability, a simulation is probably the best bet. When the objective is to improve organizational or individual skills, a more holistic learning program should be considered. Refer to the following guidelines:

A simulation is good for the following:

Testing the effectiveness and usability of a crisis plan
Ensuring comprehension and familiarity with a new crisis plan
Gauging an organization’s information-sharing, leadership and response capabilities

A more complete learning program may be better for these:

Understanding the mindset of effective crisis managers
Improving the skills of individual crisis-management team members
Helping managers learn behaviors that contribute to success in managing crises
Equipping crisis managers to evaluate threats and make good decisions
Examining proven best practices
Enhancing teamwork
Promoting a more focused approach to specific types of situations

Programming for Learning and Improvement

Simulations need to be designed to achieve specific goals and therefore, they come in many shapes, sizes and flavors. Too many to enumerate here.

When focusing on broader learning programs, too many of us default to the standard seminar. And let’s face it -- there are plenty of seminars available on crisis management. Unfortunately, the participant is often left head-scratching over how to operationalize anecdotes about the 25-year-old Tylenol case.

Real on-the-job impact and a modification of attitudes, skills or behaviors can only come through learning and improvement programs that include three distinct phases:

Conditioning: It begins with an advanced assessment and individual reflection. Conditioning includes some prework that helps orient participants by stimulating some thinking on crisis management. This phase allows crisis managers to uncover strengths and weaknesses and “marinate” on a few provocative and challenging questions, to be best engaged in the learning to come. (Note: Simulations rarely include this conditioning phase. “Be ready for anything, brush up on your crisis plans and prepare to be challenged” is a common prelude to a simulation. This is probably the wrong approach for some organizations, especially those with inexperienced staff in crisis management. This approach may leave participants feeling overwhelmed, vulnerable and determined to avoid future real crisis-management situations.)

Active Learning: The phase during which experts teach and coach. Most current crisis-management learning programs provide basic tactical guidance (e.g., control the flow of information, verify facts, and communicate quickly and often). This is a mistake. Active learning should target the improvement of the mindsets and behaviors of crisis managers. This allows successful crisis managers to analyze specific situations, design strategies to respond, and lead teams in efficient implementation. This builds confidence and makes it easier for the participant to recall what’s necessary when a real crisis occurs. For this type of active learning, storytelling, realistic cases, visual examples and a lot of practice (including smaller real-world exercises) are all required to embed information in a participant’s long-term memory, where it could actually be recalled in a crisis.

Sustainment Program: A campaign to prolong learning and facilitate improvement. Just like a simulation is not a magic pill, a more robust learning intervention on its own isn’t enough. Even the best “training” alone won’t eradicate a skill deficiency and measurably improve performance. New behaviors must be coached and sustained long after the learning event has concluded. (Note: A sustainment plan should include regular content refreshers, regularly scheduled simulations to keep everyone sharp, and, importantly, consideration of other factors affecting the crisis team’s ability to perform.)

In summary, simulations have not shared the spotlight adequately with other forms of well-crafted learning programs, some of which provide better opportunities to improve a crisis-management capability. Organizations must choose the right types of learning solutions to achieve identified goals.

Ketchum and Stromberg Consulting have collaborated on the Executive Crisis Management Academy (ECMA) -- the most comprehensive program ever offered on the subject. For more information contact James Donnelly james.donnelly@ketchum.com.

Media Myths and Realities

admin — Tue, 15 Jan 2008 19:33:52 -0600

Short Description

Allison Slotnick, Project Coordinator for Corporate and Interactive Communications at Ketchum, breaks down some of the most important findings of the 2007 Ketchum and USC Media Myths & Realities: A Public of One media usage survey, in an article from the December 2007 magazine issue of the International Public Relations Association.

Full Story

By Allison Slotnick, Project Coordinator for Corporate and Interactive Communications, Ketchum

Reprinted with permission from the December 2007 issue of Frontline, the online magazine of the International Public Relations Association (IPRA).

Developments in technology and a growing reliance on online media have resulted in a shrinking world, one where geographic boundaries blur and a global community emerges. However, despite these unifying channels, the public is looking inward — relying not on the opinions of others via mediated outlets, but rather on their own experiences and customized needs.

The Media Myths & Realities: A Public of One 2007 media usage survey, a follow-up to last year’s benchmark study, Media Myths & Realities 2006 media usage survey, explores this trend in media usage and its implications for the public relations industry. Like last year, Ketchum partnered with the University of Southern California Annenberg Strategic Public Relations Center to assess media consumption habits among U.S. consumers and corporate communicators. This year’s survey further delved into international media usage beyond the U.S. by looking at four crucial emerging markets: Brazil, Russia, India and China (BRIC).

The expansion of the survey into these markets provides a benchmark for future research of these countries and how their media consumption is both similar and different from those of the U.S. In addition, the survey offers insights on several key areas related to media usage, including these:

Which media outlets consumers turn to for a variety of issues, including specific purchase decisions and business news
Which information sources employees depend upon for receiving information on their organization, and which venues corporate communicators view as being most effective to convey this news
Which factors go into making personal recommendations
Which media outlets are perceived to be most credible

Methodology

Conducted online from Sept. 30 to Oct. 5, 2007, the 2007 survey was taken by a sample of 1,000 adult Americans (general population) with an oversample to achieve 300 Hispanics and 200 influencers in the U.S. (Influencers are considered to be the 10-15% of the population who exercise influence and control the levers of change in society as defined by Roper.) In each of the four BRIC countries, the survey was taken by a sample of 300 general population adults and 200 influencers.

A separate questionnaire was distributed online from Sept. 30 to Oct. 5, 2007, to 500 communications and marketing industry professionals in the U.S. Each of these individuals is responsible for what his or her company communicates to external audiences and has five or more years of experience in the communications or marketing fields.

The Media Mix Evolves

The survey exposed a decline from last year in the perceived credibility of media sources by U.S. audiences. Among a list of more than 40 outlets, ranging from major network television news to local newspapers, blogs, social networking Web sites and expert spokespeople, credibility assessments were down across the board. On a scale of 0-10, with 10 indicating “extremely credible,” and 0 indicating “not credible at all,” major network television news dropped half a point from last year, down from 7.2 to 6.7, while blogs and even advice from family and friends both dropped a full point, from 5.2 to 4.2 and 7.3 to 6.3, respectively. Comparatively speaking, those in the BRIC countries found their media sources to be more credible than those in the U.S.

This drop in credibility is reflective of an overarching mood of skepticism across the nation. With so many outlets trying to claim a stake in providing news and information, consumers find themselves turning to multiple channels in an attempt to achieve balance and context. Ultimately, though, the power of personal experience and knowledge drives consumer choices.

Just as last year’s survey showed, PR professionals must continue to employ a media mix consisting of print, broadcast and online outlets, as well as rely on the human channel — word-of-mouth from family, friends, co-workers and industry experts — to convey clients’ messages. No single outlet dominates public usage and, increasingly, these channels are converging with one another as print and broadcast outlets have Web presences which provide opportunities for user input. With integrated usage of media channels on the rise, the unified public voice is now louder than ever, but each individual remains a separate and powerful entity within the larger media landscape.

The Power of Search

With the Internet providing a platform for a variety of information sources, including blogs, social networks and informational Web sites, consumers often find themselves overwhelmed with choices. To sort through these options and make sense of what’s personally important, users are by and large turning to search engines throughout the U.S. and BRIC countries, where search sites rank among the top five outlets used in all five markets by both the general public and influencers alike. In the U.S., 60% of the general public reported turning to a search engine in the last month, while in Brazil that number was at 85%.

Having the world at your fingertips through the Internet may sound appealing, but the dominance of search engines represents the ultimate tool for customization, a one-stop shop where users possess complete control of the search terms and results.

Emerging Media Habits in Emerging Markets

With the BRIC nations surfacing as significant economic markets for the future, companies are seeking out information regarding their media consumption. On the surface, BRIC media habits are similar to those in the U.S. in terms of their reliance on the media mix.

However, there are several key differences that corporate communicators must recognize when adapting their U.S. plans for use in these markets. For one, mobile technology serves as the primary gateway for those in the BRIC countries to enter the online space. Mobile media usage in the BRIC countries ranges from 20% in Russia to 30% in Brazil, while only 4% of those in the U.S. report using it. Additionally, while many U.S. consumers view the media in low regard, those in the BRIC nations hold the media in higher esteem, finding the outlets to be more credible. Thus, these BRIC consumers tend to accept information from media outlets at face value more so than their U.S. counterparts do.

The media landscape is constantly changing and it is important for communications professionals to consider the various channels that are available to them, especially those that the public actually deems as credible. Technology may be connecting the world, but individuals remain their own primary information sources and ultimate decision makers.

As the Internet has evolved to Web 2.0, so, too, must PR evolve to PR 2.0, where personal empowerment has completely reshaped how people get information and use it to shape attitudes and behaviors.

Allison Slotnick is a Project Coordinator for Corporate and Interactive Communications at Ketchum. Additional material was supplied by Dr. David Rockland, Partner and Managing Director, Ketchum, and Chairman, IPR Commission on PR Measurement and Evaluation.

When Issues “Go From Zero to 60” Overnight, CEO Involvement is Vital

admin — Tue, 15 Jan 2008 18:54:30 -0600

Short Description

In an article from the December 2007 issue of the Public Affairs Council's magazine, Impact, the Director of Ketchum's North American Issues & Crisis Management Network, Chris Nelson, illuminates the importance of a CEO-supported crisis-management plan in today's always-on media world.

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“In brick-and-mortar days, you could see a controversy coming 12 years out,” Chris Nelson, Senior Vice President and Director, North American Issues & Crisis Management Network at Ketchum, told the Council’s Art of Issues Management Seminar on Oct. 4 in Washington, D.C. “Today, an issue can go from zero to 60 overnight.”

The speed with which issues develop places new pressures on government relations professionals. To succeed, Nelson and other speakers agreed, requires at least two things.

A multidisciplinary team that calls on all departments, not just government relations. “Managing issues is not just a matter of communications,” said Kanina Blanchard, Director, Global Issues & Industry Affairs for Dow Chemical Company. “It requires contribution by and support from legal, from human resources, from operations — from many different functions within the company.”
CEO support. “High-level buy-in gives your efforts automatic respect and responsiveness not only within the company, but also elsewhere,” said David C. Brown, Vice President, Federal Affairs, Exelon Corporation. CEO support “is vital,” Nelson said. “It allows you to say, ‘This matters to the boss, and we’re going to do it.’”

The complexity of issues, meanwhile, is increasing. “Some issues, especially where biodiversity is concerned, simply aren’t going to be permanently settled,” Blanchard said. “A lot of issues will simply have to be managed for the long term, not put to rest.” This is true in part because organizations such as Earth First! and People for the Ethical Treatment of Animals “aren’t always looking for solutions,” according to Nelson. “Their goal is to keep issues alive.”

Interconnected Issues

But according to Council President Doug Pinkham, issues won’t be solved neatly for another reason. “Issues are interconnected in ways that haven’t always been the case,” Pinkham said. “Energy, environment, the economy and war are all tied together.”

Success will require companies to work closely with NGOs, which are now more trusted than businesses. “We’ll even work with NGOs that are critical of us on other issues,” Brown said.

If companies are open to new approaches, their chances of success will increase. “If handled properly,” Blanchard said, “even the worst possible issue can positively impact your reputation.”

Standing Firm: Ketchum's Kotcher Chairs Council in Decennial, Details New Partnerships

admin — Tue, 11 Dec 2007 15:43:21 -0600

Short Description

In a December 2007 profile from Bulldog Reporter’s Daily ‘Dog, Ray Kotcher, CEO of Ketchum and incoming 2008 Chair of the Council of Public Relations Firms, talks about his plans for the council and the challenges and opportunities for public relations in 2008.

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Reprinted with permission from Bulldog Reporter's Daily 'Dog news Web site. Visit the site to subscribe to the daily service: www.bulldogreporter.com/dailydog.

"I've been in this business for more than 25 years and have never enjoyed it more. I don't think there's ever been a better time in PR," says Ray Kotcher, CEO of Ketchum and newly appointed chair of the Council of Public Relations Firms, which turns 10 this coming year and whose mission is to advance the business of public relations firms by building the market and firms' value as strategic business partners.

"From a PR firm perspective, for example, we see that our members truly have that proverbial seat at the table now. They have a voice, stature and value that are really becoming appreciated on the marketing communications side of things. We're seeing PR and the things firms can do being taken just as seriously as advertising," adds Kotcher, who is also a member of the World Economic Forum and PR Seminar, and a trustee of the Arthur W. Page Society.

"On the corporate communications side, companies are taking long-term corporate-reputation-building programs much more seriously—they're looking to us to help build equity, trust and authenticity, and they're also turning to firms for increased crisis and issues work. This is only going to continue in the year ahead," believes Kotcher. "These things are good news for all of us because they really reflect the strategic value this industry brings to the game. These truly are high-level contributions. That's why I say these are extraordinary times for PR firms. It's also why I'm looking forward to a year of great strides forward for the council and its members."

Read on for details into how Kotcher and council leaders plan on turning those strides into leaps:

What have been some highlights and lowlights over the council's first 10 years?

There is actually an unusual symmetry in that the founding chair was David Drobis, and he was also the CEO of Ketchum. He had the visionary leadership to start an organization to represent the agency business at large. Ten years later, I'm honored and flattered that the leadership baton has been passed to me. I have a great sense of responsibility to keep it moving in a great direction. That said, it think it's been a terrific 10 years for the council.

Obviously, however, 2001 and 2002 were challenging economically for the PR agency business—and for all agencies in the marketing communications sector. The council was impacted during that time, as well, generally speaking. But we emerged in very strong financial shape. Similarly, agencies and firms also emerged on the other side as a strong sector overall. In fact, we're in better shape with a more solid foothold in the marketing mix and in terms of our relevance to corporate communications clients.

Along the way, in addition to meeting challenges like that, the council has become a stronger voice and advocate for the PR firm business. For example, there was a period in 2005 and 2006 when the whole PR industry came under incredible scrutiny related to ethics. The council took a leadership voice in that. At Ketchum, we have a highly sophisticated program for all employees being recertified in media relations—and it includes a focus on proper standards, procedures and ethical behaviors. We donated that to the council in 2005.

More than 40 firms have gone through that certification program since then—so more people in business are aware of the proper way to deal with media, handle business affairs in the most ethical way and so on. The council has over 100 member firms and 40 have taken this—so it's a big accomplishment. We're very proud of that, as well as the council's leadership stance in making sure members are practicing at the highest levels.

Similarly, we have produced all kinds of guidelines and best-practice benchmarks so members have a better idea of how to go about everything from writing and executing contracts to financial management, procurement and even things like how to secure group insurance discounts.

We have been there through good times and bad—and were very active in the 2005 to 2006 period when PR was being scrutinized very fully. We've also conducted regular, proprietary studies for members tied to benchmarking performance and so on. We also do regular monitoring on key issues that are likely to impact firm members and the business, and we provide marketing and communications materials for members that serve as templates for leadership. Another highlight worth mentioning has been our "Find a Firm" program, which really has driven business for members. So, overall, I think it's been a great 10-year time period for us and our members.

What key initiatives can we expect from you in the year ahead?

I have a very strong point of view on what we need to be doing as a council. So if there's one mark I'd like to make in the year ahead as chair, it would be to build the voice and understanding of the value of public relations firms. I want to reinforce that in the PR world, and I want to articulate it more broadly. That value is an important story outside of PR circles at a time when the communications landscape is changing so dramatically. The time we're entering represents an extraordinary opportunity for PR. The big question is how do we make sure our value is understood and appreciated more broadly?

What's the answer—how is the council planning to communicate that value?

For starters, we're planning a special purpose publication designed to do this. It will be a weekly newsletter on what's happening in the agency world. It will go to members, as well as noncouncil members, including many in corporate communications. We're very excited about this.

We're also going to focus on mobilizing staff at member firms in voicing firms' value. Basically, we're going to make sure that our activities are communicated not just to senior executives at member firms, but also through all tiers. We estimate that members collectively have 12,000 employees in the U.S. The PR business is a $4 billion-plus-a-year industry—and council firms represent most of that. So, we want to build channels that communicate more regularly with member firms, purchasers of PR services, and everybody across that spectrum—not just the top "decision makers." The weekly publication will help with this.

A third area under this key initiative of communicating value relates to the Arthur W. Page Society, with 80% of its members coming from the corporate communications side. I also serve on their board. They just completed a major project interviewing 31 CEOs on how they view the PR function currently and where they think it needs to go. The society took that research and did an in-depth research paper on the data, including analyzing the current communications environment in comparison to other areas like HR and even finance—basically analyzing how they evolved from staff functions to executive level departments or areas. Since this paper focused on corporate communications, the council has agreed to do companion research and pieces about where agency business needs to go to complement the corporate communications function. That's another example of articulating the value of PR firms to the outside market.

Yet another example includes working with the Association of National Advertisers, through Andy Cooper at member firm CooperKatz. The ANA is one of their clients, and it's also one of the premier trade organizations representing top marketing officers in companies. Through Andy, we have been able to negotiate with the ANA and put together a series of strategic alliances so we can make sure the council has multiple opportunities—like at their annual meeting—to highlight the contributions of our members and to demonstrate the value of what PR firms can do in the marketing mix overall.

A fifth example—and we don't have a name for this yet—is something we're thinking of calling the "Public Relations Index." We're basically going to take a look at major issues and moments in the media and national dialogue by working with strategic partner VMS—and we'll analyze how opinions around any news event, company, product or issue begins to move through the media ecosystem we have today. For example, we will be able to take a look at food safety. How did that issue move through the media ecosystem? How did it spread across national papers, local papers, network TV, and even blogs?

What will this index show—how will it contribute to your overall mission?

Depending on the issue or product, it will show different media driving discussions. We want to show that PR understands how the conversation is being driven—with the purpose of demonstrating to people outside PR how we can provide value not only in terms of understanding the conversation's dynamics—but also how we contribute to and help shape that conversation. This—and all these initiatives, really—are geared to driving that value home in the minds of the market.

What skills can agency execs and staffers strengthen to help drive that value perception?

I think something that is really important in PR firms is the ability to manage and lead well. It's not only a function of managing your staff or group, but also of managing the clients. So often we find people in the business who are superb writers, journalists or even new-media experts—but they haven't been developed in terms of how to lead and manage. That's a huge challenge for our business.

How can firms overcome that—what can be done to elevate leadership in PR?

At the council, we have a few programs that begin to attack this issue. For example, we have something called "PR Quick Start." It's an immersion for people who just joined the agency world. It's a self-directed tutorial you can register for online that helps you manage better, lead better and learn how to prepare for life in the agency world.

That said, I want to back up to the key skills question. Powerful, clear writing will always be of high value in PR. But we now also have to understand the language and tactics of the whole new-media area. To be successful in this business these days, you now also need to have visual understanding, audio understanding, graphic skills, technology skills and so on. All of these are the "new language" you must be fluent in—it's not just about words on the page anymore.

So another real challenge for firms beyond the leadership issue is finding and retaining good people who are expert in all of these exciting new areas. Where are the new sources of people we can look to? Well, maybe we should be looking at schools of fine arts—people like sculptors or even musicians, for example—and boosting them through immersion boot camps to understand the communications and PR agency world.

If we can do that—tap people who see and hear and think differently and put them into the flow—that is extremely exciting. I'd like to see the council take an active role in this and make it happen. I'd like to see a boot camp for people who may be career switchers. There is great opportunity there beyond the leadership training we're already doing.

What are you passionate about in your free time—how does it influence your work?
I am a media junkie. I really am. I believe having insatiable curiosity is fundamental to the PR business. Whether it's spending time clicking through a thousand cable stations or standing at a newsstand or going online in the middle of the night to read breaking headlines, blogs and wire stories. . . . It all comes down to curiosity and learning. That's what I love about this field. I'm an information seeker. Knowing what's going on in the world and synthesizing it into your work is a big part of what we do, and it's a big part of what makes us valuable to our clients.

Legacies from Legends in Public Relations

admin — Tue, 20 Nov 2007 10:45:52 -0600

Short Description

In a 2007 booklet commemorating the 40th anniversary of the founding of the Public Relations Student Society of America, Ketchum Midwest Director Ron Culp and Ketchum Senior Counsel John Paluszek are featured as two of 40 public relations "legends" whose observations of the past and predictions for the future of public relations are profiled. The booklet was produdced by the Plank Center for Leadership in Public Relations at the University of Alabama.

Engaging and Developing Is Key to the Challenge

admin — Thu, 25 Oct 2007 14:20:07 -0500

Short Description

In an article from the September/October 2007 issue of the journal Leadership in Action, Robert Burnside, Chief Learning Officer for Ketchum, and Robin Athey, Director of Organizational Performance for Deloitte Research, explore today’s diminishing talent pipeline and ways organizations can rethink their approaches to this challenge through eight employee-engagement methods.

Full Story

Robin Athey, Research Director, Deloitte Services

Robert Burnside, Partner and Chief Learning Officer, Ketchum

Copyright 2007 Leadership In Action, Volume 27, Number 4, September/October 2007. This material is used by permission of John Wiley & Sons Inc. For information on reprints of this article, please visit www.interscience.wiley.com.

Despite the fact that there are millions of unemployed people in the United States, there remains an acute shortage of talent that is transforming today’s business world. Top-level talent is scarce and becoming even more so because of two factors: the retirement of baby boomers and a growing skills gap.

The first members of the baby boom generation are hitting their early 60s, and over the next 15 years the proportion of the workforce made up of people 50 or older will snowball. What’s more, the nation’s education system is not keeping pace with the increasing complexity of business and technology. Only 70% of U.S. public high school students graduate on time, and only 32% leave high school qualified to attend a four-year college.

Consequently, companies that want to excel must be able not only to attract and retain talented employees but also to engage these workers as never before. Jobs that have become increasingly dynamic will require companies to train and develop employees simply to keep pace with change. At the same time, individuals need to be afforded greater flexibility in their career paths, and organizations need to reap greater flexibility from employees.

Companies traditionally have responded to tightening labor markets by launching recruitment bidding wars, but we challenge this thinking. Even the best recruitment tactics will not be enough to combat today’s talent challenge. High compensation packages and bonuses are easily matched by competitors. Instead, a more discerning response is required.

This article outlines the major factors precipitating today’s talent challenge, a few assumptions about effective ways to rethink approaches to that challenge, and methods companies can use to address today’s diminishing talent pipeline.

Supply and Demand

What is the talent challenge? Primarily, it is the rising demand for capable performers and the dwindling supply of such employees. The approximately 76 million baby boomers in the United States (those born between 1946 and 1964) are beginning to retire in great numbers. The 66 million U.S. members of Generation X (those born between 1965 and 1983) and even the 75 million U.S. members of Generation Y (those born between 1984 and 2002) will not be enough to fill the gap.

Paralleling this development is a lack of engagement in the education system among new-generation students. In many ways, the current high school system has not kept pace and is not teaching tomorrow’s workforce how to apply logic and problem solving in order to tackle the complex challenges of our fast-changing world. One result is that students are becoming disinterested in or are dropping out of high school, compounding the talent shortage. Consider these statistics: 70% of public high school students graduate on time, yet 85% of jobs require education beyond high school, 60% of new jobs in this century will require skills possessed by only 20% of the current workforce, and 79% of companies will see a significant shortage in the talent pipeline (40% of companies say this is already an acute problem).

A second reason for today’s talent challenge is employee churn and growing discontent. Satisfaction levels among all workers, regardless of age, income, or location, have been in decline for two decades. Less than half of American workers are satisfied with their jobs, down from 61% 20 years ago. And less than 39% of workers under the age of twenty-five are satisfied with their jobs.

A third reason for the talent challenge is the increasing complexity of today’s jobs. Globalization, technological advancement, and information overload complicate today’s work environment. With the reach provided by modern information technology, people are globally connected 24-7, receiving nonstop information and a barrage of cognitive demands. One study found that the average employee switches tasks every three minutes, is interrupted every two minutes, and has a maximum focus period of 12 minutes. This constant switching saps creativity, impedes decision making, and weakens performance.

With fewer bodies, growing job dissatisfaction, and increasing job complexity, there is a clear need for organizations and their leaders to engage people as never before in order to strengthen their capacity to attract and retain talented people.

In seeking approaches to engage today’s workforce, three assumptions can be made. One is that employees work for more than a paycheck. They seek jobs that challenge them to learn and grow. Employees offer their best when they feel they can make meaningful contributions toward a vision with purpose and backed by a clear strategy.

A second assumption is that new strategies are required to meet these employee desires. The traditional response to talent shortages has been to acquire and retain people—that is, to recruit them and keep them “in their seats.” Such strategies focus on metrics that are important to an organization. To truly engage people, however, talent strategies must focus on what matters most to employees—their development—in ways that promote learning and growth, their deployment into roles they care about, and their connection to the people and things that help them do their best work. Not surprisingly, organizations that create experiences that spark people’s fullest capabilities attract and retain—and create—the best talent.

A third assumption is that learning must be knitted into the fabric of work. Such learning will include both formal interventions (classroom programs, online courses, and executive coaching) and workplace learning (mentoring, expert networks, and collaborative spaces).

Eight Approaches

How, then, can organizations start meeting the growing talent challenge, short of radically restructuring their business career-track models? As a starting point, here are eight practical approaches that companies can employ right away.

Be strategic about bringing on new employees. A new employee’s first experience shouldn’t be about orientation courses and human resource manuals. It should be about connections. It takes about six months to socialize new hires. Leaders can accelerate the process and foster loyalty by connecting new hires with experienced “buddies” and mentors. The tacit knowledge that emerges from these interactions can convey values in much more compelling ways than bullet points or mission statements can. It is also useful to encourage recruits to observe and ask questions about policy and processes, rather than jump into the old ways of doing things.

Match people to roles that suit their strengths and capabilities. Each individual is capable of doing many things, but people are more likely to put forth their best efforts in roles they love performing rather than in roles where they are asked to perform only the things they’re skilled in. To help them realize these best efforts, many leading organizations provide internal support centers and coaching to help employees navigate their careers. These companies also give employees the flexibility to try out different roles in order to find their niche. This is an ongoing process that benefits both employees and companies: as people’s capabilities and interests shift during their careers, companies’ needs also shift.

Encourage productive conversations. Conversations shape relationships, and relationships are the number-one reason why people stay or go. Moreover, work gets done through conversations, and conversations are the primary source of learning. More than 70% of what people know comes through informal interactions with others. Consequently, leaders at all levels must look closely at opportunities for conversations—both theirs and others’—in situations such as meetings, day-to-day interactions, and performance reviews. Many organizations benefit by becoming more intentional about conversations—for instance, encouraging ongoing performance dialogues instead of highly stressful annual or semiannual reviews. Some organizations encourage peer assists by bringing together seasoned practitioners and less-experienced team members in one- or two-day knowledge-sharing sessions. Such interactions build morale in junior employees because the opportunity to work with senior colleagues is a form of recognition.

Explore existing and emerging collaborative tools and approaches. A number of new technologies and methods have been developed to make communication and collaboration more efficient. One focus is e-mail. Because roughly 60% of e-mail is spam and only 8% is truly important, establishing best practices for e-mail can significantly improve efficiency. New online media also can be powerful tools when used responsibly. Blogs are opening a new level of knowledge sharing and dialogue, and wikis—Web sites that allow users to add and edit content collectively—are enabling co-workers to collaborate in real time. However, the focus here must always be on the quality of the collaboration, not just on the tools that enable the collaboration.

Cultivate strategic communities. Communities have always existed in organizations, but now technology allows people to connect in new ways that promote learning and innovation. Companies can provide forums where employees can exchange ideas and work through issues of complexity and change. These communities also serve as magnets for commitment. Employees considering departing a company may think twice about leaving colleagues who have shared interests and experiences. Communities have the potential to foster an esprit de corps and a mindset of innovative thinking that teams operating in traditional hierarchies cannot easily achieve.

Stimulate networks of high-quality relationships. Informal social networks also engage employees in ways that promote learning and growth. One approach begins with social-network analysis—a map of relationships that provides an X-ray of the way projects are completed. Once they understand the ways that people connect, collaborate, and share knowledge, managers can create conditions that lead to optimal individual and organizational performance.

Design physical workspaces to foster connections. Workplace designs that offer dedicated spaces for formal collaboration, quiet places to concentrate, and informal areas to relax and brainstorm are critical for effective communication and collaboration. When workers are more than 30 yards apart, interaction falls off precipitously. The design of a space should reflect intent. When collaboration is important, open workspaces can be more effective than closed ones because conversations spill over and informal networking occurs that might not otherwise.

Build an organizational cushion of time and space. As the pace of business speeds up and decisions become more complex, employees need time and space to learn, reflect, and produce work with tangible results. What are leading organizations doing? Some allow workers to pursue professional projects of personal interest. Others offer employees the flexibility to choose work locations and methods that match their natural rhythms. No matter the approach, leaders must act as role models for the practices they advocate and be mindful of the messages they send. Leaders who glorify emergencies and view long hours as noble and heroic can trigger stress and family conflicts that hurt performance.

Look Within

In coming years, most companies will have to rethink their talent strategies. In addition to addressing shifting demographics, improving the performance of critical employees directly improves organizational performance. Organizations should look within for the critical skills required to execute the company’s most important jobs. By developing, deploying, and connecting these people the right way, leaders can raise individuals’ performances—and the performance of the entire organization.

Robin Athey is Director of Organizational Performance at Deloitte Research, part of Deloitte Services LP. She holds an M.A. degree from Columbia University. Robert Burnside is a Partner and Chief Learning Officer at Ketchum Inc., a global public relations firm. He holds an M.B.A. degree from Duke University.