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Public EngagEmEnt
in thE convErsation agE
CONTENT
Don’t Lose the Thought                        3
Foreword

Confidence and Trust                          4
The Currency for Recovery

Trust Me, I’m a Banker                        5
The State of Financial Services

The Fall and Rise of the C Word               6
The Future of PR

Citizen Smith                                 8
The Rise of Consumer Politics

A Cloudy Future                               9
Cloud Computing and the Future of Technology

Re-Humanising Business
Next Generation Digital Communications
                                             10
                                                   ABOuT
                                                   EDELMAN
Crowd Surfing                                12
Thriving in the Age of Consumer Empowerment

Thinking Our Way Out of the Crunch           14
Could the Creative Industries Hold the Solution?   Edelman is the world’s largest independently-
                                                   owned PR agency, employing over 3,200
Think Bravery Before Budgets                 15    people in 54 offices around the world – 260
Creativity and Brand Bravery
                                                   of whom are in London. We work across
Engaging with Health Citizens                16    all areas of the Communications spectrum,
Health in the Conversation Age                     delivering award-winning campaigns in
                                                   media old and new.
Medical Communications in
the Conversation Age                         18    We are retained by some of the world’s
Where Next with Health Care Professionals?
                                                   largest multi-national companies and leading
Alive and Kicking                            19    brands, some of which are mentioned in this
Trust and the Beating Heart of Media               publication – including, but not exclusively
                                                   the Department for Culture, Media and
Without Content There is No Conversation 20        Sport; Microsoft; AstraZeneca.
Content, Conversation and Collaboration

Soft Power to the People                     22    For more information about Edelman,
Into 2009 and Beyond                               please visit:
                                                   www.edelman.com / www.edelman.co.uk
Coming soon...                               23    www.goodpurposecommunity.com
Trust Barometer 2009                               www.edelman.co.uk/trustbarometer



page 2                                                                                     Public Engagement in the Conversation Age
Don’t
losE thE
thought
We live in remarkable times. We have            and the unexpected emergence of a
reached a crossroads in our economic            new fashion for regulation; the rise of
history and stand at the threshold of           Consumer Politics and a parallel, global
potentially momentous change in the             resurgence of interest in politics, per se;
global political landscape. Trust in Business   an Olympic Games that was mired first in
and Government (of which Edelman                controversy and then in tragedy – with
has been an avid student for the best           human rights and human triumphs as
part of a decade) has oscillated with           occasional, if odd, bedfellows; more talk
random fury, while the inexorable march         about The Cloud of Technology and all
towards universal Digital Democracy and         that it will bring; and, finally, a growing
empowerment continues apace.                    understanding of what it really means
                                                (and needs) to be Green – only to see
Communications has reached a tipping            this threatened by those who will use the
point. Increasingly confronted by calls for     economy to escape their environmental
an Economics of Less, we are witnessing a       responsibilities.
noticeable shift away from ‘consumption’
and towards active citizenship and good         This series of essays, each written by a
purpose instead. PR now finds itself in an      senior member of the Edelman team, sets
accelerated state of evolution – moving         out to capture what our Communications
towards a hyper-connected model of              world looks like today and what it might
Public Engagement that converges and            look like tomorrow. These are not essays
transcends all existing marketing and           on the theme of Recession – yet they are
communications disciplines.                     each, in their own way, contextualised by
                                                today’s harsher economic reality. They are
Too many organisations retreat                  designed to provoke thought, stimulate
and retrench in recessionary times.             debate and provide content. They sit within
Entrepreneurial spirit and thought              the exciting and compelling framework
leadership are often sadly and falsely          of multi-lateral, multi-stakeholder
sacrificed on the altar of commercial           engagement. They speak directly to The
imperative. Our contention is that Thinking     Conversation Economy. They hopefully
costs nothing and yet remains a key             illustrate that PR can – and should – be at
point of competitive advantage for firms,       the vanguard of change.
whether they are selling ‘stuff’ or stories.
None of us can afford to lose the Thought
if we take our businesses (and those of our                                 December 2008
customers and clients) seriously.
                                                                              Robert Phillips
2008 has been a year in which we have                                       UK CEO Edelman
seen the collapse of free market models                       robert.phillips@edelman.com



                                                                                                page 3
Who could have imagined the changes that        political observers got to hear endlessly
have turned the financial markets and the       about “ordinary people”, “working families”
banking world upside down? Every day has        and even “Joe the Plumber”, who became the
seemed to have been yet another voyage          uS equivalent of the ‘Man on the Clapham
into the unknown as great names crash,          Omnibus’.
burn or start pleading for bail-out support.
Freddie Mac, Bank of America, Fannie Mae,       Strip away the drama and the frightening
Northern Rock, Ford, and General Motors         speed of change of the last few months
– the list goes on and on.                      and then it can be seen that this global
                                                crisis has always been about confidence and
Ever since the spectacular crash of Lehman      trust.
Brothers in September and against the
looming clouds of recession, all eyes have      As was seen in the aftermath of the 9/11
been turned upon national banks and             attacks, these essential ingredients of business
regulators, governments and political leaders   are fragile and vulnerable to the damaging
as investors, shareholders, house owners        and corrosive effects of negative rumour
and consumers sought leadership and             and doomsday forecasting, compounded in
reassurance. But that comfort was slow in       today’s crisis since trust is key to financial
coming, if at all.                              markets. Over recent months, political
                                                leaders have been perceived to be stumbling
The first, knee jerk reaction of presidents,    and defensive in their responses. In a brief
                                                                                                    Mike Seymour is International
prime ministers and their banking leaders       moment of optimism, commentators claimed
                                                                                                    Director, Crisis & Issues Management,
was to claim that their national strategies     that history might take the view that, like
                                                                                                    for Edelman worldwide and has
and budget plans had equipped their             New York Mayor Rudi Giuliani after 9/11,
                                                                                                    extensive experience working alongside
economies to withstand any recessionary         Henry Paulson would be seen to have seized
                                                                                                    multinational commercial and
shocks that might arrive. In a single day,      the moment with his multi-billion lifeline
                                                                                                    government organisations, involved in
we heard the same message from President        to financial institutions. But that hope
                                                                                                    complex international issues, crises and
Bush, Prime Minister Gordon Brown and the       quickly oozed away as the scramble began in
                                                                                                    emergencies.
Spanish Government: “We want to reaffirm        Congress to claim back favours, brokered for
the strength of our economy to overcome         votes in various pork barrel deals.                 mike.seymour@edelman.com
the current situation”.
                                                                                                   of these problems were beyond the scope


ConfidenCe and TrusT
                                                                                                   of normal regulatory or political experience,
                                                                                                   which in part explained the silence or
                                                                                                   shallow responses that were quickly
– the currency for recovery                                                                        perceived as defensive and hollow.

                                                                                                   In any times of national or financial
Against these cataclysmic changes, it is too    While the scale of the credit crunch and the
                                                                                                   uncertainty, leadership is demanded to
easy to claim now that governments acted        banking freeze may be unprecedented, many
                                                                                                   reassure the general public that matters
too slowly or stayed silent for far too long.   of the contributory factors are commonplace
                                                                                                   are being brought under control and being
But it is difficult to see how they should or   in daily emergencies. When any crisis
                                                                                                   managed. When problems escalate to crisis
could have acted and communicated as they       breaks, the first victims are always the truth
                                                                                                   levels, such leaders need to demonstrate
struggled to comprehend the scale of the        and facts. No-one can be sure what has
                                                                                                   confidence through bold statements,
changes.                                        happened or the root causes.
                                                                                                   backed up by far sighted and robust plans
                                                                                                   that can withstand the escalating chaos of
A defining moment was thought to come           In our world of 24/7 news and constant
                                                                                                   threatening events.
when uS Treasury Secretary, Henry Paulson,      online chatter, information is quickly
triggered a series of stock market roller       shot around the world. There is never
                                                                                                   Now international bankers, the G8 and G20
coaster rides in announcing plans to set        any shortage of commentators, critics
                                                                                                   have met and deliberated. International
aside uS$700 billion to purchase the “toxic”    and ‘experts’ that will be quick to offer
                                                                                                   plans have been debated and agreed,
derivative instruments. The uS Congress         their opinions or ideas. But in responding
                                                                                                   which promise survival of a recession that
demonstrated their politic priorities as they   to recent events, even economists of
                                                                                                   has arrived and is daily biting deeper. In
haggled over the initial Bill and the debate    international standing have declared
                                                                                                   the uK, the government has announced
descended into a battle between saving Wall     themselves to be bewildered by the speed
                                                                                                   a series of radical measures. Time will
Street and Main Street.                         and extent of the course of events. In this
                                                                                                   tell whether the impact of this array of
                                                global crisis, confidence has been further
                                                                                                   unprecedented measures will survive to
As all these critical steps were being taken    undermined by the dissonance and lack of
                                                                                                   provide the injection of confidence which
in an attempt to wrest back some kind           consensus within the forest of theories.
                                                                                                   must underpin any slowdown in the progress
of control over the crisis in the financial
                                                                                                   of the current crisis. But true change and
markets and the freeze-up of banking credit,    When financial, banking and mortgage
                                                                                                   sustained recovery will only be possible once
the Presidential Election race played out       markets came under pressure as the credit
                                                                                                   confidence and trust start to return.
- at times almost as a side show beside         crunch took hold, the resulting effects had
the main drama. Suddenly, against these         potential impact for every stockholder, house
extraordinary circumstances, electors and       owner, saver and consumer. The magnitude


   page 4                                                                                          Public Engagement in the Conversation Age
TrusT me, i’m a banker
                                                                                                    innovative financial industries. Once again,
                                                                                                    negative perceptions lead reality.

– the state of Financial services                                                                   Set alongside the Banking sector and the
                                                                                                    Hedge Fund industry, the insurers have - with
No industry has felt the cold blast of the       This collapse in Trust has coincided with          the very notable exception of AIG in the uS
credit crunch more than the Financial            – indeed perhaps even been caused and/or           - largely managed to avoid the most visible
Services sector. Whilst the turmoil and          exacerbated by – the new Digital Democracy         impact, and consequently the high profile
upheaval in the global Banking system has        we reference elsewhere. With the internet          fallout, of the Credit Crunch. The impact of
dominated recent newspaper headlines,            placing power in the hands of the Citizen as       the collapse in equities will undoubtedly feed
the industry in general is experiencing a        never before, this is the first recession of the   through into the pensions sector but, again,
collective collapse in Trust and confidence      true Digital Age. The challenge the industry       to date this industry has managed to remain
which has also affected Insurance                now faces is to overcome the current               largely - though not exclusively - on the
companies, Asset Managers and Hedge Funds        negative perceptions and re-build Trust.           periphery of the debate.
in equal measure. Having gradually reduced
to no more than a ‘hygiene factor’, suddenly     The first lesson that needs to be heeded is        The Financial Services industry finds itself at
Trust is once again a commodity to be            that life, as we have always known it for the      a key point in its continuing development.
cherished, protected and preserved.              banks, has changed forever. So far as the          There is little doubt that the next twelve
                                                 media is concerned, every pound the banks          months are going to present major
To some extent the ‘sudden’ collapse of          spend comes out of ‘our’ pockets – in the          challenges to Communicators in the sector
Trust in the Banking system - and indeed         current climate the normal rules of Business       but this is not the time to adopt a bunker
in our established Financial Institutions        no longer apply and the banks’ usual licence       mentality. It is clear that stakeholders will
generally – has been long coming. For the        to operate has, effectively, been suspended.       be asking searching questions of our banks,
last decade, Edelman’s Trust Barometer has       Events which were fully justifiable in the past    Insurers and those that manage the wealth
tracked the growth in credibility of peer-to-    (and can arguably still be justified now) have     of the nation.
peer Communications at the expense of the        to be considered in the light of a new reality
top-down, CEO-led programme and, what we         – that ‘our’ money is paying for them.             The organisations that emerge strongest from
see today, is merely a practical application                                                        the economic downturn will be those that
of that trend. What is beyond dispute is         HBoS saw this principle in action in early         are most able to reach out to, and empathise
that Trust in the Banking industry has all but   November when it was fiercely criticised           with, the man or woman in the street. They
melted away – not just amongst Consumers         in the media for hosting two staff events.         will recognise the role of the internet and
but most damagingly (and most tellingly)         The reality is that the banks do still need        social media and adapt their Communications
within the market itself.                        to motivate and reward their staff. But            strategies to address these channels effectively.
                                                 the perception of massed ranks of bankers          And they will embrace the changing nature of
                                                 indulging in lavish celebrations as we head        Communications and take advantage of the
 Paul Lockstone, Managing Director,              into a recession, and as the taxpayer digs         collapse in traditional hierarchies.
 has extensive experience in                     deep to bail them out, is one that the banks
 financial communications, both in               have to take great care not to foster.
 agency and in-house. He is also a                                                                  The restoration of Trust between Financial
 frustrated rock star. His blog –                                                                   Institutions and their customers is not
                                                 What of the rest of the Financial Services         something that can be achieved overnight.
 www.worldshutyourmouth.com – is an              industry? Sitting next to the banks on
 attempt to combine his professional                                                                Management must be prepared to invest not
                                                 the naughty step, and finding itself cast          only financially but in particular in devoting
 and personal life and interests.                in the unwelcome role of chief scapegoat           time to repairing relationships. It is well known
 paul.lockstone@edelman.com                      for the collapse of the Financial world as         that ‘nature abhors a vacuum’ and, in the
                                                 we previously knew it, is the Hedge Fund           absence of any engagement from the industry
                                                 industry. Now most informed observers              or individual firms, our new breed of Citizen
                                                 recognise that Hedge Funds play an                 Consumers will draw their own conclusions.
                                                 important role in the Financial Markets.
                                                 Furthermore, the leading participants in the
                                                 industry are some of the uK’s most active           Further reading
                                                 philanthropists, contributing substantial           • Peston’s Picks: the blog of Robert
                                                 sums to charities in both the uK and globally.         Peston, the BBC’s business editor
                                                                                                        (http://www.bbc.co.uk/blogs/
                                                 But with a few notable exceptions, the                 thereporters/robertpeston/)
                                                 industry has on the whole been poor at              • The Bank of England Financial Stability
                                                 engaging with a wider group of external                Review, October 2008 (http://www.
                                                 stakeholders. This has allowed prejudice to            bankofengland.co.uk/publications/
                                                 become accepted fact, with the result that             fsr/2008/index.htm)
                                                 the industry now finds itself short of friends      • FT.com and WSJ.com: the websites
                                                 when they are most needed. There is a clear            of the world’s two leading business
                                                 risk of an excessive regulatory response to            newspapers
                                                 recent issues, borne of the ’something must
                                                 be done’ school of policymaking, that could
                                                 curtail the activities of one of our most



                                                                                                                                         page 5
The future of PR belongs to the Citizen.
             The Consumer Age, as we know it, is
             coming to an end. Corporate Reputation
             and Brand Marketing are converging. In
             tomorrow’s world, constructive dialogue,
             engagement and a new tripartite
             contract between Citizens, Businesses
             and Government will shape and drive the
             Communications agenda.

             Radical Re-alignment:
             Endings and Beginnings
             There is a free radical somewhere deep
             within me that believes that we are facing
             the end of Consumerism as we know it. The
             global financial meltdown has served as a
             timely reminder that the death of Capitalism
             may be upon us also. If this was hitherto a
             personal, utopian fantasy, then it was equally
             surprising to find Newsnight and others
             leading on the very same subject. There are
             real lessons to be learned from recent events:
             consider the inconsistencies and the lack of
             responsible regulation in the Financial sector
             over the past decade – and think through the
             implications this may have if Governments
             and Citizens fail to actively intervene on an
             environmental level, to properly safeguard
             our planetary future.

             The Free Radical believes that tomorrow’s
             world is being shaped around Digital
             Democracy and the Citizen power that this
             brings; around the Wellbeing Imperative,
             and our thirst for a happier way of being;
             and around the Perfect Storm surrounding
             Climate Change – the acceptance that we
             cannot continue to over-consume the finite
             resources of the planet. Tomorrow’s world
             may yet prove that the Consumer – the one
             we all grew up to know and understand
             – was nothing more than a Twentieth
             Century blip, a bit like Marxism. Citizenship is
             more enduring.




         THE FALL AND
             You do not need to be an apocalyptic Green
             to recognise a changing world. We are all
             now learning to live within the necessary
             confines of a lower consumption, lower
             carbon economy – whether this is currently
             driven by heightened responsibility or
             by economic need. We have witnessed,
             first-hand, the rise of Consumer Politics
             – impacting which brands we buy and how
             we buy them; in parallel, we have seen the



page 6         Public Engagement in the Conversation Age
emergence of single-issue consumerist                 Third, Corporate Reputation must now be
 movements and campaigns whose aims are                properly understood within the context of
 to encourage (Government) action to address           active citizenship and Consumer Politics.
 perceived business bad practice. Nowhere is           Old hierarchies have been denuded and
 this more evident than in the ‘hot’ issue areas       demolished; pyramids of authority have
 of food, packaging, waste, fuel, energy and           collapsed and have been replaced by a
 transport. Consumer Politics is now a very real       new sphere of cross-information, in which
 consideration in any piece of communication.          everyone has a say – regardless of age or
 Businesses and brands are no longer in                status, gender or experience. Just ask the
 control. Fuelled by the immediacy and                 Road Petitioners.
 transparency of the web, power has passed
 to the people. Citizens hold businesses’              Fourth, everyone means everyone. NGOs,
 license to operate at their fingertips.               Governments, Businesses, Brands, Employees
                                                       and, yes, the Citizenship can now have
 The Client Community is embracing this shift.         an equal say. A new system of checks and
 While we are not yet seeing comprehensive             balances is now in place – together with
 ‘Citizen Briefs’, the number of pure consumer         a new accountability that will clearly limit
 plays seems to be on the wane. There is an            some of the more unpleasant excesses and
 increasing acknowledgment that consumer               poor practices of the past.
 brands need the added protection of Public
 Affairs or Corporate counsel (and often in            Fifth, we are learning to live with this
                                                                                                                  Robert Phillips is the UK CEO of
 a global context). Brand marketers can no             new equality; this new equilibrium. This is
                                                                                                              Edelman and the co-author of a new
 longer just sell – let alone spin – without           the Tripartite Contract referenced above.
                                                                                                                 Wiki Book, which can be found at
 a true appreciation of the impact this may            Within this, constructive dialogue – real
                                                                                                                      www.citizenrenaissance.com
 have on their company’s license to operate.           engagement – will prevail. And PR agencies
 Likewise, major corporations are finding the          – appreciating the Government agenda as                       robert.phillips@edelman.com
 brand link and working the same thinking in           well as the business agenda, the needs of
 reverse. Never before have Brand Marketing            the NGOs as well as the demands of Citizen         has always aspired towards and promised.
 and Corporate Reputation been closer                  Consumers, are uniquely placed to deliver.         We will have only ourselves to blame if we
 bedfellows. The implications for agency                                                                  cannot now make this final step. We need
 structures and client org. charts are self-evident.   Seeking Primacy.                                   a culture shift of our own to match the
                                                       Opportunities and Challenges                       societal shift that has, accidentally perhaps,
 Towards Public Engagement                             Our time has finally come. PR can now              thrust us forwards. If we can be held to
 A new Communications model is emerging                claim a legitimate primacy among all the           account for some of the excesses and the
 – one that we, as Edelman, are broadly                marketing disciplines – properly understood        darkness of the past, then we can now be
 calling Public Engagement. To understand              within the context of the Tripartite               architects of a better future.
 the model, we need to accept five Truths:             Contract and the concept of genuine Public
                                                       Engagement. Conventional advertising,
 First, we should recognise that the                   already constrained by its inability to escape      Further reading
 Consumer as we knew him or her is dead. To            from a world of monologue and the 30                • Britain Since 1928: The Strange Career
 paraphrase Python, he is no longer; he has            second spot, may well have its long-term               of British Democracy, David Marquand
 ceased to be. The hard sell of consumerism            decline accelerated, as it recognises that it is    • Bring Home the Revolution, Jonathan
 just won’t cut it, in a more responsible,             fundamentally ill-equipped to cope with the            Freedland
 more thoughtful, more constrained world of            wider communications demands of Public              • www.citizenreanaissance.com
 limited resource and lower spend.                     Engagement.                                         • www.crowdsurfing.net
                                                                                                           • www.goodpurposecommunity.com




D RISE OF THE C WORD                                                                                                        – The Future of PR
 Second, the Citizen is emergent, if not               And yet, the challenge facing PR is equally
 resurgent. We are all re-discovering the              great. Agencies and practitioners need to
 Citizen in ourselves – recognising our real           elevate strategy and strategic thinking.
 authority and our personal ability and                Insight must be properly understood
 responsibility to effect change; to hold              and always quantified. Spin needs to be
 businesses and brands, Governments and                denounced and the shallow world of
 institutions, to account. We are driving a new        celebrity rebuffed. A higher standard of
 democracy at breakneck speed.                         ethics is needed, backed by more rigour,
                                                       more discipline, more content expertise. PR
                                                       stands at the threshold of achieving what it



                                                                                                                                             page 7
Over the past 20 years, the climate in            waged against it on the infant formula
which business operates has changed               issue – a campaign that celebrates its
fundamentally and nowhere more so than            20th Anniversary this year – to show how
in the uK. It is a change that has seen some      a small but committed media-savvy and
of the world’s most successful companies          technology-literate consumerist campaign
brought to heel by a single front page article    can make such an impact.
that criticises supposed corporate bad
practice, or being named and shamed by a          Political parties and the media have not
media savvy NGO, or being mentioned in            taken long to understand the power and
Parliament by an ambitious MP out to make         influence of these groups and the issues they
their name.                                       highlight.

The changing climate has its roots in the         For the media, they provide endless copy
demise of traditional political discourse         to fill the ever expanding appetite for
and the rise of what we have termed               content. Harnessing and supporting certain
‘Consumer Politics’ – where business and          campaigns gives individual papers and
brands are placed centre-stage, facing            broadcasters the opportunity to define
increased scrutiny and an ever-greater            themselves in an increasingly crowded media
burden of customer, stakeholder and media         market by championing their readers’/
expectation.                                      viewers’ perceived concerns.

Consumer Politics has risen as the old Left-      For political parties, the rise of Consumer        Alex Bigg is Managing Director and
versus-Right political ideological battles of     Politics is a way of engaging a disengaged         leads Edelman’s award winning Public
the 60’s, 70’s and 80’s have given way to a       electorate and reaching out to key electoral       Affairs practice
new consensus over the parameters of the          groups. One only needs to re-read (if              alex.bigg@edelman.com
political debate and the fight for the precious   anybody bothered in the first place) all
centre ground - in which today’s political        three political parties’ 2005 General Election
                                                                                                    The rise of Consumer Politics means that
parties fight to prove their managerial           Manifestos to understand and witness the
                                                                                                    business and brands now live by a new set of
competence to run the country, and the            rise of Consumer Politics and their electoral
                                                                                                    rules, created by a new generation of closely
economy, slightly better than the other lot.      importance.
                                                                                                    inter-connected stakeholders, consumers
                                                                                                    and influencers, who have been energised




citizEn smith
                                                                                                    and incentivised by the accessibility and
                                                                                                    immediacy of the web.

                                                                                                    It is a set of rules that demands
                                                                                                    accountability and a meaningful and
                                                                                                    transparent conversation. Businesses ignore
– the rise of consumer Politics                                                                     these rules at their peril.

                                                                                                    Today’s Communications and consumer
                                                                                                    landscape means that a business has to be
Consumer Politics is the rise of consumerist      Other recent examples include Tony Blair’s
                                                                                                    seen and heard for sure – but must, more
movements and campaigns whose aims                Big Conversation initiative, which was an
                                                                                                    importantly, be seen to listen, to learn and
are to encourage Government action                attempt to identify and respond to such
                                                                                                    to act.
– which is usually code for new or increased      consumerist concerns, or David Cameron’s
regulation – to address what they perceive        social action and social responsibility
to be corporate bad practice. This usually        platform that placed heavy emphasis on the
                                                                                                     Further reading
involves seeking to curb a company’s licence      corporate sector’s role in addressing widely
                                                                                                     • Microtrends, Mark Penn
to operate – be it in the manufacture and         held social concerns.
                                                                                                     • http://www.demos.co.uk/publications/
sale of foods high in fat, sugar or salt;
                                                                                                        manufacturingdissentbook
the promotion and selling of alcohol; a           Against this backdrop, no business can
company’s green (or not so green) footprint;      assume its licence to operate is safe.
or how a business operates around the             Consumerist groups, political parties, citizens
world.                                            and the media all have expectations of
                                                  responsible and appropriate brand and
With the rise of new technology and the           business behaviour – and will call to account
freedom and power that the internet               any organisation that is perceived to have
brings, these groups no longer just rely on       fallen short. Certain industries – such as
a simple letter-writing campaign to the           Food, Energy, Waste, Alcohol and Transport
local paper. As we mention elsewhere in           – have already witnessed the power of the
this publication, one locally based individual    consumer, but they are not the only ones.
can now easily turn into an internet based        Today, an organisation’s licence to operate is
global coalition containing advocates             affected by the behaviours and perceptions
against a company and its products. One           of everything it touches – including its brand,
only need look at Nestlé and the campaign         employees, supply chain, carbon footprint.


    page 8                                                                                          Public Engagement in the Conversation Age
a clouDy FuturE
– Cloud Computing and the Future of Technology
In Technology, a common request is to                 things, assemble real things and have real   Cloud? As with previous generations of new
predict what’s next. Today, looking into the          experiences and deliver real services. Go    Technology, the industry will need to create
crystal ball, the view is definitely cloudy – or      beyond sharing photos and share reality.”    technologies and protocols to solve these
to be more precise a complete cloud obscures                                                       challenges.
the view. This is not just financial meltdown      3. Develop Influence: In the increasingly
angst but more importantly the future of              vast interconnected web, understanding       Clearly, Businesses will need to be acutely
computing - Cloud Computing.                          who influences (at a global and micro        aware of the Public Relations pitfalls of
                                                      level) and how influence spreads will        entering the cloudy future. Yet in the post
Much is already written on the subject of the         replace the traditional need for control.    credit crunch world, the need to get more
Cloud and much confusion reigns as to what            It will be communicators who can work        out of less, communicate more efficiently
it is precisely, as well as the issues it raises      with influencers to create new ideas         and create new business models - all of
around personal data security and privacy             that will achieve powerful relationships.    which are benefits of the Cloud – will mean
– hence the cloudiness of the Cloud.                  understanding the nodes that create          many firms have no choice.
                                                      influence, who then amplifies an idea and
For the non-geek, the Cloud is essentially            how conversations and stories spread and
                                                                                                    Further reading
made from the combination of datacentres              gain momentum will be at the heart of
                                                                                                    • The Economist, Cloud Computing
acting as computing factories that use                communications strategy – not just for
                                                                                                       Supplement, Technology Quarterly,
wireless networks to connect people to                traditional Public Relations approaches
                                                                                                       Autumn 2008
software being delivered as an online                 but truly conversational Brand strategies.
                                                                                                    • http://en.wikipedia.org/wiki/Cloud_
service. The Economist quotes Lutz Heuser,
                                                                                                       computing
Head of Research at SAP, who refers to it          4. Use Embedded Brains: An extension of
                                                                                                    • http://www.youtube.com/
as an “Internet of services” but adds that            the Cloud will be the ability for embedded
                                                                                                       watch?v=6PNuQHUiV3Q
the cloud metaphor is probably more adpt.             computing to allow objects to talk to one
                                                                                                    • Cloud computing: A catchphrase
But despite this complexity, the Cloud will           another. A car part will tell the garage
                                                                                                       in puberty (www.theregister.
pervade economies transforming behaviours,            via an ip address when it is going to
                                                                                                       co.uk/2008/08/25/cloud_dziuba/)
societies and most importantly the way we             breakdown. How we build strategies to
                                                                                                    • Cloud Computing: Are there dangers
communicate.                                          support this interaction between the real
                                                                                                       to having information infrastructure,
                                                      and digital will become a key measure
                                                                                                       software and services hosted on
Here are five headlines describing how                of success. How Business harnesses and
                                                                                                       the internet rather than on our own
communicators can respond to this change:             exploits this transparency will be a key
                                                                                                       personal computers?, The Times Online,
1. Understand Everything Will Connect:                marketing differentiator transforming
                                                                                                       5 May 2008
   Through the Cloud, information will                customer service and expectations.
   increasingly become connected to
   sources, related comment, opinions and          5. Exploit Mobile Mania: In the Cloud,           Jonathan Hargreaves is European
   disagreements in a seamless way. This will         computing will become more and more           Managing Director. A committed
   make the connectivity of Web 2.0 seem              disembodied and so be consumed                armchair Rugby follower, he is hoping
   tame. Internet users will have to become           where it is needed. Consumers will be         that developments in cloud computing
   navigators of connections, understanding           able to access it at anytime through          create even greater opportunities to
   everything has a back story, some of               mobile devices. As a result, mobile           engage with the sport in the near future.
   it spurious but all of it trackable. As            communications will take another              jonathan.hargreaves@edelman.com
   professionals we will live in a digital world      leap forward and become even more
   that we must understand in tremendous              sophisticated. The communicators that
   depth and detail. Context will become king         master the immediacy and human nature
   and we will have to be masters of context.         of this new model will be the ones that
                                                      work best in the cloudy future.
2. Focus On Making It Real: The danger
   of this cloudy world is that everything is      Amid these headline opportunities, there
   shaped digitally but it becomes ethereal.       is also a dark side to the Cloud. Questions
   Consumers or Citizens will look to make         are raised about how it will be made secure
   it real by building tangible connections        and, importantly, what happens to privacy
   between digital and the real world. Our         and an individual’s rights to access their
   success will be shaped by how we make           own information when so much personal
   the Cloud tangible for our audiences            data is held by the companies that maintain
   – understanding the interface will be the       the Cloud. One obvious bug bear is who
   key to success.                                 will control a person’s ability to store and
                                                   access information kept within the Cloud.
   To quote a comment businessweek.com:            Does a Business have the right to turn
   “It should allow people to make real            off your personal data stored within the

                                                                                                                                     page 9
re-hum
          – Next Generation Digital Communicatio
          Blogs, social networks, online communities
          and the other elements that together
          comprise what some have defined as Web
          2.0 have really only been around for a few
          years. But already, the term has become
          passé, as the always-looking-for-something-
          new crowd, with their collective gnat-like
          attention span, looks for the Next Big Thing.

          If their search focuses on a technology,
          they will inevitably go astray.

          Technology will, of course, continue to evolve
          and advance. Perhaps the web will grow
          more semantically sensitive and serve us
          better by anticipating our needs. The move
          towards Cloud Computing – as described in
          Jonathan Hargreaves’s article, where all of
          our own information is accessible to us from
          anywhere at anytime – will certainly change
          how we work, play and preserve those
          experiences. Improvements in mobile devices
          may soon eliminate the need for desktop,
          laptop and notebook computers.

          These are all interesting and impactful
          technological changes.

          However, they pale in comparison with the
          social change that technology has already
          wrought. And it is this social change that
          Businesses and other institutions have
          yet to fully grasp and incorporate into
          their management and Communications
          practices. The changes centre around new or
          exponentially improved capabilities:


page 10      Public Engagement in the Conversation Age
• Easy and convenient access to a massive        To be sure, many of these are no longer            relationships, Communicators become the
         trove of information                           new ideas and, even so, it will take most          facilitators and conscience of the Business
       • The ability to quickly form groups around      Businesses many years to fully grasp them.         itself. For now, this is the realm of specialist
         a mutual interest, even a micro one            As a result, any contemplative CEO or Brand        Digital Communications experts, but that will
       • The solution to massive problems or the        leader could be forgiven for thinking that         certainly change in the coming years.
         completion of previously overwhelming          the future looks bleak. Over the coming year,
         tasks with no management structures            stakeholders will increasingly be the masters      The move towards this new construct
         whatsoever                                     of their relationships with Business. Troubled     sets the stage for a hopeful future
       • The mobilisation of disorganised,              times and the inevitable poor performances         where Businesses are more responsible,
         disparate individuals into an impactful        will make people even more skeptical and           transparent, engaged and successful, with
         movement                                       cynical of Business voices.                        Communications at the centre, making the
                                                                                                           dialogue happen.
       Access to information drives scepticism          Therefore, the imperative to embrace change
       and is the primary force behind falling          and re-humanise both Communications and
                                                                                                            Further reading
       public Trust in institutions across the board.   broader Business practices will become an
                                                                                                            • Here Comes Everybody, Clay Shirky
       No longer must we take anyone’s word             even stronger imperative. At a time when
                                                                                                            • Army of Davids, Glen Reynolds
       for it. With a click or two, any claim or        Consumers are more carefully weighing
                                                                                                            • TED: Ideas Worth Spreading
       assertion can be confirmed or shown to be        purchasing decisions, shareholders are
                                                                                                               (www.ted.com)
       incomplete, exaggerated or even false. Too       examining the implications of every trade,




manising business
 ons

       often, Business has fallen short in clear and    and policy-makers are deliberating who to
       transparent Communications.                      prop up, the ramifications of whether – and
                                                        how quickly – a Business moves forward
       As a result of that scepticism, people are       could be extreme.
       reverting to instinct and, instinctively, we
       all have an innate ability to evaluate other     Indeed, as more and more Businesses begin
       people. Here again, technology plays an          to embrace the new (old) qualities, the ones
       important role. By facilitating interactions     that are slower to do so aren’t simply sitting
       between people of similar interest,              still. They are falling behind. The Businesses
       perspective or background, technology has        that are embracing change are on a journey.
       created an alternate information resource,       And for them, Digital Technology now
       and one that we find easier to evaluate, trust   returns to the picture in the crucial role of
       and rely on. Viewed from that perspective, it    facilitator.
       is unsurprising that Trust in ‘people like me’
       is consistently on the rise.                     Social networks, blogs, and online
                                                        communities like Flickr and YouTube are
       And it is here that Businesses have an           now revealed as vital venues for dialogue
       opportunity. It starts with re-humanising:       and interaction with stakeholders rather
       • Empowering the ‘people like me’ that           than mere websites. Google search                   Marshall Manson is Edelman’s
         make up every Business to interact             results for Brand-related terms provide             Director of Digital Strategy
         more freely with internal and external         a critical perspective on reputation and            (but he still prefers golf to Facebook).
         stakeholders and to do so without fear         Brand standing, as well as a pathway to             marshall.manson@edelman.com
       • Being more honest and transparent in           information.
         Business practices. Doing so requires,
         not coincidentally, being a better, more       We can take heart that much of what is to
         responsible Business                           come mirrors what is passed. Like the High
       • Admitting faults and failings. After all, no   Street shopkeeper of yore, Business will
         human being is perfect and no Business         increasingly rely on Trust and relationships
         can credibly claim to be                       formed on the basis of dialogue and mutual
       • Building relationships with stakeholders       respect. It is only the technology facilitating
         on the basis of mutual gain. This requires     that dialogue that has changed.
         listening and willingness to be responsive
         to stakeholder input                           In this, Communicators have a key role to
                                                        play: by understanding the technology and
                                                        advising people at all levels within Business on
                                                        how best it can help them facilitate essential


                                                                                                                                               page 11
As far as I can make out, the first Crowd        meant that in effect the “customer walks
                                            Surfers in the rock and roll sense were either   the halls” at Dell. And that means better
                                            Iggy Pop or Jim Morrison... no one seems to      products, services and a Brand that has
                                            know for sure. Now of course, pretty much        come down from the mountain and is now
                                            every pop star with pretensions will at some     much more approachable and accessible.
                                            time launch themselves off the stage in the      They still advertise and use direct marketing,
                                            hope and expectation that their fans will        but they now also enter into pretty real
                                            break their fall, take their weight and pass     and demanding relationships with their
                                            them hand over hand around the arena and         customers and stakeholders.
                                            eventually put them back on the stage. The
                                            metaphor for Business is a slightly crude one    Other companies like New Zealand Vodka
                                            I admit, but today voluntarily or otherwise,     brand 42Below do it because they are
                                            more and more Brands and companies are           (or were) small and have little money to
                                            having to get used to the idea that they are     compete for attention in the usual marketing
                                            no longer in control like they used to be and    ways. One of their YouTube commercials,
                                            that at times they are even at the mercy         which was made for just a few hundred
                                            of their crowds. And they are discovering        dollars became one of the online hits of 2006
                                            that that means having to do some things         and was passed around from blog to blog
                                            differently and occasionally being dumped        and via email links and Facebook groups.
                                            on their head in the mosh pit (as it were).      Consumers as the media channel (if you
                                                                                             can entertain them enough for them to be
                                            Forrester have research that shows that 80%      willing to play with you) can very quickly
                                            of a Brand’s online Communication is not         get to scale and of course they carry with
                                            by the Brand itself; it is from Consumers,       them the implied endorsement of the most
                                            commentators and media. Edelman’s Trust          important person to any Brand or company
                                            Barometer shows that the most trusted            – the person like me.
                                            source of information on a company is
                                            ‘people like me’ (true also in the uK, as well




                                                                                             CROWD
                                            as globally by the way). The CEO is the
                                            seventh most trusted source. And so not
                                            only do Consumers now do much (if not
                                            most) of the communicating about Brands
David Brain is CEO of Edelman Europe        and companies, they are also the most
                                            trusted communicators.
and co-author of Crowd Surfing and                                                           – 925 words, so you don’t have to re
finds it difficult to wipe the smile from
his face at the moment because his 40       It seems inevitable therefore that the
plus year obsession with Manchester         old command-and-control style of                 The trick for managers and leaders now
City has been rewarded with Abu Dhabi       media (advertising, direct marketing and         is to migrate their companies and Brands
millions... and he is handling their PR     promotions) are going to be less effective       from the old ways of managing marketing
account for Edelman. Personally. In         than they were. Many companies recognise         and communications to a much messier,
fact no-one else is getting much of a       this and are indeed changing their               more difficult to quantify, trial-and-error
look-in.                                    Communication mix, but it also requires a        approach where they sacrifice control for
                                            new mindset.                                     the credibility that comes with participation,
david.brain@edelman.com                                                                      conversation and dialogue. As Proximo said
                                            Some companies like Dell come to this            in the movie Gladiator, “Win the crowd and
                                            realisation because a “raging mob with           you will win your freedom”. Crowd Surfing is
                                            pitchforks” attacks them. In Dell’s case this    designed to help people with real jobs in real
                                            was inspired by one blogger, Jeff Jarvis, but    companies do just that.
                                            quickly became a movement that at times
                                            almost overwhelmed Dell’s online presence        And it’s not like the phenomena of the
                                            with negative comment in the form of the         empowered Consumer is going to go away
                                            www.ihatedell.neet web site. In our book,        anytime soon. As described elsewhere in
                                            Crowd Surfing, we (my co-author Martin           this publication, the rocket fuel of Consumer
                                            Thomas and I) interviewed Dell managers          empowerment is technology (social or 2.0
                                            on the experience of having to enter into        and mobile particularly) and it has only just
                                            conversation with an angry crowd and             started to combust. Consider this: Both my
                                            they described how they started to respond       children started using a mouse to navigate
                                            to people’s anger and frustration at bad         web sites like Club Penguin at around the age
                                            products and service and how now they            of three, about the same time they realised
                                            even institutionalise the sourcing of new        they could play the games or look at the
                                            product and service ideas from the crowd via     photos on my mobile phone. I have spoken
                                            www.dellideastorm.com, a kind of on-line         to enough parents to know that we are not
                                            Consumer suggestion box. Michael Dell            a family of total freaks in this. The internet
                                            says that giving up control by entering into     became a Consumer friendly/ useful thing at
                                            the conversation that was going on anyway        about 1993-4. The first generation then that


 page 12                                                                                     Public Engagement in the Conversation Age
grew up using these technologies as soon as
         their grubby little fingers would allow them
         to were born in about 1990. They are now
         18, going on 19 and are going to university
         and entering the workforce for the first time.
         They are the first true digital generation and
         if Brands and companies think that all this
         new stuff has been disruptive so far, then
         they better hold on to their hats, because we
         have only just begun. It is the companies
         and managers that learn to crowd surf that
         will survive and thrive in this new Consumer
         empowered age.




D SuRFING
 ead the 60,000 in the book

         Further reading
         • www.sixtysecondview.com
         • www.crowdsurfing.net
         • www.dellideastorm.com




                                                          page 13
Newspapers make for depressing reading,          driver of productivity as innovative products     Action Plan for the Creative Industries. The
with alarming headlines such as “uK faces        account for a greater share of turnover.          report sets out a number of new initiatives to
worst of global recession” (FT); “Deep and                                                         help the uK’s Creative Industries to flourish,
lengthy recession takes shape as uK output       Further, as we move towards a predominantly       including 5,000 new apprenticeships to
figures shrink” (The Times); “Recession to       knowledge based economy, the fact that            help people from all backgrounds make the
hit Britain hardest among Europe’s leading       the Creative Industries’ workforce (the           most of their creative skills, and the creation
economies” (The Guardian); “Employers            sector employs over 1.8 million people,           of C&binet, the Creativity and Business
gloomy on job creation” (BBC News)… and, it      including those working in related creative       International Network, a new forum that will
would be fair to say, worse will follow. While   occupations) is highly qualified with over        bring together Creative and Business leaders.
some pundits debate that such headlines and      49% of employees having at least a degree
resultant coverage have served to exacerbate     level qualification (compared with an             unlocking the potential of the Creative
the situation, one cannot disagree that we       economy wide average of 31%) surely points        Industries cannot be ignored as we look to
find ourselves at the mercy of turbulent         to a trend for growth? The Work Foundation        plot a course back to economic stability –
financial markets which will have a deep         describes the knowledge economy as the            and it will be essential for both Government
rooted and long lasting effect on us all.        story of new technologies combining with          and Business to work in partnership to
                                                 human brain power to transform the basis          maintain and create the most favourable
So as we attempt to plot a course back to        of economic activity; CEO, Will Hutton,           conditions in order to stimulate innovation,
economic stability and renewed prosperity in     believes that the knowledge economy, the          creativity and dynamism.
its truest sense, should we be looking beyond    central tenet of the Creative Industries is
the faltering Financial sector to the Creative   increasingly important to the uK’s financial       Further reading
Industries and ask, can they provide us with a   performance.                                       • Staying Ahead: The Economic
way forward and the hope of bolstering the                                                             Performance of the UK’s Creative
crunch? Could they drive potential growth        The Birmingham Post recently ran an                   Industry, Will Hutton and the Work
for the future?                                  interesting byline article on the future of the       Foundation on behalf of the Dept.
                                                 Creative sector (Creative Industries Well-            for Culture, Media and Sport
The impact of the Creative Industries as a key   placed to Beat Credit Crunch, 31 August            • From the Margins to the Mainstream
driver of GDP in the uK is rapidly emerging      2008) by Lara Ratnaraja, Sector Development           – Government Unveils New Action Plan
and transforming the perception that these       Director of Creative, Cultural and Digital at         for the Creative Industries, Dept. for
businesses play a Cinderella role in the         Business Link in the West Midlands, who               Culture, Media and Sport
economy, sitting on the outskirts of true        made the point that: “Companies, which             • Unlocking the Potential of the UK’s
Business. Why? Well it is hard to argue with     can show a strong yield on investment,                Innovators, Cass Business School and
the facts. The Creative Industries grew by an    will still have room to grow as long as they          Microsoft
average of 6% per annum between 1997 and         can evidence that their knowledge-based            • Creative Industries Well-placed to Beat
2005 (which is twice as fast as the rest of      services are in demand from consumers and             Credit Crunch, Lara Ratnaraja, Sector
the economy) and in 2005 accounted for £60       clients. In a nutshell, companies that exploit        Development Director of Creative,
billion or 7.3% of Gross Value Added (GVA).      their intellectual property fully will emerge         Cultural and Digital at Business Link,
Total creative employment increased from         from the crunch as market leaders.”                   Birmingham Post, 31 August 2008
1.6 million in 1997 to 1.9 million in 2006,


                                                 Thinking our Way ouT
representing an average of 2% per annum,
compared with 1% for the whole of the
economy over this period. Moreover, the uK


                                                 of The CrunCh
Creative Industries outperform every other
European state and have moved to centre
stage of the economy.

Of course the Creative Industries will face
                                                 – could the creative industries hold the solution?
the same challenges as every other industry
– including securing investment, debt            Innovation plays a key role and, between            Pamela Fieldhouse is Managing
management and access to private equity          1995 and 2005, start-up companies                   Director of Edelman’s Corporate
– but could it be that they are better placed    accounted for 48% of turnover growth with           Reputation team. She has been
to survive the crunch and display the most       software and computer games contributing            passionate about understanding how
promising trends for potential growth?           the most. A recent report from Cass Business        the human mind works and how to
                                                 School and Microsoft, unlocking the                 influence behaviour change since
Successful Business has always been              Potential of the uK’s Innovators, predicts that     studying psychology at university.
dependent on firstly predicting market           we could add £9 billion to the uK economy           pamela.fieldhouse@edelman.com
trends and in turn possessing the flexibility    simply by unlocking the talent of the hidden
and confidence to respond to them. This          entrepreneurs.
has never been more poignant than for
the world of Business today. However, it is      Another critical factor will be investment in
arguably more difficult than ever to achieve.    skills to ensure we have the right people with
The highly innovative nature of the Creative     the right skills to meet the demand and drive
sector would suggest they are better able to     growth. The Department for Culture, Media
diversify their products and services. They      and Sport is doing just that, as evidenced
are also more likely than the average firm to    in a recent report, From the Margins to the
user wider innovation, which is an important     Mainstream – Government unveils New


    page 14                                                                                        Public Engagement in the Conversation Age
Think bravery
before budgeTs
– Creativity and Brand Bravery

One of the most talked about opportunities      turn, represents accelerated risk.               and realizing the power of a strong brand
that the changing economic climate will         It is the willingness of Brands to take risks    story to contribute to culture. Collaborate
telegraph for Communications is a greater       that has always had the most significant         with cultural institutions to build brand
emphasis on innovation. Agencies will           impact in getting creative ideas off the         experiences and engage new audiences.
be expected to make more from less. It          page. The real elephant in the room is
is anticipated that this will encourage         not the need for greater or consolidated         Demonstrate Power and Critical Mass
stronger and clearer focus on creativity, and   creativity or the confidence in, and             – with ideas that work across a multitude
higher creative expectations from Brands.       understanding of, new authors and new            of channels, avoid thinking simply of
                                                channels – but the climate and tolerance         Consumer PR t, everyone is a consumer
This is a good thing. Higher creative           for risk, as guaranteeing KPIs and ROIs          now, show and understand integrated
expectations are what our industry needs.       becomes increasingly pivotal in getting          platforms.
Great ideas should always be the heartbeat      campaigns that vital rubber stamp. The real
of PR campaigns no matter what the              challenge is not Budgets, its Brand Bravery.     Show Robust Business Nous – that you
channels or who the editors are.                                                                 know how to track and demonstrate
                                                Creativity could easily be forced to play        measurable results, crucially, illustrate how
But is this emphasis on creative primacy        second fiddle to ROI as Brands seek water        the idea can effect sales.
going to pose a significantly changed           tight solutions. As the tussle for spend
working or business environment?                morphs into a battleground between the           Integrate and Collaborate - Consumer,
Don’t we always need to be creatively           strength and vision of an idea and the           Corporate, Digital, PA, the best solutions will
outstanding and doesn’t every pound of          commitment and comfort of guaranteed             offer every service that the Brand needs.
marketing budget spent need to deliver          delivery – the safe way to do things versus
maximum return anyway, and should this          the risky, Brand Marketers should lead the       These are all obvious considerations, and
not always be the case?                         march by showing and making Brands feel          that is ultimately the point. In the age of
                                                that they can have both their cake and eat it.   decision by committee and fear of waste
Marketers are used to working with limited                                                       (money, time or otherwise), the onus is on
resources and should always work on the         We all know that PR is unique in its ability     us to work more effectively with Brands to
principle that the best ideas, campaigns        to stretch and engage audiences across a         deliver visionary creative campaigns that
and stories are not always the most             multitude of channels, to influence and          telegraph a robust success narrative from
expensive. Take the seminal 1994 and 2008       shape culture and deliver 360Brand-owned         inception to completion.
JCPR Wonderbra campaigns as examples of         campaigns. We truly now have the power
huge and powerful campaigns delivered on        to Think Big.                                     Further reading
small budgets. We do not need to invent                                                           • Juicing the Orange: How to Turn
new ways of working for these changing          But do we have the ability to responsibly            Creativity into a Powerful Business
times. The best agencies should always          and impressively convince Brands of                  Advantage by Pat Fallon, Fred Senn
relish the challenge to produce exceptional     this? Do we need to better interrogate            • Branding Only Works on Cattle: The
work – whatever the financial resource and      and articulate how we demonstrate and                New Way to Get Known by Jonathan
whatever the financial context.                 communicate ideas to help Brands show                Salem Baskin
                                                value and ultimately give them what they
We have read much about the Economics           need to make a great idea fly?
of Less, the Rise of Consumer Politics,                                                            Ruth Warder is a Director at JCPR and
and the Conversation Age. In the new            The war on mediocre but safe solutions             has been integrating brands with culture
rules of Consumer Engagement, less means        can only be won if Marketers can establish         and entertainment for the past eight years.
more. The perceived new creative dawn           and develop a dynamic framework to                 ruth_warder@jcpr.com
should look to define itself in parallel with   demonstrate the Business value and stretch
these principles and seize the opportunity      of an idea – beyond traditional expectations,
for less to mean creatively more, not           traditional routes, traditional results and,
just from a spend perspective but from          most importantly traditional, channels.
a thought perspective. As Brands bravely
embrace the world after the 30 second           Four Ways to Better Communicate Ideas
spot, they should seek to consolidate with      and Influence Decisions:
courageous, simple, uncluttered thought.        Build Cultural Relevance - root ideas in the
But belief in the simple and the new has        cultural Zeitgeist. Stay current and grow
always required robust single minded            the potential of the idea by harnessing
conviction and pioneering spirit which, in
                                                                                                                                   page 15
A paradox is in play at the heart of today’s      placed upon their interactions with their
                                              society. As individuals, we can consider          lay and patient audiences. On the other
                                              ourselves more independent than ever              hand, the world is moving on regardless;
                                              before, yet the opinions we hold and the          and not just the world at large but their
                                              actions we take are increasingly driven by        world too – people, patients, doctors and
                                              a sense of the wider societal context and         advocacy groups are all becoming more
                                              consequence. The big issues, in politics, the     engaged, demanding and democratised in
                                              environment and the economy sit at the            their information-sharing and expectation of
                                              centre of individual concerns, influencing        dialogue.
                                              many of our daily decisions.




                                              Engaging wit
                                              – Health in the Conversation Age

                                              As we describe earlier, the most significant      According to the Health Engagement
                                              catalyst for change has been the                  Barometer – a new study by Edelman of
                                              digital revolution, which has effectively         5,000 people (1,000 in the uK) – more than
                                              democratised dialogue, debate, opinion            half of adults (55%) in the uK say they are
                                              and ultimately, actions and procedures.           becoming more actively engaged in health
                                              Individuals are invited - and are inviting        issues, with conversations about health more
                                              themselves - to participate in conversations      important to them now than in the past.
                                              at all levels on issues of all magnitude.
Mike Kan is Managing Director of              We are now active citizens, not passive           The Health Engagement Barometer also
Health for Edelman in Europe. He is also      consumers, and we are recognising how the         confirms that pharmaceutical companies
passionate about design. He is obsessed       digital channel gives us the authority and        must embrace the digital revolution. Seventy
by its role in shaping physical, social and   ability to realise the responsibility of being    nine percent of uK respondents regularly
literary constructions of everyday life       the change we want to see.                        turn to online sources when seeking
from the 1840s to the 1930s.                                                                    information about a health issue, and 16%
mike.kan@edelman.com                          Almost every facet of society that                regularly turn to blogs for information.
                                              communicated in the traditional ‘top-
                                              down’ pyramidal system is finding success         But engagement goes beyond what people
                                              by letting the citizen in. Barack Obama’s         want – it is what they expect and demand
                                              overwhelming presidential victory, for            of companies in today’s world – and is the
                                              example, was driven by a desire to “speak         fundamental driver of Trust. Seventy percent
                                              directly to his supporters” in the words of his   of people say Trust is the most important
                                              chief strategist, and allow them to become        factor with health companies, yet only 8%
                                              involved and empowered in the campaign.           of people in the uK strongly trust health
                                              Initiatives such as myBarackObama.com, the        companies. Meanwhile, those who are more
                                              social networking site with approximately         engaged in health are more trusting of health
                                              1.5 million active users, were “the central       companies overall (60% vs. 53%) and more
                                              nervous system of the campaign,” according        likely to be an advocate for them (68% vs. 48%).
                                              to Julie Germany, director of the Institute
                                              for Politics Democracy at the George              So how can the pharmaceutical industry
Steven Spurr is Managing Director,            Washington university. The success is             engage its stakeholders? The digital space
Health. He read Economics at the              reflected in the contrast between Democrat        cannot be ignored – 51% of uK respondents
LSE and it was here that he became            and Republican levels of engagement, as           in the Health Engagement Barometer said
fascinated with the concept of perfect        evidenced by Obama supporters turning up          online methods are their preferred method
information and its role in resource          at rallies sporting lovingly home-made t-         of communication with companies and
allocation.                                   shirts and banners, while McCain supporters       organisations involved in health. While it is
steven.spurr@edelman.com                      usually wielded the homogeneous, party-           a difficult step for any major corporation to
                                              made placards and printed-out badges.             ‘let go’ and cede the control they have been
                                                                                                used to (and this is particularly true in such
                                              So why is it that some elements of the            a regulated and potentially litigious world as
                                              health sector – pharmaceutical companies in       health), the pharmaceutical industry must be
                                              particular – are struggling to countenance        braver and overcome perceptions of Digital
                                              dialogue with the emerging Digital                Communications as something to be feared,
                                              Democracy? In one regard, it is tempting          mistrusted and that, if ignored, might just go
                                              to excuse them from the new world order           away.
                                              due to the legal and ethical constraints


  page 16                                                                                       Public Engagement in the Conversation Age
ultimately, while the world of health is
  complex and multifarious, it has a simple
  requirement at heart: people who require
  healthcare want the right treatment and
  advice from people they trust at the right time
  and for the right ‘cost’ (whether in sterling or
  side effects). Engaging with this requirement
  is in the interest of all stakeholders in health,
  and finds its expression in conversations
  around access to medicine.




th hEalth citizEns
  The stakes are high and the time is right for
  the pharmaceutical industry to be braver.
  While regulatory and resource constraints
  are very real, there is significant scope for
  companies to prioritise their engagement
  in this conversation and to build Trust with
  their citizen stakeholders to secure their
  continued licence to operate.

  Ensuring appropriate access to medicine
  is a complex and fragmented process, and
  often too narrowly understood. Stakeholders
  in health are often found working in silos
  and sometimes to their own detriment.
  Communications specialists are uniquely
  positioned to weave these strands together:
  linking health economics, medical, media
  relations, pricing, reimbursement, advocacy,
  policy and disease awareness functions
  within pharmaceutical companies to
  facilitate consistent, transparent and
  multi-directional dialogue with the citizen
  stakeholders that determine their success.
  The engagement is essential across all
  channels and we know the stakeholders are
  increasingly online. It’s no longer an option.
  To secure the future, the pharmaceutical
  industry must take a deep breath, embrace
  this new channel and enter the brave new
  world of Public Engagement.


  Further reading
  • Edelman Health Engagement Barometer:
     www.engageinhealth.com




                                                      Page 17
Medical Communications and Medical                  Acambis. However, this consolidation alone       with their stakeholders about their drugs
Education are often used as synonymous              is unlikely to address the need for late         in development. Successful Medical
terms – and in part that is quite correct. All      stage products, as most of the pipelines         Communications is more business critical
the efforts of a Medical Communications             acquired in this way still require significant   than ever. Those companies who embrace
agency are directed at educating their              development time. This is also compounded        a more open dialogue about their drugs
audiences, who are primarily practicing             by the fact that some of those biotechnology     in development in innovative and more
Health Care Professionals (HCPs). Education         based drugs that have reached market will        compelling ways with those professionals
takes on a different onus, however, when            be facing patent expiry, and the spectre         who are ultimately at the forefront of
this is officially recognised as a Continuing       of so-called ‘biosimilars’ (the term used to     treating patients, will reap the rewards of the
Medical Education (CME) or Continuing               describe generic biologics) is looming large.    new terms of engagement.
Professional Development (CPD) programme.           Pharmaceutical companies will need to
In this respect, different rules and regulations    ensure that their R&D pipelines are not too
apply than in the broader Medical                   narrow in order to maintain the flow and          Further Reading
Communications perspective. The focus of            momentum of getting products to market,           • Edelman Trust Barometer:
this article is on Medical Communications.          although undoubtedly some will run the risk          www.edelman.co.uk/trustbarometer
                                                    of cutting back on R&D during the current         • PharmaFocus
Although Medical Communications is a                financial crisis.                                 • SCRIP
highly regulated environment – with the
majority of the Communications targeted at          Against this background, there is no doubt
HCPs and not appropriate (or permitted) for         that pharmaceutical companies will be
Consumer audiences – the time has come              guarding their relationships with their HCP
for pharmaceutical companies to embrace             advocates with great care. Strong advocates
the same principles of engagement and               at the developmental stage of a drug’s
conversation as other industries. This is all       lifecycle are critical to safeguard its long
the more important as the pharmaceutical
product development landscape is changing
rapidly – with fewer blockbuster drugs,
companies need to find more compelling
ways to communicate the benefits of their
                                                    mediCal
products in real clinical practice.

Conversation is now at the heart of
                                                    CommuniCaTions in
any engaging Medical Communications
programme. Enabling and driving peer-to-
peer dialogue is far more powerful than
                                                    The ConversaTion age
                                                    – where next with health care Professionals?
relying solely on the ‘old model’ of driving
information from the top opinion leaders
down to the broader HCP community.
Trusting the source is the cornerstone of           term survival, and we should expect medical
any successful Medical Communications               communications to play an increasingly             David Noble is Managing Director of
programme and, as the Edelman Trust                 important role in maintaining these                BioScience Communications - Edelman’s
Barometer has shown, people are more likely         relationships at a time when companies             specialist Medical Communications
to trust ‘people like me’, so having strong         will be seeking to ensure that they realise        Division. He has extensive experience
professional advocates to drive peer-to-peer        their ROI on their later stage compounds           of the pharmaceutical industry having
Communications is a clear advantage for             in an increasingly competitive market.             started out as an R&D biochemist before
pharmaceutical companies.                           Transparency continues to be the watch             moving into communications.
                                                    word in developing these relationships,
                                                                                                       david.noble@edelman.com
In the current economic climate, engaging           so taking a responsible approach and
in conversation with these advocates will be        acknowledging the independence of HCPs is
increasingly important. A fairly long term          paramount. It is only by encouraging debate
‘scare-mongering’ headline in much of the           that pharmaceutical companies can achieve
pharmaceutical press has been focused               this with any real credibility.
around the lack of robust pipelines in many
major pharmaceutical companies, with some           While the current economic turbulence
high profile Phase III trial failures adding fuel   will undoubtedly have an impact on R&D
to this. In the last few years, there has been      budgets, pharmaceutical companies cannot
a great deal of consolidation in the industry       afford to jeopardise their long term prospects
as pharmaceutical companies seek to                 by cutting back too severely. This would both
bolster their pipelines through acquisitions,       damage their commercial outlook and their
most notably of R&D driven biotechnology            relationships with their key advocates in
companies. Roche, for example, increased            healthcare practice.
their stake in Genentech to take a controlling
share; AstraZeneca acquired MedImmune               Furthermore, in an increasingly competitive
and Cambridge Antibody Technology; and              market, pharmaceutical companies will
most recently, Sanofi Pasteur acquired              need to embrace a more open dialogue


    page 18                                                                                          Public Engagement in the Conversation Age
Public Engagement In The Conversation Age
Public Engagement In The Conversation Age
Public Engagement In The Conversation Age
Public Engagement In The Conversation Age
Public Engagement In The Conversation Age
Public Engagement In The Conversation Age

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Public Engagement In The Conversation Age

  • 1. Public EngagEmEnt in thE convErsation agE
  • 2. CONTENT Don’t Lose the Thought 3 Foreword Confidence and Trust 4 The Currency for Recovery Trust Me, I’m a Banker 5 The State of Financial Services The Fall and Rise of the C Word 6 The Future of PR Citizen Smith 8 The Rise of Consumer Politics A Cloudy Future 9 Cloud Computing and the Future of Technology Re-Humanising Business Next Generation Digital Communications 10 ABOuT EDELMAN Crowd Surfing 12 Thriving in the Age of Consumer Empowerment Thinking Our Way Out of the Crunch 14 Could the Creative Industries Hold the Solution? Edelman is the world’s largest independently- owned PR agency, employing over 3,200 Think Bravery Before Budgets 15 people in 54 offices around the world – 260 Creativity and Brand Bravery of whom are in London. We work across Engaging with Health Citizens 16 all areas of the Communications spectrum, Health in the Conversation Age delivering award-winning campaigns in media old and new. Medical Communications in the Conversation Age 18 We are retained by some of the world’s Where Next with Health Care Professionals? largest multi-national companies and leading Alive and Kicking 19 brands, some of which are mentioned in this Trust and the Beating Heart of Media publication – including, but not exclusively the Department for Culture, Media and Without Content There is No Conversation 20 Sport; Microsoft; AstraZeneca. Content, Conversation and Collaboration Soft Power to the People 22 For more information about Edelman, Into 2009 and Beyond please visit: www.edelman.com / www.edelman.co.uk Coming soon... 23 www.goodpurposecommunity.com Trust Barometer 2009 www.edelman.co.uk/trustbarometer page 2 Public Engagement in the Conversation Age
  • 3. Don’t losE thE thought We live in remarkable times. We have and the unexpected emergence of a reached a crossroads in our economic new fashion for regulation; the rise of history and stand at the threshold of Consumer Politics and a parallel, global potentially momentous change in the resurgence of interest in politics, per se; global political landscape. Trust in Business an Olympic Games that was mired first in and Government (of which Edelman controversy and then in tragedy – with has been an avid student for the best human rights and human triumphs as part of a decade) has oscillated with occasional, if odd, bedfellows; more talk random fury, while the inexorable march about The Cloud of Technology and all towards universal Digital Democracy and that it will bring; and, finally, a growing empowerment continues apace. understanding of what it really means (and needs) to be Green – only to see Communications has reached a tipping this threatened by those who will use the point. Increasingly confronted by calls for economy to escape their environmental an Economics of Less, we are witnessing a responsibilities. noticeable shift away from ‘consumption’ and towards active citizenship and good This series of essays, each written by a purpose instead. PR now finds itself in an senior member of the Edelman team, sets accelerated state of evolution – moving out to capture what our Communications towards a hyper-connected model of world looks like today and what it might Public Engagement that converges and look like tomorrow. These are not essays transcends all existing marketing and on the theme of Recession – yet they are communications disciplines. each, in their own way, contextualised by today’s harsher economic reality. They are Too many organisations retreat designed to provoke thought, stimulate and retrench in recessionary times. debate and provide content. They sit within Entrepreneurial spirit and thought the exciting and compelling framework leadership are often sadly and falsely of multi-lateral, multi-stakeholder sacrificed on the altar of commercial engagement. They speak directly to The imperative. Our contention is that Thinking Conversation Economy. They hopefully costs nothing and yet remains a key illustrate that PR can – and should – be at point of competitive advantage for firms, the vanguard of change. whether they are selling ‘stuff’ or stories. None of us can afford to lose the Thought if we take our businesses (and those of our December 2008 customers and clients) seriously. Robert Phillips 2008 has been a year in which we have UK CEO Edelman seen the collapse of free market models robert.phillips@edelman.com page 3
  • 4. Who could have imagined the changes that political observers got to hear endlessly have turned the financial markets and the about “ordinary people”, “working families” banking world upside down? Every day has and even “Joe the Plumber”, who became the seemed to have been yet another voyage uS equivalent of the ‘Man on the Clapham into the unknown as great names crash, Omnibus’. burn or start pleading for bail-out support. Freddie Mac, Bank of America, Fannie Mae, Strip away the drama and the frightening Northern Rock, Ford, and General Motors speed of change of the last few months – the list goes on and on. and then it can be seen that this global crisis has always been about confidence and Ever since the spectacular crash of Lehman trust. Brothers in September and against the looming clouds of recession, all eyes have As was seen in the aftermath of the 9/11 been turned upon national banks and attacks, these essential ingredients of business regulators, governments and political leaders are fragile and vulnerable to the damaging as investors, shareholders, house owners and corrosive effects of negative rumour and consumers sought leadership and and doomsday forecasting, compounded in reassurance. But that comfort was slow in today’s crisis since trust is key to financial coming, if at all. markets. Over recent months, political leaders have been perceived to be stumbling The first, knee jerk reaction of presidents, and defensive in their responses. In a brief Mike Seymour is International prime ministers and their banking leaders moment of optimism, commentators claimed Director, Crisis & Issues Management, was to claim that their national strategies that history might take the view that, like for Edelman worldwide and has and budget plans had equipped their New York Mayor Rudi Giuliani after 9/11, extensive experience working alongside economies to withstand any recessionary Henry Paulson would be seen to have seized multinational commercial and shocks that might arrive. In a single day, the moment with his multi-billion lifeline government organisations, involved in we heard the same message from President to financial institutions. But that hope complex international issues, crises and Bush, Prime Minister Gordon Brown and the quickly oozed away as the scramble began in emergencies. Spanish Government: “We want to reaffirm Congress to claim back favours, brokered for the strength of our economy to overcome votes in various pork barrel deals. mike.seymour@edelman.com the current situation”. of these problems were beyond the scope ConfidenCe and TrusT of normal regulatory or political experience, which in part explained the silence or shallow responses that were quickly – the currency for recovery perceived as defensive and hollow. In any times of national or financial Against these cataclysmic changes, it is too While the scale of the credit crunch and the uncertainty, leadership is demanded to easy to claim now that governments acted banking freeze may be unprecedented, many reassure the general public that matters too slowly or stayed silent for far too long. of the contributory factors are commonplace are being brought under control and being But it is difficult to see how they should or in daily emergencies. When any crisis managed. When problems escalate to crisis could have acted and communicated as they breaks, the first victims are always the truth levels, such leaders need to demonstrate struggled to comprehend the scale of the and facts. No-one can be sure what has confidence through bold statements, changes. happened or the root causes. backed up by far sighted and robust plans that can withstand the escalating chaos of A defining moment was thought to come In our world of 24/7 news and constant threatening events. when uS Treasury Secretary, Henry Paulson, online chatter, information is quickly triggered a series of stock market roller shot around the world. There is never Now international bankers, the G8 and G20 coaster rides in announcing plans to set any shortage of commentators, critics have met and deliberated. International aside uS$700 billion to purchase the “toxic” and ‘experts’ that will be quick to offer plans have been debated and agreed, derivative instruments. The uS Congress their opinions or ideas. But in responding which promise survival of a recession that demonstrated their politic priorities as they to recent events, even economists of has arrived and is daily biting deeper. In haggled over the initial Bill and the debate international standing have declared the uK, the government has announced descended into a battle between saving Wall themselves to be bewildered by the speed a series of radical measures. Time will Street and Main Street. and extent of the course of events. In this tell whether the impact of this array of global crisis, confidence has been further unprecedented measures will survive to As all these critical steps were being taken undermined by the dissonance and lack of provide the injection of confidence which in an attempt to wrest back some kind consensus within the forest of theories. must underpin any slowdown in the progress of control over the crisis in the financial of the current crisis. But true change and markets and the freeze-up of banking credit, When financial, banking and mortgage sustained recovery will only be possible once the Presidential Election race played out markets came under pressure as the credit confidence and trust start to return. - at times almost as a side show beside crunch took hold, the resulting effects had the main drama. Suddenly, against these potential impact for every stockholder, house extraordinary circumstances, electors and owner, saver and consumer. The magnitude page 4 Public Engagement in the Conversation Age
  • 5. TrusT me, i’m a banker innovative financial industries. Once again, negative perceptions lead reality. – the state of Financial services Set alongside the Banking sector and the Hedge Fund industry, the insurers have - with No industry has felt the cold blast of the This collapse in Trust has coincided with the very notable exception of AIG in the uS credit crunch more than the Financial – indeed perhaps even been caused and/or - largely managed to avoid the most visible Services sector. Whilst the turmoil and exacerbated by – the new Digital Democracy impact, and consequently the high profile upheaval in the global Banking system has we reference elsewhere. With the internet fallout, of the Credit Crunch. The impact of dominated recent newspaper headlines, placing power in the hands of the Citizen as the collapse in equities will undoubtedly feed the industry in general is experiencing a never before, this is the first recession of the through into the pensions sector but, again, collective collapse in Trust and confidence true Digital Age. The challenge the industry to date this industry has managed to remain which has also affected Insurance now faces is to overcome the current largely - though not exclusively - on the companies, Asset Managers and Hedge Funds negative perceptions and re-build Trust. periphery of the debate. in equal measure. Having gradually reduced to no more than a ‘hygiene factor’, suddenly The first lesson that needs to be heeded is The Financial Services industry finds itself at Trust is once again a commodity to be that life, as we have always known it for the a key point in its continuing development. cherished, protected and preserved. banks, has changed forever. So far as the There is little doubt that the next twelve media is concerned, every pound the banks months are going to present major To some extent the ‘sudden’ collapse of spend comes out of ‘our’ pockets – in the challenges to Communicators in the sector Trust in the Banking system - and indeed current climate the normal rules of Business but this is not the time to adopt a bunker in our established Financial Institutions no longer apply and the banks’ usual licence mentality. It is clear that stakeholders will generally – has been long coming. For the to operate has, effectively, been suspended. be asking searching questions of our banks, last decade, Edelman’s Trust Barometer has Events which were fully justifiable in the past Insurers and those that manage the wealth tracked the growth in credibility of peer-to- (and can arguably still be justified now) have of the nation. peer Communications at the expense of the to be considered in the light of a new reality top-down, CEO-led programme and, what we – that ‘our’ money is paying for them. The organisations that emerge strongest from see today, is merely a practical application the economic downturn will be those that of that trend. What is beyond dispute is HBoS saw this principle in action in early are most able to reach out to, and empathise that Trust in the Banking industry has all but November when it was fiercely criticised with, the man or woman in the street. They melted away – not just amongst Consumers in the media for hosting two staff events. will recognise the role of the internet and but most damagingly (and most tellingly) The reality is that the banks do still need social media and adapt their Communications within the market itself. to motivate and reward their staff. But strategies to address these channels effectively. the perception of massed ranks of bankers And they will embrace the changing nature of indulging in lavish celebrations as we head Communications and take advantage of the Paul Lockstone, Managing Director, into a recession, and as the taxpayer digs collapse in traditional hierarchies. has extensive experience in deep to bail them out, is one that the banks financial communications, both in have to take great care not to foster. agency and in-house. He is also a The restoration of Trust between Financial frustrated rock star. His blog – Institutions and their customers is not What of the rest of the Financial Services something that can be achieved overnight. www.worldshutyourmouth.com – is an industry? Sitting next to the banks on attempt to combine his professional Management must be prepared to invest not the naughty step, and finding itself cast only financially but in particular in devoting and personal life and interests. in the unwelcome role of chief scapegoat time to repairing relationships. It is well known paul.lockstone@edelman.com for the collapse of the Financial world as that ‘nature abhors a vacuum’ and, in the we previously knew it, is the Hedge Fund absence of any engagement from the industry industry. Now most informed observers or individual firms, our new breed of Citizen recognise that Hedge Funds play an Consumers will draw their own conclusions. important role in the Financial Markets. Furthermore, the leading participants in the industry are some of the uK’s most active Further reading philanthropists, contributing substantial • Peston’s Picks: the blog of Robert sums to charities in both the uK and globally. Peston, the BBC’s business editor (http://www.bbc.co.uk/blogs/ But with a few notable exceptions, the thereporters/robertpeston/) industry has on the whole been poor at • The Bank of England Financial Stability engaging with a wider group of external Review, October 2008 (http://www. stakeholders. This has allowed prejudice to bankofengland.co.uk/publications/ become accepted fact, with the result that fsr/2008/index.htm) the industry now finds itself short of friends • FT.com and WSJ.com: the websites when they are most needed. There is a clear of the world’s two leading business risk of an excessive regulatory response to newspapers recent issues, borne of the ’something must be done’ school of policymaking, that could curtail the activities of one of our most page 5
  • 6. The future of PR belongs to the Citizen. The Consumer Age, as we know it, is coming to an end. Corporate Reputation and Brand Marketing are converging. In tomorrow’s world, constructive dialogue, engagement and a new tripartite contract between Citizens, Businesses and Government will shape and drive the Communications agenda. Radical Re-alignment: Endings and Beginnings There is a free radical somewhere deep within me that believes that we are facing the end of Consumerism as we know it. The global financial meltdown has served as a timely reminder that the death of Capitalism may be upon us also. If this was hitherto a personal, utopian fantasy, then it was equally surprising to find Newsnight and others leading on the very same subject. There are real lessons to be learned from recent events: consider the inconsistencies and the lack of responsible regulation in the Financial sector over the past decade – and think through the implications this may have if Governments and Citizens fail to actively intervene on an environmental level, to properly safeguard our planetary future. The Free Radical believes that tomorrow’s world is being shaped around Digital Democracy and the Citizen power that this brings; around the Wellbeing Imperative, and our thirst for a happier way of being; and around the Perfect Storm surrounding Climate Change – the acceptance that we cannot continue to over-consume the finite resources of the planet. Tomorrow’s world may yet prove that the Consumer – the one we all grew up to know and understand – was nothing more than a Twentieth Century blip, a bit like Marxism. Citizenship is more enduring. THE FALL AND You do not need to be an apocalyptic Green to recognise a changing world. We are all now learning to live within the necessary confines of a lower consumption, lower carbon economy – whether this is currently driven by heightened responsibility or by economic need. We have witnessed, first-hand, the rise of Consumer Politics – impacting which brands we buy and how we buy them; in parallel, we have seen the page 6 Public Engagement in the Conversation Age
  • 7. emergence of single-issue consumerist Third, Corporate Reputation must now be movements and campaigns whose aims are properly understood within the context of to encourage (Government) action to address active citizenship and Consumer Politics. perceived business bad practice. Nowhere is Old hierarchies have been denuded and this more evident than in the ‘hot’ issue areas demolished; pyramids of authority have of food, packaging, waste, fuel, energy and collapsed and have been replaced by a transport. Consumer Politics is now a very real new sphere of cross-information, in which consideration in any piece of communication. everyone has a say – regardless of age or Businesses and brands are no longer in status, gender or experience. Just ask the control. Fuelled by the immediacy and Road Petitioners. transparency of the web, power has passed to the people. Citizens hold businesses’ Fourth, everyone means everyone. NGOs, license to operate at their fingertips. Governments, Businesses, Brands, Employees and, yes, the Citizenship can now have The Client Community is embracing this shift. an equal say. A new system of checks and While we are not yet seeing comprehensive balances is now in place – together with ‘Citizen Briefs’, the number of pure consumer a new accountability that will clearly limit plays seems to be on the wane. There is an some of the more unpleasant excesses and increasing acknowledgment that consumer poor practices of the past. brands need the added protection of Public Affairs or Corporate counsel (and often in Fifth, we are learning to live with this Robert Phillips is the UK CEO of a global context). Brand marketers can no new equality; this new equilibrium. This is Edelman and the co-author of a new longer just sell – let alone spin – without the Tripartite Contract referenced above. Wiki Book, which can be found at a true appreciation of the impact this may Within this, constructive dialogue – real www.citizenrenaissance.com have on their company’s license to operate. engagement – will prevail. And PR agencies Likewise, major corporations are finding the – appreciating the Government agenda as robert.phillips@edelman.com brand link and working the same thinking in well as the business agenda, the needs of reverse. Never before have Brand Marketing the NGOs as well as the demands of Citizen has always aspired towards and promised. and Corporate Reputation been closer Consumers, are uniquely placed to deliver. We will have only ourselves to blame if we bedfellows. The implications for agency cannot now make this final step. We need structures and client org. charts are self-evident. Seeking Primacy. a culture shift of our own to match the Opportunities and Challenges societal shift that has, accidentally perhaps, Towards Public Engagement Our time has finally come. PR can now thrust us forwards. If we can be held to A new Communications model is emerging claim a legitimate primacy among all the account for some of the excesses and the – one that we, as Edelman, are broadly marketing disciplines – properly understood darkness of the past, then we can now be calling Public Engagement. To understand within the context of the Tripartite architects of a better future. the model, we need to accept five Truths: Contract and the concept of genuine Public Engagement. Conventional advertising, First, we should recognise that the already constrained by its inability to escape Further reading Consumer as we knew him or her is dead. To from a world of monologue and the 30 • Britain Since 1928: The Strange Career paraphrase Python, he is no longer; he has second spot, may well have its long-term of British Democracy, David Marquand ceased to be. The hard sell of consumerism decline accelerated, as it recognises that it is • Bring Home the Revolution, Jonathan just won’t cut it, in a more responsible, fundamentally ill-equipped to cope with the Freedland more thoughtful, more constrained world of wider communications demands of Public • www.citizenreanaissance.com limited resource and lower spend. Engagement. • www.crowdsurfing.net • www.goodpurposecommunity.com D RISE OF THE C WORD – The Future of PR Second, the Citizen is emergent, if not And yet, the challenge facing PR is equally resurgent. We are all re-discovering the great. Agencies and practitioners need to Citizen in ourselves – recognising our real elevate strategy and strategic thinking. authority and our personal ability and Insight must be properly understood responsibility to effect change; to hold and always quantified. Spin needs to be businesses and brands, Governments and denounced and the shallow world of institutions, to account. We are driving a new celebrity rebuffed. A higher standard of democracy at breakneck speed. ethics is needed, backed by more rigour, more discipline, more content expertise. PR stands at the threshold of achieving what it page 7
  • 8. Over the past 20 years, the climate in waged against it on the infant formula which business operates has changed issue – a campaign that celebrates its fundamentally and nowhere more so than 20th Anniversary this year – to show how in the uK. It is a change that has seen some a small but committed media-savvy and of the world’s most successful companies technology-literate consumerist campaign brought to heel by a single front page article can make such an impact. that criticises supposed corporate bad practice, or being named and shamed by a Political parties and the media have not media savvy NGO, or being mentioned in taken long to understand the power and Parliament by an ambitious MP out to make influence of these groups and the issues they their name. highlight. The changing climate has its roots in the For the media, they provide endless copy demise of traditional political discourse to fill the ever expanding appetite for and the rise of what we have termed content. Harnessing and supporting certain ‘Consumer Politics’ – where business and campaigns gives individual papers and brands are placed centre-stage, facing broadcasters the opportunity to define increased scrutiny and an ever-greater themselves in an increasingly crowded media burden of customer, stakeholder and media market by championing their readers’/ expectation. viewers’ perceived concerns. Consumer Politics has risen as the old Left- For political parties, the rise of Consumer Alex Bigg is Managing Director and versus-Right political ideological battles of Politics is a way of engaging a disengaged leads Edelman’s award winning Public the 60’s, 70’s and 80’s have given way to a electorate and reaching out to key electoral Affairs practice new consensus over the parameters of the groups. One only needs to re-read (if alex.bigg@edelman.com political debate and the fight for the precious anybody bothered in the first place) all centre ground - in which today’s political three political parties’ 2005 General Election The rise of Consumer Politics means that parties fight to prove their managerial Manifestos to understand and witness the business and brands now live by a new set of competence to run the country, and the rise of Consumer Politics and their electoral rules, created by a new generation of closely economy, slightly better than the other lot. importance. inter-connected stakeholders, consumers and influencers, who have been energised citizEn smith and incentivised by the accessibility and immediacy of the web. It is a set of rules that demands accountability and a meaningful and transparent conversation. Businesses ignore – the rise of consumer Politics these rules at their peril. Today’s Communications and consumer landscape means that a business has to be Consumer Politics is the rise of consumerist Other recent examples include Tony Blair’s seen and heard for sure – but must, more movements and campaigns whose aims Big Conversation initiative, which was an importantly, be seen to listen, to learn and are to encourage Government action attempt to identify and respond to such to act. – which is usually code for new or increased consumerist concerns, or David Cameron’s regulation – to address what they perceive social action and social responsibility to be corporate bad practice. This usually platform that placed heavy emphasis on the Further reading involves seeking to curb a company’s licence corporate sector’s role in addressing widely • Microtrends, Mark Penn to operate – be it in the manufacture and held social concerns. • http://www.demos.co.uk/publications/ sale of foods high in fat, sugar or salt; manufacturingdissentbook the promotion and selling of alcohol; a Against this backdrop, no business can company’s green (or not so green) footprint; assume its licence to operate is safe. or how a business operates around the Consumerist groups, political parties, citizens world. and the media all have expectations of responsible and appropriate brand and With the rise of new technology and the business behaviour – and will call to account freedom and power that the internet any organisation that is perceived to have brings, these groups no longer just rely on fallen short. Certain industries – such as a simple letter-writing campaign to the Food, Energy, Waste, Alcohol and Transport local paper. As we mention elsewhere in – have already witnessed the power of the this publication, one locally based individual consumer, but they are not the only ones. can now easily turn into an internet based Today, an organisation’s licence to operate is global coalition containing advocates affected by the behaviours and perceptions against a company and its products. One of everything it touches – including its brand, only need look at Nestlé and the campaign employees, supply chain, carbon footprint. page 8 Public Engagement in the Conversation Age
  • 9. a clouDy FuturE – Cloud Computing and the Future of Technology In Technology, a common request is to things, assemble real things and have real Cloud? As with previous generations of new predict what’s next. Today, looking into the experiences and deliver real services. Go Technology, the industry will need to create crystal ball, the view is definitely cloudy – or beyond sharing photos and share reality.” technologies and protocols to solve these to be more precise a complete cloud obscures challenges. the view. This is not just financial meltdown 3. Develop Influence: In the increasingly angst but more importantly the future of vast interconnected web, understanding Clearly, Businesses will need to be acutely computing - Cloud Computing. who influences (at a global and micro aware of the Public Relations pitfalls of level) and how influence spreads will entering the cloudy future. Yet in the post Much is already written on the subject of the replace the traditional need for control. credit crunch world, the need to get more Cloud and much confusion reigns as to what It will be communicators who can work out of less, communicate more efficiently it is precisely, as well as the issues it raises with influencers to create new ideas and create new business models - all of around personal data security and privacy that will achieve powerful relationships. which are benefits of the Cloud – will mean – hence the cloudiness of the Cloud. understanding the nodes that create many firms have no choice. influence, who then amplifies an idea and For the non-geek, the Cloud is essentially how conversations and stories spread and Further reading made from the combination of datacentres gain momentum will be at the heart of • The Economist, Cloud Computing acting as computing factories that use communications strategy – not just for Supplement, Technology Quarterly, wireless networks to connect people to traditional Public Relations approaches Autumn 2008 software being delivered as an online but truly conversational Brand strategies. • http://en.wikipedia.org/wiki/Cloud_ service. The Economist quotes Lutz Heuser, computing Head of Research at SAP, who refers to it 4. Use Embedded Brains: An extension of • http://www.youtube.com/ as an “Internet of services” but adds that the Cloud will be the ability for embedded watch?v=6PNuQHUiV3Q the cloud metaphor is probably more adpt. computing to allow objects to talk to one • Cloud computing: A catchphrase But despite this complexity, the Cloud will another. A car part will tell the garage in puberty (www.theregister. pervade economies transforming behaviours, via an ip address when it is going to co.uk/2008/08/25/cloud_dziuba/) societies and most importantly the way we breakdown. How we build strategies to • Cloud Computing: Are there dangers communicate. support this interaction between the real to having information infrastructure, and digital will become a key measure software and services hosted on Here are five headlines describing how of success. How Business harnesses and the internet rather than on our own communicators can respond to this change: exploits this transparency will be a key personal computers?, The Times Online, 1. Understand Everything Will Connect: marketing differentiator transforming 5 May 2008 Through the Cloud, information will customer service and expectations. increasingly become connected to sources, related comment, opinions and 5. Exploit Mobile Mania: In the Cloud, Jonathan Hargreaves is European disagreements in a seamless way. This will computing will become more and more Managing Director. A committed make the connectivity of Web 2.0 seem disembodied and so be consumed armchair Rugby follower, he is hoping tame. Internet users will have to become where it is needed. Consumers will be that developments in cloud computing navigators of connections, understanding able to access it at anytime through create even greater opportunities to everything has a back story, some of mobile devices. As a result, mobile engage with the sport in the near future. it spurious but all of it trackable. As communications will take another jonathan.hargreaves@edelman.com professionals we will live in a digital world leap forward and become even more that we must understand in tremendous sophisticated. The communicators that depth and detail. Context will become king master the immediacy and human nature and we will have to be masters of context. of this new model will be the ones that work best in the cloudy future. 2. Focus On Making It Real: The danger of this cloudy world is that everything is Amid these headline opportunities, there shaped digitally but it becomes ethereal. is also a dark side to the Cloud. Questions Consumers or Citizens will look to make are raised about how it will be made secure it real by building tangible connections and, importantly, what happens to privacy between digital and the real world. Our and an individual’s rights to access their success will be shaped by how we make own information when so much personal the Cloud tangible for our audiences data is held by the companies that maintain – understanding the interface will be the the Cloud. One obvious bug bear is who key to success. will control a person’s ability to store and access information kept within the Cloud. To quote a comment businessweek.com: Does a Business have the right to turn “It should allow people to make real off your personal data stored within the page 9
  • 10. re-hum – Next Generation Digital Communicatio Blogs, social networks, online communities and the other elements that together comprise what some have defined as Web 2.0 have really only been around for a few years. But already, the term has become passé, as the always-looking-for-something- new crowd, with their collective gnat-like attention span, looks for the Next Big Thing. If their search focuses on a technology, they will inevitably go astray. Technology will, of course, continue to evolve and advance. Perhaps the web will grow more semantically sensitive and serve us better by anticipating our needs. The move towards Cloud Computing – as described in Jonathan Hargreaves’s article, where all of our own information is accessible to us from anywhere at anytime – will certainly change how we work, play and preserve those experiences. Improvements in mobile devices may soon eliminate the need for desktop, laptop and notebook computers. These are all interesting and impactful technological changes. However, they pale in comparison with the social change that technology has already wrought. And it is this social change that Businesses and other institutions have yet to fully grasp and incorporate into their management and Communications practices. The changes centre around new or exponentially improved capabilities: page 10 Public Engagement in the Conversation Age
  • 11. • Easy and convenient access to a massive To be sure, many of these are no longer relationships, Communicators become the trove of information new ideas and, even so, it will take most facilitators and conscience of the Business • The ability to quickly form groups around Businesses many years to fully grasp them. itself. For now, this is the realm of specialist a mutual interest, even a micro one As a result, any contemplative CEO or Brand Digital Communications experts, but that will • The solution to massive problems or the leader could be forgiven for thinking that certainly change in the coming years. completion of previously overwhelming the future looks bleak. Over the coming year, tasks with no management structures stakeholders will increasingly be the masters The move towards this new construct whatsoever of their relationships with Business. Troubled sets the stage for a hopeful future • The mobilisation of disorganised, times and the inevitable poor performances where Businesses are more responsible, disparate individuals into an impactful will make people even more skeptical and transparent, engaged and successful, with movement cynical of Business voices. Communications at the centre, making the dialogue happen. Access to information drives scepticism Therefore, the imperative to embrace change and is the primary force behind falling and re-humanise both Communications and Further reading public Trust in institutions across the board. broader Business practices will become an • Here Comes Everybody, Clay Shirky No longer must we take anyone’s word even stronger imperative. At a time when • Army of Davids, Glen Reynolds for it. With a click or two, any claim or Consumers are more carefully weighing • TED: Ideas Worth Spreading assertion can be confirmed or shown to be purchasing decisions, shareholders are (www.ted.com) incomplete, exaggerated or even false. Too examining the implications of every trade, manising business ons often, Business has fallen short in clear and and policy-makers are deliberating who to transparent Communications. prop up, the ramifications of whether – and how quickly – a Business moves forward As a result of that scepticism, people are could be extreme. reverting to instinct and, instinctively, we all have an innate ability to evaluate other Indeed, as more and more Businesses begin people. Here again, technology plays an to embrace the new (old) qualities, the ones important role. By facilitating interactions that are slower to do so aren’t simply sitting between people of similar interest, still. They are falling behind. The Businesses perspective or background, technology has that are embracing change are on a journey. created an alternate information resource, And for them, Digital Technology now and one that we find easier to evaluate, trust returns to the picture in the crucial role of and rely on. Viewed from that perspective, it facilitator. is unsurprising that Trust in ‘people like me’ is consistently on the rise. Social networks, blogs, and online communities like Flickr and YouTube are And it is here that Businesses have an now revealed as vital venues for dialogue opportunity. It starts with re-humanising: and interaction with stakeholders rather • Empowering the ‘people like me’ that than mere websites. Google search Marshall Manson is Edelman’s make up every Business to interact results for Brand-related terms provide Director of Digital Strategy more freely with internal and external a critical perspective on reputation and (but he still prefers golf to Facebook). stakeholders and to do so without fear Brand standing, as well as a pathway to marshall.manson@edelman.com • Being more honest and transparent in information. Business practices. Doing so requires, not coincidentally, being a better, more We can take heart that much of what is to responsible Business come mirrors what is passed. Like the High • Admitting faults and failings. After all, no Street shopkeeper of yore, Business will human being is perfect and no Business increasingly rely on Trust and relationships can credibly claim to be formed on the basis of dialogue and mutual • Building relationships with stakeholders respect. It is only the technology facilitating on the basis of mutual gain. This requires that dialogue that has changed. listening and willingness to be responsive to stakeholder input In this, Communicators have a key role to play: by understanding the technology and advising people at all levels within Business on how best it can help them facilitate essential page 11
  • 12. As far as I can make out, the first Crowd meant that in effect the “customer walks Surfers in the rock and roll sense were either the halls” at Dell. And that means better Iggy Pop or Jim Morrison... no one seems to products, services and a Brand that has know for sure. Now of course, pretty much come down from the mountain and is now every pop star with pretensions will at some much more approachable and accessible. time launch themselves off the stage in the They still advertise and use direct marketing, hope and expectation that their fans will but they now also enter into pretty real break their fall, take their weight and pass and demanding relationships with their them hand over hand around the arena and customers and stakeholders. eventually put them back on the stage. The metaphor for Business is a slightly crude one Other companies like New Zealand Vodka I admit, but today voluntarily or otherwise, brand 42Below do it because they are more and more Brands and companies are (or were) small and have little money to having to get used to the idea that they are compete for attention in the usual marketing no longer in control like they used to be and ways. One of their YouTube commercials, that at times they are even at the mercy which was made for just a few hundred of their crowds. And they are discovering dollars became one of the online hits of 2006 that that means having to do some things and was passed around from blog to blog differently and occasionally being dumped and via email links and Facebook groups. on their head in the mosh pit (as it were). Consumers as the media channel (if you can entertain them enough for them to be Forrester have research that shows that 80% willing to play with you) can very quickly of a Brand’s online Communication is not get to scale and of course they carry with by the Brand itself; it is from Consumers, them the implied endorsement of the most commentators and media. Edelman’s Trust important person to any Brand or company Barometer shows that the most trusted – the person like me. source of information on a company is ‘people like me’ (true also in the uK, as well CROWD as globally by the way). The CEO is the seventh most trusted source. And so not only do Consumers now do much (if not most) of the communicating about Brands David Brain is CEO of Edelman Europe and companies, they are also the most trusted communicators. and co-author of Crowd Surfing and – 925 words, so you don’t have to re finds it difficult to wipe the smile from his face at the moment because his 40 It seems inevitable therefore that the plus year obsession with Manchester old command-and-control style of The trick for managers and leaders now City has been rewarded with Abu Dhabi media (advertising, direct marketing and is to migrate their companies and Brands millions... and he is handling their PR promotions) are going to be less effective from the old ways of managing marketing account for Edelman. Personally. In than they were. Many companies recognise and communications to a much messier, fact no-one else is getting much of a this and are indeed changing their more difficult to quantify, trial-and-error look-in. Communication mix, but it also requires a approach where they sacrifice control for new mindset. the credibility that comes with participation, david.brain@edelman.com conversation and dialogue. As Proximo said Some companies like Dell come to this in the movie Gladiator, “Win the crowd and realisation because a “raging mob with you will win your freedom”. Crowd Surfing is pitchforks” attacks them. In Dell’s case this designed to help people with real jobs in real was inspired by one blogger, Jeff Jarvis, but companies do just that. quickly became a movement that at times almost overwhelmed Dell’s online presence And it’s not like the phenomena of the with negative comment in the form of the empowered Consumer is going to go away www.ihatedell.neet web site. In our book, anytime soon. As described elsewhere in Crowd Surfing, we (my co-author Martin this publication, the rocket fuel of Consumer Thomas and I) interviewed Dell managers empowerment is technology (social or 2.0 on the experience of having to enter into and mobile particularly) and it has only just conversation with an angry crowd and started to combust. Consider this: Both my they described how they started to respond children started using a mouse to navigate to people’s anger and frustration at bad web sites like Club Penguin at around the age products and service and how now they of three, about the same time they realised even institutionalise the sourcing of new they could play the games or look at the product and service ideas from the crowd via photos on my mobile phone. I have spoken www.dellideastorm.com, a kind of on-line to enough parents to know that we are not Consumer suggestion box. Michael Dell a family of total freaks in this. The internet says that giving up control by entering into became a Consumer friendly/ useful thing at the conversation that was going on anyway about 1993-4. The first generation then that page 12 Public Engagement in the Conversation Age
  • 13. grew up using these technologies as soon as their grubby little fingers would allow them to were born in about 1990. They are now 18, going on 19 and are going to university and entering the workforce for the first time. They are the first true digital generation and if Brands and companies think that all this new stuff has been disruptive so far, then they better hold on to their hats, because we have only just begun. It is the companies and managers that learn to crowd surf that will survive and thrive in this new Consumer empowered age. D SuRFING ead the 60,000 in the book Further reading • www.sixtysecondview.com • www.crowdsurfing.net • www.dellideastorm.com page 13
  • 14. Newspapers make for depressing reading, driver of productivity as innovative products Action Plan for the Creative Industries. The with alarming headlines such as “uK faces account for a greater share of turnover. report sets out a number of new initiatives to worst of global recession” (FT); “Deep and help the uK’s Creative Industries to flourish, lengthy recession takes shape as uK output Further, as we move towards a predominantly including 5,000 new apprenticeships to figures shrink” (The Times); “Recession to knowledge based economy, the fact that help people from all backgrounds make the hit Britain hardest among Europe’s leading the Creative Industries’ workforce (the most of their creative skills, and the creation economies” (The Guardian); “Employers sector employs over 1.8 million people, of C&binet, the Creativity and Business gloomy on job creation” (BBC News)… and, it including those working in related creative International Network, a new forum that will would be fair to say, worse will follow. While occupations) is highly qualified with over bring together Creative and Business leaders. some pundits debate that such headlines and 49% of employees having at least a degree resultant coverage have served to exacerbate level qualification (compared with an unlocking the potential of the Creative the situation, one cannot disagree that we economy wide average of 31%) surely points Industries cannot be ignored as we look to find ourselves at the mercy of turbulent to a trend for growth? The Work Foundation plot a course back to economic stability – financial markets which will have a deep describes the knowledge economy as the and it will be essential for both Government rooted and long lasting effect on us all. story of new technologies combining with and Business to work in partnership to human brain power to transform the basis maintain and create the most favourable So as we attempt to plot a course back to of economic activity; CEO, Will Hutton, conditions in order to stimulate innovation, economic stability and renewed prosperity in believes that the knowledge economy, the creativity and dynamism. its truest sense, should we be looking beyond central tenet of the Creative Industries is the faltering Financial sector to the Creative increasingly important to the uK’s financial Further reading Industries and ask, can they provide us with a performance. • Staying Ahead: The Economic way forward and the hope of bolstering the Performance of the UK’s Creative crunch? Could they drive potential growth The Birmingham Post recently ran an Industry, Will Hutton and the Work for the future? interesting byline article on the future of the Foundation on behalf of the Dept. Creative sector (Creative Industries Well- for Culture, Media and Sport The impact of the Creative Industries as a key placed to Beat Credit Crunch, 31 August • From the Margins to the Mainstream driver of GDP in the uK is rapidly emerging 2008) by Lara Ratnaraja, Sector Development – Government Unveils New Action Plan and transforming the perception that these Director of Creative, Cultural and Digital at for the Creative Industries, Dept. for businesses play a Cinderella role in the Business Link in the West Midlands, who Culture, Media and Sport economy, sitting on the outskirts of true made the point that: “Companies, which • Unlocking the Potential of the UK’s Business. Why? Well it is hard to argue with can show a strong yield on investment, Innovators, Cass Business School and the facts. The Creative Industries grew by an will still have room to grow as long as they Microsoft average of 6% per annum between 1997 and can evidence that their knowledge-based • Creative Industries Well-placed to Beat 2005 (which is twice as fast as the rest of services are in demand from consumers and Credit Crunch, Lara Ratnaraja, Sector the economy) and in 2005 accounted for £60 clients. In a nutshell, companies that exploit Development Director of Creative, billion or 7.3% of Gross Value Added (GVA). their intellectual property fully will emerge Cultural and Digital at Business Link, Total creative employment increased from from the crunch as market leaders.” Birmingham Post, 31 August 2008 1.6 million in 1997 to 1.9 million in 2006, Thinking our Way ouT representing an average of 2% per annum, compared with 1% for the whole of the economy over this period. Moreover, the uK of The CrunCh Creative Industries outperform every other European state and have moved to centre stage of the economy. Of course the Creative Industries will face – could the creative industries hold the solution? the same challenges as every other industry – including securing investment, debt Innovation plays a key role and, between Pamela Fieldhouse is Managing management and access to private equity 1995 and 2005, start-up companies Director of Edelman’s Corporate – but could it be that they are better placed accounted for 48% of turnover growth with Reputation team. She has been to survive the crunch and display the most software and computer games contributing passionate about understanding how promising trends for potential growth? the most. A recent report from Cass Business the human mind works and how to School and Microsoft, unlocking the influence behaviour change since Successful Business has always been Potential of the uK’s Innovators, predicts that studying psychology at university. dependent on firstly predicting market we could add £9 billion to the uK economy pamela.fieldhouse@edelman.com trends and in turn possessing the flexibility simply by unlocking the talent of the hidden and confidence to respond to them. This entrepreneurs. has never been more poignant than for the world of Business today. However, it is Another critical factor will be investment in arguably more difficult than ever to achieve. skills to ensure we have the right people with The highly innovative nature of the Creative the right skills to meet the demand and drive sector would suggest they are better able to growth. The Department for Culture, Media diversify their products and services. They and Sport is doing just that, as evidenced are also more likely than the average firm to in a recent report, From the Margins to the user wider innovation, which is an important Mainstream – Government unveils New page 14 Public Engagement in the Conversation Age
  • 15. Think bravery before budgeTs – Creativity and Brand Bravery One of the most talked about opportunities turn, represents accelerated risk. and realizing the power of a strong brand that the changing economic climate will It is the willingness of Brands to take risks story to contribute to culture. Collaborate telegraph for Communications is a greater that has always had the most significant with cultural institutions to build brand emphasis on innovation. Agencies will impact in getting creative ideas off the experiences and engage new audiences. be expected to make more from less. It page. The real elephant in the room is is anticipated that this will encourage not the need for greater or consolidated Demonstrate Power and Critical Mass stronger and clearer focus on creativity, and creativity or the confidence in, and – with ideas that work across a multitude higher creative expectations from Brands. understanding of, new authors and new of channels, avoid thinking simply of channels – but the climate and tolerance Consumer PR t, everyone is a consumer This is a good thing. Higher creative for risk, as guaranteeing KPIs and ROIs now, show and understand integrated expectations are what our industry needs. becomes increasingly pivotal in getting platforms. Great ideas should always be the heartbeat campaigns that vital rubber stamp. The real of PR campaigns no matter what the challenge is not Budgets, its Brand Bravery. Show Robust Business Nous – that you channels or who the editors are. know how to track and demonstrate Creativity could easily be forced to play measurable results, crucially, illustrate how But is this emphasis on creative primacy second fiddle to ROI as Brands seek water the idea can effect sales. going to pose a significantly changed tight solutions. As the tussle for spend working or business environment? morphs into a battleground between the Integrate and Collaborate - Consumer, Don’t we always need to be creatively strength and vision of an idea and the Corporate, Digital, PA, the best solutions will outstanding and doesn’t every pound of commitment and comfort of guaranteed offer every service that the Brand needs. marketing budget spent need to deliver delivery – the safe way to do things versus maximum return anyway, and should this the risky, Brand Marketers should lead the These are all obvious considerations, and not always be the case? march by showing and making Brands feel that is ultimately the point. In the age of that they can have both their cake and eat it. decision by committee and fear of waste Marketers are used to working with limited (money, time or otherwise), the onus is on resources and should always work on the We all know that PR is unique in its ability us to work more effectively with Brands to principle that the best ideas, campaigns to stretch and engage audiences across a deliver visionary creative campaigns that and stories are not always the most multitude of channels, to influence and telegraph a robust success narrative from expensive. Take the seminal 1994 and 2008 shape culture and deliver 360Brand-owned inception to completion. JCPR Wonderbra campaigns as examples of campaigns. We truly now have the power huge and powerful campaigns delivered on to Think Big. Further reading small budgets. We do not need to invent • Juicing the Orange: How to Turn new ways of working for these changing But do we have the ability to responsibly Creativity into a Powerful Business times. The best agencies should always and impressively convince Brands of Advantage by Pat Fallon, Fred Senn relish the challenge to produce exceptional this? Do we need to better interrogate • Branding Only Works on Cattle: The work – whatever the financial resource and and articulate how we demonstrate and New Way to Get Known by Jonathan whatever the financial context. communicate ideas to help Brands show Salem Baskin value and ultimately give them what they We have read much about the Economics need to make a great idea fly? of Less, the Rise of Consumer Politics, Ruth Warder is a Director at JCPR and and the Conversation Age. In the new The war on mediocre but safe solutions has been integrating brands with culture rules of Consumer Engagement, less means can only be won if Marketers can establish and entertainment for the past eight years. more. The perceived new creative dawn and develop a dynamic framework to ruth_warder@jcpr.com should look to define itself in parallel with demonstrate the Business value and stretch these principles and seize the opportunity of an idea – beyond traditional expectations, for less to mean creatively more, not traditional routes, traditional results and, just from a spend perspective but from most importantly traditional, channels. a thought perspective. As Brands bravely embrace the world after the 30 second Four Ways to Better Communicate Ideas spot, they should seek to consolidate with and Influence Decisions: courageous, simple, uncluttered thought. Build Cultural Relevance - root ideas in the But belief in the simple and the new has cultural Zeitgeist. Stay current and grow always required robust single minded the potential of the idea by harnessing conviction and pioneering spirit which, in page 15
  • 16. A paradox is in play at the heart of today’s placed upon their interactions with their society. As individuals, we can consider lay and patient audiences. On the other ourselves more independent than ever hand, the world is moving on regardless; before, yet the opinions we hold and the and not just the world at large but their actions we take are increasingly driven by world too – people, patients, doctors and a sense of the wider societal context and advocacy groups are all becoming more consequence. The big issues, in politics, the engaged, demanding and democratised in environment and the economy sit at the their information-sharing and expectation of centre of individual concerns, influencing dialogue. many of our daily decisions. Engaging wit – Health in the Conversation Age As we describe earlier, the most significant According to the Health Engagement catalyst for change has been the Barometer – a new study by Edelman of digital revolution, which has effectively 5,000 people (1,000 in the uK) – more than democratised dialogue, debate, opinion half of adults (55%) in the uK say they are and ultimately, actions and procedures. becoming more actively engaged in health Individuals are invited - and are inviting issues, with conversations about health more themselves - to participate in conversations important to them now than in the past. at all levels on issues of all magnitude. Mike Kan is Managing Director of We are now active citizens, not passive The Health Engagement Barometer also Health for Edelman in Europe. He is also consumers, and we are recognising how the confirms that pharmaceutical companies passionate about design. He is obsessed digital channel gives us the authority and must embrace the digital revolution. Seventy by its role in shaping physical, social and ability to realise the responsibility of being nine percent of uK respondents regularly literary constructions of everyday life the change we want to see. turn to online sources when seeking from the 1840s to the 1930s. information about a health issue, and 16% mike.kan@edelman.com Almost every facet of society that regularly turn to blogs for information. communicated in the traditional ‘top- down’ pyramidal system is finding success But engagement goes beyond what people by letting the citizen in. Barack Obama’s want – it is what they expect and demand overwhelming presidential victory, for of companies in today’s world – and is the example, was driven by a desire to “speak fundamental driver of Trust. Seventy percent directly to his supporters” in the words of his of people say Trust is the most important chief strategist, and allow them to become factor with health companies, yet only 8% involved and empowered in the campaign. of people in the uK strongly trust health Initiatives such as myBarackObama.com, the companies. Meanwhile, those who are more social networking site with approximately engaged in health are more trusting of health 1.5 million active users, were “the central companies overall (60% vs. 53%) and more nervous system of the campaign,” according likely to be an advocate for them (68% vs. 48%). to Julie Germany, director of the Institute for Politics Democracy at the George So how can the pharmaceutical industry Steven Spurr is Managing Director, Washington university. The success is engage its stakeholders? The digital space Health. He read Economics at the reflected in the contrast between Democrat cannot be ignored – 51% of uK respondents LSE and it was here that he became and Republican levels of engagement, as in the Health Engagement Barometer said fascinated with the concept of perfect evidenced by Obama supporters turning up online methods are their preferred method information and its role in resource at rallies sporting lovingly home-made t- of communication with companies and allocation. shirts and banners, while McCain supporters organisations involved in health. While it is steven.spurr@edelman.com usually wielded the homogeneous, party- a difficult step for any major corporation to made placards and printed-out badges. ‘let go’ and cede the control they have been used to (and this is particularly true in such So why is it that some elements of the a regulated and potentially litigious world as health sector – pharmaceutical companies in health), the pharmaceutical industry must be particular – are struggling to countenance braver and overcome perceptions of Digital dialogue with the emerging Digital Communications as something to be feared, Democracy? In one regard, it is tempting mistrusted and that, if ignored, might just go to excuse them from the new world order away. due to the legal and ethical constraints page 16 Public Engagement in the Conversation Age
  • 17. ultimately, while the world of health is complex and multifarious, it has a simple requirement at heart: people who require healthcare want the right treatment and advice from people they trust at the right time and for the right ‘cost’ (whether in sterling or side effects). Engaging with this requirement is in the interest of all stakeholders in health, and finds its expression in conversations around access to medicine. th hEalth citizEns The stakes are high and the time is right for the pharmaceutical industry to be braver. While regulatory and resource constraints are very real, there is significant scope for companies to prioritise their engagement in this conversation and to build Trust with their citizen stakeholders to secure their continued licence to operate. Ensuring appropriate access to medicine is a complex and fragmented process, and often too narrowly understood. Stakeholders in health are often found working in silos and sometimes to their own detriment. Communications specialists are uniquely positioned to weave these strands together: linking health economics, medical, media relations, pricing, reimbursement, advocacy, policy and disease awareness functions within pharmaceutical companies to facilitate consistent, transparent and multi-directional dialogue with the citizen stakeholders that determine their success. The engagement is essential across all channels and we know the stakeholders are increasingly online. It’s no longer an option. To secure the future, the pharmaceutical industry must take a deep breath, embrace this new channel and enter the brave new world of Public Engagement. Further reading • Edelman Health Engagement Barometer: www.engageinhealth.com Page 17
  • 18. Medical Communications and Medical Acambis. However, this consolidation alone with their stakeholders about their drugs Education are often used as synonymous is unlikely to address the need for late in development. Successful Medical terms – and in part that is quite correct. All stage products, as most of the pipelines Communications is more business critical the efforts of a Medical Communications acquired in this way still require significant than ever. Those companies who embrace agency are directed at educating their development time. This is also compounded a more open dialogue about their drugs audiences, who are primarily practicing by the fact that some of those biotechnology in development in innovative and more Health Care Professionals (HCPs). Education based drugs that have reached market will compelling ways with those professionals takes on a different onus, however, when be facing patent expiry, and the spectre who are ultimately at the forefront of this is officially recognised as a Continuing of so-called ‘biosimilars’ (the term used to treating patients, will reap the rewards of the Medical Education (CME) or Continuing describe generic biologics) is looming large. new terms of engagement. Professional Development (CPD) programme. Pharmaceutical companies will need to In this respect, different rules and regulations ensure that their R&D pipelines are not too apply than in the broader Medical narrow in order to maintain the flow and Further Reading Communications perspective. The focus of momentum of getting products to market, • Edelman Trust Barometer: this article is on Medical Communications. although undoubtedly some will run the risk www.edelman.co.uk/trustbarometer of cutting back on R&D during the current • PharmaFocus Although Medical Communications is a financial crisis. • SCRIP highly regulated environment – with the majority of the Communications targeted at Against this background, there is no doubt HCPs and not appropriate (or permitted) for that pharmaceutical companies will be Consumer audiences – the time has come guarding their relationships with their HCP for pharmaceutical companies to embrace advocates with great care. Strong advocates the same principles of engagement and at the developmental stage of a drug’s conversation as other industries. This is all lifecycle are critical to safeguard its long the more important as the pharmaceutical product development landscape is changing rapidly – with fewer blockbuster drugs, companies need to find more compelling ways to communicate the benefits of their mediCal products in real clinical practice. Conversation is now at the heart of CommuniCaTions in any engaging Medical Communications programme. Enabling and driving peer-to- peer dialogue is far more powerful than The ConversaTion age – where next with health care Professionals? relying solely on the ‘old model’ of driving information from the top opinion leaders down to the broader HCP community. Trusting the source is the cornerstone of term survival, and we should expect medical any successful Medical Communications communications to play an increasingly David Noble is Managing Director of programme and, as the Edelman Trust important role in maintaining these BioScience Communications - Edelman’s Barometer has shown, people are more likely relationships at a time when companies specialist Medical Communications to trust ‘people like me’, so having strong will be seeking to ensure that they realise Division. He has extensive experience professional advocates to drive peer-to-peer their ROI on their later stage compounds of the pharmaceutical industry having Communications is a clear advantage for in an increasingly competitive market. started out as an R&D biochemist before pharmaceutical companies. Transparency continues to be the watch moving into communications. word in developing these relationships, david.noble@edelman.com In the current economic climate, engaging so taking a responsible approach and in conversation with these advocates will be acknowledging the independence of HCPs is increasingly important. A fairly long term paramount. It is only by encouraging debate ‘scare-mongering’ headline in much of the that pharmaceutical companies can achieve pharmaceutical press has been focused this with any real credibility. around the lack of robust pipelines in many major pharmaceutical companies, with some While the current economic turbulence high profile Phase III trial failures adding fuel will undoubtedly have an impact on R&D to this. In the last few years, there has been budgets, pharmaceutical companies cannot a great deal of consolidation in the industry afford to jeopardise their long term prospects as pharmaceutical companies seek to by cutting back too severely. This would both bolster their pipelines through acquisitions, damage their commercial outlook and their most notably of R&D driven biotechnology relationships with their key advocates in companies. Roche, for example, increased healthcare practice. their stake in Genentech to take a controlling share; AstraZeneca acquired MedImmune Furthermore, in an increasingly competitive and Cambridge Antibody Technology; and market, pharmaceutical companies will most recently, Sanofi Pasteur acquired need to embrace a more open dialogue page 18 Public Engagement in the Conversation Age