Qantas v Unions: Pot or Kettle blacker?

Regardless of the outcome, reputations will be damaged in the boxing match featuring "Qantas vs the unions".

It remains to be seen whether the pot, or kettle, emerges with their name more blackened.

Both the unions and Qantas are likely to suffer some tarnish to their reputation given actions by both mean they are failing to deliver on basic service, let alone the brand promise.

I'm not an aviation or union expert, but I'm fascinated by the public aspect of the battle. Here are some observations of how it's playing out and how the PR is being handled.

Qantas

Qantas is actually pretty good at PR. They've always seemed to be great at getting their message out - quickly, cleanly and with great execution discipline, and in keeping with community standards.

Which makes it all the more interesting (what really happened behind the scenes?) that today's shut down has drawn a proper bollocking from Government. Normally such a bold and big move would have been discussed with government, and the subject of much behind the scenes consultation - all designed to avoid exactly the reaction they got today.

Now that the Board and CEO have gone with what one online forum thread describes as "the nuclear option" it will be interesting to see how good they are at crisis communication while on the offensive. And whether they have a PR adviser or firm on board, or internal folk, with the ability to steer through this with the least damage.

Because damage there will be...more on that later.

Qantas has just moved from "victim" to "aggressor" in the public psyche - not only because they have "gone nuclear" but importantly because they've just stopped serving customers. When your customers are families trying to reunite, people with medical issues and travelling tweeters, what comes next will fill PR, crisis management and stakeholder theory text books for some time to come.

And I say "crisis communication" when talking about Qantas because it is, by definition, the communication needed (and often not employed properly) when the issues threaten the very continuity, or fundamental value and sustainability, of the organisation.

The Unions

The union movement is also great at PR - not necessarily the kissing babies style community PR but that great sport of intensely fought campaign style media designed to win both the war and the battle.

When industrial action stops flights it's harder for the unions to stay on the right side of public opinion.

Now, Qantas have handed the three unions representing baggage handlers, catering staff, engineers and long haul pilots, a huge advantage - the big group of people (passengers) who are now as cranky with Qantas as the unions are.

Its an advantage unlikely to be wasted if tonight's Fair Work Australia hearing doesn't produce at least a ceasefire to enable all parties to cool down - and flight service to resume.

News media

The Sydney Morning Herald is running a good mash-up style news feed here, with webcam from Qantas's currently empty check-in areas, regular news updates, images and comments from passengers via twitter and email.

The ABC's coverage is similar but with far greater weight to images and cool inclusions like twitter sentiment (62% negative on Alan Joyce when I saw it) through storify.

Analyst Tom Ballantyne says it was Qantas's only real option. Maybe so. But possibly it could have been executed with better behind-the-scenes stakeholder engagement - and they'd be coping less of a public blackening now.

Tony Abbott's line that it's a national repuation issue was echoed by commentator Greg Sheridan. Sadly, thanks to the newly installed paywall around The Australian's content you'll have to pay to read the full piece.

Online reputation management

It would appear the Qantas team is somewhat under resourced, with tweets outbound but, as one SMH reader notes, no staffers responding to stranded passengers via social media.

Not a great triumph for brand management online. All very well to offer smart-alec comments from the side line but if I were working with Qantas on this I'd have strongly suggested a social media desk staffed by (in this order of preference) management or customer service people who are social media savvy, their PR firm or an outsourced call centre used to dealing with investors or upscale customers - and yes they do exist and can be deployed quickly. It's really not that different to the media desk and elevated customer inbound call capacity that's a standard part of every crisis management team.

BlueChip has a crisis management desk wired and ready to go...it seats a dozen people in close (but not too close) proximity so that communication can be exchanged quickly, answers developed and signed off on the fly and the team acts as one. Why is Qantas's equivalent not given permission to go further than one-way - taking passengers at least on the return journey in social media?

All those sympathetic outbound passenger tweets by Qantas (had they happened) would have helped tip Alan Joyce's twitter sentiment (and more importantly Qantas's) back into the green.

I'm guessing that having bet the farm on this move Alan Joyce was more worried about other alligators in the swamp than his own customers.

And yet neglected, those cranky flyers could yet pay Qantas back horribly for failing to provide swift, helpful responses in the right medium ie the one customers are using to vent, ask for help or simply share their latest news.

That's the whole point of the democratisation of influence we've seen with the rise and rise of social media.

Too few senior people (Boards and leadership teams) in financial services don't yet appreciate just how far reaching the evolution of online communication is - and that yes, it does reach into the boardrooms and mahogany rows (or well-lit hot desks) of those formally in charge.

At least Qantas is tweeting...even if its only one way.

It's too early to call it for either party in terms of media and public sentiment.

If I had to guess I'd say media will call it as the online sentiment does, at least short term.

Events at Fair Work Australia may yet see Qantas hailed as a reluctant hero - fighting back only to secure their survival.

Either way it's a public example of how PR wars are now fought, and won or lost.

Financial services Boards, CEOs and senior management could learn a lot by watching it unfold online.

Flashback Friday

With the weekend now about ten minutes away I wanted to do something a bit unusual. And that's talk about us. Not me, mind you. Us. Otherwise known as BlueChippers. 


This week, as we've worked together to hit home runs for current clients, pitch to new clients and improve how we work, a few things really leapt out. So, at risk of having you see me as a a bit soppy, I want to pause, and to 'flash back' to some great moments for our team.


It's different here
Everyone says that when they're recruiting right? For example: "We're different. We do x, y & z for our people. We really care." And then by week three you're wondering how they even made that stuff up, let alone said it with a straight face. 


But here's what our people (not me!) say:


1. The values are real - respect, integrity, persistence, excellence - with actions behind them 
2. There are no politics
3. People tell the truth even when it hurts
4. You have a real opportunity to do your best work and to grow personally and professionally
5. We have fun and laugh together...


Although at midday today when we were all heads down, hands on keyboard you might wonder about that one!


A star team...not just a team of stars
"You know it's harder to get a job at BlueChip than it is at [insert name of leading investment bank here]" said a well known recruiter recently.


Well actually it might even be harder because not only do we hire hungry, humble and smart people, we are uncompromising when it comes to "fit". And by "fit" we don't mean a gender, cultural or educational background or personality type. We mean "fit" with our values. 


While we do unashamedly go after the best people in the market, we want to only work with other people we want on our relatively small "boat". 


People who say stuff like:


- "I don't want to delegate that to him/her because it won't give them enough challenge"
- "We can do this better...here's how it might work"
- "So and so did a really good job on this" and (yes, it's true)
- "We shouldn't charge our client for that because..."


Doing our best work...so clients get REAL results
When we're recruiting and an entry level candidate says "I don't want to do that fluffy kind of PR", they suddenly have our full attention. 


People who are already BlueChippers want to make a difference, do their best work and achieve a great outcome for clients.


They hate fluff, they loathe tactical-only campaigns, and they always want to understand the big picture. 


In many ways, while the recruiters think we're mad, BlueChippers are actually people who already work like we do. Our culture calls out to the right people.


They're people who want to do great work. And they are prepared to hear feedback in order to get better and better at what they do. 


So when something's not working, they call it out. To our clients, their colleagues or their boss. We call it (full credit to Patrick Lencioni) the "kind truth". One set of words to describe giving feedback to each other is this:


"Bad news does not improve with age. But the kind truth improves with observation". 


It hurts way less when the person giving you feedback cares, and has carefully observed what's going on for you. But still delivers exactly what you need to hear, knowing it might sting.


Valuing values
This week I've marveled at the ability, the team spirit and the talent here at BlueChip. 


But most of all I've been humbled by the evidence of our values at work. 


They power our team, they help us reach the stars for our clients, and they ensure we enjoy the time we spend with each other.


Above all, values help us all "be the best we can be".


Happy weekend BlueChippers - whether you work here yet or not!

The sweet spot remains (online) for financial services PR

After a lively discussion today with a group of senior corporate affairs people in financial services I thought I should check back to a few things Paul Cheal and I said in our first financial services social media seminar in 2009.

Re-reading this post it's interesting to see just how much is still the same...and fortunately a lot of what we said then held true, or still applies. Take this snapshot for example:

- choice of information channels & sales channels will proliferate…
- at the same time the rise and rise of social media means choice of marketing tools can be overwhelming.

 

Where to start?

By taking the same principles we learned in traditional PR, communication and marketing online – and playing by the new rules of the social media world.

The sweet spot for financial services is online PR.

By online PR we mean:

1. Quality and quantity content that earns you search engine superiority and viewer attention

2. Communication direct to clients in both institutional and retail marketing

3. All linked back to an effective website AND

4. Engaging your audiences with the next “P” in financial services marketing – philosophy.

Because in the new digital democracy it will be what you stand for, what you do and how interesting you can make it, that earns you the attention of the people who matter most to your business.

Download BlueChip Communication's ten steps to online PR for financial services here.

Women in banking and finance: some progress but far to go

Some 600 financial services folk gathered tonight in the Westin ballroom to hear from Penny Wong, Federal Minister for Finance and Deregulation and a stellar panel, including company director Carolyn Hewson and Adam Spencer, ABC702 host and panel moderator.

The Deutsche-sponsored event heard from one of the bank's senior executives who readily conceded the bank's own gender outcomes remain disappointing, cited recent better results on ASX boards as an example of what can be achieved and called out 69 of the top 200 ASX listed companies who still do not have a single female director.

Keynote speaker Penny Wong, a self-described supporter of women in banking and finance, talked of bringing together women and men to achieve equality.

A simple idea, said Wong, and one that we'd not have thought was an issue in 2011. Improvements have been made said the Minister, but the job remains largely unsolved.

The statistics are depressing, including the fact that in finance and banking (Australia) less than four percrent of CEOs are female.

It's one thing to talk about it, and another to make it happen, says Wong. And yet it's essential to our nation.

With a backdrop of economic change, and an aging population, there is a real need to increase workforce participation - and to encourage more women into the workforce, said the Minister.

This is a nation with a long standing commitment to equality...and yet there must be reasons women are not getting through the ranks. How do we say to young women "gender will not be an impediment?" asks Wong.

Particularly when implicit norms make it hard for women to participate equally.

In the face of 13 per cent female board membership, how can we continue to say merit is the issue?

Government can also help, perhaps via the right forms of assistance. Board appointments are particularly key, says Wong. So how can government help? Perhaps by providing qualified women with their first board position. With opportunity, women will develop the skills needed to progress up the ranks.

Carolyn Hewson cited her personal experiences of struggling with childcare and work commitments, and her belief that we are finally, and slowly, doing better.

"I used to make excuses. Now with over 55 per cent of graduates being women - for over a decade - there are no excuses left" said Hewson.

So globally who is winning? Norway because they mandated 40 per cent minimum of any gender on boards. From a CEO point of view the US probably does the best. Former communist nations can be the surprising winners, thanks in part to state-sponsored childcare said Deutsche's head of diversity.

What of the business case? Companies with a greater number of women on their executive committee have, according to one study, a 40% greater return on equity said Hewson.

So to some answers...

- Male role models who take parental leave

- Flexible childcare..perhaps a nanny culture similar to Europe or Asia

- Don't internalise the risk, says Wong - sometimes women don't put themselves forward because the environment has taught them not to

And simply focus on how women are hired, promoted and retained says the Deutsche global head of diversity.

In concluding her opening address Wong shared a comment her younger sister made about their father. Taken to heart in more Australian homes it would perhaps result in better outcomes for the next generation of capable Australian women.

"He never wanted less for me than he did of his sons." And so it should be for all women.

I attended the 2011 Women in Banking and Finance Annual Forum as a guest of independent corporate advisory firm Pottinger.

Know thy consultant...and yes, the earth did move

PAICR wrapped up today with the traditional conference closer: a panel of asset consultants and a question and answer session.

It was an intense session...made slightly more so as the earth, or at least the building literally moved, during the final part of the session.

There was no more powerful example of the permanency and ubiquitous nature of social media as immediately post-tremor ("Are we safe here?") everyone hit the iPhone or Blackberry to find out what happened.

At the time of writing I still don't know whether it was just a very big train, a minor earth tremor or a collective moment of shared excitement about what the consultants had to say to the audience of asset management marketers.

Here are some highlights of the discussion between the PAICR audience and consultants Cynthia Steer (Russell Investments) and Bryan Decker (Clearbrook).

Q: So what of the (almost dreaded white paper)?
Maybe it's dead suggests one senior consultant. Give me, instead, they ask, short briefs. And your view on the implications of market movements - not more commentary on the movement itself. In other words, the condensed and value-added version, of your thought leadership.
Even better, be in the news. You need, says one consultant, to be in the FT. We want to see you, in these uncharted times, in the dialogue between the economists and the fund managers. There may not be a real pathway in this market but the conversation is important.

Q: What do you use manager websites for?
Not as much as we should, came the answer. Webcasts...and some other stuff. In uncertain times make sure your webcasts can deal with a higher number of attendees.

Q: What's your expectation on timing eg the US downgrade?
Bond managers better be fast with their guidance...even if it's not perfect. Same day is good. Two weeks later is probably useless. We don't mind if you get it a bit wrong, according to one panelist. But if it's cogent and clear, get it out regardless.

Q: What sort of communication works?
Update your PowerPoint book every six months in fast changing times. Show us how you've evolved your thinking.

Q: To what extent do the numbers tell a story?
If the qualitative data (team, organization structure, alignment) doesn't 'jive' the data won't get you there alone say the consultants. In other words, we've heard it all before: every new manager has a great track record. But, as just one example, how's the fit (or chemistry) between the fund and the CEO? And what's the full story behind, for example, the revolving door of new hires? Tell us the truth, not the spin. We've heard all manner of BS, so we're listening for the dissonant chord when something in the story doesn't quite match the rest. So don't bother with the glossy version...we'll take warts and all over that any day.

Q: How technical is too technical?
Well some new consultants might need the dumbed down version but if your consultant audience grew up in the swaps and derivatives market then show them the trades.

Q: Ever hired someone on simulated performance?
No. There's nothing like the taste of real money. Good and bad. As a consultant I remember that I'm there for the guy who may never earn more than 70k a year for life. Or an endowment that needs the money to fund their work.

Q: What should we do as we approach capacity?
For the first time we're at capacity constraints in a number of areas says one consultant. Yes, it's a real issue. And yes, we're open to you starting a new strategy. But give us the down and dirty version - the good reasons why it makes sense and why you think it will work. Because we've seen it go wrong plenty of times.
It's an interesting exercise in firm integrity. How you handle it is key. Particularly given we have our notes from the last ten years we've been meeting with you and hearing about your philosophy and what you've been saying about how you're going to manage money...and how much of it.
There's some beauty in staying exactly where you are today.

Q: If you're a manager with only two or three strategies how do you approach asset consultants?
Carefully!
Know exactly how your offer fits their need. Do your due diligence. Emphasize the advantages of being small. With capacity constraints in the market today you may well have an edge. But know who you are marketing to.

This is the final post from BlueChip Communication at the PAICR conference in New York on 22 and 23 August.

Social media breakout: PAICR 2011

Judging by the audience response in this session, most of us are using social media personally, but many are not there as financial services companies or institutions.

Pretty much the same as Australia. And pretty much, I'd suggest, a fleeting moment in time.

Deborah Well of Harbor Capital Advisors chaired the session that Vanguard's Eric Haberacker and I spoke at.

Newsflash...presentations by fund managers aren't watched a lot on YouTube but the eTrade baby is.

The Vanguard YouTube channel is a great one to learn from.

Here are a few things that make it work: videos are engaging, short and well produced.

Stay true to your brand, says Haberacker. Other guiding principles include being authentic, transparent and candid; one size does not fit all; keep in line with regulations; humanize Vanguard through content; be an investor advocate and "experiment-learn-evolve".

Three key considerations for Vanguard in making social media work are these:
1. Social media content impacts brand reputation - make PR a critical partner because they know and manage the company 'story'
2. Speed is critical - expedited turnarounds are the norm
3. Content classifications - static and interactive content can follow different approval processes

And today's inside tip: Do you have to spend $200k to get your own YouTube channel? No. AT least not if you're already doing business with Google.

I'm also tweeting (when coverage allows!) from the 2011 PAICR conference as 'Carden'.

"I have no idea what I'm doing": the marketers' quandry

Welcome to online marketing in financial services. While the industry, for the most part, hasn't been fast to adopt digital marketing or social media, it's still bewildering territory at times.

"No corporate function has evolved more than marketing" said Razorfish's Ryan Alderman, quoting McKinsey (McKinsey Quarterly 09.2009).

It's no wonder marketers in financial services feel lost.

To do justice to the presentation, which was the best I've seen this year on social media, I'd have to share every slide and my own observations ... and will do so over the next few weeks with many of you.

Here is a taste of the insights shared by Alderman in today's opening session.

Financial advisers
An estimated 46 per cent of financial advisers own iPads (which were launched 18 months ago).

What they expect from their interaction with financial institutions says Alderman, is:

• World class experiences regardless of channel (traditional or virtual)
• "Always on"
• Near real time relationships
• Multi-channel...everything. Communication, service, information. You name it.

Consumers
We are, according to a Harvard Business Review study, consuming 12 hours of media in a nine hour period - thanks to multi-channel simultaneous consumption.

The way our customers want to engage with us is different - and it's more likely to be about the conversation than the content on the website.

At the same time our norms around financial services are changing...consumers, says Alderman, are morel likely to share previously personal information about finance, including our choices, experiences and, critically, recommendations.

What does that really mean?

It means that thanks to our ownership of multiple devices, and the increasing availability of multiple media across devices we are splitting our attention across devices and using multiple technologies or devices at once. Maybe you're running a phone with email and browser at the same time as watching a webinar...and our customers are doing the same. Think here browsing the Internet or Twitter updates while watching TV.

The cost of attention just went up - massively.

Against this backdrop it's even more important for marketers to understand "context" as well as content.

Why "conversation" trumps broadcast...and paid
Some other numbers thrown out today spell the death, or at least decline, of paid media. I've yet to source these numbers so offer them with a health warning...

• 75 per cent of people believe companies lie in ads
• 77 per cent trust financial institutions less than they did last year
• 38 per cent believe companies will do what's right
• 15 per cent of people enjoy the ads as much as the program - guessing that's TV only

What hasn't changed?
All that is well and good. But the fundamental goals of marketing haven't changed. How we go about achieving the goals has changed. And will do so, ever faster. So get learning.

And remember this says Alderman: advertising in not marketing - stop confusing them.

Marketing is now about creating brand engagement across media. So find an audience (don't create another destination or website), bring creative and technology together, learn from integrated analytics. And from those who've been before us.

Ones to watch?
At least in the United States, Alderman cites American Express (particularly for their small business digital marketing), Fidelity, Vanguard and Pimco.

How did they get there? Trial and error.

BlueChip Communication , Australia's leading financial services communication firm, is attending the PAICR conference (twitter #PAICR2011)