August 2012 I Vol

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Aug. 1987 — Aug. 2012 25 th Anniversary Issue

Communications & new media August 2012 I Vol. 26 No. 8

WHY FINANCE EXECUTIVES STILL AVOID 2012: THE YEAR EVERYTHING SOCIAL MEDIA CHANGED FOR RANKINGS OF TOP INVESTOR RELATIONS FINANCIAL PR FIRMS FINANCIAL PR IN THE NEW TOOLS IN THE FIGHT TO RENEW WAR AGAINST PUBLIC TRUST INSIDER TRADING

DEALING WITH THE SPECIAL SECTION: FINANCE INDUSTRY’S PROFESSIONAL SERVICES “QUIET PERIODS” WHEN LAWYERS NEED PR PROFILES OF FINANCIAL PR — & INVESTOR RELATIONS FIRMS PROF. SERVICES GOES SOCIAL TOP M&A PR ADVISORS REVEALED

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Vol. 26, No. 8 August 2012 EDITORIAL PROFILES OF FINANCIAL PR Trust in the U.S. financial industry is & INVESTOR RELATIONS FIRMS at an all-time low. COURT LETS TV STREAMING 6 24 RANKINGS OF FINANCIAL PR CONTINUE & INVESTOR RELATIONS FIRMS A federal judge denied an injunction sought by major media companies against8 31 WHEN LAWYERS SEEK PR TV streaming service Aereo. For both lawyers and PR pros, the JARVIS TELLS PR PROS TO 32 practice of properly marketing legal REP PUBLIC OVER BRAND services remains largely uncharted. Media pundit Jeff Jarvis challenged EDUCATING PROF. SERVICES 22 PR pros at a social media summit to prac-8 CLIENTS TO SOCIAL MEDIA tice “reverse PR.” Why clients in the professional services CONFRONTING QUARTERLY 33 industries aren’t often equipped to “QUIET” PERIODS respond to breaking news. Companies often struggle with a PROFESSIONAL SERVICES IN THE “quiet period” when they determine how10 they REALM OF CORP. REPUTATION want to stop talking to the press. A challenge professional services PR SARD, KEKST LEAD U.S. 34 pros face is ensuring clients don’t under- M&A PR ADVISORS value the importance of reputation. According to Mergermarket, Sard Verbinnen & Co. and Kekst were the top11 U.S. OVERCOMING PROF. SERVICE’S M&A PR advisors in the first half of 2012. “APPRECIATION GAP” 32 Professions such as lawyers, doctors, www.odwyerpr.com WAVE OF PR CHANGE 35 and entrepreneurs can benefit from PR Daily, up-to-the-minute PR news ROLLS OVER FINANCE as a means of expanding their practices. New bank hires have rolled a wave of turnover in the financial sector’s12 PROFILES OF PROFESSIONAL communications. SERVICES FIRMS TRUST IN FIN. SERVICES 36 DEPENDS ON GOOD PR RANKINGS OF PROFESSIONAL The financial services industry SERVICES FIRMS still faces a trust deficit that can 14 39 be assuaged by good communications. WASHINGTON REPORT INSIDER TRADING STILL SHAKES FINANCE WORLD The U.S. government remains on COLUMNS a crusade against insider trad- 16 ing, with new tools and legal maneuvers. PROFESSIONAL DEVELOPMENT 40 Fraser Seitel COMPANIES COMFORTABLE WITH SOCIAL MEDIA FINANCIAL MANAGEMENT Corporations are making progress 41 Richard Goldstein to connect with customers, employees18 OPINION and the public through social media. 42 Jack O’Dwyer OLYMPIC GOLD A PIPE PEOPLE IN PR DREAM FOR U.S. 43 PR BUYER’S GUIDE Clients wanting a sports market-20 46 ing/publicity program in the U.S. should EDITORIAL CALENDAR 2012 aim for football, baseball and basketball. January: Crisis Comms. / Buyer’s Guide July: Travel & Tourism FINANCE INDUSTRY STILL February: Environmental & P.A. August: Financial/I.R. RESISTS SOCIAL MEDIA March: Food & Beverage September: Beauty & Fashion Investment banks are still uncom- April: Broadcast & Social Media October: Healthcare & Medical fortable adapting to social media 22 in their May: PR Firm Rankings November: High-Tech communications campaigns. June: Global & Multicultural December: Entertainment & Sports

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www.odwyerpr.comDaily, up-to-the-minute PR news

EDITORIAL Americans’ trust in Wall Street hits all-time low

cursory glance at the U.S. financial industry reveals a reputation that is, arguably, EDITOR-IN-CHIEF damaged beyond repair. If it were created tomorrow, a public trust index gauging Jack O’Dwyer AWall Street banks would put today’s investment executive somewhere between a [email protected] used car salesman and a third-world military dictator. The loss of trust isn’t incidental. Indeed, a quick look at recent headlines should solve any remaining mystery as to why our ASSOCIATE PUBLISHER faith in financial institutions has virtually disappeared. Kevin McCauley JPMorgan is reeling from the effects of a $6 billion loss related to yet-disclosed trading [email protected] activity (rumor has it the firm had been betting on a mind-bogglingly complex algorithm involving derivatives on derivatives). The Federal Reserve, the SEC and the FBI are current - EDITOR ly investigating the loss, which was deliberately kept secret by the firm for months. Ironically, Jon Gingerich JPMorgan executives said the catastrophe occurred as the result of a company initiative [email protected] meant to reduce risky assets in the firm’s portfolio. Russell Wasendorf Sr., CEO of commodities broker Peregrine Financial Group, made SENIOR EDITOR headlines in July when it was discovered he allegedly stole $200 million in funds from his Greg Hazley firm’s customers over a 20-year period. During an ensuing FBI probe, the firm filed for bank - [email protected] ruptcy protection. A few days later, Wasendorf attempted suicide. He failed, but had the CONTRIBUTING EDITORS wherewithal to leave a detailed suicide note incriminating himself in a litany of illegal activ - John O’Dwyer ity. Fraser Seitel In June, multinational financial services company Barclays was fined $450 million after it Richard Goldstein was discovered the firm deliberately lowballed rates set by the London Interbank Offered Rate (Libor), the interest rates by which banks lend each other money. A criminal investiga - tion is currently underway in both Britain and the U.S. ADVERTISING SALES Facebook’s recent IPO fiasco began as one of the most talked-about public offerings in John O’Dwyer investment history. A computer glitch in the NASDAQ system that accidentally rerouted Advertising Sales Manager investor funds, along with months of fevered hype for a grossly overvalued product, caused [email protected] the social media giant’s share price to plummet to laughable lows, losing more than a quar - ter of its value in less than a month, with total investors’ losses estimated at $40 billion. In July, the Senate Permanent Investigations Subcommittee released a 300-plus-page report citing London-based banking and financial services company HSBC of allegedly assisting money laundering for organizations with known terrorist ties. If guilty, HSBC could O’Dwyer’s is published monthly for $60.00 face a fine as high as $1 billion. a year ($7.00 for a single issue) by the Finally there’s Capital One, which was fined $210 million by the Consumer Financial J.R. O’Dwyer Co., Inc., Protection Bureau for deliberately misleading two million customers by adding a number of 271 Madison Ave., New York, NY 10016. products to its line of credit cards. In a hilarious twist or irony, Capital One is currently in (212) 679-2471 negotiations to acquire HSBC’s credit card operations. Fax (212) 683-2750. Corporate and Financial Communications Redefined Taken together, the U.S. financial industry in 2012 now resembles something like the Mob: Universally nefarious, shamelessly criminal, and in some cases, untouchable. Investor Relations Managing the corporate brand for a public or soon-to-be public company © Copyright 2012 As a result, U.S. opinion of these free-market reprobates has plummeted. Culturally, requires in-depth business and industry knowledge, as well as an advanced Americans have always been strangely tolerant of white-collar criminals. We routinely par - J.R. O’Dwyer Co., Inc. Corporate Communications rot “tough on crime” maxims for those who commit petty theft or non-violent drug offenses, understanding of the capital markets. With several dozen former sell-side Special Situations yet there’s something about our ingrained meritocracy that has a habit of treating someone analysts, portfolio managers and other Wall Street professionals, ICR is the OTHER PUBLICATIONS & who stole $20 million as the victim of a trifling moral lapse, simply because the crook wore SERVICES: Crisis Communications only firm to combine this senior-level experience with traditional corporate a suit and tie while committing the deed. But that attitude may be changing. According to an essay in Public Opinion Quarterly by Lindsay A. Owens, Americans’ per - www.odwyerpr.com breaking news, Digital Media communications and PR professionals. commentary, useful databases and more. ceptions of banks and financial institutions have fallen to all-time lows. Owens studied national polls gauging American attitudes toward financial institutions since 1973, and noted Jack O’Dwyer’s Newsletter An eight- We draw on decades of knowledge and relationships within each client’s a continued dip in public perception that has really fallen off the precipice in recent years. page weekly with general PR news, media sector, and as a result, ICR is uniquely positioned to advise management Between 2006 and 2010 alone, American confidence in banks and financial institutions fell appointments and placement opportunities. 19 percentage points, to a historic low of 11%. In an October CNN op-ed, Owens concluded teams and develop communications programs for each stage of the “animosity toward Wall Street is at its highest level in at least 40 years.” O’Dwyer’s Directory of PR Firms has corporate lifecycle. Investment banks know their reputation is in the gutter, so they’re now hiring top-shelf PR listings of more than 1,850 PR firms through - counsel in a desperate attempt to resurrect their sullied image. Goldman Sachs recently out the U.S. and abroad. brought on Andrew Williams, former public affairs staffer to Treasury Secretary Tim Geithner, and former Clinton White House Press Secretary Jake Siewert, as part of a massive O’Dwyer’s PR Buyer’s Guide lists 1,000+ products and services for the PR industry in 54 effort to save the bank’s tattered image. categories. The question is: will it do any good? Investment, by dint of its nature, thrives in a system of acknowledged risk. However, for many Americans the risk has grown too high, the game Learn how ICR has redefined the corporate and financial communications jobs.odwyerpr.com O’Dwyer’s online landscape at 203-682-8200 or visit www.ICRinc.com. too shady, and fewer of us trust the man dealing the cards. We’ve grown to expect the worst job center has help wanted ads and hosts from our financial sector. The question now shouldn’t be whether things can get any worse, resume postings . but whether Wall Street’s attempts to regain our trust will be an effort that came with too lit - tle, and much too late. — Jon Gingerich

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Corporate and Financial Communications Redefined

Investor Relations Managing the corporate brand for a public or soon-to-be public company

Corporate Communications requires in-depth business and industry knowledge, as well as an advanced understanding of the capital markets. With several dozen former sell-side Special Situations analysts, portfolio managers and other Wall Street professionals, ICR is the Crisis Communications only firm to combine this senior-level experience with traditional corporate

Digital Media communications and PR professionals.

We draw on decades of knowledge and relationships within each client’s sector, and as a result, ICR is uniquely positioned to advise management teams and develop communications programs for each stage of the corporate lifecycle.

Learn how ICR has redefined the corporate and financial communications landscape at 203-682-8200 or visit www.ICRinc.com.

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MEDIA REPORT Court lets TV streaming continue

A federal judge in New York denied a preliminary injunction sought by major media companies like NBC Universal and small company battling media giants. “Today’s decision shows that when you Disney against TV streaming service Aereo, paving the way for are on the right side of the law, you can the controversial start-up to continue operations. stand up, fight the Goliath and win,” he By Greg Hazley said. “This isn’t just a win for Aereo, it’s also a significant win for consumers could result in irreparable harm to the who are demanding more choice and ereo, backed by media mogul broadcasters because of fees paid by flexibility in the way they watch televi- Barry Diller’s InterActive Corp., cable companies and advertising rates sion.” Alets users watch or record live set by ratings. But she did not believe The media companies will continue TV from major networks and local sta- such harm was imminent during the cur- the legal battle. tions which broadcast over the air. It rent litigation and paved the way for the “The judge has denied our request for currently operates in the New York area. case to head to trial. preliminary relief — ruling that it is ok The media companies, which also Aereo’s legal argument contends that to misappropriate copyrighted material include News Corp., CBS and ABC, its service essentially allows users to and retransmit it without compensa- among others, sued Aereo in March, rent a remote antenna, DVR or tion,” said a group including FOX, PBS, alleging that the service illegally cap- Slingbox-like device to access content WNET, Univision and Tribune. “While tures broadcast TV signals and then they could receive for free in the same we are disappointed, we will continue to broadcasts them over the Internet to sub- manner by installing the equipment at fight to protect our copyrights and scribers. home. expect to prevail on appeal.” The preliminary injunction turned Launchsquad is Aereo’s PR agency. Cable providers who pay the broad- down last month would have asserted The company in April hired Rubenstein cast networks were not exactly sympa- that Aereo was liable for copyright Communications senior VP Virginia thetic to the court setback. “I don’t know infringement. Lam as VP of communications and gov- if it’s legal or not,” Time Warner Cable Judge Alison Nathan of U.S. District ernment relations. CEO Glenn Britt said in the Wall Street Court for the Southern District of New In a statement, Aereo CEO Chet Journal. “But if it is we should do it York ruled July 11 that the Aereo service Kanokia pitched the legal victory as a too.” Jarvis tells PR pros to rep the public, not the brand Media pundit Jeff Jarvis challenged the audience at PR News’ ism world, according to Jarvis. social media summit to practice “reverse PR” by representing He is a CUNY graduate school profes- the “public to the brand rather than brand to the public.” sor and author of “Public Parts: How By Kevin McCauley Sharing in the Digital Age Improves the Way We Work and Live.” he believes the blog registered because PR news briefs company needs to view the pub- many other people experienced “Dell lic as collaborators rather than hell.” That message is what gave Jarvis IPG SUED IN FACEBOOK Acustomers, according to Jarvis, the authority. BONANZA who stressed “public-ness.” A PR depart- Jarvis urged the audience to pay close ment has conversations attention to “complainers” Interpublic is being sued by a former Senior Account Manager who claims he convinced manage- with the public, rather than because they care about the ment to take an equity stake in Facebook in 2006, an “worrying about what they product and want to help make investment that turned into a financial windfall for are saying about us,” he it better. the ad/PR combine. said. On the media front, Jarvis sees Ray Volpe says he was at first rebuffed by IPG, Jarvis called his presenta- the future of media as “plat- which told him that he was “out of his mind” for pushing for the investment in the social networker. tion, “Turning PR Around: forms for communities.” Self- But IPG then agreed after he promised to personally The Public Can Speak for contained articles give way to guarantee ad revenue for Facebook. Itself.” He downplayed the “assets” and “paths.” For IPG shelled out $2.5 million for Facebook pre- role of influencers and instance, a reporter would but- ferred stock. The suit claims that IPG sold half of that investment in August 2011 for $133.5 million and the experts, gaving his 2005 tress original content with back- rest for $249.6 million on May 18 during Facebook’s BuzzMachine posting ground information from IPO. Volpe says he received no money from IPG for called “Dell Lies. Dell Jeff Jarvis Wikipedia or The Economist his investment tip. Sucks” as an example. and provide paths via links. He Volpe’s suit filed in New York State Supreme Jarvis panned his new called it “elegant organization.” Court alleges breach of contract, breach of fiduciary duty, unjust enrichment and recovery of IPG’s pre-tax Dell laptop as a “lemon” with lousy in- The media with the best combination gain from the Facebook stock sale. home service. The posting didn’t go viral of content, assets and links will survive IPG says Volpe’s lawsuit has no merit. because Jarvis is a computer expert, but the shakeout that is upending the journal-

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FEATURE Confronting the quarterly “quiet period” dilemma One investor relations issue that companies often struggle with is the “quiet period.” This isn’t a reference those SEC mandated periods related to IPOs, or around the release of lock-up agreements. The “quiet period” is when individual companies determine if, when and how they want to stop talking to the investment community as they approach the end of the quarter. By Jim Buckley are finally closed. Others have no clear lukewarm quarter. Conversely, it’s hard to delineations on timing — it really not to be brimming with confidence when he quarterly quiet period is one of depends on when management has a good you have a homerun quarter waiting in the those gray areas that investor rela- sense of the quarter. For every company wings to be announced. Ttions is famous for, and there is cer- that has a QQP, it runs until financial Wall Street knows this. Why do you tainly no one-size-fits-all approach for results are finally announced. Practically think so many of the sell-side firms insist companies. The fundamental principle speaking though, that means some com- on scheduling their behind the quarterly quiet period (or panies may technically be in a quiet peri- conferences during a QQP) is straightforward. At some point od as much as seven weeks or more every time when many com- around quarter end, management has quarter, which is cumbersome and can panies are in their knowledge of the company’s quarterly hinder open communications with the QQP? They know performance. So investors start calling in Street. That means more than half of the information will be the last two weeks of every quarter and year they can’t talk to investors! more current and buy- asking “How are things going?” They The next big question is what does a side interest for want to get a read on upcoming results QQP mean to an individual company? attending those con- through tone and demeanor. As a result, Again, it’s a potpourri of answers. For ferences will be high- over time, companies began to institute a Jim Buckley some companies, it means full radio er. Along the same quiet period with the Street to avoid tak- silence — no conferences, meetings or lines, why else would ing these calls. Makes sense, right? But investor phone calls during that period. some of your shareholders or prospective how does each company handle its QQP? The problem with this communications investors just happen to be coming to That’s where things start to get fuzzy. shutdown approach — particularly with your city right around or just after quarter Companies have adopted different small, underfollowed companies — is end? They promise upfront not to even QQP approaches because there are no that it doesn’t curry you any favor with ask about the quarter, because they know legal mandates. First off, when does it the Street and clearly inhibits your visibil- they don’t need to. Those last minute start? Some companies — particularly in ity. “love to drop by” visits just happen to the technology space — opted for QQPs That’s ultimately why many companies cluster around quarter end. Coincidence? to commence two weeks before the quar- adopt a more flexible approach to the I think not. ter ends. The thinking behind this is that QQP. Some will agree to go to confer- So what’s a company to do? There’s no they tend to have a hockey stick revenue ences, but not attend one-on-one meet- simple answer. Ultimately, you have to model where sales are heavily weighted ings. Some companies will pre-release strike a balance between avoiding selec- to the end of quarter. Some will say it quarterly results or confirm/update guid- tive disclosure and maintaining your starts in the last month of the quarter and ance in conjunction with their conference Street relationships. Whatever you decide some at quarter’s end when their books participation. This is a sensible approach — radio silence, some hybrid form of that PR Services Briefs that we often recommend. Other compa- or no official QQP at all — it’s important nies will restrict certain members of man- to be consistent. Don’t say you have a for- SARD, ICR SCORE WITH agement during the QQP — particularly mal QQP policy one quarter and then MANCHESTER UNITED those that cannot keep a poker face. Other appear at a conference or take calls the companies will lay down ground rules at next. Wall Street takes note of these Sard Verbinnen & Co. and ICR are handling the the start of any one-on-ones or phone inconsistencies. Also, you shouldn’t turn return of Manchester United to the public markets as the soccer team filed a registration statement July 3 calls during the QQP that the discussion down one investor because “we’re in our with the Securities and Exchange Commission to list of the quarter is off limits and they will quiet period” and then accept a meeting shares on the New York Stock Exchange. not address anything related to it. with a top five holder because you want to Man U, considered by Forbes to be world’s most However, that is the challenge of even keep them happy. If you are consistent, valuable sports franchise, was kicked from the top of England’s Premier League this year by rival talking during the QQP. Members of Wall over time your analysts and investors will Manchester City. More than 4 billion people watched Street don’t necessarily need to ask you know what to expect rather than looking its games during the `10-`11 season, according to the about the quarter to quickly decipher how for erratic or inconsistent behavior, which prospectus. it went, particularly if they are in the same provides clues about your quarterly per- Man U had traded on the London Exchange, but it room as you. The Street is being trained formance. Consistency helps you stay in was taken private by American Malcolm Glazer in a $1.5 billion deal in 2005. The Glazer family controls the by former CIA and FBI agents to read compliance with securities regulations National Football League’s Tampa Bay Buccaneers. body language and detect discom- and equally as important, can lower your Man U was founded in 1878 by railroad workers. fort/insecurity even when no answer is stress level around quarterly time. What SV & Co.’s Jim Barron, Brooke Gordon and Michael given. It’s only natural to be less enthusi- CFO doesn’t want that? Henson are working PR (media) for the share debut. astic about your company when you’re Jim Buckley is an Executive Vice preparing to announce a lousy or even a President and Partner at Sharon Merrill.

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Sard Verbinnen, Kekst lead U.S. M&A PR advisors

In a weak but improving first half for merger activity, Sard Verbinnen & Co. and Kekst and Company were the top U.S. Consulting (34), and Owen Blicksilver M&A PR advisors in the first half of 2012 by deal value and (21). volume, respectively, according to Mergermarket. RLM Finsbury led European PR advi- By Greg Hazley sors with deals with $95.6 billion, while FTI led in numbers with 73 transactions for the first half. lthough global M&A activity leader Brunswick Group. Mergermarket said global M&A activ- picked up in the second quarter A handful of firms entered the top 10 ity of $968.5 billion was down 18.3% in Ato break a string of five straight by advising a few deals with large price the first half compared with 2011. quarterly declines, the U.S. recorded the tags. Maitland, which handled lowest half-year total — $290.6 billion only eight deals during the half, — since 2003. landed at No. 6 by value, while Brunswick Group continued to lead Rubenstein Associates (five global M&A PR advisors handling deals deals) and Capital MSL (4) fol- worth $122.6 billion during the first two lowed at Nos. 7 and 8, respec- quarters of 2012, while FTI Consulting tively. advised the most transactions globally Sard was followed by with 97 deals. Brunswick ($74.1 billion), Kekst Vaulting Sard Verbinnen up the charts ($53.6 billion), Joele Frank, in the U.S. was its work for Sunoco in Wilkinson Brimmer Katcher the company’s nearly $7 billion acquisi- ($37.6 billion) and Abernathy tion by Energy Transfer Partners MacGregor ($25.4 billion) in the (Brunswick), and Sard’s counseling of top five by deal value. Illumina as it was bought for $6.8 billion Kekst’s 62 U.S. deals were by Roche Holding (Brunswick), among trailed by Sard (49), Joele Frank other deals with Gavilon and Pentair. (43), Brunswick (42) and Sard edged out first-quarter volume Abernathy MacGregor (37), FTI Mergermarket’s league table of U.S. M&A PR advisors.

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REPORT Wave of PR change rolls over finance industry A series of hires by banks and trade groups has rolled a wave of turnover in the financial sector’s communications, in some cases filling long-vacant posts and in others replacing executives whose time may have passed four years on from a financial crisis that has lev- eled reputations. By Greg Hazley

ongressional and criminal probes, that Goldman’s irate consumers and taxpayers, and chief could receive Cthe Occupy Wall Street movement a bonus north of set fire to the previously ignored but solid $100 million for reputations of big banks. the year. Brand Finance, which quantifies the After Matt value of bank brands, in February said the Taibbi’s bruising value of the top 500 global financial profile of Goldman brands has tumbled nearly $95 billion in Rolling Stone since 2011. branded the firm as Millward Brown, a unit of WPP, in a “great vampire May found the biggest brand value squid wrapped Former Clinton administration Press Secretary Jake Siewert (left) was declines among global corporations around the face of recently brought onboard at Goldman Sachs. He is joined by Andrew were in finance. Falling precipitiously in humanity” and Williams (right), a former Spokesman for Treasury Secretary Timothy the annual ranking were Citi ($9.8 bil- drew wide atten- Geithner. lion, -38%), Chase ($8.6 billion, -28%), tion, van Praag dis- at the top with Blankfein. The CEO and TD ($14.6 billion, -14%). missed the piece as “a hysterical compila- Goldman brings out big guns kicked off a charm offensive in April that tion of conspiracy theories, [missing included television interviews, followed No change was more glaring than at only] Goldman Sachs as the third shooter by an appearance at a Wall Street confer- Goldman Sachs. The investment bank, [in the Kennedy assassination] and faking ence for gay rights. The bank is reaching possibly the most battered of financial the first lunar landing.” out to entrepreneurs and small businesses brands since the outbreak of the 2007 cri- Compiling a list of van Praag’s greatest and highlighting those efforts, and it even sis, out-wooed PepsiCo and brought in hits, New York Magazine described the started posting to a Twitter account, the former Clinton White House Press Goldman partner as “cocksure, weary and social messaging site where users had Secretary Jake Siewert as its top commu- exasperated at having to explain the sim- long hijacked Blankfein’s identity in cre- nications executive in March, marking plest of concepts to idiots but yet able to ating several phony accounts under his the end of its longtime PR chief Lucas sum up enough dry amusement as to name. van Praag. almost sound charming.” “The average American probably had Siewert, an advisor to Treasury After Goldman CEO Lloyd Blankfein no contact and had never heard of Secretary Timothy Geithner, will be unfolded a PR nightmare in late 2011 by Goldman Sachs before three years ago,” joined by another former Geithner aide, declaring to the Sunday Times of London Blankfein said in a “one-on-one” Andrew Williams recently of General that he was doing “God’s work,” van Bloomberg TV interview April 25. Electric, this month in Goldman’s PR Praag accused the paper of spinning the “Shame on us in a way in not anticipat- unit. quote to generate interest in the story and ing how important that would be. We’re Van Praag, who retired at 62, was noto- “create news.” an institutional business — not con- riously lambasted by the New York A few months later, Goldman had a sumers. It turns out another name for con- Observer’s Max Abelson in 2010 as the new PR Chief. [And Blankfein’s quip sumers are citizens and taxpayers. They face of a Goldman PR machine that is was joined in the echelon of bank CEO became important for reasons that are “basically a stiffly extended middle fin- misstatements a week later when obvious. [They] always should have been ger, waved in the air for all to see.” Barclays CEO John Varley declared important but it just wasn’t part of our Van Praag, a former Partner at “profit is not satanic.” But more on audience as we thought about it. Now Brunswick Group who joined Goldman Barclays in a bit.] we’re going to have to develop those in 2000 as it became a publicly traded The final PR salvo of van Praag’s rein muscles a little bit better than we have. entity, was often seen as a Londoner came March 14, Siewert’s first day on the Shame on us.” sneering at the U.S. press in the midst of job at Goldman, when the New York Blankfein heads The Financial a crisis many believe his bank hastened. Times printed an op-ed by former Services Forum, which represents the “This speculation transcends the simply Goldman exec Greg Smith branding the CEOs of the 20 largest financial institu- stupid and takes it to an entirely new level firm a “toxic and destructive” environ- tions operating in the U.S. In June, the … giving credibility to tittle-tattle is pret- ment disrespectful of clients and focused group filled its top communications slot ty shoddy journalism,” he said in 2010, only on profit. left vacant for a year when it brought in responding to reports in outlets like the Goldman’s PR makeover in recent Continued on next page Wall Street Journal and New York Times months has been a tectonic shift, starting

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Laena Fallon, the Communications JPMorgan in July hired the Obama as being critical to organizational suc- Director for the powerful, but controver- administration’s United Nation’s cess and acceptance,” she said, noting Wave of PR change rolls over finance industry sial House Majority Leader Eric Cantor spokesman Mark Kornblau in a manag- “image” has risen to be a top reputation (R-Va.). She starts work this month. ing director role handling corporate com- driver for the first time since the early Rob Nichols, President and CEO of munications under communi- 2000s. the self-described “non-partisan” group, cations chief Joe D&E looked at several said it hired Fallon to help communicate Evangelisti. data sources, including the “important role the financial sector Barclays, the U.K.-based industry rankings, surveys plays in economic growth and job cre- giant, also set off a new and government statistics ation.” round global financial PR to rate the top banks based The American Bankers Association, woes as it admitted in June on the five factors above. the trade group for the $13 billion bank- that its investment banking They are, in order from the ing sector, replaced its longtime PR head operation rigged global top: Bank of America, Ginny Dean last September with Podesta interest rates. While the JPMorgan Chase & Co., Group’s Stephanie Matthews O’Keefe. scandal is still playing out, Citigroup, Wells Fargo & But where Goldman is working to turn the bank has bolstered its PR Co., Goldman Sachs, around its image, other banks seem operations as criminal and Metlife, Bank of New York poised to take the mantle of a financial political inquires heat up. Mellon, Morgan Stanley, piñata. What can be done? US Bancorp and HSBC JPMorgan Chase is having trouble pin- Dix & Eaton, the finan- Goldman Sachs CEO and North America. Notably, ning down a massive trading loss — $6 cially savvy Cleveland Chairman Lloyd Blankfein. Citigroup led in three cate- billion was the latest account at press agency, has pegged the repu- gories (transparency, ROI time — that former its CEO, former PR tations of the large bank and image), while Bank of All-Star Jamie Dimon, said has “shaken holding companies to five drivers which American topped two (sustainability and our company to the core.” include, in order of importance, return on overall ranking). Dimon, who asked analysts on a shareholder investment, corporate social Cohen sees a long haul for the banks to November 2011 call if they had any responsibility, transparency, sustainabili- get back the respect of their constituents. ideas for handling Occupy Wall Street, ty and image. “Gaining back the trust and admiration while Dimon’s initial handling of the Pamela Cohen, Ph.D., who led an of stakeholders will be a long process huge trading gaffe was mostly applauded analysis for D&E released in July, said given the extreme fall in reputation of in PR circles, criticism grew as the esti- the rank of CSR at No. 2 and sustainabil- financial institutions over the past sever- mates of the loss widened. ity at No. 4 is telling. “Values are viewed al years,” she said.

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FEATURE Trust in financial services depends on good PR The financial services industry faces a severe trust deficit. A Economic growth remains the primary global financial crisis has caused consumers to question their corporate social responsibility of the sector, and that’s a powerful message. financial services providers and led corporations to reappraise Transparency and authenticity their banking relationships. This lack of trust is due in part to Nothing inspires trust like transparency. poor communications, disengagement with important stake- Institutions need to be more open and relearn how to communicate more effec- holders, and a lack of transparency. By Jan Altink tively with their communities. Product sales marketing communications simply lack the that financial players are seen to be acting authenticity required to address trust issues. rust in financial institutions is essen- decisively, changing the culture warped by The value of authenticity and talking in tial for sustained business success. years of self-interest. language that engages and is properly TOne way or another, communica- Financial services firms should take sim- understood has never been greater. tions has a critical role to play in rebuilding ilar leadership positions, recognizing the Perversely, never has it been so lacking. confidence, leading to profitable customer real and perceived responsibilities they Employee communications relationships. Trust, as the adage goes, is hold with customers and shareholders The emphasis on truly engaging with easily lost and much harder to regain. alike, and getting their points of view com- your employees has never been needed as Six key strategies can together make the municated. Re-establish links to the real economy much as today. Today’s technology allows difference for the financial services indus- for increasingly more effective engagement try between regaining the trust that is nec- The very real and positive enabling role with employees. Social media can be essary for sustained results — or losing it that the industry plays is being obscured. deployed internally to keep people for good. Good communications lies at the Financial services institutions are in many informed and get them more engaged, heart of these strategies. They apply equal- ways the lifeblood of growth. They enable while receiving and measuring feedback. ly for other trust-poor companies or indus- innovation and expansion of business. Employees as ambassadors tries. They facilitate trade that puts comparative Build a leadership culture With increasing regulation, and some- advantage to the benefit of all. They enable times stifling compliance, customer service Leadership starts at top. It is not just the hundreds of millions of the previously personnel have had their levels of empow- responsibility of the CEO, but also the unbanked to become true consumers, erment reduced. Yet customers want to feel board, on behalf of shareholders. It is vital savers and investors for the first time. valued. Continued emphasis on service and regular communications will help employees become ambassadors for their firms. Reliability & execution Not least, to stand a significant chance of regaining lost trust, financial institutions need to get the basics right. Financial products have become so complex and appear designed to make money for the issuer, first, before benefiting the purchaser. One of the lessons is that if you are unable to explain your product to your client, be it a corporate or another institution, then you should not be selling that product. Misselling lies at the heart of the Western financial crisis and valuable lessons should have been learnt. Asia Pacific has escaped the worst effects of the financial crisis, having by and large learnt financial management lessons from its own severe regional banking woes of 1997. Evidence is beginning to emerge, however, that conditions are deteriorating. Yet Asia’s financial services industry remains by and large silent, preferring to operate below the parapet. At a time when communications is so vital in an increasingly inter-connected region, this may well come back to bite them on the bum. Jan Altink is Director of Corporate and Financial at Bite Communications, in Hong Kong, and its Asia Pacific financial lead.

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FEATURE Insider trading continues to shake finance world While it’s making fewer headlines then several years ago, the U.S. government has been on a crusade against insider trading. This time, courts and federal agencies are armed with better tools and legal maneuvers for catching finance crooks. By John Palizza

deterrent effect has seemed to work for tions, there was an interesting twist that sing wiretap techniques that were a period of time, but the difficulty in allowed the government to use wiretap once reserved for investigations bringing these types of cases often evidence of securities fraud. In the Uinto organized crime, the Justice means that long stretches of time pass investigations, the crime for which the Department began with a probe into the between investigations. Over time, the wiretap warrants were issued was wire Galleon hedge fund run by Raj collective memory of Wall Street then fraud, which is an enumerated crime Rajaratnam. As the wiretaps began to fades and old, bad habits resurface until under the Omnibus Crime Act. Wire bear fruit, a string of plea deals followed the next round of investigations. fraud is somewhat of a catchall crime involving traders and people in what are Given the high profile nature of the that involves intent to use a scheme or referred to as expert networks. insider trading cases brought by the artifice to defraud and utilizes a wire Prosecutors then worked their way up the government, I thought it would be inter- communication (the telephone, for information food chain, finally resulting esting to consider if anything has example) that crosses state lines. In in the trials and guilty verdicts of both the changed as a result. Naturally, it’s inter- other words, many of the things a person billionaire hedge fund manager esting when high profile defendants are does in a modern Rajaratnam and his well-connected brought low, but this happens periodi- office could friend, Rajat Gupta. cally on Wall Street (remember Ivan potentially fulfill Since 2009, according to The Boesky and Michael Milken?) and it the interstate wire Economist, a total of 69 people have doesn’t necessarily signal anything new. aspect of the been charged and 63 convictions have However, the Rajaratnam trial and relat- crime. been racked up related to the Galleon ed cases are groundbreaking in at least Once the prose- Hedge Fund investigation. one respect. cutors had The latest of these convictions, that of Insider trading cases used to be very received a valid Gupta, was notable for several reasons: difficult for prosecutors to prove wiretap warrant, first, it reached into the highest levels of because they had to rely on targeting a when evidence corporate America. Gupta was the for- probable wrongdoer as a witness, became available John Palizza mer head of McKinsey & Co., one of approaching them with some evidence about securities the foremost management-consulting of their wrongdoing and “flipping” them fraud, the courts ruled that the govern- firms in the world and a member of the in order to get evidence against the pri- ment was allowed to use it, even though Board of Directors at Goldman Sachs. It mary target of the investigation. the crime of wire fraud was not subse- simply doesn’t get more white shoe than Prosecutors were then faced with the quently prosecuted. The wiretap evi- that. Second, Gupta was convicted of prospect of using this somewhat unsa- dence was used not only in the passing inside information from vory partner to a crime to testify at trial Rajaratnam trial, but also in subsequent Goldman Sachs board meetings even against their target, and had to rely upon investigations and Gupta’s trial as well. though he was not shown to have direct- the memory of the witness to provide the Further, the SEC was able to avail itself ly benefited from any trades associated evidence. Even then, it sometimes of the wiretap information in a related with the intelligence he passed along. devolved into a “he said, she said” con- civil action. Instead, his motive appears to have been frontation. As a result, relatively few So a powerful new tool is now avail- passing along information in order to insider trading criminal prosecutions able to prosecutors in insider trading help Rajaratnam’s fund generally in have been brought by the government cases. No longer do they need to go return for potential unspecified future over the years. The greater availability through the laborious process of track- benefits. of wiretaps as pioneered in the ing down witnesses; wiretaps can listen Prosecutors love it when they can roll Rajaratnam investigations will change in and provide the evidence. If you give up an entire network, particularly when all that. a prosecutor a tool, he will use it, and the they can land the big fish, as Generally, wiretaps are a carefully cir- long-term effect of the Rajaratnam cases Rajaratnam and Gupta most assuredly cumscribed tool of prosecutors, avail- may likely be the expanded use of wire- are. The thinking is that if you can nab able only after a prosecutor has applied taps in future securities fraud cases. In the heads of the criminal enterprise and to a court and shown probable cause of fact, they have already signaled this. In a stick them with a good long jail sen- the commission of certain specifically press announcement, United States tence (Note: Gupta has not yet been enumerated crimes under the Omnibus Attorney Preet Bharara has said, “Today, sentenced.) then it will serve as a deter- Crime Control and Safe Streets Act of tomorrow, next week, the week after, rent to everyone else. In this case the 1968. Securities fraud is not one of the privileged Wall Street insiders who are object is to get investors to take notice crimes enumerated in the act. As a considering breaking the law will have that dealing in inside information result, in the past prosecutors have not to ask themselves one important ques- should not be taken lightly and they sought to use wiretaps in securities fraud tion: Is law enforcement listening?” should change the way they go about cases. John Palizza is a Consultant at Three getting information. In the past, this In the Galleon hedge fund investiga- Part Advisors in Southlake, TX.

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REPORT Corporations now comfortable with social media Large corporations are making some progress to connect with customers, employees and the public through social media, but the move to so-called social business remains the biggest communications challenge, according to an in-depth study by FedEx and Ketchum. By Greg Hazley

because consumers felt ommunications and marketing they had a venue to talk execs at 55 companies responded and that the brand was lis- Cto the study, including Xerox, tening. IBM, Bank of America, Corning and Measurement lags Cisco, reporting on efforts to engage In addition to lingering external and internal audiences with concerns, measurement is social media endeavors. also a hurdle for businesses FedEx and Ketchum, which conducted engaging in the social realm. a similar study in 2010, found that a cor- Most companies (84%) in porate comfort zone with social media the Ketchum/FedEx study has evolved after extensive discussion measure engagement in two years ago about developing policies their social efforts, followed for employees in social media. Embrace by impressions (69%), of social communications from the exec- influence (53%) and tone utive level has extended down through (51%). While the vast organizations. The study found that seven majority agree that there in 10 corporations now engaged in social will always be aspects of media say their executives believe marketing that can’t be engagement in social media adds value measured, the same group through brand or reputation building. still sees the efforts as The joint FedEx / Ketchum study shows most executives Privacy and legal issues are among key important, nevertheless. now believe social media adds value through brand and concerns in social business. Twenty- Gayle Weisswasser, VP reputation building. seven percent of companies in the survey of Social Media Discovery Source: 2012socialbusinessstudy.com. said that concern has increased over Communications, reported transparency issues. “In a world where that Discovery can effectively measure employee simultaneously. But he said nothing can be hidden, you better have volume of commentary in social media social is useful for information that isn’t nothing to hide,” said Cargill VP Mike around its programming, affirmative of a personal nature, like pointing staff to Fernandez. engagement of its social efforts (“likes” read a positive quarterly earnings Concerns remain pervasive and shares on Facebook, tweets), and announcement. “That’s an effective way Forty-five percent reported increased effectiveness of social accounts in driv- of communicating to them,” he said. concerns over legal or compliance issues ing traffic to Discovery’s website. The Companies said they use social media when engaging clients. Other worries difficulty lies in tying social efforts to for employee communications to include who owns content when a staffer actual tune-in viewers to the company’s strengthen relationships (46%), share and leaves and the continuing presence of programming. tap into expertise (44%), foster collabora- erroneous information online, even when “I think that all of us [networks] tion and dialog (44%), and increase par- it’s corrected. would love to see more direct evidence ticipate in a program (39%). Aaron Miller, a social media and mar- of social media on ratings,” she said, Chris Atkins, Director of U.S. PR at keting strategist for General Mills, noted noting there have been a few studies by PricewaterhouseCoopers, said his com- the crisis that struck Susan G. Komen TVGuide.com and Nielsen which show pany’s most successful internal/social earlier this year when the organization social has some positive effect. effort so far has been to press employees cut ties with Planned Parenthood Social media as an internal tool to keep updated profiles and regularly enveloped a General Mills unit and sup- Fewer than half of companies (44%) post content on LinkedIn, to which every porter of the organization, Yoplait yogurt. surveyed said they continuously engage staffer has premium access. Miller said when the crisis struck it employees through social media. “LinkedIn’s been a really important was too early to make a business decision “Social media is providing us an and eminently controllable — which on whether to sever ties with Komen, so avenue to reach a broad base of employ- always appeals — platform for us,” he the company created a separate tab on its ees that we can’t do with our current said, noting it’s been a go-to resource for Facebook page, where much of the con- structure,” said Dan Collins, division VP media for thought leaders and recruits versation was happening, for consumers for corporate communications at who are just trying to find out the “tone” to post their thoughts. “They felt that we Corning, which is among the 44%. of the organization. were listening, that we cared that they Collins said because of acquisitions, Atkins said his team is currently going wanted to share their thoughts and that geographic expansion and legacy sys- to senior clients to ensure they are up to we’re taking it seriously,” he said. tems, as well as the nature of manufactur- date on their profiles and show them how Miller said the conversation “calmed” ing operations, Corning can’t reach every to post content.

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FEATURE Olympic PR gold is a pipe dream for U.S. sponsors By Arthur Solomon missed by only a relatively few loyalists British firm.” On July 16, CBS radio until it emerges a few years later and is reported that security was a prime topic in uring my nearly 25 years at once again visible. A story in the July 12 London over the weekend and the CBS Burson-Marsteller, I played key USA Today about the marketing of Evening News did a negative story titled, Droles managing and/or creating the Olympic athletes said as much: “Is London ready?” On July 17, both the publicity thrust for significant Olympic “America’s attention on the Olympics New York Times and Wall Street Journal programs. That included traveling interna- evaporates quickly.” ran stories about the pre-competition tionally as an advisor with ranking gov- As every sports fan and sports marketer organization foul ups in London. ernment officials and executives of the knows, as soon as the Olympics’ closing Even the attire of athletes received criti- Seoul Olympics and Asian Games ceremonies are history, sports reporting in cal Olympic coverage, when ABC News Organizing Committees, and with the the U.S. returns to the baseball divisional reported that the uniforms for the U.S. team highest level of State of Victoria races, soon joined by professional and col- were made in China. (The story, which had (Australia) government. lege football and basketball coverage. legs, was quickly picked up by other news I also was a presenter at an IOC sports Also, as reported in the July 3 Wall outlets and also became fodder for writer’s seminar and managed the USOC Street Journal, telecasts of the Olympics Democratic and GOP members of account. This experience gives me a pret- often does not attract the audience that Congress, proving that bipartisanship can ty good idea of how to secure client credit some marketers want, meaning additional exist when the subject is of no conse- for sponsorships in news stories. social media efforts are necessary to reach quences to the welfare of U.S. citizens.) By now most marketers are well into a targeted audience. The constant China coverage of the Ralph their Olympic hype for the London games. By contrast, football, baseball and bas- Lauren uniforms also “…appears to be a For the next several weeks it will be hard ketball receive unlimited year-round public relations nightmare for the compa- to avoid. I believe that the Olympic Games major media coverage, presenting many ny,” said a July 15 New York Times article. are the world’s most important sporting more opportunities for brands to maximize True, football, baseball, and basketball event (as well as the most commercialized, their sponsorships by using athletes and also receive negative coverage, but the criticized and politicized competition, specialized non-athletes, as physicians, sports are so popular here that most fans only eclipsed by the presidential cam- trainers, psychologists, etc. as spokesper- disregard the damaging stories. paign). sons. Hardly a day goes by when an ath- Importantly, as many savvy public rela- But when a client would ask my advice lete (my choice are respected retired tions and advertising people know, it is very about what sports-tie would provide the ballplayers) is not interviewed by sports easy to prepare a legal program giving a most public relations/publicity opportuni- journalists. client the appearance of having an official ties exclusively in the U.S, the Olympics The Olympics also receives some cov- Olympic presence without being a sponsor. were not on the top of my list, even though erage year round in the U.S. But it is most- I’ve always been a proponent of sec- I have no doubt that for a world-wide mar- ly negative reporting on Olympic politics, tor/targeted PR/publicity programs crafted keting campaign it is unparalleled. demonstrations by Olympic city oppo- in a manner that makes it difficult for edi- For clients wanting an extensive sports nents, the massive debt incurred by host tors to eliminate specific message points. marketing/publicity program in the U.S., I cities from staging the games, the threat of I’ve always believed that mega sporting say think of football, baseball and basket- terrorism at the games or problems leading events might not be the correct venue for ball. up to the competitions. most companies. So, while I believe that Here’s why. The negative criticism often gains the Olympics are the world’s paramount In order for an Olympic sponsorship to steam in the weeks prior to the games and athletic event, it is not the proper fit for be successful and, hopefully, stand apart continues during and after the competi- companies with less than a gargantuan from the numerous TV commercials of tions are history. On June 15, the Wall budget wanting a targeted program. other sponsors, it must be supported by a Street Journal headlined a story, “London Because, with the Olympics, as Cole costly advertising program and/or promo- Olympics Outpaced by Economic Woes.” Porter said many years ago, “Anything tion. (And that does not include the On June 18, the New York Times ran a Goes,” which now includes guerilla mar- expensive buy-in.) But history shows that story about the resale of tickets which keting, used with great success by rep- advertising clutter diminishes brand iden- said, “National Olympic committees are utable house hold name corporations. tification. accused of feeding a black market.” On There are numerous promotions by Importantly, in the U.S., Olympic pub- July 11, both the New York Times and Wall teams during the long football, baseball licity media coverage has a short shelf life: Street Journal had stories about and basketball seasons, making it much several weeks before the games and a few Londoners complaining about Olympic more difficult (but not impossible) for mar- weeks after the games. preparations. keters to pretend they are part of the fami- Advertising opportunities have a longer On July 13, the New York Times devot- ly. shelve life in the U.S., but it is not compa- ed a story to the security problems in So if a client wants to get the most bang rable to the football, baseball and basket- London. On the same day, an MSNBC for its sports marketing publicity dollar ball promotional opportunities which are report said that London “is in lockdown” exclusively in the U.S market, my advice is available to sports marketers year-round. as the military and police increase security to think touchdown, home run or dunk. Event coverage dominates during the measures. In the July 14-15 Wall Street Arthur Solomon is a former Senior VP Olympic games. Then like “Puff, The Journal, an almost half-page story was and Senior Counselor at Burson- Magic Dragon,” the Olympics slip away, headlined, “Security Shortfall Spotlights Marsteller.

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REPORT Finance news grabs headlines, with risk attached A national spotlight on jobs and employment has created a demand for financial experts to supply media outlets with a quote, a talking head, or a survey offering telling economic data. For experts in the financial services industry it can be a great forum for telling their story, but it’s a conversation often wrought with both cultural and regulatory obstacles. By Jon Gingerich

behind trends instead of just having some- influence are simply not making decisions et’s face it: most financial stories in the one say what they think,” Trevelino said. based on what they see on Facebook or media remain negative. Experts in the Richard Dukas, President and CEO of Twitter. That’s not to say they’re not keep- Lfinancial services sector find them- Dukas Public Relations, said it’s important ing an eye on it, but if you’re a hedge fund, selves in a unique position of being arbiters that financial experts stay on script when whom are you targeting? You’re looking at of coveted information — but information they go on-air. This means sticking to big- large pension funds and institutions, and many will approach with suspicion and picture economic talk and avoiding being those people just aren’t hanging around on plenty of negative connotations. steered into making partisan endorsements. Twitter or Linkedin. They’re still reading Adam Bickelman, Director of Corporate “After Labor Day the media dialogue is the Journal and going to conferences, and Non Profit for Schneider PR, said that really going to be dominated by the elec- because that’s what is most important to while the media climate remains acerbic, it tion,” Dukas said. “We’re talking to clients them.” presents a prime opportunity for financial about how to discuss these things when Bickelman noted the resistance may be clients to discuss how they’ve separated they’re approached. Most of our clients are based in demographics more than culture. themselves from the rest. happy to talk big-picture policy, and we’re To financial executives the concept of “The media narrative has skewed toward preparing them to have that conversation as social media may still seem like a novelty, being skeptical of the financial services long as they’re not looking to be partisan.” whereas to the marketers who represent industry, so there are companies that are “I don’t want to message my clients them they seem like untapped business uniquely positioning themselves to capital- away from who they are, so I always tell potential. Bickelman also noted the real ize on that ongoing media narrative,” them: be yourself. They’re the experts, holdup in finance’s marriage with social Bickelman said. “A perfect example would there’s a reason why the media wants to media may have to do with compliance be community banks. For them it’s not speak with them,” Bickelman said. with SEC guidelines. fighting a negative perception insomuch as “However, when it comes to especially par- “I think companies are a more willing to promoting their value and ultimately show- tisan stuff, I tell my clients to say what they dip their toe into digital waters once they ing how they’ve done things differently.” want, but remember there’s a big portion of recognize it’s something that’s not going The dos and don’ts of engagement their cut base that may be on the opposite away. There’s a willingness to experiment There’s no question the economy will side of the aisle.” and see what’s out there, and have a well- play an integral role in the election this Hesitant to embrace social media versed counsel who understands the bene- November. The market has remained Financial services clients have been fits of telling a story,” he said. “I think unpredictable, job growth stagnant; it trained — perhaps by a long line of mis- there’s a great opportunity there, but any seems there’s a new scandal on Wall Street takes made by others in the industry — to step forward needs to be done with great every month, and disappointing domestic be prudent in what they say. Internally scrutiny in compliance. The storytelling job numbers are intertwined with headlines however, there are other factors that have ultimately needs to be guided by market- of economic crises in Europe that, no mat- shaped how financial services companies ing, but the compliance officer and the ter how far away, have contributed to a share their messages in outreach cam- company’s operations folks need to be at national narrative with finance as the top paigns. the table.” conversation at home. According to PR pros, many executives Trevelino said the reluctance to embrace Dean Trevelino, Principal at in the financial sector remain leery about social media has been changing, due pri- Trevelino/Keller, said offering hard data — the prospect of adopting a social media marily to new possibilities clients are now whitepapers, quarterly reports — is some- component to their communications initia- recognizing in these marketing spaces. thing that’s especially appreciated by the tives, and it’s for this reason social media “Financial service clients were late to the media, as it often does a better job of high- hasn’t yet penetrated the world of finance game from a social media standpoint, but lighting salient trends than pundits filling communications to the same degree it’s now we’re beginning to hear them ask how out the 24-hours news cycle. virtually enveloped brand outreach for they can get in that game. They get that it’s Trevelino said compelling data lends consumer products. an important channel for their message. credibility to experts that can differentiate Cultural and practical considerations For one, if you’re a financial services com- them from the competition. It also mini- could be cited as reasons for the reluctance. pany and your clients are small business mizes the risk of having their credibility According to Dukas, many finance execu- merchants, you can treat them like con- damaged, because they’re relying on num- tives fully admit they don’t see any tangi- sumers because basically they are con- bers instead of simply sharing their opin- ble gains in social media. Dukas said sumers — they’re getting their information ion. there’s even a belief among executives that from bloggers or Linkedin like everyone “I think we’re seeing a bigger demand social media “debases” their brand. else. So, I think we’re going to see finan- for reliable data now. Our clients can “For the hedge funds and investment cial services companies becoming more access real data by analyzing customer banks, they don’t really care about social aggressive with social media strategies, behavior, and the media likes the fact that media yet,” Dukas said. “And that’s and we’re starting to deliver sophisticated they’re sourcing data that offers proof because the investors they’re looking to considerations that work for them.”

22 AUGUST 2012 WWW.ODWYERPR.COM Augmagazine:Layout 1 7/25/12 11:59 AM Page 23

Finance news grabs headlines, with risk attached Augmagazine:Layout 1 7/25/12 11:59 AM Page 24

Profiles

O’Dwyer’s Guide to: FINANCIAL PR, SERVICES &

8.12 INVESTOR RELATIONS

is an award-winning business- finance firms. ALLISON + to-business public relations, We also represent investment marketing and communication banks, broker/dealers, real PARTNERS firm serving clients in the finan- estate firms, accounting and law cial services, healthcare and firms, and a variety of service 505 Sansome Street, 7th Floor professional services industries. providers to the asset manage- San Francisco, CA 94111 With primary offices in New ment industry. www.allisonpr.com York City and Chicago, the firm DPR is highly regarded for its represents clients across the ability to generate consistent Scott Allison, CEO country and internationally. high-end coverage for its clients [email protected] The 415/277-4900 (San Francisco) The dedicated Financial in top-tier media, including Services Practice Group offers a Wall Street Journal, New York Jonathan Heit, President and rare combination of experience Times, Barron’s, Financial Senior Partner and passion. The practice Times and all of the top trade [email protected] understands financial services media, websites and blogs. 646/428-0699 (New York) products and how they are sold, Broadcast is also one of the whether through intermediaries firm’s key strengths. Over the Gus Okwu, Senior Vice or direct-to-customers. Equally past 24 months, DPR has aver- President, Financial important, the team is passion- aged approximately 50 book- Communications/IR [email protected] ate about finance and actually ings per month for its clients — understands and gets excited by mainly on CNBC, Bloomberg 646/428-0638 (New York) Richard Dukas, President and issues like corporate earnings, and Fox Business. CEO of Dukas Public Relations. Allison+Partners Financial capital markets, leveraged buy- The agency also provides in- Communications/IR practice pro- outs and regulatory require- depth media and presentation vides clients with an integrated ments. coaching, editorial services, a combination of best-in-class advi- With more than 150 years of speaker’s bureau and crisis sory services blending research combined experience, the communications support. and analysis with a broader com- Financial team has diverse Clients include: (trade, business and financial) munications platform. Our deep functional expertise — strategy, BlueMountain Capital, Brown to special events and trade show capital markets experience branding, PR, content develop- Advisory, Conifer Group, programs. Core investor rela- enables clients to achieve a fair ment, digital media, social Credit Union National tions services, provided by best- valuation, minimizes the volatility media, crisis communication, Association, EisnerAmper, of-breed strategic partners, of their financial securities, investor relations and analytics. Gamco Investors, Michael include corporate positioning, enhances their corporate reputa- Clients include some of the Steinhardt, Morgan Creek institutional and sell-side target- tion and raises general awareness most respected names in bank- Capital, Muddy Waters, Old ing, IPO consulting and road of their business model and strate- ing, asset management, insur- Mutual, and Raymond James. shows, conference call prepara- gies. We have the capability and ance, wealth management, tion, shareholder letters, M&A experience to handle our clients’ investment banking, private FEINTUCH advice, speaking platforms and everyday financial communica- equity and equipment finance. more. tion needs, as well as advising on COMMUNICATIONS Most importantly, we offer specific projects related to IPOs DUKAS PUBLIC our clients “integrated thinking” when it comes to developing and secondary offerings, share- RELATIONS 245 Park Avenue, 39th Floor holder analysis, capital raises, New York, NY 10167 and implementing street-smart M&A, investor and analyst out- 212/808-4900 campaigns. Our PR and IR reach, board issues, restructurings, 100 W. 26th Street [email protected] teams work together to leverage and crisis and issues management. New York, NY 10001 www.feintuchcommunications.com corporate and communication 212/704-7385 In all of these situations we act as www.PRWorldAlliance.com assets. [email protected] Feintuch Communications is our clients’ conduit to investors, www.dukaspr.com key influencers and government Henry Feintuch, President a founding member of PR and ultimately protect the corpo- Richard Dukas, Pres. & CEO World Alliance, an international rate brand and reputation. Seth Linden, Exec. VP Feintuch Communications is alliance of premier independent Doug Hesney, VP a strategic relations firm with communication consultancies BLISSPR decades of experience in pro- which are particularly adept at DPR is an award-winning viding integrated financial com- coordinating financial/IR projects and programs. Member of The Worldcom Public firm specializing in public rela- munications services both to Relations Group tions for asset management, companies seeking to go public financial, and professional serv- as well as those already publicly 500 Fifth Ave. View and download entire issues of New York, NY 10110 ices firms. held. O’Dwyer’s magazine in PDF format, as well 212/840-1661 The agency represents both We create holistic programs hundreds of company profiles in our search- Fax: 212/840-1663 well-known and emerging that address the broad range of able online database. www.blisspr.com hedge funds, mutual funds, ETF public company needs. companies, currency traders, Financial PR services range WWW.ODWYERPR.COM BlissPR (www.blissPR.com) wealth advisors and specialty from strategic media relations

24 AUGUST 2012 WWW.ODWYERPR.COM ADVERTISING SECTION Augmagazine:Layout 1 7/25/12 11:59 AM Page 25

PROFILES OF FINANCIAL SERVICES AND INVESTOR RELATIONS FIRMS

social media services for a wide 1,500 attendees at what is now Chief Executive Officer range of clients. one of the premier consumer James Fingeroth, Senior Vice investment events on Wall Street. President & Chief Operating FRENCH | WEST | GREGORY FCA ICR’s competitive advantage Officer reflects the team’s first-hand, sen- VAUGHAN ior-level capital-markets experi- Founded in 1970, Kekst and INVESTOR RELATIONS www.gregoryfca.com Company is one of the world’s www.gregoryfca.com/weekly-recap ence, focused industry groups with deep vertical knowledge, leading strategic communications 112 E. Hargett Street Douglas Rose, COO and more than a decade of com- advisors. Headquartered in New Raleigh, NC 27601 [email protected] munications experience. York City with an office in San 919/832-6300 Francisco, Kekst has approxi- www.fwv-us.com ICR practices an integrated Joe Anthony, Senior VP approach to services in which mately 70 employees. [email protected] teams of former Wall Street and The firm has long been the ‘go , Chairman & CEO corporate veterans, including sen- to’ advisor to senior manage- Rick French Gregory FCA’s Financial David Gwyn, President & ior sell-side analysts, portfolio ments and boards of directors of Communications Division has a Principal managers, and investment publicly-traded companies and 10-year track record increasing Natalie Best, Executive Vice bankers, team with senior PR, private institutions on their most the market presence of asset man- President & Principal media and corporate communica- serious communications issues. agers, wealth management firms, tions professionals to provide a This has resulted in a strategic mutual funds, ETFs, trust compa- unique level of advisory. communications consultancy French|West|Vaughan (FWV) nies and banks. We offer tradi- whose clients benefit from the is the Southeast’s leading pub- tional media relations (in 2011, JOELE FRANK, individual and cumulative experi- lic relations, public affairs and our 50+ clients made over 500 ence of our professionals. brand communications agency, television appearances and 2,500 WILKINSON Over the years, the firm has appearances in leading print, independent or otherwise. BRIMMER KATCHER gained experience in virtually Founded in April 1997 by online and wire service outlets) in every facet of corporate commu- Agency Chairman & CEO Rick addition to integrated PR/social nications and investor relations. media campaigns. Our clients are French, FWV now employs 70 622 Third Avenue, 36th Floor Today, Kekst is a leader in advis- public relations, advertising managing from $100M to over New York, NY 10017 ing on: mergers & acquisitions, and digital marketing experts. $50B. 212/355-4449 bankruptcies and restructurings, Headquartered in Raleigh, Our deep experience enables Fax: 212/355-4554 crisis communications, litigation N.C., FWV also has offices in us to quickly ramp up new www.joelefrank.com support, media relations, and cor- engagements and maintain a con- porate governance, among other New York City, Tampa, Dallas , Managing Partner and Los Angeles. sistent flow of top tier exposure. Joele Frank areas of specialty. Media training is available on- Ranked as the #30 firm for Joele Frank, Wilkinson The firm has been awarded site or in our Philadelphia stu- Strategic Agency of the Year and Financial PR & Investor dios. Brimmer Katcher is widely regard- Relations by O’Dwyer’s, FWV ed as one of the premier financial Financial Agency of the Year multiple times and is proud to boasts extensive financial and ICR and corporate communications investor relations marketing firms in the industry, providing have been named Financial experience, including work strategic counsel for public and pri- Agency of the Decade. In the done on behalf of: American 761 Main Avenue vate companies in the areas of U.S., Kekst and Company is Express Financial Services, Norwalk, CT 06853 Corporate Communications, ranked #1 by Mergermarkets, in Ansbacher Investment, Capital 203/682-8200 terms of advising on the most Fax: 203/682-8201 Investor Relations, Transaction One (NYSE-COF), Central Communications and Crisis transactions. The firm’s global [email protected] client list is strictly private. Carolina Bank, Doctor’s Bank, www.icrinc.com Communications. GE Capital, National Bank of Our Investor Relations practice Commerce, Paragon ICR is a privately owned strate- helps publicly-traded companies LAMBERT, Commercial Bank, RBC Bank, gic communications firm special- communicate clearly and effective- EDWARDS & SunTrust (NYSE-STI), izing in investor and media rela- ly with professional fund and port- TrustAtlantic Financial, tions, corporate communications, folio managers, securities analysts, ASSOCIATES VantageSouth and Wal-Mart crisis management and digital and the individuals who buy, sell Money Centers. media. The firm services more and/or recommend securities. 47 Commerce Avenue In addition to its diverse than 350 clients across 20 Our Transaction Communications Grand Rapids, MI 49503 range of financial PR and focused industry groups, includ- practice assists companies with 616/233-0500 investor relations clients, FWV ing consumer, healthcare, tech- communications for friendly acqui- [email protected] works with many of the world’s nology, energy and industrials, sitions and mergers, unsolicited www.lambert-edwards.com leading companies and brands, and employs 100 professionals at acquisition proposals, tender offers www.facebook.com/lambertedwards www.twitter.com/lambertedwards including international utility offices in Connecticut, New and proxy contests, as well as initial provider ABB, Wrangler, SAS, public offerings (IPOs) and spin- York, Boston, Los Angeles, San Jeffrey Lambert, President and Justin Boot Company, Melitta Francisco and Beijing. ICR offs. Managing Partner Coffee, Moe’s Southwest Grill recently witnessed another year Bob Burton, Managing Director, restaurants, spirits company of double digit revenue growth, KEKST & Financial Communications Hood River Distillery as the firm continued to provide Practice (Pendleton Whisky, Pendleton strategic investor relations servic- COMPANY Jeff Tryka, CFA, Director, 1910, Yazi Ginger Vodka, es such as IPO-readiness, crisis Financial Communications Broker’s Gin and SinFire management, and media relations 437 Madison Avenue, 19th Floor Cinnamon Whisky), and the to new and existing clients. New York, NY 10022 Lambert, Edwards & Associates U.S. Polo Association. The In January 2012, the ICR www.kekst.com (www.lambert-edwards.com) is a agency’s fully integrated cre- XChange, ICR’s annual investor 212/521-4800 top-20 investor relations firm ative and digital team provides conference, hosted more than 150 nationally with clients in 20 states award-winning advertising, Gershon Kekst, Founder & private and public company man- Executive Chairman Continued on page 26 graphic design and digital and agement teams and more than Lawrence Rand, President &

ADVERTISING SECTION AUGUST 2012 WWW.ODWYERPR.COM 25 Augmagazine:Layout 1 7/25/12 11:59 AM Page 26

PROFILES OF FINANCIAL SERVICES AND INVESTOR RELATIONS FIRMS

LAMBERT EDWARDS John W. Heilshorn, Partner Betsy Brod, Partner M&As, MWW has a proven [email protected] [email protected] track record implementing Continued from page 25 212/661-2231 strategic communications cam- Adam Handelsman, Managing paigns that support business Director/Principal, Strategic Monique Skruzny, Partner Media Relations [email protected] objectives and are responsive to [email protected] 212/661-2243 the unique needs of internal and and five countries. LE&A has external stakeholders. Our suc- posted 12 consecutive years of Bruce Voss, Managing cess is predicated on the experi- growth and earned numerous Director/Principal, Investor MBS Value Partners is a cap- ence of senior level counselors national awards, including the pres- Relations ital markets strategic advisory and proprietary methodologies tigious Silver Anvil for Small-Cap [email protected] firm dedicated to helping that leverage the nexus of IR Campaign of the Year and “Best 310/691-7100 (Los Angeles) clients maximize shareholder financial communications and Integration of IR and PR” from value. As the successor to one investor relations, reputation Jody Burfening, Managing of the largest independent Bulldog Reporter in 2011, reflect- Director/Principal, Investor management, influencer rela- ing our strength in messaging and investor relations firms in the tions and crisis and employee Relations country, MBS combines the media that complements our core [email protected] communications to ensure con- IR capabilities. 212-838-3777 (New York) experience and reputation of a tinued productivity, stock per- We serve clients across a variety leading international IR firm formance and customer/brand of industries including consumer, Kirsten Chapman, Managing with the partner-level attention loyalty to assure that our clients retail, healthcare, industrial, busi- Director/Principal, Investor of a boutique advisory. Matter More through often ness services, automotive and tech- Relations Our senior level advisors volatile and uncertain circum- [email protected] draw on decades of experience nology, and are well known among 415-433-3777 (San Francisco) stances. portfolio managers and analysts in investment management, from small-cap to large-cap. research, media relations and as Since its founding in 1984, operating executives to help NICOLAZZO & We provide full-service financial LHA has provided best practices communications ranging from CEOs and CFOs develop and ASSOCIATES investor and strategic media rela- execute customized IR strate- strategic investor relations counsel tions services designed to aid and shareholder issues manage- gies. We also leverage our emerging to Fortune 100 compa- 101 Federal Street, Suite 710 ment to outsourced IR department extensive Wall Street network nies achieve their business goals to introduce clients to influen- Boston, MA 02110 services and hands-on execution and branding objectives. Over the 617/951-0000 including press release writing, tial buy-side, sell-side and years, the firm continuously media audiences, creating posi- Fax: 617/439-9980 road show development, investor refines service offerings to meet [email protected] targeting and analysis, analyst out- tive awareness and interest in www.nicolazzo.com the challenges our clients face in the marketplace. reach, non-deal road shows, media a rapidly evolving business envi- relations, social media integration With offices in New York, Richard E. Nicolazzo, Managing ronment, all while addressing San Francisco, Dallas, London Partner and perception studies. We also company-specific opportunities host an annual analyst and investor and São Paulo, MBS works Joe M. Grillo, Partner in multiple industries and sec- with small and mid-size public Richard Adler, Kathleen conference in Chicago — the 9th tors. Services include traditional Buckley, Lisa-Marie Cashman, Annual Lambert Edwards SMID- and private U.S. companies, as investor relations programing, well as offering specialized Elizabeth Hailer, Robert WEST Conference — for small- digital IR and influencer rela- Hughes, Ruth Maron, Victor cap and mid-cap companies look- services in bondholder, private tions, along with strategic media equity and media relations. Emmanuel, D.A. Hayden, Craig ing to connect with investors. relations geared to impacting Orsi, J. Peter Rizzo, Sr. Internationally, we have exten- Consultants Our team is comprised of former both the mainstream media and corporate IROs, Wall Street profes- sive experience working with the verticals of our clientele. Latin American and European sionals and global agency veterans Nicolazzo & Associates is a Today, we are a full-service companies seeking to raise their who combine a Midwest work industry leader headquartered in nationally-known, award-win- ethic with expert execution tailored visibility in the investment New York City, with offices in community. ning strategic communications to exceed the needs of each client both Los Angeles and San management firm that provides and maximize the value of their Francisco. We work together in high-level professional counsel “investment brand.” Most impor- dedicated account teams, drawing MWW and services to a diverse, tantly, LE&A’s award-winning pro- on valuable collective experience national, and international grams yield tangible results — to create innovative and custom One Meadowlands Plaza client base. A boutique organi- clear communications, increased tailored programs. Our veteran East Rutherford, NJ 07073 zation founded more than three investor confidence, improved liq- executives are committed to not 201/507-9500 decades ago by Richard E. uidity, and enhanced relationships only delivering the best in Fax: 201/507-0092 Nicolazzo, the firm practices a — that help clients achieve their investor and strategic media rela- www.mww.com proprietary counseling model business objectives and support tions counsel, but the tactical designed to leverage an organi- improved market valuation. Michael W. Kempner, President implementation needed to drive / CEO zation’s core strengths to results that matter. enhance brand and enterprise LIPPERT MWW is one of the nation’s value. Services include HEILSHORN & MBS VALUE top mid-sized public relations investor relations, crisis com- firms and one of the ten largest munications management, ASSOCIATES PARTNERS independent global agencies. strategic planning and commu- (LHA) We provide strategic counsel nications, media relations and 424 Madison Avenue, 4th Floor and integrated corporate and training, management consult- New York, NY 10017 financial communications pro- ing, merger and acquisitions 800 Third Avenue, 17th Floor www.mbsvalue.com grams for both publicly traded communications, corporate New York, NY 10022 212/750-5800 and privately held companies restructurings, issues manage- across a multitude of situations , Partner ment, litigation communica- Keith L. Lippert, Founding Lynn Morgen and sectors. From merger com- Partner [email protected] tions, labor/employee relations, [email protected] 212/223-4147 munications to initial public community relations, market offerings, restructurings to research, executive speechwrit-

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PROFILES OF FINANCIAL SERVICES AND INVESTOR RELATIONS FIRMS

ing, and branding. ments, breaking news, CSR pro- pre-IPO companies to cultivate tools and measurement. grams, perception audits and broadly based recognition of NATIONAL employee communications. Our their performance and prospects SARD VERBINNEN New York City office in Midtown among key market audiences, INVESTOR Manhattan adds an on-the-ground fostering full and fair valuations & CO. RELATIONS financial media capability. and, ultimately, lowering the A founding member of the cost of capital. We work with 630 Third Avenue, 9th Floor INSTITUTE Worldcom Public Relations non-public companies and New York, NY 10017 Group, our reach and influence organizations whose communi- 212/687-8080 www.sardverb.com 225 Reinekers Lane, Ste. 560 are worldwide. cation challenges require an in- Alexandria, VA 22314 depth understanding of capital Leading the Travel Industry George Sard, Chairman & CEO 703/562-7700 RF | BINDER markets. Our capabilities include Paul Verbinnen, President [email protected] counsel on corporate and finan- www.niri.org 950 Third Avenue, 7th Floor cial transactions and corporate Sard Verbinnen & Co is a lead- by Providing Professional New York, NY 10022 positioning; investor targeting ing strategic corporate and finan- Matt Brusch, Vice President, and outreach; corporate gover- Communications and Practice 212/994-7501 cial communications firm with Information www.rfbinder.com nance assessment and compli- offices in New York, Chicago, Travel Services Since 1972 ance; perception studies; finan- San Francisco and Los Angeles. , CEO Founded in 1969, NIRI is the Amy Binder cial media relations, and crisis We provide communications Robert D. Ferris, Executive and issues management. professional association of corpo- Managing Director; Chair, Capital counsel and services to clients rate officers and investor rela- Markets Practice including multinational corporations consultants responsible for RUDER FINN INC. tions, smaller public and private companies, investment firms, communication among corporate RF|Binder is a full-service management, shareholders, secu- financial and professional service public relations agency based in firms, and high-profile individu- rities analysts and other financial New York with offices and 301 East 57th Street community constituents. The New York, NY 10022 als. bureaus in Boston, Chicago, 212/593-6400 The firm’s highly experienced largest professional investor rela- Philadelphia and Miami. We tions association in the world, senior professionals provide serve clients wherever their Kathy Bloomgarden, CEO sound, objective advice and exe- NIRI’s more than 3,500 members interests and those of their cus- represent 2,000 publicly held Rachel Spielman, EVP and cution support to clients across a tomers, investors and the other Global Head of Corporate broad spectrum of industries. Our companies and $5.4 trillion in Practice constituencies intersect. These work encompasses corporate stock market capitalization. center in industries such as Louise Harris, Chief Global Membership in NIRI entitles the Strategist positioning, media relations and financial services; lifestyle and investor relations, transaction investor relations professional to healthy living; technology; food a wide range of benefits such as communications, litigation sup- and nutrition; education; and Ruder Finn designs and port, crisis communications, and educational programs, publica- energy and the environment. implements award winning tions and networking. For more other special situations. At RF|Binder, we help clients financial communications pro- Founded in 1992, our firm is information about the “graduate achieve their goals by using mar- grams to help organizations school” of investor relations, recognized for delivering candid ket research and communica- enhance corporate reputation, and thoughtful strategic advice, please contact NIRI’s tions best practices to build build trust and increase share- Communications Department at excellent written product and tac- awareness, third-party support holder value. tical execution, and tireless advo- 703/562-7700, or visit and positive word of mouth Working with some of the • Business Travel Consultants www.niri.org. cacy on behalf of our clients. Our among the people most impor- world’s leading global compa- senior professionals are actively PADILLA SPEER tant to our clients. nies in healthcare, technology, engaged in both counsel and • Strategic Meetings Management We understand the stakeholders energy, automotive and financial implementation. Their diverse BEARDSLEY — investors, consumers, cus- services, Ruder Finn has particu- backgrounds and expertise, tomers, media, non-governmen- lar expertise in communications unparalleled relationships and • Government Travel Contractors Locations: tal organizations, public offi- around corporate strategy and credibility with the media, and 1101 W. River Pkwy. cials, employees and academics performance, controversial and Minneapolis, MN 55415 deep understanding of the invest- North America 612/455-1700 — and how their collective opin- contested bids, corporate ment community drive the firm’s • Over 200 Offices Worldwide www.padillaspeer.com ions and beliefs help shape a restructuring and complex glob- ability to help our clients manage Middle East company’s reputation, influence al issues. We work with com- complex situations and success- • Competitive Online Booking Marian Briggs, Senior VP valuation and affect its business panies reaching out to new fully communicate to multiple Al Galgano, VP goals. RF|Binder applies this stakeholders and financial mar- constituencies. Europe knowledge to help organizations kets, as well as enhancing their Rated highly by our clients for engage the critical influencers on focus on existing ones. • One-on-One Travel Consultation strategic counsel and client satis- Wall Street, Main Street and We continually strive to add SCHNEIDER Asia faction, Padilla Speer Beardsley inside the Beltway. Our flat value to our clients’ most critical ASSOCIATES • Leisure Travel Experts Find out about cruises sailing from New York is an integrated communications organizational structure encour- business needs by bringing them and other worldwide destinations firm with deep expertise in ages internal collaboration and a strategic thinking, global con- 2 Oliver Street, Suite 901 investor relations and corporate unique approach to idea genera- nections, insights and innovative Boston, MA 02109 communications. We focus in the tion and problem solving, which use of media. 617/536-3300 888-333-3116 health care, technology, financial, in turn consistently produces Using proprietary research www.schneiderpr.com manufacturing and consumer more effective, strategically- from RF Insights to shape strate- industries — from start ups and based, creative solutions for gy, Ruder Finn’s core activities Joan Schneider, President and small-cap Nasdaq companies, to clients. include message development, Creative Director mature, NYSE-listed firms. We RF|Binder’s capital markets stakeholder mapping, executive Phil Pennellatore, COO/Partner provide counsel ranging from team provides counsel and serv- positioning, global analyst and M&A support and investment ices that help clients succeed in media relations, as well as cre- Successfully communicating 212-563-3500 • OmegaNewYork.com community targeting to handling the global competition for capi- ation and management of inno- Continued on page 30 potentially volatile announce- tal. We work with public and vative online and social media World Headquarters • 3102 Omega Office Park • Fairfax, VA 22031• 703-359-0200 28 AUGUST 2012 WWW.ODWYERPR.COM ADVERTISING SECTION Augmagazine:Layout 1 7/25/12 12:00 PM Page 29

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PROFILES OF FINANCIAL SERVICES AND INVESTOR RELATIONS FIRMS

SCHNEIDER ASSOCIATES and mid-sized private businesses bution and Edgar Filings. in capital markets, asset manage- and associations. Our clients ment, hedge funds, real estate, pri- Continued from page 28 include leading consumer prod- TREVELINO / vate equity, professional and finan- ucts, pharmaceutical, technology cial services, information and and financial companies. KELLER financial technology, and public Sloane & Company provides companies in all sectors. From key messages to diverse audi- expertise to clients across a wide 949 W. Marietta St., Suite X-106 building visibility and brand to ences in the digital age is one of range of industries in crafting Atlanta, GA 30318 financial PR, transactions, product the most daunting challenges fac- their communications strategies. 404/214-0722 and service launches, and managing today’s corporate leaders. The firm’s diverse portfolio Fax:404/214-0729 ing crises, Walek delivers results At Schneider Associates, we’ve inspires our professionals to think [email protected] that help clients build business. created public relations, digital www.trevelinokeller.com outside of the traditional bounds www.wheelhousetk.com Walek & Associates has received PR, social media and marketing to reach clients’ key constituen- numerous awards and recognitions communications programs for cies including customers, employ- Dean Trevelino, Genna Keller, from organizations including hundreds of law firms, financial ees, investors, global and local Principals O’Dwyer’s, HedgeWeek, PRWeek, services providers, commercial opinion leaders, industry experts Hedge Fund Journal and the real estate brokers and developers, and political decision makers. Trevelino/Keller, one of the 30 National Investor Relations engineering and environmental Our professionals understand best firms to work for in North Institute. firms, universities, private schools and recognize the impact that America, delivers an integrated and nonprofit organizations to media coverage has on a client’s communications strategy of public WEBER improve their market and brand valuation and reputation, particu- relations, social media and market- SHANDWICK positions. Our programs acceler- larly as it relates to key issues in ing communications for public and ate awareness and engagement, national, state and local govern- private companies. Its depth within and help our clients achieve meas- 919 Third Avenue ments. Sloane & Company’s pub- financial services includes existing New York, NY 10022 urable growth through marketing lic relations programs are effec- and emerging segments such as tra- 212/445-8000 communications strategies that tive because they begin with a ditional banks and credit unions, Fox Court generate significant national or complete understanding of each alternative lending, mobile applica- industry news coverage, including 14 Gray’s Inn Road client’s business fundamentals tions, loyalty marketing, venture London WC1X 8WS marquis placements in publica- and future goals. Every decision capital, private equity, biopay- The Wall Street United Kingdom tions such as is tied to these strategic objec- ments, payment processors, ecom- 44-20-7067-0000 Journal or The New York Times. tives, helping our clients shape merce providers and other first Schneider Associates is a full- their core positioning in the mar- movers. Paul Jensen, Chairman, North American Corporate Practice service public relations firm spe- ketplace while aggressively and Founded in 2003, the firm has cializing in Launch Public Jim Donaldson, Executive Vice creatively pushing that position- worked with companies such as President, Corporate Relations®. Clients include ing through global, national and Capital Access Network, Communications EMEA prominent firms such as Cassidy regional media outlets. AdvanceMe, NewLogic, Turley/FHO Partners, MIT Sloan Paymetric, BioPay, Delta Weber Shandwick’s Financial School of Management, EF SNL IR Community Credit Union, Vesdia Communications practice com- Education First, Rockland Trust and others aligned in some way bines the market-specific expertise, and Posternak Blankenstein and SOLUTIONS with the financial services segment. experience and strategic financial Lund. Learn more: More information can be found at communications and investor rela- www.schneiderpr.com trevelinokeller.com. tions skills of a specialist firm, with www.snl.com/irsolutions the resources and international SLOANE & WALEK & reach of a full-service global Mike O’Connell, Director agency. COMPANY ASSOCIATES As experts in communications SNL IR Solutions builds and relating to international flows of 7 Times Square, 17th Floor manages IR Web sites for com- 317 Madison Avenue, Suite 2300 capital, from initial public offerings New York, NY 10036 panies in various industries New York, NY 10017 to mergers and acquisitions, spin- 212/486-9500 across the market cap spectrum, 212/889-4113 offs or demergers, bankruptcies and Fax: 212/486-9094 from multibillion-dollar finan- Fax: 212/889-7174 restructurings to quarterly earnings www.sloanepr.com cial institutions and REITs to www.walek.com outreach, Weber Shandwick coun- Elliot Sloane, CEO small community banks — and sels listed and privately-held com- everywhere in between. 1260 Yellow Pine Avenue John Hartz, Whit Clay, Darren Boulder, CO 80304 panies and organizations on a glob- Brandt and Josh Hochberg, SNL builds free trial sites for 720/470-3653 al basis, advising on some of the Managing Directors new customers and redesigns largest and most complex transac- existing sites free of charge for 31/F, Entertainment Building tions in recent years. Sloane & Company is an indus- current clients. We provide a 30 Queen’s Road We work closely with clients and try-leading strategic communica- custom design that mirrors your Central, Hong Kong their advisors to ensure consistent tions firm specializing in corpo- brand image and matches your 852/2273-5102 Fax: 852/3103-1011 targeted outreach to key stakehold- rate and financial public relations, corporate site. We then integrate ers including investors, analysts, investor relations, transaction your IR site with our all-in-one Thomas Walek, President employees, customers and journal- support, public affairs, crisis and solution with features such as an Armel Leslie, Principal ists to support effective communi- litigation support. Differentiating advanced IR Console for Mary Beth Kissane, Principal cation of important financial activi- us from the crowd, the key to the Website management, free ties both locally and globally. firm’s success is bringing a fluid redesigns, a mobile-friendly Walek & Associates is an award- Established relationships with key and experienced capital markets platform and exceptional client winning, independent, global financial, business and industry orientation to all our assignments. support. financial and corporate public rela- media and investment community Over the past ten years, the Through industry leading tions firm. Founded in 1998 and influencers and real-time local mar- firm has earned a reputation for partners, SNL also offers a full with offices in New York, Boulder ket intelligence in leading financial providing strategic counsel to “C” suite of ancillary services and Hong Kong, and partners in centers allows Weber Shandwick to level executives of Fortune 500 including Conference Calls, London, Walek specializes in pub- identify and mobilize advocates in public companies, as well as large Webcasts, Press Release distri- lic relations and investor relations support of its clients’ business

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O’DWYER’S RANKINGS TOP FINANCIAL PR & INVESTOR RELATIONS FIRMS

1. 23. 800,000 Edelman New York $30,032,105 Black Twig Comms. Wash., D.C.

2. 24. 790,924 ICR Norwalk, CT 29,950,681 Beehive PR St. Paul

3. 25. 649,237 APCO Worldwide Wash., D.C. 13,396,680 CooperKatz & Co. New York

4. 26. 575,000 Ruder Finn New York 12,818,018 Seigenthaler PR Nashville

5. 27. 525,137 Prosek Partners New York 8,173,359 Jackson Spalding Atlanta

6. 28. 383,262 MWW Group E. Rutherford, NJ 5,967,000 Linhart PR Denver

7. 29. 330,000 Intermarket Comms. New York 4,837,425 Trevelino/Keller Atlanta

8. 30. 301,074 Makovsky & Co. New York 4,000,000 French | West | Vaughan Raleigh

9. 31. 259,750 RF | Binder Partners New York 3,800,000 TransMedia Group Boca Raton

10. 32. 223,667 Atomic San Francisco 3,000,000 McNeely Pigott & Fox Nashville

11. 33. 211,874 Dukas Public Relations New York 2,784,000 Casey Comms. St. Louis

12. 34. 200,000 BlissPR New York 2,710,000 Allison+Partners San Francisco

13. 35. 194,600 Levick Strategic Comms. Wash., D.C. 2,497,798 Schneider Assocs. Boston

14. 36. 183,272 Gregory FCA Ardmore, PA 2,300,000 GodwinGroup Jackson, MS

15. 37. 151,425 Padilla Speer Beardsley Minneapolis 1,753,724 Maccabee Minneapolis

16. 38. 105,905 Lambert, Edwards & Assocs. Grand Rapids, MI 1,350,000 Feintuch Comms. New York

17. 39. 78,000 Qorvis Comms. Wash., D.C. 1,300,000 Furia Rubel Comms. Doylestown, PA

18. 40. 62,726 Regan Comms. Group Boston 1,072,400 Kohnstamm Comms. St. Paul

19. 41. 35,310 Finn Partners New York 1,071,000 Rosica Comms. Paramus, NJ

20. 42. 32,300 Rasky Baerlein Boston 1,020,500 Richmond PR Seattle

21. 43. 27,566 Gibbs & Soell New York 1,016,146 Bridge Global Strategies New York

22. 44. 22,088 Lane PR Portland, OR 872,936 Zeno Group New York

FEATURE Communications on trial: when lawyers seek PR

Lawyers first turned to public relations firms for expertise 35 These lawyers turned to media relations. years ago when laws governing professional services By far, the most complex and difficult removed ethical barriers put into place by state bar associa- field of PR for lawyers is criminal tions. For both professions however, how to properly market defense. Criminal defense lawyers may use print and website advertising proac- legal services remains largely uncharted. tively to put their name in front of poten- By Margaret “Marti” Mackenzie tial clients, people arrested and criminal- ly prosecuted. However, by far the most concerns about ethics. I’ve found that one effective public relations for them is onsumers usually turn to lawyers of the most effective ways to attract new reacting to the media when representing a for help when they’re trying to clients to a corporate or commercial law high-profile client: from O.J. Simpson in Cprotect themselves or resolve an firm is to include testimonials of very sat- 1994 to Casey Anthony in 2011. unpleasant matter. Legal services can be isfied clients in the marketing message. Criminal defense lawyers find their far more difficult to sell than say, an However, obtaining these testimonials reputations enhanced and established organic pet food. To drum up business for will be daunting. Lawyers will be con- through media coverage of high-profile a personal injury lawyer — one of the cerned about client confidentiality and clients. Conducting media relations for first legal disciplines to advertise — a PR the ethics of asking someone to come for- an accused is always highly personal. firm has to create a negative message. ward to discuss the legal services they How can a public relations professional Instead of promoting healthy meals with needed in the first place. put an attractive face on the accused or a cute puppy, they’ll look for a photo of a These testimonials fall into the catego- his or her lawyer when the media cover- vicious dog barring its teeth and add the ry of referral marketing. Referrals are the age vilifies them with details of a heinous message “we handle dog bites.” original professional services marketing crime? Today, legal services marketing tactics. In the personal injury field, a To succeed in this specialized profes- include all kinds of lawyers. For large referral generates a monetary payment sion, a publicist must be willing to work and small firms the approach can be to for the referring lawyer. In a sense, pro- closely with people who are often in the market the firm or focus on an individual fessional services’ marketing is about worst situation of their lives. Whether they lawyer. One of the challenges is that creating awareness referrals through are accused of a crime that carries a life- lawyers represent very specific and dif- advertising, marketing programs and changing penalty these clients (and those ferent clients. To handle public relations media relations. around them) are in crisis. To effectively for lawyers or a law firm, the PR expert Civil trial lawyers are perhaps the most represent these people and their families, must understand the product — legal aggressive advertisers in the electronic the media specialist must earn their trust as services — as well as the language that media. Whenever possible these personal well as have the trust of their criminal lawyers use. injury and wrongful death practitioners defense lawyer. There are different strategies and use a high-profile case — especially a Another significant characteristic of unique skills required for corporate attor- high-dollar verdict of settlement — to media relations for the accused is budget- neys, civil litigators and criminal defense catapult themselves into the news. For ary. The majority of people arrested for lawyers, and each of these legal special- the majority of these lawyers, the news crimes in the United States do not have the ists need to market their services. worthy case is elusive. Thus, their mar- resources to pay both an experienced and Practicing law today is competitive. keting programs will include tugs on the expensive criminal defense lawyer and a According to a recent National Law emotions of injured people and their fam- media relations expert, even though media Journal report: “schools experienced a ilies. The challenge is to promote the relations may become critical to the out- 25% decline in applicants nationwide lawyer as compassionate and at the same come of their defense. during the past two years, due in part to time aggressive and relentless in the pur- In every area of legal service PR, the the tight job market for new lawyers.” suit of monetary damages. Personal objective is to attract clients. For some Corporate law firms often engage in injury advertising was the first out of the lawyers the PR objective is to become a marketing projects that reach out to exist- gate and created the most concerns about “star” or to make their firm stand out in the ing and potential clients through personal the ethics of legal service marketing. ever-expanding galaxy of the legal profes- meetings and entertainment. They’re These trial lawyers were also the ones sion. Yet unless they employ a PR expert open to producing brochures and even who repeatedly fought Bar association who speaks their language, respects their newsletters although websites have now rules that tried to muffle them so that ethical concerns and earns the trust neces- largely replaced print marketing tools. A today PR for all lawyers are protected sary to push the envelope, the benefits will firm may budget and hire a public rela- speech under the first amendment. likely be less than stellar. The challenge to Integrity, trust essential tions company or have an in-house mar- lawyers is both understanding the compo- keting professional. Early shenanigans in personal injury nents of public relations and finding a PR Testimonials key advertising, like a South Florida lawyer expert who understands them. PR professionals will find the corpo- peddling and falling off a tricycle accom- Margaret “Marti” Mackenzie, a New rate client the most comfortable to repre- panied by the message that they can sue York based public relations expert for sent. They’re looking for business-to- the manufacturer, led refined and respect- lawyers, is the author of “Courting the business marketing. Yet, unlike a retail ed personal injury lawyers to seek a dif- Media: Public Relations for the Accused company, law firms will have special ferent way to market their expertise. and the Accusers.”

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Educating professional services to social media’s value For those in the professional services industries — lawyers, accountants, consultants of any stripe — expertise is their spending with a client, a potential client or prospective business partner. Have a most valuable asset. But despite being among the smartest strong case at the ready for every media people in the room, these professionals aren’t always the opportunity or speaking engagement you best equipped to respond to a breaking news story or bring to them, from how it fits with their embrace a new communications medium. business goals, how it will enhance their credibility on issues that tie back to their By Rich Tauberman business, build relevance and strength- try as we can. Who are their clients? en reputation. he reasons for this disconnect? What is the expertise that sets them Advocate the Well, for one, they’re busy people apart? What topics are fair game and power of social T— busy people who are used to which are off-limits? What publications media. Professional being compensated (sometimes hand- do their key audiences read and what service clients are somely) for their time and insights. media do they consume? By understand- in the business of Giving those things away may not seem ing the clients’ business goals and under- discretion and con- all that appealing, relegating PR to a standing the world in which they operate, fidentiality. As hobby or a bother – often a little of both. we can more effectively indentify the such, sharing pub- Rich Tauberman For another, people in the professional opportunities that will have the greatest licly isn’t a natural services are used to being the center of impact on their practice and earn their inclination, no mat- attention, whether it’s in a court room or trust. And it saves time and energy. For ter how innocuous the topic. Yet, it can be board room, and seeing immediate example, if your client’s firm represents a powerful tool to bring in, stay relevant returns on their efforts. So they can Barclays, don’t recommend your client as and showcase expertise, reinforce rela- expect a lot from their media relations a potential expert on the Libor scandal. tionships with current clients and reach activities, and may not see the value in a And have a system in place for vetting new ones. It’s our job to show the tangi- quote buried in paragraph 17 of their potential conflicts. ble, measurable results that can be gained local paper. Clearly set and manage expectations. from having and maintaining a strong They also don’t always see the value in Not every quote is going to make it to the social media presence and to help them social media either. Many consider social front page of the Wall Street Journal or navigate the landscape and rapid media channels, such as Twitter or Financial Times, nor is everyone ready response. Facebook, irrelevant to their business and for primetime. And clients should know In a hyper-connected, hyper-competi- sector. Many lawyers and accountants, in — that’s ok! Work with your clients to tive, 24/7 world communications is more particular, have been slow to embrace help them understand that a big media critical than ever. And a thoughtful, social media, missing the inherent oppor- opportunity is not the end-all, be-all — strategic, targeted public relations pro- tunities to establish thought leadership there is value in building a cadence and gram with defined goals and managed and credibility, reach multiple constituen- long-term relationships with the reporters expectations is how professional services cies at once and engage with audiences that matter most to their audiences. firms can stay relevant and build reputa- most important to their business. Articulate value in terms important to tions and the bottom line. Finally, these kinds of professionals are their business. Every minute spent on Rich Tauberman is Executive VP at often harried by deadlines and the time- public relations is a minute they could be MWW. lines of their clients, leaving little time to appreciate the immediacy and quick turnaround required by the split-second news Struggling Savient gets PR support cycle. As a result, emails requesting com- ment are left unopened, and calls can go truggling drug maker Savient Johnson. The company also announced a unanswered, in lieu of more “pressing” Pharmaceuticals is leaning on PR reorganization plan that includes an business, and deadlines and opportunities Ssupport as the New Jersey compa- approximately 35% workforce cut in a are missed. ny cuts 35% of its work force and installs bid to save $56 million annually by All of which can present some interest- a new CEO. 2013. ing challenges for those of us charged Savient, struggling amid disappoint- Savient shares are trading below $1. with their public relations success. The ing sales of its gout drug Krystexxa, has “We sincerely regret having to make first step? Accepting that these challenges engaged Joele Frank, Wilkinson the difficult decision to reduce our work- are just part of the job. But that doesn’t Brimmer Katcher to shore up its commu- force and want to thank the affected mean it has to be a constant battle. Here nications under senior director of IR and employees for their contributions,” said are a few strategies that save time (yours communications Mary Coleman. board Chairman Stephen Jaeger. and theirs) and improve the efficacy of In July, Savient promoted executive “However, given the current environ- your programs. VP and North American Commercial ment, these actions are necessary to align Know your clients’ business inside and Operation President Louis Ferrari to the Savient’s costs with the market to best out. It’s our job to know as much about CEO slot vacated in February by John position the company going forward.” our client, their expertise, and their indus-

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FEATURE Professional services in the realm of corporate reputation

The biggest challenge many professional communicators face #2: Consumers are looking for authen- when counseling clients in the professional services industry ticity. They want an honest relationship is often the notion of ensuring clients don’t undervalue the with the companies that produce the importance of corporate reputation. products and services they buy. Truth and honesty create an emotional com- By Eric Bovim mitment. Emotions drive sales. Kodak is an example of a company that lost its paradigm shift. They want to buy more way: it wasn’t that t may seem like a counterintuitive than just a product; they want to buy val- people stopped observation for an industry whose ues, a community, a vision. Consumers buying film, but Iproduct is intellectual capital — the are no longer simply evaluating compa- Kodak forgot its sale of which is almost entirely driven by nies on financial and product perform- mission always reputation. The allure of a McKinsey, ance. They’re also interested in commu- was to help people clearly, is its brand. Battered brands, nity engagement, social responsibility capture memories. though, become punch lines and are and sustainability. What would rarely salvageable. Reputation is either a Qualifying a brand’s reputation, the Disney really be if magnet or a repellent. ultimate intangible, is not hocus pocus. it were not a com- But reputation can also be a complete The Harris Poll Reputation Quotient pany about bring- Eric Bovim non-factor either way. And that neutrality (RQ), a venerable annual survey of ing children’s fan- is the very differentiator on which many more than 17,000 Americans, tracks the tasies to life? companies fail to capitalize. perception of America’s most visible #3: Great 21st-century brands whole- The most successful American compa- companies via a scoring system. heartedly embrace corporate social nies know that we are in the midst of a On the whole, the perception of cor- responsibility. For them, it is not a mere values revolution in American business – porations is in decline. Just 20 percent line item in the public relations budget – how you do business is now more impor- of those polled in the 2012 survey it’s in their DNA. For example, tant that what you are doing in business. viewed corporations positively, and 60 Starbucks’ CEO Howard Schultz made a Consumers are the tip of the spear in this percent felt corporate reputation had bold and brilliant decision last year to PR news briefs declined. The number of companies sell wristbands in his stores to provide with “excellent” reputations, as deter- capital to American small businesses. “If FIRMS DRESS PR FOR mined by Harris, fell by half from last banks won’t do it,” he thought, “why APPAREL RETAIL TAKEOVER year. Financial services and banking can’t we?” Women’s apparel retailer Christopher & Banks Corp. companies came out of the survey badly Nowadays, just about every company is working with ICR for investor relations counsel as it bludgeoned; Bank of America, AIG, has some kind of flashy marketing cam- fends off a hostile takeover bid from Boston hedge fund Berkshire Hathaway, Wells Fargo, JP paign. But the public knows the differ- Aria Partners. Aria, which is working with Muirfield Partners for PR Morgan Chase and Goldman Sachs suf- ence between the real thing and a counsel and media relations, made an unsolicited, fered the worst drops in RQ scores on façade. This is not about checking off $1.75-per-share offer ($64 million) in July to take over the entire list. the right “we care about you” boxes, it is the Minnesota-based operator of 672 stores. Aria owns It should be noted that, historically, about ensuring that your values impact a 4% stake. C&B’s board on July 6 rejected the bid and affirmed companies whose RQ scores drop and sculpt every decision you make. The its commitment in a new management team and strate- below 50 run a significant risk of being result: employee and consumer trust. gic plan, saying Aria’s proposal “does not reflect the taken over by the government or going Progressive advertising is a trend full, long-term value stockholders are expected to out of business — some examples among those companies seeking to win receive.” C&B also adopted a so-called poison pill include infamous flameouts like Enron, new customers and gain an edge in a shareholder rights plan that takes effect at ownership of 15% of outstanding shares. MCI, WorldComm and Global crowded marketplace. There are lots of Aria partner Edward Latessa blasted C&B’s board in Crossing, as well as mangled brands computers out there, but people buy a statement: “It is mindboggling that as the value of the like Halliburton, Fannie Mae and Apple’s for a reason. They identify with company continues to deteriorate and the losses con- Freddie Mac. the brand and its aspirations. tinue to mount, that this board would continue to col- lect directors’ fees that amount to more than 100% of What can be done about this? Rebuilding a tarnished reputation is the company’s earnings.” #1: Companies first must identify possible. In the age of social media, this Latessa, in an acerbic letter to C&B board chairman, what their brand stands for. Our collec- feat has never been more possible. But Paul Snyder, released to the press, wrote: “Since you tive trust in the corporation has been it’s a game of finesse. Today’s con- joined the board, the stock is down 89%. If you were a broken. It is time for a values revolu- sumer has instant access to raw infor- contestant on ‘Project Runway,’ you would have been laughed off.” tion. A moral renaissance, if you will, mation. Everyone, in effect, is now a C&B said last month that net sales fell 15% for the where HOW you’re doing business is shareholder. Everyone is also a poten- 13-week period ended April 28 while its operating loss more important than WHAT you’re tial critic. And everyone knows that the widened to $13.4 million compared with 2011. doing (the product or service). How digital trail on bad deeds is always ter- Mickey Mandelbaum, the former Kekst and Company hand who was a VP of Corporate many large enterprises have a Chief abytes longer than the one on good Communications at Banco Santander, reps Aria through Culture Officer? What, beyond com- deeds. his Muirfield Partners firm. mercial gain, does the corporation hope Eric Bovim is CEO and Co-Founder of to leave as its legacy in the world? Gibraltar Associates.

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Overcoming ‘appreciation gap’ in professional services PR When considering PR, one often thinks of corporations, consumer brands and celebrities, and whether to position everyday profit and loss statements, or look good after some unpleasant news. Few however, consider professional services fields such as lawyers, doctors, independent business professionals and entrepreneurs also benefit from PR as a means to expand their practices and growth. By Ronn Torossian

seeing the results from a narrow lens clients’ knowledge, experience and ne would think that anyone could might reflect on their experience and everyday routines benefit from PR. While there are view routine appearances in print or on will do very Ostandard models that work with TV as negligible: “we had a few quotes, well. Clients who public relations implicitly, professional but it didn’t do anything for us.” appreciate the need services clients benefit tremendously Here, the PR firm failed to communi- to take the media when used right. Here’s why. cate to and with the client about the generated and re- While many doctors and lawyers don’t overall strategy, and the lawyer or doc- purpose it through- have anywhere close to the budget for tor developed a sense that the PR team is out social media massmarket advertising, they can and just shallow, or even believed that they and Internet venues have built their practices by becoming that they are paying for a learning curve. in order to spread it sought-after experts in their fields, partic- Clients who appreciate the benefit of to their targeted ularly if they have developed a unique time and patience, and eventually get the audiences will find Ronn Torossian technique and can speak with authority desired feature in the media venue that that PR is one of on a niche area of medicine about which truly impacts the business model has a the most useful marketing mediums few other doctors know. more valuable asset than any ad could available. Benefits abound bring, and can even use media like that PR works best when a client is fully There are several factors that make to justify modest increases in fees or aware of what PR does and does not working with professional service com- product prices due to the added cache of do. The first key to unlocking a good PR panies a greater challenge than profes- the coverage. experience is hiring professionals who sional communicators may find working They benefit when their views and can generate the results, given the time with other sectors. professional insights are published in and proper tools. Smaller entities often feel the impact trade magazines, newsletters, and pro- Equally as important, however is the of paying for PR out of their operating fessional association quarterlies that second key; the proper management of expenses more than others, and tend to cover their industries. professional clients’ expectations so that get antsy when they pay an invoice and Being seen as a thought leader in an the results gained serve their proper role reflect on their PR team’s accomplish- industry or as an insider with important in achieving the overarching goals for ments while assessing the immediate ideas to share will build credibility and which they looked to a public relations effects the spent money had on their end garner speaking engagements, network- campaign in the first place. goals. ing opportunities, clients, and eventually Ronn Torossian is CEO of 5WPR. Additionally, professionals can exposure in national publications. Beat PR news briefs become overly focused on the technical reporters for the New York Times, matters of their work and lose sight of Washington Post, Wall Street Journal, FTI CUTS 3% OF STAFF the fundamental nature of relationship and other national papers read trade pub- FTI Consulting announced in July it would lay oriented transactions, as is the role of lications in search of story ideas and off about 3% of its 3,800-staff workforce and take PR. They have their own lingo and sources. a $28 million charge in the second quarter as it industry mannerisms that are unique, but In advertising, you pay for ads and streamlines offices in a bid to cut costs. to garner publicity, they need to appeal to they run regardless of the actual busi- FTI said 115 employees were notified by June 29 of termination. more common denominators. ness they generate. With PR, you pay for “The majority of affected employees were This brings on the appreciation gap knowledge, experience and skill, and employed in the two business segments most between a PR professional and the client. you pay for time. Obviously, you pay impacted by current economic conditions,” the PR companies usually have very little, if for results too, but getting those results company said in a statement, which cited “cur- any, experience working with clients in rent business demands and global macro-eco- takes all of the former. Writing, calling, nomic conditions” for the moves. the professional services sector, and relationship building, wining, dining The company said it will reduce excess real often know only a standard pitching rou- and selling the client and the story all estate capacity amid the layoffs but did not spec- tine. take skill and time. It is rare that a ify which two units will be affected. FTI’s five These issues put a pressure on PR client’s credentials are established business units include strategic communications (formerly FD), corporate finance/restructuring, firms that’s not necessarily present with overnight and even rarer that any technology, economic consulting, and foren- consumer brands, where media appear- achieved visibility sustains itself with- sic/litigation consulting. ances or shareholder appeasement are out the constant push by a PR agent FTI did not return an inquiry from O’Dwyer’s paramount. working to maintain a client’s relevance about the cuts’ impact on strategic communica- One size never fits all tions. and availability. Novice professional services firms PR that capitalizes on professional

AUGUST 2012 WWW.ODWYERPR.COM 35 Augmagazine:Layout 1 7/25/12 12:00 PM Page 36

Profiles

O’Dwyer’s Guide to: PROFESSIONAL SERVICES

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for some of the world’s most ing work done on behalf of: Coats marketing strategies to help pro- BEEHIVE PR prestigious strategy consulting, & Bennett, PLLC; Kraftworks; fessional service providers build accounting, actuarial, banking, Legacies & Lifelines; Lisa brand equity and reputation, sell 1021 Bandana Blvd. E., #226 HR and law firms. At Bliss, we Smithson & Company; Marshall services, enhance credibility, and St. Paul, MN 55108-5112 focus on goals, audiences, mes- & Taylor, P.C., Poyner Spruill solidify relationships with their 651/789-2232 sages and results, not on stand- LLP; Smith Moore LLP; Spore; clients, prospects, and other Fax: 651/789-2230 alone tactics. The longevity of Vickie Milazzo Legal Nursing stakeholders. www.beehivepr.biz our client relationships (many of Services; and Womble Carlyle At Marx Layne & Company, which extend more than a Sandridge & Rice. we understand the subtle nuances Lisa Hannum, CEO decade) is a testament to the In addition to its diverse range and legal issues when marketing Nicki Gibbs, VP impact of our work. of legal and professional services professional services. We are able Ayme Zemke, VP Because our roots are in B2B clients, FWV works with many of to take our clients’ complex mes- communication, Bliss profession- the world’s leading companies sages and package them in con- Beehive is a strategic PR bou- als know how to package hard-to- and brands, including internation- cise written formats that are com- tique located in Saint Paul, Minn. understand content and reach al utility provider ABB, pelling to print, broadcast and We help our clients find creative sophisticated audiences. We also Wrangler, SAS, RBC Bank, new media. Importantly, we have paths from where they are to know how to work across com- Justin Boot Company, Melitta demonstrated, time after time, where they want to be. Our inspi- munication channels, disciplines, Coffee, Moe’s Southwest Grill that successful positioning can ration comes from listening to segments and geographies. We restaurants, spirits company generate new business and retain what their key audiences need, have offices in New York and Hood River Distillery (Pendleton existing clients for professional then engaging them when and Chicago, and – through our long- Whisky, Pendleton 1910, Yazi service firms. where it matters most. standing relationship with the Ginger Vodka, Broker’s Gin and We reach our clients’ targeted Beehive has deep experience in Worldcom PR Group, the largest SinFire Cinnamon Whisky), and audiences through means beyond professional services, serving global network of independently- the U.S. Polo Association. The paid advertising. Our profession- clients in banking, finance, owned PR firms — we have feet- agency’s fully integrated creative al services firm clients retain us healthcare, law, commercial real on-the-street in 91 cities and six and digital team provides award- to position them as experts, to estate, advertising and marketing, continents. For more informa- winning advertising, graphic generate feature profiles in lead- and professional and trade associ- tion, please visit our website: design and digital and social ing business media, to ghostwrite ations. www.blisspr.com. media services for a wide range article submissions for profes- Our team of savvy strategists of clients. sional trade publications, and to does our best work for clients FRENCH | WEST | coordinate high-profile inter- who are ready for game-changing MARX LAYNE & views in leading newspapers, thinking and eye-popping results VAUGHAN magazines, radio, and TV news in brand positioning, corporate CO. formats, locally, regionally and communication, executive nationally. thought leadership, social media 112 E. Hargett Street Raleigh, NC 27601 31420 Northwestern Highway From individual practitioners strategy, media relations, employ- Suite 100 to large international firms, we ee communications and crisis 919/832-6300 www.fwv-us.com Farmington Hills, MI 48334 position our clients through management. 248/855-6777 ext. 105 strategic initiatives including: [email protected] Rick French, Chairman & CEO www.marxlayne.com local, national and international BLISSPR David Gwyn, President & media relations campaigns; Principal media training and messaging; Michael Layne, Managing Natalie Best, Executive Vice article/editorial ghostwriting and Member of The Worldcom Public President & Principal Partner Relations Group submission; website writing, 500 Fifth Avenue design and optimization; email New York, NY 10110 French|West|Vaughan (FWV) Marx Layne & Co. has a long is the Southeast’s leading public and successful track record of campaigns; social media and 212/840-1661 online reputation management; Fax: 212/840-1663 relations, public affairs and brand positioning professional services www.blisspr.com communications agency, inde- firms as industry leaders in their planning and implementation of pendent or otherwise. Founded in respective sectors. seminars; direct mail campaigns; BlissPR is an award-winning April 1997 by Agency Chairman For over twenty years, our design, writing and printing of business-to-business communica- & CEO Rick French, FWV now experienced account executives brochures and newsletters. tion, public relations and market- employs 70 public relations, have launched results focused In all we do, we continue to ing firm serving clients in finan- advertising and digital marketing communications campaigns for respect the correlation between cial services, healthcare and pro- experts. Headquartered in attorneys, accountants, financial dollars spent by our professional fessional services. Raleigh, N.C., FWV also has institutions, financial planners, service firm clients and results. Founded in 1975, we were one offices in New York City, Tampa, turnaround-managers, architects of the first firms to focus on mar- Dallas and Los Angeles. and engineers. Our proven ability The September issue of O’Dwyer’s will pro- keting and PR for professional Ranked as the #25 firm for to exceed client expectations has file PR firms that specialize in beauty and services companies. For nearly Professional Services PR by earned us a reputation as a valued fashion. If you would like your firm to be 40 years, we have designed and O’Dwyer’s, FWV boasts exten- partner to our clients. listed, contact Editor Jon Gingerich at executed both traditional and dig- sive legal and professional servic- With our depth of experience, ital marketing and PR programs es marketing experience, includ- we combine the most effective 646/843-2080 or [email protected]

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minium; and the groundbreak- QUINN & CO. ing partnership between Holton Farms and the Albanese PUBLIC Organization, the city’s first RELATIONS farm-to-building delivery program. Quinn & Co. handled the 520 8th Avenue, 21st floor media relations for the game- New York, NY 10018 212/868-1900 changing sales of trophy prop- www.quinnandco.com erty 111 Eighth Avenue by Facebook, LinkedIn and Twitter: Taconic Investment Partners to @Quinnandco Google, a record-breaking commercial property sale. The Wall Fort Lauderdale/Miami office to Street Journal, New York Times, open this year Fortune, Financial Times, the International Business Times Florence Quinn, President, @florenceq and others covered it. John Frazier, Executive Vice Clients of our 15-strong team, President, Travel, @Giraffe1 one of the largest real estate PR Greg McGunagle, Senior Vice divisions in NYC, include President, Real Estate, Albanese Organization, Quinn & Co.’s Real Estate pros Tathiana Rosado, Lara Berdine and @gregmcgunagle Alchemy Properties, Denihan Erin Lagasse ham it up with a fellow partier at a Real Estate bash. Lara Berdine, Senior Vice Hospitality Group, Glenwood President, Real Estate, Management, Jamestown Photo: Donna Dotan Photography Inc. @laraberdine Properties, Kaufman Katie Coleman, Vice President, Digital Media, @Kate212 Organization, Manhattan House, RealDirect.com, Robert K. tal/social media. Clients training programs; developing Quinn & Co. combines strong Futterman & Associates, Taconic Investment Partners, receive strategic counsel and compelling and time efficient strategic thinking with our sig- results on par with the largest thought leadership campaigns, nature creative approach to The Centurion, Time Equities and Trump SoHo. national firms and the individ- as well as targeting proactive develop dynamic integrated PR ual attention only a boutique positioning strategies among programs. We help clients in agency can provide. Find out the media and other influential our core areas of Real Estate, RBB PUBLIC how rbb can help your brand channels. Travel and Food, Wine + Spirits RELATIONS break out by visiting Working with professional achieve goals, reach target audi- www.rbbpr.com or call services firms often, and natu- ences with key message points 305/448-7457. rally, leads to crisis manage- and ultimately drive business. 355 Alhambra Circle, Suite 800 Miami, FL 33134 ment “partnering” engagements Quinn & Co.’s award-win- 305/448-7450 RF | BINDER that cross disciplinary bound- ning real estate division is the www.rbbpr.com aries, weaving together insights industry go-to. We’ve helped into communication, legal, turnaround client projects, Christine Barney, CEO 950 Third Avenue, 7th Floor financial and operating strate- revamp reputations and expertly Lisa Ross, President New York, NY 10022 gies, as well as geopolitical manage crisis communications. Tina Elmowitz, Executive Vice 212/994-7501 issues. Such situations require We conceptualize and imple- President www.rfbinder.com versatile, veteran perspective, ment dynamic, multi-platform and RF|Binder employs accom- campaigns that successfully Three-time winner “PR Amy Binder, CEO plished professionals with a position clients for today’s Agency of the Year,” rbb Public broad range of backgrounds evolving market. This year we Relations is a national market- As an independent, global including public relations, capi- are bringing groundbreaking ing PR firm that strategically public relations organization tal markets, finance, journal- campaigns to Florida when we brands professional service with seasoned practitioners who ism, law and government. open our Miami / Fort companies to help them break have provided strategic counsel Successful, value-adding Lauderdale office. out from the competition and to a wide-ranging clientele, communications during periods Quinn & Co.’s results-driven become recognized experts and RF|Binder is uniquely equipped of organizational stress require approach to integrated PR has industry leaders. to address the special communi- advanced planning and training helped create and maintain The firm’s highly specialized cations needs of professional for contingencies; established momentum for our diverse ros- staff understands the intricacies services entities. In particular, procedures and assigned ter of well-regarded residential, of working with clients in our firm understands and effec- responsibilities; and reliable commercial, developer, broker, healthcare, law, banking, finan- tively deals with the interper- mechanisms for immediate and investor, legal and architecture cial services, accounting, and sonal nuances, sensitivities and appropriate response to media clients worldwide. Recent cam- logistics. With innovative and other special challenges associ- and other inquiries. In the paigns include the innovative results-driven campaigns, rbb ated in brand differentiation and absence of such preparedness, a collaboration between high-end has been ranked 11th in the marketing among the manage- level head and experience in condominium The Sheffield and nation in professional services ment and risk consulting, finan- such matters is paramount. Saks Fifth Avenue, the first time by O’Dwyer’s and has earned cial and accounting, legal and Greater senior leadership Saks has partnered with a real numerous industry awards in human capital sectors of profes- involvement underpins more estate entity. The successful various categories including sional services. responsive working relation- relaunch of formerly stalled PRSA Silver Anvils and We assist our clients with ships with clients at RF|Binder condominium be@schermerhorn, Holmes’ Gold SABREs. developing messaging plat- and enables the firm to deal where ongoing promotions and rbb offers best practices in forms; determining their most effectively with the highest of reputation management helped media relations, brand position- compelling cadre of expert sensitivities and complexities propel the project to stand as a ing, corporate, crisis and M&A spokespeople and counseling inherent in professional servic- best-selling New York condo- communications, and digi- them in media and presentation es PR.

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Phil Pennellatore, Chief marketing communications, Operating Officer/Partner website development and writ- Julie Hall, Executive Vice ing, social media profiles. President/Partner Taylor has been professionally involved in public relations, When leading companies, pro- marketing, publishing, and fessional services organizations, design since 1982. She started as and entrepreneurs seek a trusted a magazine editor, gaining first- communications partner, they turn hand knowledge of editors’ to Schneider Associates, a full-serv- needs and processes, and is the ice public relations and digital- author of three books on design, social-mobile marketing communi- as well as numerous articles. cations firm. We specialize in Prior to founding her firm, she Launch Public Relations® — a pro- was the Director of Public prietary method of launching and Relations and Communications accelerating growth for products, at Pacific Design Center in Los services, companies, organizations Angeles. She is supported by a The Vandiver Group’s Donna Vandiver, President & CEO (left); and and communities, or revitalizing staff of public relations, editorial, Amy Crump, CFO existing ones. Schneider Associates and communications profession- represents a wide range of clients in als. consumer food, retail and home media relations, community man- products, professional services, THE VANDIVER RUDER FINN, INC. agement, customer relationship public affairs, education, launch management, online engagement consulting, and creative services. GROUP, INC. and channel management to 301 East 57th Street President Joan Schneider has writ- New York, NY 10022 ensure consistency across com- ten two books about launching new 510 Maryville Centre Dr., Suite 320 212/593-6400 munications to current and products, including 2010’s The prospective clients, employees, St. Louis, MO 63141 NEW Launch Plan, as well as an 314/991-4641 , CEO journalists and other key stake- Kathy Bloomgarden article for the Harvard Business www.vandivergroup.com , Global Head Rachel Spielman holders. Review Twitter: @VandiverGroup of Corporate Communications in the April 2011 issue enti- SCHNEIDER tled “Why Most Product Launches Ruder Finn designs and imple- Fail.” The Vandiver Group, Inc. ments strategic communications ASSOCIATES Agency services include PR and (TVG) is an award-winning programs to help professional traditional, digital and social media strategic communications firm services organizations enhance Member of the Worldcom Public strategy and execution, special helping clients build brands, their corporate reputation and Relations Group events, crisis communications, reputations and relationships by build awareness for their capabil- 2 Oliver Street, Ste. 901 spokesperson training, influencer providing strategy, branding, Boston, MA 02109 outreach, brand development, public relations, social media, ities across industry verticals. 617/536-3300 Working with some of the top launch consulting and creative serv- creative, web design/content, Fax: 617/536-3180 ices. Learn more at firms in management consulting, [email protected] market research, reputa- financial advisory and law, Ruder www.schneiderpr.com www.schneiderpr.com tion/image management/crisis Finn has particular expertise in communications, CSR and executive/employee training. positioning and content strate- Joan Schneider, President & TAYLOR & gies, stakeholder mapping, global Creative Director PULSE is our way of doing COMPANY research. It’s how we get the best results for your study, and 1024 South Robertson Blvd. then connect those results back Ste. 201 to your organizational goals. Los Angeles, CA 90035 PULSE uses innovative and cre- 310/247-1099 ative thinking, coupled with a Fax: 310/247-8147 [email protected] good dose of strategy. It’s how www.taylor-pr.com we turn a research report into information you can actually Julie D. Taylor, Hon. AIA/LA, use. Principal and Founder Founded in 1993 and based in St. Louis, TVG has satellite Taylor & Company is a offices in Nashville, Kansas results-oriented public relations, City and Los Angeles. Donna marketing, and communications Vandiver is Chairman of firm that creates and implements Pinnacle Worldwide, a network pro-active public relations proof 45 premiere PR agencies grams for clients involved in around the world. TVG is a design, architecture, building, member of CPRF and a charter and furnishings. Founded in member of WOMMA, with 1994 by Julie D. Taylor, Hon. individuals who belong to AIA/LA, Taylor & Company’s PRSA & IABC. Our clients are mission is to link creative design Fortune 500 and mid-sized to the public. companies in industries such as Among the services Taylor & agriculture, banking, healthcare, Company provides are: strategic transportation, education, gov- public relations, targeted media ernment, utilities, not-for-prof- outreach, image management, its and professional services.

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1. 24. 528,823 Edelman New York $44,467,185 GodwinGroup Jackson, MS

2. 25. 500,000 MWW Group E. Rutherford, NJ 3,963,000 French | West | Vaughan Raleigh

3. 26. 499,174 Hager Sharp Wash., D.C. 3,834,486 Padilla Speer Beardsley Minneapolis

4. 27. 419,350 5W Public Relations New York 2,600,000 Zeno Group New York

5. 28. 410,894 Prosek Partners New York 2,514,880 Schneider Assocs. Boston

6. 29. 397,265 Allison+Partners San Francisco 2,500,000 Casey Comms. St. Louis

6. 30. 385,000 Black Twig Comms. St. Louis 2,500,000 IW Group W. Hollywood

7. 31. 370,000 APCO Worldwide Wash., D.C. 2,466,000 Seigenthaler PR Nashville

8. 32. 363,232 Quinn & Co. New York 2,385,701 Maccabee Minneapolis

9. 33. 359,063 Rasky Baerlein Boston 2,273,082 McNeely Pigott & Fox Nashville

10. 34. 346,750 BlissPR New York 2,218,000 Formula PR San Diego

11. 35. 345,551 rbb PR Coral Gables, FL 1,959,665 Kohnstamm Comms. St. Paul

12. 36. 340,281 Gibraltar Associates Wash., D.C. 1,929,000 Jackson Spalding Atlanta

13. 37. 231,717 CooperKatz & Co. New York 1,725,500 Lane PR Portland, OR

14. 38. 191,000 Levick Strategic Comms. Wash., D.C. 1,620,629 Finn Partners New York

15. 39. 188,926 Gregory FCA Ardmore, PA 1,300,000 Bender/Helper Impact Los Angeles

16. 40. 133,737 CRT/tanaka Richmond, VA 1,232,000 Beehive PR St. Paul

17. 41. 103,250 Ruder Finn New York 1,121,331 Intermark PR Birmingham, AL

18. 42. 94,115 LVM Group New York 1,103,000 Rosica Comms. Paramus, NJ

19. 43. 86,256 Maloney & Fox New York 1,091,900 Richmond PR Seattle

20. 44. 76,000 L.C. Williams & Assocs. Chicago 848,907 O’Malley Hansen Comms. Chicago

21. 45. 70,324 Linhart PR Denver 630,579 Open Channels Group Ft. Worth

22. 46. 50,000 Standing Partnership St. Louis 596,296 Trevelino/Keller Atlanta

23. 47. 40,269 Furia Rubel Comms. Doylestown, PA 548,118 Bridge Global Strategies New York

OPINION Professional Development Where in the world is Jesse Jackson, Jr.? By Fraser Seitel Olympic goods were manufactured in taken a medical leave.” China, the beret really hit the fan — After the situation went viral, the ay this for Ralph Lauren: He sure from both sides of the aisle! Republican Jackson camp amended the earlier state- knows damage control. The John Boehner shook his head in disbe- ment, acknowledging that Jackson had Sdesigner found himself in hot lief, and Democrat Harry Reid snarled, “had grappled with certain physical and water last month after his freshly- “Burn ‘em.” emotional ailments privately for a long designed 2012 U.S. When the do-nothing opportunists in period of time. Men’s/Women’s the U.S. Congress single you out for At present, he is undergoing further Olympic wear was grief, it’s time to cut and run. And Mr. evaluation and treatment at an in-patient introduced, includ- Lauren got the message. He announced medical facility.” ing preppie slacks immediately that next time around, at This was followed by emotional pleas and skirt, shirt and the 2014 Winter Games, his fashion cre- from the Congressman’s mother and beret. ations would all be “made in the U.S.A.” father, asking the public to desist from Beret?!? And with that one deft, strategic nosing around further and to allow their What could say announcement, Ralph Lauren dodged son some privacy. “U.S. of A” more the controversy (and kept his beret!). Sorry Mom and Dad. It ain’t happen- Fraser P. Seitel has than a jaunty, blue If only Jesse Jackson, Jr. was listening. ing. been a communications beret? As American Mr. Jackson, the 17-year Chicago consultant, author and Sadly, once a figure becomes “public,” teacher for 30 years. He as a Charlotte Congressman with the famous father, he or she abdicates, to a great degree, is the author of the Russe. has been missing in action for more than the “right to privacy.” Perhaps that’s not Prentice-Hall text, The When Olympians a month. He has missed 80 votes and fair, but that’s the way it is. Practice of Public modeling the new countless meetings, leaving his It’s inevitable that over 17 years in the Relations. garb resembled a Southside constituents representative- kindergarten that is the U.S. Congress, cross between Pepe less (not that that’s necessarily a bad Rep. Jackson has amassed his share of Le Peu and Curtis Sliwa, the blogos- thing!). enemies — not counting the significant phere and cable TV exploded. But that Meanwhile, the Congressman’s office numbers who’ve lined up against his was just the start. has steadfastly stonewalled the situa- father over the years. When it was revealed that U.S. tion, saying for weeks that Jackson “had It’s axiomatic in public relations that nature abhors a vacuum. And one’s enemies are more than happy to fill in the void created by silence. That’s why the rumors for the reason of Jackson’s absence have run the gamut from drugs to alcohol to women to nervous break- down to suicide. And they won’t stop until Jackson’s office gets specific about what ails him. All the Congressman’s colleagues need do is look at what has happened in the recent past to their colleagues. • In 2006, Dem. Cong. Patrick Kennedy crashed his car into a Capitol Hill barrier. The next day, Kennedy announced he suffered from a mental disorder. He immediately took a rehab sabbatical and returned to the Congress after treatment. • In 2011, Dem. Cong. Anthony Wiener continually denied reports that he had sexted young women. Wiener defied reporters with the temerity to accuse him of such inappropriate behavior. His denials, of course, lasted just until recipients of his saucy messages and revealing photos came forward to usher the New Yorker out of Congress. Kennedy chose to fess up. Weiner chose to stonewall and deny. Paging Congressman Jackson.

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Financial Management How to obtain higher profitability By Richard Goldstein paper in serving a client, it is not cost- facturing environment may come to mind. effective to keep track of each sheet of You are not wrong. However, at this point y last column discussed industry paper used. job costing should be viewed as knowing trends including profitability •Indirect costs of a cost object — costs the cost of providing PR services to Coke, Mbenchmarks. In that column I that are related to the particular cost object as an example. There are generally two made a possible bold statement: 20% prof- but cannot be traced to it in an economical- types of basic cost systems to assign costs itability leads to mediocrity! I stand by that ly feasible way. Indirect costs are allocated to produce products or services: job-cost- statement. to the cost object using a cost allocation ing systems and process-costing systems. In my view, the method. Job costing should be obvious. It is a sys- industry benchmark Therefore if you think about any PR tem where costs are assigned to a distinct needs to move to at service you provide to a client, the cost unit, batch, or lot of a product or service. A least 33%. For some assignment means that direct costs are job is a task for which resources are agencies 20% is a traced to the cost object by cost tracing and expended in bringing a distinct product or push, let alone 33%. indirect costs are allocated by a cost alloca- service to market. The product or service There is a definite tion method. How can you quote a fee if is often custom-made, such a providing path that needs to be you do not understand what the cost of the PR services to Coke or manufacturing an followed to get to engagement will be? Better yet, there may aircraft carrier. Richard Goldstein higher profitability. be times when you do quote a fee and are Job costing in the PR industry using is a partner at actual costing Buchbinder Tunick & Your action plan told it is too high? How can you agree to Company LLP, New needs to include a any fee consideration if you do not know PR agencies provide their customers York, Certified Public halt to over-servic- what the profit margin of the original quote (sorry, your serve customers not clients) Accountants. ing, expense reduc- was? with services or intangible products. tion, better staff uti- Two more concepts are important to Within the PR service sector, jobs often lization, budgeting, and value billing just to understand: differ considerably in terms of their name a few. • Cost pool — a grouping of individual length, complexity, and resources used. Over the next few columns I will discuss cost items. Cost pools can range from the Therefore it is critical for agencies to these and more. Yes, this will not be the very broad (such as a companywide total- know their “job cost” for profitability first or for that matter the second or third cost pool for telephone and fax machines) analysis and pricing. Accurate cost infor- time I have discussed these issues. to the very narrow (such as the costs of mation is especially important for PR However, every winning team needs to operating a car used in a business). agencies where competition can be fierce. constantly go over the basics. A great • Cost — allocation base — a factor that The next column will teach you how to sports team knows that going over the fun- is the common denominator for systemati- develop cost information for a PR engage- damentals is still one important key to win- cally linking an indirect cost of group of ment and reach your target profitability ning! Some advice: read this yourself and indirect costs to a cost object. A cost allo- goals. then pass it along to your CFO or other cation can be financial (such as direct labor PR News Briefs financial person. Make this a project for costs) or nonfinancial (such as the number your agency no matter how large or small of car miles traveled). Companies often PA TURNS TO PR FOR NEW you are. seek to use cost driver of indirect costs as PHOTO ID VOTER LAW The building block to profitability the cost-allocation. For example, the num- The Bravo Group of Harrisburg has won a six-figure So how much does it cost a large nation- ber of professional hours incurred for allo- pact to guide PR and community outreach to voters al CPA firm to do an audit! How much cating secretarial or IT operating costs. after the state passed a controversial photo ID law does it cost your agency to do a project? Putting things in perspective, assume ahead of the November presidential election. How much does it cost Ford to build and your agency has been hired to perform all The Keystone State, a key battleground for the presidency with its 20 electoral votes, released an RFP sell a car? Managers and business owners the PR work for a new product for Coke. with a short turnaround in June for an agency to sup- ask these questions for many purposes, Services will be handled by your Atlanta port a media campaign (under review in a separate including formulating overall strategies, office. Therefore the new product launch RFP) with PR. product and service emphasis, cost control for Coke is the cost object. Actual profes- The state in March narrowly passed a law requiring and meeting external reporting obligations. sional hours are directly traced to the voters to present photo identification at polling booths starting in November. Those who don’t produce ID can Before we continue with this subject, it is assignment (assumes your agency has a fill out provisional ballots and have six days to prove important to understand some terms that time and billing system to do this), so this their identities to a county election board. will be used in this and future columns: labor is a direct cost. While serving such a The American Civil Liberties Union has sued the • Cost object — anything for which a large client as Coke, it is possible that the state over the law and heads to trial July 25 as it seeks an injunction for plaintiffs who say the won’t be able separate measurement of cost is desired. Atlanta office recruiting expenses will to vote in November. For example, the cost of a Ford, the cost of increase. It may not be feasible to trace all The law, which divided the state legislature on an audit, the cost of a PR engagement. recruiting expenses to each PR assignment. party lines and was signed by Republican Gov. Tom • Direct costs of a cost object — costs Such indirect costs are allocated to the Corbett on March 14, calls for a public education cam- that are related to the particular cost object product launch based on direct labor hours paign about the new onus on voters to “inform voters of the new requirements and ensure that no one will and can be traced to in an economically traced to the new product engagement. Job costing be denied the right to vote because of the new law,” feasible (cost-effective way). An example according to the RFP. of this is direct labor. While you may use When you read “Job Costing” a manu-

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OPINION Guest Column Emergency room care in the crosshairs By Jack O’Dwyer ist and Co-Founder of The Home Depot. crucial, life and death results were not He gained notoriety by offering to buy communicated to his family or doctor. the New York Stock Exchange. That is a key charge in the Dwyer article. his reporter had a medical emer- Wikipedia estimates his worth at $1.3 bil- PR advice for the NYU ER gency on July 10: a kidney stone. lion. The word “emergency” seems to con- T Langone should take a look at this note speed but that’s in short supply at the On advice of my doctor I hot-footed it imbalance in how some of his money is NYU ER. to the emergency room of NYU at 9 p.m. being used. He might put up another Upon entering I found two administra- where I got relief six hours later when $100 million or so for ER personnel. tors, one of whom was busy with a doctors flushed out My doctors and no doubt others say patient and another who was doing paper- the “stone,” a small “get thee to the NYU ER” when almost work. I told the second one of my pain mass of hardened any condition comes up. It seems like a (nine on a scale of ten) and he told me to crystals. Some 20 medical cop-out. Staunton’s own doctor, sit down and wait my turn. He didn’t real- million Americans in reply to a question by Dwyer about the ize that people with kidney stones prefer need treatment for doctor’s mistakes in treating Staunton, to stand because that is the least painful kidney stones each replied, “I sent him to a major medical position. year, one of whose center.” Recommendation No. 1 would be to causes is not drink- I suppose I needed to be in a hospital to have at least one medical person at the Jack O’Dwyer ing enough water. get the “stone” removed but a friend told entry who can decide who should get I had no intention me about the same condition that was treated the fastest. Triage should be based of writing about this treated successfully in the doctor’s office. on those with the most pain rather than incident until I picked up the July 12 New Four visits to the NYU ER over the the order in which people arrive. Delay in York Times and read a detailed story years provide plenty of evidence that it’s treatment, as in Staunton’s case, can lead about a 12-year-old boy who was sent to being run far above capacity. The ER, to death. the NYU ER and didn’t survive. even in the wee hours of the morning, My doctor had diagnosed my kidney A cascade of errors by Rory Staunton’s looks like Grand Central Station, with stone on the phone in a few seconds. It own doctor and those in the ER resulted patients stacked in hallways and in close was not until around 1 a.m. that I saw an in his death April 1, four days after his proximity to each other. Patient “privacy” NYU doctor (one of two on duty as far as initial visit. Staunton died of a massive is promised by a sign but it’s in short sup- I could determine) and got the same diag- infection that neither the ER nor his own ply. NYU ER had 42,819 visits in the lat- nosis. Treatment began that removed doctor recognized, despite numerous est available year, or more than 800 a symptoms by around 6 a.m. signs that something serious was under- week. The caring attitude of the staff in the way. There was all sorts of mis-commu- Doctors, nurses and medical personnel regular hospital, backed by expertise, nication and non-communication, docu- race around trying to keep pace with the should be in evidence from the moment a mented by Jim Dwyer, who writes the flood of patients. Besides those referred patient enters the ER facility so that they “About New York” column. by their doctors, there is a flow of people get a “seamless,” consistent experience. Staunton’s parents are angry and want with no doctors of their own. I overheard Dr. Karen Sibert, in a June 12, 2011 answers. patients saying they had no doctor when NYT op ed piece, wrote that the shortage Dwyer’s account had drawn 1,558 asked. The scene at NYU is no doubt of doctors (a 150,000 shortfall is predict- comments by July 18, including many replicated across the U.S. since about 45 ed by 2025) is exacerbated by the failure from doctors who denounced him as million have no insurance of their own of some women doctors to pursue their inaccurate and causing needless fear of and no recourse except the local ER. careers full time. Too many become part ERs. Dwyer has written thousands of Experienced ER visitors say always time doctors after marrying and having words in rebuttal to the critics. bring a lists of medicines being taken, children. Women received 48% of the New York Times columnist Maureen past surgeries and any allergies. A medical degrees in 2010, she notes. Dowd wrote July 15 that Staunton was a spouse, relative or “advocate” should Sibert describes a conversation with a victim of “false assumptions, overlooked stick closely by who can explain your female college student who wanted to data and overburdened doctors” who issues and needs and monitor any conver- know whether being a doctor was consis- might have been saved by a “swift dose sations with doctors. tent with “her rosy view of limited work of antibiotics.” After spending the night in the ER, I hours and raising children.” Diagnosis: imbalance of medical staff was transferred to the regular NYU hos- “Medicine shouldn’t be a part-time Having experienced four visits to the pital which abounded in doctors and interest to be set aside if it becomes incon- NYU ER in recent years, I can make a nurses. I got plenty of attention. My vital venient; it deserves to be a life’s work,” quick diagnosis of what’s wrong: not signs were checked repeatedly. The concluded Sibert. enough doctors and nurses in the ER and atmosphere of calm, undivided attention My advice is if you’re going to be sick, more than enough in the regular hospital. to my symptoms was in contrast to treat- do it between 9 a.m. and 5 p.m. on a The hospital became the NYU ment in the ER where personnel seemed weekday. Langone Medical Center following a gift to be working on many cases at break- I called Lisa Greiner, Senior Director of of $200 million in 2008 from Kenneth neck speed. Institutional Communications for NYU Langone, a native of Roslyn Heights, Given my experiences, it’s easy to see Langone, who offered the hospital’s New York, who became a venture capital- how tests were made on Staunton and “deepest sympathies” but nothing else.

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PEOPLE IN PR Murphy to step down JPMorgan Chase Lifestyle vet O’Connor at Grayling fortifies PR to MWW

rayling CEO Michael Murphy helley O’Connor, a veteran of told O’Dwyer’s that he’s stepping PMorgan Chase, which has taken Interpublic’s DeVries PR and WPP’s Gdown because he wants to “have a a PR beating over a massive trad- SUniWorld Group, has joined inde- plural career” and develop a portfolio of Jing loss is fortifying its PR ranks pendent firm MWW Group as VP in its interests” that will include the with the Obama administration’s U.N. consumer lifestyle marketing practice. Huntsworth unit. mission spokesman Mark Kornblau. At DeVries, He will remain CEO until a successor is Kornblau, a former Senior Aide to O’Connor spearhead- in place sometime in 2013 and then con- John Edwards who earlier led corporate ed the lifestyle strate- tinue as Grayling’s part-time, non execu- communications for Zagat, is comms. gy for Fiat USA. tive chairman. The majority of that time director and spokesman for U.N. Earlier, she spent nine will be devoted to Grayling, he noted. Ambassador Susan Rice. Earlier posts years at WPP’s Murphy said he had discussed his plan included press secretary for the Kerry- UniWorld Group, with Huntsworth “for some time.” Edwards presidential bid and comms. handling entertain- Peter Chadlington, Huntsworth CEO, director for Sen. Evan Bayh (D-Ind.). ment alliances and praised Murphy as a “central architect of Politico, which first reported celebrity partnerships O’Connor the successful strategy to merge many of Kornblau’s exit, said National Security for Ford Motor’s lux- our businesses to form a single brand and Council director of comms. Erin Pelton ury Lincoln and for- attract larger multi-office clients.” is in line to take over for Kornblau at the mer Land Rover and Jaguar brands. She Murphy anticipates a seamless manage- U.N. also represented Burger King, Kraft Foods, ment transition and “no change at all as I Joe Evangelisti, a Managing Director Home Depot and the U.S. Marines. continue in my current role.” and member of the bank’s executive O’Connor did stints at the New York He’s eager to develop interests that play committee, is Global Head of Corporate Police Dept., Borden and Seagram to his years of international experience. comms. at JPMC. He confirmed Americas (Absolut Vodka). Murphy has headed Shandwick’s Asian Kornblau’s hiring by the bank. and European operations. Kornblau will take the title of manag- AOL plugs in comms. ing director of corporate comms. at chief JPMC at the end of the month, handing Porter Novelli brings in strategic comms. for the bank’s reputa- Jernstedt tion and media relations for its corporate OL has recruited ThomsonReuters’ responsibility endeavors, Politico said. Jolie Hunt to serve as Chief AMarketing and Communications orter Novelli, which is searching for Officer. a new CEO, has brought in veteran Holmes dumps PR firm Hunt, who was SVP, global head of Pagency pro Rich Jernstedt as a part- brand and PR at TR and penned the “Gal time senior counselor in Chicago to focus after Cruise with a Suitcase” column syndicated by on new business and counsel clients. Reuters, reports to Chairman and CEO Tim Jernstedt was CEO om Cruise wasn’t the only one Armstrong. and Chairman at dumped by Katie Holmes. The AOL in late 2010 named MTV vet GolinHarris in 26 Tactress has also moved her PR Lauren Hurvitz to years at the firm and account from Slate PR to Ogilvy PR’s head corporate com- later a Senior BWR. munications, but she Partner at left after a year. The change is a return to BWR for Fleishman-Hillard, “Everyone has an Holmes, who used the firm before her where he has been a AOL story or connec- high-profile marriage to Cruise in 2006. consultant during tion, and I look for- the past year through “Following the announcement of her ward to playing a piv- Jernstedt his firm, The divorce from Tom Cruise, she is now otal role in our trans- Jernstedt Company. represented by Leslie Sloane in the New formation,” said Hunt Acting PN CEO Michael Ramah said York office and Nanci Ryder in Los Hunt. Jernstedt will bring “strategic depth, a sig- Angeles,” said a statement from the The new post over- nificant understanding of our business and firm. sees the tech giant’s global a real record of leadership” to the firm’s Ina Treciokas, now a Partner at Slate Communications strategy, including inter- Chicago operation. PR, handled Holmes since 2007. nal communications, social media, CSR Ramah took the reins in June with the Cruise’s sister, Lee Anne DeVette, and events, as well as consumer marketing. resignation of CEO Gary Stockman at PN, briefly worked PR for the couple in In a statement, Armstrong said marketing which has seen other high-level departures 2005. and communications are “critically impor- this year. WPP-owned BWR said Holmes will tant” to AOL. Jernstedt noted PN’s “commitment to star alongside Chace Crawford in the Earlier, Hunt was Global Director of transformation” and said he looks forward upcoming “Responsible Adults,” which Corporate and Business Affairs at IBM and to contribute to that effort. starts filming later this year. Director of PR for The Financial Times.

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WASHINGTON REPORT Maldives is $65K retainer for Ruder Finn

uder Finn’s tourism work for Maldives is worth $65,000 a month, according to its contract with the Indian Ocean Risland nation that was subject to a military coup in February. Mohamed Nasheed, the country’s deposed leader, told the Financial Times on July 1 that travelers should cancel planned trips to the Maldives to protest its “illegitimate government.” He became the nation’s first democratically elected leader in 2008. The goals of RF’s three-month contract, which kicked off April 26, are to instill confidence in the tourism industry of Maldives, promote its “government’s commitment to will note rules and procedures to bring greater transparency. strengthening democracy and sustainable development” and Other members of the task force include former New Jersey improve its image. Senator and Reagan and Bush Treasury Secretary Nicholas On the media front, RF is to “begin the process of develop- Brady, Carter administration member Joseph Califano, and ing relationships with key journalists who are friendly and Reagan cabinet member George Shultz. receptive” and “ensure inaccuracies are corrected immediately to avoid pick-up and further dissemination.” APCO gets Walker fund payment RF is targeting “high level stakeholders” in the U.S., U.K., British Commonwealth countries, “relevant EU institutions” and NGOs. PCO Worldwide’s Chicago office received a $10,000 The independent firm will “develop champions who are will- payment from a legal defense fund for Wisconsin Gov. ing to speak publically on Maldives.” AScott Walker in May, according to campaign finance RF has established the following billing rates for CEO Kathy records. Bloomgarden ($500), chief global strategist Louise Harris The payment, which came weeks after Walker won a con- ($445), head of parliamentary affairs Hugh McKinney ($400), tentious recall election in the Badger State, came from the Scott senior VP Lauren Cohen ($345), VP/account manager Matt Walker Trust and was made alongside other outlays to law firms Walsh ($280) and account executive Noah Zachary ($160). totaling more than $155,000. Total monthly expenses are not to exceed $80,000 unless The Wisconsin Democracy Campaign, which highlighted the authorized by the Maldives Marketing and Public Relations filing, said the trust is a fund created to pay Walker’s legal Corp. That amount includes the monthly retainer and out-of- expenses associated with a three-year-old investigation by the pocket outlets. Milwaukee County District Attorney into former Walker Aides. Tilden Katz, an attorney who heads APCO’s Chicago office, and an APCO spokeswoman did not return inquiries from Budget task force gets PR help O’Dwyer’s. Reynolds reps Goldman Sachs high-profile task force examining the crisis among state budgets engaged Widmeyer Communications for APR support as it released an anticipated report last oldman Sachs has hired the firm of Tom Reynolds, month. who was a powerful Republican Congressman from The Task Force on the State Budget Crisis, formed last year Gupstate New York, for regulatory and tax matters. with the support of several foundations, is led by ex-Federal His district stretched from Buffalo to Reserve Chairman Paul Volcker and Richard Ravitch, a for- Rochester. mer New York Lieutenant Governor and budget expert. The five-term Congressman joined The task force released its report July 17 in Washington as Nixon Peabody’s government relations states continue to reel from the 2008 financial crisis. It has group last year as senior strategic poli- examined the balance sheets of six states — California, cy advisor. Illinois, New York, New Jersey, Texas and Virginia — to Reynolds had served as senior mem- highlight ways state budgets can hide problems and “obscure ber of the House Ways and Means fiscal reality.” Committee and was elected chairman Scott Widmeyer, President of WC, told O’Dwyer’s his firm of the National Republican is providing communications counsel and preparing media Congressional Committee. Reynolds for what is expected to be a widely discussed report as the fis- His reputation took a hit in 2006 cal woes of states and bankruptcies of some cities and munic- when he failed to act promptly on information in the ipalities draw interest. Congressman Mark Foley/page scandal. “It’s a diagnosis and weaves it all together and puts years Reynolds represents Goldman Sachs with his former Chief of and years of budget issues in perspective,” Widmeyer said of Staff, Sally Vastola, and Douglas Dziak, Chief Counsel to the report, which will not recommend particular policies but Ohio’s ex-Senator George Voinovich.

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International PR News Venn gets Mongolia pact to develop a massive coal project in Mongolia in a competition enn Strategies has a $300,000, six-month pact to promote with a Chinese company. Mongolia as a “stable target for direct investment with reli- Vable rule of law and investor protections,” according to its contract with the Mongolian Investment Institute. Incoming Mexico President The D.C. public affairs shop founded and headed by Stephanie Silverman will handle PR and media support; conduct outreach hires CLS&A and dialog building exercises with U.S. government entities, and engage with influential third-party interests. hlopak, Leonard, Schechter & Associates is handing the tran- Mongolia, a former satellite sition of Enrique Peña of the Soviet Union, was in the CNieto, who was declared news July 9 when Secretary of the winner of Mexico’s presiden- State Hillary Clinton visited tial race on July 1. the minerals-rich country that The election marks the return to borders China. power of the Institutional During a speech in Revolutionary Party (PRI), which Mongolia’s capital of Ulan dominated Mexican politics for 71 Bator, Clinton praised the years until it was ousted in 2000 by country as a model of how a National Action Party (PAN) pres- democracy can rise from a for- idential candidate Vicente Fox. mer authoritative state. “To Peña Nieto takes office Dec. 1. those who doubted, Clinton CLS&A, which began work for President Enrique Peña Nieto Clinton with President Elbegdorj in said, “Let them come to Peña Nieto July 1, does not have a a photo released by the Mongolian Mongolia.” formal contract. It will provide government July 7. The New York Times report- communications counsel and assistance to the transition team, ed that Clinton also met presi- including distribution of news/announcements, and monitor news dent Tsakhia Elbegdorj in a ceremonial yurt, which is the tradition- and policy developments related Mexico-U.S. interests. al home of nomadic herders. CLS&A receives a $50,000 monthly retainer. It reports to Diego The Obama administration is backing a bid by Peabody Energy Gomez, head of international press for Peña Nieto. FARA News NEW FOREIGN AGENTS REGISTRATION ACT FILINGS Below is a list of select companies that have registered with the U.S. Department of Justice, FARA Registration Unit, Washington, D.C., in order to comply with the Foreign Agents Registration Act of 1938, regarding their consulting and communications work on behalf of foreign principals, including governments, political parties, organizations, and individuals. For a complete list of filings, visit www.fara.gov.

Patton Boggs LLC, Washington, D.C., registered June 21, 2012 for Saudi Food and Drug Authority, Kingdom of Saudi Arabia, to contact and meet with U.S. Food and Drug Administration officials.

Brown Lloyd James, New York, NY, registered June 25, 2012 for Republic of Ecuador, Washington, D.C., to support the Embassy in Washington, D.C. in a full range of public relations services, including media relations, strategic advice, grassroots outreach, public and private events, logistical support, and research & analysis.

Patton Boggs LLC, Washington, D.C., registered June 21, 2012 for AI-Hamar Trading Group, Sana'ss, Republic of Yemen, to schedule meetings for Hamid Al-Ahmar, other members of the Yemeni Parliament, and perhaps other members of the Yemeni government with various executive agencies, congressional staff and members, think tanks and NGOs. Lobbying News NEW LOBBYING DISCLOSURE ACT FILINGS Below is a list of select companies that have registered with the Secretary of the Senate, Office of Public Records, and the Clerk of the House of Representatives, Legislative Resource Center, Washington, D.C., in order to comply with the Lobbying Disclosure Act of 1995. For a complete list of filings, visit www.senate.gov.

Venable LLP, Washington, D.C., registered July 16, 2012 for Self-Insurance Institute of America, Inc., Simpsonville, SC, to discuss healthcare and issues relating to the self-insurance industry.

Mr. John Sciamanna, Washington, D.C., registered July 16, 2012 for National Child Abuse Coalition, Washington, D.C., regarding appropria- tions for HHS and child abuse mandatory reporting laws.

Arnold & Porter LLP, Washington, DC, registered July 14, 2012 for National Association of Real Estate Investment Trusts, Washington, D.C., regarding terrorism insurance legislation and potential reauthorization.

Peck, Madigan, Jones & Stewart, Inc., Washington, D.C., registered July 13, 2012 for Facebook, Menlo Park, CA, regarding market structure and IPO issues, privacy legislation regulation, immigration, Internet legislation and regulation.

AUGUST 2012 WWW.ODWYERPR.COM 45 Augmagazine:Layout 1 7/25/12 12:01 PM Page 46

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