Making the Case: Excerpts from Communication Director Asia Pacific issue 01/2014 by Quadriga Media Berlin GmbH

COMMUNICATION Asia Pacific Issue

DIRECTOR

The Magazine for Corporate Communications and Public Relations

Making the case Proving the value of corporate communications

Why communication is essentials for strategic business success Emerging market companies and the West Navigating China’s dynamic public aﬀairs landscape

N o 1 · October 2014

EDITORIAL

inking communications to strategic business goals is one of the most pressing challenges facing today’s professional communicators; many feel that they are called on to prove the value and impact of their work with each new campaign. This is particularly vital for communicators working in Asia Pacif ic, where public relations is developing rapidly and shaping its role in a landscape that is culturally and economically diverse. That’s where Communication Director comes in. We are a magazine for experienced corporate communicators to share their insights, opinions and predictions with their peers. Ref lecting the dynamic changes that are taking place in both the communications industry – so very different today than just a few year ago – and in the Asia- Pacif ic region – which the rest of the world looks to for innovation and omens for the future – Communication Director hopes to present the very best corporate communications analysis. The “Storyteller” section of this inaugural issue features a range of articles from different backgrounds, all looking at the big question: how do you make the business case for communications? Other regular sections in this and future issues focus on the latest in strategic thought; provide insights into internal communications, human resources and leadership issues; place public relations in a historical context; and present in-depth interviews with leading communicators. Also in this issue of Communication Director, we introduce the Asia- Pacif ic Association of Communication Directors, a new community launched this year, which aims to bring together communications professionals working in Asia Pacif ic. Our magazine is proud to be a platform for exchange of knowledge by APACD members and by the Asia- Pacif ic communications community in general. Dafydd Phillips Editor in Chief dafydd.phillips@communication-director.com

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“The number of multinationals from the emerging world had grown from four per cent in 2003 to 25 per cent in 2012.”

“Large numbers of graduates lack cultural awareness that is integral to excellence in communicating globally.”

PR ESSENTIALS Key aspects of communication

The agenda setters Heads of Asia-Paciﬁc communications at 30 leading companies

Seeing eye to eye Face to face business meetings continue to have many advantages over their high-tech equivalents

Richard Arvey

STRATEGIC THINKER

Delivering bad news Is positively communicating a downsizing truly the art of the impossible?

Helle Kryger Aggerholm

The corporate and academic stand on communication

Seven simple steps for companies from emerging markets to crack western arenas

Abhinav Kumar

Has radical honesty and radical transparency sounded the death-knell for public relations?

Past, present and future positive The history of public relations in Asia Paciﬁc is as varied as the many countries that make up the region

Mary Devereux

Between openness and control The reshaping of the Chinese media landscape began in 1978, and the evolution continues to this day

How communicators can equip themselves to deal with the challenges of managing online rumours

Hu Zhengrong, Lan Ruoyu and Ji Deqiang

Yi-Ru Regina Chen and Chun-ju Flora Hung Baesecke

THE BIG INTERVIEW

How to improve personnel management and your career

Facing up to the dark side of digital

TEAM PLAYER

Looking back at landmark communications

Trust me, PR is dead Robert Phillips

THE STORY OF PR

Breaking through the barriers of perception

Spreading the word Communicators need better training if they are to work across boundaries of culture and geography

Krishnamurthy Sriramesh

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Key communicators under the spotlight

Kaiser Kuo Baidu.com’s director of international communications on the domestic/international divide, censorship and more

Photo: www.dreamstime.com

“The future of public relations in Asia Paciﬁc is in our own hands.”

“It is the worst of times and best of times to work in communications”

STORY TELLER Looking at the important questions of communication

Science behind the art Why communicators must come together to make the business case for communications

Gary Sheffer

Inﬂuencing the inﬂuencers Reaching out to key stakeholders via social media

Minari Shah

80 84 88

Fritz Quinn

68 Photos: www.thinkstock.com; Reynald Ocampo

Sam Knowles

Book Reviews

Asia Paciﬁc Association of Communication Directors

Dialogue in action Whether you are selling or branding your company, communications should be about making a difference

What’s in a name? Communicators need to be analytical and results-driven, especially when undertaking a global project

A round up of recent and upcoming titles

ASSOCIATION Introducing the Asia-Paciﬁc Association of Communication Directors

QUESTIONS TO...

Therese Necio-Ortega

Measure for measure The business of communication is persuasion, and needs gut instinct, experience, guile and smarts

COMMUNICATIONS READER

The bigger picture To understand the impact of communications, an integrated approach is called for

Why it is time to establish a new model for measurement

John McLaren

How one NGO balances the need for discretion and nuance with the ﬁght for more public visibility

Breaking new public affairs ground in China

Deep analysis Jim Macnamara

Building a connection

Drawing up a new set of blueprints

Using communication capital to reconstruct the results chain of internal messages

Stefania Romenti

Amy Ovalle

Internal affairs

The personal side of communication directors

Cynthia Chan Head of corporate communications, Bayer Hong Kong

Mark Roberts and Madeleine Little 01/2014 COMMUNICATION DIRECTOR

PR ESSENTIALS

Key aspects of communication

THE AGENDA SETTERS We present 30 Asia PaciďŹ c-based communicators at global companies that are making waves in the region. Company rankings taken from Forbes Global 2000.

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COMMUNICATION DIRECTOR

PR ESSENTIALS

General Electric Industry Energy, Technology Infrastructure, Capital Finance, Consumer & Industrial Founded 1892 Forbes ranking 7

Koki Konishi Position Managing Ofﬁcer & General Manager, Public Affairs Based in Aichi Start date 2013 Previous position General Manager, Public Affairs, Toyota

Penny Shone Position Head of Public Affairs & Communication Global Growth & Operations Based in Singapore Start date 2012 Previous position Head of Marketing & Communications EMEA, J.P. Morgan

HSBC Industry Banking, Financial Services Founded 1865 Forbes ranking 14

The biggest challenge facing communicators in Asia Paciﬁc is the combination of continually changing consumer behaviours, with rapidly emerging technology. Community expectations are high, and corporates need to understand these expectations to maintain trust. At the same time, technology now means that consumers want to interact with companies 24/7, and are quick to let you know when you haven’t met their expectations.

Pierre Goad Position Global Head of Communications Based in London & Hong Kong Start date 2014 Previous position Global co-Head of Communications, HSBC

Volkswagen Group Industry Automotive Founded 1937 Forbes ranking 19

Photos: Private (2); HSBC; Private (4)

Catherine Peng Position Vice President of Public Relations & Communications, Volkswagen Group China Based in Beijing Start date 2012 Previous position Communications Director Bosch China

It is crucial for us to strategically establish an emotional bond with our customers. To achieve that, communications will have to transcend beyond mere words and into an experience. This can be in the form of a product and brand experience, which can be a good platform for convincing people about our brand through intriguing story-telling elements. Sethipong Anutarasoti, BMW Group

Toyota Motor Industry Automotive Founded 1937 Forbes ranking 12

Carolyn McCann, Westpac

Samsung Electronics Industry Electronics, Heavy Industries, Engineering, C&T, Life Insurance Founded 1938 Forbes ranking 22 In-Yong Rhee Position President, Corporate Communications Based in Seoul Start date 2012

AT&T Industry Telecommunications Founded 1983 Forbes ranking 23 Greg Brutus Position Executive Director, Corporate Communications, Asia Paciﬁc Based in Hong Kong Start date 2000 Previous position Account Director, Newell Public Relations

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PR ESSENTIALS

Allianz Industry Financial Services Founded 1891 Forbes ranking 27

Lu Dapeng Position Director General, Press Ofﬁce Based in Beijing Start date 2011 Previous position Head, China Petrochemical News Agency

Wendy Koh Position Head of Communications, Asia Based in Singapore Start date 2011 Previous position Corporate Communications Asia Paciﬁc, XL Insurance

10 Microsoft Industry Computers Founded 1975 Forbes ranking 32

The biggest challenge facing professional communicators is securing the access, trust and sponsorship of senior leadership. If you have that, you can be highlyeffective and impactful in your organisation; if you do not, communications can become very tactical, very quickly.

Damon Jones Position Communications Director, Procter & Gamble Asia Based in Singapore Start date 2012 Previous position Global Communications Director, Shave Care & Braun

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IBM Industry Technology, Consulting Founded 1911 Forbes ranking 35 Jean English Position Vice President, Marketing & Communications, Asia Paciﬁc Based in Singapore Start date 2014 Previous position Vice President, Global Technology Services Marketing, Growth Markets, IBM

Procter & Gamble Industry Consumer goods Founded 1837 Forbes ranking 40

AXA Group Industry Financial Services Founded 1817 Forbes ranking 33 Marita Rouhof Position Regional Head Communications, Asia Based in Hong Kong Start date 2010 Previous position Marketing & Communications Head, KPMG China & Hong Kong

Andrew Pickup Position Senior Director Communications, Microsoft Asia Based in Singapore Start date 2012 Previous position Chief Marketing & Operations Ofﬁcer, Microsoft Asia Paciﬁc

Andrew Pickup, Microsoft

Sinopec-China Petroleum Industry Oil & Gas Founded 2000 Forbes ranking 29

Johnson & Johnson Industry Medical Equipment, Pharma Founded 1886 Forbes ranking 41 Anil Nayak Position Senior Director, Communication & Public Affairs, Asia Paciﬁc Based in Singapore Start date 2012 Previous position Senior Director Communications, Johnson & Johnson India

Photos: Private (7)

PR ESSENTIALS

American International Group Industry Insurance, Financial Services Founded 1919 Forbes ranking 42 Michael Hanretta Position Head of Corporate Communications, Asia Paciﬁc Based in Singapore Start date 2014 Previous position Global Head of Media & Public Relations, DuPont

BHP Billiton Industry Metals & Mining Founded 2001 Forbes ranking 44

Photos: Private (4); Darren Francis

Tony Cudmore Position President, Corporate Affairs Based in Melbourne Start date 2014 Previous position Manager, International Corporate Brand Communications, Asia Paciﬁc Government Relations, ExxonMobil

Agility is perhaps the most critical skill for communications success in Asia. The diversity and dynamism of the markets, the convergence of traditional and emerging cultural inﬂuences and sheer size of the economic opportunity in the region present a unique opportunity for communicators to provide holistic counsel that can shape the agenda of their organisations like never before. Damon Jones, Procter & Gamble

BMW Group Industry Automotive Founded 1916 Forbes ranking 48 Sethipong Anutarasoti Position Corporate Communication Executive, BWM Asia Based in Singapore Start date 2004 Previous position Director, Corporate Communications, BMW Group Thailand

Commonwealth Bank Industry Banking, Financial Services Founded 1911 Forbes ranking 49 Andrew Hall Position Executive General Manager Corporate Affairs Based in Sydney Start date 2013 Previous position Director, Corporate & Public Affairs, Woolworths

Google Industry Internet, Software, Tech Founded 1998 Forbes ranking 52 Myriam Boublil Position Director Southeast Asia & Greater China Communications & Public Affairs Based in Singapore Start date 2014 Previous position Head of Communications & Public Affairs, Google Southeast Asia

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PR ESSENTIALS

Marita Rouhof, AXA Group

ANZ Industry Banking, Financial Services Founded 1835 Forbes ranking 75 Paul Edwards Position Head, Corporate Communications Based in Melbourne Start date 2005 Previous position Chief Manager Corporate Communications ANZ

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SoftBank Industry Telecommunications Founded 1981 Forbes ranking 73 Yoshimitsu Goto Position Executive Corporate Ofﬁcer, Finance, Communications Based in Tokyo Start date 2014 Previous position Executive Corporate Ofﬁcer, General Manager, Finance, SoftBank

BASF Industry Chemicals Founded 1865 Forbes ranking 72 Christian Schubert Position Vice President Corporate Communications Asia Paciﬁc Based in Hong Kong Start date 2008 Previous position Director Corporate Communicatons BASF Group

Metlife Industry Financial Services Founded 1868 Forbes ranking 69 Simon Smith Position Regional Head of Corporate Communications, Asia Based in Hong Kong Start date 2012 Previous position Head of Brand Marketing, Goldman Sachs International

General Motors Industry Automotive Founded 1908 Forbes ranking 67 Matthew Hobbs Position Vice President Government Relations & Public Policy Based in Singapore Start date 2013 Previous position Non-Executive Director, GM South Africa

Carolyn McCann Position General Manager Corporate Affairs & Sustainability Based in Melbourne Start date 2013 Previous position Manager Corporate Affairs & Investor Relations, Insurance Australia Group

At Google, we see technology as a way to help people in their everyday lives and feel empowered. As communicators at Google, our focus is to explain the great things people can achieve through technology. Myriam Boublil, Google

Photos: Private (2), BASF; Private (2); James Knowler Photography; Private

The biggest challenge facing professional communicators in this region is the reality of short term focus versus the need for long term brand development.

Westpac Industry Banking, Financial Services Founded 1982 Forbes ranking 60

PR ESSENTIALS

Hewlett Packard Industry Computers & IT Founded 1939 Forbes ranking 80 Elizabeth Hernandez Position Vice President, Corporate Affairs, Asia Paciﬁc & Japan Based in Singapore Start date 2010 Previous position Director, Government & Public Affairs, Asia Paciﬁc GlaxoSmithKline

The practice of corporate communications in Asia has seen quite a big shift in recent years – the conversation with the C-suite has become more strategic and closer to the heart of the business instead of being the public relations sheen added on towards the end. The most important and the most satisfying part of what we do in the organisation is to ﬁgure out what is the business outcome we want and how to get it.

Cisco Systems Industry Networking equipment Founded 1984 Forbes ranking 82 William Oei Position Head of Public Relations, Asia Based in Singapore Start date 1998

Allan Cuevas Position Head of External Communications Based in Fort Bonifacio, Phillippines Start date 2013 Previous position Assistant Vice President Marketing & Communications, JPMorgan Chase Bank Philippines

Eileen Lau, ING Group

UnitedHealth Group Industry Managed Health Care Founded 1977 Forbes ranking 84

Rachael Bylykbashi Position Head of Communications, Roche Diagnostics Asia Paciﬁc Based in Singapore Start date 2013 Previous position Health Director, Southeast Asia, Edelman

ING Industry Banking, Financial Services Founded 1991 Forbes ranking 97 Eileen Lau Position Corporate Communications Director, Asia Based in Singapore Previous position Director, Communications, ING Retail & Private Banking Asia

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Roche Industry Pharmaceuticals Founded 1896 Forbes ranking 91

Saudi Basic Industries Corporation Industry Chemicals Founded 1976 Forbes ranking 98 Lili Koh Position Director, Corporate Communications, Asia Paciﬁc Based in Singapore Start date 2010 Previous position Vice President & Global Head, Global Communications, DHL

Photos: Private (6)

STRATEGIC THINKER The corporate and academic stand on communication

BREAKING THROUGH THE BARRIERS OF PERCEPTION Companies from emerging economies seeking to build reputations in the west must overcome ingrained perceptions. Communications has a deﬁning role to play in winning this battle.

wo things occurred on a lazy Sunday in Paris that set me thinking. As I was strolling outside the Café de la Paix in the Opera district, I was approached by a man peddling brochures on the streets. While I usually avoid retail solicitations, I agreed to hear his pitch. It left me astounded. He was spearheading a campaign for a Japanese jeans company which had just launched its ﬁrst retail outlet store in France. Later that day, I dined with a journalist who told me about an Indian wine company that had gone into collaboration with a local company to sell Indian wines

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in France. Talk about an uphill task! Somehow the vision of any of my couture-conscious French friends wearing machine-ﬁtted Japanese jeans and drinking imported Indian wine is hard to visualise. And therein lies the gargantuan challenge for communicators from ‘emerging’ world looking to carve a position for their companies in the old world. The reverse is, however, not true. Emerging economies have grown up

Photo: www.dreamstime.com

by Abhinav Kumar

STRATEGIC THINKER

on a diet of European and American brands. In the streets of Rio de Janeiro you see children playing football barefoot, but wearing Adidas armbands and with Nike footballs. Brand-conscious Chinese consumers have been lapping up products from the French luxury brand LVMH as a means of demonstrating upward social mobility. Even though nearly 87 per cent of the top 75 luxury goods companies are headquartered in just six countries (France, Italy, Spain, Switzerland, the UK and the US), their markets are more or less global with emerging markets being their fastest-growing zones. In India, driving a Mercedes or a BMW continues to represent the acme of success. IT managers often interchangeably use the words SAP and ERP, turning the German software giant into a generic brand. Since Nestlé’s ﬁrst oﬃce in Shanghai opened more than 100 years

The number of multinationals from the emerging world had grown from four per cent in 2003 to 25 per cent in 2012. ago, three generations of Chinese have grown up with Swiss chocolates and coﬀee. Given the wide exposure and prestige that western brands have enjoyed in these countries, the reputations of these companies stands ﬁrm. No such luck for the Indian wine grower.

THE RISE OF THE EMERGING WORLD Yet more and more east-

ern and emerging market companies continue to wash upon western shores. The World Economic Forum’s outlook for the global agenda in 2014 computed that the number

of multinationals from the emerging world had grown from four per cent in 2003 to 25 per cent in 2012 – a seismic change. China, the world’s largest domestic market as well as its largest manufacturing base, initiated a Go Out Strategy which encouraged its domestic firms to invest overseas. By 2012, China was ranked third in the world as a source of foreign direct investment. Almost 16,000 Chinese firms have established 22,000 overseas enterprises in 179 countries and regions. Similarly, several of India’s large firms have global aspirations. With the dramatic advances in technology and communications, Indian companies are also opening up, expanding and internationalising at a faster pace. A recent Europe India Chamber of Commerce report points out that Indian companies have invested 56 billion dollars in Europe over 10 years since 2003. The Tata Group, considered the most global of all Indian businesses, has made significant acquisitions recently including the takeover of Jaguar Landrover by Tata Motors, Anglo Dutch steelmaker Corus by Tata Steel and French IT services firm Alti by my own firm, Tata Consultancy Services. India based Suzlon Energy, the world’s fifth largest wind turbine manufacturer conducts most of its research and development in Germany and the Netherlands. Major Indian players are going global and are already on a solid footing in the developed world. Emerging economies certainly represent a growing market for western firms as well, and the emergence of these economies will also lead to their domestic companies becoming stronger and becoming more global. More and more companies such as Embraer, Hyundai, Cemex, Gazprom and Tata continue to look at replicating the successes in their home markets into the west as well.

CLIMBING THE GREAT WALL OF REPUTATION Few

chief communications oﬃcers from any of these companies would deny that there are signiﬁcant challenges to be overcome in their quest for forging western reputations. A challenging ABC disturbs the sleep of these communicators:

A FOR AWARENESS The rule is simple. Just as children are naturally suspicious of strangers, nobody wants to do business with those they do not know personally or at least by reputation. While many emerging companies have been dominant 800 pound gorillas in their home markets, they are simply not known in the west. This is perfectly natural, since they have not previously sold in, advertised or communicated much into this part of the 01/2014 COMMUNICATION DIRECTOR

STRATEGIC THINKER

TRUST ME, PR IS DEAD The paradoxes and challenges of the progressive corporate future mean it is time to bury, not praise, public relations. By Robert Phillips

T 18

he British Royal Family has veered from public relations triumph (William and Kate Windsor) to public relations disaster (take your pick). Recently, it has been on a high, although Prince Charles, heir to the throne, managed to prick that earlier this year with his comparisons of the Russian president to Adolf Hitler. Charles’ Canadian moment teaches us that not only is it now impossible to control or ‘manage the message’ but also that the end of the age of deference and hierarchies is truly upon us. The British monarch-in-waiting increasingly behaves like a social activist, rather than a regal diplomat. Curiously, that puts him in tune with the real world, which sees through the obvious veneer of “spin” and asks for a return to honesty, in politics and in business, and even, perhaps, in monarchy, too. During the writing of my book, Trust Me, PR is Dead, a number of blogs started appearing about the “death of ” many things. One was from Tom Fletcher, the British 01/2014 COMMUNICATION DIRECTOR

ambassador to Lebanon, who subsequently contributed a chapter to the book. In a blog post entitled “Is Diplomacy Dead, Too?” Fletcher wrote: “Substitute ‘traditional diplomacy’ for ‘public relations’ and we can see a similar challenge.” “Diplomacy has detached itself from public debate through meaningless platitudes; much of its form (summits, communiqués) was designed in 1815 for an age of monarchies and great states; and it has been slow to adjust to the next wave of disruption. Let’s be honest,” Fletcher concluded, “we are also, post Snowden, Assange et al, less trusted than we were.”

DECEPTION AND MYTHOLOGY The entrepreneur Luke Johnson once reminded me “where there’s a buyer, there’s a market”. For this reason, the public relations industry will no doubt survive for some time. But this does not make it ﬁt for purpose. As Diogenes the Cynic saw it: “markets are places men go to deceive one another”. Global businesses are now seeing through the mythology of public

STRATEGIC THINKER

relations and re-thinking their communications functions. One European communications director, quoted in the Financial Times in April, said of his public relations agency “I have no idea what they do for us … little except add corporate speak.” I spent over 25 years working in public relations. I am confident that public relations is now dead. Few should mourn its passing. Its business model, dominated on the consultancy side by bloated global firms selling middle-ranking generalists and bureaucracy over leadership and senior expertise, is broken. Its philosophy – rooted in selling stuff to consumers, not speaking honestly to citizens – is exhausted. An increasingly transparent world exposes tired deceits. I spent a number of years working on the Edelman Trust Barometer and chaired the company’s global Public Engagement group. I now believe that the shift from public relations to public engagement is not enough. Alongside this, the public relations industry has abused and exhausted trust. Trust is not a function of public relations. Trust is an outcome, not a message. It is deeply behavioural, complex and fragile, and hard-won every day, by actions, not words. Chief executive officers should beware public relations salesmen that talk trust and promise otherwise. For the past decade, the public relations industry has obsessed as to whether social media is in fact public relations. In truth, public relations has been scavenging at the edges of social media in order to mask the inevitable financial decline of a traditional, disrupted industry. We should care little for this discussion. It asks the wrong questions, miring the industry still further in the same

pointless introspection that peppers the relentless conversation as to whether public relations does or does not belong in the boardroom. The real truths of the social digital age should focus on the implications of social business, the creative economy and individual empowerment – the irreversible power shifts from state to citizen, employer to employee, company to citizen-consumer. Society is more atomised and activist as a result. Power and influence are asymmetrical and therefore need to be met with asymmetrical actions, not manicured words. Individuals, not institutional authority, are driving real societal change. The old establishment (political, economic, regulatory and sometimes corporate) is mostly broken and public relations is not equipped to deal with the disparate sparks of individual power and influence that – fuelled by creativity and collaboration – are taking its place. Chaos and disorder reign. The challenge now is to find better ways to deliver high-functioning organisation within this chaos.

PROGRESSIVE THINKING Progressive thinking – and progressive business leaders – avoids the traditional rush to communicate and rejects the misplaced belief that “everything is communications” and that everything must start with a message or a narrative. Future communica-

I am confident that public relations is now dead. Few should mourn its passing. tions starts at the end, not the beginning, of a four-part process that first comprehensively re-sets the goals, values and working practices of the organisation. For corporate goals, it is essential to ask bigger questions. For corporate values, progressive leaders think about citizens before capital. For working practices, they recognise the company as a social movement – turning the organisation inside out, embracing thousands of employees as social activists and change agents. And then, finally, for communications, they lead with actions, not words. While the future is neither corporate nor homosocial, “corporates”, complete with their activist change agents, are very much part of the future – as effective Business States, an integral component within the 21st century social contract. Some rebels are already re-setting the agenda. Pierre Goad, global head of communications at HSBC, is one. “Implanting messages,” he comments, “doesn’t work with 01/2014 COMMUNICATION DIRECTOR

STRATEGIC THINKER

FACING UP TO THE DARK SIDE OF DIGITAL Social networking sites are a breeding ground for rumours, which is why communicators must arm themselves with the skills to manage them.

recent report by the Chinese Academy of Social Sciences revealed that 33 per cent of the top posts on Weibo (Chinaâ&#x20AC;&#x2122;s answer to Twitter) between January 2012 and January 2013 could be categorised as rumours. When rumours (true or false, desirable or dreaded, spontaneous or intentional) drive traďŹ&#x192;c on social media, they have a substantial impact on individuals, organisations and society as a whole. Consequently, Sina Weibo (the dominant Weibo provider) has introduced an automatic rumour-detection service for users. 01/2014 COMMUNICATION DIRECTOR

Managing rumours in social media has become an essential component of corporate communications. The majority of rumours about corporations are negative or harmful, often emerging from customers, activists or employees (whether current or former), and research shows that they lead to lowered morale, employee stress, tarnished corporate reputation, loss of trust among customers and decreasing sales.

Photo: www.dreamstime.com

By Yi-Ru Regina Chen and Chun-ju Flora Hung Baesecke

STRATEGIC THINKER

GOING VIRAL We have identified a number of unique characteristics of online rumours. Social network users actively co-create a rumour by embellishing or adding information or comments to fit its purpose (for example, problem-solving, emotionreleasing, entertaining or socialising). Second, online rumours, unlike those in a face-to-face setting, can be adorned with audible and visual effects (photos, infographics or videos) to increase their plausibility and encourage circulation. Multidimensional variables enable online rumours to go viral. In gener-

Managing rumours in social media has become an essential component of corporate communications. al, seemingly trustworthy or credible rumours that have limited information or ambiguous consequences are easily initiated and spread among people who are involved in and feel angry about the issue. The trustworthiness of a rumour is a result of the credibility of the source as well as its content. The impact of source credibility on rumour transmission diminishes in a social media setting or during crises (the recent Malaysia Airlines MH370 disappearance supports this argument). In a crisis, the speedy birth and spread of rumours are often the result of an understandable need to gain a sense of control or solve the problem through information exchange. Another contextual factor rests on cultural resonance. That is, a rumour is likely to go viral in a society when it resonates with the shared culture of that society. For example, the Bank of East Asia in Hong Kong was hit by a bankruptcy

rumour spread by text messages in 2008. Within hours, there was a run on the bank, despite oﬃcial announcements from the bank and Hong Kong Financial Secretary dismissing the rumour. Here, the capitalist culture of Hong Kong played a role in the rumour mongering and its negative eﬀect on the bank and Hong Kong society. That’s why cultural resonance can be an indicator applied by corporate communicators to predict rumour virality. In addition to psychological and situational factors, several organisational factors also foster rumour propagation: the level of fame, low public trust due to a poor track record and asymmetrical communication with the publics. Meanwhile, the very features of social network sites help spread rumours: social networks provide a mechanism that permits rumour spread by a single click of the mouse; more importantly, the social aspect of online networks encourages recipients to forward rumours they receive from “a friend” in their network to others, even if the rumours lack obvious credibility. That is why various studies have come to the conclusion that tweets shared by social network users who have a large number of “friends” are more likely to be re-tweeted than those shared by users with relatively fewer friends. This phenomenon may be more pronounced in societies with a collective culture, like China. As a result, communicators should change their mentality toward incredible rumours to take them seriously by using strategic interventions.

REFUTING RUMOURS: 1. DEVELOP A RUMOUR MANAGEMENT POLICY Corporations cannot ignore

online rumours just because the rumours are not credible Although communication on social networks is infamously uncontrollable, establishing a strong social presence builds the basis for online rumour management. Corporations may only have a window of few hours to tap into the online conversation before the rumour starts spreading like wildﬁre. Therefore, communicators should be alerted to existing rumours, learn lessons from past cases, develop a guideline for handling online rumours and revise such a guideline on a regular basis. Corporations should develop a rumour management policy that includes the following elements: (1) objectives, principles and evaluation of rumour management, (2) rumour types, (3) interventions (including their action plans) for each type, (4) emergency chain (the reporting procedure and names and roles of individuals on the chain), and (5) contingency. False rumours are easier to handle than those that are harder to verify. In Greater China, for example, corporations can tackle false rumours by publicising their denial 01/2014 COMMUNICATION DIRECTOR

TEAM PLAYER

How to improve personnel management and your career

SPREADING THE WORD When it comes to ensuring that professionals are equipped to communicate on a global level, there remains room for improvement. By Krishnamurthy Sriramesh

lobalisation is not new to the 21st century, having occurred at various times in previous millennia through political conquests, trade or religious missions. However, the current era of globalisation has some unique features such as the presence of information and communication technologies and collapsing trade barriers. During this new era of globalisation, organisations have increasingly found that cross-cultural communication is important to their 01/2014 COMMUNICATION DIRECTOR

success. This realisation provides opportunities while also posing challenges to public relations practitioners prompting educators to ask the question: are public relations programmes preparing students to become eďŹ&#x20AC;ective cross-cultural communicators who can help organisations cope with the demands of a globalising world?

TEAM PLAYER

Public relations scholarship is young, with about a 50-year history by most accounts. Scholarship in global public relations is even younger, with a brief history of less than two decades. One key aspect that scholars have tried to address is the global versus local conundrum that practitioners face in setting up public relations programmes for multinational organisations. Should the communication manager of a multinational use a uniﬁed public relations programme for all countries, or provide a unique programme for each culture within which the organisation operates? While each of these polar approaches has some advantages, each is also fraught with many pitfalls. Public relations scholarship has offered a comprehensive conceptual framework with a glocal approach that combines setting global public relations strategies (the generic principles of global public relations) while suggesting the need to localise them to suit host cultures (the ﬁve environmental variables).

GLOBAL STRATEGIES Among other things, the 10 generic principles of public relations address the need for a uniﬁed public relations strategy for a multinational by recommending that public relations be strategically practiced, which is possible only when the public relations unit is headed by a manager who has the requisite knowledge and skills required for such practice. A strategic public relations department will be in a position to assist senior executives in aligning organisational policies with the expectations of key stakeholders. The generic principles also recommend that the public relations manager be part of the senior leadership team or at least have a direct reporting relationship to

these senior managers so that the intelligence gathered from stakeholders can be shared with them for integration into organisational policies for a better fit between the organisation and its environment – especially key for a global enterprise that is making forays into new markets. Symmetrical internal communication systems also aid by fostering cohesive organisation cultures. In sum, the 10 generic principles prescribe that it is reasonably possible for multinationals to set communication strategies at the global level. Having set global strategies, the challenge lies in applying these strategies to suit the multiple local cultures that multinationals encounter. Scholars have offered a much broader definition of culture than anthropologists have, to include five interdependent societal dimensions: the political culture, economic culture, societal and organisational culture, media culture and activist culture. The conceptual connections between these five interlinked socio-cultural

The challenge lies in applying these strategies to suit the multiple local cultures that multinationals encounter. variables and public relations practice have been explained in scores of academic publications. The following section oﬀers a brief overview displaying the relevance of these ﬁve cultures to the global public relations practitioner.

I. POLITICAL CULTURE The notion that influencing public opinion is the primary task of public relations practitioners has been popular both in practice and scholarship. The democratic-authoritarian continuum is just one of the political ideologies that determine the ability of communicators to influence public opinion. Globalisation has forced public relations practitioners into operating in countries that do not have pluralistic democratic systems of governance. Public relations currently lacks a body of empirical evidence on how it is influenced by different political systems. Often, political boundaries do not signify that a nation is homogeneous with several examples of a single ‘nation’ that consists of many unique cultures (nations within nations). Freedom to hold opinions and communicating them freely within society is determined by the political ideology prevalent in a nation and therefore very relevant for public relations practitioners. Further, public relations itself often plays a role in fostering, and maintaining, the political ideology of a nation. For all these reasons, a keen knowledge of the political systems of 01/2014 COMMUNICATION DIRECTOR

TEAM PLAYER

SEEING EYE TO EYE Although face-to-face meetings can be overshadowed by their high-tech alternatives, they still have a valuable role to play. by Richard Arvey

ver wonder if all those meetings you have with your colleagues have any value at all? It often seems as if they go oﬀ track, are dull and boring, have too many distractions and so forth. Are these face-to-face meetings really worth it, especially compared to methods of interaction using other forms of business communications, such as teleconferencing, email, etc.? I would argue that, indeed, face-to-face business meetings can add great value compared to these technology-enhanced communications media. First, I note that there certainly seems to be a trend to use electronic media more frequently, and, correspond-

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ingly, there is a decrease in face-toface meetings, especially those that involve travel and time away from the office. Recent surveys confirm this observation, and the primary reason offered as explanation is that electronic media are more cost-effective. However, there are still potential disadvantages with computer-mediated communication, such as when participants carry on working, check email, engage in SMSing, have irrelevant conversations, and so

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on. In fact, there are occasions when face-to-face meetings are more useful compared to electronically-aided communications. Under conditions of low time-pressure or low urgency, when decisions are less important, when there is no need to reach consensus, and when the dialogue is primarily used for information exchange, then computer-aided communications are suitable. However, where there is a need for more complex social interactions, when tasks and decisions are more diﬃcult and complex, and when there is a need to respond quickly, face-to-face communications are perhaps a more eﬀective media channel. It is also probably true that a combination or appropriate mixture of both face-toface meetings with computer-mediated communications will best serve the interests of organisations.

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THE VALUE OF FACE-TO-FACE There is also some compelling research detailing the value of face-toface meetings. From simply a business perspective, a variety of studies have shown the superiority of faceto-face business meetings compared to electronic communications. One particular study, conducted by Baltes, Dickson, Sherman, Bauer and LaGankein in 2002 and published in issue 87 of the journal Organizational Behavior and Human Decision Processes, abstracted and statistically summarised the results of 22 published and ﬁve unpublished studies comparing face-to-face communication groups versus computer mediated groups (those using email, teleconferencing, videoconferencing and so on) in terms of their decision-making eﬀectiveness, the time to make decisions, and member satisfaction. The authors’ results indicated that “the overall impact of

computer-mediated communications indicates that its use is associated with more negative work outcomes than faceto-face groups”. The authors concluded with this statement: “Computer-mediated communication may be an efﬁcient and rapid means of disseminating information, but the research too date suggest that is not the most eﬀective means of making group decisions…managers much make

There are occasions when face-to-face meetings are more useful than electronically-aided communications. the decision as whether the cost savings in travel expenses and time outweigh the potential decrements in the quality of the decisions reached”. So if the research suggests that face-to-face business meetings are more eﬀective, why does this occur? There are a number of possible psychological components of such meeting that help explain why. These include:

1. Face-to-face meetings allow members to engage in and observe verbal and non-verbal behaviour styles not captured in most computer-mediated communications. There are subtle behaviours in hand gestures, voice quality and volume, facial expressions that are not visable in email discussions, chat rooms, and the like. Video conferencing can come close, but does not capture the dynamics of all members—for example, participants may miss the expression of others when one member is talking. 2. Face-to-face meetings occur in “real time” as opposed to non-synchronized time. Computer mediated communications are often delayed because of a number of reasons, are not always received, and sometimes disrupted. Furthermore, time zone diﬀerences between group members is always an issue when one or more are trying to participate very late at night, and other odd time periods. 3. Such face-to-face meetings allow participants the opportunity to develop important exchange relationships among themselves. These exchanges might be in the form of business negotiations, personal favours, promises or understandings that cannot often be achieved via other communication modalities because of their personal and informal nature. 4. Face-to-face meetings aﬀord participants the opportunity to develop transparency and trust among the vari01/2014 COMMUNICATION DIRECTOR

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DELIVERING BAD NEWS Communications during a downsizing process are never easy, but must be managed for the good of all involved. By Helle Kryger Aggerholm

tudies have repeatedly demonstrated the prevalence of employee reductions as a commonly used managerial tool to increase productivity and strengthen corporate efficiency and competitiveness in both public and private sector organisations. However, a variety of studies illustrate how downsizing not only has negative implications for the downsized but also seem to contain destructive elements for the survivors, having pervasive impact on their subsequent communication networks, perceptions and attitudes. Therefore, before managers or communicators embark on the difficult task of handling the downsizing, it is pivotal to have a thorough understanding of the different aspects and pitfalls of the process.

HOW TO UNDERSTAND DOWNSIZING Downsizing can be defined as “the planning, implementation and management of dialogical communication processes and activities in relation to various actors and stakeholders with the aim of deliberately reducing the number of employees.” Such conceptualisation includes elements of power, politics and strategic thinking as well as the creation of new meaning during the process, reflecting the organisational culture and values. It also perceives management and employee communication as decisive for the acceptance of the restructuring strategy. Researchers and practitioners have traditionally focused on the implementation of the downsizing decision itself together with the difficult conversations that follow. Within this understanding, downsizing is dealt with as an unpleasant isolated event with the purpose of adjusting the corporate activities, after which the communicative 01/2014 COMMUNICATION DIRECTOR

and managerial purpose is to re-establish and normalise the organisation. In this process, the purpose of the carefully planned, sender-controlled communication is to orient organisational members of the management’s decision to downsize and to inform the redundant employees that they no longer have a future with the company.

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ronment, one-dimensional change interventions are likely to generate only short-term results and heighten instability rather than reduce it. Thus, the focus within downsizing processes should be on the complex interrelationship between individuals, groups and organisation, in which change is a blend of rational decision-making processes, individual perceptions, political battles and establishment of coalitions.

However, when management decides to downsize, the organisation comes under pressure and can experience a state of crisis. Inspired by crisis management, it makes sense to extend the communicative focus within downsizing to not only include the dismissal itself but also comprise the diﬀerent stages before, during and after the reductions. Opposed to understanding downsizing as an isolated phenomenon, a process-oriented change perspective does not operate with a beginning or an end. On the contrary, downsizing occurs across functions and hierarchical divisions and should be seen as a complex, political and cultural process in which the organisational attitudes, structures and strategies are challenged and changed. In today’s business envi-

A PROCESS VIEW In the pre-downsizing stage, the decision to downsize contains a series of strategic considerations that come before its implementation: how does the downsizing strategy link up with the overall corporate strategy? What does the company want to achieve by the reductions? Which employees should be made redundant? And how should the actual reductions be implemented? All these considerations need to be communicated both internally and externally. After this, the process enters its second stage: implementation. This stage is mainly composed of dialogue between the various organisational members, who individually and together make sense of the new organisational reality. Finally, the process moves into a post-downsizing stage dominated by all the consequences of the downsizing, such as survivor syndrome among the remaining employees. Since the future of a company is based on the survivors’ performance and results, it makes sense to ensure their commitment, motivation and loyalty. Studies have demonstrated how surviving employees often react negatively to reductions, including stress, dissatisfaction, disloyalty, resistance to change, lack of commitment, absenteeism, intention to leave the company and decrease in job performance. Employees often become narrow-minded, self-centered and risk averse as they lose trust in the management and the corporate future. MANAGEMENT COMMUNICATION IN A DOWNSIZING After a downsizing it must be assumed that the re-

maining employees represent indispensable knowledge and resources of pivotal importance to the company. Therefore, it becomes critical if these people subsequently leave the organisation. Unfortunately, this is quite common. Generally, organisations are aware of the importance of communicating with the surviving employees. However, the communication is ﬁrst and foremost based on an idea of disseminating managerially-controlled information with the purpose of facilitating a planned change process in the form of employee reductions and their derived organisational changes. Since managements rarely seem 01/2014 COMMUNICATION DIRECTOR

THE STORY OF PR Looking back at landmark communications

PAST, PRESENT AND FUTURE POSITIVE Just as no two Asia-Paciﬁc countries have the same history and culture, the region’s public relations has grown in many different ways. By Mary Devereux

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hen looking at the origins of public relations in the diverse Asia-Pacific region, it’s easier to talk first about the countries which were, at one time or another, ‘colonised’ by a European power. Public relations in Hong Kong, Malaysia or Singapore, for instance, can be traced back to the period immediately following the second world war, when Britain re-established power to a degree and was then gradually (or dramatically) ousted or negotiated an honourable exit. Along with this strong emphasis on national identity and nation building, the public relations industry grew with the need for governments and corporations to present themselves within their own countries and to the outside world. This process was fastest in Hong Kong and Singapore, as they had the opportunity to portray themselves as gateways to the rest of Asia Pacific. By contrast, when it comes to the southeast Asian nations of Vietnam, Cambodia, Myanmar and Laos, public relations is still in relative infancy due to centuries of political upheaval and invasion. Vietnam is leading the pack in line with its economic development, however, and many international agencies and consultancies have a base or representative office there. It may be a surprise to people to know that Indonesia took an early lead over many countries in the 1950s, but while it is on par with the rest of Asia Pacific today, the absence of freedom of speech and media during President Suharto’s rule from 1966 to 1998 delayed much of its advancement. 01/2014 COMMUNICATION DIRECTOR

Less about public relations and more about public information, Thailand’s public relations industry took off after the 1932 Siamese Revolution with the government’s establishment of its own publicity department to promote democracy and promote a ‘Thai’ identity. The Philippines is further ahead than most of its near neighbours, despite being a victim of some of the world’s worst natural disasters. This is largely because it was a base for US activities during the second world war. Despite a conflicted political scene, its robust media system, a population of early adopters and its US-influenced outlook gave it quite a head start on most counties. The same could be said for Taiwan, which has been influenced considerably by US culture and public relations education. Further south, public relations in Australia and New Zealand emerged at approximately the same time, due to that war again, although with quite different agendas. Australia was much influenced by the arrival of General MacArthur and his own promotional team, and public relations was well entrenched by 1950. The same can be said of New Zealand, although it was perhaps more outward looking as it needed additional focus on attracting immigration and foreign investment than its neighbor.

THE SUB-CONTINENT India’s public relations heritage is said to date back to 272 BC when the Emperor Ashoka communicated with inscriptions on rocks and pillars. Whether true or not, public relations took oﬀ again after the second world war, evolving ﬁrst from government and then to corporate communications, before it became increasingly internationalised from the 1970s

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THE STORY OF PR

onwards. In the early 1990s, when India opened up its economy, in came a slew of companies and, with them, an experience and expectation of professional communication. Says Prema Sagar, principal and founder of Genesis Burson-Marsteller and the Genesis Foundation: “When I started out, no one knew about public relations – nor did I! Having begged and borrowed money to attend a course at Frank Jefkins Institute in London, I gained knowledge and learnt the fundamentals. My ﬁrst client was Park Hotel. It needed an image change without using advertising. We may not have known that what we were doing came under the realm of public relations, but we didn’t need to know the deﬁnition, we just needed to be creative.”

NORTH ASIA Looking towards northeast Asia, Japan can poten-

tially trace public relations back to the 1920s, as records suggest that the South Manchurian Railroad had a public relations department even then. However, it was also after the second world war that Japan began to establish a public relations industry, introduced by the US to national and local governments. As Japan’s economy grew, public relations (known as kouhou) expanded.

It may be a surprise to people to know that Indonesia took an early lead over many countries in the 1950s . Korea, known as the Hermit Kingdom for most of the 20th Century, was far behind most nations. This is to be expected when you recall that ordinary Koreans were not permitted to travel abroad until the 1980s. Bill Rylance, chief executive oﬃcer of communications consulting ﬁrm Watatawa, arrived in Korea in the mid1980s to manage the global communications programme for the 1988 Seoul Olympics. “The 1980s doesn’t sound too long ago in a conversation but it really was another age in reality,” he says. “Korea was still an authoritarian regime, with student riots and tear gas a part of daily life in the capital.” He was “parachuted” into the Seoul Ol01/2014 COMMUNICATION DIRECTOR

THE STORY OF PR

BETWEEN OPENNESS AND CONTROL China’s media landscape has undergone several revisions since 1978: its present state can be explained by tracing the development of these socially-inﬂuenced changes. by Hu Zhengrong, Lan Ruoyu and Ji Deqiang

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The changes in the media landscape run parallel with the societal changes that aﬀected ordinary Chinese in a transitional society.

CHINA’S U-TURN 1978 signiﬁed a U-turn in Chinese socialism not only in terms of ideology but also in ways people conceived their qualitative lives. It was in this year that Deng Xiaoping delivered his famous speech at the Third Session of the Eleventh Central Committee of the Party and steered the course of Chinese socialism toward politi-

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ocialism is Good is an old song that used to be very popular in Mao-era China. Wang Wei, a 53-year-old retired worker from a state-owned motorbike factory, seems to have taken a renewed interest in singing the song. As a typical Chinese citizen, Mr Wang lives in an apartment of 60 square meters with his wife, but has access to over 100 digital channels on his television and a two megabyte broadband ADSL connection to the internet. “Socialism is much better than its previous version,” he commented with a wrinkled smile during a chat with me, “and you feel that life starts to have quality.” It was unclear to me exactly what made Mr Wang draw such a conclusion, but his six-hour involvement in media communication every day clearly plays an important part.

THE STORY OF PR

cal ﬂexibility and economic reforms. Deng argued that “the very essence of socialism is the liberation and development of the productive systems” and so he determined to deviate from the hardline class struggle policies of Mao Zedong. Deng adopted a bottom-up approach to replacing political appeals with material incentives, and tried to indirectly manipulate a centralised management of macro-economy through market mechanism. The reentry into the global capitalist market system started as early as 1980s; however, China was only “accepted” by the World Trade Organization in 2001 after a series of tough negotiations. Now, after more than 10 years’ rapid economic growth and as the world’s second biggest economy, China is leading a new wave of restructuring global economic and political order, exempliﬁed by its active role in BRICS. Over the past three and a half decades, we have witnessed dramatic changes that took place both inside China’s political, economic and social domains and outside through China’s connections with the world. In parallel with these changes was a new ecology of media, communication and corresponding policy. However, the change in media policy of China has by no means been plain sailing, but has undergone four stages of transformation since 1978.

THE CHANGING STAGES OF MEDIA REGULATION There is

no doubt that the post-1978 political and economic revisions wielded great inﬂuence on the country’s media policy. Ratings and circulations have gradually become the basic concern of all media outlets in China, although they have to obey the Party line. Along with market

liberation and competition within the media industry, the public awareness of information equality, civil rights and citizenship have come into view, which, in turn, questions the cultural preparedness of the media products. From control to regulation to governance, the discursive change over China’s media policy also signals the Party’s self-innovation and adjustment in today’s complicated media and communication environment. The ﬁrst round of changes in China’s media regulation took place in 1978 and dragged on until 2000, concentrating mainly on the transformation of media structures, from accelerated marketisation to unprecedented

The first round of changes in China’s media regulation took place in 1978 and dragged on until 2000. conglomeration. The 11th National Radio and Television Work conference, held in 1983, was a turning-point: for the first time, local governments at city and county level were allowed to mobilise resources and set up their own media outlets. The four-tier broadcasting system (sijiban) was established by the early 2000s. As a consequence, the Chinese people realised that the once CCTV-occupied television set could actually hold a variety of channels. Meanwhile, the rein on media advertising was removed in 1978, which, together with the decline of government subsidies, opened up space for commodification and advertisement competition among the increasing number of media outlets. Later on, from the middle of 1990s, further challenges to growth limits and geographical boundaries occurred with the conglomeration of press, radio and television. The Guangzhou Daily Group, the first media conglomerate in China, was established in January 1996. The administration-initiated conglomeration has two-fold incentives: to strengthen ideological control through centralised management and to build media “aircraft carriers” to compete with transnational counterparts. The second stage occurred when China had to meet the various requirements set by the World Trade Organization upon its re-entry in 2001. In the media, cross-region/sector mergers and economic independence of media businesses were encouraged, and restraints on capitalisation were removed, permitting (in a controlled way) media businesses to absorb foreign or domestic capital through bank loans, stock markets and so on. Hunan Television Media had its initial public offering in 1999, which is regarded as “the first media share” (chuanmei diyigu) in China. By February 01/2014

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THE BIG INTERVIEW

KAISER KUO The director of international communications at search engine giant Baidu.com shares his insights into Baidu’s embrace of international markets, China’s digital landscape, censorship and more. Interview: Dafydd Phillips

How does your job as director of international communications support Baidu in their strategic goals? The fact that my function is housed within the investor relations department is signiﬁcant. Baidu is listed on NASDAQ , and most of our investors as well as our covering analysts live in the anglophone world. Naturally, the messaging that comes from my team needs to align with 01/2014 COMMUNICATION DIRECTOR

our investor relations goals. It’s also significant that my function is quite separate from domestic public relations, and that I report to our chief financial officer rather than to our vice president of marketing. What interests the Chinese media and its readership about Baidu and the internet industry more generally isn’t the same at all as what interests the anglophone media and its reading public. The issues that I face, the messaging that I push and the approach I take in my relationships with media outlets all contrast starkly with those of my counterparts on the domestic public relations team. My focus is on making sure that the people who matter to us outside of China know Baidu to be the well governed, technologically innovative, business-smart company that it is. Because we’re now entering other

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Key communicators under the spotlight

THE BIG INTERVIEW

markets, that’s becoming even more important. And it adds important goals to my work, like raising our profile as an employer and burnishing our employer brand for the kind of research and development talent that we’re on the hunt for in places like Silicon Valley. Where does Baidu fit in to China’s digital landscape? Baidu remains very much at the heart of the digital landscape in China, because so much activity online – whether on the PC-based internet or the vitally important mobile web – starts with search. Many if not most people outside of China are unfamiliar with Baidu’s approach to search, and so they don’t realise how central we are to so much of online activity here in this market. For the overwhelming majority of search queries, we don’t return a mere list of algorithmically-ranked hypertext links that a user then clicks away to. Instead, we deliver extremely useful structured data, content, services and even applications right there in your search results page, usually at the very top. So if you’re looking for a song you want to hear, just type or better yet say its name along with the artist’s name too and it pops right up with a play button and the lyrics, so you can sing along if that’s your thing. If you search for a game, or your query is something best satisfied with an app, you get that game or relevant app – or at the very least, easy links to the appropriate app store – right at the top of results. It’s a very different way of resolving search queries than what’s on offer from most other popular search engines. And it’s an approach that is making Baidu even more central to the online experience. Baidu’s approach to search

holds out the tantalising possibility that search can actually supplant and even obviate mobile operating systems as we know them today: you’ll only need a search box, and whatever you’re looking for – web-based apps, native apps, activating your phone’s camera, sending a text or instant messaging, anything you want to do at all – will be there at your command. You’ve said in a recent interview that “search complements social media very, very well”. Could you fill us in on Baidu’s work in this bringing the two together? When I said that I was referring mainly to the fact that most social media has truly awful search capabilities. If I want to find something I posted four years ago on a social site, it is challenging with today’s search. Alas, social media sites sometimes regard search players with a bit of suspicion, but I think there are obvious areas where mutual benefit could be readily had. For us, we’ve incorporated social results in what we think are appropriate places: people want social results, we find, when they’re looking for things like breaking news, or for trending terms. Offering social results for other categories of query is often not the best approach, so we’re selective.

What interests the Chinese media and its readership about Baidu and the internet industry more generally isn’t the same at all as what interests the anglophone media and its reading public. China has close to 700 million internet users. Do Chinese people use or expect different things from online search functions? Yes, I think Chinese people have come to expect very different things from search engines. I’ve already outlined Baidu’s approach to resolving queries – delivering more direct results, including content and apps. What is important to add is that this approach really grew out of our understanding the preferences and needs of our users, the overwhelming majority of whom are of course Chinese. They tend to search more often than their counterparts in western markets do for things like television shows, music ﬁles, e-books and other digital content they can consume directly, so we give them what they want. And they tend to expect a search engine to be able to resolve a query in natural language – in a full sentence, rather than with individual words. That’s actually been a real impetus for innovation for us, and natural language processing is one area in which we’ve really excelled because of our heavy 01/2014 COMMUNICATION DIRECTOR

STORY TELLER Looking at the important questions of communication

STORY TELLER

MAKING THE CASE Proving the value of communications “Science behind the art” by Gary Sheffer page 52 – 55

“Inﬂuencing the inﬂuencers” by Minari Shah page 56 – 59

“Building a connection” by Amy Ovalle page 60 – 63

“Drawing up a new set of blueprints” by Fritz Quinn page 64 – 77

“The bigger picture” by Sam Knowles page 68 – 71

“Dialogue in action” by Therese Necio-Ortega page 72 – 75

“What’s in a name? ” by Mark Roberts and Madeleine Little page 76 –79

“Interior affairs” by Stefania Romenti page 80 – 83

“Deep analysis” by Jim Macnamara page 84 – 87

“Measure for measure” by John McLaren

page 88 – 91

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STORY TELLER

SCIENCE BEHIND THE ART To make the case for the value of their work, corporate communicators everywhere must work together to better deﬁne and measure their impact. By Gary Sheffer

t strikes me that I could summarise this article by paraphrasing Donald Rumsfeld. There are known-knowns. There are known unknowns and there are unknown unknowns. Let me start with the known unknowns first. The fact is there is so much we don’t know about research and measurement. As communicators, we are sitting at a table with others in the company who have definitive metrics – the cost of capital, inventory turns, earnings per share, organic growth. In our line of work, we have useful and interesting criteria, but nothing as definitive as these metrics. Yet we know that the expectations upon us by the C-suite to show results and to demonstrate return on investment on our initiatives are greater than ever before. As data and analytical metrics help our organisations develop a better understanding of consumers and stakeholders, there is a greater expectation that

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similar benchmarks can and should be applied to communications. Simultaneously, as chief executives increasingly care about more than traditional proﬁt and loss measures – viewing social responsibility, the environment, philanthropy and employee communications as critical to success – they will rely on communications to monitor sentiment and reputation around the issues. We also know that the New Model of corporate communication – as deﬁned by the Arthur W. Page Society, which relies on identifying and activating corporate character, and then building advocacy at

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STORY TELLER

scale – means that we must have a better understanding of our audiences. We cannot enable advocacy without first understanding what motivates our audiences to action, and that relies on research. At the same time, through this new model, it is incumbent on the chief communications officer to identify the gaps where we are not authentically living our corporate character and to measure progress in living up to it. Lastly, we know that we are equipped today with the ability to be more effective in measurement, because we can measure more things. In the past, most research focused on communication outputs, but over time we’ve seen a concentrated move in the direction of measuring outcomes. We are now far more focused on attitude- and impact-based measures. Measurements of trust, reputation and brand engagement allow for a deeper assessment of the actual relationship that an enterprise has with stakeholders. Moreover, with technology, measurement can move from gathering snapshots in time (scheduled focus groups) to maintaining an uninterrupted pulse on sentiment over time. In other words, research and measurement separate the art of public relations from press agentry and publicity. When I joined GE in 1999, the only metric discussed in our communications meetings was the stock price and where we ranked on the Fortune Most Admired list, two metrics that remain important today. But by 2000, my boss Beth Comstock knew this wasn’t enough and set us on a course to conduct meaningful research into external and internal perceptions about GE, our reputation, our brand and our people. As we advanced through a tumultuous decade for our company,

we probed deeper into investor sentiment, depth of brand penetration, social media return on investment, our own employees’ view of GE and, most recently, how communications metrics can influence strategy and create commercial opportunity. Here, I want to walk you through that journey and reflect on five areas that I think we should focus on to advance the science behind the art of public relations.

I. As a profession, we need to come together to identify and agree on what determines meaningful metrics, and create a standard measurement system across all programmes and campaigns to deliver consistent, comparable data. Our credibility depends on it. In the words of the Institute for Public Relations, “we can’t aﬀord duelling measurement systems anymore…we must develop standard deﬁnitions and metrics now or be left behind.” The work of the Institute is a great example of the search for industry standards in research and measurement. It has established a set of benchmarks for traditional media analysis as well as social, for the communications life cycle (beginning with awareness and extending to advocacy), for return on investment and for ethics in research and measurement.

As a profession, we need to come together to identify and agree on what determines meaningful metrics. The next step is to begin exploring additional standards, beyond traditional and social media, as requested by the industry. For example, this might include standards for employee communications and investor relations.

II. We must use the tools out there to make strategic

decisions. But, importantly, before you use the tools you need to know what metric or sentiment you should be measuring – what is the meaningful insight that should impact your strategy? For instance when determining a communications strategy in the aftermath of the Fukushima nuclear plant crisis we needed to understand whether the public blamed GE or thought that this was an event caused by an earthquake and tsunami. Using measurement, we were able to discern the public’s understanding of this natural disaster and who they blamed for it, and provide strategic counsel to senior executives whose instincts may have guided them in a diﬀerent direction in the heat of a crisis. 01/2014

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STORY TELLER

INFLUENCING THE INFLUENCERS To have impact on the audiences that count, social media needs to be integrated with public relations planning.

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ocial media summits and training sessions are today the norm (they are certainly among the most common invitations I receive). It is fashionable to talk of an increasing convergence between public relations and branded content. Integrated communications has been around for a while now and with the advent of social media, agencies are increasingly invoking this holy grail. Let me, however, be a little contrarian. What is really new here? Did we not need consistent messaging in the past? Did “brand speak” say something different from what company spokespeople were saying in interviews? Sure, the words and the presentation differed – advertisements were obviously different from an interview or a press release. But the essence of what was being said was the same. Yes, with the growing categories of earned as opposed to paid formats, these overlaps have increased. The relation between advertorial content and branded content poses many ambiguities; but most companies with strong communications have always recognised the importance of validating the messages – be it editorial or advertorial. Let me pose another question. When was the last time you discussed your “print media strategy”? Or for that matter, remind me: what exactly is a “broadcast strategy”? No corporate communications team seems to have these. So do we really need a separate social media strategy? Of course we need to understand and decide the best way to address various digital platforms that offer a fantastic op-

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portunity to reach out. And yes, one could argue that there is a need to define which social media platforms may be the most suitable for a particular company; or more likely, what the mix of social media platforms for different messages and announcements should be. But once again I see a close parallel to how we have always defined the media we chose to engage with, for different message, events and announcements. Defining the best channel for communication is indeed standard public relations practice. There is a greater proliferation of channels but it is still important to prioritise, to find the appropriate channel for a particular audience and to attune the message and dress it in the right language to ensure a good fit.

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By Minari Shah

STORY TELLER

But this cannot – indeed must not – be a separate strategy. I would argue that the need of the hour is to integrate social media deeply within public relations planning. When I talk to young professionals just about to begin their careers, I am disconcerted by how many of them seem to think public relations is all about the content of a Tweet, an Instagram picture or a Facebook post. Moreover, digital marketing and digital public relations are two different animals and not necessarily best served by the same agencies for “integrated communications”. The reason is simple. Back when integrated communications ﬁrst began to make headway, we learnt the hard way that agencies that created the best ads did not always know how to subtly weave a story from a journalist’s perspective. When certain agencies did manage to integrate, they did so simply by hiring good public relations professionals and not by oﬀering their advertising creative heads as counselors.

Digital marketing is often simply the online extension through different means such as gamification and contests, to ensure success in this more-interactive medium. The online advertising strategy is now gradually maturing and moving away from simply placing their television ads onto YouTube and instead creating more relevant advertisements. But it is still paid for. And this is very different from the influencer strategy needed by a public relations team. There are undoubted overlaps but the subtleties of influencer programmes need to be clearly recognised. Of course, the marketing and communications team then need to work in tandem to achieve success but, for the umpteenth time, what’s so new about that?

FOCUS ON THE MESSAGE, NOT THE CHANNEL More than ever before, what we need is integrated, strategic, holistic public relations. A strong focus on strategic business needs that helps define key objectives and messages, then using these to filter all events and announcements, is imperative. Once this filter is clearly established, it is easier to plan exactly how and which channel to leverage to amplify this message: traditional print, broadcast or a social media platform. Or an appropriate mix of all. In other words, classic public relations planning. It is more imperative than ever before that there is no schizophrenia in the messaging, because the dissonance it may create will be far larger today than ever before. While this was always important, it was never as imperative or challenging as it is now. Global audiences, stories that get picked up by online media across these markets, and the blurred boundaries between external and internal stakeholders, all mean that there is no room for inconsistent or varied messaging. As such, while media relations, employee relations and social media policies (dissemination, monitoring, gov-

Digital marketing and digital public relations are two different animals and not necessarily best served by the same agencies for integrated communications. 57 ernance) are core to any company’s strategic communication plans, what it translates into in real life is that the core message must remain the same across all mediums and audiences. The heart of communication has always been the narrative, and the attention this needs is now immense. 01/2014

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STORY TELLER

BUILDING A CONNECTION Like many NGOs, The Asia Foundation works in several sensitive environments, demanding discretion and nuance in its communications. How does it balance this with the need for increased visibility?

hen I started working for The Asia Foundation, I had known the organisation for many years and had even used them as a source on background when I was a journalist. I had great respect for the complex and important work the organisation was doing across Asia, and admired their unique perspective of working holistically, and of being headquartered on the west coast of the US in San Francisco with most of the staďŹ&#x20AC; on the ground in Asia. My thought when I arrived was that I wanted the

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rest of the world to know about the Foundationâ&#x20AC;&#x2122;s tremendous work. I had come from the world of journalism, and journalists live in the emotional, visceral world where simple, descriptive language is everything. An early observation was that the language used by the Foundation in its outreach was somewhat sterile and removed, so this was a change. The development jargon and acronyms were overwhelming. This

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By Amy Ovalle

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led me to wonder: what if we weren’t afraid to talk about the Foundation, about us, as if we were part of something? And to put a more human face on our work? My old boss at National Public Radio, Daniel Schorr, infamous newsman and legendary “Edward R. Murrow boy”, used to tell the story about advice given to him when he moved to television: “Authenticity. If you can fake that, you’ve got it made.” Everyone who is supporting a cause or selling an idea or a product wants to deeply connect with people. Connecting usually comes from a sense of authenticity, warmth and emotion. When language and outreach is sterile or institutional, there is something less than an authentic connection. The Foundation was very good at doing its work, but there was a sense that communicating about it was not as crucial. That was the challenge – convincing folks it was a priority. I talked candidly with our trustees, who as diplomats, business executives, heads of institutions, supported the idea of wanting to inspire others to join our cause and support our eﬀorts. Once I had their support, things began to move within the walls of the Foundation. Over time we have been able to show the value of connecting with audiences.

CUTTING THROUGH THE NOISE To maximise limited re-

sources, expend them where they will make the most impact. We leverage our work across all communications platforms to be more impactful, super-efficient and costeffective. We’ve invested time, energy and resources into tools to help us communicate: photography, editorial, website, films, publications, special events, social media,

select advertising. We always say to our colleagues across Asia: no matter how important something is, if the communications team doesn’t publicise it, essentially it never happened. The beauty is that today we have the ability to leverage our stories across all these platforms and reach a broad audience. Asiafoundation.org is our key communications destination, and we create high-quality multimedia and interactive content that is informative, useful and cost-efficient. Digital and social is crucial in order for us to tell our story to audiences effectively; our noted blog, In Asia, makes a substantial contribution to the field of development and is one of the key entry points for visitors to our website.

CREATING A MINI IN-HOUSE NEWSROOM It is

the worst of times and best of times to work in communications. Worst because the state of journalism is in a very diﬃcult place with the limited resources in newsrooms, the proliferation of some outlets and downsizing of other, far-more reputable ones, all with far fewer resources for the reporters so they often can’t do in-depth, thoughtful reporting. But it is also the best of times because as an organisation, you can in a sense be your own news provider. Media need good content, and you can become your own little newsroom producing important stories on your own.

It is the worst of times and best of times to work in communications. And then we have fabulous tools like social media, video and photography to get the stories around to the most audiences possible. So it is a great time in that sense. Working traditionally – for example, doing a media interview – is still an immediate way to create value for your oﬃce, and we maximise editorial placements, promoting them in our social presence, in the blog and on the front page of asiafoundation.org. Make sure your people can contribute in ways where they can succeed. But doing interviews, like giving speeches, is a discipline and an art. It requires preparation, and not everyone is good at it. Writing blogs, tweeting, participating in a panel, promoting a study, are all good outreach vehicles – it’s not always sitting down for an in-depth media interview. Social media has helped us multiply our audiences. Building trust with those audiences has kept them coming back and reading. We are seen as thoughtful, unique, consistent and interesting. We don’t inundate people with self-promoting, repetitive news. 01/2014

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DRAWING UP A NEW SET OF BLUEPRINTS Far from its restrictive image, China offers today’s public affairs communicators room for innovation and ﬂexibility.

s you are all keenly aware, businesses are extremely sensitive to what is said and done in and by the People’s Republic of China. To borrow a phrase that has been serially adapted for a century, China is assuming the mantle of the country that, when it sneezes, gives the rest of the world a cold.

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The growing influence of China and its increasing importance to the revenue streams of a number of businesses poses several challenges for public affairs professionals, particularly those with headquarters outside the Asia-Pacific region. Companies are all trying to adapt their

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By Fritz Quinn

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strategies to fit within a Chinese framework, and often there is an understandable feeling that while this time seems to be different for China, we’ve seen this movie before. As communicators, we are uniquely positioned to help our business leaders understand and overcome some of the challenges they face when operating in a market like China. Speaking from my personal experience as a westerner, there is a greater degree of flexibility and appetite for innovation in China than many people realise. Undoubtedly, public affairs types face a variety of restrictions working in the Middle Kingdom, but they are few compared to the opportunities presented by working in a market that is developing as quickly as China.

SELL, SELL, SELL Before going further, helping our colleagues to better understand the public affairs opportunities in any market requires a certain amount of honesty on our part as communications professionals. We need to acknowledge that we are sales people. Normally when I convey this sentiment to peers they recoil with the look of someone who has just mistaken an onion for an apple; but we are. We have a product, or an idea or a policy initiative that we need someone else to ‘buy’ and we are rewarded (or penalised) based on our ability to convince people that they need what we are selling. In a way, we have an advantage over our ‘traditional’ sales colleagues in that we are not normally bound by strict, shorter-term targets. However, I think many of you would agree that this particular aspect is often more of a challenge than a benefit. It is more difficult for us to quantify for our organisations the value and

volume of our contributions to the bottom line in terms of dollars and cents. Think of the last time you had to pitch a public relations plan and you were asked to provide a costbenefit analysis. The chances are that was not a task that you took great joy in completing. This problem becomes harder when you are trying to advocate for (or defend against) an issue of public policy. Governing bodies and legislatures move at a ponderous pace, and oftentimes the greatest contribution the public affairs function can make to a businesses is ensuring that an action doesn’t take place. If that was not enough, things get even more complicated when China is added to the mix. A political system and regulatory process that is at best opaque, and a market that is still getting used to the idea of playing nice in the sandbox with foreign companies, does not always inspire a great deal of confidence. To say that it is not an easy task we face is an understatement. However, instead of casting this magazine aside in despair, consider what China has to offer from a public affairs standpoint that very few other markets can provide.

CHINA HAS LEARNED FROM OTHERS’ MISTAKES More developed markets like the US or Europe have gone through decades of regulatory upheaval. Keep in mind, however, that regulators have not been able to keep up with advancements in technology or in business practices. In ﬁnancial services, governments are still trying to implement policies to protect consumers from products deemed to have kick-started the global ﬁnancial crisis.

There is a greater degree of flexibility and appetite for innovation in China than many people realise. Advancements in information technology and the growing popularity of Big Data have added fuel to an already fierce debate over the role of government in protecting the privacy rights of its citizens. In those markets, the regulatory agenda is more reactive to external events, and as a result public affairs strategies are necessarily more reactive or defensive. In China, however, technology and business practices are leapfrogging those in other markets. For example, mobile phone ubiquity has preempted any dependence on land-line telephony. In payments, new technology has already disrupted the traditional cash-cheque-plastic evolu01/2014

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