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July 24, 2006

WAL-MART GETS DACH
 

Wal-Mart Stores, in its latest move to embellish its image, has hired Edelman vice chairman Leslie Dach as executive VP/corporate affairs & government relations. He begins next month and reports to CEO Lee Scott.

Scott called Dach's hiring "part of Wal-Mart's transformation over the last year."


Dach

Dach had been running the Wal-Mart account at Edelman.

He has strong credentials in the Democratic party gained from work for the Presidential campaigns of Jimmy Carter, Ted Kennedy and Michael Dukakis. Dach also served as director of scheduling and advance for former Vice Presidential candidate Geraldine Ferraro.

Edelman paired Dach in D.C. with former aide to President Ronald Reagan Michael Deaver for a one-two Democrat and Republican punch.

Dach, a former legislative director for the National Audubon Society, serves on its board and that of the World Resources Institute.

Deaver was upped to chairman/D.C. from vice chairman with Dach's departure. Rob Rehg was appointed president.

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Responses:
 

Realist (7/26):
Let's not oversell PR nor the excellent Edelman firm. What
actually, can this or any other PR firm do to help a client "avoid grief"?

Ron Levy responds to Realist (7/26):
Here's some of the "avoid grief" work Edelman has done--and several other great PR firms also have such achievements.

NATIONAL SWIMMING POOL INSTITUTE yearned for fewer lawsuits. People would cause accidents--as by ordering smooth tiles for around the pool--then blame the swimming pool companies (and sue) when the tiles got wet and people slipped. What Edelman did via the media was one of the great pool safety campaigns that got the public to use more sense in ordering and using pools. Results: fewer accidents, fewer lawsuits and more sales because each release would lead with how to more fully enjoy the delights of owning a pool.

KENTUCKY FRIED CHICKEN had grief because Colonel Sanders, the corporate founder and symbol, was getting increasingly old and unpredictable in what he'd say--sometimes criticizing the product! Edelman did not try much media training because Colonel Sanders resented being "told what to do." Instead, Edelman formed a team of "minders" who went everywhere with the Colonel. Once, when Colonel Sanders said today's chicken is "awful," a sweet minder chimed in that the refusal of Colonel Sanders to ever be satisfied is what inspired KFC to make better and better chicken year after year--and then she recited how many KFC stores there were and how much KFC chicken Americans enjoyed each month. A PR negative was turned into a positive.

THE WINE INSTITUTE, like many accounts, knew that if the product was misused--as by drinking too much of it --results could be bad for consumers and resulting headlines would be bad for wineries. So Edelman did a public information on the GOOD of drinking wine--such as health benefits. Wine was presented as a drink of moderation --and again the public was presented with a numerical endorsement, quantification of how much wine Americans enjoyed each month.

PUBLIC POLICY ACCOUNTS -- Some corporate executives, when facing unduly restrictive regulation or a need for supportive government action in the public interest, figured "nothing can be done." But if a client does nothing, it continues to bear the pain. If the client goes too far in offering campaign contributions, it can seem like attempted bribery that grossly offends legislators and may bring scandalous headlines. Either way--grief!

Edelman developed one of the three great early public policy PR experts, Dick Aurelio. (The other two were Morrie Lee, the "L" in MS&L, plus Hill& Knowlton's legendary Frank Mankiewicz.) Aurelio taught clients two realities: 1. You CAN safely ask the government for help, and your "right to petition the government" is actually written into the Constitution, but you have to petition prudently. Neither a patsy nor a payoff guy be. 2. The hand that grasps your hand warmly--the legislator's hand--is not the hand that writes the laws, which are commonly prepared by Legislative Aides. So make your case not just to the title holders but to the bill writers.

One Edelman account after another got government help (and less grief) thanks to Aurelio. By the time he was hired away by a cable TV company that made him their president, Edelman had brought in many more Aurelios, some perhaps better. The expression, "what you see is what you get," is not always correct. Sometimes what you GET from PR is what is NOT seen--a reduction in public acceptance of untruths and half truths that cause a client grief but that PR can reduce or stamp out.

Another PRGuy (7/25):
Wal-Mart did this exact dance with FH a few years ago. I guess it didn't work. These guys could cure cancer and labor would still hate them.

When will they get it?? (7/24):
Wal-Mart just keeps hirin' and spendin' and hirin' and spendin . . . . on people to 'fix' its image. It still hasn't sunk in -- change the way you do business, and the reputation will follow.

Ron Levy replies to comments below (7/24):
Not only does Wal-Mart pay a "living" wage but it's a wage on which employees are living much BETTER than if they didn't have their Wal-Mart jobs.

Common sense tells us that in a free country, people work where they can get the best available compensation. If Wal-Mart paid more and charged more, some of the 1.5 million employees would benefit but many of the 100 million+ customers (some of them short of money, struggling to live) would lose. And if higher prices caused Wal-Mart to lose customers to Target and K-Mart, can we doubt that marginal Wal-Mart stores would close and some Wal-Mart employees would lose jobs they need and deserve?

Common sense also tells us that Edelman has two good reasons not to enforce a non-solicitation clause.

One, Edelman may make a lot more money on Wal-Mart with Dach running their PR. Dach knows, as few do, how much more benefit Wal-Mart could get by using Edelman for marketing support and health PR. Can we doubt that Wal-Mart could be getting a lot more business from pharmacy work, wheel chairs and such, and from clothing and shoe lines that win awards from American consumer groups and in Paris? Or that the Edelman firm knows how to make this happen?

Two, Edelman and that whole management team got where they are not by suing clients but by helping clients. They deserve credit not only for achievements we know about but also--much less well known and almost not known at all--for the grief and cost Edelman has helped clients to head off and AVOID.

When Richard Edelman takes a client to eat at the Harvard Club, there's something about the place that makes clients realize they're in a special place--and in the presence of someone special--and they LISTEN.

If you God forbid get a terrible illness, you might pray to find doctors who can do medically what Edelman can do informationally and via counsel, and firms like this don't sue their clients.

Good old Wal-Mart responds to Ron Levy (7/26):
Yes, it's true. Wal-Mart employees are living better working for very low pay than no pay at all. That's called slavery and it was abolished. I would not want to have to live on their wages.

Chicago PR Guy (7/24):
Maybe I'm dumb, but how does bringing in-house the architect of Wal-Mart's disinformation campaign enhance their credibility?

And, since Dach was running the Wal-Mart account at Edelman, how was Wal-Mart able to get around the non-solicitation clause that was inevitably in its contract? Could it be the promise of even more spending in the years ahead?

New York PR Guy responds to Chicago PR Guy (7/24):
A non-solicitation clause can be almost impossible to enforce if the departing employee has a good law firm and is honest enough not to try walking off with the employer's computer, lists or programs.

Dan Edelman himself got his start by leaving the Byoir PR firm to start his own – taking the big Toni account with him. If a restaurant manager moves to a differet restaurant, you're allowed to eat there and the restaurant is allowed to serve you (if the restaurant manager has a good law firm) no matter who signed what.

If you go after an account or job that everyone else in America has a right to go after, ask any good lawyer whether the old employer can yell, threaten and even sue but whether the 14th Amendment of America's Constitution protects you (as it protected Dan Edelman and thousands of other PR people who've left to start their own shops or take a job with the client).

Arnie Huberman (7/26):
"And, since Dach was running the Wal-Mart account at Edelman, how was Wal-Mart able to get around the non-solicitation clause that was inevitably in its contract? Could it be the promise of even more spending in the years ahead?"

That makes it sound far more evil than it probably is - I suspect Wal-Mart asked permission to speak to Leslie, and Richard is nothing if not pragmatic - so he can waive it if he wants, and it seems like this is a win-win for all involved.

[ed note: A statement about Dach by Richard Edelman has been posted on Edelman's blog.]

No Living Wage (7/24):
If Wal-mart paid its poorly paid workers a living wage, there would be no need to spend large sums of money to bolster its image.


 

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