The eight page weekly is the only PR newsletter on LEXIS/NEXIS.
Edition, March 28, 2007, Page 1
NEVADA REVIEWS $200K TOURISM
authority has initiated a review of its six-figure PR account.
Austin, Tex.-based R&R
and Carol Infranca and Associates of Reno have recently
handled PR work for the Nevada Commission on Tourism, which
is also holding a separate review of its advertising account.
PR spending will range
from $200-250K per year, depending on appropriations by
the Silver States legislature. The Commission, which
has two PR staffers, wants to award a 20-month contract
to begin in October, a term which could stretch to four
years with options.
An RFP was issued on March
15 and calls for proposals from PR firms that have been
in business for five years. Pitches are due by April 13
and copies of the RFP can be downloaded from the states
procurement website, purchasing.state.nv.us.
F-H ADDS TALENT.
Jim Talent, the former Missouri Senator who lost his seat
to Democrat Claire McCaskill in the November election, has
joined Fleishman-Hillard as a co-chairman in its government
relations unit. He will work at the Omnicom units
St. Louis h.q. and in its D.C. office.
F-H CEO Dave Senay, praised Talents ability to work
across party lines to find mainstream and bipartisan
solutions to critical public policy issues. He served
the Show Me State for two decades in the House
Talent joins other chairmen in F-Hs government relations
practice, including former Rep. Bill Luther (D-MN) and Max
Sandlin (D-TX); ex- Bronx Borough President and New York
City Democratic mayoral nominee Freddy Ferrer.
PAINE HANDS CEO REINS TO MCCULLOUGH.
David Paine, who founded PainePR in 1986, has tapped president
Daryl McCullough as CEO.
The 42-year-old McCullough adds operational, client service
and financial duties to his creative responsibilities. He
promises to continue to push the envelope.
Paine, 50, will continue to play an active role as chairman
of the firm, providing long-range planning recommendations
and counseling key clients.
That roster includes Toshiba Business Solutions, Procter
& Gamble, American Suzuki, and XM Radio.
PainePR has offices in New York, Los Angeles and Boston.
It is part of Quebec City-based Cossette Communication Group,
which has 1,400 employees in Canada, U.S., U.K. and China.
TECH, HEALTH, FINANCIAL PR
Technology, healthcare and financial PR/IR were the fastest
growing PR specialties in 2006 based on reports of independent
firms given to ODwyers.
Specialty rankings are on pages 4-5.
The number of firms reporting technology fees jumped from
53 for 2005 to 75 for 2006 with many of the biggest firms
reporting substantial gains.
The same held true for healthcare (80 firms reporting 2006
figures vs. 60 in 2005) and financial/IR (rising to 61 from
49). Food & beverage PR firms reporting rose to 56 from
There was a 40% jump in the number of specialty rankings
received from 367 to 513 for 2006.
This indicates to me that PR is increasingly being
defined by the special areas of practice, said publisher
If you want technology, healthcare or travel PR you
would go to a firm with a deep background in those areas
just as you would go to a lawyer specializing in real estate,
copyright, litigation and so on for legal work, he
Edelman, the biggest independent with $324.4M in fees in
2006 (more than triple its closest competitors), led in
eight of the 11 categories. It was in second place in agriculture
and tech and third place in sports/leisure.
NATIONAL PR GUIDES MENU FOODS
Canadas National PR has been called in to guide pet
food maker and supplier Menu Foods through a lingering crisis
and recall connected to tainted dog and cat food in the
U.S. and Canada.
The Toronto-based company supplies brands like Iams
and Nutro as well as store-branded pet foods by Wal-Mart
It has recalled 60 million units but has not been able
to pinpoint the cause of at least 16 pet deaths thus far.
Tests in New York on March 22 found traces of rat poison
in the food blamed for several pet deaths.
Sam Bornstein, a veteran public affairs exec for National
in Toronto and formerly of sister firm Cohn & Wolfe/Canada,
is handling the Menu Foods account. He did not return a
Menu Foods has set up a website with information on the
recall and companies that deal with MF are scrambling to
warn or reassure customers about the scare. MF president
Paul Henderson apologized on March 21 for the scare.
Lawsuits have been filed by at least three owners who have
lost pets that ate Menu Foods products.
Edition, March 28, 2007, Page 2
DUBAI SEEKS AVIATION ACQUISITION.
Bell Pottinger PR is working
with MWW Group for Dubai Aerospace Enterprise, the investment
firm that is in negotiation with Carlyle Group to acquire
its Standard Aero Holdings unit in a deal worth $1.5B, according
to BPPR chairman David Wilson. He heads the DAE account
as BPRP is the companys lead global agency.
Wilson said MWWs
Rich Tauberman is the main point of contact
here. MWW, which is owned by Interpublic, represents DAE
in North America. It is coordinating outreach with BPPR
staffers in London and with DAEs officials in the
United Arab Emirates.
The potential deal for
the maker of engines and turbines for jets has drawn attention
of Capitol Hill lawmakers in the aftermath of the aborted
Dubai Ports World attempt to acquire control of American
Long Island Congressman
Peter King, the top Republican on the House Homeland Security
Committee, told the Wall Street Journal that the anticipated
aviation deal will be the first major test for the Committee
on Foreign Investment in the U.S. since the DPW acquisition
That government panel
must approve the foreign takeover of American assets that
are deemed important to national security. King was an ardent
opponent of DPWs acquisition try.
GEPHARDT FIGHTS CARBON CAPS.
Peabody Energy, the worlds largest private sector
coal company, has hired Dick Gephardts firm to spearhead
its drive to defeat efforts by Democrats to put caps on
carbon emissions in a bid to combat global warming.
The former House Majority Leader from Missouri will argue
instead for increased funding for clean coal technologies.
Peabody maintains that investment in clean coal tech will
move toward the ultimate goal of near-zero emissions
Mandatory caps without enabling technologies to control
emissions, according to Peabodys social responsibility
report, would be irresponsible, contributing to adverse
health impacts and economic harm through the loss of affordable
The coal from the St. Louis-based company accounts for
10 percent of the electricity used in the U.S.
OTA MOVES TO GCI.
Kevin Ota, a bi-coastal technology pro who worked at Hill
& Knowltons Blanc & Otus unit and Connors
Communications, is the new senior VP and New York corporate
practice leader at GCI Group.
At B&O, Ota advised TiVo, Hotwire and Rocketcash as
well as old-line tech powerhouses Motorola and
Xerox. While at CC, Ota took on Vonage and Red Roller.
The 17-year PR pro will report to Stephanie Marchesi, New
York president of the WPP Groups operation. Ota also
will coordinate activities with Kiersten Zweibaum, executive
VP & global practice leader in London.
GCIs clients include Dell, Genentech, RadioShack,
Whole Foods, Starbucks, Merck and Nike.
THREE RACE FOR AUDI ACCOUNT.
Interpublics Bragman Nyman Cafarelli, 5W Public Relations
and Shepardson Stern + Kaminsky are competing for the Audi
of America account that is expected to be awarded within
The Volkswagen unit challenged the firms to create a program
designed to maintain the buzz surrounding the
Audi Q7 crossover SUV model that was launched to the international
press last February.
Audi also asked for campaign ideas to build awareness and
media coverage of the brand with celebrities, VIPs
and influencers in the entertainment industry. Audi has
a VIP program for vehicle loans and a chauffeur fleet in
Los Angeles. There are mini programs in New York and Miami.
The winning firm is expected to work seamlessly
with Audis eight PR staffers to earn media impressions
and to create dynamic events.
N.O. MAYOR SEEKS PR FIRM.
The office of New Orleans Mayor Ray Nagin is looking for
a PR firm to help craft the citys message on a local
and national level.
Nagins office of communications has issued an RFP
to find a messaging and media savvy firm that understands
the unique opportunities and challenges faced
by the city.
A willingness to supplement standard retainer fees with
pro bono services is a goal for the solicitation, according
to the RFP.
Ernie Collins, director of marketing for the city, told
ODwyers that there was no incumbent. He referred
a call to the mayors communications director, who
did not return a call.
New Orleans tourism and convention authority is working
with Weber Shandwick. The citys police department
is also in the midst of a search for a firm.
Proposals are due by March 30. Collins (ecoll[email protected])
is overseeing the RFP.
SUSAN MAGRINO AGENCY BLASTS
Space Adventures, the self-described sole company on Earth
to send paying passengers into space, has picked New York
shop Susan Magrino Agency to brand and handle
media for the April 7 launch of Charles Simonyi into space.
The architect of Microsofts Word and Excel will be
the fifth tourist to visit the International
Space Station. He will take-off from the Baikonur Cosmodrome
Charles Thalberg, of SMA, told ODwyers that
the PR firm largely noted for its work for Martha Stewart
is well-suited to handle the SA account.
Its the ultimate luxury vacation, said
Thalberg, in noting that the shop is well-grounded in the
high-end travel market. Simonyis flight costs in the
Eric Anderson, founder of SA, has a plan to send thousands
of astronauts into space during the next decade,
which will make trips more affordable.
The company currently offers a zero-gravity
experience for $3,500.
Edition, March 28, 2007, Page 3
MARTINEZ QUITS LAT.
Andres Martinez resigned
as editorial page editor of the Los Angeles Times after
publisher David Hiller killed an op-ed section guest edited
by Hollywood producer Brian Grazer that was slated to run
The move followed news
that Martinez was romantically involved with Hollywood publicist
Kelly Mullins. Her firm, 42 West, reps Grazer.
Mullins issued a statement,
saying that she never lets her personal relationships interfere
Martinez, who is getting
a divorce, said Mullins had no input into the selection
of Grazer, producer of A Beautiful Mind, as
to ax the section, amounts to a vote of no confidence
in my continued leadership, blogged Martinez on the
NBCU, NEWS CORP. TARGET YOUTUBE.
NBC Universal and News Corp. plan to launch a venture this
summer to offer a video website based on material from their
TV networks and film studios. That operation is squarely
aimed at Googles YouTube unit.
Clips and episodes from shows such as The Tonight
Show, Saturday Night Live, 24
and The Simpsons will be available via an embedded
customized player on partner websites.
Peter Chernin, president and COO of News Corp., christened
the deal a game changer for Internet video.
Jeff Zucker, president/CEO of NBCU, said in a statement
that consumers will get a "hugely attractive aggregation
of a wide range of content, and marketers get a novel way
to connect with a large and highly engaged audience.
NBCU and News Corp. have enlisted distribution partners
such as Yahoo!, MySpace, AOL and MSN to play their content.
Charter advertisers include General Motors, Intel, Cisco
and Cadbury Schweppes.
The venture follows Viacom International's decision last
week to lodge a $1B copyright infringement suit against
a 15-year veteran of the New York Times, is now covering
the publishing beat for the paper. He was most recently
in the metro section.
Perez-Pena replaces Kit Seelye, who is returning to the
Tim Ryan, who
was VP-circulation & consumer marketing at the Chicago
Tribune, is the new president/publisher/CEO of the Baltimore
Sun. Both papers are Tribune Co. properties.
Ryan succeeds Rondra Matthews, who has decided to move
to Virginia to take care of an aging parent. She assumed
the Sun post in October.
Ryan had been VP-circulation & operations at the Sun
for five years beginning in 2000. He joined the Tribune
in `82. He moved to the Philadelphia Inquirer in 1993 for
the top circulation job.
deputy editorial page editor at the Los Angeles Times, is
joining the Washington Post as its online opinion editor.
TURNING CRISIS WORLD UPSIDE
Crisis pros Eric Dezenhall and John Weber have written
a book on damage control to refute the "current dogma
of surrender that permeates the PR industry-the template
that a capitalist enterprise is a guilty enterprise."
A business can only rise above a crisis if its counselors
embrace capitalism as something that "must be defended,
not cringingly tolerated."
They equate a well-managed crisis to a tale of redemption.
Redemption, write the authors, is anchored in truth and
the best vehicle for the truth is a hearty defense.
"The hackneyed chestnuts of conventional PR have not
withstood the crucible of our uniquely savage climate,"
according to "Damage Control: Why Everything You Know
About Crisis Management Is Wrong."
The goal of crisis management is often to make a bad situation
less bad, according to Dezenhall and Weber, who is president
of Dezenhall Resources in Washington, D.C.
"If conventional PR has been disparaged as telling
pretty lies, then crisis management should be praised as
telling ugly truths," they write.
The executives call crisis management "unpleasant
work." There aren't any corporate executives giving
each other "high-fives" every time a media attack
is averted. You won't find "crisis management academies
out there doling out statuettes for bad news averted."
Relief is the reward of crisis managers, they note.
Dezenhall and Weber review many PR textbook crises. They
tackle the "crisis mythology" that grew around
Johnson and Johnson's Tylenol affair. The drug giant has
been lauded for its "instant" recall of the capsules
though it actually took eight days after the first deaths
were announced before Tylenol was removed from the market.
In a "quasicomical twist," PR consultants with
peripheral (if any) connection to Tylenol sang the praises
of J&J's "brilliant" crisis plan in many business
forums, thus "repeating the central myth of the instant
recall," write Dezenhall and Weber.
The authors, on the other hand, believe Exxon may have
been unjustly branded for "handling the worst crisis
in corporate history." Though Exxon Valdez was responsible
for the biggest oil spill in U.S. history, the company spent
$2.2B to clean up the mess and earned a commendation from
the U.S. Coast Guard for the effort.
That recovery story never got out. "Instead, what
got covered were heart-wrenching pictures of oil-coated
birds and dying seals juxtaposed against the failure of
a company to swiftly put forth an executive who could express
regret and outline the company's game plan," the authors
Prince William Sound recovered far faster than Exxon's
reputation. The company has acquired a "character crisis,"
which is when the very moral fiber of the company-not the
events surrounding the crisis-comes into question, and Exxon
is now an "allegation magnet.
Crises handled by Martha Stewart, Firestone, Lance Armstrong,
Catholic Church, Tyco, Wendy's and Merck are analyzed in
Edition, March 28, 2007, Page 4
Edition, March 28,
2007, Page 5
Edition, March 28, 2007, Page 6
TVEyes, Fairfield, Conn., has signed Syracuse Universitys
Martin J. Whitman School of Management for its video monitoring
PRWeb online newswire unit has inked a deal with
the Associated Press to distribute releases to media outlets
on the AP Datafeatures service. ...PR
Newswire photos and images are being displayed on
Reuters 7,400-square-foot digital billboard in New
Yorks Times Square. The photos are accompanied by
a news release headline and are displayed in 15-second increments.
PRN landed the placement deal with Reuters TimesSquare²
division. Steve Stern,
VP of marketing for Coldwell Banker Residential Brokerage,
to broadcast PR shop zcommunications, Bethesda, Md., as
a senior VP. He was previously VP and GM at LM&O Advertising.
a former radio anchor and reporter, joins as manager of
news services. ...Bradley
Hunt, executive VP and chief technology officer of
the Motion Picture Association of America, to the board
of Teletrax, the broadcast monitoring unit of Medialink.
founder and president of Caplan Associates Executive Search,
is slated to be honored as the Healthcare Businesswomens
Associations 2007 Star Volunteer at a May 3 luncheon
in New York. Caplan has focused on the healthcare sector
in a 27-year-search career. She opened CAES 13 years ago.
an independent writer and editor, and Sheri
Rosen, manager of employee comms. for Frost Bank,
San Antonio, were designated as IABC Fellows, the highest
award from the International Association of Business Communicators
recognizing leadership, service to IABC and professional
OF PR FIRMS
HITS VIRGINIA LOTTERY.
won the Virginia Lottery, a $19M integrated advertising,
PR and interactive communications account. The account follows
Qorvis acquisition of Sparkys Garage ad agency
focus of the campaign is to educate residents of the Old
Dominion State that the Lottery has generated more than
$3B to help schoolchildren.
Replogle, Qorvis managing director and chief mechanic
at Sparkys, has created ad campaigns for Dunkin
Donuts, GlaxoSmithKline and Harley-Davidson.
contract runs through March `10. The Lottery, which sells
more than $1B in tickets a year, has contributed from $330M
to $450M annually to Virginias schools since 01.
pitched with a handful of other contractors. Barber Martin
Advertising, Richmond, Va., was the incumbent on the account.
Sloane & Co. is the ninth largest New York firm
with $8.6M in fees, up 12.3%, and Makovsky
& Co. is the 13th biggest firm in New York with
$7.3M in fees, up 27%. Hunter
PR is No. 12 in New York with $8.4M in fees. All
three firms were omitted from last weeks geographic
rankings of PR firms.
director of marketing and communications, Executive Service
Corps, to the Mass Technology Leadership Council, Boston,
as VP of programs and comms.
Gary Ng, director
of IR and corporate comms. for China-based Clear Media Limited,
to Lenovo, Research Triangle Park, N.C., as VP of IR. He
is based in Hong Kong.
who has done PR work for the Centers for Disease Control
and Prevention, to Denmark, Atlanta , as PR director.
a former Ogilvy PR Worldwide and National Council for Adoption
exec, to Vollmer PR, Houston, as an account director.
founding partner, AGM Consulting, to Veridigm, Los Angeles,
gaming software, as VP of corporate communications and a
member of its board.
to managing director of litigation comms. for Fleishman-Hillard
in North America.
Becky Watt Knight
to senior VP, GYMR, Washington, D.C. She joined the firm
in 2003 after stints at Ogilvy PR and Ketchum. Lauren Musiol
was promoted to assistant A/E.
to Midwest market leader, Burson-Marsteller, Chicago. The
six-year B-M veteran continues as a managing director in
the firms media practice. He heads work for the National
Cattlemens Beef Association.
to associate director, Ketchum North America, global marketing
practice, based in Los Angeles.
Lisa Lori Communications,
New York/Frederick Wildman and Sons, for PR, marketing and
events for its Folonari, Santi and Melini Italian wines.
The Cannon Group,
New York/Fuel Outdoor Holdings, outdoor advertising, as
AOR for PR. The company previously handled PR in house.
The Simon Group,
Sellersville, Pa./Nestec, thermal oxidation and air pollution
control systems, for a North American marketing program.
Atlanta/Modulant, data services and management, for PR.
Hollywood, Fla./Jawbone Productions, for launch of the biblical
board game Inheritance.
Scott Phillips + Associates,
Chicago/Five9 Technologies, information technology management
consulting, for PR.
5W PR, Los
Angeles/Helinet, aviation services and aerial photography;
Twin Spin Music and Jaded Entertainment, music labels; MakeMeHeal,
cosmetic surgery and anti-aging website; Babylicious, luxury
baby products, and CWatre, skin care line, all for
Los Angeles/Jerusalem Compass, for PR.
Edition, March 28, 2007, Page 7
COUNSELS VONAGE IN PATENT DISPUTE.
Partners is providing PR counsel to Vonage, the Internet
telecom provider locked in a nasty patent squabble with
Kalm, president of Chicago-based RP, told O'Dwyer's that
his firm is handling corporate and issue-related PR for
the Holmdel, N.J.-based company, which is the top provider
of VoIP services.
on March 23 was hit with a federal injunction over its use
of technology patented by Verizon, a halt that is delayed
while an appeal is heard. The company said it is confident
that service to its more than two million customers will
not be changed.
federal district court last week ruled that Vonage violated
three Verizon patents and ordered the company to pay $58M
and royalties on future revenues.
posted a $286M loss on revenues of more than $600M for 2006.
Craig Streem, who joined the company last June as senior
VP of investor relations following its disappointing IPO,
left Vonage this month.
Shandwick continues to handle consumer PR for the company.
JFWBF AIDS RUN AT NYTC.
Joelle Frank, Wilkinson
Brimmer Katcher joined Morgan Stanley activist fund manager
Hassan Elmasrys campaign to pressure the New York
Times Co. to drop its two-tier stock system, a set-up that
gives the Sulzberger family control over the $3.3B company.
Morgan Stanley recommended
Joelle Franks firm to Elmasry in order to reduce
franchise risk, according to a front page story in
March 21 Wall Street Journal.
[The NYTC, which called
in Sard Verbinnen, slapped MSanother pillar of the
NYC establishmentwhen the Sulzberger family pulled
its assets from the investment bank.]
44, has been critical of the Times sorry stock performance,
acquisition strategy (International Herald Tribune and About.com)
and plans for a new headquarters.
The Journal reports that
Elmasrys first request in `03 to meet Sulzberger was
rebuffed by Catherine Mathis, VP-corporate communications.
After trading a series
of letters with Sulzberger (and sending copies to Class
A directors), Elmasry got to meet with Sulzberger, Mathis
and CEO Janet Robinson last February upon order of the board.
The fund manager wasnt
happy with the outcome of that session and decided to withhold
votes for the Times director slate at the `06 meeting.
Thats when MS suggested hiring JFWBK. A JFWBK staffer
said that the firm still represents Morgan Stanley Investment
In January, Elmasry wrote
his fifth letter to the Times board to express disappointment
that it rejected his shareholder proposals to vote on dropping
the dual stock structure. The board invited Elmasry to make
a full presentation to it, which he did last month.
The WSJ reported that
the NYTC considered going public, but the Sulzberger family
has no intention of surrendering the dual stock structure.
The paper said Times management faces a tough April 24 annual
RB REPS RAIDED PENTAGON CONTACTOR.
Rasky Baerlein Strategic
Communications is representing Michael Bianco Inc, the New
Bedford-based leather goods company that was raided by hundreds
of federal immigration officers on March 6.
The feds rounded up at
least 360 MBI employees, and shipped them to Texas for deportation
MBI owner Francesco Insolia
and three managers face federal charges that they knowingly
The Rendon Groups
Boston office, which is headed by Rick Rendon, was brought
in to deflect the sweatshop charges.
It shot a six-minute video
inside the plant, showing clean and well-lit conditions.
That footage featured images of workers assembling survival
gear for U.S. troops headed for Afghanistan and Iraq. (Rendon
Group CEO John Rendon is the Pentagons go-to
guy, having managed PA in Afghanistan and Iraq.)
The tape was aired on
Boston TV stations WGBH and Fox-25.
The 100-year-old MBI facility
is surviving on the strength of $90M-plus Pentagon contracts
to make vests and backpacks for the U.S. military.
SCHELLHARDT TAKES PEN TO EDELMAN.
Tim Schellhardt, who was
senior VP/editorial services at Ketchum since `01, has exited
that post for a similar one at Edelman.
As senior VP-corporate
editorial services, Schellhardt will support the writing
needs of Edelmans corporate clients.
Schellhardt spent more
than 30 years as a reporter and bureau chief at the Wall
Street Journal before moving into the PR arena.
He was White House correspondent
during the Reagan and Carter Administration and bureau chief
in Chicago and Pittsburgh.
He will write in Edelmans
CAPLAN PROMOTES CARSON REVIVAL.
is handling PR for Linda Lear, the biographer of Rachel
Carson, who is credited with launching the modern-day environmental
Lear wrote an introduction
to Carsons first and favorite book, Under the
Sea-Wind (1941), which has just been re-issued by
The level of freshness
that Carson brings to her account of the cycles of seasons
and the struggle of each creature for survival makes Sea-Wind
in some ways her most successful book, wrote Lear.
CC also slates a push
leading to Earth Day (April 22) for Courage for the
Earth: Writers, Scientists, and Activists Celebrate the
Life and Writing of Rachel Carlson, which is edited
by Peter Matthiessen, and Silent Spring, Carsons
1962 classic that led to the banning of DDT.
Aric Caplan, who heads
the Rockville, Md.-based PA and environmental advocacy firm,
says the environmental movement holds Carsons books
as seminal literary works that have altered the course
Edition, March 28, 2007,
Control, by former Reagan White House communications staffer
Eric Dezenhall and co-author John Weber (both were
once at Porter Novelli), is a breath of fresh air in crisis
PR (page 2).
Its realistic, recognizing
that a PR firm entering a bad situation cannot work miracles.
We can make a bad situation less bad, says Dezenhall.
Some irreversible realities must be faced, he
The firm does not do competitive
pitches because it raises the level of expectations
too high, he says. A war of promises takes
Were reminded of
the approach Hill & Knowlton used for decades. It interviewed
clients rather than the opposite. It would not take a client
unless the client had a realistic view of what PR could
All were talking
about here is good will, CEO Bert Goss used to say.
H&K publicly listed more than 400 clients. Dezenhall
says an organization should have a basic likability
(good will) such as President Reagan had that can carry
The authors dispel
myths surrounding Johnson & Johnsons handling
of the 1982 Tylenol murders.
There was no instant withdrawal of the product
and the product itself was flawed. Capsules can be
pulled apart, used for receptacles for foreign material,
and then resealed, the book says. A quarter
of a century of hindsight may suggest that J&J should
have recalled the capsules immediately and ceased their
production, say the authors. Instead, the capsules
were not pulled until the next week and only after another
near-murder via Tylenols in Oroville, Calif.
J&J, unable to face the truth about its product, blamed
the packaging, quickly reintroducing capsules in tamper-resistant
containers. This resulted in the murder in 1986 of 23-year-old
Diane Elsroth in Yonkers, N.Y., daughter of a State trooper.
What saved Tylenol was goodwill built up by J&Js
baby products, say the authors.
J&J, with its PR and advertising might, ushered
in a new wrinkle in crisis management: proselytizing how
well the company has handled the crisis itself. PRSA
helped by giving J&J a special Silver Anvil in 1983.
J&J was a big advertiser in PRSA publications for many
years and the Robert Wood Johnson Foundation gave $2.6M
in 1998 to the Kids in a Drug Free Society started
by the PRSA Foundation and the Partnership for a Drug-Free
America. Pat Jackson, 1980 PRSA president, got a $200K PR
pilot program in 2001. RWJF cancelled the program in mid-2001.
PRSA had promised to raise $1M for KIDS but had a loss of
$1M in 1999-2000 and failed to raise anything.
All crises are different,
having their own pathologies, say the authors.
The alleged cookie-cutter solution of J&J (pull the
product immediately and fix it) not only was not applied
by J&J but cannot automatically be used in any crisis,
Theyre not generally in favor of apologizing because
it could be used in a lawsuit. Critics should be attacked
if theyre vulnerable. They note flaws in the media
including the use of too many junior reporters by profit-obsessed
owners. Much of the younger generation gets its news from
comedians on TV like Jay Leno, Bill Maher and Jon Stewart,
they note. About the worst thing that can happen to a product
is to become a joke on one of these shows. PR people often
cant handle crises because theyre too hooked
on agreeability. Theyre used to projecting
positive images rather than making bad situations
a little less bad, say the authors.
philosophy should replace that of James Lukaszewski,
the crisis guru of PRSA, who conducted 16 seminars and teleseminars
for PRSA in the latest six months and has his crises volumes
featured on the PRSA website. His antipathy to the media
is on the record in many ways (9/20/06 NL). A blurb for
his $795 crisis seminar Oct. 12-13, 2006, said: Gaining
a management perspectivethe only perspective that
matters. Pat Jacksons attitude to the press
was duck em and screw em (told to
Morley Safer of CBS-TV).
Dezenhall and Weber (or any major PR firm) to help PRSA
face its irreversible realities such as inaccurate
financial reporting; failure to reach college students (9,000
PRSSA members in a college population of 11 million); its
moribund APR program; cancellation of the members
directory without their permission; hefty spending on leader
and staff travel and other perks, etc...we
dont see how PRSA, with its anti-democratic practices,
can hold its conference in October in Philadelphia, the
birthplace of American democracy...PRSA
COO Bill Murray describes PRSAs financials
as excellent and a PRSA statement on strumpette.com
March 19 says theyre healthy. Theyre
not. PRSA was technically insolvent in 2000 because it couldnt
afford to publish its directory.
As of Dec. 31, 2005, it had net assets of about $1 million
or one-tenth of its $10M revenues. It admits six months
of revenues is the goal. We are deferring about $2M or half
of unearned dues which is what PRSA did in 1991 when it
had deferred dues of $904,767 on dues of $2.1M. PRSAs
net assets in 1991 (if DD are treated like an asset like
PRSA is now doing) were 47% of income which is a lot better
than the current 10% of income. In 2005, PRSA only logged
$312,000 in DD to cover service owed on its two publications.
There was never any announcement that its DD policy had
changed. While members got short-changed in 2000, the entire
board went to London for four days and travel expenses hit
a record $717,748. Also in 1991, the board and outside CPA
Ernst & Young decided to pull the Statement of
Functional Expenses from the audit, robbing the members
of 324 spending totals (27 categories under 12 headings).
Member outcry brought it back in 1992 but minus nine categories
including expenses of the board, districts and staff travel.
PRSA told strumpette.com that booking dues as cash is perfectly
acceptable, which reminds us of Marie Antoinettes
remark to the French people: Let them eat cake.