the mount vernon report spring 2009 - vol. 9, no. 1

8/8/2019 The Mount Vernon Report Spring 2009 - vol. 9, no. 1

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The Lessons of Family

S p r i n g 2 0 0 9 v o l . 9 n o . 1

I s su e s Af f e c t in g Repu ta t i on Manag emen t and S tra t eg i c Communi ca t i on s

I invite you to join the conversation and share your thoughts and ideas about safeguardingan organizations reputation during these tough times. Join me on my Reputation Excellence

blog www.morrisseyco.com/blog where I will be discussing this very topic.

Keeping Morale and Reputation High in a Low Economy

K E E P IN G M O R AL E C ON TI NU ED O N PA GE 3

Employees are a companys most valuable asset and the guardians of your

corporate reputation. Remember the saying about a satisfied customertelling one person but an angry customer telling ten? The same goes for

your employees. They are your face to the world, and potentially your biggestadvocates. Employees also blog and their comments good and bad canreverberate everywhere.

Evidence suggests that employee morale is directly tied to a companys financialperformance. A study by the Forum for People Performance Management andMeasurement titled, Linking Organizational Characteristics to EmployeeAttitudes and Behavior, found that companies with engaged employees havecustomers who use their products more often, resulting in greater profitability1.

In addition, high morale leads to greater productivity, lower turnover and morehighly qualified job candidates. Watson Wyatt Worldwide, a human capitalconsulting firm, conducted research of 1,500 companies HR practices andfound that superior human capital practices are a leading indicator of financialperformance. One such example is Taco Bell. In a Harvard Business Review

article over a decade ago, James L. Heskett, UPS Foundation Professor o

Business Logistics at Harvards graduate school of business administrationfound that 20 percent of Taco Bell restaurant branches with the lowest turnoverate enjoyed double the sales and a 55 percent improvement of profit over thosstores with the highest turnover rate2.

So how does a company keep employees engaged and boost morale? In normal economy, its simple recognize and appreciate the good work they doOffer incentives, make sure theyre the first to know about new developmentsand encourage a spirit of teamwork.

But in todays climate, companies need to go further. Everyone from recentlyhired college grads to senior management is concerned about job securityClearly an environment where employees are fearful of unemploymentmourning pink-slipped coworkers and taking on extra work to compensate folaid-off colleagues is neither a happy nor a productive one.

Celebrating10

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My father, a child of the Great Depression, competed in a family of10 kids. I rumbled and reveled in a family of eight plunk in themiddle with an older and younger brother and five sisters to rely

on. Big families make a tight clan. We occasionally fought among ourselvesas a rite of passage, but also depended on one another when the going got

tough.

There is power in numbers and a family can be a perfect unit ofdetermination to overcome just about any obstacle. History records the great

triumphs over adversity in wars and economic struggles by families who kept

their honor and dignity as a shield against any foe.

The family dynamic has much to teach us about interpersonal relationshipson all levels, including in a corporation or organization. The business books

are full of companies that engender this family spirit IBM, Apple, Ford

Motor Company, Coors and Southwest Airlines come to mind. Its nocoincidence that several of these companies actually started as family

businesses or with strong paternalistic leaders.

So, the first lesson of success in adversity is to stick together. Whether you are

a team of two or a giant global company with tens of thousands of employees,taking care of one another in good and bad times is imperative. All must

consider operating as a team (or teams of teams when the company is large andcomplex), with a well-chosen leader. Some of the challenges might need

physical strength to overcome while others need moral and intestinal fortitude.So each family member or in a business setting, team member - can play a

role in different or evolving circumstances. To harness the power of your

individual employees, allow them room to grow and offer opportunities to takeon more responsibility. If you are an employee, consider stepping up to the

plate and offering your services and expertise. It is during times of adversitythat individuals and hence corporations and organizations, can rise to the

challenge and differentiate themselves from the competition.

Another lesson from the family: communication is key. Talk and symbolic

acts are what glue us together as humans. I recall the worst fights in ourfamily stemmed from small misunderstandings that percolated into full blown

riots when people did not understand what the other person meant by whatthey said. My mother needed the tact of a diplomat to unravel the origins of

some arguments and come to a good settlement. The lesson here is thatinterpretation of what is said and what goes unsaid can vary from person toperson. To avoid misunderstandings, regular and consistent communication

needs to be planned. Consider the content as well as the mostappropriate method of delivery. People are driven by both logic and emotion,

so include both in the message.

Today we have so little face time with one another that it can be tricky

guessing just what a person means in the their e-mails, text messages, tweetsor electronic postings. Sometimes it is better to walk down the hall and have

a face-to-face meeting than to take the lazy route of a distant exchange. Weare social animals and we like to be stroked emotionally.

The family helps us to appreciate what we have, even in the face of adversity

each other. This issue of the Mount Vernon Report is devoted tocommunication in the face of adversity, including why it is better to be surethat your first line of defense and best offensive line are your employees. They

are right at the customer edge. Armed with the right messages, they can act

as an army of emissaries and evangelists. They can become a family. Read on.

President & CEOMorrissey & Company


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Every company is trying to do more with less. From law firms to

construction companies, doctors to nonprofits, cutting back defines

2009. But scaling back on communication doesnt have to mean

silence. In fact, wise companies are learning that this is the time to enhance

communications and brand loyalty, and theyre using alternative venues and

down-to-earth messages with impressive results.

Massachusetts-based Dunkin Donuts, for example, is emphasizing a positive

message and using cost-effective tools to enhance its communications.

The companys You Kin Do It campaign centers around

encouragement and hope. As Brand Marketing Officer,

Frances Allen said, the campaign reinforces that

Dunkin Donuts will continue to fuel their

[hard-working Americans] busy day and provide a

bit of happiness without blowing the lid off

their budget.

In addition to advertising and traditional

public relations, the company is

supporting its message through social

media a low-cost channel thats

been highly effective. The company

boasts nearly half a million fans on

Facebook, over 9,000 followers on

Twitter and its own YouTube channel.

Not only do these services enable the

communications team to directly engage

consumers and receive real-time feedback,

most dont require massive project budgets

to reach customers directly.

In January 2009, Dunkin Donuts held a two-day Facebook

event to engage and inform customers about its new health-conscious

DDSMART menu. The campaign gave Facebook users or, in web-speak,

fans and friends access to culinary department head Stan Frankenthaler

and company brand managers. The cost of the Facebook campaign: Stans time.

The reward: a unique opportunity for loyal customers to interact directly with

the company in a meaningful way.

As an added benefit, Facebook enables Dunkin Donuts enthusiasts to connect

virtually with one another. The company understands that employing social

media does not mean controlling the message. Rather, DunkinDonuts not only

expects but also responds to consumer conversations. Most of the feedback on

Facebook is positive comments like open a store in my neighborhood and

your products are delicious abound but negative comments can devastate if

handled improperly.

When the company decided to discontinue its Dunkaccino beverage offering

customers took a virtual stand. Discussion threads and status update

protesting the move united customers in a common cause. For a less socia

media-savvy company, this type of backlash could quickly have become a seriou

issue. Dunkin Donuts, however, took charge of the situation and eventuall

brought back the Dunkaccino. Once-unhappy customers became stronger brand

ambassadors, and their loyalty to both the Dunkaccino and Dunkin Donuts a

a company is palpable.

Recognizing the opportunity not only to engage existing customer

but also to utilize social media to connect with new

customers has helped create and solidify brand allegiance

For the third straight year, Dunkin Donuts has ranked

first in the Brand Keys Customer Loyalty Engagemen

Index. In our own Massachusetts Corporate

Reputation Survey, Dunkin Donuts ranked in

the top ten of the Commonwealths leading

public and private organizations for the past two

years.

Dunkin Donuts strategy of enhancing

communications via cost-effective means i

having a tangible impact on its reputation

When other companies falter during

difficult economic times, the lead Dunkin

Donuts gains now may help the companys

resiliency for years to come. And, as Dunkin

Donuts reminds us, even during tough times its

important to stay optimistic and make the most o

each communications opportunity. Take a deep breath

a sip of decaf and remember: We Kin Do It!

~ Sarah Gerro

pg. 2

Lessons From One Local CompanyDUNKI N DONUTS BREW S CUSTOM ER L OYALTY W I TH OPTI M I STI C , BUDGET- F RI ENDLY COM M UNI CATI ONS

If I was down to my lastdollar, Id spend it on

public relations.~ Bill Gates, chairman of Microsoft


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It is more important than ever to keep employees engaged

and made to feel like they are the companys most valuableasset (which, of course, they are). Some companies are

taking any steps necessary to avoid layoffs, such as movingoffice space or implementing salary cuts. While the

long-term financial success of avoiding layoffs is debatable,these tactics send the message that the company values itsemployees well-being.

Paul Levy, President and CEO of Beth Israel Deaconess

Medical Center in Boston, recently offered an interestingproposition to the entire staff: would they forego raises and

benefits in order to prevent layoffs? The answer was a

resounding yes. The hospitals employees would rather seefinancial cutbacks than allow their colleagues and

perhaps themselves face the chopping block. Beth Israelis hardly alone. FedEx, Motorola and UPS have all

announced some form of cutback to save jobs, and experts

predict this is a trend that will continue to gain ground.

Beyond asking employees to make financial sacrifices, thereare many things companies should be doing to keep morale

high and maintaining, or better yet, enhancing their

reputations. Here are just a few examples:

Keep the lines of communication open. If thefinancial outlook is uncertain, tell your employees.

Help them understand where the company stands andwhy things may change.

Solicit employee input. There is no better way to

prove you value someone than by asking for theirthoughts.

Say what you mean and mean what you say.Continue to build your reservoir of trust and goodwill

with employees by being honest and following through

on promises. Know your employees. Say hello, ask about their

families, their hobbies, etc. Show them they are morethan simply cogs in a machine they are people first,

workers second.

Remember, your corporate reputation is a reflection of

your internal culture. The products and services yourcompany sells are just that products and services. It is

the people within the organization that embody yourcompanys core values. Treat them right and they will only

boost your reputation. ~ April Wildermuth

1 Marketing Innovators, The Effects of Employee Satisfaction on CompanyFinancial Performance, pg. 2

2 Marketing Innovators, The Effects of Employee Satisfaction on CompanyFinancial Performance, pg. 3

Ideas You Can UseOne of the key aspects of

protecting your reputation is

adapting to change. As the

Dunkin Donuts case shows,

rather than do away with

communication efforts,

organizations can and should

adapt their practices. Here

are some ideas for cost-effe

communications and reputat

management strategies:

Think Digital.

Social media tools such as b

web content, and Twitter can

cost-effective ways to reach

audience segments. Be prep

to relinquish control and pro

transparency.

Target Existing Customers.

Seek to strengthen relations

with this key audience with

frequent communication.

Provide incentives such as

special offers and updates.

Encourage Employees.

Keep employees updated aninvolved in cutting costs and

reinforcing brand messages.

When they feel valued,

employees can be your best

ambassadors, and their word

of-mouth can create a

groundswell of support and

loyalty

Communicate.

According to Muhtar Kent,

president & CEO of Coca-CoOne lesson Ive taken away

is that you must continue to

communicate with your

customers (during a tough

economy). By communicati

you maintain your brand

position, your reputation and

the confidence of your

stakeholders.

Potential for Growth: The Individual KindS M A L L G E S T U R E S C A N H A V E B I G R E W A R D S

Perhaps the current state of the economy and its

fallout may actually provide us with an opportunity

to reassess priorities and focus on the other attributes

of success and happiness. Instead of reaching for

your wallet today, reach out to a colleague, friend or

loved one and show them that you care. While we

cant always choose the hand were dealt, we can

choose the type of impact we want to have on those

around us. Here are some ideas for making

improvements in 2009:

1. Give ThanksIn most cases, you got where you are today with thehelp of someone else. A mentor, parent, teacher,

friend make the effort, its two simple words.

Your employees look up to you tell them how

much you appreciate their efforts.

2. Write LettersWere living in a world where an email has replaced

a handwritten note and a Facebook status or Twitter

post becomes our go-to method of communication.

Pick up your pens and bring out the paper.

3. Be ResilientDont shy away from challenges or disappointments

none of us are infallible in this department.

Overcome them.

4. Be HumbleAccept your strengths and weaknesses be guided

by your skills and humbled by your limitations.

5. Be ProudPrint out emails that make you feel proud. Compile

these notes in a scrapbook or simply tuck them into

a folder to read on a rainy day.

6. Continue GrowingNever stop learning or give up on yourself everyperson brings something unique to the world.

7. Have PassionBill Gates didnt make his fortune being in love

with money; it was being in love with computers and

the benefit they offer.

8. Take RisksStep outside of your comfort zone you may

surprise yourself. ~Noelle Brussard

K E E P IN G M O R AL E C ON TI NU ED F RO M PA GE 1

pg. 3


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The Mount Vernon Report is published and copyrighted 2009 by Morrissey & Company, an independent Reputation Management and Public Relations firm headquartered at 121 Mount Vernon Street, Boston, MA 02108. Permission to copy anddistribute is granted, provided that full attribution is given to Morrissey & Company. Further commentary or response to any of the topics discussed in this issue is welcome and should be directed to 617-523-4141 or via e-mail to [email protected].

Printed on recycled paper. In an effort to conserve natural resources we have altered the format of the Mount Vernon Report to omit the use of an envelope.

Please visit us on the World Wide Web at: http://www.mountvernonreport.com RepEx Blog: www.morrisseyco.com/blog

Morrissey & Company121 Mount Vernon StreetBoston, MA 02108

Reputation AdvisorT

he past several months have been difficult, to say the least.

Cutbacks, layoffs and the stress of the unknown can take its toll

on even the most hardened and experienced executive. Thesetimes test our resolve and our reputations.

It may be hard to see the silver lining, but with a little perspective, we can

do just that.

In his inspirational book, Better: A Surgeons Notes on Performance,

author and surgeon Atul Gawande explores how doctors strive to close thegap between best intentions and best performance in the face of obstacles

that sometimes seem insurmountable.His stories take us to battlefield

surgical tents in Iraq, labor anddelivery rooms in Boston, a poliooutbreak in India, and beyond.

We find that, in the face of challenge

and adversity, doctors are forced to do

better, and find solutions to savelives when theyre already doing the

best they can. In one example,Gawande cites the World Health

Organizations (WHO) seemingly

impossible task of fighting polio in the developing world. In India, armedwith only 250 doctors for a nation of a billion, the WHOs teams regularly

face overwhelming odds including illiteracy, poor roads and insufficient

staff while providing polio vaccines to citizens. Still, in one mop up, asthey are called, 80 percent of the children in one area were givenvaccinations 26,000 children in all in only four days. Within weeks,

polio had disappeared from that section of the country.

The message to the boardroom from the operating room is that every

situation is what you make of it, and if you aim to overcome obstacles, yourresults can and will be better. The winners will be those who choose to

make the most of the current situation and innovate, develop new ways of

doing things and create better products. Those who communicate about

the challenges they are facing, instead of keeping quiet or trying to spin the

situation, will gain their stakeholders respect for being honest and open.

In Better, Gawande also discusses hospital infections and how the large

majority can be avoided by the simple act of hand washing. But despitedocumented practices put in place at a Pittsburgh hospital, infection rates

still soared because staff didnt follow procedure.

Rather than give up, hospital administration led small group discussions

with health care workers from all levels everyone from doctors to janitors- asking, How would you solve this infection problem? Ideas poured in,

were implemented and this time, actu-ally worked. Why? Because the people

who needed to follow the rulesdeveloped them, and this gave them avested interest in the success of the

program. The idea was so successfulthe approach was implemented at ten

more hospitals.

The message? Be creative in solving

problems. Sometimes the solution isntto throw more money at a problem

(especially when there is no budget)

but to approach it in an entirely new way. Listen to employees andcustomers. By soliciting input, valuing it and making changes based on it,

you are making your key stakeholders invested in the success of your

organization.

Bottom line: challenges can be opportunities that, if approached with the

right attitude and a little ingenuity, can be overcome. Meeting them

head-on shows optimism and resiliency that reflects well on a company andits leaders. In spite of things being less than ideal, or maybe because

theyre less than ideal, this is a time to build and reinforce who yourcompany is, staying true to your brand promise. Doing better now will put

you in a prime position for success when the skies clear.

~Lauren DiGeronimo

pg. 4

"Arriving at meaningful solutions isan inevitably slow and difficult process.

Nonetheless,...better is possible.It does not take genius.

It takes diligence. It takes moral clarity.It takes ingenuity.

And above all, it takes a willingness to try."~ Atul Gawande, Better

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