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October 6, 2010

The Role of PR in "Change-Management"

By Ronn Torossian

Now that corporate crisis season is over for most companies, we're witnessing the onset of a new era: change management, or the changes that take place post-crisis. Is it possible that the most crisis-struck companies are the ones still neglecting basic PR practices? Apparently, they did not learn their lesson, for following the public opinion of BP and HP clearly shows that PR is still lacking.

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Now that corporate crisis season is over for most companies, we're witnessing the onset of a new era: change management, or the changes that take place post-crisis. Is it possible that the most crisis-struck companies are the ones still neglecting basic PR practices? Apparently, they did not learn their lesson, for following the public opinion of BP and HP clearly shows that PR is still lacking.

Last week, HP shares plummeted roughly 3% with the announcement of their new CEO. The last time this kind of drop hit the company was when HP revealed the internal investigation of its CEO Mike Hurd and his relationship with a marketing consultant allegedly involved in business misconduct. Replacing the wildly successful executive, HP made a decision to hire SAP's former CEO, Leo Apotheker from Germany. What the company paid less attention to while fishing for a big name to fill big shoes, is what the move will signal to the public. And, boy, did it make an impact! A 3% drop in shares is substantial.

What communicated message did the public perceive that drove this fall?

First, the ambiguous selection of a software guy to take the helm of a hardware giant; Being an athlete doesn't imply you'll be good in every sport.

Second, what the public did pick up on was the new leader's reputation for putting the company first before its human resources. Practically speaking, he is known to make those necessary "hard decisions," or layoffs, fairly easily. This ignited enormous internal tension.

In the BP case, a company striving to leave its horrific summer behind, one of the first significant decisions taken by new CEO Bob Dudley is to create a "safety' division. It was a nice thought, but reckless choice of who should run it. Mark Bly will now run the much-focused safety unit, after leading the team that investigated the summer's oil spill in the Mexico gulf. His questionable investigation that pointed out only one of eight malfunctions that BP believes it may now stand accountable for. So, in sum, there was an internal appointment of a candidate that represents a highly scrutinized company externally.

Management PR, in particular, takes unanticipated implications into account when communicating any sort of change. Both the BP and HP management reshuffling may be valid and justified, but both companies are still under the public's magnifying lens for past mishaps.

There are several crucial PR practices to remember:

1. Balance: A company is responsible to communicate both to its external public as well as to its internal "stakeholders." The employees are the first to notice changes from within, just like they're the first to respond to it or share dismay. Communicate to your internal public in a way that makes them feel their success and that the company's general direction is in mind. This should stand in balance with the external communications, so no employee needs to learn of a company's new path by reading a daily newspaper.

2. Reputation: When change is made take into account that a new reputation emerges. First, the company's ongoing reputation of its brand may shift. Second, the reputation of the person taking the new role will influence perceptions. Third, the reputation of his former job and whatever accomplishments he or she brought to light. The point is that there will be light shed on all these components. If there is something the public should know, then this is a good time to share it. Stick to the truth and communicate clearly while funneling all three reputations into your company's single strong message of how you see the future. 

3. Positivity: A general strong message that I convey to my employees, clients, and colleagues, is the importance of "change management' communicators remaining extra positive. Remember: "change-management' often comes after a crisis. People were hurt and uncertainty rises. Communicating in a positive way is valuable. Conveying strong confidence towards the decision the company made, towards the future the new management will bring, and towards the goals you have set will portray the full picture to the public without a need to fill gaps with guesses and speculations.



Authors Website: http://www.RonnTorossian.com

Authors Bio:

Ronn Torossian founded 5WPR/5W Public Relations, a leading US Public Relations firm, in 2003 and has overseen the company's rapid growth and expansion. Under his supervision, the company has won many awards, including the PR Agency of the year for the American Business Awards, and being honored as Inc. 500 honorees on numerous occasions. The firm has over 100 employees, with offices in New York and Los Angeles.

One of the foremost public relations experts in the U.S., Torossian is known for his aggressive, results-focused orientation, as well as his close working relationships with members of the media, influencers, decision makers, politicians and celebrities. At 5W Public Relations, Torossian's client experience has included PR programs for Coca-Cola, Microsoft, Anheuser-Busch, Barnes & Noble, Cantor Fitzgerald, IHOP, McDonald's, Evian, EDS, VeriSign, XM Radio, Seagram's, The Loews Regency, Bad Boy Worldwide Entertainment, Marriott Hotels, Vail Resorts, Pamela Anderson, Snoop Dogg, the Government of Israel, and others.

A New York Times feature story on Torossian referred to him as "The consummate hard-driving, scrappy NY publicist." CBS National News said "Ronn Torossian knows spin," he was referred to by The New York Post as a "publicity guru," by Fox News as a "high-powered PR CEO," by Tyra Banks as a "crisis management guru," and by CNN as "a leading PR expert." Ronn Torossian is regularly featured in and quoted by the media. His Op-eds are regularly featured in the Huffington Post, O'Dwyer's, PRDaily.com and many other media outlets.

Torossian was named the American Business Awards PR Agency Executive of the year, and is a past semi-finalist for Ernst & Young's Entrepreneur of the Year. A resident of Manhattan, Torossian was named to PR Week's "40 Under 40" List and Advertising Age's "40 Under 40" list, is a regular lecturer at universities and conferences, a member of Young Presidents Organization (YPO), and a board member of numerous non-profit organizations.


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