Will Washington’s Sequestration Sequester Our PR Budgets?

It’s time to add “sequester” to the list of words we could do without. In case you don’t already know, dictionary.com defines it as “to remove or withdraw into solitude or retirement; seclude?” You know, terms like, “fiscal cliff,” “kick the can down the road,” “move the needle,” and my election-year favorite, “47%.” I’m starting to think so.

Maybe it was because the mainstream media already began referring to Wednesday’s Mid-Atlantic snowstorm, which was supposed to “retire” DC for a day, as “Snowquester.” Then again, maybe I’m just wondering what communications wiz chose “sequester” as the clunky, if euphemistic, word describing $85 billion in mandatory government spending cuts that went into March 1.

Whether Uncle Sam calls it sequestration or the “Sh*% Hits the Fan Act,” make no mistake, these cuts, if implemented fully, are predicted to have far-ranging negative consequences. They range from an estimated 1%-1.5% drop in GDP, (resulting in nearly zero annual US economic growth) to reduced satellite coverage and lower resolution (read: accuracy) predicting the weather.

But a recent AdAge article brings up another good point that hits very close to our PR home. Government ad spending is one of the first expenses on the sequestering chopping block. The army, for instance, spent $47 million in the US in advertising in 2011. And government PR is essentially a DC cottage industry, ripe for additional reductions.

Sequestration sucks for PR in other ways too. As a profession that cares deeply about the implied messages of things, draconian communications spending cuts by Washington might send a powerful signal to private industry that they too, can do without in-house or outsourced public relations. The sequester might sequester spirits as much as it does budgets.

It’s what’s known as the proverbial “chilling effect.”

I truly hope this will not be the case. Yet with congressional gridlock at historic highs and approval ratings hovering near an all-time low of 15%, there’s growing fear that the full weight of the spending cuts will take hold across the entire advertising, PR and marketing sectors.

After that, the chilling effect gets downright cold. If government stumbles under its own bloated fiscal weight, you can be sure the private sector will follow as the two are inexorably linked. The fact that the Dow Jones achieved two days of record closes and February’s jobs report (which comes out Friday) is predicted to add a respectable 175,000 jobs might not be enough to offset DC’s disarray.

The irony is that, were such a scenario to unfold, each political party would be working overtime to spin the causes of these problems as the other party’s fault, requiring some fancy communication skills in the process. Our services would again be deemed “needed.” Unlike the sequester, now is not the time for the PR industry to “withdraw into solitude.”

Effective communications is essential in good times and bad. So what can we do as an industry to lobby Washington in reconsidering its actions? I guarantee 100% of Americans are in favor of that (not 47%) with no needle moving or can kicking required.

Associated Press Takes a Closer Look at the Need for Microfinance in the US

About two weeks ago, I wrote a post about the pressing need for microfinance services – particularly microcredit, small loans for very small businesses – here at home in the US, not just in the developing world. In that post I featured OUR MicroLending, a Miami-based microcredit company that has disbursed over 1,050 small loans to over 600 South Florida micro-entrepreneurs, to the tune of around $6.2 million, who were turned away by the big banks after applying for loans. In our current credit crunch, the company is giving these hard-working merchants a way to restock, expand, hire and, by extension, stimulate their local neighborhood economies. OUR MicroLending is also working to expand its operations to the entire state of Florida and, eventually, the rest of the country. Because there is so much unfulfilled need for these types of services here, I was heartened to read an excellent Associated Press article, published last week, about the fine work microfinance organizations are doing in the United States. OUR MicroLending had a starring role in the story, which appeared in the Washington Post and at least 25 newspapers and websites, spreading the message of financial inclusion far and wide. My congratulations go to AP reporter Laura Wides-Muñoz for a great piece. Here’s hoping some struggling entrepreneurs who don’t know about microfinance read it and realize there is hope.

How the Path to Financial Success Has Many Roads and Why Microfinance is Often Overlooked

Imagine a woman who founded a courier company and now has offices and employees in two counties shuttling documents for clients such as architectural and law firms. Envision another woman who turns the love of her native country into a living by selling Colombian souvenirs, crafts, food and clothing. Or dream of a man and his staff who profit from their talents by crafting creative signage and painting custom designs on cars and boats.

These are just three of hundreds of hard-working South Florida entrepreneurs who have wielded maybes and can-dos into realized storefronts and American middle class status. And they’ve done this through a unique financial channel called microlending. While microlending is well known across Latin America and in developing nations, sadly its existence, popularity and prevalence stateside remain in a nascent phase.

Unfortunately, most of the news I read and hear about microfinance in the U.S. involves providing those services abroad when in fact a vast underserved population exists right here. Don’t get me wrong, helping the disenfranchised in places like Sub-Saharan Africa and Asia is a noble thing. But I’m often left wondering why so little of the microfinance conversation involves helping out low-income entrepreneurs right here at home.

Now more than ever, microfinance can be the homegrown vehicle that turns this trend around - especially as the latest jobs report shows the same stubbornly high unemployment, lackluster job creation and consumer penny pinching across the board. The result is that hundreds of thousands of marginal-income families have slipped through the proverbial cracks and our snail-paced economic recovery continues to widen that fissure. Good credit becomes bad credit and access to traditional bank loans dries up.

People can help, and not just by giving donations or crowdfunding, the latest personal investing trend. Many of the recession’s forgotten casualties don’t want handouts; they want opportunities to work themselves out of a financial hole. Kiva Microfunds, a San Francisco-based tiny loan lender, clearly has the right approach. The company connects donors who wish to give money in as little as $25 increments and has lent out $335 million across 62 countries, boasting a 99% repayment rate. Closer to home, Our MicroLending, of Miami, has disbursed over 1,050 loans totaling $6.2 million to over 600 micro-enterprises whose owners use the funds to restock, remodel, expand and hire.

Fortunately there’s other good news as well. Microlending is also increasingly interwoven with the phenomenon of impact investing. Impact investing is the process by which investment takes into account not only direct ROI, but evaluates the social and environmental benefits of doing so. Like mircolending, social impact investing has numerous secondary and tertiary benefits. Blighted neighborhoods on the brink of collapse revitalize, crime rates fall, juvenile delinquency drops and a community or neighborhood has the chance to rebuild. And just this past spring, Morgan Stanley, inspired by its own studies on the matter, announced the launch of its Investing With Impact Platform. J.P. Morgan predicts that, by 2020, there will between $400 billion and $1 trillion invested in ways that have a positive social impact.

So it’s definitely possible to do well by doing good, no matter where funding comes from. A November 2011 report by the University of Pennsylvania’s Wharton School of Business put the number of microfinance institutions in the U.S. at 362. A strong start for sure. But clearly there can (and should) be more. Investing in microfinance for American entrepreneurs and making sure people out there know that this service is available, that self-employment is an option if they’ve lost their jobs, can do a lot to help ease the protracted financial suffering that has left so many of our fellow Americans penniless and without hope.

To dream is priceless. But acting on dreams comes at a price. Mircofinance and social impact investing are paving – and paying – the way forward to turn entrepreneurial dreams into reality. 

Occupy What?

The following article by Vanessa Horwell, Chief Visibility Officer of Thinkink, originally appeared on Marketing Daily on 11/18/11.

If ever there was a group in America that could benefit from a public relations team -- or some PR counsel -- it’s the Wall Street protesters and their increasingly global counterparts. Penn State or the recently released Jack Abramoff? I wouldn’t even bother…

The protesters may number in the tens of thousands, cut across demographic, cultural and socioeconomic lines, and are handy fodder in GOP political debates when the talk of 9-9-9 grows old. But when it comes to effectively disseminating what they stand for, millions of Americans throw up their hands in, well, protest, and draw a blank.

Considering their growing clout, that’s not a good sign.

A CNN/ORC International poll released earlier this month revealed a major disconnect between the protesters’ aims and what people think they stand for. They’re having an identity crisis, you say?

Not at all, they simply don’t have one.

Nearly half of those polled (40%) said they had no idea what the movement stood -- or stands -- for. Another 27% said they had a negative view of the overall cause – even if they were still fuzzy on the specifics. People I know who have taken part in the sit-ins, stand-ins, and protests have become disillusioned with the lack of organization or united message.

As someone who spends her days (and nights) helping companies develop and communicate a united and coherent message, I have to admit that I, too, would have trouble drafting up, say, four or five critical aims the group is trying to accomplish.

I think I know the basics: they are known as the Wall Street protestors or Occupy Wall Street, and spinoff groups or self-identifiers have cropped up across the globe, from Lower Manhattan to Oakland to Miami, to cities in Europe to as far away as Guam – the island, literally, not the expression. Their aim, or rather, their manifesto “is fighting back against the corrosive power of major banks and multinational corporations over the democratic process, and the role of Wall Street in creating an economic collapse that has caused the greatest recession in generations,” according to the group’s website.

But beyond carrying signs saying they represent 99% of the not-so-silent majority, brandishing megaphones, and getting into skirmishes with law enforcement, what exactly are they doing, and what, specifically, has been achieved by the group’s existence?

The truth is, not too much. But asking the above questions is exactly the type of maturing the Occupy Wall Street movement needs if it wants to be taken seriously in the long run. There are too many overnight successes, start-ups and movements that are forgotten as quickly as they rose to (limited) fame.

It’s time for Occupy Wall Street to embrace a modicum of corporate structure and communications strategy, and better disseminate what it hopes to achieve. Ranking second on a Google search is just not enough. If it wants to fight corporate America, it has to put itself in corporate America’s shoes – if only for a few moments, or hours.

Granted, in terms of civil (mostly) non-violence and grassroots organizations, the “occupiers” are babies, and still have a long way to go. For comparison, it’s easy to associate the civil rights movement with the decade of the Sixties, but its stirrings and undercurrents had been set in motion decades and generations before. Even with that slow burn, over time, civil rights moved from restaurant table sit-ins and hard-fought bus seats, to the top of the national agenda. Only then, finally, did meaningful change sweep across the country and flesh out its most discriminatory backwaters.

Whether the Wall Street protestors recognize it or not, the success, durability, and health of our citizen’s democracy has long been able to absorb these types of splinter groups and incorporate their values into the middle class, and through the legislative pen and ballot box, effect meaningful change. The road to that change may begin with street signs and protests, but it continues with a smart, cohesive, well-publicized public relations-honed message.

Here’s hoping that in our instant-gratification society, the Wall Street protesters grow up fast. I’m sure they have a lot to say and can definitely benefit by taking their message – whenever they work out what it is -- in multiple directions. Their actions and their words may have a tremendous impact on our future.

So I’m ready to listen, and I think so is the rest of that 99%. Still. For now.

The following article by Vanessa Horwell, Chief Visibility Officer of Thinkink, originally appeared on Marketing Daily on 11/18/11.

Next Generation’s New Pathways – And Potential Dead Ends, All Just A Click Away

A recent post on the Future of Media (my favourite new blog) predicts that the next big business boom is likely to be in occupational therapy, (OT) and intimacy counselors. Millennials, the generation born post-1985, will increasingly require their services, having become too plugged in to remember that a “friend request” isn’t always a mouse-click away.

Sadly, I don't think this a prediction, it's turning out to be true - and growing. A report, “Cyber Communication on Today’s Youth,” by the American Counseling Association was already ringing alarm bells in 2008. Reading the document three years on, it's fascinating to note how much the digital landscape has changed in such a short period. While Myspace gets at least minor billing, Facebook, which was already 4-years-old at the time, does not receive a single reference.

How the mighty have fallen. Or, more to the point, how the mighty squandered a golden opportunity. But I digress...

If that much can change in three years, it’s rather hard to envision the next 1,100 days. While I'm praying for an economic rebound, I would hate to think that these new, or "reinvigorated" professions would be spurred by society's digital addiction. When President Obama talked of job creation, it's unlikely he was referring to these.

Taking advantage of our "click addiction"

A recent article in the New York Times looks at Americans' growing reliance on their shrinks - online. Can't make it to your weekly couch-session in person? Not a problem. Just fire up Skype and connect with your therapist anywhere. Having an anxiety attack, possibly caused by having to do an "in-person" interview? Get some webcam time with your therapist for an online RX.

And the irony continues..

Driving to the beach this morning, I was reminded of this growing "click-to-counsel" profession: A huge billboard touting a local hospital's ER room "click and book your ER visit online."

The scenario could go something like this..

Have an accident with the automatic carving knife. Put sorn-off finger(s) on ice. Log on to hospital's ER booking system and reserve your place in the ER queue. Wait at home hoping you don't lose conciousness in the meantime, or take a leisurely stroll for a few hours (with ice pack of course), stopping at a drive-thru before your appointed time slot.

“Turn on, tune in,” may have been part of ‘60s countercultural icon Timothy Leary’s well-known phrases. I doubt he would have imagined the phrase’s 21st century impact on the Children of the Sixties' children.

Of course, "click-to-counsel" hadn't been invented then. I wonder what he would have made of that?

We have seen annus horribilis ad finem. Now what?

Originally published in Mobile Markter, October 5 2009

A couple of weeks ago I had a great email exchange with someone I met online. Not that kind of online exchange, but in response to one of my opinion pieces.

Ten months later, Dave (who is also a contributor to Mobile Marketer) and I still have not met in person, but we have developed a lovely rapport – exchanging ideas on everything from how to fix the world, to writing a book on self-sufficiency to what is wrong with our industry (he is a marketer too). A lot, we have agreed.

Let us start with resounding cop-out of the past annus horribilis – the recession.

It seems that anyone and everyone is, has or was using this as an excuse for their company's ills – poor sales, fewer customers, loss of clarity. Take your pick.

To be sure, as an agency owner I have been affected too, but the truth of the matter is that marketing has imploded at the very time when “disruptive technology,” “forced innovation” and “reinvention” have become the catchphrases of the day.

Isn’t this cyclical? We grow, we learn, we stumble, we rise, we fail and then we start over, but with new visions and ideas about doing what we were doing in a far better and stronger way than before.

Creative destruction, right?

Click here to finish reading the entire post in Mobile Marketer

Say NO To More Recession Talk!

(The original article appeared in MediaPost on July 15, 2009)

Argh! Just when we thought things were looking up, the Department of Labor spoils it with the latest unemployment figures. I'm sure many companies upped their cutbacks again, rather than upping their PR budgets this past week.

So, really, this isn't a recession anymore -- it's a global gut-check. And there aren't any Lucky Dip bags filled with taxpayer money waiting for us at the end of the recession rainbow. Businesses everywhere have been paralyzed over which course of action to take. Be bold, be innovators? Or bring out the hatchet to those bloated costs and inefficient operations driven by years of faux-plenty? It's been a wake-up call for all.

Inevitably, in such a challenging (and changing) environment, many businesses have trended toward batten-the-hatches, slash-the-budget tactics. But in these actions, they may have failed to see that strategic positioning and public relations could actually help their companies gain market share, increase sales, and experience organic growth.

You may think I'm biased, but when we look at recent history, we see such opportunities have indeed arisen out of uncertainty.

Click here to read the whole article, Say No To More Recession Talk

8 Reasons Why Marketers Should Ramp Up Their Visibility Strategy

(My original article appeared in Mobile Marketer on August 18, 2009)

Are we in the throes of a recession hangover yet? Yes and no, depending on who you listen to.

Recession or not, however, businesses and consumers remain wary and cautious about spending. The road to recovery is likely to be slower than we thought. But as I wrote in my column in Mobile Marketer today, this is precisely the time when businesses and marketers should be ramping up their visibility and getting back on their customers radars.

Why now?

Because history has proved time and again that the bold survive. Knee-deep in the discount dustbins is not a strategic position, nor is being invisible to your customers. Companies that survive and grow are marketing from a position of strength, not a defensive crouch.

A conservative approach, prudent as it may seem after almost a year of negative GDP, is actually counterproductive.

It is shortsighted to view this recession, or any recession, as anything less than an opportunity for future growth. It is impossible to engage with your audience if your brand has gone into hiding, waiting for the markets to rebound.

And it is very hard to make a comeback without being visible or without customers.

Click here to read the article in Mobile Marketer 8 reasons why marketers should ramp up their visibility strategy.