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July 15, 2010

Some feedback from Write/Editor, Greg Clock regarding the Summer/Fall Cushman Report:

"Regarding the BP disaster that you mentioned in your Summer/Fall issue: despite its considerable financial strength prior to April 20 (due in part to its global scope and its extraordinary cost-cutting discipline), clearly BP was unprepared on a number of fronts.

"What’s an IR guy or gal gonna do when they’ve got one of this magnitude? Say it’s a 'big ocean' and that 97 percent of the oil on the water is a 'light sheen' (try a light sheen of oil in your kitchen sink or bathtub, or even your yard) and that a lot of the rest has the consistency of chocolate pudding or, even worse, bad-smelling peanut butter? Say that we’re financially strong? And yes, we’re going to the White House and yes, we’ve just been and we’ve agreed to fork over $20 billion for starters?

"BP lost me on the Deepwater Horizon 'Incident' on April 29, some nine days into it, when the official estimate increased fivefold from 1,000 barrels a day to 5,000 barrels a day. Ah, were it a mere 5,000 barrels a day. We didn’t know then what we know now. The public utterances fell short, particularly given the environmental and economic havoc created along the Gulf Coast, but at least they tried and didn’t run. Winning 'hearts and minds' has been used quite often in my lifetime, and this one sounded like it wouldn’t hold up. The reference to the defense of Gulf Coast 'beaches' by a British C.E.O. brought to mind Churchill and was somewhat entertaining in this drawn-out crisis. The Apollo 13 analogy regarding the technology being used to try and control the oil flow was somewhat offensive, given that no one died on Apollo 13, while 11 died on Deepwater Horizon. Perhaps Challenger or Columbia should have been considered. 'We’ll make this right' in the newspaper ads has an honorable feel about it, although I’m not sure what they mean by 'right.' Do they mean no one’s going home until every 'last drop' is removed from the beaches and marshes? 'While we may not always be perfect' is absurd writing, particularly when you’re paying thousands of dollars for a newspaper ad, and should be scrapped. No organization’s performance is ever close to perfect, particularly not this one’s at this watershed moment in the energy business.

"As for 'I’d like my life back' and 'the small people', we’ll chalk that up to imperfect, highly compensated senior executives who say things in front of cameras weeks into a crisis they later wish they hadn’t. If I were Tony Hayward after Washington, I would have gone on a one-day sailing trip, too.

"The BP guys who have appeared on camera over the past 90 days have not been perfect, but they have displayed a certain amount of honor and endurance, like a boxer who’s still standing in the 15th round, and get death threats and online vilification and Letterman/Leno jokes when they go back to their rooms. Hence, many senior executives who have been following this story will likely never want a public face or ever directly communicate with their various constituencies.

"But as long as the global energy giant has been dealing with media from all over the world, why exclude Anderson Cooper of CNN, who’s been down in Louisiana almost as long as Anne Thompson of NBC?

The oil industry divisions created by this disaster are enormous and will be played out in courtrooms for years to come. In addition to economic hardship in Louisiana, Mississippi, Alabama and Florida, good-paying jobs for lots of hard-working folks in Texas will be cut because business will go elsewhere, in part because of the Obama moratorium. The disaster has also been a nice gift for anti-oil proponents who drive and jet to their fund-raising events. It should have been a political gift to an anti-oil President, but it hasn’t worked out that way.

"Obviously, some hard questions weren’t asked prior to April 20, which should be a major-league lesson for all of your subscribers, whether they like it or not. That is indeed one of the reasons they get a decent paycheck: to ask an occasional hard question of someone of higher or lower rank who really doesn’t want to be asked and even tells them to butt out.

"For the record, I was with BP for two weeks after they acquired Amoco in 1999 and still have a life insurance policy with them, which I’ve been told might now be at risk. We dropped the BP health care program earlier this year after they ramped it up from $216 a month to $934 a month (not a typo) in what was described as an 'extensive' change. Presumably the business decision (not sure if it was a Houston or a London decision) was very effective in driving out older policyholders. Maybe BP’s savings in health insurance will go to collect a few extra gallons of oil.

"The Deepwater Horizon and the 2005 BP explosion at the Texas City refinery that killed 15 and injured at least 170 have given me a bit of BP fatigue. But stay tuned. This story is far from over and has management lessons for anyone who’s interested."

Greg Clock, writer/editor, gregclock@hotmail.com

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July 15, 2010

Some feedback from Dick Badler regarding the Summer/Fall Cushman Report:

"I have a few comments on your arguments.

"First, in my view, there's an issue regarding Investor Relations that I don't think you addressed. It’s the technical nature of financial relations... as in, for example, can you explain derivatives or not? I read Michael Lewis' new book, The Big Short, and I still can't. Oh, I got closer, but don't ask me to do it to a securities analyst. And I would bet that most/a very high percentage of people in CCO roles would have the same problem. Even with an MBA. Unless they're seasoned finance people. Which, to me, means that direct responsibility by comms people would be a hard job. But, and this is a big but, oversight would be doable. If, and this is also big, the comms people can manage/lead.

"Second, there seems to have been, especially in financial firms, somewhat of a trend to put ex-finance people in comms jobs, with miserable outcomes. The best example to me is Goldman-Sachs. Correct me if I’m wrong, but I believe the guy in charge, and I think he's still there, was an investment banker. And, from all reports, he's arrogant, evasive - a typical Goldman person. And he was vilified in the NY media. Which is a first, as far as I remember. So, the reverse to comms people doing IR, IR/finance people doing comms, can also end badly.

"My final point re the market today is the impact of baby boomers moving out of the market. And I put myself in that category. The key point is that they’re moving out at an age which effectively ends their career. This is huge. One only hopes that people have made plans or at least have some idea of what they'd like to do next, because that's what they're faced with - for better or worse.

"And I don't really think anyone can be faulted. It's sort of the way it is; the boomer bubble climbs up the pyramid, the pyramid gets smaller, people fall off, and someone younger usually climbs up to take their place. And, when you have such a large population group, a lot of people will fall off, almost at the same time. I can't tell you how many people I know who had great positions, not just in comms, 3, 4, 5 years ago, and are now faced with coming to terms with their new situation and the prospect of reinventing themselves.

"Or doing what they never had time to do... There's always a silver lining, somewhere."

[Judy]

"Here are a few more thoughts in response to your first point. I write that the work in IR is becoming more difficult and tactical--taking up more time. That is the expertise that encompasses the issue of how to explain/interpret the market and such things as derivatives and SEC rulings (which occupy session after session at NIRI conferences.) That is the challenge where staffs are too small to master the work while leaving time to develop the broader role.

 

"I do not see any one corporate function taking on the whole valuation story. How to find a way to speak with a consistent voice while I can name 10 corporate departments that logically have a “piece” of the puzzle is the conundrum. The story is becoming too big for any one department to control."

"One further thought on the valuation issue. People. Chemistry. In my experience, ultimately the CEO will assign someone to have overall responsibility for it... which translates to leading the amorphous area. And he/she will pick someone who has a modicum of knowledge… who has, at least, an understanding of the context. But, most important, that person has the trust of the CEO. That's critical. And it cuts way beyond what might appear as responsibility on an org chart or in a job description. And the CEO usually doesn't really care whether that person comes from Comms or Finance or Marketing or IR or Strategy. As long as the person can get the job done... and work with everyone in the organization to make that happen."

About Dick Badler: After some 35+ years in Corporate Communications, including ten years "at the table," most recently as EVP of Corporate Communications at Western Union and SVP of Corporate Communications at Unisys, Dick Badler has moved on to a world of consulting, writing and commenting on the passing scene. He can be reached at rdbadler@aol.com.

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July 14, 2010 [Anonymous Contributor]

Additional feedback regarding the Summer/Fall Cushman Report.

Great piece, Judy! What a great call-to-action for companies and their leadership. Having been responsible for both IR & CorpComm for a global corporation where a Chief Communications Officer aligned all aspects of the company’s valuation/reputation, I’ve seen first-hand the benefits of a coordinated approach. Hopefully, I’ll land a new role in a similar organization or in one where I can bring that perspective to the table. I’m really looking forward to reading Part 2 of this piece.

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July 14, 2010

Some feedback regarding the Summer/Fall Cushman Report from Richard Daskin with RSD Advisors.

"Interesting, Investor Relations used to be considered one career option for an analyst; based on what you have written (which I have no doubt is correct) the IR function is evolving and requires a much broader set of skills. As I was reading at the top I thought of BP and below there it was. There is going to be a whole new management team there within 24 months, after the emergency period is over and the well is capped. Hayward and the Board Chairman will be removed prior to the heavy litigation commencing as part of an overall strategic and PR reset. I will be shocked if they are still there after the next 2 years. Don’t be surprised if the stock bounces back about 80% of the underperformance though. The damages will be high but will be paid out over a long period of time so the DPV of the payments won’t be as bad as the market is discounting. The vultures are already circling but the British government won’t allow a takeover."

Richard Daskin, President, CIO,
RSD Advisors, a Registered Investment Advisory Firm
Rsd57@optonline.net

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July 12, 2010 [Anonymous Contributor]

Feedback regarding the Summer/Fall Cushman Report.

“This is very, very good. Smart ideas, well-written and comprehensive.”

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September 8, 2009 [Anonymous Contributor]

More feedback regarding the September/October Cushman Report.

"As a bit of feedback…I was struck by how dead on your "Dark Side of Success" comments are. I can't count the number of times I've tried to help colleagues identify candidates for positions they were looking to fill, or made a phone call to a colleague on behalf of someone who was pursuing an opportunity, or be involved in a search as a candidate…and find myself amazed that the organization didn't know what it was really looking for, much less be able to define success. It's like throwing rocks at Jell-O. Nothing comes back. And the process truly does become the blind leading the blind. It's a wonder that there aren't more mismatches than there are (or that we find out about)."

[JUDY]

"One of the reasons why the newly hired are not “fired” or eased out or in other subtle ways told to move on, is that since there are no good standards for measuring success, there are no good standards for measuring failure. If you don’t know what you are supposed to set as benchmarks for success, how do you judge if your VP is not doing the job (that has been poorly defined.) Interestingly, if a really top notch performer fits the culture and has his/hew own sense of direction, the leadership generally “gets” how effective the VP is. It is where less than stellar performance—but not downright incompetence—occurs that the leadership team frequently accepts that performance level as good or better. This leads to the question, how does a VP Communications rise to that level given the lack of performance standards or benchmarks? There is much more to be written on the topic."

"I think you're correct. Cultural fit is a requirement for success. But the door can swing both ways...multiplying competency or masking average performance."

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September 1, 2009 [Anonymous Contributor]

Feedback regarding the September/October Cushman Report.

“Thank you so much for your newsletter! I had to write back and let you know that the article on THE NEW ECONOMIC REALITY ABOUT CAREER DECISIONS is an extraordinary case study and very valuable  putting career life today in perspective.  I find myself in somewhat similar circumstances in that a broadened my skill sets my consulting then went back to corporate thinking I would make my way back to a senior agency position. While I have had a few interviews, I realize they cannot offer me the financial support I need to get back on my feet.  hank you again for a very insightful newsletter.”

“Judy: As always, an excellent Cushman Report.”

“This was interesting reading.”

“While the Cushman Report always provides great insights on job markets and career management, this issue hits it out of the park. The lead piece on "what's under the tent" is a cautionary tale that should be required reading for all mid- to senior-level pros. And, your analysis of "Mary's" career choices is a painfully valuable lesson about the virtues of 360-degree decision making.”

“I read with interest your latest report about the potential pitfalls of job search. I am familiar with research that talks about the changing (changed) role of marketing in the firm... how marketing has been shoved down in the hierarchy to the line of business level, making the development of any coherent brand or corporate communications strategy virtually impossible. I'm also aware that business in general is going through tremendous transition as a result of sustainability. Organizational missions and images are going through significant change -- some members of the management team are ready to shift, others are not. It sounds to me as if what some of these organizations need is a transitional role to help clarify issues that may be impacting their marketing and communications performance, and leading a change process… Thank you for your insights.”

“Thanks for the newsletter. That was indeed a pertinent example of the darkside of success. I wish that person well.”

“Thanks Judy. I always enjoy your updates immensely. Hope all is going great for you and your team!”

“What a great and thoughtful report and letter you sent out. As always, you touch on some of the decisions people don't think about as they go about career changes. Thank you for sharing the story about the new economic realities and congratulations for "going global." Well done and well-deserved.”

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June 23, 2008 [Anonymous Contributors]

Additional feedback regarding the May/June Cushman Report.

“I enjoyed the newsletter (as always). I particularly found the comment from the senior IR pro regarding the impact from hedge funds.”

“I just wanted to say I think this is about the best discussion of C-level resume presentations that I have read. I work in the consumer products industry and have hired quite a few executives. As I read your article I can recall specific examples of how resumes were presented in both a very effective and sometimes not so effective manner. Thanks for a great article that was very thought provoking.”

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May 22, 2008 [Anonymous Contributors]

Here’s what subscribers told us within 24 hours of the release of the newsletter. Some of our other readers weren’t quite as enthusiastic… more postings to come.

“I just wanted to give you some feedback on how wonderful your report is! I find it well-written, informative and timely. The ironic part is that I'm currently based in India and have yet to work with your company so very little applies. Still, I find that I always learn something and enjoy the time spent with your report.”

“Just want to let you know this is always one of the more interesting newsletters among those I get from your competitors.”

“I appreciate you including me on your distribution. I find your analysis of recent and long-term trends to be quite insightful. Thank you. Look forward to staying in touch.”

“I find your newsletter to be so informative and helpful. Thanks for sending this out!”

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March 25, 2008 [Anonymous Contributor]

Regarding the recent Cushman Report March/April 2008, comments on the articles The C-Level or Aspiring to C-Level Resume: A Challenge of a Higher Order and The Ah-Ha About Resumes:

“Particularly timely, as I’m revising my resume.”

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