Category Archives: Customer Relations

Social Media ‘Evolution’ At Nation’s Investment Firms

26 Thursday May 2011

Posted by in Branding, Business, Communication, Customer Relations, Ethics, Government Regulation, Information Technology, Internet, Management Practices, Public Relations, Social Interactive Media (SIM), Social Media Relations

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USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype: 775.624.5679]

Paul Kiser

Can your investment advisor write a blog about his or her job? Can they Tweet that they just read a great article on oil futures and add a hyperlink? Can they post that they had a big day in the market? Prior to January 2010, the answer was no…not unless they wanted to risk her or his job.

Securities Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) rules didn’t specifically prohibit business-related Social Media participation, but SEC regulations on advertising and communications have been presumed to extend to online engagement and in a vacuum of good guidance, most major firms took the position of forbidding their representatives from participating in Social Media formats. This removed the fundamental aspect of Social Media that benefits commerce on the Internet, the one-on-one connection.

In January 2010, FINRA issued Regulatory Notice 10-06, which gave investment firms parameters for allowing their representatives to use Social Media within the bounds of SEC and FINRA regulations. The reaction was not instantaneous because firms had to solve the issue of how to supervise agent’s online communication. Protocols had to be established, software had to be adapted and installed, and training of agents had to be implemented; however, there has been a rapid Social Media ‘evolution’ in investment advising during the past 12 months.

For some firms, a deliberate, but ‘conservative approach’ to implementing Social Media engagement is being employed. One industry representative said, “…we had to help agents know what they can talk about and what they can’t talk about.” But she added, “…I’d rather be doing this now than wait three years and try to figure it out…Social Media exists and it’s not going away.”

For New York Life the direction was made very clear according to Ken Hittel, Vice President, Corporate Internet, who said, ” Our CEO, (Ted Mathas) made it very clear that agent participation (in Social Media) is a requirement.” New York Life uses a software program to meet SEC and FINRA regulations of supervising agent’s Internet interactions. Hittel said that the implementation of the program, “…went smoothly and was completed in a couple of months.”

The SEC regulations on advertising and adviser/investor communications are not new and apply to all methods of interactions, including those performed via the Internet. A FINRA podcast outlines five issues that apply to all forms of investment communications. All statements made by an agent must:

  • not be exaggerated or misleading and all material facts must be disclosed
  • clearly identified the firm and agent
  • not include or imply any forward-looking statements
  • provide the customer/investor a sound basis to evaluate the services or market
  • file any statements regarding mutual funds, variable products, and/or exchange traded funds within 10 days of being published

Each investment firm is expected to train their agents on how to comply with SEC and FINRA requirements. Hittel said that the New York Life agent training program is “..not just compliance.” He pointed out that Social Media creates 12,000 “Brand Ambassadors” for the company and they based their Social Media training on a “best practices” approach. Hittel said that there is a saying at New York Life, “…that you can do anything, not everything,” which is reflected in New York Life’s approach to Social Media engagement. The firm has established a progressive program for Social Media participation by their agents…within the scope of SEC and FINRA regulations.

FINRA Clearing a Path for Investment Firms to Engage in Social Media

25 Wednesday May 2011

Posted by in Business, Customer Relations, Ethics, Government Regulation, Management Practices, Public Relations, Social Interactive Media (SIM), Social Media Relations

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A version of this article first published as
Investment Firms Allowed to Use Social Media Under SEC/FINRA Rules
 on Technorati.com

Paul Kiser

Eighteen months ago a game launching bird heads at pig heads didn’t exist.

Eighteen months ago Tony Hayward was a star as CEO of BP.

Eighteen months ago most people thought Charlie Sheen was an actor.

Eighteen months ago most investment firms thought that financial advisors were prohibited from using Social Media in business.

Now Angry Birds is near world domination, now Tony Hayward is a footnote in public relations infamy, now we know Charlie Sheen is Charlie Harper…the possessed version of him, and now Social Media is not taboo in the investment business.

…in the world of investing, the Social Media ‘evolution’ has had to meet the compliance issues of the regulatory agencies meant to protect the investor from unethical advisors…

The world is evolving faster than most people can absorb, so it’s not surprising that some industries are adapting to new technologies faster than others, but in the world of investing, the Social Media ‘evolution’ has had to meet the compliance issues of the regulatory agencies meant to protect the investor from unethical advisors.

Social Media tools like blogs and Internet-based social networking tools have opened up a new environment for business by allowing a rapid-response connection between the customer and the seller of a product or service. In most Internet commerce it is a caveat emptor (let the buyer beware) situation, where the buyer must pursue legal remedies for a broken contract or unethical representation of a product or service after the fact. In investment advising the company or firm is expected to protect the buyer before, during, and after the fact, which requires the firm to intercede and supervise interactions that involve investment advice. That has led many firms to prohibit all Social Media involvement by its representatives.

However, seventeen months ago the largest independent financial regulator stepped forward with a road map for investment firms on how Social Media could be used by their representatives while meeting the need to protect the investor.

…the regulations only effect business communications that involve investment advising and promotion. Personal blogs, Twitter, Facebook, and other Social Media tools are not a concern for the regulators…

Joseph Price, Senior Vice President of Advertising Regulation/Corporate Financing at FINRA (Financial Industry Financial Authority) discussed the issues with investment firms and Social Media with me earlier today. Price is one of the authors of Regulatory Notice 10-06 titled Social Media Web Sites – Guidance on Blogs and Social Networking Web Sites that was published in January 2010. Price said that using Social Media, “..depends on the firm’s business model,” and that it, “..has to make sense for the firm.” He confirmed that the regulations only effect business communications that involve investment advising and promotion. Personal blogs, Twitter, Facebook, and other Social Media tools are not a concern for the regulators even though individual firms may have policies prohibiting personal on-line interactions.

Price said that a common question he hears from firms is from those who prohibit all Social Media involvement by their representatives. Their concern is whether a firm is meeting the regulatory requirements when they have no Social Media supervisory functions in place because they have prohibited the activity.

Another question that FINRA has had to deal with involves deleting inappropriate user comments in chat rooms and on blogs. Price asked, “..by selective deletion, has the firm adopted the posts they haven’t deleted?” His suggestion to firms is that they have a policy in place that outlines the approval/deletion of comments. As long as a firm follows the policy and doesn’t prejudice the comments to favor the firm and its products, the company will likely not be considered to have approved and adopted the user comment.

Regarding investment business blogs, Price explained that they “require prior approval” by a firm before they are published because they fall into the category of a static communication that includes any form of advertising.

The Regulatory Notice 10-06 answers ten questions for firms about guidelines for using Social Media in the industry of investment advising.  FINRA has followed up that document with webinars, podcasts, and seminars to assist their member firms in the ongoing process of adapting regulatory requirements to Social Media tools available to the rest of the business world.

Firms now the option of fully engaging in Social Media, which is rapidly becoming less an option and more a matter of survival.

Does FINRA Prohibit Social Media Activity for Investment/Financial Firms?

19 Thursday May 2011

Posted by in Branding, Business, Communication, Customer Relations, Customer Service, Ethics, Information Technology, Internet, Management Practices, Public Relations, Social Interactive Media (SIM), Social Media Relations

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USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype: 775.624.5679]

Paul Kiser

Last year I managed to offend some investment and financial professionals when I said that their industry would have to engage in Social Media, including blogs, if they were going to stay competitive. They told me that their firms and industry regulations prohibited them from using Social Media tools in their business practices. They also said that some firms that prohibited personal involvement in Social Media. The reaction during and after the meeting was one of a strong denial of the usefulness of Social Media in their industry mixed with a ‘kill-the-messenger’ attitude. It was a typical response by business people who have been blindsided by Social Media.

…Professionals that rely on personal contact and personal relationships are finding that effective use of Social Media is key to maintaining and growing their business.

It is hard to start a dialogue with business professionals on how to use Internet tools such as blogging, Facebook and Twitter when the attitude is that Social Media are an encompassing evil that must be avoided, or at the very least, ignored. The problem, and opportunity, is that business professionals who can use Social Media to engage with others will have an advantage over those who are mystified, or more typically, scared by the power of Social Media. Professionals that rely on personal contact and personal relationships are finding that effective use of Social Media is key to maintaining and growing their business.

The fact is that since that meeting many investment related firms have changed their positions by at least 90° and some have done a 180° shift in their attitude about Social Media in business. That is not surprising considering that their future is at stake; however, investment firms do have strict guidelines on advertising and investment advisement, so using Social Media is not the ‘anything goes’ environment for which most of us are accustomed.

Both the Securities Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA)[1] are charged with protecting investors by establishing rules to govern investment-related activities. Among those rules are requirements for firms on educating, monitoring, supervising, and document the activities of brokers representing their company. In January 2010, FINRA issued Regulatory Notice 10-06 titled Social Media Web Sites – Guidance on Blogs and Social Networking Web Sites. This notice did not prohibit firms from engaging in Social Media activity, but rather offered common-sense guidelines for investment firms on how Social Media tools could be used to meet FINRA and SEC requirements.

(End of Part I)

(Note: Part II will be posted by 5 PM PDT, Monday, May 23rd)

[1] FINRA is the largest independent regulator for all securities firms doing business in the United States. FINRA’s mission is to protect America’s investors by making sure the securities industry operates fairly and honestly. All told, FINRA oversees nearly 4,550 brokerage firms, about 163,500 branch offices and approximately 631,110 registered securities representatives. (From About FINRA at www.finra.org.)

(This article is advisory in nature and the author does not represent the Financial Industry Regulatory Authority (FINRA,) the Security and Exchange Commission (SEC), nor any federal or state regulatory authority. The opinion expressed should not be considered as a legal or official position regarding the use of Social Media tools in industry practices.  The author has sought out publicly available relevant documents and information as the basis for the opinions expressed; however, final authority on the issues discussed in this article rests with the appropriate government, regulatory, and/or company division that oversees the area of concern.)

Courtyard in Dallas: A Hotel For Real People

04 Wednesday May 2011

Posted by in Business, Customer Relations, Customer Service, Internet, Re-Imagine!, Travel

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by Paul Kiser
USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype: 775.624.5679]

Paul Kiser

I spend more time than most people I know in major market hotels and typically they can be lumped into the category of ‘people warehouses.’ Sometimes I find a hotel that has made an attempt to make the lodging experience something more than a Orwellian, mega-corporate vision of a room with a bed. It is rare; however, to find a hotel that was intentionally designed to make a real person welcome and wanted.

Courtyard by Marriott Front Desk in Dallas, TX

The Courtyard by Marriott DFW Airport South in Dallas, Texas is one of those rare exceptions.

Located near the Dallas-Fort Worth Airport and near two freeways (Texas 183 and 161) the Courtyard hotel could easily fall into the trap of the thousands of chain hotels near major transportation centers that seem to be set up to process travelers as quickly and efficiently as possible, but absent of any warmth. The Dallas DFW Courtyard by Marriott is efficient, but it is also friendly, customer-focused in the important details, and well designed.

The desk and flat screen television in my room

When I walked into the hotel I found a relatively small registration desk as opposed to those massive registration desks in some hotels where it looks like they could take care of 20 guests at once, but only have one person on duty. I was greeted with a friendly smile by a devastatingly attractive young woman named Amy who made me feel like I was the only person she would be helping that day. There was another young man there named Chris, but for some reason I didn’t notice him as much. 🙂 I did have a chance to talk to him later in the evening and he was very helpful.

In addition to the friendly staff, I also noticed that the front desk has an opening in the middle so that the person behind the desk can step through quickly and easily. The design made me feel like they were real people behind the registration desk, not caged robots.

A Self-Service Board Pass Print Station

As I was going to my room I noticed that the sleeve for the plastic room key said, “This key is not meant to lock you in your room.” That is was the first time I have ever had a hotel openly express that to me as a guest.

The room size was slightly larger than most hotel rooms, and the arrangement and the furniture were atypical for a standard hotel room., It made it feel more like a suite than a warehouse. The room had free WiFi Internet access and a flat screen television, which are two of my critical tests of quality. Free Internet says, “we know you’re a mobile person and access to the Internet is important to you so we’re not going to gouge you for $14/day for it.”

A flat screen television demonstrates that the hotel is keeping their facility updated. Old televisions are bulky, ugly, and tell me that the money I spend for the room is not being reinvested in the facility. Another test of quality is access to outlets in the room and the Courtyard has them, including outlets on the wall lights near the bed.

Food/Bar Counter Makes the Entire Lobby a Gathering Place

I had already decided to go out for dinner before I arrived, but I changed my mind once I had seen the lobby/restaurant area. This hotel has a unique lobby design. Opposite of the registration desk is a partial oval bar/counter for ordering food and/or drink, but behind it are tables and chairs as in a restaurant dining room.

Around the room are pod-like areas with flat screen televisions scattered about, all on different channels. The food preparation area (kitchen) is not in sight. Every thing about this area, and another large lobby area opposite the registration/bar area is designed to welcome people to congregate and relax. It is a Starbucks®-like model, only with full food and drink service. The food was excellent and the service from the man and another young woman in the food service area was great (and yes, she was also devastatingly attractive.)

Additional Gathering Space in the Lobby Area

The lobby also has a large touch screen digital bulletin board to access hotel and local information and a separate area with video screens of DFW airport flight status reports AND a station to print out airline boarding passes. The Courtyard does not forget its customers are often travelers and these key details prove that the hotel works hard to accommodate the needs of traveling guests.

I found that everything about the Courtyard by Marriott indicated that they have Re-Imagined the concept of a hotel and they have used the viewpoint of the guest, not the accountant, as the guide in its design. In addition, the Alex Nguyen, the Director and General Manager of the facility must have a strong ability to convey to his staff the need for reaching out to the guests and making them feel at home. I know I will not forget my short stay there and I appreciate design of the facility and the warmth of  the staff.

Well done!

(This article was not solicited or approved by the Courtyard by Marriott, nor was this article written with any understanding of compensation, nor quid pro quo exchange.)

FAA + Airlines + Personal Electronic Devices = Public Mistrust

03 Tuesday May 2011

Posted by in Communication, Customer Relations, Ethics, Government Regulation, Information Technology, Management Practices, Public Relations, Travel

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by Paul Kiser
USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype: 775.624.5679]

Paul Kiser

Recently, a 73 year-old man flying from Minneapolis, Minnesota to Winnipeg, Canada was ordered by the flight crew of an unnamed airline to stop using his Global Positioning Satellite (GPS) device during the flight. The GPS device tracks the user’s current position by receiving (not transmitting) a signal from orbiting satellites. Currently over half the world’s airlines allow it to be used during a flight, but not this airline. The man was arrested and fined for not obeying the flight crew instructions to turn it off and also refusing to buckle his seat belt. Not surprisingly his last name was, Ego…I’m not making this up…his name was Michele Ego (See article in Winnipeg Free Press.)

…the incident was based on the Flight Attendant enforcing an 18 year-old policy of restricting the use of  personal electronic devices (PED’s) that has little or no real experimental data to justify it…

Are these really a threat to airline safety?

Clearly Mr. Ego was in the wrong by refusing to obey the instructions of the flight crew; however, the incident was caused by a flight crew enforcing an 18 year-old policy of restricting the use of personal electronic devices (PED’s) that has little or no experimental data to justify it. The zeal of some flight attendants in following this baseless policy creates a source of conflict and mistrust between the flying public and the flight crew, all of which could be avoided, if not for the Federal Aviation Administration (FAA) and the airlines.

…the policy uses decades old research that could only pose a theoretical threat by PED’s, without any experimental proof…

The lack of evidence for the restrictions on PED’s (such as MP3-4 players, GPS, cell phones, etc.) is well-known, and yet, airlines stick to a policy of restricting them, especially during takeoffs and landings because of the FAA’s order issued in 1993, that each airline must prove a PED will not interfere with the plane’s avionics before passengers are allowed to use them during a flight. The reasoning for the policy uses decades old research that concluded that PED’s pose a theoretical threat.

During a Congressional Hearing on the issue in July of 2000, over a year before the first generation of Apple’s iPod was sold, the issue of PED’s impact on a plane’s avionics was discussed. During the hearing a National Aeronautics and Space Administration (NASA) database of anonymously submitted in flight incidents was presented. Of 69,000 reports, 52 flight crews blamed passenger PED’s for the plane’s avionics problems. In most of the cases from 1992 to 1998, incidents on planes as small as a Cessna and large as a Boeing 757, related problems in navigational readings that seemed to be corrected when passengers were asked to turn off the devices.

…In each case the problem could not be duplicated under controlled test conditions…

In several of those cases, the alleged offending PED was purchased from the passenger and attempts were made to reproduce the problem. In each case the problem could not be duplicated under controlled test conditions. These results were fortified by two commissioned studies of PED’s, including cell phones, in 1983-8, (a study for the airlines,) and 1992-6, (a study for Congress.) Both studies offered no real evidence of avionics interference caused by PED’s.

(See Blog article: Why Your iPad Won’t Kill You)

Regardless of the lack of evidence, neither study could prove that PED’s were absolutely incapable of interference, and in a British study on cell phone transmissions, it was determined that the threat from PED’s was from pre-1984 devices that could theoretically cause interference with a plane’s avionics. Despite a lack of real evidence of a threat, the FAA issued its 1993 ruling that said that airlines should restrict the use of all PED’s below 10,000 feet (for takeoffs and landings) and only allow use of PED’s above 10,000 feet if they could prove it didn’t interfere with the plane’s avionics.

The fact is that today’s commercial airliner has been designed with shielding on all electronic systems to protect it against all types of electromagnetic radiation, including a strike from a lightening bolt, which seems far more likely to happen than an incident of electromagnetic interference caused by a PED like an iPod, GPS device, or cell phone*.

(*Interestingly, it was not the FAA, but the Federal Communications Commission (FCC) who issued a rule in 1991, that cell phones could not be used by any aircraft –including private planes and lighter-than-air balloons– because of the fear that phones in a line of sight of multiple cell phone towers could cause problems with ground-based cell phone traffic.)

With the airlines blessing, both the FAA and FCC have created an environment that forces flight attendants to be the voice of ‘Chicken Little’, by enforcing flight rules governing PED’s that make no sense in 2011. The ineptness of the FAA and the airlines in their handling of the issue of PED’s undermines the relationship of trust that passengers must have in the flight crew if they are to be believed and obeyed during critical situations involving a real threat to passenger safety.

The question that remains is whether or not the mythological threat of PED’s to aircraft safety is greater than the loss of trust of the flying public.

Taco Bell says taco meat is 88% real beef, not 36%

28 Friday Jan 2011

Posted by in Branding, Customer Relations, Ethics, Management Practices, Pride, Public Relations

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by Paul Kiser
USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

Article first published as
Taco Bell Says Taco Meat is 88% Real Beef, Not 36%
on Technorati.com

On Wednesday, Taco Bell issued an updated response to a lawsuit claiming that its taco meat was only 36% beef.  In this statement Taco Bell CEO and Chief Concept Officer Greg Creed gave facts and figures to challenge the assertion that its taco meat consisted of largely fillers and extenders.

According to Taco Bell, its taco meat consists of 88% beef, and up to 10% of the remainder consists of water and/or spices. Creed again repeated that Taco Bell would ‘vigorously defend’ the claims against the quality of its products. (Read the full statement here.)

This statement clearly refutes the heart of the matter raised in the lawsuit.  Two previous statements implied a denial of the accusations, but stopped short of offering facts and figures regarding the content of fillers and extenders of its product.  The lawsuit was widely reported on Tuesday by most major news outlets and many online blogs.

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Taco Bell beefs up its response: Our taco meat is real, the lawsuit is bogus

27 Thursday Jan 2011

Posted by in Branding, Communication, Crisis Management, Customer Relations, Ethics, Management Practices, Pride, Public Relations

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by Paul Kiser
USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

(NOTE: Below is a statement by Taco Bell Corp. made yesterday regarding the lawsuit filed against them for false advertising stating that their taco meat was only 36% beef. I am publishing this statement now with an additional article on the issue to follow.)

From: Greg Creed, CEO and Chief Concept Officer of Taco Bell Corp.

UPDATED STATEMENT REGARDING CLASS ACTION LAWSUIT

“The lawsuit is bogus and filled with completely inaccurate facts.  Our beef is 100% USDA inspected, just like the quality beef you would buy in a supermarket and prepare in your home.  It then is slow-cooked and simmered with proprietary seasonings and spices to provide Taco Bell’s signature taste and texture.  Our seasoned beef recipe contains 88% quality USDA-inspected beef and 12% seasonings, spices, water and other ingredients that provide taste, texture and moisture.  The lawyers got their facts wrong.  We take this attack on our quality very seriously and plan to take legal action against them for making false statements about our products.  There is no basis in fact or reality for this suit and we will vigorously defend the quality of our products from frivolous and misleading claims such as this.”

What is in Taco Bell’s recipe for seasoned beef?

“We’re cooking with a proprietary recipe to give our seasoned beef flavor and texture, just like you would with any recipe you cook at home.

For example, when you make chili, meatloaf or meatballs, you add your own recipe of seasoning and spices to give the beef flavor and texture, otherwise, it would taste just like unseasoned ground beef.  We do the same thing with our recipe for seasoned beef.

Our recipe for seasoned beef includes ingredients you’d find in your home or in the supermarket aisle today:

  • 88% USDA-inspected quality beef
  • 3-5% water for moisture
  • 3-5% spices (including salt, chili pepper, onion powder, tomato powder, sugar, garlic powder, cocoa powder and a proprietary blend of Mexican spices and natural flavors).
  • 3-5% oats, starch, sugar, yeast, citric acid, and other ingredients that contribute to the quality of our product.

Our seasoned beef contains no “extenders” to add volume, as some might use.  For more information about our ingredients go to http://www.tacobell.com/”

PR Epic Fail: Taco Bell ‘meat’ only 36% beef?

26 Wednesday Jan 2011

Posted by in Business, Customer Relations, Ethics, Management Practices, Public Relations

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by Paul Kiser
USA PDT [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

Article first published as
PR Epic Fail: Taco Bell meat only 36% beef?
on Technorati

(NOTE:  This article was submitted to the Technorati.com editors on Tuesday evening (January 25) and published Wednesday evening. On Wednesday, Taco Bell Corp. gave a definitive statement of the quality of its meat and claims that its taco meat is 88% beef.  To read this statement and a follow-up article, click on this link: Greg Creed’s statement on Taco Bell’s taco meat.)

It’s not too early in the year for the first entry in the “Worst PR of 2011” contest and that dishonor may go to Taco Bell. The fast food chain is facing a controversy that has all the makings of a classic Public Relations Epic Fail award.

Cat treats or Taco Bell taco meat? Which has more protein?

News media (See USAToday article) and online blogs have buzzing about a lawsuit that is seeking class action status against the Yum! Brands subsidiary stating that the taco meat at Taco Bell is only 36% beef, which is less than the USDA minimum of 40%. The suit seeks to have Taco Bell either rename their products or add more beef.

This controversy would be bad enough with just the lawsuit, but the company counter attack will undoubtedly generate more public focus on the issue. Taco Bell’s strategy raises the stakes in a Public Relations battle that now has to be 100% successful or else the company will lose all credibility for the foreseeable future. The response so far seems to indicate that Taco Bell is walking a fine line in denying the accusations about their product.

According to Associated Press reporter, Bob Johnson, the first company response was from Taco Bell spokesperson, Rob Poetsch:

“Taco Bell prides itself on serving high quality Mexican inspired food with great value. We’re happy that the millions of customers we serve every week agree,” Poetsch said. He said the company would “vigorously defend the suit.”

Poetsch’s response carefully avoids denying the accusations, but is worded to imply that since the customers buy the product, it must be okay.

Later the Greg Creed, President and Chief Concept Officer of Taco Bell Corp. put out a stronger, but still carefully worded statement that again walked a fine line in denying the accusations. His statement said that: 1) Taco Bell buys beef, 2) the beef is 100% USDA inspected, 3) the process begins with simmering beef, 4) seasonings and spices are added, and 5) the ‘signature Taco Bell’ taste and texture results from the process. He then added that the ‘lawyers….got their “facts” absolutely wrong’ and that Taco Bell plans to take legal action for false statements made about their food.

While this sounds like a denial, Creed avoids saying anything about the use of fillers and extenders in their taco meat by referring to all added ingredients as “seasoning and spices.” According to the Taco Bell website the ingredients for the ground taco meat include the following (ranking added):

#3 – Isolated Oat Product, #8 – Oats (Wheat), #9 – Soy Lecithin, #12 – Maltodextrin, #13 – Soybean Oil (Anti-dusting Agent), #15 – Autolyzed Yeast Extract, #17 – Caramel Color, #18 – Cocoa Powder (Processed With Alkali), #19 – Silicon Dioxide, #21 – Yeast, #22 – Modified Corn Starch, #25 – Sodium Phosphates

Both the website and Creed refer to these ingredients as “seasoning”, implying they add taste to the product and are not fillers or extenders. However, if the lawsuit is accurate, Taco Bell may have a hard time convincing its customers that ground taco meat requires 64% ‘”seasoning” and only 36% beef.

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A Question of Ethics

02 Tuesday Nov 2010

Posted by in Branding, Business, Communication, Crisis Management, Customer Relations, Customer Service, Employee Retention, Ethics, History, Honor, Human Resources, Management Practices, Passionate People, Pride, Public Relations, Relationships, Respect, Rotary

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

Business ethics have waxed and waned over the centuries, but recently we have observed a severe lack of ethical conduct on a large-scale in recent years. The most recent world-wide economic crisis was triggered by years of unethical business practices that nearly put the United States in its first depression in almost a century. In hindsight the questionable business practices were often created by a subtle system of pressuring employees to take actions that were demanded by executives and managers in order to improve earnings for stockholders. This type of ethical dilemma often leaves no one person to blame, and even those involved sometimes do not realize that they are participating in inappropriate and/or unethical acts.

I have been caught in ethical dilemmas that created a moral challenge for me and in one situation I lost a stream of revenue in a seemingly no win scenario.

For a time I assisted a seminar speaker who was considered to be an expert in his field. He hired me to participate in group activities during his seminars.  Occasionally, he would ask me to update or write scenarios for his seminars. In one case I based the scenario on someone I knew, but I added the possibility of suicide.  The scenario was also combined with a possibility of doing harm to someone else.  We used the scenario in one of his seminars and it went very well.

Bigger horns make the bull seem smaller...just like some consultants

A few weeks later we used the same scenario, with minor revisions, with another client. Interestingly enough, the night before the seminar, the speaker  told me that someone else had just written the scenario. However, when I read it I realized that it was the same one I had written for him a few weeks earlier. When I mentioned to him that I was familiar with this scenario and tactfully reminded him that I had been the original author he quickly acknowledged it and moved on.

The next day exercise went well and afterward the participants were given the opportunity to discuss the activity. Participants began asking him about what happened in real life to this person.  Instead of explaining that this was a fictional scenario based on a combination of multiple real situations, the speaker began explaining that in the real life situation that the person did indeed kill himself.  He continued to answer more questions that were also fabrications, but passed off as his ‘research’.  Afterwards I did not mention anything to him about his handling of the post-activity questions.  He was hiring me to assist him, not criticize him and so I did not pursue it with him.

He had already hired me to work with two more clients in the next few weeks and at both he insisted that I stay out of the room, except during the group activity. He stressed that it was not good for his clients to ‘get to know me’ too well.  He also did not schedule me for any more work with his clients.

Later I tried to understand what I might have done to cause an abrupt end to our relationship. He and his clients raved about my work. I then realized that the sudden changes occurred after I witnessed his unethical handling of questions in the previous seminar. Apparently it had a significant impact on him that I observed his breach of trust with his client and that earned me a permanent seat on the bench.

Perhaps I should have confronted him, but I think that would have just made him mad, with the same result.  It was a good lesson: A lack of ethics by one person…sucks.

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Rotary@105: 7 Relationship types that affect membership retention (Part II)

27 Wednesday Oct 2010

Posted by in Branding, Business, Club Leadership, Communication, Customer Relations, Customer Service, Employee Retention, Ethics, Honor, Human Resources, Information Technology, Internet, Lessons of Life, Management Practices, Membership Recruitment, Membership Retention, Passionate People, Pride, Public Relations, Relationships, Rotary, Rotary@105, Social Interactive Media (SIM), Social Media Relations, The Tipping Point, Women

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

NOTE: This article is a secondary article to
Relationships Typing: 3 factors that the affect quality and depth of friendship

As mentioned in the first part of this article, I have defined three factors that seem to determine the quality of my relationships. 1) Trust, 2) Common Interests and/or Experiences, 3) Equality.

By using a 21-point scale to rate each factor in various relationship types we can see how Trust (or the lack of), Common Interests and/or Experiences (or the lack of), and Equality (or the lack of) define the relationship. Below are seven types of benchmark relationships and how they might affect membership retention in a Rotary club.

Too much friendship?

The Star
We all have people who we look up to, but there are just a few people that we put on a pedestal. I see the Star relationship as one where the trust level is relatively high (+7 on a scale of -10 to +10) as well as the common interest level (+8 on a scale of -10 to +10), but we feel inferior (a -9 on a scale of -10 to +10) to this person. In this relationship the depth and quality of the relationship is usually shallow. These people are not close friends, but rather an admired acquaintance. A new member in a Rotary club might see the Club President as the Star.

The Mentor
The Mentor is a different version of the Star. The difference is that we trust the Mentor implicitly (+10) and we have a strong common interest (+9); however, we see ourselves as inferior (-6) to our Mentor. The Mentor has achieved a level of success that we hope reach and our relationship is based on a mutual effort to gain an equal level of success in the future. I think it is a mistake to believe that a Mentor relationship can be imposed. The only successful Mentor relationships I have observed are those that have occurred by a mutual agreement of both parties. In over nine years in Rotary have witnessed few successful Mentor relationships. When it does happen it is a win-win situation for both members, but the Mentor must be highly skilled and/or knowledgeable, a passionate person, and a great trainer. In addition, the ‘trainee’ must recognize the Mentor’s superior knowledge and have a desire to learn from him or her. If not, the relationship will fail.

A Partnership is not necessarily a friendship

The Partner
I see the Partner as a relationship seeking mutual benefit for both people, but without the level of trust of a Mentor relationship. In a Partner relationship the trust is conditional (0, not + or -) and the two people usually see the other as his or her  equal (0) or at least they have something of value that balances the relationship, but the common interest is high (+9). I would consider the Partner relationship to be a symbiotic or co-dependent relationship and while the relationship may seem to be a strong bond, the slightest feeling of inequality or betrayal can end the relationship. In Part I of this series I mentioned that the employer/employee relationship might be a partnership, but I also believe that some marriages can start out, or devolve into Partner type relationships. In a Rotary club a member who has established mostly Partner relationships with other members is likely to have no deep attachment to the club and likely to leave.

The Friend
Of all relationships, I think a Friend is the hardest to achieve. A quality friendship involves a high level of trust (+9) and a significant level of common interests and/or experiences (+6), but also a genuine feeling of equality (0) must exist. The trust and equality factors for a friendship are difficult for most people to offer to another person. It is a special relationship and one to be highly valued, but once achieved it is a strong bond that lasts over time and distance. If every member were to have only one other true ‘Friend’ in his or her club most members would never consider leaving.

The Rival or Competitor
A rival is a relationship, even though we usually don’t think of it as one. It is a relationship based on mistrust (-8) of another person and somewhat ironically, a relationship that includes a high level of common interests (+8). I think that while we may feel we are superior to our rival that the truth is that we are afraid that we are not, thus I give an equality rating of (+3) to a Rival relationship. The Rival relationship is one of the worst possible relationships that could develop in a Rotary club. Sooner or later the club is going to be drawn into the conflict or one or more members will leave because of it. Ironically, it is the high level of common interest that seems to set up the Rival/Competitor situation. Without the envy or jealousy caused by the common interest both people would probably ignore each other.

Common Interest can enhance a relationship, or create conflict

The Subordinate or Submissive
Note that with the Subordinate relationship I am talking about someone who sees another person as their subordinate or submissive. This can be an employer/employee type relationship, but it is any relationship where a person sees him/herself as superior (+10) to another person. The trust level is relatively high (+5) as the person with the bigger ego expects the subordinate to obey their wishes and typically there is somewhat of a common interest (+3), but not necessarily a significant level of commonality. The big problem I have seen with this type of relationship is that the target of this attitude may not feel that they should be the subordinate. In a Rotary club it is surprising easy for a club leader to see other club members as their subordinate. Nothing creates a false sense of power like a title and in a volunteer organization titles are meant to assign responsibility, not authority, but not everyone understands that concept.

The Alien or Blank
It seems somewhat pointless to talk about the lack of a relationship as a type of relationship, but the I find it interesting to understand that some people just don’t show up on our relationship radar even though we may see them on a regular basis. I didn’t fully understand this until I was in Rotary, but after a few years in a club you learn the some people can disappear in plain sight. I feel the lack of a relationship, when there realistically should be is a type of relationship and I refer to it as an Alien or Blank relationship.

The quality of Friendship
I would not argue the point that it takes two to make or break a relationship; however, I would argue that the quality and depth of any relationship is determined largely by our own attitudes, in concert with the way the other person treats us. Understanding the factors that influence a relationship is the first step to making positive changes. In a Rotary club, failing to recognize that not all relationships are constructive can have major consequences on membership retention.

In Part I of this series I talked about a facilitator at a meeting who didn’t want to dilute his ‘friendships’ with people in the Social Media. My response to him is this: friendship is more about what we bring to the table and not the method of connection. The Social Media is not a threat to good friendships, just a different way to engage in them.

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Starbucks is Re-Imagining the business…again

22 Friday Oct 2010

Posted by in Branding, Business, Communication, Customer Relations, Customer Service, Information Technology, Internet, Management Practices, Passionate People, Print Media, Public Relations, Re-Imagine!, Relationships, Rotary, Social Interactive Media (SIM), Social Media Relations, Tom Peters, Traditional Media, Travel, Website, Women

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

This week Starbucks continued to add value to its stores and more Re-Imagining seems to be in the forecast. A few months ago Starbucks did the smart move of offering free WiFi for everyone (see article below) and on Wednesday they took it one step farther with a Digital Starbucks that features free web content if you sign on to their WiFi service while you’re in the store.

(Free WiFi at Starbucks)

Now when you use the free WiFi service in any Starbucks you can also read a digital version of the day’s Wall Street Journal, New York Times, or the USA Today. The New York Times requires software download of a reader, but the USA Today loads up its own reader and retains the exact look of the paper copy. The site also includes Yahoo! news and GOOD content.


In addition to news, the Digital Starbucks offers access to a selection of entertainment, wellness, business/career, and local online resources. There is also a page to access most of the functions found on the Starbucks website. It seems apparent that Starbucks has teamed with AT&T, the WSJ, NYT, USA Today, and several others to offer this value-added service. Recently all Starbucks stores received new labeled newspaper stands with the New York Times, Wall Street Journal, and USA Today in the top three shelves with the local paper given the bottom shelf. In my October tour of stores in Houston, Boston, Denver, and Reno I have seen more papers sold out than I have ever seen at a Starbucks store. Obviously the collaboration is a win-win.

A screen shot of the DG Wellness page

While some information has been sent out regarding the new online features most people have not caught on to the major remake of the log-in page and the new free media resources. That will change over time and I expect Starbucks will see a positive increase in store traffic as customers become aware of what they can access for free at their local store. I have already noticed high occupancy of the key ‘power’ tables (tables next to a power outlet) in almost every store I’ve visited since the free WiFi service started on July 1st.

Starbucks After Hours
The value-added virtual Starbucks is small change compared to what may be coming to some Starbucks locations. As reported in this Monday’s USA Today, the company has been testing wine and beer service at a Seattle location. The three-month remodel of a standard store resulted in a cafe-type look and feel, moving away from the glorified fast food feel of most coffee houses. The move is designed to generate more late day revenue when coffee sales die down. There is little doubt that local bars may find a Starbucks too much to compete with as it creates a middle ground for those like getting out in the evening, but seek a relaxed atmosphere free of loud music and single men on the hunt.

While I remained concerned that Starbucks is allowing accountants have too much say in store operations, I have to congratulate them on bringing value-added service and innovative ideas into the forefront. The winner is the customer … the only person that matters.

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Knowing when it’s over or beyond over

22 Friday Oct 2010

Posted by in Communication, Customer Relations, Customer Service, Internet, Lessons of Life, Passionate People, Random, Relationships, Travel, Women

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

There comes a time in every relationship when you start suspecting problems, and then there is the point when you know it’s over. In the past two weeks I’ve discovered that I’m in a relationship that is not only over, it’s become adversarial. I can’t say I’ve been unaware that there were problems, but I have become dependent on her and it was just easier to ignore the signs than to confront her. Now she has begun a campaign of sabotage and I’m forced to do something.

I’ve played this game before. It’s always the same story. First she is unbelievably helpful and at times she surprises me with her intelligence. But then I begin to rely on her and that’s when things go south..or sometimes north, but it goes wrong regardless of the direction and then you end up alone in the rain somewhere in the Pacific Coastal range with no cell phone signal…but that’s another story.

It was Father’s Day when we met. Her name is Samantha, and she has a clear, well-enunciated voice. I stayed up late with her that first night and I couldn’t wait to take her for a ride in the car. I was impressed with what she knew and it felt like love. Then came the little mistakes. Little warning signs that should have told me that she wasn’t as perfect as I thought. Then she changed. It seemed like she was deliberately misleading me. I became frustrated, but I told myself that maybe I had expected too much.

Then last week came the proof. This time it was intentional. This time it was malicious. I was driving in the early morning in a Nor-easter rain storm to the Boston airport. It was dark, I was stressed, and my plane was not going to wait for me if I got lost. Still, I was 90% sure of where I was going, but I had her there in the car calmly reassuring me that I was where I needed to be. Then it happened. I knew I had to stay on I-90 through the tunnel to get to Boston’s Logan Airport. The airport is basically on an island so there are not a lot of options on how to get there.

The Other Woman

She said it and I didn’t imagine it. She told me to exit I-90 and go south on a road that would have taken me away from the airport. Had I obediently done as she ordered I would have been scrambling for at least 30 minutes to try to get back (you have to know Boston roads to understand why) to the airport. My sweet, innocent Garmin Nuvi 265 GPS device had turned on me and was deliberately trying to make me miss my flight. She is evil!

Now I know that she is out to get me and it makes driving stressful. Did she give me the right exit, or is she just messing with me again? I know it’s all over between us, but I have a hard time letting her go. Damn you Sam!

If you see me driving and yelling when no one is in the car, be cautious … who knows who is in the driver’s seat.

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Dear Teresa Laraba, SVP of Southwest Airlines Customer Service

20 Wednesday Oct 2010

Posted by in Branding, Business, Communication, Crisis Management, Customer Relations, Customer Service, Ethics, Information Technology, Internet, Lessons of Life, Management Practices, Passionate People, Pride, Public Relations, Relationships, Respect, Travel

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

Teresa Laraba
Senior Vice President Customer Services
Southwest Airlines

Dear Teresa:

Last Friday I felt betrayed by Southwest Airlines and while the outcome of the event was not horrible, the stress it caused me has profoundly effected the trust I place in your airline. I also felt that some of your key people failed in their duty toward customer service.

I have been on 28 Southwest flights since the beginning of August and the one that was the longest was last Friday’s flight from Boston to Reno. I was on the flight for almost eight hours. I knew it was going to be a long flight, but I always pay for Early Bird boarding so that I can get a window seat and settle in. I have relied on this service to make the ‘open seating’ policy less of an ordeal, especially on long, full flights where the last to board are the Big Losers who have to sit in the middle seat.

The Boarding Pass of Shame

The day started out stressful as a major storm hit the northeast and I had to drive through heavy rain, in the dark to get to the airport. After getting to the airport, gassing up the car, and turning it in, I took a sigh of relief as I went to get my boarding pass. I had early boarding, which was critical on a flight that would be five minutes short of 8 hours on the same plane. I finally found the TSA line and as I stood there I looked to see where I would be in the ‘A’ Boarding Group. I was shocked to see that I was in the ‘B’ Boarding Group, and that I was at the end of the ‘B’ Group.

I got through the security line and went to the Gate Counter. I asked the gate agent at the counter, (who seemed like she was in a bad mood at 6:30 AM in the morning,) if this was a mistake. She said that there was a ‘computer glitch’* and that all Early Boarding passengers lost their Early Boarding status. She told me I would be refunded $10.

(DEFINITION: Computer Glitch – One of our computer programmers applied a change to the system that screwed everything up, and while it was human caused, we’re going to make it sound like a mechanical problem, so we don’t have to take responsibility for the error and actually do something to make it right.)

Southwest Airlines doesn’t seem to understand that when you fail to do what you promise, giving back the money you took in exchange for that promise is not making it right. Giving money back for a service not performed is what you are legally obligated to do, it’s not doing me a favor. It is essentially saying, “We’re not going to try to screw you out of your money for our failure to do our job.”…thanks a lot.

So I was going to sit in the middle seat for an eight-hour flight because Southwest screwed up and that was your ‘best’ customer service response. I complained further and the gate agent reluctantly said she would let me board at the end of the ‘A’ group. That was a good half measure at a solution, but I still don’t know why she didn’t offer it when she first admitted the error.

I was still frustrated so I called your Customer Service line. I was met with the same cold, uncaring, “..we’ve had a computer glitch and you’ll be refunded your $10.” When I told her that I was going to be stuck on the same plane for eight hours she acted like she didn’t believe me. I then helped her with the math and explained the three time zones we would be crossing, to which she said, “Oh, yes, that is eight hours.” In her defense she did suggest that I could talk to the gate agent, but I had already done that with little results.

I’ve flown SWA a lot recently, and I’ve come to trust the Early Bird boarding system. I used to try to pull my boarding pass at 24 hours before boarding in order to get a decent seat with limited success. The Early Bird boarding option has made all the hours in a loud aluminum tube where I have no rights, no say, and no real food, … bearable. BUT, on the longest flight of 29 (tomorrow is #29), the system failed me…big time. What I’ve learned from this not only is the Early Bird boarding system unreliable, that when there is a problem, Southwest does not, 1) recognize the significance, or attempts to minimize the problem, and 2) offers no reasonable solution unless you really complain.

I do have three positive experiences to report that kept this flight from being a disaster. First, I was able to get a window seat and that kept me from going over the edge. Second, another SWA employee, (Mark, I think) who actually loaded the passengers on the plane, recognized that the loss of the Early Bird boarding passes was a major problem. He made it clear that anyone with Early Bird boarding would be allowed on the plane at the end of the ‘A’ Group. He admitted that it was a big problem and he apologized several times for it.

That was it! Admitting it was a major problem, apologizing for it, and then attempting to make it right was the key to showing that someone cared. The gate agent and the phone ‘customer service’ showed a lack sympathy or concern. Your ‘customer service’ staff has become too good at minimizing the problem and being ‘professional’ by not caring.

The third positive came from the flight deck. We boarded the plane to sit there for an hour so someone (a professional mechanic) could come and tape up an exit sign that was hanging down. However, the pilot (possibly the co-pilot) came out and personally explained, multiple times what was going on and during the flight he came out and walked the plane explaining where we were in the flight. He cared enough to show his face and give us the news, bad and good.

I don’t understand why your customer service staff is so uncaring, leaving the rest of the employees at SWA to pick up their slack? I will likely continue to fly SWA because we really don’t have a choice anymore, but I will go back to pulling my boarding passes 24 hours in advance, even with my Early Bird boarding fee, just because I can’t trust your system to do what it supposed to do, and because when it fails, your CS staff could care less.

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Your Privacy Rights on the Internet: Read before you write.

11 Monday Oct 2010

Posted by in Branding, Business, Communication, Crisis Management, Customer Relations, Customer Service, Ethics, Honor, Human Resources, Information Technology, Internet, Lessons of Life, Management Practices, Passionate People, Pride, Privacy, Public Relations, Re-Imagine!, Relationships, Respect, Rotary, Social Interactive Media (SIM), Social Media Relations

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

I have had several discussions with people who have a fear of the Internet and Social Media tools. The common issue that arises is regarding privacy, which to me is an interesting concern. Being concerned that you’re giving up your privacy if you use the Internet is, to me, a Homer Simpson moment.

I’m not sure where anyone got the idea that writing something and sending it out over a public system of servers, visible to almost anyone, and recorded for all time would be private, but for those of you who have that impression, let me read you your rights:

Your Right to Privacy on the Internet

  • You have a right to stay silent.
  • You have a right to not participate in Internet/online activities.
  • You have a right to consult an attorney before you participate in any Internet/online activities.
  • You have the right to stay in your house, block up the windows and never go out into public.
  • If you choose to participate in any Internet/online activities, anything you say can and will:
    • be considered a reflection of your public image
    • be available for anyone in the world to access
    • be recorded for the remainder history of the civilized world
    • be used against you now, or in the future
  • If you choose to NOT participate that will NOT prevent:
    • People from talking about you on the Internet
    • People using your image for almost any purpose
The Internet, and Social Media tools like Facebook, Twitter, MySpace, and LinkedIn allow people to communicate in a way we’ve never been able to communicate before. It is not intended for private discussions, but it is an open forum. That makes some people uncomfortable, and while I understand that, I also have to wonder why people have a need to say something they are not willing to say publicly?

There is still a time and place for a personal, one-to-one conversation to discuss matters between the two people, but isn’t that better to be done in person? Privacy is not what one should expect when using the Internet, but it is the place for ideas and concepts to be discussed in an open environment that values the input of all. Yes, sometimes the stupid people have louder voices and win the day, but at some point people will look back and learn who was behaving stupidly and who was really correct.

Here are four things I try to keep in mind when participating in online activities:

  1. Sometimes I’m going to say something stupid. I’m human and I will have to buck up and take responsibility for it.
  2. Sometimes people are going to ridicule what I have to say. That doesn’t mean they are correct and it may be a reflection of their poor judgement, not mine.
  3. By participating I will learn more than I could if I did not participate. Sometimes the lesson will be difficult, but that will usually mean I will learn more.
  4. Social Media is not the alpha and omega of life, but it is one of the most powerful communication tools ever conceived.
Now you have been read your rights… you can take it from here.

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Social Media 3Q 2010 Update: Who Uses Facebook, Twitter, LinkedIn, & MySpace:

08 Friday Oct 2010

Posted by in Branding, Business, Communication, Consulting, Customer Relations, Customer Service, Ethics, Information Technology, Internet, Management Practices, Passionate People, Public Relations, Re-Imagine!, Relationships, Rotary, Social Interactive Media (SIM), Social Media Relations, The Tipping Point, Tom Peters, Traditional Media

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

The third quarter 2010 demographics of Social Media users according to Google’s Adplanner services has a few surprises. Facebook actually dropped from 550 to 540 million users in the third quarter, and Facebook users over age 54 dropped from 16% to 10% in the last six months. Based on the data from the 2nd and 3rd quarters there is a significant slowing in the growth of the major Social Media tools.

Among the numbers are the interesting age group distributions of each of the networking sites. The data gives important clues of what each site is being used for in addition to who is using it.

Facebook’s Fire Cools
No one can dispute Facebook’s impact on the world. It is BIG, and with millions of posts and interactions each day, the influence of its users is the envy of every marketing professional. Traditional media professional and other old people will be tempted to look at the 3rd quarter data and declare that the Social Media ‘fad’ is over and on the decline. That would be a statement of ignorance.

Facebook 3rdQ 2010 DAILY visits

Facebook’s growth could not continue indefinitely and its amazing growth in users from 2008 to the start of 2010 was being fueled by a viral exploration of a new media that allowed people to connect in a way they never had before. Now that exploration has calmed and I believe we are seeing the coming of age of Social Media.

The drop of 10 million users during the third quarter is only significant in that it shows a leveling off of the growth. The average time on the site is over 23 minutes, which is much longer than the other three major U.S. Social Media tools (MySpace 14:40 mins., Twitter 13:10 mins., LinkedIn 9:50 mins.) That is important as more time spent means more interaction and more influence by users and advertisers.

Facebook reaches almost 57% of the people in the United States (35% worldwide) which is a staggering statistic. If USA Today could reach 57% of Americans (without giving the newspaper away to every hotel guest) and know that the readers were spending over 23 minutes looking at their paper they would probably be the only newspaper in the United States… and mega rich. As of March 2010, USA Today has a circulation of only 1.8 million compared to Facebook’s over 65 million visitors (based on cookies.)

3rdQ Facebook Users by Age

1stQ Facebook Users by Age

One statistic that keeps bouncing around in the Social Media world is that “women over 55 is the fastest growing group of Facebook users.” That it is old data. While the over 55 group had climbed to 16% at the end of March 2010, it is now the fastest shrinking age group and Facebook users under 18 years old have been the fastest growing group during the last six months.

Finally, 57% of the Facebook users are women, which is about the same as six months ago. That seems to confirm that Facebook is about ‘social’ networking and making personal connections. Facebook continues to be the place where buying decisions are influenced through small group interactions. Business and Marketing people will find that if they try to manipulate these discussions it will eventually backfire on them. Facebook is where business should LISTEN, not talk.

Twitter 3rdQ 2010 DAILY visits

Twitter Continues to Pause
The biggest surprise in the 3rd Quarter with Twitter was that it did not break the 100 million user mark. At the end of the 2nd Quarter it was at 96 million users, which was up by 16 million from the 1st Quarter. However, Twitter only grew by 2 million and now stands at 98 million users.

Twitter’s daily visits have leveled off for the last six months, and some might see this as an ominous sign for the hyper-fast post Social Media tool; however, this is deceiving as many Twitter users, (like myself,) don’t go to the Twitter site to use the tool, but rather use an application, like TweetDeck, to interact on the site. Thus the visit count would not be recorded as a site visit.

Twitter’s lack of significant growth in the number of users may be do to a continued lack of understanding of the value of the Tweet world and a period of constant ‘Fail Whales’ in the 2nd Quarter and early 3rd Quarter. The service has seemed to address the major problems in system overloads, but lately has had a return of a few service interruptions in the past few weeks. Obviously, if Twitter continues to have problems it won’t be able to survive in an environment where reliability is oxygen to users.

As for the lack of understanding of the value of Twitter, the service will struggle to grow until people can learn that the impact of Twitter is not in the posts, but the conversations and the URL links to other blogs and webpages. Twitter is like Headline News for new ideas and concepts. Often posts reveal a new approach or cutting-edge information that won’t be in the traditional public arena for months. That is why I still see Twitter growing if they can rid themselves of service interruptions.

3rdQ 2010 Twitter users by Age

1stQ 2010 Twitter users by Age

One interesting development in the latest data is the shift in the age demographics. Twitter seems to have made a shift to younger adults. The 18-34 age group is up by 16%, while the 35-64 age group is down by 9% from six months ago. Also, teenagers (under 18) have dropped by 6% since the 1st quarter and now make up only 4% of all Twitter users. The apparent dislike for Twitter among teenagers is a clear age defining characteristic. I have had two separate teenagers say to me “You’re not on Twitter, are you!?”

Apparently Twitter gives you cooties. Who knew?

MySpace Back From the Brink?
I have predicted the end of MySpace for sometime, but in the 3rd quarter it did something bizarre … it gained users. It had dropped 14 million users from the 1st to the 2nd quarter and then it gained one million users back in the 3rd quarter. MySpace now stands at 67 million users. Not earth-shaking, but certainly noteworthy. LinkedIn would sacrifice several interns to have that many users. MySpace also has more women. Female users consist of 64% of the MySpace population.

MySpace 3rdQ 2010 DAILY visits

The reason? Well, no other major Social Media tool lets you search by gender … and age … and height … and race … and body type … and sexual orientation … are you getting the picture? MySpace is a social dating site as much as anything else and lonely people make up a lot of our world’s population. So maybe MySpace has found its niche as a romance network and that will stop the freefall of the past two quarters.

3Q 2010 MySpace users by Age

3rdQ 2010 MySpace users by Age

Yes, there are more teenagers on this site than most (14%), but 63% of the users are between 18 and 44 years old. One caveat. MySpace has limited the ‘find-a-friend’ search function to give the results of people age 18 and over. That is a smart move to protect minors; however, some teenagers have simply listed themselves as an age of 18 or older to circumvent the limitation. I caught a few teenagers that list themselves as 19, but on their main page description they indicate their real age. This is likely why the number of ‘under 18’ users have dropped from 34% to 14% in six months.

LinkedIn Drifting in Niche
The 3rd quarter statistics show that despite millions of people looking work, the business person to business person website of LinkedIn is not growing. It is at 41 million, which is actually higher than the end of 2nd quarter, but the same as the end of the 1st quarter.

LinkedIn 3rdQ DAILY visits

Like MySpace, LinkedIn has found its niche. Essentially, LinkedIn is a business-oriented website that provides a job exchange service. Most users are using the networking website as their digital résumé in order to attract job offers. In the Tom Peters ‘Re-Imagine’ business world where branding is a key element of survival, LinkedIn is Mecca for self-promotion.

Unfortunately, LinkedIn is not as successful as Facebook and Twitter in two-way interaction. Both of those Social Media tools do not have as much as of an ‘agenda’ by individual users as LinkedIn. Users of the business-oriented network seem to spend more time professing what they know and don’t spend as much time listening to others. This is the traditional media model of one-way communication, which is the style of communication that Social Media has displaced. For some, the self-promotion run amuck style of some LinkedIn users is a turn off that may hurt the site in the long run.

3Q 2010 LinkedIn user by Age

1stQ 2010 LinkedIn users by Age

It will be interesting to see how LinkedIn will fare as the business-caused Recession of 2007-09 eases and people are employed again. LinkedIn could be a key to a sudden labor shortage in 2012 as those companies with the best opportunities will be able to target and recruit candidates through LinkedIn, leaving other employers to either compete or settle for what’s left over.

Age and gender on LinkedIn reinforce the business-world orientation as more males (57%) are users and the distribution of the age groups reflects the working world. Interestingly, while LinkedIn still has more users over 54 years old (15%), this is 7% drop from the 1st quarter. That is offset by an 8% jump of the 24-34 year old users in the last six months.

4th Quarter Predictions?
I believe we are seeing a refinement of each of the big four Social Media tools. Facebook has become the social sharing network, Twitter is the thought-provoking, learning network, MySpace is the social relationship network, and LinkedIn the branding and résumé network. The demographics are settling in to reinforce the existing nature of each of the networks. Facebook, MySpace and LinkedIn will likely end 2010 about where they are now unless something viral either cause a rush of new users, or sends people running away. Twitter still has potential significant growth, but I don’t see that happening in the 4th quarter.

The volatility of the Social Media networks have made it difficult to understand what they will eventually represent in our world; however, now that there seems to be a calming of the major networks, the value and purpose is becoming clearer. That will allow the big four to lock in their market; however, it will also open the door for other networks to identify areas of opportunities and weakness. My prediction is that 2011 will be the entrenchment of the Social Media, followed by more competition by other networks seeking to improve or offer alternatives to the established services.

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Richmond Embassy Suites: The best at true Hospitality!

01 Friday Oct 2010

Posted by in Branding, Business, Customer Relations, Customer Service, Employee Retention, Ethics, Honor, Information Technology, Internet, Lessons of Life, Management Practices, Passionate People, Pride, Public Relations, Random, Re-Imagine!, Recreation, Relationships, Respect, Rotary, Rotary@105, The Tipping Point, Tom Peters, Travel, Women

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

In August I stayed in hotels in seven different cities (Dallas, TX; Bloomington, IL; Chicago,IL; Minneapolis, MN; Norfolk, VA; Richmond, VA; and Virginia Beach, VA..) In a previous post I expressed my displeasure with pay-for-Internet at the Millennium Hotel* in Minneapolis, which was slightly unfair as the hotel was a pleasant, although completely expected, experience. As a people warehouse the Millennium Hotel fits the mold that is typical of most business traveler-type hotels. However, out of the seven hotels of which I was a guest, there was one that made a big impression on me, the Embassy Suites in Richmond, Virginia.

(*Millennium Hotel: Go Away)

The main entrance the Embassy Suites in Richmond

The Embassy Suites hotel in Richmond, Virginia is not a flashy, Vegas-type hotel. From the outside it is a modern, yet modest building tucked back from busy streets; however, access to the Interstate is nearby. Like many hotels it is surrounded by a massive asphalt parking lot; however, the entrance is behind a landscaped island of trees. The great thing about the foliage is that it creates the sense from the outside that this hotel is not just a people warehouse like so many others.

After entering the hotel one doesn’t have to hunt for the Registration Desk as it is positioned in such a way that it oversees the entrance area, but it doesn’t intrude into the path of a guest walking to their room from the parking lot.

The Inner Courtyard

The striking feature of the hotel is the inner courtyard. I have seen this design before, but it was a refreshing change from institutional interior designs of most people warehouses. The open interior gives a community feel to the hotel rather than the impression that you just walked into a U-Store-It facility, as is the feel of most hotels. The interior landscaping and flowing water features create a tropical environment. This hotel was number six for me during my August travels and it was a refreshing change from the five previous corporate institutions of I had visited.

My room was also vastly different from my previous guest experiences. This was a true ‘suite’ and not just a room with a bed. There was a clearly defined living space with a television, desk, couch, and bar area. The bedroom was in the rear of the suite with a door that would allow privacy if two people were in the room and one wanted to watch television or work while the other one slept. The bedroom had a counter with running water and its own television. The bathroom was in the transition area between the living room and the bedroom offering easy access from both rooms. The entire suite is a brilliant design.

Of course the Internet was free (my minimum requirement) and I had no problems making a connection. If needed, I could have easily made the suite my home base. It is a comfortable living and working environment. I would have had no concerns about hosting small meetings in my room. I had everything I needed except for my Starbucks Chai Tea.

The Embassy Suite's Dining/Reception Area

One of my issues with most hotels is the assumption that people don’t want to interact with other people when they stay in a hotel. I’m as reclusive as most, but to visit a city and never come out of my hotel room is what creates that ‘warehouse feeling’.

At the Richmond Embassy Suites the open feel of the courtyard was put to good use by encouraging guests to congregate twice a day for a free manager’s reception each evening and free breakfast each morning. The reception offered adult and non-alcoholic beverages along with a variety of choices of snack items (hors devours.) The breakfast was as good or better than the breakfasts I’ve eaten at eaten at most Sunrise Rotary Clubs. Those who have eaten a breakfast at a Rotary Club may think that may not be saying much, but I typically pay $14 to $15 to eat a Rotary breakfast and this was free. The free gatherings were the most ‘value-added’ service I have experienced in a hotel.

From the few interactions I had with the hotel staff it was obvious that the Chief Executive of this property, Kathleen Lyons, and her staff understood the meaning of the word ‘guest’. I was always treated with respect and a smile. It was apparent that they were pleased that I choose their hotel over the other options in Richmond.

Giving great customer service is not that mysterious, but it requires that everyone from the bottom (no offense intended, Ms. Lyons, but in my world that means you) up to the top (the maintenance and housekeeping staff) must enjoy what they do and enjoy working with people. It was clear that the Embassy Suites in Richmond is not run by ‘management’, but managed through leadership. Bravo to Ms. Lyons and her team!

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What most non-Rotarians don’t know about Rotary

28 Tuesday Sep 2010

Posted by in Branding, Club Leadership, Communication, Customer Relations, Customer Service, Membership Recruitment, Membership Retention, Passionate People, Pride, Public Relations, Relationships, Rotary, Rotary@105

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

Most non-Rotarians have little background information on Rotary and when we try to explain what Rotary is about we usually discuss the aspects of Rotary for which we are most familiar. Often a Club will become involved in eight to ten programs or projects each year and Club members know and understand those programs but may be unaware of how many programs Rotary offers at a District level.

Each District has a menu of support services and program opportunities for its Clubs. The goal is to assist and improve Club operations as well as help develop effective local, regional, and international programs and projects. Each of the over 500 Rotary Districts are supported by a staff of Rotarian volunteers to assist in the formation and maintenance of each project or program.

The unique aspect of Rotary is that a single member typically initiates her or his Club’s participation in a new project or program, so a new member can often take the lead in expanding the service opportunities in her or his Club, while also becoming connected to the Club through involvement. When talking to a potential member, every Rotarian should remember that a non-Rotarian might be the person to ignite a new fire in the Club.

The scope of Rotary
In any given year our Rotary District (5190) there are typically almost 150 District positions staffed by volunteer Rotarians representing many clubs.  Among the positions are:

A District 5190 Leadership Meeting

  • 15 Current or Future District Governors and Assistant District Governors assisting the Clubs
  • 2 District Officers (Secretary and Treasurer)
  • 41 District Project and Program Committee Chairs including
    • Membership
      • Development
      • Extension
    • Clean Water
    • Health & Hunger
    • Literacy
    • Community Service
    • International Service
      • World Community Service
      • Partners and Projects
    • Vocational Service
      • Ethics Project
      • Speech Contest
      • Music Contest
    • Youth Services
      • Rotary Youth Leadership Awards
      • Interact Clubs (Ages 12 to 18)
      • Rotaract Clubs (Ages 18 to 30)
      • Rotary Youth Exchange Program (including Safety, Orientation, and Procedure Training)
      • New Generations Exchange
    • Club Administration
      • Club Awards Program
      • Newsletter Editor
      • Visioning Team
      • Rotary Academy
    • Public Relations
    • Rotary Foundation
      • Annual Giving
      • Ambassadorial Scholarships
      • Peace Fellowship
      • Foundation Alumni
      • Major Donors/Permanent Fund
      • Paul Harris Society
      • Group Study Exchange
      • Polio Eradication
      • District Simplified Grants
    • District Assembly
    • District Webmaster
    • District Directory
    • District Conference
    • District Nominating Committee
    • District Finance Committee
  • 80 (approximately) additional Club and District support positions and/or committee members

Each of the functions listed above may have multiple sub-functions, projects, and/or programs. The scope of Rotary is larger than most Rotarians realize, but non-Rotarians also have little, if any, understanding of the dynamic projects and programs that operate under the banner that is Rotary. Our 105 year-old organization has developed highly effective programs that are led by passionate volunteers who invest their time, money, and energy at the Club and District level. The Club and its members are the center of the Rotary universe, but our universe extends far beyond the Club. Rotarians and non-Rotarians should understand the full extend of our organization’s capabilities of service to the Club and to Humankind.

For more information about Rotary visit www.Rotary.org

For more information on Rotary District 5190 programs go to www.RotaryDistrict5190.org

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Rotary@105: Making Rotary Sexy

20 Monday Sep 2010

Posted by in Branding, Business, Club Leadership, Communication, Customer Relations, Customer Service, Ethics, History, Human Resources, Lessons of Life, Management Practices, Membership Recruitment, Membership Retention, Passionate People, Public Relations, Relationships, Rotary, Rotary@105, Social Interactive Media (SIM), Social Media Relations, The Tipping Point

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser - Rotary Public Relations Chair - District 5190

In 2008, Rotary International did a focus group study to discover the perception of non-Rotarians about our organization. It was an eye opener. In order to avoid a conditioned or biased response to the questions the participants of the study were unaware of who funded the study . While no cities in the United States of America were included in the focus group study, it is the best information we have to date about the Public Image (what other people think) of Rotary.  At the risk of airing dirty laundry, here’s what we learned:

Study Finding:
People are very cautious about ‘volunteering’

“In most cases individuals are inclined to volunteer, however they are very intent on maintaining enough ‘personal’ time, and they do not consider humanitarian efforts or volunteering as something for which they would give up their ‘personal’ time.”

What may look like fun to some may be scary to others

This is important to note because most Rotarians often remark that ‘giving back’ and ‘service’ is one of the reasons they belong to Rotary, and we tend to readily share with prospective members that volunteering is one of the positive aspects of joining a club. However, this seems to be something we LEARN AFTER we become Rotarians. By approaching potential members with an emphasis on volunteering, we may be dissuading, not persuading them.

We have to remember that all Rotarians usually pick the volunteer activities in which they participate based on their passion for the need. While ‘Service Above Self’ is our motto, the magic of Rotary is that most clubs offer a wide variety of projects and programs, which allow the individual member to choose how and where to invest their time, money, and/or energy. This makes volunteerism a rewarding experience, rather than an obligation. My experience is that every successful new project or program has had a single member who was passionate about the need and was able to excite the other members to join in. The great feeling we have about volunteering is something we learn by experiencing.
Study Finding:
Mistrust of Large Organizations

“An issue that came up in all three regions was the mistrust or skepticism towards large organizational structures …. Respondents also noted that there is a tendency to view smaller organizations as more effective in getting things accomplished at the local level.”

This finding is what caused me to start using the phrase, “All Public Relations is local.” A big billboard about Rotary International will not be as effective as a one license plate holder driving around town on the back of a member’s car. The face of Rotary is and always been the face of our members and those who benefit from our projects and programs at the local level. This is not to minimize the value of our regional and international involvement, but when talking to someone who might be interested in Rotary, they want to know about the club, not the mega-organization.

Study Finding:
Rotary’s Public Image

How Rotary is perceived: “business men, elite, secretive, older, wealthy, largely based on formal rules, inflexible, not sure that women are allowed into local clubs, associated with Free Masons, not ‘trendy’, not ‘sexy’.”

Every time I have presented these findings to Rotarians I have had some uncomfortable laughter, some squirming in the seats, and/or a small gasp. Deep down we know that these perceptions are valid. While we often become blind to the Public Image of our club, by visiting another Rotary club that is more than ten years old we often see how someone could have the perceptions listed above.
I have observed members in some clubs behaving in ways that would not normally be acceptable in a public environment. Professionalism sometimes gives way to fraternity-type behavior with rude jokes, harsh ribbing, and political references that are inappropriate in a business setting. Last year I listened to a speech by a prominent Past District Governor who began by making an offensive political-laced joke about our nation’s President and his wife. All of these behaviors are contrary to Rotary’s mission and our organization’s Constitution.
The challenge is to:  1) accept that we have a Public Image problem, 2) identify the behaviors and actions by clubs and their members that reinforce a negative Public Image, 3) educate the members, 4) perform a Public Image makeover. This process may begin with the Board of Directors, but progress will only be achieved with the acceptance and cooperation of every member regardless of position.
We have one uniting goal in the next 24 months, and that is to make Rotary ‘sexy’ again. Rotary was ‘sexy’ when Paul Harris and three other people created our organization 105 years ago. Within five years cities around the nation were falling all over themselves to start a Rotary club in their community. The unique combination of an emphasis on ethical business practices, friendship, and reaching out to others was the fire that made Rotary’s lamp so bright. It’s time we fueled that fire again.

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Dear Business Person: It is 2010. Please update your brain.

17 Friday Sep 2010

Posted by in Branding, Business, Communication, Customer Relations, Customer Service, Employee Retention, Government Regulation, History, Information Technology, Internet, Lessons of Life, Management Practices, Membership Recruitment, Membership Retention, Passionate People, Print Media, Public Relations, Re-Imagine!, Relationships, Rotary, Rotary@105, Social Interactive Media (SIM), Social Media Relations, The Tipping Point, Traditional Media, Website

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

Recently I listened to a presentation on how to network to increase referrals of potential customers. The speaker made her living by teaching people how to do this, so there is no doubt she knew her subject. Personally, I agree that face-to-face networking skills are critical if you are going to be in business, especially if you have direct customer contact.

However, she quoted statistics from a 2002 study done by the Chamber of Commerce on referral effectiveness based on the method of contact. 2002. That is where she lost me.

How far back is 2002? In 2002, the Department of Justice announced it was going to investigate Enron, the UN Security Council froze the assets of Osama bin Laden, Al-Qaeda, and the Taliban, the Winter Olympics were held in Salt Lake City, Utah, The US Secretary of Energy declared Yucca Mountain, Nevada to be a suitable nuclear waste depository, the Space Shuttle Columbia completed a mission to update the Hubble Space Telescope…it’s last before it would be destroyed on re-entry from it’s next mission in 2003, the United States led coalition invaded Afghanistan, A Beautiful Mind won Best Picture, United Airlines and WorldCom filed for bankruptcy, Congress approved a resolution to go to war with Iraq, and President George W. Bush created the Department of Homeland Security.

Columbia Space Shuttle Breakup in 2003

To some, it may seem like 2002 was yesterday, but when discussing a topic on how business referrals are made in 2010, quoting data from a single, eight year-old study makes me question the relevancy of any of the information provided. Note that the Internet was only eleven years old in 2002. The first Social Media site, Friendster was started in 2002. It wasn’t until 2003, that the more known sites of LinkedIn (May) and MySpace (August) were introduced. Facebook didn’t come on-line until February 2004, YouTube began a year later, and Twitter didn’t start until July 15, 2006.

The world of communication and business have changed dramatically in the past 36 months, let alone the changes over the past eight years. To discuss ‘networking’ from a perspective of the world in 2002 is to be in Denial* of the world of 2010. While ‘more experienced’ business people scoff at “these young people” and their Social Media, the reality is that referrals are being replaced by customer recommendations read off of blogs and other Internet sources. ‘Experienced’ business people can be angry, condescending, and ignorant all they want about the impact of Social Media on business…but it won’t change what has happened. Many people blame government regulation for business failures, but more businesses fail because of outdated business minds and practices than anything other cause and we are neck-deep in 2002 business thinking.

(*See Rotary@105: Grieving Change)

Face-to-face networking is important, but compare the number of face-to-face interactions/connections that a person can make in a day with the number of interactions/connections that can be made through blogs, LinkedIn, Facebook, and Twitter in an hour, and it becomes apparent that dismissing the power of Social Media makes a business person appear uninformed and outdated…sort of like a man who wears shorts, sandals…and black socks. That analogy may not make sense to some people, but then again, those people probably aren’t reading this blog…or any others.

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Selling Watered-Down Beer: The best spin campaign in advertising

10 Friday Sep 2010

Posted by in Branding, Business, Communication, Customer Relations, Customer Service, Ethics, Management Practices, Passionate People, Public Relations, Random, Rotary, The Tipping Point, Traditional Media

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

It is one of the best spin campaigns ever sold in the age of advertising. Few people would ask for diluted beer, but mega brewers have managed to make the ‘light’ in light…or lite beer seem like a health drink instead of one of the most clever advertising sell jobs in history.

Have you ever wondered what makes light beer, light? It’s a question most people don’t ask, but they should. Don’t get me wrong, making light beer usually is a different brewing process than brewing regular beer. Different enzymes are used to breakdown the carbohydrates, which helps reduce the calories; however, in the end the prime ingredient in most light beer is….water. Light beer is, at least in part, water-down beer. Of course, mega-brewers don’t put it that way. In fact, they go out of their way to avoid the subject, but to achieve any significant reduction in calories, some water must be added. One brewer’s motto is, “It’s the water, and a lot more,” but with their light beer the motto should be, “It’s the water, and more of it.”

One ad campaign that amuses me is the brewer that touts ‘only 64 calories’ with their light beer. I’m not an expert, but from my research, the only way you can get down to 64 calories is to add as much water as possible while retaining a beer flavor. That demonstrates the power of advertising. To create a product that people pay more to get less. Never underestimate how advertising can disguise the reality of a product and create an impression that the product has more value added by giving you less.

Lets not tell wineries about this.  We don’t need light wine.

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Rotary@105: Grieving Change

07 Tuesday Sep 2010

Posted by in Book Review, Branding, Business, Club Leadership, Communication, Crisis Management, Customer Relations, Customer Service, Information Technology, Internet, Lessons of Life, Management Practices, Membership Recruitment, Membership Retention, Passionate People, Print Media, Public Relations, Random, Re-Imagine!, Relationships, Rotary, Rotary@105, Science, Social Interactive Media (SIM), Social Media Relations, The Tipping Point, Traditional Media, Website

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by Paul Kiser
USA PDT  [Twitter] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

On October 16th, our Rotary District (5190) will hold the second annual Public Relations (PR) seminar. It is a difficult topic because PR is a vital component to all aspects of Club operations, especially Membership recruitment and retention; however, for very ‘human’ reasons many members/clubs may not ready to listen to many of the key concepts because they are not ready to face the reality of the current situation.

To understand the resistance to the topic I need to refer to the 1969 book by Elisabeth Kübler-Ross, On Death and Dying and her model of the grieving process. Her book became a major work in the fields of psychology and counseling for decades and while many experts now reject the idea of ‘stages’ of grieving, her model serves to remind us that people are influenced by their emotional state and some information will not be easily accepted when change intersects with tradition.

On Death and Dying by Elisabeth Kübler-Ross

In the book, Kübler-Ross proposes that the grieving process involves five stages that help us recover from personal crisis back to a more balanced life where the incident or loss does not rule our lives and influence our decision-making. The stages are: 1) Denial, 2) Anger, 3) Bargaining, 4) Depression, and finally, 5) Acceptance.

So what is happening in Rotary that would cause a member or a club to be in crisis? Two issues come to mind.

Membership in Crisis
First, Rotary has been battling a significant membership issue for almost 15 years. For example, in 2005, Rotary Zone 23 (now re-zoned as Zone 25) had 568 clubs consisting of 33,921 members and five years later (2009) Zone 23 consisted of 33,304 members in 588 clubs.  While the number of clubs had increased by 20, total membership had decreased by over 600 people. This is only about a two percent loss over five years; however, the problem is that, 1) this has been a consistent trend for most of the last 15 years, and 2) every Rotary International President for the last nine years has pushed for increased membership as part of the key programs for his year.

The facts are simple: Rotary is bleeding membership and clubs are getting smaller (in Zone 23, an average of 3 members smaller over five years.) In seven years Rotary has brought in 1.2 million members…and lost 1.2 million members. Membership in North America, and many other western countries is on the decline. If current trends continue, over the next 15 to 20 years many community Rotary clubs will shrink until they are no longer relevant and then disband. Many small clubs are already facing this problem today and have less than five years to solve their membership crisis.

A New Business World
The second issue is external to the Rotary club. Business and communication is undergoing a rapid change and all the rules are changing. The Internet and, in particular, Social Media have challenged how business operates in a world where one person can be heard by millions, and if that person is talking about your product or service you have to be plugged in and listening or be lost in ignorance of what your customers and potential customers know about you. This new world demands personal involvement, yet many people (especially older business people) don’t want to be forced to participate in Social Media tools that put them and their company up for public scrutiny. There is a growing division between older professionals that tend to reject Social Media tools and younger professionals that tend to accept them. Guess in which category most Rotarians fit?

Action Obstructed by Grieving
Public Relations offers potential solutions to both issues. By becoming aware of the Club’s public image (how non-members perceive Rotary) the members can adapt their PR plan to maximize the value of the club projects and programs to help non-members understand the purpose and scope of Rotary. Members can also be aware of behaviors and information that reinforce negative stereotypes that non-members may have about Rotary, then avoid situations that might damage the reputation of the club. PR can also help members understand and adapt to the Social Media tools and use them to the best advantage for the club…and their business.

The problem is that discussion of these solutions is premature when someone is grieving. It is akin to telling the man who just lost his wife that, “there are plenty of fish in the ocean.” The combination of scrambling to understand a new business environment while facing a slow bleed of Rotary club members has many Rotarians in the one of the stages of grieving.

For some it is the first stage: Denial:

Stages of Coping with Loss

“There is no membership crisis. The world is the same today as it always has been. Our club is fine, we’ve been around for decades and we will continue to be here for decades to come.”

For others it is Anger:

“This is our club! We don’t need to change, if someone wants to belong to our club they need to change to our way of doing things! Don’t tell me what to do, I’ve been around a lot longer than you! Most of our members aren’t even on Facebook!”

For some it is Bargaining:

“We need QUALITY members, not more members. What help are we going to get to make these changes? How do you know this will work? How do I know this is not just a waste of time?”

And for some it is Depression:

“….”

Of all of the stages, a club should fear depression the most. Apathy and membership are never good combinations; however, for some members who are overwhelmed by change, the depression over the issues will open the door for them to quietly leave Rotary. In some cases, a member who is entrenched in tradition may not be able to accept change and leaving Rotary is the only option, but hopefully we can be aware that grieving change is part of the process and present the message in a way that will help members to the final stage of grieving, Acceptance.

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Communication: Repetition of message does not increase awareness

03 Friday Sep 2010

Posted by in Branding, Business, Communication, Crisis Management, Customer Relations, Customer Service, Ethics, Government Regulation, Information Technology, Internet, Lessons of Life, Management Practices, Passionate People, Public Relations, Relationships, Rotary, Social Interactive Media (SIM), Social Media Relations, Traditional Media, Travel

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by Paul Kiser
USA PDT  [Twitter] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

“….Welcome to Flight 2333 to Norfolk….”

August was a busy month of travel for me. On four round trips in one month I spent over 40 hours on sixteen Southwest Airline planes and heard the pre-flight safety briefing 19 times. That would theoretically make me one of the most knowledgeable passengers on flight safety. One would think that I could repeat the flight attendant patter verbatim by now. But I can’t. I travel enough that the safety briefing is merely spam to me.

“…We would like to point out a few of the safety features on this Boeing 737. To fasten your seat belt slide the metal tab in the buckle. To release the belt pull up on the tab on the top of the buckle…..”

Attention will be paid to that which is unique

I know that this briefing is intended to provide a safe traveling environment and maybe there is someone who is allowed out in public who doesn’t know how to buckle a seatbelt, but really, does mindless repetition make us safer? The answer is ‘no’. Repetition can be useful in helping the brain hardwire complex information, but when the information is perceived to be too basic most people stop listening.

The failure of the passenger pre-flight briefing to inform serves as a good lesson for business people. A lot of smart people should know this, but I still find business men and women who live by the erroneous assumption that the more they get their message out, the more successful will be their endeavor. I have one group that sends at least one email to me everyday, and sometimes more than one email. I support the purpose of this organization, but I am considering blocking their emails because they have become spam to me.  When I open their email I read a few words and I file it away.

A ‘Hoser’ is what I call people who flood a Social Media tool with posts. On Twitter, I never read Tweets from someone who has multiple posts in quick succession. Sometimes people use applications that allow the Tweets to be posted on a schedule, which I think is a mistake.  When I see the same face on five consecutive posts I consider ‘unfollowing’ them over reading what they have to say. The same is true on Facebook and LinkedIn.

More about using Social Media in Aristotle’s Rules of Social Media

To be successful Public Relations and Marketing professionals must accept that a message must be more than a pre-flight briefing. If the message is just about repetition then not only will the audience not get the information, they will be annoyed by it. This is a hard lesson for traditional media ‘experts’ because they lived through a time when the audience had to get spam to get the entertainment (commercials embedded in television shows or ads embedded in magazine/newspaper articles.) Traditional media was designed to force the audience to accept the spam, but the Social Media is oriented to the audience, not the advertiser, and this means the reader has the power of the ‘off’ switch. To be heard, and understood PR/Marketing professionals must reject the old annoying ways of the past and use style, not repetition to get the message out.

As for the airlines, the pre-flight briefing will never go away even though it is completely ineffective. The briefing has little to do with informing people and everything to do with asserting the authority of the flight attendants. By standing up and lecturing the passengers on what passengers can and can’t do, they are identifying themselves as the people in charge, which is important in the unlikely event of a crisis on the plane.

However, the problem is that when your message is largely being ignored because it lacks content, the risk is that passengers won’t listen to other announcements. That’s another important lesson for PR professionals.

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Millennium Hotel: Go away, spend your money elsewhere

27 Friday Aug 2010

Posted by in Branding, Business, Communication, Customer Relations, Customer Service, Information Technology, Internet, Lessons of Life, Management Practices, Passionate People, Public Relations, Re-Imagine!, Rotary, Social Interactive Media (SIM), Social Media Relations, The Tipping Point, Tom Peters, Travel

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by Paul Kiser
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Paul Kiser

This week I spent a couple of nights in the Millennium Hotel in downtown Minneapolis, Minnesota, USA. Now this is a good hotel and it has everything you would expect for the business traveler. The rooms are clean and reasonably updated. The staff is pleasant. It has a restaurant and a bar (although it struck me that maybe both were afterthoughts in the lobby design.) It has a pool on a fitness room (I didn’t go to hunt for them, but I’m assured that they exist.) It has a television with a selection of stations and optional pay-for-movies.

They have everything you might expect, save one item. Free WiFi/Internet. To access the Internet in the Millennium Hotel in Minneapolis you must add $10 (okay, $9.95) to the daily room rate.

Some business practices reflect old ideas.

This means one of two things. Either they decided to contract out their Internet service and they are getting some kind of kickback, or they have a bean-counter in their organization that has said to management, “Hey, we can boost our room rate by $10 if we charge for the Internet!”

It doesn’t matter why they charge for Internet service because what it says to me is simply, “We would prefer that you go elsewhere for Internet service.” In my case, I go to Starbucks where I can get online for free…and buy my tea with my extra $10…and then, rather than go back to the hotel to eat I find a place near Starbucks. Is that what they want their guests to do? Apparently.

A better place to spend $10/day

Next month I will be going back to Minneapolis and I will find my hotel on Priceline.com. That may land me back in the Millennium Hotel and once more I will go outside the hotel to connect to the world…and spend my money. I wonder if they have a clue? I seriously doubt it.

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Is it time to fire yourself?

27 Friday Aug 2010

Posted by in Business, Communication, Consulting, Customer Relations, Customer Service, Employee Retention, Government Regulation, Higher Education, Human Resources, Lessons of Life, Management Practices, Passionate People, Public Relations, Re-Imagine!, Relationships, Rotary, Tom Peters, Universities

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by Paul Kiser
USA PDT  [Twitter: ] [Facebook] [LinkedIn] [Skype:kiserrotary or 775.624.5679]

Paul Kiser

One thing I have observed in government, hospitals, universities, and small business management is that all of those fields tend to be people collectors. What I mean is those particular fields have a high incidence of people who have passed their expiration date.

Why?

Government, hospitals, and universities tend to: 1) pay their employees well, 2) offer good to great benefits, 3) offer prestigious positions, and 4) have incompetent human resource professionals. A person who lands in any of these three fields may be an excellent performer for several years; however, every human being needs new challenges and after five to seven years they lose the excitement of the job. The problem is that because they have moved up to the top of the pay scale (pay scale: an example of HR incompetence) the person discovers that if they were ever to leave that job they would have to: 1) take a pay cut, 2) risk losing their excellent benefits, and 3) not find as prestigious position as what they have in their comfy current job.

Now that excellent performer is trapped like a caged animal in a job that has no challenges for them. The result is what we have in America today. Government services, hospitals, and universities that are operated by uninspired people who’s most important priority is to go home at the end of the day. And where is the human resources professional? Standing there preaching that all those systems they created that cause employee burnout are absolutely vital for retaining employees.  People collectors.

Show me an organization that prides itself on long-term employees and I’ll show you a group of people who shoved innovation and creativity into a file drawer decades before.

So why did I include small business owners in with this unhappy, unproductive group of people?

For small business owners the trap of mediocrity is different, but it has the same result.  Initially, a new business owner is excited by the challenge of creating a business from nothing. If they are successful they find the satisfaction of beating the odds, which is like a drug to a business owner. Then comes the fear of losing everything they built. That fear always, always, always leads to becoming conservative. Don’t take chances and don’t risk failure. But it doesn’t stop there.

Eventually, the intelligent business owner realized that his/her business has become stagnant. He/she then tries a series of half measures that stirs the pot but doesn’t make anything new happen. They shake up their sales team, join a peer group (they serve the same function as HR), purchase clever productivity software, or…God forbid, hire a consultant. The result is a temporary change in activity that fails to address the real problem. Fear of failure. Thus, the small business owner becomes a people collector, and they are the one collected. Stuck in a place they can’t get out of and yet, don’t want to be.

My best advice I can give to a small business owner who is stuck in this trap? Fire yourself. Put someone in charge of your company, expect that they will drive it into the ground, and go out and build a new business. At the very least you will no longer live in fear, but you will more alive than you have been in years.

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