The Role of Blogging in Financial Communications

For PR and IR professionals interested in the role of blogging and the social media in financial services, private equity, and investment banking communications, check out the article by Davis D. Janowski in InvestmentNews that addresses the conflicting views of blogging held by financial advisors, the Financial Industry Regulatory Authority (FIRA) and the Securities and Exchange Commission (SEC).

Financial advisors see their blogs as “a harmless, inexpensive technology” that facilitates communication with their clients. FIRA views blogs as ads that require supervisory review. And the SEC contends that blogs should be treated as a company statement.

The bottom line? To avoid compliance problems, be aware of what you are saying in your blog. Keep your communications general and avoid mentioning specific transactions, products or equities by name. For more information, check out these links:

• Certified Financial Planner Board of Standards’ recently updated Standards of Professional Conduct
• “FINRA Provides Guidance Regarding the Review and Supervision of Electronic Communications”

• The SEC’s “Commission Guidance on the Use of Company Web Sites”

How to Sabotage a Meeting

A Simple Sabotage Field Manual — produced in 1944 by the U.S. Office of Strategic Services, the predecessor to the CIA — was recently featured on the popular blogspot Boing Boing.

Among the tactics recommended to saboteurs in the WWII-era manual are techniques for “general interference with organizations and conferences.” Sadly, many are standard operating procedure in some New York City PR and IR firms … though, happily, not at Makovsky + Company!

1. Insist on doing everything through “channels.” Never permit short-cuts to be taken in order to expedite decisions.
2. Make “speeches.” Talk as frequently as possible and at great length. Illustrate your “points” by long anecdotes and accounts of personal experiences. Never hesitate to make a few appropriate “patriotic” comments.
3. When possible, refer all matters to committees, for “further study and consideration.” Attempt to make the committees as large as possible — never less than five.
4. Bring up irrelevant issues as frequently as possible.
5. Haggle over precise wordings of communications, minutes, resolutions.
6. Refer back to matters decided upon at the last meeting and attempt to re-open the question of the advisability of that decision.
7. Advocate “caution.” Be “reasonable” and urge your fellow-conferees to be “reasonable” and avoid haste which might result in embarrassments or difficulties later on.
8. Be worried about the propriety of any decision — raise the question of whether such action as is contemplated lies within the jurisdiction of the group or whether it might conflict with the policy of some higher echelon.

It’s a cautionary tale for PR, IR, branding, financial communications and B2B marketing communications firms — and, indeed, for all consultants in the professional services space!

Microsoft + Yahoo: Another Perspective

There’s been lots of coverage in the mainstream media about Microsoft’s proposed acquisition of Yahoo. Those in favor say that the merger could strengthen both companies and create more shareholder value than each company could create on its own. Those against it say that Microsoft’s offer substantially underestimates Yahoo’s worth.

If you believe that the success of any merger depends to a significant extent on the willingness of employees to embrace it, then Microsoft has some problems ahead of it.

On his “Tech Your Universe” blog, Yahoo employee Nick writes, “I estimate that 1 in 10 Yahoos will refuse to work for Microsoft.” After giving three reasons why the idea of working for Microsoft is “awful,” Nick goes on to say, “I’d be embarrassed to admit that I worked for Microsoft, and having it on my resume would be detrimental to my career.”

Apparently he’s not alone in his sentiments.

This is a public relations battle that is likely to be fought in the boardroom, the courtroom and the vastness of cyberspace.