Thought Leadership in Action

Thought leadership is an important strategy in the tool box of virtually all PR practitioners, whether they work within a corporation, or as a consultant in a public relations firm. At Makovsky + Company, we define “thought leadership” as “building and promoting the expertise and/or image of an individual regarding the issues, trends or personal qualities that key constituents are most concerned about.”

At this point in time, the issues, trends and personal qualities that most concern the American public are 1) the current financial crisis and 2) the personal qualities of the candidates for president and vice president of the United States.

If you’re a senior corporate executive, you probably want to steer away from commenting on the presidential race. (Whatever you have to say automatically runs the risk of alienating half your constituency.) But you can certainly address the upheaval in the credit markets.

Procter & Gamble Co. Chairman-CEO A.G. Lafley did precisely that, when he urged congressional passage of a financial rescue plan in his op-ed — “How [the] Financial Crisis Affects You, and Why You Should Sound Off” — which ran in the October 1 issue of the Cincinnati Enquirer.

Lafley notes that “consumers are feeling the credit crunch very directly” and some P&G suppliers are “hampered by the inability to get the capital they need to run their businesses.” He calls on Washington to come up with a proposal that Americans can support and urges folks on Main Street “to let our legislators know that it’s impacting them.”

This is thought leadership at its best. It serves to underscore the fact that consumer understanding is one of Lafley’s — and, by extension, Procter & Gamble’s — core strengths.

“Bailout”: A Failure to Communicate … Accurately

Words matter. That’s especially true for public relations professionals in industries subject to regulatory oversight, such as investment banking, financial services and insurance.

The legislation that was originally introduced under the title “Troubled Asset Relief Program” and evolved into the “Emergency Economic Stabilization Act of 2008” was more popularly referred to by the average citizen — and quite a few legislators — as the “Wall Street Bailout.”

According to Wikipedia, “bailout” is a term used to describe a situation in which “a bankrupt or nearly bankrupt entity, such as a corporation or a bank, is given a fresh injection of liquidity, in order to meet its short term obligations.” Please note: a “bailout” would not be available to a consumer swamped by debt. And that may be at the crux of the overwhelmingly adverse reaction of American citizens to the initial proposals for averting the financial crisis.

In an article entitled “Main Street's Rage at the Financial Crisis,” BusinessWeek quotes Carol Madura, a waitress in her 50s, on the topic: “I brought up my kids to work hard and save money. Now what? The rich are getting bailouts. … The government just keeps taking our money and giving it to people who don't deserve it. We should be worried about those who are really struggling.”

If you’re involved in financial services public relations, insurance PR or investment banking PR, I’m sure you’ll agree that “bailout” is an altogether inadequate way to describe a proposed solution to a complex economic problem that threatens the financial well-being of all Americans.