Management Newsfeed Update

Excuse the shameless pitch but I feel compelled to tell you about the new Soul Patch album, Sooner or Later.  Soul Patch is a band that includes my partners Ryan and Jason.  Sooner or Later is the band’s aptly named second album (aptly named because it was 6 years in the making).  The band’s music is a mix of classic rock, a bit of funk and soul spiced with great rhythm and outstanding musicality.  I really like their style and this new album is fantastic. 

Here are a few links to check out to meet the band, sample the music and buy the album:

Soul Patch Web Page, Facebook page and schwag

Sooner or Later Album Page

Buy the album at CD Baby, iTunes, Amazon

I don’t know what it is about the last few weeks - maybe the change of season; maybe something in the water - but I’ve been absolutely amazed at how often people have showed a complete lack of comprehension for who was in the room with them. 

This may sound more calculating than I intend it to, but I think its a good practice to always consider who you’re talking to before you start in on a conversation.  This is especially true when you’re negotiating for something, making a request or otherwise trying to drive to a specific outcome.  I’ve witnessed several pretty amazing examples of a complete lack of thoughtfulness around this notion of late.  From making idle (and counter-productive) threats, to inappropriate requests, to outright lying (which was sure to be uncovered). 

Stop and think…then talk.

I attended a star-studded breakfast this morning at New York’s Plaza Hotel where Disney CEO Bob Iger was interviewed by Ken Auletta of the New Yorker Magazine under the auspices of the Newhouse School of Journalism. Here are some of his most important comments:

1) “Windowing”—Disney will release Camp Rock, a made for TV movie featuring the Jonas Brothers on sequential evenings, first on Disney Channel, then ABC Network, ABC Family Channel and ABC.com. By contrast, Dancing With The Stars will appear first on ABC Network, then on ABC.com. Iger believes this approach, staggered release dates on cable or broadcast before digital, maximizes awareness and advertising revenue.
2) Global Markets—There is no homogenous global market, especially in film. Media companies must be creators, not just exporters, of product. Disney made an original film in Mandarin last year. There is still demand for US television product, such as Desperate Housewives, but the content needs to be created locally versus doing voice-overs in local language. He considers ABC’s most successful prime time dramas as global brands.
3) Social Networks—Disney’s experience with Club Penguin indicates that young consumers reject marketing of the site, preferring to spread the word themselves, so they feel ownership in the property. “They have a visceral reaction in being marketed to; we have to constantly upgrade and improve the site based on consumer feedback,” he said.
4) Multiple Sources of Information—Access to multiple sources will change the way stories are told. Today, ideal skills are creativity, technology (in presentation and on platform) and globalization. We need to have the artist with a great idea push the technology people to present the story better (and vice versa).
5) Local News Drives Differentiation—The key to success for a local broadcast station is news. News people are in control of their own destiny. They need to contend with new consumer demands on access from all platforms and speed to market.
6) Simplicity—Iger spent time describing a successful consumer model (iTunes) and then was frank about the failure of the ESPN phone. He said that educated sales people are an often overlooked aspect of the value chain—a brand can pull you into the store but there has to be magic at the moment of purchase.
7) Brands—There are two brands at his company: Disney and ESPN. While ABC is a destination, the ABC brand doesn’t drive behavior. Its properties, such as Lost or ABC News are what determine viewership.

For the PR profession I think Bob’s observations means that we need to have big ideas that can work globally, but must emphasize local content and connection. We should be conscious of the trend toward “repurposing” of information across platforms, by appending video and offering opportunities for consumer generated content. We should be very mindful of the reticence of young consumers to accept marketing, and our programs need to have room for spontaneity and innovation based on listening and feedback. Finally, we must have substance in our content—Iger’s point about local news being the differentiator can be extrapolated to our business. I look forward to your comments.

I attended a fascinating briefing on Energy Future 2050 on Monday night at the Council on Foreign Relations in New York. Shell CEO Jeroen van der Veer led the discussion (Disclosure – Shell is an Edelman client).

Key points:

There are three hard truths about energy:

a) energy demand in world will double by 2050 due to 50% population growth and rise in incomes so many more people can afford to drive
b) supply of energy cannot meet that demand based on conventional oil and gas alone—will need renewables, nuclear etc—partly because the Easy to Get Oil is shrinking as percentage of total
c) huge issue of CO2—likely to see rise in acceptable standard to 450-550 parts per million

There are two possible scenarios:

First is every man for himself (actually every government for itself). There will be a surge in demand for coal, which fills the supply gap but causes greenhouse gas emissions to rise. We will see second generation bio-fuels which don’t compete with food sources and more centralized solar/wind power generation.

Second is global rules of the game. A coalition of business, NGOs and government will make change together, as in California. Incentives are introduced for broader use of wind/solar; carbon capture and storage comes to scale. CO2 emissions are priced so business can have certainty. Forty percent of cars will be powered by electricity and the other 60% will have much higher miles per gallon.

On specific forms of alternative energy:

1) Second generation bio-fuels can be used for transport. They are based on nonfood parts of plants such as stems, first generation bio-fuels have driven up the price of foodstuffs
2) Hydrogen fuel cells can power cars but there is perceived safety risk
3) Heavy oil and shale—huge reserves but big CO2 problems in production

On hydrocarbons:

1) Need carbon tax to raise price of gasoline. Note that European cars are 40% more fuel efficient than American cars because gasoline costs twice as much
2) Coal and nuclear are the “balancing fuels”, not oil and gas. This means we can create supply quickly but there are side effects with each of these options
3) Nuclear will decline as percentage of total energy production, because so many plants built 20 years ago will be decommissioned. The uranium mining and disposal system for waste must be rebuilt, while new construction of plants must accelerate
4) Need cap and trade system in the US to cut emissions; also congestion pricing in cities
5) Need efficiency standards on buildings, cars and appliances to make sure we are progressing on learning curve to use less energy

Trade-offs need to be made explicit for all parties; there will be no free lunch and the status quo is not acceptable given climate change and fast-rising price of energy. There is a critical role for public relations in this evolving market place. As a New York City resident, I have been pleasantly surprised by the turn in public opinion on congestion pricing, so that 70% of city residents are now in favor of the $8 tariff for driving in the central business district. This was achieved through intensive media relations and a stark ad campaign. There were also forums for consumer input, including town hall meetings or via the web on Campaign for New York’s website. Behavior change will not come with price incentives alone; there must be an understanding of the benefits to all of us.

I look forward to your comments.