Hyatt PR Hell a Lesson in Open Media

Hyatt Hotels is making all the wrong moves in its PR disaster that is spreading across the country.

The Hyatt Regency Boston, the Hyatt Regency Cambridge, and the Hyatt Harborside fired 98 housekeepers on Aug. 31, replacing them with $8-an-hour employees from Hospitality Staffing Solutions. Many had been cleaning rooms at the chain’s hotels for more than 20 years and earned about $15 an hour.

The criticism unleashed at Hyatt Hotels has been unrelenting and merciless, fueled through social media channels.  The Consumerist, Executive Nomad, and the Harvard Business Review (Lessons From Hyatt: Simple Ways to Damage Your Brand)  have weighed in, along with national news outlets, since the story broke on Sept. 17. Facebook groups have cropped up to “Save the Hyatt 100.’ On Tuesday, Massachussetts Governor Deval Patrick threatened a government boycott of the hotel chain. Taxi drivers are boycotting Hyatt and the protests have spread to Chicago.

Hyatt originally stonewalled any inquiries into its actions. Lately they have become belligerent in fighting what they consider outside intrusions into their business affairs. Public relations cannot fix a company or right wrongs. In this case, top Hyatt executives who are calling the shots are doing deep damage to the brand and probably costing the company many millions over the pittance they are saving over the ’Hyatt 100.’ 

USA TODAY: Reader to Hyatt Hotels: “Shame on you” for outsourcing housekeepers

“I understand first-hand how difficult it is to manage through the current economic challenges without compounding the disruptions the times have caused,’’ Massachussetts Governor Deval Patrick wrote. “But surely there is some way to retain the jobs for your housekeeping staffs, as other hotels have done, and to work with them to help the company meet its current challenges, rather than tossing them out unceremoniously to fend for themselves while the people they trained take their jobs at barely livable wages.’’

Hyatt faces other challenges: Union workers stage sit-in to protest cuts to Hyatt’s health insurance coverage

LaFrances Rowell, 26, is taking chemotherapy for breast cancer and is supporting three children, ages 1, 2 and 7, but it was no question that she would join 194 other unionized hotel workers and their supporters in sitting in the street Thursday at the height of rush hour in front of the Park Hyatt hotel on North Michigan Avenue. The union workers are protesting Hyatt Corp.’s attempt to negotiate cuts in their health-insurance coverage. They also fear other hotels will follow Hyatt’s lead.

So you want to break into public relations?

This is a difficult and confusing time to break into the public relations business.  As  traditional media continues to disappear at unprecedented speed, and the acceptance and use of social media increases exponentially, the PR landscape becomes radically altered.  How do you promote a service, product or person in 2009 when the rules of engagement have shifted so far that nobody can say for certain what they are? How do you judge success when you have no verifiable way to measure it? Why on earth would anybody want to break into this business now when there are no jobs and nobody can agree what public relations is anymore?

I faced a room full of mass communications students last weekend at VCU and tried to answer these questions. The short answer is:  Uncertainty brings opportunity and this is a thrilling time to be in the communications field.  It begins at the top, as Barack Obama re-defines how government communicates with and interacts with its constituents.  And it comes down to us - never before have the methods of communication - the ability to package and distribute news and information on a mass scale - been in the hands of ‘the people.’

All the news and info distribution sources we now have at our disposal - including web sites, blogs, Twitter, Flickr (or any web photo platform), YouTube (or any web video platform), RSS, widgets - are absolutely free. All it takes is imagination and time and you can shout to the world. 

The PR business still treats social media as a curiosity, an add-on. They generally still don’t get that  PR needs to lead the communications mix (PR/marketing/advertising) and PR needs to follow media into an Internet-based, digital distribution system. Instead of pitching the media we become the media.

Writing has always been an important, and sorely under served, element of public relations. Now that we can’t complain about lack of avenues for publishing, writing is even more important.  Check out Emily Valentine’s blog Cultural Anthropologist. Emily was one of the 50 or students from the 10 colleges and universities at the VCU PRSSA event last weekend.  There are also links to writing samples on Emily’s blog, including Microfinance: social networking meets social enterprise on the Young Professionals in Foreign Policy web site. Coming into the ‘new PR’ landscape, Emily is honing her writing and social media skills, and engaging in socially optimized PR. It make take some time for PR employers to understand the value of writing, blogging, and social media literacy - but the smart ones will soon enough.

See The Future of PR (SlideShow) | Mark Rose LinkedIn

The Future of PR

Do we have a future? We will discuss that tomorrow at Virginia Commonwealth University PRSSA PROmoting Success event.

 

See slideshow on the Future of PR

Former Burris PR Guy Throws Fuel on Fire

Did Bud Jackson really need to issue this self-aggrandizing memo yesterday?

Concerning Senator Roland Burris

Dear Friends, Colleagues, and Members of the Media:

As many of you may recall I actively helped my former client, Roland Burris, during his run-up to being successfully seated in the United States Senate.

Since that time, well … his team’s public relations efforts have been less than stellar. Turns out that, because my business is political communication, I need to let folks know that I have not been involved in the decisions that have led to the public relations fiasco over the past week. In fact, I actively counseled his team to take very different actions, to no avail.

I have not returned countless calls from my friends in the media, partly because my role no longer includes responding to media queries, now that the Senator has his own official staff. If you are a member of the media, please contact Jim O’Connor, the new communications director (being shot out of a cannon) for Senator Burris at his Washington, DC office (202) 224-2852.

I know based on my own private conversations and experience that Senator Roland Burris has been the victim of bad advice and, when set-up to fail, he certainly shall we say, has had less than adequate attempts to better and more clearly inform the public at a press conference, or two. It has been painful to watch. Regardless, the senator has more than 30 years of public service and his integrity has never been questioned. I know that he has done nothing inappropriate despite the impression that has been left.

Despite what may or may not happen as a result of the mess that has been made, I stand behind my former client. To quote the movie Oh, Brother Where Art Thou Senator Burris is “in a tight spot.” It’s an unfortunate distraction for Illinois people who are most concerned about their jobs and their homes. It’s not so bad if you’re a Republican, a Democrat gunning for his seat, or if you’re trying to sell newspapers — they all benefit by painting everything in its worst possible context.

So to sum it all up: it’s complicated.

Sincerely, Bud Jackson

Bright Spots Amidst Troubled PR Biz, Says Comp Guru

The much-anticipated Official PR Salary & Bonus Report© - 2009 Edition reveals the grim reality we all face - PR jobs are scarce, salaries are flat, bonuses are being slashed dramatically.  Bottom line - if you have a job, hold on to it. If you think you have a fat bonus coming to you - think again. Bonuses are down an average of 34% vs. a 9% rise last year, according to the report.

PR pros at agencies and corporations are working harder, says Dennis Spring (top, left), President of Spring Associates, the New York-based executive recruitment firm.  As PR staffs shrink, fewer employed execs are expected to pick up the slack. We are in an employer’s market - a world away from where we were last year. Ironically, this situation could spell opportunity for some.

“There have been ‘defensive layoffs’ that have left some agencies and corporate PR departments short staffed,” says Spring. “They cut PR staff anticipating the recession and now they find they need more experienced people.” Spring sees spotty hiring in health care, high tech, some consumer areas and IR (investor relations). Financial PR is lagging. 

The 2009 Official PR Salary & Bonus Report is compiled from Spring Associates’ proprietary database of more than 20,000 credentialed corporate communications and agency public relations professionals nationwide. Spring Associates collects data on a daily basis from direct contact with PR professionals. This is 13th annual Report.  

The Report is used by C-suite execs, managers, HR people, department heads, anybody who needs accurate information on PR salaries, bonuses and compensation trends, says Spring.

Spring Associates offers a free salary check-up exclusively for PR professionals.

PR AGENCY SALARY SNAPSHOT

Position	Average Salaries - Nationwide	% change from 2008
Executive vice president	$147,100	2.9
Senior vice president	125,700	2.2
Vice president	104,400	2.3
Account supervisor	72,900	1.3
Senior account executive	59,400	2.4
Account executive	52,100	4.2

Position	NY, Atlanta, Chicago, L.A.	% change from 2008
Executive vice president	$167,600	2.4
Senior vice president	143,700	2.6
Vice president	117,800	2.6
Account supervisor	82,900	2.2
Senior account executive	68,400	2.1
Account executive	57,200	3.2

Position	Boston, Dallas/Houston, D.C., S.F.	% change from 2008
Executive vice president	$147,300	2.3
Senior vice president	130,800	2.2
Vice president	105,100	2.0
Account supervisor	77,200	3.0
Senior account executive	64,000	3.0
Account executive	58,900	4.1
Source: “The Official PR Salary & Bonus Report” - 2009 Edition, Spring Associates, Inc., New York, NY

CORPORATE SALARY SNAPSHOT

Position	Average Salaries – Nationwide	% change from 2008
Senior vice president	$164,000	1.9
Vice president	144,000	1.4
Director	126,000	1.6
Manager	98,700	1.8
Communications Specialist	75,200	3.0

Position	NY, Atlanta, Chicago, L.A.	% change from 2008
Senior vice president	179,600	2.5
Vice president	160,400	2.5
Director	141,600	2.0
Manager	106,000	2.9
Communications Specialist	80,000	2.6

Position	Boston, Dallas/Houston, D.C., S.F.	% change from 2008
Senior vice president	169,000	1.8
Vice president	150,100	1.2
Director	134,000	3.9
Manager	106,200	2.7
Communications Specialist	81,700	4.7
Source: “The Official PR Salary & Bonus Report” - 2009 Edition, Spring Associates, Inc., New York, NY

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A-Rod Needs Good PR Bad

Big-ticket baseball is about public relations, and there is no bigger attraction in the big leagues with no greater need for deft PR right now than Alex Rodriguez.

The Sports Illustrated bombshell report that A-Rod tested positive for steroids in 2003 has set off a media frenzy and a baseball fan outcry that threatens to consume the game and the Yankees. Rodriguez has a unquenchable penchant for attention. He is a magnet for controversy that heightens the drama of the game. This could be the moment when the A-Rod show shifts from curious comedy to outright tragedy.

Of course, Alex Rodriguez has blown it before, especially in 2007 with the tasteless self-serving ‘opt-out’ of his Yankee contract during the World Series. He pulled out of that tailspin with a PR offensive (and a $270 million contract) that quelled the angry New York masses and a understandably indignant Hank Steinbrenner, the Yankee owner.

A-Rod went on to win the MVP, hit his 500th homer in a Yankee uniform, divorce his ‘long suffering’ wife Cynthia, pal around with Warren Buffet and Madonna, and skate through with his ‘clean’ image intact as the alternative to the ‘tainted’ Barry Bonds.

Now the New York Daily News is calling for the Yankees to cut him loose and The New York Times opines that A-Rod may be damaged goods beyond repair no matter what his accomplishments.

This is a moment that begs for good PR that follows the simple rules of crisis communications. My advice to A-Rod and his weasel agent, Scott Borass:

• Hold a press conference. Come clean fully, with emotion, and an understanding of the gravity of the situation.
• Admit your mistake without equivocation. Admit that you lied, if that is the case.
• Stress that you have been tested many times over the year and you have been clean for over five years.
• Vow that you will remain ‘clean’ as long as you play baseball.

Get it all out at once, be contrite, put it to rest, move on. Otherwise, you will be hounded like Barry Bonds and Roger Clemens and Mark McGwire, the Yankees will suffer, fans will suffer, the game will suffer, and, mark my words, most of all you will suffer. Do not underestimate the persistence and viciousness of the New York media and Yankee baseball fans.

Outside A-Rod’s New York City penthouse on Park Ave., fans gave a harsh verdict. “It’s very selfish and unfair,” said Ina Lah, 20, of Connecticut. “The fans trust him, but all he cares about is fun and winning. He needs to make a statement about this.” “He doesn’t care,” said life-long Yankees fan Gabe Tigre, 21, of the Bronx. “He doesn’t care what we think. He’s already got his records and his money.” New York Daily News

United States of Propaganda

The Associated Press investigative piece on the nearly $5 billion the Pentagon spends on recruitment, advertising, and public relations is certainly provocative, although it should not be surprising. The U.S. military has to sell its story - whatever war we happen to be in at the moment - for recruitment, funding, morale, to cover elected officials, and to battle the other side in the propaganda war.

Hamas, Al Qaida, rogue states, any terrorist with a computer and a modem can battle the thousands of people and billions of dollars the U.S. government can pull together for a propaganda offensive. See video below - U.S. PR pros spinning with the best of us. The question is - should the U.S. government maintain a huge propaganda apparatus to spin U.S. citizens? My question back - How can they resist?

Public relations is so ingrained in all government, political and corporate operations. Why should the military be exempt? With the Internet and the free flow of information the other side of any argument is always available and widely disseminated.

PR News Stuck in Abacus Land

Your blueprint for executing high-return digital communications initiatives and managing reputation online. - boasts the lead in the PR News pitch for its first ever Digital PR Guidebook (pdf).  Since PR News does not supply review copies, as is customary in publishing, and they are charging an outrageous $399 for a book that can probably be trumped by a web-savvy junior account exec, I have decided to offer absolutely free PRBlogNews Digital Communications For PRummies (PR Dummies).

It’s ‘digital’ PRummy - Printing a hard copy book on ‘digital’ anything is obviously ludicrous to anybody studying or practicing ‘digital’ communications. Digital strategy changes so often that a hard bound book is obsolete by the time you buy it. PR News does not even offer a digital alternative to the hard bound book - how many trees die for this digital ‘intelligence’?

We’re in a recession PRummy - $399? You can probably find better examples of digital communication strategies and tactics free on the web in one afternoon. You don’t deserve bailout funds if you waste your money like this.

It’s the conversation PRummy - Three days ago PR News sent me an email pitching its $399 paper tome. I emailed the PR News “Marketing Assistant” asking about review copies and an available digital edition. She forwarded me via email to a fellow at PR News “Client Services Department” who emailed back:  “Thank you for your message. For complete information about this publication, including an online order form, please visit http://www.prnewsonline.com/store/7.html.”  No answer there, I emailed back “Client Services Department” for clarification - they still have not responded.

I would like to submit this post to the next edition of the Digital PR Guidebook - slot it in the section on ”How to Pitch a Blog.”

You can’t blame PR News for trying to co-opt ‘digital.’  They just don’t get it - witness the PR News TV video series on its web site, proving incontrovertibly that PR about PR will be always be boring, hedged, and virtually, if not totally irrelevant.

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