The document discusses the evolution of communications from the industrial economy to the creative economy. In the industrial economy, advertising dominated but public relations (PR) was seen as less important. As customers gained more information and choices, PR became more important to validate advertising claims. However, in the creative economy, managed PR is less trusted and social media allows employees to directly communicate. The document argues this marks the rise of internal communications, or "the red headed stepchild," which can help organizations attract and engage talent, foster innovation, and enable authentic advocacy through empowered employees.
13. It was 2002 and
according to marketing
pros, Al & Laura Ries,
we were experiencing:
The Fall of
Advertising &
the Rise of PR*
14. *fall of advertising
Anytime anyone forecasts the fall
(or the death) of something, they
are always overstating the case
But if you forgive the hyperbole
designed to grab your attention,
there’s often an underlying trend
worth paying attention to
15. The annoying little brother
was fast becoming the
21st Century Spin Doctor
Advertising was King
16. Companies turned to
PR to authenticate
their message and
put a human face to
their story…
17. …even if that face was
often media-trained to
within an inch of
automation…
18. …and the message vetted by lawyers
to within an inch of being interesting
19. PR worked behind the scenes with
media to ensure that readers and
viewers were shown the truth they
wanted them to see
20. PR mirrored the command
and control management
style of the day
22. No matter what issue you faced,
smart PR could always make you
sound better
23. And then we moved from the information
economy to the creative economy*
24. *creative economy
an economy of continuous
innovation & transformation
A new kind of organization is emerging, capable
of achieving both continuous innovation and
transformation along with disciplined execution...
...delighting those for whom the work is done
and inspiring those doing the work
It is generating a new economy
—the Creative Economy
Stephen Denning:
The Leader's Guide to Radical Management: Re-inventing the Workplace for the 21st Century
25. As direct access to information increases,
managed media is becoming as mistrusted
as the advertising that supports it
Source: Edelman’s 2016 Trust Barometer
Less than half the
population now has
trust in the media
26. Press statements from official spokespeople
are overshadowed by social media
comments from authentic employees
“On a work call the other day, one of the
managers said technicians like me were
tools to accomplish a task.
We’re not tools.
We’re the public face of Verizon.
We talk with customers.
We solve problems.
We restore service.
And we help our company make $1.5 billion
in profits every single month.”
Source: An Open Letter to Verizon CEO Lowell McAdam on medium.com
27. It’s 2016, and now we’re
told by global PR leader,
Robert Phillips, to:
Trust Me,
PR is Dead*
28. *PR is dead
Anytime anyone forecasts the fall
(or the death) of something, they
are always overstating the case
But if you forgive the hyperbole
designed to grab your attention,
there’s often an underlying trend
worth paying attention to
31. VW’s Europe Market Share Slumps
to Five-Year Low on Scandal
Volkswagen AG’s European market share narrowed for an
eighth consecutive month since the German carmaker’s
admission to rigging diesel cars to cheat on emissions tests…
May 12, 2016
…it’s just no longer enough
32. …in the creative economy,
you can’t just look better, or sound
better, you actually have to be better
33. Alex Bogusly was a modern day Mad Man
Voted Creative Director of the Decade
by Advertising Age in 2010
34. In that same year, he turned his back on the
Ad World and wrote a book explaining why
brands must think beyond advertising…
35. “The old rule was: Create safe,
ordinary products and combine
them with mass marketing.”
36. “The old rule was: Create safe,
ordinary products and combine
them with mass marketing.”
“The new rule is: Create truly
innovative products and build
the marketing right into them.”
37. “Creativity has become the
ultimate business weapon.”
Alex Bogusly & John Winsor - Baked In
38. “The same creativity that's been used to change
culture through advertising can also be applied to
distribution, packaging, and even the product itself.”
Alex Bogusly & John Winsor - Baked In
47. “Capital is being superseded
by creativity and the ability to
innovate - and therefore by
human talents - as the most
important factors of
production.”
Klaus Schwab
Founder of the Word Economic Forum
48. “Capitalism is being replaced by Talentism”
Klaus Schwab:
Founder of the Word Economic Forum
49. A ruthless pursuit of
efficiencies, with employees
seen as cogs in the machine
A ruthless pursuit of customer
delight, with employees seen
as the differentiating factor
20th Century Capitalism 21st Century Talentism
50. The need to attract, retain and
motivate top talent has risen to the
top of the boardroom agenda
52. Employee Comms can help
attract top talent and retain a
more engaged workforce
53. Purpose-driven companies have 40% higher levels
of retention, and tend to be 1st or 2nd in their market
Source: Deloitte - A New Model for Employee Engagement
54. Smart Employee Comms can help leaders articulate a
purpose beyond profit, and bring it to life with stories
that attract new recruits and inspire employees
55. 80% of organizations
believe their employees
are overwhelmed with
information at work
21% cite the issue as
urgent
Fewer than 8% have
programs to deal with
the issue
Source: Deloitte Global Human Trends 2014
56. Smart Employee Comms
can simplify the work
environment, by giving
employees the information
they need, when they need
it, in their preferred format
57. In high-turnover companies, the 2nd-highest-rated
issue in employee engagement is the organization’s
willingness to “listen to an employee’s perspectives.”
Source: Quantum Workplace
58. Smart Employee Comms
can help leaders to listen…
…create safe environments
for employees to speak…
…and strengthen the
organization through
honest and open dialogue
79. And if you give employees
permission to speak on
your brand’s behalf,
what will they say?
80. The Edelman Trust Barometer shows
that one-in-three employees doesn’t
even trust his or her own company
81. The implication is clear:
Employees who trust
their leaders will be
more likely to say good
things about their
employer.
And consumers will
believe them.
Source: Edelman Trust Barometer
82. By the same token:
Employees who don’t
trust their leaders will be
less likely to say good
things about their
employer.
And consumers will
believe them too.
Source: Edelman Trust Barometer
90. Chris Cox is a integrated communications professional
with a passion for the power of employee comms.
He works with clients to design and deploy programs
that inform, inspire, involve and improve employees;
helping organizations and brands become better,
rather than just look better or sound better.
www.coxc.co