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Public Relations in the post - Global Financial Crisis Era

Public Relations in the post - Global Financial Crisis Era - by Brian Mahoney FPRIA - Director, Financial and Corporate Relations (FCR).

As the global financial crisis sends the world’s economies nosediving into the first simultaneous worldwide slump that we have known, you should be prepared. You’ll be practicing communication in a time of fear and pessimism. Seven thoughts:

1. Expect to justify your existence more often. Be prepared for cuts to communication budgets. Advertising and PR are in the firing line. Panicked CEOs and directors often forget the best way to get a larger share of a shrinking pie is to maintain more active communication than competitors. In the last recession companies that held marketing expenditure won market share, to be better placed when recovery came.

2. Be ready to handle bad news. Downsizing is all the rage – that means communication to staff, suppliers, customers and public; and anticipating union action. Fraud rises in tough times, and it’s not only small time scammers that cause corporate embarrassment. Be prepared to spend more time talking to customers/clients – they’ll be apprehensive, scared and depressed about their situation, too.

3. Beware goodwill deflation. Pullback from carefully created online community initiatives, or cutting sponsorship and local community support can create antagonism, if not handled sensitively.

4. Avoid corporate embarrassment. It wasn’t a good look for Pacific Brands to be shutting seven factories after executives increased their salaries. Media is sensitive to the irony of executives inflicting pain but still living high on the hog. Google your executives, check out their sons and daughters on Facebook – are there any Lamborghinis in evidence?

5. Learn to live with tough times. The knock-on effects will go on for several years. There has never been this much debt wiped out in such a short time, so don’t expect the world, or your budget, to go back to ‘normal’ any time soon.

6. Shark or prey? Some companies are desperate to bolster finances, others have more cash in the bank than their market capitalisation. When banks do start lending again the mergers and acquisitions will be fast and furious. China is already moving on this front.

7. Don’t blame the GFC. While it’s tempting to blame the GFC for every corporate weakness that is exposed, you may have to advise the CEO that not every piece of bad news can be sheeted home to the GFC. It may challenge the company’s credibility.

If you would like to contribute a set of tips contact our Information Officer.

^{March 2009}

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