Return on Investment (ROI) is a measure of how much money one gets back for putting a certain amount in, within a specific time frame. How about a measure our returns of commitment and knowledge (ROCK)? What would that look like?
The idea is not new. Nonprofits, while they must keep a careful eye on the bottom line and keep growing it as assiduously as any firm that wishes to stay in business for the long term, are accustomed to measurements that go beyond money made. How many men, women and children were helped? Fed? Housed? Removed from danger? Educated? Given the means to start their own businesses? Participated in a new community center or park? The commitment and knowledge of their volunteers helps others live better lives.
For-profit companies also have to remember multiple bottom lines, from the one that keeps them in business financially to the social contract that allows them to be part of a community and a world that values what they do. That value is often expressed in monetary terms, but from a public relations perspective, can also be seen in respect and goodwill (how the company is viewed in general), and among its knowledgeable peers (for example, how admired its technology, customer service, ability to innovate, or constant relationship with customers without undue volatility). Those innovations show a return on commitment and knowledge.
Committed workers are able to pour what they learned back into a company. Knowledge workers, a term coined by Peter Drucker, keep raising the bar on what they can give their environments and colleagues.
Thursday, May 7, 2009
Thursday, April 9, 2009
Why Universal Health Care Matters
Doctors Without Borders (Medecins Sans Frontieres) won a Nobel Peace Prize with a simple concept and a tricky mission: send doctors and other health care workers anywhere in the world where they could make a positive difference, even – indeed, especially – if those being helped were not able to pay for their care. Ah! Those French idealistes….
The dream of universal health care is one that has burned in many a heart. Efforts are underway to give needed care and to spread preventive measures -- from free health clinics in Haiti, Somalia and even in Los Angeles. China, Japan, Great Britain, Italy – every country has leaders who call for improved healthcare, no matter how well- or ill-provided currently. Certain situations, exacerbated often by warfare and political disruption are more dire than others. Those situations, such as in Darfur and surrounding refugee regions, are exactly the ones that call to Doctors Without Borders and other aid groups.
Yet why, with all the efforts underway around the world to help children grow up healthy, to assist people in living longer with more dignity, and to diagnose illnesses better and faster at all ages, should the Obama Administration push so hard for universal health care in the United States? The reason is not just that it is “the right thing to do,” although, surely, it is. Every man, woman and child should have a form of insurance and/or care options in sickness and in health. That is almost a tautology – what is best for people, is best for them, so let us let them have the best possible health care, and not exclude people due to age, infirmity, distance from a health center, or poverty.
Yet there remain many real questions of payments to be made, trade-offs, changes in lifestyles for those giving care and receiving care, and the role of hospitals currently versus new or other kinds of care. It is sobering to reflect that the largest cause of bankruptcy in the United States is the cost of medical care. What is supposed to be keeping us well, is sending too many people into financial ruin.
So why insure, or why give care? What is at issue is the content of the character of our nation, and this is a CHOICE that we ongoingly make. We will “love our neighbor,” or we will not. We can choose – even as we know that we ourselves will need help at some point or other, no matter our backgrounds – to be good Samaritans who look out for one another, and be there for one another. It may take sacrifice, but so does the patchwork of systems we have now, where some people routinely go above and beyond to give more care. Let’s fill in the gaps, in some way that can be shown by outcomes of health to be better.
A new system will be built on old systems, hopefully better integrated and more “seamless,” able to cover all individuals when health care is needed. Early warning systems will be in place for pandemics, for early loss of hearing or eyesight, and for the thousand other problems that can be addressed or ameliorated through preventive care. Regulation may still be rife, but ideally will be honestly helpful in establishing and keeping high standards of care. Hilary and Bill Clinton took sharp political risks to try to change the health care system, and they were not the first to face entrenched, political interests. Now Barack Obama and his first lady Michelle have their chance for a lasting legacy: Health care for all. No one doubts they have the will. May they, for the sake of all of us, succeed.
The dream of universal health care is one that has burned in many a heart. Efforts are underway to give needed care and to spread preventive measures -- from free health clinics in Haiti, Somalia and even in Los Angeles. China, Japan, Great Britain, Italy – every country has leaders who call for improved healthcare, no matter how well- or ill-provided currently. Certain situations, exacerbated often by warfare and political disruption are more dire than others. Those situations, such as in Darfur and surrounding refugee regions, are exactly the ones that call to Doctors Without Borders and other aid groups.
Yet why, with all the efforts underway around the world to help children grow up healthy, to assist people in living longer with more dignity, and to diagnose illnesses better and faster at all ages, should the Obama Administration push so hard for universal health care in the United States? The reason is not just that it is “the right thing to do,” although, surely, it is. Every man, woman and child should have a form of insurance and/or care options in sickness and in health. That is almost a tautology – what is best for people, is best for them, so let us let them have the best possible health care, and not exclude people due to age, infirmity, distance from a health center, or poverty.
Yet there remain many real questions of payments to be made, trade-offs, changes in lifestyles for those giving care and receiving care, and the role of hospitals currently versus new or other kinds of care. It is sobering to reflect that the largest cause of bankruptcy in the United States is the cost of medical care. What is supposed to be keeping us well, is sending too many people into financial ruin.
So why insure, or why give care? What is at issue is the content of the character of our nation, and this is a CHOICE that we ongoingly make. We will “love our neighbor,” or we will not. We can choose – even as we know that we ourselves will need help at some point or other, no matter our backgrounds – to be good Samaritans who look out for one another, and be there for one another. It may take sacrifice, but so does the patchwork of systems we have now, where some people routinely go above and beyond to give more care. Let’s fill in the gaps, in some way that can be shown by outcomes of health to be better.
A new system will be built on old systems, hopefully better integrated and more “seamless,” able to cover all individuals when health care is needed. Early warning systems will be in place for pandemics, for early loss of hearing or eyesight, and for the thousand other problems that can be addressed or ameliorated through preventive care. Regulation may still be rife, but ideally will be honestly helpful in establishing and keeping high standards of care. Hilary and Bill Clinton took sharp political risks to try to change the health care system, and they were not the first to face entrenched, political interests. Now Barack Obama and his first lady Michelle have their chance for a lasting legacy: Health care for all. No one doubts they have the will. May they, for the sake of all of us, succeed.
Sunday, March 8, 2009
Notoriety or Fame? Public Relations in the Spotlight
Rachel Maddow had a thing or two to say about embattled insurance giant AIG and its decision to hire respected public relations firm Kekst & Company. She spent even more time talking about the firm of Burson-Marsteller, another firm previously hired by AIG, which she characterized as “the PR firm from Hell.” The key catchphrase? “When evil needs PR, it calls Burson-Marsteller”:
http://www.msnbc.msn.com/id/26315908/#29539730
(The clip is preceded by an advertisement.)
A colleague pointed out that Ms. Maddow’s diatribe shows many misunderstandings about the field of public relations. When Ms. Maddow implies that agencies should not be hired if a firm already employs public relations staff, that shows a lack of understanding. A firm may have in-house staff, and that staff may do excellent work, yet there are times when it is appropriate and wise to bring in outside specialists.
On a deeper level, Rachel Maddow is right, even if her tactic is sensationalistic. Public relations can never and should never wipe away the fact that things have gone wrong and that people have been hurt. In fact, it has to acknowledge that there is a depth of pain that has been or is being experienced.
However, public relations has a legitimate role in ensuring that correct information is supplied to those who need to or want to know it, on a consistent basis and in an intelligent way. Public relations is a communication function. It is also a strategic function, but the strategies should be based on facts, and on building trust. Public or any stakeholder trust has to be earned.
If actions have threatened or destroyed that trust, there is no easy fix, and words or images alone cannot change that -- nor can, on their own, relationships, strategic visions, donations, or advertising campaigns. What can start to rebuild trust is operational changes that address the issues involved. Also, management decisions need alignment with what is considered good, not just in business terms, but within the norms of society as a whole.
Ideally, PR firms would not be in the spotlight. Good decisions by the company involved, would. Public relations has a consultative role, and exists at its best to help ensure that the right messages are conveyed to the right audiences. Those messages should not just put up a pleasant image, but address real concerns and go to the heart of issues.
The best practice was shown by Tylenol's response to a medication tampering scandal. Tylenol itself was not to blame for the deliberate poisoning of its product, but it did not take a "Don't blame us!" approach. Instead, it demonstrated, directly, in each interaction with a spokesperson or the CEO:
1. Care for the consumer. Tylenol made clear that it would find out what had happened, and fix it.
2. Only stating what it knew. Tylenol respectfully let the media know that it was tracing and analyzing through its manufacturing and delivery process, and kept people up-to-date on what was happening. However, it did not release any information it did not yet actually know, and the media and listeners/viewers were understanding of the process.
3. When the tampering was understood, Tylenol willingly made changes designed to prevent future tampering. It was clearly at the forefront of the process regarding whatever would help -- not just in public opinion, but in fact.
4. No whining. No unfair blaming.
5. Company leaders, especially the CEO, were seen taking responsibility for what they could offer in terms of knowledge and also in terms of correct decisions. They were accountable for simply making things better.
Good public relations is not just in the hands of public relations professionals. It begins with each interaction between a company and its many publics.
As for AIG, it is going through a painful change in a time that is not conducive to getting back easily on its feet. Retrainings, restructurings, operational fixes for more accountability and decisions in line with what is true instead of what has seemed to work before, don't make for lively televised clips. That great management buzzword, "uncertainty," is being lived. Who could blame any organization for reaching out to what it perceives to be those able to help, in a time of crisis? Let's hope we hear some boring things on the news about insurance transactions that were well structured, well explained, met people's needs and were affordable. That would, come to think of it, be sensational.
http://www.msnbc.msn.com/id/26315908/#29539730
(The clip is preceded by an advertisement.)
A colleague pointed out that Ms. Maddow’s diatribe shows many misunderstandings about the field of public relations. When Ms. Maddow implies that agencies should not be hired if a firm already employs public relations staff, that shows a lack of understanding. A firm may have in-house staff, and that staff may do excellent work, yet there are times when it is appropriate and wise to bring in outside specialists.
On a deeper level, Rachel Maddow is right, even if her tactic is sensationalistic. Public relations can never and should never wipe away the fact that things have gone wrong and that people have been hurt. In fact, it has to acknowledge that there is a depth of pain that has been or is being experienced.
However, public relations has a legitimate role in ensuring that correct information is supplied to those who need to or want to know it, on a consistent basis and in an intelligent way. Public relations is a communication function. It is also a strategic function, but the strategies should be based on facts, and on building trust. Public or any stakeholder trust has to be earned.
If actions have threatened or destroyed that trust, there is no easy fix, and words or images alone cannot change that -- nor can, on their own, relationships, strategic visions, donations, or advertising campaigns. What can start to rebuild trust is operational changes that address the issues involved. Also, management decisions need alignment with what is considered good, not just in business terms, but within the norms of society as a whole.
Ideally, PR firms would not be in the spotlight. Good decisions by the company involved, would. Public relations has a consultative role, and exists at its best to help ensure that the right messages are conveyed to the right audiences. Those messages should not just put up a pleasant image, but address real concerns and go to the heart of issues.
The best practice was shown by Tylenol's response to a medication tampering scandal. Tylenol itself was not to blame for the deliberate poisoning of its product, but it did not take a "Don't blame us!" approach. Instead, it demonstrated, directly, in each interaction with a spokesperson or the CEO:
1. Care for the consumer. Tylenol made clear that it would find out what had happened, and fix it.
2. Only stating what it knew. Tylenol respectfully let the media know that it was tracing and analyzing through its manufacturing and delivery process, and kept people up-to-date on what was happening. However, it did not release any information it did not yet actually know, and the media and listeners/viewers were understanding of the process.
3. When the tampering was understood, Tylenol willingly made changes designed to prevent future tampering. It was clearly at the forefront of the process regarding whatever would help -- not just in public opinion, but in fact.
4. No whining. No unfair blaming.
5. Company leaders, especially the CEO, were seen taking responsibility for what they could offer in terms of knowledge and also in terms of correct decisions. They were accountable for simply making things better.
Good public relations is not just in the hands of public relations professionals. It begins with each interaction between a company and its many publics.
As for AIG, it is going through a painful change in a time that is not conducive to getting back easily on its feet. Retrainings, restructurings, operational fixes for more accountability and decisions in line with what is true instead of what has seemed to work before, don't make for lively televised clips. That great management buzzword, "uncertainty," is being lived. Who could blame any organization for reaching out to what it perceives to be those able to help, in a time of crisis? Let's hope we hear some boring things on the news about insurance transactions that were well structured, well explained, met people's needs and were affordable. That would, come to think of it, be sensational.
Tuesday, January 27, 2009
Public Relations and Operations
The link between public relations and operations is crucial: at its best, public relations is simply part of strong operations in action.
Operations, from how trash cans are cleaned to how machinery is fixed, from how computers are replaced or upgraded to the way front office people greet those who walk in, from how invoices are processed to how customers are welcomed and treated, are the lifeblood of a company. As public relations consultants, our focus tends to be on the grand strategic moves, the personalities at the top, the latest numbers, and the newest innovations. All of these are important, and deserve attention.
The steady strumming in the background, however, is telling with regard to how an organization is truly functioning. Does luggage end up in the right city? Are children kept safe on the playground? Is hiring fair? Are services delivered with a smile, efficiently and effectively?
The day-to-day way that people do their jobs, including interacting with the public and taking care of what needs to be done behind the scenes, adds up to a sum greater than its parts. That sum is called many things, from "meeting or exceeding expectations" to "customer satisfaction" to "impressive safety record." Operations matter to public perception because each small action is experienced as part of personal or public reality.
Every crisis that does not happen is the result of good people doing their jobs well. When a crisis does occur, whether an Act of God or a series of missteps, words from the public relations department can keep people informed, can help to allay anxieties, and can let people inside and outside the organization know what the next steps will be. However, those next steps have to match the underlying reality of people making the necessary decisions and changes to get the organization back on track. Empty words are not only remembered, they are taken as a breach of trust. Operational staff and their management(s) are crucial to making the necessary changes to bring about greater safety or effectiveness.
Public relations staff owe other operational staff and their management(s) every respect, because they create the conditions that PR people can share with others. Top leadership’s strategic planning goes to the core of the ideal, future direction of a company, and it takes everyone to get there. These days, and even in the best of times when individual businesses still have their own downturns, people are continuously asked to do more with less. Their companies and their own futures are at stake. Yet they are still expected to show up each day and give their all.
There are stories to be told of the crises that never happened, in the steady thrum of business as usual.
Operations, from how trash cans are cleaned to how machinery is fixed, from how computers are replaced or upgraded to the way front office people greet those who walk in, from how invoices are processed to how customers are welcomed and treated, are the lifeblood of a company. As public relations consultants, our focus tends to be on the grand strategic moves, the personalities at the top, the latest numbers, and the newest innovations. All of these are important, and deserve attention.
The steady strumming in the background, however, is telling with regard to how an organization is truly functioning. Does luggage end up in the right city? Are children kept safe on the playground? Is hiring fair? Are services delivered with a smile, efficiently and effectively?
The day-to-day way that people do their jobs, including interacting with the public and taking care of what needs to be done behind the scenes, adds up to a sum greater than its parts. That sum is called many things, from "meeting or exceeding expectations" to "customer satisfaction" to "impressive safety record." Operations matter to public perception because each small action is experienced as part of personal or public reality.
Every crisis that does not happen is the result of good people doing their jobs well. When a crisis does occur, whether an Act of God or a series of missteps, words from the public relations department can keep people informed, can help to allay anxieties, and can let people inside and outside the organization know what the next steps will be. However, those next steps have to match the underlying reality of people making the necessary decisions and changes to get the organization back on track. Empty words are not only remembered, they are taken as a breach of trust. Operational staff and their management(s) are crucial to making the necessary changes to bring about greater safety or effectiveness.
Public relations staff owe other operational staff and their management(s) every respect, because they create the conditions that PR people can share with others. Top leadership’s strategic planning goes to the core of the ideal, future direction of a company, and it takes everyone to get there. These days, and even in the best of times when individual businesses still have their own downturns, people are continuously asked to do more with less. Their companies and their own futures are at stake. Yet they are still expected to show up each day and give their all.
There are stories to be told of the crises that never happened, in the steady thrum of business as usual.
Tuesday, January 20, 2009
Values in Action
Cheering, vigilance and hope characterized the inauguration of President Barack Obama. With a measured speech that was by turns cautionary and inspiring, the new president reassured the American people and the world that he perceived that the United States would regain trust, prosperity, and leadership. He invoked the values of hard work, philanthropy and perseverence, and referred to the Founding Fathers as well as to the home village of his own father. He noted the progress that had been made, quite aware of himself as a symbol of hope, and proclaimed also that changes would be evident in his administration. He stated that safety and ideals would go together, and that progress would be marked by what was built, not by what was destroyed.
The inauguration of President Barack Obama was a visual reminder of the peaceful passing of power from one pair of hands to another. It was a reminder that words can be a form of action, when they communicate direction and establish frameworks for the ideals of the appropriate and the sense of common good. The formal transference of authority was accompanied by music, poetry and fanfare, as well as careful security. Millions, if not more, watched around the world.
The future will show which words become values in action. President Barack Obama put himself intentionally, calmly and deliberately into the spotlight, and asked the American people again and again to choose his vision, his acumen, his sense of what is right. The audacity of standing up for his nation, for his knowledge of the interconnectedness of the world and its ability to change for the better, must bring hope. President Obama asked individuals and nations to work together for the best that can be. He mentioned the necessary restraint of power, at the moment he assumed it.
Those of us in the fields of public relations and marketing, no less than those in any other field, recognize the stance of a calm leader. We can hear the call to temperance, moderation, and justice -- to rebuilding, and to new vision. There is work to do, putting values into action. What memories can we leave to the next generations?
The inauguration of President Barack Obama was a visual reminder of the peaceful passing of power from one pair of hands to another. It was a reminder that words can be a form of action, when they communicate direction and establish frameworks for the ideals of the appropriate and the sense of common good. The formal transference of authority was accompanied by music, poetry and fanfare, as well as careful security. Millions, if not more, watched around the world.
The future will show which words become values in action. President Barack Obama put himself intentionally, calmly and deliberately into the spotlight, and asked the American people again and again to choose his vision, his acumen, his sense of what is right. The audacity of standing up for his nation, for his knowledge of the interconnectedness of the world and its ability to change for the better, must bring hope. President Obama asked individuals and nations to work together for the best that can be. He mentioned the necessary restraint of power, at the moment he assumed it.
Those of us in the fields of public relations and marketing, no less than those in any other field, recognize the stance of a calm leader. We can hear the call to temperance, moderation, and justice -- to rebuilding, and to new vision. There is work to do, putting values into action. What memories can we leave to the next generations?
Wednesday, November 26, 2008
Happy Thanksgiving to You
At the heart of this American holiday is a vital truth -- we are grateful on this most domestic of celebrations for family, our friends and the ability to share. In this time of economic uncertainty, we have never needed more the anchor of the familiar, the tradition of home centered warmth and fellowship. The luxury of time to think about what matters is a blessing in itself.
I am personally thankful for the mingled aromas of good food, and the touchstone of family and friends gathered around the table to discuss the important (elections, the economy) and the lighthearted (did you see who won "Dances With the Stars"?). Thanksgiving is the time to realize what we have already been lucky to enjoy, now and in years past, and to recommit ourselves to appreciating our blessings.
To those who have lost jobs, lost homes, and fear for the future, you are in our prayers and our hearts. We will work towards creating a better world, in all its manifestations.
Thanks to everyone who is out on a cold day, spreading cheer; holding a firehose when others are enjoying turkey; teaching someone young or old to read; protecting an area that is otherwise wracked by crime and violence; and cooking, for the 80th year, that special dish.
I am personally thankful for the mingled aromas of good food, and the touchstone of family and friends gathered around the table to discuss the important (elections, the economy) and the lighthearted (did you see who won "Dances With the Stars"?). Thanksgiving is the time to realize what we have already been lucky to enjoy, now and in years past, and to recommit ourselves to appreciating our blessings.
To those who have lost jobs, lost homes, and fear for the future, you are in our prayers and our hearts. We will work towards creating a better world, in all its manifestations.
Thanks to everyone who is out on a cold day, spreading cheer; holding a firehose when others are enjoying turkey; teaching someone young or old to read; protecting an area that is otherwise wracked by crime and violence; and cooking, for the 80th year, that special dish.
Wednesday, August 27, 2008
Return on Investment (ROI) in Healthcare Marketing
By Kimi and Elisa Mann
ROI is important for any business, but it is especially difficult to measure in healthcare. It may not always be the most appropriate metric for deciding whether an initiative was a success.
ROI can be measured many ways. At the core of ROI is the idea that money flows through the organization, to its benefit. One of the most common equations to measure ROI takes Net Revenue, minuses Marketing Expense, divides that total by the same Marketing Expense, and multiplies the result by 100. This equation returns a percentage, which is easy to discuss and compare to similar initiatives.
Other measures of ROI are possible, such as dividing the Return (of revenues) to Expense, to get a ratio of return.
However, David Marlowe, principal of Strategic Marketing Concepts in Ellicott City, Maryland contends that at times, completely different metrics are important. He includes the following: market share gains, volumes, gains in awareness and preference by consumers, image/reputation, contracts, referrals, and participation in events.
Counterintuitively, David argues that just because an event has a good, even a great, ROI, does not necessarily mean that it is important to repeat it. Most of the time, high ROI is a positive sign to keep going, but incremental gains become more difficult, and judgment must be used to see if the effort is likely to keep returning results.
Initiatives that are best to measure, according to Marlowe, are services that have a high degree of participation from consumers, and/or services that people can choose. They are finite, and therefore measurable. The decision to measure ROI must be made before the initiative is designed, so that results may be captured through the process. The services to be measured must have an undeniable ability to produce revenues, financial results for the organization. ROI is easiest to measure if its methodologies are agreed up front and assiduously tracked.
Campaigns that produce positive metrics may also enhance reputation, in the long run improve rates of people using services, and even boost employee morale, benefitting the organization in intangible ways.
Is there a downside to ROI? Trying to measure initiatives that do not have a clear revenue return is doomed to frustration. Likewise, insisting that every initiative have a return on investment may at times miss the point for events designed to give a sense of social continuity, pure information, or altruism.
David Marlowe, who has written "A Marketer's Guide to Measuring ROI: Tools to Track the Returns from Healthcare Marketing Efforts" may be contacted at dmarlow1@ix.netcom.com.
ROI is important for any business, but it is especially difficult to measure in healthcare. It may not always be the most appropriate metric for deciding whether an initiative was a success.
ROI can be measured many ways. At the core of ROI is the idea that money flows through the organization, to its benefit. One of the most common equations to measure ROI takes Net Revenue, minuses Marketing Expense, divides that total by the same Marketing Expense, and multiplies the result by 100. This equation returns a percentage, which is easy to discuss and compare to similar initiatives.
Other measures of ROI are possible, such as dividing the Return (of revenues) to Expense, to get a ratio of return.
However, David Marlowe, principal of Strategic Marketing Concepts in Ellicott City, Maryland contends that at times, completely different metrics are important. He includes the following: market share gains, volumes, gains in awareness and preference by consumers, image/reputation, contracts, referrals, and participation in events.
Counterintuitively, David argues that just because an event has a good, even a great, ROI, does not necessarily mean that it is important to repeat it. Most of the time, high ROI is a positive sign to keep going, but incremental gains become more difficult, and judgment must be used to see if the effort is likely to keep returning results.
Initiatives that are best to measure, according to Marlowe, are services that have a high degree of participation from consumers, and/or services that people can choose. They are finite, and therefore measurable. The decision to measure ROI must be made before the initiative is designed, so that results may be captured through the process. The services to be measured must have an undeniable ability to produce revenues, financial results for the organization. ROI is easiest to measure if its methodologies are agreed up front and assiduously tracked.
Campaigns that produce positive metrics may also enhance reputation, in the long run improve rates of people using services, and even boost employee morale, benefitting the organization in intangible ways.
Is there a downside to ROI? Trying to measure initiatives that do not have a clear revenue return is doomed to frustration. Likewise, insisting that every initiative have a return on investment may at times miss the point for events designed to give a sense of social continuity, pure information, or altruism.
David Marlowe, who has written "A Marketer's Guide to Measuring ROI: Tools to Track the Returns from Healthcare Marketing Efforts" may be contacted at dmarlow1@ix.netcom.com.
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