Why Occupy Wall Street is More Significant Than You Think

This was originally posted on the Arthur W. Page Society Blog. You can find the full original post here

Last month, I had the opportunity to visit the Occupy Wall Street encampment in Zuccotti Park with my daughter Julia just a couple of days before it was dispersed by the NYPD.  It immediately brought back memories of my high school days in the ‘60s and my time at Columbia in the ‘70s.  The clothes, the look of the pamphlets, even the smells were the same.  I was particularly fascinated by their incredible focus on communications and media.  But something was very different.  While the protests in the 60s and 70s were clearly for something (the end of the Vietnam war) this movement is very squarely against something—big business with no outcome that will ever satisfy the group and make it go away.  Some may believe that this lack of focus makes the occupy movements in New York and elsewhere less worrisome or even irrelevant, but I think it is more insidious than most people in business realize.  Let me explain why. Read More…

Public Relations: Coming to a B-School Near You

Professor Argenti in Bloomberg Businessweek on the Public Relations Society of America is trying to bring corporate communication and reputation management into the MBA curriculum, where a new study suggests it’s sorely lacking. This article was originally posted on Bloomberg Businessweek.

ublic relations is a topic that has long been a lonely stepchild in most MBA curricula, touched upon briefly, if at all, in soft-skills classes that teach writing and communication. That may soon change, thanks to a push by the Public Relations Society of America (PRSA), the largest industry group for public relations professions, which is trying to get business schools to take a more serious approach to teaching MBA students the art of corporate communication and reputation management.

It’s a skill that is sorely lacking, according to a new study the PRSA commissioned earlier this fall of senior U.S. business leaders. Of the 204 respondents, 98 percent said they believe that business schools need to incorporate instruction on these topics into the MBA curriculum, and 94 percent believe that top management needs additional training in core communication disciplines. Only 40 percent of the executives surveyed rated their recent MBA hires as “extremely strong” at responding to crisis and building and protecting company credibility.

One of the first efforts to encourage business schools to start thinking more about corporate reputation management and strategic communication will commence in the 2012-13 school year, when five business schools will participate in a pilot program spearheaded by the PRSA. Dartmouth University’sTuck School of Business will be one of the five schools participating; the other four schools have not yet been named, the PRSA said. Paul Argenti, a Tuck professor and author of the textbook Corporate Communication, is developing the curriculum for the pilot, which can be adapted for full-semester, mini-semester, or seminar-format courses. The class will include lessons on communication strategy, media relations, international corporate responsibility, reputation management, and investor relations. In addition, students will be asked to participate in crisis communication simulation exercises and review case studies on the topic. The hope is that all the leading business schools will incorporate this class, in some format, into their curricula in the 2013-14 academic year, the PRSA said.

Bloomberg Businessweek‘s Alison Damast recently spoke with Argenti about his role in developing the new curriculum and why he believes it is important for MBA students to have a background in this area. Here is an edited transcript of their conversation:

What is the business school world’s current approach to teaching public relations and reputation management skills?

Most business schools have some basic communications training, maybe a writing or speaking class, but I think Tuck is the only school that has had a required class on this subject for 30 years. When I came to Tuck in 1981, I was hired to teach its first corporate communications class, so I put together a required course in communications and the school has been doing it ever since. We survey MBAs asking them which courses they think are the most important, and they say the corporate communications class is No. 1 or No. 2 in what they use on the job when they graduate. The course has included for many years writing, speaking, and corporate and cross-cultural communications. This year we’re adding a whole host of other topics, from negotiations to reputation management. For example, we’ll have a session where students learn to prepare for testimony before Congress, and a guy who teaches acting at the college will be doing a session on personal presence. The gut of the class is being able to think strategically about basic communication strategy. This area has become critical for business leaders, CEOs, functional heads, and other people, but they know so little about it and there is nowhere they can learn this material.

Why did you decide to get involved with the PRSA on this effort to promote better corporate communication skills among MBA students, and do you think this pilot will succeed?

Over the last 30 years, there have been at least four or five efforts to teach communications at business schools on a broader level, but none have really taken off. When the folks at the Public Relations Society of America approached me, I told them I’d be happy to help and we basically stuck with it this time. A couple of people really pushed it and got the job done. I think the reason this could be successful is because it’s not like five professors sitting around a campfire and trying to see how they can make it work. This effort is thousands of people who work in public relations saying, “Hey, this is important and we need your help to get it done.” If we can get a critical mass of schools teaching these skills, then it just becomes something that everyone gets interested in.

I understand that five schools, including Tuck, will be involved in the pilot program next year. Tell me a little bit about the curriculum you’ve designed for these schools and how you foresee this being integrated into MBA programs.

I think we need to start small. If it is in the curriculum at all, that would be a plus. Existing classes that teach presentation skills and writing would be the obvious place to incorporate this. Schools can use my textbook and there’s an instructor’s manual that I’ll tailor for the needs of each of these schools. I’ve written 100 different cases on this topic, and there are a number we are rewriting into shorter cases that, for example, someone who works in public relations could come in and teach without a lot of training. For example, one case I wrote is about Starbucks (SBUX) and how it dealt with the battle over fair trade coffee. I’ve also written a lot of experiential exercises, like one I’ve done on Toyota (TM) that looks at a situation from the perspective of a Japanese executive, a U.S. executive, and someone from the Japanese and the U.S. press.

Why do you think these communication and reputation management skills are so essential for business leaders today?

If you ask CEOs what is important to them and how much time they spend communicating, they’ll tell you it is a huge part of their job. But it has sort of been cordoned off as an area of specialty, and I don’t think people realize the power of it. I was putting together my list of public relations blunders for the year, and I had so many candidates I didn’t know where to stop, from Anthony Weiner to Netflix (NFLX). When you think about it and go down the list, these things don’t have to happen. Most of the time these executives shoot themselves in the foot. Crisis communication has become so important and there is a tremendous amount of differentiation in management today based on reputation and clear articulation of strategy. Now we have to convince the deans and the business schools that this is an important thing to teach students.

The Business Case for Public Relations

This summer, the Public Relations Society of America asked me to do a piece for their series on the business case for public relations. It seemed particularly relevant to share with you now as we reflect on 2011 and the communications challenges individuals, companies and universities have faced over the past year. This piece originally appeared here in July. The rest of the series is great, and definitely worth a read.

Paul Argenti is professor of corporate communication at Dartmouth University’s Tuck School of Business, where he has been a faculty member since 1981. He previously taught at the Columbia Business School and the Harvard Business School. He currently serves as faculty director for Tuck’s Leadership and Strategic Impact Program and Tuck’s executive program for Novartis. Argenti has written several books and numerous articles for academic publications and practitioner journals.

His most recent book — co-authored with Courtney Barnes — is titled “Digital Strategies for Powerful Corporate Communications” (McGraw Hill). Argenti is a Fulbright Scholar and has consulted and run training programs for hundred of companies. (Twitter: @paulargenti)

Name:  Paul Argenti

Childhood ambition:
To be a heart surgeon — I was pre-med until junior year in college

Current livelihood:
Professor of corporate communication at the Tuck School of Business

What changed (i.e., how you became interested in public relations):
I couldn’t stand the sight of blood! I changed my college major at Columbia University from biology to English and went into a Ph.D. program at Brandeis University to become an English professor. Jobs for English professors were hard to come by in the late 1970s — I was blessed to find a two-year appointment teaching “Written and Oral Communication” at the Harvard Business School. I needed more education in business, and went back to Columbia to get my M.B.A. in marketing. The two combined made for a good foundation to start my career.

First public relations job:
Assistant professor of communication at the Tuck School

What you know now that you wish you’d known then:
How fast time goes by — the secret of life is learning to enjoy the passage of time

Best piece of advice you’ve ever received:
My mentor in graduate school told me to forget about being an English professor — that was definitely the right choice for me.

Greatest professional accomplishment:
Getting a Fulbright Scholarship early in my career and my textbook, “Corporate Communication” — out in its sixth edition next year

If you weren’t in public relations, you would be:
A jazz pianist — I love music

Desired legacy:
That I helped my students think about changing the world rather than moving another widget out the door

Make a “business case” for public relations:
Communication is the only way to execute strategy. You can’t execute it if you can’t communicate it. If more senior executives thought about that, then they might do things differently.

Steve Jobs: Innovator or Leader?

I spoke to the Tuck School of Business on Steve Jobs as a leader. I argued that while Steve Jobs is one of the most important and influential individuals of our time, he was not the kind of leader or manager that executives should aspire to be like today.

Click here to watch the video.





Occupy Wall Street: Takeaways for Executives

I recorded another video for the Tuck School of Business on why executives should pay attention to Occupy Wall Street. Statistics show an increasing problem with Americans’ lack of trust in businesses. Occupy Wall Street raises issues which corporations should not ignore.

You can watch the full video here.

Penn State: How Not to Handle a Crisis

The Tuck School of Business asked me to speak about Penn State as an example of how NOT to handle a crisis. I recorded a short video that provides three things to think about when embroiled in a crisis, using Penn State as an example: get it out in the open early, have one central point of contact and try to anticipate how the situation will play out.

You can watch the video here.


Read More…

Netflix: In Bad Company

Originally published by the Tuck School of Business at Dartmouth.

Paul Argenti, a professor of corporate communication at Tuck, keeps a short list of companies that have made howling communications and business mistakes. The pantheon features firms such as Enron, BP, and Toyota—the latter for its mismanagement of a large recall in 2009 and 2010. Now one more company joins the ranks: Netflix.

Over the summer, Netflix not only decided to raise its subscription price by 60 percent, but also to split itself into two businesses: one for online streaming videos, and another, ponderously dubbed “Qwikster,” for DVD rentals by mail. The immediate and vituperative reaction in the blogosphere and on Twitter was a grim preview of the official numbers Netflix released in October: between June and September, the company lost 800,000 subscribers and more than $2 billion in market value.

Netflix has since scrapped the Qwikster plan, but the damage is done. Argenti believes these missteps could ultimately lead to the demise of a business that was celebrated not too long ago for its market penetration and ability to cross technological divides with aplomb. The question is: where did Netflix go wrong? Read More…

Hollywood’s Favorite Villain

They call it show business, but in American movies, business has long been portrayed as evil incarnate. Why is the new film ‘Margin Call’ trying something different?

I’m quoted in a Wall Street Journal Article on a new movie coming out, Margin Call:

…”Margin Call,” opening Oct. 21, is different. A low-budget movie with a high-powered cast, its Wall Street characters are flawed, cynical—but, for once, actually human…Set during the height of the 2008 financial crisis, the film has an ensemble cast that includes Mr. Spacey, Jeremy Irons, Paul Bettany, Demi Moore and Stanley Tucci. It zeroes in on a group of executives trying to save their 107-year-old financial institution from imminent collapse: notably by selling off billions of dollars in mortgage-backed securities in a single day, before the bottom falls out of the market…

I comment on the evolving public perceptions of business and executives. You can read the full article in Friday’s Wall Street Journal here.

The Great Fear

I had the pleasure of meeting Staffan Thorsell of SJT Communication online through our mutual interest in corporate communication.

He calls a corporations’ resistance or fear to communicate “The Great Fear”. We spoke about how it’s often easier for corporations to say nothing rather than to be wrong, but that not communicating is actually a very strong form of communication in itself. Read the full write-up of our conversation over at Staffan’s blog.

Netflix, this one’s for you: the art of a good apology

This piece is part of The Washington Post’s On Leadership roundtable, which this week explores apologies — in light of CEO Reed Hastings’ ill-received mea culpa for Netflix changes.

“The only correct actions are those that demand no explanation and no apology,” Red Auerbach said.

If only we could all live up to the famous coach’s standards. But since we can’t, we can at least all aspire to making straightforward explanations and clear apologies.

Last week’s bizarre mea culpa by Netflix CEO Reed Hastings was neither. He began an email to subscribers with an apology, which gave the initial impression he would be reversing recent price increases. Instead, he apologized for the way he’d delivered that news, and went on to describe a new business model that could be more inconvenient for customers.

Still, many CEOs do get it right. When they do, it’s typically because they took control of the apology themselves, addressed the issue quickly, picked the right channel to deliver their mea culpa, offered a concession, and really meant it when they said they were sorry.

Read More…

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