When 10% failure is way too much

The recent Parliamentary Committee Hearings into the big four banks may have been considered a ‘damp squib’ by those calling for even greater public accountability but it did force some interesting admissions from the bank bosses.

There was a standard and expected amount of mea culpa and contrition in evidence but one form of words could come back to haunt Ian Narev, the CBA boss. Here’s a transcript of an exchange on the quality of financial advice provided to customers:

Narev is asked by Coleman (Committee Chair Liberal MP David Coleman) about the financial advice scandals.

He acknowledges the bank failed to act with “requisite speed” to protect customers, although only about 10 per cent of the 8000 people whose files were reviewed were found to have been given faulty advice.

Whilst Mr. Narev was being as honest as he could it is hardly reassuring to hear that if you seek advice from the ‘experts’ at CBA there is a 10%, or possibly even higher, chance that you will be put wrong and suffer a financial loss. They don’t advertise for business by saying ‘we get it right, most of the time’.

Again, words really do matter and even with the most thorough preparation (which we are sure CBA undertook) they can come across quite differently to the audience from the intent of the speaker.

How hard can it be?? The transition from print to digital

The two leading Fairfax Media properties for decades were The Age and The Sydney Morning Herald. And didn’t advertisers know it.

Often referred to as being ‘rivers of gold’ the spend on advertising in their voluminous publications were the stuff ad rep’s dreams are made of.

That was then. Now, both papers have been reduced to wafer thin tabloid-sized weekday editions with virtually no advertising and barely a page of classifieds or public announcements.

There could be no better demonstration of Fairfax’s fall from grace than the post AFL Grand Final edition of The Age. Made up of only 40 pages, 13 of which were sport, and carrying only two half page colour ads.

So how hard could it have been to get so few ads right? Apparently too hard. The Age ran an ad from Western Bulldogs supporters,  University of Victoria, congratulating them on a fine season and a great effort despite not winning the flag.

Notice anything unusual? The Age’s ad department clearly did not.

One mistake isn’t the be-all-and-end-all but it’s not just one mistake. Industry insiders tell us that there is a constant stream of similar mistakes that, in most cases, are only picked up once the client or agency puts in a call.

Fairfax has all but given up the ghost on print and, it would appear, allocated resources elsewhere. They are focussed on online content but even there questions abound. The content deal with the Huffington Post has opened them to the accusation of becoming nothing much more than ‘click-bait’ focussed. And the recently revamped online editions for the leading mastheads do little to disprove that theory.

Fairfax’s mismanagement of the transition to digital has left fertile ground for more agile competitors. Witness the arrival of The Guardian with a digital only Australian edition.

Companies and organisations are faced with an increasingly segmented media landscape. There is now a combination of online ‘broadcasters’ and digital ‘narrowcasters’ that businesses need to work with in order to get their messages through to their target audience. A ‘publish and pray’ media release will not do the job. Actually, it never really did.

It is a rapidly changing and evolving media environment and RMK+A harnesses its media expertise to continually review the risks and opportunities for its clients’ media engagement needs.

Narcissism and leadership

A sub-optimal combination or How words and actions betray the self-obsessed

Irrespective of one’s political leanings, or view of the desirability of a second Clinton Presidency, the one thing that the current USA Presidential campaign is making very clear is that even in the age of self-obsession voters soon tire of obvious narcissists.

Someone needs to tell Donald Drumpf (yes, that is the original family name) that ‘leadership is not all about you’. As The Donald’s unravelling campaign demonstrates, people want leaders to be all about the concerns of the populace not the projection and protection of the candidate’s ego. So, no Donald, it’s not all about you, just as it was never, in our own example, all about Kevin, nor is it still.

The particularly disappointing thing about the Trump campaign is that it is so bad that it allows the Clinton campaign to do nothing other than say – ‘ well you can’t let him into the Whitehouse’. Policy discussion has not just taken a back-seat, it has been left at the curb.

The cult of personality is a shallow and lazy way to pick leaders. Perhaps the Trump candidacy, fed as it has been by the media new and old, will finally demonstrate that there needs to be some focus on more than grubby political blood sport. Yes, nasty narcissists have been, and still are, elected. However, ultimately, all have failed to be leaders of any quality and reputation. The shame of it is the damage done on the way through.

There has certainly been no shortage of such characters in the world of commerce.

What does all this tell business? Well, apart from driving more disillusionment with the political process, the lesson on leadership is plain. Words matter, a lot. Actions matter, even more and attitude matters, the most.

And, right on cue, up pops another example of actions not matching words.

When the, for now, CEO of Wells Fargo, John Stumph, faced a Congressional Hearing on the issue of the bank opening over 1 million accounts without customer’s knowledge – and charging them for the privilege- he claimed that the buck stopped with him. What he did, though, was to blame the 3,500 low level staff he fired for the breach (but only after regulators found out the bank was engaged in the massive fraud).

Senator Elizabeth Warren didn’t let him off lightly. She pointed out that he had not suffered one cent of penalty (he is paid over US$20 Million in salary and bonuses per year) and that not one senior executive had resigned or been fired. That, she scolded him, showed a total lack of accountability. Now he is unlikely to hold his job much longer and the bank’s board has ordered him to pay back $41 Million in bonuses and stock options.

Leadership is having and demonstrating the right attitude, saying the right words and matching them with the right actions. Egomaniacal rants about how “I alone can fix this”, ego insecurity that demands vicious and venal retorts to real and imagined slights and demeaning, disrespectful behaviour to ‘friend’ and foe alike, are not the marks of a truly successful and respected business leader. We can only hope that they prove to be just as unsuccessful in modern democracies.

RMK+A is highly experienced in assisting senior executives and CEO’s with strategic communications, including key message development and all aspects of stakeholder engagement.

Who Is Connected To My Car?

Imagine. The driverless and connected car. The Jetsons meets Blade Runner, with wheels– for now!

The benefits are mind-boggling – but so too are the challenges affecting safety, privacy, regulation, law enforcement, and more.

Yet, to the general community, car makers don’t appear as alert and active as they could be in confronting these issues. Do they understand the value of engaging with major stakeholders long before the technologies swamp markets with unexpected vulnerabilities and are hit heavily by retrospective regulation?

So, keep imagining. You enter your “car”, without even a fob, and merely utter your destination. The Occupant ID and GPS already know you. The electric powertrain whirrs. You’re off, as you swivel on a monocoque-encased seat to face …. your workstation, where once was a steering wheel and dashboard.

Is this automotive nirvana for real?

Would you be in your seat, “unnecessarily” scanning the road; fretting about whether those twitchy 50 on-board modules are blinded by the sun and will plough you into a truck? Or would you be totally disengaged? What will be your legal obligation in terms of being “in control”? We’ve seen the first fatality already with a driverless Tesla.

But while the current question may be whether program engineers can foresee every permutation of personal safety risk, this is far from the only issue. In fact, the connected car will no longer be just your car. It is your life, your possessions, your history, your business, your misdemeanors, your purchases, your buying, travel and driving habits and all that can be communicated by networks.

What happens when you being driven along and, abruptly, everything powers down? As the vehicle slides itself safely into a roadside bay, a message instructs: “Your vehicle authority is suspended.”

It seems your bank has won a court order to take over your vehicle … it’s about a disputed payment, or a business debt, or an identity anomaly, or … Whatever. But what is clear is you are not in control. The cloud, and everyone connected to it, can potentially and remotely take control.

What else can happen? May creditors pinpoint your location to serve you? Can mobile salespeople intercept you in car parks? Will alienated spouses find you? Are business secrets accessible via your mobile platform? You, and your data, are an open “book”. Legal use of data may come with the purchase or lease of your vehicle, and on-selling deals done without you; like online software. Do we really understand what will be done with our data?

Of course all of this may be solved with a combination of regulation, legislation and technology.

But is the automotive industry active enough in shaping the outcome before it is shaped for it?

There is a huge task ahead in co-ordinating stakeholder relations, community consultation and government relations to draw the parameters of acceptability for communities and customers.

Without this, the legislation and regulation will come anyway – especially after some data breach, like the census scenario. At that point everything will happen to the car industry, not with it.

We see the opportunity to be active now and to allow customers and communities to shape the local evolution of the connected car … rather than try to do this after a crisis. The question is: will the car industry be caught asleep at the wheel?