News & Views

Freshfield has completed the latest issue of Plane Talk, the newsletter for client the North West Aerospace Alliance (NWAA).

The magazine is distributed to thousands in the regional aerospace community, and this month is a special Farnborough Air Show edition, looking ahead at the key trade show for the sector due to take place later this month. Freshfield will also be supporting the NWAA’s presence at the Air Show through a national media relations excercise.

With an emphasis on good design as well as opinion, information and news, Plane Talk is issued four times a year and is written and produced by Freshfield.

For more information on the NWAA please visit the websites, www.aerospace.co.uk or www.nwaablog.com

It’s shocking. And the more you read and uncover the worse it gets. 

The BP oil spill in the Gulf of Mexico illustrates quite amply how important it is to get the basics right when dealing with a crisis.

Remind ourselves this is a British company with a global reach. Everything it does is scrutinised and yet it doesn’t scrutinise itself in terms of risk in an oil – and gas – spill that would literally sink most other businesses out of sight. 

Why do so many large scale public and private sector organisations simply get it wrong when it comes to the big issues? 

BP has failed to adopt some simple communications principles when they discovered they had a major crisis on their hands. They didn’t accept blame early enough, they didn’t apologise properly and they didn’t take action swiftly enough. If they did then they certainly didn’t demonstrate it in any kind of proportionate way. To compound their short-sightedness they then assume that all will be fine if they produce a plan and spend millions of dollars trying to put it right. 

Without the sign of a senior figure on site making commitments then this would only get worse for them in terms of reputation, and it has. The BP brand has been battered in and out of the markets and they have lost millions day by day as they struggle to play catch up with the PR crisis they have created. 

Barrack Obama, quite rightly, has taken the moral battle to them and they will not be allowed to compromise any further in practical and financial actions. 

Visiting the BP website tells us that to date more than 80,000 claims have been submitted and almost 41,000 payments have been made, totalling more than $128 million.

The cost of the response to date amounts to approximately $2.65 billion, including the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid, and federal costs. On June 16, BP announced an agreed package of measures, including the creation of a $20 billion fund to satisfy certain obligations arising from the oil and gas spill. It is too early to quantify other potential costs and liabilities associated with the incident, and what about the cost to nature; eco systems potentially lost forever.

One can only hope the senior executives at BP have learned the cost to their reputation of not doing the simple things well when you find yourselves in a major crisis. And hopefully, other businesses can learn from this too.

Michael Taylor is editor of North West Business Insider. www.insidermedia.com

For the best part of a year the accountants have been warming their clients up for a likely hike in Capital Gains Tax (CGT). Now may be the time to sell, they say. Well, they would wouldn’t they? Now we’ve had chance to digest the Budget I think it is highly unlikely that many business owners will be rushing to respond to these requests for urgent meetings to start a sale process as a result of the change.

The reasoning has been that an increase is likely. The Lib Dems had it as an election pledge, and was one of the ideas that was co-opted into the coalition agreement. So what’s the reaction been to George Osborne’s first Budget and the effect of a higher rate of CGT? And what’s the realistic expectation of a business owner in the North West of England looking to realise some value by selling a business?

Phil Orford, the chief executive of the Forum of Private Business, had it right when he said the 28 per cent rate is a “gentler increase” than he expected, but was more exalted by the rise in the entrepreneurs’ relief threshold to £5m, which he says is “more than we could have hoped for and it should ensure that most small business owners aren’t penalised too heavily when they come to sell their companies”.

But Catherine Robins, tax partner at Pinsent Masons, has noted that Osborne hasn’t relaxed the strict qualifying criteria for entrepreneur’s relief, despite lobbying from the private equity sector. “Shares will still only qualify if they are held in a ‘trading company’, and the shareholder is an employee with a holding of at least 5 per cent. This will be disappointing news for many management shareholders, and also ‘carried interest’ holders, who frequently do not meet the 5 per cent qualifying condition, as there had been hopes of a more thorough overhaul of the regime.”

But will it make a difference? That’s the key question. Tax changes have to be subtle, or they risk reducing tax take.

And how much does a tax regime encourage investment and risk taking in business? For many business owners it’s also about providing a scheme that their key managers can take part in that doesn’t tax them too much if there’s a nice upside down the line. The best news in that regard was that the tax free amount will remain at £10,100 – it was feared that this could fall to as little as £2,000 – and the standard rate remains at 18 per cent for basic rate taxpayers. Which has to be good news for those on the shop floor with shares in their employer.

Mike Walker, private client partner at KPMG in the North West, says these changes are likely to provide only limited revenue for the government: “People don’t have to sell and history shows that when rates rise, they don’t. Indeed, the domino effect of CGT rises can be massive – this rise could reduce investment and employment and in turn lower receipts from income and stamp taxes.”

But Simon Walker, chief executive of the British Private Equity and Venture Capital Association, has been quick to point out that CGT is high compared to countries like the Netherlands (0 per cent) Italy (12.5 per cent), the USA (15 per cent) and Switzerland (zero).

“The sharp rise in CGT will discourage investment in this country and leave the UK in an uncompetitive international position. This has to be the cause of deep concern. Entrepreneurs’ relief, as currently constituted, does not cover those involved in the investment chain that brings a new idea to the market and its scope should be reviewed by ministers. It would be of real value if the Chancellor made it clear that no further increases in this tax regime will be introduced in this Parliament. Certainty is the essential foundation for innovation. Without this, venture capital will be severely constrained by the creation of the new 28 per cent rate.”

I find myself asking this question: will the venture capital and private equity investors stop looking for ways of making money by investing? No. Will it make the job of raising a fund so hard as to prevent them doing so? Probably not. And will those who do so find fewer opportunities as a result of these changes? No, again. Do I expect the private equity industry to like it? Doesn’t matter.

Mike Barker is Director of Corporate Affairs at NHS Trafford. Here he discusses the opportunities for NHS communicators presented by social media.

There is much research now to suggest that the NHS is failing to capitalise on the power of social media to reach out to their local community.

A neighbouring PCT to Trafford – NHS Salford – is one of the biggest advocates of the use of Facebook and Twitter in engaging with the community. And good on them I say; we must do more in my own organisation.

It recently conducted a survey which found that just over a third (36%) of PCTs had a presence on Facebook, while only 28% were currently visible in the Twittersphere.

It also found that of the two main social media websites, Twitter is less prone to being rendered inactive than Facebook, with 88% of Twitter accounts still being used by PCTs compared with 60% of Facebook profiles.

This has prompted a series of discussions within Greater Manchester’s PCTs (at least) on how they can improve their use of social media to promote healthcare online.

A key challenge will undoubtedly be, how do small NHS organisations, with limited resources, keep Facebook and Twitter profiles active and updated, responding to followers’ messages and Tweets? Especially at a time when there is significant and growing pressure on budgets.

Regardless of the complexity, however, isn’t it about time that locally based NHS organisations started to think more laterally about addressing the challenge rather than keeping it in the “too difficult box”?

In my mind, if good communication is about using the appropriate channels at the right time to reach the right people, then surely PCTs should recognise the diversity of how people in their local communities interact with the media and each other.

This combined with the demise of the local weekly freesheet, could open up a world of possibility meaning PCTs should embrace social media as part of their communications plans rather than avoid it because it is simply too difficult.

More of us should recognise the power of social media and actively seek new and maybe innovative ways in which to harness it. To me, its limits know no bounds.

Therefore, shouldn’t we be seeking feedback on residents experiences and stories of their interactions with the NHS using such channels in order that we can ensure that local services meet local aspirations and needs?

Isn’t it the case that local people have a right and need to know about the goings on within their local NHS?

Isn’t it clearly the case that there are becoming less and less opportunities to use traditional routes to get messages to citizens?

Surely Facebook and Twitter are now so engrained in our mindsets that they are well and truly past the stage of being the latest fad.

NHS should not hide from the mainstream. We should embrace it with gusto and simply get on with doing communications as best as we can, using all the avenues open to us, within the NHS at a local level.

Freshfield has launched a new website for the Association of Specialist Medical Accountants. Following a competitive pitch in London in late 2009, the new website features a full content managed system with separate forum admin, secure members area, members forum that caters for a unlimited number of members, user role management capabilities that restricts the ability of individual users to create or modify content, a member directory organised by county, membership application that automatically generates a PDF download as well as emailing it and automatic email notification to members for new forum posts, fact sheets, case studies and news added to the site. www.aisma.org.uk

Newspapers are changing. They must, to survive. But are they changing fast enough? 

Newsrooms are a fantastic environment to be a part of. Noisy, busy, opinionated, but in my experience, never particularly hi-tech. 

A newsroom of the mid-1990s more often than not relied on old-fashioned electronic typewriters while home computers were already the norm out of the workplace. This was all that was needed pre-internet – it’s often said a reporter needs a pen, a pad, and a phone, and in some ways this is still true to this day, particularly if that phone is an iPhone or Blackberry, for instance. 

Fast forward to 2001 and many of the large regional newspapers had one computer earmarked for internet access, usually with a clunky dial up connection. Most research was done the ‘old fashioned’ way, by asking a colleague or researching a topic in a book, hitting the phones or heading to the town hall to check the electoral role. 

Digital editors on regional newspapers tended to be stuck away in a corner with little communication between them and the rest of the newsroom. Now, this is hard to believe and digital editors often play a larger part in the newsgathering process than their traditional counterparts. 

Newspapers began spending millions on technology in a bid to catch up. In 2006 the Lancashire Evening Post announced it was to become the very first newspaper in the UK to begin a digital switchover, with reporters working for print and online in a way that is considered the norm just four years later. 

The Times made headlines in its own right more recently when it announced its content was to go behind a paywall. Needless to say the newspaper industry and anyone else with a vested interest in its future is watching very closely and dusting off their own plans. 

However, did newspapers miss a trick? Take a look at this revealing piece by the BBC’s Sean Coughlan, who notes the Times Educational Supplement introduced paid for content in 1997 but pulled the plug when it was decided free content was the way forward. http://news.bbc.co.uk/1/hi/magazine/8720282.stm 

So are newspapers, which so often have seemed one step behind what readers are expecting, still missing a trick now? The latest revolution in newspapers has been in the way they engage with readers. It is not enough to simply report stories as if they were to be printed, folded up and taken on a train on the morning commute. 

In this, most newspapers are succeeding on a very basic level. A quick scan of some of the national newspaper sites reveals a common fault: the Guardian’s news Twitter feed has more than 67,000 followers, but the newspaper is only following 964 people in return. Going back a couple of days I could only find three instances where whoever is administering the account had re-tweeted anything, and all these were re-tweets of stories on other Guardian Twitter accounts. 

The FT has more than 100,000 followers, but is following just 42 people. 

Engagement is key, and it looks like, again, newspapers could be missing a trick. Readers want personalised content delivered direct to them via the medium of their choice – Twitter, the iPad, mobile phones. This is a prospect undreamt of just a few years ago – the chance to engage directly with readers in a manner of their choosing. What an opportunity! 

With technology and social media changing so fast, there is a real danger of newspapers falling behind again and I for one am far too fond of the industry in all its old-fashioned, often controversial glory to see it fail.

In the public sector we have been used to communications in a noticeably one-way fashion for some years.

When we consult we have been guilty of asking questions to get a particular answer.  When we do PR we have been guilty of chiselling press releases to perfection by Committee, then releasing them into the dead of night via our websites.  Even when we talk to our staff we’ve seen criticism public sector managers are hierarchical, top-down control freaks and don’t do interaction very well.

Social media is transforming this for the better.

When I first introduced Twitter to my colleagues I was frowned on as being some sort of excited 6th former with an idea that would never run.

12-18 months later it is becoming part of the public sector DNA.

In Blackburn with Darwen we’re interacting 2-way with our residents via Twitter every day.  We campaign on Facebook – from new leisure centres to local neighbourhood issues.  We invite feedback and act on it without relying on over-structured surveys prescribed by the Government.  And we promote and engage with people in different ways via YouTube – most recently on electoral turnout for young people.

None of this is without risk. Culturally it is uncomfortable for organisations not used to genuine 2-way interaction via fast-moving channels. There is risk in allowing staff access and all the HR and legal/libel ramifications this presents.  And there is risk in turning over stones in the community that we may not have done for years.

But there is also massive opportunity.  I see this in 3 key areas – firstly for efficiency – social media provides cheaper, alternative methods for engagement that are more effective than traditional print and outdoor media advertising.  Secondly it complements democracy – if as Councils we’re not open to new ways of engaging with local people then what are we here for? 

And thirdly because of the principle of interaction.  You can talk on Twitter, you can group and organise on Facebook, you can broadcast – and be broadcast back at – on you Tube.  This is the essence of public service and should be at the heart of how we manage our communications mix.

No communications director worth their salt would throw all their eggs into the social media basket alone.  But social media represents a big part of how the world works, and Councils without a proactive social media strategy, and a tolerant approach to staff usage, are really missing a trick.

Tom Stannard is director of policy and communications at Blackburn with Darwen Council

We are delighted to go live with our new website. The site is powered by WordPress, a fantastic open source content management system. Our new site features a number of new additions including a blog and live extracts from our Twitter feed. The rationale of the website is to promote thought leadership, credentials and personality. Thanks to Kath Walker for her great illustration to represent our holistic approach to marketing communications. Feedback on the website is most welcome. hello@freshfield.com Thank you for visiting.

It’s an exciting time to be in PR and communications. We have a raft of new communication tools at our fingertips to add to traditional channels. And, as evident at Freshfield, we have learned a glut of new skills and techniques – and still are learning. This period, combined with the outcomes of the recession, is a real pivotal moment for the whole marketing communications industry and the sub-divisions that lie within it.  

We talk often talk to our counterparts in PR and other industries and it’s quite evident that people’s views differ on what the best channels are to use in 2010. Clients are also equally questioning on the optimum channels to communicate.

In this modern era it’s vital to use traditional thinking. If the channel is relevant to your strategy and your objectives, use it. If it isn’t, don’t. And if you do use it, use good content.

There is far too much box-ticking as people fall to the temptation of the latest new shiny thing. How many times have you heard ‘Get on Facebook’; ‘Traditional press is dead;’ ‘We can make a viral’. If you do hear this, ask ‘why’; ‘who to’; and ‘what for’.

Jumping straight into any tactic without having a sound strategy behind it is wasted money. And never, never ignore the notion that content is king. Since content is both the fuel that drives every communication channel as well as the principal product of PR activity.

Integration is also an important facet. Don’t place all your eggs in one basket. Integrating all components relevantly will aid every campaign.

An array of exciting possibilities has not been lost on sharper-minded PR professionals. They correctly deduce that the digital era represents a fresh conduit that does not require new communication skills so much as new approaches to delivering them. Same nut different shell.    

The tools of the trade are evolving. But the basics of strategic thinking and good content are not.

Welcome to the new Freshfield website and please return to pick up on insights and opinions from Freshfield and our guest bloggers.

Our creative and digital teams have just completed a successful teaser campaign promoting an exclusive summer event at Stanley House Hotel to mark the completion of stage one of its £15 million redevelopment. Original photography was used to visualise the finishing touches being made to the works. Over 400 guests have confirmed their attendance for what is an important event for the Hotel.

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