The US Chamber of Commerce, which proclaims itself to be “the world’s largest business federation representing more than three million businesses and organizations of every size,” has a big problem on its hand.

High-profile companies have been quitting the Chamber, a virtual Who’s Who of top businesses, including Apple, PG&E, Nike, and Exelon.

The reason: the US Chamber’s opposition to the Waxman-Markey climate change bill.

The US Chamber points out that “ore than 96% of U.S. Chamber members are small businesses with 100 employees or fewer” and that “As the voice of business, the Chamber’s core purpose is to fight for free enterprise before Congress, the White House, regulatory agencies, the courts, the court of public opinion, and governments around the world.”

But its members seem to feel that the U.S. Chamber is not listening.

And, as a member of my local Chamber of Commerce, I’ve been upset about some of the positions staked out by the US Chamber: they didn’t truly seem to help small businesses.

I had mentioned something to my local chamber, but it turns out that local chambers of commerce are not necessarily members of the US Chamber — which is a branding problem.

For both the US Chamber and local chambers.

I’m a member of a local chamber, but have no input on what the US Chamber’s policy making function. Yet I was upset enough to consider quitting my local chamber, which has nothing to do with the US Chamber.

Meanwhile, the US Chamber seems to be responding to the news that more big-name members are quitting, seemingly each day, by sticking to its guns.

I’m sure that the US Chamber is losing smaller companies, too.

Yet as a call-to-action for prospective members, the Chamber says, “The Chamber understands your needs and protects your livelihood as if they are our own.”

It’s not a matter of them being “as if they are our own.” As a membership-based organization whose mission is “to fight for free enterprise,” its members’ needs and livelihood are their own.

So, the lessons learned:

1. You need to listen to your members. It certainly doesn’t seem like the US Chamber is doing this. I’m sure the US Chamber conducts surveys of its membership to help determine the direction and policies to support. But when even energy companies are quitting because they have deep concerns regarding the US Chamber’s position on climate change, that’s a problem.
2. You need to respond to your members. The lack of response to the companies leaving seems to indicate that the US Chamber doesn’t truly care about what its members think. In fact, according to Fast Company, “Why Did Apple Quit the U.S. Chamber of Commerce?” “Apple’s move probably won’t change any minds in the Chamber of Commerce–Eric Wohlschegel, a spokesman for the organization, shrugged off the mass exodus by explaining that some companies have more to gain from the Chamber’s stance than others.” Seems like that’s not acting as if members’ needs and livelihoods are “our own.”
3. You need to realize that, whether you think it’s one or not, there’s a crisis. Shrugging off “a mass exodus” is not a way to manage a crisis. There is a message from the president of the US Chamber about its climate control policy, but it’s dated Sept. 29, and a lot of the high profile membership resignations have occurred in Oct. They haven’t even issued a press release this month, as of this morning, Oct. 7, to present their side of the issue. And there are no current op-eds on the site with data that supports a controversial policy.
4. You need to engage your members. The first step could be to say, we realize that our current stance on climate control may be unpopular but we think it’s the right one, but we’re willing to meet with members to explain our reasons. Town Hall meetings have a bad tone these days, but why not set up events to talk to and hear from members? Why not show the level of membership support for the current policy? Yet we have no idea of how many members surveyed agree with the policy. So far the US Chamber has not done a good job here.
5. You need to reach out to prospective members. Considering that the US Chamber needs to continue to recruit members, they need to use policy positions that will encourage prospective members to join. Doesn’t seem like fighting against climate change would generate new members.

Meanwhile, I’d have to say that the local chambers seem to be ignoring the matter, too. They may operate independently, but a lot of people may not realize that. There’s bound to be a lot of people and local businesses upset, and that could leave them with negative feelings about all chambers of commerce — which is not what you want right before renewal season. I know it’s not the local chambers’ battle, but they need to let their local members know they’re not part of the US Chamber.

Is Canada the newest entrepreneurial frontier? Maybe. Globally, the country has the highest population of entrepreneurs within its working population (15.9% compared to 10.1% in the U.S.*). By some measures, it’s easier to start a business in Canada than in almost any other large-economy country: Canada ranks #1 among the G-7 and OECD countries for fewest number of procedures required to start a business and for the fewest number of days required get a new business off the ground. (more…)

In an interview in BtoBObline, Marcy Shinder, VP of Brand Strategy and Marketing at American Express OPEN, offered up these tips (in a different format):

• A downturn is a good time to identify ways to transform a company.
• A lot of companies look at delivering better customer service as a differentiator. (For service organizations, this can be a challenge since your competitors are likely to be trying the same things. Instead, think about what improvements would deliver the most value.)
• Companies need to stay relevant. (In other words, think about the problems customers buy from you, and make sure that what you provide truly solves their problems.)
• Provide tangible value. (We have a client with a fascinating vision of the future of technology in their sector, but we’ve advised them to make that game-changing vision a secondary message because their first goal is to sell product. So they need to focus on ways they provide real value to their customers. A compelling vision of what’s to come is good, but that doesn’t always help customers when deciding to buy now instead of putting off the purchase for later.)
• Companies need to market differently from the day of the 30-second spot. They need to provide insight, inspiration and advice during every customer interaction.
• Companies need to answer what they can do for their customers.

Some good common sense advice, yet I’d bet a lot of companies don’t follow up on this. Check out the complete article, “American Express’ Shinder on marketing to small businesses.”

Here’s a great opportunity for businesses that have grown wildly over the last few years: Inc. Magazine wants your story.  Winners of the Inc. 500|5000 will be featured in future Inc. print and online stories- a great way to gain publicity and recognition for your efforts in growing your company.

“Potential investors pay close attention to the Inc. 500|5000 list, and we received much investor interest over the past several years,” says Doug Fowler, CEO of SpectorSoft, a company named to the list several times four times since 2004.  Adds David Mammano, CEO of Next Step Publishing, named to the list in 2007: “Inc. has done a great job with the Inc. 5000 brand by making it a well-known, credible award known locally and around the world. It’s a nice universal stamp of approval.”

The award not only increases visibility for your business, it can also help feature your local community as a hotspot for growth.  Here are a few benefits winners of past awards have cited:

• Recognition: Company awards let employees know that their hard work matters

• Publicity: Along with the magazine feature, your business will be searchable on the Inc. 5000 database, and you’ll be eligible to attend the 2009 winner’s conference.  The Inc. award is recognized by customers, investors, and other businesses as one of the most prestigious for growing companies.

• Reputation: Many companies cited the boost in applications after winning the award.  National recognition allows you to attract and retain top talent.

• Community Visibility: Inc. also highlights winning companies by industry and geographic area.  Winning the award can be a great way to highlight your achievements in your own neighborhood.

• Inspiration: Women-owned and community-based companies are highlighted, allowing your business to serve as an inspiration to other entrepreneurs.

The mission of the 500|5000 contest is to reward those companies that are helping to jump-start the economy with rapid growth.  Applicants must have begun operations prior to 2005, and have sales revenue of over $2 million for 2008.  The contest deadline is approaching fast on May 22nd so visit the application page here for more details and specific qualifications.

If you are still starting out and don’t qualify yet for this contest, start now and grow your business with online marketing experts.

When approaching the media, you’d better be darned sure your story is interesting. Got a new product to announce? Just signed a new client? Opening store? If so, that’s great. But it’s useless in the eyes of the media unless you have something that makes it unique. So what makes a good story? How can you turn your announcement into a fascinating topic of interest to the media. Here are a few must-do’s:

• Focus - Your story should be about one specific topic. Being too broad makes the story vague and uninteresting. Don’t add a bunch of mumbo-jumbo just because you want to fill a page of paper, keep your story focused on one topic. Any filler information should only serve to support your main idea.

• Drama- Your story needs to have something that is dramatic, unique, different… If you’re opening a store, what makes the opening different than others? Why is it unique? These are questions you need to answer yourself before you propose the story to someone else.

• Sources-When promoting your story, try to look for other sources that support your idea. Customers that enjoy your service or product and are willing to speak with the press are a great resource for a reporter. Perhaps even a spokesperson from the Chamber of Commerce or local Kiwanis club. Anyone that is independent of you and is willing to offer “kudos” to a member of the press can really help set your story apart from others.

• Biggest? If your story is a “first” (or biggest, largest, fastest, etc…), the press eats this kind of information. In fact, you might even want to try to contact the reporter you think might give you the best exposure to your customer base. Offer an exclusive. An exclusive is an offer to a journalist to run the story first, before anyone else. Now if you do offer an exclusive, it really has to have an incredible “Wow” factor, so think about this carefully first.

• Data: Reporters love data. If you can provide any kind of statistical data that supports your story, you’re more likely to get the attention of the media. If you think about it, you’ll often hear the media quote a source saying; “The top ten reasons….” Numbers and statistics can really make your story more interesting to reporters.

Just remember, when you’re writing an announcement, don’t get caught up with ensuring you write what you want. Its not about you…it’s about the journalist and their audience you’re trying to reach. What will get their attention and how can you write a story idea that will stick? Follow these suggestions and watch how quickly your idea will be gobbled up by the press.

If you need expert PR advice and a professional to help, check out Resource Nation’s business center of public relations professionals.

Pay-For-Performance

A Pay-for-Performance plan is a fairly new phenomenon in the PR community. In short, it means you only pay for a PR firm’s work if it results in some kind of news coverage for you or your company. It’s a great solution for the business first starting out in PR without a huge budget and would prefer to earmark it for results. It’s great if you’re not too concerned about your overall marketing communications strategy but still want to see how public relations can help lift your voice of the company in today’s conversational media.

Retainer

Contracting with a PR firm using a retainer is a way to ensure you have someone to handle all duties associated with your media reach. A retainer is a set dollar amount that’s paid to the PR firm every month. It’s usually based on the number of hours per month you expect the company to work for you. Its perfect for a small to mid-sized company in need of outsourcing all of their public relations needs including strategizing, implementing and designing comprehensive marketing/public relations campaigns. Basically, it’s when you need someone to be there for you to get the job done…no matter what.

Hourly or By Project

If you’re a business that needs help getting important marketing and PR projects done, sometimes just paying for the time it takes to get the project done makes most sense. Those projects can consist of items like press releases, customer newsletters, or press kits. It boils down to this: Whatever needs to be done, tell your chosen firm or consultant and they’ll get it done. For example, let’s say you’re about to announce a new product and you need a press release written. The firm will write the release, post it on the wire and pitch it to reporters…then just bill you for the time needed to get the work done.

Overall, the best public relations firms are those that offer multiple ways of paying for their services. Do your homework and look closely to see if those you’re considering will help you when it comes to paying the bill. You’ll be much better off if you do.

Hurricanes, floods, lawsuits, financial meltdowns, earthquakes…I’ve handled them all as a PR professional. And now, as the nation deals with the aftermath of Hurricane Ike and the Wall Street meltdown, we not only need to pray for those affected, but we should also take the time to ensure we’re prepared if something like this happens to us.

Handling a crisis as a public relations professional takes intelligence, grit, experience, and sometimes a general ability to be at the right place at the right time. You want your employees and customers to know that you’re in control of the situation. That means, wherever the conflict, that’s where you’re at…being a physical presence at the scene, ready to handle the media and customers.

When the island of Kauai was hit by a horrific hurricane some time ago, my company had a great number of customers and employees affected. Within 48 hours of the eye hitting landfall, I was on an emergency cargo plane packed with food rations and water — enough to last me for four to seven days. My mission was to ensure our customers knew that if they needed help, our company was ready and prepared.

When I arrived at the island airport, I was concerned because of the long lines of people waiting to get OFF the island. Rental cars were just parked and abandoned on the curb. Nothing looked normal and in fact, the scene looked like it was straight out of a war zone.

The first thing I did was nab a rental car that was sitting at the curb with its keys still in the ignition. From there, I ventured off to find a hotel for which I supposedly had a reservation. I found the hotel in the dark. I went to the lobby to check in. Even though there was no running water or electricity, the hotel actually had a room for me. No matter the conditions, I was there.

You see, to handle an extreme disaster, it’s important to be where the media is. The day after my arrival, I struck up a relationship with the local radio station that was running regular island updates to help keep its listeners updated on the island’s situation. They gave me regular access to airtime so that I could inform my customers about what they should do and what our company was doing to help them. In addition, I tracked down CNN, the Los Angeles Times and a San Francisco radio station, all within 48 hours of my arrival, to show them how our organization was responding to the incident. Despite the conditions and perilous situation, we managed to make our presence known.

The lesson here is not so much on how to deal with the elements…but how important it is to be at the disaster site as soon as it happens. That’s because all of your stakeholders – employees, customers, partners, and vendors — need to be assured that no matter the circumstances, your company is a partner with them…in good times and in bad.

There’s an old saying that if you want people to know that you care, tell them…and if necessary, use words. Being at “ground zero” speaks volumes about your company’s commitment. That kind of message is priceless.

Recently, Circuit City made news because of an employee’s reaction to a spoof published in Mad Magazine.

You can check out the faux ad here.

I read Mad Magazine as a kid, years ago — the exact number of years ago is not relevant; most of the usual gang of idiots from when I read it are still alive and still writing for it. (How’s that for a career plateau?) And now they have a website.

As well as a bit of controversy because a Circuit City employee saw the spoof, and didn’t like it, and decided to respond.

How?

Apparently 40 Circuit City stores also sell magazines, including Mad Magazine. The company could’ve just pulled the issue, but instead, an employee instructed all 40 stores to “remove” and “destroy” all copies of the offending issue.

That email got out, and the spoof turned into an incident. Ultimately, a Circuit City “PR guy,” James Babb, wrote a self-deprecating letter of apology, noting that he had written to the editors of Mad Magazine, explaining that “As a gesture of our apology and deep respect for the folks at MAD Magazine, we are creating a cross-departmental task force to study the importance of humor in the corporate workplace and expect the resulting Powerpoint presentation to top out at least 300 pages, chock full of charts, graphs and company action plans.”

The result: Mad Magazine got a significant boost because no one really has paid any attention to the magazine. (Some online posts mentioned being surprised that Mad Magazine was still publishing.) Circuit City, on the other hand, is taking a hit for not having a sense of humor and for mishandling the situation. And way more people know about the Mad spoof than would have seen it or would have talked about it if Circuit City had done nothing.

This is known as the “Streisand effect, ” defined by Wikipedia as “a phenomenon on the Internet where an attempt to censor or remove a piece of information backfires, causing the information to be widely publicized. Examples are attempts to censor a photograph, a file, or even a whole website, especially by means of cease-and-desist letters. Instead of being suppressed, the information sometimes quickly receives extensive publicity, often being widely mirrored across the Internet, or distributed on file-sharing networks.^[1][2]” (The term was coined after Barbra Streisand sued a photographer who had taken and posted an aerial photo of her house in a publicly available database.)

We can see the Streisand effect at play recently with Boing Boing, when Xeni Jardin, a contributor to the site, “unpublished” — a nicer way to say deleted — “all references to a blogger named Violet Blue,” according to a New York Times article, “Poof! You’re Unpublished.” The mere act of “unpublishing” became known, and had the opposite of the intended impact.

So, here are four variables to consider about managing corporate reputation:

1. What’s being said?
2. What kind of reaction is being generated by readers?
3. Where is the statement appearing?
4. Who wrote it?

By evaluating each variable, you can make the decision as to the appropriate way to respond. What’s important to keep in mind is the need to keep a sense of humor and the need to take emotion out of the process (this is the first mistake Circuit City made).

For example, we had a client once about whom someone was posting very negative statements. We looked at those variables, and determined:

1. What was being said was very negative and had no basis in fact. The company could have sued, and would’ve have had a decent case.
2. These posts were not generating any attention, buzz or links. In part, it may have been a topic that most people didn’t understand or care about or because the rants were rambling and incoherent and filled with typos and bad grammar.
3. These posts also were published on obscure sites, with dubious credibility.
4. The person was writing deeply-felt pieces but had no credibility.

This last factor is not always important, however. For example, a New York Times article this week, “On Wall St., Reputation Is Fragile” by Andrew Ross Sorkin, wrote about the downfall of the lesser known of the two Steven Rattner working on Wall St. The reason: posts with all kinds of allegations about Rattner were written by the ex-husband of the woman with whom Rattner had had an affair several years earlier; the posts also contained inaccuracies, according to the Times. Yet because the posts were so widely available, Rattner, who had been called a rising star, instead resigned from his job.

In the case of Circuit City, the “who” didn’t matter. I’d say the fact that it appeared in Mad Magazine also counted against taking any action; that might be different if Mad targets the ideal Circuit City customer. If Andy Borowitz wrote something similar in his “Next Month’s Business News” column in Conde Nast Portfolio, I think that could be different if only because Portfolio readers could be investors or shortsellers of Circuit City stock. (However, I would have advised against taking action, even if the spoof had been published in Portfolio.)

As for evaluating the reaction the spoof generated, Circuit City could have done a number of searches to see if there were any. But disposing of a few copies from 40 stores was far from being the right call.

There are steps companies and people can take when the media gets the facts wrong. But you can’t do anything with humor or with opinion.

Bottomline: if they had been asked about the Mad Magazine spoof, Circuit City should have said, “What, us worry about satire in Mad Magazine? It’s an honor to have Mad Magazine poke fun at us.”

For more perspective on this matter, check out the Ragan Report’s article, “Circuit City redeems a PR blunder,”.