Tag Archive for: Public Relations

Interview with Charlie O’Rourke on The Pros and Cons of Outsourcing

Interview with Charlie O’Rourke, Financial Services Leader, former SVP of First Data and currently Chief Technology Strategist with the Fotec Group: “The Pros and Cons of Outsourcing”

Recent industry surveys reveal that more businesses are using outsourced services as a means of cost-cutting and potentially a strategic business productivity tool.  In these studies, executives said they believe outsourcing can provide many benefits, including access to a valuable talent pool where a company may lack expertise.

We asked Charlie O’Rourke, one of the financial industry’s most respected and successful veterans, to give his insights around the growing outsourcing trend and provide some tips on how a company can be successful leveraging outsourced services while avoiding potential pitfalls.

Attain Marketing: We’ve seen more companies looking to outsourced services as a way of achieving their business objectives.   In your opinion, is this a good trend for businesses and what benefits can they gain by outsourcing?

O’Rourke: Yes, I believe those companies that prepare themselves for outsourcing can benefit immensely as part of an overall business strategy.

First, let me clarify what I mean for our purposes here today.  To me “outsourcing” is a practice used by companies of contracting out some of their business functions to an external provider.  For the purpose of this discussion, I am referring to outsourcing as the utilization of hired resources inside U.S. borders.

While I agree there are benefits that a business can gain from outsourcing, there are also potentially huge downside risks of incorporating outsourcing without proper evaluation of its practice within a company.

Outsourcing is not something a company should embark upon simply for cost savings, recommendations from others, or without a critical eye toward the potential outcomes and whether outsourcing fits within their overall business strategy.

I realize expense reduction is often a very significant factor.  However, other considerations are just as or even more important.  A proper corporate outsourcing readiness evaluation would include, among other things, assessment of the company’s strengths and weaknesses, core competencies, culture, traditions, and vision for the future.  When a company’s strategies are well defined and aligned with a vision toward the future, they will include how to utilize outside resources to augment and complement business objectives.

If there is no strategy and strict oversight, outsourcing may end up costing your business more in the end.  Additionally, it could possibly destroy effectiveness in other areas such as agility, flexibility, customer service quality and competitive advantage.

However, if consistent with its strategic objectives, incorporating outsourcing of appropriate business functions can provide a company with the ability to better focus on its core business and gain competitive advantage at the same time.

Attain Marketing: Should businesses have concerns about outsourcing certain business functions?  In other words, are there “best practices” around outsourcing?

O’Rourke: Someone once told me that if everyone is adopting a “best practice” you can bet that it is no longer the best.  Now that the “best practice” is well understood, it is a perfect opportunity for consultants to provide textbook solutions and cookbook remedies while extracting nice fees for their services.

Mindlessly following “best practices” because they have been used at a Fortune 500 company, are the newest fad, everyone is adopting them or they are the rage for consultants nowadays, may not be in a company’s best interest.  Each strategic and tactical practice needs an evaluation with a critical eye on your company objectives.  Specifically, the practice should fit strategically, operationally, and culturally in your company.

It is unwise to “copy” or “clone” another organization’s recipes in terms of strategy, business theory, management tools or technologies.  Only when you understand your culture, values, purpose, strengths, and direction should you consider which business functions are eligible for outsourcing.

Each company has unique requirements and needs to evaluate which practices are “best” for its business, culture, and customers.

If I were to give general guidelines for outsourcing, I would say companies should retain their core functions in house and then look to outsourcing those business functions that are noncore.  That is the simplest guideline I can give.  Although often difficult and time consuming, proceeding without a diligent assessment will guarantee less than optimum results and possibly failure.

Attain Marketing: What are some of the business functions that are best suited for outsourcing?

O’Rourke: Given some of the caveats above, some logical places (unless of course a core competency) to look may include functions in human resources, administration, accounting, marketing, public relations, communications and legal.

There will be many others depending on the company and each business will have to decide on the criticality and impact of outsourcing in a particular area.

Attain Marketing: Being marketers, of course Attain is interested in your thoughts about outsourced marketing and PR services.  Are there advantages?

O’Rourke: I believe companies like Attain can definitely enhance a company’s marketing, media relations, and communications capability.

Small companies are obviously going to benefit quite a bit by using companies like Attain because they typically do not have sufficient, or in many cases, any expertise, talent and skills to effectively perform many of the required functions in these areas.

In the case of larger companies, the ability to utilize outside marketing expertise often times yields tremendous advantages.

I believe a company can achieve optimum outsourcing success when it embeds the resourced personnel with their internal employees.  They assimilate into the culture and have the same objectives as others in the corporation.  They understand the company values, culture, strategies as well as the industry, the business, and the company’s products and services.  They serve as an expert member of teams, departments, or divisions of the company.

Attain Marketing: Well said Charlie, and many thanks for the unsolicited plug ;-).

I’d like to add, potential advantages gained through an outsourced marketing team include access to an expanded list of analyst and media contacts, specialized public relations and marketing tools – as well as expanded services that may be limited or not be available at all within a company.

In addition, an outsourced team of marketing/PR specialists can provide an expanded scope of services in the categories of lead generation, sales support, social marketing, communications and media relations – possibly at the same cost as one or two internal employees who are providing a more limited scope of services defined by their specific role.

Any last thoughts?

O’Rourke: Companies that are too quick to outsource business functions as solely an expense reduction often suffer negative consequences.  Lower cost is always alluring but results may be much different than expected.  Companies should adopt an outsourcing plan that fits within their overall strategies.  This will yield results that are consistent with their direction and that do not negatively affect the company.

Again, I want to emphasize that company culture is very important.  Culture is often overlooked in the total equation.  The ability of a company to accept outsiders and embed them into the business is crucial.  Outsourcing will fit in some cultures but not in others.

I believe outsourced marketing is an area that makes sense, especially when outsourced personnel become an extension of the client’s in-house marketing, public relations, and public relations teams.

Attain Marketing: Many thanks, Charlie, we appreciate your input.

Today we’re seeing many companies turning to outsourcing as a way to deal with budget restraints while staying competitive in a sluggish economy.   Smart companies know that they can’t stop their marketing activities – especially if they plan on establishing healthy longevity in their business, so they see outsourced services as a great way to leverage talent and stay proactive.

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Keeping it Real: Social Media Success Tips for 2011 and Beyond

I recently dusted off my copy of “The Seven Habits of Highly Effective People” by Stephen R. Covey and was refreshed again by the book’s tried and true principles.  In the new world of social networking with 24/7 Internet and mobile feeds screaming “look at me,”  “hear me,” “pay attention to me” − scattered with fake testimonials and other dubious schemes meant to manipulate Internet rankings, it can be difficult to believe that doing anything “old school” can reap results.  Forgive me for what may come off as preaching, but I, like Covey believe there are timeless truths that when properly applied to all facets of life will yield lasting results that don’t fade with the latest and greatest fad.

“Personality Ethic” is Covey’s description of the recent paradigm where success has become more of a function of personality, of public image, of the use of more shallow tactics to drive human reaction vs. applying genuine principles, what Covey calls “Character Ethic” to achieve results. Covey states, “the glitter of the Personality Ethic, the massive appeal, is that there is some quick and easy way to achieve quality of life − personal effectiveness and rich, deep relationships with other people− without going through the natural process of work and growth that makes it possible. It’s symbol without substance. It’s the ‘get rich quick’ scheme promising ‘wealth without work’.  And it might appear to succeed – but the schemer remains.”

I believe building fruitful relationships with media, bloggers, partners and customers is a process that inevitably takes an investment of time and effort to produce real and effective results. Ultimately it is Covey’s principle of “Character Ethic” rather than “Personality Ethic” that will help companies achieve superior long-term results in their marketing efforts.

If you decide to follow Covey’s higher path of “Character Ethic,” here are a few ideas on how to get started…

  • Build a Genuine List of Social Networking Followers/Fans: As much we’d all like to automate social networking – and there are great tools that help this process – beware of programs that build your follower/fan base on autopilot.  It’s really not about the number of followers, but rather their relevancy to your business and  loyalty that counts.  Taking shortcuts may seem to increase popularity more quickly, but thoughtful and personal communications build genuine relationships over time.

TIP:  When someone becomes a fan or follower, don’t send a self-serving automated message − take the time to send a personalized “thank you” note.  This is the opportunity to make a first impression that is meaningful and demonstrates your genuine interest in the person/company that is following you.

  • Toot Someone Else’s Horn: If possible, it seems the self-importance of individuals and companies has become even more inflated with the advent of social networking.  If you want to take a fresh approach, drop the “it’s all about me” approach and become the advocate of your industry peers and customers.  Use air time to promote their achievements and accomplishments in addition to your own.  In Charlotte’s Web, it was the “humble” pig that amazed everyone, won the blue ribbon, and saved his own life in the end.  Take the time to be genuinely concerned about your contacts and their specific interests and they will become faithful followers in the end.
  • Adopt a “Win-Win” Approach to Customer/Partner Relations: In my previous blog “Tried and True Strategies for a Prosperous 2010”, I noted that many companies fail to engage their customers and partners because they do not present a compelling value proposition. Self-centered requests often fail while successful programs are based on answering the customer’s question of “What’s in it for me?” Recently Google changed their search engine ranking criteria and added customer feedback as a key component of how companies are ranked.  As you can imagine, this has spawned a variety of schemes that help companies improve their online reputation with fake customer ratings and phony feedback.  Despite the allure of such shortcuts, the best strategies require you to build customer loyalty with good products and excellent customer service throughout the sales cycle.
  • Honest Communications, always:  Many companies have learned the hard way, but it’s always better to be honest about mistakes than to cover or lie.  And with online communities, chat boards, Twitter, citizen journalists, and the likes, it’s only a matter of time before truth gets out.  People and customers are much more forgiving of companies that are willing to air any dirty laundry before they find out themselves – everyone makes mistakes, so own up to them quickly.  A reputation of integrity and honesty will stand the test of time and companies that build their brand around such principles will be rewarded in the long run.

So may we all find the time during the holiday hustle and bustle to reflect on what “Character Ethic” principles we can apply that will help shape our businesses and lives to make 2011 the best year yet.

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Twitter Me This

Robert Mullins is a freelance technology writer in Silicon Valley. His writing can be found at his Robert Mullins blog.

I witnessed two signs of the end of days in one week this September. First, disgraced ex-Congressman Tom Delay did his star turn on “Dancing with the Stars.” Second, Twitter raised $100 million in VC funding so more people can, for free, tell the world, “I’m eating a ham sandwich.”

I had coffee one afternoon with a Silicon Valley entrepreneur sharing his advice on how to network and he said, “The most important thing I would say for you to do is get on Twitter.”

I’ve been on Twitter for a few months but still find the experience puzzling. To me, Twitter is Facebook reduced to the status updates. I just don’t get it. Maybe if I reach the Ashton Kutcher level of followers – 3.5 million, according to Newsweek – then I might achieve the critical mass to really connect with my fellow Tweeters. But, really, do any of those 3.5 million Kutcher pals think if they meet him in person, they’ll be able say, “Hey Ashton, my bud! Can I borrow 50 bucks from you?” Kutcher: “Robert! Dude! Of course, here’s $50. I know you’re good for it, follower 3,235,612!”

And yet Spark Capital, Institutional Venture Partners, T. Rowe Price and Insight Venture Partners think enough of Twitter’s business model – a service for people to send text messages of up to 140 characters, plus photos and video, via a computer or cell phone – to invest $100 million, its third and largest funding round since Twitter was founded in 2006. The Wall Street Journal reported that the company, which has no revenue model and, therefore no profits, has a valuation of about $1 billion.

While Twitter traffic includes drivel like “I’m watching ‘Mad Men’” and “This bus is never going to come,” among the group that has found it useful are marketers. The Public Relations Society of America recently hosted a seminar titled “Social Media and New Media PR Boot Camp,” one of scores of such workshop invites that has likely filled your inbox. “You will learn … how to use Twitter to track news and build communities,” the workshop promises.

And yes, Twitter, along with Facebook, Flickr, You Tube and other Web-based services, can be effective tools in an integrated marketing campaign. In some cases it’s as simple as a writer posting a tweet touting a column he wrote with a link to said article (such as the message I will create to draw my followers to this column). That’s marketing.

Today, Twitter and other social media are hot, which lends them to hype. In a guest post on the site PR2.0, social media expert Louis Gray warns that Twitter is not the marketing campaign but a tool to execute the marketing campaign.

“The non-stop promotion of the tools and, yes, the individuals who think they are ‘experts’ is getting a little overwhelming,” Gray writes. “Many of the companies that have initiated new media practices are practically falling over themselves offering self-congratulatory praise for how they embraced these new technologies.”

Twitter may evolve into an effective communications platform – in some ways it already is; I found out that the columnist William Safire died via a tweet from the New York Times. But until marketers learn to stand out with their marketing message from the “I’m eating a ham sandwich” crowd, the signal-to-noise ratio of Twitter will remain high, and a limitation.

Newsweek columnist Daniel Lyons cited a study of Twitter which found that “40 percent of the messages are ‘pointless babble.’” But then, he continued, “look at TV.” No one can dispute that TV is a monumental platform for marketing, even if it’s for a TV show where a disgraced ex-congressman dances to “Wild Thing.”

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