*Media Myths: The way communicators spread information is out of sync with the way consumers use media, a new Ketchum/University of Southern California's Annenberg Strategic
Public Relations Center survey of media usage among consumers and communications professionals suggests. The study reveals discrepancies in how consumers view communication tools
like word-of-mouth, company Web sites, and more:
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While advice from family and friends is the #1 source consumers turn to when making a variety of decisions, from buying electronics to planning vacations, only 24% of
communicators have word-of-mouth programs in place;
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Communicators rank company Web sites as the most effective way to share corporate news and respond to a crisis, while consumers rank them sixth and seventh in these
categories;
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Consumers rated all media sources except cable news as less credible than in the 2006 survey. Local television news was seen as most credible, and celebrity endorsements
least;
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22% of American consumers use social networking sites, which was up from 17% last year.
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19% use blogs, up from 13% last year;
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Use of blogs and networking site among consumers 55+ more than doubled; and,
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Among "influencers," the 10%-15% of the population who initiate changes in their community, 35% use both social networking sites and blogs.
Source: Ketchum/USC 2007 Media Usage Survey
*Standing Out: Jeff Thull, president and CEO of Prime Resource Group, ranks the communication value of a conversation with a customer on a scale of one to four, with four being
the highest quality engagement, one that will set you apart from the crowd. This level, he says, involves providing something the customer knows he could not have thought of
himself:
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Level 1 - Negative Value: At this level, the conversation may be pleasant, but time flies, the conversation ends and it's on to the next appointment. When the customer
realizes he's lost 40 minutes of his time, he won't be looking forward to the next visit.
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Level 2 - Confirming Value: Here, we are able to confirm or reinforce ideas a customer has about what they would like to do regarding a certain situation, providing a
reassuring outside opinion. This provides some value.
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Level 3 - Additive Value: At this level, the customer is looking for answers and has an idea where they might come from, but you are able to help get the required
information with less time and effort. This conversation will place you high on the list of valued resources.
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Level 4 - Innovative Value: This level is about asking questions that will change the way a customer thinks about his situation, causing him to connect or associate
elements of his business in a new way. You help him see the problem in a new light, and instill confidence that you understand his objectives. This is true collaboration, and
should set you apart from your competitors.
Source: Inc.com
*Earning Their Keep: A study of 1.072 companies in the S&P Super 1500 identifies a strong correlation between CEO "realizable" pay and company performance, suggesting that
the executive pay-for-performance model may be working.
Between 2004 and 2006, CEOs at high performing companies earned a median of $5.2 million in realizable long-term incentives (LTIs) like stock options, compared with $1.7
million at low-performing companies.
Realizable pay calculates current value of outstanding LTI awards, rather than the more traditional pay opportunity measure, which calculates value as of the grant date. The
survey found similar results for total direct compensation, with CEOs at high performing companies earning median of $10.5 million, compared to the $6 million their counterparts
at low-performing companies receive.
The study also found that the estimated value of stock-based compensation programs per employee fell by roughly one third between 2004 and 2006. In addition, the rate at which
worker forfeited stock options increased by nearly 20% last year.
Source: Watson Wyatt Worldwide
*Transforming Human Resources: Deloitte Consulting's new Human Resources Transformation Survey is critical of the approach companies are bringing to revamping their human
resource departments, finding that, while 84% of the 150 companies surveyed are currently working on transforming their HR functions, many are missing an opportunity to make HR
an integral part of their business strategy. Instead, the focus is still on savings, systems and processes, not long-term strategy:
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85% of respondents cited cost savings or efficiency as key drivers behind HR improvements;
- 75% cited effectiveness of service;
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Only 1/3 cite building HR capability as a driver for their overhaul;
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Even fewer (30%) claimed to be working on freeing HR to take a more strategic role;
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40% cited training the next generation of leaders as a key business issue driving HR improvements;
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33% cited building and managing a global workforce;
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27% cited an aging workforce;
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21% identified mergers and acquisitions as an issue driving change in HR; and,
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Only 40% of respondents have structured processes for future HR planning.
Source: Deloitte HR Transformation Survey PRN