IRS Fails to File Tips on Reputation Management…

Image Patrol this week takes on the federal government. No, I'm not a Republican, or a resident of Montana. But I'm increasingly intrigued by the machinations of our federal government when it comes to communications.

I've noticed for years the growing number of attendees at seminars and forums who sport cards from the Department of ___ (fill in the blanks) ___ US Government. In fact, I've studiously avoided having anything to do with the government ever since Department of Energy Secretary Hazel O'Leary was lambasted for doing what Delahaye recommends every day - analyzing the effectiveness of PR efforts.

However, recent stories caught my attention.

The first involves the IRS which has taken up a great deal of ink and media time talking about changing its image to be more consumer friendly. The concept had about as much credibility as Larry Flynt announcing that he wanted to be more "family friendly." So I watched the travails with interest.

As is so frequently the case, the IRS' drive towards "friendliness" encountered a rather large pothole this week when the Boston Globe reported the plight of a Massachusetts man who was accused of not paying $2,600 in taxes. When the man presented a canceled check, the new, kinder, gentler IRS told him it wasn't sufficient and he would need to write another check or prove that the funds had in fact gotten to the IRS. As it turned out, the IRS's bank, Mellon Bank, had the money all along. Now a company on an image campaign might have at least offered an apology, but we forget, we're dealing with the IRS.

On the other side of the coin you have the US Postal Service on a similar campaign to improve its image, riding the wave of success it enjoyed during the UPS strike. Millions of businesses would not have survived if the US Postal Service hadn't risen to the occasion and gotten their packages delivered. Like the IRS, the USPS is in a "damned if you do, damned if you don't" situation. It gets criticized for losing money, and again when it makes money, competing with private carriers.

But all in all, the USPS has done a great job. It didn't gloat during or after the strike, it simply told the story. And now, when it is asking for a rate hike, its administrator is out on the interview trail explaining their position, and taking the time personally to ensure that the image is maintained.

Katharine Paine is founder and CEO of The Delahaye Group, an international image consulting firm based in Portsmouth, N.H. If you have a suggestion for an Image Patrol column, you can reach her at 603/431-0111.

IRS
Criteria Grade Comments Advice
Extent of coverage B The good news is that this didn't make it much beyond the Boston area. Sometimes you just luck out.
Effectiveness of spokespeople F

The local IRS spokeswoman sounded like a bad parody. If you're going to get quoted, try to train your spokespeople not to sound like IRS agents.
Communication of key messages F

Everything that was said contradicted the messages put out there by the big bosses.

The IRS needs some serious internal communications help to ensure consistent messages throughout the organization.
Management of negative messages

F No one did anything to make the IRS sound even remotely interested in the welfare of the taxpayer. The best way to mitigate a situation like this is to say "I'm sorry." No apology was ever offered
Impact on customers

D The good news is that its image couldn't get much worse, so the net effect probably was negligible. However, it also diluted whatever positive effect was accomplished earlier in the year. The least the IRS could do is to say that this kind of thing won't happen again. If it was possible, I'd say consumers reading the story would now fear the IRS more than ever before.
Impact on employees and prospective employees

D If I were a person who didn't enjoy helping people, I'd think the IRS was a very attractive place to work.

The key to success in any organization is to attract and keep talent. This story said loud and clear -"no talent needed for this job."

Overall score

D They lucked out in terms of extent of exposure, and things couldn't get much worse anyway, so the net effect was probably not too great. When you're starting an image overhaul, make sure you start with your employees first to ensure consistency in approach and messaging. Otherwise one bad day can destroy months and months of hard work. And whatever you do, APOLOGIZE!

IRS

  • Headquarters: Washington, D.C.
  • No. of Employees: 102,082
  • No. of Media Relations Pros at Corp. Office: 7
  • No. of tax returns filed for individuals in 1996: 118,833,000
USPS
Criteria Grade Comments Advice
Extent of coverage B I'm not sure they wanted QUITE so much coverage for the requested rate hike. A leaked memo will guarantee widespread publicity for just about anything. If that's not what you had in mind, be prepared for disaster. If it IS what you had in mind, then the strategy worked.
Effectiveness of spokespeople A Marvin Runyon is terrific in an interview -a nice combination of down home style and good business sense and totally on target with his messages. Find out where Marvin received media training and enroll in the same school.

Communication of key messages

A The message was a tough one. It was damned if it asked for a rate hike and damned if it didn't. Lose too much and Congress complains; make too much and business complains. Marvin struck a nice balance. Honesty is the best policy. Put the truth out there and let your audience decide whether its good news or bad news.

Management of negative messages B See above -it was tough to say whether those negative messages were really all that bad, but at least it got its side of the story out. When the news is mixed, the best to hope for is that your side is fairly represented.

Impact on customers B USPS was clearly talking to multiple audiences. The bulk mailers were bound to be unhappy, but the voters should be pleased. What's bad news to some frequently is good news to others. Be very clear who your audiences are and the priorities of each one. In this case the voters and Congress should get the message that the USPS is being responsible with taxpayer dollars.
Impact on employees and prospective employees A Runyon's comments and the overall handling of the UPS strike and the rate increase, should raise morale. In both cases USPS came out looking professional, caring and responsible. Consistency is key. Clearly the agency is determined to improve its image and become a more professional organization. For the people you want to keep, this should be a moral boost.
Overall

B+ USPS has handled several crises in the past year in a highly professional manner. With time this should serve to turn around a distinctly negative image. Be patient. Reputation is built one success at a time.

USPS

  • Headquarters: Washington, D.C.
  • No. of Employees: 765,174
  • ' 97 Revenues: $1.3 billion
  • No. of Media Relations Pros in Corp. Office: 5
  • Comm. Employees Nationwide: 95
  • No. of U.S. Addresses Served: 128 million
  • No. of Mail Pieces Processed in 1996: 182.7 billion