Most PR professionals are smart enough to realize that spreading sensitive client material can mean, at best, the end of a career and at worst, a federal indictment.
Juanita Yvette Lozano, formerly an employee of Maverick Media in Austin, Texas, allegedly let her raw political instincts get the best of her. The Washington Post reported last
week that the PR practitioner who was once responsible for handling George W. Bush's presidential press campaign was indicted for crimes that began with allegedly sending
confidential materials to the Gore for President camp.
It appears that Lozano, a longtime, trusted employee of Bush campaign consultant Mark McKinnon, was secretly trying to help Al Gore prepare for last fall's presidential
debates.
"I think they're going to prosecute her," said Lou Hampton, president of Washington-based media consulting firm, The Hampton Group. "That will in itself be a wonderful
deterrent... because it's hard for companies to track [confidentiality breaches]. They're usually not worth the legal cost and effort."
That's not to say that Hampton believes PR professionals have a tough time keeping their mouths shut; corporate information leaks most certainly spring from departments other
than communications. But as the Lozano case shows, even information management professionals can break rank when personal ideals take priority over employer or client loyalty.
Keeping Mum on Confidentiality
Employee confidentiality agreements are pretty standard when it comes to maintaining a tight-lipped organization and more organizations are trying to enforce them well after an
employee departs. Jack Bergen, president of the Council of Public Relations Firms in New York, points out that severance pay-outs following layoffs can be contingent on whether
someone reveals information, or says anything disparaging about a previous employer.
Although he admits such agreements are difficult to enforce, he recently sat down with members of his client advisory committee - senior VPs from 25 corporations - to talk
about preserving confidentiality in light of tremendous turnover in the industry.
One effective strategy, according to committee consensus, is to tell employees flat out that you don't expect them to bring confidential knowledge to the table. "Tell them you
recognize they may be under restrictions from their previous employer and you don't want them to betray that," says Bergen. He suggests making this part of your orientation
program, much in the same way employees are reminded about confidentiality agreements during exit interviews.
Departing employees, he says, likely will be more mindful of their newest confidentiality obligations to you when they know you have respected their confidentiality agreements
with former employers.
Another easy way to prevent information leaks is to limit the number of people who know about a project. Sheila Tate, former press secretary to Nancy Reagan and president of
the Powell Tate agency in D.C., gives especially sensitive clients code names. Not even accounting employees collecting invoices know who they are.
"When our operations committee is reviewing accounts receivable, they might come across 'project lemon,'" says Tate, "and they'll know that's a confidential client." She adds
that she often has no idea which projects her partner, Chairman and CEO Jody Powell, is working on. "This is one way we preserve our credibility," she says. "And in our business,
credibility is our currency."
General Motors Communications VP Steve Harris says that keeping projects small and confidential has been the most effective way he's kept a lid on his vast organization. GM
posts ethics policies on the company intranet and senior executives are called to review and acknowledge them every year. Thanks to these proactive measures, Harris says he was
able to prevent information about 1998's Daimler-Chrysler merger from leaking out until the day before it was to be announced. "People were amazed that we kept it under wraps up
to 24 hours before the announcement," he says. "You've got to cultivate an organization where everyone knows it's in his best interest to control proprietary information."
Finally, Michael Paul, president of MGP & Associates PR in New York, points out that investing a little more time and money in the interview process can help locate tight-
lipped employees - a boost to productivity and retention. He says many agencies and corporate PR departments don't take sufficient time to bring recruits in for repeat interviews
and check at least five references. And, he adds, it can't hurt to spend the money to run background checks on what he calls the "gatekeepers," those who will be privy to
especially sensitive information. "It sounds so simple, you need to interview hires completely and thoroughly," he says. "If you're rushing at the speed of light, you're going to
lose a lot of money in turnover and lost information."
Engaging in Office Espionage
Michael J. Zanoni, president of New York-based Ground Zero Marketing, is no conspiracy theorist but he believes that "spies" have posed as potential hires at his firm. He says
that on two occasions people from competing firms have interviewed in his offices, with no intention other than gleaning competitive information. They asked questions about
clients and future projects, focusing little interest on the job vacancy itself.
"Then they didn't take the job once it was offered and weeks later I see that our competitor's marketing is addressing all the things we were talking about," Zanoni says.
How can you prevent what is arguably the most flagrant and unethical way to breach confidentiality? Zanoni says watch out for "perfect" resumes. If someone seems to be an ideal
fit for your organization they could be buttering you up to let secrets fly. If you suspect there's a spy in your midst, politely avoid talking about clients and ask the recruit
to speak more about his or her own experiences. Zanoni says if you're feeling especially paranoid in an interview, it can't hurt to throw out a little misinformation to throw the
possible double agent off-track.
Zanoni suspects those who live by confidentiality breaches will die by them. "It's bad karma," he says. "You don't have perfect relationships with every employee forever.
Ultimately, [employees] are going to leave and they are going to talk."
Contacts
Jack Bergen, Council of PR Firms: 877/773-4767
Sheila Tate, Powell Tate: 202/585-2076
Steven Harris, General Motors: 313/667-3532; Michael Paul, MGP & Associates:
212/252-5450
Michael Zanoni, Ground Zero Marketing: 212/324-9114