Corporate chiefs spurn the spin

By Peter V O'Brien

Friday 11th October 2002

My reference last week to "corporate speak," "drivel" and similar descriptions of spin-doctors' justification of their employers' actions clearly hit nerves. Some nervous reactions were obviously pleasurable, others obviously painful.

It is a waste of time and space to detail painful reactions, except to note accusations of supposed negativity and a mindset against the diligent work of worthwhile labourers in the "corporate communications" vineyard.

Let's look at the positive. There are companies that don't refer information seekers to PR organisations and internal communications people but a senior operational executive as the first contact. Several examples were seen in announcements to the Stock Exchange in the past two weeks.

Pacific Retail Group issued a summary of addresses from chairman Maurice Kidd and chief executive Peter Halkett to the company's September 30 annual meeting.

Mr Halkett was named the first person "for more information," the second reference being PR firm Consultus. Pacific Retail is hardly a corporate minnow seeking protection from media predators. It named the chief executive as first contact point.

Fletcher Challenge Forests acted similarly when it gave company secretary Paul Gillard as the reference in a statement saying chief executive Terry McFadgen would retire next April.

Dental software company Software of Excellence named chief executive Paul Weatherly as contact "for further information" when announcing the British Antarctic Survey team had adopted the company's dental software.

Technology company Newcall Group said it had acquired two companies and referred people to managing director Jim Bracknell, adding his direct telephone number. In passing, Mr Bracknell answered the phone when he was rung.

It could be suggested the companies mentioned (and others) name the senior operational people as contacts when there was good news. The bad was referred to spin-doctors.

Not so. All had unfavourable news in recent times but used the same referral points. The Guinness Peat Group-Rubicon battle saw referrals to the key people. GPG said it would make a partial and conditional takeover offer for Rubicon shares it did not already hold. A "further information" contact was given as local GPG chief executive Tony Gibbs. Rubicon's replay referred people to chief executive Luke Moriarty.

Although both companies were dealing with a technical matter, probably beyond the competence of "corporate communicator," they put the chief executives up front.

Fishing company Sanford told the exchange on October 1 it was offering its Nelson processing plant for sale as a going concern. Up to 90 jobs might be affected but the company would offer staff the opportunity to relocate to other Sanford plants where suitable vacancies available. Other assistance to staff was also in place.

You cannot get more unfavourable news about a company (apart from massive losses or receivership) than plant closures and job losses. Sanford's reference points were managing director Eric Barrat or acting Nelson manager Ted Culley. Not a spin doctor or "corporate communicator" in sight. Rightly so. Some of those people are gamekeepers turned poachers.

The Sanford case was interesting because, until comparatively recent changes in outlook, the company seemed to have a policy of "tell them as little was possible" "them" including shareholders.

GPG's approach to communication was understandable. The company's formal financial reports refer to UK executive director Blake Nixon and have a PR firm as second reference.

GPG chairman Sir Ron Brierley has never relied on outside wafflers to present his arguments, an attitude that seems to have been passed on. Other notable company communicators such as Sir Ron Trotter, the late Bill Steele and Sir James Fletcher had no need for spin-doctors.

Meanwhile, readers know about attacks in this column on the practice of people in organisations having only one name ("Toni/Tony") and no surname. Explanations of "friendliness" and "personal security" are given when querying the practice.

Personal security would seem to be particularly relevant when Inland Revenue officials deal with taxpayers, some of whom would be potential nutters. Requests these days for a full name during the telephone inquiry operation get a ready response, on the basis that people need full records of their discussions for future references.

The august Stock Exchange produced a marvellous blooper last week. A press release about a "proposal for reforming and improving indices" of October 1 quoted chief executive Mark Weldon as saying "with the advent of the Cullen Fund."

Sorry, Mr Weldon. "Cullen Fund" is no more than a satirical reference to the New Zealand Superannuation Fund and unworthy of a supposedly responsible executive. Your employers will benefit from the fund.

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