The document discusses the evolution of communications from the industrial economy to the creative economy. In the industrial economy, advertising dominated but public relations (PR) was seen as less important. As customers gained more information and choices, PR became more important to validate advertising claims. However, in the creative economy, managed PR is less trusted and social media allows employees to directly communicate. The document argues this marks the rise of internal communications, or "the red headed stepchild," which can help organizations attract and engage talent, foster innovation, and enable authentic advocacy through empowered employees.

1. The Rise of the
Red Headed Stepchild
Employee Comms
for the Creative
Economy
www.coxc.co

2. In the mass market
industrial economy,
communications was
ruled by the Mad Men

3. Advertising was King

4. PR was the
annoying little brother
Advertising was King

5. PR was the
annoying little brother
Advertising was King
Internal Comms was the
red headed stepchild*

6. *red headed stepchild
A person or group treated without
the favor of birthright.
The boss treats this department like
his red headed stepchild.

7. Advertising had the brightest talent,
the biggest budgets, and the
best parties

8. No matter how dull your business was,
the best advertising could always make
you look better

9. And then we moved from the industrial
economy to the information economy

10. Customers began
to question the
advertising they
were being served

11. Faced with an increasing array of choices,
customers began to look for third-party
validation of advertising claims

12. Customers also
began to care about
the corporate
behaviors behind
their brands

13. It was 2002 and
according to marketing
pros, Al & Laura Ries,
we were experiencing:
The Fall of
Advertising &
the Rise of PR*

14. *fall of advertising
Anytime anyone forecasts the fall
(or the death) of something, they
are always overstating the case
But if you forgive the hyperbole
designed to grab your attention,
there’s often an underlying trend
worth paying attention to

15. The annoying little brother
was fast becoming the
21st Century Spin Doctor
Advertising was King

16. Companies turned to
PR to authenticate
their message and
put a human face to
their story…

17. …even if that face was
often media-trained to
within an inch of
automation…

18. …and the message vetted by lawyers
to within an inch of being interesting

19. PR worked behind the scenes with
media to ensure that readers and
viewers were shown the truth they
wanted them to see

20. PR mirrored the command
and control management
style of the day

21. Messages were crafted
Messengers were trained
Media were managed

22. No matter what issue you faced,
smart PR could always make you
sound better

23. And then we moved from the information
economy to the creative economy*

24. *creative economy
an economy of continuous
innovation & transformation
A new kind of organization is emerging, capable
of achieving both continuous innovation and
transformation along with disciplined execution...
...delighting those for whom the work is done
and inspiring those doing the work
It is generating a new economy
—the Creative Economy
Stephen Denning:
The Leader's Guide to Radical Management: Re-inventing the Workplace for the 21st Century

25. As direct access to information increases,
managed media is becoming as mistrusted
as the advertising that supports it
Source: Edelman’s 2016 Trust Barometer
Less than half the
population now has
trust in the media

26. Press statements from official spokespeople
are overshadowed by social media
comments from authentic employees
“On a work call the other day, one of the
managers said technicians like me were
tools to accomplish a task.
We’re not tools.
We’re the public face of Verizon.
We talk with customers.
We solve problems.
We restore service.
And we help our company make $1.5 billion
in profits every single month.”
Source: An Open Letter to Verizon CEO Lowell McAdam on medium.com

27. It’s 2016, and now we’re
told by global PR leader,
Robert Phillips, to:
Trust Me,
PR is Dead*

28. *PR is dead
Anytime anyone forecasts the fall
(or the death) of something, they
are always overstating the case
But if you forgive the hyperbole
designed to grab your attention,
there’s often an underlying trend
worth paying attention to

29. Neither advertising or PR is
going away any time soon
Nor should they

30. It still makes
sense to look
better and
sound better
when you can…

31. VW’s Europe Market Share Slumps
to Five-Year Low on Scandal
Volkswagen AG’s European market share narrowed for an
eighth consecutive month since the German carmaker’s
admission to rigging diesel cars to cheat on emissions tests…
May 12, 2016
…it’s just no longer enough

32. …in the creative economy,
you can’t just look better, or sound
better, you actually have to be better

33. Alex Bogusly was a modern day Mad Man
Voted Creative Director of the Decade
by Advertising Age in 2010

34. In that same year, he turned his back on the
Ad World and wrote a book explaining why
brands must think beyond advertising…

35. “The old rule was: Create safe,
ordinary products and combine
them with mass marketing.”

36. “The old rule was: Create safe,
ordinary products and combine
them with mass marketing.”
“The new rule is: Create truly
innovative products and build
the marketing right into them.”

37. “Creativity has become the
ultimate business weapon.”
Alex Bogusly & John Winsor - Baked In

38. “The same creativity that's been used to change
culture through advertising can also be applied to
distribution, packaging, and even the product itself.”
Alex Bogusly & John Winsor - Baked In

39. “While collaboration with
customers is key, the ability to
collaborate internally is even
more important.”

40. Which is why it’s
time for the rise of
the red headed
stepchild

41. Only Employee Comms
can help you actually
become better
Great advertising can make you look better
Smart PR can help you sound better

42. But the red
headed stepchild
needs to evolve…

43. From message management, annual
surveys and newsletters, to…
Talent management
Innovation
Authentic advocacy

44. Talent
management
Innovation
Authentic advocacy

45. The war for talent is over…

46. …talent won!
The war for talent is over…

47. “Capital is being superseded
by creativity and the ability to
innovate - and therefore by
human talents - as the most
important factors of
production.”
Klaus Schwab
Founder of the Word Economic Forum

48. “Capitalism is being replaced by Talentism”
Klaus Schwab:
Founder of the Word Economic Forum

49. A ruthless pursuit of
efficiencies, with employees
seen as cogs in the machine
A ruthless pursuit of customer
delight, with employees seen
as the differentiating factor
20th Century Capitalism 21st Century Talentism

50. The need to attract, retain and
motivate top talent has risen to the
top of the boardroom agenda

51. 13%
Source: Gallup
24%
63%
But most employees are not
engaged, or are actively disengaged
Not Engaged
Actively DisengagedEngaged

52. Employee Comms can help
attract top talent and retain a
more engaged workforce

53. Purpose-driven companies have 40% higher levels
of retention, and tend to be 1st or 2nd in their market
Source: Deloitte - A New Model for Employee Engagement

54. Smart Employee Comms can help leaders articulate a
purpose beyond profit, and bring it to life with stories
that attract new recruits and inspire employees

55. 80% of organizations
believe their employees
are overwhelmed with
information at work
21% cite the issue as
urgent
Fewer than 8% have
programs to deal with
the issue
Source: Deloitte Global Human Trends 2014

56. Smart Employee Comms
can simplify the work
environment, by giving
employees the information
they need, when they need
it, in their preferred format

57. In high-turnover companies, the 2nd-highest-rated
issue in employee engagement is the organization’s
willingness to “listen to an employee’s perspectives.”
Source: Quantum Workplace

58. Smart Employee Comms
can help leaders to listen…
…create safe environments
for employees to speak…
…and strengthen the
organization through
honest and open dialogue

59. Talent management
Innovation
Authentic advocacy

60. Three-quarters of CEOs now regard
innovation as at least equally
important as operational
effectiveness
Source: pwc Innovation Report

61. But companies understand
that innovation is no longer
the preserve of the lone
creative genius

62. The key ingredient is creating
an organizational culture
that encourages innovation
in all areas

63. Innovation
Collaboration
Communication
is built on
which is driven by

64. The better your organization
communicates, the stronger it will
collaborate, the faster it will innovate

65. Smart Employee Comms can help every
employee become a better communicator

66. Great storytelling is an art
mastered by a few…

67. But the basics of storytelling
can be learnt by all

68. It takes a lifetime to master the
tools of visual design…

69. But it only takes a few hours for
employees to (re-)learn how to draw

70. Smart Employee Comms can help
coach and mentor every employee
to become a better communicator

71. Talent management
Innovation
Authentic
advocacy

72. Only 30% of buyers trust brands

73. of people trust
recommendations
from people they know
30% trust brands…
90%…while

74. of consumers are more
likely to buy a product
they hear about from
family and friends
77%

75. Those family and friends are more
likely to be your employees…
…than your company spokesperson

76. Which is why 90% of brands are pursuing,
or have plans to pursue, an employee
advocacy program
Source: Altimer

77. But if most employees aren’t
even engaged in their work,
why will they be engaged in
an advocacy program?

78. You can’t pay
employees to be
authentic advocates

79. And if you give employees
permission to speak on
your brand’s behalf,
what will they say?

80. The Edelman Trust Barometer shows
that one-in-three employees doesn’t
even trust his or her own company

81. The implication is clear:
Employees who trust
their leaders will be
more likely to say good
things about their
employer.
And consumers will
believe them.
Source: Edelman Trust Barometer

82. By the same token:
Employees who don’t
trust their leaders will be
less likely to say good
things about their
employer.
And consumers will
believe them too.
Source: Edelman Trust Barometer

83. Employee advocacy begins
with Smart Employee Comms

84. Smart Employee Comms can
help ensure their organization
is one that employees will be
proud and passionate about

85. Smart Employee Comms can
help employees understand
the personal benefits of
being an authentic advocate

86. Smart Employee Comms can
help discover and develop
compelling stories that
employees will want to share

87. Employee advocacy is the
dividend you get for being
a remarkable employer
If advertising is the tax you pay for
having an unremarkable product…

88. Evolving from corporate messaging,
annual surveys and newsletters, to:
Talent management
Innovation
Authentic advocacy

89. It’s time for
the rise of the
red headed
stepchild

90. Chris Cox is a integrated communications professional
with a passion for the power of employee comms.
He works with clients to design and deploy programs
that inform, inspire, involve and improve employees;
helping organizations and brands become better,
rather than just look better or sound better.
www.coxc.co