It had to be a little bit like getting hired as manager of the Chicago Cubs and being told you have have to win a pennant this year or else.
The challenge facing the public relations firm of Edward Howard & Co., in October 2005 was to put a positive spin on the troubles surrounding O'Sullivan Industries.
Consider what the company had to deal with:
-O'Sullivan Industries had hired its first million-dollar CEO, Bob Parker, formerly of Newell Rubbermaid, who as part of his contract stipulated that the company's corporate headquarters had to be moved from Lamar, where it had been based since 1964 to Atlanta.
-Parker proceeded to bring in numerous Newell Rubbermaid alumni, all in high-paying executive positions, and proceeded to unceremoniously boot out anyone with the last name O'Sullivan.
-Chairman of the Board and former CEO Daniel O'Sullivan resigned his position, and while not specifying any particular grievance with the new regime, it was clear O'Sullivan was not happy.
_Add to that, an impending bankruptcy, the possibility of which had been briefly mentioned in an SEC filing. The only media that picked up on that mention was this blog.
Documents filed May 17 in U. S. Bankruptcy Court for the Northern District of Georgia offer a revealing look at how public relations professionals can take even the most negative stories and make them appear be positive.
The documents were part of a final bill of $33,446.11 submitted by the Ohio-based p.r. firm. The final bill is scheduled to be approved during a June 29 hearing in Georgia.
"During the application period, Edward Howard was confronted with issues relating to debtors' bankruptcy cases and their reorganizational efforts," one document says, "including strategic communications with customers, employees, and the public, as well media, and public relations counseling."
The company charged hourly fees ranging from $420 for chairman and CEO Kathleen Obert to $80 an hour for junior account coordinator Pat Lollini.
A new challenge arose in October when CEO Bob Parker became ill and had to take a leave of absence (which later became permanent). Edward Howard charged $1,260 for a one-and-one-half hour meeting "regarding CEO incapacitation and announcement of interim leader (Rick Walters, also a Newell Rubbermaid expatriate); review and comment on news release, letter and court plan."
Parker's status was also discussed Nov. 9, as well as the need to pump up the good feelings. The document reads, "discuss clients' need to keep up flow of positive news, in light of Chapter 11, CEO issue."
Edward Howard professionals charged $165 for a half-hour meeting Dec. 9, 2005, in which "The Turner Report and other media coverage," were discussed, according to the court documents.
The public relations firm charged $3,202.50 on Dec. 30 for a "review draft of document outlining talking points for potential media interviews in Lamar and South Boston (Virginia) (concerning) workforce reduction."
2 comments:
So, Randy, what was the total spent on PR spin that could have been spent on improving the plants, lowering prices to make the company more competetive, or at least severence? The audacity of this crew is amazing! By the way, how do you spin the fact that you are paying a guy $1 million a year to color with crayons after his stroke and they dropped loyal workaday employees without remorse?
Here is the problem with your perspective....the company was failing fast and this new group saved it.
The "loyal workaday employees" were following a failing strategy and management group.....
You should be thanking Bob Parker and Rick Walters...not criticizing them.
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