Comment: Business people match the politicians in their media gaffes - which often come back to haunt them! Published November - December 2007 These days the media plays such an important role in forming lasting perceptions of people, and the organisations they represent, in public life. Often, years of achievement can be relegated to one visual image or a quote or statement (possibly taken completely out-of-context) but one which stays in the public memory. In our last issue we highlighted the perils of dealing with the media when we used the unfortunate experience of Treasurer Peter Costello, who believed he was talking off-the-record (to 3 journalists over dinner), only to find he wasn’t. During the current election we’ve seen Opposition spokesperson Peter Garrett have a casual conversation at an airport with a radio talkback host - only to find it become headlines news. That was followed by Government Health Minister Tony Abbott arriving late for a media debate and also getting caught making ‘on-stage’ comments that were picked up by the electronic media. This was reminiscent of NSW Premier Iemma’s less than flattering comments to Victorian Premier Bracks a year or so back about the new Sydney Cross City Tunnel Boss - and this being caught on audio by a film crew. All broke the fundamental rule of dealing with media. Always assume you are ‘live’ and can be quoted, recorded or even filmed… as with the case of Kevin Rudd, filmed eating his own ear wax in Parliament! But media embarrassment in recent times hasn’t been confined to politicians. Business people have had their fare share of problems too, with an example, and a reminder, on the one day for two of our leading businessmen. Telstra no doubt put a huge effort into coaching the participants, and stage managing the situation, when its Executive Pay policy came to the vote at its recent AGM.  Even though it was voted down by 66% of shareholders, Chairman Don McGauchie was reportedly unrepentant and defiant. The shame was, that his words weren’t matched by his actions, with perhaps the kindest explanation of his ensuing actions being that he had “a blond moment’. While TV viewers saw some images of him on the stage at the meeting, more footage was aired of the sight of the Chairman of one of Australia’s largest companies running, or being hustled, out of the venue seemingly fleeing from media - almost looking like a used car salesman being pursued.. It wasn’t a good look and his minders, who must have spent so much time trying to manage a difficult situation, must have been dismayed by his actions and demeanour.  After all, footage of prominent people doing foolish things like this is like gold to many in the media.  Expect to see that clip trotted out in the future whenever Telstra is under attack.  That’s not a great ‘Kodak Moment’ for the Telstra image. And if you want further evidence of how words and actions of prominent businesspeople can come back to haunt them, there was another example on the same day, as Coles was formally taken over. The Australian Financial Review, in making a final critique of CEO John Fletcher, couldn’t help but bring out (yet again) Fletcher’s famous quote on being appointed to run this huge retailer in 2001 that he “had not been inside a supermarket for 25 years”. That statement will probably go down as the stupidest quote ever from an Australian Managing Director, and, over the six years of Fletcher’s tortuous time at the helm of Coles, it was bought up time and time again as the media questioned his management and retailing ability.  Talk about 3 second of thoughtlessness coming back to haunt you! The other recent business quote that came back to haunt its author was when Qantas Chair Margaret Jackson was quoted during the private equity bid for the airline saying that, if the takeover was rejected, it would “dangerously destabalise the company”. She then went further and, in a comment regarding the price of Qantas shares, said that anyone who didn’t think the price would be affected if the bid failed would “have a mental problem with the way the market works”. The problem was, the bid did fail and the company wasn’t destablised - arguably the opposite happened.  Furthermore, the share price has since been stronger than it was before the bid. Ouch!  Talk about an ‘own goal’. During the same episode print media and television captured images of Jackson and CEO Geoff Dixon hugging each other with elation when it looked as if the bid would go through - and Dixon would receive millions of dollars.  That photo has been used extensively in the media since then - and will continue to be so long as Dixon stays at Qantas. These statements and actions were significant in Jackson losing the Chair at Qantas and again, whenever the media run a profile on her as she continues in other business roles, it seems either the comment or the photo - or both - are trotted out. The only consolation is that we now know she was on medication we she made his statement and shouldn’t have even been talking to the media.That’s sad, but remains as further evidence of just how many senior management folk seriously misjudge their importance and underestimate the power of the media. What also needs to be taken into account is that such actions and comments not only make the people who make them look silly. They also reflect - sometimes for years -on the brands they represent - in these examples, Telstra, Coles and Qantas - and who reward them with huge remuneration packages.  Shareholders and employees are entitled to expect more.. Grant Common Editor

Pr Influences: Comment - Business people match the politicians in their media gaffes - which often come back to haunt them