The Year in Review: 2011 Public Relations Disasters

Here is the list of the year’s biggest PR disasters that I shared during an interview with 850 KOA’s April Zesbaugh this morning:

CORPORATE

Penn State University
Two years ago, Tiger Woods was the gold standard for PR debacles. Last year, it was the BP Gulf Coast oil spill. This year, that “honor” belongs to Penn State. In a matter of weeks, the university went from one of the nation’s most revered to one of the most reviled following its response – or more accurately its lack of a response – to a horrible child sex abuse scandal that saw two administrators indicted, a former assistant coach arrested and football coaching legend Joe Paterno fired. Making the situation even worse from a public relations perspective, the university had access to grand jury information for months and was still unprepared to deal with the fallout.

Netflix
Netflix was riding high as one of the few positive business stories in 2011. Subscriber numbers were up and the stock continued to defy the bleak economy. And then Netflix got cocky. The company inexplicably surprised customers and Wall Street by announcing a huge price increase as part of a plan to separate its streaming and DVD-by-mail services. Consumers reacted by canceling their service in droves, forcing Netflix to quickly backtrack and abandon its plans. But the damage was already done. The company lost more than a million subscribers and its stock price has dropped 75 percent from its highs this past summer.

Bank of America
Banks have joined oil companies as the businesses that people love to hate, and Bank of America felt that wrath in 2011. Bank of America badly underestimated the populist outrage that existed due to the bank bailouts when it announced a plan to introduce a $5 monthly fee for its debit card users. Bank of America expected other banks to quickly join it in charging the fee, but consumer outrage spread almost virally, leaving the bank on its own as Continue reading “The Year in Review: 2011 Public Relations Disasters”

State of Colorado Sues Kirsten Hamling’s ‘Fired Up For Kids’

Following recent questions about whether Traction Communications’ Kirsten Hamling misled firefighters and stole money intended for The Children’s Hospital Burn Center, the Colorado Attorney General’s office has filed suit against “Fired Up For Kids.” And the allegations are not pretty for Hamling. Among them:

15. In its solicitation materials, including materials sent to event sponsors as well as on its website, Fired Up For Kids has represented that it is a “Denver-based nonprofit organization” that donates all proceeds from special events and sales of The Colorado Firefighter Calendar to The Children’s Hospital Burn Center.
16. Fired Up For Kids also has represented itself in public solicitation materials as a tax-exempt 501(c)(3) organization.
17. In fact, Fired Up For Kids never received 501(c)(3) status from the United States Internal Revenue Service. Nevertheless, upon information and belief, Fired Up For Kids never paid taxes.
18. Kirsten Hamling was the sole director of Fired Up For Kids and its founder. Ms. Hamling is also the sole signatory on Fired Up for Kids operating account, maintained at Wells Fargo Bank.
19. Almost immediately after the incorporation of Fired Up For Kids as a nonprofit corporation, Ms. Hamling began making charges of a personal nature to the Fired Up For Kids operating account. These charges continued through at least July 2010. Charges included money spent at nail and hair salons, money spent on gym memberships, money spent at department stores, and money spent on airline tickets to California. These charges had nothing to do with Fired Up For Kids.

So, based on the allegations, it appears that Hamling may either have admit that Fired Up For Kids is a non-profit and she misused and/or stole money it, or that Fired Up For Kids is a for-profit enterprise and she never paid taxes.

Arellano Replaces McMillan as Post Business Editor

The fallout continues over at the Denver Post following last week’s news about 19 staffers accepting buyout offers. Today, Michael Roberts at Westword reports that the Post has announced internally a number of new assignments, and one surprising one is that Steve McMillan is out as business editor, replaced by deputy business editor Kristi Arellano. You can read the rest of the changes at Westword’s “Latest Word” blog.

Great Moments in Search Engines

One of the most interesting parts of publishing this blog is seeing the search-engine queries that bring people here. Here is a list of some of my (verbatim) favorites from this week:

  • who does libby weaver hair
  • steve silvers gambling ring
  • adele arakawa net worth
  • deborah sherman swinger
  • katy sabin and drew soicher screwed
  • what is the difference between a pr person and a lobbyist
  • libby weaver bra

Denver Post Buyout Update

The list of Denver Post employees who have accepted the paper’s buyout offer has started to trickle out is out:

  • Religion reporter (and obituary specialist) Virginia Culver
  • Pulitzer Prize-winning editorial cartoonist Mike Keefe
  • Gossip columnist Bill Husted
  • Managing editor Jeanette Chavez
  • Theater critic John Moore
  • Fina arts critic Kyle MacMillan
  • Librarian Jan Torpy
  • Don Russell
  • Lifestyles reporter Sheba Wheeler
  • Sportswriter Natalie Meisler
  • Senior editorial assistant Pete Names
  • Designer Jackie Feldman
  • Information graphic designer Jonathan Moreno
  • Copy desk chief Joe Hudson
  • Robert Smith
  • Feature design director Jim Carr
  • Denver Newspaper Agency (reprints) Joyce Anderson
  • Photographer John Prieto
  • Reporter Jeff Leib
Update: The Denver Business Journal reports that 19 Denver Post staffers accepted a buyout.

Update II: Michael Roberts at Westword has the complete list of the 19 staffers who are leaving, and offers some perspective on what their departures might mean for the Post.

Denver PR Jobs

Among those hiring this week are the American Society of Bariatric Physicians, the City of Boulder, the Denver Metro Chamber of Commerce (unpaid intern), FCC Services, Financial Planning Standards Board, Medtronic Navigation, Oncure Medical Corp., Penrose-St. Francis Health Services, PlanSource, Rally Software, St. Julien Hotel and Spa, The American College of Veterinary Internal Medicine, Western Union, NANA Development (Colorado Springs) and the Weld County District Attorney’s Office (Greeley).

Another Sad Reality of Fewer Column Inches

One of the sad realities of newspapers continually cutting back the column inches they publish every day is the loss of some of the traditional services they provided, including obituaries. Many of you may know Don Shook, who prior to moving to Las Vegas spent 27 years in Denver with Channel 4, Coors and the Jeffco Sheriff’s Office. His wife, Maggie, passed away last month and Don was shocked to find that the Post wanted $1,600 to publish her obituary. Don fired off the letter below to the Post, but has yet to see it published or receive a response.

Dear Editor:

My wife of 37 years just got her dying wish, thanks to The Denver Post.  Maggie passed away last week in our Las Vegas home after many years of pain and suffering. She made it absolutely clear that she wanted NO obituary notices; however, after 25 years of living in Golden, I was willing to risk her wrath on “the other shore” to share news of her passing with our considerable number of friends along the Front Range. She will indeed get her wish regarding your newspaper.

I built a modest obituary into the paper’s template, along with a recent photo that captures her nicely.  To run it three days would be just under $1,600.  Does The Denver Post expect me to singlehandedly save the organization from financial doom? With the recent news of yet morestaff reductions being sought, is the newspaper hoping to stave off closure of its daily publication by capitalizing on people at such a moment of profound grief?

Given your apparent lack of feeling for the community you purport to serve, perhaps the time may come when we all read of the Post’s own obituary. For the sake of your many fine employees, I hope not.

Donald Shook

There will be a memorial for Maggie next summer in Golden. If you are interested in reconnecting with Don, you can reach him through his PR firm in Las Vegas.

Bawmann Hires One, Wins Several

Things are hopping at The Bawmann Group. The firm announced it has been retained by the Centers for Health and Public Safety, Kaiser Permanente-Colorado and the College for Financial Planning to provide a variety of marketing and public relations services such as web development, advertising campaign development, social media strategy and community outreach. TBG also was awarded a new contract by the State of Colorado to manage advertising and PR for the Low-Income Energy Assistance Program.

Additionally, TBG has added Kelly Heavey as account executive. Heavey is a University of Kansas graduate and most recently handled social media and public relations for the sustainability grant under the direction of the mayor of Lincoln, Neb.

RIP LeGrand Hart

Denver public relations agency LeGrand Hart appears to have shut its doors for good. The news is surprising since the firm ranked second in revenue in the Denver Business Journal’s 2007-2008 Book of Lists ($2.70 million in revenue). But it was second only to Schenkein ($2.72 million in revenue), so maybe we should expect the unexpected.

For old time’s sake, here is the ranking of agencies that appeared in 2007-2008, the last time the DBJ ranked public relations firms:

1. Schenkein ($2.72 million)
2. LeGrand Hart ($2.70 million)
3. JohnstonWells ($2.65 million)
4. PRACO/Vladimir Jones ($2.51 million)
5. MGA ($2.29 million)
6. Pure Brand ($2.13 million)
7. GroundFloor Media ($2.10 million)
8. Linhart ($2.09 million)
9. CTA Integrated ($1.86 million)
10. Turner PR ($1.65 million)
11. CLS ($1.56 million)
12. 104 West ($1.51 million)
13. Webb PR ($1.35 million)
14. Bawmann Group ($1.28 million)
15. Metzger ($1.10 million)
16. VisiTech ($1.10 million)
17. LawsComm ($1.07 million)
18. InterMountain ($1.05 million)
19. Catapult ($0.92 million)
20. Corporate Advocates ($0.83 million)
21. Volume PR ($0.83 million)
22. SJI Ltd. ($0.75 million)
23. October Strategies ($0.74 million)
24. Aiello PR ($0.70 million)
25. Capitol Solutions ($0.69 million)

Sander Resigns from Sports Board Following Gambling Allegations

The high-end gambling ring that took down Denver Post sports columnist/reporter Jim Armstrong has claimed (partly) another victim: Steve Sander. Sander has resigned his seat on the Metro Denver Sports Commission board to “to prevent any misperceptions about the organization” that could arise from his name being linked to the gambling ring.

Sander also serves as director of strategic marketing for Denver, and a city spokeswoman told the Post that he will be allowed to complete the term of his contract that expires at the end of this year.

Yost Launches Fyn PR in Fort Collins

Nicole Yost has launched Fyn (pronounced fine) Public Relations, a full-service public relations agency based on Fort Collins. Fyn PR is the agency of record for the Loveland Chamber of CommerceMidtown Arts Center, Backbone Gourmet Grub & BrewhousePerfect Square and Fred’s Used Websites. It also manages PR for several project clients as well, including the upcoming Snow Sculpture in the Dark event put on by Engaging Loveland.

Hits to Traction Communications’ Hamling Keep Coming

The hits to Traction Communications’ Kirsten Hamling keep coming. KMGH/Channel 7 has an update on a story CBS4 broke about Hamling’s alleged theft of money intended for The Children’s Hospital. According to KMGH’s Lance Hernandez, “the Children’s Hospital Colorado Foundation has issued a cease-and-desist order” against her organization, Fired Up For Kids. And sources indicate that the amount of the alleged theft is at least $50,000.

Additionally, Hernandez talked to a firefighter who appeared in the calendar who says he is “betrayed and hurt that all calendar money may not have gone to burn victims.”

UPDATE: CBS4 News Director Tim Wieland says that no cease-and-desist order has been filed, but that future calendar sales and events are on hold pending an investigation. And according to the Denver Post, TCH has asked the calendar maker to stop using its name until that independent investigation is completed.

Traction PR’s Hamling Denies Theft of Fire Calendar Money

A follow-up to yesterday’s post about a CBS4 investigation into Traction Communications’ Kirsten Hamling over missing money intended for The Children’s Hospital. Through her lawyers, Hamling has now explained that Fired Up for Kids actually was never a non-profit/charity and that she is under no obligation to donate the proceeds of its firefighter calendar to The Children’s Hospital’s burn unit. Classy.

CBS4 Investigating Traction PR’s Hamling for Fire Calendar Theft

CBS4 investigative reporter Rick Sallinger is hot on the trail of Traction Communications’ Kirsten Hamling over missing money intended for The Children’s Hospital’s burn unit. Hamling is the founder of Fired Up for Kids, a non-profit that creates beefcake firefighter calendars that benefit TCH’s burn unit, but questions are now surfacing over whether she pocketed the money instead.

UPDATE: The Denver Post reports that the Denver District Attorney’s office is investigating.

Gambling Ring Implicates Armstrong, Sander

It isn’t as juicy as the Denver Players Club scandal, but this weekend’s report of a high-end Colorado gambling ring has done what the Players Club scandal couldn’t do: name names. Among those who have been caught up in the ring are Denver Post sportswriter Jim Armstrong (who was fired Friday when his name surfaced) and Steve Sander, Denver’s director of strategic marketing and a member of the Metro Denver Sports Commission’s board of directors.

The silver lining for Denver Post colleagues is that Armstrong represents one less layoff that may come should the newspaper’s buyout program not yield results.

‘Content Fusion’ Just Marketing Hype

When I was a vice president at Weber Shandwick, I spent a lot of my time – 60 percent, if you believed my job description – having conversations with prospective clients, and I was always looking for a hook that would let me have a different kind of conversation with them than my competitors could have.

So I was curious about the agency’s announcement last week of its new “content fusion” approach to integrated storytelling that promises to identify “what stories can be told in which formats and where to drive those stories.”

After watching the video and reading the white paper, it is clear that “content fusion” is both brilliant and disappointing. It is brilliant because it give Weber Shandwick another proprietary hook to have unique conversations with a prospective client, and disappointing because it boils down to simply acknowledging that some stories are better told using video and graphics. Hardly innovative stuff, but you have to give Weber Shandwick credit for the fancy packaging.

Dovetail Solutions has Acquired Story + Welch …

… and I am joining dovetail as president:

DENVER – November 2, 2011 – dovetail solutions today announced that it has acquired Story + Welch LLP, a Denver-based public relations firm that focuses on B2B, professional services and technology clients. The acquisition expands dovetail’s client roster and strengthens its ability to offer its signature Strategic Community Investment-focused communications approach.

As part of the transaction, Story + Welch co-founder Jeremy Story will join dovetail solutions as president, reporting to dovetail founder and CEO Andy Boian. Story has more than 15 years of experience developing and executing high-profile communications campaigns for organizations ranging from the Fortune-100 to private start-ups. Among the companies he has counseled over the course of his career are CIGNA, H&R Block, Sun, American Airlines, ExxonMobil, StorageTek, tw telecom and Faegre & Benson.

Denver PR Jobs

Among those hiring this week are 90octane (part-time), Adams County School District 50, Catholic Health Initiatives, Colorado AIDS Project Red Ball Event (intern), Financial Planning Association, Junior Achievement-Rocky Mountain, MillerCoors, OptumHealth (UnitedHealth Group), Raytheon Office of Economic Development (State of Colorado), SunEdison, Talk Shop, Trimble Navigation, Vail Resorts, the University of Colorado Colorado Springs, the University of Wyoming (Laramie, Wyo.), and Pulse (Las Cruces, N.M.).

Armada Medical, GroundFloor Lead CHC ‘Gold Leaf’ Awards

Congratulations to Armada Medical Marketing, GroundFloor Media, Linhart PR, CSG and Welch Creative for winning awards at the 2011 Colorado Healthcare Communicators Gold Leaf Awards. Using the proprietary, highly sophisticated Denver PR Blog formula (three points for a gold, two points for a silver and one point for a bronze), the winners were:

1.  GroundFloor Media (7 points) – One gold, two silver
1.  Armada Medical Marketing (7 points) –  Three silver, one bronze
3.  Welch Creative Group (3 points) – One gold
3.  Linhart PR (3 points) – Three bronze
5.  Communications Strategy Group (2 points) – Two bronze

Also, congratulations to The Colorado Health Foundation’s Chuck Reyman, who was named the Colorado Healthcare Communicators’ “Professional of the Year.”

PRSA Colorado’s Chapter Retreat – CoLab

The CoLab (formerly the PRSA Chapter Retreat) will feature hands-on, intentionally collaborative workshops that will encourage and inspire you to build chemistry with fellow industry professionals, test your limits and expand your capabilities. You’ll develop a strategic mindset, strengthen your relationships and pick up practical tips.

Early-Bird Pricing through Oct. 27: Fees for PRSA Colorado members is $130 for full retreat, $50 for keynote lunch only, or $25 for Young Pros session only. Non-member fees are $170 for full retreat, $65 keynote lunch only, or $35 for Young Pros only. Student discounts available for $65-$85. Click here for details. Continue reading “PRSA Colorado’s Chapter Retreat – CoLab”

PRSA Colorado ‘Brand Challenge’

Next Wednesday, in lieu of its monthly luncheon, PRSA Colorado will host its first Brand Challenge – a networking, collaborating, creative thinking, pitching competition.

Representatives from Crocs, the Four Seasons Hotel, and Smashburger will present three unique communication challenges. Randomly assigned teams will have 30 minutes to develop a solution and three minutes to pitch their idea. Each member of the winning teams will receive prizes up to $100 in value.

In addition to food, drinks and great prizes, the event will be a great opportunity to:

  • Visit with friends and colleagues
  • Network with local PR professionals
  • Learn about the communication challenges that major brands are experiencing
  • Participate in an integrated brainstorming and pitching exercise with a diverse team of communicators
  • Observe the creative thinking and pitching style of peers
  • And, did we mention…prizes up to $100 in value from Crocs, the Four Seasons and Smashburger

REGISTER NOW:  http://bit.ly/mVQsy5

$25 for Students
$35 for PRSA Colorado Members
$45 for Non-members

Denver PR Jobs

Among those hiring this week are GBSM, HealthGrades, MillerCoors, University of Colorado Denver, Accurence, ACLU of Colorado, Broomfield United Methodist Church, Colorado Medical Society, Denver Film Society, Denver Health & Hospital Authority, Denver Metro Chamber of Commerce, DirectTV, Education Commission of the States (ECS), The Colorado Springs Gazette (Colorado Springs), Phoenix New Times (Phoenix), Cabela’s (Sidney, Neb.) and The Garden City Telegram (Garden City, Kans.).

Tickets Available for the DPC’s 2011 Gridiron Show

If you like to see Tom “Troubleshooter” Martino get kicked around, good news. He joins Michelle Bachman, former Congressman Anthony Wiener and President Obama as targets of the 2011 Denver Press Club Gridiron Show. Tickets are $20 each, and the show will feature Gov. John Hickenlooper, Denver Mayor Michael Hancock, Jim Benemann, Mike Landess, Cynthia Hessin, Bruce Goldberg, Ruth Darling-Goldberg and TaRhonda Thomas among others.

2011 Denver Press Club Gridiron Show
7 p.m., Friday, October 21
L2 Arts and Culture Center
1477 Columbine St., Denver
Purchase Tickets

 

Denver Post Sponsors ‘Top Workplaces’ Award

It looks like the Denver Business Journal is getting a little competition in the awards department – the Denver Post has partnered with WorkplaceDynamics for the 2012 Top Workplaces Award. Nominations are due October 28. According to Denver Post Business Editor Steve McMillan:

“The Denver area has a dynamic business environment with companies that have great stories to tell. We look forward to highlighting the metro area’s top employers and how they foster employee satisfaction.”

Denver PR Jobs

Among those hiring this week are 104 West Partners (internship), 36 Commuting Solutions, Allstate Corporation, Amgen, Arrow Electronics, CH2MHill, Denver Athletic Club, Graland Country Day School, HealthGrades, Metro State, Rose Medical Center (internship), University of Colorado Denver, Junior Achievement USA (Colorado Springs), Peak Vista Community Health Centers (Colorado Springs), The Lawrence Journal World (Lawrence, Kan.), The Dodge City Daily Globe (Dodge City, Kan.).

The PRSA Colorado ‘Great Brand Challenge’

When

  • October 19, 2011
  • 5:30 p.m. – 8:30 p.m.

Where

  • Braun’s (24th and Blake near Coors Field in the Ballpark District)

What

  • Representatives from three nationally recognized brands (Crocs, The Four Seasons Hotel, and Smashburger) will present the audience with a unique communication challenge.
  • Teams of eight to 10 people (attendees) will have 30 minutes to collaborate, brainstorm and develop a solution.
  • Each team will then have three minutes to pitch their idea in front of the audience.
  • The brand representatives will select the three best pitches – one for each brand.
  • Each member of the three winning teams will receive a prize from the brand they pitched.
  • Note: Teams will be assigned randomly to foster networking and fresh thinking by bringing together groups of people with diverse skill sets and experience levels.

Why

  • A fresh approach to networking
  • Exposure to real brands and real brand challenges
  • Opportunity to participate in an integrated brainstorming, planning and pitching exercise with a diverse team of communicators.
  • Exposure to the approach, creative thinking, ideation and pitching style of peers.
  • Opportunity to win big prizes

Registration

  • $35 for PRSA Colorado Members
  • $45 for Non-members

Rock a ‘Stache, Help a Kid

GroundFloor Media client Youth Opportunity Foundation‘s biggest annual fundraiser is Mustache4Cash/Color4Kidz. The concept is pretty simple – individuals sign up to color their hair or grow a mustache for about four weeks, and ask friends and family to “sponsor” their efforts along the way. All of the proceeds benefit at–risk youth mentoring programs in Colorado.

To get you in the mood, GFM’s Jim Licko has created a video extolling the virtues of rocking a ‘stache.

Allonhill Featured in WSJ Contest

Congratulations to Denver-based mortgage due diligence firm (and Linhart PR client) Allonhill, which made the first cut in The Wall Street Journal’s “Big Innovation, Small Business” contest that highlights companies that employed smart strategies to survive the current “Great Recession. Allonhill launched with a small team during the 2008 housing collapse and has grown to more than 350 employees and is projecting $36 million in revenue in 2011.

Allonhill and Colorado-based companies M&E Painting and Travelers Haven LLC are being featured on The Wall Street Journal’s small business blog. Readers can vote for their favorite stories through Friday, and the Reader’s Choice winner will be revealed in a special report in November.

PRSA CoLab

Registration has opened for PRSA CoLab, a full-day experiment in innovative thinking and discussion for Colorado’s public relations professionals. The hands-on, intentionally creative and challenging workshops will encourage and inspire participants to build chemistry with other industry professionals, test their limits and expand their capabilities. The CoLab will feature top speakers, energizing activities and a collaborative work environment.

PRSA CoLab
9 am – 5 pm, Thursday, Nov. 3
Denver Art Museum

 

Denver PR Jobs

Among those hiring this week are Covidien, Denver Public Schools (internship), Development Counsellors International, Encana, Fearless Campaign, Gaiam TV, Huttner Group, Outdoor Industry Association, Starz, University of Colorado Denver, WhiteWave Foods, Honeywell (Colorado Springs), Daily Planet Newspaper (Telluride) and J.M. Waller (Fort Carson).

Johnston, Goldberg Inducted into DPC Hall of Fame

Congratulations to JohnstonWells’ Gwin Johnston and the Denver Business Journal’s Bruce Goldberg for being two of six inductees tonight into the Denver Press Club’s 2011 Hall of Fame class. Gwin founded JohnstonWells as a single mother 40 years ago and built it into one of Denver’s most successful and well-recognized PR firms. And Bruce may be Denver’s favorite curmudgeon, recognized for his work as associate editor of the DBJ and his tireless support of the Denver Press Club.

Denver’s PR Agency Leaders

If you are interested in learning first-hand what it takes to build one of Denver’s biggest and/or best PR agencies, plan to attend PRSA Colorado’s September luncheon. I am moderating an all-star panel discussion that features six of Denver’s most notable agency leaders:

Send me an email or post a comment if you have a question you would like me to ask any or all of these agency leaders. And don’t be afraid to make them tough – they can take it.

Denver PR Jobs

Among those hiring this week are Comcast Sports Group, the Cortez Journal, Habitat for Humanity Colorado, IHS, Mental Health Partners, MetroMix.com, Pacific Dental Services, St. John’s Cathedral, SurveyGizmo, The Colorado Statesman, US Department of Labor, Western Resource Advocates, Communications Strategy Group (internship) and Kansas State University (Manhattan, Kans.).

GroundFloor Media Celebrates 10 Years

Congratulations to Laura Love-Aden and the team at GroundFloor Media. They are celebrating the firm’s tenth anniversary by expanding its award-winning “Get Giving” community donation program to award a total of $10,000 – $1,000 for each year of service – to four local charities: Dress for SuccessColfax Community NetworkUnderwearness and Morris Animal Foundation.

GroundFloor also celebrated the anniversary with a party for clients, employees and friends at the Denver Museum of Nature and Science.