Clubhouse is all the rage – and the likely site of the next business crisis

Don’t get me wrong. I think Clubhouse, the audio chat app that is taking the world and Indonesia by storm is fantastic.

Here you have an app that makes interaction easy among people with same interests. And because its audio only it also creates a feeling of intimacy and ability to network during sessions.

Another added benefit is that since it is organized usually as an informal and chilled-out chat, there is little preparation needed.

The result: Every Indonesian what fancies themselves as connected has signed onto the service and many have already organized Tchaikovsky rooms from a few people to a few hundred. Either that or they are desperately waiting for an invite to get onto Clubhouse.

The ease and informality of these chat rooms are Chatroom’s great strengths. But they also harbor its great danger – the likelihood of uncontrolled blabbering, under the mistaken notion that its an informal chat and there are little consequences to speaking your mind.

Users of Clubhouse or any social media application should always remember that whatever you do or say there can be recorded or copied and shared to a wider audience. There is little control once words are written, images are shared or words are uttered and you can never be sure who will be listening in, first hand or second hand.

Today I saw a chat room discussion on PR matters in which a spokesperson for a company that was recently in a crisis-like situation agreeing to talk about their recent experience.

Sharing is great but when your company has just undergone a reputation all crisis and nerves are still tender, one wrong word or phrase can plunge it back into the couldron.

I am sure that there will be a crisis or two arising from Clubhouse chats.

This is not to say that people should avoid something new like Clubhouse . They should try it and use it by all means but they should never underestimate how whatever happens on social media can often be taken out of context.

No matter how new or sexy the technology, skill, deliberation and awareness are still needed.

Eiger IV: Wow, what a turnaround – in a good way

CEOs are like the rest of us. They make mistakes.

But because of their elevated position and their egos many times its easier for them to bluster and get defensive over these mistakes. And it takes a really big man to admit theirs and ask for an apology.

After the Eiger letter berating Youtubers reviewing its products went viral, the brand came under a groundswell of criticism.

The CEO , Ronny Lukito, then issued a non-apology, failing to take responsibility for the incident, to be genuinely contrite and to explain why something like that would not happen again.

His critics weren’t assuaged and many were further inflamed. Unspun wrote about that and said that he failed to adhere to the 3Rs of crisis communications, which are Regret, Reason and Remedy and that he should seek professional help in his communications.

He must have, as today he issued a YouTube video and a statement apologizing to the affected YouTubers and taking full responsibility for the incident.

He explained that it was his idea to issue the offending letter. His PR, Marketing and legal teams tried to talk him out of it but because of arrogance he overruled them.

He has since realized his mistake and this incident has been a humbling and educational lesson for him. He has since appointed professionals to help him come up with better policies and improve their communications.

The result: if the comments on his YouTube posting are any indication, Netizens have forgiven him and appreciated his honesty and humility.

This is a good lesson for other CEOs on what to do during a crisis for their brand. I’m sure that Eiger will go from strength to strength from here if Mr Lukito maintains such an growth mindset.

I always loved their products. Now I love them more.

First Media: Snark can’t buy them love

First Media’s blundering tweet last night is a lesson why corporations and brands should be concerned about their social capital.

At about 10pm First Media social media admin thought they’d be clever and ride on the Eiger letter fiasco that earned the ire of Indonesian netizens.

Through its twitter account @FirstMediaCares they posted a letter similar in format to one sent out by Eiger competitor Arei, which was used to shade Eiger’s obtuse letter because its invitation for consumers to review its products was very laid back and inclusive.

Obviously, the First Media admin thought they were being smart and witty. Afterall, many companies had done the same and they raised a chuckle and approving plaudits from Netizens.

The posting attracted the attention of Uber influencer Ernest Prakarsa who simply commented: “Aduh. First Media. Aduh.”

He followed this with another tweet saying “Heads gonna roll” and attached the image of the First Media letter.

What followed was a long chain of replies and comments from other Netizens and disgruntled First media customers spewing invective with the common refrain: get the bloody service right before trying something snarky

PANIC!

The First Media admin began their first aid by deleting the posting with the image of the letter, thinking that they could mitigate the barrage of criticism.

As always, on the internet once something is posted there is bound to be a Smart Alec out there who has downloaded or screen captured the image. You just can’t put the Jinn back into the bottle.

True enough, netizens began posting the taken down image and First Media became the laughing stock on Twitter.

This incident provides a good example why corporations without strong social capital are often attacked and criticized.

Social Capital is about a network of relationships built on shared values, trust, cooperation and reciprocity. In other words you have to take care of your stakeholders and win their trust instead of just taking their money and shafting them when it comes to after sales service.

Social Capital, if you observe from the many complaints and invective of dissatisfied and angry customers directed to First Media on social media, is something that the company obviously has a deficit of.

As such trust in the company is low and at any given opportunity the tendency of its users is to trash it. Even an innocuous attempt at humor like the letter last night backfires because the brand has such low social capital.

What can the brand do? It can start by listening to its customers and acting on their complaints for a start. The number of people who feel like they were banging their heads against a wall when trying to get First Media to restore their service is legendary.

I know that there are many disgruntled First Media customers out there. If any of you are disgruntled and think First Media is unresponsive or ineffective in servicing you, just leave a comment below for them to know how low their Social Capital is among their most important stakeholder – you the consumer.

Eiger III: the Legal Eagle’s wings are clipped, but has the root cause been addressed?

Note: I got the information about the sacking from an online news portal in Indonesia. Have been told that the twitter account of Hendra Lim is actually a fake.

So apologies all. Disregard this post but rather than me deleting it I think it best to clarify it here and leave the rest as is so that others might be able to know that it’s fake as well. Hendra Lim apparently still works at Eiger.

Eiger has sacked the legal manager whose insulting letters to YouTube reviews of its products has put them under an uncomfortable spotlight, (see here)

The sacking is confirmed by the Leggal manager himself in his own twitter account

Hendra, however, seems unable to stop shooting himself on the foot, lamenting in a twit that politics between businesses, artistes and YouTubers and virtually the whole world is conspiring to keep The People poor and heap blame on them.

He’s young and perhaps will recover from this but any prospective employer looking at his social media feeds (and we employers do check, or have people point it out) would do a triple take before taking a chance on him in the future.

Be that as it may, he is now out of Eiger’s hair. Does his departure, however, mean that Eiger’s problems are over?

It depends. If the management there has owned the problem then they’d be ok moving forward.

As I said in the last posting, if they had learned from this incident they’d recognize it is as much management’s as the legal manager’s failure that triggered this incident.

If they realize this then they’d take communications and reputation protection seriously and hire professional communicators to to a communications job.

If they haven’t then they will remain a crisis waiting to happen. Time will tell, WFH audiences await the next installment.

Eiger II: A lame apology and more trouble coming

Latest update on Eiger saga here

Yesterday the outdoor adventure gear brand Eiger got into a hot mess when its Leagal Eagle went a step too far and dissed off YouTubers reviewing their products. (See post here)

By late afternoon the Eiger CEO Ronny Lukito had had enough and decided to take matters into his own hands. He apologized for his Legal Eagle’s letter with his own letter.

All good apologizing but you have to wonder who is advising him on the PR front because the apology was not really an apology. When this happens it usually invites ongoing resentment and possible future attacks.

He started the latter with an apology to the community. He then admitted that the offending letter that had gone viral had indeed been sent by Eiger and they realize that this was a wrong and inappropriate action. So far so good.

Then he had to say that the original intent of the letter was to provide input to the reviewer so they can improve. Bang! Another shot in the foot. Although he tried to paper over the hole with “we realise that how we conveyed that was wrong”, he had stumbled.

This is what communicators classify as mixed messages. It’s when observations, inferences, feelings and wants are jumbled up.

Here it would have been fine if he said that whet they did was wrong, he as CEO takes responsibility for the act, he’s sorry for all the frustrations and angst caused. Instead he went on to explain their intent which still sounds patronizing, because its an outdoor gear maker telling a YouTuber how to improve shooting review videos.

Lukito also left out a vital element of apologies in crisis-like moments. He failed to say what action he’s taking to make sure that this does not happen again. Without stating this he is giving the impression that the company is not taking responsibility for the incident and not interested to learn from their mistakes. At worst, many would think that they will get back to business as usual once this kerfuffle is over.

All this leaves the company open to more criticism if the opportunity arises.

Lo and behold, the opportunity came this morning when some Netizens uncovered an incident where the legal department of Eiger asked the giant online e-commerce site to take down a reseller’s product posting of a Sritex face mask. And Tokopedia complied!

Now it looks like Eiger has not only shot itself on the foot but is also extending its foot fetish toTokopedia.

Like I said yesterday, I think Eiger makes great products. It has also been quite smart and savvy in its design and branding. It is now the victims of its own success but it is something that it can easily fix by seeking professional help.

It takes skill and experience to communicate well. To entrust it to a legal flunky is being careless with your hard worn reputation as it takes skill and experience to communicate well, with authenticity and ethically.

They should seek professional help in the short term while they look to hire an experienced communicator in-house expressly for reputation all management.

I

Plumbing the depths with Eiger

I love the Eiger outdoor brand. Their products are affordable and often of good quality. A sandal I bought has lasted me years and looks like it will continue for at least another year or two. Damn comfortable too.

But good as they are in making outdoor gear they apparently suck at customer relations. Here’s what happened:

On 28th January, competitor outdoor gear brand Arei’s issued a letter inviting Netizens to review its products.

Arei’s invite sounded very inclusive and cool. Reviewers could use any method, any camera, any theme or in any location they liked to do these reviews.

Eiger must have thought it could do the same but when netizens began reviewing their products and uploading them on YouTube – and the reviews weren’t flattering – Eiger’s Legal General Manager began to get antsy.

He started sending nasty letters to the reviewers. They began with a faux politesse of “Firstly, we thank you for uploading a review of our product on your YouTube channel…” then quickly drew out the stiletto.

Instead of explaining in a rationale manner whether the review was fair to Eiger, it instead criticized the video’s quality, specifically the angle it shoes to show their products in an unflattering manner.

The Eiger Legal Manager also was an audiophile. Complaining that the sound quality was bad to make it quite inaudible and lastly, he criticized the suitability of the location of the shoot.

With that, the manager hoped that the YouTuber would take down that posting and, a bitchy parting shot: “We hope you will become a better Youtuber in [shooting] review videos.”

That’s a shot in their own foot by any measure but that’s not all. When news of that came out on social media it, of course, went viral and Eiger became a trending topic.

Eiger’s troubles did not end there. It turns out that the manager had sent out at least identical letters to two other YouTubers.

That makes it at least three shots to two legs. How many shots the manager had fired nobody really knows.

Netizens have a habit of digging up interesting information about foot shooters and one of them dug up a poster of the manager giving a talk.

The topic: How to Implement Agile Human Capital in Transition and Shifting Era. Oh irony of ironies.

Makes you wonder the caliber of people invited to give talks these days. And what possessed Eiger to entrust its communications function to a legal person instead of a communications professional

Al manager

Mr President: Apart from professional help, you need honest feedback

Even the usually mild-mannered Endy Bayuni was forced earlier this week to rant against the President and his team’s egregious handling of the Coronavirus outbreak in the usually tepid The Jakarta Post.

He counseled seeking professional help instead of relying on amateurs for something as serious and critical as the matter staring us in the face.

His advice, like so many well-meaning ones, seem to have fallen on deaf ears. Or has it? One wonders.

From the inaction and indecisiveness that Jokowi practices, to the gaffes that he makes when he finally acts or speaks (example: Lat Saturday Jokowi admitted to withholding information on COVID-19 because “we don’t want people to panic”) he must have been influenced by his advisors.

Anyone that has been in leadership positions are usually surrounded by advisers and courtiers. The quality of these people, who often become the eyes and ears of the ever-busy Leader, become crucial to how he perceives the world, what informs him and subsequently, the decisions he makes.

Who are they? Few of us have the inside-track on who he trusts apart from Luhut, but if you look at who Jokowi surrounds himself with you may get a good idea of the type of people they are.

They are usually smart professionals, seemingly liberal, connected in politics and business, influential on social media and above all loyal – some say fanatically loyal – to Jokowi.

The last quality is where the double-edged sword cuts. Their loyalty blinds them to the mistakes Jokowi is making and the merits of his rivals. This loyalty also makes them drink the Cool Aid when it comes to Jokowi’s reluctance or inability to act boldly, especially in holding others in positions of responsibility to account.

The result is groupthink is of the highest harm.

Groupthink, as some may recall, was the greatest bane of Kennedy’s administration. Although Camelot was staffed by the brightest people whose IQ was off the charts, they as a group had so little diversity in opinion and viewpoint that none of the inner circle held the view that the Bay of Pigs invasion was an exercise in folly and miscalculation. been.

Groupthink, one suspects, is at work overtime in Indonesia today. Whatever Jokowi does or doesn’t do over the Coronavirus outbreak is wise or excusable because of the political complications.

Terrible record but you gotta admit Anies Baswedan looks like a leader when other political leaders are pussyfooting around wringing their hands or stubbing their feet

No one else can do better than Pakde. So when Anies took to TV and social media to announce the initiatives that Jakarta, was making, including the closure of schools, it was dismissed as yet another antic of Anies the Sweet Talker with No Substance.

In spite of his record of failure to deliver, Anies looked decisive, he looked open and he looked like a leader when compared to Jokowi’s fumbling doesn’t not occur to any member of the Groupthink.

Their instinct is to dismiss the fact that Anies did better than Jokowi in this instance. They’ll now take to social media to disparage and scorn him. This has not been lost to Indonesia’s netizens who are slowly but increasingly wising up to their antics. hence the backlash against Jokowi’s Buzzers in social media.

This is dangerous in the extreme for Jokowi who because of the Groupthink surrounding him, would have lost his ability to sense danger.

And danger there is. The public is getting more disillusioned by the day by the culture of impunity that Jokowi has allowed to grow in his administration. You have the Health Minister Terawan who failed miserably to handle the first stages of the Coronavirus outbreak in Indonesia who has not been sacked or even chided.

Lashed to incompetence and creating a culture of impunity

You also have imbecilic officers like Siti Hikmawaty, the Commissioner of the Commission for the Protection of Children saying stupid things like a woman can get pregnant if she swam in the same swimming pool as a man, yet has not been chided or removed from office. The list goes on but the message people get is that the bad guys do not get punished or removed but allowed to fester in the administration.

She who says women can get pregnant if swimming with a man in the same pool is still sitting comfortably in office, drawing her salary

Jokowi’s abysmal handling of the Corona virus outbreak also poses a political danger to him. With the national Government seemingly paralyzed by inaction and indecisiveness, the regional leaders are beginning to assert themselves in this leadership vacuum.

Jakarta Governor Anies Baswedan’s announcement of school closures and his publishing a map of Coronavirus infections in the city con only be interpreted in this context.

The problem is that this Governor, who comes to power by allying himself to racist and religious extremist politicians, is starting to look like a leader.

The last thing most of us want is for Anies to come to power. It hurts all the more to realize that Anies’s gins are only possible because of the ineffectiveness of Jokowi’s leadership.

It is time that Jokowi does a reality check of what sort of advice he is getting from his advisors and whether he’s only living in an echo chamber build by Groupthink.

But here’s the irony: how will he ever know he would have to do this reappraisal, as none of his advisors will bring this up to him (and Unspun doubts that Jokowi reads this blog).

In sociology there is something called the Johari Window where one of its quadrants contains something that everyone else knows about you; butt it is something that you do not know yourself. It is the building block for Greek tragedies as heroes inexorably plunge to their fates inspite of all the signs warning them of danger.

Let’s hope this does not come to pass.

Will The Indonesian Government end up like the one in Hong Kong – reviled, untrusted and ineffectual?

Communications, or lack of, is digging the government into a bigger hole than it is in because of issues surrounding the amends to the KPK and criminal Code laws, Papua, forest fires and the president’s family.

With public sentiment at best skeptical at worst critical of the government, communications can make the difference between people’s perception of the government as open, responsive and accountable – which would make it easier to quell tempers and protests – or as arrogant, tone deaf and defensive – which would only serve to escalate tempers and intolerance.

Minister Amran: Try being a minister if you like to protest. Source: Katadata.com.

The latest misfire came from Agriculture Minister Amran Sulaymaniyah commenting on the protests yesterday in which tens of thousands of students took to the streets in many cities through Indonesia to protest the amendments to the Criminal Code and other laws.

“Those who like to demo should become a minister,” he was quoted as saying by katadata.com. “Then they’ll know what its like to be a minister,; he said, adding “Enak Aja”, an Indonesian term that roughly translates into “you don’t know shit, so shut up.”

Obviously he hasn’t heard of the saying “heavy is the head that wears the crown.” Nobody forced him to become a minister, he accepted the job and is now bellyaching about how people don’t understand the difficulties of b ring a minister when confronting demonstrators?

Then there was Coordinating Minister for Legal, Political and Security Affairs Wiranto who told the press yesterday that the student protests were no longer relevant because the House of Representatives had heeded president Jokowi’s call to postpone the passage of the criminal Code and other controversial laws.

Again, this was a display of the lack of perhaps thee most vital skill in communications: listening. If he had listened to what the protesters had to say, he would have realized that what they were effectively saying was that they wanted amendments to these laws cancelled, not put aside like some unholy zombie to rise again when the public is distracted elsewhere.

Listening would also inform him that the subtext of the protesters is that they can no longer trust the  Legislative and Executive branches of government to do the right thing by them and the nation. The Legislature because they could originate amendments that seek to rob its citizens of the right to choose their own lifestyles, their freedom of speech and action. The Executive for being too weak to veto such atrocious amendments and then, belatedly, tried to band aid things with some Palau my about protecting the KPK’s rights, and a request to remove the article about insulting the President.

Furiously digging the same hole was the President’s Chief of Staff, who was who was quoted by CNN as saying that the student protesters should understand that the Executive and Legislature had decided to discuss further the legal amendments and that the President now had many important things such as Papu and forest forest to occupy his time.

If one were vulgar one would interpret his quote as effectively saying” We already threw you bone by postponing the  passage of the amendments, so fuck off and leave us alone. We have more important tasks than to cater to your sods.”

All this does not help.

Neither has the Legislature. The Leader of the House of Representatives Bambang Soesatyo was at his misogynistic best when during a meeting with the press in which a woman reporter asked several questions, he unctuously and patronisingly asked her “ada pertanyataan lagi, sayang?” This is equivalent in English to “any more questions, Honey?”

The reporter fell silent, probably from outrage. The men laughed and Bambang sought to make it up to her by saying “its OK because we are all family. I know you all….(illegible) you all young.” Think creepy uncle.

The public perception is that the legislature is definitely out of touch with the people’s aspirations. On top of that they are all entitled and voracious money grabbers who are uneducated, unsophisticated and unfettered by scruples and morals.

If the Executive is not careful and quickly acquire some communications skills and advice, it will be lumped in together with the Legislature. Then it will be too late. It will be like the Hong Kong Government  being tone deaf and committing a series of mistakes and inflaming the Hong Kongers to the extent that confrontation rather than accommodation becomes the norm.

And when things got really bad, the Hong Kong Government finally realized that it needs to communicate better. It invited several international Public Relations firms to help it communicate better but it was too late. Not a single PR firm took up its offer to pitch for the business. 

As things stand it is still not too late for the Jokowi Government. The President still has a lot of social capital from his past performance but that is depleting fast at this rate unless he does something about his cabinet’s communications. He needs to seek professional help soon or end up looking like Hong Kong’s Carrie Lam – reviled, untrusted and ineffectual.

 

KPAI isn’t all wrong about PB Djarum

Something important is lost in the rancour against KPAI (The Commission for the Protection of Children) for calling out PB Djarum’s (Djarum Badminton Association) badminton auditions.

KPAI, as we know has accused the cigarette maker Djarum of using its foundation, PB Djarum (Djarum Badminton Association) to exploit children.

To be sure, KPAI has chosen its accusation poorly, using the word manipulate instead of exploitation or a more neutral used. It has caused a groundswell of opinion and invective against its stand, drowning out the one important issue that should be addressed: how should corporations discharge their Corporate Social Responsibility?

If KPAI had been more measured it could have advanced a more persuasive argument against Djarum because it does have a point. Djarum is indeed using PB Djarum to give it visibility in the youth segment where the Djarum tobacco brand has been forbidden to enter.

PB Djarum has undoubtedly contributed immensely to Indonesia’s domination of badminton worldwide/ But setting up a foundation or creating an event that is seemingly divorced from the parent brand’s activities, yet giving the brand a high visibility is one of the oldest tricks in the book of corporate communications.

Why else, you might ask, would the foundation still carry the logo and brand name of the parent brand? In this instance, you cannot look at the PB Djarum logo

Without being reminded of the tobacco company’s parent brand.

Why can’t Djarum (and other Indonesian companies). for instance, adopt the route taken by the Bill and Melinda Gates Foundation that is in part funded by Microsoft Stock dividends. The Foundation’s logo.

And why, among all the gin joints and causes, does Djarum have to alight on a cause to do with the target demographic for continuing tobacco sales? Why can’t it, instead, channel its vast resources in, say, helping improve the lot of tobacco farming families?

Study the marketing campaigns and events of other Tobacco companies and you will see the same cynical insertion of their branding elements.

On the other hand, the Bill and Melinda Gates Foundation can never be accused

Can never be accused as a vehicle for Microsoft.

The problem in Indonesia, I think, is that most corporations have not thought through the role of business in helping the nation develop economically and socially.

What is their role? How should they go about it? In which causes or issues? And will they have credibility and trust if they proceed.

Many corporations Here grasp at the most convenient concept around: Corporate Social Responsibility.

It’s a concept that sounds nice but is dated and ineffective, especially during these times when trust in business is at an all-time low.

Harvard Business Professor Michael Porter have argued convincingly that CSR doesn’t quite work because it does not reconcile a business’ imperative to make profits with the need to contribute to economic or social development in the Harvard Business Review on Creating Shared Value. Here is a video of Michael Porter speaking on CSV to business leaders

To me CSV makes more sense. It posits the notion that businesses are aware that unless the communities with which they work with prosper, neither can they. As such, the corporations – because of the resources at their disposal – should take the lead in helping these communities generate economic or social value in their activities. By doing this they are effectively creating shared values.

This will help them to rebuild the trust that Business Has been losing ground on. An with this trust comes greater social capital with which they can achieve more and perform better. It’s a virtuous circle.

The KPAI-PB Djarum issue has given us a chance to reexamine and review the role of business in society, especially the businesses in controversial industries such as tobacco, alcohol, large-scale agriculture and mining. because of their huge revenues they are under scrutiny by many activists, NGOs, social organizations and regulators.

Business has a great opportunity to do it right and embrace CSV, or they can continue to dwell in their comfort zones and keep plugging away at CSR – and then wonder why, after all the money and effort they have altruistically committed to an activity, people still distrust them.

Maverick’s views on the Garuda fiasco

This is what I co-wrote with my colleague Marsha Imaniara on the fiasco surrounding Garuda after it issued a circular banning passengers from taking photos and video clips on board its airplanes.

https://m.kumparan.com/marsha-imaniara-1563432131140003103/alasan-garuda-indonesia-terjepit-akibat-menu-tulis-tangan-1rUXfXMLbKX?utm_source=Mobilesite&utm_medium=copy-to-clipboard&utm_campaign=Share

And this is the English version in the Maverick blog

https://maverick.co.id/the-reason-why-garudas-in-a-tight-spot-over-hand-written-menu/

Leica ad draws heat in China for a photo shot by a Nikon

The advertisement below is dramatic to say the least. It depicts how journalists risk their lives to bring us the images that will change the world.

One of the most iconic images in the world is one shot in Tiananmen  Square on June 4 1989 when a lone man carrying shopping bags stopped a column of tanks by standing in their way. It came to stand for the students defiance against an authoritarian regime and was dubbed the Tank Man.

tank man

Leica released an advertisement last week telling a story of what it must have been like for the journalist who took the photograph. All powerful stuff and expertly shot and quickly drew the ire of the Chinese Government and other Chinese.

The Tiananmen Incident remains till today one of the most sensitive issues in Chinese society. The Govenment has banned all mention of the incident. Other Chinese, however, have hailed the ad as something that needs to be said. Still other point out that by airing the ad, Leica is jeopardizing Huawei in a sensitive time, because Huawei uses Leica lenses in its handphones.

Leica has since disowned the ad, saying that it was unsanctioned by Leica and it was the fault of the agency that produced it for loading it onto the net. Yeah.

The political fallout is one thing but what strikes Unspun as ridiculous is that the journalist depicted were almost certainly using Nikons than Leicas. There were actually four journalists that managed to snap photos of the tank man.

Three of them told The New York Times that they were using Nikons. The fourth did not say but there is no evidence he used a Leica.

So you decide whether the Leica ad was a good ad that spoke truth to power, an ad where poetic licence was more important than facts, or a needless provocation of the Chinese Government and some of the Chinese?