Professional Career



March 22, 2002


 

Hoffman: Conducting PR on a Global Scale in China

By Taotao

The Right Time to Employ PR

Recently, high-tech companies in U.S. are marching head-down to the economic slump, and a tidal wave of layoff is spreading to Asia. Stock prices plummet and high-tech companies turn from a flourish of trumpets to a gloomy and vague future. At the very moment, is it necessary for them to conduct public relations? As public relations agencies focused on IT, will the slump influence them? How can they face the challenge? With these questions, journalist interviewed Lou Hoffman, president of The Hoffman Agency, the fourth largest public relations agency in Silicon Valley.

From the viewpoint of a PR professional, Lou Hoffman provided his ideas on the question "whether companies should insist on PR Communication in the economic downturn". He said, "It is the right time for high-tech companies to develop PR communication, though, high tech market is full of competitions, during economic downturn and with comparatively decreasing competitions, companies who spend more effort in the PR communication will get higher benefits. "

Lou, once a journalist and 14 years experiences in the field of high-tech PR, is sensitive to the development of companies in Silicon Valley. He found that there was such a climate: most tech companies embraced the sophisticated strategy known as "hide-and-peek PR". Companies adopted a bunker mentality to minimize communications with external audiences, periodically searching out that friendly reporter who wouldn't poke and probe.

Lou said that it was an unwise behavior. For example, he remembered one CEO from a big American company canceling a trip to COMDEX to avoid "the outside world". Now that makes a lot of sense. The company is in the dumpster, inventory languishes in warehouses, and he wants to barricade himself from talking to the very people who buy his product or observers of the industry who offer an outside perspective.

Contrary to traditional thinking, Lou Hoffman said, "Today's tough market conditions offer terrific opportunities for companies to strengthen relations with the media, tell their story and even bolster their reputations. It's all in how you capitalize on the situation, how the market perceives your CEO handling a tough situation goes a long way toward eroding or building your reputation. The image of the CEO cowering under a desk does not elicit market confidence."

Meanwhile, He gave us another example, "Consider the typical reaction to a report in the media that Amazon's Jeff Bezos dodged a CNBC interview after hearing a reporter from The Wall Street Journal was joining Mr. e-commerce on the set. "

To bolster the reputation of tech companies nowadays, Lou Hoffman pointed out, "few actions enhance a reputation faster than seeing the head honcho stride front and center, confidently acknowledge the challenge, take a few bullets for past problems--no whining or making excuses--and then move on to articulate a plan of action to put the company back on course. "

PR Company and Client: Build the Real Partnership

In new economic era, the word "Partnership" is so popular that it seems we can't survive if we don't built "Partnership".

On Lou·Hoffman's stand, The real partnership between PR company and their clients should be built on care each other not on single side.

Hoffman always remembers to emphasize this special expectation when they communicate with their clients. They think the clients should take on the responsibility of enhance part of experience of Hoffman program team. Certainly, Hoffman Company can give training and advancing opportunity to their employee, create good work surroundings and give competitive offer and soft benefits.

Lou said, "This doesn't mean we expect clients to follow our advice or docile and obedient. The client has the right to demand great work to PR Company "

Lou thinks that there should be some same professional moral rules abided by both the clients and PR Companies. Now, some clients began to regard PR Companies as the extension or member of their marketing ministry. PR Company found that this new style partnership run well.

HOFFMAN: Conducting PR on a global scale

The Hoffman Agency entered Chinese market in 1997, and in late 1999, two different sets of Chinese government officials met with Hoffman China office to discuss services. But they weren't looking for PR services. Instead, they were looking for assistance in raising money from venture capitalists based in Silicon Valley.

"That's a symbol of the opportunity that they see Hoffman as a broad communications company which can bridge Mainland China with Silicon Valley." Lou Hoffman introduced, "Indeed, Hoffman provides PR service on a global scale. We aim to offer opportunities to improve understanding and cooperation between China and Silicon Valley, through planning and consultation on professional market communication strategy and customized product and service."

The Hoffman Agency launched a publication called China ePulse in June, 2000, which provided professional reports and market analyses for mainly senior positions in U.S. high-tech companies. Furthermore, a free monthly online news service from Hoffman China -China High-tech PR Newsletter was offered to companies in Silicon Valley, which covered information ranging from focus of technical market, news anecdotes to knowledge base of the IT PR arena in China, to assist Americans have a clear idea of Chinese market.

To introduce China to the Silicon Valley, Hoffman also hammered at the reciprocity from Silicon Valley to China. On the advantage of location, in the center of Silicon Valley, The Hoffman Agency, which headquartered in San Jose, Calif., published Approaching Silicon Valley in May, 2000, with Chinese version twice a month, helping Chinese companies approaching Silicon Valley from different angles like economic model, enterprise management, technology innovation, community and lifestyle. The publication was free to companies and medias by E-mail or post.

As the fourth biggest public relations agency in Silicon Valley and the first tech public relations specialist to establish a presence to Mainland China, The Hoffman Agency is good at strengthening client loyalty by extraordinary planning and operation. It usually carries a long-term partnership with clients, and 60% of total revenues come from clients in cooperation over 3 years.

In American market, Hoffman has remained this partnership with Hewlett-Packard for over 14 years, other clients including National Semiconductor, Quantum, Philips, Google, e*Trade, Broadvision, Brocade, i2 and start-up ventures. It provides public relations services in Beijing, Hong Kong, Taiwan, Singapore, Japan and Korean.

In Chinese market, The Hoffman Agency, whose client roster ranges from well-known companies such as Iomega, CommWorks (a subsidiary of 3Com Corporation) to some high-tech enterprises like Tibco,i2,Virata etc.

People-Centric Culture in Hoffman

Lou Hoffman is an American native. However, from his speech and behavior, you experience a gentle and sagacious man like a traditional Chinese scholar. When employees in Hoffman China spoke of him, they usually called him "patriarch" with great respect.

The Hoffman Agency, indeed, always stretches its open, relaxed and people-centric traditions throughout the global offices. For example, there are only 1/3 employees working in the office, while 1/3 stay working at homes, and the rest of them outside the office for market or exploration, what called "elastic working system" by Lou Hoffman.

Such working system brings convenience to employees lived far away from office or heavy-burdened, then saves their times and energies. With its global exploration, Lou Hoffman follows the development by avoidance of purchasing and merger in order to remain consistent to the tradition of Hoffman and establishes the "pure Hoffman" company.

For instance, Hoffman China was founded by Zhong Li from U.S. headquarter, who selected the local PR talents and extended Hoffman's tradition to her Beijing colleagues. Zhong Li had returned to U.S. now and transferred Beijing office to her successor, Ms. Shen Tao. Along with the number of employees increasing to 10, the tradition put down the root in the development of Hoffman.

When a ordinary account director of Hoffman China, Huang Fang talking about client service, she said she was often supported by colleagues around the global office, and could share the global resources not only from advice proposal but execution.

In order to encourage staffs to do exercises and keep in good health, Hoffman China not only organizes plentiful entertainment and exercise activities, but also appropriates a sum of money for individual physical exercise. Moreover, Hoffman China adheres to providing professional training for employees to help them make great progress in the work. It puts into large sum of money to offer overseas training opportunities, in order to assist them improve public relations tactics and service on a global scale, better geared to the cultural tradition of Hoffman.

About Lou·Hoffman

Hoffman launched The Hoffman Agency in December 1987, after 14 years in journalism and public relations. He assists clients in corporate positioning, message development, crisis management, and mergers and acquisitions. Hoffman is an accomplished speaker and writer on the topics of high-tech PR and global business and has addressed national and international audiences for PRSA and the PR Professionals of Singapore. Hoffman also writes a regular column in MC Magazine and has been featured and quoted frequently in other publications, including BusinessWeek, The Wall Street Journal and a number of PR trade magazines.

 

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