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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