Today our government has become the largest consumer of goods and services in the world, annually putting out contracts approaching half a trillion dollars. Corporations, lobbyists, trade associations, state and municipal governments spend hundreds of millions of dollars chasing after this business.
And not just our government, to be sure. In 2006, long-standing financial contracting abuses were documented by government auditors in Canada after five advertising agencies received substantial contracts rewarded through an RFP. The media promptly coined the phrases “AdScam” and “Sponsorgate” to showcase that little actual work was done for monies awarded to advertising firms, while large sums were donated back to the Liberal Party.
The end result was that the Liberal Party, in power for thirteen years, was toppled. Jean Brault, the president of Groupaction, a Montreal advertising firm, was sentenced to 30 months in prison and paroled after five. He still faces an additional conspiracy charge.
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When the stakes are staggering, so are the risks and rewards. In today’s global political, social, business, and economic climate, scrutiny over government contracts has never been more intense. Companies wishing to compete must recognize that exercising high standards of ethical behavior and following all the current existing rules are only the beginning. Nowadays, the playing field is neither level nor clearly marked.
A redefined media marketplace has created information transparency and instant access. Scandal-hungry media, watchdogs, and whistleblowers have new weapons such as virtual real-time research, global distribution networks, and a twenty-four-hour news cycle.
Independently or combined, these factors have caused immediate, severe, and sometimes fatal damage to organizations and individuals caught in the cross-hairs of a political contribution or government contracting investigation. No one is immune.
What’s the drill when your number comes up in this high-stakes game?
First, last and always—be quick! That means assessing the immediate and short-term potential damage, assembling your resources, determining who your allies and enemies are, deciding on the key message, and moving your facts and perspective out to all relevant constituencies and markets.
Second, understand reality. Media is a business and it operates 24/7. To move its product, which is information, it is constantly prospecting for sources, ideas, and stories. Once a story claiming malfeasance or impropriety is out there – it’s out there, and must be dealt with.
Third, recognize you can’t fight today’s battles with yesterday’s weapons. There are many more media channels to consider and some did not exist a year ago. Make sure there is at least one tech-savvy communicator on the crisis team. That person must be able to give unvarnished insight and opinion to leadership based on a solid understanding of the latest techniques, tools and tactics, for reaching bloggers, web chatterers, and activists.
Finally, be quick and use technology to find an appropriate communications consultant or counselor with the experience, exposure, and expertise to enter the fray.