Accentuate the Positive, 3.0

You can buy a paper for fifty cents… but buying the content will cost you a whole lot more.

It appears now that part of Richard Scrushy’s PR campaign has surfaced. While his unspoken strategy was well-documented and transparent, what wasn’t so well-known was the people on the payroll:

Audry Lewis, the author of those stories in The Birmingham Times, the city’s oldest black-owned paper, now says she was secretly working on behalf of Scrushy, who she says paid her $11,000 through a public relations firm and typically read her articles before publication.

Documents obtained by The Associated Press show The Lewis Group wrote a $5,000 check to Audry Lewis on April 29, 2005 — the day Scrushy hired the company. The head of the company, Times founder Jesse J. Lewis Sr., is not related to Audry Lewis.

The firm wrote another $5,000 check that day to the Rev. Herman Henderson, who employs Audry Lewis at his Believers Temple Church and was among the black preachers supporting Scrushy who were present in the courtroom throughout.

Audry Lewis and Henderson now say Scrushy owes them $150,000 for the newspaper stories and other public relations work, including getting black pastors to attend the trial in a bid to sway the mostly black jury.

Scrushy is denying personal knowledge, and the prosecutors say this doesn’t warrant action. After all, while it may be unethical, it isn’t illegal — and they are satisfied that the jury wasn’t swayed by news coverage anyway. Reporter Jay Reeves described Scrushy’s reaction to the news about the news about the news:

In an e-mail response to questions from the AP, Scrushy denied authorizing payments to Henderson or Audry Lewis for any work on his behalf.

Scrushy said he “hit the ceiling” when he learned that the PR firm had paid Henderson but added that he had considered Audry Lewis to be “a nice Christian woman that thought we had been treated badly and she wanted to help.”

Now he said he knows they are both “about the bucks.”

Thoughts, people?

One would certainly hope that Richard Scrushy is truly following his heart.

If not, he is certainly following his public relations rehab prescription to the letter:

The Anniston-Calhoun chapter of the Southern Christian Leadership Conference lists “Minister/Evangelist Richard Scrushy” as special guest speaker at its 4 p.m. MLK program. The church’s pastor, Rev. N.Q. Reynolds, is the group’s president.

Scrushy will be accompanied by the Trinity Broadcasting Network, which is filming a documentary on Scrushy and his faith.

His spokesman, Charlie Russell, said Scrushy will speak on the topic “Creation vs. Evolution” and “how God moves man to speak God’s word and make it reality.”

Maybe God moves man to speak by humbling him before federal judges, and stripping him of his worldly desires.

I’ll say this… I certainly hope and pray at this point that Richard and Leslie are sincere about their faith. Because if they aren’t, keeping up an act for public appearance’s sake is its own hell. This is the equivalent of O.J. running around with a magnifying glass and a sidekick, actually looking for the “real killer.”

Hat tip again to Wade, for reading the paper more thoroughly than I do.

I hereby apologize for setting in motion the chain of events that got Paul Finebaum sued.

(Thanks Wade, for bringing this to my attention.)

We’ve documented Richard Scrushy’s legal battles — not so much for the courtroom fireworks but instead looking at his stated goal: repairing his civic and corporate reputation. Having won an acquittal from a jury in his HealthSouth fraud trial, the founder and CEO has been keeping fairly low on the second part of Operation Renewal. For the most part, he’s even heeded the advice I laid out months ago.

Now, he has filed suit against both the Birmingham News and radio talk-show host Paul Finebaum, for separate statements and allegations he feels are false and damaging.

BIRMINGHAM, Ala. (AP) — Libel suits filed by former HealthSouth CEO Richard Scrushy accuse The Birmingham News and Alabama radio personality Paul Finebaum of defaming him in reports or commentary about his relationship with a black church that he joined.

Scrushy’s wife, Leslie, is a plaintiff with her husband in the suit against Finebaum.

In both suits, Scrushy, who is white, accuses the defendants of unfairly portraying his decision in 2003 to leave his longtime church in Vestavia Hills and join the Guiding Light Church, a predominantly black church in Birmingham. Scrushy changed churches while under criminal investigation.

A November 2003 story in the News quoted a legal expert as saying that by changing churches, Scrushy was “laying the groundwork for endearing himself to African-American jurors.”

The suit claims the statement was libelous because it “made Scrushy sound like a devious hypocrite and heathen.” McPhillips said Scrushy changed churches as a result of his “own faith walk with the Lord.”

The Scrushys’ suit against Finebaum, who also is a sports columnist for the Mobile Register, cites a radio show in which Finebaum and his callers discussed who might play Leslie Scrushy in a movie about the couple.

“Who is the fakest actress in Hollywood? I mean the one with the fakest smile — that would be Mrs. Scrushy, wouldn’t it?” Finebaum said during a radio show in February.

According to the lawsuit, Finebaum “publicly described Mrs. Scrushy as plastic, as a gold digger, as a fake, as a phony, and as an air head.”

Three years ago, when the SEC was trying to clamp down on Scrushy’s assets, I was a regular contributor to Finebaum’s show. During a long segment on a slow news day, Paul asked me how the reporters stayed awake with little to do. I told him how we were already casting the Scrushy movie, and gave a few examples. (Andy Garcia as Richard Scrushy, Courtney Cox as Lesley, Samuel Jackson as Donald Watkins…)

Who would have thought it would come to this?

More signs that Media Relations people need to update the old models…

…with a tip of the hat to Corante‘s ‘Rebuilding Media‘.

First, a great media shift is already underway. 2005 saw the end of more than 2,000 newspaper jobs in the United States (including several folks down the street at the Birmingham Post-Herald.)

Combine that with the recent announcement that the Pulitzer committee is now accepting online content submissions, and the new president of the Society of Professional Journalists teaches online media at the University of Florida.

When the dudes with inky hands are filling out job applications, and the internet dudes are running the guild, and the dudes who hand out the hardware are changing the rules… maybe it’s time to take a hint.

B.L. Ochman’s mantra: the traditional press release is dead. It won’t happen tomorrow, but the “traditional press” is slowly heading that same direction. If you’re still promoting yourself the same way you did five years ago, you might still be okay. If you’re not looking for new ways to engage your current and future customers, you’re making a big mistake.

I could write a book.

I probably will.

I can’t wait for the chance to start thinking about some of the PR lessons I’ve culled along the way with Katrina.

Bottom line — we’ve stayed a step ahead, managed public/client expectations, and steered clear of negative publicity through good monitoring, good relationships, and good service.

Peace.

And support the American Red Cross.

I am tiring of 16-hour days with my former allies in the media, but they are eager to help me tell a great Red Cross story so I can’t complain.

When I get a moment to reflect on what I’ve learned (including a lesson about ambush interviews) I’ll post. (Someone ask me about our innovative use of e-mail?)

Howsabout a word of encouragement I can pass along to the Red Cross volunteers?

Blogging is going to get slowed down for a little while, as I prepare for a tour of duty with the United Way as a “loaned executive.” That’s basically where your company decides you’re valuable enough to help raise money, but expendable enough to do without.

There are some exciting things on the horizon, however. Seminars and personal coaching is beginning to pick back up, and there are a couple of organizations out there waiting on proposals to move forward. I’m also working on getting some of this seminar material on tape.

A lot of the information I provide to my consulting clients works within the small business environment as well. Yet these are the same businesses that don’t have the resource or budget to bring me in for a large presentation.

I’m working with some pretty heady people on a format that will be easy to follow, engage the listener, and be more cost effective for those clients “in between.” I’ll be announcing more about those products as we get closer to rolling them out.

With that in mind, I’d like a bit of feedback from you. What sorts of solutions are you seeking when it comes to better media relations and interviewing? What are the biggest pitfalls in your interoffice communication? How much would you benefit from being able to better tell “your story?”

Your input and encouragement are most welcome…

Ike.

In my “previous life” on television, my last beat was education.

Birmingham’s City School System had an annual problem with students who waited until after Labor Day to come to classes. It was a cultural thing here, and a lot of parents needed re-educated about why missing three weeks of school is a bad thing.

Once the system started having severe financial problems, it became dire. The state allocates funds based on average enrollment for the first 40 days of the school year. If a sizable chunk of the student body isn’t around, the money goes away. Yikes!

To combat the problem, Birmingham instituted an initiative called (I’m not making this up) “Just Show Up“.

Talk about your inspirational messages! It ranks right up there (down there) with “Delta: We Get You There!” (late, sans luggage, and hungry… but THERE.)

Needless to say, the program caught a lot of heat for sending the wrong message to kids. After all, we don’t want them just showing up. We want them learning things, and becoming better future citizens. The project was already being slammed as a dismal failure before it was halfway through.

At the halfway point of the 40-day census period, I asked for the enrollment figures from that year-to-date compared to the previous year. Based on my calculations (ones which the schools lacked either the ability or the creativity to figure), Birmingham’s Board of Education “saved” more than $6,000,000 that would have been lost had the students “shown up” along past patterns.

“Just Show Up” just plain worked, in terms of getting the word out and getting butts in seats. But it still wasn’t working as a positive message once the morning bell rang.

This year, the same program has a new title and a new theme: “Going to the Head of the Class.”

Dear Mr. Scrushy:

Congratulations on beating the rap in your $2.7-billion accounting fraud trial. That is no mean feat.

However, there are a lot of people who are coming to terms with your acquittal, not ready to attach “innocence” to your name. Just ask Michael Jackson, who beat his charges, but was labelled as a “probable pedophile” by one of the twelve who set him free.

So, here are some things I recommend you do to repair your public image:

1) Be Gracious. Avoid speaking ill of anyone who wished you the worst. Keep the focus on you and your family. And take a vacation.

2) Don’t storm the citadel at HealthSouth. Yes, it’s your baby. Yes, as far as the law is concerned, you’ve been vindicated and have every right to reclaim your office. Don’t. They will make your return ugly. Express your relief that HealthSouth is on better financial footing. You can go home again, but don’t sour your public persona by running back inside today. That would look too greedy.

3) Do not cancel your “Morning Viewpoint” show. Too many people saw this show as a transparent ploy to recast your image. Prove them wrong.

4) Re-invest in the community. Yeah, a lot of organizations were quick to pull your name off those schools and buildings and streets and libraries that carried your name. That’s not what you need to re-approach. Let your next wave of philanthropy be quiet — let word of mouth carry the day. As long as you don’t appear to be “buying” good will, you’ll succeed. You lost a lot of people at once, you need to get them back one at a time.

As I write this, you are already putting some of this advice to use. I heard you say something to the effect of “We give all the glory to God, who gave me and my wife the strength to endure this torture…” It’s not enough to say the right things… you’ve got to live them over time. Just use the same discipline you did in the pre-trial phase.

Just be content to re-cast a new legacy. Leave the old one behind. There was too much baggage there anyway.

Trying to be fair, your pal…

Ike.

(p.s. — some of my friends reading this may have other advice for you too. They’ll add it to the comments section.)

Let the PR punditry begin.

The corporate fraud trial of HealthSouth founder Richard Scrushy is over. Verdict at 11:30 Central.

I’ve said before that he has to win in court, and in the court of public opinion.

We’ll see if he beats the first to have a chance at the second.

To save his reputation, ousted HealthSouth founder Richard Scrushy has to win in court twice — once in a court of law, and the other in a court of public opinion. It’s not enough to earn a mistrial or a hung jury. Getting off on a technicality won’t restore his luster.

Earlier this week, I documented the extent of his public relations campaign. In some respects, it’s all the old messages but done through alternate media.

The first part of that battle is leaning his way. Jurors have indicated they are deadlocked on the key charge of conspiracy. That bodes well, as it tends to hang doubt on all of the rest of the charges that follow. If you can’t prove he was part of the creation of the scheme, it’s hard to prove “what he knew and when he knew it.”

This blog is about media relations, and how shaping public opinion (through positive positioning) can help you. It’s also about how neglecting to defend your image can backfire.

So, why have I intentionally avoided the elephant in the room? My own backyard, even?

HealthSouth founder and CEO Richard Scrushy was on trial for his knowledge of a $2,700,000,000.00 (billion) accounting fraud. Over a number of years, HealthSouth fudged the numbers to meet Wall Street expectations. Fifteen former officers (including five CFOs) have reached plea agreements with the feds, in exchange for their cooperation against Scrushy.

(I will say that unlike the Enron’s and the Tyco’s of the corporate fraud world, HealthSouth was actually a profitable company delivering tangible service. Just not nearly as profitable as most were led to believe.)

The jury is now in its fourth day of deliberations, having to sort through 55 days of testimony and 6,000,000 documents. So again… why have I held off?

The Scrushy indictments and SEC hearings were among the last big stories I covered in my previous life as a journalist. That $2.7-billion figure came out of my addition and reporting. Needless to say, I know a heck of a lot about what prosecutors were up to, as they fought to freeze Scrushy’s assets. With my new job, I didn’t get the chance to directly see or hear a lot about what the defense was up to in the legal realm. But it’s been interesting to see what’s been happening on the public relations front.

I’ve maintained all along that Scrushy faces a monumental task: winning his freedom while keeping his reputation intact. He always had a corporate swagger of control, and was known for the degree to which he micro-managed certain aspects of HealthSouth. Richard Scrushy is a proud man, and intensely proud of the company he dreamed and established from nothing.

It takes a lot of moxie and ego to bring all of that together — and those are exactly the sorts of things he had to let go of during the trial. How can one maintain that reputation, when the defense amounts to a lot of “I didn’t know” and “I guess I’m not a great judge of character to have had such crooks in my trust.”

The Scrushy saga has been the elephant in the room — and now that it’s in the hands of the jury, I can feel more comfortable as an ex-journalist to comment. And this particular missive has to do with Scrushy’s playing of the race card. (I know what you’re thinking… what’s a white billionaire know about being black?) Throughout this ordeal, Scrushy has positioned himself as a simple man who grew up poor on the wrong side of the tracks in Selma, Alabama. A high-school dropout with no formal education, he made his way into the medical world as a respiratory therapist, married young with kids he could barely feed.

His attorneys have equated this to a civil rights case. Even now, you can’t find Scrushy walking to or from the courthouse without an entourage of black attorneys, pastors, and supporters. Some think the display a little transparent, and will not affect the jury (split 6-6 black and white.) Some point to the timing of Scrushy’s relationship with those inner city pastors, and a $1,000,000 gift he gave one influential congregation. Some even point to the executives Scrushy surrounded himself with, none of whom were black.

Richard Scrushy has spent a lot of time in and out of the courthouse on reputation managment. He and his wife Leslie did a religious talk show for more than a year, he had a website to refute the bias and false claims he saw in the media. From a trial standpoint, he bluffed jurors and reporters alike into believing he was prepped and ready to testify on his own behalf — which he ultimately did not do. (I for one was not fooled, and I have witnesses to back that up.)

The prosecution’s strategy was to play against Scrushy’s need to rehabilitate his public image. Play his own ego against himself. It’s not easy to win simultaneously in Federal court and the court of public opinion. We’ll see how it works out.