Podcast Summary

Podcast: LSE: Public Lectures and Events
Episode: Dark Art – The Changing Face of Public Relations
Date: October 15, 2013
Speaker: Tim Burt (Stockwell Communications, former Financial Times journalist)
Host: LSE Film and Audio Team

Overview

This episode explores the evolution of public relations (PR) amid the ongoing digital revolution, examining the relationship between media, PR practitioners, and the ever-expanding reputation economy. Tim Burt, with a dual background in journalism and corporate PR, provides insider perspectives on these transformations, offering practical insights into managing reputation risk in a rapidly changing information landscape.

Key Discussion Points and Insights

1. The "Dark Arts" and the Reputation Economy

• Definition: "Dark arts" is a pejorative term for PR, implying hidden manipulation. Burt reframes PR as managing "the economy of reputation" in an age where information flow can make or break careers and companies.

  • “If you are in any way engaging in social media or any form of information flow which has a professional impact... you’re part of the reputation economy.” (03:15)

• Above and Below the Line:

  • Above the line: Journalism—reporting and editorial.
  • Below the line: PR/advisory—shaping corporate narratives, often out of the public eye.
  • “As a journalist… once you’re on the below-the-line communications world… you only saw 20% of the real story.” (07:47)

2. The Evolution of Information Control

• Historical Analogy: The printing press democratized information; so too does today's digital revolution.

• Edward Bernays: Father of PR, applied propaganda and psychoanalysis (from his uncle, Freud) principles to corporate communication.

  • “He published this book called Propaganda… he started to deal with three particular industries… used the tools of propaganda to change the reputations of those industries.” (13:25)

• Push vs. Pull Media:

  • Push (Old Model): Editors/journalists controlled information flow—consumers received what was chosen for them.
  • Pull (Digital Age): Audiences choose what to consume; sources are manifold (blogs, social media, citizen journalism).
  • “The pipeline has been replaced by the sprinkler. And it’s the end of command and control.” (17:00)

3. The Crisis of Trust and Information Overload

• Information Explosion:

  • IBM projects "40 zettabytes" of global information—a near incomprehensible volume.
  • “5 exabytes is equivalent to the whole Library of Congress or 40,000 years of television viewing.” (19:30)

• Knowledge Long, Wisdom Short:

  • Surface expertise is easy; true judgment and critical thinking are rare.
  • “People being knowledge long and wisdom short... the ability to transact is really difficult.” (21:05)

• Erosion of Media's Command:

  • Most journalists now start stories from social media. Verification standards have shifted.
  • “Almost half of all journalists are now writing stories on the basis of what’s in a blog. And 90%... are investigating stories based on social media.” (22:21)

• Rise of "Risk Journalism":

  • The drive to be first has eroded traditional checks and balances, increasing chances of error and damage to reputations.

4. The "Reputation Gap" and the Age of Anxiety

• Reputation Gap:

  • Since the financial crisis, corporate anxiety soared, while trust in media declined—a widening "reputation gap."
  • “With each new crisis... corporate anxiety has escalated, trust in the media has gone down. This is now the underpinning of what I call the reputation economy.” (29:00)

• Size of the Industry:

  • Reputation economy: ~$880 billion/year.
  • PR industry: $11 billion/year—a highly competitive, crowded field.
  • “The entire annual revenue of our industry is one third of one quarter of GE’s revenues.” (32:45)

5. Reputation Management in the Modern Era

• Crisis Examples:

  • Deepwater Horizon (BP): Corporate and communications missteps magnified by digital media. Poor initial response led to existential threats.

    • “The communications response to the problem made things worse rather than better... every CEO that we know had a fundamental question after BP, which was, how do I avoid being the next Tony Haywood?” (37:23)

  • Companies experience the “five stages of grief” following reputation crises: denial, anger, bargaining, depression, acceptance.

• Modes of PR Response:

  • Denial: Ignoring scrutiny.
  • Reputation Laundering: Especially in London by oligarchs or regimes with money but not transparency.
  • Narrative Building: Creating honest, proof-backed stories; serving as intermediary and "therapist"/"air-traffic controller" for clients.
  • “Not communicating is not an option in this new environment.” (48:30)

• Global Context:

  • Different media landscapes (e.g., the US vs. China) require bespoke strategies; self-censorship and aggression vary by territory.

6. Trust, Media Choices, and Big Data

• Trusted Titles vs. Volume:

  • Companies choose between impact (influential, trusted media) and reach (high-traffic aggregation).
  • Trust is quantified by the power to move markets or ripple through media cycles.

• Big Data as a New Challenge:

  • Four V’s: Volume, Velocity, Variety, Veracity.

  • PR must now triage massive flows of information and risk.

  • “We’re now more like air traffic controllers… sometimes we want to land stories, sometimes we want to keep them off the ground.” (59:10)

7. Best Practices and Success Measures

• Build "reputation credit" during calm periods—don’t wait for crisis.
• Distinguish between annoyances and true crises.
• Have rapid response tools; prioritize proof, clarity, and targeted engagement.
• Reputation is now the most valuable intangible asset, influencing share price, cost of capital, and premium positioning.
• “We are just part of trying to experiment with new guidance tools and reputational devices to help companies and individuals navigate this much more uncertain environment.” (01:04:39)

8. Looking Forward: Research and Societal Reputation

• The importance of building not just a financial brand, but a "society brand."
• LSE/Stockwell competition for best student research proposal on reputation and society.
  • “It’s no longer enough to have a strong financial brand. You have to have a good society brand… companies are all thinking to themselves, how do I build a society story which… builds a degree of reputation credit?” (01:05:30)

Notable Quotes and Memorable Moments

• "Crossing to the dark side. But in reality, I think it's like diving under the iceberg… you only saw 20% of the real story." — Tim Burt (07:47)

• "The information industry really exploded with the arrival of the printing press… but also opened up a new degree of command and control when it came to managing opinions." — Tim Burt (13:10)

• “The pipeline has been replaced by the sprinkler. And it’s the end of command and control when it comes to information.” — Tim Burt (17:00)

• "What we're seeing is a collision between media promiscuity and corporate celibacy." — Tim Burt (27:10)

• “You can’t react in the middle of a crisis to educate an audience about why you think you’re a good corporate citizen… when things go wrong, no one’s going to forgive you.” (35:10)

• “London… has been called the reputation launderette of the world.” (51:30)

Important Timestamps

• 01:55: Introduction of the “dark arts” and reputation economy
• 07:47: Transition from journalism to PR—"under the iceberg" analogy
• 13:25: Edward Bernays and the origins of corporate PR
• 17:00: Shift from "push" to "pull" media; end of command and control
• 22:21: Journalists using social media as primary sources
• 29:00: The "reputation gap" and the state of trust/anxiety post-2008
• 37:23: Deepwater Horizon as a defining corporate crisis
• 48:30: The necessity of proactive communication; responses to scrutiny
• 51:30: Reputation laundering and the unique regulatory environment in London
• 59:10: The air-traffic controller metaphor for modern PR
• 01:04:39: On experimentation and adapting to uncertainty in reputation management
• 01:05:30: The shift towards "society brand" and LSE/Stockwell research initiative

Tone and Language

Tim Burt’s presentation is insightful, engaging, and pragmatic—combining anecdote, metaphor (iceberg, pipelines, sprinklers, air traffic control), and direct guidance. He maintains a conversational and occasionally wry tone, warning against complacency and stressing adaptation amid rapid change.

Summary Takeaway

Tim Burt argues that as digital technology fragments media control, reputation management becomes both riskier and more critical. Successful organizations must proactively cultivate reputation credit, navigate a world where information is both democratized and dangerously fast-moving, and prepare not just for financial scrutiny but for social accountability. The podcast concludes by inviting student involvement in innovative research on this vital, evolving topic.