A Look Back at 15 Years of Campaigns & Crises

Spring / Summer 2015
Issue 3

Navigator’s folio of ideas, insights and new ways of thinking on the occasion of our 15th anniversary.

SPRING EDITOR:
Deirdre McMurdy
  

CONTRIBUTING EDITORS: 
Jeff Ballingall
Randy Dawson
Andrew Galloro
Chris Kelly
Carrie Kormos
John Ratchford
Will Stewart
Laura Warner
Jaime Watt
David Woolley
  

DESIGNERS:
Justin Brazeau
Janine Pierre
Adam Zabunyan

SPECIAL THANKS:
John Baird
Hope Kamin
Rick Mercer 
 

Navigator Limited
24/7 Crisis Line
1.877.431.9721

www.navltd.com

Editor’s Note

Navigator celebrates
15 years

In uncertain times and over the long haul, vision and values set companies apart

By Jaime Watt Executive Chairman, Navigator

Very much like having a child, starting a business is a tremendous leap of faith. Just as it is with raising a child, however resolved you may be to doing things differently than the preceding generation, the need to make big decisions in imperfect circumstances invariably tests the best intentions.

When Navigator came into the world 15 years ago, it had two distinct advantages: clear vision and strong values. As the company matured, everything was shaped by those two foundational elements.

Our vision for Navigator was firmly rooted in politics and political campaigning.

Communication in the political context is unique. It must be highly strategic. It must be able to withstand withering attack while remaining sufficiently flexible to allow rapid and effective response to any number of unforeseen variables.

It’s a style of communication that is particularly suited to companies facing high-stakes issues or crises.

That ability to balance a tight focus on longer-term outcomes with the need to recalibrate short-term tactics requires vigilance, sensitivity and discipline. The reality is that few corporate teams are equipped with the skills or tools to execute at that level — especially in the midst of a crisis.

“The nature of both crises and campaigns has changed a great deal in the 15 years since Navigator was born.”

The nature of both crises and campaigns has changed a great deal in the 15 years since Navigator was born.

Technology has escalated speed and scale for all issues. Thanks to social media, bad news has never travelled faster or farther.

That said, social media also provide at least as many opportunities as challenges. For those in campaign mode, the ability to connect directly with stakeholders and to build virtual communities with shared views can be powerful.

Still, the most powerful tool of all — in either a political or corporate campaign — is having values underpin every action.

Navigator’s values have not changed since its inception. Those values have enabled us to grow and to expand nationally, while maintaining the high standards, strategic acumen and tightly aligned teamwork that defined our initial success.

Our values are simple: hard work, respect, discretion, honesty, strategic coherence and giving back to the community. By adhering to these principles over 15 years, we’ve been able to attract — and keep — the right people. And the right clients.

From inception to (almost) adulthood, we could not be prouder of what Navigator has become.

Jaime Watt Executive Chairman, Navigator

Data Breach 

Sleepless in the C-Suite

What keeps Canada’s CEOs up at night? Concern about data breaches and consumers’ intolerance for the consequences of cyberattacks

By Chris Kelly Principal, Navigator

When CEOs around the world concede that cyber threats and data security are the key issues that keep them up at night, all businesses and organizations that hold data about clients and customers should take notice.1

To better understand consumers’ perspectives on security and privacy of personal information, Navigator undertook the first in-depth opinion survey in Canada on the public’s awareness and assessments of data compromises, losses and breaches. The research study explored Canadians’ expectations about how the personal data they have entrusted to retailers, financial institutions, government agencies and technology providers is protected.

The findings reveal that Canadians have little tolerance for security measures that don’t thwart cyberattacks and they have only limited sympathy for organizations that have fallen victim to cybercriminals. Canadians want much stricter laws and regulations to protect consumers.

In a typically Canadian way, respondents balanced their tough assessments with a willingness to assume some personal responsibility for safeguarding their own information and cyber trail. Further, they were prepared to extend at least some latitude to organizations that are hacked, recognizing that in a world of rapidly evolving technologies and increasing online services and capabilities, it may be impossible to fully protect against sophisticated, die-hard cybercriminals.

But, none of these concessions fully mitigate a willingness to lay blame for data breaches squarely with the organizations that are hacked.

The survey found that 70% of Canadians were familiar with data breaches and could easily and accurately identify specific North American retailers and Canadian government agencies that have been subject to cyberattacks. Seventy-nine per cent said they were concerned about data breaches involving personal information, and 38% said they were “very concerned.” The findings also reveal that the level of anxiety about data breaches is growing, with 74% of respondents reporting that they were more worried about potential breaches today, even as they become more familiar with cyberattacks.

Canadian consumers firmly rejected the notion that hacking is the “new normal.” When probed specifically about cyberattacks at retail organizations, 69% believed that large chains were failing to do enough to prevent data breaches. Consumers strongly suspected that companies had been lax in adopting appropriate security measures (87% agreed) or had been unwilling to pay the maintenance and upgrading costs (79% agreed) for systems that effectively protect transaction data and information. They demanded rigorous efforts to improve the security of payment and online systems.

Survey participants were clear about whom they held responsible for retail security breaches: after conceding that the criminal hackers were mostly to blame, 65% of those surveyed pointed to the retailers themselves as being responsible for the breach. Relatively few survey respondents held banks, the payment system or credit card issuers as responsible for attacks that compromised the transaction process or resulted in criminals gaining access to personal credit or debit card information.

“The high level of public anxiety about security, confidentiality and privacy of personal information combined with the pervasive concern about cyberattacks and data breaches demands a regulatory or legislative response.”

As concerned as the public is about retail security breaches, survey respondents were even more worried about the security provided by organizations that hold more detailed and sensitive personal information about citizens. They were most concerned about cyberattacks against such entities as the Canada Revenue Agency, Canadian banks and credit unions, credit card issuers and debit service providers. At the same time, survey respondents registered notable confidence in the ability of both banks (85%) and the government (73%) to protect the confidentiality and security of the data they hold, including during online transactions.

These large organizations can take comfort in knowing that the public has expressed such confidence, but at the same time that confidence would likely take a dramatic hit should a breach occur.

The high level of public anxiety about security, confidentiality and privacy of personal information combined with the pervasive concern about cyberattacks and data breaches demands a regulatory or legislative response.

Three quarters of survey respondents agreed that much tougher laws and regulations are required to better protect consumers. Almost two-thirds (64%) said that data breaches would not be effectively dealt with until government and regulators imposed much stricter rules around the security of personal and customer information that companies and organizations hold.

 Clearly, Canadians expect that issues around data security and privacy of information will receive government attention. Given the strength of opinion and concern, the findings suggest that Canadians view issues of security as a priority.

In a federal election year, it will be interesting to see if cyber security receives the attention of the federal political parties and emerges as a key component of their policy platforms.

The survey also reveals that Canadians want organizations that experience data breaches to immediately come clean about the security threat and the potential implications for the privacy of personal information. This stems from having witnessed less than forthcoming responses from some organizations in recent years. Consumers are demanding immediate disclosure, they expect to be contacted quickly about potential compromises of their personal information, and they want the incident to be reported right away to the appropriate government regulator. Our findings indicate Canadians are likely in synch with the U.S. government’s push for legislation that would require that any breach that involves citizens’ information be revealed publicly.

The findings of Navigator’s research study reveal that CEOs at businesses and organizations that hold sensitive information have good reason for sleeping poorly; the public has an extremely limited tolerance for breaches of personal information or breaches that could affect personal transactions and finances. CEOs can add that to their list of cyber worries that includes the security of their systems, the implications of data compromises and the consequences of serious potential reputation damage or liability.

At a time when IT commentators foresee a breach of the “cloud” as inevitable, and as consumers are increasingly worried about the security of their transactions and information, action from government, business and consumers is clearly — and urgently — required.

1pwc, 18th Annual Global CEO Survey: The Marketplace without Boundaries, 2015. Technology findings www.pwc.com/ceosurvey

Data Breach 

The Ratchford Files:
Getting in Front of Data Breach Issues

Canadian consumers are worried about data breaches, Navigator’s survey reveals, and they believe it’s time for government to act

By John Ratchford Principal & General Counsel, Navigator

John Ratchford is a Principal and General Counsel at Navigator. He has been a practising lawyer for over 19 years.

A problem that began in the arcane world of online gaming back in 2011 has become one of the most challenging corporate issues of 2015.

In April 2011, hackers accessed the names, addresses and credit card data of 77 million users of the Sony PlayStation Network. Suddenly, the public became aware of the consequences of data breaches. Initially, Sony offered an apology and some free games to those affected. It ended up settling an international class action suit for about $20 million.

Most experts agree that the PlayStation breach was relatively minor in the context of what has happened since.

The protection of personal information has quickly emerged as one of the most complex legal issues and top-of-mind crises that companies face, whether the threat is hackers or human error. The situation is exacerbated by the multinational networks of partners, suppliers, vendors, customers and employees who have direct and indirect access to that information.

Under current privacy law, those collecting personal data are prohibited from distributing it without obtaining prior consent. The number and the scale of data breaches, however, may portend a shift towards much more explicit obligations to keep such data secure, and penalties for failing to do so.

Already, the pressure on governments to take action is on the rise and legislation is before Parliament in the form of Bill S-4, the Digital Privacy Act.

Navigator’s proprietary research (see previous article) indicates a growing intolerance for the status quo. An overwhelming number of Canadians indicate that much tougher laws and regulations are required to better protect consumers. Almost as many believe that data breaches will not be effectively dealt with until government and regulators impose much stricter policies and practices.

“In the near term it is reasonable to conclude that the political traction of this issue is likely to have a material impact on the purview of corporate general counsel.”

In the near term, it is reasonable to conclude that the political traction of this issue is likely to have a material impact on the purview of corporate general counsel.

It is the GC’s role to identify laws that apply to their employers’ operations and to ensure there is a rigorous compliance process in place. That means increased focus on internal information technology systems, as well as those of an array of business partners.

The search for compliance gaps will be increasingly difficult, given the global nature of information acquisition, use and storage. For example, Canada’s anti- spam laws place restrictions on Canadian companies but do not affect those who conduct business outside the country.

Another consideration is how the rules in key jurisdictions affect practices beyond their scope. In the case of the U.S. Sarbanes-Oxley Act of 2002 (also known as the Public Accounting Reform and Investor Protection Act and the Corporate and Auditing Accountability and Responsibility Act), new reporting requirements in the U.S. reverberated globally.

However these emerging trends play out, one thing is already certain: For companies of all sizes, there is an urgent need to plan for data breach crises and their steep reputational — and financial — costs in competitive markets. The widespread public expectation that business leaders will be fully prepared to contend with data breaches and their consequences is already well entrenched, according to Navigator’s research.

Of course, successfully managing those expectations is just one part of the data breach challenge.

Newsmaker

In conversation with…
John Baird

After a career that has spanned provincial and federal politics, minority and majority governments, and an impressive range of cabinet portfolios, the Honourable John Baird surprised many Canadians — and maybe even the Prime Minister — when he resigned in early February. Navigator Managing Principal Will Stewart sat down for a conversation with his former boss — and long-time friend

By Will Stewart Managing Principal, Navigator

You’ve just retired as Minister of Foreign Affairs. What got you interested in politics in the first place?
  
I think I was always interested in watching the news or reading the paper, but in Grade 7 I had a teacher who was very political and ran for the nomination when I was in Grade 8. That was the beginning of my interest. I became even more interested in Grade 9.
       
Then you went off to university. I understand you were active in politics around a Liberal campaign by former Ontario premier David Peterson?
  
Yes, two friends and I went to protest David Peterson, who was campaigning for the local Liberal candidate. This candidate was running against a senior cabinet minister who wasn’t going anywhere. His name was Peter Milliken. We were handing out copies of a Globe and Mail editorial basically going after the Liberals for saying that social programs would disappear under free trade. Peterson was appearing at a public mall so we thought it was reasonable to approach him. I tried to approach him to question him about this, and the OPP took me away.
  
Was that your first real campaign?
   
Not really, I had already worked on campaigns and was president of the youth wing of the [Conservative] party. 
 
You first ran for office when you were 25 in Nepean. The first time with your name on the sign. What led you to that?   
  
I think I wanted to run provincially since I was about 14. The first time I actually thought about running was for about three hours in the 1990 election, but I didn’t think I could win so I thought maybe I had better finish university. That being said, I had always wanted to run provincially in that riding [Nepean] and I was uncomfortable with my ambition.

So, I resigned from the executive in the summer of 1994 and started a run for the nomination, sold a lot of memberships, and I eventually got the nomination.
  
That was a contested nomination as well, was it not?
    
Well, there were two other people who were going to run. In the end, they didn’t register. I sold 535 memberships, which was probably, at that point in my life, the hardest thing I’d ever done. I was still quite young and green.
  
Campaigns have changed in a number of ways since 1995. In your view, what have been the most significant changes?
      
We didn’t even have a computer in my headquarters when I first ran. We had no social media. Without the Internet, we had to physically send around 4,000 videotapes because that’s how those things were done. And that was considered cutting edge. 
  
How has technology changed campaigns?
        
We certainly spend a lot more money now. We spend more time and effort on social media than we ever did on advertising in the Nepean newspaper. It’s much more professional, too. My first campaign was entirely staffed by volunteers where, with my last campaign, we even paid someone to ID the voters’ list before the election was called. So it’s much more professionalized now, even at that riding level.
    
The volunteers who came in and manned the phones and stuffed the envelopes for every campaign since Diefenbaker, are they still around?
         
A lot of the people who volunteered 20 years ago when I started just aren’t around, let alone active in the party anymore. That, and the fact you just don’t use envelopes anymore — other than for fundraising letters. Instead, you correspond with emails and social media.
  
How has technology changed the relationship between politicians and their constituents?
          
Well, you can get in touch with a lot more people, a lot quicker and at a much lower cost. At the same time, though, it’s not as personal as getting a letter.
  
What do you consider to be your biggest successes at the provincial political level, before you made the switch to federal politics?       
     
Learning the ropes. I grew a lot. I learned how to set priorities and get things done. When you make mistakes as a provincial parliamentary assistant, fewer people see it — certainly as compared to being a cabinet minister in Ottawa. There’s a smaller press gallery. There’s not as much focus, not as much attention.  

The Little Red Wagon was used to mark the 2000 launch of the Ontario’s Promise program when John Baird was provincial Minister of Children. It brought corporations, organizations, foundations and non-profit agencies together to deliver an agenda for youth development.

How did your time as a backbencher in Ontario shape your future in politics?
       
I really hated being a backbencher in Opposition. Yes, you’re obviously in the House and representing your constituents. But you’re an Opposition Deputy House Leader — which I did not like. I was getting up every day to complain and criticize, rather than getting things done. Honestly, I did not find it fulfilling. When I was a parliamentary assistant in the first term you could still at least be positive and focused and get a lot of things done for your riding.
  
What are your favourite memories as a cabinet minister federally or provincially?
         
Federally, it was the opportunity to see and experience things that few other people have done. That ranges from walking through a slum in Mumbai, looking at a development project that Canada is supporting, or visiting a Syria refugee camp in Jordan. Ultimately, you saw people who became human giants, whether it was Malala Yousafzai or so many others who have shown remarkable and extraordinary courage.
  
You were one of the first Western leaders to visit Libya during the revolution there. What was it like in the immediate aftermath?
           
It was pretty surreal because Colonel Gaddafi was still alive, but he had fled. There were all sorts of people who lived across the street and who had never been inside the huge compound of buildings. Seeing his home, which U.S. President Ronald Regan had bombed in the 1980s was rather extraordinary, to say the least.
    
What about the situation in Ukraine? You were in Independence Square shortly after the fighting had stopped.
           
I was there before and after it began. Before, it was really extraordinary because I had government security in the middle of an anti-government protest. There were tens of thousands of people in what was, really, a revolution. There were people burning wood in oil drums to keep warm. It was an extraordinary time.
    
What do you think would most surprise people about political life? What are a few of the most common misperceptions about political life?
           
Well, when you’re in government you have to make dozens of decisions every single day. In Opposition, you don’t have to make decisions and you can just pick and choose what issues you will focus upon. I’ll make hundreds of decisions in a week and, just like anyone else, there’ll be times when I don’t make the right call. But if you obsess over every decision you never get anything done.
     
You get comfortable with making the wrong decision?
            
While I prefer to collect all the information and take a reasonable amount of time to reflect, it is not feasible to take months to make every decision. The entire government would come to a complete halt. I’d rather people criticize me for what I do than for not acting.
      
What would you say was amongst the greatest challenges you faced in your career?
             
The scrutiny.      
 
In your everyday life? You mean grocery shopping and being recognized?
               
It’s funny. When you’re wearing a suit and tie people come up to you, recognize you, talk to you. If you’re in jeans and a golf shirt and a baseball cap, people tend to leave you alone.
  
Anything you’d change about your career, anything you’d do differently?
                
When you make hundreds of decisions every week there are obviously decisions that, if you had more information, as a Monday morning quarterback, you’d do differently. I’ve been very fortunate and (hopefully) wise on timing. Running with Mike Harris and supporting Mike Harris in the 1995 election was a good call. Working with and aligning myself with Jim Flaherty, while politically unsuccessful in the short term, I think was the right move. Then getting behind Stephen Harper and running federally, obviously that was a good call.
   
What are you most looking forward to in your new life?
                 
I’m keen to be successful, whether it be professionally, doing non-profit work or in my personal life. I’m keen to make a contribution in all areas. I’m keen to take on a new challenge. I think it’s better to go two years too early than two minutes late. Everyone has a different clock and some people do stay on too long.
    

Campaigns

Tales from
the Trails

Political campaigns have become more sophisticated with the advent of technology and its application. One constant, however, is the importance of the campaign veterans who have loved, lost, won and lived to fight another day. Navigator Managing Principal, Randy Dawson, is one of the most seasoned — and most successful — campaigners in Canada

By Randy Dawson Managing Principal, Navigator

I worked on my first political campaign in 1978. I was 18 years old, and the candidate, Rollie Cook, was 26. He was seeking the provincial Progressive Conservative nomination in the newly created riding of Edmonton Glengarry.

In those days, there were no computers, no email, no cellphones. People still opened their doors if you knocked. And they answered their telephones when they rang. Lists were typed out on paper. And hundreds of volunteers came together to do the work.

Even 15 years ago, email and cellphones were just starting to become more common. Some computers were used for rudimentary list management, but when it came to targeting voters, we manually searched through books of census data, picked up land-line phones and knocked on doors.

Since then, however, the pace of change in political campaigns has accelerated rapidly.

Technology is the most obvious driver of that change. It’s now used to target voters and to constantly refine campaign strategy using data that’s collected on an ongoing basis through social media and the use of specialty software.

The application of advanced technology has significantly diminished the reliance on volunteers — although their retreat was already underway. In general, Canadians are not only busier, but the volunteer base is spread more thinly because more sectors than ever rely on volunteers.

Replacing those volunteers is an emergent professional management caste, specializing in voter mobilization. While many of these political experts reside within party organizations, the ranks of third-party contractors is also growing — a trend that’s migrating from the U.S. to Canada.

These professionals have become essential because of their specialized skill set and also because fixed election dates have extended the length of campaign preparation time. Instead of six months of campaigning ahead of an election, it’s more typically a year. And that’s more than most civilian volunteers could handle.

Financing is another aspect of traditional campaigning that has radically changed. The move from large, single donations to multiple individual contributions is partly a function of technology. Certain programs allow parties to narrowly target contributors based on the resonance of specific issues with their personal interests and beliefs. Financing has also changed because of new rules and attitudes.

“We’ve gone from a 24-hour news cycle with CNN to a 24-second news cycle with Twitter. It’s not just the issue of speed trumping accuracy, but it makes it much more challenging to cover big, complex issues in a meaningful way.”

Even where corporations are still free to contribute to campaigns, some companies consider political donations an unacceptable use of shareholder capital. The direct appeal for financial support from individuals gained momentum in Canada with the emergence of the Reform Party movement in the 1990s. Reformers had no established network, no big backers, no institutional framework. They had to learn how to raise money directly from supporters — and how to find those supporters. It was an innovation born of necessity.

Another key difference in campaigns is the role of media. Where 15 years ago we worried about media concentration, now the issue is extreme fragmentation. It’s hard to know whom you’re talking to or dealing with when you try to communicate your message. Then there’s the issue of speed. We’ve gone from a 24-hour news cycle with CNN to a 24-second news cycle with Twitter. It’s not just the issue of speed trumping accuracy; it makes it much more challenging to cover big, complex issues in a meaningful way.

In the end, politics and campaigns haven’t fundamentally changed in 15 years. There’s still a bus, there’s still a plane, there’s still a war room — though now everything is monitored around the clock.

Furthermore, today — as it was 15 years ago or three thousand years ago in the days of Cicero — the best way to reach voters is through direct personal contact. We may be doing that in new ways, but the reality is that people want to engage. And campaigns are all about finding the best ways to do just that.

Of the many campaigns I’ve worked on over the years, I have to say my absolute favourite was Jim Prentice’s 2003 federal Tory leadership campaign. It was a real underdog endeavour and we had to slog hard, constituency by constituency, dollar by dollar.

That said, the calibre of the people who stepped up to participate, especially at the convention, was absolutely remarkable. It really was an A-team.

It was all clearly chronicled in the convention coverage: the suspense, the momentum, the tension. In the end, we lost. But it was all redeemed by the fun, the excitement and the electricity.

This campaign is also my favourite because of the issue at its heart. The whole focus was on uniting the Conservative Party and putting an end to all the fighting that had been going on for too long.

In my mind, Jim Prentice came the closest to articulating a vision for a united party. And I have never lost sight of how special — and how important — that process was. And the legacy the debate created.

Tools

Tools of
the Trade

Apps and software have re-defined the way political parties target their messages

By Jeff Ballingall Consultant, Navigator

Mastering social media has become critical for politicians and aspiring politicians: powerful tools like Facebook and Twitter provide new ways to directly reach, understand and motivate voters, while enhancing traditional means of contact.

The same tools and tactics have revolutionized the way campaign-style communications strategies can be executed by organizations seeking to engage stakeholders and win their support.

One of the most powerful of these new tools is NationBuilder.

Used by the Obama 2012 campaign and Idle No More organizers, it manages campaign websites, merging and tracking individuals across multiple platforms. It allows for contact and communication via text message, email and other social media. A matching capability also connects with an individual’s public data, including photographs, Twitter, Facebook and LinkedIn.

Access to such detailed information allows campaign managers to filter and target voters as never before. For example, NationBuilder can filter and email those who have signed a petition on a particular date, live in a particular area or taken political action. Not only that, it does so using language that is already familiar for having been used in previous communications. Such specific targeting allows campaigns to continually refine their audience, language and tactics for optimum results as well as cost efficiency.

“In political or corporate campaigns, these technological tools give campaigns enhanced power to gather relevant data, build popular support, muster financial resources and incite action.”

From that point, user contact can be made with customized social media posts, petitions, surveys, donation requests or direct emails. The 2014 American Congressional mid-term campaigns had particular success in leveraging this insight for candidate door-knocking. Even before the resident opened the door, the person standing on their porch had the most resonant messages in hand.

In political or corporate campaigns, these technological tools give campaigns enhanced power to gather relevant data, build popular support, muster financial resources and incite action. It also eliminates the “middleman,” side-stepping mainstream media and directly influencing opinion and results.

When community-organizing tools like NationBuilder are combined with the insight gathered from the analytics available through Google, Facebook, Twitter and social media listening software, all campaigns can communicate more intelligently, measure performance, cultivate desired action and build awareness.

Feature

The Power of
Neuromarketing

How to show without telling in advertising

By Fred David

Reprinted with permission from Campaigns & Elections, August 18 2014. Featured artwork was not included in the original article.

Neuromarketing sounds big, bad and evil, but it’s really quite simple. Perhaps it’s best described as marketing to our subconscious.

Bud Light uses humor. That’s neuromarketing. Chevy trucks use visualization — “Like a rock.” That’s neuromarketing.

Imagine you’re hiking and you see something brown, thin, and long in your path. Instinctively you jump back before your conscious brain has had time to process whether the thing is a dangerous snake or a harmless stick. Your subconscious brain, the same brain that jerks your finger back off a hot skillet before you can process it as a danger, “overrode” your other sensations.

Marketing to that ultra-powerful subconscious brain is neuromarketing. How does such marketing relate to politics? Is it evil? Does it “cheat” or somehow trick the voter? No way. Another term for it might simply be “good advertising.”

The idea of neuromarketing is that the use of a base emotional appeal — love, fear, humor, anger — will be more effective than a factual appeal. It suggests that visuals are more readily accepted by the subconscious than words.

Is that new? Well, didn’t we hear as children that one picture is worth a thousand words? That’s neuromarketing.

While it might surprise some, we’re really not talking about a new concept in politics. Neuromarketing is a tactic that has been in use in some form for many cycles now, and my firm has applied the basic principles behind it on ad campaigns dating back more than a decade.

Let’s start with an example from 2004: We produced an ad for the reelection campaign of George W. Bush. There were zero spoken words in it. It showed a powerful static shot of a rock being pounded by ocean waves. The rock never moved, never wavered. After thirty seconds, a simple graphic with three words appeared, “Peace through strength.” The Bush campaign debated the approach, but never chose to use it. That one ad, though, was why the McCain presidential campaign said that they hired us to head their ad team four years later.

Gov. Arnold Schwarzenegger was up for reelection in California in 2006. It’s easy to forget that, when that campaign began, he was behind by double digits to the generic Democrat. The theme of the campaign was whether voters wanted to go back to the days of the previously recalled governor, Gray Davis, or to continue Schwarzenegger’s reforms.

“Neuromarketing is not magic. It’s not cheating. It’s simply marketing to people in a way that’s most effective. Use pictures. Use humor. Use comfort. Use the same emotions that marketers use each day to tell us about automobiles, beer and banks”.

Traditional marketing would have suggested that we use details, numbers, facts and figures to prove we were better off under the new governor. The use of neuromarketing, however, provided a more powerful way to message that backward- or-forward choice to voters. We simply ran all of our advertising visuals that referred to our opponent backward. Birds flew backward; cars drove backward; people walked backward.

Bob Garfield, the advertising critic from Advertising Age, wrote, “Between now and November, Schwarzenegger can get caught groping Miss Teen Fresno, the California Republican Party can make Barry Bonds its chairman and President Bush can declare war on Oregon. Arnold is still a lock.” That’s neuromarketing.

Sonny Perdue, a relatively unknown former Democrat, ran in 2002 as a Republican for governor of Georgia. He had two well-known primary opponents and an immensely popular and well-funded general election opponent in incumbent Gov. Roy Barnes. His message was seemingly simple, but unusual: the governor had become a monarch, autocratically ruling the state and ignoring the people. That would be tough to prove with facts and figures.

As a visual, though, it proved arresting. A giant rat named “King Roy,” as tall as Atlanta’s skyscrapers, was soon seen in a campaign film, rampaging through Georgia and doing as he wished. It caught fire. Sonny Perdue won the primary without a runoff and became a two-term governor of Georgia.

Use your brain. That’s Neuromarketing.

Fred Davis is chairman and founder of Strategic Perception Inc., a Republican media firm.

Rebrand

Anniversaries
& birthdays

Re-branding is a form of group therapy that every organization confronts as it evolves

By Carrie Kormos Managing Principal, Navigator 

In addition to being celebrated with cake, anniversaries and birthdays typically mark a time of reflection. A review of what has been. A reckoning of what is still ahead.

Coincident with its 15th anniversary, Navigator is moving from its rather elegant headquarters in an iconic heritage building to expanded premises in the heart of Toronto’s financial district.

That pending change in our physical space got us thinking about change in a broader context. Specifically, how could we better reflect Navigator’s growth in size, scope and influence in our corporate brand?

To be clear, the subsequent descent into the rabbit hole of logos, typefaces and templates is hardly unique to Navigator. It’s a process that all companies undertake at some point in their history: an attempt to visually represent a corporate identity that has evolved over time.

It’s much more than a question of cosmetic surgery — eliminating a few lines, tweaking a feature or two and presenting a smooth new face.

This is complex stuff. In fact, it’s close to being a form of corporate group therapy. After all, everyone has ideas about what matters most and how to best express the values and the essence of an organization.

The exercise is not made easier by the fact it also involves synthesizing all the bits of branding that have evolved in an ad hoc way. Those who have contributed the most to that end result are often the most reluctant to relinquish the hodgepodge of the past.

Aesthetics inform this process, of course. But there’s also an essential strategic significance. In the information age, branding and logos are imperative for resonant communication across a number of internal and external channels and platforms.

For Navigator, as for other companies, the greatest challenge lay in matching our look to our position line: “When You Can’t Afford To Lose.” From the outset, our guiding principle was to reflect that in our updated look.

Navigator will roll out its new look — and its new space — over the next few months. And on the occasion of our anniversary, we are renewed, refreshed, and always grateful for a remarkable 15 years.

Let us eat cake.

Elections

Shuffling the Deck

Canadians hold the cards in Election 2015. Have voter priorities changed since 2011?

By Andrew Galloro Senior Consultant, Navigator

Winston Churchill once declared that: “The best argument against democracy is a five- minute conversation with the average voter.”

It may be a snappy line, but these days politicians don’t have the luxury of disregarding anyone. The “average voter” is no longer a thing. Even within seemingly clear regional, demographic, ethnic and gender groups, there are myriad shades and variations.

That’s precisely why political parties spend such vast amounts of time and money trying to figure out what voters want — or think they want.

In an election year, each scrap of voter insight is critical. That’s all the more true given the extent to which technology allows parties and politicos to tweak every plank of every platform to optimize their appeal.

For that reason, ENsight — Navigator’s government relations sister company in Ottawa — has undertaken a comprehensive cross-country survey to get a sense of the issues that are top-of-mind in 2015. After all, it’s the best indicator of the policies that will shape the agenda for whichever party is elected.

With a fall election looming large, we’ve compared initial 2015 election survey results with the issues that resonated most as Canadians exited the polls in 2011. Here’s a first cut of the deck:

2011

JOBS, TAXES & THE
CANADIAN ECONOMY

The Harper government received a “green light” to move on economic issues. While Prime Minister Stephen Harper was still viewed as somewhat polarizing, Canadians, including his opponents, perceived him as a sound economic manager. With the help of then-finance minister Jim Flaherty, Harper and his government were perceived to have deftly handled the economic crisis. On that score, Canadians were clear: they strongly trusted Harper on economic issues.

In the 2011 election, the Harper government hammered home the importance of “jobs, growth and long-term prosperity” with effective ad campaigns. Survey results showed that with a new majority government, the Conservatives could continue their push to lower taxes, stimulate job creation and cut red tape for Canadian businesses; ultimately, Canadians expected Harper’s government to remain a friend to businesses large, medium and small.

CANADA ON
THE WORLD STAGE

By 2011, the global financial crisis was still reverberating in Canada and around the world. The scale and scope of the crisis reinforced the fact that however hard sovereign nations tried to control their domestic economic fortunes, international capital markets and trade made that almost impossible.

Even though Canada and the Canadian banking system were less damaged by the collapse and the subsequent recession than many others, the toll on major trading partners — in particular the U.S. — made it clear that boundaries and borders no longer offered protection.

Voters in 2011 expressed an acceptance of that new reality, although the lingering mistrust of foreign direct investment continued. It was an issue that was set to resurface as the world economy, and demand for oil and gas and metals, began to recover.

HEALTH CARE
   

Because health care is largely a provincial jurisdiction, and because economic issues trumped all others in 2011, it did not take centre stage in the last federal election. The Conservatives promised to renegotiate the 2004 Health Accord, but to abide by the existing commitment to increase provincial funding by six per cent annually until that happened. They also won the day by extending fitness tax credits for children and adults alike, linking this to evidence that improved fitness could help to reduce some long-term health-care costs.

In 2011, Canadians, particularly aging baby boomers, seemed open to the idea of an expanded, two-tier health-care system. There were, however, some conditions. Many viewed Jack Layton, the newly minted Official Opposition leader, as the right one to preserve the Canada Health Act. In its platform, the NDP promised to train 1,200 more doctors and 6,000 more nurses. Election results showed that Canadians were willing to explore innovative options for health-care delivery if it increased efficiency and saved money. However, they remained wary of an American-style health-care model.

2015

JOBS, TAXES & THE
CANADIAN ECONOMY

Initial data from ENsight’s recent cross- country election survey is clear: Canadians see an urgent need for the government to focus on job creation, a balanced budget and lower taxes. And while Canadians are somewhat optimistic, they reveal significant anxiety about the current period of economic sluggishness. Many think we’ve gone from economic stabilization to economic stagnation and there is a clear desire for a government that will kick-start the economy.

While Canada’s economic prosperity is a top priority, there is a warning for the Harper government in the results: 35% believe the Prime Minister is headed in the wrong direction. Whether Liberal Leader Justin Trudeau or NDP Leader Thomas Mulcair can capitalize on this remains to be seen; however, results suggest that Harper retains credibility as a proven economic manager and as a safe steward in tough economic times. Canadians, by and large, indicate they trust him to handle the economy, balance the budget, and pragmatically react to plunging oil prices and a weak Canadian dollar.

CANADA ON
THE WORLD STAGE

Canadians still view international trade as an important component of Canadian economic prosperity. More than ever, Canadians have become a nation of “free traders” who believe that government must look beyond the U.S. for investment and partnership. Only 17% of survey respondents believe that Canada should maintain its more traditional focus on the U.S. Fully two-thirds (68%) believe we must look to new economies and new trade deals for opportunities and growth in the future.

While international trade is important for respondents, no monitoring of issues could avoid Canada’s role on the world stage as it relates to terrorism and the ongoing fight against ISIL. Sixty-four per cent of Canadians see anti-terror legislation as a priority in the lead-up to an election, with 34% seeing it as an “urgent priority.” Despite this urgency, only a slight majority of Canadians support the extension of the ISIL mission. Interestingly, respondents in Quebec, the province with arguably the most heated discourse regarding Islamic fundamentalism, expressed little interest in engaging with the overseas fight against ISIL.

HEALTH CARE
   

Building on the opinion shift first seen in 2011, almost 70% of respondents today believe a new approach to health care — even a two-tiered one — was either an urgent or important priority for the government.

Although research suggests that Canadians have a somewhat more positive view of the national health-care system than they did in 2004, timely access remains a persistent issue.

Early polling suggests that voters recognize that the existing health-care system and its insatiable demand on public finances is unsustainable. Voters show an openness to at least considering a two-tier system that alleviates costs but maintains access for all. At the same time, with a voter focus almost exclusively tied to the economy, it is unlikely that options for health-care delivery are likely to gain momentum or form a high- profile component of policy platforms for any of the parties.

Elections


Dispatches: Israel Spring 2015 

As a guest of the Centre for Israel and Jewish Affairs, I was in the country for the unexpected re-election of Israeli Prime Minister Benjamin Netanyahu.

Even Mr. Netanyahu’s closest strategists were surprised: the night of the election, we were joined at dinner by his campaign manager, Aron Shaviv. Although he has an international reputation for winning election campaigns for centre-right candidates, as we chatted over dinner even he failed to realize how resonant was Mr. Netanyahu’s eleventh-hour call to action.

The problem, he said, was that Likud voters had been tempted by a “package deal” — they believed they could vote for a centrist party within a potential right-wing coalition but still get Mr. Netanyahu as the prime minister.

Still, the decision to scare Israelis into voting — and voting for him — by casting Arab voters as a threat, stirred an international controversy. Such tactics may be expedient in the short-term, but they can also carry a steep price.

Now, as efforts to build a coalition government get underway in Israel, the extent to which Mr. Netanyahu’s strategy has poisoned his own chalice, remains to be seen.

Media

The Media are
the Message

Changes in the way we use media and social media ensure that no campaign target is missed

By Laura Warner Consultant, Knowledge Services Lead
& David Woolley Junior Consultant, Navigator

Over the past 15 years, both the media and the message in political campaigns have been driven by advanced communications technology and data analytics.

Partisan political advertising has evolved from crude mass marketing efforts roughly based on past voting behaviour to highly strategic, research-driven custom messages.

Fifteen years ago, the Internet was not yet a mainstream campaign tool. In the 2000 Canadian federal election, the websites of political parties and candidates were skeletal, disorganized and difficult to navigate. But campaigns were on the cusp of fundamental change. In the U.S., Al Gore’s 2000 presidential campaign deployed a progressive Internet team that began collecting email addresses of voters in order to craft more personalized messages. This marked the start of efforts to build voter profiles in order to deliver focused information that aligned closely with the recipient’s beliefs and behaviour.

Political advertising content also changed with technology. In the late 1980s and early 1990s, it relied on symbolic imagery or general footage of a party leader mingling with potential voters at Tim Hortons or on an assembly line.

Over time, political leaders have begun speaking directly to the camera and to viewers. As attention spans have decreased in the Internet age, so too has the length of traditional ads. From a full minute in the 1960s, television ads have become much briefer — some as short as 15 seconds. Online, however, spots may last closer to 90 seconds.

This change reflects a shift in viewing habits among the electorate. It used to be that everyone was glued to a TV set for specific hours every evening, and people watched things at particular times. With the extreme mobility of laptops, tablets and smart phones, people now expect the message to come to them, rather than the other way around.

“Partisan political advertising has evolved from crude mass marketing efforts roughly based on past voting behaviour, to highly strategic, research-driven custom messages.”

While the cost to produce and distribute online political ads has fallen, parties are under pressure to produce and distribute them faster to capitalize on breaking news or to respond to events.

That means simple, low-cost videos have become the new normal. Within hours, campaign workers can produce timely web videos that build momentum by allowing the electorate to comment on and share them.

Furthermore, sophisticated research and data analytics make these ads more strategic and effective. The advent of Big Data allows campaigners to analyze viewer responses and patterns in real time, quickly identifying the issues and responses that resonate most. This insight is then used to create customized but mass scale messages for Twitter, Facebook and YouTube accounts.

In the information age, as never before, political campaigns prove that we shape our tools — and then they shape us.

Distractions

A look back

A fond look back at the things that made us the way we were circa 2000

Canadian federal election
is held on November 27.

Pierre Elliott Trudeau dies on
September 28.

Air Canada completes its takeover
of rival Canadian Airlines.

World leaders meet for the
United Nations Millennium Summit,
September 6 to 8 at UN Headquarters
in New York City.

Human Genome Project:
Scientists successfully map and record
human genomes in DNA (1984–2003).

The 2000 film Gladiator went on to win
Best Picture at the 73rd Academy Awards.

St. Louis Rams beat the
Tennessee Titans to win Super Bowl XXXIV.

Jennifer Lopez stuns in a Versace dress
at the 42nd annual Grammy Awards.

The West Wing wins for outstanding drama
series at 52nd Primetime Emmy Awards.

The Soprano’s James Gandolfini named
outstanding lead actor in a drama series
at the 52nd Primetime Emmy Awards. 

Cupcakes become a food trend.

Cargo pants and camouflage
become fashion trends.


POPCORN & POLITICS

As we prepare for the pending election season, here are some of our favourite political and campaigns movies and documentaries
  

  • All the President’s Men
  • The Candidate
  • Election
  • Frost/Nixon
  • The Champions
  • Faith in the White House
  • The Inside Job
  • True Colors
  • In the Loop
  • Wag The Dog

Proust Questionnaire

When Marcel
Met Rick

French author Marcel Proust is famous for his gentle remembrance of things past, his eponymous character-revealing questionnaire ... and his love of madeleine cookies. Rick Mercer, host of the Rick Mercer Report on CBC TV, on the other hand, is famous for his sharp wit, his eloquent indignation and his love for Newfoundland. Gentlemen.....

1. What is your idea of perfect happiness?
On a dock without a deadline in sight.
   

2. What is your greatest fear?
Wrongfully convicted.
   

3. What is the trait you most deplore in yourself?
Procrastination.
  

4. What is the trait you most deplore in others?
Chronic tardiness.
    

5. Which living person do you most admire?
Tony Clement.
     

6. What is your greatest extravagance?
Travel.
  

7. What is your current state of mind?
On-the-spot questionnaire-related anxiety.
  

8. What do you consider the most overrated virtue?
Patience.
  

9. On what occasion do you lie?
See question 5.
  

10. What do you most dislike about your appearance?
Too tall.
  

11. Which living person do you most despise?
Have you seen my act?
    

12. What is the quality you most like in a person?
Honesty and a filthy mouth.
   

13. Which words or phrases do you most overuse?
Sent from my Blackberry wireless handheld.
   

14. What or who is the greatest love of your life?
Laughing.
  

15. When and where were you happiest?
Performing a drum solo in a grade eight school assembly.
 

16. Which talent would you most like to have?
To be a song and dance man. I am in awe of the triple threat.
    

17. If you could change one thing about yourself, what would it be?
I can’t sing.
  

18. What do you consider your greatest achievement?
Gainful employment.
  

19. If you were to die and come back as a person or a thing, what would it be?
A duck. I’ve always admired ducks. Not a fois gras duck but a wild one.
    

20. Where would you most like to live?
Newfoundland.
    

21. What is your most treasured possession?
Happy to report I have no treasured possessions.
    

22. What do you regard as the lowest depth of misery?
Sitting in caucus wondering how that idiot became leader.  
  

23. What is your favorite occupation?
Prime Minister of Canada.  
  

24. What is your most marked characteristic?
I’ll try most things.
    

25. What do you most value in your friends?
An outrageous sense of humour.
  

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