As a rule of thumb, whenever a politician says there is a perception problem, he or she actually has a "reality problem." In politics, business or everyday life, people who think they are often misunderstood are generally to blame - through words or deeds - for the image they've created.
George W. Bush thought he was misunderstood on issues ranging from the environment to foreign policy. When confronted early on about his environmental record, Bush said the public's perception would change as soon as he finished laying out the facts. Those facts, it turned out, often worked against him (for example, his shifting policy on arsenic levels in drinking water). When it came to the war in Iraq, he insisted for years that he was a "man of peace." Bush finally admitted to the London Times in 2008 that his bellicose rhetoric had a lot to do with his reputation as "a guy really anxious for war."
Barack Obama faces a similar challenge when it comes to the belief that he is anti-business. In a lengthy interview with BusinessWeek earlier this month, Obama was asked about the impact of anti-Wall Street rhetoric and his views on major business policy issues. His answers are telling.
When asked why his anti-business reputation persists, the president responded by outlining the steps the White House has taken to stem the economic crisis, stabilize the banking system and create a favorable business climate. His arguments are compelling and the administration does deserve credit for smart, decisive action. But the president's answer indicates that, like Bush, be believes public opinion will change as soon as he has finished laying out the facts.
As we discussed in my Nov. 24 post, facts matter less and less these days. Politicians can't just take action and make policies - they have to "sell" those actions and policies, over and over again, until their version of the truth becomes the dominant narrative. It's a noisy world, and if our leaders don't take the time to communicate properly, many in the general public won't even get the message that something has been accomplished.
Here's another example. Like the administration's economic achievements, the recent capture of Mullah Abdul Ghani Baradar, second in command to Taliban leader Mullah Muhammad Omar, is huge news and should dominate media coverage. Well, it did - for about a day. But in no time the White House had shifted the conversation back to healthcare, a budget deficit commission, campaign legislation, jobs bills and who knows what else. I'd wager that most Americans have no idea that in recent weeks there has been major progress in the war on terror.
Let's go back to the BusinessWeek interview. Since Obama didn't really answer the reporters' first question, they asked it again.
This time he acknowledged that many CEOs have viewed his tough talk about Wall Street as anti-business. While admitting to the "spillover effect" of his Wall Street rhetoric, he said he felt his administration had been more restrained this year.
Restrained? When the Supreme Court ruled in the Citizens United case last month, the president called it "a major victory for big oil, Wall Street banks, health insurance companies and the other powerful interests that marshal their power every day in Washington to drown out the voices of everyday Americans.'' If that's restrained, what does unleashed sound like?
Obama, like his predecessor, has taken too long to understand that words matter and an easy applause line can do damage. It's tempting to use strong language in front of a supportive crowd ("Mission accomplished"), but in the age of social media you can bet that your words will resonate on YouTube for a long time.
Another reason for the anti-business misperception, said the president, is that interest groups working on issues such as healthcare, energy and financial regulatory reform "have got a lot of sway within the business community." To combat this undue influence, Obama has focused on developing personal relationships with CEOs. He figures that by engaging business leaders individually, he can not only get their input, but also convince them that he has their interests at heart.
As BusinessWeek noted last July, the president has won allies by working to stabilize the economy and tackle long-term problems. Because they have found common cause with the White House or recognize its accomplishments, CEOs from firms such as GE, Honeywell, Pimco, UBS and Duke Energy have had unusually wide access to the president and his advisers. Many of these top executives have been publicly complimentary.
The problem with this strategy, of course, is that CEOs don't make the best goodwill ambassadors. As corporate executives, they are too busy running a business, dealing with shareholders, managing Wall Street expectations and addressing workforce issues. When they talk to the president about a problem such as climate change or healthcare, they are generally representing themselves, not the entire business community. Sooner or later, the president must find a way to win and keep the support of more trade and business associations - the ones with so much "sway."
Based on his most recent BusinessWeek interview, it's clear that Obama admires many CEOs, and he's quick to differentiate the good from the bad. He needs to take the same, individualized approach when he talks about companies and industries. If the president is serious about improving his image in the business community, he should stop inferring that all banks are greedy, all oil companies are evil, all insurance companies are insidious and all corporate lobbyists are, well, even worse than the companies they represent.
The White House and Congress also need to understand that vague statements about growth, innovation and prosperity don't do much for business people. Companies don't need to win on all the issues, but they want specifics: How big a priority is the Colombia free trade agreement? What will happen with tax policy? What would the "Volcker Rule" do for banks? The longer questions remain unanswered, the more companies feel uncertainty. And uncertainty means business risk.
The president's ability to shed his anti-business image will also depend on whether the bold steps taken over the past year pay off. As he notes in the BusinessWeek interview, continued recovery in the financial sector, comebacks by GM and Chrysler, and passage of healthcare reform that actually reduces employer costs could earn him goodwill from many business leaders.
And that could happen - but not without an entirely different approach to what he says and how he says it.
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