Kathy Bloomgarden, Ruder Finn — The 2011 EPR Interview

This is EPR's 2011 interview with Kathy Bloomgarden, conducted at Ruder Finn's Switzerland offices in her first year as CEO. For Ruder Finn's current state, see Bloomgarden Runs Ruder Finn, PR's Oldest Independent.

Related: Ruder Finn — current agency profile · PR Firms Directory · PR Industry Leaders

This interview with Kathy Bloomgarden, CEO of Ruder Finn, was conducted at the firm's Switzerland offices in 2011 — Bloomgarden's first year in the CEO role.

What she said in 2011 about trust, ethics, leadership, and Ruder Finn's global posture set the framework for the strategy she has executed at the firm.

The Interview

EPR: Kathy, I'd like to jump-start off talking about your book, Trust: The Secret Weapon of Effective Business Leaders. At a time when trust in leadership has rarely been lower, the subject is so appropriate. Who or what is to blame for the degradation of credibility government and business seem to suffer from? Public apathy? Leadership ethics?

Kathy Bloomgarden: We're in a period of considerable uncertainty and change. Unemployment rates are high — over 9% in the US — and currencies and stocks are highly volatile. Whenever you have a period of change, people feel unsettled. I wouldn't call it a question of leadership ethics. I'd call it a lack of strong leadership. Leaders haven't been able to unite people around a shared vision and a road forward. They haven't instilled confidence that progress can be made.

The emergence of social and digital media has also arrived to create the perfect storm. It's never been easier for the public, for customers, or for employees to exercise their right to free speech and broadcast it to whoever wants to listen — either in their name or anonymously. At a micro level you have customer service issues aired on Twitter that become huge leadership problems at the executive level. At the other end, you have WikiLeaks becoming a globally accessible forum for whistleblowers or opportunists.

People have always aired their views. It's just so much easier to do so now, and it can be far more damaging. Leaders need to understand that it's not good enough for them to embody the right values. Now, more than ever, they need to make sure they communicate, and that the whole organization is aligned around the values.

EPR: Wouldn't it seem wise for a leader, or a company, to instigate an ethical code, processes, and practices so extraordinary as to eclipse the competition? Or has business become so cost-conscious no one is willing to take the short-term loss?

Kathy Bloomgarden: You're quite right to ask the question about keeping the priority on ethics, especially during economically pressured times. I think it's vitally important that we all have a code of conduct that we respect and uphold no matter what pressures are around us. At Ruder Finn, ethics and values are part of our DNA. We have an ethics officer who reviews potential assignments. I believe it's really important that we uphold our values and ethical guidelines, even if it means turning away business.

"It's now more difficult than ever for organizations to maintain and grow their reputations. Small issues become big issues very quickly and one has to focus on always doing the right thing regardless of an uncertain economy."

EPR: On the ethics platform — does Ruder Finn have a hard and fast rule on controversial clients?

Kathy Bloomgarden: You make a very good point about controversial clients. In order to consider the right companies and the right fit, it's important to have a process for doing this. If there is a question regarding a client or individual assignment, our ethics officer becomes involved to review the situation and make certain that we believe in the assignment and can deliver results because we trust and believe in the client. It needs both an ethics platform and a process to make sure that we do the right thing in each case.

EPR: On Ruder Finn's structure and global posture — what's next?

Kathy Bloomgarden: For Ruder Finn Inc., we are becoming more global, and a large percentage of our business is global. We are leaders in four separate areas: global corporate reputation, health and wellness, technology and innovation, and consumer products, with a very strong digital piece underlining all of these activities. We also have several hundred people in China, and we're ranked one of the top global agencies there. Today we are almost dual-headquartered.

"The world has also changed from what it was even ten years ago. News breaks globally in an instant rather than taking a day to filter around the globe. We are set up in all regional hubs to deal with this, and ensure that we or our partners can react instantly to protect or enhance our clients' reputations."

EPR: Mentors and role models?

Kathy Bloomgarden: It's important to have mentors. I was very fortunate to be involved at a very early age in communications activities with my father. He was very inspiring, having worked for the Kennedy administration, the Vatican, and the UN for many years, and this gave me a wonderful feeling of how communications could be a great asset to people, companies, and giant global institutions. I had the opportunity, growing up, to meet some very wonderful and inspiring CEOs. Finally, my father's dedication to the arts led to the creation of one of the first communication arts units in the world.

EPR: What's Ruder Finn's greatest advantage today?

Kathy Bloomgarden: I believe our greatest advantage is our creative culture, especially in the context of the roots of the company, which were always strong in corporate and policy. Ruder Finn is lucky to be able to build on the heritage that was created in 1948. In the 63 years we've been in business, our great relationships and our networks have really served us well, and we've been able to make some bold moves — creating one of the first in-house digital shops, which is now one of the largest in the PR business. Also important is our global viewpoint, entering China as one of the first global agencies, where we now rank one of the top three. We are truly international in our thinking and can give our clients a global perspective.

EPR: Best advice you ever heard?

Kathy Bloomgarden: To be successful in this business, you need a strong will to win. You can't give up easily or you'll never get very far. Humility is also key — you can never stop learning. Things are changing so fast, and it's important to always tackle challenges with the curiosity of someone doing it for the first time.

For Ruder Finn's current state — Bloomgarden's continued tenure, the firm's 78-year independence, the five core practices, recent acquisitions, and current leadership — see EPR's current profile: Bloomgarden Runs Ruder Finn, PR's Oldest Independent.