It’s official. The Emperor has no clothes on. The web of words, spun into some imaginary cloak covering the banking world has stitched us all up.
And, arguably, we are here thanks to the war on common language being lost because comms teams have not been stricter with their bosses’ spin.
PR teams have to recognise the role they’ve played in creating the world’s biggest financial cock-up. As do several financial journalists.
We have lived in world of verbal dressing up with financial instruments such as leverage, arbitrage, collateralised debt obligations serving as smoke and mirrors.
It is interesting how many bankers are coming out of the closet to admit they didn’t understand the terminology either. Of course they want to argue lack of comprehension means they can’t be blamed. But surely if you are in comms or a senior position it’s your job to make sure you understand.
I have found from years of advising and training international companies that the true experts can sum up their knowledge simply and in everyday language, often coupled with an innate love of their subject matter, passionately disseminated.
Those who can’t explain succinctly tend not to truly understand and their ‘knowledge’ should be treated with caution. And we are not talking about dumbing down here, but about clarity. As Einstein said ‘Everything should be made as simple as possible, but not simpler.’
And even now we are still letting them rummage in the ‘spin’ wardrobe for new dressing up words such as ‘quantative easing’.
You know a phrase has truly arrived into everyday speak when the Sun Newspaper gives it a special pull out section (Weds March 11). Shame this wasn’t done on other financial cover-up phrases.
And even before quantative easing (QE) was properly called printing money the Bank of England’s spin machine was working hard to deceive any journalist not tough enough to challenge its PR team, presumably in a bid to head off 1930’s nightmare images of Germans pushing banknotes in wheel barrows to buy a loaf of bread. And we all know where that economic disaster led to.
Best early attempt at a QE explanation was from the Daily Telegraph, the worst from a BBC girl who tried to tell the world it was something to do with tax cuts.
My favourite now is Market Consistent Embedded Values (MCEV’s) which is the latest Emperor’s New Clothes accounting hidey-hole in the Insurance world. No doubt another bit of corporate bollocks to stop prying eyes looking too deeply into the financial deficits lurking in this next sector to hit the fan.
I admire Yvette Essen, writing in the Daily Telegraph Monday March 9, playing boy pointing his finger at the naked emperor, when she rightly stated even that many figures in the insurance industry haven’t really got a clue what it means.
A incomprehensible phrase disguises what you really mean. Combined with a bullying dose of corporate posturing not many PR professionals have the nerve to challenge the so-called experts and very few will have the guts to say they don’t understand. Who wants to look stupid in the boardroom when you up against big guns?
If knowledge is power than many organisations know that language barriers are intimidating. It creates myth or code so that only those who understand the patois can be admitted to the inner sanctum. Many PR executives have to go along for the ride rather than risk being ostracised.
It takes guts to shout from the sideline but it’s time for the PR industry and journalists to be bold enough to challenge so-called experts to explain what they mean.
As in the fairy tale Emperor’s New Clothes, everyone plays along with the illusion until one small boy, usually a general nib journalist, with the job of explaining language to the general reader, points the finger and says: ‘the emperor’s wearing no clothes’.
Well now we see the global banking emperors are not only wearing no clothes but thanks to their greed taking the coats off all our backs.