Public Relations Makeover -- Martha Stewart Style

"Public Relations Makeover -- Martha Stewart Style" by Tom Nardacci

Martha Stewart offered one of the best chances to armchair quarterback a public relations crisis in quite awhile. Whether you liked her recent version of Donald’s hit reality show or not, you have to admit that her comeback has been impressive.

When charges of insider trading were making headway, Martha Stewart’s stock was dropping, both figuratively and in the building on the corner of Broad and Wall in lower Manhattan. Shares of MSO, a company with virtually no debt and several hundred million in annual revenue, dropped below $8 per share.

There were quite a few things that she did outside the courtroom that paved her comeback. She kept the lines of communications open with her loyal following and her detractors. She immediately posted an internet blog that told her side of the story. She allowed herself to be photographed and always made sure that she always came across as “Martha” always had. There was never a “perp walk” and she was always ready for the lens-men. She worked to make sure that contracts with suppliers like K-Mart remained in place and promoted those successful agreements. While she relinquished the CEO job at MSO she stayed on the payroll and pushed an optimistic message about her return to television and resuming her life after the trial and punishment. She made new television deals. Shares of MSO shot to $37 per share (Today, MSO is trading at $18). When she got out of prison and finished her house arrest she did exactly what Martha is known for, she was back on television making gingerbread men, carving pumpkins, and selling books with wedding cake ideas.

While “The Apprentice: Martha” may not have worked out, her turnaround has been really interesting to watch.