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REPUTATION IN THE CLOUD ERA
DIGITAL CRISIS COMMUNICATIONS STUDY


              2011.08.02
EVERYTHING THAT FAMOUSLY GOES WRONG
IS NOW CALLED A ‘PR DISASTER’
   BP’s oil spill
   Toyota’s recalls
   Tiger Woods’ spectacle
   News Corporation’s hacking scandal
METHODOLOGY
          PSB conducted a total 826 online and               Region               Method
                                                                                               Sample   Margin
                                                                                                size    of error
           face to face interviews globally
           amongst business decision makers in
           May and June 2011                                  EU
                                                              UK, France,
                                                                                   Online       204     +/-6.8%
                                                              Germany, Italy,
          Business decision makers are defined               Spain
           as respondents who:
                 Aged over 25,
                 Full time or self employed/business         US                   Online       251     +/-6.2%
                  owner
                 Have an active interest in business and
                  current affairs issues,                     APAC                  Mix of
                                                              Japan, India,       online and
                 Have final or significant decision making   China, Korea,        face to
                                                                                                201     +/-7.5%
                  power in their business.                    Indonesia              face

          Overall, half the respondents were from            LatAm                 Mix of
           large enterprise businesses and half               Mexico, Brazil,     online and
                                                                                                170     +/-6.9%
           were from SME businesses                           Chile, Argentina,    face to
                                                              Colombia               face
          Data has been weighted to reflect
           GDPs of each region

    ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
2
    ASSOCIATES
OBJECTIVES


          To understand how crisis is
                                                          To explore the extent and need
          experienced – how common
                                                          for crisis plans
          and what types




                                                          To understand crisis
          To examine how companies
                                                          preparation in the context of
          approach crisis management
                                                          growing impact of social and
          planning
                                                          digital media




    ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
3
    ASSOCIATES
CRISIS IS AN ORDINARY
                             PART OF BUSINESS




    ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
4
    ASSOCIATES
59% OF BUSINESS LEADERS HAVE EXPERIENCED A
      CRISIS IN THEIR CURRENT OR PREVIOUS COMPANY
         Q39/40(combined): Has your company experienced a crisis while you’ve been working there?
                     Has a company you worked for previously experienced a crisis?




                                                                          66%
                       41%                                             OF ENTERPRISES
                                                                      HAVE EXPERIENCED
                  HAVE NOT
                EXPERIENCED A                         59%                  A CRISIS
                                                                               vs.
                    CRISIS                         HAVE
                                                EXPERIENCED
                                                  A CRISIS                53%
                                                                            OF SMES




    ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
5
    ASSOCIATES
APAC BUSINESS LEADERS ARE MORE LIKELY TO HAVE
EXPERIENCED A CRISIS, WHILE LATAM ARE LEAST LIKELY
                       Q39/40(combined): Has your company experienced a crisis while you’ve been
                       working there? Has a company you worked for previously experienced a crisis?


                       67%                                                     68%
                               61%                                                               64%
            59%                                                     59%
                        APAC




                                     55%




                                                                                 MANUFACTURING
                                                                                                              53%
                               EU




                                                                                                 TECHNOLOGY
              GLOBAL




                                           46%                                                                          46%




                                                                     GLOBAL
                                      US




                                                                                                              SERVICE
                                              LATAM




                                                                                                                        HEALTHCARE
                  Have experienced a crisis                                   Have experienced a crisis


6 ©BURSON-MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND ASSOCIATES
CONTROVERSIAL COMPANY DEVELOPMENTS ARE
             THE MOST COMMON CRISIS ENCOUNTERED
                                     Q44: What sort of crisis did your company encounter?
                                           (Among those who experienced a crisis)

             Controversial company developments (e.g. lay offs)                                 31%

       Logistic difficulties (e.g. problems with transport/delivery)                      20%
        Danger to product safety (e.g. defective or contaminated
                                                           parts)                      19%

          Technical accidents (e.g. natural disaster or explosion)                    18%

                                   Online or digital security failure               16%
         Critical or negative new media campaigns (e.g. criticism
                                             over social media)                     16%

                        Intense political scrutiny of your company            12%

                      Intense regulatory scrutiny of your company         10%

                        Criminal actions (e.g. bomb attack or fire)      9%
                                                                                    Global
    ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
7
    ASSOCIATES
COST OF EXPERIENCING A CRISIS
                          Q151: Approximately, how much did the crisis cost your company?
                                   (Among those who have experienced a crisis)



                          Crisis cost                            23%                     Global
            More than half more than
                           a million GBP
                                                                       31%               Large Enterprises
                        half a million
                            pounds                         14%                           SMEs


                         Crisis cost up                                            60%
                             to half a
                  Up to half a million GBP
                                                                             51%
                              million
                              pounds                                                     69%


                                                          10%
                         CrisisCrisis cost
                               cost nothing
                                                          10%
                                  nothing
                                                          11%


    ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
8
    ASSOCIATES
DROP IN REVENUE AND CUT-BACKS/LAY-OFFS MOST
                COMMON IMPACTS OF CRISIS
    Q150: You said you company has experienced a crisis. What was the impact on your company from the
                             crisis? (Amongst those who experienced a crisis)

                                    Drop in revenue                               32%
                          Cut-backs and/ or lay-offs                        24%
                        Loss of corporate reputation                  18%
                                                                                        Global
              Destabilisation of the entire company                   18%
                                 Loss of public trust                 17%
                       Increased regulatory scrutiny            13%
                              A drop in share prices            13%
               Increased scrutiny from new media               12%
               Law suits from individuals or groups            11%
                         Increased political scrutiny      10%
                                     Extensive fines       10%
Inconsistent statements were made to the media            9%
                                 Loss of media trust      8%
    ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
9
    ASSOCIATES
79% ARE ONLY 12 MONTHS FROM A POTENTIAL CRISIS –
      HALF THINK THIS WILL HAPPEN IN THE DIGITAL SPACE
                     Q29-37: How likely do you think it is that your company will experience any of the
                                    following potential crisis in the next 6-12 months?
                              (Top 2 Very + Somewhat likely to experience this type of crisis)

                                                                                                            Global

                                                           Controversial company developments               50%


            21%                                            Online or digital security failure

                                                           Logistic difficulties
                                                                                                            47%

                                                                                                            47%

                               79%                         Intense regulatory scrutiny of your product or
                                                           company
                                                                                                            45%

                                                           Critical or negative new media campaigns         43%

                                                           Danger to product safety                         42%
                                                           Technical accidents                              40%
                                                           Intense political scrutiny of your product or
                                                                                                            40%
                                                           company
      Likely to experience a potential crisis              Criminal actions                                 33%

      Not likely to experience a potential crisis


     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
10
     ASSOCIATES
PRODUCT SAFETY AND ONLINE SECURITY FAILURE
           SEEN TO HAVE HIGHEST IMPACT ON REPUTATION
                   Q27: Which of the following potential situations do you think would impact the
                                         reputation of your company most?

         Danger to product safety (e.g. defective or contaminated
                                                            parts)                                   40%

                                    Online or digital security failure                         35%

           Technical accidents (e.g. natural disaster or explosion)                       31%
          Critical or negative new media campaigns (e.g. criticism
                                              over social media)                         30%

                         Criminal actions (e.g. bomb attack or fire)                    28%

              Controversial company developments (e.g. lay offs)                  23%

        Logistic difficulties (e.g. problems with transport/delivery)            21%

                       Intense regulatory scrutiny of your company            20%

                         Intense political scrutiny of your company        16%
     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
11
     ASSOCIATES
APAC ARE MORE CONCERNED ABOUT PRODUCT SAFETY
      WHILE LATAM WORRY ABOUT TECHNICAL ACCIDENTS
                          Q29-37: How likely do you think it is that your company will experience each of
                             the following in the next 6-12 months? (Top 2 Very + Somewhat likely to
                                                   experience this type of crisis)


                          53%                                                     54% 47%
              42%                  43%     41%                         40%
                            APAC




                                                                                   LATAM


                                                                                           APAC
                                                                                                  36%
                                                                                                        33%
                                   LATAM




                                                    32%
                GLOBAL




                                            EU




                                                                         GLOBAL




                                                                                                   EU

                                                                                                        US
                                                      US




                         Danger to product safety                 Technical accidents (e.g. natural disaster and
                                                                  explosion)


     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
12
     ASSOCIATES
COMPANIES ARE NOT
                            PLANNING SUFFICIENTLY




     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
13
     ASSOCIATES
ONLY HALF OF COMPANIES HAVE A CRISIS PLAN

                               Q97: Does your current company have a crisis management plan?




                                             54%                46%
                                           HAVE A              DO NOT
                                            PLAN               HAVE A
                                                                PLAN



     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
14
     ASSOCIATES
APAC COMPANIES AND THOSE IN MANUFACTURING OR
         TECHNOLOGY ARE MORE LIKELY TO HAVE PLANS
                                                 Q97: Does your current company have a crisis management plan?



                                         64%
                                                                                                 62% 62%
                             54%                        55%
                                              APAC



                                                                      51%              54%




                                                                                                  MANUFACTURING

                                                                                                                  TECHNOLOGY
                                                           US
                                GLOBAL




                                                                                                                               47%
                                                                         EU




                                                                                        GLOBAL
                                                                                                                                         35%




                                                                                                                               SERVICE
                                                                              29%




                                                                                                                                          HEALTHCARE
                                                                              LATAM




                                         Has a crisis plan                                       Has a crisis plan


15 © B U R S O N - M A R S T E L L E R , L L C | © P E N N , S C H O E N &
    BERLAND ASSOCIATES
INDIFFERENCE AND COST ARE KEY BARRIERS TO
                        DEVELOPING A PLAN

           Q181: What are the key barriers to developing a crisis management plan for your company or
                                 organisation? (Amongst those without a plan)


                                   It's rarely going to be needed                                   33%


                            It’s too difficult to set up or manage                18%


                                                 It's too expensive         14%
                                                                                           Global

                                   It's not a high enough priority        13%

 I don’t feel I have enough information about what is out
 there and how it could benefit me
                                                                      10%


                            It would take too much time to plan       10%

     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
16
     ASSOCIATES
NEARLY HALF OF THOSE WITH A CRISIS PLAN FEEL
                   THAT THERE ARE STILL GAPS
                           Q109: To what extent, do you think that your company’s crisis plan will be
                           adequate in the event of a crisis? (Amongst those with a plan)


                                        The current
               Current crisis plan will be satisfactory
                                         crisis plan
                                       in event of crisis
                                           will be                                                 49%
                                       satisfactor…

                                          It will cover
                    Current crisis plan will cover the
               company to some extent company
                                   the but there are
                                      to somegaps                                              47%
                                         extent, but…

                                        The crisis
                      Crisis plan will not offer proper
                  coverage and needs to bewill not
                                      plan reviewed
                                           offer proper     3%
                                           coverage…


     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
17
     ASSOCIATES
47% HAVE INCREASED THEIR INTERNAL RESOURCES
          FOR RESPONDING TO A CRISIS, WHILE 7% HAVE
                        DECREASED
                                     Q50: In the past 5 years, has your company increased or
                                    decreased its internal resources for responding to a crisis?

                      47%                                        46%




                                                                                               6%

                     Increased                             Stayed about the same             Decreased



     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
18
     ASSOCIATES
BENEFITS OF PLANNING




     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
19
     ASSOCIATES
COMPANIES WITH A PLAN RECOVER FASTER

            Q46: About how long would you say that it took your company to recover from the crisis?
                               (Among those who have experienced a crisis)



                                                           20%                               No Plan
                   One month or less
                                                                     32%                     Plan




                                                                  29%
                       Up to 6 months
                                                                    31%



                                                                             41%
                  6 months or longer
                                                                       34%


     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
20
     ASSOCIATES
THOSE WITH A PLAN ARE MORE LIKELY TO HAVE
                HANDLED THE CRISIS EFFECTIVELY
                            Q150: You said you company has experienced a crisis.
        What was the impact on your company from the crisis? (Amongst those who experienced a crisis)

                 41%

                                            33%
          30%
                                                                                                              27%
                                     22%                            22%                   21%                        20%
                                                             15%                   16%




        Drop in revenue         Cut-backs and/ or lay-     Loss of corporate   Destabilisation of the       None, the crisis was
                                        offs                  reputation         entire company           handled effectively with
                                                                                                        little or no damage to the
                                                                                                                  company

                                                           Plan      No Plan


     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
21
     ASSOCIATES
DIGITAL HAS MADE CRISIS
                              MANAGEMENT MORE
                                 CHALLENGING



     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
22
     ASSOCIATES
40% THINK IT IS HARDER
                                   TO PLAN FOR A CRISIS TODAY
                      Q51: Do you think it is more or less difficult for companies like yours to plan
                                           for a crisis than it was 5 years ago?



                      40%                                     41%



                                                                                            19%



                    More difficult                         About the same                 Less difficult




     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
23
     ASSOCIATES
IT IS MORE DIFFICULT TO PLAN DUE TO THE
                    CHANGING NATURE OF COMMUNICATIONS

      Q53: Which, if any, of the below are reasons why you feel it is more difficult to plan for a crisis
                        today? (Among those who feel it is more difficult to plan)
            50%
                                                                                                             Global

                                  37%                      35%
                                                                         31%                29%
                                                                                                                25%




       Need to respond      Overall challenges     More globalized   Increased public   Increased anti-     Rise of citizen
       extremely quickly        of digital            nature of         demand for    corporate sentiment journalism / social
                             communications        communications      transparency     in public and/or     media (e.g.
                                                                                             media        Facebook, Twitter)




     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
24
     ASSOCIATES
COMPANIES BELIEVE THAT THE RISE OF DIGITAL
         COMMUNICATIONS HAS INCREASED VULNERABILITY
                         TO A CRISIS
     Q58: To what extent do you think the rise of digital communications has increased or decreased your
                                      company's vulnerability to crisis?


                        55%
                                                                42%




                                                                                        4%

                      Increased                     Neither increased nor decreased   Decreased



     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
25
     ASSOCIATES
SOCIAL MEDIA PUTS INCREASING PRESSURE ON
                          COMPANIES TODAY

      81%                                                  When it comes to new media
      of respondents believe that
      new media’s role in driving                          66%
      reputation during a crisis is                        of respondents believe new
      on the rise                                          media has significantly
                                                           increased the potential cost
                                                           of a crisis
      65%
      of respondents feel that new                         However, after a crisis,
      media makes crises more
      difficult to manage…                                 55%
                                                           believe new media
                                                           (including social media) has
      …And        65%believe it is
                                                           made it easier to recover
      hard to know who
      influences opinion online
     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
26
     ASSOCIATES
RECENT HIGH PROFILE CRISES (E.G. BP AND
             WIKILEAKS) HAVE REVEALED PRESSURE POINTS
      Q55: What do you think are the biggest issues for companies in crisis like. BP, Sony and those
                 attacked by Wikileaks when responding to the online public debate?


       Inability to respond effectively to new media (including
                                                 social media)                         43%


                                           Slow response time                       39%

       New media (including social media) channels flooded
                                 with negative commentary                       34%


            Lack of dedicated team to respond to new media                   29%                  Global


                 Treating old and new media types differently          22%


                             Being undermined by employees           20%


     Not seeking the support or assistance from third parties       19%

     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
27
     ASSOCIATES
HALF OF COMPANIES DO NOT FEEL CONFIDENT
                 HANDLING NEW MEDIA DURING A CRISIS
                          Q134/135: Which of the following statements is closer to your view?


               Engaging and monitoring                     Understanding who online stakeholders are
                social media channels                            and how to engage with them




                                           46%                                          50%
                 54%                   DO NOT
                                                                     50%              DO NOT
              DO HAVE                 HAVE FULL                   DO HAVE
                                                                                      HAVE A
               FULL                   EXPERTISE                   A GOOD
                                                                                       GOOD
             EXPERTISE                                             GRASP
                                                                                      GRASP




     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
28
     ASSOCIATES
THANK YOU !




     ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND
29
     ASSOCIATES

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Burson-Marsteller Digital Crisis Communications Study

  • 1. REPUTATION IN THE CLOUD ERA DIGITAL CRISIS COMMUNICATIONS STUDY 2011.08.02
  • 2. EVERYTHING THAT FAMOUSLY GOES WRONG IS NOW CALLED A ‘PR DISASTER’  BP’s oil spill  Toyota’s recalls  Tiger Woods’ spectacle  News Corporation’s hacking scandal
  • 3. METHODOLOGY  PSB conducted a total 826 online and Region Method Sample Margin size of error face to face interviews globally amongst business decision makers in May and June 2011 EU UK, France, Online 204 +/-6.8% Germany, Italy,  Business decision makers are defined Spain as respondents who:  Aged over 25,  Full time or self employed/business US Online 251 +/-6.2% owner  Have an active interest in business and current affairs issues, APAC Mix of Japan, India, online and  Have final or significant decision making China, Korea, face to 201 +/-7.5% power in their business. Indonesia face  Overall, half the respondents were from LatAm Mix of large enterprise businesses and half Mexico, Brazil, online and 170 +/-6.9% were from SME businesses Chile, Argentina, face to Colombia face  Data has been weighted to reflect GDPs of each region ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 2 ASSOCIATES
  • 4. OBJECTIVES To understand how crisis is To explore the extent and need experienced – how common for crisis plans and what types To understand crisis To examine how companies preparation in the context of approach crisis management growing impact of social and planning digital media ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 3 ASSOCIATES
  • 5. CRISIS IS AN ORDINARY PART OF BUSINESS ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 4 ASSOCIATES
  • 6. 59% OF BUSINESS LEADERS HAVE EXPERIENCED A CRISIS IN THEIR CURRENT OR PREVIOUS COMPANY Q39/40(combined): Has your company experienced a crisis while you’ve been working there? Has a company you worked for previously experienced a crisis? 66% 41% OF ENTERPRISES HAVE EXPERIENCED HAVE NOT EXPERIENCED A 59% A CRISIS vs. CRISIS HAVE EXPERIENCED A CRISIS 53% OF SMES ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 5 ASSOCIATES
  • 7. APAC BUSINESS LEADERS ARE MORE LIKELY TO HAVE EXPERIENCED A CRISIS, WHILE LATAM ARE LEAST LIKELY Q39/40(combined): Has your company experienced a crisis while you’ve been working there? Has a company you worked for previously experienced a crisis? 67% 68% 61% 64% 59% 59% APAC 55% MANUFACTURING 53% EU TECHNOLOGY GLOBAL 46% 46% GLOBAL US SERVICE LATAM HEALTHCARE Have experienced a crisis Have experienced a crisis 6 ©BURSON-MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND ASSOCIATES
  • 8. CONTROVERSIAL COMPANY DEVELOPMENTS ARE THE MOST COMMON CRISIS ENCOUNTERED Q44: What sort of crisis did your company encounter? (Among those who experienced a crisis) Controversial company developments (e.g. lay offs) 31% Logistic difficulties (e.g. problems with transport/delivery) 20% Danger to product safety (e.g. defective or contaminated parts) 19% Technical accidents (e.g. natural disaster or explosion) 18% Online or digital security failure 16% Critical or negative new media campaigns (e.g. criticism over social media) 16% Intense political scrutiny of your company 12% Intense regulatory scrutiny of your company 10% Criminal actions (e.g. bomb attack or fire) 9% Global ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 7 ASSOCIATES
  • 9. COST OF EXPERIENCING A CRISIS Q151: Approximately, how much did the crisis cost your company? (Among those who have experienced a crisis) Crisis cost 23% Global More than half more than a million GBP 31% Large Enterprises half a million pounds 14% SMEs Crisis cost up 60% to half a Up to half a million GBP 51% million pounds 69% 10% CrisisCrisis cost cost nothing 10% nothing 11% ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 8 ASSOCIATES
  • 10. DROP IN REVENUE AND CUT-BACKS/LAY-OFFS MOST COMMON IMPACTS OF CRISIS Q150: You said you company has experienced a crisis. What was the impact on your company from the crisis? (Amongst those who experienced a crisis) Drop in revenue 32% Cut-backs and/ or lay-offs 24% Loss of corporate reputation 18% Global Destabilisation of the entire company 18% Loss of public trust 17% Increased regulatory scrutiny 13% A drop in share prices 13% Increased scrutiny from new media 12% Law suits from individuals or groups 11% Increased political scrutiny 10% Extensive fines 10% Inconsistent statements were made to the media 9% Loss of media trust 8% ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 9 ASSOCIATES
  • 11. 79% ARE ONLY 12 MONTHS FROM A POTENTIAL CRISIS – HALF THINK THIS WILL HAPPEN IN THE DIGITAL SPACE Q29-37: How likely do you think it is that your company will experience any of the following potential crisis in the next 6-12 months? (Top 2 Very + Somewhat likely to experience this type of crisis) Global Controversial company developments 50% 21% Online or digital security failure Logistic difficulties 47% 47% 79% Intense regulatory scrutiny of your product or company 45% Critical or negative new media campaigns 43% Danger to product safety 42% Technical accidents 40% Intense political scrutiny of your product or 40% company Likely to experience a potential crisis Criminal actions 33% Not likely to experience a potential crisis ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 10 ASSOCIATES
  • 12. PRODUCT SAFETY AND ONLINE SECURITY FAILURE SEEN TO HAVE HIGHEST IMPACT ON REPUTATION Q27: Which of the following potential situations do you think would impact the reputation of your company most? Danger to product safety (e.g. defective or contaminated parts) 40% Online or digital security failure 35% Technical accidents (e.g. natural disaster or explosion) 31% Critical or negative new media campaigns (e.g. criticism over social media) 30% Criminal actions (e.g. bomb attack or fire) 28% Controversial company developments (e.g. lay offs) 23% Logistic difficulties (e.g. problems with transport/delivery) 21% Intense regulatory scrutiny of your company 20% Intense political scrutiny of your company 16% ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 11 ASSOCIATES
  • 13. APAC ARE MORE CONCERNED ABOUT PRODUCT SAFETY WHILE LATAM WORRY ABOUT TECHNICAL ACCIDENTS Q29-37: How likely do you think it is that your company will experience each of the following in the next 6-12 months? (Top 2 Very + Somewhat likely to experience this type of crisis) 53% 54% 47% 42% 43% 41% 40% APAC LATAM APAC 36% 33% LATAM 32% GLOBAL EU GLOBAL EU US US Danger to product safety Technical accidents (e.g. natural disaster and explosion) ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 12 ASSOCIATES
  • 14. COMPANIES ARE NOT PLANNING SUFFICIENTLY ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 13 ASSOCIATES
  • 15. ONLY HALF OF COMPANIES HAVE A CRISIS PLAN Q97: Does your current company have a crisis management plan? 54% 46% HAVE A DO NOT PLAN HAVE A PLAN ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 14 ASSOCIATES
  • 16. APAC COMPANIES AND THOSE IN MANUFACTURING OR TECHNOLOGY ARE MORE LIKELY TO HAVE PLANS Q97: Does your current company have a crisis management plan? 64% 62% 62% 54% 55% APAC 51% 54% MANUFACTURING TECHNOLOGY US GLOBAL 47% EU GLOBAL 35% SERVICE 29% HEALTHCARE LATAM Has a crisis plan Has a crisis plan 15 © B U R S O N - M A R S T E L L E R , L L C | © P E N N , S C H O E N & BERLAND ASSOCIATES
  • 17. INDIFFERENCE AND COST ARE KEY BARRIERS TO DEVELOPING A PLAN Q181: What are the key barriers to developing a crisis management plan for your company or organisation? (Amongst those without a plan) It's rarely going to be needed 33% It’s too difficult to set up or manage 18% It's too expensive 14% Global It's not a high enough priority 13% I don’t feel I have enough information about what is out there and how it could benefit me 10% It would take too much time to plan 10% ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 16 ASSOCIATES
  • 18. NEARLY HALF OF THOSE WITH A CRISIS PLAN FEEL THAT THERE ARE STILL GAPS Q109: To what extent, do you think that your company’s crisis plan will be adequate in the event of a crisis? (Amongst those with a plan) The current Current crisis plan will be satisfactory crisis plan in event of crisis will be 49% satisfactor… It will cover Current crisis plan will cover the company to some extent company the but there are to somegaps 47% extent, but… The crisis Crisis plan will not offer proper coverage and needs to bewill not plan reviewed offer proper 3% coverage… ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 17 ASSOCIATES
  • 19. 47% HAVE INCREASED THEIR INTERNAL RESOURCES FOR RESPONDING TO A CRISIS, WHILE 7% HAVE DECREASED Q50: In the past 5 years, has your company increased or decreased its internal resources for responding to a crisis? 47% 46% 6% Increased Stayed about the same Decreased ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 18 ASSOCIATES
  • 20. BENEFITS OF PLANNING ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 19 ASSOCIATES
  • 21. COMPANIES WITH A PLAN RECOVER FASTER Q46: About how long would you say that it took your company to recover from the crisis? (Among those who have experienced a crisis) 20% No Plan One month or less 32% Plan 29% Up to 6 months 31% 41% 6 months or longer 34% ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 20 ASSOCIATES
  • 22. THOSE WITH A PLAN ARE MORE LIKELY TO HAVE HANDLED THE CRISIS EFFECTIVELY Q150: You said you company has experienced a crisis. What was the impact on your company from the crisis? (Amongst those who experienced a crisis) 41% 33% 30% 27% 22% 22% 21% 20% 15% 16% Drop in revenue Cut-backs and/ or lay- Loss of corporate Destabilisation of the None, the crisis was offs reputation entire company handled effectively with little or no damage to the company Plan No Plan ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 21 ASSOCIATES
  • 23. DIGITAL HAS MADE CRISIS MANAGEMENT MORE CHALLENGING ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 22 ASSOCIATES
  • 24. 40% THINK IT IS HARDER TO PLAN FOR A CRISIS TODAY Q51: Do you think it is more or less difficult for companies like yours to plan for a crisis than it was 5 years ago? 40% 41% 19% More difficult About the same Less difficult ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 23 ASSOCIATES
  • 25. IT IS MORE DIFFICULT TO PLAN DUE TO THE CHANGING NATURE OF COMMUNICATIONS Q53: Which, if any, of the below are reasons why you feel it is more difficult to plan for a crisis today? (Among those who feel it is more difficult to plan) 50% Global 37% 35% 31% 29% 25% Need to respond Overall challenges More globalized Increased public Increased anti- Rise of citizen extremely quickly of digital nature of demand for corporate sentiment journalism / social communications communications transparency in public and/or media (e.g. media Facebook, Twitter) ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 24 ASSOCIATES
  • 26. COMPANIES BELIEVE THAT THE RISE OF DIGITAL COMMUNICATIONS HAS INCREASED VULNERABILITY TO A CRISIS Q58: To what extent do you think the rise of digital communications has increased or decreased your company's vulnerability to crisis? 55% 42% 4% Increased Neither increased nor decreased Decreased ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 25 ASSOCIATES
  • 27. SOCIAL MEDIA PUTS INCREASING PRESSURE ON COMPANIES TODAY 81% When it comes to new media of respondents believe that new media’s role in driving 66% reputation during a crisis is of respondents believe new on the rise media has significantly increased the potential cost of a crisis 65% of respondents feel that new However, after a crisis, media makes crises more difficult to manage… 55% believe new media (including social media) has …And 65%believe it is made it easier to recover hard to know who influences opinion online ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 26 ASSOCIATES
  • 28. RECENT HIGH PROFILE CRISES (E.G. BP AND WIKILEAKS) HAVE REVEALED PRESSURE POINTS Q55: What do you think are the biggest issues for companies in crisis like. BP, Sony and those attacked by Wikileaks when responding to the online public debate? Inability to respond effectively to new media (including social media) 43% Slow response time 39% New media (including social media) channels flooded with negative commentary 34% Lack of dedicated team to respond to new media 29% Global Treating old and new media types differently 22% Being undermined by employees 20% Not seeking the support or assistance from third parties 19% ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 27 ASSOCIATES
  • 29. HALF OF COMPANIES DO NOT FEEL CONFIDENT HANDLING NEW MEDIA DURING A CRISIS Q134/135: Which of the following statements is closer to your view? Engaging and monitoring Understanding who online stakeholders are social media channels and how to engage with them 46% 50% 54% DO NOT 50% DO NOT DO HAVE HAVE FULL DO HAVE HAVE A FULL EXPERTISE A GOOD GOOD EXPERTISE GRASP GRASP ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 28 ASSOCIATES
  • 30. THANK YOU ! ©BURSON -MARSTELLER , LLC | ©PENN, SCHOEN & BERLAND 29 ASSOCIATES