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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
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