Your SlideShare is downloading. ×
Uw Madison Bio Techlecture
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Uw Madison Bio Techlecture

381

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
381
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • These slides will be translated and sent to you. Welcome
  • Sanlu melamine milk powder crisis becomes a national issue Like on the top-forty radio show Imagethief used to listen to as a thirteen-year old, the hits keep coming in the Sanlu milk powder crisis. Over the past thirty-six hours the situation has evolved from a company-specific Sanlu crisis to a nationwide dairy-industry crisis reminiscent of the glory days of last summer's product quality crisis. Here is the latest: Products from 175 dairy companies have been tested ( 中 ). Twenty-two of them tested positive. Sanlu is still the champ in terms of micrograms per kilo of product, but some other famous (and not-so-famous) brands are now implicated, including Mengniu and Yili. I bet Yang Liwei didn't know about this when he decided to endorse Mengniu. But astronauts should be able to digest melamine, which anyway seems like kind of a futuristic substance. Imagethief used to have melamine coasters. No joke. Very "Jetsons". Also not a joke is that over 6000 children are now reported to have been affected and three are dead . The Internet is seething . Collars at the State Food and Drug Administration haven't felt this tight since Zheng Xiaoyu was frogmarched away and shot for corruption just over a year ago. So here are the PR implications: Winner: Sanlu (sort of) For Sanlu this is actually good news. All of a sudden what looked like their problem is a nationwide problem in which they are just one of many companies caught in the riptide. In PR we teach an interview technique called broadening. When confronted by an interviewer with a problem or challenge that cannot be refuted you respond by "broadening" the issue to include the rest of the industry, your rivals or whomever. It works like this: Maria Bartiromo : Your stock price is down by 50% this month? Does your company suck? You : Well, Maria, market conditions are tough and many companies in our industry have had similar declines but we are key message, key message, key message, yadda yadda yadda. Sanlu doesn't need to broaden the issue. It has broadened itself. This doesn't make Sanlu's problem go away. They're still the worst affected, the most apparently negligent and most closely associated with the issue. In the past day or so, the chicken of accountability (a really big chicken in this case) has come home to roost and heads have justly started rolling . But misery loves company, especially in PR, and now the spotlight of attention has spread out a bit. It buys Sanlu some small breathing space at the trade-off of kindling a hotter but more diffuse groundswell of national anger. Losers: Everyone else While this broadening might be good news for Sanlu, it's bad news for everyone else. Consumers have no idea which domestic manufacturers they can trust. Even ice cream bars (sob!) look suspect. Foreign manufacturers such as Nestle may benefit for a while, assuming resentment doesn't turn on them later, which is possible. Also, Fonterra is now recalling its own Anmum branded milk in China. On top of its involvement in Sanlu, this may be wearing the foreign gloss a touch thin.
  • The Topps Meat Co.'s massive frozen hamburger beef recall has many shoppers worried about the safety of their meat, after it may have sickened 25 people in eight states. Topps Meat. Co. is recalling some of its hamburgers after a cluster of illnesses in the Northeast caused by E. coli bacteria. "You don't know what's in it," one concerned shopper said. "It makes me feel very scared, and I don't know what to eat." The recall, which includes 21.7 million pounds of meat, is enough to make a McDonald's regular hamburger for every adult in America.
  • Recently, Mattel (MAT) has had two product recalls ; one for toys with lead paint, and another for toys with powerful small magnets. Mattel chose the usual large company route: Have your CEO do a public apology , looking serious and sincere, outlining the problem and emphasizing the steps you’re taking to deal with it. Has this approach ever worked? I’m not being cynical here, I really want to know. Here’s why, in this case, I don’t think it worked. It’s obviously a highly rehearsed and planned speech from CEO Robert Eckert , in a suit, sitting in a fake environment. Everything about this video screams planned, rehearsed, fake — right down to his choreographed hand movements. Maybe it’s just me, but when he says, “I’m just as upset and disappointed as anyone,” I cringe.
  • Transcript

    • 1. World in Crisis!
    • 2. Crisis Management and Communications Madison, WI Clarke L. Caywood, Ph.D.
    • 3. 21 st Century Crises
      • Natural Disasters
      • Earthquakes
      • Typhoons
      • Health risks
      • Hurricanes
      • Tornados
      • Storms
      • Fire
      • More
      • Man-made Disasters
      • Terrorism
      • Financial Failure
      • Mis-Management
      • Moral Corruption
      • Political Failure
      • Violence
      • Health Failure
      • Education
    • 4. “ Media Reported Crises”
      • Front Page Crises
      • Terrorism
      • Health Risks
      • Disasters
      • Financial Failure
      • Product Recalls
      • Business Page Crises
      • Failed managers
      • Factory safety
      • Financial
      • Recalls
    • 5. Definition of a Crisis
      • Crisis: an intense and urgent event or series of events that …
        • cause the death or severe risk to individuals
        • destroy stakeholder relationships
        • break the organization’s reputation and brand.
    • 6. Which businesses are at greatest risk of crises?
      • Risk Consumers and Risky Products
        • Sell to children, elderly, poor,
        • Environmentally (ecology) sensitive
        • Products we eat, drink
        • Moving vehicles, cars, buses, motorcycles,
        • Skin care, aging cosmetics
        • Pharmaceuticals and healthcare instruments
        • Alcohol, tobacco, guns
        • Heavily regulated by government
        • International businesses
    • 7. Risk Management Response
      • Insurance industry calls for leaders to manage the reputations and brands of their firms.
      • Lack of a crisis plan and brand protection can increase costs of insurance or not allow insurance
    • 8. Melamine milk powder 2008
    • 9. Apology to victims of milk poisoning
      • September 26, 2008 CHINA'S Premier, Wen Jiabao, has sought to ease growing concern abroad over contaminated Chinese milk by vowing to strengthen safety checks and meet international standards, as more countries boosted testing of Chinese food imports.
      • Speaking from New York where he is attending the United Nations general assembly, Mr Wen said China needed to better enforce checks at every stage of production and step up efforts to protect consumer interests.
      • "We want to make sure that our products and our food will not only meet domestic and international standards, but also meet the specific requirements of importing countries," the Premier said.
      • Mr Wen's remarks underscored China's recognition that the scandal, which has sickened about 54,000 Chinese babies and is blamed for the deaths of four infants, also has repercussions beyond its borders with the reputation of its exports at stake.
      • Chinese officials have withdrawn lollies thought to contain contaminated milk from shop shelves, echoing the expanding recalls across Asia and Europe of products ranging from yoghurt to biscuits.
      • Chinese authorities yanked White Rabbit Candy lollies from shelves in Shanghai and the southern province of Hainan in the first widely known recall on the Chinese mainland of goods other than milk products and milk.
    • 10. Tools to Manage and Audit Crises: Stakeholder Maps NGOs Investors Analysts Consumer Suppliers Press Community Universities Employees Government Competitors Company
    • 11. CEO’s on Stakeholders
      • Sr. V.P. “CEO’s are looking for leaders who can understand and integrate the corporate stakeholders, not just customer and not just business functions”. Cited September 2009 Chicago
    • 12. Process
      • Brainstorm List
      • Double
      • Research
      • Discuss the dynamics of the list – power, resources, partners
      • Draw the maps
      • Discuss
      • Assign Stakeholder Managers
      • Review and Improve
    • 13. Stakeholder Maps NGOs Investors Analysts Consumer Suppliers Press Community Universities Employees Government Competitors Company
    • 14. Colchicine and Yasmin http://www.youtube.com/watch?v=EO-G8O0lHq0&feature=relatedhttp://www.youtube.com/watch?v=uCg1q0h1PP0http://www.promega.com/Default.asp http://www.adrugrecall.com/yaz-birth-control/yasmin.html
    • 15. Let’s build a stakeholder map for your industry and profession
    • 16. Process
      • Brainstorm List
      • Double
      • Research
      • Discuss the dynamics of the list – power, resources, partners
      • Draw the maps
      • Discuss
      • Assign Stakeholder Managers
      • Review and Improve
    • 17. Advanced Map Dynamics and Metrics
      • SH Estimated Degree of Impact (size of circle)
      • SH Past, Current, Future Influence Timing (dated)
      • SH Linkages between Stakeholders (alliances)
      • SH Conflicts between Stakeholders (battles)
      • SH Boundaries more open or rigid (thickness of circle line)
      • SH Frequency of Contact (Proximity to Core Circle)
      • SH Many Contacts in SH (thickness of line to circles)
      • SH Public and Media Perceptions of “tone” (number of + or – symbols)
      • SH History Tracked and Monitored (dated and saved)
      • More
    • 18. Retail Channel Stakeholder Maps University Research Competitors TSA US Trade Shows JIT suppliers Air, Sea, Rail, Land Illegal copies of product Labor Unions Docks Box stores Consumer Shipping Government Retailers Company
    • 19. U.S. Food Quality Recalls Annual
    • 20. U.S. Autos Recalls: Is this a Constant Crises?
      • RECALLS
      • Vehicles  Select your year, make and model to retrieve any RECALL NOTICES.   Year        »  2008  »  2007  »  2006  »  2005  »  2004  »  2003    »  2002  »  2001  »  2000  »  1999  »  1998  »  1997    »  1996  »  1995  »  1994  »  1993  »  1992  »  1991    »  1990  »  1989  »  1988  »  1987  »  1986  »  1985  
    • 21. TOYOTA RECALL
    • 22. TOYOTA – Watch your back
    • 23. Your companies: Is a management problem or is it a crisis?
    • 24. Self-audit
      • Someone died near your product.
      • It’s a law suit taking 20% of your time.
      • Your stock has taken a major hit.
      • You lost a major customers or supplier.
      • Requires more than 5 trips to Washington D.C. or to Madison, Springfield, Albany.
      • It appeared in a blog, the trade press called and the popular press are calling.
      • Hearing comments are being prepared.
      • You wish you had kept the notes from today.
    • 25. If it was 4 of the previous and more it was a …
      • Crisis, maybe.
      • If you came home late, muttering under your breadth, needed a drink and as a man or a woman wished you had a real cave… it was probably just another day at the office.
      • You should consider applying more ideas from your degree from the UW.
    • 26. Three things government does really well.
      • Collect data.
      • Collect data.
      • Collect data.
    • 27. Medical Instrument Recall
      • http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfRES/textresults.cfm
    • 28. FDA Food
      • http://www.fda.gov/Safety/Recalls/default.htm
      organic baby food recall
    • 29. “ Little Oscar” was not a rapper.
    • 30. Twitters on Recalls of Everything?
      • http://www.recalls.gov/
      • http://twitter.com/FDArecalls
    • 31. Research, professional articles and projects for you…
      • Best practices on management of recalls
      • Six Sigma and ISO Standards
      • Crisis Plan and Ready Website to go dark
      • Defining your firm with audits on high visibility and high risk
      • Go to the Library …is there still a bar named the Library on Park Street?
      • No, Near Randall/Univ.Ave.The Library Cafe & Bar
    • 32. CHILE and HAITI AIDMATRIX.ORG NGOs responding to the disaster in Chile need your support to help the victims. Financial support is always the most flexible way to help relief organizations (NGOs). NGOs' in-kind & transportation needs are being consolidated for you to view. Our link will redirect you to this website.
    • 33. Aidmatrix
      • Humanitarian Relief Technology
      • The Aidmatrix Network® for Humanitarian Relief offers a robust set of Supply Chain Management , Volunteer Management and Fundraising technologies as well as Business Process Management, Consulting and Infrastructure Services. These solutions include modules that work together or independently to help empower your efforts to procure, manage and deliver humanitarian relief.
    • 34. Mattel Apologies to Customers and China 2009
    • 35. Mattel Recalls: Crises?
      • Keyword (s): Phone:    Zip/Postal Code:   Home Recall Information Please select a recall from the list below and follow the link to learn about that recall.   Return to this page if you are interested in learning about additional recalls.   This list includes Mattel recalls announced since August 4, 1998.   For general recall information on any consumer product, and for earlier Mattel recalls, please visit www.recalls.gov . DateDescriptionProduct # 09/4/2007 Barbie® Accessory Sets Lead Paint Hazard Recall K8609K8608K8607K8606K8613J9485J9486 09/4/2007 GeoTrax™ Engine Lead Paint Hazard Recall H5705K3013 09/4/2007 It's a Big Big World™ Lead Paint Hazard Recall K9343 08/14/2007 Mattel Playsets with Magnet Hazard Recall J1944J1946J4142J5114J5115G4457G4458G4459G4460G4461G4462G4464G9703H1530H1532H1533B7124B2632B3158B3201B3203B3204B3207B3209B3210B3211B3396B7078B7082B7118B7125B7127B7129B8478B9521B9522B9523B9525B9578B9929C0504C0505C1341C1342G8602G8605G8612G8614G8615H1537H1538H1553H1554H3211J1659J1661J1662J1670J1681J1687J1695J4169J4170J4171J4172J9305J9306J9648J9965J9966K3460 08/14/2007 Barbie® Doll and Tanner™ Magnet Hazard Recall J9472J9560 08/14/2007 Pixar Cars Sarge Lead Paint Hazard Recall H6414M1253K5925L6294L4051 08/01/2007 Fisher-Price Toys with Lead Paint Hazard Recall H5570J6763L5202L3507B78889026790267H3344H5569J6765L581393107G971793492J0338H9124K3580H4628K3571J034693493J6537H9125K0617H8236346583366293615J0343H9186L3194H82379061433664B7554J0344H9188H4187H82388794690611B7989J0345H2943L3215M052493780C6908H9203K4139L0305M0527906099330890745C6911J9518K4140M0351M20519061393307C6909C6910J9692M0352M20529061239054B7987B9620K3414J5935G5112J79839306839038J6762J5936J2248M0732G382533663H3343------------------------------------------------------ Sold inCanada H6859J1136J9451K9287L5342H4650H4649K0730K2448 05/30/2007 Rainforest™ Open Top Take-Along Swing™ Recall K7203 02/15/2007 Laugh & Learn™ Learning Bunny™ Recall K0468K5862K6898K7884L0327 11/20/2006 Polly Pocket!™ Assortments B2632B3201B3158G8605H3211H1538H1537B7118 1/18/2006 Laugh & Learn™ Musical Learning Chair™ Recall H4609H7168 6/14/2005 Power Wheels Lightning PAC™ Tire Recall 73530 6/14/2005 Power Wheels MX3™ Mini Bike Tire Recall 73535 5/10/2005 Grow-To-Pro® Recall 7338677356 5/10/2005 Lil' Wagster Dragster™ B0335 4/14/2004 BATMAN™ BATMOBILE™ Vehicle B4944 11/13/2003 Power Wheels MX3 Mini Bike 73535B2222 11/13/2003 Power Wheels Lightning PAC™ 73530 6/19/2003 Sparkling Symphony™ Mobile 71985 4/23/2003 Little People® Animal Sounds Farm™ 7797377746 4/10/2002 Smart Response™ Swing 796457964779644 7/31/2001 Bassinet 793367933879334 7/31/2001 Grow to Pro® Basketball 72408
      • Product Image Elmo Light Up Musical Pal33662 Ernie Light Up Musical Pal33663 Big Bird Light Up Musical Pal33664 Elmo Stacking Rings34658 Elmo Tub Sub39038 Sesame Street Shape Sorter39054
      Product Image Elmo Light Up Musical Pal 33662                         Ernie Light Up Musical Pal 33663                         Big Bird Light Up Musical Pal 33664                         Elmo Stacking Rings 34658                         Elmo Tub Sub 39038                         Sesame Street Shape Sorter 39054                        
    • 36. Mattel Apologizes for its toys
      • UPDATE 1-Mattel apologizes to China for product recalls
      • Fri Sep 21, 2007 5:26am EDT
      • (Adds quotes, background)
      • BEIJING, Sept 21 (Reuters) - A senior Mattel executive apologized to China on Friday for recent recalls of Chinese-made toys and said it took full responsibility.
      • Mattel, the world's largest toy maker, has come under scrutiny following the recall of about 21 million of its Chinese-made toys in a span of five weeks, many because of excessive levels of lead paint.
      • "Our reputation has been damaged lately by these recalls," Thomas Debrowski, Mattel's executive vice president of worldwide operations, told China's quality watchdog chief, Li Changjiang.
      • "Mattel takes full responsibility for these recalls and apologises personally to you, the Chinese people and all of our customers who received the toys."
      • He said he realized the damage that had been done to the reputation of Chinese goods.
      • "But it's important for everyone to understand that the vast majority of those products that we recalled were the result of a design flaw in Mattel's design, not through a manufacturing flaw in Chinese manufacturers."
      • Before the Mattel recalls, a spate of incidents involving unsafe Chinese products ranging from toys and seafood to toothpaste that entered both EU and U.S. markets prompted calls on both sides of the Atlantic for a ban on products "made in China".  
    • 37. Don’t be this CEO…
      • http://www.youtube.com/watch?v=xH9O8JlvOe4 Mattel
      • http://www.youtube.com/watch?v=J1YDa3t-z20 Mattel
      • http://www.youtube.com/watch?v=-r_PIg7EAUw Jet Blue
      • http://www.youtube.com/watch?v=atsW0qyBuME Baxter
      • http://www.youtube.com/watch?v=IcVDok5LrAg attack on Baxterhttp://www.youtube.com/watch?v=IcVDok5LrAg
    • 38. Crisis leadership has two important components…
        • Behavior – determines the outcome … what you do, how you do it, when you do it.
        • Communications – telling the story in a way that lets you become an advocate for the public in the media and other.
    • 39. Leadership for Crises Management
      • Pre-Crisis
      • Warning - signs of trouble?
      • Acute - Initial response,
      • Final Phase and resolution
    • 40.
      • Crisis management is more about how the crisis is handled
        • Don’t wish it will go away
        • Don’t deny
        • Don’t cover-up
        • Don’t let lawyers tell you to be silent.
        • Don’t have an agency speak for you.
        • Actions: write press release in advance, practice media training, have clear values, act first hour,
        • reveal truth early
      1. Pre-Crisis
    • 41. Financial Costs of Crises
      • The cost of crisis is determined more by the market than by the courts.
        • Litigation costs are almost always the smallest segment.
        • Loss of equity is immediate and severe, and stock prices do not automatically rebound.
        • The loss of reputation is the greatest damage
    • 42. 2. Warning Phases of Crises
      • Often common to an industry Financial scandals
      • Product failure - recalls
      • Plant safety
      • Employee security
      • Consumer fraud
      • Use issues and trend tracking
      • Use research and planning
    • 43. Be sure to cancel ads
    • 44. 3. Acute Phase
      • Corporation must respond – Do not say “no comment”. Do not wait for investigation results.
      • Your initial response is crucial
      • As a “public figure”, you frame the issue and set agenda with key message .
      • All witnesses are “ journalists ” with cameras
      • Solutions: Video and Blogs, VNRs ready, cancel ads
      • Be ready with web page to go “dark”
      • ID and train spokesperson (and others)
      • Know third party experts for referral, you are the brand,
      • Build lifelong media relationships,
    • 45.
        • You acted as a “human”, then communicated
        • You located the crisis team and met quickly and frequently - all numbers
        • You avoided just protecting management
        • You saw the crisis through stakeholder’s eyes
        • You acted as a “public figure”
      4. Final Phase
    • 46. Crisis Training: The Seven R's R Respond 1… “An hour ago we learned…” R Regret 2 … “If this is true we are outraged” R Resolution 3… “We will fix the problem now” R R Restitution 4… “We will aid each family” Reform 5… “We will do everything possible to be sure that this never happens again.” R
    • 47. Seven R’s
      • Responsibility 6… “As CEO I accept…”
      Reputation/Brand Rebuilding 7… “We recognize that we exist with the permission of society.” More Media Training for You? R R R
    • 48.  
    • 49. Thank you.
      • Discussion
      • Questions?

    ×