Crises Communications and the Media Mike Lawson DML Communications

What is a crises? An unanticipated event that threatens the reputation of an organization.

An unanticipated event that threatens the reputation of an organization.

Types of crises? Natural disaster Economic disaster Technical issues Human error Executive wrong doing Legal issues

Natural disaster

Economic disaster

Technical issues

Human error

Executive wrong doing

Legal issues

Crises externals Risk-averse audience Audience has little faith with business spokespeople Media look for conflict to create stories Competitors will take advantage of plight Debating the issue shows guilty defensive position

Risk-averse audience

Audience has little faith with business spokespeople

Media look for conflict to create stories

Competitors will take advantage of plight

Debating the issue shows guilty defensive position

Crises Negative Results A single incident can: Damage company reputation Damage company profits Damage company integrity Damage company confidence Ultimately driving away your audience

A single incident can:

Damage company reputation

Damage company profits

Damage company integrity

Damage company confidence

Ultimately driving away your audience

Famous Crises Examples Exxon Valdez

Exxon Valdez

Exxon Valdez — Failure Tanker runs aground spills 11 million gallons of crude oil in Prince William Sound, Alaska Dead: 500,000 birds; 4,500 otters, 14 killer whales Exxon chose to ignore criticism, didn’t communicate openly, shifted blame, refused to acknowledge extent of damage (legal) Paid nearly $10 billion in fines and damages Company simply failed on numerous fronts: showed little leadership; failed to show concern; failed to involve media; failed to respond to activists

Tanker runs aground spills 11 million gallons of crude oil in Prince William Sound, Alaska

Dead: 500,000 birds; 4,500 otters, 14 killer whales

Exxon chose to ignore criticism, didn’t communicate openly, shifted blame, refused to acknowledge extent of damage (legal)

Paid nearly $10 billion in fines and damages

Company simply failed on numerous fronts:

showed little leadership;

failed to show concern;

failed to involve media;

failed to respond to activists

Famous Crises Examples Tylenol

Tylenol

Tylenol — A Success Story People died from taking cyanide-lased capsules Tylenol acted quickly, proactively pulling their product from the shelves without being forced to do so They communicated openly and often with the public and had an investigation Tylenol was found innocent upon concluding the investigation Tylenol had a favorable brand image with the public because they pulled their product from the shelves quickly and communicated frequently with public Following the crises, Tylenol added safety seals on their bottles to prevent any further tampering

People died from taking cyanide-lased capsules

Tylenol acted quickly, proactively pulling their product from the shelves without being forced to do so

They communicated openly and often with the public and had an investigation

Tylenol was found innocent upon concluding the investigation

Tylenol had a favorable brand image with the public because they pulled their product from the shelves quickly and communicated frequently with public

Following the crises, Tylenol added safety seals on their bottles to prevent any further tampering

Famous Crises Examples JetBlue

JetBlue

Jet Blue — Gets It Right Passengers stuck in Jet Blue planes on tarmac for up to 10 hours because of bad weather Angry passengers’ reaction spread quickly via online channels and media CEO takes blame head on — admitted it took too long to help those passengers CEO then announces $30 million investment to revamp procedures and create passenger bill of rights “ We’re going to offer something that no other airline will offer customers. We’re going to be held accountable.” Jet Blue CEO, David Neeleman, on The Today Show

Passengers stuck in Jet Blue planes on tarmac for up to 10 hours because of bad weather

Angry passengers’ reaction spread quickly via online channels and media

CEO takes blame head on — admitted it took too long to help those passengers

CEO then announces $30 million investment to revamp procedures and create passenger bill of rights

“ We’re going to offer something that no other airline will offer customers. We’re going to be held accountable.”

Jet Blue CEO, David Neeleman, on The Today Show

Famous Crises Examples Ford/Firestone “Blowout”

Ford/Firestone “Blowout”

Ford/Firestone = Failure Number of consumers died because of tire blowouts in Ford SUVs Both companies claimed innocence and blamed each other Both companies did not communicate openly or honestly with the public Both companies implied lack of concern for their customers They ignored the deaths and injuries of their customers to protect their bottom line As a result, Ford and Firestone’s response, or lack thereof, to this crises alienated their customers and suffered serious damage for years afterward

Number of consumers died because of tire blowouts in Ford SUVs

Both companies claimed innocence and blamed each other

Both companies did not communicate openly or honestly with the public

Both companies implied lack of concern for their customers

They ignored the deaths and injuries of their customers to protect their bottom line

As a result, Ford and Firestone’s response, or lack thereof, to this crises alienated their customers and suffered serious damage for years afterward

Famous Crises Examples Shot by Dick Cheney

Shot by Dick Cheney

Shot by Dick Cheney Shot his friend with a shotgun in a hunting accident Did not communicate with public nor the administration right away Story took on a life of its own Appeared he was hiding something Cheney finally addressed the public but was too little too late As a result, Cheney’s mistake continues to be the butt of many jokes to this day

Shot his friend with a shotgun in a hunting accident

Did not communicate with public nor the administration right away

Story took on a life of its own

Appeared he was hiding something

Cheney finally addressed the public but was too little too late

As a result, Cheney’s mistake continues to be the butt of many jokes to this day

Other Famous Crises Katrina (natural disaster) Enron (creative accounting) Major League Baseball (steroids) Jack in the Box (e coli) Wendy’s (found finger in chili)

Katrina (natural disaster)

Enron (creative accounting)

Major League Baseball (steroids)

Jack in the Box (e coli)

Wendy’s (found finger in chili)

Recent Crises Examples U.S. automakers travel to Washington, D.C. for bailout meetings in their corporate jets

U.S. automakers travel to Washington, D.C. for bailout meetings in their corporate jets

Recent Crises Examples Financial services meltdown (U.S. economy)

Financial services meltdown (U.S. economy)

Recent Crises Examples Credit union corporates (U.S. Central, Western, Members United, Southwest, etc.)

Credit union corporates (U.S. Central, Western, Members United, Southwest, etc.)

To Avoid a Crisis Panic Have a Plan! Companies that incorporate effective crisis communication strategies into their disaster recovery plans have a greater chance of mitigating negative media and public perceptions and enhancing their long-term credibility.

Have a Plan!

Companies that incorporate effective crisis communication strategies into their disaster recovery plans have a greater chance of mitigating negative media and public perceptions and enhancing their long-term credibility.

A Good Crisis Plan Requires… Honest self-assessment of yourself and your organization to recognize potential pitfalls: Where are the gaps that potential problems could sneak through? Who are the execs who say the wrong thing to the wrong people? (Don’t let them talk!) What are your business practices that could be considered unethical? What are your essential services that could be knocked out by natural disaster or hacked?

Honest self-assessment of yourself and your organization to recognize potential pitfalls:

Where are the gaps that potential problems could sneak through?

Who are the execs who say the wrong thing to the wrong people? (Don’t let them talk!)

What are your business practices that could be considered unethical?

What are your essential services that could be knocked out by natural disaster or hacked?

Appoint Good Spokespeople Determine who needs to be involved Two spokespeople and two assistants to cover incoming requests Ensures at least one person will be available for media requests Plan should be able to quickly and systematically add key personnel in case crises escalates

Determine who needs to be involved

Two spokespeople and two assistants to cover incoming requests

Ensures at least one person will be available for media requests

Plan should be able to quickly and systematically add key personnel in case crises escalates

Get the Facts Early access to the “who,” “what,” “when,” “where,” “why,” and “how” of a crisis situation allows key spokespeople to better respond to media queries and disseminate the most appropriate information to the public.

Early access to the “who,” “what,” “when,” “where,” “why,” and “how” of a crisis situation allows key spokespeople to better respond to media queries and disseminate the most appropriate information to the public.

Provide Candid Responses to Media and Public Don’t avoid certain topics Don’t avoid questions by not answering directly Don’t answer a question that could compromise an ongoing investigation — but clarify why If you don’t know the answer to the questions, tell media that you will provide them with the information as soon as it’s available

Don’t avoid certain topics

Don’t avoid questions by not answering directly

Don’t answer a question that could compromise an ongoing investigation — but clarify why

If you don’t know the answer to the questions, tell media that you will provide them with the information as soon as it’s available

Key Messages for Media and Public Rehearse or discuss possible crises situations Determine key messages in each situation — and stick to them All statements to the press should incorporate your key messages Messages should be crafted to portray a corporate image that is responsive, stable, and proactive

Rehearse or discuss possible crises situations

Determine key messages in each situation — and stick to them

All statements to the press should incorporate your key messages

Messages should be crafted to portray a corporate image that is responsive, stable, and proactive

Communicate Effectively to Media and Public Respond quickly, accurately , professionally with care Be accessible! Treat perceptions as fact Acknowledge mistakes Note the other side’s concerns Make no public confrontations

Respond quickly, accurately , professionally with care

Be accessible!

Treat perceptions as fact

Acknowledge mistakes

Note the other side’s concerns

Make no public confrontations

Crises Communications in Today’s World Advent of Social Media… Crises can erupt with unprecedented speed Public has an insatiable thirst for news Now anyone can break news in a blog, Tweet, YouTube video, etc. Porous boundaries between social and mainstream media

Advent of Social Media…

Crises can erupt with unprecedented speed

Public has an insatiable thirst for news

Now anyone can break news in a blog, Tweet, YouTube video, etc.

Porous boundaries between social and mainstream media

Crises Communications Changing Social Media Allows new crises to occur Opens new channels to communication with audience Don’t have to rely solely on media to distribute message Lowers the cost of outreach while reaching more people YouTube Twitter Facebook Blogs Podcasts

Social Media

Allows new crises to occur

Opens new channels to communication with audience

Don’t have to rely solely on media to distribute message

Lowers the cost of outreach while reaching more people

YouTube

Twitter

Facebook

Blogs

Podcasts

How Fast is Social Media? US Airways into the Hudson River 43,000 views of Janis Krums’ TweetPic photo within first 4 hours

US Airways into the Hudson River

43,000 views of Janis Krums’ TweetPic photo within first 4 hours

YouTube & Home Depot Environmental group tried to upstage Home Depot’s CEO at annual meeting Member of group unfurled banner reading, “Dam Home Depot, Protect the Rivers of Chile!” Environmental group believed Home Depot could stop the dam project in Chile but wasn’t doing enough and was using wood directly harvested for the dam project Home Depot immediately released video on YouTube explaining its side Home Depot does not buy any wood related to the dam project Home Depot’s video controlled message to the public rather than go directly through the media

Environmental group tried to upstage Home Depot’s CEO at annual meeting

Member of group unfurled banner reading, “Dam Home Depot, Protect the Rivers of Chile!”

Environmental group believed Home Depot could stop the dam project in Chile but wasn’t doing enough and was using wood directly harvested for the dam project

Home Depot immediately released video on YouTube explaining its side

Home Depot does not buy any wood related to the dam project

Home Depot’s video controlled message to the public rather than go directly through the media

YouTube & Home Depot

Twitter & Ford Motor Co. Ford’s head of social media, Scott Monty, discovered Twitter messages stating Ford was going to shut down a popular fan site The dispute prompted 1,000 complaints overnight Monty immediately responded to the complaints on his Twitter page and on Ford’s page as well Monty made frequent updates to the website’s fan base Informed fan base that Ford lawyers thought the website was selling counterfeit goods with Ford’s logo and wanted the site shut down Monty convinced the lawyers not to shut down the site because it was legit By the end of the next day, the situation was resolved Website’s creator renewed faith in Ford — thanks to Monty’s immediate response

Ford’s head of social media, Scott Monty, discovered Twitter messages stating Ford was going to shut down a popular fan site

The dispute prompted 1,000 complaints overnight

Monty immediately responded to the complaints on his Twitter page and on Ford’s page as well

Monty made frequent updates to the website’s fan base

Informed fan base that Ford lawyers thought the website was selling counterfeit goods with Ford’s logo and wanted the site shut down

Monty convinced the lawyers not to shut down the site because it was legit

By the end of the next day, the situation was resolved

Website’s creator renewed faith in Ford — thanks to Monty’s immediate response

5 Steps to Manage a Crises Be prompt in addressing the public and media upon immediately discovering the crises Maintain your honesty The public is more willing to forgive an honest mistake rather than a calculated lie Be as informative as possible to quell any rumors Show the public that you care and are concerned Again, the public will be more forgiving about a caring company Maintain a two-way relationship with the public Listen to them and be proactive in your communication

Be prompt in addressing the public and media upon immediately discovering the crises

Maintain your honesty

The public is more willing to forgive an honest mistake rather than a calculated lie

Be as informative as possible to quell any rumors

Show the public that you care and are concerned

Again, the public will be more forgiving about a caring company

Maintain a two-way relationship with the public

Listen to them and be proactive in your communication

6 Crises Responses You can attack your accuser to eliminate their credibility You can use denial claiming no crises exists Justification — where you claim no serious damage was done or the victim was at fault You can use ingratiation to appease your audience You can use corrective action to “right your wrongs” You can provide a full apology asking for forgiveness

You can attack your accuser to eliminate their credibility

You can use denial claiming no crises exists

Justification — where you claim no serious damage was done or the victim was at fault

You can use ingratiation to appease your audience

You can use corrective action to “right your wrongs”

You can provide a full apology asking for forgiveness

The Three C’s of Credibility in a Crisis During a crisis, effective spokespersons must, primarily through their non-verbal cues, leave their audiences with the impression that they are: Compassionate Competent Confident Think "Rudy Giuliani" on and after 9-11

During a crisis, effective spokespersons must, primarily through their non-verbal cues, leave their audiences with the impression that they are:

Compassionate

Competent

Confident

Think "Rudy Giuliani" on and after 9-11

Questions? Mike Lawson DML Communications 760/845-8146 [email_address] www.dmlcommunications.com www.twitter.com/dmlcomm http://dmlcomm.blogspot.com

Mike Lawson

DML Communications

760/845-8146

[email_address]

www.dmlcommunications.com

www.twitter.com/dmlcomm

http://dmlcomm.blogspot.com