Risk Communications Counseling the Top Dog Presented by Dan Keeney, APR DPK Public Relations February 27, 2009

Agenda Crisis fundamentals The role of public relations How we sometimes contribute to a crisis getting worse Inside the mind of a CEO Case studies Your Company PR

Crisis fundamentals

The role of public relations

How we sometimes contribute to a crisis getting worse

Inside the mind of a CEO

Case studies

The Fundamentals The three components of crisis communications are crisis planning, response and recovery

The three components of crisis communications are crisis planning, response and recovery

Crisis Planning

Fundamentals: Define It A crisis is an unexpected and uncontrolled event or series of events that disrupt normal operations for a prolonged period and cause unwanted public scrutiny

A crisis is an unexpected and uncontrolled event or series of events that disrupt normal operations for a prolonged period and cause unwanted public scrutiny

Planning: Keep the Plan Simple The process of planning involves an objective inward-assessment Examine operations and processes Evaluate and catalogue assets Good plans can be hundreds of pages Better plans are just a few pages

The process of planning involves an objective inward-assessment

Examine operations and processes

Evaluate and catalogue assets

Good plans can be hundreds of pages

Better plans are just a few pages

A Crisis Plan that Works “ One of the first things you learn is you have to have a plan in place. It doesn’t matter whether it’s sophisticated or simple – you’ve got to have one. Frankly, the simpler the plan, the better.” - Larry Hincker, Virginia Tech

“ One of the first things you learn is you have to have a plan in place. It doesn’t matter whether it’s sophisticated or simple – you’ve got to have one. Frankly, the simpler the plan, the better.”

- Larry Hincker, Virginia Tech

A Crisis Plan that Works “ Most plans I see are convoluted, unrealistic, out-of-date nightmares to interpret and never tested by a drill. Good plans point you in the right direction so you can act fast. If yours doesn’t, throw it out and start over.” - Richard Amme

“ Most plans I see are convoluted, unrealistic, out-of-date nightmares to interpret and never tested by a drill. Good plans point you in the right direction so you can act fast. If yours doesn’t, throw it out and start over.”

- Richard Amme

A Crisis Plan that Works Keep it simple Focus on functional aspects of response Build out crisis infrastructure Examine and mitigate vulnerabilities

Keep it simple

Focus on functional aspects of response

Build out crisis infrastructure

Examine and mitigate vulnerabilities

Planning: Crisis Infrastructure Crisis communications library Fact sheets, bios, aerial photos, database of contacts Communications infrastructure Offsite crisis response facility Satellite phones, VoIP capabilities Consider having a “dark” crisis response Web site ready www.yourcompanyanswers.com

Crisis communications library

Fact sheets, bios, aerial photos, database of contacts

Communications infrastructure

Offsite crisis response facility

Satellite phones, VoIP capabilities

Consider having a “dark” crisis response Web site ready

www.yourcompanyanswers.com

Planning: Vulnerability Checklist Fatality Succession Security Activism Health and safety Employee discord Workplace violence Forces of nature Litigation Hostile takeover Regulatory Quality issues Legislation Racial issues Environmental issues Animal rights issues Human rights issues Guilt by association Criminal acts

Fatality

Succession

Security

Activism

Health and safety

Employee discord

Workplace violence

Forces of nature

Litigation

Hostile takeover

Regulatory

Quality issues

Legislation

Racial issues

Environmental issues

Animal rights issues

Human rights issues

Guilt by association

Criminal acts

Prioritize Target Audiences Insiders Employees, shareholders, suppliers, customers Government Local, state and federal regulators and lawmakers Neighbors Media to reach community

Insiders

Employees, shareholders, suppliers, customers

Government

Local, state and federal regulators and lawmakers

Neighbors

Media to reach community

Plan for Rapid Response Who is on the Response Team and who are their alternates? At what point do you activate the Crisis Response Team? How can they be reached 24x7? Who is spokesperson?

Who is on the Response Team and who are their alternates?

At what point do you activate the Crisis Response Team?

How can they be reached 24x7?

Who is spokesperson?

Prioritizing Target Audiences Insiders Employees, suppliers, customers Government Local, state and federal regulators and lawmakers Neighbors Media to reach community

Insiders

Employees, suppliers, customers

Government

Local, state and federal regulators and lawmakers

Neighbors

Media to reach community

Prioritize from the inside out Employees Shareholders Suppliers, customers Government Local, state and federal regulators and lawmakers Neighbors Media to reach community

Employees

Shareholders

Suppliers, customers

Government

Local, state and federal regulators and lawmakers

Neighbors

Media to reach community

The Role of PR Investigator Confidant Truth teller Forecaster Do Gooder Implementer

Investigator

Confidant

Truth teller

Forecaster

Do Gooder

Implementer

Investigator

Confidant

Truth Teller

Forecaster We're in big trouble

Do Gooder

Implementer

The Dirty Little Secret Is… We think CEOs have it under control

The Dirty Little Secret Is… But our deference to CEOs hurts them in a crisis

What Malcolm Gladwell Says

Communication in a Crisis According to Gladwell: “ (Crises) are likely to be the result of an accumulation of minor difficulties and seemingly trivial malfunctions.” - Outliers, pg 183

According to Gladwell:

“ (Crises) are likely to be the result of an accumulation of minor difficulties and seemingly trivial malfunctions.”

- Outliers, pg 183

Example: Three Mile Island

Example: Three Mile Island The Problem: Routine water blockage Moisture leaks into plant’s air system Then the accumulation of minor difficulties Trips two valves, shutting down flow of cold water to steam generator Valves for backup cooling system weren’t open Hanging tag in control room blocked view of indicator Backup relief valve stuck open Gauge in control room that should have warned of a problem wasn’t working

The Problem:

Routine water blockage

Moisture leaks into plant’s air system

Then the accumulation of minor difficulties

Trips two valves, shutting down flow of cold water to steam generator

Valves for backup cooling system weren’t open

Hanging tag in control room blocked view of indicator

Backup relief valve stuck open

Gauge in control room that should have warned of a problem wasn’t working

Learn from Plane Crashes Gladwell writes: “ The kinds of errors that cause plane crashes are invariably errors of teamwork and communication.” - Outliers, Pg 184

Gladwell writes:

“ The kinds of errors that cause plane crashes are invariably errors of teamwork and communication.”

- Outliers, Pg 184

Avianca Flight 052 An accumulation of little things Malfunctioning autopilot Bad weather Long flight Misunderstandings with FAA Poor communication in the cockpit Let’s climb aboard…

An accumulation of little things

Malfunctioning autopilot

Bad weather

Long flight

Misunderstandings with FAA

Poor communication in the cockpit

Let’s climb aboard…

Mitigated Speech An attempt to downplay or sugarcoat the meaning of what you are saying “ Some people have been slow to embrace our message.”

An attempt to downplay or sugarcoat the meaning of what you are saying

Lessons from Plane Crashes Airlines now employ “Crew Resource Management” training Teaches junior crew members how to communicate clearly and assertively

Airlines now employ “Crew Resource Management” training

Teaches junior crew members how to communicate clearly and assertively

Mitigated Speech in PR Example: You learn that children are getting hurt using your product How does your CEO learn of your concerns?

Example: You learn that children are getting hurt using your product

How does your

CEO learn of

your concerns?

What do you do? Brief your boss and hope Send an e-mail Walk into his/her office Schedule a meeting Call his/her cell phone

What do you say? Let’s get the distributors on the phone The switchboard is lighting up Get the product off the shelf now Who should we notify first about a recall I think we may want to issue a recall

Learning to be Assertive A short video Credit: Video Arts

What Keeps CEOs Awake? Source: PriceWaterhouseCoopers 12 th Annual Global CEO Survey

What We Know About CEOs CEOs want the insights of key advisors CEOs expect change CEOs feel less in control CEOs value reputation and customers

CEOs want the insights of key advisors

CEOs expect change

CEOs feel less in control

CEOs value reputation and customers

CEOs: Know Change is Needed Percentage of CEOs who say their organizations face substantial change vs. ability to manage change Source: IBM Global CEO Study

Percentage of CEOs who say their organizations face substantial change vs. ability to manage change

IBM’s Analysis Constant change is certainly not new. But companies are struggling with its accelerating pace. Everything around them seems to be changing faster than they can . As one U.S. CEO told us, “We are successful, but slow.” Source: IBM Global CEO Study

Constant change is certainly not new. But companies are struggling with its accelerating pace. Everything around them seems to be changing faster than they can . As one U.S. CEO told us, “We are successful, but slow.”

CEOs: Keys to Competitiveness How important are the following sources of competitive advantage in sustaining your growth over the long term? Source: PriceWaterhouseCoopers 12 th Annual Global CEO Survey

How important are the following sources of competitive advantage in sustaining your growth over the long term?

CEOs Need a Paddle Suddenly everything is important . And change can come from anywhere. CEOs find themselves – as one CEO put it – in a “white-water world.” Source: IBM Global CEO Study

Suddenly everything is important . And change can come from anywhere. CEOs find themselves – as one CEO put it – in a “white-water world.”

CEOs: Threats on the Radar How concerned are you about the following threats in relation to your business growth prospects? Source: PriceWaterhouseCoopers 12 th Annual Global CEO Survey

How concerned are you about the following threats in relation to your business growth prospects?

CEOs: Growing Influence To what extent has the influence of stakeholders who influence your decisions about the success of your business in the future, changed in the past three years? Source: PriceWaterhouseCoopers 12 th Annual Global CEO Survey

To what extent has the influence of stakeholders who influence your decisions about the success of your business in the future, changed in the past three years?

CEOs: Impact of CSR CEOs are generally positive about the impact of rising corporate social responsibility expectations. Source: IBM Global CEO Study

CEOs are generally positive about the impact of rising corporate social responsibility expectations.

Why PR “Doesn’t Get It” Perceived as focusing on the “wrong things” We come across as wanting to be everyone’s friend The families of the victims want answers Don’t want to leave a reporter hanging Don’t want our neighbors to be mad Employees are glum We shy away from numbers

Perceived as focusing on the “wrong things”

We come across as wanting to be everyone’s friend

The families of the victims want answers

Don’t want to leave a reporter hanging

Don’t want our neighbors to be mad

Employees are glum

We shy away from numbers

The Art of Giving Advice Be positive Eliminate criticism Urge prompt action Focus on outcomes Be an incrementalist Be pragmatic Be a strategic force - James Lukaszewski, http://www.e911.com/monos/articles/article-leader-to-leader-fall-2008.pdf

Be positive

Eliminate criticism

Urge prompt action

Focus on outcomes

Be an incrementalist

Be pragmatic

Be a strategic force

- James Lukaszewski, http://www.e911.com/monos/articles/article-leader-to-leader-fall-2008.pdf

Case Study: Baby Seat Maker Millions sold Customers injured CEO blamed the parents PR’s role: negotiated terms of recall

Millions sold

Customers injured

CEO blamed the parents

PR’s role: negotiated terms of recall

Case Study: Pharma Made compounds for doctors nationwide Patients died CEO argued that doctors, patients and the coroner may have erred PR’s role: apology and process improvements

Made compounds for doctors nationwide

Patients died

CEO argued that doctors, patients and the coroner may have erred

PR’s role: apology and process improvements

Case Study: Retail Respected college town retailer Sued by university for trademark infringement CEO attacked judge’s character PR’s role: get students involved

Respected college town retailer

Sued by university for trademark infringement

CEO attacked judge’s character

PR’s role: get students involved

Summary The CEO: PR is a comb over To be an equal, think like one Plan ahead Seek the truth Speak the truth Strengthen your relationship now

The CEO: PR is a comb over

To be an equal, think like one

Plan ahead

Seek the truth

Speak the truth

Strengthen your relationship now

Questions/Discussion Download this presentation at http://slideshare.com/dpkpr Also: E-mail: dan@dpkpr.com Phone: 214-432-7556 Web: www.dpkpr.com Blog: www.theprcounselor-blog.com Twitter: http://twitter.com/dpkpr

Download this presentation at http://slideshare.com/dpkpr

Also:

E-mail: dan@dpkpr.com

Phone: 214-432-7556

Web: www.dpkpr.com

Blog: www.theprcounselor-blog.com

Twitter: http://twitter.com/dpkpr