Crisis And The Ceo
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  • 1. Risk Communications Counseling the Top Dog Presented by Dan Keeney, APR DPK Public Relations February 27, 2009
  • 2. 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
  • 3. The Fundamentals
    • The three components of crisis communications are crisis planning, response and recovery
  • 4. Crisis Planning
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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    • “ Most plans I see are convoluted, unrealistic, out-of-date nightmares to interpret and never tested by a drill.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
  • 9. A Crisis Plan that Works
    • Keep it simple
    • Focus on functional aspects of response
    • Build out crisis infrastructure
    • Examine and mitigate vulnerabilities
  • 10. 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
  • 11. 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
  • 12. Prioritize Target Audiences
    • Insiders
      • Employees, shareholders, suppliers, customers
    • Government
      • Local, state and federal regulators and lawmakers
    • Neighbors
    • Media to reach community
  • 13. 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?
  • 14. Prioritizing Target Audiences
    • Insiders
      • Employees, suppliers, customers
    • Government
      • Local, state and federal regulators and lawmakers
    • Neighbors
    • Media to reach community
  • 15. Prioritize from the inside out
      • Employees
      • Shareholders
      • Suppliers, customers
    • Government
      • Local, state and federal regulators and lawmakers
    • Neighbors
    • Media to reach community
  • 16. The Role of PR
    • Investigator
    • Confidant
    • Truth teller
    • Forecaster
    • Do Gooder
    • Implementer
  • 17. Investigator
  • 18. Confidant
  • 19. Truth Teller
  • 20. Forecaster We're in big trouble
  • 21. Do Gooder
  • 22. Implementer
  • 23. The Dirty Little Secret Is… We think CEOs have it under control
  • 24. The Dirty Little Secret Is… But our deference to CEOs hurts them in a crisis
  • 25. What Malcolm Gladwell Says
  • 26. 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
  • 27. Example: Three Mile Island
  • 28. 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
  • 29. Learn from Plane Crashes
    • Gladwell writes:
      • “ The kinds of errors that cause plane crashes are invariably errors of teamwork and communication.”
      • - Outliers, Pg 184
  • 30. 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…
  • 31. Mitigated Speech
    • An attempt to downplay or sugarcoat the meaning of what you are saying
    “ Some people have been slow to embrace our message.”
  • 32. Lessons from Plane Crashes
    • Airlines now employ “Crew Resource Management” training
    • Teaches junior crew members how to communicate clearly and assertively
  • 33. Mitigated Speech in PR
    • Example: You learn that children are getting hurt using your product
      • How does your
      • CEO learn of
      • your concerns?
  • 34. 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
  • 35. 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
  • 36. Learning to be Assertive A short video Credit: Video Arts
  • 37. What Keeps CEOs Awake? Source: PriceWaterhouseCoopers 12 th Annual Global CEO Survey
  • 38. 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
  • 39. 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
  • 40. 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
  • 41. 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
  • 42. 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
  • 43. 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
  • 44. 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
  • 45. CEOs: Impact of CSR
    • CEOs are generally positive about the impact of rising corporate social responsibility expectations.
    Source: IBM Global CEO Study
  • 46. 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
  • 47. 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
  • 48. Case Study: Baby Seat Maker
    • Millions sold
    • Customers injured
    • CEO blamed the parents
    • PR’s role: negotiated terms of recall
  • 49. 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
  • 50. Case Study: Retail
    • Respected college town retailer
    • Sued by university for trademark infringement
    • CEO attacked judge’s character
    • PR’s role: get students involved
  • 51. 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
  • 52. 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