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Luxury case study for Social Media in a Corporate Context conference.

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  • While all crises are unique, they share these traits: “the element of surprise” “insufficient information” “quick pace of events” “intense scrutiny”That Intense Scrutiny is Linked to New Communication Channels and Media – Social Media.Not all “Problems” Constitute a “Crisis”. By asking yourself, if the problem threatens to :severely affect the organization’s normal workflow and distract senior management2) affect the organization’s financial well being?3) hurt the organization’s image and reputation in the eyes of critical constituencies?
  • Early Warning Zone:Identify, monitor & select issues for action by probability of occurrence & estimated severity of impactIssue Response Strategy From proactive to interactive to accommodative to reactiveStakeholder Engagement ZoneBroad Communication ZoneTraditional Public Affairs/ Lobbying initiatives to create, change or defeat issue legislation
  • StrengthsWhat is your company’s message and promise to your stakeholders on this issue?ImprovementsDo our stakeholder perceptions reflect our message and promise?How do the media and other intermediaries describe us?Have we identified gaps between intent and perceptionIssuesAre your strategies consistent across stakeholders and regions?Are our communications across the value chain consistent?
  • The perceptions of the way this company acts as an organization and how it operates within the context of the issues facing the sector could have been negative resulting in significant cost increases and prospective loss of competitive advantage.A large difference in market capital vs. reputational capital has led to significant strategic risks in 3 principle areas:ReputationSustainabilityLicense to operate
  • Alerts from Google, YouTube, Twitter, RSS etcReference panel of all key topics, entitiesMainstream monitoring sources such as User Generated Content, Mixed Media and Editorial
  • .
  • It is not necessarily the reality of how a business manages a crisis that will determine its fate. It's how the organisation is perceived to have managed the crisis: in many ways a crisis turns into a very public, very high stakes audit of management's competence. Get it right and the organisation's reputation and value can be enhanced; get it wrong and serious – and sometimes terminal damage – can result.Monitor your stakeholders, review the influence of your activities, measure the impacts and benchmark.
  • Good crisis management is all about preparedness. An army spend its life to participate in exercises before it goes to war. In crisis Management practice is as important as the plan.It makes all the difference if a company is ready for all aspects of crisis management, leadership, structure, competence, process. Many companies are ready to face an emergency operationally or a business threat — with a business continuity plan — but not all are ready to defend their reputations in the face of extreme public scrutiny.Characteristics of effective Crisis Management EffortsPlace high value on issue managementThe most effective crisis management takes place before the problem escalates out of control during the "incubation" phase. Some of the biggest potential crises have been identified and addressed before they ever escalated out of control: this is crisis management at its best. This requires an organisational culture that is vigilant for potential crises, has open lines of communication from staff to management, and a willingness to address unpleasant truths. Central to Toyota's problem was its perceived delay in identifying and addressing the situation in the first place. Whatever Toyota says now, and however well it acts, there is a perception from its stakeholders that it ignored the problem until it was forced to take action. Corporate denial appears to have been the order of the day, with the company following the advice of the Japanese proverb: "If it stinks, put a lid on it."Show empathy, manage expectations and reach out. Be ready with an effective response.
  • Reputation Management is not just for the world’s largest companies…
  • SMICC Manchester

    1. 1. Crisis Communications Monitor your Most Important Assets
    2. 2. Case Study Of A Luxury Brand
    3. 3. Agenda  New Crisis Communications landscape  Crisis Communications vs Reputation Management  How to track Reputation/CC effectively on the web? – Who – What – When – Where – How  Business Case: International Luxury Group
    4. 4. Context Our client, a leader in the luxury business, had to deal with:  A crisis: One of its brands has launched a limited edition of one of its products, dedicated to a high profile national figure in a local market. Local Media and Social Media denounced it to protect their national hero, who was an active supporter of a simple way of life. The brand was forced to freeze the launch of this product.  An opportunity: A Chinese couple, traveling in Paris, had a very good experience with a sales representative from one of their Boutiques. On their return to Beijing, they posted a positive review on relevant forums. The boutique manager received more than 100 phone calls from China a few hours after the reviews had been posted. Everyone now wants to deal with this sales representative.
    5. 5. Before Social Media… Limited number of sources 1.Press & mass media 2.Web 3. Official documents 4.Intranet 5. Informal networks Limited number of stakeholders 1.Customers 2.Employees 3.Providers 4.Regulatory bodies 5.Government bodies 6.Audit & Advisory firms
    6. 6. After Social Media New Stakeholders 1.Customers 2.Employees 3.Providers 4.Regulatory bodies 5.Government bodies 6.Audit & Advisory firms 7.Professional associations & networks 8.Media 9. Activists 10.NGOs… New Sources… 1.Press & mass media 2.Web 3. Official documents 4.Intranet 5. Informal networks 6. Blogs 7. Forums 8. Facebook 9. Twitter… New SUBJECTS to deal with 1.Strategy 2. CSR 3. Innovation 4.Compliance 5. Product quality 6. Governance 7. Leadership
    7. 7. Local NGO Website BBC Whistle Blower a.k.a. security guard, employee Press Release or Conference with Local Media Local NGO Local News Blog Translators Press Release or Conference International NGOs International Media International Blogs International NGO Website Day 1 Day 6-7 Day 4-5 Day 8: A Bad Day at Headquarters A Bad Day at HQ
    8. 8. Aligned HQ & Markets Global PR & Product PR Objective: 1 – Provide HQ with worldwide clippings consolidation platform 2 – Provide HQ with consistent media analysis throughout all markets 3 – Provide markets with PR operational solution to enhance productivity & efficiency Challenges: 1 – Integrate 17+ clipping providers worldwide 2 – Organize indexation + valuation services in 25 languages 3 – Reduce analysis costs – 110 000 clips Benefits: 1 – Weekly exhaustive media analysis & pressbook (inline) 2 - Risk analysis 3 - Product & Event AVE analysis 4 – 100% automated process Phase 1 International PR Project Cartier
    9. 9. HQ & Markets Global PR Solution Objective: 1 – Provide HQ with worldwide monitoring platform 2 – Provide HQ with consistent analysis throughout all markets online/offline 3 – Provide markets with communications operational solution to enhance productivity & efficiency Challenges: 1 – Different risks/opportunities across countries, cultures and languages 2 - Myriad of online monitoring local providers and agencies 3 – Too much information Benefits: 1 – Weekly exhaustive media analysis & pressbook (inline) 2 - Emerging Risk Analysis 3 - Product & Event AVE analysis 4 – 100% automated process Phase 2
    10. 10. Proactive management strategies can yield a competitive advantage Latent/ emerging issue Public issue Politicized issue Legislative/ Regulatory Issue Traditional Public Affairs/ Lobbying initiatives Stakeholder Engagement Zone Broad Communication Zone Traditional PR Stakeholder and Issue Engagement Lifecycle Issue Cycle Early Warning Zone Issue Response Strategy 1. Reduce uncertainty in the planning process 2. Select highest impact issues 3. Gain additional lead time 4. Transform trends into opportunities 5. Attune to emerging societal expectations Corporate Opportunity Proactive corporate communications programs
    11. 11. New Challenges, New Solutions Connect to the right Stakeholder Audience Orchestrate Effective National & Global Infrastructure Measure Communications Success Identified Collected Tiered Maintained + = Communications Management Platform Enabled teams and processes Proactive engagement Increased impact of communication Measurable success Corporate Communications Portfolio
    12. 12. Crisis intelligence or reputation? Crisis Intelligence Reputation Objectives Monitoring and Analysis of the Crisis Understand Stakeholders Perceptions Value of Information  INSIGHT  CREDIBILITY  RELEVANCE  IMPACT  INFLUENCE  SEGMENTATION
    13. 13. Who, What, Where, Where, How How to effectively track your reputational risk in times of crisis?
    14. 14. Corporation Business Opportunity / Risk Media coverage Government leniency Employees commitment Customers loyalty Community legitimacy NGO/ Activists advocacy Investors capital Who?
    15. 15. Connected to Stakeholders  Comprehensive centralised database of government, academic, NGOs and other stakeholders  Customized and segmented by role, organization, priority, etc  Custom ‘On-demand’ audience collection service  Automatically refreshed and updated Country Level Local Level
    16. 16. What? Market outlooks Development Strategies Safety HR Ethics and Values Communication Actions Employment CSR Financial Performance Company
    17. 17. Where?
    18. 18. Where? EDITORIAL MIX UGC Personal, activist blogs… Forums, newsgroups & BBS Social Networks Twitter – Experts Twitter – personal accounts Professional & expert blogs Wikipedia Analyst Research Participatory Journalism Online Press Specialized press Corporate, institutional websites Specialized websites Comments
    19. 19. How? Listen to pertinent signals! Smart Indexing Technology qualitatively enriches information and allows users access to relevant selected topics. Measure your reputational impact! Automatically calculate the sentiment of articles in your target languages (including Mandarin, Arabic and Russian) allowing users to measure reputational impact. Monitor sources which deserve it! An Influence Rating provides a rank and weight to online material to measure the impact of these sources. Based on specific parameters it allows users to segment dedicated website sources where you and your competitors are positioning. Track your Reputation Worldwide! Your technology should be familiar with Latin and Non-Latin characters and alphabet enabling competitive intelligence professionals to track and measure their markets and reputation in these markets Multilingual Monitoring Sentiment AnalysisSmart Indexing Technology (SIT) Influence Rating (IR)
    20. 20. Engagement with Stakeholders Offline •Online engagement platform to outreach on crisis scenarios •Drive fast, personalized mass communications •Push Technology, flexible outreach (email, mail, fax, SMS) •Web based for access anywhere •Relationship tracking and history Polic y upda te Lates t resea rch pieceEvent invite Happ y B-day Fast, Personalized mass communications Push Technology, Flexible sending (email, mail, fax, SMS), Mass-customization (names, titles, protocols, etc) Event Management Ex. Speaking Tours, seminars, Key Opinion Leader Liaison programs Project / Campaign management Roles, owners, content, activities, targets, etc Brand, data, issue, product, crisis driven communications leveraging: • Trade shows • Opinion Leader Liaison programs • CSR campaigns & materials • Diamond awareness programs • Communiqués • Mailings • Road shows (speaker tours) • Information meetings • Seminars • 1:1, 1: few meetings Educate | Inform | Motivate | Activate | Maintain
    21. 21. A 3-step approach … EDITORIAL ZONE MIXTE UGC Personal, activist blogs… Forums, newsgroups & BBS Social Networks Twitter – Experts Twitter – personal accounts Professional & expert blogs Wikipedia News websites Participatory Journalism Online Press Specialized press Corporate, institutional websites Specialized websites Comments EDITORIAL ZONE MIXTE UGC Personal, activist blogs… Forums, newsgroups & BBS Social Networks Twitter – Experts Twitter – personal accounts Professional & expert blogs Wikipedia News websites Participatory Journalism Online Press Specialized press Corporate, institutional websites Specialized websites Comments ALERTS REFERENCE PANEL MAINSTREAM Engagement with Stakeholders Online
    22. 22. Two parallel goals eReputation analysis A Warning dimension
    23. 23. Two information streams Alert Analysis Tracking information in search engines A panel of sources selected because of their influence and their relevance
    24. 24. Scope 26 languages Web More than 50 brands
    25. 25. Scope Social Media (blogs, forums, Facebook, Twitter) & news websites
    26. 26. Themes Product/Quality Development Strategies Communications Ethics and Values Safety Brands CSR Human Resources Employment
    27. 27. An example of search string • CSR :("social response*" or CSR or "sustainable development" or "responsible metal* sourcing" or (green w/4 (policy or responsib* or behaviour* or practice*)) or ((environment* atleast/2 environment*) or "environment* protection" or "working environment") or "blood diamond*" or "conflict diamond*" or (war W/2 diamond*) or "conflict gold" or ((gold or gem* or "precious stone*" or diamond* or ruby or rubies) w/4 (extract* or exploit* or "worker* right*" or "working condition*" or "human health" or "human right*")) or ethic* or recycl* or fundraising or (child* w/4 (labour or work)) or (carbon W/3 (neutral or offset* or emission* or reduction or footprint)) or "climate change" or ((environmental or social or ethical) pre/1 (impact* or performance or project*)) or "employee engagement" or (renewable pre/2 (energ* or waste)) or "greehouse gas" or "product disposal" or (water pre/3 (usage or wast* or consumption or contamin* or pollution)) or "responsible sourcing" or "mining practice*" or ((mercury or cyanide or chemical*) W/5 (pollution OR contamination OR environment OR ecology OR soiling OR discharge)) or (contamin* W/4 (soil or air)) or "sulfuric acid drainage" or "waste material*" or "toxic chemical*" or disciminati* or racis* or "animal abuse" or peta or (diamond W/3 transparency) or "conflict free diamonds" or "rough diamond act" or ("diamond trade" w/5 (traffic* or illicit*)))
    28. 28. Outcomes • Examples of detected risks:  No VIP lines in Japanese shops => Customer Dissatisfaction  Lack of washing instruction labels on clothes => major Customs Problem  Carving up living animals by a supplier’s subcontractor => Media Crisis with NGO • Examples of detected opportunities:  Identification of opinion leaders in forums to launch an online campaign  Detect worst and best practices to help the brand create its fan page on Facebook  Identification of best practices in the boutique of a competitor, which can directly be adapted to our customer’s best practices.
    29. 29. Yes No Product Launch Event. Cocktail. Dinner. Speech and off home. 7 AM Lunch meeting with Tier 1 Opinion leader. Who last met him? Who can brief me? Pick up red phone for crisis in Denmark. Which favourable opinion leaders could help the local team? Project planning Bloggers Campaign. How can we escalate our influence?Catch up on online news and alerts on Social Media. Get ready for meetings & Q2 report. Check event registration for Regional Authority roundtable. Mail new CSR initiative to 1236 European officials, 955 journalists...and tweet it to 400 followers! 9 AM 11 AM 1 PM 3 PM 5 PM 8 PM Wake. Grab coffee. Scan Blackberry & press review for any issues. Now with the right tools, the new day in the life…
    30. 30. Monitor ReviewMeasure Benchmark A tried and tested formula.
    31. 31. Understanding and optimizing the impact of Campaigns; Monthly, Day to Day Dashboard Categories 1) Elite Audience Profile – Tier, Organization 2) Elite Audience Profile - Topic of Interest 3) Outreach Profile - by Audience, Campaign and Program 4) Outreach Profile – by Activity Measured Outcomes- 360° program visibility Execution metrics (coverage of material issues, communications received, delivery metrics, timing, frequency, channel, preferred source) Quality Metrics (quality of the messages/substance of communications Relevance Metrics (relevance, usefulness of communications) Influence Metrics (contribution of communication to change in perception, commitment level, behavior) Periodic Measurements ("Pulse" or "snapshot" measurements, formal assessments) Activities Output Outcomes
    32. 32. Takeouts • Good crisis mgt is all about preparedness • Practice is as important as the plan • Show empathy, manage expectations and “reach out”. • Be ready with an effective response. • Invest in the appropriate technology to analyse your stakeholders responses to your crisis management tactics across all communications channels.
    33. 33. It takes 20 years to build a reputation and five minutes to ruin it. If you think about it, you'll do things differently - Warren Buffett
    34. 34. Thank you… Leesa Fogarty Vice President Northern Europe & APAC Augure UK Limited +44 (0) 7970 621188