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PRSA Workshop May 6, 2009 Tony Lentini, Pixel Creative Group CRISIS MANAGEMENT WORKSHOP PRSA – May 6, 2009 Tony Lentini, P...
<ul><li>38 years Crisis Management, Media Training & PR/Corporate Communications </li></ul><ul><li>U.S. Army </li></ul><ul...
<ul><li>It  can  happen to you! </li></ul><ul><li>Protect reputation & franchise </li></ul><ul><li>Save valuable product o...
<ul><li>Understand BIG PICTURE:  What’s at risk; what will it take to fix problem? </li></ul><ul><li>Potential long- & sho...
<ul><li>7 dead in Chicago: cyanide-laced Extra-  Strength Tylenol capsules </li></ul><ul><li>Tylenol a top brand.  Market ...
<ul><li>Enron put AA on defensive </li></ul><ul><li>Document shredding, dishonest audits severely damaged reputation </li>...
<ul><li>Management, employee buy-in </li></ul><ul><li>Notification system </li></ul><ul><li>Crisis Management Team </li></...
<ul><li>Proactive approach: news media and community </li></ul><ul><li>Retains Crisis Management Consultant </li></ul><ul>...
<ul><li>Drill, drill, drill:  Periodic, unannounced tabletop exercises </li></ul><ul><li>Test notification system </li></u...
<ul><li>Spokesperson depends on nature, location, severity of crisis </li></ul><ul><li>Train PR staff </li></ul><ul><li>Tr...
<ul><li>Two types of media training:  </li></ul><ul><li>1) “Boot camp” </li></ul><ul><li>2) Positive reinforcement </li></...
<ul><li>On-camera practice interviews </li></ul><ul><li>Experience:  Ideally, trainer has been on both sides of camera </l...
<ul><li>Essential skill for corporate communicators </li></ul><ul><li>Your audience?  Your goal? </li></ul><ul><li>Limit m...
<ul><li>Experience, contacts from handling many crises </li></ul><ul><li>Saves time when timing is critical </li></ul><ul>...
<ul><li>Trust begins at home: To gain seat at Crisis Management table, PR needs credibility with senior management </li></...
<ul><li>Develop evacuation, relocation plan for key management, operations, critical support functions </li></ul><ul><li>S...
<ul><li>An invisible page on Web site, activated when need occurs </li></ul><ul><li>Platform for internal and/or external ...
<ul><li>Respond (put out the fire) </li></ul><ul><li>Ensure senior management, appropriate departments notified </li></ul>...
<ul><li>Draft media statement </li></ul><ul><li>Anticipate media questions/develop answers </li></ul><ul><li>Notify media?...
<ul><li>Answer as many of the five W’s as you can </li></ul><ul><li>Take responsibility for resolving the crisis </li></ul...
<ul><li>Relatively minor events usually may be handled by a skilled spokesperson in your PR department through a brief sta...
<ul><li>Social media (Blogs, Twitter, etc.) emerging & evolving:  Be  very  careful using “New Media” in a crisis </li></u...
<ul><li>Be sure of your facts—Rather’s evidence in Bush National Guard story debunked by blogging typewriter experts </li>...
<ul><li>Post-mortem:  What went right, what went wrong </li></ul><ul><li>Update, change crisis plan accordingly </li></ul>...
<ul><li>Working for Middle South Utilities March 28, 1979: Three Mile Island nuclear plant accident near Harrisburg, PA </...
<ul><li>Middle South: one nuke plant operating in Arkansas, four under construction in Arkansas, Mississippi & Louisiana <...
<ul><li>Service-area-wide road show on TMI and nuclear safety (PR rep. and Nuclear Engineer) </li></ul><ul><li>Conducted m...
<ul><li>Late ‘80s protests against in-room “porn” at Holiday Inn hotels organized by American Family Association </li></ul...
<ul><li>Research:  Watched movies (softcore & stupid), angering both pro- and anti-porn guests </li></ul><ul><li>Cost of b...
<ul><li>Motorists report crude oil bubbling through highway serving airport near Hobbs, NM </li></ul><ul><li>Apache field ...
<ul><li>June 2007:  Offshore driller announces possible FCPA problem related to “facilitating payments” to Nigerian custom...
<ul><li>Tony Lentini </li></ul><ul><li>Lentini Creative Communications </li></ul><ul><li>www.CrisisManagers.com </li></ul>...
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Crisis Management Workshop

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Practical information for Companies and organizations on Crisis Management

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  • Transcript of "Crisis Management Workshop"

    1. 1. PRSA Workshop May 6, 2009 Tony Lentini, Pixel Creative Group CRISIS MANAGEMENT WORKSHOP PRSA – May 6, 2009 Tony Lentini, Pixel Creative Group
    2. 2. <ul><li>38 years Crisis Management, Media Training & PR/Corporate Communications </li></ul><ul><li>U.S. Army </li></ul><ul><li>Middle South Utilities (Entergy) </li></ul><ul><li>Mitchell Energy & Development </li></ul><ul><li>Holiday Corp. (Holiday Inn) </li></ul><ul><li>Apache Corporation </li></ul><ul><li>Consulting </li></ul>
    3. 3. <ul><li>It can happen to you! </li></ul><ul><li>Protect reputation & franchise </li></ul><ul><li>Save valuable product or service </li></ul><ul><li>Reduce liability </li></ul><ul><li>Identify resources, contacts well in advance </li></ul><ul><li>Train & drill before it hits the fan </li></ul><ul><li>Perception = reality </li></ul><ul><li>Confidence breeds confidence </li></ul>
    4. 4. <ul><li>Understand BIG PICTURE: What’s at risk; what will it take to fix problem? </li></ul><ul><li>Potential long- & short-term impacts on your organization </li></ul><ul><li>Potential costs of resolution (money, people, reputation, market share) </li></ul>
    5. 5. <ul><li>7 dead in Chicago: cyanide-laced Extra- Strength Tylenol capsules </li></ul><ul><li>Tylenol a top brand. Market share dropped from 37% to 7% </li></ul><ul><li>Johnson & Johnson $100 million+ product recall </li></ul><ul><li>Re-introduced: Tamper-proof packaging, steep discounts </li></ul><ul><li>2,250 sales reps made presentations to medical community to restore confidence </li></ul><ul><li>Tylenol saved; 1-yr. market share rebound </li></ul>
    6. 6. <ul><li>Enron put AA on defensive </li></ul><ul><li>Document shredding, dishonest audits severely damaged reputation </li></ul><ul><li>Franchise could have been saved </li></ul><ul><li>Cost: senior management resignations, self-reporting to DOJ, SEC </li></ul><ul><li>“ Circle-the-wagons” mentality killed AA </li></ul>
    7. 7. <ul><li>Management, employee buy-in </li></ul><ul><li>Notification system </li></ul><ul><li>Crisis Management Team </li></ul><ul><li>Lawyers on CMT but not in charge </li></ul><ul><li>Fact files on all facilities: Risks, contact information, government/public safety officials </li></ul><ul><li>Maps of nearby communities, roads, for evacuation planning </li></ul>
    8. 8. <ul><li>Proactive approach: news media and community </li></ul><ul><li>Retains Crisis Management Consultant </li></ul><ul><li>Establishes Issue Management system </li></ul><ul><li>Strategic focus, BEYOND immediate crisis </li></ul><ul><li>Drills & training </li></ul><ul><li>Business continuity plan </li></ul>
    9. 9. <ul><li>Drill, drill, drill: Periodic, unannounced tabletop exercises </li></ul><ul><li>Test notification system </li></ul><ul><li>Test mobilization of CMT </li></ul><ul><li>Test functioning of operations, PR, etc. </li></ul><ul><li>Critique and adjust plan </li></ul>
    10. 10. <ul><li>Spokesperson depends on nature, location, severity of crisis </li></ul><ul><li>Train PR staff </li></ul><ul><li>Train field managers </li></ul><ul><li>CEO definitely needs training </li></ul><ul><li>Manage not just messages, but appearance & demeanor </li></ul>
    11. 11. <ul><li>Two types of media training: </li></ul><ul><li>1) “Boot camp” </li></ul><ul><li>2) Positive reinforcement </li></ul><ul><li>Successful media interviewing not rocket science, does require training </li></ul><ul><li>Training should empower spokespeople; humiliation makes them wary </li></ul><ul><li>Boot-camping your CEO could be hazardous to your career </li></ul>
    12. 12. <ul><li>On-camera practice interviews </li></ul><ul><li>Experience: Ideally, trainer has been on both sides of camera </li></ul><ul><li>Scenario-specific to your company </li></ul><ul><li>Crisis & non-crisis training equally important </li></ul><ul><li>Small groups best, but train CEO separately </li></ul><ul><li>Don’t attempt to train senior management yourself </li></ul>
    13. 13. <ul><li>Essential skill for corporate communicators </li></ul><ul><li>Your audience? Your goal? </li></ul><ul><li>Limit messages </li></ul><ul><li>Support with sound bites, statistics, colorful anecdotes </li></ul><ul><li>Anticipate questions, develop answers </li></ul><ul><li>Learn transitioning </li></ul><ul><li>Take charge & stick to messages </li></ul>
    14. 14. <ul><li>Experience, contacts from handling many crises </li></ul><ul><li>Saves time when timing is critical </li></ul><ul><li>Expertise in variety of necessary disciplines (Crisis Management, PR, media training) </li></ul><ul><li>Outsider’s perspective </li></ul><ul><li>Can tell management things an employee may be reluctant to address </li></ul>
    15. 15. <ul><li>Trust begins at home: To gain seat at Crisis Management table, PR needs credibility with senior management </li></ul><ul><li>Get to know reporters, public safety officials before a crisis occurs </li></ul><ul><li>Contact lists must be part of your plan </li></ul><ul><li>Trust trumps natural skepticism </li></ul><ul><li>EXXON’s big problem during Valdez: No relationships, therefore no trust </li></ul>
    16. 16. <ul><li>Develop evacuation, relocation plan for key management, operations, critical support functions </li></ul><ul><li>Secure offsite storage of records </li></ul><ul><li>Transportation plan for relocation </li></ul><ul><li>Backup communications (satellite phones, alternate servers) </li></ul><ul><li>Establish office-closure notification system for employees </li></ul>
    17. 17. <ul><li>An invisible page on Web site, activated when need occurs </li></ul><ul><li>Platform for internal and/or external crisis updates </li></ul><ul><li>Mechanism for informing employees of office closures and activation of business continuity plan </li></ul><ul><li>Intranet link can perform same function </li></ul>
    18. 18. <ul><li>Respond (put out the fire) </li></ul><ul><li>Ensure senior management, appropriate departments notified </li></ul><ul><li>Ensure required government/regulatory notifications accomplished </li></ul><ul><li>Gather facts </li></ul><ul><li>Determine whether Crisis Management Team should be activated, designate spokesperson </li></ul>
    19. 19. <ul><li>Draft media statement </li></ul><ul><li>Anticipate media questions/develop answers </li></ul><ul><li>Notify media? </li></ul><ul><li>Respond to queries with statement; </li></ul><ul><li>Update as new information becomes available </li></ul><ul><li>Try to make it a one-day story </li></ul>
    20. 20. <ul><li>Answer as many of the five W’s as you can </li></ul><ul><li>Take responsibility for resolving the crisis </li></ul><ul><li>Tell the truth </li></ul><ul><li>Don’t speculate </li></ul><ul><li>Don’t announce names of deceased/injured </li></ul><ul><li>Don’t discuss blame, insurance coverage, causes </li></ul><ul><li>“ It’s under investigation” </li></ul>
    21. 21. <ul><li>Relatively minor events usually may be handled by a skilled spokesperson in your PR department through a brief statement </li></ul>
    22. 22. <ul><li>Social media (Blogs, Twitter, etc.) emerging & evolving: Be very careful using “New Media” in a crisis </li></ul><ul><li>Informal communication can backfire or give story “legs” </li></ul><ul><li>If you engage social media, treat as any other news medium (be on your toes) </li></ul><ul><li>One or two Blog messages do not make a trend </li></ul><ul><li>Be selective in choosing which to engage </li></ul>
    23. 23. <ul><li>Be sure of your facts—Rather’s evidence in Bush National Guard story debunked by blogging typewriter experts </li></ul><ul><li>Experts abound on Internet </li></ul><ul><li>Everybody has a camera!!! </li></ul><ul><li>Internet becoming go-to place for news </li></ul><ul><li>Rather, mainstream media ignored blogs, to their detriment </li></ul>
    24. 24. <ul><li>Post-mortem: What went right, what went wrong </li></ul><ul><li>Update, change crisis plan accordingly </li></ul><ul><li>Take steps to prevent crisis from occurring again </li></ul><ul><li>Update safety procedures, operational protocols, training, as needed </li></ul><ul><li>Communicate with employees & stakeholders </li></ul>
    25. 25. <ul><li>Working for Middle South Utilities March 28, 1979: Three Mile Island nuclear plant accident near Harrisburg, PA </li></ul><ul><li>Partial core meltdown in Unit 2 when coolant relief valve stuck & operators failed to recognize implications </li></ul><ul><li>TMI attracted worldwide attention </li></ul><ul><li>“ The China Syndrome” motion picture released 12 days before TMI </li></ul>
    26. 26. <ul><li>Middle South: one nuke plant operating in Arkansas, four under construction in Arkansas, Mississippi & Louisiana </li></ul><ul><li>President of Arkansas subsidiary erred by public announcement of precautionary shutdown </li></ul><ul><li>Middle South’s nuclear program in jeopardy </li></ul>
    27. 27. <ul><li>Service-area-wide road show on TMI and nuclear safety (PR rep. and Nuclear Engineer) </li></ul><ul><li>Conducted media interviews </li></ul><ul><li>Prepared booklet: Nuclear Power in the Post-Three Mile Island Era (distributed nationwide); </li></ul><ul><li>Featured nuclear power, safety in annual report that year </li></ul><ul><li>Proactive approach saved company’s nuclear program </li></ul>
    28. 28. <ul><li>Late ‘80s protests against in-room “porn” at Holiday Inn hotels organized by American Family Association </li></ul><ul><li>Holiday’s PR staff manned “war room” during annual protests: monitoring, providing media interviews, advising hotel managers </li></ul><ul><li>Holiday Inn’s market: middle-class families; protests harming franchise </li></ul>
    29. 29. <ul><li>Research: Watched movies (softcore & stupid), angering both pro- and anti-porn guests </li></ul><ul><li>Cost of breaking contract less than $200,000 (wasting that much staff time in “war rooms”) </li></ul><ul><li>Solution: Bought out contract; protests ended; brand protected </li></ul>
    30. 30. <ul><li>Motorists report crude oil bubbling through highway serving airport near Hobbs, NM </li></ul><ul><li>Apache field personnel determine it “might” be from company production </li></ul><ul><li>Solution: Act first; determine ownership later </li></ul><ul><li>Took responsibility, worked with local authorities to shut in highway, repair leak </li></ul><ul><li>Highway reopened within day. Public kudos from highway patrol, airport officials </li></ul>
    31. 31. <ul><li>June 2007: Offshore driller announces possible FCPA problem related to “facilitating payments” to Nigerian customs officials </li></ul><ul><li>Noble Corp. recognizes it may have same issue </li></ul><ul><li>Solution: Take charge. Self-report to DOJ, SEC; internal Board investigation; examine practices worldwide; announce to media (anticipate all questions) </li></ul><ul><li>Resolution: Stock price up on announcement; no fines, prosecutions </li></ul>
    32. 32. <ul><li>Tony Lentini </li></ul><ul><li>Lentini Creative Communications </li></ul><ul><li>www.CrisisManagers.com </li></ul><ul><li>[email_address] </li></ul><ul><li>PR/Crisis Management Counsel </li></ul><ul><li>Pixel Creative Group </li></ul><ul><li>2801 Post Oak Blvd., Suite 101 </li></ul><ul><li>Houston, TX 77056 </li></ul><ul><li>Mobile: 713-907-5841 </li></ul><ul><li>Office: 713-622-9293 </li></ul><ul><li>www.pixelcreative.com </li></ul>
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