IAPP - Trust is Terrible Thing to Waste


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The pre-conference workshop entitled 'Trust is a Terrible Thing to Waste' from the 2010 International Association of Privacy Professionals conference in Washington, D.C. The session reviewed why trust is important, how to handle crisis communications, and how to build trust before a crisis hits.

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  • IAPP - Trust is Terrible Thing to Waste

    1. 1. Trust is a Terrible Thing to Waste <br />How to Use Communications to Protect Reputation And Advance Privacy Objectives<br />
    2. 2. The Panel<br /><ul><li>Rosetta JonesHead of Issues ManagementVisa Inc.
    3. 3. John BerardPrincipalCredible Context</li></ul>Joe CarberryPresident, Western RegionThe MS&L Group<br /><ul><li>Dave SteerDirector of MarketingCommon Sense Media</li></li></ul><li>I. The state of trust<br />John Berard, Credible Context<br />
    4. 4. A formula for success<br />Security + Privacy + Performance = Trust<br />
    5. 5. What the data say<br />
    6. 6. We spend a lot on security<br />
    7. 7. Businesses are substantially increasing their expenditure on security software, despite the economic slowdown.<br />Gartner (2008)<br />
    8. 8. Finding #3. Yet far fewer executives are<br /> actually “cutting security back”. And among<br /> the half or less that are taking action, most<br /> are taking the least dramatic response.<br />Global State of Information Security Survey<br /> (PwC, CIO & CSO Magazines 2010)<br />
    9. 9. We talk a lot about the money we spend.<br />
    10. 10. Google “IT security spending” and you get 47 million results.<br />Bing it and you get 36 million results<br />
    11. 11. We spend a lot on product performance.<br />
    12. 12. Federal research & development totaled <br />$150 billion in 2007.<br />
    13. 13. $225 billion in annual corporate research & development spending in the U.S.<br />Business Roundtable 2010 CEO Survey<br />
    14. 14. About 200,000 new products introduced globally each year.<br />
    15. 15. We talk a lot about the money we spend.<br />
    16. 16. Bing “new product research and development” and you get 2.2 million results<br />Google it and you get 73 million results<br />
    17. 17. We spend a lot on privacy.<br />
    18. 18. Significant investment in privacy<br />Technology<br />Compliance monitoring<br />Data collection & handling procedures<br />Training<br />
    19. 19. We DON’T talk a lot about the money we spend.<br />
    20. 20. We allow our story to be told by failures.<br />
    21. 21. Since 2005, the Privacy Rights Clearinghouse says that 350 million individual records have been breached.<br />
    22. 22. In the last year, according to the Identity Theft Resource Center, 6.3 million records were affected in 218 breaches.<br />
    23. 23. The business effect of misuse<br /> It costs $6.6 million on average when an organization suffers a data breach, and more than $200 per compromised record, according to a survey conducted by the Ponemon Institute.<br />
    24. 24. Just as with security and performance, we can get a return on our privacy investment.<br />
    25. 25. The nature of online privacy<br />Control, not anonymity<br />
    26. 26. Reflected in the percentages<br />About half of us Google ourselves<br />That’s twice what it was a few years ago<br />But only about 3 in 100 do it regularly<br />60 percent of us are not worried about the volume of online information about us<br />More than half of us Google others<br /><ul><li>Pew Internet & American Life Project</li></li></ul><li>Microsoft’s Boyd put it this way:<br /> “When they feel as though control has been taken away from then or when they lack the control they need to do the right thing, they scream privacy foul.”<br /> Witness: Facebook, Google<br />
    27. 27. Consumer’s view<br />We care greatly about privacy<br />We don’t do much about it<br />Pew, too<br />
    28. 28. This is the opening for communications<br />More than managing risk<br />More than damage control<br />Adding an accelerant to the formula for success<br />Security + Privacy + Performance = Trust<br />
    29. 29. Public value of the investment<br />Communications is the key to unlocking a market return on the investment already made.<br />
    30. 30. The first question to ask is:<br />Who are you?<br />
    31. 31. II. When Trust is Broken<br />Joe Carberry, The MS&L Group<br />
    32. 32. What we’re talking about<br /> How should I respond if/when data is misused or stolen? <br />Current Public Environment<br />Managing Through Crisis <br />Case Study Exercise<br />
    33. 33. The Environment<br />
    34. 34. What we’re up against…<br />
    35. 35. The Risk<br /><ul><li>Electronic data widespread in every industry
    36. 36. Hundreds of publicly reported breaches; many more not disclosed
    37. 37. The number of breaches continues to increase year-over-year 
    38. 38. Only 36% of C-suite confident they won’t suffer breach * 
    39. 39. Cost of breach now $6.6 million *</li></ul>As more and more business is conducted and recorded via electronic means, risks related to data and privacy will increase. <br />*Ponemon Institute<br />
    40. 40. The Point?<br />Data misuse/theft not question of “if” but “when”<br />Crises often happen in full view, in real time – with significant impact<br />More at risk in a data breach than just data <br />
    41. 41. Bottom Line<br />“A promise must never be broken.”<br />- Alexander Hamilton<br />
    42. 42. Managing a Breach of Trust<br />
    43. 43. What Makes a Crisis?<br />Can be triggered by various kinds of events: <br />Operational failures<br />Malfeasance <br />Human error<br />Natural disasters <br />Business set-backs<br />Competitor or third-party attacks<br />An issue becomes a “crisis” when the organization’s business prospects are threatened in the eyes of its stakeholders<br />You do not define “crisis” – someone else does<br />Crisis rule #1: somebody always find out. Always.<br />
    44. 44. A Crisis Subtracts Value<br />Crises undermine stakeholder confidence in an organization: <br />Short- and long-term growth potential<br />Sustainable return on capital<br />Quality (focus) of management<br />Ability to manage risk to the business<br />Source: Adapted from McKinsey<br />
    45. 45. Managing Risk<br />Legal Risk<br />Patchwork quilt of state and federal regulations<br />Litigation exposure<br />Protection: Sound legal counsel<br />Operational Risk<br />Validate and comply with industry standards (i.e., PCI DSS)<br />Work with appropriate vendors, technology<br />Protection: Ongoing diligence, best practices<br />Reputational Risk<br />Reputation impacts business (customers, employees, suppliers, investors, etc.)  <br />Reputational risk often overlooked  <br />Protection: Preparation, established crisis protocols<br />*Ponemon Institute<br />** Harris Interactive Poll<br />
    46. 46. Who Cares?<br />43<br />Customers<br />SalesChannel<br />Investors<br />Organization<br />Supply Chain<br />Policymakers<br />Local Community<br />Employees<br />On which stakeholders do you rely for success? What do they think?<br />
    47. 47. What Can You Do?<br />Be Prepared <br />Success proportionate preparation  <br />Activate crisis response at first sign of exposure<br />Move Quickly   <br />Early and honest communication<br />Someone else shaping news robs you of control<br />Take Action <br />Work to resolve underlying issue  <br />People perceive data as “theirs”, not the company’s  -- demonstrate stewardship<br />Individual should remain the “north star”  <br />Be Responsible  <br />Facing fear and suspicion – respond with transparency and responsibility<br />Consumers will forgive mistakes, but failure to act responsibly. <br />
    48. 48. Keep in Mind<br />Taking Responsibility<br />is not the same as <br />Taking the Blame<br />
    49. 49. The Message<br />What stakeholders generally want to hear:<br />You’ve stopped the bleeding Make sure the problem is no longer occurring.<br />You’re making amendsTake steps to address the impact among affected parties (not the same as admitting guilt).<br />It’ll never happen againTake steps to ensure similar issues don’t happen in the future.<br />
    50. 50. Crisis Protocol<br />
    51. 51. Stage 0: Preparation<br /><ul><li>Risk Assessment
    52. 52. Early Warning System
    53. 53. Crisis/Situation Protocol
    54. 54. Monitoring (especially digital)</li></ul>Objective: Prepare for Action<br />
    55. 55. Stage 1: Crisis Breaks<br /><ul><li>Confirm viability of issue, pertinent details
    56. 56. Assemble a Crisis Response Team
    57. 57. Put in place tracking tools</li></ul>Objective: Assessment & Strategy<br />
    58. 58. Stage 2: Rapid Response<br /><ul><li>Establish “War Room”
    59. 59. Identify impacted stakeholders and expectations
    60. 60. Disseminate info to stakeholders quickly, frequently
    61. 61. Correct inaccuracies quickly
    62. 62. Manage digital impact – address contagion</li></ul>Objective: Take Control<br />
    63. 63. Stage 3: Ongoing Crisis<br /><ul><li>Story will evolve
    64. 64. Plan for additional challenges
    65. 65. New information
    66. 66. Critics
    67. 67. Catalog business remediation steps
    68. 68. Countermeasures</li></ul>Objective: Focus on Solutions<br />
    69. 69. Stage 4: Post-Crisis<br /><ul><li>Understand impact on stakeholders
    70. 70. Explore business changes related to situation
    71. 71. Examine tactics to rebuild reputation
    72. 72. Conduct debrief; identify areas for improvement</li></ul>Objective: Rebuild<br />
    73. 73. Case Study Exercise<br />
    74. 74. The Environment<br />Trust of large corporations is low<br />Security is pervasive issue in news media <br />Lots of online chatter about data breaches<br />Half of consumers cite privacy/security as a top concern<br />Legislators eager to protect consumers<br />
    75. 75. The Situation<br />XYZ.Com is a major online retailer<br />The company has experienced a data breach<br />Tens of millions of accounts; three years<br />Payment information stored in violation of PCI standards<br />Customers’ names, card numbers and expiry dates involved<br />Forensic investigation underway; external auditors<br />US Secret Service investigating<br />Card companies are aware; spotting fraud patterns <br />
    76. 76. Financial Institutions<br />Suppliers<br />Customers<br />XYZ<br />Online Community<br />Policymakers<br />Stakeholders<br />Employees<br />Shareholders<br />Law Enforcement<br />
    77. 77. Your Challenge<br />Competing stakeholder needs<br />US Secret Service requesting delay in public disclosure<br />Financial institutions want all available information, ASAP<br />Federal legislators have called for immediate disclosure of all breaches<br />Polling data show consumers want disclosure, but less likely to do business with breached organization<br />30 state statutes require immediate disclosure to impacted consumers<br />High risk associated with disclosure<br />Potential for brand damage with disclosure<br />Litigation risk of disclosing<br />Broad consumer disclosure drives customer services costs – at XYZ and associated parties (banks)<br />
    78. 78. The Wall Street Journal calls; they have the story... <br />What do you do?<br />
    79. 79.
    80. 80. Your Response<br />Who is involved? Who is most impacted?<br />Who should be at the table internally?<br />What do you do first?<br />Do you disclose publicly? When and how?<br />What should you say?<br />What business changes do you recommend to management?<br />What can you do to restore trust?<br />
    81. 81. Remember…<br />Misuse/theft of data creates risk<br />Breach reduces trust<br />Lower trust impacts brand/reputation<br />Tarnished brand/reputation harms business <br />Crisis response should be well planned, aligned  <br />This is not about “spin”<br />
    82. 82. Rahm Emanuel…<br />“You don’t ever want a crisis to go to waste.”<br />
    83. 83. QUESTIONS?<br />
    84. 84. BREAK<br />
    85. 85. III. Making Your Case<br />Rosetta Jones, Visa Inc.<br />
    86. 86.
    87. 87. What is Visa?<br />What We Are<br />What We Are Not<br />Global payments technology company<br />Transaction-processing network that connects cardholders, merchants and financial institutions<br />Credit card issuer<br />Lender<br />Exposed to consumer credit risk<br />Payments technology company that helps power the global economy.<br />
    88. 88. Statistical Overview<br />Visa Inc. is the world’s largest retail electronic payments network, with more than $4.4 trillion transacted on our payment products over the four quarters ended Dec. 31, 2009.<br />Total Volume*<br />*<br />Visa Cards<br />1.8B<br />16,100<br />1.6M<br />ATMs***<br />Financial Institution Customers<br />Visa Inc. Operates the world’s largest retail electronic payments network*<br />$2.8T<br />$4.4T<br />Payments Volume<br />Total Transactions****<br />Statistical data in U.S. dollars; ATMs, financial institutions and cards based on four quarters ended Sept. 30, 2009.<br />Excludes Visa Europe, unless otherwise noted<br />*Based on payments volume, total volume, number of transactions and number of cards in circulation. Figures are rounded.<br />** Includes payments and cash transactions.<br />*** As reported by client financial institutions and therefore may be subject to change; includes merchant outlets and ATMs in the Visa Europe territory.<br />**** Includes payments and cash transactions.<br />62B<br />Visa Confidential<br />
    89. 89. Payment Security = Data Privacy<br />Cash Perceived Safest at POS<br />Privacy/no personal information cited as leading reason<br />Even those very comfortable with emerging technology only give mobile phones a score of 4.2.<br />I’m going to read you some ways you can pay for things at a store and please tell me how safe you think each form of payment is on a scale from 1 to 10 where 1 is not at all safe and 10 is very safe…<br />69<br />
    90. 90. Integrating Security….<br />Print advertising<br />
    91. 91. Integrating Security….<br />Brand advertising<br />
    92. 92. Integrating Security….<br />Client Marketing<br />
    93. 93. Integrating Security….<br />Corporate Social Responsibility<br />
    94. 94. Debit Breach Response<br />Visa debit is fastest growing product<br />An integrated response program that included advertising, PR, pre and post campaign tracking, and data analysis<br />“Security breaks could curtail debit card use….”<br />March 13, 2006<br />
    95. 95. Security is Visa Asset<br />By a large margin more cardholders view Visa as a part of the solution on the issue of fraud than believe it is part of the problem.<br />Visa Job Approval<br />Total Approve Total Disapprove Strongly Approve Net Approve<br />Thinking specifically about Visa, from the same list of issues please tell me whether you approve or disapprove of the job Visa is doing to handle that issue…<br />Highlighted Data Slides<br />75<br />
    96. 96. Top 109 List<br />1<br />Listen. Ask questions of key internal influencers about fears, opportunities, internal product development.<br />Get smart. Know who’s saying what about you outside the company and the vulnerabilities inside the company. <br />Start with the bottom-line; demonstrate growth opportunity or barrier to growth that can/should be addressed.<br />Use reason, not passion. Only the emotion will be heard.<br />Be the voice of the customer.<br />Make it objective -- DATA, DATA, DATA.<br />Bring the company along.<br />Use the experience of the dead bodies that have forged the privacy path before you.<br />All else fails, fear works<br />2<br />3<br />4<br />5<br />6<br />7<br />8<br />9<br />
    97. 97. IV. BUILDING TRUST<br />Dave Steer, Common Sense Media<br />
    98. 98. What we’re talking about<br />How do I market trust and privacy?<br />Why privacy is important to marketers<br />What you can do to make trust and privacy a differentiator<br />
    99. 99. Why is trust so important?<br />
    100. 100. First, a question…<br /> WHAT ARE THEY DOING TO BE <br />MOST TRUSTED IN PRIVACY?<br />Source: TRUSTe/Ponemon 2009<br />
    101. 101. Sometimes there is tension between marketing and privacy people<br />“I just want to be able to better target our message to the right consumer”<br />“This will make for a better customer experience since they’ll only see what’s important to them”<br />“Telling them about our policies is a distraction. It should be about our product benefits.”<br />
    102. 102. But trust is vital for marketers.<br />Trust = Brand Advantage<br />Privacy creates an opportunity for a trusted relationship with consumers which enables companies to differentiate their brands<br />
    103. 103. “The Great Trust Offensive”<br />“…trust is the number one driver of any brand at the most fundamental level. <br /> We buy what we trust and keep buying; familiarity and trust are big, big drivers of loyalty and brand value.”<br />Andy Bates, CEO, Interbrand<br />
    104. 104. But with privacy, it’s complicated<br />
    105. 105. Which is why most companies play defense<br />“I can’t help noticing that more and more technology companies are exposing people’s information publicly and then backpedaling a few weeks out.”<br />danahboyd, Harvard Berkman Center<br />
    106. 106. Building trust<br />
    107. 107. Brands focus on building credibility<br />The Credibility Lifecycle<br />Source: Stanford, B.J. Fogg, 2002<br />
    108. 108. A ‘trust lens’ of messaging & programs<br /> Reassurance: Show the protections that are in place, the company, what others say, etc.<br /> Education: Enable people to protect themselves, show what you are doing<br />Support: ‘Being there’ when something goes wrong. <br />Source: Stanford, B.J. Fogg, 2002<br />
    109. 109. So, how can you build trust?<br />
    110. 110. 1. LISTEN TO your customers and embrace two-way communication<br />The proposed Facebook privacy policy received thousands of comments<br />
    111. 111. 2. Have a clear, compelling message<br />Start by answering these questions…<br />Who is the target audience?<br />What is your single key message?<br />What is the benefit of your privacy program?<br />Why should they care?<br />What are the barriers to them understanding your message<br />The toughest part is balancing simplicity with<br />transparency<br />
    112. 112. 3. BUILD privacy messaging into the EXPERIENCE<br />A typical customer experience<br />What privacy questions will they ask?<br />When will they ask?<br />How can you reassure, support, and educate?<br />
    113. 113. 4. Educate, educate, educate<br />About safe, responsible BEHAVIOR<br />About safe uses of your PRODUCT<br />
    114. 114. 4. Safe, responsible behaviors…<br />
    115. 115. 4. PRODUCT safety<br />
    116. 116. 5. Tell people what you’re doing to protect them<br />
    117. 117. Summing it up<br />Listen to your customers – and embrace 2-way communication<br />Develop a clear, compelling message<br />Build privacy messaging and support into the brand experience<br />Educate, educate, educate<br />Tell them how you are protecting them<br />
    118. 118. Remember<br />Trust = Brand Advantage<br />Privacy creates an opportunity for a trusted relationship with consumers which enables companies to differentiate their brands<br />
    119. 119. V. Putting it all together<br />John Berard, Credible Context<br />
    120. 120. Bringing it all together<br />Security + Privacy + Performance = Trust<br />Trust = Brand Advantage<br />
    121. 121. Thank You.<br />
    122. 122. The Panel<br /><ul><li>Rosetta JonesHead of Issues ManagementVisa Inc.704.444.3815rjones@visa.com
    123. 123. John BerardPrincipleCredible Context415.845.4388john@crediblecontext.com</li></ul>Joe CarberryPresidentWestern U.S. Region415.293.2805joe.carberry@mslworldwide.com<br /><ul><li>Dave SteerDirector of MarketingCommon Sense Media415.845.5110dsteer@commonsensemedia.orgwww.steermarketing.netwww.twitter.com/steerdave</li>