3. The advent of social media and the greater number of relationships in increasingly global supply chains has led to the number of crises soaring in recent times
4. However, whilst there is arguably more risk, there is most definitely more opportunity to engage
5. How crises spread today • Social media plays a significant part • 28% of crises spread internationally within the first hour • On average it takes 21 hours for companies to produce a statement • 1 year later 53% of companies had not recovered pre crisis share level
6. We asked 150 communication directors... • What happens if the crisis breaks out of hours?
• How do I get my (wider) team together quickly? • How can I be sure I am across things as they happen?
• How do we draw up and approve statements efficiently?
• Can everyone access the crisis knowledge?
7. The results • 93% of comms professionals have dealt with a crisis
• 1/3 worry about their organisation’s speed of response
• 1/3 doubt their team’s skills/experience
• 4 out of 10 worry about keeping up with what is being said
• 57% of companies spend less than 3 days a year preparing and training for a crisis
8. Crises today • More intense • More frequent • Larger impact on value • Multichannel • Sophisticated
9. Greenpeace, Shell & Lego • Sophisticated attack • Shell and Lego broke their contract after just 4 months of intense lobbying • Nearly 7m YouTube views to date of Greenpeace video • 1m signatures of online petition within 2 months
10. Ousting the outsiders? • China has a $174bn fast food market and KFC and McDonalds hold the top 2 spots in that market
• Yum! Brands, which operates KFC, garners more than 40% of its total operating profit from China
• Following supply chain exposé, Yum shares fell 4.2 percent to close at $74.13
• McDonald's shares lost 1.5 percent to $97.55
