Archive for the ‘Crisis PR’ Category

Crisis PR: Fundamental Change First, then Pro-Active Reputation Management

Thursday, May 23rd, 2013
New Road Ahead?

New Road Ahead?

Posted by Tom Gable

NBC reported that the White House is facing a major PR crisis related to the IRS and other recent issues that have rocketed to the top of news coverage globally. As noted by many PR gurus over the years, this isn’t a PR problem. It is a management problem and deals with the fundamental values of any organization, its operating culture and ability to commit to change, then achieve it.

In crisis PR, the correct approach starts with introspection, critical analysis and long-range thinking. In the short term, recognize the problem, apologize if necessary, pledge to make changes to right the current wrong and prevent its occurring in the future, set a vision for where the changes will go, and then deliver on the promises.

We’ve covered many transgressions in the past two years that provide good lessons for any organization, individual or institution dealing with a management crisis. As referenced in an earlier blog on crisis PR, the concept is simple.

As management guru Peter Drucker noted decades ago: “Management is doing things right; leadership is doing the right things.”

The lessons come from TEPCO and the Fukushima Daiichi Plant in Japan, BP oil disaster in the Gulf of Mexico, Penn State and its molestation scandal, a surge in Toyota recalls, HP management and market turmoil and Tiger Woods, among others, with the classic case being Tylenol. Here are links to the previous posts, which carry a common theme based on the Drucker teachings and sage advice from crisis PR luminaries all over the globe that real values, mission, organizational culture drive crisis PR. Get it right internally, then tell the world.

Communications at the Speed of Light in Crisis PR

Tuesday, July 3rd, 2012

When Crisis Hits

Posted by Tom Gable

Situation: The Twittersphere and blogosphere are exploding with attacks on your company, client, CEO, technology, food quality, lousy customer service, bad earnings report, botched new product introduction, labor dispute, legal action, whatever. You jump into the feeding frenzy of the 20-second (or less) news cycle where the momentum of an attack goes ballistic. How to respond?

One option is to do nothing if the attacks are from the lunatic fringe or deal with a single aberration that runs counter to the reputation you’ve earned over time based on the quality of all that you do.  You may still want to deal with that incident according to established procedures, protocols and process to counter even the most ridiculous post.  The challenge is to avoid an instant, emotional response that escalates the exchange, especially if it’s a difficult or contentious subject.

Instead, get analytical.  If it’s in the Twittersphere, consider the half life of a Tweet, as covered here earlier and where the first option may be the best.  If it appears the flaming will continue, set goals for moving the conversation.  Be consistent in the tones, themes and values being portrayed.  Display cultural authenticity – what you stand for and the essential core values.  Proceed with a human voice (no legalese or corporate speak).

Prepare to track the conversations by the minute as the crisis or issue unfolds. Measure how the conversation moves.  We’ve adopted a simple method that is incredibly easy to record and track the flow: is the message (Tweet, comment, news story, whatever) positive, neutral or negative. The ultimate goal is to be trusted and believed. If starting in a deep hole (three to one against), set your goal to at least break even within a certain period of time and rise into positive territory immediately thereafter (Gable PR used this approach and means of measurement in a issues management campaign that won a PRSA Silver Anvil).

To help focus the effort, Gable PR developed a quick check list to start the conversation with our clients when disaster strikes (the key word is when, not if; be prepared).

  • Source of the communications, legitimacy
  • Issues being raised
  • Internal analysis of accuracy, validity, magnitude of the issues and conversation; duration, desired end-point
  • Analysis of potential impact on reputation of the brand, company, people, technology, etc.
  • Beyond communications, are internal changes needed to the organization, product, service, culture and core values?
  • If analysis indicates the fundamentals of the organization seemingly aren’t lined up with the outside audiences, how to move toward better alignment? (Don’t get hung up in ego. What needs to be done?  By whom?  Course corrections?  How to announce and take leadership?)
  • Launch issues management and Crisis PR plan if required, to include response strategy, core values, messaging, tools, tactics and timing (in some cases, you don’t have to respond immediately, especially when the attacks are emotional and personal)
  • Set goals for moving the conversation
  • Add resources to the Crisis PR team if needed, including outside experts
  • Respond in a sincere, human voice and work to build trust
  • Conduct minute-by-minute tracking, analysis of trending in tone, content
  • Adjust the response strategy and tactics as facts and circumstances indicate
  • Continue to evolve the internal culture and organization as needed
  • Celebrate success!

The Power of PR (or lack of PR) to Move Opinion, Drive Change

Monday, January 30th, 2012

Posted by Tom Gable

The head of a large information technology company forwarded a link to a CNN Money story on “Millions of SOPA lobbying bucks gone to waste” and provided a pithy editorial comment:

“The power of PR!”

Definitely. Smart PR strategists can mobilize public opinion through social and traditional media to make statements, move public opinion and change behaviors. In the case of the Stop Online Piracy Act (SOPA), CNN reported that “The controversial anti-piracy bills that attracted tens of millions of dollars of lobbying for and against the proposed laws ironically were killed by free publicity.”

The story noted:

“Old media companies spent huge sums of money in support of the Stop Online Piracy Act (SOPA) and the Protect Intellectual Property Act (PIPA). Those opposed — Internet and “new media” companies — lobbied hard and spent gobs too, though far less than their more organized rivals. But Silicon Valley had a trick up its sleeve that trumped the millions of dollars more in lobbying muscle and the more established Washington presence of the old media guard: They reached out directly to their users for free.”

The story goes on to cover how Wikipedia shut down for 24 hours and Google blacked out its logo in protest of the bill. The public upheaval forced Congress to drop the bills, at least for now.

On the flip, side, corporations can be overwhelmed by a lack of PR strategic thinking when they launch a new business initiative with properly considering the consequences of their actions. Two recent examples: Bank of America and its $5 ATM charge and Netflix changing its business model.

NPR nailed the issue the day BofA made its announcement:

“JEFFREY BROWN: Big banks and the question of their profits have been the source of plenty of public anger since the beginning of the financial crisis. Now new fees for consumers are putting them in the spotlight again.”

The Los Angeles Times covered local protests, including the occupation of a branch by protesters. Its story offered a keen observation:

“This frankly is just an incredible marketing and PR debacle,” said Bert Ely, an independent banking analyst. “They roll this thing out with no testing, make it nationwide, it’s higher than anybody else. What kind of reaction do they expect?”

Huffington Post and others covered BofA rolling back the fees, with recalcitrant quotes.

For Netflix, as covered by Gable PR earlier, it started by raising prices by 60 percent and came back two months later to apologize while announcing the split of the company into two. They failed from a strategic planning and PR perspective to think about image as a part of corporate strategy, especially when one has built such a strong brand. They need to do things right and also do the right things.

Bottom line: The power of PR and its flip side – lack of strategic PR thinking – are essential for consideration in any action that can impact brand image and reputation.

 

Worst of Breed — PR Plans, Crisis PR, Releases and More

Thursday, January 5th, 2012

 

Image Meltdown

Posted by Tom Gable

In reviewing many recent roundups of PR successes and failures from 2011, including egregious abuses of the language, it appeared a new category of analysis might be tried: Worst of Breed.

The concept is to delve into corporate, institutional or other failures to communicate well and identify if their fatal or near-fatal faults are one-time occurrences or could reside in their DNA, to be passed on to future generations. It could be one bad gene, such as at Penn State, or something that may have metastasized, as with the upper echelons at Tokyo Electric Power. Beyond simply covering the big events, can we also ask for help in shining the light of journalistic verisimilitude on other WOB examples in writing, social media, news releases and other communications driving by PR?

This leads to a two minute survey created to seek broad input on WOB examples for future articles in PRSA Tactics and elsewhere and blog posts. Please click through to take the survey, which offers opportunities to provide your own candidates and links to their transgressions.  This includes nominations for the coveted WOB Lifetime Achievement Award.

Thanks, in advance, for the help, and here’s to a super 2012 for the PR profession!

 

Real values, mission, organizational culture drive crisis PR – a collection of case histories

Thursday, November 17th, 2011

New Road Ahead

Posted by Tom Gable

The Wall Street Journal covered the Penn State crisis and Jason Gay, who usually lights up the fun side of sports, writes that they are dealing with much deeper institutional issues than simply getting on the gridiron and starting the healing process. Questions remain. He asks for answers. But beyond that discovery process, any institution, individual or organization under fire needs to speak to evoking change, what it will look like in the future and how it will make a difference in all that it does.

This brief preamble leads to providing links to six posts in the past 18 months on different elements of crisis PR, case histories and a few recommendations on steps to take at every level – from the corporate suite to the Twittersphere and blogosphere. As noted in the headline: real values, mission, organizational culture drive crisis PR. Get it right internally, then tell the world.

 

Eight Easy Ways to Damage Your Brand Image, Lose 1 Million Customers and $8 Billion in Market Cap the Netflix Way

Monday, September 26th, 2011

Blowing up the Brand

Posted by Tom Gable

Recent analysts reports, coverage in the major media and the Twittersphere are being less than kind to Netflix and its two recent corporate announcements: raising prices by 60 percent; and coming back two months later to apologize while announcing the split of the company into two (Netflix and Qwikster). In looking at it from a strategic planning and PR perspective, the best companies incorporate image as a part of corporate strategy, especially when one has built such a strong brand. They do things right and also do the right things. Netflix appears to have advanced toward bursting its own brand bubble through eight easy steps:

  • Raised prices seemingly without much consideration for the existing customer base, its needs, wants, expectations
  • Went for a big number rather than incremental increases
  • Provided a rationale that didn’t ring true and made many long-term customers feel betrayed by the brand
  • Did it all top down and one-way in a CEO voice rather than human voice
  • Didn’t join the conversation; didn’t use social media to actively engage its many audiences
  • Waited a couple of months to apologize and then do it with an amazing lack of sincerity
  • Seemingly as an afterthought, changed a successful business model to confuse customers, analysts, and the stock market
  • Gave competitors openings to attack, reposition the company, declare pricing advantages

And if you are really successful, here’s what you can expect: 50 percent drop in stock price and market capitalization, enmity versus admiration, lack of support in the financial community (buy and sell side analysts), a zillion Twitter and Facebook comments, a Hitler meme or two, and confusion among consumers on how to order and from whom when you split the company, create a new brand name and dilute the brand image.

David Pogue, columnist for The New York Times, parsed the apology:

“Ah. O.K., good. We’ve seen this movie before. Corporation bumbles, apologizes, makes things right. Business schools take note. Life goes on. But this time, Mr. Hastings did not follow the formula. He only pretended to. He goes on to say that the new higher prices will stick — and, worse, Netflix is about to break off its DVD-by-mail feature into a completely separate entity, called Qwikster.”

The PR and marketing blogs offered good insights.  Mr. Media Training cited six reasons why the apology failed.  Liz Goodgold, of Redfirebranding, provided four ideas Netflix should have used before going down the primrose path to greater profits.

In summary, another NYT story delved into the reasons for raising prices (to generate more income for acquiring content from the major studies for streaming). The “self-inflicted” wounds could have been avoided with better planning for an integrated and strategic evolution of what were in actuality major change initiatives at Netflix.

Crisis PR by Candlelight

Tuesday, September 13th, 2011

Romance not included

Posted by Tom Gable

When power went out in our office at about 3:45 p.m. on Sept. 8, we assumed it was the building, or a local substation, which had trouble before. We quickly learned it was a massive outage stretching from Arizona to San Diego and Orange County into Baja California. At 4 p.m., the Gable PR team was alerted by text messages and emails from one of our clients, a major wireless carrier, that emergency response teams were being mobilized on the ground and virtually to deal with whatever issues arose.

We participated in the first client call at 4:30 and would monitor almost every hour into the night. The virtual response team used processes honed in preparing for hurricanes, such as Irene, to keep San Diegans connected. The backup generators and battery systems deployed as designed when the blackout hit. The network experienced a surge in congestion as San Diegans turned to their cell phones to find out what was happening, locate relatives and friends and deal with the complex issues of having no electricity. The tremendous surge in demand resulted in heavy congestion on the network.

The client response team had anticipated this potential pressure on the backup systems and within thirty minutes of the outage had mobilized its service fleets, technicians and other resources and dispatched them to priority sites throughout the county. Since they weren’t sure how long the outage would last, the team secured extra generators from throughout Southern California as additional backup, plus a fleet of fuel trucks to keep them running.

As client emergency response teams and technicians worked around the clock to restore service, the regional PR team asked Gable PR help in creating statements for the media. They wanted to go on record before the nightly news on local television stations, even though the stations might not be broadcasting and the region could still be without power to watch TV.

So, for the first time since writing on classic Olivetti manual typewriter in the Saigon Bureau of Stars and Stripes during a wartime blackout, I composed by candlelight. This time, I had the benefit of laptop computing. I monitored the regular update calls by the emergency response team on a landline and gathered color for future reports. The local utility warned that the blackout could last a day or two. To ensure our client was on record as early as possible, a draft statement entered the approval chain (PR, technical, legal, etc.) by 9 p.m. By 10:15 p.m. it had been approved and distributed via email to regional media, with follow up calls to the daily newspapers to see if anything else was needed.

Fortunately, power started being restored by 11:15 p.m. in some areas. My power kicked in at 1:15 a.m. The county was almost 100 percent restored by 6:00 a.m. We drafted copy points on the details of the emergency recovery effort and began responding to media queries by 9 a.m.

We had switched to the cloud from our own server, so could access client and agency files via the Internet, including media lists (we had been without email before for three days when a flood knocked out power to the substation serving our office).  Now, for a couple of lessons learned:

  • Whether you are on the cloud or not, have backup copies of media lists on your laptop, or home system, or both; plus printed copies
  • Use landline phones (I used the fax line phone)
  • Text don’t call on your cell phone
  • Have at least one extra laptop battery (or a second laptop)
  • Have a battery-operated radio to monitor news, disaster reports
  • Keep a detailed chronology and save your copy after every sentence
  • Have printed copies of media lists at home and office
  • Know the email addresses the media use for breaking news (e.g. cops@nctimes.com; breaking@uniontrib.com; desk@kfmb.com)
  • Use a hashtag for Tweeting about the incident (#sdblackout)
  • From a standard disaster preparedness standpoint, have flashlights, extra batteries and even camping lanterns for light
  • Drink lots of water
  • And have a good bottle of wine handy to sip late into the evening

 

Cultural and Other Changes Needed First at Japan Nuclear Plant, then Crisis PR

Tuesday, March 22nd, 2011

Image Meltdown

Posted by Tom Gable

The unfolding disaster at the Fukushima Daiichi Plant in Japan will inevitably be positioned as a monumental crisis PR challenge to be addressed by the operator, Tokyo Electric Power Company.

That comes later. First, TEPCO needs to solve its management and culture crisis – a situation perhaps worse than what came to be discovered about BP as the oil from its ruptured rig spread throughout the Gulf Coast.

The concept is simple. As management guru Peter Drucker noted decades ago: “Management is doing things right; leadership is doing the right things.”

TEPCO failed on many fronts in doing things right and also doing the right things – the foundation for positive PR. The Wall Street Journal has dug deep and found a history of failures at the “trouble prone” Daiichi plant. Worse yet, when the earthquake and tsunami struck, the WSJ and New York Times reported that TEPCO hesitated to flood overheating nuclear reactors with seawater because of worries about ruining their investment, even though those steps were included in their emergency plans. The media reported other delays in taking action by the Japanese government, the military and other agencies.

Crisis PR? Yes, plus extensive reputation management after management resignations from TEPCO, criminal indictments, civil lawsuits and pledges by the new management team to make things right and maybe do the right thing.

Then, they face the biggest PR challenge: can they deliver on the new promises?

Managing a PR Crisis in the Age of Social Media

Saturday, February 12th, 2011

Instant News Channels

Posted by Tom Gable

The above title of the CommNexus event in San Diego was intriguing and the syllabus promised to deliver tips and actionable insights to help PR people and others prepare for the unexpected. Is it possible, given the instant news cycle we live in today? Yes, according to members of a panel that represented the news media, a major client and an international PR firm.  And the results are worth sharing.

Liya Sharif, moderator and director of marketing at Qualcomm, outlined the challenges of today’s instant communications and direct attacks on brands, such as Toyota during its recent issues with recalls. It developed a social media strategy after the fact. What should companies thing about and do?

Alex Pham, who’s been with the Los Angeles Times for 11 years and seen it all, outlined her six key tips for being successful in managing crisis in the era of social media.

  1. Have a plan
  2. Be honest
  3. Walk the talk
  4. Respond quickly and aggressively if needed
  5. Hire a pro for an outside point of view
  6. “No comment” doesn’t work

Monte Lutz, senior vice president with Edelman Digital, Los Angeles, said his firm advises clients to first have a plan in place. The pace and cadence of the news cycle has changed to the “24-second news cycle,” so the players need to be ready to move. If an organization doesn’t respond to a crisis almost instantly and accurately, negative information can pop up onto the first page of results generated by any search engine.

“There is a vacuum for content and people are ready to fill it,” Lutz said.

Speed and Persona

He said speed was No. 1, followed by persona. Respondents can’t be “snarky” and should try to adapt a friendly demeanor. Building trust is essential because trust is a major differentiator. He noted that the Edelman Trust Barometer continues to fall as companies and organizations do a poor job connecting authentically with their many target audiences.

As an additional tactic, he suggested buying ads on the search engines with links back to credible background information on the company website.

Rachel Laing, former journalist and now deputy press secretary for Major Jerry Sanders, said to work on trust and relationships early – get people engaged before you need the connections. Be active in Twitter. Follow people in the space, engage new contacts, gain trust and credibility with intelligent Tweets and re-Tweet relevant information for further credibility.

Harnessing Twitter

Laing said government is always in a crisis mode so be prepared. Control the fan page. Never delete comments but you don’t have to respond to “nasty-grams” and perpetuate the madness. If someone is Tweeting badly, follow them back and then direct message (DM) to them with your phone and email to follow up with the facts.

Pham agreed on the use of Twitter and said the tone can differ based on the audience. But “corporate speak” doesn’t work and the responses have to be authentic and friendly in the social media space, to include restating facts since the social media doesn’t operate under the same rules as traditional media.

Traditional media will call, email and conduct extra research to get the facts behind the story. Cooler heads are at work, versus those personally involved and passionate about an issue, or someone who wants to be first with the news, whether totally correct or not. A lot of bloggers aren’t interested in accuracy, she said, so sometimes companies have to go into “hand-to-hand combat.” If you have been engaged and developed loyal followers, they will become your advocates and defend you in times of crisis.

Responding to Traditional Media

The traditional media is also working on the 24-second news cycle. As a result, Pham said companies need to get back to the media faster than ever before, even if it’s to clarify the information that is needed and promise to get back with details as soon as possible. A key: asking “what’s your deadline.”

Have a clear contact on the website so that point person can be found in 10 seconds or less.

Lutz advised companies to anticipate disaster and have dark website pages and dark tabs on Facebook with facts ready to go on a moment’s notice. Planning with the PR firm should include working on the tone and conducting rehearsals. The company can be prepared to be hits own publisher and broadcaster, too, using the different channels (YouTube, Twitter, Facebook, PR, media relations, website, etc.) to get out the word. Embed news releases with pictures, graphs and video if they will help tell the story.

If the opposition has posted a video to YouTube, post your response using the same title and tags as the hit piece. This ensures your quality response shows up immediately.

Organizing the PR Crisis Team

Dan Novak, vice president of global marketing, PR and communications for Qualcomm, said internal plans need to include having a core communications team at the ready and a committee waiting in the wings to be convened that includes legal, government, public relations, investor relations, human resources, IT, and other key units. The plan needs to be based on high values and accountability. The process for launching the plan into action needs to eliminate speed bumps, which can hinder many organizations.

During Q&A, one of the audience asked about how to get clients to commit to a social media program.

The panel’s response: it’s happening whether you participate or not, as evidenced by what happened to BP, Toyota and United Airlines (the guitar incident) when they didn’t respond.

In Crisis PR, Consider the Half-Life of a Tweet or Comment

Wednesday, January 19th, 2011

Too sensitive?

Posted by Tom Gable

How quickly to respond to negative blogs and comments? Gable PR had a recent experience with a client that announced progress with a controversial technology for drug discovery. We anticipated feedback and had assembled an extensive array of data, links and citations for outside validation. Unfortunately, we soon found ourselves in an imbroglio that went far beyond questions on the technology

The CEO, we soon learned, had personal and financial issues in a previous business almost two decades ago. The science story drew mostly positive coverage. A science blogger probed into the technology and a skeptic’s manifesto. Worse, a former girlfriend to the CEO soon added to the comments. She wrote under a pseudonym and blasted the CEO for a bad real estate deal, other business transactions that went sour and even previous jobs held by the wife (personal shopper at Nordstrom). Others popped in via Twitter.

The CFO of the company responded with facts and suggested that perhaps the personal attacks weren’t relevant and bordered on defamation, which generated more personal attacks!

Long story short: the company stopped responding and the commentary died a day later. Lesson learned: answer succinctly and factually to correct the record; don’t get caught up in continuing the negative dialogue and personal attacks, which seems to get progressively worse and more personal once the opposition figures out that the facts are against them.

Understand that the half life of a Tweet is two to five minutes, according to a study of an Audi program that used Twitter for branding, and hot blogging topics, particularly on obscure topics, flame out and die in a day or two.

The plan, then, is to set aside ego, which is often difficult, especially when the attacker and his or her motives are known. Stick to the facts, post and move on. You will be amazed how quickly the issue goes away (well, it never totally goes away, since the Internet is forever).