Two weeks ago, we asked PR professionals to weigh in on how well Edward Liddy, the CEO of AIG, did in his testimony before Congress on the controversy involving bonus payments to employees of AIG, which had suffered billions of dollars in losses and received bailout money from the U.S. Government. The survey also asked how respondents felt the media covered the CEO and his testimony and how they would rate media coverage of business in the United States in general.A link to the survey was sent to 287 individuals and 12 responded, or 4.2 %. Several of those responding sent personal emails that added more detail to their rankings. It was good to see pros with 15 to more than 30 years of experience taking the time to reply. They noted that breaking even or coming in just slightly tarnished versus trashed would be a great outcome in this type of media circus. These were good insights and reasonable expectations.
Bottom line: the CEO did a good job acknowledging the issues, but went downhill from there in terms of providing solutions, overcoming negative images of AIG and changing perceptions. Was it an impossible challenge? Imagine climbing out of a hole bigger than the Grand Canyon with extra baggage, into a storm and with hostile observers on the rim rolling rocks down the trails to knock you off your chosen path. Tough to train for, no matter how good your Crisis PR team.
Liddy did fare better than the automotive executives who were pilloried from all fronts for flying to the hearings in private jets and mostly looking and sounding alike. This was hardly central to the issue of saving the automotive industry but it provided great openings for critical sound bites from the media and also politicians hungry for media attention.
On AIG, respondents were very aware (91.7 %) and somewhat aware (8.3 %) of the issue. In rating the image of AIG before the testimony, 66.7 % rated it Very Negative, followed by Somewhat Negative (8.3 %) and Neutral (25 %). None rated it as Somewhat Positive or Positive.
On Liddy and his performance before Congress, the survey asked for ratings in eight categories:
- Acknowledging issues: the rating average on a 1-to-5 scale was 4.0, his highest. Average, 16.7%; Above Average, 66.7%; Excellent, 16.7%
- Identifying Problems: rating 3.25. Below Average, 25.0%; Average, 33.3%; Above Average, 33.3% Excellent, 8.3%.
- Accepting Responsibility: 3.0. Poor, 8.3%; Below Average, 16.7%; Average, 50.0%; Above Average, 16.7%; Excellent, 8.3%.
- Appearing Sincere: 3.5. Below Average, 8.3%; Average, 33.3%; Above Average, 58.3%.
- Providing Reasonable Solutions: 2.83. Poor, 25.0%; Below Average, 8.3%; Average, 33.3%; Above Average, 25.0%; Excellent, 8.3%.
- Answering Questions Under Fire: 3.67. Average, 50.0%; Above Average, 33.3%; Excellent, 16.7% (second highest).
- Overcoming Negative Images of AIG: 2.5 (tied for lowest). Below Average, 58.3%; Average, 33.3%; Above Average, 8.3%.
- Changing Perceptions: 2.5 (tied for lowest). Poor, 16.7%; Below Average, 41.7%; Average, 16.7%; Above Average, 25.0%.
- After the Session and in Seeing News Coverage, How Did Your Opinion Change: 0.0, Much Better; 16.7%, Slightly Better; 66.7%, No Change; 8.3%, Slightly Worse; 8.3%, Much Worse.
- In Reviewing Follow-Up Coverage, How Did You Feel the Media Treated the AIG CEO and His Testimony: 8.3%, No Opinion; 25%, Unfairly; 16.7%, Somewhat Unfairly; 25%, Balanced; 16.7%, Somewhat Fairly; 8.3%, Fairly.
The opinions on fairness of the coverage skewed slightly to the negative side. The final question was a follow up:
In General, How Would You Rate Media Coverage of Business in the United States: Anti-Business, 33.3%; Somewhat Anti-Business, 41.7%; Balanced, 0.0%; Somewhat Pro-Business, 16.7%; Pro-Business, 8.3%.
How to operate in an environment where the media doesn’t like business and business thinks the media is biased? Results from this quick litmus test of perceptions are mirrored in many surveys with high confidence levels, including one from the Edelman Trust Barometer and another from the Media Research Center.
All of the above raises some thoughts for issues management in what could be no-win situations: analyze the situation from the media and other outside perspectives (political, regulatory, shareholder, consumer, environmental, etc.); prepare for the worst possible questions; run your answers by outside experts, colleagues and consultants (politicians float trial balloons before going public with their ideas); rehearse, rehearse. rehearse; acknowledge whatever problems that exist at the beginning; provide reasonable and logical solutions; speak in a human voice (no spin or corporate speak); counter hostile personal attacks with historical precedents, facts and data, delivered confidently and non-emotionally; when faced with outrageous statements and material taken out of context, use a little ju-jitsu to ask for the source of the data and information; do a short closing statement with a thank you and visionary statement for moving forward; do a post-event media briefing; provide your facts and materials immediately through every means possible (email, newswires, Web site, blogs, social media); follow up directly with all media, particularly the most critical; analyze the results; and get ready for the next round.
Posted by Tom Gable