Posts Tagged ‘crisis PR’

How Litigation Actually Helps Your Company Improve Its PR Capabilities

June 16th, 2010

Surprise – your widget-making mom-and-pop/mid-sized business/global corporate behemoth has been sued!  Apparently Timmy Goodkid Thompson tried to eat a decidedly non-edible product your business sells, and hurt himself quite amazingly in that effort.  Did we mention it’s your flagship widget, the one that drives 99% of your revenue?

The Thompson family – farmer father, teacher mother, rambunctious and adorable Timmy – have hired a media-friendly law firm, one that has perfected the art of PR stagecraft.  The firm has called a press conference to publicize the lawsuit.  All the 24/7 networks will be there, not to mention local reporters your neighbors know and trust.  Since the scrum will be streamed live, product safety bloggers are all over this one, riding a high-wave of backlash against corporate malfeasance.  Someone (the law firm?) has launched a fake Twitter account in your company’s name, a parody that sarcastically communicates abject, tone-deaf insensitivity with tweets like “next time blend the widget, it’ll digest more easily.”

Your company isn’t sweating, though, because you’re confident your product was not the cause of injury, and that your customers likely will understand this.  More importantly, long ago you hired a smart crisis management PR firm to draw up a crisis response playbook… right?  You did an inventory of interested media, have a holding statement in place, along with a grid that anticipates an escalating public relations meltdown… right?

Ok, enough about the PR nightmare, let’s shift to reality.  Litigation PR makes any company nervous.  No matter how small a lawsuit, the potential for media attention is limitless.  Yet in a way, that’s the beauty of litigation PR – in anticipating lawsuit scenarios, business leaders must identify every stakeholder, and that includes everyone in your company hierarchy.  Imagine the human resources involved in the widget lawsuit:

• Are the front office staff prepared to answer initial phone inquiries, do they have talking points?

• Have the interns been told to stay quiet and report inquiries to supervisors?

• Has the communications office reviewed and updated crisis PR procedures to ensure relevancy? (Note: Big Oil – walruses in the Gulf of Mexico – seriously?)

• Has building security been consulted regarding protestors who may show up at the front door?

• Has a point-of-contact been designated to oversee the entire crisis PR response?

• Has legal counsel examined your supply chain to identify each choke point of liability, and in turn relayed that information to your communications staff so they have statements and talking points ready to address each vulnerability?

• Are the IT staff ready to update the company website immediately with relevant messaging?  Do you have a dark site in waiting for this special occasion?

• Has everyone signed a NDA regarding trade secrets and the relevant aspects of litigation?

Such thorough preparation is essential in litigation PR.  As the company head, you can only achieve this level of care by engaging every tier of staff within your business operations.  That’s why an effective crisis playbook fundamentally requires looking inward, and in doing so your company encourages discipline amongst the ranks and knowledge of the situation.

Nothing looks worse than an erratic or empty media response to a lawsuit, so embrace the possibility of litigation and run the traps to get all employees on the same page.

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Posted in Brand Management, Corporate Communications, Crisis Clients, Crisis Management, Litigation Public Relations, Public Relations Strategy, Public Relations Tips, Reputation Management

Crisis Corner: If the End is Near for BP, What Does That Mean for Your Company?

June 9th, 2010

When the New York Times runs an article implying the end is near for BP, then you know the end is indeed possibly near.  Interesting that one event like an oil spill can do a global behemoth in, even one like BP with a miserable track record on safety (or lack thereof).

Normally, crisis public relations aim to see a client through to resolution of the problem in front of them.  A smart crisis management plan usually incorporates a grid of escalating threats and their consequences.  For example, a negative op-ed about the client might be considered a low-level threat, and the PR response would be proportionate, such as a rebuttal op-ed.  Or, a product recall may be a high-level threat, with the appropriate response being customer engagement and recall information presented on several online platforms.

But, if like BP your company faces a death knell, how should you plan your public relations response?  The scenario is real, and mega companies do implode – think Enron, Arthur Anderson, WorldCom, Lehman Brothers.  What usually follows is a string of scorched earth litigation and restructuring, much like political sausage making that no one likes to see.

If the end is near for your company, that doesn’t mean you can shirk on stakeholder communication.  Here are some reasons why:

• Everyone loves a comeback, so your crisis PR plan should include steps on making yourself accessible post-fallout.

• Reporters, historians, academia and others will continue to write and report about your company – so make sure that your side of the story gets a word in edge-wise.  Explain the domino effect from your own view, so people don’t put words in your mouth.

• If you are ever able to breathe life into the company again, you will need to generate a positive narrative from where you left off, and this requires keeping communications fluid.  Staying engaged with your stakeholders after the company dissolves will allow a better transition.

• As silly as it sounds, closure is just as important in the business world as it is in our personal lives.  Make sure the last word is yours and yours alone. This is the first and perhaps most important step to moving on in the wake.

As of now, BP is playing defense for its short-term response, and has given some hint as to paying claims in the future.  But if there’s no afterlife for BP, then it should start planning for the real worst case scenario, a total corporate meltdown.

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Posted in Brand Management, Corporate Communications, Crisis Clients, Crisis Management, Litigation Public Relations, Public Relations Strategy, Public Relations Tips, Reputation Management

PR Holding Statements: Walk Before You Run … Into the Crisis!

May 24th, 2010

If you’re reading this, and happen to own or operate a small business or large corporation, we’re willing to bet you’re curious about media holding statement 101.

No business is immune to the need for smart public relations crisis management.  If you sell food, assume your customers might get sick.  If you sell cars, assume the brakes will fail.  If you house sensitive financial information, assume it will be compromised.  If you sell medicine, assume it may have unanticipated side-effects.

The permutations are endless, but the sure-fire way to escalate your business’s crisis situation is to be caught flat-footed — or, in a PR crisis, with both feet in your mouth.

In other words, no matter how many weeks you’ve spent analyzing the weak points in your supply chain, setting up a war room to monitor media fallout, preparing for reporters through media training, or anticipating how critics and competitors will leverage a crisis against you, all your efforts are wasted without a proper holding statement ready for release.

Each holding statement is unique for a particular business, but the basic principles are the same.  The holding statement must address the crisis head on and without any doublespeak, acknowledge that something wrong is going on, offer immediate information, and resolve to address the media and public again once all the facts have been collected.   And, most importantly, you must show sincerity, genuine concern and appreciation for the crisis situation.

Apply this general approach when your business needs to speak, and you will buy the precious time necessary for a more coordinated, concentrated response to any problem factors that may arise.

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Posted in Crisis Clients, Crisis Management, Media Training, Public Relations Strategy, Public Relations Tips, Reputation Management

How to Control the Rules of the Court of Public Opinion, Step 1

May 1st, 2010

In crisis management and crisis PR, *the* most precious commodity is time.  Events happen so rapidly that you don’t have to time to determine if you have the upper hand.  One day your business is coasting along, but the next day you’re causing a mega-environmental disaster, accused of bribing regulators, facing allegations of financial crimes, or trying to figure out if an opponent is more bark than bite.

Staring down the barrel of a lawsuit?  What’s your litigation PR strategy?  Better be more than hoping for limited liability.  Your business may be at the mercy of civil procedure rules and a trier of fact, but don’t forget that the rules of the court of public opinion are totally different.

To leverage those circumstances in your favor, your business must take steps before you face litigation.  Your public relations counsel should conduct a thorough risk assessment and identify all weak spots of potential negative publicity.  Still, effective risk assessment is more than scanning your business operations – the analysis must connect with messaging, otherwise you’re wasting your money on ineffective consultants.

That’s why your business must be armed with a holding statement that can be aimed at each potential publicity hit or reporter inquiry.  Nothing appears worse (or more guilty) than inaction or “no comment.”   Ask yourself, who are your stakeholders – customers, regulators, business partners, activists, employees, maybe others?  If they suspect being cheated somehow by your business, what will you say when the microphones are in your face?

Specific holding statements can address initial concerns and buy you time to regroup, take a deep breath and implement the extended PR strategy.  Don’t assume that your folksy charm, steel spine or other character trait will woo rabid press into submission.  Speaking on the fly only reinforces the image of being unprofessional, and worse, indifferent to the crisis.

Appreciate the importance of prior planning, finalize your holding statement and be patient – by doing so you’ve already made a strong opening statement in the court of public opinion.

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Posted in Crisis Clients, Crisis Management, Litigation Public Relations, Public Relations Strategy, Public Relations Tips, Reputation Management

Crisis Corner: Kleen Energy Needs Visibility for Connecticut Explosion

February 7th, 2010

The tragedy at the Kleen Energy plant in Connecticut has been a rapid-fire assault of news today.  But, go to the plant’s website and there is no official statement (at least as of this blog posting).

In crisis public relations, the affected entity must be the first — and most visible — point of communication and messaging when it comes to information and assistance.

No information + no media relations + no website information = bad crisis PR.

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Posted in Corporate Communications, Crisis Clients, Crisis Management, News & Events

Crisis Corner: O’Keefe’s Third (and Worst) Way in Crisis Public Relations Strategy

January 28th, 2010

News of the arrest of James O’Keefe, celebrated conservative activist and scourge of ACORN, spread very quickly, even by today’s mega-hyper media standard.  The fallout has been accompanied by extreme helpings of gloating by many opponents, including ACORN itself.  Quite a bit has been said about the stupid incident, but not so much about how the accused (or his lawyer) should respond to the allegations.

In crisis public relations, the publicist usually counsels the client to get ahead of the story and communicate early and quickly, so as to take control of the narrative before others do.  This primary strategy, when executed well, pays great dividends in reputation management.

The second strategy sometimes employed is to say nothing as the crisis unfolds.  This tactic consistently flops, as outrage often becomes the theme and cements itself over the relevant time period.  (O’Keefe, however, may have a pass here as there may be a gag order in place, prohibiting public comment on the incident.)

Yet, there is a third way, or tactic, that sometimes appears, by far the worst of the lot – let’s call it the verbal tap dance.  Instead of addressing the allegations truthfully or staying silent, the client or spokesperson’s response bends the spine of logic by parsing words to the point of sheer absurdity.

The problem is that it doesn’t take much to see through such statements and everyone passes even harsher judgment on the scrutinized individual.  In this case, the relevant FBI affidavit states that O’Keefe admitted coordinating with two others in an operation to tamper with federal government phone lines.  So why does his lawyer say that there was no “interfering with the phone system”?  And what good does it do O’Keefe to brag on Twitter that “Govt official concedes no attempt to wiretap”?  (And that’s assuming that this observation is true!  Right now O’Keefe isn’t exactly the best messenger for such forceful rebuttals.)

If you are dealing with crisis management, and the public collectively rolls their eyes when you speak, your playbook and strategy need to be revised.

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Posted in Crisis Clients, Crisis Management, News & Events, Public Relations Strategy, Public Relations Tips

Crisis PR Corner: Andre Bauer’s Common Sense Gone Astray

January 26th, 2010

During a recent town hall meeting, South Carolina Lt. Gov. Andre Bauer compared government assistance to feeding “stray animals.”  Ugh… sometimes you can’t make this stuff up.  Here’s the money quote:

“My grandmother was not a highly educated woman, but she told me as a small child to quit feeding stray animals.  You know why?  Because they breed!  You’re facilitating the problem if you give an animal or a person ample food supply.  They will reproduce, especially ones that don’t think too much further than that.”

So, according to Bauer, the conclusion to draw about the poor is that they are mostly stupid and just want to have sex and eat, assuming they are capable such auto-functionality.  Other demographic populations are also stereotyped by this behavior, but I digress…

The insult cuts wide and deep.  South Carolina’s poverty rate in 2008 was almost 16% (which puts it a few points above the national average).  Comparing over 700,000 of your state’s population to animals in one fell swoop is not only disgusting and inexcusable, it’s also really stupid politics.

To really understand the impact of such dumb words, consider what appears in a simple Google News search for “Andre Bauer”:

Bauer Picture Crisis PR Corner: Andre Bauer’s Common Sense Gone Astray

In these situations a public relations specialist plays the role of a counselor and recommends crisis management strategies.  Bauer would have been smart to recant his words, but instead he amazingly refused to apologize when interviewed for a follow-up story, offering a ridiculous verbal tap dance to justify his ranting.  (Which brings up another good point in crisis PR: the more you have to explain, the worse the situation usually gets.)

Bauer finally wised up and apologized, but only after 5 days and mounting, bipartisan criticism.  Waiting nearly a week to explain your actions is an eternity in crisis PR, and as indicated in the picture above, the damage has been done.

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Posted in Crisis Clients, Crisis Management, News & Events, Public Relations Strategy, Public Relations Tips

Letterman vs. Tiger: Why the Apology Is Necessary in Crisis PR

January 10th, 2010

Some may view crisis management as an art, but analyzing negative publicity is also part science.  Accordingly, in crisis PR, the most important step is an apology that (1) is delivered immediately, (2) is sincere and (3) appreciates the consequences of the relevant actions.  The mea culpa is a tough but mandatory pill to swallow for almost all crisis clients, and the best publicists help clients understand the immense value of taking the medicine.

If you doubt the power of the apology, you need look no further than two recent incidents.  In comparing the sex scandals of David Letterman and Tiger Woods, we can tell quickly which celebrity handled their incident(s) best.

Letterman gave his apology on his program before his scandal was even publicized.  Two months later, the amount of press devoted to the scandal fell to less than half of the publicity he received prior to the scandal.  For Woods, by contrast, nearly two months into his fall from grace he hasn’t even appeared publicly to face the cameras or the public.  And, consequently, his ordeal remains high profile with no signs of abating.

By delivering his apology, Letterman threw a big bucket of water on his fire, and the smoldering embers gradually faded away.  Notwithstanding questions of his motivation in doing so, this is an excellent example of crisis management 101.  If only Woods’ handlers would tell him to do the same…

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Posted in Crisis Clients, Crisis Management, Public Relations Strategy, Public Relations Tips

Crisis PR: Building a Slower Celebrity Train Wreck

January 8th, 2010

High-profile celebrities are, by nature, aggressively ambitious.  Sometimes that ambition leans toward greater artistic achievement, philanthropy or over-the-top antics.  And, sadly, sometimes that ambition aims simply for the bottom-line – more money.

So the question, from the public relations perspective, is: how much money is enough?  Case in point: reports of the New Year’s Eve concert Beyoncé Knowles performed for the Gathafi family, with the morally questionable Hannibal Gathafi as the evening’s host.

Hannibal’s exploits are infamous, for all the wrong reasons.  Actions may speak louder than words, but in the world of crisis PR, perception screams at full volume.  So, when Beyoncé chose to perform for the Gathafi family, she (or her handlers, if they are good at what they do) had to know the concert would attract significant international criticism.  That’s not good when your celebrity persona is followed closely by millions globally.  More importantly, was the performance worth the reported $2 million fee when you’ve already earned $87 million in the past few months alone?

Now, to her credit, Beyoncé has taken an affirmative step to clear the air, with a prominent statement on her Web site that claims she did not perform for Hannibal but rather for his brother.  Good crisis management in action.  But is this enough?  To distance herself more forcefully, she could hold a press conference, post a YouTube video, or even connect with the families of victims of Lockerbie Pan Am Flight 103 to issue a joint statement that she is aware of the sensitive nature of associating with the Gathafi family, particularly when it comes to personal gain.

Always remember: in crisis management, it’s all about perception, perception, perception.  Do the right thing to atone for your error and you’re already halfway there.

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Posted in Crisis Clients, Crisis Management, Public Relations Tips

iPhone, Shmi-Phone: AT&T Loses Reception on Crisis Management

December 28th, 2009

Oh brother… according to an alleged transcript between a consumer advocate and an AT&T customer representative, AT&T no longer sells iPhones in New York City because the metro area doesn’t “have enough towers to handle the phone.”  Crisis management, where are you?

Laments about AT&T’s ability to handle iPhone traffic are legendary.  But really, are we to believe that a cosmopolitan metropolis is being shunned by a national phone company?

AT&T’s corporate response on the issue is incredibly anemic, refusing to confirm or deny if the sales ban is due to network congestion, fraud purchasing or other defined issue.  That is miserable crisis PR in action.  Despite the likely never-ending lust for the iPhone as a consumer product, AT&T is in dire PR straits if it continues its obstructionist sales policy without offering a coherent explanation, and here’s why.

Consumer demand for technology services often outpaces industry stalwarts and hits particular companies with black market pressures, whether it’s music, movies or other content.  Regardless of any real or imagined network overload, Apple isn’t likely to sell the iPhone exclusively through AT&T in the future.  So, if and when U.S. customers can get the iPhone through another wireless provider, chances are that many buyers will remember that AT&T gave the cold shoulder to the biggest city in America.  Think New Yorkers will want to sign up with AT&T at that time?  If you have to ask…

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Posted in Brand Management, Crisis Clients, Crisis Management, News & Events, Public Relations Tips

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