Crisis Clients Archive

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.

Tags: Crisis Management, crisis PR, holding statement, Litigation PR, negative publicity, PR strategy, public relations
Posted in Crisis Clients, Crisis Management, Litigation Public Relations, Public Relations Strategy, Public Relations Tips, Reputation Management

Crisis Corner: Resolving the Company PR Crisis Before It Begins

April 19th, 2010

In most public relations crises, the common denominator remains, maddeningly, the same – a change in tactics and statements, mid-game, that throw more gas on the fire. Perhaps it’s easy to understand why; we only need to think of our own personal ordeals fraught with anxiety and panic. In the face of uncertainty, it’s easy to lose grip on rational thought, and even easier to disregard consistent steps that offer a careful exit to safety.

That’s why Praecere’s philosophy on media crisis management and crisis communications places a premium on planning discipline. After all, crisis aversion is a heck of a lot more fun exercise than crisis management. From Fortune 100 companies to small businesses, every company – if they haven’t already – must take the following steps:

• Be honest with themselves and others;

• Identify each potential weakness in their product or service;

• Know how these weaknesses may affect relevant stakeholders

• Analyze the most effective way to communicate with these stakeholders;

• Have default and standby messages ready to communicate quickly and buy time;

…. and ….

• Remind themselves to be honest with themselves and others.

Of course, it’s impossible to anticipate every possible permutation of mistakes, miscalculations or flat-out wrongdoing that may occur. Still, a small investment in crisis management now can avert much more painful outcomes down the road.

Tags: crisis communications, Crisis Management, crisis PR plan, media crisis management, public relations crisis, stakeholder
Posted in Corporate Communications, Crisis Clients, Crisis Management, Public Relations Strategy

Crisis Corner: How Oprah Can Combat Kitty Kelley’s Tell-All Book

April 14th, 2010

This past week, famous (infamous?) unauthorized celebrity biographer Kitty Kelley released her latest tell-all book, this one about talk show host Oprah Winfrey. Kelley’s pen has struck many famous targets in the past, such as Frank Sinatra, the Bush family and even royal dynasties.

Oprah is more than just a celebrity, she is a bona-fide billion dollar brand – therefore the stakes are much higher in protecting and managing that image. Crisis management 101 dictates that attacks on one’s brand and reputation must never go unanswered, and the two Oprahs – the person and the brand – are no exception.

So what crisis public relations steps should Oprah take as Kelley continues her book publicity tour, dishing seedy details and other awkward revelations?

• Stay above the fray. Oprah’s handlers already maintain a tight perimeter around their boss, and no doubt that circle will hold strong during the book’s initial release. Still, Oprah’s fans will seek reassurance about their idol, and that guidance is best administered from Oprah herself. At the same time, Oprah shouldn’t indulge the book’s themes or specifics, so getting on the record with a diplomatic and confident statement is a smart move. Something to the effect of “I don’t traffic in rumors and speculation … Ms. Kelley peddles in gossip, so I think that speaks for itself.”

• Have third-parties criticize aggressively. Oprah’s brand has empowered a legion of other stars in her orbit. These loyal and trusted advocates can criticize the book openly without dragging Oprah into it. Imagine having Dr. Phil, Dr. Oz and Rachael Ray all drop responses here and there: “well, regardless of what’s in the gossip pages, this isn’t the Oprah that I know.”

• Lean on past success. This isn’t the first time Oprah has faced a sharp attack, such as several years ago when Texas beef producers sued her for defamation, claiming that Oprah’s criticism of beef consumption was a direct attack on their business. Instead of relying simply on scorched-earth litigation tactics, Oprah took complete command of the controversy by actually moving her television production to Texas for several days. In doing so, she won over the locals, made the plaintiffs seem foolish and greedy, and looped the media theme back in her favor as a talk show host who cares about her fans. Oh, and by the way, she won the lawsuit.

Advantage: Oprah.

Tags: biography, criris PR, Crisis Management, crisis public relations, Kitty Kelley, Oprah, Oprah Winfrey
Posted in Crisis Clients, Entertainment & Sports, Litigation Public Relations, News & Events, Public Relations Strategy, Reputation Management

Crisis Corner: Spirit Airlines’ New Baggage Fee Angers Customers, the Government – Who’s Next?

April 12th, 2010

Much has been said about Spirit Airlines’ proposal to charge passengers $45 for any regular carry-on baggage. Instead of rehashing the pros/cons of this new policy, let’s analyze the company’s move from the public relations standpoint:

• Think before inciting controversy. Airlines lost a staggering amount of money last year, yet it’s amazing how tone-deaf they are in announcing remedial measures to capture lost income. Just think back to Ryanair’s proposals to charge passengers to use the airplane bathroom, or to force passengers to stand during flights. If the new policy will likely incite controversy, then huddle with your publicist and think 10 steps ahead to anticipate how your customers will react. Don’t get caught flat-footed by an easily repeatable/re-tweetable meme. Standing on flights, really…

• Media training is exercise to prevent foot-in-mouth syndrome. Now that we know why these policies generate radioactive criticism, we must understand how to avoid saying really, really stupid things. Media training will help the spokesperson nuance the message to minimize blowback. Customers cringe when they hear about new inflated fees, so don’t patronize them as CEO Ben Baldanza did by saying something this idiotic: “The beauty of [the $45 fee] is [passengers] will do what they think is best for them and will now have the choice.” Um, “choice”? What about choosing not to anger and alienate your customers?

• Different PR disciplines are needed to deal with different PR problems. What started as Spirit Airlines’ need for crisis management has now morphed into a public affairs issue, as DOT Secretary Ray LaHood and U.S. Senator Charles Schumer both criticized the new fee. Indeed, LaHood clearly is contemplating some regulatory response, given that he thinks Spirit Airlines doesn’t “care about their customers.”

Most companies understand the importance of PR, but what Spirit Airlines shows us is the importance of hiring publicists who can wear multiple hats. Don’t roll out your controversial policy until you’re sure you’ve got all your PR bases covered.

Tags: baggage fee, Ben Baldanza, Crisis Management, Media Training, public affairs, public relations, Spirit Airlines
Posted in Corporate Communications, Crisis Clients, Crisis Management, News & Events, Public Relations Strategy, Public Relations Tips, Reputation Management

Crisis Corner: The Only Way out for the RNC

March 29th, 2010

Federal campaign disclosure documents revealed today show that the Republican National Committee had included an expense for $2,000 for “meals” at the Voyeur West Hollywood Club in Los Angeles last month. The club’s theme, as described by the Los Angeles Times, leans toward “Eyes Wide Shut” with a touch of “impromptu bondage and S&M.” In response to the public relations crisis, a RNC spokesman says that the activity is being investigated.

In solving a PR crisis, one of the most important steps is taking direct and concrete steps to remedy the problem. Actions speak louder than words, and the RNC is no exception to this immutable axiom.

For the RNC to give its “investigation” theme clarity and substance, it must actually act like it is conducting an audit of some sort, and no matter how you look at it, someone’s gotta pay the price. There’s no better way for the RNC to put this episode behind the Republican party than to fire Chairman Michael Steele.

• Steele’s sheer incompetence and disastrous leadership have been extensively documented. Each time the man speaks, he manages to step in it even more and more. The longer he stays at the helm, the harder it will be for anyone to take any claims of an “investigation” seriously.

• The RNC must act fast. If not, the Republican brand will sustain heavy damage coming off the brutal health care debates. That brand (or at least what it claims to promote) is totally at odds with what the club expense stands for: fast and loose spending; sexually-themed parties; gay rights; Hollywood free-wheeling and vice-ridden behavior.

• The $ signs all over this give the story a simple narrative to follow. Therefore, the more the RNC tries to lap tap dance around the expense report, or somehow shift the blame to Democrats, the worse it will get.

Real leadership is often about tough choices. The kingmakers at the RNC must appreciate this principle and act quickly before this scandal gets worse.

Tags: PR crisis, public relations crisis, Republican National Committee, RNC, Voyeur West Hollywood Club
Posted in Brand Management, Crisis Clients, Crisis Management, News & Events, Public Relations Tips

Crisis Corner: FCPA Outruns Benz

March 23rd, 2010

As explained earlier on this blog, FCPA prosecutions have increased priority in the Department of Justice, and companies are on notice to behave nicely.

Part and parcel of diligent FCPA compliance requires communicating positive steps, which is where crisis public relations becomes an important strategy. This time around, the perpetrator is Daimler AG, the venerable German automaker that manufactures Mercedes Benz. Daimler today agreed to pay $185 million in fines to the U.S. government for its alleged corrupt business practices.

While crisis management would recommend a media holding statement at a minimum, Daimler should also take active steps to explain any new transparency measures it plans to implement to avoid this type of scandal in the future. (In this case, Daimler gave a very lame “no comment” response to the allegations … sigh.)

If a tree falls in a forest… ah, you get the picture. Remember, in crisis public relations, the redemption narrative works only if people know you’re making that same effort — so publicize it!

Tags: Crisis Management, crisis public relations, Daimler, FCPA, FCPA compliance, holding statement
Posted in Brand Management, Corporate Communications, Crisis Clients, Crisis Management, News & Events, Public Relations Strategy

Activision AWOL, Losing the Battle, about to Lose the War

March 5th, 2010

Activision is suffering one of the worst crisis public relations tailspins the tech industry has seen in a long time. The legacy game and entertainment company recently fired two of its top developers responsible for the fastest selling video game ever, Modern Warfare 2. This isn’t just kids cramming quarters at an arcade — the game’s sales topped more than $1 billion within a few weeks of release.

If your flagship product developers have been pink-slipped, it shouldn’t be too much of a stretch to think they may retaliate. That’s exactly what Jason West and Vince Zampella did — suing Activision for $36 million, claiming wrongful termination after being subjected to interrogation, abusive employment practices and documenting how the company terrorized fellow employees. Their law firm put out a press release that amps up the coverage and makes Activision look supremely arrogant and insensitive in treating their staff.

As of now, Activision is getting pummeled online and in the echo-chamber of industry fans and commentators. So far the only push-back the company appears to have done is issue a statement calling the lawsuit “meritless.”

Hey Activision — what buttons do you push on the joystick to stop the head-in-the-sand public relations strategy? You are rapidly losing engagement of millions of fans who spend a ton of their time communicating and networking on-line. Why doesn’t your Twitter page have a single tweet reassuring fans, investors, partners, etc. that you are on the right side of this issue? NOT ONE SINGLE MESSAGE, really? Your Facebook page hasn’t been updated since June of last year!!!

Good luck Activision, you’re gonna need it…

Tags: activision, crisis public relations, jason west, modern warfare, press release, Public Relations Strategy, vince zampella
Posted in Brand Management, Corporate Communications, Crisis Clients, Crisis Management, Entertainment & Sports, News & Events, Public Relations Strategy

Crisis Corner: What a Small Business Can Learn From Toyota

February 24th, 2010

Toyota’s predicament speaks for itself, but what would your small business do if it faced a raft of angry or injured customers? Crisis management principles are often the same regardless of the scale of your business – it’s not just mega corporations that risk dealing with angry, hurt or confused customers.

In preparing for incidents of blowback with their goods or services, here are some questions any small business marketing or communications professional must ask:

• Have you accepted the possibility of a mistake? The first step is always the hardest. In small business communications, it’s important to accept that something in your supply chain can (and will) go wrong. Define the potential problem before you start crafting messages to respond.

• Do you have a crisis response plan in place? You must determine what you’ll say depending on who are the key stakeholders – customers, business partners, regulators, and so forth.

• Have you designated a spokesperson for media inquiries, and have they undergone media training? Don’t just assume that your spokesperson will do great on camera. Media training is a serious discipline and absolutely necessary if you’re going to survive tough interviews.

• Do you have a media list of reporters and media outlets who would cover your crisis? You know your industry, trade and community better than anyone else. Identify the key media outlets, trade publications and other interested journalists and bloggers who will take interest in your business’s response to any situation.

• Can you update your website’s home page quickly to ensure your response is easily visible? Your site designers should have built the site’s architecture in a way that allows a prominent update to appear on your homepage. And on that end, do you have a process in place for Facebook and Twitter updates? You do have Facebook and Twitter pages for your small business… right?

If the answer to any of these questions are “no” you should let us know…

Tags: Crisis Management, Media Training, small business, small business communications, Small Business Marketing
Posted in Corporate Communications, Crisis Clients, Crisis Management, Media Training, Public Relations Strategy, Public Relations Tips, Reputation Management, Small Business Marketing

Crisis Corner: Companies Must Prepare Messaging for FCPA Investigation

February 8th, 2010

As the Department of Justice steps up enforcement of the Foreign Corrupt Practices Act, chances are that companies with household names will get snared in the coming dragnet.

If a company cares about their corporate identity, they must take active crisis public relations steps before a crisis occurs. Think of it this way – a small investment in crisis management can prevent more fuel being thrown on the publicity fire. If you don’t believe preparation matters, tell that to BAE as they start clawing out of the $400 million penalty they’ve incurred from violating the FCPA. Having your company executives arrested and paraded out during a trade show is about as bad a publicity hit as you’ll ever get.

So, what can companies do? The basic crisis public relations tactics often focus on simple messaging. For example, if the executives know the crisis is around the corner, a holding statement can be drafted well in advance that alerts the media to the problem, and explains that more details will be forthcoming. Forget about hiding the problem – the reporters will find out anyway. And, this step satiates the media machine and buys time for the publicist to recommend next steps. By doing so, the company gets out ahead of the story and controls the narrative.

Your company’s bottom-line matters to an ever growing audience, so make sure your messages get to them – especially when people are raising eyebrows and scratching their heads.

Tags: corporate identity, Crisis Management, crisis public relations, Foreign Corrupt Practices Act, holding statement
Posted in Corporate Communications, Crisis Clients, Crisis Management, Public Relations Strategy, Public Relations Tips

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