Crisis Management Archive

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: 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.

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Posted in Corporate Communications, Crisis Clients, Crisis Management, Public Relations Strategy

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.

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

RNC’s Perception Is Now Rudderless

April 4th, 2010

Like most things in life, a good rule of thumb to identify patterns is to look for three’s.  Politics and public relations are no exception, and in this regard embattled RNC Chairman Michael Steele’s organization has really, really stepped into it.

First, the crude slideshow.  Second, the lesbian bondage nightclub.  Lace that with the undercurrent of criticism aimed at Steele’s leadership (or lack thereof) when it comes to spending priorities.

Now, the RNC has hired a full-time fundraiser who previously ran afoul of D.C. authorities with regard to expenditures and reimbursements.

With this action, Steele has effectively cemented the narrative that the RNC has no qualm about its public perception, voter blowback or political fortunes.  It’ll be interesting to see how this plays out over the next 24-48 hours.

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Posted in Crisis Management, News & Events

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.

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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!

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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…

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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…

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Posted in Corporate Communications, Crisis Clients, Crisis Management, Media Training, Public Relations Strategy, Public Relations Tips, Reputation Management, Small Business Marketing

Bad Vibes: You Can’t Turn off Google Buzz…

February 12th, 2010

… because it’s an incredibly cumbersome and confusing series of steps.  If you’re just finding out, Google Buzz is the company’s foray into the social networking wars, but one whose rollout has been, ahem, socially awkward at best.  The problem is that each Gmail user’s messages are immediately exposed to the new network, raising significant privacy concerns.

Just search Google for “how to disable Google buzz” or “how to turn off Google buzz” and look at the dizzying series of results; click through those pages and you see how it only gets worse from there.  Perhaps it’s a fair argument too to say that if it’s this hard to ignore Google Buzz, then you can’t truly turn off the service.

As social networks evolve and wrestle with privacy issues, the new kids on the block must anticipate the negative publicity that will inevitably arise.  One of the most important steps in crisis public relations is looking down the road to understand stakeholder reaction.  Looks like Google passed that step and pushed Buzz way too fast on everyone.

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

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