Posts Tagged ‘Crisis Management’

Tumbling, Stumbling, Bumbling PR

December 6th, 2010

Alas, poor Tumblr… Let’s get right to the point: If your company’s entire presence is online, i.e., your website is the heart and nervous system of your business, then at some point your business will disappear — at least temporarily.  Your site will have an outage or downtime.  It’s a matter of when, not if.  This has happened to Facebook, foursquare, Gmail, Amazon… the list is lengthy.  There’s even a site dedicated to tracking outages!

Consumers and site users, though they get frustrated, will understand if your site has a simple, regular-speak statement that explains the problem.  Sites like Twitter (assuming it’s not down as well!) allow you to update your core base and interested media tracking the outage.  So, as the C-suite of your online titan, you really have no excuse to skip crisis PR basics on the situation.

As of this time, Tumblr has been down for 15 hours.  Here’s what they have to say about it:

Anyone know what a “database cluster” is, assuming you’re not an IT guru?  We certainly don’t, and a good bet is that the massive universe of Tumblr stakeholders also have no clue.  Their Twitter account isn’t much help either, other than to tell you how “painful” the downtime is.

Tumblr, dearest Tumblr… how about telling us what a database cluster is?  Even in playful or tongue-in-cheek language, it would go a long way.  Maybe a quick explanation that also discusses how long such problems last, and how they’re resolved?  And when the outage ends, how about some good crisis management that explains what steps you’ll take in the future to ensure the problem doesn’t happen again?

Without taking these steps, each second of Tumblr‘s outage only encourages competitors to poach the user base.

Krisis … Er, Crisis PR Gone Kaput

December 1st, 2010

Crisis PR can push a client to act very quickly in changing or ending certain business practices.  One recent noteworthy case is the ubiquitous celeb family the Kardashians, and the quick vanishing act performed by their name brand pre-paid debit card.

Just as soon as the card was announced, numerous critics pounced on the card’s predatory and heavy-handed fee structure.  The primary concern was that the card was being marketed to teenage girls, who critics argue lack the understanding of the delicate finances and responsibility required to manage such a card account.

To that end, the wise thing for the Kardashians to do was to, ahem, cancel the card.  And, a simple statement acknowledging their error could have put a nice end to the PR crisis and helped them move on.  That’s largely what happened, except for a couple of poorly executed twists:

First, their lawyer issued such a statement on the family’s behalf, instead of the family doing so themselves.  Effective crisis public relations counsels the client to make such statements directly to show authenticity and sincerity in seeking redemption.  Having your lawyer make the statement runs counter to this consideration.

Second, if you’re going to make a statement, don’t throw in any laughable points for the media to highlight.  The lawyer’s key quote was that the Kardashian sisters “have worked extremely long and hard to create a positive public persona” and that effort was compromised by the card’s fees.  This statement is incredibly arrogant, particularly since the family’s biggest claims to fame are association with a likely murderer and a notorious sex tape.  Unfortunately for the Kardashians, it’s the quote that most connected with the media.  Plus, it’s hard to reconcile a “positive public persona” when this is the front of the card you’re marketing:

We’d give the Kardashians a C+ for their crisis management.  The timing was great, but the delivery was a bit off mark.

Hey JetBlue, What’s the ETA on Smart Social Media Strategy?

August 10th, 2010

Ah, JetBlue… Love your TVs and blue chips, but your social media strategy needs a serious overhaul.

As the new meme-to-be, the entire Steven Slater ordeal has had many twists and turns in its initial 24 hours, with only more anticipated to come.  So let’s examine the basics of the media narrative, as it currently stands: verbally abusive JetBlue passenger, disgruntled employee, terrible economy, people stickin’ it to the man, beer, jumping out of planes, and jail.

JetBlue, this is quite a news mess on your hands.  So… why is your social media strategy on the skids?  It’s quite telling that this is the most recent post on the JetBlue Facebook page:

Here’s a better social media strategy (one that some firms would gladly charge you tens of thousands of dollars for): ditch the typical lame Facebook content, and use social media to control the media narrative.

People are speaking about your company, so instead of talking about hot dogs in Chicago, address the Steven Slater issue head on and make it positive.  How about asking your 300,000+ FB fans what are their tips for unwinding and reducing stress during the hectic travel season?  Pick one tip to showcase each week, and award that person with a free round trip ticket.  Everyone loves contests!  Plus this re-engages the online community and helps it grow like never before.

The social media lesson here: The best PR agencies are vigilant – they always look for opportunities to grow and expand your brand, even when everyone thinks it’s a disaster.

PR Basics for E-Commerce Sites

August 3rd, 2010

From time to time, the Blog Aesthetic spotlights different industries and offers discussion and insight on relevant public relations trends and strategies.  In this posting, we examine the next phase of e-commerce, an industry that faces exciting possibilities as the U.S. economy continues its positive (if slow) rate of recovery.

To that end, what PR factors should e-commerce sites pay attention to?  Here are a few:

• Leaks, leaks, leaksData breach continues to be the most high-profile media narrative associated with e-commerce sites.  As much as news outlets may report on the success of an ecommerce platform, a significant data breach will always be a media lightning rod.  Has your site prepared a thorough crisis management plan that addresses all stakeholders?  If not, your new road to riches will surely hit a dead-end.

• Distinction.  Quick – in 30 seconds, explain the difference between Authorize.Net, PayPal, and Fiserv… Once you’ve hit the wall, you will probably see the problem.  All provide consumer payment processing for individual and business transactions, but what benefit does each offer that’s different than the other?  In other words, where’s the brand distinction?  Your e-commerce PR efforts must always work to show why your site or platform is the better alternative.

• Streamline customer interaction.  With social networking significantly reducing the cost of customer interaction, an e-commerce site should leverage different social media sites for particular avenues of customer engagement.  For example, a few tweets can offer quick bites of news updates, but a Facebook page may be better for carefully addressing consumer or merchant complaints.

• The next big thingE-commerce sites will, undoubtedly, significantly evolve as new technologies and online platforms emerge.  Change always catches people off-guard, so e-commerce sites must make sure stakeholders are fully engaged and informed before incorporating the “next big thing” into their business practices.  Smart PR can help an e-commerce site develop a thought leadership campaign on relevant industry issues, position the site favorably with business and consumers, and then capture market share as the standard business model evolves.

From the UN to Junior League: Good Membership Communications Are Vital

July 26th, 2010

Few things cause more damage to a carefully built brand than a disgruntled employee with an axe to grind.  A stream of allegations emanating from an insider – true or not – will be given credence because they come from close to the source.  This is the case whether the insider leaves on their own will, or is unfairly pushed out after being deceived with false promises as to the organization’s intentions.

This phenomenon was on full display last week when Inga-Britt Ahlenius, a retiring United Nations undersecretary, decided to inflict as much pain as possible on her boss, Secretary General Ban Ki-Moon.  Even worse for the UN, Ahlenius was in charge of combating corruption at the UN.  So it was catastrophic when she wrote the following in a 50-page memo to Moon, leaked to the international media:

“Your actions are not only deplorable but seriously reprehensible …. Rather than supporting the internal oversight, which is the sign of strong leadership and good governance, you have strived to control it, which is to undermine its position.”

Ahlenius goes on to accuse Ban of setting up sham investigations instead of seeking serious findings.  She sums up the entire UN under Ban’s leadership as “in the process of decay and … drifting into irrelevance.”

“Irrelevant” is the worst thing you can be considered as a professional association or membership organization, and that includes the UN.  An institution that depends on membership to survive must make communicating to its members the top priority.  Strategic communications can help associations and groups demonstrate their value to members – even if those members are nations.  A public relations agency can help messages reach your internal audiences and members to reinforce your worth as an institution.  So even if you have a UN-style incident, the goodwill and support you have cultivated in your members will overcome it.  Of course, you will also need a crisis communications/management plan to mitigate the damage and chart the way forward.

In addition, basic internal communication and management dictates you set up a grievance mechanism for employees, one that respects their concerns.  Even anonymous whistleblower functions allow employees to feel they have somewhere to go (Note: The UN has a confidential hotline but, at the undersecretary level, Ahlenius likely felt it beneath her).

Now of course, at 72 years old, the UN was likely Ahlenius’s last career stop – emboldening her to “tell all” since she isn’t worried about another job.  The UN spends a tremendous amount on communications and marketing worldwide, only to have it all drowned out by one employee.  The UN could react smartly and name a well-respected person to fill Ahlenius’s position and blunt the basis of her accusations.  Instead, it appears the UN has settled on an “as-yet unnamed Canadian woman” for the role.

The lesson here is that smart membership communications are vital, if only to avert your need for crisis management in the long run.

Crisis Corner: Les Bleus Get the Blues

June 24th, 2010

Qu’est-ce qu’on dit “international pr crisis” en francais?

In July 1998 the Champs-Élysées was packed with millions of raucous French, and “Le Marseillaies” was being sung in every quarter of the country.  In one long week, the French were celebrating both Bastille Day and winning the World Cup, putting them on top of the world.  National pride swelled and French football was France’s premiere brand.

Contrast that with this week’s front pages of Le Monde and Le Parisien, chronicling the daily cataclysmic soap opera that passed for France’s appearance at this year’s World Cup.  It’s bad enough that Les Bleus, the French team, didn’t repeat an appearance at this year’s tournament finals. That failure alone wouldn’t generate this much venom.

Rather, it’s the French Football Federation, which has been tone deaf to the steady diet of scandal and controversy involving Les Bleus.  Things have gotten so bad that French President Nicolas Sarkozy dispatched his sports minister (what a cool job!) to dress down the French team, and is meeting with star player Thierry Henry to get to the bottom of things.

The French team was already on thin ice after squeaking through the World Cup qualifiers only by beating Ireland with a blatant handball.  At that point, France needed PR counsel on how best to re-engage the public, and also a crisis communications plan to deal with future incidents – on and off the field.  And that’s just the beginning.

Several players, including national icon Franck Ribery, were implicated in a prostitution sting with an underage girl.  Then, right before Les Bleus’ World Cup exit, star striker Nicolas Anelka was sent home after he unleashed a profanity-laced tirade against the team coach.  In protest, the entire team boycotted practice before its next match.  Captain Patrice Evra got into an altercation with his fitness coach – who promptly quit and stormed off the field on camera.  After that, coach Raymond Domenech bizarrely read a letter publicly by the French team attempting to justify their boycott.

This is a classic case of an organization not understanding the need for sound crisis management.  Many of these incidents could have happened behind closed doors.  The public theatrics and lack of a coherent response drove this debacle.  In crisis public relations, the key imperative is transparency with your stakeholders so they understand what’s happening – ensuring you, and no one else, directs and controls the media narrative.  Still, when tensions run high, it behooves an organization’s leaders to behave well in public, lest they add more fuel to the fire of public contempt.

Of course, there’s always a way out – even a total implosion allows for an organization to start over fresh.  For France’s sake, this requires an open, honest team apology to the nation, and a promise to go forward with honor, candor, and controlling their fits.  No doubt this phase of the PR crisis is over, but we’ll go out on a limb and predict there’s more to come…

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 Mexicoseriously?)

• 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.

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.

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.

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.