Category Archives: Crisis Management

Jun 01

The empathy gene

Posted on by


June 1I
happened to catch The Bill Maher Show the other night and overheard a
discussion about President Obama's handling of the Gulf disaster. Regardless of
one's perception of how well or poorly Obama has done, Maher said, he lacks
'the empathy gene.'

I
found the observation particularly astute. Obama does lack the empathy gene and
reminds me of what I've read about President Woodrow Wilson. I've just
completed a book entitled, 'George, Nicholas and Wilhelm' by Miranda Carter. It
details the three royal cousins and grandsons of Queen Victoria whose
dysfunctional relationships and management helped precipitate World War I.
According to Ms. Carter, there were very few things all three monarchs agreed upon.
One, though, was Wilson, whom Wilhelm described as an 'unmitigated, academic
bore.'

Indeed,
Wilson's highly-documented intellectual snobbery and near-total lack of
compassion contributed to his failure to convince Congress to agree to join the
League of Nations (the U.N.'s predecessor). That, in turn, set in motion the
chain of events that eventually led to World War II.

Obama
is a modern-day Wilson. He has shown a complete lack of empathy towards the
Gulf disaster and its inhabitants. Sure, he's held press conferences and made a
visit or two. But, where's the tearing eyes of a Ronald Reagan or the
hysterical sobbing of a William Jefferson Clinton? The country in general, and
the Gulf Shore in particular, desperately need to see some empathy from 44.

The
missing empathy gene got me thinking about how the various presidents in my
lifetime might have demonstrated empathy in the midst of the Gulf calamity.

Here's
what I came up with. See if you agree:

–
Obama: Cool, calm and collected to a fault. Zero empathy.

–
W: He'd be curled up in front of the tube watching a Texas Rangers game,
totally oblivious to the disaster. When finally informed, he'd defer to Cheney,
who'd laud BP for its rapid response.

–
Clinton: His tears would rival the number of gallons of oil spilled to date.
The man would be beside himself (and probably cozying up to a comely Alabama
intern to help him deal with his own, inner demons).

–
41: I think George H.W. Bush would have paid multiple visits but, lacking the
vision thing as well as any understanding of the common man, would probably
register low on the empathy gene scale.

–
Reagan: He'd know exactly what to do. He'd shed a tear or two, make us proud of
the relief workers and remind us that America's gotten through bigger crises in
the past. It would be one of his very, best roles.

–
Carter: Jimmy, Roslyn and Amy would not only be on-site full-time. They'd be
dressed in overalls and fully immersed in picking up debris and building protective
barrier reefs.

–
Ford: A genuinely good guy who had a degree of empathy. I think he'd say and do
the right thing.

–
Nixon: Forget it. A blue serge suit doesn't work well in those humid Gulf
temperatures. Plus Nixon would blame those nattering nabobs of negativity, the
press, for making a mountain out of a molehill.

–
LBJ: A Texas native and someone who looked like he was in constant pain, I
believe LBJ would have risen to the occasion and demonstrated the right
combination of empathy, sympathy and pathos.

–
JFK: He was all about his own image as The Cold Warrior. Displaying any sign of
weakness was a sure sign to the Soviets that JFK lacked the spine to fight a
nuclear war. No tears on the Gulf for this short-lived king of Camelot.

–
Ike: He was the guy who first warned us about the military-industrial complex
(think: Goldman Sachs and the Securities & Exchange Commission and BP and
MMS). Ike also managed the D-Day invasion. He'd find the fastest solution, but
he'd do so in a cold, dispassionate manner.

Questions?
Comments? Issues? Top-kill alternatives?

May 28

Three takes on two very different crises

Posted on by


May 28In
a special Memorial Day edition of RepMan, I’ve asked my roving band of guest
bloggers to posit their collective POVs on two very different crises: the BP
nightmare in the Gulf of Mexico and Sarah, the Duchess of York (aka Fergie) and
her sleazy move to sell access to her ex-hubby, Prince Andrew. I hope you’ll
find their takes of interest, encourage you to post comments and wish one and
all a long, happy and healthy Memorial Day weekend.

Abby Schoffman
reporting from New York on BP’s Twitter nightmare

Just
in case BP doesn’t have enough to deal with right now, the digital world
decided to throw them something else to strategize about – @BPGlobalPR. No, this isn’t the
company’s PR posse tweeting updates about the latest efforts in the top kill
efforts – you can find that over on @BP_America’s
stream, the company’s legitimate account.

@BPGlobalPR,
on the other hand, is a humorous imposter filling the Twitterverse with a
different take on the situation. The fake account was started last week and
already has almost 50,000 more followers than the official BP account. Although
some of the tweets are a bit vulgar, the
majority of them offer some comic relief, in an “I can’t believe they just said
that” kind of way. But I suppose it’s only humorous if you realize it’s not
actually BP spouting out things like “A bird just stole my sandwich! You
deserve everything you get, nature!!! #bpcares.”

Many
people are mistaking the imposter account for BP’s real account – and they’re
getting pretty worked up about it. Having people think that a company is poking
fun at such a serious, self-created disaster with a satirical Twitter account
could create permanent brand damage. Unlike other cases of fraudulent Twitter
accounts, where they’ve been taken down, BP is
letting it slide for now. According to a recent AdAge article, BP is aware of the account
but realizes that people have the right to discuss their feelings about the
situation.

I
have mixed feeling about the account. I like that BP understands that people
are going to say whatever they want about the brand, whether BP likes it or
not. But if some people aren’t realizing it’s a joke, then maybe BP should step
in. That doesn’t mean they have to insist the account is taken down, but they need
to make it clear that the account isn’t affiliated with BP (although I’d argue
that it’s already pretty clear to the majority – or at least I’d hope so).

So,
is this a case of a company realizing that you can’t control everything in the
realm of social media or is it that they just don’t know how to manage a crisis
in the digital space?

Ann Barlow in San Francisco
says BP’s full-page ads are about as effective as its oil-spill containment

We’re
pinning a lot of hope on the top-kill solution, BP’s attempt to halt the
seemingly inexorable flow of oil. 
Meanwhile, BP’s reputation is plummeting about rapidly as the health of
Gulf-area wildlife – and so far the solutions for both have been equally effective.

For
instance, BP has taken out full-page ads in a number of major newspapers across
the country to talk about what it’s doing and where readers can go for more
information. It’s using the opportunity to reinforce its commitment to making
things better, being the good corporate citizen that it is.

Too
bad corporate ego, lawyers and an ability to rationalize almost anything will
prevent them from saying what we all need hear. That they screwed up.  They were arrogant. They were reckless. They
put the chance to make a little more money for shareholders and executives
ahead of the lives of the people, animals and plants across an enormous swath
of water and coastal land.

Unless
and until they can do that, I’d just as soon BP put its money into mopping up
the mess they made.  That’ll clean up
their reputation better than any ad can. 

Of course, lucky for
the oil company as well as Exxon-Mobil and others that have wreaked havoc on the environment through shortcuts, people have short
memories, the media have an even shorter one, and BP has lots and lots of
lawyers. We’ll move on, BP will continue to make billions, and the Gulf Coast
will wonder why everyone forgot them. Maybe BP can take out full-page ads once
in awhile to remind us.

London’s Carl foster
on Fergie, the Royal Family’s version of an oil spill

No
two crises are ever the same, not least because every individual or organization
at the wrong end of a crisis has a different brand promise – the bigger the
brand, the harder the fall. Take the brand promise of Sarah, The Duchess of
York (to give her the official title). She is an aristocratic ex-royal; an
individual from whom you would expect the highest standards of behavior. Well,
it is exactly that expectation that makes a video of her accepting money from a
fake businessman to 'open doors' to her ex-husband, but still close friend,
Prince Andrew, the UK's Special Representative for International Trade and
Investment, all the more shocking. A football agent taking bribes? Who is
surprised? An ex-royal? Well, it's all terribly vulgar.

What
next for Fergie? Her PR people pulled their trusty crisis manual off the shelf
(and when you represent the Duchess of York it never gathers too much dust) and
started following the rules. Step one: Appear contrite, put out a statement
expressing regret and put your actions in context (she is broke). Step two:
Line up a high profile TV appearance, such as Oprah, to get your story out (at
least Oprah will be more effective for Fergie than full page newspaper ads are
for BP). Next you can expect her to lay low for quite sometime, then do some
staged appearances, then do some charity work, or in the case of Fergie, more
charity work.

Hopefully
the Duchess of York will be able to get over this reputation crisis and get
back to the point where she was respected as a businesswoman and admired for
her part in the most amicable divorce in Britain. A lot will depend on her PR
handlers from now on.

May 03

It wasn’t our accident

Posted on by


Mar 3 BP CEO Tony Heyward has been beautifully trained to handle the mainstream U.S. media questions in the aftermath of the Gulf oil spill.

He begins each interview by thanking the anchors 'for the opportunity,' then makes it quite clear that, while the oil spill wasn't BP's fault, the clean-up is the corporation's responsibility.

He deflected questions wondering why BP so badly miscalculated the initial amount of damage by likening the repair work to 'performing open heart surgery 5,000 feet below the water' (that phrase has some PR person's fingerprints all over it). Finally, when given the chance, he waxes poetic about the 'armada' of ships and 'fleet' of planes BP has harnessed to 'contain' the spill.

From a PR standpoint, BP is making the best of a horrific situation that, excuse me, they caused. Their only mistake is blaming the oil rig owners for the spill (pointing the finger at others never works in these situations, but lawyers insist upon it in order to limit future civil and criminal lawsuits).

All in all, though, Heyward did a nice job staying on message and conveying BP's key message points. When I see a CEO under duress, I always chuckle and think about Brad Irwin, the president of North American operations for Cadbury-Schweppes. Check out this video. The guy was so well trained (or, so poorly trained, depending upon one's P.O.V.) that he was unable to think on his feet and answer any other, industry-specific questions. In the end, he comes cross as a buffoon whose only answer to macro questions is to hawk his new sugarless gum.

A CEO like Heyward can calm fears and inspire confidence in the midst of chaos. An executive such as Irwin can create a mini-crisis by being inflexible, incompetent and inept.

So, here's hoping BP can get the spill contained sooner rather than later (and that Cadbury's in-house PR team and agency partners will study Mr. Heyward's performance). In fact, they should chew on it awhile before they place another high-ranking official on network television.

Feb 23

Is Toyota this decade’s Enron?

Posted on by

The latest terror suspect Najibullah Zazi, as well as the makers of Avandia and hot dogs have to be breathing a little easier this morning (well, at least the Avandia and hot dog makers are).

February 23 All three were caught in the crosshairs of breaking crises, but avoided being the lead item on nightly news and talk shows thanks to good, old Toyota.

Good and old are apt descriptors for the automaker. I say that because Toyota's management is practicing what was once considered smart management and crisis communications in the good, old days. Denial, obfuscation and evasiveness worked well in the dark, distant past. But that was then and this is now.

Silence seems to be the watchword of Toyota's communications strategy today. This, despite mounting evidence that their entire line of cars is stricken with a fatal flaw: an accelerator that doesn't have a fail safe mechanism.

As a result, politicians, consumer watchdog groups and investigative journalists alike are salivating like Pavlov's dog at the prospect of bringing down a big, bad business caught being a big, bad business. It's a Hollywood movie plot that screams out for the likes of Michael Douglas, Meryl Streep and Dustin Hoffman in the lead roles.

And, it also goes to show that all the public relations and advertising in the world are meaningless if the product is rotten and the company's leaders are caught covering up the damage. All of which leads to my question of the day: Will Toyota be this decade's Enron?

Dec 03

Eye on the Tiger

Posted on by

Guest post by Lia LoBello, Peppercom

December 3 - tiger-woods Like many Americans, I woke up Friday, November 28 basking in a post-Turkey Day glow. I wanted nothing more than the simple pleasure of flipping on the TV and enjoying the sweet sound of a billion reporters screaming about Black Friday shopping lines.

I was denied. Instead, the media was beside itself, breathlessly reporting that Tiger Woods had crashed his car into a fire hydrant and a tree on his own property “This is not news,” I cried to my family. “Who cares about this?” My dad, as big a golf enthusiast as they come, simply shrugged. Little did I know, it was only the tip of the iceberg.

The media cared plenty. The reporting continued, largely unsubstantiated, for five solid days until Tiger released a statement on Wednesday, December 2, apologizing for his “transgressions.” His carefully worded statement neither confirmed nor denied a reported affair – supposedly the cause of a fight between Tiger and his wife causing him to flee his home and crash – and instead, asked for privacy.

In the days leading up to the statement, I found myself trying to answer the million dollar question for public relations professionals watching this episode unfold – did Tiger wait too long to talk? I say no. 

By not indulging the media feeding frenzy desperately searching for a fact amidst heaps of speculation, Tiger exposed the 24/7 media cycle for what it is – a shoot first, substantiate later circus that disregards objectivity in favor of ratings and which reports rumors carefully couched as to appear real.

“Will sponsors stand behind him?” they begged to know. “Will fans ever forgive him?” The answer, and no surprise here, appears to be yes.

Reading through the comments on TigerWoods.com, numbering more than 9,000 by late Wednesday night, a relatively mixed bag of benign “We’re behind you!” and “How could you do this?” comments exist. And according to Zeta Interactive via the Wall Street Journal, Tiger's online positive approval rating dipped 23 percentage points to 71 percent. With all due respect to Zeta Interactive – those metrics mean nothing to the average American and further, are higher than the current presidential approval rating. Additionally, Nike, Gatorade and EA Sports all released statements saying their relationship with Tiger was unaffected.

Thanks to a previously spotless reputation and the exaggerated reaction of media, I think Tiger’s fans will quickly forgive and forget his “sins.” What we shouldn’t be so quick to forgive is the media’s inundating of our "news" with pointless discussion and debate about a celebrity’s possible dirty laundry. To think of how we could all benefit if the same effort was employed for actual news – say the ongoing war in Afghanistan, the recent New York Senate gay marriage ban or healthcare. Perhaps we should start asking our Senators and soldiers to get handy with a five iron.

Oct 05

Top 10 reasons why David Letterman did a great job of managing his crisis

Posted on by

10.) He was prompt
9.) He admitted fault
8.) He called his actions 'creepy'
7.) He made the announcement on national TV
6.) He apologized
5.) He used comedy, a powerful weapon, in an appropriate way
4.) He made clear he hadn't violated the workplace policies of either CBS or his own company
3.) He made clear that the timing of the workplace liaison predated his becoming married
2.) He was genuine in his remarks, and, drum roll please…………….

1.) He used the right platform at the right time and in the right way to convey the message

October 5 - david-letterman-heart-surgeryToo many CEOs balk at disclosing negative information. Or, they bumble their way through stiff, obviously rehearsed remarks. Or, they stop short of admitting fault and assuming responsibility. Or, they'll have a PR spokesperson handle the media on their behalf. Or, they'll let the lawyers control the message which ends up sounding like pure gibberish. Or, they'll bury their heads in the sand and hope to ride out the storm.

The Letterman story may have additional chapters before it ends. But, in my book, the man handled the image and reputation elements of the communications as well as I've ever seen.

Now, ladies and gentlemen, here's Paul Schaefer and the 'Late Night' Band playing, 'I'm a Man,' by Chicago.

Aug 21

Can I get you a drink?

Posted on by

Guest post from Alyson Buck

August 21 - obama beer We’re a few weeks out from the beer summit between President Obama, Professor Henry Gates and Sgt. James Crowley. The meeting was an attempt to smooth over the subsequent PR aftermath of the racial firestorm that ensued from the Cambridge arrest. Admittedly, the meeting was a pretty significant maneuver by the president to take it upon himself to address such a major issue head on. However, the significance of the meeting was overshadowed in the media by the beer choices of the participating parties. Yes, our president decided to solve a major social issue over a cold brewski.

Begs the question — has #44 made himself too accessible?

During his run for presidency, Obama embraced Twitter and Facebook, making himself more accessible to a younger generation. He stood toe-to-toe to Stephen Colbert and did the late night circuit in an effort to show that he’s a likeable guy in touch with reality and eager to address middle-class average Americans’ needs. And in a time when the current president couldn't have been more out of touch, it was just what the country ordered. Like Bill Clinton's MTV sax solo before him, this approachable demeanor is arguably one of the main reasons Obama was able to secure a seat in the Oval Office.

I dig a president that's in touch with his country. I can get behind a guy that understood the value of social media (Full disclosure: He embraced Twitter long before this Millennial). But the role of president comes with serious responsibility and serious cache. The man is CEO, head honcho, top dog — yet he's settling what's turned into a major race dispute over a Bud Light. I've known many a dispute to be solved over a drink (probably more were started but who's counting) but is this the way we want our country’s leader to solve complex social issues that stretch back centuries?

I'm torn. On one hand I want Obama to be in touch with Americans and bring a fresher perspective to the White House. On the other, there are complicated issues — socially, economically — that need serious attention. Unfortunately I'm not sure they can be solved over the King of Beers.

Aug 06

When lawyers call the shots, corporations typically lose in the court of public opinion

Posted on by

Proving the old adage that those who ignore history are doomed to repeat it, Yamaha Corporation, makers of a white hot, off-road vehicle called the Rhino, were absolutely skewered by CBS evening News investigative reporter Armen Keteyian.

August 6 Doing his best retro impersonation of Mike Wallace in the latter’s halcyon 60 Minutes’ days, Keteyian dug deep into Yamaha’s files to find damaging memos, pulled off a beautiful ambush interview in the corporation’s lobby and enlisted the support of the new head of the Consumer Products Safety Commission to absolutely crucify the organization for knowing all about rollover problems with the Rhino, and doing nothing about it.
 
Keteyian interviewed a consumer who’d lost his hand as a result of a Rhino rollover, aired a video from a Yamaha dealership in which a salesman rolled his Rhino over in the parking lot and, get this, unearthed a 2002 internal company memo admitting that Yamaha’s president and vice president had both been injured when they’d taken the Rhino for a spin. Ouch!

I cringed as I watched minute after minute of evidence pile up and waited for the Yamaha response. It finally came after the ambush interview (in which an armed security guard ordered Keteyian to leave Yamaha’s lobby. That certainly projected a warm, fuzzy feeling). Yamaha’s response? A few paragraphs from in-house lawyers pointing to the Rhino’s spotless safety record and suggesting that any accidents were the result of reckless driving by over enthusiastic enthusiasts (Hey Yamaha: Ever hear of the Ford-Firestone SUV rollover crisis?).

The Yamaha Rhino story is a textbook example of how not to handle a breaking crisis and yet another example of how badly lawyers can bungle corporate reputation. Lawyers live, eat and breathe caution. And, in a situation such as this, are far more concerned about legal liabilities down the road than popular perception today. And, that’s what will cost Yamaha dearly in the weeks and months to come.

I’m not privy to the facts of the case, but I do know that Yamaha should have been much more forthcoming in admitting guilt (assuming Keteyian’s facts are true). They should also launch an internal investigation of the product, suspend manufacturing until the flaws are found and fixed, and compensate the victims of any Rhino rollovers.

Corporate communications executives like to talk about how our profession is increasingly ‘earning a seat’ at the table and playing a more strategic role in an organization’s business decisions. The Yamaha crisis reminds us, once again, that far too many corporations still see PR as little more than a staff function.

Dec 09

What’s Become of the F Word?

Posted on by

I don't see it, hear it or read it anymore. In fact, the F word has literally disappeared overnight from the American vocabulary. Oh sure, some irate Manhattan cab driver will still employ it. A PR executive who's just been told his agency's 2009 budget has been yanked is likely to let loose. And, we Jets fans certainly call upon it on most Sundays.

But, that's not the F word to which I'm referring. You see, I'm speaking of an F word that's barely registering a pulse these days: "Fun."

Fun is gone. It's vanished, and it's bordering on becoming extinct. In its place, we've seen the sudden emergence of fun's evil twin: "Fear."

Kathryn Williams, the "W" in KRW, a top leadership/coaching firm who participated in our webinar last week, stressed the urgency of fun. She said the best leaders, the ones who will become heroes in this current economic cataclysm, are the ones who will take care of themselves first and then "administer aid" to their employees. She likened it to the airplane instructions in which adults are advised to don their own oxygen masks before applying their children's.

That makes perfect sense. I see too many executives walking around with a hangdog look on their face. Their expressions and non-verbals say it all. They're scared. They're paralyzed. They've never seen anything like the current economic climate. Well, guess what? They unknowingly project those feelings to those around them and, soon, very soon, an entire organization becomes paralyzed.
And, paralysis is a one-way ticket to business oblivion.

Heroes find a way to rise above the fray. They take time to laugh in the face of fear. They bring the other F word back to its rightful place.

So, cut your costs. Find your new revenue streams. But, don't forget about having fun, too. Williams suggests leaders find the time for neck and back massages, meditation or other forms of relaxation. Personally, I opt for a mix of stand-up comedy, long-distance running and any sort of historical/biographical/comedic reading material.  

I also go out of my way to inject humor in the workplace, whether it's through hallway banter or an e-mail comment purposely designed to elicit a chuckle. I told one of our senior directors that I see myself in the Bob Hope role at Peppercom, responsible for raising troop morale.

You can do it, too. And you should. So, check the doom-and-gloom at the reception desk when you arrive each morning. We'll get through this. And people will remember whether you led the way with cheery optimism or buried yourself in your office with a bunker-like mentality.

Dec 04

Employees Aren’t a Key Constituent Audience

Posted on by

I've always believed employees were a key constituent audience, especially in times of crisis. As a matter of fact, I've counseled countless clients to consider employees their most important audience since they are any organization's first line of defense. But, I was wrong. Employees aren't a key constituent audience. In fact, they shouldn't even be labeled as such.

Anthony Johndrow of The Reputation Institute hit the nail on the head in our webinar yesterday when he said employees should be treated as partners and colleagues, not as an "audience." He is so right.

Traditional, top down communications has been totally disintermediated by the blogosphere and word-of-mouth. Honest, transparent and frank discussions with employees on a peer-to-peer level are the only way to go in the current economic crisis, said Kathryn Williams of KRW, a leadership/executive coaching firm and another webinar panelist.

Johndrow concurred and said specificity is the key to lessening employee angst and fear of job loss. "The more they know exactly what's expected of them and how they can contribute to the bottom-line, the more likely they are to stay focused on the task at hand and not get caught up in the rumor mill," he said. 

The webinar was a fascinating exercise that focused on how each and every one of us can become "heroes" within our organization. Panelists agreed heroes need to be honest, transparent, open to taking risks and, above all, a calm, steadying influence. Those are tall orders in the 24×7 all doom, all-the-time world in which we all live.

But, as was the case in past crises, the cream will rise to the top and new heroes will be anointed. And, each one will instinctively "get" that every employee within their organization is a colleague with whom to collaborate and not a constituent audience member to be talked at.