ceo crisis communication brief
TRANSCRIPT
CEO Crisis Communication Brief!
April 4, 2009!
Why so important? !
! " Journalists and analysts are likely to break the news of misreported earnings.!
! " Shareholders are likely to bring class action lawsuits against the company.!
! " Security and Exchange Commission (SEC) is likely to investigate the case.!
Why so important? !
CE is facing one of the !greatest threats !in its history! !
Aim of crisis communication !
Build good relations with all related stakeholders, mitigate reputation damage.!
Aim of crisis communication !
Even if the possibilities come true, reduce lost to the minimum.!
Who are the key stakeholders
in this event? !
! " Media!
! " Wall Street Analysts!
! " Brokers!
They decide all the other stakeholders’ thoughts.!
Who are the key stakeholders
in this event? !
! " Investors!
! " Board members !
! " Employees!
! " Stockholders!
Their support will help us come through this crisis.!
Who are the key stakeholders
in this event? !
! " Government and regulatory agencies!
! " Customers and suppliers!
Maintaining credibility among them is the key.!
What shall we tell them? !
Corrective Action!
! " We are launching an internal investigation to determine how this occurred. !
! " We are creating stringent guidelines and policies to prevent this from happening in the future.!
! " We are committed to investigating the matter thoroughly and taking immediate action as appropriate. !
What shall we tell them? !
Mortification!
! " Regardless of how this happened we are sincerely apologetic for the oversight and consequences that have occurred as a result.!
! " ConsoE is extremely concerned about this matter and look forward to having the issue resolved in the fastest manner as possible, for the benefit for the all parties involved.!
What shall we tell them? !
Bolstering!
! " ConsoE has a strong commitment to the most honorable relationships with its investors. !
What shall we tell them? !
Internal Message/ Image Restoration!
! " Educate employees on media relations’ procedures. !
! " At this moment no jobs will be affected by this situation.!
! " We will communicate information regarding 401(k) and other employee stock options as it becomes available. !
! " We are working to restoring the reputation of the company.!
! " Until further notice business should continue as usual. !
How can we save our company? !
! " Chairman of the board should make clear that ConsoE will fully cooperate with any investigations!
! " Set up audit committee!
! " Determine company solvency (restate financial results) !
! " Speak with legal council before speaking to press!
! " Communication that actions were the result of a mistake!
! " Create constant contact with financial community!
When shall we do this? !
Timing Message Medium Evaluation
9:00am Top management meet
with legal advisors to
determine what
information will be
disclosed to public
Face to face Ensure that specific
responses to any media
inquiries are agreed
upon
10:00am Invite all shareholders to
teleconference
Telephone RSVP
11:00am Top management debrief
supervisors in their
respective units
Face-to-face Management feedback to
communications unit
confirming they have
debriefed supervisors
12:00pm Supervisors meet with
their respective
employees to provide
essential facts (a financial
oversight has been
discovered)
Face-to-face Supervisor feedback
regarding employee
concerns/questions
When shall we do this? !
Timing Message Medium Evaluation
1:00pm! Clearly define procedure
employees should use
for press inquiries!
Intranet and supervisors! Supervisor feedback
about employee
concerns/questions!
2:00pm! Meet with shareholders
to inform them that
there has been a
financial oversight!
Invitation only
teleconference!
Shareholder feedback !
Establish section on
Investor Relations
website solely devoted
to the current situation
w/ current info. !
Accessible via ConsoE
website!
Number of hits &
content of Q & A forum
(see Appendix)!
Establish toll free
telephone line for
shareholders to obtain
up-to-date information
regarding finances!
Toll-free line to finance
department!
Number of calls and
content of inquiries!
When shall we do this? !
Timing Message Medium Evaluation
3:00pm! Inform media that there
has been an accounting
error and that the
company is investigating
it!
Newswires & call
reporters at major
financial news outlets!
Media monitoring (print,
online, and TV)!
4:00pm! Inform media that
ConsoE has launched its
own internal investigation
of the situation!
Newswires and ConsoE
website!
Media monitoring!
5:00pm! Shane hold press
conference for major
financial media!
In person! Media monitoring!
6:00pm! Re-convene crisis
management team (top
management,
communications
department, legal
counsel, CFO) to analyze
results of media
monitoring!
Face-to-face! Identify key messages
that should be adjusted
or reiterated!
But, whenever there is a threat, there is an opportunity… !
1993, Pepsi, Craig Weatherup!
1996, Odwalla, Stephen WIlliamson!
2007, Mattel, Robert Eckert !
2009, ConsoE, D. Emmett Shane!
Will this be another success story?! Let’s write the history!!