Crises Communications and the Media

Mike Lawson

DML Communications

What is a crises?

An unanticipated event that threatens the reputation of an organization.

Types of crises?

• Natural disaster• Economic disaster• Technical issues• Human error• Executive wrong doing• Legal issues

Crises externals

• Risk-averse audience• Audience has little faith with business

spokespeople• Media look for conflict to create stories• Competitors will take advantage of plight• Debating the issue shows guilty defensive

position

Crises Negative Results

• A single incident can:– Damage company reputation– Damage company profits– Damage company integrity– Damage company confidence

– Ultimately driving away your audience

Famous Crises Examples

Exxon Valdez

Exxon Valdez — Failure

• Tanker runs aground spills 11 million gallons of crude oil in Prince William Sound, Alaska

• Dead: 500,000 birds; 4,500 otters, 14 killer whales• Exxon chose to ignore criticism, didn’t communicate openly, shifted blame,

refused to acknowledge extent of damage (legal)• Paid nearly $10 billion in fines and damages

• Company simply failed on numerous fronts: – showed little leadership; – failed to show concern; – failed to involve media; – failed to respond to activists

Famous Crises Examples

Tylenol

Tylenol — A Success Story

• People died from taking cyanide-lased capsules• Tylenol acted quickly, proactively pulling their product from the

shelves without being forced to do so• They communicated openly and often with the public and had

an investigation• Tylenol was found innocent upon concluding the investigation• Tylenol had a favorable brand image with the public because

they pulled their product from the shelves quickly and communicated frequently with public

• Following the crises, Tylenol added safety seals on their bottles to prevent any further tampering

Famous Crises Examples

JetBlue

Jet Blue — Gets It Right

• Passengers stuck in Jet Blue planes on tarmac for up to 10 hours because of bad weather

• Angry passengers’ reaction spread quickly via online channels and media

• CEO takes blame head on — admitted it took too long to help those passengers

• CEO then announces $30 million investment to revamp procedures and create passenger bill of rights

• “We’re going to offer something that no other airline will offer customers. We’re going to be held accountable.”Jet Blue CEO, David Neeleman, on The Today Show

Famous Crises Examples

Ford/Firestone “Blowout”

Ford/Firestone = Failure

• Number of consumers died because of tire blowouts in Ford SUVs

• Both companies claimed innocence and blamed each other• Both companies did not communicate openly or honestly with

the public• Both companies implied lack of concern for their customers

– They ignored the deaths and injuries of their customers to protect their bottom line

• As a result, Ford and Firestone’s response, or lack thereof, to this crises alienated their customers and suffered serious damage for years afterward

Famous Crises Examples

Shot by Dick Cheney

Shot by Dick Cheney

• Shot his friend with a shotgun in a hunting accident• Did not communicate with public nor the

administration right away• Story took on a life of its own• Appeared he was hiding something• Cheney finally addressed the public but was too little

too late• As a result, Cheney’s mistake continues to be the

butt of many jokes to this day

Other Famous Crises

• Katrina (natural disaster)• Enron (creative accounting)• Major League Baseball (steroids)• Jack in the Box (e coli)• Wendy’s (found finger in chili)

Recent Crises Examples

• U.S. automakers travel to Washington, D.C. for bailout meetings in their corporate jets

Recent Crises Examples

• Financial services meltdown (U.S. economy)

Recent Crises Examples

• Credit union corporates (U.S. Central, Western, Members United, Southwest, etc.)

To Avoid a Crisis Panic

• Have a Plan!– Companies that incorporate effective crisis

communication strategies into their disaster recovery plans have a greater chance of mitigating negative media and public perceptions and enhancing their long-term credibility.

A Good Crisis Plan Requires…

• Honest self-assessment of yourself and your organization to recognize potential pitfalls:– Where are the gaps that potential problems could sneak

through?– Who are the execs who say the wrong thing to the wrong

people? (Don’t let them talk!)– What are your business practices that could be considered

unethical?– What are your essential services that could be knocked out

by natural disaster or hacked?

Appoint Good Spokespeople

• Determine who needs to be involved• Two spokespeople and two assistants to cover

incoming requests– Ensures at least one person will be available for media

requests

• Plan should be able to quickly and systematically add key personnel in case crises escalates

Get the Facts

Early access to the “who,” “what,” “when,” “where,” “why,” and “how” of a crisis situation allows key spokespeople to better respond to media queries and disseminate the most appropriate information to the public.

Provide Candid Responsesto Media and Public

• Don’t avoid certain topics• Don’t avoid questions by not answering directly• Don’t answer a question that could compromise an

ongoing investigation — but clarify why• If you don’t know the answer to the questions, tell

media that you will provide them with the information as soon as it’s available

Key Messagesfor Media and Public

• Rehearse or discuss possible crises situations• Determine key messages in each situation — and

stick to them• All statements to the press should incorporate your

key messages• Messages should be crafted to portray a corporate

image that is responsive, stable, and proactive

Communicate Effectivelyto Media and Public

• Respond quickly, accurately, professionally with care

• Be accessible!• Treat perceptions as fact• Acknowledge mistakes• Note the other side’s concerns• Make no public confrontations

Crises Communications in Today’s World

• Advent of Social Media…– Crises can erupt with unprecedented speed– Public has an insatiable thirst for news– Now anyone can break news in a blog, Tweet,

YouTube video, etc.– Porous boundaries between social and

mainstream media

Crises Communications Changing

• Social Media– Allows new crises to occur– Opens new channels to communication with audience– Don’t have to rely solely on media to distribute message– Lowers the cost of outreach while reaching more people

YouTubeTwitterFacebookBlogsPodcasts

How Fast is Social Media?

US Airways into the Hudson River43,000 views of Janis Krums’ TweetPic photo within first 4 hours

YouTube & Home Depot

1. Environmental group tried to upstage Home Depot’s CEO at annual meeting

2. Member of group unfurled banner reading, “Dam Home Depot, Protect the Rivers of Chile!”

3. Environmental group believed Home Depot could stop the dam project in Chile but wasn’t doing enough and was using wood directly harvested for the dam project

4. Home Depot immediately released video on YouTube explaining its side

5. Home Depot does not buy any wood related to the dam project6. Home Depot’s video controlled message to the public rather than go

directly through the media

YouTube & Home Depot

Twitter & Ford Motor Co.

1. Ford’s head of social media, Scott Monty, discovered Twitter messages stating Ford was going to shut down a popular fan site

2. The dispute prompted 1,000 complaints overnight3. Monty immediately responded to the complaints on his Twitter page and

on Ford’s page as well4. Monty made frequent updates to the website’s fan base5. Informed fan base that Ford lawyers thought the website was selling

counterfeit goods with Ford’s logo and wanted the site shut down6. Monty convinced the lawyers not to shut down the site because it was legit7. By the end of the next day, the situation was resolved8. Website’s creator renewed faith in Ford — thanks to Monty’s immediate

response

5 Steps to Manage a Crises

1. Be prompt in addressing the public and media upon immediately discovering the crises

2. Maintain your honestyThe public is more willing to forgive an honest mistake rather than a calculated lie

3. Be as informative as possible to quell any rumors4. Show the public that you care and are concerned

Again, the public will be more forgiving about a caring company

5. Maintain a two-way relationship with the publicListen to them and be proactive in your communication

6 Crises Responses

1. You can attack your accuser to eliminate their credibility

2. You can use denial claiming no crises exists3. Justification — where you claim no serious damage

was done or the victim was at fault4. You can use ingratiation to appease your audience5. You can use corrective action to “right your wrongs”6. You can provide a full apology asking for forgiveness

The Three C’s of Credibility in a Crisis

• During a crisis, effective spokespersons must, primarily through their non-verbal cues, leave their audiences with the impression that they are:

– Compassionate– Competent– Confident

• Think "Rudy Giuliani" on and after 9-11

Questions?

Mike LawsonDML Communications

760/845-8146dmlcomm@gmail.com

www.dmlcommunications.comwww.twitter.com/dmlcomm

http://dmlcomm.blogspot.com