sprinting from sandy: new york road runners and the pr storm surrounding the 2012 ing new york city...


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SPRINTING FROM SANDY: NEW YORK ROAD RUNNERS AND THE PR STORM SURROUNDING THE 2012 ING NEW YORK CITY MARATHON Slide 2 HISTORY OF NEW YORK ROAD RUNNERS 1958 - FOUNDED BY RUNNING PIONEER, TED CORBITT. 1970 - INAUGURAL NEW YORK CITY MARATHON 127 PEOPLE REGISTERED $1.00 REGISTRATION FEE MARATHON COURSE CIRCLES CENTRAL PARK FOR ALL 26.2 MILES. 1972 - FRED LEBOW TAKES OVER AS NYRR PRESIDENT 1976 - MARATHON COURSE EXPANDS ACROSS FIVE NYC BOROUGHS 1972-1981 MARATHON SUBCATEGORIES LAUNCHED 1980 - NYRR AMONG THE FIRST ORGANIZATIONS TO OFFER SUBSTANTIAL CASH PRIZES FOR TOP MARATHON FINISHERS 2003 SIGNS MULTI-YEAR DEAL WITH ING AS MARATHON TITLE SPONSOR 2005 MARY WITTENBERG BECOMES PRESIDENT AND CEO OF NYRR, AS WELL AS RACE DIRECTOR OF NYC MARATHON Slide 3 2012 ING NYC MARATHON COURSE nyrr.org Slide 4 2012 ING NYC MARATHON COURSE nyrr.org Slide 5 2012 ING NYC MARATHON COURSE nyrr.org Slide 6 NYC MARATHON FINANCIAL IMPACT The ING NYC Marathon is estimated to be worth $320 million. 2012 entry fee: US Resident - $255 International - $347 On average, a single runner spends $1,800 over the course of the weekend. Each runner averages three guests. Runners can choose to run for an official NYRR Charity instead of paying entry fee. Must raise $3,000 - $5,000 individually In 2011, $34 million raised for charity NYRR 2011 total revenue: $53.8 million. Only donated $494,000 to charity $208,340 of that to their own charities Slide 7 SANDYS PATH OF DESTRUCTION weather.com Slide 8 SANDYS AFTERMATH DEATH TOLL: 108+ PEOPLE HOMES AND BUSINESS WITHOUT POWER: 656,000 MAJOR HIGHWAYS, SUBWAYS, BRIDGES, AND TUNNELS CLOSED. NEW YORK STOCK EXCHANGE CLOSED FOR TWO DAYS. TOTAL AMOUNT OF REPAIRS FOR NEW YORK: $42 BILLION $32 BILLION FOR REPAIRS AND RESTORATION $9 BILLION FOR PREVENTATIVE MEASURES AGAINST FUTURE STORM TOTAL AMOUNT OF LOSSES IN NYC: $19 BILLION $3.8 BILLION COVERERED BY PRIVATE INSURANCE. $4.5 BILLION IN FEMA ASSISTANCE. $9.8 BILLION OUT-OF-POCKET Slide 9 THE CANCELLATION OF A MARATHON LATE EVENING, MONDAY, OCTOBER 29 TH NYRR President & CEO, Mary Wittenberg, announces that NYC Marathon will not be affected by Hurricane Sandy. TUESDAY, OCTOBER 30 TH Wittenberg issues official statement: NYRR continues to move ahead with its planning and preparation. WEDNESDAY, OCTOBER 31 ST Mayor Bloomberg issues official statement: marathon will continue as a symbol of vigilance. Wittenberg issues statement regarding race fees. Withdrawal = guaranteed spot in 2013 race, but 2013 fee is still mandatory. No entrance fee reimbursement for 2012. Slide 10 THE CANCELLATION OF A MARATHON MORNING, FRIDAY, NOVEMBER 2 ND Marathon Expo at Jacob K. Javits Center takes place. Mayor Bloomberg issues statement: marathon is still on. We have a 24/7 operation going that Im confident were going to do. LATE AFTERNOON, FRIDAY, NOVEMBER 2 ND Marathon cancelled. Wittenberg and Bloomberg issue joint statement. Bloomberg We cannot allow a controversy over an athletic eventto distract attention away from all the critically important work that is being done to recover from the storm Wittenberg Today it is my job to say there will not be a 2012 ING New York City Marathon. Slide 11 THE CANCELLATION OF A MARATHON probusy.blogspot.com Slide 12 THE CANCELLATION OF A MARATHON SATURDAY, NOVEMBER 3 RD First email goes out to NYRR registered marathon runners from Wittenberg. Suggests reason behind marathon cancellation is antagonistic and grueling media coverage created unsafe environment for runners. Asks for donations for NYRRs Race to Recover charity. No information on financial reimbursement. Slide 13 THE CANCELLATION OF A MARATHON Slide 14 STAKEHOLDER RESPONSE ONLINE MESSAGE BOARDS Mostly negative I will never run another NYRR race. disingenuous. She can give away millions of runners of money [sic], many of whom are barely scraping by, but she will gladly keep her bloated salary. NEWS MEDIA MIKE VACCARO NEW YORK POST Wittenberg heartless arrogance embodied by NYRR. Called for Wittenbergs resignation from NYRR Slide 15 FINANCIAL IMPACT NYRR Didnt have to give out any prize money to top finishers. $1.1 million donated to its own charity Race to Recover. Tax write-off Still had to pay sponsors and television affiliates. NEW YORK CITY 40,000 of 47,500 runners, and their guests, were already in NYC at time of cancellation. Still spent money on hotels, food, entertainment. Added to volunteer manpower, saving NYC money. Slide 16 DISCUSSION Slide 17 UNDERSTAND YOUR STAKEHOLDERS Wittenberg ran the marathon like a business instead of an integral part of an entire city. People who live in New York City have a deep, extreme love of their home. Its one of the traits that sets locals apart from tourists. Mary Wittenberg and New York Road Runners failed to recognize that most of the people in New York City didnt care about the marathon they cared about their city. Wittenberg ran the marathon like a business instead of an integral part of an entire city. By putting the marathon ahead of the citys inhabitants, she caused an extreme drop in NYRRs reputation. Slide 18 DISCUSSION TIMELY AND HONEST RESPONSE Instead of having behind-the-scenes meetings and being absent from the public eye for an extended amount of time, an immediate response to the situation or crisis presents the stakeholder as a primary priority. A timely response can also immediately start the diffusion of the crisis. One of the first steps of any crisis situation is to address your stakeholders. A timely response ensures that the first step is taken and the crisis management plan can continue to move forward. An honest response shows the stakeholders that the organization or business can be trusted. Even negative (albeit, non-damaging) information can have a positive outcome, as it shows that the organization or business cares about its stakeholders and wants them to have every possible piece of information. Slide 19 DISCUSSION REBUILDING POSTURE AND BOLSTERING POSTURE Rebuilding Compensation Providing money or gifts to victims & stakeholders Apology taking responsibility for crisis and asking forgiveness. Bolstering Reminding reminds stakeholders of past positive actions Ingratiation praising of stakeholders Victimage relates organizations experience to that of the stakeholders. Slide 20 QUESTIONS 1.How would you have changed NYRRs first response after the hurricane? 2.Who were NYRRs primary stakeholders? Who were the citys primary stakeholders? Did they have any of the same? 1.Do you think Mayor Bloomberg responded appropriately? 2.How would a public, highly visible volunteer aid appearance by Wittenberg have helped her reputation? Slide 21 QUESTIONS 1.Besides the attribution theory, what other ways did New York Citys inhabitants respond to NYRR? How did they respond to city officials? 2.What was the role of social media in this crisis? How did it help or hurt NYRR? 1.What can NYRR do to help their reputation as they try to move forward? 2.If you were in Wittenbergs situation, what would you have done?