Crisis Communication Final Alan Griggs

Megan Barry

Former Nashville Mayor

Occupying public office is the highest form of public trust. Such a position includes:

Accountability
Answerability (and the expectation of account-giving)
Assumption (of responsibility for actions and policies)

With the holding of public office there should be:

Integrity
Transparency
Ethical Standard
Responsibility
Trust

The Deepwater Horizon Oil Spill

April 20, 2010. In the Gulf of Mexico on a BP-operated oil rig. Flowed for 87 days.

Tony Hayward

CEO of British Petroleum (BP) during the oil spill. Fired his PR dept. Was callous, and inconsiderate. White shirt on dirty beach.

BP Mistakes

No PR strategy
Lied about being trustworthy
Failed to communicate 3 key messages
Would not tell the truth
Arrogant
Blame game
Unconcerned for victims
Inadequate solutions
CEO used inappropriate words and actions

BP failed to communicate three key messages to the public

1. BP was accountable for the disaster
2. It was deeply concerned about the harm it caused
3. It had a plan for what to do

Exxon Valdez Crisis

Prince William Sound, Alaska. EV grounded a reef, hull released 10 million gallons of crude oil into the water.

Long term effects of Exxon Valdez spill

Oil and oil residue still found today; slow recovery of the ecosystem

Changes after the Exxon Valdez oil spill

Drug and alcohol testing for tanker crews. Tanker routes. Crew training. Navigational equipment. Power systems. Spill response tech. 2 Hulls instead of 1.

National Transportation Safety Board findings (Exxon Valdez)

The third mate failed to properly maneuver the vessel; failure of the captain to provide a proper navigation watch. Failure to provide rest for the crew. Failure of the US Coast Guard to provide a good vessel traffic system.

Exxon: in denial

CEO disliked publicity and media
Ineffective use of media
The delay of an apology
Didn't establish an effective news center
The CEO did not go to the scene for a long time
Downsized the crews so they had to work long hours with little sleep
Delayed an overall effective response
Unconcern for the local residents and general public
Lack of proper spill equipment and tech

Essential elements of the crisis plan

1. Statement of purpose
2. Crisis communication team
3. Spokesperson assignments and training
4. Audience ID and notification procedures
5. Media list and response plan
6. Media background materials
7. Forms
8. Review and maintain the plan

Statement of Purpose

Includes a commitment to communicate fully and responsibly (CEO)

Crisis Communication Plan

Who comprises this? Complete contact info and specific roles

Spokesperson Assignments and Training

Who speaks for your organization? The CEO? Someone with communication skills? Are coaches available? Do advanced media training. Compile a list of "horrible" questions for the spokesperson--be tough.

Crisis Plan includes

What are the facts we know? What is the current status of the situation? Who's been notified? What's likely to occur over the next hour? Also includes a standby statement while awaiting more info.

Fly Ash (Coal Ash)

Tennessee Valley Authority dike bread, spilling toxic ash everywhere. Jacob's engineering tried to clean it. Both companies sued because they were taking short cuts, and both companies tried to make the situation go away quickly.

Ford/Firestone Crisis

Henry Ford and Harvey Firestone were friends and family. Ford Explorer had a rollover problem, Firestone tires had tread destruction problems, cultivated in unsafe cars. Finger pointing, loss of life, and business bonds breaking.

Outcomes of the Ford/Firestone Crisis

Stricter tire testing
Enhanced reporting requirements
Harsher penalties for manufacturers failing to report defects
A more involved rollover test
An electronic stability control system

A lesson from Ford/Firestone

What happens when companies fail to work together to solve a problem after the marriage of their products

VW Emissions Scandal

Technology to go around government-imposed auto emissions requirements
VW still faces many pending lawsuits, mounting losses to its reputation, continued scrutiny by customers, shareholders, and government regulators

What are the ethical issues in the VW Emissions Scandal

Poor leadership
Corporate lying
A cheating culture throughout the company
A lack of trust and accountability
Animal testing
Environmental concerns

PG&E: The Camp Fire

Butte County, California.
Negligent tree trimming around powerlines, failed maintenance.
84 counts of involuntary manslaughter

CEO of PG&E during Camp Fire

Bill Johnson

PG&E, California Groundwater Contamination

Erin Brockovich sued PG&E over the water crisis in Hinkley. Hinkley is not desolate.
Chromium 6

Talc/Johnson and Johnson

Baby powder with carcinogens

Starbuck's Response

1. An immediate, non-defensive acknowledgment that real damage was done
2. Taking personal responsibility for the event
3. Conveying a specific understanding of the effect of the company's action on the victims
4. Avoiding excuses or the slightest hint of blaming the victim
5. Providing appropriate compensation to those affected by the company's mistake
6. Detailing a plan for addressing the cause of the problem (systemic issues)/full-day training for unconscious racial bias
7. A commitment to and evidence of follow-up action

Universal rules for dealing with reporters

Never lie
Answer calls or messages of reporters
Stay on the record
Always prepare for an interview
Always have an agenda
Think before you speak
Keep your cool
Don't accept their definitions
Only be ambiguous when you want
Keep answers short when under fire
Avoid jargon
Avoid "no comment"
Be authentic

Never lie

Answer precisely; answer partially; answer but don't answer

Answer calls or messages of reporters

otherwise, you are hiding or ducking

Stay on the record

assume that everything you say in any situation can show up somewhere

Always prepare for an interview

if contacted unexpectedly, say you will get back and then do it

Always have an agenda

know your message

Bridge to your agenda

steer the discussion to your message, whatever reporters seek

Think before you speak

reporters may try to "trip you." Take a moment to compose your thoughts

Keep your cool

reporters will ask stupid questions; they might ask insulting questions or very personal questions

Don't accept their definitions

challenge any and all parts that aren't true

Only be ambiguous when you want

usually, it is better to be specific

Keep answers short when under fire

too many words will cause misinterpretation or reveal info you don't want in the public

Avoid jargon

use language that will be understood by the general public

Avoid "no comment."

what are you hiding? Don't be defensive

Be authentic

be yourself, not someone else

Your rights

decide if you want to do the interview
to know the broad issues in advance
to be comfortable and look good
to avoid comment
to say "I don't know" or "I don't understand the question
to pause to think
to ask who else is being interviewed for the story
to tape the interview

Types of questions

hypothetical
out of bounds
loaded preface
general
hit list
loaded

Hypothetical

"What if..." Response: Answer the question/deny the probability

Out of bounds

"What did X do?" Response: Answer the questions/ No firsthand knowledge

Loaded preface

"X is true. What about Y?" Response: "First, X is not true..."

General

"Do you always?" Response: "Our policy is..."

Hit List

"A is true, B is true, C is true, D is true..." "Response: "Let me clarify..." (Interrupt)

Loaded

"Which is it, A or B?" Response: "It's neither..."

Leadership Qualities

- Integrity/Authentic
- Innovative
- Ethical
- Active Listener
- Confident
- Visionary
- Communicator
- Delegator
- Decisive
- Accountable/Responsible
- Impartial (fair)
- Inquisitive
- Self-Motivated
- Humble
- Empathetic
- Disciplined
- Passionate/Cool-Headed
- Resilient
- Supportive
-Open-Minded/Adaptable

The Tylenol Crisis

-Unknown suspect filled Tylenol capsules with cyanide in Chicago, in 1982.
-7 people killed.
-Caused a massive recall and resulted in safety caps on all pharmaceuticals

First Actions of Tylenol

Alert Customers
Told them not to use the product
Alert hospitals and distributers
Stop production
Stop advertising
Withdraw product in Chicago
Withdraw product nationally
Offer to exchange product
Established hotline for consumers
Established hotline for new media

Response Strategies of Tylenol

Forgiveness
Sympathy
Remediation
Rectification

Forgiveness (Tylenol)

Seek to win forgiveness from the public

Sympathy (Tylenol)

Win support from the public by portraying J&J as the unfair victim

Remediation (Tylenol)

Offer some form of compensation to help victims and their families (counseling and financial assistance)

Rectification (Tylenol)

Take action to prevent a recurrence in the future (also develop new random inspection procedures)

ALWAYS (Tylenol)

Public safety was the number one concern: how to protect the people? How do we save this product?

Consider the crisis from the outside in and communicate messages which reflect the concerns of your audience.

Five Lessons (Tylenol)

1. Be forthcoming and honest
2. Act quickly and decisively
3. Take responsibility
4. Treat people with respect
5. Good behavior pays off in trust

The 3 Cs of Tylenol

Candid-Compassionate-Contrite

5 Stages of a crisis

Denial
Containment
Self-Defense
Blood on the floor
Fixed

Apologizing in a crisis

Own the Problem--Don't blame others

Be transparent -- as much as possible

People want to forgive

Choose your words carefully

Question whether an apology is needed

Don't say "it will never happen again"

"Sorry" can be overworked

People will judge you on how you own up to your mistakes

The key to contrition

Be sincere, respectful, truthful, and timely

7 way to be contrite

1. Understand the public's feelings and respond accordingly. Monitor social media and news reports.
2. Be humble, sincere and empathetic: follow with immediate action to address the issues
3. Quickly address the issue. You may not have all the information but express empathy to those affected and commit yourself to the facts
4. Remember the people affected by the crisis. Apologies come from the heart, not some corporate strategy. Don't be defensive.
5. Use common, understandable language, not legal jargon.
6. Talk to the general public first, not the investors. Talk to Main Street, not Wall Street
7. Apologize on video if you can. It humanizes the brand and shows humility. Should be succinct and sincere.

The A's in any apology

Acknowledge something has happened
Authentic -- mean it
Appropriate tone and language
Acceptable venue
Act in the right time frame
Announce the next steps

Apologizing in a crisis: Remember:

Image restoration and corporate reputation as well as your reputation

4 Stages of Denial

1. It won't happen
2. If it does happen, it won't happen to me
3. If it does happen to me, it won't be that bad
4. If it happens to me and it's bad, there's nothing I can do to stop it anyway

Key Audiences (Stakeholders)

Advocates
Adversaries
Ambivalence

Advocates

Make sure they give you the benefit of the doubt and continue to support you

Adversaries

Make sure they do not take advantage of the situation to promote their own interests.

Ambivalents

Make sure they remain neutral of choose to support you rather than the adversaries

Key audience list

Activists
Bankers/Lenders
Competitors
Board of Directors
Customers
Employees
Employee Families
Stockholders/Investors
Financial Analysts
Government Regulators
Legislators
Investigative Reporters
Neighbors
Plaintiff's Attorneys
Union leaders/members
Vendors/Suppliers
General Public
Disgruntled Employees
Social Media
Management

Disney and the alligator crisis

An alligator in Disney World killed 2-year-old Lane Graves

The strategy of the Disney and the Alligator crisis

Come out strong, and decisive and take action to make sure it doesn't happen again. Settle as soon as possible.

the key message for Disney and the Alligator

Disney is committed to making sure that all preventative measures are taken to ensure the safety of our visitors

Determine the involvement of top management for the Disney Alligator crisis

Who will get involved and the amount of time required

First 30 minutes of a crisis

1. Become the trusted voice
2. Give the crisis your full attention
3. Assemble your crisis team and implement your crisis plan
4. Assess what can be done and what help you need
5. Find out the facts
6. Monitor social and traditional media
7. Understand the scope of the crisis and assess critical decisions
8. Issue a holding statement ASAP
9. Think through every word you will say
10. Put people first (think employees and their families)
11. Correct any errors of fact that are already in the public
12. Follow up on everything you promised to do
13. Begin the process of healing and recovery

the CEO in the first 30 minutes of a crisis

The CEO should be steady, strong, compassionate and solution-oriented.

Decision priorities for crisis communication

1. To whom must we communicate? In what priority?
2. What are our key points for each audience?
3. When do we first communicate?
4. What technique/vehicle do we use to communicate?
5. Who do we use to communicate?
6. What level of background does each audience need?
7. What are our positive points related to the crisis?
8. Where do we communicate from?
9. Are authorities limiting communications? Do we need to cooperate?
10. Who must provide clearance for statement?

Decision Priorities for Crisis Resolution

1. What is/was the crisis-causing event?
2. Is the crisis-causing event over or continuing?
3. If continuing, what can we do to stop it?
4. Is/was the event within our control?
5. Who from the outside must be brought in to help control/recover?
6. What actions must we take to recover?
7. What resources do we need to recover?
8. What must we do for the "victims" of the crisis?
9. Must we "punish" the cause?
10. What are the costs? Are they relevant?

Harsh realities of a crisis

Most crisis situations can be predicted and prevented; those that can't be avoided can be minimized.
Serious business problems don't become a "crisis" until the public finds out -- usually through the news media but more through social media.
The longer a crisis goes on, the more damage it does to sales, earnings, stock price, and competitive position.
The primary concern in crisis management is the court of law when it should be the court of public opinion.

Biggest obstacle to effective crisis management

Management denial

Adverse impacts of a crisis

Sales and Profits
Jobs
Business Reputation
Government Intervention
Operating Expenses
Employee Morale
Competitive Strength
Legal/Consumer Action

5 Kinds of Workplace Violence

Criminal intent, customer/client of employer, worker to worker, domestic violence, and ideological violence.

Criminal intent

robberies, murders, assaults/perpetrator has no relationship with the targeted establishment

Customer/client

The perpetrator is a customer or client of the employer/highest risk: healthcare and social service workers

Worker to worker

A current or former employee often motivated by interpersonal or work-related conflicts, losses or traumas/highest risk: managers or supervisors

Domestic violence

the perpetrator knows exactly where his/her spouse is during work hours; women are the primary target, usually because of attempted separation.

Ideological violence

directed at a business, its people and/or property for ideological, religious or political reasons usually by extremists

Actions taken by Edgewater

- Senior executives contacted each employee (250) and each customer/visited victims' families
- Made sure everyone got their paychecks
- Made sure everyone came together in groups of 8-10 for counseling
-Kept the business systems running (billing, etc.)
- Set up a memorial fund which reached into the hundreds of thousands of dollars
- Advised employees how to deal with the news media

Summary of Edgewater actions

Put employees first, senior management worked through the issues, hired experts to help, involved employees in decisions, and communicated regularly.