Quote by John F. Kennedy: "When written in Chinese, the word 'crisis' is composed of two characters—one represents danger, and the other represents opportunity."
A crisis is an event triggered by a specific incident that garners critical media attention and lasts for a defined period of time.
Distinction between ordinary bad press and a crisis:
Example: A government agency raising fees might receive negative press but not necessarily a full crisis unless linked to financial mismanagement.
Natural Disasters: Weather-related incidents (hurricanes, floods, etc.)
Unnatural Disasters: Incidents due to human actions (industrial accidents, terrorism, etc.)
Product Crises: Defective products leading to recalls or harm.
Policy Crises: Unpopular policy changes.
Process Crises: Failures in service and goods delivery.
Employee Crises: Issues involving employees (layoffs, harassment, etc.)
Personal Crises: Scandals involving personal behavior of individuals.
Wrongdoing: Legal violations like embezzlement.
Majority of crises are predictable and can be planned for.
Companies should list potential crises based on likelihood and potential damage.
Example crises identified by companies:
Trucking accident involving a driver.
Delays in medical testing due to weather.
Scrutiny over executive pay following a rate hike announcement.
Public outrage over policy changes affecting travelers.
Warren Buffett's quote on reputation building and its vulnerability.
Effective management of crises minimizes long-term damage.
Example of a well-handled crisis improving brand image:
Saturn's free car washes vs. Toyota's delayed response during recalls.
Breaking News Stage: Initial response to "what happened?"
Reputation-Forming Stage: Media focus on victims and initial responses.
Finger-Pointing Stage: Companies that manage risks well can minimize negative focus.
Fallout/Resolution Stage: Conclusion of the crisis with resolutions like inquiries or hearings.
Media typically assign roles of good and bad based on initial responses.
Importance of tone and initial communication during a crisis to influence media perception.
Example: Jet Blue’s CEO David Neeleman effectively handled the grounding of flights, resulting in positive media coverage.
Narrative around "David vs. Goliath" scenarios influences public perception based on company size.
The need for prompt communication during a crisis to be seen as a primary information source.
Failure to communicate opens the door for misinformation to take hold.
Note on social media's role: Immediate communication can combat false narratives.
Example: Exxon Valdez oil spill and slow response damaging the company’s reputation.
Compelling media narratives often arise from victims’ voices.
Examples from Toyota and banking scandals show how relatable narratives of victims overshadow corporate responses.
Organizations must genuinely address victims' concerns to build goodwill.
The selection of a spokesperson during a crisis influences public perception.
Choosing someone senior can indicate the seriousness of the crisis; the wrong choice can diminish credibility.
A combined spokesperson model (executive and technical expert) often works best for larger crises.
Employees at all levels should be trained to handle media inquiries during a crisis.
Reception staff often provide unintentional information and should know protocols.
Communication policies should include all staff and be regularly reviewed.
Transparency during a crisis is crucial; hiding information leads to credibility loss.
Clear communication, even when incomplete, is better than withholding information.
Example: Susan G. Komen faced backlash for handling of controversy due to lack of transparency.
Information spreads rapidly on social media—companies must be prepared to respond quickly.
Correct misinformation on social platforms to maintain credibility.
Example: Domino's response to a viral video incident could have been quicker.
Executives should provide clear, full apologies instead of vague hedged ones.
Example: Penn State's Board of Trustees issued a strong apology for the Sandusky scandal after initial self-serving statements.
Legal concerns may lead to overly cautious communication strategies that damage reputation.
Balancing legal advice with public relations is essential for long-term outcomes.
Strategies for handling false accusations in the media:
Be open and communicative.
Consider legal action if necessary and seek to prove innocence.
Example: Taco Bell's proactive rebuttal to false claims led to a swift resolution of the crisis.
Steps to prepare for a crisis:
Assemble a crisis team with key department representatives.
Brainstorm potential crises from listed categories.
Reduce to top five crises based on likelihood and impact.
Develop specific response strategies for each identified crisis.
Conduct regular crisis drills to ensure preparedness.
Strategies to counteract negative press:
List errors and provide correct information.
Meet reporters to discuss potential inaccuracies.
Escalate to higher authorities if necessary.
Engage legal counsel if misrepresentation occurs.
Release your story proactively to control the narrative.
Remedies for dealing with unfavorable coverage:
Consult neutral parties for perspective.
Communicate directly with reporters.
Write a formal response if necessary.
Engage with editors for resolution.
Limit access to unfavorable journalists while maintaining a communication stance.
A crisis is an event triggered by a specific incident that garners critical media attention and lasts for a defined period of time. It is crucial to distinguish between ordinary bad press and a crisis; for instance, a government agency raising fees may receive negative press, but it does not necessarily constitute a crisis unless linked to financial mismanagement. Crises can be categorized into several types: natural disasters (weather-related incidents), unnatural disasters (human actions causing harm), product crises (defective products), policy crises (unpopular policy changes), process crises (failures in service delivery), employee crises (issues involving staff), personal crises (scandals involving behavior), and wrongdoing (legal violations like embezzlement). Notably, many crises are predictable and can be prepared for by companies, which should list potential crises based on their likelihood and potential damage.
Warren Buffett posits that reputation building is vulnerable. Effective crisis management can minimize long-term damage, as seen in cases where crises have improved brand images, such as Saturn's initiative with free car washes versus Toyota's delayed response during recalls. Crises unfold in four stages: the Breaking News Stage, where the initial question is, "What happened?"; the Reputation-Forming Stage, focusing on victims’ responses; the Finger-Pointing Stage, which often sees companies that manage risks well experiencing a reduced negative focus; and the Fallout/Resolution Stage, where inquiries or hearings conclude the crisis.
Media will typically assign roles of ‘good’ or ‘bad’ based on the organization's initial response. Therefore, tone and communication are essential during a crisis to positively influence media perception. A case in point is Jet Blue’s CEO David Neeleman effectively managing the grounding of flights, resulting in favorable media coverage that showcased a ‘David vs. Goliath’ narrative.
During a crisis, prompt communication is necessary to be regarded as the primary source of information. Failing to communicate promptly can allow misinformation to proliferate, as was notably the case with the Exxon Valdez oil spill, where a slow response tarnished the company’s reputation.
Compelling media narratives often originate from victims’ perspectives. Historical context from scandals involving Toyota and banking sectors illustrates how relatable narratives from victims can overshadow corporate messaging. Organizations must genuinely engage with victims' concerns to foster goodwill.
The choice of spokesperson during a crisis can significantly influence public perception. Selecting a senior spokesperson demonstrates the seriousness of the crisis; conversely, the wrong choice can undermine credibility. A combined spokesperson approach, featuring both an executive and a technical expert, is often advantageous for larger crises.
It is vital that staff at all levels are trained to handle media inquiries during a crisis, as receptionists can unintentionally divulge sensitive information. Communication policies should apply to all staff and be reviewed regularly.
Transparency is vital during a crisis; concealing information can result in diminished credibility. Clear communication, even if incomplete, is preferable to withholding information, as evidenced by the backlash faced by Susan G. Komen due to a lack of transparency in their controversial handling of issues.
With the rapid dissemination of information on social media, companies must be ready to respond swiftly. It is crucial to correct misinformation on these platforms to maintain credibility—a lesson evident in how Domino's could have handled a viral video incident more efficiently.
Executives should deliver full and clear apologies instead of vague statements. For instance, the Penn State Board of Trustees provided a strong apology in the Sandusky scandal after initially self-serving comments.
Legal concerns may lead to overly cautious communication tactics that can harm reputation. It is essential to balance legal advice with public relations goals for favorable long-term outcomes.
In preparing for potential crises, it is recommended that companies assemble a crisis team comprising key department representatives to brainstorm possible crises, reduce these to the top five based on likelihood and impact, develop specific response strategies, and conduct regular crisis drills to ensure preparedness.
To counteract negative press before a story runs, organizations should list inaccuracies, consult with reporters, escalate to higher authorities if necessary, and proactively release their own narratives. After unfavorable coverage has run, remedies include consulting neutral parties for perspective, communicating directly with reporters, writing formal responses if required, engaging with editors, and limiting access to unhelpful journalists while maintaining an open communication stance.