Communications tips for handling fast-moving crises before, during and after reputation-threatening incidents

1. Managing the Public Face of a
Crisis in a 140 Character World
New England Society of Association
Executives
Jan. 29, 2016

2. I Wish I Said That….
“Information
breeds
confidence.
Silence
brings fear.”
CJ, The West Wing
“Never let a
good crisis
go to waste”
Chicago Mayor Rahm
Emanuel

3. What is a Crisis?
•Any event or
occurrence that can
have a significant
and/or negative impact
on a company and the
work it does
•A turning point in an
organization’s history

4. A Crisis Creates its own Force Field
Welcome
to The
Fiasco
Vortex

5. Crisis Characteristics
• A situation that triggers negative
stakeholder reactions
• An escalating flow of events = Fiasco Vortex
• Loss of control
• An increase in scrutiny
• The urge to develop a siege mentality
• A feeling of panic

6. Lessons from Carnival Cruise Line
• A situation that
triggers negative
stakeholder reactions
• An escalating flow of
events
• Loss of control
• An increase in
scrutiny
• The urge to develop a
siege mentality
• A feeling of panic

8. Lessons Learned
Tylenol
• What happened: 7 people died as a result of cyanide-
tainted Extra Strength Tylnol capsules
• What they did
– Remained tied to their mission “The company exists to
alleviate pain and disease”
– Recalled every one of their over-the-counter capsules without
hesitation
– Created tamper-proof bottles
– Offered free exchange of capsules for caplets (coated, solid
tablets)
• What resulted
– Johnson & Johnson was seen as the victim
– Retained its position as the nation’s best-selling analgesic
– Five months later was selling 96% of what it sold before
tampering

9. • How J & J went from a
mother’s best friend to
social media outcast
• $ billions to position itself
as a baby’s best friend
• “The concept of baby and
J & J almost toddle hand-
in-hand”
Business Week
Doing it Wrong by J & J
Motrin’s Campaign for Moms

11. • September 2008
• Motrin launches a new ad campaign online
and in magazines
• Focuses on how wearing a baby can give
moms a backache
• Saturday - Ad posted on website on On-line
explosion of negative PR
• Monday – Ad gone and J & J posted apology
on their site
What Happened???

12. • Mom blogosphere exploded within hour of
post
• Twitter page – MotrinMoms
• YouTube packed with reactions
• Twitter hashtag #MotrinMoms
• Facebook group – 1,300 members
• Twitter …news coverage…more Twitter
Attack of the angry moms

14. I am the Vice President of Marketing for McNeil Consumer Healthcare.
I have responsibility for the Motrin Brand, and am responding to
concerns about recent advertising on our website. I am, myself, a
mom of 3 daughters.
We certainly did not mean to offend moms through our advertising.
Instead, we had intended to demonstrate genuine sympathy and
appreciation for all that parents do for their babies. We believe
deeply that moms know best and we sincerely apologize for
disappointing you. Please know that we take your feedback seriously
and will take swift action with regard to this ad. We are in process of
removing it from our website. It will take longer, unfortunately, for it
to be removed from magazine print as it is currently on newstands
and in distribution.
• Kathy Widmer, VP, Marketing, McNeil Consumer Healthcare
Company’s reaction – blogger
response

15. With regard to the recent Motrin advertisement, we have heard you.
On behalf of McNeil Consumer Healthcare and all of us who work on
the Motrin Brand, please accept our sincere apology.
We have heard your complaints about the ad that was featured on our
website. We are parents ourselves and take feedback from moms
very seriously.
We are in the process of removing this ad from all media. It will,
unfortunately, take a bit of time to remove it from our magazine
advertising, as it is on newsstands and in distribution.
Thank you for your feedback. Its very important to us.”
Sincerely,
Kathy Widmer
Company’s response - website

16. • Know your audience –
all types
• Test your campaign on a
wide audience
• Use social media to
listen as well as talk
• Engage early
• Keep your apologies
personal
– “I am, myself, a mom of
3 daughters”
• Explain limitations of
the fix
– “It will take longer for it
to be removed from
magazines….
Lessons from Motrin, Part I

17. • SGK National made change to grant policy,
excluding organizations “under investigation”
• Planned Parenthood = only grantee impacted
out of 2000 they funded
• Resulted in social media storm, playing out on
Facebook and Twitter
Susan G. Komen for the Cure/ Planned
Parenthood

18. • Planned Parenthood saw opportunity- raised
$3 Million in days
• No response ANYWHERE from SGK for 2 days
– Response video that came was terrible- poor
spokesperson
– Messages were confusing, mixed
– Decision ultimately reversed- too much damage
done
What went wrong?

19. • Planned Parenthood won
– Donations came pouring in — $3 million in three days.
– Many longtime Komen supporters announced that
they would now channel all of their money to Planned
Parenthood.
• Komen organization lost
– Diminished reputation
– Loss of financial support
– Loss of staff members and volunteers,
– Bad press
Winners/Losers

20. • Prepare for all possible
scenarios before
communicating
• BE RESPONSIVE- 48 hours
silence on social is an
eternity
• Know who you are
speaking to
– Understand, what
motivates them
– Recognize why you need to
communicate
communicating (it’s not
just to protect yourself!)
• Tailor messaging & tone
accordingly
– Donors
– Sponsors
– Volunteers
– Event participants
– Employees
• Deliver the message the
right way
– Use the right vehicles
– Communicate with the
right people
Lessons from SGK

21. Lessons Learned VW
• What happened: US EPA issued a notice of violation to VW for using a
‘defeat device”to evade clean air standards’ affecting 11 million cars
worldwide
• What happened next:
– High scrutiny and pressure on the company
– Outrage at the ‘cheating’
– Apologies
– Senior resignations
– Congressional hearings
– Speculation about how far this could spread in the industry and the
possible cost to VW
– 40 point dip in share price
– Internal inquiries
– Law firms searching for ‘victims’ to sue the company
– Calls for structural and cultural change at the company.

22. Two Kinds of Crises
One-Time Events
Emergencies that suddenly disrupt operations and
attract unwanted attention
– One-third of crises over the past 10 years
– Fires, explosions, natural disasters, school or
workplace violence

23. Two Kinds of Crises
Slow Growing Situations
Chronic, but less immediate problems that
can bloom into a full blown crisis if left
unattended
- Two-thirds of crises over the past 10
years
- Start small
•Usually internal
•Often easily spotted and fixed
- Ford vs. Firestone, Wendy’s, New
Orleans’ levee system

25. Smoldering Crises
– Recovery is harder
Outside Reaction
• If you didn’t know
– Why not?
– What else don’t you know?
• If you did know
– Why didn’t you act?
– What else are you hiding?
Internal Concern
• “If you don’t know why
something happened it’s
worse because you can’t fix
it.”
– Mark McClennan, MDLGroup

26. Scandal - More Than a TV Show
• What are they? Deliberate wrongdoing,
unethical behavior, criminal acts
• What is recovery so tough? They tell
customers, regulators, employees and others
that their trust was misplaced.
• What do they generate?
– Outrage
– Immediately positioning as the villain
– Immediate recriminations & allegations

27. Scandal Recovery
• “…unlike a physical incident, there is no period
where the focus of attention is on human
impacts.
• “When you are battling a blaze and saving
lives, onlookers are normally ‘on your side’
while the incident is ongoing.
• With a corporate scandal, the recriminations
and allegations start immediately.”
Andrew Griffin, CEO Regester Larkin chief executive

28. Why Does This Happen So
Frequently?
We think in stories
• Storytelling from the
time of the cave
dwellers has been filled
with mental short-cuts
– Overcoming the monster
– Rags to riches
– The Quest
– Voyage and return

29. If it fits, we ship
(DIRECTLY INTO OUR BRAINS)
• It must be true if
– It fits into your narrative
– If it fits into your world
view
• Paula Deen = racist
• Martha Stewart = elitist
• Duke lacrosse players =
rapists
• Chris Christie = NJ bully

30. When “Unrealistic Optimism”
Reigns
• Events that create crises are usually
those which most people have trouble
taking seriously.
– Events with a low probability but a high
cost.
• We tend to treat low-probability
events as if they were impossible.
• Instead of preparing for them, we
ignore them.

31. Balancing Transparency with Risk
Expediency vs. Premature Responsibility
– Strike a balance between being as expedient as
possible and not making claims or judgements before
knowing all the facts.
– Until the full story comes to light, stop short of
admitting guilt.
– Show compassion and regret for damage
– Do what you can to start fixing the problem
– Make the public your priority in these situations
– Protect the company against law suits
– Do what you can to be the source of real information

32. Balancing Transparency with Risk
Part II
Don’t Talk Before You Have The Facts
• Treat all claims and public statements with care
• Example
– Amtrak train crash in Philly
– Mayor Michael Nutter blamed the engineer
– Investigation less than a day old
– Statement was provocative, unfounded and
insensitive to the bereaved.
– NTSB board member blasted the mayor’s comments
as inflammatory.

33. Balancing Transparency with Risk
Part III
Handling Misinformation
• Handle misinformation quickly.
• Monitor all methods of communication
Address inaccuracies and items of concern as
they arise.
• Check the source before repeating

34. The Golden Hour
• “In emergency medicine,
the golden hour refers to
a time period lasting from
a few minutes to several
hours following traumatic
injury being sustained by a
casualty, during which
there is the highest
likelihood that prompt
medical treatment will
prevent death”

35. The “Traditional” Golden Hour in Crisis
Management
• First 48 Hours after a crisis
• What you do sets the stage for it how it will
play out
• Your actions can make the difference between
being proactive or reactive as it plays out

37. Words of Wisdom*
• “Every minute that goes by without an
effective crisis response exponentially
increases the risk to a client’s reputation”
• People expect companies to respond to crisis
at the same speed they learn about them, a
speed defined by social media, smart phones
and an infinite number of ‘reporters’”
*Dave Senay, president & CEO, Fleishman-Hillard

38. Ignore the Golden Hour and…
• You’re open for litigation
• You can expect excessive collateral damage
• You provoke community antagonism
• You encourage victim and public outrage
• You make a loss of trust more likely

39. First Responder Rules*
• Tell it all
• Tell it fast
• Tell it yourself
*Dawn Doty, Vice President and Partner at LPR, Former PR
Advisor – Tiger Woods Foundation

41. Ten Commandments of Crisis
Communication
1. Spot potential crises early and often
2. Remember – the most dangerous
crises are low probability high impact
events
3. Know bad news can’t be hidden for
long

42. Ten Commandments of
Crisis Communication
4. Understand the faster the
response, the faster the story
dissipates
5. Communicate through one person
6. Tell the truth, but avoid saying
“no comment.”

43. Ten Commandments of
Crisis Communication
7. Avoid keeping keep the media at
arm’s length
8. Mobilize your stakeholders, allies
and employees
9. Steer clear of blame and finger-
pointing
10. Respect the power of social

44. Did You Know …
• Most companies don’t have a crisis plan
– Only 9% had crisis protocols in place in 2010,
according to a Fast Company survey
– Only half of investor relations officers from
financial service & HC industries say they
follow a crisis plan
• Crisis + Inaction = Death of the Company
• 40 percent of companies hit by disaster go out of
business within five years.

45. The Black Swan Effect
• Events that create
crises are those
people have trouble
taking seriously
– Low probability,
high impact
• Low-probability
events =
impossible.
• We don’t prepare
for them, we ignore
them

46. Optimism Bias
Think of the Crisis Possibilities!
• Definition: A bias that causes a person to believe
that they are less at risk of experiencing a
negative event compared to others.
• How it Plays Out
– People believe they are less at risk of being a crime
victim
– Smokers believe they are less likely to contract lung
cancer or disease than other smokers
– Traders think they are less exposed to losses in the
markets.

47. What is Your Company’s
Most Likely Response?
Mr. Fix-It
“Just get it fixed.
Forget the crisis of
confidence.”

48. What is Your Company’s
Most Likely Response?
Ostrich
“It never
happened.”

49. What is Your Company’s
Most Likely Response?
Finger Pointer
“It’s not our
fault.”

50. What is Your Company’s
Most Likely Response?
Alfred E. Neuman
“What? Me Worry?
No one cares.”

51. What is Crisis Management?
Taking control of your own reputation before
someone else does

52. Welcome to My World!

53. The Rules of Engagement
During a Crisis
• If you screw up, fess up
-iPhone GPS
• Consumers want results, not excuses
-BP Oil spill
• Smug & pompous don’t cut it
-BP CEO Tony Hayward
• Burying bad news doesn’t work
-Citigroup “Magic show”…
…cont…

54. The Rules of Engagement, Part
II
• If you ignore
customer’s questions,
it will get ugly
-Sony’s Playstation
hacking
• Those who tweet for
a brand should ask
questions first &
shoot later
– KitchenAid/Obama
tweet
• Don’t pass on a story
without vetting it
– Manti Te'o

55. General Guidelines When
a Crisis Hits
• Act quickly to resolve the situation
• Tell the truth
• Be accessible to the media
• Show confidence and compassion
• Communicate changes in the
situation as quickly as you can
…cont..

56. Social Media Crises are Unique
• They catch fire fast
– Richard Sherman
– Motrin Moms
• They are often
based on incorrect
info
– Sandy Hook/QU
– Bag Men in Boston

58. Glass Jaws & Social
• Fighter with a glass jaw
• Housewife in the
basement
• Corporations in shock
• Turbo-chargers of he
“Fiasco Vortex”

59. Questions
Stakeholders Will Ask
• Is it true?
– A-Rod
• Who’s responsible?
– New Orleans/Katrina
• Was it intentional?
– Enron
• Could it happen again?
– Marathon Bombing
• What does it say about the brand?
– Doping in cycling

60. YOU’VE GOT TO HAVE A PLAN

61. Have a Crisis Plan Before You
Need It
• Created in anticipation of a crisis
• Fueled by the company’s core values
• Facilitates flow of accurate, timely
information
• Preserves and enhances the
company's reputation
• Sets the stage for the company’s
continued success

62. Difference between …
Fire Fighter Fire Marshall

63. What Every Crisis Plan is Built
Upon These Truisms
• People judge your company by the
way it behaves under stress
• People will forgive if you own up to
mistakes
• You only get one chance to lie to the
media

64. What Will Govern Your
Response
• Your company’s mission
• Your company’s ethics
–“Guiding principles”
• Your CMP/SMP
• Your media traditions
• Your press & social media
policies

65. Crisis Plan
Table of Contents
• The Team
• The Procedure
• The Location
• The Triggers
• The Targets
• The Tools
• The SM Plan
• Pulse Check
• The Follow-up
• The Postmortem
• The Recovery
• The Care & Feeding
of the Plan

66. An Understanding of
Five Stages of a Crisis
1. Detection – Prodromes
2. Prevention/preparation
3. Containment
4. Recovery
5. Learning

67. • Has something
changed that will
have a significant
impact on your
organization or its
work? Positive or
Negative
• Has something
happened that will
negatively effect the
organization?
• Are you feeling an
increase in scrutiny?
Detection
Crisis Spotting, Part I

68. • Is a small issue
escalating into a
larger one?
• Do you feel a loss of
control?
• Is web chatter
changing or
escalating?
• Are negative
comments cropping
up in reaction to
positive news stories?
Crisis Spotting, Part II

69. Crisis Spotting
• Company related
• Management related
• Field related
• Policy-holder related
• Employee related
• Board related
• Data Breach related
• Industry related
• Regulatory related

70. Vulnerability Index
The Questions to Ask
• Question #1 – How likely is
this event? (1 to 10)
• Question #2 – How much of
an impact will it have? (1 to
10)
Example
• Scenario: Federal
regulations about your
industry tighten, impacting
the business of most of your
members
• Vulnerability index:
– How likely? 7
– How impactful? 10
– Vulnerability
index: 70

71. Crisis Communications Cycle
Fitzgerald + Co Public Relations
Pre-Crisis –
Predict
Prepare
Prevent
Response –
Act &
Communicate
Act
Recovery –
Rebuild

72. The Basic Formula –
Building Loyalty & Trust After a Crisis
• Acknowledge the issue
• Reveal the truth
• Show how you plan to
repair the damage
• Keep your stakeholders
in the loop
• Be upfront about the
process

73. Post-Crisis Phase
• Business as usual
returns
• Crisis is no longer the
focal point of
management's attention
• Crisis still has a place in
management’s
attention
• Follow-up
communications are
activated

74. Post-Crisis Phase – Reputation
Recovery
• Restore confidence
• Deliver promised
information
• Keep promises if you
make them
• Provide updates on
recovery

75. Steps after a crisis – Rebuilding
Confidence
• Acknowledge mistakes
• Implement fast, deliberate & honest recovery
actions
• Build collations & support structures
• Commit to meaningful change …..

76. …and why do this?

78. Case Study
What is Your Organization’s Vulnerability Index?
The Questions to Ask
• Question #1 – How likely is
this event? (1 to 10)
• Question #2 – How much of
an impact will it have? (1 to
10)
Your Job
• Pick one association
• Outline three potential
crises
• Assign vulnerability indices
• Put them in order of
severity
– i.e. which will be the most
damaging to your members’
future, next most and least
damaging?

80. Andrea Obston
Andrea Obston Marketing Communications,
LLC
860-243-1447
aobston@aomc.com
www.aomc.com
@aobston
facebook/andreaobstonmarketingcommunications