Posts Tagged ‘Crisis Management’

I’ve finally arrived!!!

Monday, April 12th, 2010

Yes, it’s finally happened.  I’m now on YouTube.  I was recently part of an amazing evening at Ignite Bristol – an import from the Ignite concept that first happened in Seattle in 2006.  As anyone who has been through any Net.Mentor training will know, I hate PowerPoint with a passion.  However, the concept of a timed 5 minutes with 20 slides in quite a buzz and some of the presentations on the first evening were stimulating, moving, funny or just completely off the wall.  In the end, I went for the serious topic of handling crisis, but I hope it was light enough to be all of the above.  You be the judge…

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Crisis and the power of social media

Thursday, March 25th, 2010

There have been plenty of examples recently of the power of social media and the internet in creating and overcoming corporate crisis.  Most recently the Greenpeace and Nestle spat demonstrated more than just the development of the original issue itself  (the environmental effects of the palm oil manufacture).   The handling of the initial feedback by Nestle showed that if you are going to get involved in the debate, you need to keep your cool and stick to the issues – as highlighted by this excellent presentation from Scott Douglas.

The result of nestle’s fan page moderator getting personal went way beyond the original issue and became the story in itself. It reminds me of the classic West Wing episode where Josh Lyman decides to comment personally on the Lemonlyman website, only to wonder why he suddenly turns from hero to villain and CJ threatens personal injury with a motherboard.

The lesson? Stick to the issues; stay focused on the facts and look for the collaborative option. The best communication is two-way and changes behaviours on BOTH sides. This is a prime example of how to get the balance completely wrong and pay the corporate consequences. Ironically, KitKat was originally a Rowntree brand – the organisation that was set up by staunch Quaker, Joseph Rowntree.  Interestingly, they were equally censorial back in the early ’80s when I was a Student at York University – York being Rowntrees’ home.  Whiel News Editor of the student mag, Nouse, we decided to run a fairly derogatory front page about Kitkat and Rowntrees latest union activities in South Africa.  Strangely, Rowntree asked us in less than polite terms to pull the publication.  Clearly we were being more than provocative and now, with corporate communication experience under my belt I can appreciate the issues of brand and reputation management.  However, a collaborative approach would have had a far better impact on student and company behaviour than heavy-handed corporate ‘big brother’.   Joseph Rowntree must be rotating gently in his grave.

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Does my head or my heart rule my feelings over Toyota?

Wednesday, February 10th, 2010

In 1989 Toyota ran an advert with the headline “Why We’ll Never Make the Perfect Car”.  It was an ad accepting the fact that perfection can never truly be achieved, only strived for – and led me to an exchange of views with the then boss of Toyota (GB) that turned out to be a career changing one (for me at least!).

Sadly, Toyota’s brave statement is all too real as its goal of near perfection fades a little further into the distance with more than 8 million of its vehicles being recalled and questions being asked by world leaders of our supposedly super-ethical governments.

Trust me, this is not “I told you so” time!  With experience in crisis management, my head says I should feel angry that road users have been put at risk by another corporate giant trying to cover up its mistakes.  My heart is in an entirely different place.  As a former member of the Toyota (GB) PR team I can only marvel at the way Scott Brownlee and his colleagues have taken on an extraordinary task as they struggle to keep up with the deluge of information and meet the requests that face them in the battle to provide accurate information to the UK’s media.

The issue has allowed the world’s media to hunt down another global corporate giant – strangely the one which has recently become the world’s leading automotive producer with accelerated (sorry) growth at a time when the world’s economy is going to hell in a handcart (or GM vehicle); turning its insatiable search for “public interest” and the next moral panic into a feeding frenzy of high-handed hysteria.  Oh, and now the bandwagon (manufactured in America) is well and truly rolling, with news that apparently Corollas veer to the left.  I’ve been there and worn that t-shirt too in the late ’90s  -  BBC Watchdog’s Ford Sierra steering problem garbage anyone?

So is my sympathy out of misplaced loyalty, a subconscious twitch from my PR ’spin’ muscle, or something more tangible?  From experience, the public and media fantasy completely overwhelms reality and irreparable short, and possibly medium, term damage is being inflicted on Toyota’s reputation.  Sure, they have had quality issues – when you are mass producing that number of vehicles for owners who want to continually pay less and get more for the price, what do you expect?  But they admitted they had quality issues, in their starkly contrite way, nearly two years ago.  Whatever they say or do now, they can’t win.

But let’s just look at the numbers for a moment.  More than 8 million Toyotas are being recalled.  8 MILLION.  The number of worldwide reported serious incidents relating to the alleged problems will be a fraction of one percent of that figure.  Yet Toyota are recalling 8 million vehicles , with all the related costs, because of a problem that may never affect many of those cars.

As Head of Public Relations at RAC Motoring Services I was frequently under pressure to reveal the ‘most reliable/unreliable vehicle’ data.  It just doesn’t work like that!   Reliability, like car technology and the automotive industy in general, is a complex issue.  A point eloquently made by Heather Yaxley, another Toyota PR alumni, in explaining the frustrations facing the current Toyota  PRs. I can also report first-hand that, as pointed out by fellow RAC communicator Edmund King – now President of the AA – there are millions of vehicles recalled every year and many millions more that are subject to component replacement during routine servicing to rectify minor faults identified by manufacturers.  Very few motorists,  and only the better informed journalists, are even aware this happens.  It’s certainly no big deal, even if it’s a big cost for the carmaker.

In reality, regardless of how much testing is done in the lab or in quality control, some faults will only appear once a vehicle is on the road.  The good news is that almost all of these faults are picked up early – often by RAC, AA and other roadside technicians -  and manufacturers take action quickly.

In this case, Toyota have unquestionably been too slow off the mark to deal with an issue that has now incubated into a crisis.  They’re certainly not alone – look at Cadburys in 2006 with a Salmonella scare that took too long to report.   But again, look at the Toyota timeline.

While they have clearly been aware of the issues for some time, an 8 million product recall is not something that any right-minded organisation will undertake without irrefuteable evidence.  Add to that the heirarchical, procedure-driven,  and generally inflexible culture of Japanese corporations (something I’ve witnessed first-hand).  Combine it with hyper-litigious American culture fuelled by insurance urban myths, and you have a crisis waiting to happen and a virtually impossible mission for the communicatiors.  But once the tipping point of evidence plus pressure was reached, Toyota initiated a global recall and repair programme in a matter of DAYS.

But most important of all, with 3,500 road deaths and 65,000 injuries  daily on the world’s roads, it’s time to stop worrying about possibly faulty accelerators, questionably dodgy car mats and mildly inconsistent brakes.  The biggest technical threat to all of us, and the real reason people should be forced to stop driving cars whoever makes them, is the nut behind the wheel.

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“Sorry” still seems to be the hardest word

Friday, April 17th, 2009

Interesting article in Advertising Age by Abbey Klaassen about weathering a Twitterstorm.  She uses the recent Amazon cataloging crisis as yet another example of poor response to a crisis.   Much closer to home, Gordon Brown has finally decided to use the “S” word to make amends for yet another internal e-mail debacle.  Despite the fact he’s said “sorry” (he may even have meant it), it all seems to little too late and he’s now accused of spin.

Whenever we undertake crisis management training, there are two messages we try to get across to people at the very start.

1.  There is nothing wrong and everything right with saying “sorry”.  It doesn’t mean you’re liable, it doesn’t even mean you did it, it just means that you are capable of showing some humanity about a bad situation.

2.  Perception is reality.  It doesn’t matter that right is on your side (or not), what matters is what your publics believe is right and how you address their perceptions. But as Klaassen points out, you need to be sure that the crisis commentary is coming from your publics and not a group of people who have little or no impact upon your business, its status and reputation.

In a crisis,  kneejerk strategic reactions are the worst possible course of action.  However, making a statement quickly is a positive first step.  You don’t actually have to say anything other than “we are very concerned about the situation and are taking action to investigate it”.  Coming over all ‘corporate’, self-righteous and defensive is not the language to use unless it’s in line with every other piece of your external communication (in which case maybe we can give you some advice about your general communication)!

Early communication makes you visible, gives you some breathing space and offers you a chance to direct people to more factual information as soon as you are able to release it.  Hiding isn’t a solution – if you don’t talk, other people will do the talking for you.

One other piece of advice that is emerging from the development of social media and ‘groundswell’,  is to listen carefully to the ‘buzz’ and see just how balanced it is.  As Klaassen points out, it is important to know who is actually doing the talking and just how influencial they actually are as core customers/clients/audience base or brand champions.   It’s human nature to immediately focus on the the negative comments, but if you take a step back you might find that the feedback is self-balancing and that you have allies prepared to jump to your defence without you having to prompt them.

But most of all,  in a true crisis be yourself and be sincere – if you get it wrong,  saying “sorry” might be the hardest word but it’s a good one to start with.

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The death of online audio

Thursday, February 28th, 2008

I couldn’t let this one pass by without comment. No, it’s not a complete U-turn from my comments about online radio being the future, it is, in fact, the ultimate in multimedia usage. I saw this on ResponseSource and had to think long and hard about whether this was clever, funny or downright morbid. In the end, I couldn’t make up my mind, so I’ll let you decide whether you think Sayitwhen.com (Say it when You’re Gone) is the ultimate in the use of audio or not.

It gives people the chance to leave a message in case the 777 they are boarding suffers catastrophic malfunction at 30,000 feet, or the mild heartburn suddenly manifests itself as a terminal miochardial infarction. The message can then be heard by their loved ones after the event.

A really touching idea, or something disturbing? You choose.

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Out of the Woods

Friday, January 25th, 2008

I was reassured by Jerry Johnson’s take on Tiger Woods’ response to the unfortunate comment by golf pundit Kelly Tilghman who suggested that the only way his younger competitors might get ahead of him is to “lynch him in a back alley.” In particular, Jerry states: “The silly thing is to think that when you offend, you control the ability to forgive. You don’t. That lies with those whom you’ve presumably offended.”

Whenever I get involved in crisis management – whether lecturing or working with clients – the key things I always stress are that in a crisis you can only deal with what’s in your control, and know who your allies are. What is interesting about the Tiger Woods situation is that he was her ally and that definitely wasn’t in her control.

It’s a truism that in a crisis you really find out who your friends are – in some cases they even come with their own brand!

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