Crisis Communication

The Golden Hour

"Bad things happen to people and organizations all the time, and it isn't the severity of the negative event that determines whether they suffer reputational, operational, or financial harm, but rather the nature and timeliness of the response."

Traditional Media

98 percent in US have televisions Get crisis info without seeking it Slower distribution Usually more accurate/ reporters on site

Blogs Can be positive or negative. Can be dangerous:

A 2005 study found 44 percent of 18 to 34-year-olds get their news from online sources and 32 million Internet users had accessed blogs. Difficult to differentiate between news blog and rogue. Bloggers write what they want and can be full of errors, flaws, and innuendo.

Definition of a crisis

A crisis is a major occurrence with a potentially negative outcome affecting the organization, company, or industry, as well as its publics, products, services or good name. A crisis interrupts normal business transactions and can sometimes threaten the existence of the organization. A crisis can be a bankruptcy, boycott, fire, merger, murder, natural disaster, product recall, product tampering, strike, terrorism, et al.

Crisis Communications Plan

A plan to manage the dialogue between the organization and its public(s) before, during and after. Strategies and tactics are designed to minimize damage to the image of the organization.

Crisis Management Plan

A strategic plan that removes some of the risk and uncertainty and thereby allows the organization to be in greater control of its destiny.

Reputation

Add value over time. Do things right and do the right things. Determine how you want to be known. Then build strategic roadmap to get there. Core values are what you stand for. Differentiating elements that help you stand out, build reputation and gain respect. Walk the talk.

Apology vs. Excuse

An excuse passes blame to others (e.g., Jack in the Box). An apology is a sincere admission that you are sorry for whatever happened.

How to Build Reputation for the Long Term

Analyze the competition Establish core values, positioning Target external audiences Create a compelling vision, evocative messages Assemble the tactical tool kit Draw the strategic road map Dare to be measured Ongoing reality checks—Beware of LAQs

Messages

Anticipating crises allows preparation of game plans and messages. Develop holding statements—helps fill media vacuum. For large-scale crises, messages evolve: Concern—what happened. Relief—safeguards to show its under control. Reassurance—keep event from happening again.

Crisis Communication Theories

Apologia Theory, Image Restoration Theory, Decision Theory, Diffusion Theory aka Diffusion of Innovation Theory

Crisis communication team includes

Atleast two spokespeople CEO, members of senior leadership team In-house communication team PR agency Peers ("mutual aid" agreement) National assistance May need to call on legal counsel.

Media Interview Don't's

Be a wimp. Guess/speculate/predict. Overreact to being quoted out of context. Play favorites. Pull advertise if you're unhappy with coverage. Worry about edits - POA. Stick to story if it changes. Wear sunglasses, chew gum or smoke.

Crises

Come in all forms.

What a Crisis Plan Provides

Communicating the right message; At the right time; To the right people.

Research shows

Companies with two-way communication often avoid crises or endure crises of shorter duration or of lesser magnitude. Strong community presence and good relationships with media are beneficial. Crisis management and crisis communication are key. Training is essential.

Research and Planning

Conduct ongoing internal and external (industry) "environmental scans" Maximize opportunities Monitor potential issues Manage and mitigate crises Have a comprehensive crisis communication plan "on the shelf"

External Publics

Consumers/customers, community members, government officials, et al. Correct message and correct medium. Communicate with loyal consumers more directly than through the media. Communicate five Ws of the crisis - who, what, when, where and why. Some key external publics should receive key messages if called upon by media.

The Plan

Crisis directory (internal call sheet); Communication flow from point of contact out to stakeholders; Tracking mechanism for media; Message agreement—pre-crisis, anticipate questions during crisis, standard answers; Stakeholder segmenting, best tools and timing. "Family first" when possible, but social media levels playing field on timing.

Crisis management experience crucial

Crisis management ranks number one among prerequisite success factors for global chief communications officers Sixty-five percent of global CCOs say improving corporate reputation is their main priority — a number that has nearly doubled since the survey first debuted in 2007.

Spokesperson

Depends on issue. For critical issues, the CEO should be visible, at least initially. Specialists—subject experts—who can give credibility. Consider lining up outside experts—have a lot of credibility because they are third party.

The Five Stages of a Crisis

Detection Prevention/preparation Containment Recovery Learning

Take Action

Determine ... and then communicate ... meaningful actions. Consider proactively contacting another media outlet. Prepare communication to key groups. Prepare employees for onslaught of calls. Prepare for other media inquiries. Prepare objective sources.

Fearn-Banks

Develop a crisis inventory — which crises organization is likely to face. Open and honest policy — Like Marra, Fearn-Banks believes this reputation for open and honest dealings with media and stakeholders will result in less damage.

Fighting the Rumor

Disseminate accurate information to contradict the rumor. Analyze the rumor - how did it start, impact, etc.? Do nothing (e.g., Gerber Products). Deny the rumor publicly and prove it has no truth. Get an outside expert to discredit the rumor. Place ads in high-circulation publications. Reach great numbers of people. Can't always rely on the media to tell your story or safeguard the message.

Media Relations

Doing the story with or without you ... best to be involved and manage the story. Do not assume the crisis will go away. Media can become adversarial ... believe they are there to protect the public. Comprehensive "do's" and "don't" to come.

If a company is the victim of an attack site:

Don't overreact. Assess the problem. Analyze the attack site (disclose identity). Drive the discussion on your website.

Dunkin' Donuts

Dunkin' Donuts didn't have its own site and rogue site started to get traffic routed via Yahoo. Company acquired the site.

Internal Publics

Employee public - functional public - should be kept apprised in a crisis. Crucial because they are believable spokespersons. Media may seek them out for comment. Touchpoints to customers. Intranet - if password protected - great tool for "family first." Convey to employees the importance of continuing the business during a crisis. Create a sense of "we-ness" for employees during a crisis, but for continuity and clarity, speaking to the media should be contained.

Detecting Rumors and Preventing Spread

Establish a rumor center or rumor hotline. Train representatives for rumor control. Conduct rumor workshops/rumor communication plan. Make sure company has strong positive relationships with key publics. Keep employees informed. Informed employees can be a company's strongest supporter. Evaluate the extent of a rumor.

Diffusion of Innovation

Examines how new procedures, practices, and objects are adopted and accepted by companies and individuals. — Change agents try to move body forward toward adoption

Learning

Examining the crisis and determining what was lost, what was gained. Good show/bad show assessment of how the company responded. Brings about change to prevent future crises.

Microsoft

Fake e-mailed news release about acquiring the Catholic Church. Issued news release denying the rumor.

Goals with media

Get control of the situation as much an as soon as possible. If you release your own bad news, you can decrease the likelihood of rumor, supposition, half-truths and misinformation. Help the media cover the story accurately and with minimum criticism of the organization. Keep or get the public's trust through the media. Media need you for information for interesting stories. Organization needs the media to communicate with the public en masse.

Media Contact Team Will need:

Good press contacts; Updated media list; Understanding of media; Media tools; Facilities, services (like translation);

Public Opinion

Guilty until proven innocent. PR aims to reinforce positive attitudes, change negative attitudes, and provide information to enhance/shift opinion. Honesty is the best policy ... if the company is at fault, own up to it.

Three unique problems with rumors:

Have no idea how it started. Have no idea how widespread it is. Determine whether to ignore or fight. Sources are usually rarely the actual source - people change rumor along the way (like "telephone"). May be started innocently (e.g., IRA).

Snapps Restaurant and the AIDS Rumor

Historic use of a news conference Included health department Formed a damage-control task force Managers tested (had to be voluntary) Didn't press charges/maximized apology Cut business 50 percent/never fully recovered

Truth is Essential

In a world of instant communication, monitor news and blogosphere. Correct errors immediately. Unfortunately, outlets want to be first and speed may lead to inaccuracy.

Creating a Listening Environment

In all forms of communication - from word of mouth to word of electronics - Watch, listen, learn. Monitor everything. The Internet - great source of information and news. Can be a greater source of misinformation and rumor - looks factual.

Rumors

Information passed by word of mouth and electronic communications with no verification of fact and no credible source. Can be positive or negative. Can be absolutely false, partly false or undeniably true or premature facts. Can be a nuisance, can affect the bottom line, can put a company out of business. Can be word-of-mouth rumors, e-mail rumors, rogue websites and/or blogs.

Types of Rumor

Intentional rumor - started to achieve a purpose. Premature-fact rumor - an early version of what will eventually become the truth. Malicious rumor - often started to damage competitors' business. Outrageous rumor - so unbelievable it "has to be true!" Nearly true rumor - partly true. Birthday rumor - emerges over and over

One Clear Voice

Internal communications - engage employees and build trust External communications - earn stakeholder trust and support Publicity - build public trust and support

Social Media

Internet usage at 72.6 percent in US Must seek out the information Almost immediate Not always trained reporters

Formulating a Response ...

Involve top leadership. Do the right thing. First reaction is important. Get all the facts. Involve your legal counsel. Determine your key messages and fully develop them. Release the bad news all at once. Evaluate the media outlet and reporter. Determine spokesperson. Anticipate likely questions and responses. Determine response - interview or statement. Practice your interview. Provide reporter context before starting. Always be truthful. Feel free to be assertive. Never say "no comment." Never go "off the record." If appropriate, refer reporter to others who will validate information or support reputation.

Reporters

Jacks of all trades/master at none. Quick studies ... not knowledgeable or necessarily interested in the subject. Do not write their headlines. Understand their pressures. Can "give" reporters stories ... but be careful. Many reporters moving into PR.

AOL "Sucks" Site

James M. Egelhof created a rogue website naming AOL "the MTV of the Internet" providing detailed text. AOL threatened legal action. Egelhof held fast that he'd broken no laws. The site traffic increased from 20 to 360 hits daily. AOL apologized and offered Egelhof a job.

Birth and Evolution of Crisis Communication

Johnson & Johnson - successful Exxon Valdez - unsuccessful 911 - unthinkable Hurricane Katrina - mismanaged Virginia Tech - changed requirements for universities

Customers/Consumers

Keep the old customers - loyalty programs. Attract new customers - value and quality. Proactive outreach, events, publicity. Market new services and products - ongoing enhancements. Handle complaints swiftly - Complaints can also be a red flag of a problem. Educate customers - about products and services. Organize outreach programs - know your community and its needs.

International Banana Association

Killer banana rumor. E-Mail said it was confirmed by the CDC. IBA said the prank could disrupt the economy. National Necrotizing Foundation served as expert.

Goals during a crisis

Limit damage (reputation, financial, etc.) Act quickly Speed, transparency, efficiency Put people first Turn the situation into an opportunity

Media Interview Do's

Listen before answering. Use everyday language Calm, courteous. Understand reporter's job. Be accessible. Treat reporter as a partner/ally. Tell the truth. Look reporter in the eye. Use your CCP. Keep employees informed.

If site attempts to damage the company:

Make a complete mirror of the site. Identify the webmaster. Create rebuttal pages and post if needed. Prepare written statements for CC team. Contact the webmaster by phone, mail or attorney.

Detection

May begin with noting warning signs (prodomes). When businesses in same industry have a crisis, this is a prodome. Also refers to the system within the organization in which key personnel are notified.

Solution

Mutual understanding and collaboration. Legal profession older and certification is new in public relations. Accreditation in Public Relations (APR) is a credentialing offered by PRSA. Lawyers becoming more adept at PR and recognizing importance of public opinion. Sometimes the court of public opinion helps reverse decisions made in the court of law. People believe what they read and see.

Crises

No city, country, industry or organization is immune Crises are unpredictable The media play a critical role (can make or break a crisis) Crises have a financial impact

Rogue Websites

Normally created by disgruntled individuals with the intention of bringing attention to an issue or several issues concerning a corporation or organization. Sites fall into five categories: Consumers are unhappy with company performance. Consumers are unhappy with company policies. Consumers or former employees have negative feelings toward the company. Consumers create humor pages aka "spoof" pages. An index is created for complaints of multiple businesses (e.g., sprawl-busters.com). Rogue websites that seem designed to destroy a company are called attack sites or antisites. Another internet crisis can occur when company websites are invaded. Last week GoDaddy.com crashed and initial reports blamed a hacker, but it was a system failure.

Prevention/preparation

Ongoing PR programs and regular two-way communication build relationships and help prevent or lesson crises Corporate culture with open interaction Corporate Social Responsibility and policies that prevent crises Training of key personnel to assess media inquiries (and contact the right person) Prepare/update Crisis Communication Plan

Proctor & Gamble and the Satanism Rumor

P&G sought assistance by Jerry Falwell and Billy Graham sent letters to 48,000 churches. Cost $100,000 to fight the rumor.

Communicating with Lawyers

PR and attorneys often at odds. Lawyers preference: Silence Say as little as possible Deny blame and guilt Shift blame to others or share it with others Anything you say can be used against you.

Grunig and Repper

PR is excellent when integral part of organization's strategic management process and managed strategically. PR is managed strategically when it identifies stakeholders and resolves issues. PR head part of top management. Programs build relationships with key stakeholders. PR identifies and ranks stakeholders. Ongoing plan is developed for each key stakeholder. Segments large publics into smaller publics. Issues management is part of two-way symmetrical program for early identification of crises.

How Rumors Spread

People believe it is "news" and news has emotional relationship to their lives. Seems plausible. Often refers to something causing fear - rumor tellers want to ease the fear. People distrust the "establishment" - organizations, governments and big corporations. Rumor tellers want to be "in the know." Information is power.

Phishing

Phishing e-mail messages, websites, and phone calls are designed to steal money. Cybercriminals can do this by installing malicious software on your computer or stealing personal information off of your computer.

Top Five Pieces of Advice

Prepare for the worst. Anticipate crises. Plan, plan and plan some more. Know that you can never imagine every scenario. Trust your gut ... be human.

Battling Online Rumors

Proactive Website is one tactic University of Texas Medical Branch - "Rumors and Trumors" website to fight rumors regarding layoffs. TWA vs. Alaska Airlines Silence - not recommended - equals assent. Only "enemy's" side of the story is told. Devise the best plan for the problem. Speak with one voice. Adopt an appropriate tone - formal or informal based on the crisis. Seize the opportunity. Diffuse the crisis and build new alliances and reach goals.

Internal Publics

Programs for employees should: Offer training and clear expectations Provide rewards and consequences Avoid punishing hard work Provide assistance for personal needs

How to Prevent Rogue Sites

Purchase several domain names, including "suck sites." xcompanysucks.com Purchase other site suffixes - .com, .org, .net Federal Anticybersquatting consumer Protection Act signed into law November 1999. Allows the holder of a copyright or trademark to sue cybersquatters who have registered copyrighted domain names and forces them to relinquish address. Best prevention method is acquiring federal trademark registration for the company name. Use a monitoring service.

Public relations is a four-step, continually-cycling process. R.A.C.E.

R - Research - Find out about the situations - maximizes the benefit and/or minimizes the harm. A - Action - Use research to determine the best course of action. C - Communication - Use all available media to deliver carefully-focused messages through the most appropriate channels. E - Evaluation - Analyze what's been done to see how it affected your publics and their perception of your organization. Once this step is completed, return to the research step and begin the process again.

Public Relations

Reputation protection and enhancement. Maintains mutual lines of communication. Counsels management on problems or issues. Helps management stay informed and responsive. Serves as the organization's "conscience." Serves as an early warning system to help anticipate trends. Uses research and sound and ethical communication as its principal tools. Trust is at the heart of public relations.

Independent Research

Review the literature that is available on employee communication. Identify important strategies, principles of communication that should be considered. Outline the tools that are used by companies today for employee communication. Identify any trends in employee communication. Find which companies are doing the best job in employee communication. Find, if any, what connections there are between effective communication and employee satisfaction and productivity

U.S. Society of Professional Journalists Code of Ethics:

Seek truth and report it; Minimize harm; Act indepedently; Be accountable. Companies should have the opportunity to respond to negative accusations.

Environmental impacts

Shrinking of traditional media Can't rely on publicity to reach target udience in good times or bad Growth of social media and new media "Citizen" journalism Use all available tools and invest in new technology (e.g., Rave Alert)

Social Media Rumors

Social media and e-mail rumors can spread to thousands in seconds. Can change elements of the story with each transmission. "Culture of Cyberspace" - believe what they see on the Internet or in e-mail. May use e-mail with vicious intent or to warn friends. Neiman Marcus cookie recipe. KFC rumor - no chicken.

The Publics

Specific audiences targeted by programs: employees, customers, stockholders, community members, board members, unions, etc. Programs build relationships. Media relations, community relations, employee relations, consumer relations, government relations, investor relations, etc.

Trick Questions

Speculative questions - can be dangerous. Leading questions- want you to confirm. Loaded questions - rephrase if needed. Naïve questions - they are quick studies. False questions - intentionally inaccurate. Know-it-all questions - infers they have the story. Silence - don't fill the air space. Accusatory questions - designed so you'll blame others. Multi-part - answer separately to avoid confusion. Jargonistic - use everyday language in your response. Chummy - remain on your guard - sound is always on. Labeling - again ... rephrase ... don't repeat their terms. Good-bye questions - "by the way" ... always be "on" even in the camera or recorder is off.

Stages of a Crisis in the News Media

Stage 1—Breaking News - immediate shocking or dramatic impact. Stage 2—Begins when concrete details are becoming available. Stage 3—Often involves analysis of the crisis and its aftermath. Stage 4—Is an evaluation and critique of the crisis. Also signals a return to normalcy and lessons learned.

Communication When the Crisis Strikes

Start communications as soon as possible in the "Golden Hour" - the first hour following notification that the crisis has occurred. If accurate data isn't transmitted ... inaccurate data is. The tools ... traditional media vs. social media.

Communications to Prevent Crises

Strong community relations program. Ongoing positive media coverage. People-centered corporate culture vs. profit-centered. Listening to internal publics to determine likely prodromes.

News Conferences

Structure/materials: Prepared statement read and distributed. Spokesperson(s) Talking points—messages you want to be sure to get across to the public. Remember care and concern. Should be practiced.

Recovery

Survey key groups Develop a series of long-term objectives based on recovery. Focus on core audiences with strategic programs and outreach. Maintain positive positioning through advertising and editorial coverage in target media. Measure the planned objectives. It is not what happens to you, it is how you handle it that makes the difference.

The Masses

The Internet - Facebook, Twitter, email, blogs, websites - can reach the masses. Good for supplemental information and immediacy. Traditional media still primary source, but "wired" Americans access news online weekly (one-third of users/three or more times a week).

Containment

The effort to limit the duration of the crisis or keep it from spreading to other areas affecting the organization.

Possible Results of a Crisis

The organization is put out of business, ruined, possibly sued, and key execs are charged with crimes; continues to exist, loss of image and reputation in eyes of public and possibly financial position; wins the war of public opinion and is seen as or more favorably than before.

Elements of a Plan

The right message; To whom that message should be told; Who should tell it; The right time to tell it.

Study findings

The study also revealed: Social media helps crisis resolution, but it is not the root of all crises. Only 7 percent of CCOs said that a crisis began in social media. CCOs say that corporate social responsibility (CSR) is a reputation safeguard. Positive media coverage and employee satisfaction/engagement are leading metrics for gauging CCOs and their communications effectiveness.

Best Practices

The tools may have changed, but the primary concepts have remained constant for decades. The "best practices" that emerged are simply Clarity, Community, Context, Convergence and Customization.

Recovery

This stage refers to the efforts to return the company to business as usual.

Communicating with the Media

Two facts of life with the media: Information about a crisis reaches the public through the media more than any means. Companies have to work hard to get media attention in normal times.

Alaska Airlines

Two fraudulent websites were created to solicit donations. Company issued two news releases to warn the public.

Assessing Story

Types of questions. How many times they call you. Are they calling others? Notify others of expected stories ... Media Notify is sent to key administrators.

Three Types of Response:

We know and here's all the information. We don't know everything at this time. Here's what we know. We'll find out more and let you know. We have no idea, but we'll find out and tell you.

Marra

Well-developed relationships with key publics Two-way symmetrical crisis communication procedures Continuing risk communications procedures and CCP Communications ideology that encourage, support and champion CMP and CCP as well as two-way symmetrical communication practices

What the News Media Want to Know

What happened? Were there any deaths or injuries? What is the extent of the damage? Is there a danger of future injuries or damage? Why did it happen? Who or what is responsible? What is being done about it? When will it be over? Has it happened before? Were there any warning signs of the problem?

Decision Theory

— Counsel management and other leaders to make most effective decision. — Monitor issues to avoid/manage crises.

Apologia

— Organization defends its reputation and protects its image. Not necessarily an apology. — Communication efforts may deny, explain or apologize

Image restoration theory

— Organization defends its reputation and protects its image. Not necessarily an apology. — Communication efforts may deny, explain or apologize