Crisis Management Special Report Introduction

PR News Crisis Management Special Report Introduction

ISSN 1546-0193 Editor, Seth Arenstein, 571.236.2896, [email protected] We’re on fairly solid ground in this special report on crisis management. Unlike some topics in Editorial Director, Steve Goldstein, 212.621.4890, PR, social media, for example, where the tactics and platforms change almost as soon as an [email protected] Managing Editor, Ian Wright, 212.621.4917, article is written about them, the fundamentals of crisis management move much slower. [email protected] Assistant Content Manager, Mark Renfree, 212.621.4807, [email protected] That means all you need to do is master the tactics and strategies laid out in these Director of Marketing, Laura Snitkovskiy, pages and you’ll be set for anything. Seems simple, right? 301.354.1610, [email protected] VP of Marketing, Amy Jefferies, 301.354.1699, [email protected] Well, not exactly. Social media (there it is again) has changed the playing field in crisis management, too, mainly Assistant Marketing Manager, by speeding up the game tremendously. Warren Buffett famously said a reputation built over the course of 20 Rachel Scharmann, 301.354.1713, [email protected] years could be ruined in 5 minutes. Brands hardly get 5 minutes anymore thanks to social media, says Torod Nep- Marketing Assistant, Jessica Placencia, tune, VP of communication at Verizon. A crisis spreads in the time it takes to compose a Facebook post, he says 301.354.1641, [email protected] SVP Group Publisher, Diane Schwartz, 212.621.4964 (see page 6). 28% of crises rebound around the globe in 1 hour, according to Freshfields Bruckhaus Deringer and Division President, Heather Farley MWWPR, but it takes the average brand 21 hours to respond to a crisis. “60 seconds is the new first hour,” says President & CEO, Don Pazour Graphic Designer, Tara Bekman Careen Winters, EVP and global corporate reputation practice leader at MWWPR (see page 4). The fallout is equally troubling: 12 months after a crisis more than half of companies had not seen share prices regain pre-crisis levels.

PR News ADVISORY BOARD Paul Argenti - Tuck School of Business at Dartmouth There are other issues beyond speed. The number of brands mishandling crises leads one to believe that a central Ned Barnett - Barnett Marketing Communications tenet of crisis preparation, having a crisis plan in place, is being ignored for the most part. Mary Buhay - Gibbs & Soell Neal Cohen - APCO Carol Cone - Edelman Peter Debreceny - Gagen McDonald At PR News Pro, we looked into this supposition in mid-March 2016, along with our partners at Nasdaq Public Rela- Chris Hammond - Wells Fargo tions Services. We found nearly 50% of communicators surveyed said their brands lack a crisis plan; 12% said they Mike Herman - Communication Sciences Larry Parnell - George Washington University were unsure. Face it, when a communicator’s unsure whether or not the brand has a crisis plan that’s tantamount to Mike Paul - MGP & Associates PR Deborah Radman - Senior PR Consultant not having a crisis plan. This lack of preparation shows in how some brands react when an incident erupts. Brenda Siler - Best Communication Strategies Helene Solomon - Solomon McCown Mark Weiner - PRIME Research Just in the past few weeks we’ve seen Wells Fargo bungle a situation involving several million false savings and Mary Wong - Office Depot PR News BOARD OF CONTRIBUTORS credit card accounts. What makes it more puzzling is that the situation was brewing quietly for years before it Dave Armon - Context Optional Andy Gilman - CommCore Consulting erupted onto the front page. For example, the bank fired more than 5,300 employees during a five-year period Bruce Jeffries-Fox - Jeffries-Fox Associates Angela Jeffrey - VMS leading up to the September 2016 news stories about the accounts. Yet Wells Fargo and its CEO, John Stumpf, Richard Laermer - RLM Public Relations seemed unprepared when asked about the situation. Richard Levick - Levick Strategic Comms Ian Lipner - Lewis PR/YoungPRpros Tom Martin - College of Charleston Katie Paine - KDPaine & Partners Shortly after a period where the bank refused to comment, a statement was drafted, although Stumpf’s name was Rodger Roeser - The Eisen Agency absent and its tone was more factual than apologetic. When he eventually spoke to the media, Stumpf insisted Lou Thompson - Kalorama Partners Reid Walker - T-Mobile Wells Fargo’s culture was fine; it was a case of a few bad apples, he said. Critics questioned how more than Group Subscriptions — Laura Snitkovskiy, 301-354-1610, [email protected] 5,000 employees could be described as “a few bad apples.” Additional Copies & Article Reprints — Contact Wright’s Media, 877-652-5295; Stumpf essentially repeated this line to congressional committees. Members on both sides of the aisle who were [email protected] primed to score points with voters pilloried him. Stumpf was gone as CEO in a matter of weeks, although the re- sults of an ongoing investigation into the matter eventually might cost him some of his ample retirement package. Published weekly by Access Intelligence, LLC 9211 Corporate Blvd, 4th Fl, Rockville, MD 20850 Just weeks after Wells Fargo news burned on all forms of media, a major tourist attraction in Australia, Dream- Client Services: Phone: 888.707.5814 • Fax: 301.309.3847 world, bungled the aftermath of an accident on one of its rides. It was awful that four people were killed on the e-mail: [email protected] ride, but the theme park’s owner’s senior leaders absence for several days worsened the situation. When the New York Editorial Office: 40 Wall Street, 50th Floor, New York, NY 10005 owner’s high-profile CEO, Deborah Thomas, finally met the press, she came with a just-approved $800,000 per- Phone: 212.621.4900 • Fax: 212.621.4800 formance bonus and a faulty claim. She said the company, Ardent Leisure, had contacted all the victims’ families. Subscription/Renewal Coupon A reporter challenged her during the press conference; the journalist said a family watching the press conference ❍● I want to subscribe to PR News for $1,148.97/ on TV was outraged. The family had never been contacted. It was yet another miscue during an awful week. year or $2,196.97/2 years, and receive weekly issues plus unlimited access to the online premium content and archives. The tips and tactics concerning crisis, many of which are reiterated in this report, are obvious. Equally obvious is Name:______Title:______that if brands and brand communicators do little to implement these lessons, very little good will be the result. Organization:______Address:______City:______State:_____ ZIP:______Phone: ______Fax:______Email:______❍● I want to renew my $1,049 or $1,998 subscription to PR News. My account number is: ______Charge my Card No.______Exp.______Signature:______Seth Arenstein ❑■ Check enclosed (Payable to Access Intelligence, LLC) In MD add 5% tax. Postage and processing add/yr: Editor, PR News $20 within U.S., $99 outside U.S. Fax to 301.309.3847 For subscribers only: full access to PR News Twitter: @skarenstein article archives at www.prnewsonline.com

© 2016 by Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations. How PR Pros Can Anticipate Crises at Their Own Organization By Seth Arenstein

here’s good news and bad news when All Is Not Lost: Still, Neptune is upbeat. As a it comes to managing crises in the communicator “you already know where 90% of digital era. On the upside, brands are the crises” that will touch your business are, he able to reach their stakeholders directly said. “If I ask you to name the three areas where via social and there’s never been a you think there will be a crisis at your company Ttime when it was easier to monitor and listen to I’m sure you’d be able to name them,” he the conversation between brands and customers. added. That’s because communicators “work Yet digital technology can spread word of crises, in the shadows,” between a brand’s various accurate or not, around the globe within seconds. departments and so are well placed to know The five minutes that Warren Buffett once said it where potential crises loom, Micheline Tang, takes to ruin a reputation is no longer the case. It’s director of communications at the law firm King now been reduced to the time it takes someone to & Spalding, said at the workshop. “We’re the create a Facebook post, Verizon’s VP, corporate great synthesizers” since we work with all parts communications Torod Neptune said at PR News’ of the company…this makes us invaluable,” Crisis Management Workshop Oct. 19 in New York. said Neptune.

3 As such, “[Communicators] should lead in a crisis… Prepare and Pack Heavily: Where the two we deal with all the teams and manage relationships” disagree slightly is on preparation for crises. between them, he said. In addition to knowing where Neptune advocated having a plan in place. potential crises reside, “We know the protocols [for Tang opts for a “packing list” that anticipates crisis management], the chain of command…others the many things you’ll need to react to crises, [outside of communications] at your company might including: press releases, timelines, media not know these things,” he said. contact numbers, media kits, lists and contacts Listening and the for industry gurus/influencers, logos, call Ivory Tower: Another forwarding instructions for receptionists, proxy important function for statements, B-roll, emails of politicians, union communicators, the two leaders, etc. agree, should be monitoring Tang suggests the social conversation, formulating such lists and via Google Analytics and updating them through other tools, so they should periodic visits your brand’s Torod Neptune, be most attuned to the domestic and international VP, Corporate climate and “anticipate offices. Once on site Communications, crises,” Neptune said. Adds assemble members of Verizon Tang, communicators who various teams (operations, are monitoring and listening should be a brand’s Micheline Tang, secretarial, financial, legal, defense against “a corporate ivory tower.” Don’t Director of sales, marketing etc) and allow your brand to become “isolated.” Communications, run a crisis simulation. Hers A Tip: “I know what the C-suite thinks” are the King & Spalding consists of 11 envelopes brand’s pain points and potential crisis starters, Tang that contain various said, but it’s important to spend time with middle and scenarios. The group reacts to the scenarios, lower rank staff. Find out what’s on their “oh, crap” formulating plans. At the end of the three-hour lists, she urged. That will add to your knowledge session Tang leads a lessons-learned segment. base about where crises might be lurking. In She underscored one of Neptune’s earlier points: addition, when a crisis occurs that’s related to one “What seems obvious to us as communicators of the less-known areas of your company, you will [during a crisis] may not be for people in other be able to explain it easily to the C-suite. At the parts of the company.” least, you’ll know people in the affected areas whose Follow Seth Arenstein: @skarenstein knowledge you can tap, Tang said.

4 3 Questions to Ask Before Your Crisis Counterattack By John Roderick

he public apology is dead. Long live to improvement by engaging in an activity that can the indignant counterattack. Thanks to lead to personal or organizational change. At the Republican presidential nominee Donald heart of the crisis management response to an Trump, public figures and corporate outraged community is the apology itself.” chieftains who find themselves on the Trump essentially has turned standard practice Treceiving end of scrutiny by media or other actors on its head. The candidate’s routine method of may no longer need to recite painfully scripted reacting to crises is to denounce his accuser or statements with stoic spouses standing by their those who’ve registered criticisms. Examples sides. They just need to fight back. of this in the Trump presidential campaign are PR News editorial director Steve Goldstein numerous. And regardless of which candidate wrote recently, “Standard practice…when an you support and, for the moment, suspending organization or individual commits an act that ethical judgement, you have to admit it’s worked outrages a community includes…confessing your for the most part. sins, creating a forum that enables the community An early example of Trump’s reengineering of the to express itself freely and showing a commitment public communications playbook occurred in May.

5 Accused of short-changing a veterans’ group disinterest in the mores of traditional PR translate on a charitable donation, Trump called a press into authenticity with his base. Say what you will conference. He then used the opportunity to unleash about his style, if you ask Trump supporters what a 40-minute attack on the press, accusing it of lying. they like about him, you’re almost guaranteed to In one deft move Trump took the kind of hear a variation of “He speaks his mind” and “He’ll accusation that had the potential to damage his shake things up in Washington.” credibility and turned it into a referendum on liberal bias in the media. Rewriting the Rules of PR Trump, in this particular case, avoided traditional Whether you call it the Trump Effect or the end media-training tactics communicators have relied of the age of nuance, the legacy of the 2016 upon to navigate challenges like this, including election may be a rewriting of the rules of effective conciliatory gestures and speeches and well- communications. placed op-ed articles. Instead he turned to what This trend is not limited to politics. A gradual is known as the Strategic Offensive Principle, evolution away from the strictures of traditional popularized by the adage “The best defense is a standards has been unfolding in all forms of public good offense.” As such Trump turned the tables, communications. training his sights on the press corps, saying, The issue for communicators: Can Trump’s style “The political press is among the most dishonest work for others? In fact, it’s already working, I’ve ever met.” A reporter from ABC News was a but only for some. Trump’s opponent Hillary “sleaze,” Trump said; a CNN reporter was guilty of Clinton was on the offense during much of the “abject incompetence.” email server incident, apologizing fairly late in the game. Wells Fargo CEO John Stumpf and Apologies, Then Back to the Offensive the phony accounts scandal is another example. While the recent 2005 videotape revelation While Stumpf admitted culpability eventually, resulted in apologies from Trump whose his initial response was to blame 5,300 low- completeness and tone can be debated, the level staff and to refuse to admit his bank had point here is his offensive returned quickly. In a cultural or systemic problem. That offensive response to reports that House Speaker Paul failed to convince lawmakers in Washington, D.C., Ryan allegedly told House Republicans during an who grilled Stumpf during two hearings. Stumpf Oct. 10 conference call they should make their resigned Oct. 12. own decision about whether to support Trump So, before you throw away the PR playbook, it’s in light of the video, Trump attacked. “Our very important to ask yourself several questions: weak and ineffective leader, Paul Ryan, had a bad conference call where his members went wild at IS MY BRAND EDGY ENOUGH? his disloyalty,” he tweeted. “Paul Ryan should When it comes to tone, what’s right for a spend more time on balancing the budget, jobs multinational like GE may be different from what and illegal immigration and not waste his time… works for a younger, edgier brand. Take comments fighting [the] Republican nominee,” another Trump made May 19 by Vice Media CEO Shane Smith tweet said. One hour later Trump tweeted, “It is so on hiring former Bloomberg editor Josh Tyrangiel nice that the shackles have been taken off me and to lead his news empire: “He’s a murderer…Vice I can now fight for America the way I want to.” News [is] the fastest growing news platform in Right, wrong, true, false—it matters little because the world…[But] How do we take on CNN…and Trump’s mastery of the sound bite and his the BBC?…Josh is that guy…a [expletive] angry

6 young man who wants to shove it in their asses.” Dimon didn’t say he respectfully disagreed or Vice Media is edgy, but it’s also a very mainstream appreciated the sentiment. He called Fine “a presence with about $1 billion in revenue, a new jerk.” That made headlines for one day and show on HBO and a valuation of roughly $5 billion. disappeared. Known as a no-nonsense executive For Vice, the approach was pitch-perfect. who sometimes has little patience for debate, Dimon arguably emerged stronger in the end, his ARE WE BEING AUTHENTIC? authenticity very much intact. Authenticity, not to be confused with the truth, HOW THICK IS OUR SKIN? is the ability to put complete conviction behind your statements. It’s everything in the current Live by the angry barb, die by the angry barb. communications environment. An unfortunate side effect of the trend toward This is a fundamental change, but in a world where unfiltered public communications is that these it’s become commonplace for public figures to types of comments never occur in a vacuum. show their anger and vent, overly scripted public They are not knockout punches that render statements and carefully-worded détentes can opponents neutralized. Rather, they are opening come across as insincere. volleys in a salvo that often reverberates for days in the echo chamber of 24-hour news channels Another bank example is the scrape between and social media. JPMorgan Chase boss Jamie Dimon and Cameron Fine, president/CEO of the Just as it was in third grade, if you call someone Independent Community Bankers Association. a name, you’d better expect retaliation. You, your When asked during a May 11 CNBC interview spokespeople and your brand will need to have about critical comments Fine had made, the resolve to ride out the ensuing drama.

7 How PR Pros Can Shape a Brand’s Culture to Avert Looming Crises By Deborah Hileman

very day, another organization finds its clients to implement an early-warning system to way into the headlines embroiled in a surface issues early enough to prevent or mitigate once-preventable crisis that threatens them before significant damage occurs. its reputation, financial health, even its As it turns out, communications and culture very survival. In this age of instant global are key parts of such a warning system. As Ecommunication, no organization is immune. Entire important members of the crisis management companies and their stakeholders can suffer from the consequences of poor decisions made by team, communicators can and should work with people at every level of the organization. Often, executive leadership to build the cultural dynamics powerful cultural influences in an organization needed to support an effective crisis early-warning disguise the warning signs that can identify system centered on transparent communication. smoldering issues that spell disaster. A culture of transparent communication across Effective crisis management and crisis the organization is fundamental to the success prevention in particular include a systemic of such a system. An organization’s culture plays approach to identifying issues and correcting a defining role in how employees communicate, them. Crisis management consultants often advise make decisions and solve problems.

8 How do you know if your organization’s culture Cultural modificationis not a quick fix. In a larger discourages employees from raising legitimate company, it can take years to effect meaningful concerns? Consider the following: change. Clearly, then, culture is an important Shooting the messenger: In many organizations, risk factor to consider when developing and it’s common for members of senior management implementing an early warning system. to blame those who bring issues to their attention. In an effective culture, communication is In this culture, people learn quickly to keep quiet reciprocal, transparent, consistent, frequent, to stay safe. Such fearful silence is toxic to the timely, appropriate, managed up and down, organization, creating abundant opportunities for supportive and empathetic. When all team manageable issues to become costly crises. members can communicate effectively with one Passing the buck: On his desk, President another and with those outside their immediate Harry Truman had a sign that read: “The buck group, issues are resolved, good decisions are stops here.” In other words, “I am ultimately made and the company succeeds. responsible.” All too often, though, in a culture What can leaders do to create the culture of where people fail to take responsibility for communications and disclosure that encourages decisions, crises can smolder for months or years employees to speak up when they see a problem? before they erupt. Transparent Communication is KEY Mixed messages: The potential for smoldering crises to escalate intensifies when management Most organizations have articulated a mission routinely sends mixed messages to employees. and stated values or principles. When trust and For example, the company mantra may be “quality transparency are part of the culture, interests first,” but when employees are directed to cut of employees are balanced with those of the costs or take shortcuts to meet a short-term organization in a process that demonstrates the financial goal, the mantra is undermined, creating shared value of disclosure. ideal conditions for a crisis to grow. If your organization has not made transparent Groupthink: Coined by Yale’s Irving Janis, the communications one of its core values, I term refers to behaviors where group members’ encourage you to work with leadership to revise desire for unanimity overrides their motivation to them to include this as a clear element. consider alternative courses of action. Groups Communication Training: Ineffective may develop an illusion of invulnerability that communications contribute to more failures in encourages extreme risk-taking behaviors. Group business than any other cause. Every employee, closed-mindedness occurs where warnings or from line staff to CEO, is responsible for effective other information are discounted or ignored. communications. Yet far too few companies offer Groups may apply peer pressure to those who values-based communications skills training to express strong arguments against a course of teach employees how to share information with action, causing individuals to self-censor their peers and supervisors. concerns. Collaborate with HR or the training department Management by committee: Especially to develop communications skills training in medium-to-large companies, this drives for all employees, starting with managers. A individuals to avoid taking decisive action out strong example is set when senior leadership of fear of being blamed for a mistake. Critical participation is mandatory, including the CEO. decisions are not made, resulting in crises. Leaders must walk the talk. Changing a culture takes time and often involves Training should include: (1) understanding a lot of collective pain for leaders and employees. diversity and different communication styles, 9 (2) developing active listening skills, (3) shared to all employees regarding reported concerns understanding through mirroring and feedback, (to the extent possible) and outline the actions (4) workplace interpersonal skills and (5) resolving management is taking to correct them. differences and conflicts. As a follow-up, offer Rituals of Recognition, Positive Feedback: coaching and support to help managers refine Humans learn by example. Positive reinforcement skills and fulfill the goals of two-way symmetrical helps make new behaviors a habit. Consider ways communication. to enhance transparency and build a culture of Employee Hotline: To support a culture of communication by acknowledging those who transparent communications, set up a toll-free raise concerns. Include a regular agenda item telephone “hotline” that anyone—employees, in team meetings to talk about issues. Highlight fam-ily members, customers—can use to report management’s corrective action, which will concerns 24/7. Publicize it vigorously. engender transparency and trust. Engage an experienced third-party vendor to manage the line. Promote it in every medium, A business crisis can be a short-term disruption reminding employees that a neutral third-party or spell the end of a brand. More than two-thirds is taking the call. Adhere to strict confidentiality of organizational crises are preventable. Leaders standards to assure callers can remain have a responsibility to manage issues and anonymous. prevent them from becoming a serious threat. Communicators are vital to this effort. Commit to following up with callers (who provide their names). To build trust, provide regular reports CONTACT: [email protected]

10 6 Ways to Turn Employees Into Ambassadors When a Crisis Hits By Mark Renfree

t’s no secret that a crisis can pop up at any corporate communications with Verizon, urges time and put an organization in a precarious communicators to keep four things in mind when position. The crisis can present itself seemingly assembling crisis teams: out of nowhere—like the diving and water polo 1. Ensure team members represent the reality pools at the Rio Olympics turning mysteriously of how crises need to be managed today, not Igreen, or Delta Airlines’ power failure—and yesterday. dangerously skew the perception of a brand. 2. Pick “connectors” who know how to navigate Sometimes even despite a swift response, a the organizational stakeholder landscape. crisis will settle into a slow burn, like Fox News is currently dealing with as reports of endemic sexual 3. Make sure the team is populated with people harassment continue to appear. who understand and can balance both In the event of a crisis, communicators who have the need for speed AND prioritizing being a competent and well-rehearsed team in place thoughtful in responding to a crisis. are in the best position to lead their brand through Make a team of doers, not just organizational the fire. Torod Neptune, corporate vice president, nameplates.

11 Time-tested PR pros know that it’s not a matter of by communicating consistently and treating if your organization will face a crisis, it’s a matter of them with respect. If you interact regularly with when. Yet even with a expert crisis team in place, the workforce, then you don’t have to scramble the scramble that is the first hours and days of a to put something in place in a crisis. Cascading crisis can cause an organization’s most important information is useful for everyday news, but stakeholders to be forgotten: its employees. communication directly from the C-suite to the While it’s essential to focus on a transparent and frontline is critical in a crisis. progressive external response, communicating clearly and efficiently with employees can create Move quickly powerful brand ambassadors in troubled times. Companies no longer have the luxury of time when In the Book of Crisis Management & Tactics Vol. communicating in a crisis, and employees who 8, Deborah Hileman, president and CEO, Institute don’t get timely information from management for Crisis Management shares these six tips for will turn to social media with their questions, internal communications during a crisis with speculation and concerns. Even a simple readers. statement telling employees that you are aware of an issue and are looking into it is better than Get the latest tips and hear case studies on crisis saying nothing. All employees want to know what communications from organizations like Verizon, the organization is doing to get back to normal Edelman and Environmental Defense Fund at PR and if “normal” has changed. News’ Crisis Management Workshop, taking place on Oct. 19 at the Marriott Marquis in New York Tell employees first and anticipate their City. questions Start with candor as a core value Even a few minutes of advance notice makes If employees are afraid to speak when they see a a big difference on the trust scale. To the problem, leaders can’t identify issues and fix them. extent possible, offer facts rather than general Unfixed issues can become full-blown crises. It reassurances. Humans are hardwired to assume becomes invaluable in the end if you’ve built a the worst and will fill in the blanks in the absence culture where people feel not only empowered but of meaningful facts. Don’t sugarcoat the problem. also driven to speak up. Instead, provide information in a way that helps employees process the issue in a less emotional Nurture a crisis culture way. Anticipate likely questions and provide honest answers as quickly as possible. A crisis culture is one of non-stop readiness for the unexpected, where every employee knows Keep communicating even after the worst of the what he or she is supposed to do in the event crisis has passed of a crisis. A side benefit to building 24/7 crisis Establish a calendar for regular updates and preparedness is that it fosters a sense of readiness advise employees when they can expect to hear for change and the ability to adapt decisively and from you. Return everyday communications calmly. vehicles to their pre-crisis schedule.

Communicate regularly and seek employee feedback Follow Torod:@torodneptune Build a trust bank with employees ahead of time Follow Mark: @MarkRenfree

12 Rapid-Response Tactics for When the News About Your Organization Is Bad and Getting Worse By Seth Arenstein

ne of the pleasures of writing about to weigh on the mind. In sum, trips to the grocery communications and PR is that store seem less pleasant. the field is vast and exposes you The majority of recalls and safety-issue actions to a variety of topics and sources. fail to gain national media attention, of course. Reporting about brands in the food It’s likely the same with recalls and issues in Ospace last year put us in contact with the U.S. most sectors—it’s the major events that receive Dept. of Agriculture and a slew of excellent coverage. On the other hand, communicators are food-safety publications. It was a mixed blessing. unable to relax. What seem to be small or middling When delving into the food space you discover incidents can grow like, er bacteria, thanks to quickly recalls and safety issues occur nearly social media. And then, of course, the huge every day. In fact, the recalls point out that we events, like Chipotle ( PRN, Nov 9, 2015) or the have better technology to oversee food prep and July 19 recall of 350,000 pounds of Bar-S Foods’ packaging than previously. On the other hand, hot dogs and corn dogs are always possible. reading editorials in food-industry pubs about the Moreover, social media scrutiny has prompted lack of government spending for food safety tends regulators and lawmakers to take stronger action.

13 Brands are reeling from the impact. communications, Feld Entertainment, “I’m a firm So when negative news, such as a recall or a believer in rapid response, even if the possible E. coli outbreak, hits the headlines, how communications are not in response to a crisis. By should brand communicators handle it? And rapidly addressing issues you help prevent since most PR News Pro readers are outside the something small from mushrooming and being food sector, let’s broaden the discussion: How more difficult to manage.” should communicators react when negative items On another level the message has to be about their brand make news? We’ll use food as a speedy, too. “If you can’t say it fast, you’ll lose,” jumping-off point. The tactics and strategies we’ll Grabowski says. “Nobody’s reading anything cover apply to most sectors. that’s not short…nobody’s even reading long blog For Gene Grabowski, the posts.” Look at the candidates, Donald Trump veteran communicator and Hillary Clinton, he says. “They’re not talking who’s handling two large to reporters, they’re tweeting out…even regulators food recalls, CRF Frozen are using social.” Foods and Dole Package A veteran of food industry Salads, and a major auto PR, Hinda Mitchell, parts supplier, there are president, Inspire PR Group, several tactics specific to urges brands to have “a Gene Grabowski brands in regulated dark page, or hidden Partner, kGlobal industries, such as food, website page, ready to take but much of what he live to share recall-specific counsels is applicable across the board. information.” Broadening Speed Kills…a Negative Story: A partner at Hinda Mitchell, that to other industries, she kglobal, Grabowski says speed is paramount President, Inspire PR says, “There just simply is on several levels. First, it’s essential for a brand no substitute for to get out in front of negative news, such as a preparation. Any company can and should identify recall. “You can’t wait for the government be the the highest risks, most likely crisis scenarios and first voice to be heard,” he says. With regulated then work a plan to address them.” She adds, sectors a brand often needs to include various “Figuring out how to post in 140 characters is not elements in its first release, Grabowski says, to something you want to be doing while in crisis meet statutory regulations. mode. Craft template responses now.” After that’s been released, a Social Makes Brands Like Politicians: The brand should put out a immediacy and ubiquity of the digital world second release, telling its has forced brand communicators to strategize story and adding context. It as if they were managing a political campaign, used to be a second Grabowski says. “Due to social media, [a release was harmful, not brand] can’t allow a statement [about it] to go anymore, he says. unchallenged…the culture today, particularly Broadening his advice to millennials, often assume the first thing they hear Stephen Payne, communicators generally, is the truth…and if it’s not corrected quickly, it VP, Feld he says, “If you don’t frame certainly is the truth.” Entertainment your story, others will.” Lights, Camera…: After you’ve issued your Adds Stephen Payne, VP, corporate statement, or your second statement in the case

14 of a regulated industry, it’s time to “think about Ideal Transparency vs Foolish Transparency: your video,” Grabowski says. The video should Certainly be “as transparent as possible,” be done and online within the first 72 hours of the Grabowski say. “Rip off the Band-Aid and tell negative news hitting. You have options for the vid. the story…[yet] plenty of companies talk about It can be an apology video or an expert’s retort to transparency and few deliver.” Still, Grabowski the negative news. Perhaps your CEO will appear. cautions, “Don’t be foolish” about transparency, In any case, it needn’t be a polished, smooth set limits. Payne agrees. “In the case of a corporate video. In fact, those are not as credible, he says. Grabowski prefers “a simple, unscripted systematic campaign against [your brand] by video…I like to brief the subjects, but let them outside groups, transparency can be used against work from 4-5 talking points.” Another tip: shoot you. Understand the situation and realize the with two cameras, as it will make editing easier. players before deciding how open to be.”

15 4 People to Include on Your Communication Alert Team By Ian James Wright

hen you’re putting together which is responsible for notifying appropriate preparations for the possibility of a stakeholders in a timely fashion in the event of crisis, internal communications is a crisis. The size of this team will probably scale usually not the first thing to come with the size of your organization, but these four to mind. But it’s an essential part people should be at the core: Wof crisis response preparedness; you must loop in employees, owners, board members, investors and Incident commander the wider community (including the families and • Leads response and recovery effort during a business associates of all the above) if you want to crisis maintain a reputation of integrity and transparency. • Activates emergency alert system or Melinda Merillat, senior delegates to a public information officer director of marketing and public relations at Public information officer the College of Biblical • Is the media spokesperson or designates one. Studies in Houston, Texas, advocates for • Writes communications, protects brand and putting together a assists with image and presentation Melinda Merillat communication alert team, • Coordinates communications timeline

16 • Coordinates and oversees “human touch” Social media coordinator element during an incident • Provides communications support as • Sends pre-approved communications to needed, including social media and website stakeholders and community updates • Provides support for strategic planning team • Implements and manages “human touch” and on-ground incident team element • Activates emergency alert system if incident • Trained in emergency alert service commander is unable operations—activates alert system if incident commander and public information officer IT specialist are unable • Responsible for the communications You may also consider adding someone infrastructure (computer, website and specifically designated as internal liaison, who is the link between major stakeholders and telephone) during emergency operations and the crisis management team. Merillat stresses recovery that all team members should participate in • Oversees all issues related to company scheduled practice alert tests. intranet and other IT systems To learn more about crisis management, see PR • Provides website support as needed News’ Crisis Management Guidebook, available • Updates phone systems with pre-approved, now. pre-recorded crisis message Follow Ian Wright: @ianwright0101

17 A Social Media Checklist for Your Crisis Communications Plan By Steve Goldstein

n times of stress, one’s judgment is impaired, online space, which will allow for concerns no matter how cool the head might seem. This to be addressed. holds true for both individuals and organizations • Listen: Listen to and try to understand what in crisis mode, and the temptation to act out the negative commenter wants. Respond on social media can be too great for some. The directly to the person, when possible. Ibest defense is a smart, succinct crisis plan that Respond publicly and have an open can be shared throughout an organization. conversation or acknowledge the concern In this excerpt from PR News’ Book of Crisis and then take it offline. How an organization Management Strategies & Tactics, Vol. 8, Ann handles a particular situation depends on the Marie van den Hurk, principal of Mind The Gap factors involved. Public Relations, lists six recommendations • Channel: Different social media channels for integrating social media into every crisis scenario your brand or client might face. have unique tones because they target different audiences. Each channel needs to • Criticism: Do not censor criticism on your blog, communicate the same message, but that Facebook account or YouTube channel unless message needs to conform to the style of a it violates your stated community guidelines. particular channel. What works in a media This is a difficult concept for organizations to release, on a website or in a brochure will not get accustomed to in the age of social media. necessarily work on Twitter or Facebook. Removing the offending comments may lead to more, harsher comments. • Update: Websites and social media platforms need to be updated 24/7. • Tone: Social media is not the space for During a crisis, people will be expecting corporate tone. When responding, be current information. They will be expecting personal, polite and professional. Never interaction on social media platforms. respond in a dismissive or impolite manner. It will only add fuel to the fire. This article was adapted from PR News’ Book of • Order: Many organizations are afraid to Crisis Management Strategies & Tactics, Vol. 8, stand up for themselves on social media. which is available in digital and print formats. It’s OK to bring order to the organization’s Follow Steve Goldstein: @SGoldsteinAI

18 8 Time-Tested Crisis Communications Tips You Can Adopt for Your Brand By Joel Newman

ews stories about organ donation a matching organ didn’t become available in and transplantation are, by their time. nature, dramatic and compelling. United Network for Organ Sharing (UNOS) is Through organ donation, the tragedy a part of many stories about transplantation in of a lost life can be put in a different the United States. It’s a non-profit organization Nperspective by the fact that other lives are saved. that serves as the national transplant network Living organ donors make a selfless choice to under contract with the federal government. restore the health of a relative, friend or even a It operates the system that matches donated complete stranger. organs with patients in need. Its computer Adding to this drama is the unfortunate reality database prioritizes candidates for each organ that not everyone who needs a transplant offer and collects medical data on all donors, will receive one. Assuming no sudden, major transplant candidates and transplant recipients. increase in donation rates, only about one in All U.S. transplant hospitals and organ four will receive a transplant in a given year. procurement organizations are members of the On average, 21 people die every day because national network.

19 Some transplant stories are high profile because your crisis team on track: of the name recognition of the people involved. Keep key audiences informed and involved. Mickey Mantle, Walter Payton, Steve Jobs and At the beginning of a potential crisis, list key Dick Cheney are instantly known to untold millions audiences and stakeholders and determine of people. (Of these four, Payton died before he specific actions for each. Revisit your list and could receive a transplant. The other three were action plan as the situation evolves. transplanted.) UNOS often is asked whether celebrities receive priority in the matching system Release as much information as you can. If you because of their fame or influence. They don’t. But don’t, someone else might—and their information situations like these provide an opportunity to talk may be wrong, incomplete or contrary to your about how the system really works. interests. The UNOS Communications Department is Prioritize opportunities that best serve your the first responder for all media issues. Two needs. Identify media outlets most likely to communications professionals routinely split address what you need and want to say. Who best media relations responsibilities with an additional covers the audiences you need to reach? Who backup person. In potential crisis situations, do you believe will report accurately and fairly? UNOS invokes a crisis communications plan and If these outlets have contacted you, follow up involves UNOS executive staff members and quickly. If they haven’t, contact them. Don’t ignore elected officers. other requestors. Transparency and courtesy are vital to building positive relationships. Applying Lessons to a Variety of Crises Have a plan A. A crisis plan developed before an Lessons learned from actual crisis is best. Be specific about how you’ll responses to previous notify and involve key decision-makers as soon as crises have influenced its possible as well as how to access key resources crisis plan. But given the to prepare your response. vast arrayof issues that may Be ready for plan B. No plan can address involve UNOS, it can’t every possible development. While you should anticipate a short list of prepare for likely contingencies, also recognize likely scenarios and the need for creative problem solving when the Joel Newman, develop detailed plans to need arises. You might even designate a “plan B assistant director, address each. The subject thinker” to concentrate on addressing unexpected communications, may be a first-of-its-kind developments. United Network for transplant procedure one Organ Sharing time, a donor-transmitted Don’t assume all the shoes will drop at once. infectious disease the next or a controversial Crises evolve unpredictably. They can change statement by a public figure after that. Each event entirely based on a new development such as an may require a unique set of messages and expert investigation, a lawsuit or an organized protest. advisors/spokespeople to develop and convey While continuing to respond “in the moment,” them. discuss with your decision-makers “what’s next” Even though each situation may vary, a common scenarios and how to address them. set of do’s and don’t’s helps shape UNOS’ Don’t talk only about “what this means to actions. In the heat of the moment, when us.”Your natural focus may be the harm a everyone’s paying attention and there is no Plan A crisis has caused your organization. But others to follow, these time-tested lessons can help keep may be harmed or could be at risk. If your

20 communications overlooks or dismisses what is “beat” reporter likes and trusts you. That can happening to others, you may appear uncaring or change in an instant. Earn your reputation every day, incompetent. Does this situation cause hardship especially in times of crisis. You may not be able to on customers, patients or local residents? What fix past problems or convince everyone immediately are you doing to help them? If you haven’t met that you’ve changed for the better, but you can their needs, how will you do better in the future? position yourself as a caring organization that’s able Don’t rest on past reputation/relationships. The to improve and learn. Set a tone you’ll continue to media may never have done a bad story about follow when the immediate crisis is over. you or may not even notice you. Maybe your usual Follow Joel Newman: @UNOSNews

21 Issues Management Cheat Sheet By Mark Renfree

Mitigating and Responding to Risk Seven Survival Strategies When the CEO Goes Here are some top-line tips for managing tough Rogue issues: Richard Levick, chairman and CEO of Levick and • Be prepared. No matter what your industry, co-author of The Communicators: Leadership in there is a security “pain point” that you the Age of Crisis, stresses that PR pros have to should consider. recognize that the rules have changed when it comes to corporate chieftains thinking they can • When creating a risk mitigation plan, be open say anything as long as it doesn’t offend the core to the input of others outside your company. constituency. Here are some steps to take when • But, ultimately, trust your own company’s the CEO gets the company in hot water: experience, expertise and nuances to create 1. Determine the severity of the sin. There are a a custom plan. thousand “shades of grey,” and every case is • Consider the entire company when different. But, the first question the company developing a plan (not just managers or must ask itself, Levick says, is: “Can the executives). CEO regain the trust of our consumers and • Build an escalation plan into the stakeholders?” infrastructure. 2. Determine the Investor Relations (IR) • Stick to the plan. Stay disciplined about what response. Private companies usually have your messages are and who is responsible fewer audiences so there is more latitude. for delivering them. Public companies have an audience of shareholders to cater to, and their concerns • Choose a point person for media inquiries. need to be gauged and addressed by the • Consider what your communications are board. within the company walls—and keep them 3. Determine whether the CEO’s brand can consistent with external messaging. be distanced from that of the company. If • If you are working with a law enforcement the two can be reasonably separated, they agency, make sure to establish—clearly and should be via statements that the sin does early on—what their expectations are of your not reflect the company’s values. If they company. can’t, a much more aggressive response is • When working with multiple law enforcement necessary. agencies, reduce confusion or misinformation 4. Determine how the sin relates to the by keeping the points of contact to a company’s brand. The same sin can be minimum. judged differently among different audiences, • Be conscientious about capitalizing on a says Levick. “If Chick-fil-A’s most important “sensational” event. It may do more damage markets weren’t in the Bible Belt, we would than good in the long run. have seen a far more aggressive response.”

22 5. Determine how the sin’s timing affects its 4. Who are we talking to? impact. Timing is everything—and sometimes 5. How do they prefer to see the message? timing demands a more aggressive response than would normally be called for. 6. How quickly can the message be disseminated? 6. Determine the cost/benefit of sticking with an embattled CEO. Sometimes, a CEO is so Prepare for Problems Before You Have Them visionary and essential to success that the Although it can be difficult to make the case to company can afford to take the temporary budget-conscious CEOs, spending dollars up reputation hit that comes with standing by front on communications planning and training him or her, according to Levick. will save money in the long term and help avoid 7. Determine how much goodwill resides in a devastating reputational hit. Here are five the CEO’s trust bank. Has the CEO built up guidelines to get you started: enough credibility and trust to be given the 1. Find an attorney before you need one. bene t of the doubt for one misstep? 2. Update your crisis communications plan to A Communications Infrastructure Is Designed include protocols for reporting a data breach. to Handle Questions Such As: 3. Draft away. 1. What’s the issue? 4. Train and practice, practice and train. 2. What needs to be said? 5. Build a social media presence before a 3. What needs to be done? breach.