Successful Communications Strategies for Reputation Management

ASHTON TWEED Successful Communications Strategies for Reputation Management

Recently, Business Week highlighted a story on The Corporation reputation of Target it would boost market value by $9.7 billion. with the headline “What Price Reputation? Many savvy Life Sciences companies face unique challenges in managing companies are starting to realize that a good name can be their their reputations. The products marketed by these companies most important asset– and actually boost the stock price.” The have a profound effect upon the health and well-being of patients article reiterates that “more and more (companies) are finding around the globe. The risk/benefit ratios associated with these that the way in which the outside world expects a company to products result in Life Sciences companies being held to a behave and perform can be its most important asset. Indeed, a higher standard. company’s reputation for being able to deliver growth, attract Building, maintaining and protecting reputation is driven top talent, and avoid ethical mishaps can account for much of the by effective communications strategies. This paper will discuss 30%–to–70% gap between the book value of most companies key considerations in building a comprehensive communications and their market capitalizations.” Furthermore, by evaluating the strategy to help manage the public perception of a Life value of perception, the article concludes that if Wal-Mart had the Sciences company. 2 Successful Communications Strategies for Reputation Management www.ashtontweed.com

An Effective Furthermore, reaching out to key opinion Elements of the leaders should be an integral part of the Communications communications strategy. Communications Strategy to Build, There are a few key questions for Strategy for consideration to ensure the building of an Maintain and Protect effective communications strategy. These Reputation questions as well as guidance on how to Reputation address them will be presented throughout Management this paper. Life Sciences companies evolve through The elements of a communica- different levels of maturity and/or product Have you developed a tions strategy can be simple or life cycles over time. Depending upon the Q communications strategy extremely complex. It depends stage of development or product life cycle, around your key milestones? upon the focus and resources one or more of the fundamental building of the company. Nevertheless, blocks of an effective communications the elements of a communica- A company with a product in phase III with strategy should be emphasized. These tions strategy for a Life Sciences the intent to commercialize may include building blocks include: company should include some physician and consumer communications to combination of the following: • Message Development prepare the market for introduction of the product. Defining the company image for • Financial Communications selected stakeholders is also a key consid- • Product and Corporate Positioning eration at this stage of development. • Media Relations (Traditional • Issues Management and “New Media”) Have you developed • Financial, Clinical and Human Q key messages, identified • Clinical and Medical Resource Milestones audiences and detailed a Communications media strategy? For example, a privately held company • Publications and Medical with a product in early stage development Companies who already have marketed Meetings will require significant communications products often encounter significant issues regarding milestones– clinical trial results, based upon any number of vagaries– • Patient Advocacy financing and significant hires. The target adverse events, label changes, FDA Communications audiences (investors, partners, potential inquiries, patient and physician complaints, employees, etc.) may vary depending etc. These companies require an emphasis • Policy and Government upon the intent to commercialize or to on issues management, message Affairs seek partners for commercialization. development and media preparation. • Internal Communications

• Community Affairs

• Pro-Active Marketing Communications/Initiatives

These strategy elements appeal to and are focused on multiple, diverse audiences who require communications tailored to their roles and needs. www.ashtontweed.com Successful Communications Strategies for Reputation Management 3

Have you developed a Q core messaging strategy with variations for selected audiences?

While messaging may differ by audience there should be a core message that is reflected in all communications to physicians, employees, policy makers, patients, etc. To comprehensively address messaging and successfully reach multiple audiences, consider:

• What Do You Want to Say?

• To Whom Do You Want to Say It?

• What will Resonate with the Audience?

• When Do You Want to Say It?

• How Often to Repeat the Message?

• When to Expect a Response? So What? Who Cares? For example, in • Business Data Selectively Provided order to effectively engage the Wall Street While these questions oversimplify Journal (print or online) you need to have • Select News Media (and the “new the process they nevertheless content covering new science (clinically media”) Invited Inside the Company provide a construct for preparing a interesting data) and significant unmet communications strategy that builds medical needs. While the key is good • Experts Made Available to the Media upon product and/or corporate science, the story can also revolve around messages, which will be addressed in the business (for example, large financial Many senior executives and accom- the next section. relationships or partnerships.) In trade plished scientists face the media without magazines, for example PharmaVoice, the preparation or with inadequate prepara- most important element is putting a face tion, and the results can be disastrous. Winning Messages to the company. A devoted and passion- Preparing for media interviews is essen- and Media Tactics ate leader will always be a source for tial for all senior executives and includes trade magazines. a firm understanding of the media and the for Reputation techniques for bridging to key messages Management Media Tactics during interviews. Winning messages are not only Do your messages Have you developed a targeted at the media. A corporate Q answer the questions– Q tactical media relations plan and product communications strategy What’s new? So what? must relate to the advertising, sales to successfully articulate your and branding strategies so that there is Who cares? messages to the media? consistent messaging throughout the company. In fact, all of these elements The backbone of a communications Winning media tactics require will define reputation and therefore strategy is messaging. In order to be the following: reputation management is a reflection of successfully quoted in a story com- an integrated communications strategy panies need to prepare messages that • Senior Management Interviews across many functional areas within answer three questions: What’s New? the organization. • Research Aggressively Leveraged 4 Successful Communications Strategies for Reputation Management www.ashtontweed.com

Reputation Are you prepared to react to It is important to evaluate new marketing Q the “new media”? communications campaigns based upon the Management and following criteria: The implications for Life Sciences com- the “New Media” panies resulting from the “new media” • Well Defined Audience are profound. Before a story breaks in The “new media” present even the Wall Street Journal it may have been • Measurable Objective greater challenges for reputation disseminated around the world and have management. Who are the “new already garnered questions and com- • Research Driven media”? ments from a variety of outside sources Blogs allow users to publish to the company. • Meaningful/Inspiring their own content– there are now Companies need to understand more than 57 million worldwide. and prepare for the power of the “new • Staying Power Healthcare ranks in the top five media” by recognizing that the con- most active content areas. trolled communications process of the • Science/Medical Connection past (advertising etc.) has given way to an uncontrolled process that can affect Social networks MySpace • Clear Metrics and Facebook, which leverage reputation in a positive or negative way in the blink of an eye. Life Sciences personal connections for support • Emotional Connection and community. For example, companies need to embrace the “new GroupLoop is a social network for media” and be prepared to respond to Regarding specific product oriented “cam- teen cancer patients and survivors positive as well as negative news as it paigns”, best practices dictate that the most created by the Wellness Community “breaks.” successful marketing communications with corporate sponsorship from “campaigns” include the following: Amgen. Criteria for a • Product Positioned As New Standard RSS (Really Simple Successful Marketing Syndication) data format that Communications • Wall Street Forecasts Leveraged allows users to pull content from a variety of Web sources and Strategy for Reputation • Peer Reviewed Research Heralded aggregate it for easy comparison. Management Thousands of health-related RSS • Emotional Connections to Patients feeds exist today. In mature companies, often a marketing Highlighted Podcasts or product communications strategy is rich-media audio described internally as a “campaign”. • Special Events Created to Maintain content that users can download to These campaigns can take many forms Momentum their computers or portable media including disease and/or therapeutic devices for listening or viewing. area education. As campaigns are The broader questions in evaluating mar- Health is one of the more popular tangible, discrete, and most often keting “campaigns” are the impact on the podcast topics, with more than externally focused, their implementation reputation of the company. This is especial- 100 health and wellness choices has a direct effect on reputation. A ly significant now since the marketing prac- including ABC Medical Minute. well planned and executed marketing tices of many pharmaceutical companies are campaign can enhance the perception of under intense scrutiny by the media, policy (Source– Pharmaceutical Executive, September 2007) a company and its products. makers, physicians and patients. www.ashtontweed.com Successful Communications Strategies for Reputation Management 5

Issues Management Matrix Have you developed an Q issues management matrix and included issues, risks and potential crises?

One method communications professionals can use to effectively track and plan for the issues facing their company is the creation of an Issues Manage- ment Matrix. The Issues Management Matrix lists all the issues, risks and potential crises that can affect a Life Sciences company. The Matrix guides the company by monitoring therapeutic areas of interest to the company and industry and corporate trends. When an issue arises, it then triggers an alert mechanism to galvanize the company to institute a variety of communications strategies to preserve and/or enhance its reputation. The first step in prepar- statement”, question and answer (Q ing an Issues Management Matrix is Issues Management and A) document and identification of understanding and categorizing issues. and Communications a potential spokesperson. Risks can include adverse event reporting, clinical The Three C’s Issues management is a major focus for trial results, and potential threats to a manufacturing facility. For smaller senior management and communica- In a crisis, three essential factors companies with no products in the tions professionals in Life Sciences determine the potential outcome, the marketplace it can include burn rate and companies. Often, a company’s reputa- company’s competence, the com- financing. tion hinges on how it addresses issues, pany’s compassion and the company’s A crisis is a real threat of which risks and crises. This is because most cooperation. The three C’s should be there is widespread knowledge both life science companies market products the guiding principles when responding internally and externally. The company that have a significant risk/benefit ratio to the media and other constituents in should respond in an urgent manner that may affect patients. The first step in a crisis. issues management is to understand the because the consequences include lost difference among an issue, a risk and a trust and confidence in the company or Competence Action steps to mitigate crisis. brand, widespread negative publicity the crisis– or– referring to a plan and a Issues are potential threats to a and/or lost business– thus, a significant trained team. company/brand. The communications effect on reputation. The communica- strategy is passive and proper manage- tions strategies include all those listed Cooperation Demonstrated by ment can prevent escalation to a risk or above (“standby statement”, Q and A) willingness to assist the authorities in crisis. Normally a “standby statement” is plus extensive preparation of the com- charge of abating and investigating the developed for issues that can be used in pany spokesperson and briefing potential crisis. The company needs to provide the event the media or other constituents allies. Ultimately, the company may de- reasonable access to and openness with (physicians, policy makers, investors, cide to “shape” the story, which requires the media. etc.) inquire into the issue. an aggressive media strategy. Included within the category of Risks are perceived threats to a Compassion Conveyed by the crisis are unforeseeable catastrophes, company/brand with the knowledge persuasive expression of values in plant explosions, etc. In such cases, of the risk shared both internally and addressing the situation and by the companies on the cutting edge are externally, as compared to issues whose genuineness and emotional depth of the developing “business continuity” plans knowledge is usually limited to the company’s reaction to the crisis. company’s management. A company in advance of catastrophes so that roles should not treat risks lightly. Therefore, and relationships for all the internal and the communications preparation external constituents are developed well includes the development of a “standby in advance of unforeseen crises. 6 Successful Communications Strategies for Reputation Management www.ashtontweed.com

Responding to the Media in a Crisis

In order to effectively communicate with the media in a crisis there are baseline data that need to be collected in advance of a crisis. By preparing these materials in advance, senior management can focus on communications strategies and key constituents rather than tactical elements during the crisis. Using the example of a company that has experienced a plant explosion, that company should have the following baseline data readily available:

• Photos/videos of the Facility, Senior Management and the Product(s)

• Phone “Trees” for Management and Key Internal Functions

• Where to Go if the Facility/Office is Damaged Furthermore, companies should not crisis to ensure all key personnel are predict when the situation will be aware of what they need to do. • How to Communicate– Computer, brought under control unless they are Real time preparation allows Blackberry, Phone 100% sure they know. the management team to assess the many unforeseen circumstances that • A Designated Spokesperson for Have you practiced may arise in a crisis. Furthermore, in the Company Q the internal response companies with a variety of locations to a crisis? or international partners, the potential These essentials and many more take on consequences escalate along with the added significance if a company has offices A crisis will always affect the reputa- potential complexities of managing in several locations, if the company has a for- tion of the company. A crisis has the the situation effectively. Therefore, eign parent, and if it has to balance roles and potential to affect patients and con- preparation is fundamental to assuring relationships with partners and/or suppliers. sumers and harm the reputation or the the proper management of the crisis. ability of a company to conduct busi- Effective communications can ness. The extent of the impact of the help prevent miscommunications and Control Statement crisis on the company will be driven minimize the detrimental effects of a by the effectiveness of messages. In crisis. Furthermore, once the crisis is The first comment to the media and to a crisis, credible messages will ad- over, communications can help move other constituents after a crisis is called the dress: “What happened,” “What the the company forward by capitalizing “control statement.” The “control statement” company is doing about it” and “Why on the relationships built during the should reflect the three C’s as principles it won’t happen again.” crisis, and follow-up actions can lead guiding the statement. The following check- In a crisis, all communications to enhanced reputation. list should guide additional behavior by the to internal and external constituents Finally, it is essential that every company. should be centrally driven. While Life Sciences company embrace • Get the Phones under Control this principle may not “win friends the two principles regarding issues and influence people,” it is vital management. They are: • Prepare the Disclosure Plan to successful messaging and communications during a crisis Prepare an Issues and therefore effective reputation Management Matrix that • Embrace the One-Voice, Full-Disclosure 1 management during a crisis. To help Principle includes Issues, Risks, Crises your crisis communications run smoothly, it is imperative to be clear Practice–Practice– • Disseminate the “Control Statement” to about roles beforehand and useful to Practice– Internal Roles All Internal and External Constituents 2 practice your internal response to a and Responsibilities www.ashtontweed.com Successful Communications Strategies for Reputation Management 7

Conclusion Next Steps Bank are highly experienced, entrepre- neurial senior and executive level talent Life Sciences companies can- We hope that this paper has given you (Director level through C suite) with the not underestimate the tangible some points to consider as you build, grow, skills required to fill roles from discovery value of their reputation. To help enhance and protect your organization’s through commercialization. Executive manage the public perception of reputation. We would love to chat with Talent Bank members serve as interim a Life Sciences company, the de- you as you develop your communications executives who are immediately avail- velopment of effective communi- strategy. The paper’s author, Ron Schmid is able to address clients’ urgent business cation strategy is vital. Preparing available for telephone consultation. Please needs within a clearly defined time frame. to react to the demands of new call us at 610-725-0290 x 446 or e-mail By working with interim executives, media, creating winning mes- [email protected] with any ques- companies get the best sensibly over- sages tailored for all constituents tions or to schedule time to speak with Ron. qualified candidates in their area of need and developing comprehensive and someone with a fresh perspective on issues management strategies the organization with precisely the skills are key to building, maintaining About the Ashton Tweed needed for a project or corporate transi- and protecting reputation for Life tion. To learn more about how our interim Sciences companies. Reputation Life Sciences White executives could assist your company, management is complex, but Paper Series please visit www.ashtontweed.com or call effective communications can 610-725-0290 x 446. develop, grow, enhance or protect Successful Communications Strategies for The first two papers in our series, the reputation of a Life Sciences Reputation Management is the third in a Roadmap to Reimbursement: A How-to- company which in turn bolsters series of white papers on current life sci- Guide on Securing Reimbursement and the company’s bottom line. ences topics authored by members of Ashton How to Prevent Further Delays in the Tweed’s Executive Talent Bank. Profession- FDA Approval Process are also available als in the Ashton Tweed Executive Talent on our website at www.ashtontweed.com. 8 Successful Communications Strategies for Reputation Management www.ashtontweed.com

About the Author Ron Schmid

Ron Schmid is a senior executive with more than 30 years experience in healthcare communications, issues management and public policy. His work in the biotech/pharmaceutical industry includes positioning companies and products, executing branding initiatives, counseling senior management on solving high visibility issues, and serving as media spokesperson. Prior to found- ing his own consultancy, Ron helped Johnson & Johnson operating company Centocor Inc. grow the blockbuster biologic Remicade from $400m to over $2.5b, initiated a major public policy communications campaign regarding follow– on biologics, and participated in high profile issues management during a plant explosion. Ron’s corporate experience also includes issues management and media relations at McNeil Consumer Healthcare, and corporate communications for Novartis and Lederle Labs (a division of Wyeth). Earlier in his career, Ron served as a Washington lobbyist for the Pharmaceutical Research and Manufacturers of America, worked in the New York State Legislature, and managed a nine state demonstration project on health policy development for the Robert Wood Johnson Foundation. Ron has a B.A. from Fordham University in New York and an M.P.A. from New York University. He is the recipient of two Silver Anvil Awards from the Public Relations Society of America.

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