Your reputation means everything. A positive one can drive your business, bringing new customers and positive press. Get a bad rap though, even an unwarranted one, and you may soon find yourself in full crisis management mode, struggling to take back control.
The average user who searches your company name will only view the top ten results, absorbing the top few as snippets, and usually clicking on only one of the top three. This means that in order to perform proper reputation management, you absolutely must have a serious web presence. Outspoken Media's "Online Reputation Guide" is a primer on creating, managing, and maintaining your rep online.
The results of a negative online reputation may be as subtle as a user clicking on a competitor’s search result instead of yours or as damaging as an industry-wide boycott of your products and/or services. Besides the obvious financial implications of having a company’s credibility called into question, there are potential legal ramifications that could dominate your time and cripple your financial sustainability, as well. This will often cement trusted news and legal results in the top search rankings so that even if a case is dismissed or resolved, you’ll be living with the consequences for years to come. Things like, determining who is responsible for the negative reputation, if you’ll have to reposition or remove certain employees or dealing with potential losses in workforce, add further monetary, morale and growth consequences.
The Internet is unforgiving, and has a looooong memory. If you don't take over those top spots with what you want people to see regarding your company, others will fill the void - and they aren't always friendly.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Saturday, May 30, 2009
Friday, May 29, 2009
OOPS!
Social media startup iMindi, a new type of blog service built to act as a "Thought Engine," faltered in its first steps into the public eye Monday, accidentally deleting 1,000 accounts belonging to beta users of the site. TechCrunch.com explains:
On Monday we wrote about iMindi, a new startup that first showed its stuff at TechCrunch50 in 2008. In the post on Monday we gave out 1,000 private beta invites, which were apparently snatched up quickly.
Then, disaster. The email iMindi sent out, which contains the dreaded phrase “we accidentally deleted all the user accounts” sort of says it all.
Luckily for iMindi their CEO, Adam Lindemann, is no slouch when it comes to crisis management. He quickly composed an email that went out to all former account holders expressing his embarrassment and accepting full responsibility. He also went on to explain the extensive measures iMindi has taken to ensure that such an incident never occurs again. A quick Google search will show you this incident is garnering far more good press than bad. Any business can suffer a crisis which thrusts them in to the public eye; the true test is whether they let it put them under, or use the opportunity to create positive buzz. I'd say iMindi's passed this one with flying colors.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
On Monday we wrote about iMindi, a new startup that first showed its stuff at TechCrunch50 in 2008. In the post on Monday we gave out 1,000 private beta invites, which were apparently snatched up quickly.
Then, disaster. The email iMindi sent out, which contains the dreaded phrase “we accidentally deleted all the user accounts” sort of says it all.
Luckily for iMindi their CEO, Adam Lindemann, is no slouch when it comes to crisis management. He quickly composed an email that went out to all former account holders expressing his embarrassment and accepting full responsibility. He also went on to explain the extensive measures iMindi has taken to ensure that such an incident never occurs again. A quick Google search will show you this incident is garnering far more good press than bad. Any business can suffer a crisis which thrusts them in to the public eye; the true test is whether they let it put them under, or use the opportunity to create positive buzz. I'd say iMindi's passed this one with flying colors.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Wednesday, May 27, 2009
Korean Crisis
As far as crisis management jobs go, the task of coming up with crisis response plans to counter a nuclear strike is about as intense as it gets. This is exactly what a new team formed by the South Korean government has been assigned to do in reaction to yet another nuclear test by the Democratic People's Republic of Korea (North Korea).
In addition to actively formulating plans, the South Korean military has opened up communications between its branches, reaching levels of information sharing never before seen in that region. You can find more info about this developing crisis and news from all over the region at the Chinaview.cn website.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
In addition to actively formulating plans, the South Korean military has opened up communications between its branches, reaching levels of information sharing never before seen in that region. You can find more info about this developing crisis and news from all over the region at the Chinaview.cn website.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Monday, May 25, 2009
Wolf in Sheep's Clothing
The advent of mainstream social media means that the things posted online by some anonymous users are now being given, at least by the average reader, the same weight they might give to a story by an accredited reporter. While this creates the opportunity for a wide variety of viewpoints and opinions from amateur reporters worldwide, it also opens the door for the morally challenged.
The Golden State Warriors basketball team has not been faring well recently, and fans have not been shy about sharing their opinions. On the popular site WarriorsWorld.net, commentary has been overwhelmingly negative. A CNet article describes a failed ploy to counteract that:
One shining beacon of light was offered by "Flunkster Dude." Commenting on a season-ticket holder conference call hosted by General Manager Larry Riley, President Robert Rowell and TV play-by-play man Bob Fitzgerald, he wrote: "I actually enjoyed the call and appreciate their honesty."
Which not so many other commenters did. Even fewer do now, as the WarriorsWorld.net chaps traced the IP back to a certain office. You're there already, aren't you? Yes, to the office of the Golden State Warriors.
Flunkster Dude is, in fact, Flackster Dude. Real name, Raymond Ridder, PR man for the Golden State Warriors.
Ridder has already started the crisis management routine, taking full responsibility and admitting to multiple other postings on the site, all promoting Warriors management. I'm sure this issue will pass, but his attempt to cheat at reputation management has shamed an already struggling organization. The Internet is a powerful source of information, but remember to take those faceless voices with a grain of salt.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
The Golden State Warriors basketball team has not been faring well recently, and fans have not been shy about sharing their opinions. On the popular site WarriorsWorld.net, commentary has been overwhelmingly negative. A CNet article describes a failed ploy to counteract that:
One shining beacon of light was offered by "Flunkster Dude." Commenting on a season-ticket holder conference call hosted by General Manager Larry Riley, President Robert Rowell and TV play-by-play man Bob Fitzgerald, he wrote: "I actually enjoyed the call and appreciate their honesty."
Which not so many other commenters did. Even fewer do now, as the WarriorsWorld.net chaps traced the IP back to a certain office. You're there already, aren't you? Yes, to the office of the Golden State Warriors.
Flunkster Dude is, in fact, Flackster Dude. Real name, Raymond Ridder, PR man for the Golden State Warriors.
Ridder has already started the crisis management routine, taking full responsibility and admitting to multiple other postings on the site, all promoting Warriors management. I'm sure this issue will pass, but his attempt to cheat at reputation management has shamed an already struggling organization. The Internet is a powerful source of information, but remember to take those faceless voices with a grain of salt.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Sunday, May 24, 2009
Muzzled Bloggers
"Bloggers are increasingly getting sued or threatened with legal action for everything from defamation to invasion of privacy to copyright infringement. In 2007 -- the most recent data available -- 106 civil lawsuits against bloggers and others in social networks and online forums were tallied by the Citizen Media Law Project"
A recent article from The Wall Street Journal Online features the personal accounts of several bloggers who are facing serious legal problems. From one who didn't even post on their own, but several others' websites, to another who referenced AP articles for years before suddenly being slapped with a cease and desist notice for quoting. If you don't want to find yourself in need of some quick crisis management, you'd do well to check the legalities before you post that scathing review or opinionated article.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
A recent article from The Wall Street Journal Online features the personal accounts of several bloggers who are facing serious legal problems. From one who didn't even post on their own, but several others' websites, to another who referenced AP articles for years before suddenly being slapped with a cease and desist notice for quoting. If you don't want to find yourself in need of some quick crisis management, you'd do well to check the legalities before you post that scathing review or opinionated article.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Friday, May 22, 2009
A Healthy Dose of Fear
If you're even remotely involved in crisis management, then a couple weeks ago your desk was flooded with H1N1 flu warnings and preparations. The aim of many communicators was to prevent panic, and they were quite effective. Judith Analco of consulting firm EnviroKey says that may be a problem.
In our crisis-weary state, not many public figures are willing to subject themselves to possible criticism for fear mongering. It's tempting to want to hedge our bets. But the price of getting it wrong here - i.e., by underpreparing - is considerably higher than that of overpreparing, though admittedly, the latter could result in significant costs and wasted effort.
Analco strongly urges active crisis prevention to lower the impact of potential threats. Her post has several suggestions for ways in which leaders, both public and business, can define the issues more clearly to their constituents, while still maintaining calm.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
In our crisis-weary state, not many public figures are willing to subject themselves to possible criticism for fear mongering. It's tempting to want to hedge our bets. But the price of getting it wrong here - i.e., by underpreparing - is considerably higher than that of overpreparing, though admittedly, the latter could result in significant costs and wasted effort.
Analco strongly urges active crisis prevention to lower the impact of potential threats. Her post has several suggestions for ways in which leaders, both public and business, can define the issues more clearly to their constituents, while still maintaining calm.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Thursday, May 21, 2009
Reputation Remorse
We've seen many public figures in dire need of reputation management, from Hollywood starlets to Wall Street Bankers and sports superstars. The fastest way to get past these problems is to first accept responsibility and apologize, then demonstrate to the public that you have changed your ways. Of course, they have had varying degrees of success.
An excellent case study will be the way in which Michael Vick, exiting federal prison after serving 19 months on a dogfighting conviction, approaches these crucial steps. A recent NPR article provided some professional opinions:
For the former Atlanta Falcons quarterback, the most important thing is to show "genuine remorse" for his crimes, says Marc Ippolito of Burns Entertainment.
"He can't overdo it, and it can't seem rehearsed," says Glenn Selig, who specializes in crisis management public relations at The Publicity Agency. Selig, whose high-profile clients include the disgraced former governor of Illinois, Rod Blagojevich, warns that "people will be parsing his every word and wonder if he is just doing what he has to do to get back in the game."
Crisis management rules tend to apply to individuals in much the same way they do businesses - openness and a genuine desire to change will go a long way to put you back in society's good graces. Make a halfhearted effort, though, and people will take their time and money elsewhere.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
An excellent case study will be the way in which Michael Vick, exiting federal prison after serving 19 months on a dogfighting conviction, approaches these crucial steps. A recent NPR article provided some professional opinions:
For the former Atlanta Falcons quarterback, the most important thing is to show "genuine remorse" for his crimes, says Marc Ippolito of Burns Entertainment.
"He can't overdo it, and it can't seem rehearsed," says Glenn Selig, who specializes in crisis management public relations at The Publicity Agency. Selig, whose high-profile clients include the disgraced former governor of Illinois, Rod Blagojevich, warns that "people will be parsing his every word and wonder if he is just doing what he has to do to get back in the game."
Crisis management rules tend to apply to individuals in much the same way they do businesses - openness and a genuine desire to change will go a long way to put you back in society's good graces. Make a halfhearted effort, though, and people will take their time and money elsewhere.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Wednesday, May 20, 2009
Put Down the Shovel
Yesterday we talked about one of the crucial ingredients to successful reputation management, transparency. Today I'd like to take a look at another important aspect - customer service. This time, though, our story is an example of what not to do from Boston-based computer-repair service Geek Choice (no affiliation with Best Buy's Geek Squad). Consumer columnist Greg Dawson of the Orlando Sentinel writes:
Geek Choice sent a technician named Spencer to the home of Barbara Nixon in Winter Springs to do a repair. He stole her computer. Police found that he had no drivers license and had spent time in jail. James Bruce, Geek Choice general manager, admitted to me — in writing — that the company hired the man without doing a background check.
The logical response to the issue would have been to replace the computer, no questions asked. For some reason, Geek Choice decided to go against the grain and dodge shelling out any cash. James Bruce, Geek Choice GM, offered this shabby explanation:
"This was not a representation of Geek Choice and how we operate. With no evidence of the cost of what was stolen, I cannot simply authorize purchase of a new computer for this customer. I can only offer discounted future service."
This bungled attempt at damage control enraged consumers across the country, who flooded the Orlando Sentinel web forums with brutal responses.
You would think Geek Choice would have learned their lesson, but they insisted on digging an even deeper hole. They recently filed suit in Boston Municipal Court against Jacquelyn Lynn, a business writer and author who did not write the original story, nor publish it, but simply posted the column on her blog.
No admittance of obvious guilt and a publicly botched reply, followed up by a hush-up lawsuit with absolutely no foundation; this story is enough leave anyone with crisis management experience cringing.
Ummm...you think Geek Choice might sue ME now? Gosh, I can't wait to Tweet about it.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Geek Choice sent a technician named Spencer to the home of Barbara Nixon in Winter Springs to do a repair. He stole her computer. Police found that he had no drivers license and had spent time in jail. James Bruce, Geek Choice general manager, admitted to me — in writing — that the company hired the man without doing a background check.
The logical response to the issue would have been to replace the computer, no questions asked. For some reason, Geek Choice decided to go against the grain and dodge shelling out any cash. James Bruce, Geek Choice GM, offered this shabby explanation:
"This was not a representation of Geek Choice and how we operate. With no evidence of the cost of what was stolen, I cannot simply authorize purchase of a new computer for this customer. I can only offer discounted future service."
This bungled attempt at damage control enraged consumers across the country, who flooded the Orlando Sentinel web forums with brutal responses.
You would think Geek Choice would have learned their lesson, but they insisted on digging an even deeper hole. They recently filed suit in Boston Municipal Court against Jacquelyn Lynn, a business writer and author who did not write the original story, nor publish it, but simply posted the column on her blog.
No admittance of obvious guilt and a publicly botched reply, followed up by a hush-up lawsuit with absolutely no foundation; this story is enough leave anyone with crisis management experience cringing.
Ummm...you think Geek Choice might sue ME now? Gosh, I can't wait to Tweet about it.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Tuesday, May 19, 2009
GooglePR
There have been some spectacular crisis management disasters in the online tech world recently (#amazonfail anyone?), but how about a success story? This one comes from the usually tight-lipped 500 pound gorilla of the web, Google!
When many of Google's sites went down Thursday, there was an immediate backlash across the net. Frustrated emails went out and an unsavory Twitter tag, #googlefail, was born. Although the problem was resolved in under two hours, the recent trend has had these sorts of issues reverberating throughout the web for days at the least. Using a simple, solid, crisis response plan involving clear communication with the public, Google pacified the usually rowdy Internet crowd within hours. A review of the situation by PCWorld provides a timeline of Google's responses:
"We're aware some users are having trouble accessing some Google services. We're looking into it, and we'll update everyone soon." Nothing earth-shattering, but an slightly cracked-open door of communication from a company that usually keeps 57 padlocks on its virtual entryway.
An hour later, another statement came in: "The issue affecting some Google services has been resolved. We're sorry for the inconvenience, and we'll share more details soon." Still no full explanation -- but, in a surprising move, a sign of ongoing communiqué and a promise of information.
Here's where the good part comes in: Google actually kept the promise. With a couple of hours, representatives offered a full explanation of what happened. And an apology. And an assurance that steps were being taken to prevent a meltdown like that from ever happening again.
Transparency is absolutely vital to reputation management. By giving their users whatever information was available, Google avoided the anger and disillusionment that come with being ignored or spoken down to, and in turn stayed in their good graces. It will be interesting to see if other major Internet players take this lesson to heart...if not, at least I'll have a lot to write about!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
When many of Google's sites went down Thursday, there was an immediate backlash across the net. Frustrated emails went out and an unsavory Twitter tag, #googlefail, was born. Although the problem was resolved in under two hours, the recent trend has had these sorts of issues reverberating throughout the web for days at the least. Using a simple, solid, crisis response plan involving clear communication with the public, Google pacified the usually rowdy Internet crowd within hours. A review of the situation by PCWorld provides a timeline of Google's responses:
"We're aware some users are having trouble accessing some Google services. We're looking into it, and we'll update everyone soon." Nothing earth-shattering, but an slightly cracked-open door of communication from a company that usually keeps 57 padlocks on its virtual entryway.
An hour later, another statement came in: "The issue affecting some Google services has been resolved. We're sorry for the inconvenience, and we'll share more details soon." Still no full explanation -- but, in a surprising move, a sign of ongoing communiqué and a promise of information.
Here's where the good part comes in: Google actually kept the promise. With a couple of hours, representatives offered a full explanation of what happened. And an apology. And an assurance that steps were being taken to prevent a meltdown like that from ever happening again.
Transparency is absolutely vital to reputation management. By giving their users whatever information was available, Google avoided the anger and disillusionment that come with being ignored or spoken down to, and in turn stayed in their good graces. It will be interesting to see if other major Internet players take this lesson to heart...if not, at least I'll have a lot to write about!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Saturday, May 16, 2009
Dealing with Delay
"We may have to delay the Marathon at least three hours."
Few words can put a chill down a Marathon staff's spine quite like "delay." For runners and walkers who have their pre-event routine timed to the minute; any kind of a disruption is upsetting at the least, and devastating at the worst. But that was what the Cincinnati Flying Pig Marathon faced the morning of Sunday, May 4.
If you were in charge of the event crew's crisis management team, would you have been ready? In an article from the latest Crisis Manager newsletter, sports PR pro Betsy Ross gives a revealing look at her firm's successful navigation of this ordeal. From the early crisis prevention planning, to their reputation management efforts with the media and plentiful use of Twitter, see it all from the driver's seat!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Few words can put a chill down a Marathon staff's spine quite like "delay." For runners and walkers who have their pre-event routine timed to the minute; any kind of a disruption is upsetting at the least, and devastating at the worst. But that was what the Cincinnati Flying Pig Marathon faced the morning of Sunday, May 4.
If you were in charge of the event crew's crisis management team, would you have been ready? In an article from the latest Crisis Manager newsletter, sports PR pro Betsy Ross gives a revealing look at her firm's successful navigation of this ordeal. From the early crisis prevention planning, to their reputation management efforts with the media and plentiful use of Twitter, see it all from the driver's seat!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Friday, May 15, 2009
Total Recall
Every manufacturer and reseller should be ready to launch into crisis response mode in case of an unexpected product recall. As I said in this story:
“Too many CEO’s play ostrich about the possibility of a recall. They wait until the recall is required and then try to figure out what to do, resulting in additional risk for consumers and the company’s reputation.”
I know, I know, it's more Crisis Management 101, but you would be astounded at the number of businesses who do not heed this advice. Luckily for them, the nice people at Reliable Plant magazine have published an article featuring steps firms can take to recover from a product recall.
“Recalls undermine trust in a specific brand and it can take the company a long time to recover from the damage to its reputation, but it doesn’t have to take a long time if the company uses good crisis management tactics,” said Manpreet Hora, an assistant professor in Georgia Tech’s College of Management. “Reducing the time it takes to recall a product will have a positive effect on consumers’ willingness to purchase other products from the same company and if the recall is handled well, the stock price may recover to the same level as before the incident.”
While a product recall can be a serious blow to a company's reputation and checkbook, it does not have to be. Create a proper crisis response plan and implement it as soon as trouble's spotted, you'll be bouncing back in no time!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
“Too many CEO’s play ostrich about the possibility of a recall. They wait until the recall is required and then try to figure out what to do, resulting in additional risk for consumers and the company’s reputation.”
I know, I know, it's more Crisis Management 101, but you would be astounded at the number of businesses who do not heed this advice. Luckily for them, the nice people at Reliable Plant magazine have published an article featuring steps firms can take to recover from a product recall.
“Recalls undermine trust in a specific brand and it can take the company a long time to recover from the damage to its reputation, but it doesn’t have to take a long time if the company uses good crisis management tactics,” said Manpreet Hora, an assistant professor in Georgia Tech’s College of Management. “Reducing the time it takes to recall a product will have a positive effect on consumers’ willingness to purchase other products from the same company and if the recall is handled well, the stock price may recover to the same level as before the incident.”
While a product recall can be a serious blow to a company's reputation and checkbook, it does not have to be. Create a proper crisis response plan and implement it as soon as trouble's spotted, you'll be bouncing back in no time!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Wednesday, May 13, 2009
The Flying Pig Crisis & The Case of the Angry Urologist
There's a new issue of Crisis Manager hot off the presses, with some oddly titled but excellent stories. It's free for the taking! This edition's got a crisis management success story by Betsy Ross, president of Game Day Communications, a couple announcements, and crisis prevention advice spawned from a spat between urologists.
If that piqued your curiosity (and you know it did!), check out this one along with all of our past issues here.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
If that piqued your curiosity (and you know it did!), check out this one along with all of our past issues here.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Tuesday, May 12, 2009
Rights? What Rights?
We haven't quite made it a week since the last crisis management disaster involving a major US company and here's The Consumerist at it again, this time with a doozy of a story involving sporting goods giant REI and Loomis security.
While Shane was standing in the customer service line at a Seattle REI, he watched two Loomis employees open and change out the cash in an ATM machine. Shane took a photo of them with his iPhone. This apparently freaked out the Loomis guards, the REI security staff, and then the Seattle police, who put handcuffs on Shane, drove him to the police station, and then made him sign a statement that he wouldn't return to a REI store for a year.
Now, the rational move would have been for an REI employee to simply ask Shane to delete the pictures...how this didn't happen is beyond me. It is not illegal to take photos of anything except military and designated national security areas - so unless there are top secret documents stuffed inside that ATM, Loomis, REI, and the Seattle PD are going to need a solid crisis response to avoid taking serious blows to their reputations.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
While Shane was standing in the customer service line at a Seattle REI, he watched two Loomis employees open and change out the cash in an ATM machine. Shane took a photo of them with his iPhone. This apparently freaked out the Loomis guards, the REI security staff, and then the Seattle police, who put handcuffs on Shane, drove him to the police station, and then made him sign a statement that he wouldn't return to a REI store for a year.
Now, the rational move would have been for an REI employee to simply ask Shane to delete the pictures...how this didn't happen is beyond me. It is not illegal to take photos of anything except military and designated national security areas - so unless there are top secret documents stuffed inside that ATM, Loomis, REI, and the Seattle PD are going to need a solid crisis response to avoid taking serious blows to their reputations.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Monday, May 11, 2009
Don't Be A Boob!
British retailer Marks & Spencer passed a public Crisis Management 101 pop-quiz with flying colors when, facing a campaign protesting its charging extra for bra sizes above DD, it decided to reverse the policy and issue a public mea culpa via full-page newspaper ad. Toting the bold headline, "We boobed.", the firm stuck firmly to the crisis response tenet of admitting your mistakes and it's paid off beautifully. CNN recently interviewed the leader of the protesters and this is what they had to say:
"I think even though we all obviously held a bit of a grudge against buying our bras from M&S we should really be grateful they got rid of the surcharge and have given us the super generous 25 percent off," Mount wrote on the group's site Friday. "They may get cleared out by the time the weekend is over!"
The head of a protester's group publicly commenting on your company's generosity and predicting brisk sales? You really couldn't ask for a better reaction than that. A hearty U.K. "cheers" to Marks & Spencer, very nicely done!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
"I think even though we all obviously held a bit of a grudge against buying our bras from M&S we should really be grateful they got rid of the surcharge and have given us the super generous 25 percent off," Mount wrote on the group's site Friday. "They may get cleared out by the time the weekend is over!"
The head of a protester's group publicly commenting on your company's generosity and predicting brisk sales? You really couldn't ask for a better reaction than that. A hearty U.K. "cheers" to Marks & Spencer, very nicely done!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Thursday, May 7, 2009
Kentucky Fried Crisis
Kentucky Fried Chicken is the latest big name to find themselves in need of some heavy-duty crisis management. Their super promo, a partnership with Oprah designed to introduce America to their new grilled chicken, seemed destined for success. A story from The Consumerist details what went wrong.
What's happening is that the franchised stores are not being reimbursed for the coupons. I was told that Oprah is backing corporate for the costs of the free chicken; franchise stores, if they participate at all, are simply giving away food and losing the money.
Their crisis prevention plan failed to take into account the enormous number of people who would respond to an offer for a free meal and the cost that involved for their franchisees, who were not being reimbursed. Even many of the corporate stores had halted the offer after only hours, having given away more food than they had been allocated.
KFC's crisis response strategy so far has been to offer both rain checks (staggered to reduce impact on stores), and an online video apology. We'll have to wait and see if this satisfies consumers or if they punish KFC for their poor planning.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
What's happening is that the franchised stores are not being reimbursed for the coupons. I was told that Oprah is backing corporate for the costs of the free chicken; franchise stores, if they participate at all, are simply giving away food and losing the money.
Their crisis prevention plan failed to take into account the enormous number of people who would respond to an offer for a free meal and the cost that involved for their franchisees, who were not being reimbursed. Even many of the corporate stores had halted the offer after only hours, having given away more food than they had been allocated.
KFC's crisis response strategy so far has been to offer both rain checks (staggered to reduce impact on stores), and an online video apology. We'll have to wait and see if this satisfies consumers or if they punish KFC for their poor planning.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Wednesday, May 6, 2009
One-Stop Flu Info
The smooth way in which the US government has handled the H1N1 swine flu, including the excellent flow of information and high level of transparency, can largely be attributed to the crisis management efforts of the Department of Health and Human Services, along with the CDC. Thanks to their careful crisis prevention planning we have sites like PandemicFlu.gov, with one-stop access to all of the pertinent information regarding any pandemic flu. They've got press briefings and planning recommendations, along with any relevant local or international news.
Their work has produced excellent results; between websites and social media the public is well informed and panic is essentially nonexistent. This may go down as a classic study in online crisis management.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Their work has produced excellent results; between websites and social media the public is well informed and panic is essentially nonexistent. This may go down as a classic study in online crisis management.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Monday, May 4, 2009
Get Digital
Ask any crisis management professional and they'll tell you, the absolute best way to handle a crisis is to prepare for it before it ever happens. With digital media fast becoming the standard, it's critical to factor the Web into both your crisis prevention and crisis response plans. In a recent blog post, social media and digital marketing expert John Bell gave an excellent example.
"We had a client crisis within the past couple of years that really called for a response video. Now the client wasn't all that social Web-savvy. They had to learn fast. Still the 3 days it took to get everyone on-board with a video response from .... oh, that was another long discussion; that was 2 days too long. Planning for crisis response reveals these hurdles and gets executives and lawyers over them such that when a crisis hits you are not spending your energy convincing folks that your customers and those who influence them are all over YouTube or Facebook or Twitter."
His story also includes four tips for getting reluctant C-suiters on board and giving your online crisis management plans a kick in the butt. With a new Internet scandal what seems like every other week, anyone caught unprepared is looking for trouble.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
"We had a client crisis within the past couple of years that really called for a response video. Now the client wasn't all that social Web-savvy. They had to learn fast. Still the 3 days it took to get everyone on-board with a video response from .... oh, that was another long discussion; that was 2 days too long. Planning for crisis response reveals these hurdles and gets executives and lawyers over them such that when a crisis hits you are not spending your energy convincing folks that your customers and those who influence them are all over YouTube or Facebook or Twitter."
His story also includes four tips for getting reluctant C-suiters on board and giving your online crisis management plans a kick in the butt. With a new Internet scandal what seems like every other week, anyone caught unprepared is looking for trouble.
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Sunday, May 3, 2009
Message Timing Important During Crises
What exactly do pictures of children dangling from tire swings and teenagers surfing sand dunes have to do with the recent salmonella scare? That's the question a recent article from TwinCities.com, and many consumers, are asking.
"I thought it was an odd way to market peanuts," says Mallue, a 32-year-old college administrator from New York City. "I just assumed it was a reaction to the scare."
Mallue's assumption is wrong. The ads have nothing to do with the contamination controversy, and some crisis-management experts say that's a problem.
With the industry still reeling from the massive salmonella scandal, the National Peanut Board should be aiming to reassure consumers that peanuts are safe and that they have an active crisis prevention plan in place. While spreading the message that peanuts are healthy is all well and good, the timing was poor. During times of crisis response, such campaigns should be postponed.
Hit the link for the full story along with interviews with crisis management pros, one of whom is me!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
"I thought it was an odd way to market peanuts," says Mallue, a 32-year-old college administrator from New York City. "I just assumed it was a reaction to the scare."
Mallue's assumption is wrong. The ads have nothing to do with the contamination controversy, and some crisis-management experts say that's a problem.
With the industry still reeling from the massive salmonella scandal, the National Peanut Board should be aiming to reassure consumers that peanuts are safe and that they have an active crisis prevention plan in place. While spreading the message that peanuts are healthy is all well and good, the timing was poor. During times of crisis response, such campaigns should be postponed.
Hit the link for the full story along with interviews with crisis management pros, one of whom is me!
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
Friday, May 1, 2009
CDC Crisis Management
Successful crisis managers learn the most from studying real-world situations. This recent article from AdAge.com dissects the crisis management strategies used by the CDC when reacting to the recent "swine flu" outbreaks. Although the story is directed towards marketers, I believe the tips within apply to any organization's crisis prevention and crisis response.
At the center of this crisis is the U.S. government's Centers for Disease Control and Prevention. The communication work it is leading is neither sexy nor flashy, but it's highly effective -- and critically timely. Moreover, the approach is building credibility. The agency has added nearly 15,000 Twitter followers in the past two days, bringing the total to 40,000. Data from my employer, Nielsen Online, also suggest the CDC website is generating unprecedented links and references, including from Wikipedia, across all dimensions of this issue.
With social media coming of age, the art of managing conversation about a crisis is becoming an essential part of the crisis management process. If you won't refute bad information about your business, then who will?
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
At the center of this crisis is the U.S. government's Centers for Disease Control and Prevention. The communication work it is leading is neither sexy nor flashy, but it's highly effective -- and critically timely. Moreover, the approach is building credibility. The agency has added nearly 15,000 Twitter followers in the past two days, bringing the total to 40,000. Data from my employer, Nielsen Online, also suggest the CDC website is generating unprecedented links and references, including from Wikipedia, across all dimensions of this issue.
With social media coming of age, the art of managing conversation about a crisis is becoming an essential part of the crisis management process. If you won't refute bad information about your business, then who will?
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com
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