New Edition of Crisis Manager

All of us enjoy the ease of access and convenience that the Internet has brought to business, as well simple daily tasks such as making purchases by credit card, but what would you do if the Internet really crashed? In the latest issue of Crisis Manager, I discuss this very topic from a crisis management professional's point of view. In addition, we've got the first of a three-part series by acclaimed author Rene A. Henry discussing what exactly you can do to elicit a public apology or correction when wronged by a media outlet.

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JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

A Bad Idea

Microsoft recently unveiled a brand-new ad for their business productivity software. While the U.S. version was fine, someone at the software behemoth's Polish subsidiary decided to make a change that spawned a storm of negative criticism throughout the Web and on Twitter. Here's a description of the switch that angered so many, from CNET.com:

In a photo on the company's U.S. Web site, three businesspeople--one black, one white and one Asian are shown as part of a pitch for Microsoft's business productivity software. In the same photo on the site of Microsoft's Polish subsidiary, a white head is placed over the black person's body, although the hand is not changed.

Microsoft immediately began standard crisis management procedure - pulling the image, issuing an apology and promising to, "look into the details of the situation." With a subject as controversial as race, though, it will likely require a follow-up effort from Microsoft to quiet their critics.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

More about Whole Food's John Mackey on the Hot Seat

Whole Foods Market's CEO John Mackey is well known for landing his company in the hot seat. The outspoken Mackey first caught the public's attention after being outed for using a pseudonym to both promote Whole Foods and blast their competition on the Yahoo! Finance bulletin boards, an incident which resulted in major stockholder backlash.

Mackey's latest hoof-in-mouth incident came just weeks ago, when he penned an op-ed piece for the Wall Street Journal blasting the health care reforms proposed by President Obama. After customers nationwide responded by picketing Whole Foods stores, the company issued a press release distancing themselves from their CEO's viewpoints. Their statement, as quoted in a Natural Foods Merchandiser article about the debacle:

"Our CEO submitted an opinion piece last week with the intention of expressing his own viewpoints and providing constructive ideas to support reform, as President Obama invited America to do. We have heard from individuals who both agree and disagree with John's ideas as there are many opinions and emotions surrounding the ongoing health-care reform issue, including lots of differing views here inside of Whole Foods Market. We appreciate those diverse perspectives."

Whole Foods was probably blindsided by Mackey's WSJ piece, which was obviously written with no regard for its impact on the company. The press release distancing the CEO's thoughts from the company's ideals was a good start on crisis management, but it is going to take some more serious work from Whole Foods and Mackey to get out of this mess.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Corporate Malware

mal·ware (māl'wâr')
n. Malicious computer software that interferes with normal computer functions or sends personal data about the user to unauthorized parties over the Internet.

Although the news media usually focuses on more widespread attacks like the recent Conficker worm, there is a new generation of malware aimed solely at gathering information or data from specific targets. An article from cutting-edge IT security site Dark Reading describes one such program:

One piece of malware found on a desktop machine during a forensics investigation was actually pre-coded to steal specific information from the victim's organization, says Greg Hoglund, CEO and founder of HBGary, whose company sees about 5,000 new pieces of malware a day. "It knew what it was looking for," he says. And the malware was disposable so that it could disappear without a trace after doing its dirty work.

Sometimes, things that are vital to your business can also provide opportunities for unscrupulous individuals. With the realities of business today mandating that you be thoroughly networked to compete, the best way to prevent a security breach from creating an issue is to include the possibility in your crisis management plans from the start.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Internet Anonymity

As crisis management pros are well aware, the anonymity of the Internet has historically provided cover for anyone with an opinion to post libelous comments with little fear of retribution. This appears to be changing, however, due in part to a landmark case brought against an anonymous blogger by fashion model Liskula Cohen.

According to an article from Canada's The Globe and Mail news magazine, Madam Justice Joan Madden, the New York State Supreme Court jurist charged with handling the case, determined that established law did not distinguish between the online and offline worlds for judging defamation and free speech. A quote:

Her (Cohen's) lawyer argued that she could not bring a defamation suit against the blogger unless the search-engine giant released the person's identity.

The case spotlights a new area of law where legal standards are still being worked out, said Steven Wagner, the New York-based lawyer who represented Ms. Cohen.

“People who behave poorly and defame people on the Internet will face possible repercussions," he said in a phone interview. “This is one of a series of cases that is establishing a standard. The standard is not set yet."

Many previous attempts to force disclosure of blogger IDs in non-criminal cases have failed. If this case becomes a precedent, then the use of the Web as an anonymous bully pulpit is going to change radically.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Continental Drops the Ball

A half-hearted attempt by Continental Airlines to compensate passengers held for nearly six hours on a Minnesota airport tarmac has resulted in a serious wave of negative publicity. With reports surfacing about poor conditions on the plane, and the fact that multiple passengers asked to be let off and were denied, the need for crisis management was clear. Sadly, the minds of whoever formulated the plan were not.

The compensation package included a standardized letter of apology, a promise to refund the cost of their tickets, a $50 gift card and a $200 voucher towards a future flight, which as any traveler can tell you will rarely cover a round-trip. To add insult to injury, the voucher includes both an expiration date and a liability release, as described this quote from a USAToday.com article:

"...the $200 voucher expires in a year and includes a "release of liability." The voucher reads that by accepting it, "you release Continental, the operating carrier and their respective employees, agents and representatives from any and all liability, claims or damages resulting or arising from the matters related to your flight, compensation therefore or any related complaint."

If your customers are describing time spent on your airline as "trapped in a flying coffin" and "imprisoned," it would be wise to err on the side of being overly generous rather than disguising a liability waiver as a gift. I get the distinct feeling the snowball is only just now beginning to roll on this one.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

10 Words to Ban in Press Releases

We've all seen press releases and many of us have written them. It's WAY too easy to get trite and undermine your own credibility in the process, as Robin Water discussed recently in "10 Words I Would Like to See Banned from Press Releases" at her TechCrunch blog. Here, for example, is number one on her list of over-used words:

1 ) LEADING / LEADER

You know the kind: “Initech, the leading blah in blah blah blah, has partnered with Initrode, leader in blah blah blahblah blah blah blah.” Every single time a press release carries either one of these words in the first sentence, I cringe. Why? Because if everyone is leading, no one is. Period. PR people, next time you start writing a news announcement, ask yourself if you really should be using the words ‘leading’ or ‘leader’ just because it’s easy and everyone is doing it.

While press releases are an invaluable tool for crisis management, marketing and a myriad of other business purposes, if used carelessly they end up trashed, along with your reputation.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Vick Gets it Right

Disgraced quarterback Michael Vick, recently released from an 18-month stint in prison, granted one of his first interviews to CBS' 60 Minutes. The interviewer pulled no punches and, unlike nearly every disgraced sports figure in recent memory, Vick made no attempts to deflect them. A recent Yahoo! Sports article has some excellent examples of his heartfelt responses:

• When James Brown confronted Vick with a graphic recitation of the acts associated with the Bad Newz Kennels dogfighting operation, then asked him, "For those who may say it showed a lack of moral character because you didn't stop it, you agree or disagree?" Vick didn't hesitate, equivocate, hem or haw. "I agree," was his simple reply. • When Brown asked Vick, "Who do you blame for all of this?" Vick once again resisted the urge to deflect the question or share the blame with others. "I blame me." • When Brown asked Vick about blowing his $130 million contract with the Atlanta Falcons, the richest in the NFL, Vick said, "I deserve to lose the $130 million."

Vick's frankness and honesty in this interview will do wonders for his crisis management efforts. Though it can be a long road, it is possible, with time and effort, to reverse even the most devastating reputation damage.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Whole Foods' Reputation Crisis

Today I'd like to discuss a gem of a post from a Talking Points Memo blog that was brought to my attention by faithful Crisis Manager subscriber Patricia Luebke. The post slams Whole Foods' CEO John Mackey, who's been caught in the crossfire of yet another scandal - this time bashing health care reform and appearing to push his company's food as an effective means of reversing degenerative disease in a Wall Street Journal op-ed piece. A wonderfully sardonic quote from the blog post:

Here's a thought: If you own a major supermarket chain that caters to a great deal of liberal-minded people with money, don't rail against the evils of health care reform in the Wall Street Journal.

Is Whole Foods oblivious to the fact that Crisis Management 101 dictates thorough media training, especially for CEO's, or is Mackey simply ignoring such advice? Lately the CEO can't seem to keep his foot out of his mouth. It will be interesting to see if this latest blow to the supermarket's reputation is enough to elicit a change.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Twitter Turbulence

An interesting, and silly, lawsuit has been filed against Twitter by Texas-based emergency alert provider TechRadium. Their complaint? They say the widespread use of the service by governments and organizations as an emergency notification system violates their patents. The worst part? It appears that none of their patents have even been labeled as specifically for "emergency notification systems!"

A recent post from the Law.com Legal Blog Watch has more details:

TechRadium claims that Twitter's "core functionality" falls within the range of technology covered by TechRadium's patents. When organizations tweet about road closures, fires or bad weather, the company claims its patent rights are being violated. And that's happening more frequently, as municipalities and large corporations are using Twitter to alert the public about fires, hurricanes, road closures and other emergencies.

I doubt this lawsuit will require any real crisis management from Twitter. The public has embraced the service and many will feel insulted by TechRadium's attempt at halting their flow of information, which could very well result in a backlash against the plaintiff.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Crisis Protection

Effective crisis management starts long before an incident ever occurs. The world is an unpredictable place, and the best way to mount a rapid, convincing response is to be prepared beforehand. In his piece, published in the most recent Crisis Manager newsletter, PR vet George Hayward gives some important steps organizations should be taking to steel themselves against disaster in these trying economic times.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

The Dark Side of Social Media

Social media has exploded onto the scene, bringing promises of more interaction with, and among, customers. This platform, which appears to be a marketers dream, has also shown itself to be dangerous, most recently causing trouble for corporate giants Johnson & Johnson and Pepsi.

In her guest article from the latest Crisis Manager newsletter, Karen Mallia, Assistant Professor at the University of South Carolina, explores the role Twitter and blogs played in these incidents, as well as the crisis management steps taken by each organization.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Recall Recovery

As I've stated in previous articles, product recalls have the potential for crises for which many companies remain unprepared. They are nearly guaranteed to produce an initial barrage of criticism that, if not properly handled, can snowball into something much worse. A recent interview from ReliablePlant.com has more on this point:

"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."

As always, smart crisis management practices are the key. By forming plans before a recall is necessary, organizations can respond swiftly and with confidence, reducing damage to both reputation and the bottom line.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

The Shack Overcomes Criticism

Although it's always entertaining to bash poor crisis management, especially when it results in loads of negative media coverage, there is quite a lot of quality work being done every day. One such example is RadioShack's handling of the mounting negative buzz on Twitter and various blogs after they unveiled their new branding campaign, introducing the nickname "The Shack." In a move aimed directly at combating criticism. they went to respected industry magazine Ad Age.

In an interview with Ad Age, Chief Marketing Officer Lee Applbaum downplayed criticisms of the nickname. He pointed out that consumers and media are drawing conclusion before they've seen any of the new campaign. The company has no plans to eliminate its RadioShack moniker, and the name will remain unchanged on exterior signage at stores. Those details were not apparent based on the company's press release, as evidenced by the media coverage the announcement received.

When asked why the company did not roll out the campaign in a way that would have avoided at least some of the confusion, Mr. Applbaum insisted that the company is "very strategic." He said it's difficult to "dissect any one piece" of the platform and its rollout.

"When you contemporize an iconic brand, when you in any way seek to change that, it makes people uncomfortable, and I understand that," he said. "I think [the criticism] is a reflection on the passion people have for an iconic brand. If people aren't uncomfortable, then you haven't done your job in being transformative."

RadioShack had several opportunities here and seized them all. In going out of character for their brand, they inadvertently ignited controversy and the resulting media coverage. They then extended the coverage and turned the tables on critics by granting interviews to several magazines and popular blogs. Nationwide media attention before a new campaign's even launched? Thanks to effective crisis response and some smart folks in marketing, Radioshack came out on top in this one.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

More Crisis Manager!

We've uploaded a new edition of the Crisis Manager newsletter to our website, and, as always, it's stuffed with information you really can't afford to miss!

In this issue our first guest, University of South Carolina Professor Karen Mallia, offers up a powerful review of two recent advertising campaigns torn apart by the power of social media, along with the lessons marketers should learn from these incidents. Our second guest, seasoned PR pro George Hayward, has some very timely crisis management advice to help you protect your organization in an economic downturn.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Preventing Identity Theft - Tips from the IRS

In an identity theft scam, a fraudster, often posing as a trusted government, financial or business institution or official, tries to trick a victim into revealing personal and financial information, such as credit card numbers and passwords, bank account numbers and passwords, Social Security numbers and more. Generally, identity thieves use someone’s personal data to steal his or her financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name and even file fraudulent tax returns.

Identity theft can wreak havoc in an individual's life, and the fact that scammers often use trusted names, logos and web addresses in their schemes can make them very difficult to spot. In their latest Newsroom article, the IRS provides examples of the most common ploys, along with some simple steps you can take to prevent a crisis.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Twisting the Truth

When it was revealed that Tennessee Senator Paul Stanley was having an affair with his 22-year-old intern, it started a chain of events that ended with his reputation and career being destroyed. The fact that he was known for vocally citing his belief in abstinence outside marriage, as well as a multitude of other conservative views, only set him up for a harder fall when it became clear he was not "walking the walk." An AP article published today has details on the senator's ham-handed crisis management efforts.

As news of the affair broke last month, the 47-year-old Stanley dodged reporters and issued a statement calling himself a victim. The suburban Memphis lawmaker, a married father of two who taught Sunday school, said he wanted to set the record straight. But, he insisted, prosecutors had told him not to talk.

The prosecutors in the case did not take Stanley's public lying lightly, and made sure to issue a statement insisting that he was not restricted from discussing the case in the slightest.

The first rule of crisis response is to tell the truth, and tell it first. As is plain to see from the trouble the senator's twisted stories have landed him in, it's for a good reason.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/

Poor Choices

Considering every player on the 2003 MLB steroid investigation list was informed of their positive test results, it's obvious that David "Big Papi" Ortiz, of the Boston Red Sox, was well aware of the skeletons in his closet. Knowing this, it would have been a smart crisis prevention move for him to be more careful in his choice of statements to the media regarding performance enhancing drugs. A recent post on the PR Finish Line blog breaks down some of his poor choices.

Flashback to spring training when Ortiz, on camera, told the media: "I think you clean up the game by the testing... You test positive, you are going to be out. Serious and period. Ban them for the whole year." A few years back, he told a group of Boston high school students: "I'm drug free. I never used drugs," and exhorted them to do likewise.

Although any revelation regarding PED's is bound to be a bombshell, in sports, just as in the corporate world, taking the right crisis management steps can make the difference between a disruption and permanent damage to your reputation.

JB

Jonathan Bernstein
http://www.bernsteincrisismanagement.com/