Saturday, December 31, 2011

AAA's Wrong-Way Reputation Management

Dishonest promotion causes reputation damage


We're always fans of businesses using charitable-type events or offers to promote their reputations. Run things the wrong way though, and you'll find yourself in crisis management mode instead of reaping in the praise.

When AAA announced its "Tipsy Tow" service for New Years Eve, a free tow service for those who celebrated a bit too much to drive themselves, it was heralded by members and non-members alike, but details quickly emerged that changed the picture, and people's perceptions, dramatically.

A quote, from the V3 Integrated Marketing blog:

Here’s the rub. And the part where the crisis looms — the information being reported is wrong.

AAA is NOT offering the Tipsy Tow service in every location across the United States (props to my other smart friend Allen Mirales, and numerous others afterwards, for messaging me on Facebook about this – you guys are awesome).

Unable to resist, I slipped on my trusty Sherlock Holmes hat (sorry, I’ve been dreaming of RDJ ever since the first movie came out) and got busy.

When I called 800-22-4357 (AAA-HELP) the number prominently featured in every article I read online about this promotion, I was advised by a harried operator that this Tipsy Tow business is not a nationwide offering.

She advised that the phones were ringing like crazy about this (no surprise there), and the AAA Tipsy Tow New Year’s Eve Service is only being offered California, Hawaii, Texas, New Mexico and Alabama. Really?

“Not in Florida where I see it reported in the South Florida Sun-Sentinel? “ I said. “No, not in Florida,” she replied.

“Hmmm, and not in Rhode Island, where I see it reported in the Providence Headlines Examiner?” I asked. “No, not in Rhode Island” says she, understandably annoyed by my questions. Scratching head, I thanked her for her help and hung up. I’m sure she was glad.

Lying by omission is still very much lying. By playing up a limited promotion to bolster its reputation in areas that were not in fact part of the offer, AAA drew the ire of customers (and potential customers), resulting in a significant amount of reputation damage.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

Tuesday, December 27, 2011

Take Shelter!

Social media scare in Jersey


The unfamiliar noise from Jaclyn Boruch's cell phone startled her. She reflexively grabbed it. What she saw next scared her.

In bold red letters were the words "CMAS Alert" followed by "Civil Emergency in this area until 1:24 PM EST Take Shelter Now U.S. Govern." 

The emergency alert message took up her entire screen. It locked her Android phone for several minutes.

"I didn’t know if it was something happening in the ocean, some happening on land or coming out of the sky. I had no idea so that’s why it was so frightening," said Boruch, 22, marketing director at the Boys and Girls Clubs of Monmouth County in Asbury Park.

This quote, from an NJ.com article by Eunice Lee, describes an incident that sent residents of several New Jersey counties into a panic early last week. It was only hours before police had confirmed with Verizon that the message had been a test of their crisis management system, but not before local law enforcement had been inundated with calls from concerned residents.

One county, Monmouth, actually halted the crisis in its tracks with a message from its own text-based crisis management system, "THERE IS NO EMERGENCY. The 'take shelter' message that Verizon sent IS NOT a VALID message. DO NOT CALL THE POLICE."

The reaction from residents speaks well to the wide reach of these new crisis management systems and, as more and more are integrated into emergency services every day, we're sure it's not the last slip-up we'll see.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

Wednesday, December 21, 2011

You Might Be a Crisis Manager If...

Jeff Foxworthy, eat your heart out. It’s easy to make jokes about rednecks. Try making jokes about crisis management! The Foxworthy influence MIGHT just be recognized in the one-liners that follow. I invite readers to add their own via blog comments. Please note that when you do so, you’re giving me permission to reprint them in my newsletter or other online communications as well.

You might be a crisis manager if...

…you realize your hair is on fire but know that it’s more important to dodge the truck about to hit you first.

…you can imagine yourself possessing the mind of someone from a completely different background or even a different sex.

…chickens running around with their heads off don’t bother you.

…you can translate legalese to plain English in seconds.

…you can train old corporate dogs to do new tricks

…you can persuade stoned protestors chained to your front gates that you’re their friend.

…you can launch a blog, post multiple social media messages, and eat lunch…all in a half hour.

…you can make lemonade with ANYTHING you have on hand.



Have fun with this!

Jonathan Bernstein

Saturday, December 17, 2011

Did Someone Break the Delete Button?

Sometimes there's no option but to delete


Retailer Lowe's is in the midst of a social media breakdown, as thousands of racist comments flood a post on their Facebook page explaining why it's pulled advertising from the TLC show, "All American Muslim."

Media across the country caught wind of the situation, resulting in even more reputation management troubles for the company, as you can see in this quote, from an AdWeek article by Ben Popken:

"If Lowe's was concerned about spreading hate speech, you would think that they would filter and delete the worst [comments]," says Ibrahim Hooper, communications director for the Council on American-Islamic Relations (CAIR). "It's hard to tell if leaving them up is intentional or not." CAIR sent Lowe's CEO Robert Niblock a letter on Monday requesting a meeting to discuss the pulling of ads from the TLC show but has received no response so far. Late Tuesday, CAIR plans to release a statement condemning Lowe's for allowing the bigoted speech to remain on its Facebook wall.

Edit: Lowe's finally wiped the post on Wednesday, after it had stood for five days and gathered 22,000+ comments.

While we typically discourage "Delete Button Crisis Management," when things go beyond passionate discussion and turn into defamation and outright hatred, it's time to pull the trigger.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

Tuesday, December 13, 2011

PayPal Loves Cats, Hates People

Weak crisis response leads to reputation damage


Early last week, PayPal found itself on the receiving end of a Facebook beat down when it suddenly put a halt to the "Secret Santa" charity drive being run by Regretsy.com (careful, content is NSFW at times) because they had used the wrong button to collect donations.

Regretsy's staff had quite a go around with several PayPal staffers, and posted quotes from the conversations on their site, including this gem:

PAYPAL: Only a nonprofit can use the Donate button.
ME: That’s false. It says right in the PDF of instructions for the Donate button that it can be used for “worthy causes.”
PAYPAL: I haven’t seen that PDF. And what you’re doing is not a worthy cause, it’s charity.
ME: What’s the difference?
PAYPAL: You can use the donate button to raise money for a sick cat, but not poor people.

Angry users flocked to PayPal's Facebook page, flooding it with images and comments for over 12 hours before the company woke up and started deleting posts like no tomorrow, looking all the more guilty for it.

So much for social media monitoring and strategy, eh?

PayPal finally calmed the fire with its first smart crisis management move of the entire situation, a blog post that gave a very generic explanation, but did well in discussing PayPal's support of charity, commitment to customer safety, and not only admitted error, but also explained what would be done to fix it.

Overall, a weak crisis response from PayPal that's already cost them in reputation damage, lost customers, and lost fees, all of which could have been avoided with some quality customer service and a bit of flexibility.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

Monday, December 12, 2011

What's Your Reputation Worth?

Putting a price on complacence


Mismanaging your reputation is almost guaranteed to cost big bucks, yet even multi-billion dollar organizations tend to gloss over this crucial part of crisis management.

The main reason corporate execs offer is that they believe the results of an investment in reputation management "can't be quantified". Well, here's some quantification for you, from an article by Issue Outcomes' Tony Jacques titled, "When Share Price Puts a Value on Brand Reputation:"

Cause and effect is sometimes hard to assess when it comes to the share market, but the cost of mismanagement can be brutal. For example, Google has long been one of the world's most valuable brands (ranked fourth in the latest Interbrand rankings), and earlier this year new CEO Larry Page was expected to explain to an analyst's conference why quarterly revenue was well under forecast. Instead the CEO spoke less than 400 words of general optimism, then signed off. Wall Street hammered the stock, wiping $US15 billion off the value of Google in a single day.  

How much would it have cost Google to bring in one reputation management expert and one media trainer the weekend before the conference? The highest paid in the world wouldn't have made a scratch compared to the $15 billion loss the weak presentation caused.

Quantified? I think so.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

Wednesday, December 7, 2011

Again...Shut the Hell Up

Last month, we featured Rick Kelly's article about Jerry Sandusky's crisis communications, "When Shut the Hell Up is the Best Advice." Unfortunately for them, it looks like Sandusky's camp missed this piece, because now his lawyer's the one offering up quotes that place more than a little cause for doubt on his innocence. Here's Rick's latest piece, from the Triad Communications blog:

Again, Shut the Hell Up


A couple of weeks ago, following Jerry Sandusky’s a poorly executed NBC interview, I wrote that sometimes the best crisis communication advice is “shut the hell up,” even though most of us who provide crisis comm. counsel are predisposed to encourage clients to tell their side of the story.

Specifically, Sandusky committed the cardinal sin of failing to adequately prepare for his interview with Bob Costas, which should have consisted of anticipating the potential questions, identifying the appropriate responses, and practicing the delivery.  Sandusky appeared to have done none of those things.

This week, his lawyer, Joe Amendola, provides another example of why sometimes it’s better to shut your pie-hole if you do not understand the news media and cannot muster enough “message discipline” to keep from exacerbating your client’s troubles.

Following is a verbatim transcript of a portion of Amendola’s videotaped interview with Harrisburg Patriot-News reporter Sara Ganim, who asked Amendola whether there may be a point where he sits down with Sandusky “to talk about a different strategy.”

Amendola:  “That could happen down the road, if more allegations come forth, and if Jerry gets the point where he realizes that fighting against more than the original eight allegations might be a real uphill battle. As I’ve said all along, we’re in a position where we’re climbing a mountain. It’s probably Mount Everest, just because the way the media coverage has progressed, and now we're starting from the bottom, fighting our way up. But the bottom line remains that Jerry has always maintained his innocence, from the outset of the first allegations, and he continues to maintain his innocence. Now again, what happens with any additional charges which may be filed, but as of yet haven’t, remains to be seen.”

Ganim:  “But you’re looking at maybe a dozen, maybe more. What is the point where you say, ‘maybe we should talk about a plea deal?’ And are you already having those conversations with the AG’s office?”
Amendola:  “No we haven’t.  And as a matter of fact, you know from your experience, Sara, that people who maintain their innocence sometimes plead guilty just because of the overwhelming evidence against them.  And there have been many people who have gone to trial who were convicted of very serious crimes, including homicides, and executed, and it later turned out they were innocent.  So, there’s a lot of reasons why people decide to do certain things. But at this point Jerry has maintained his innocence in regard to the allegations he knows about, and he wants to defend, and I'm trying to give him that opportunity.”

Reporters are driven by an insatiable desire to be the first to predict an outcome.  It’s not a bad thing; it’s just the nature of the job.  Inevitably, it can lead to an endless barrage of “what-if” questions, which on their face may sound harmless, but which often are far from it.  I liken it to a dangerous part of town called “Speculation Avenue,” populated not by hookers or hustlers, but reporters.  They can’t write a story about what could happen unless you help them by loaning them your name and credibility.  And once you do, you may have trouble getting it back.

Perhaps without knowing it, Amendola was invited to cross Speculation Avenue.  And cross he did – in the middle of the block, at rush hour, against the light, without looking.  The news coverage the following day flattened him like Wyle E. Coyote.  Nearly 4,000 news outlets and blogs picked the story up.
“Sandusky lawyer may eventually urge plea deal,” the Patriot-News front-page headline read.  When Fox News called, Amendola said it “is not accurate” to say that his client would consider a plea deal if more allegations arose.  Predictably, Fox News parlayed it into a pissing contest between Amendola and the Patriot-News. 

Later, Amendola issued a media statement that said, in part:
“I was asked ‘would your strategy change if the AG filed new charges involving 15 or 20 new alleged victims?’  I responded, IF that happened, in addition to the planned course of defending against all the charges, I would have to discuss other possible alternatives with Jerry.  I wouldn’t be fulfilling my legal obligation to him if I didn’t discuss those other alternatives with him, including the possibility of a plea.”
Amendola went on to “explain” that his response “was analogous to saying, if weather forecasters were predicting a blizzard next week, which they are not, I would have to at least consider the possibility of postponing my scheduled trip to Philadelphia.”

OK, let’s review:  he allows himself to be drawn into speculation over what his legal strategy might be (including the specific context of a plea agreement), later disassociates himself from it, then concedes that he would be obligated to discuss a plea with his client even if that’s not what he had said in the interview, and finally, likens his response to a theoretical trip to Philly in a blizzard that is not in the forecast.  Are you with me so far?

There’s a better way – avoid Speculation Avenue altogether.  Here’s how the interview could have gone:

Reporter:  Is there a point when you sit down with your client and talk about a different strategy?

Lawyer:  My client is innocent.  My strategy is to prove it.

Reporter:  But isn’t it possible that you would seek a plea agreement?

Lawyer:  That’s not my plan.  My client is innocent.  I intend to prove it.

Reporter:  But if there are additional allegations, and the evidence is overwhelming, wouldn’t you owe it to your client to at least discuss a plea, even if he’s innocent?  Because, in my experience, innocent people often have their own reasons for accepting a plea agreement.

Lawyer:  I’m talking about what my strategy is, not about what it could be.  My client is innocent, and I intend to prove it.  Excuse me, but if you don’t have any other questions, I’m late for my squash match.

Two disclaimers:  First, none of this speaks to Amendola’s strategy for a court of law.  Clearly, however, he did not help his client in the Court of Public Opinion.

Finally, this clinical dissection of communication issues does not equate to a lack of caring about the alleged victims.  Having worked with numerous organizations and individuals who have been hurt, sometimes very deeply, by various acts of sexual misconduct and assault, I understand that the victims are always the last to heal, and sometimes never do.

Rick Kelly is Directory of Crisis Communications for Triad Strategies

Saturday, December 3, 2011

Informed Employees

Don't forget your front lines


When you're in the midst of the flurry of activity that is crisis management, it's easy to focus on communication with those outside your organization. Often forgotten, though, are the people still handling day-to-day operations.

In a Forbes interview, Thomas Watjen, the CEO that drove insurance giant Unum from near disaster to success story in the midst of economic downturn, described how he kept employees informed and engaged during the rapid changes in corporate culture:

The most important thing we did was separate the issues we had to deal with to “right the ship,” including dealing with regulatory and capital concerns. We said to our employees, “Listen, some of us will be focusing exclusively on putting these issues behind us, and the best thing you can do is focus on our customers.” We opened up the communication channels with our employees to be sure they knew all the issues we were working on and kept them updated on how those issues were progressing.

We felt it was important to keep employees focused on our customers because if you solve the problems and lose your customers in the process, you don’t have a business.

The last sentence really says it all. While your efforts are going into reputation management, crisis communication, and operational shifts, remember that you've still got a business to run, and in order for them to do their best work, you've got to have informed employees.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

Thursday, December 1, 2011

Trust

Safeguard this valuable asset


Regardless of what your business is, trust plays a major factor. The problem with this is that by their very nature, crises undermine trust. They prove that you have vulnerabilities, and often demonstrate that you don't have them protected very well.

How then, do you maintain the trust of your clients, customers, and the public in the midst of managing a crisis? That was the question posed in a recent Entrepreneur magazine interview to BCM president Jonathan Bernstein, who had this to say:

If a crisis hits your firm, says Jonathan Bernstein, who founded Sierra Madre, Calif.-based Bernstein Crisis Management 17 years ago, take the lead in making your case to the public. And he's not talking about just covering your you-know-what. Be frank about your problems by providing answers even before your critics start asking questions.

"In the absence of communication, rumor and innuendo fill the gap," Bernstein says. "Either you communicate or other people will communicate for you."

It's Crisis Management 101 - become not only a source, but also the best source for information about your own situation. Do this, and you can quash those damaging rumors before they get out of control.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/