crisis management workshop
DESCRIPTION
Practical information for Companies and organizations on Crisis ManagementTRANSCRIPT
PRSA WorkshopMay 6, 2009Tony Lentini, Pixel Creative Group
CRISIS MANAGEMENT WORKSHOP
PRSA – May 6, 2009 Tony Lentini, Pixel Creative Group
38 years Crisis Management, Media Training & PR/Corporate Communications
U.S. Army Middle South Utilities (Entergy) Mitchell Energy & Development Holiday Corp. (Holiday Inn) Apache Corporation Consulting
It can happen to you! Protect reputation & franchise Save valuable product or service Reduce liability Identify resources, contacts well in advance Train & drill before it hits the fan Perception = reality Confidence breeds confidence
Understand BIG PICTURE: What’s at risk; what will it take to fix problem?
Potential long- & short-term impacts on your organization
Potential costs of resolution (money, people, reputation, market share)
7 dead in Chicago: cyanide-laced Extra- Strength Tylenol capsules
Tylenol a top brand. Market share dropped from 37% to 7%
Johnson & Johnson $100 million+ product recall
Re-introduced: Tamper-proof packaging, steep discounts
2,250 sales reps made presentations to medical community to restore confidence
Tylenol saved; 1-yr. market share rebound
Enron put AA on defensive Document shredding, dishonest audits
severely damaged reputation Franchise could have been saved Cost: senior management resignations, self-
reporting to DOJ, SEC “Circle-the-wagons” mentality killed AA
Management, employee buy-in Notification system Crisis Management Team Lawyers on CMT but not in charge Fact files on all facilities: Risks, contact
information, government/public safety officials
Maps of nearby communities, roads, for evacuation planning
Proactive approach: news media and community
Retains Crisis Management Consultant Establishes Issue Management system Strategic focus, BEYOND immediate crisis Drills & training Business continuity plan
Drill, drill, drill: Periodic, unannounced tabletop exercises
Test notification system Test mobilization of CMT Test functioning of operations, PR, etc. Critique and adjust plan
Spokesperson depends on nature, location, severity of crisis
Train PR staff Train field managers CEO definitely needs training Manage not just messages, but appearance
& demeanor
Two types of media training: 1) “Boot camp”2) Positive reinforcement
Successful media interviewing not rocket science, does require training
Training should empower spokespeople; humiliation makes them wary
Boot-camping your CEO could be hazardous to your career
On-camera practice interviews Experience: Ideally, trainer has been on
both sides of camera Scenario-specific to your company Crisis & non-crisis training equally important Small groups best, but train CEO separately Don’t attempt to train senior management
yourself
Essential skill for corporate communicators Your audience? Your goal? Limit messages Support with sound bites, statistics, colorful
anecdotes Anticipate questions, develop answers Learn transitioning Take charge & stick to messages
Experience, contacts from handling many crises
Saves time when timing is critical Expertise in variety of necessary disciplines
(Crisis Management, PR, media training) Outsider’s perspective Can tell management things an employee
may be reluctant to address
Trust begins at home: To gain seat at Crisis Management table, PR needs credibility with senior management
Get to know reporters, public safety officials before a crisis occurs
Contact lists must be part of your plan Trust trumps natural skepticism EXXON’s big problem during Valdez: No
relationships, therefore no trust
Develop evacuation, relocation plan for key management, operations, critical support functions
Secure offsite storage of records Transportation plan for relocation Backup communications (satellite phones,
alternate servers) Establish office-closure notification system
for employees
An invisible page on Web site, activated when need occurs
Platform for internal and/or external crisis updates
Mechanism for informing employees of office closures and activation of business continuity plan
Intranet link can perform same function
Respond (put out the fire) Ensure senior management, appropriate
departments notified Ensure required government/regulatory
notifications accomplished Gather facts Determine whether Crisis Management
Team should be activated, designate spokesperson
Draft media statement Anticipate media questions/develop
answers Notify media? Respond to queries with statement; Update as new information becomes
available Try to make it a one-day story
Answer as many of the five W’s as you can Take responsibility for resolving the crisis Tell the truth Don’t speculate Don’t announce names of deceased/injured Don’t discuss blame, insurance coverage,
causes “It’s under investigation”
Relatively minor events usually may be handled by a skilled spokesperson in your PR department through a brief statement
Social media (Blogs, Twitter, etc.) emerging & evolving: Be very careful using “New Media” in a crisis
Informal communication can backfire or give story “legs”
If you engage social media, treat as any other news medium (be on your toes)
One or two Blog messages do not make a trend
Be selective in choosing which to engage
Be sure of your facts—Rather’s evidence in Bush National Guard story debunked by blogging typewriter experts
Experts abound on Internet Everybody has a camera!!! Internet becoming go-to place for news Rather, mainstream media ignored blogs, to
their detriment
Post-mortem: What went right, what went wrong
Update, change crisis plan accordingly Take steps to prevent crisis from occurring
again Update safety procedures, operational
protocols, training, as needed Communicate with employees &
stakeholders
Working for Middle South Utilities March 28, 1979: Three Mile Island nuclear plant accident near Harrisburg, PA
Partial core meltdown in Unit 2 when coolant relief valve stuck & operators failed to recognize implications
TMI attracted worldwide attention “The China Syndrome” motion picture
released 12 days before TMI
Middle South: one nuke plant operating in Arkansas, four under construction in Arkansas, Mississippi & Louisiana
President of Arkansas subsidiary erred by public announcement of precautionary shutdown
Middle South’s nuclear program in jeopardy
Service-area-wide road show on TMI and nuclear safety (PR rep. and Nuclear Engineer)
Conducted media interviews Prepared booklet: Nuclear Power in the Post-
Three Mile Island Era (distributed nationwide); Featured nuclear power, safety in annual report
that year Proactive approach saved company’s nuclear
program
Late ‘80s protests against in-room “porn” at Holiday Inn hotels organized by American Family Association
Holiday’s PR staff manned “war room” during annual protests: monitoring, providing media interviews, advising hotel managers
Holiday Inn’s market: middle-class families; protests harming franchise
Research: Watched movies (softcore & stupid), angering both pro- and anti-porn guests
Cost of breaking contract less than $200,000 (wasting that much staff time in “war rooms”)
Solution: Bought out contract; protests ended; brand protected
Motorists report crude oil bubbling through highway serving airport near Hobbs, NM
Apache field personnel determine it “might” be from company production
Solution: Act first; determine ownership later
Took responsibility, worked with local authorities to shut in highway, repair leak
Highway reopened within day. Public kudos from highway patrol, airport officials
June 2007: Offshore driller announces possible FCPA problem related to “facilitating payments” to Nigerian customs officials
Noble Corp. recognizes it may have same issue Solution: Take charge. Self-report to DOJ,
SEC; internal Board investigation; examine practices worldwide; announce to media (anticipate all questions)
Resolution: Stock price up on announcement; no fines, prosecutions
Tony LentiniLentini Creative Communications
PR/Crisis Management Counsel Pixel Creative Group
2801 Post Oak Blvd., Suite 101Houston, TX 77056
Mobile: 713-907-5841Office: 713-622-9293
www.pixelcreative.com