corporate crisis communication spring 201 4

Georgetown University Faculty Judith Muhlberg & Bruce Harrison

Class #11March 27, 2014

3/27/2014Georgetown University Corporate

Crisis Communication 1

http://www.clickondetroit.com/money/automotive/gm-ceo-mary-barra-releases-series-of-videos-answering-customers-questions/25172048

3/27/2014Georgetown University Corporate Crisis

Communication 2





Content◦ 1. Information◦ 2. Apology◦ 3. Resolve

Style/Tone◦ 1. Employee communication, first◦ 2. EQ◦ 3. Confidence

Contexts◦ 1. Woman, mom◦ 2. There when it happened◦ 3. Toyota case


Communication 3

Choose: Two crises from ‘Damage Control’ text, or class discussions or guest lecturers.

Analyze: Cause, risk, stakeholders; BAO targets, communication strategies, climax or turning point, reputation outcome, recovery. Reference to our ANATOMY OF CRISIS.

Write, Chart: Prepare a brief 3-page paper and a chart (table or other graphic) that makes your comparison and analysis easy to grasp.


Communication 4

# 1 BoeingBrooke CockrellTatiana DanielBhumika ShahErin WiegertElleni Almandrez

#2 MicrosoftSara SchuttloffelYogita MalikKaitlin LunaAndrea GarnerHayley Kropog

2/23/12Georgetown University -

Muhlberg/Harrison Spring 2012 5

#3 HoneywellKatie SpencerEmily MorinMelissa WertzEmma WaldemanCatie Weckenman

#4 JP MorganRitiksha LoboAna Maria GarzonSlgi ChoiOlivia PetersonSarah Heffern



#5 WalmartOmogboyinde OnijalaJill WesteynAnnie LorenzanaKrystyna BarnardAustin Hansen



Teams will:Prepare and deliver to the class and faculty a 10-minute slide (Power Point) presentationDescribing cause, risk, stakeholders, SWOT (strengths, weaknesses, opportunities and threats) and other implications, and Recommending to the “audience” (fellow class members and instructors, assumed to be representatives of the company or industry) a clear, focused and robust crisis communications action plan—with specifics on engaging the essential elements of crisis communications covered in this course.

This plan/presentation is worth 25 points.


Communication 8

A Corporate Crisis is an event or condition that disrupts or threatens the daily operations, reputation, sustainability, and alters stakeholder perception and trust.


Communication 9


Communication 10

“When one negative situation is topic ‘A’ bad news at The top of the organization.”

Steve Harris, former CCO of General Motors

It stops you in your tracks It changes what you were doing It makes other things less relevant It’s something you can’t fully and

immediately understand It’s something you must immediately handle It disrupts your routine and plans, and

everyone’s in the C-suite It puts at risk the trust of your stakeholders It is something you need help with


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Factors contributing to crisis fall within 2 categories:Those beyond the reasonable control of the enterprise or anyone in it:

Market conditionsContent and tone of a negative (perhaps totally

inaccurate or rigged) YouTube video gone viral

Controllable factors:Consumer discontent that was not picked up or

engaged.


Communication 12

“An inflection point, occurs when the old strategic picture dissolves and gives way to the new, allowing the business to ascend to new heights. However, if you don’t navigate your way through an inflection point, you go through a peak and after the peak the business declines…It is a point where the curve has subtly but profoundly changed, never to change back again.”


Communication 13

Augustine Key ideas

1. Avoiding the crisis2. Preparing to manage3. Recognizing the crisis4. Containing the crisis5. Resolving the crisis6. Profiting from the crisis

Norman R. Augustine, Former CEO, Martin Marietta, Harvard Business Review on Crisis Management, 2000

1. What can’t be avoided must be hedged

2. Trailer parks cause tornadoes

3. Noah built the ark early4. Perception causes

crisis5. The one aspect of

business in which a CEO’s influence is critical is crisis management.



Anatomy of CorporateCrisisCondition COOL HOT

Routine xRumblings x

Disruption Event X!

Escalation X

Reaction X

Response X

Climax X

Resolution X

Aftermath x

Repositioning ?

1/10/13Georgetown University Corporate Crisis Communication 7


Communication 15

Three strengths of corporate communication:

◦Mastery of information flow◦Intimacy and influence within the

company’s culture◦Active interaction with stakeholders and

media


Communication 16

Crisis management planning◦Oriented to risk factors (see 10k), mission, governance…

◦C-suite, operations, facilities, sales…

Crisis communication planning◦Integrated with crisis management

February 28, 2013 17Georgetown University Crisis

Communications

April 12, 2012Corporate Crisis Communication

Georgetown University 18

CRISIS MANAGEMENT Plan is prepared pre-crisis to guide senior and middle management in crisis/disaster response

Each operational unit will have its own crisis response/disaster plan

Steps the company will take in response to a crisis/disaster situation

Management and staff responsibilities

Reporting systems

CRISIS COMMUNICATION Plan is prepared by CCO to coordinate with corporate management in engaging with media and stakeholders

When the crisis occurs, the CCO and team go into a management mode, guided by a standby crisis communication checklist.

February 28, 2013 19Georgetown University Crisis

Communications

Focus on your 3 vital accountabilities Think through your most likely crisis

situations Conduct pre-crisis intelligence Prepare crisis communication guidelines Contribute communication expertise to the

company’s crisis MANAGEMENT plan Organize standby crisis-communication

team, designate standby central work station



Advanced Planning


Communication 21

• Brainstorm the list of questions you need to ask in the first critical moments of a crisis. What? So what? Now what?

• List your questions on the white boards• Appoint a spokesperson to share your

team’s list with the class

• We will re-group in 30 minutes for the report-outs


Communication 22

Ask questions What’s it all about? Who? When? Where? How? Why? Think like a reporter:

CRITICAL QUESTION: Is there death, danger?

Think context, content, tone of communication

Understand level…a crisis or something less…a nuisance? Think your role in managing either.

Activate your communications team Think ‘FACE’

Activate the communication center. Think 24/7



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Fast Think: immediate mobilization of communicators, in crisis communication center; try for initial response within the first hour; if there’s a scene, send someone there NOW.

Accurate Think: speed is good, accuracy is better; hold what we’re not sure of; we can always follow up; triple check every fact.

Consistent – and Caring Think: If human harm, public safety is involved, that’s the #1 priority. Show we care. Tone of our communication; concern/sympathy for any harm, victims.

Engagement Think: we will use every effective channel to listen, understand and deliver what stakeholders needFast, Accurate, Consistent and Caring Engagement

WITH STAKEHOLDERS


Muhlberg/Harrison Spring 2012

Georgetown University - Muhlberg/Harrison Spring 2012 25

Think through communication aspects Who’s on team? Why is each chosen?

Why is CCO at the table? Does/should it include the CEO?

◦DISCUSS: Pros & Cons of CEO involved; if not the CEO, how do we get the CEO’s support, engagement, communication?

2/23/12


What is it? What’s in it? Who writes it? What facts or fears justify the effort? Who gets a copy? What makes it special

to everybody who gets a copy? Do you think the Plan is likely to be used

in an actual “crisis” event, or not? Why? How would you increase the

use/benefit?

2/23/12


Steps the company will take in response to a crisis

Specific staff responsibilities

Reporting systems

Stakeholder data Communication

channels

Can a plan prepare for every situation?

What staff issues can be anticipated?

Media issues, key channels?

How would you plan for stakeholder engagement?

2/23/12


Who are the candidates? Can there be more than one spokesperson? Explain. How do you assure ‘one voice’? When is it essential for the CEO to do it? If there is a crisis site, who goes there?

Talk about legal, other risks of a crisis spokesperson…how to deal with it

2/23/12

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What happened? Were there any deaths or injuries? What is the extent of the damage? Is there danger of future injuries or damage? Why did it happen? Who or what is responsible? What is being done about it When will it be over? Has it happened before? Were there any warning signs of the problem?

Source: Crisis Communications, Kathleen Fearn -Banks



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Whenever possible, tell employees first Use all channels to ensure employees understand the

corporate position – they are your strongest ambassadors

If there is action the employees should take to mitigate the crisis, tell them

Advise employees to direct media questions to the designated spokesmen – and help them understand why a consistent, well-informed message is important

Listen to learn what they KNOW, how they FEEL

Employee perceptions can make or break communication/trust

“WE” attitude is the strongest crisis message platform



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Media is key, and must be a priority consideration Government regulators and unions should be early

targets of information Customers, suppliers and community leaders can serve

as advocates/supporters of the company if they are equipped with the right messages

3rd party experts can be the most effective “knights in shining armor”; they validate our spokespeople

Always tell the truth – and if you don’t know the answer, admit it, but go ahead and share the process you will use to find the answer

*(A CCO Who Has Been in the Hot Seat: Nicholas Ashooh, AIG, Alcoa)



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Damage is controlled, risk is reduced Trust (in the company and brand) is protected Leadership is visible, on ‘scene’ if there is one Focus is on stakeholders, their perceptions The ‘deal’ with stakeholders is preserved Every stage of the crisis is managed, constantly,

consistently; FACE is forefront Debriefings are constant, lessons are learned for

future Crisis communication was part of the

answer



Adopt crisis prevention as ongoing vigilance to assure enterprise reach of financial, social, safety, health, and civic responsibility goals.

Tie your effort to the realities defined by the company’s SEC 10-K risk list.

Be proactive with others in the C-suite to stay aware of any risk elevation.

Build communication influence: create your own stakeholder perception intelligence systems to plug into the stakeholder systems for early alert: red flags that could grow into crisis situations.

Initiate regular, calm conversations with C-suite colleagues to assure top-level effort to prevent rumblings from reaching unplanned disruption and crisis levels.

Be prepared: lead the readiness, appoint people in the communication staff, and prepare online and operational facilities for immediate response to a real crisis.


Communication 33

April 3: Your Opportunity to Brief on Classic Case Studies with Eric Dezenhall – ‘Damage Control’ AuthorBonus-Points Assignment


Communication 34


Communication 35

Team 1 Chapter 11: Wendy’s Chili Team 2 Chapter 13: Exxon Valdez Team 3 Chapter 13: Pepsi Syringes Team 4 Chapter 15: TYCO Team 5 Chapter 16: Browning-Ferris Industries

Each team presents 30-minute review. Author Eric Dezenhall will give you his

feedback. Every team member receives 2 bonus points

toward her final grade in this course.


Communication 36

A common process


Communication 37

1. Who is the ‘victim’ and who is the ‘villain’?2. Is the company taking the initiative? Is it on offense?3. Is the company trying to change the focus? Change

the debate? Rally its base? 4. What is the company’s main message? Or defense?5. Is the company wrapping its argument in a

principle? Security, Safety, Privacy, Choice, Justice, Economy…?

6. Has the company apologized? If so, did that help?7. What will be the outcome? Will there be life after the

crisis? Will the torpedoed ship survive? 8. Communication recommendations? What do you

suggest for the company in the post-climax period?

38Georgetown University Corporate Crisis

Communication 3/27/2014

Victims:

Villain(s):

Event or Condition:


Communication

Disruption from the Event:

Threats to sustainability, reputation and stakeholder support:


Communication

Impact on the Company – Short and Long-term:


Communication 41

Was the company taking the initiative? Was it on offense? Was the company trying to change the focus? Change the

debate? Rally its base? What was the company’s main message? Or defense? Did the company wrap its argument in a principle? Security,

Safety, Privacy, Choice, Justice, Economy…? Did the company apologize? If so, did it help? What was the outcome? Was there life after the crisis? Did the

torpedoed ship survive?

If you were CCO of JNJ in 1982, what would you have done differently? If the Tylenol crisis happened in 2013, what would have impacted your CCO

response today? Could this positive outcome exist today? Would government regulators and

the media allow J&J to go “unpunished?” What are the lessons learned?


Communication 42

If you were CCO this company when the crisis occurred, what would you have done differently?

If this crisis happened today, what factors would have impacted your CCO response in 2014?

What are the lessons learned?


Communication 43

corporate crisis communication spring 201 4

Documents

anatomy of crisis

communication strategies

employee communication

class discussions

audience fellow class

reputation outcome

chart table

stakeholders bao targets