Showing posts with label crisis communication. Show all posts
Showing posts with label crisis communication. Show all posts

Wednesday, June 30

Bankrupting Credibility: Nobody Believes BP Anymore


When Facebook disabled the profile of Boycott BP, the reaction from 750,000 members was almost immediate. Within minutes, most people, including Public Citizen, believed a BP complaint prompted the action.

Facebook, which reinstated the content, later issued a statement that said its automated systems made the mistake. The page was reinstated after the error was discovered. Public Citizen says the statement was insufficient.

Regardless of the why, it raises interesting questions for communicators, suggesting a need for new rules governing how crisis communication is managed. And, it also serves as an indicator of how damaged the BP brand really is. Even when BP isn't responsible for attempting to censor communication, blame is automatically assigned to the company.

It's anticipated and expected, because the public expects no less from a company that has broken trust. BP has made several mistakes in attempting to control communication as opposed to managing information. It doesn't even matter if almost half of all censor incidents were created by the government. It's BP's fault.

The Rise Of The Anti-Brand, Fake Public Relations, and Instant Journalism.

Andrew Fowler suggested several steps worth considering. But any solutions have to be situational.

In the case of BP, company communicators might as well consider the site an asset. BP boycotters and BPGlobalPR actually help corral all communication about the company, providing insights into where the communication is crumbling and what miscommunication or inaccurate information might exist.

The goal isn't to control communication. There isn't much use in sharing an opinion about them. The goal needs to be focused on managing information, with an emphasis not on trying to preserve the brand (BP is well beyond that) but by clarifying factual information (and not necessarily directly).

BP does some of this well. Some of it, not so well. Some of it well. Some of it, not so well...

You may reproduce the images on the understanding that (i) any reproduction of these images will include the following acknowledgement adjacent to the image(s) used - '© BP p.l.c.' and (ii) these images will not be used in connection with any purpose that is prejudicial to BP, its officers or employees or any other third party. The images may not be sold.

From a classic crisis communication standpoint, some communicators are giving BP a "B" for hitting all the main points. Personally, I would give it an "F" and that seems pretty generous.

The reason for my low mark is simple enough. Classic crisis communication bullet points do not address several key challenges that arise when communication isn't handled properly.

The Anti-Brand. Whether spontaneous or organized by advocates with agendas, anti-brands already know the tenets of crisis communication and are well-prepared to discount every step. Any apology will be labeled insincere. Any accounting will be inadequate. Any acceptance of responsibility will not be believed.

Fake PR. Whether you borrow Fowler's term or call them Mock Brands, the general disposition is the same. These people aim to mock you and your company. Sometimes the efforts are a form of flattery; sometimes they are not. Obviously, the various fake accounts related to BP have very little to do with admiration.

Instant Journalism. While there are mainstream reporters and established citizen journalists, a crisis of this magnitude draws out people who have never been reporters before to suddenly feel compelled to cover it. En masse, handling every request just doesn't scale.

What's the remedy? As I wrote early on in the crisis, actions speak louder than words. And in this case, there were only three words tied to actions that could have helped preserve BP (and the Obama administration for that matter). What were those words?

We need help.

Imagine how different the communication might have been had this action been the cornerstone of the crisis from day one.

Skimmers would have dispatched. Booms would have been deployed. Media would have had front row seats. People would have known exactly what to do to help. Environmentalists would have been standing by. Localized emergency response crews would have been ready for multiple crises if and when they occurred. Nonprofit organizations would have coordinated economic impact. And so on and so forth.

Had this occurred, BP wouldn't even be the story and neither would the Obama administration. The story would have been the generosity of the Dutch and other countries sending skimmers. The story would have been local citizens preparing for the worst. The story would have been about a country uniting against a common problem. In sum, the story would have been about everything and everybody else except BP and except the government.

By not being the story, the damage to both could have minimized and, as a result, the respective brands preserved. Instead of a Boycott BP Facebook group, there might have been a "Help BP" Facebook group. Instead of "BPGlobalPR," there might have been an "DailyGulfHero" Twitter account. Instead of writing and reporting on all the problems, citizen volunteers documenting their own volunteer efforts, uncensored, would have quelled the need.

Neither BP nor the Obama administration seem to understand this simple truth. Action or inaction dictates brand value. Instead, they continue to make themselves the story and inexplicably tell people to sit back and rate their performance. The sheer magnitude of ego to "own this crisis" cannot be underscored enough.

They got what they asked for. You don't have to ask for it.

The first step toward a remedy for anti-brands, fake PR, and investigative journalists is to recognize that they are outcomes, symptoms that prove your actions are not aligned with your message. And knowing this, there are only four possible actions.

• Acknowledge them and let them live, unhindered. (Apple)
• Selectively interact, correcting facts but not opinions. (AT&T)
• Engage them by opening up a direct communication channel. (CBS)
• Change your actions until they no longer seem relevant or needed. (Dominos)

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Friday, June 4

Planning For Disaster: Communicators And PR Must Step Up


While my grandparents were poor by most definitions, my grandfather would go to great lengths to protect one of the last remnants of his family's possessions in the north woods town of Minocqua, Wisconsin. It was a summer cottage, for which he mortgaged his city home in Milwaukee every year in order to keep and maintain it until he retired. My uncle also owned a nearby home.

As one of the few four-season families in the area, my uncle was a natural leader. In addition to being to a small business owner, he served as a volunteer fire chief, mayor, and led teams to mark snowmobile trails across the partially frozen lake every winter. My grandfather, who was a former engineer and seasonal painter, was much the same.

Both men had experience in disaster planning. Coming from a small somewhat isolated community, it was a skill set that could not be left to other people. I even remember my grandfather putting his skills to good use when tornadoes interrupted a Boy Scout paper drive in the heart of Milwaukee. People immediately turned to him to lead.

Nowadays, there are fewer men like my uncle and grandfather, especially in urban areas. Disaster response tends to be left to professionals. But in considering the Gulf Coast catastrophe, it seems we need more citizens to understand response.

In fact, looking back on my recent guest host conversation on The El Show with Geoff Livingston, I think we might have invested some time on disaster planning beyond discussing how communicators can address unethical behavior. Communicators, even public relations professionals, need to establish a role within any disaster planning. It's vital that they do.

The Four Basic Tenets Of Disaster Planning.

1. Mitigation. Mitigation focuses on long-term measures to reduce or eliminate risk. These might include technologies or policies, set in place by companies or government.

2. Preparedness. Planning, organizing, training, evaluating, and improving activities that will ensure the proper coordination of efforts during a disaster.

3. Response. Response includes the mobilization of all necessary emergency services and first responders in the disaster area. Organized response requires a structure (leadership) and agility (creativeness).

4. Recovery. Recovery aims to restore the affected area to its previous state before the disaster. This almost always occurs after a disaster; it is the opportunity to assess where mitigation, preparedness, and response broke down.

Where Disaster Planning Broke Down With The Spill.

1. Mitigation. It seems obvious that neither the government nor BP (and subcontractors) had properly mitigated the potential for such a disaster. While policies were in place, it seems clear the regulatory agency did not have the technical expertise to oversee the procedural breakdown that led to increased risk at Deepwater Horizon.

2. Preparedness. To date, it seems obvious that the preparedness is almost non-existent. While the initial response saved most of the crew aboard the rig, neither BP nor the federal government has a plan for a large-scale coastal disaster. While this incident seems to have been caused by negligence, it strikes me as appalling that the government is largely unprepared for such a disaster.

3. Response. Given the failure of emergency response in the wake of Katrina, which was largely due to a complete breakdown in communications technology (I know because I've worked with the National Emergency Number Association, among other emergency response associations), it is perplexing that a new administration consisting of people who were hypercritical of and capitalized on Katrina would have done nothing to improve their ability to respond to a crisis. There is no communications technology breakdown this time. But there is a complete breakdown in appropriate federal leadership and agility over the response.

4. Recovery. Recovery is not simply litigation as our government has recently demonstrated as the answer for every problem ranging from the border issues in Arizona to the Gulf Coast oil spill. There is an apparent need to understand where the government's disaster planning continues to break down, not only with this administration but also prior administrations. The fundamental responsibility of any government is to protect its people — not from themselves — but from threats beyond the control of citizens. This time around it seems negligence played a role in the breakdown, but what about next time?

Where Any Communicator Can Effectively Play A Role.

Communicators, along with public relations professionals, have a real opportunity here to place a greater emphasis on tangible skills over manipulating public procedures. But to do it, they move beyond push marketing and puffery and embrace the much harder work that used to fall to people like my grandfather and uncle.

In many cases, they won't learn these skills from a textbook or building social media communities. It requires an ability to move from behind the desk, meet with and appreciate the men and women on the front lines, collect their input and consolidate it into a workable plan that anyone can follow.

More importantly, through their investigative work, communicators need to provide the oversight within their companies to point out where mitigation, response, and recovery is especially weak. Nothing needs to be smoothed over. If anything, people tasked with this work need to be as hard as nails, providing proper assessments to the executive team.

As I mentioned last week, bad PR is only a symptom of bad planning, I hope this helps move the conversation away from understanding and toward proactive responsibility. Communicators need not only be internal reporters, they can cut themselves from the same cloth as my grandfather and uncle.

Where Any Citizen Can Effectively Play A Role.

I might offer up the same advice to anyone. It seems apparent that while many local governments and some state governments have disaster response plans that we can count on, these plans are not scalable in the face of a disaster such as Gulf Coast oil spill, the aftermath of Katrina, the border breakdown in Arizona, or even the flooding in Tennessee.

Once they become too big for local and state agencies, the federal government is ill-equipped to respond beyond providing oversight. That means there is a greater need for citizens, each and every one of us, to have enough skills — like my grandfather and uncle did — to protect ourselves and our families in the wake of a disaster.

After all, if I was writing a family disaster plan today, the most obvious conclusion I would have to draw upon from the recovery efforts so far is that there are organizations doing all sorts of things that increase the risks to our health and happiness. And when their own mitigation breaks down, they do not have a plan to save you. We are on our own.

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Thursday, June 3

Considering Spin: Obama Administration


"Those who think that we were either slow on our response or lacked urgency don't know the facts. This has been our highest priority since this crisis occurred." — President Obama

Depending on whose accounting of the Gulf Coast oil spill you read, the Obama administration was either on top of the crisis from day one or it was woefully behind. The truth, as it often is nowadays, is somewhere in the middle.

The differences in how the story is reported relates to whether you include the federal government in the timeline, the Obama administration, or the President himself; whether you accept statements over actions; and whether you account for the results.

"From the moment this disaster began, the federal government has been in charge of the response effort." — President Obama

While the U.S. Coast Guard was on scene from day one, most federal agencies represented were merely overseeing BP efforts.

It wasn't until April 29, nine days after the accident and four days after the unified command inaccurately estimated the leak was spewing 1,000 barrels or 42,000 gallons a day (which was estimated at five times as much and later much more), that the Obama administration recognized the spill to be of national significance.

The reporting reveals how much of the communication would be handled from that point forward. On April 25, the unified command provided the inaccurate oil leak estimate, which included federal officials. On April 28, federal officials say BP provided an inaccurate estimate.

Meanwhile, the same press conference Media Matters uses to build its case to prove the administration was in control of the situation paints an obvious picture. The President was "following the BP oil spill in the Gulf of Mexico," the EPA was monitoring, and the secretary of the Interior accurately describes the operations as one of "anticipating," "planning," and providing "oversight."

April 29 is also the day President Obama pledges "every single available resource," including the U.S. military, to contain the spreading spill. He will visit the Gulf Coast to see cleanup efforts firsthand three days later. At the same time, almost every communication from the White House reinforces that the cleanup responsibility belongs to BP.

Almost a full month after Obama made the pledge, Bobby Jindal, Louisiana governor, said that he and other Gulf Coast governors were “taking matters into our own hands.” On June 2, Alabama Gov. Bob Riley questioned why parts of the Gulf Coast are left unprotected. On the same day, Mississippi Gov. Haley Barbour is no longer downplaying the crisis. And while Florida continues to invest in tourism advertising free unlicensed fishing weekends while it can, the fishing industry has already been called a disaster.

Worse, the Gulf Coast may no longer be the only region to be impacted. There is growing concern that oil will reach the Atlantic Coast.

And yet, during President Obama's second visit to the area on May 28, with the prospect of the Top Kill procedure working, he declared "I am the president and the buck stops with me." Shortly after the procedure failed, the President launched a public relations offensive against BP and started to see the accident as an opportunity to press for an energy reform plan.

"I'm confident people are going to look back and say this administration was on top of what was an unprecedented crisis." — President Obama.

According to a release by the Global Language Monitor’s NarrativeTracker, President Obama's confidence ought to be shaken. Overwhelmingly, the public sees the the administration was slow to respond and more than half still don't believe the administration is in control.

• 95 percent of the social media conversations characterize President Obama as "slow to respond."
• Despite what President Obama has said, 52 percent still believe that BP is in charge of the spill containment.
• Most people compare the spill to Exxon Valdez, not Hurricane Katrina, which was a natural disaster.
• The public is split in deciding whether or not Obama is hands on or hands off on this event.

So where is the middle? The federal government (specifically, the U.S. Coast Guard) was on top of the spill from day one. The Obama administration merely positioned itself as an armchair player. Politically, it seemed like the safe bet. If things went well, the administration could claim being on top of it. If things went bad, they could blame BP. The communication bears this out.

As for public perception, it has become a result unto itself. With a catastrophe this large, the only possible way the public might be confused over who is in charge is a direct result of the communication delivered by the administration. As for the President himself, his schedule suggests he is correct in that this has been his administration's top priority, but not necessarily his priority.

And now? The most obvious priority is finding the right scapegoat. Even the international press sees it for what it is, with the President's reported "rage" framed up as just another sign of weakness. BP might be responsible for the spill, but it is not responsible for a plan that reads like more spin than response.

Other Reactions Around The Web.

Welcome to the Obama BP Spin War.
Obama Begins Spill-To-Bill Pivot.
Oil-Spill Spin: Who Can You Trust? (Obama Is Not Even On The List)
• James Carville Slams Obama on Oil Spill.
• How Washington Just Worsened the Gulf Oil Spill.

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Wednesday, June 2

Making Choices: 10 Steps To Improve Oil Spill Communication


On any other day, I might pen a post much like Bob Conrad, communications officer for the Nevada Department of Conservation of Natural Resources. The oil spill is a consequence of attempting to maintain ever sprawling and increasingly complex human systems.

He's right, much like he was right to cite the 1969 Santa Barbara oil spill crisis. It's comparative in that it was the worst our country had ever seen when 200,000 gallons of crude oil bubbled to the surface and was spread into an 800-square mile slick by winds and swells. As a comparative model, it demonstrates how far we have evolved from the roots of our industrial ignorance.

"I don't like to call it a disaster, because there has been no loss of human life," Fred Hartly, president of Union Oil Co., had said in 1969. "I don't like to call it a disaster, because there has been no loss of human life. I am amazed at the publicity for the loss of a few birds."

"It is sad that it was necessary that Santa Barbara should be the example that had to bring it to the attention of the American people," reflected U.S. President Richard Nixon. "What is involved is the use of our resources of the sea and of the land in a more effective way and with more concern for preserving the beauty and the natural resources that are so important to any kind of society that we want for the future. The Santa Barbara incident has frankly touched the conscience of the American people."

By comparison, the roles seem almost reversed, with BP demonstrating it understands the consequences of its actions and has accepted responsibility to clean up the spill. Whereas the current administration for lack of a plan, has turned toward vilification.

The oil isn't the only containment that needs to be stopped. The runaway communication is equally poisonous.

Ten Steps To Improve Oil Spill Communication.

Step 1. Centralize The Spokesperson. A few weeks ago, someone else might have been better suited to be the primary speaker on the Deep Horizon Response, but today it seems clear U.S. Coast Guard Adm. Thad Allen has the compassion and captured the respect of the media. He understands that there is no time for politics. He is focused on the crisis.

Step 2. Reorganize The Unified Command Communication. With U.S. Coast Guard Adm. Thad Allen in the lead, the responsibility of communication is best placed in a cooperative role between the National Oceanic And Atmospheric Administration (NOAA) and U.S. Environmental Protection Agency (EPA), who can coordinate specific communication from other agencies as needed. There is no need to duplicate resources with multiple communication channels.

Step 3. Make BP A Principal Partner In The Response. Currently, the administration waffles back and forth from positioning BP as the response leader and public enemy number one depending on public outcry. There is no need. BP has accepted responsibility, and while its own communication seems tempered below transparency, it is exceedingly clear that the United States needs its partnership and cooperation to end the crisis. They've hired more than 20,000 people to help.

Step 4. Establish A Response Advisory Counsel. The administration should have already pooled the best scientific, environmental, and industry minds to address the crisis. They need to do it now. There are likely innovations that can be applicable in responding to the crisis, people who can provide counsel to the people on the ground, under the direction of the U.S. Coast Guard.

Step 5. Establish An Economic Advisory Committee. The full scope of the crisis has yet to be fully imagined. Some economic experts are already cautioning that the environmental disaster has enough economic consequence to cause a double dip recession as entire coastal industries have been shut down. Their warnings deserve attention.

Step 6. Save Investigations Until After The Cleanup. While some investigations will no doubt be conducted during the crisis, the emphasis of finding fault in a tragedy is a waste of resources and public attention. Rather than rally the public to smell for blood in the water, it seems more productive to channel their passion to be part of the solution. Every swipe at BP right now is a swipe at the people most capable to fund the cleanup.

Step 7. Coordinate State Action. Some point people from the Unified Command should be dispatched to coordinate regional environmental cleanup efforts with a direct line of internal communication. Given the push back on some members of the press and environmental scientists by non-BP crews, it is clear there are near autonomous groups making up their own rules. It's expected without leadership. They need to be organized and given expressed clear rules. Each state can be involved by coordinating the various local environmental groups and general public under these point people.

Step 8. Direct The Public. Fanning public anger, frustration, and outcry is useless. Instead, more effort and attention need to be coordinated to provide the public with productive action. The bigger picture, beyond political posturing, is that the country is faced with an environmental crisis with consequences that can only be guessed at. Everyday heroes are being made daily as they clean up the spill.

Step 9. Kill The Politicizing. One of the worst communication atrocities made during this crisis to date was a feeble attempt to rub the spill into the noses of those who believe in a limited government. Comments such as "See, you need us now" is a childish comparison to government interventions such as banning Happy Meal toys. This type of crisis is precisely where the government is supposed to take a leadership role in contrast to the encroachment inside our homes.

Step 10. Be Responsible Instead Of Repugnant. When a crisis like this occurs, the knee jerk reaction is to over regulate in response nowadays. Lack of regulation didn't cause the oil spill, but it seems apparent that a breakdown of regulatory oversight contributed. Responsible action would be to reform agencies after the crisis rather than eliminate their ability to function by restructuring them during the crisis.

The Gulf Coast Oil Spill is a tragedy. It is the worst environmental disaster in the history of the United States. However, let's keep in mind that the "worst" line has been crossed dozens of times before Deep Horizon. And while it is unfortunate, it is also very likely they will be crossed a dozens or more times in our future despite any regulatory bodies and safety measures put in place. That is the price of nurturing massive human systems.

Even so, while we cannot control the crisis we might face as individuals, industries, or nations, we can always manage how we react to them. Simply put, the response to a crisis need not be as tragic as the crisis itself. That is a choice. In the past, our nation has had dozens of leaders who made the right ones. Nowadays, we can only hope. But it doesn't seem likely.

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Tuesday, June 1

Lacking Leadership: Minerals Management Service


With the Obama administration facing its first crisis without a discernible opponent to discredit, House Speaker Nancy Pelosi recently offered up one solution. Blame Bush for the Minerals Management Service, which is the regulatory agency that oversees offshore drilling.

This time around, the excuse seems as desperate as her disgust over being asked whether she would donate hair to help. The reason her allegations seem disingenuous only requires a quick review of the facts.

Minerals Management Service Backgrounder

In the Gulf Coast, the Minerals Management Service (MMS) is partly responsible because it was the one agency that could have pulled the plug on the bad decisions being made. The agency didn't. Even when BP sent unusual rapid-fire requests to modify permits, the agency seemed to keep pace, approving some within as little as five minutes.

Neither BP nor Transocean has commented on the permit changes. And despite the promises of an administration to be more forthcoming and transparent, MMS declines to comment too. Perhaps nobody is talking because they all know the risks.

Sure, MMS had a track record of problems that came to light after the inspector general published a devastating report in 2008. The report revealed ethical lapses related to the MMS royalty collection program and officials at its Lakewood office who had engaged in drug use and sexual activities with industry insiders. But those problems do not necessarily lead to the crisis.

Contrary, according to previous statements from Secretary of the Interior Ken Salazar, the agency had already been beaten into submission with reprimands, terminations, and criminal prosecutions. Salazar himself took the lead in reforming what he described as a corrupt culture. But after his house cleaning, it seems Salazar failed to fix the damage.

As soon as Elizabeth Birnbaum, who recently resigned, took charge of MMS about 10 months ago, she found a demoralized agency ill-equipped to meet the new priority of renewable energy. Clicking on the link to the MMS DOI Strategic Plan seems to confirm it. The return reads "file not found."

While there is no plan, it does seem Birnbaum cared and was trying to manage the leaderless agency, funneling most of her energy into offshore wind projects in the Atlantic. And, she wasn't afraid to speak on the Gulf Coast crisis. In fact, she was preparing to testify before a congressional panel about the agency's role in handling BP's massive oil spill in the Gulf of Mexico. But Salazar's office didn't want her to testify. She resigned shortly after.

The Missed Opportunity For MMS

Despite its own negligence that contributed to the Deepwater Horizon crisis, standard communication protocol would have called for MMS to take charge of its communication much like the U.S. Food and Drug Administration took charge of the crisis created by the Peanut Corporation of America (PCA) in 2009. So why didn't it?

House Speaker Pelosi already provides the answer. Allowing MMS to become the point team on the crisis communication would have circumvented the administration's ability to deflect responsibility.

So instead of MMS (or the EPA as an alternative) taking the communication lead, the Department of the Interior all but silenced MMS before proceeding to break it up into parts. In place of a centralized communication channel, like we saw with the FDA or even FEMA in the wake of Katrina, the public is given a collection of sometimes contradictory statements about the crisis and who is in control.

Even at the special Deepwater Horizon Response Web site, it is unclear who is responsible for managing the content. It's every agency for themselves. There is no leadership.

Sure, the Deepwater Horizon Response site includes the 15 different agencies and companies that make up the Unified Command, but it does not assign any particular agency or company responsible for updates. While U.S. Coast Guard Adm. Thad Allen is now identified as the national incident commander, he was also the first to honestly admit that the federal government was not broadly "in charge."

It was this candid, honest response that prompted the American Spectator to call him the only adult on-scene commander for this disaster. Clearly, he ought to be charge if for no other reason than to stop the non-communication coming from Department of Interior, The White House, and other agencies. (Even this weekend, I received a news release from the EPA with nothing more than a visitation tally count among the President and other cabinet members.)

Why all the confusion? The reality seems to be that no one is in control of the spill or the cleanup. And the sheer lack of a centralized communication plan can only be indicative of a top-down failure to establish any centralized leadership.

The international community is just now seizing on this fact, noting that U.S. authorities took unnecessarily long to define the incident as a national disaster and failed to appreciate early enough that BP had no ready and obvious solution for stopping the leak. For them, it's all too obvious in the speeches being delivered by President Obama.

Obama seems to be waffling on whether to call BP a partner or public enemy number one. In one speech, he even drove home the point that his administration was in control but then stressed BP was letting him down as it called the shots. It can't be both. Or can it?

As investigations continue, the administration can expect the questions will become more and more difficult. The international community is already asking why the Obama administration was poised to open up more offshore drilling when they weren't confident in the regulatory agency overseeing it and without an emergency oil spill response plan.

So far, instead of answering those questions, President Obama has pledged to bring those responsible to justice. Ironically, such a move might include his administration; if not for the leak, then for the containment of it.

A special thanks to Geoff Livingston for inviting me to discuss some of these issues on his online radio show, EL Show, today. Tomorrow, we'll present some ideas on how the administration could attempt to turn the crisis communication failure around.

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Friday, May 28

Shifting Communication: Transocean Acts Under Siege


Much like Halliburton, the Transocean Web site remains unchanged by the Gulf Coast oil spill.

The most haunting page of all falls under the tab of responsibility. "At Transocean, we firmly believe that the safety of people underpins our success. Our safety vision above covers all our drilling units and shore-based facilities worldwide." And then there is the promise in big bold letters splash across the page as the header.

"Our operations will be conducted in an incident-free workplace, all the time, everywhere."

It's not just a headline by Transocean. It's also the company's vision statement.

Just off the front page, the only section mentioning drilling rig Deepwater Horizon is under news releases. All of its communication there has been a steady stream of releases, with an emphasis on the event from April 21 to April 26. April 26 marks the day that Transocean communication decisively changes.

The Communication Snap At Transocean.

What changed? Transocean shifts from crisis communication to increasingly defensive protectionism. After sending a message to investors that the total insured value of the rig is $560 million on April 26, releases shift to a limitation of liability petition for approximately $26 million as a necessary step to protect the interests of its employees, its shareholders and the company.

After that decisive turn, most communication becomes reactionary to rumors and the news reporting on those rumors, including the alleged distribution of any incident response forms that promised cash for cooperation. Four days later, Cheryl D. Richard, senior vice president of human resources and IT, announces her pending retirement.

The next and last communication, on May 25, responds to what it calls erroneous reports relating to its "shareholders' approval of a dividend and its intent to avoid liability arising from the Deepwater Horizon incident or to profit from such incident." The release goes on to say that "Transocean will honor all of its legal obligations arising from the Deepwater Horizon accident."

A statement seems to contradict its limitation of liability petition. Meanwhile, the company's online newsletter Beacon, appears frozen in winter 2010, filled with letters of praise. It's biannual employee publication is frozen even earlier; the last available issue published in 2008.

Coincidently, perhaps, 2008 also seems to represent a shift in company behavior. Between 2008 and 2009, Transocean went from a hot stock pick to a company that seemed to move away from the aforementioned safety-laced vision. The company had five management appointments, two vice president appointments, and a change in the nation where it is incorporated. It moved from the Cayman Islands to Switzerland.

The Transocean Connection To The Spill.

For those who might not know, Transocean was the owner and operator of Deepwater Horizon. As such, Lamar McKay, the president and chairman of BP, has alluded that the blame belongs there (despite BP accepting responsibility for the cleanup). Transocean CEO Steve Newman responded by saying it was not the time for finger pointing ... before attempting to shift blame away from his own embattled company.

If there is any truth to some of the stories surfacing in papers today, the Deep Horizon incident plays out like many construction contractor-subcontractor relationships.

Subcontractors sometimes drag their feet, which places pressure on the supervising contractor to exert influence. In one summary offered up by the Huffington Post, which criticizes the absence of two key testimony witness, it seems to be the most logical scenario, with "Donald Vidrine, BP's 'company man,' overruled the rig's chief mechanic and driller and pushed to speed up the process by remove the drilling mud faster to save BP money on the day of the tragic explosion."

It would make sense, given many of the initial delays were related to the Halliburton slowdown. However, there is one write-up that smacks of perception. If oil rigs are anything like ships, BP could probably not overrule a chief mechanic and put Transocean at risk unless the owner-operator was predisposed or ordered to follow contractual obligations and ignore the company's eroding vision to allow safety to lead to success.

The Psychology Of Influence And Erosion Of Communication.

If you worked as a pizza delivery driver and the boss told you to drive 20 miles per hour over the speed limit to shave 15 minutes off the delivery time, you might be inclined to say no. Some people might even say hell no. On Deepwater Horizon, Transocean said yes.

Once again, it seems Milgram was right. The question that ought to be asked is what convinced a chief mechanic and driller to change his mind? Was it mounting pressure from BP? Was it the lack of communication or a direct order from his company? Or was it the authorization to proceed from the regulatory agency's approval to proceed?

Answer that question andprimary party responsibility seems to land squarely. However, that is not to say the balance of participants are to be exonerated. Guilt doesn't wash off as well as oil.

From the perspective of communication alone, Transocean seems to have the most to lose. It's clearly the most defensive, sometimes flailing about. There must be a reason. Sometimes those actions are the sign of inexperienced communicators or crisis counsel. Other times, it's merely an admission that the company hasn't been observing its vision for the better part of two years.

We'll pick up on our crisis communication evaluation next Tuesday. Mostly, we're just thrilled the real priority, plugging the leak, seems to be working. In the interim, consider some other worthwhile perspectives.

• Geoff Livingston pinpoints where BP communication becomes muddled. It's an excellent point-by-point resource primer.

• Patrick Kinney of Gaffney Bennet Public Relations talks to Lynn Neary about BP's public response to the Gulf oil spill. Kinney worked for Ogilvy Public Relations when it helped BP rebrand itself as "Beyond Petroleum."

• Chris Maloney pens one post that pinpoints what BP seems to be doing right since taking full responsibility for the spill. His writeup is a bit more tempered than those who gave BP a B on crisis communication. (A "B," really? Not in my class.)

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Thursday, May 27

Communicating Zip: Why Halliburton Is Quiet


When you visit the Halliburton Web site, one of the world’s largest providers of products and services to the energy industry, business continues as usual.

The board declared a 2010 second quarter dividend of nine cents ($0.09) a share on the company’s common stock, the Gulf of Mexico remains "one of the world's most prolific producing areas," the company was busy presenting at the 2010 UBS Global Oil and Gas Conference, and the deep water drilling section of the site concludes "our experience speaks for itself."

Mostly, with exception to the prepared statement (one release away from being bumped off the home page) that was delivered by Tim Probert, president, Global Business Lines and chief Health, Safety and Environmental officer, Halliburton, the oil spill in the Gulf of Mexico already reads like a memory rather than a current event. It's not.

The Halliburton Connection To The Spill.

Halliburton connection to the crisis is that it was responsible for sealing the well. The casing to seal the well was installed several days before the explosion. (CNN provides one of the better investigation time lines for April 20, if you are interested.)

What makes the casing significant is most accounts point to gas leaking through the casing just hours before the explosion. This seems to be supported by BP briefs as rig workers tried to close valves on the blowout preventer at least twice.

However, there are four points to consider related to the casing. Only one point falls squarely on Halliburton.

1. BP's decision to install a single barrier option made the best economic case.
2. There are some contentions that the Halliburton work was taking longer than usual and possibly improperly constructed .
3. BP seems to have made a decision to perform some tasks related to the last plug in reverse order, something that would require MMS approval.
4. BP officials had made a decision to run only six of 21 tests to ensure the drill pipe was properly centered; an uneven drill pipe could have contributed to the instability of the installation.

The Halliburton Postion And Communication Strategy.

The Halliburton position is that it was following Transocean’s orders (as dictated by BP) and is "contractually bound to comply with the well owner’s instructions on all matters relating to the performance of all work-related activities." It has simultaneously defended its work while also claiming it is premature and irresponsible to speculate on any specific causal issues.

In terms of ongoing communication, other than saying it is cooperating with investigations and releasing its investigation statement, the company is silent. While Halliburton is providing some intervention support to help secure the damaged well and planning and services associated with drilling relief well operations, details are absent.

Public relations professionals and crisis communicators generally hate this communication approach. The reality is that such little communication from Halliburton is indicative of a subcontractor role. Crisis communicators don't generally teach it, but subcontractors generally attempt to position themselves as subordinates.

The benefit for the subcontractor is limited responsibility for the communication. The benefit for the contractor is greater message control. In this case, Halliburton has mostly used its communication to send a message to BP and Transocean. That message is clear: it's your show unless you try to toss us under the bus.

Halliburton Communication Overview.

• Of the three companies, Halliburton is in the best possible position to escape the bulk of the backlash. It seems to know it, because even if the investigation shows its work may be the primary cause, the primary cause on its own did not result in a disaster. Several decisions leading up to and after the installation seem to have led to significant lapses in safety.

• The subcontractor communication strategy — based on the observation that the general public is not the customer — is becoming an arcane practice. While subcontractors have been traditionally exempt from the most rules of communication, the general public has become increasingly critical of subcontractors since the advent of social media.

• There are still weaknesses in Halliburton's communication. Given prior public exposure, the public is beginning to remember its name as a controversial and untrustworthy corporate citizen. Further, the excuse, "just following orders," seems as thin as medical personnel who relied on it during another crisis we covered two years ago.

• The most challenging concept for communicators to grasp is that the greatest threat to Halliburton is not tied to public pressure. It is only tied to how future contractors perceive their communication and cooperation during the crisis.

Since the company's survival rate is mostly based on how contractors view their cooperation, it seems likely that this company will once again survive controversy while employing a situational communication strategy that most communicators would not recommend. What could it do better?

Even for a subcontractor remaining mostly silent, Halliburton could have shored up communication on four fronts. Among them: communicating policies to ensure safe working conditions despite contractor "orders," avoiding any speculation in the testimony as opposed to what can only be called selective speculation, providing BP updates to roll on their site despite their own silence, and better communicating its role in cleanup efforts as a BP partner in being part of the solution.

In 2009, Halliburton’s total cash and in-kind donations amounted to $572 million. It would only make sense to earmark some of these funds toward a cleanup effort the company is at least partly responsible for.

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Wednesday, May 26

Managing Crisis: Bad PR Is Only A Symptom


Any time a crisis involves a natural disaster, environmental catastrophe, or drawn-out tragedy, there is only one point of discussion.

When is it going to stop?

Transparency? It doesn't matter. Who is at fault? It doesn't matter. Is the federal government doing enough? It doesn't matter.

Sure, those questions are bound to be asked and asked again. Thirty-seven days is a long time to be in the midst of a crisis with multiple events. And during that time, when specific event coverage can no longer hold viewer interest, investigations start and second tier questions bubble up. But all stories always come back to that singular question. When is it going to stop?

It's the primary reason that for any communication offered up by one of the world's largest energy companies, it always circles back to live shots of oil spilling into the Gulf of Mexico from the ocean floor. It always ends with oil washing up on the shore. It always comes back to the impact on animals and sea life or the disruption of life for residents who live within the path.

This isn't "Obama's Katrina" as some people like to call it. Katrina was over, from the time it was upgraded to a tropical storm, in five days.

The oil spill is not an event. It's multiple events.

If there is one fatal flaw in the communication strategy by BP, the Obama administration, and dozens of other vested and guilty parties, it is that they have neglected to see the obvious. This crisis is not a singular event. It's a multiple event crisis, with each event requiring a different set of answers for first tier questions.

• Provide updates and estimates related to the time and date of the event.
• Determine the what, when, where, how, and why.
• Determine who will be involved and to what extent.
• Determine the public or environmental risk of each event.
• Determine the extent of any property damage and loss of life.
• Determine which authorities will be on the scene of each event.
• Estimate and create action plans when each specific crisis will be resolved.
• Keep providing updates, with any positive outcomes, until it is resolved.

Isolating each event related to the crisis is critical if anyone hopes to manage it. Otherwise, the culmination of unrelated events will overwhelm any singular or tag team entity much like Toyota's sometimes unrelated recalls that eventually added up into a company that lost its way.

As a visual, the greater mass of the oil crisis might be likened to a giant blob that BP is attempting to hold up on its own while other vested parties stand by hoping for the best. It's not possible. Crisis and communication blobs do not act like solid mass. They act more like oil. It slips. It drips. And eventually it will coat everyone involved. It doesn't matter who gets more soiled.

Instead, the entire crisis needs to be broken up into parts. There is the leak, which was the initial cause of the crisis. There is the oil that has already seeped into the ocean, killing wildlife, damaging fishermen, and halting tourism. There are scores of smaller events that impact specific ecosystems, local communities, and residents.

The first tier priority is to stop the leak. Until then, nothing else matters.


The second tier, which occurs simultaneously, is to contain the spread of the oil and disperse it. BP is managing this effort, but relying on support from the Coast Guard and hired local fishermen. The results to date are mixed, with some unexpected consequences to the individuals exposed to chemicals.

The third tier are the dozens of events that occur anywhere oil washes up on shore. BP is attempting to mange this aspect of the spill as well. It's clearly not working, with impacted states beginning to take the heat for not doing enough.

A reorganization of the entire process is badly needed. BP clearly needs to focus its energy on stopping the leak. The federal government needed to and still needs to step up responsibility and take action on mitigating the the impact of the oil that has already escaped instead of attempting to armchair quarterback the scene with conflicting messages. And local state governments ought to have taken the lead on individual events, with support from various environmental groups, to keep the beaches clear and clean up as the oil made landfall.

Sure, BP could still act as consultants on the second and third tier events, increasing its presence as each event is resolved. And they ought not to be acting alone. Some of the companies that have a partial responsibility are all but silent on the issue.

And the blame game? Who cares about that?

Considering the amount of oil that has spilled into the Gulf Coast, the top kill solution (if it works) is only the beginning of the environmental events to come. The blame will eventually come to light as investigations continue. What will also be the subject of great debate is why the federal government sought to look like it was in control early on, but then demonstrated only a presence.

Public relations alone cannot solve such a crisis alone. Neither can the various boycotts. If anything, boycotts could make the situation worse despite the reasons some people say to move ahead.

Healthier ways to participate in the crisis at this time include any number of efforts. One beneficiary of a satirical Twitter account BPGlobalPR is to raise funds for the Gulf Restoration Network. The boycotts, if any, can wait until after the spill.

Public relations is always reliant on the actual plan.

When any plan to deal with a crisis is bad, the symptom is improper communication. For its part, BP has attempted to keep communication channels flowing, but it is clearly holding back. They seem to be focused on a singular thought that if they fix everything and then prove themselves to be only partly to blame, then they may be able to justify the clean green logo.

However, as Geoff Livingston points out, that is not the case. He writes that the collective "crisis PR has been terrible with missteps on resolution, horrific transparency on possible solutions, false accounting of actual daily oil spill amounts, the policing of beaches to prevent media reporting, bickering between BP and the EPA, dispersants’ negative impact, a new climate bill that endorses further off-shore drilling, 19 new off-shore drilling licenses since Deep Horizon, etc., etc., on and on."

He says the crisis might be insurmountable for the company. I'm not sure yet, but only because BP is much more than BP. BP is Castrol, Arco, Aral, am/pm, and even the Wild Bean Cafe. It's also a leader in biofuel technology. It's investing in solar technology. It's investing in wind. It's investing in emerging coal conversion technologies. And the list goes on.

You won't read about many of these efforts for the time being. BP is smart enough to keep the focus where is belongs, but there is more to the company than meets the eye. Where it is less adept, obviously, is in its ability to work beyond its internal sphere. Perhaps they think they are too big to do that nowadays. But they are not the only ones.

Generally, in the past, sometimes the federal government would be slow to take charge and delegate a national disaster. But ultimately, the federal government would. This time around, the crisis plan matches the PR plan. Every stakeholder in the oil spill crisis has its own message. And while it is said in many different ways, the underlying theme is "not me."

Other voices around the Web with a focus on communication.

• The Dirty Business of BP's Corporate Reputation Clean Up by Jennifer Janviere.
Its Fake Twitter Stream Has Twice the Followers of the Real Thing by Jim Edwards
How Not To Get “Brandjacked” Like BP Global PR by Olivier Blanchard

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Tuesday, April 20

Swirling Communication: A New Ning Taste Test


What's in the promise of a lollipop? Something sweet? Something sour? A little swirl of both?

Messages are often like that. And Jason Rosenthal, chief operating officer at Ning, Inc. (Ning), which is a platform that once allowed people to develop their own social networks for free, provides a near perfect illustration of a candy-coated message that only looks sweet on the surface of a plastic wrapper. Let's open it up.

Hi Everyone,

1. Flavor: Sounds sweet. Tastes sour.
2. Aftertaste: Most networks only post salutations when things are bad. Very, very bad.
3. Verdict: By everyone, Rosenthal means people who pay and 60 percent of employees who still have jobs.

As many of you know, we made a decision yesterday to focus 100% of the company on enhancing the features and services we offer to paying Ning Creators.

1. Flavor: Sounds sour. Tastes like unsweetened cocoa.
2. Aftertaste: Surprisingly bitter about the reaction to date.
3. Verdict: Ning has no empathy for anyone who doesn't pay. It's a brave new network.

The tens of thousands of you who already use our paid service represent over 75% of our traffic, and we’ve heard repeatedly from you ways that we can deliver a killer service to help make your Ning Network more effective.

1. Flavor: Sounds sour. Tastes like orange peel.
2. Aftertaste: Did he really call Ning a killer service after killing the service?
3. Verdict: Ning has/had 2.3 million networks. It intends to keep a small percentage of hundreds of thousands.

Some examples of things we are working on that you’ve asked for include new APIs, a new mobile experience and new advertising and revenue opportunities.

1. Flavor: Sounds sweet. Tastes laced with MSG.
2. Aftertaste: Chemically altered air, with a hint of chalky residue.
3. Verdict: There will be more space for new programming features once the deadbeats who made us popular are gone.

As part of this change, we’ll be phasing out our free service. On May 4, 2010, we will share with you all of the details of our new offering, including features and price points, through a series of blog posts, emails, and conference calls.

1. Flavor: Sounds fresh. Tastes stale.
2. Aftertaste: As dry as coarse sand.
3. Verdict: They've been plotting the demise of freemium services for almost two years; spam to follow.

We recognize that there are many active Ning Networks for teachers, small non-profits, and individuals and it’s our goal to have a set of product and pricing options that will make sense for all of them.

1. Flavor: Sounds sweet. Tastes metallic.
2. Aftertaste: None, beyond utter numbness.
3. Verdict: It's alway pointless to sound altruistic when you plan to squeeze blood from stones.

For Ning Creators using our free service who choose to move to another service, we will offer a migration path and time to make that change. We will still continue to allow free trials and test networks on the Ning Platform.

1. Flavor: Sounds hearty. Tastes like nine parts water.
2. Aftertaste: A hint of ice cold chicken stock.
3. Verdict: The moving truck will be here soon so we can make room for transient renters.

We look forward to talking to you further on May 4th.

1. Flavor: Sounds like peppermint. Tastes like uncrushed pepper.
2. Aftertaste: Acidic, causing indigestion.
3. Verdict: They haven't figured out what to say, but someone is hoping people cool off by then.

Jason Rosenthal

1. Flavor: Sounds savory. Tastes like an imitation.
2. Aftertaste: Sometimes the messenger is the message. And Rothenthal isn't a co-founder.
3. Verdict: Given his experience being on the acquired end of acquisitions, the writing has been on the wall for almost two years. Marc didn't write this one for a reason.

Ning is no more. At least not the Ning you knew.

There is much more to the story, enough to constitute a living case study as it seems pretty clear the company's communication is already past the expiration date. No one seems capable of talking their way past the plastic wrapper. It seems obvious someone wants the company primed up and ready to sell. But there is a good chance all these plans will backfire.

After all, Ning doesn't seem to consider how often paying Ning social networks recruit new network members from non-paying networks. And, in addressing the future migration solutions, they've already set themselves up to break another promise. They know any such move will hardly be seamless. In the meantime, here are five more voices.

Re-Align-Ning: Is “Free” Eroding? by Doug Haslam
Ning and Customer Betrayal by Valeria Maltoni
Ning Reneges On Its Core Promise, Shatters Customer Trust by Shel Holtz
Traffic Isn’t Revenue: Twitter and Ning Reach Different Crossroads by David Crotty
• The Free Internet Loses Another One: Ning by Alexa Salkever

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Tuesday, April 13

Closing A Case Study: Tiger Remains Virtually Unchanged


Not everyone believed that Tiger Woods might escape relatively unscathed despite departing from the traditional tenets of crisis communication. But the outcome was already set. When one aspect of a brand is large enough, all other aspects can be spun away leaving the core unchanged.

At his core, Woods is a golfer. And as he walked from the 11th green to the 12th tee, men and women of all ages rose by the hundreds and greeted him with a warm, crackling roar in the backwoods. Never mind the back story.

All Woods had to do is prove he still had what it takes to put the ball in the cup at the 2010 Masters Tournament. And by all accounts, he did just that, finishing fourth along with K.J. Choi.

Suddenly, no one much cares whether the Rasmussen Reports found only 43 percent regarded the golfer's public apology as sincere. And hardly anyone will remember the creepily exploitive Nike advertisement that accompanied his return to the tee.



No matter what you thought of the affairs or how they came to light, Tiger Woods is still a professional golfer whose achievements to date rank him among the most successful golfers of all time. And since his other exploits are unrelated to his golfing career, none of what he did has any affect on that fact beyond changing how he is presented as a brand.

The loving husband image is gone, but the guarded golfer lives on.

If public relations professionals underestimated anything about Woods, it was how much his brand was related to what he did on the golf course as opposed to off of it. Sure, some people felt he was big on selling himself as a family guy. But most Americans only know him as a golfer who putted against comedian Bob Hope on national television when he was 2 years old.

For those preplexed by it, the Fragile Brand Theory sheds some light on the subject. Some people like Tom Cruise crash for far fewer transgressions while others, like Woods, won't.

Public perception plays the role of setting expectation as, for whatever reason, the public saw Cruise as a package with his boyish charm turned “rugged good looks, flashy smile, and three Oscar nominations.” Actor had equal weight or even less weight than all the other messages that revolved around him. Woods, on the other hand, had two huge attributes: private and golfer. As long as those remain in tact, Woods will remain in the game.

Sure, some brands bolted, but only those that enjoyed those lesser messages. Nike, on the other hand, had no qualms about keeping him. Woods is an athlete. Nike is about athletes. The only prerequisite Nike has is that the athletes are good. Had Woods finished 30th or if his infidelity had something to do with steroids or sports wagering, then they would be less inclined to stick with the cooperative brand relationship. It's about that simple.

That still doesn't excuse the ad as a "Just Don't Do It" moment.

Sure, it's creative. There is no mistaking it as divergent thinking. It takes a wild twist of thinking to get a golfer to surrender audio tapes of his dead father to overlay on top of his near expressionless, somewhat brooding likeness. I don't have any reservation saying it would have never occurred to me.

All that aside, it's an ad that only advertising and public relations professionals would like. For most people, they just walked away from it confused or disgusted.

THAT is the measure of an effective advertisement. It's never about what the ad gurus and communicators think. It's always about what the public, specifically the intended audience, thinks. The question isn't whether it's creative. Creative is easy.

The questions are: Does it make you want to like Woods and Nike? Does it make you want to buy shoes? Did Nike learn anything? I suspect it learned that other than the parodies, the Nike ad helped make the entire sordid affair seem old.

And if that was the intent, they did a fine job. If the intent was to sell Nike products, it fails twice. It doesn't make anyone want to buy a product. And while it shows Nike will stick by Woods, it disrupts the Nike brand in that no one ever anticipated the company would would fund the production of a tasteless, despite being creative, commercial. Yawn.

See what I mean. It's a tired tale. Case study closed.

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Wednesday, March 31

Traveling With Colleagues: How Twitter Works

There is not much to be seen near Valley Wells Station along I-15 in California. The closest exit is an unincorporated community called Cima, but so few people live there that has been classified as a ghost town.

It was also along this unpopulated stretch of desert highway where we experienced a blowout. The initial impact was jarring, as the back mud flap scraped along the highway at slightly more than 70 miles per hour, enough to wake me up from a light nap. I immediately hit the hazard lights and helped guide Kim from the fast lane over to the shoulder.

Once we made it, I wasn't too worried. Even after surveying the damage and discovering I couldn't do the job alone (the tread had lodged itself between the tire and back bumper and the spare was too low on air to use safely), I was confident enough. Having recently renewed our AAA membership, the best would be a short wait with two travel-weary children (unless the car was deemed inoperable).

The unintended benefits of Twitter.

Before deciding on the best way to divert their attention, I mentioned our situation on Twitter (and Facebook via Twitter). "Whoa, we just had blow out on I-15 headed home," I wrote. And then, something unexpected happened.

One of our clients, Jay Shubel, CEO of a credit card processing company, gave me a call. He offered more than words of concern. He asked if we needed a rescue, saying they were more than willing to drive two hours or so to pick us up. (His executive vice president added on Twitter that I was too valuable to leave stranded in the Mojave Desert.)

While this wasn't the first time Twitter has proven itself useful during a personal crisis, the gesture touched us. It didn't matter that AAA delivered on its promise when the mechanic from Baker arrived well under the 45-minute expectation set by the dispatcher. It was still nice to know that people do more than listen on Twitter. They're willing to be proactive in offering help.

Crisis communication plays out in personal life too.

Naturally, we could have called other family or friends if we needed a rescue too. But Twitter also proves to be a useful tool, allowing you to travel with a unique connection to colleagues. In this case, it was especially nice to know that if we had any additional problems during the remaining 90 miles, everything I say about Twitter would be proven true. You get out of it exactly what you put into it.

There was another lesson to be learned too. Technology aside, crisis communication doesn't have to exist exclusively in corporate settings. Communication plays out daily. Here's how we managed ours:

1. Assess the situation. Emotional reactions are useless and detrimental. Stick to situation analysis, with an emphasis on gathering facts. You need to know where you are in order to plan a course of action.

2. Determine the impacts. In this situation, the best case scenario was having a mechanic assist and then slowly returning home on the spare. However, alternative plans could have included another night away or asking friends for help. While we had to wait for all the facts, we had already narrowed our options.

3. Synchronize messages for the audience. Make no mistake that almost every situation has an audience. And for my wife and me, our audience was our children. If we couldn't agree on a course of action and communicate to them based on their needs, even 15 minutes could be a disaster. They needed assurance that the situation was under control and there were multiple solutions.

4. Designate spokespeople. Sometimes the messenger is the message. While my wife is a seasoned communicator, the kids tend to turn to me when there is uncertainty and her when they are injured. So, instead of allowing them to become impatient, I set their focus on the raw video footage of their vacation while we waited. It didn't matter that I shot more stills than footage. I had just enough to make the wait a positive experience.

5. Collect feedback and adjust. Since the kids were satisfied watching the footage, there wasn't any need to adjust. But there could have been. I had alternative ideas in the works (just in case) to keep them engaged.

Crisis communication doesn't have to be elaborate to be effective. In most cases, it amounts to a series of steps and situational decisions, with enough flexibility to allow for those moments when things do not go as planned. Even better, relying on these five simple steps helps to ensure that life doesn't happen to you. You're an active participant who makes reasoned choices.

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Monday, February 15

Selling Cars: Transparency Helps, Except Toyota


"Stores that fully merchandise their inventory stand out from their competitors, connect with shoppers, and position themselves to win more than their fair share of the deals." — Michael Page, vice president of advertising products, Cars.com

The assessment by Page comes out of an in-depth analysis of Internet merchandising on online shopping behavior presented by Cars.com at the National Automobile Dealers Association Convention & Expo. The study found that cars advertised with multiple photos, descriptive sales copy, and a competitive price capture more consumer interest. How much more?

• Competitive prices received 191 percent more page views and 263 percent more contacts.
• Pages with 11 or more photos received 175 percent more page views and 127 percent more contacts.
• Certified manufacturer logos received 18 percent more views and 34 percent more contacts.

Despite findings that tracked more than 230,000 listings over two years, 7 percent of dealerships list without a price, 13 percent without a photo, and 13 percent with no sales copy. Beyond cars, the study validates that consumers respond better to transparency — they require a more detailed account of the vehicle than if they were shopping for the vehicle in person.

The Cost Of Crisis For Toyota

Of course, none of this counts for Toyota. One survey shows that as many as 27 percent of would-be Toyota car purchasers will longer consider the manufacturer. This is six points lower than the initial recall.

As mentioned last week, Toyota acted too fast in making promises for improvement. Specifically, it hadn't identified more problems across scores of vehicles. Most recently, Toyota recalled 8,000 Tacoma pickups due to possible cracks in a common drive shaft component.

Its recall page now lists 12 models, dating back to as far as 2004. Yet, Toyota continues to run its Super Bowl advertisement that assures consumers that the recall is related to a slip in safety standards in recent days. If recent days is a relevant term, then Toyota's problems may have begun almost 2,000 days ago.

Toyota is also running an aggressive Google campaign, with copy that undermines its own crisis efforts. The Google ad reads "Toyota takes care of its customers Read the FAQs at Toyota.com" despite mounting evidence to the contrary.

There is increasing consumer and expert sentiment that suggests the crisis is becoming unrecoverable despite the recent pledge from Jim Lentz, president and COO of Toyota Motor Sales, U.S.A., Inc.

On a positive note, the company has adopted one of our suggestions: a top-to-bottom review of every process related to quality in design, production, sales and service. This should have been the direction that Toyota took on day one of the recall. Why the advertising message hasn't aligned itself with the pledge is anybody's guess.

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Wednesday, February 10

Managing Crisis: Silence vs. Social


"We are not eliminating any medical benefits," Rob Stillwell, spokesman for NV Energy, told the Las Vegas Review-Journal. "That's all I can say on the record."

There is a reason NV Energy cannot discuss its decision to place a cap on contributions to employees' retiree medical plans: textbook public relations. Regulated companies are almost always silent in the midst of union contract negotiations.

Unions are not.

Some 200 union workers rallied in the rain yesterday to protest planned reduced health care benefits for NV Energy retirees and cutbacks in the utility company's work force. But the traditional pickets are only one piece of the union's communication program. IBEW Local 1245 has launched a Web site and a Facebook page, aptly titled Shame On NV Energy.

Paid advertisements help drive traffic to the site. Banners were placed on the The New York Times several days ago. It seems the communication is aimed at would-be investors considering the company after it reported a profit, credited to a 6.1 percent increase in Southern Nevada's general rates. Even without the rate hike, NV Energy was already delivering the most expensive energy in the mountain states.

The union also seems especially irritated by the changes in retiree compensation plans because it was hopeful that NV Energy would be investing in a new transmission line and receiving $138 million in stimulus funds, which Senator Harry Reid claims as a feather in his cap. Instead, the union was surprised by a planned cut in retiree health benefits and the closure of offices in Las Vegas, Elko, Yerington and Carson City.

The cuts are likely a consequence of NV Energy's planned move into renewable energy. In its most recent Integrated Resource Plan approved by the Public Utilities Commission of Nevada, NV Energy will be spending approximately $2 billion to purchase and invest in new renewable energy by 2015. The emphasis is on solar, wind, and geothermal.

Recent announcements in its moves toward renewable energy all but drown out the union protest. However, that does not mean the complaints are falling on deaf ears. Since Monday, the Facebook account has tripled as consumers, concerned about energy prices, join the retirees. Like many utilities, the answer is never to reduce rates but to reduce consumption, they say.

There is also speculation over the resignation of the company’s chief financial officer and treasurer just days before what would otherwise be good news. Speculation is commonplace, given the timing and lack of any specific reason.

The story raises several interesting questions about social media and the current state of media. One of the most pressing has less to do with message management and more to do with message control, which social media is often credited in rectifying. However, in this case study, it seems social media makes communication a crapshoot.

The success of IBEW communication relies on nothing more than drawing attention to the topic. The success of NV Energy communication seems much more to do with talking more about everything else, as there is no mention of cuts on its Web site or toe test on Twitter.

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