Tag Archives: crisis communications

When “Sorry” is not the hardest word for a CEO

27 Friday May 2016

Posted by in Crisis

≈ 1 Comment

Tags

, ,

sorry-300x212

When Elton John wrote the song “Sorry seems to be the hardest word” probably he didn’t have in mind a CEO trying to find the right words to apologize. However, Elton John’s song describes the agony and the psychological situation that a CEO finds himself/herself during a crisis.  During 2015 several CEO’s were obliged to express an apology to their customers and stakeholders as a result of failures and misconduct of their companies.

The intention of this article is not to criticize whatsoever the practice of the organizations but to demonstrate the importance and the value of a sincere apology.

You may find below some of these apologies that CEO’s expressed in 2015:

In September 2015, the former CEO of Volkswagen AG, Martin Winterkorn, apologized for the automaker having installed software in its diesel cars to allow the vehicles to pass emissions tests by decreasing emissions when the vehicle detected it was undergoing testing but otherwise pollute at amounts well beyond legally allowed limits. Winterkorn resigned from Volkswagen on 23 September 2015, several days after an emissions cheating scandal was revealedIt was definitely a difficult year for the German automaker.

NVIDIA’s CEO apologized for the GTX 970 memory controversy however he expressed his annoyance saying that “Instead of being excited that we invented a way to increase the memory of [the card], some were disappointed that we didn’t better describe the segmented nature of the architecture for that last 1GB of memory.”

The Keurig Green Mountain CEO apologized for the company’s decision to use DRM in new coffee maker to lock out refill market but his apology was not received by all media  in a positive way.

Peter Fankhauser, Thomas Cook CEO, said about the death of  two children at the Louis Corcyra Beach Hotel, in Corfu, in October 2006: “It took us nine years to correct the mistakes of the past and to do what everyone would have expected of us; treat the family with the respect and empathy they deserve.”

Lululemon’s founder and former CEO Chip Wilson took responsibility for the fat-shaming comments he made in a 2013 television interview.

The CEO of Takata Corp., the Japanese airbag maker at the centre of a defect scandal that has resulted in recalls of more than 33.8 million vehicles apologized to “everyone” over the scandal. Shigehisa Takada apologized to shareholders at their annual meeting. He then faced media questions, bowing in apology both before and after the news conference. “We apologize deeply for the great amount of concern and inconvenience we have caused to everyone,” he said.

The CEOs of Whole Foods apologized for overcharging customers and offering free food to people in return. Investigators found Whole Foods locations in New York City “routinely overstated” the weight of pre-packaged contents and overcharged customers, according to an announcement by the city’s Department of Consumer Affairs. “Straight up, we made some mistakes. We want to own that and tell you what we’re doing about it,” Walter Robb, co-CEO of Whole Foods Market said in a video that Whole Foods published.

The top executive of the Napa Valley Wine Train contacted a predominately African-American women’s book club and apologized for the removal of 11 of its members from one of its trains after several passengers complained the group’s loudness was negatively impacting their experience. “The Napa Valley Wine Train was 100 percent wrong in its handling of this issue,” said wine train chief executive officer Anthony “Tony” Giaccio. “We accept full responsibility for our failures and for the chain of events that led to this regrettable treatment of our guests.”

The merger between United and Continental airlines appears to be hitting the seven-year itch a few years early, as new United CEO Oscar Munoz began his tenure acknowledging the mega-merger may not have been such a good idea after all. United began its regrets tour on the day of the official fifth anniversary of the creation of United Continental Holdings – by taking out ads in eight newspapers around the country. The ads feature Munoz apologizing for failing to meet customer expectations and vowing to improve. “This integration has been rocky. Period,” he tells the WSJ. “We just have to do that public mea culpa… The experience of our customers has not been what we want it to be.”

The chief executive of Reddit has apologized to its community of users for actions that led to an embarrassing revolt which took down some of the social bookmarking site’s largest communities, particularly video gaming forums that drive a good deal of the site’s traffic. “We screwed up,” Ellen Pao said today. “Not just on July 2 but also over the past several years.”

Konami apologized to fans for causing anxiety about its games and how they do business especially in the consoles segment. The rumours of the departure of the legendary Creative Director Hideo Kojima, the cancellation of the anticipated Silent Hills and the appointment of a new, mobile-centric CEO, provoked speculations and anxiety among Konami’s stakeholders.

HSBC CEO Stuart Gulliver has issued a statement offering his “sincerest apologies” after the bank was accused of helping clients conceal their identities to avoid paying taxes on deposits. The apology was printed in British newspaper adverts. The bank’s Swiss private banking arm has been accused of knowingly aiding thousands of individuals evade taxes and break other financial laws. “We have absolutely no appetite to do business with clients who are evading their taxes or who fail to meet our financial crime compliance standards,” Gulliver said.

Twitter CEO Jack Dorsey apologized to developers for past years practice. In reference to the years when Twitter first courted developers, only to then cut off certain features as it grew and tried to find its own business and platform feet, Dorsey said: “Our relationship with developers got confusing, unpredictable. We want to come to you today and apologize for the confusion.”

The CEO of Office Depot has apologized for a store’s refusal to print a pro-life flier. The office supply store received complaints of religious discrimination from customers after its rejection of the flier. “We sincerely apologize to Ms. Goldstein for her experience and our initial reaction was not at all related to her religious beliefs. We invite her to return to Office Depot if she still wishes to print the flier,” Roland Smith, chairman and chief executive of Office Depot, said in a statement.

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

Advertisements

«Oops, my business partner is a fraud…»: Issues and crises caused by business partners

23 Monday Nov 2015

Posted by in Crisis

≈ Leave a comment

Tags

, , , , ,

fraud1

A month ago, a London Stock Exchange listed software company was in disarray as both the CEO and the CFO resigned after disclosing details of financial falsification and misrepresentation to the board only days after denying any wrongdoing. The company said in a statement to the market that the board of directors became aware of a highly critical research report put out by a New York-based hedge fund, which suggested that the company’s revenue was based on fictitious sales invoices generated by shell companies that it created and controlled.

The tech company mentions in its website more than 30 distributors, resellers and specialized partners all over the world. All these partners found themselves connected to a company that is allegedly accused of fraud and wrongdoing. The reputation damage for the tech company is so severe that might be irreversible however this damage might also have an effect on its partners according to the principle of connected vessels.

The damage of the partners’ reputation depends on their business exposure to the organization which is in crisis. If a partnership with this tech company represents only a small part of activity and a fraction of revenues then a few basic communications steps might diminish the impact for the partner’s reputation. If the exposure is graver, then the reputation risk becomes bigger.

The level of exposure to a partnership defines the actions in terms of risk and crisis management. The Madoff investment scandal is a good case study because the 162-page list of clients/investors/partners shows a broad variety of organizations and individuals who not only lost their money but them also had a huge blow on their credibility and reputation for lack of judgement, especially the banks and the hedge funds. A very famous Spanish bank, with distinctions as the World’s Best Bank by Euromoney, and Bank of The Year from the Banker magazine, faced a huge embarrassment being one of the biggest investors in the hedge funds run by Bernard Madoff.

Apart from the legal actions of the wealthy clients which might cost billions of dollars to the banks, some of these banks damaged their credibility (the most important asset for a bank) and reputation.

Another recent example is the case of FIFA and the reactions of its big sponsors which examine the possibility to bring their association with the governing body to an end if it failed to commit to an independent reform process.

Every case is different however the following general rules might be helpful in order to deal with issues and crises caused by business partners:

  • Be prepared to deal with issues or crises caused by business partners
  • Require all the facts from your business partner and prepare your response
  • Do never deny relation with a business partner
  • Do not take the blame on behalf of your partner
  • Do not be apologetic but show sympathy
  • Be open and transparent
  • If your clients or customers are affected by the wrongdoing of your business partner, do the extra mile and cover their loss

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

Do you really believe you can predict all crises?

15 Thursday Oct 2015

Posted by in Cases, Crisis

≈ 1 Comment

Tags

, , , ,

Deepwater Horizon

A few days ago I read an interview of a well-known expert on crisis communications, who said that «All crises are predictable. If they are predictable, then they can be planned for» and I am afraid I have to disagree. To be honest, I tend to agree with the great Danish physicist and Nobel laureate,  Niels Bohr, who said “Prediction is very difficult, especially if it’s about the future”.

The role of all the crisis management professionals and communications experts includes the horizon scanning identifying potential threats and issues which should be analyzed and then integrated into a crisis management plan. A thorough horizon scanning will definitely bring on the surface issues that might harm the reputation and endanger the business continuity of an organization. If we could find out all issues then we could establish all the necessary processes and plans to deal with them. But, it is not so simple, is it? If, in a perfect world, we could know all potential threats then there would be no crises, which means in this case that a crisis is predictable…!

For the sake of discussion, let’s say that our scanning has covered all the potential threats and we now work on a painstaking crisis management plan. I strongly believe that our plan would be complete and very detailed. If that’s the case, we have done what’s necessary in order to deal with any issue. But this is not really what happens in the real world.

Organizations with extensive experience in crisis management, detailed environment scanning that covers all aspects of operations and  very experienced staff have been caught off guard by situations that went out of hand. The BP’s 2009 Sustainability Report says: “Our goal of ‘no accidents, no harm to people and no damage to the environment’ is fundamental to BP’s activities. We work to achieve this through consistent management processes, ongoing training programmes, rigorous risk management and a culture of continuous improvement.” Does anyone believe that BP had no plan to deal with a disaster at an offshore drilling unit like the Deepwater Horizon in 2010?

There are two elements that make a crisis unpredictable. The first one is the element of surprise and the second one is the indeterminable factor. We all have read numerous reports about crises that came as a surprise to top executives, communication professionals, investors, and academics alike although they were expected and they could be avoided. Several organizations are caught by surprise because either they do not really believe that a crisis might really occur or they suffer from a cry-wolf syndrome and they make a wrong assessment at the crucial moment.

The indeterminable factor could be anything… Any unexpected change at the political, environmental, economic, social level or just a human mistake could undermine any crisis management plan.

A crisis is not always inevitable or predictable. A crisis is a situation that has to find us prepared and ready to deal with  issues that go beyond any plan or even our imagination.

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

Be aware of the context and the external factors in crisis management

05 Monday Oct 2015

Posted by in Crisis, politics

≈ 1 Comment

Tags

,

madrid-athens-protests-sep-2012-5-1024x682

We all have read or written about golden rules in crisis management that more or less are the same. However there is one rule that it is not usually mentioned and that would be “Be aware of the context and the external factors”.

Let’s say we prepare a crisis management plan with all necessary steps and actions and we put it in the drawer.  After a couple of months or even some days, this plan might be totally obsolete. The framework of macro-environmental factors set the foundation of our crisis management plan. If we fail in our environmental scanning then our plan might be standing on a foundation of straw.

I am thinking of several examples that companies failed in their estimates about the external factors and they implemented crisis management plans that could not adapt in the macro-environment. For example a newly elected government with radical approach somewhere in the world might have an effect on different aspects of a company’s operations which should be under consideration when planning crisis management response. An environmental disaster would not create the same reaction in all the countries of the world. Some societies have more radical and strong unions than others and this something that a corporation should take into consideration when making a decision about labour issues.

A crisis management plan should be adaptable to various factors. We are not about a simple PEST analysis. The macro-environment includes political, economic, social, technological, environmental, intercultural, environmental, ethical, educational, physical, religious, regulatory, and security factors that we should be aware of.

The environmental scanning is a component of strategic management and it must be part of the daily activity of the organization. Part of the job description of the corporate communications team is to feed the management of the organization with all the necessary information that might contribute to the crisis management planning. Information of the public sphere should be incorporated in the process of preparation for a crisis.

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

The VW crisis: It’s the basics, stupid!

22 Tuesday Sep 2015

Posted by in Cases, Crisis

≈ Leave a comment

Tags

, , ,

VW_LOGO_1001_454x280-450x278

A few days ago, I had published a post about going back to the basics in crisis communications. There was nothing deep or new about it. I had to share with all of you some basic rules that we should never forget when a crisis occurs. Well, a crisis occurred for VW and now we are witnessing a storm hitting one of the most respectable and innovative corporations worldwide.

Well, this is the story:

The Environmental Protection Agency (E.P.A.) accused VW of using software to detect when the car is undergoing its periodic state emissions testing. This detector would turn on only during tests in the cars’ full emissions control systems. During normal driving situations, the controls are turned off, allowing the cars to spew as much as 40 times as much pollution as allowed under the Clean Air Act, the E.P.A.. The software was designed to conceal the cars’ emission of the pollutant nitrogen oxide, which contributes to the creation of ozone and smog. The Obama administration on Friday 18 September directed Volkswagen to recall nearly a half-million cars, saying the automaker illegally installed software in its diesel-power cars to evade standards for reducing smog. (Source: New York Times)

The software used to manipulate emissions tests in the United States, and the extensive attempts by Volkswagen to deflect official scrutiny before admitting misconduct this month, suggest that the cheating was not just the work of a few rogue engineers. (Source: New York Times)

It’s obvious that VW deceived its customers and the US national authorities and violated a series of laws. When the public finds out about the trickeries, the consequences in the era of social media might be irreversible. VW had not expressed, at least until yesterday, its apology for such an outrageous practice in social media despite the negative comments in Facebook and Twitter. The head of the German automaker made a statement a few days after the outbreak of the issue expressed his apology but he was not completely sincere. Although VW has evidently made a mistake, Prof. Dr. Martin Winterkorn, CEO of Volkswagen AG said: «We do not and will not tolerate violations of any kind of our internal rules or of the law».

This statement means that either they lie or they are totally ignorant about their business outside Germany. I wonder how such an organization of VW’s magnitude said something like that. Either it is an organized deception or ignorance, VW should apologize to the public in a more sincere way using all communications channels including traditional media and social networks.

VW lost its credibility not only in the US but worldwide inflicting a heavy blow on the reputation of the brand. Does anyone still believe that the basics of crisis communications have lost their importance? It’s the basics, stupid!

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

The crucial role of HR in crisis management & communications

16 Wednesday Sep 2015

Posted by in Crisis, HR

≈ Leave a comment

Tags

, , ,

employees_silhouettes

If the communications team is the eyes, the ears and the mouth of an organization during a crisis, the HR is the heart and soul. The human element of an organization is what makes the organization running. However, when a crisis occurs, lots of organizations focus on the external stakeholders forgetting the internal environment. Sun Tzu, the great Chinese strategist and philosopher, has said: “Treat your men as you would your own beloved sons. And they will follow you into the deepest valley” and that’s what every organization should have in mind in times of crises.

In general, there are two main audiences when dealing with a crisis: the external stakeholders and the internal environment. The current literature and the vast majority of online reports focus on the external audiences. There are some good articles related to the role of HR function during a crisis mentioning some useful crisis management rules.

As a communications professional with keen interest in crisis management I have noticed that some of these articles have a major flaw. Although the authors provide a lot of good ideas about HR’s activities in a crisis, only a very small minority integrates these ideas to a crisis management plan which includes three main phases: pre-crisis, response to crisis and post-crisis.

Each of these phases has a different level of certainty when making a decision, starting from a high level of certainty in the pre-crisis phase to high uncertainty as the crisis evolves.

The pre-crisis phase includes all the necessary actions that would enable an organization to deal with a crisis successfully, such as the crisis management plan for employees, the training of the HR team to handle crises, internal communication tools and the preparation of crisis communication messages. There are plenty of communication tools that we could mention but this is not the subject of this article however an organization should be ready to use low-tech and high-end means to communicate with employees.

Setting up the crisis management processes for employees and the internal communication tools amid crisis would be time consuming and would disorientate the organization, which is the crisis.

During the crisis phase, the organization must have already established a crisis management plan and the communication tools. The HR should focus only on the mix of internal communication tools and the messages. Depending on the issue, the internal communications team might use all the tools or some of them which could be different for employees and managers. All the basic rules of crisis management also apply to the activity of HR including transparency, sincerity, quick response, empathy and so on.

The post-crisis requires could be also characterized as the «healing phase». The organization and more specifically is responsible for healing the internal wounds of the crisis. It’s impossible for an organization to have planned all its actions in this phase before the crisis occurs. The organization should be flexible and capable of adapting to different situations as a result of a crisis.

If I had to choose a single rule about the role of HR in crisis management and communications it would be the strategic decision to fully align internal and external communication from the very first day of an organization’s operations. From the communications angle, it is important to have a solid and fortified internal environment before you expose yourself to external stakeholders.

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

Back to basics in crisis management

14 Monday Sep 2015

Posted by in Cases, Crisis

≈ 1 Comment

Tags

, , ,

abc

One of the comments, that my last post regarding the crisis management during the Hurricane Katrina and the forest fires in Greece generated, was the following: «quite interesting post but nothing new or deep». I couldn’t agree more! The conclusions and the lessons learned that were mentioned are not groundbreaking at all. That was intentional. I strongly believe that when we examine cases of crisis management we must always go back to basics.

How many times haven’t we seen violation of basic rules of crisis communications by respectable companies with global footprint and long tradition in their sector?

Half way to success in crisis management is preparedness. Every time we see an organization to be taken by surprise we realize that preparedness is not self-evident. Preparedness requires commitment, planning, leadership, a qualified communications team and so on.  Crisis management always starts before a crisis occurs and this is the basis in order to have successful results.

One common mistake is the delayed response to a crisis. If we don’t express our position on time, someone else will tell our story for us. We all know the importance of a quick response to media queries but sometimes we forget that the citizen journalism and social networks move faster than traditional media.

An organization builds its credibility on transparency. Denying responsibility when an organization has evidently made a mistake will undermine the credibility and eventually damage the reputation. When the public finds out about the trickeries, the consequences in the era of social media might be irreversible.

Finally, when we deal with crisis management, the biggest risk is «commoditization». If we sit back and rest on our laurels we will definitely fail. Crisis management is like the myth of Sisyphus, we should continue rolling the stone from the bottom of the mountain to the top, despite all events to the contrary.

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

Crisis communications under “rain and fire” – Part II (or Why crisis communications in natural disasters should interest us…)

13 Sunday Sep 2015

Posted by in Cases, Crisis, Media

≈ 1 Comment

Tags

, , , , , , ,

hurricane-katrina

Following the post «Crisis communications under “rain and fire” (Part I) » I was asked by several people why a communications or PR professional should be interested in crisis management of natural disasters such as the Hurricane Katrina and the fires in Greece in 2006. My response was that the main characteristics of the two cases apply to crises that might affect a company.  Let’s see these characteristics:

  • There were casualties
  • There was a strong reaction of public opinion
  • There was lack of preparedness
  • There was a lack of coordination at both operational and communication level

I remind you that the Bhopal disaster, the gas leak incident in India, considered the world’s worst industrial disaster, had a death toll of thousands of people and it was not the result of a natural phenomenon.

After this small introduction let’s see some lessons learned from the «Crisis» and «Post-Crisis» phases of the crisis management in Hurricane Katrina and the fires in Greece.

«Crisis» phase

The crisis management in both cases showed the internal malfunction of administration in both countries. Internal conflicts and personal agendas prevailed at the expense of public interest. If the crisis management team is unable to have smooth internal communication, it is almost impossible to lead to coordinated actions, both at operational and communications level. The failure to achieve internal cooperation reflects negatively on the external environment.

Conclusion: The crisis management team must be functional with good cooperation and communication among the members of the team.

During the research of the two cases I realized the importance of the leadership, the credibility of political discourse and the openness towards the public. The leadership of the American president during the crisis had the following phases: absence, optimism, lack of coordination and finally shift of responsibility. The reassurance by President Bush during the first hours of Hurricane Katrina proved a huge communication mistake that followed the American government for some time. On the other hand, the presence of the Greek Prime Minister with evident sorrow in the area of the fires expressed the public sentiment reducing extreme reactions. However, the allegations of Greek Ministers that the fires were part of an organized plan to destabilize the country was a PR stunt which crashed along the way setting credibility issues got the Greek government. As we saw in a relevant quantitative research, part of the Greek public opinion believed these allegations even thought they were never justified. Passing responsibility (blame game) is a common practice but it can be extremely negative for the credibility of the crisis management team.

Conclusion: Credibility with respect to communications and the main messages of the crisis management team is crucial.

“Post- crisis” phase

In the post-crisis phase, the efforts to defuse tension are followed by a learning process. The evaluation of all the actions during the crisis is crucial in order to become better. The improvement of the crisis management process requires the evaluation of correct and incorrect actions of the organization. The lessons of this kind are part of the organizational function of the organization and they are a compass for the future. In the weeks and months following Hurricane Katrina, a series of institutions investigated the reasons of the failure of the US administration to handle the crisis issuing reports that became publicly available. In Greece, there have been no official inquiries to identify errors during the crisis.

Conclusion:  Every crisis should always be a lesson learned.

This post is only a very small part of my thesis “Crisis communication by Public Administration and government organizations” which goes back in time.

The opinions expressed in this article are those of the author, and they do not reflect in any way those of his various affiliations.

The film «All the President’s Men» as a crisis communications lesson

09 Wednesday Sep 2015

Posted by in Cases, Crisis, politics

≈ Leave a comment

Tags

, , , , ,

all_the_presidents_men_redford_1

Yesterday I was asked by a student in LinkedIn to suggest readings about crisis communications. Well, I could suggest several titles to start with but would that be all? I tried to think of other ways to show him how crisis management works. If the Chinese proverb “A picture is worth a thousand words” is correct, how about a two-hour film? The first film that came to my mind was the «Thank you for smoking» but that was too obvious and maybe a bit superficial. And then I thought of the film “All the President’s Men”, the 1976 American political thriller film directed by Alan J. Pakula which is based on the 1974 non-fiction book of the same name by Carl Bernstein and Bob Woodward, the two journalists investigating the Watergate scandal for The Washington Post.

This film is about one of the biggest scandals in American history showing how a big mistake could lead to a gigantic disaster. Although it is one of my favourite history subjects, I don’t want to elaborate further on the governance of Nixon administration during these years as there are more qualified people to offer their knowledge. However I would like to pinpoint some quotes of the film that could be a first-class crisis communications lesson.

Don’t irritate Media especially when you have skeletons in your cupboard

Quote from the film with reference to a statement of Nixon’s director of 1972 presidential campaign:

  • John Mitchell: [on phone] You tell your publisher, tell Katie Graham she’s gonna get her tit caught in a big wringer if that’s published.
  • Ben Bradlee: [later] He really said that about Mrs. Graham?
  • Carl Bernstein: [nods]
  • Ben Bradlee: Well, I’d cut the words “her tit” and print it.
  • Carl Bernstein: Why?
  • Ben Bradlee: This is a family newspaper.

Keep calm and respond to media inquiries with tranquility

Quote from the film with the dialogue between Washington Post’s report Bob Woodward and the former CIA officer and one of the Nixon White House “plumbers”, Howard Hunt:

  • Woodward: [on the phone] Hello, I’m Bob Woodward of the Washington   Post
  • Howard Hunt: Howard Hunt here.
  • Woodward: Hi, I’m Bob Woodward of the Post and–
  • Howard Hunt: Yes, yes, what is it?
  • Woodward: I was just kind of wondering why your name and phone number were in the address books of two of the men arrested at Watergate?
  • Woodward: (blind panic) Good God!  [And he bangs the phone down sharply]

Inexperienced and untrained people in an organization might ruin any crisis management plan

Quote from the film with the dialogue between Washington Post’s report Carl Bernstein and a librarian from the Library of Congress:

  • Librarian: Library.
  • Bernstein: Hi. Carl Bernstein of the Washington Post. I was just wondering if you remember the names of any of the books that Howard Hunt checked out on Senator Kennedy.
  • Librarian: I think I do remember, he took out a whole bunch of material. Let me just go see. [sound of the phone being laid down]
  • …..
  • Librarian: Mr. Bernstein?
  • Bernstein: Yes, ma’am.
  • Librarian: What I said before? I was wrong. The truth is, I don’t have a card that Hunt took out any Kennedy material.  I remember getting that material out for somebody, but it wasn’t Mr. Hunt. The truth is, I’ve never had any requests at all from Mr. Hunt. The truth is, I don’t know Mr. Hunt.

Don’t get caught unprepared (literally sleeping)

Quote from the film with the dialogue between Washington Post’s report Carl Bernstein and Nixon’s director of 1972 presidential campaign, John Mitchell:

  • John Mitchell: Yes?
  • Bernstein: Sir, this is Carl Bernstein of the Washington Post, and I’m sorry to bother you but we’re running a story in tomorrow’s paper that we thought you should have a chance to comment on.
  • John Mitchell: What does it say?
  • Bernstein: [starting to read]  John N. Mitchell, while serving as US Attorney General, personally controlled a secret cash fund that–
  • John Mitchell: Jeeeeeeesus
  • Bernstein: –fund that was used to gather information against the Democrats–
  • John Mitchell: Jeeeeeeesus
  • Bernstein:  –according to sources involved in the Watergate investigation. Beginning in the spring of 1971–
  • John Mitchell: Jeeeeeeesus
  • Bernstein: –almost a year before he left the  Justice Department–
  • John Mitchell: Jeeeeeeesus
  • Bernstein:  –to become President Nixon’s campaign manager on March 1, Mitchell personally approved withdrawals from the fund–
  • John Mitchell: –all that crap, you’re putting it in the paper? It’s all been denied. You tell your publisher–tell Katie  Graham she’s gonna get her tit caught in a big fat wringer if that’s published. Good Christ! That’s the most sickening thing I ever heard.
  • Bernstein: Sir, I’d like to ask you a few—
  • John Mitchell: –what time is it?
  • Bernstein: 11:30.
  • John Mitchell: Morning or night?
  • Bernstein:
  • John Mitchell: Oh. [And he hangs up]

 Any other suggestion about a film that we could use as a crisis communications lesson is more than welcome.

Crisis communications under “rain and fire” (Part I)

08 Tuesday Sep 2015

Posted by in Cases, Crisis

≈ 1 Comment

Tags

, , , , , ,

Crisis communications in natural disasters has a vital importance for social, political and economic reasons. Both theory and experience have shown that some crises are in fact communications crises (Garnett & Kouzmin, 2007). The Hurricane Katrina in New Orleans and fires in Peloponnese in Greece in 2007 are two examples of crisis communications failure. Bureaucratic deficiencies, lack of preparation and inexperienced staff have led to communications disaster.

download

The selection of this cases was made for the following reasons:

  • There were casualties
  • There was a strong reaction of public opinion
  • There was lack of preparation by the government
  • There was a lack of coordination at both operational and communication level

Pre-crisis phase

The hurricanes in the US and the fires in Greece are natural phenomena with frequent occurrence and they cannot be considered surprising when incurring. What characterizes the two cases is the paradox that while there was awareness of the risk, both government mechanisms in the US and Greece seemed unprepared to meet the expectations and the requirements. The early symptoms of the upcoming catastrophe were disregarded.

Conclusion: The lack of preparedness and readiness are shaky foundations for crisis management.

The difference between the two cases is that the risk in Greece was permanent but not geographically specific whereas in the US there were official warnings days before the disaster for specific geographical areas in clearly defined time perspectives. What emerges through the elements of the research is that there was a strategic plan in the US to deal with natural disasters as opposed to Greece where the risk of fires seemed to be treated at the tactical level. As a result, we can distinguish a timeless deficit of preparedness by the Greek authorities to manage natural disaster crises. In New Orleans, the story could have been very different if the federal and local authorities had implemented the crisis management plans considering that both the state and federal authorities had already been on constant alert because of 9/11.

Conclusion: Preparedness and readiness are necessary in strategic and tactical level.

The appointment of unqualified people to manage crises leads to failure as it was apparent in the US during the Katrina hurricane. The failure of the inexperienced director of FEMA to meet the demands of the occasion preparing the state apparatus before the crisis demonstrates the importance of the proper selection of the right professionals.

Conclusion: Preparedness and readiness for crisis management require professional and experienced staff.

Conclusions about the Crisis and Post-Crisis phases of those two crises will follow in the coming days.