Rebuilding after the crisis

A crisis is never a pleasant experience, but after the dust has settled, steps can be taken to turn the crisis into a positive learning experience. It goes beyond assessing a company’s financial losses. How has the crisis affected the opinions of key publics? What is their perception of the company? What do they think or believe about it, after the unfavorable media coverage it has been subjected to?

What can be done? On an intermediate term, assessing the damage and instituting damage control mechanisms are musts. Move quickly, and move on. A survey among key audiences to gauge the public opinion on the crisis must be conducted. And even though the crisis has abated, the various publics, particularly media, are now sensitized to the situation. They need to receive reassuring messages about the company, its programs and products. While the crisis response plan is being implemented, keep a log of it. It can be an important tool, and can be converted into a report showing how the company successfully responded to and handled the problem. This document can present the company’s decision-making and actions throughout the crisis, and can demonstrate its accessibility and openness.

The September 11, 2001 World Trade Center tragedy, the Bridgestone/Firestone massive tire recall and the litigation surrounding it, the Enron-Andersen and WorldCom debacle, and other crises situations – industrial accidents, labor disputes, product recalls – have revealed how damage control has evolved into a sophisticated discipline and a thriving industry. What used to be just a few units offered in business and communications courses has now grown significantly. PR departments of companies have made it a staple in their PR plans, and PR agencies have made it an indispensable part of their full-service offering.

Damage control is all about repentance, rising from the fall, and rebuilding from the broken blocks of corporate reputation. But most crises come down to a very basic problem. Companies in crisis have to answer the core question – why should their publics trust them? As Eric Dezenhall of Nichols-Dezenhall Communications says, "In this digital age, news about business mishaps and misbehaviors travels at breakneck speed. But slamming the brakes on bad corporate karma requires more than just simple spin doctoring. It calls for calculated calm – and a delicate balance between the art of shepherding public opinion and the science of showing executive leadership." And leadership during crisis should be filled with candor or the honesty to take the necessary responsibility; concern for health and safety needs of people; and the courage to stand up, take responsibility and get at the source of the problem.

Masters Of Disasters

Lou Carlozo of Chicago Tribune, wrote, "Corporations thrust into the crisis spotlight face pressures ranging from bad press to a struggle for survival. How should they respond? Experts generally agree on these positive actions:"

Respond immediately. In 1991, McDonald’s took immediate action after learning its sponsorship of Who Wants To Be A Millionaire had been rigged. Instead of disaster, the fast-food chain hit a public relations jackpot by giving away another US$10 million.

Accept Responsibility. Mitsubishi Motor Corp, in 2000, issued a public apology through its president following revelations that the carmaker had ignored safety complaints for 20 years.

Re-establish credibility. Following a 1996 crash in Florida, Value Jet appeared finished. But after cleaning house and changing its name to Air Tran, the company is once again a player in the discount airfare market.

Go the extra mile. In the Tylenol tampering scare of 1982, Johnson & Johnson took three big steps: It recalled its product, changed packaging and reformulated the medicine to reduce tampering risks.

Be patient. When Jack in the Box promoted its Monster Burger in 1993, the slogan was "So good it’s scary." And it was scary! E coli outbreaks sickened hundreds and killed four. After settling with many of the victims, the hamburger chain counted on time to restore its reputation and has since avoided further E coli outbreaks.

Make it personal. After Chrysler’s 1980 federal bailout, Chairman Lee Iacocca hit the TV airwaves, putting a real-life face on Chrysler’s comeback. His crusty can-do style proved as popular with consumers as its minivans.

Here’s what the experts say, companies, must not do when implementing damage control:

Act Aloof. With the Exxon Valdez spill in 1989, top executives failed to fly to the accident scene and said they couldn’t understand why the public was upset. The backlash hurt Exxon’s image for years.

Hide. Kenneth Lay and other top Enron executives have been silent about what went wrong and why. "Little children who do something wrong will go hide somewhere and pretend that it never happened," said Chris Ryan, who owns his own crisis management firm. "There are a lot of little children running these corporations."

Use a tongue-tied spokesperson. US Postmaster General John Potter was a dud in media appearances following the anthrax scare, Ryan said. "He looked like he was uncomfortable and sounded like he didn’t think about what he was saying."

Get into the blame game. In firing public salvos at each other, Ford and Firestone turned their damage control efforts into a mudslinging feud. It’s hard to say which company, if any, came out on top, both suffered in 2001.

Cover up. Firestone executives knew for at least two years that there were safety problems with its tires, but failed to act. By saving itself some inconveniences and costs in the short run, the tire maker paid a heavy PR price in the long run.

Forget the past. Andersen’s Houston office, where the Enron shredding occurred, has been a source of past problems for the firm. With further mistakes in the Enron case, Andersen’s current apologies run the risk of sounding insincere.

The cases cited above were all set against USA’s first-world market scenario, but the lessons learned speak of a universal application. And the most basic lesson in damage control being revealed is "to always do the right thing." It is not only the socially and morally responsible thing to do, it is usually the best thing for the long-term success of companies or organizations.

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E-mail bongo@vasia.com or bongo@campaignsandgrey.net for comments/questions.