Public Relations Expert Provides Crisis Management Tips
Dec. 16, 2011
Appearances count. But universities, presidential candidates and businesses have all demonstrated a lack of awareness about good public relations. Given their significant status, we would expect them to exhibit world-class PR expertise in their crises.
But that’s not the case. Best practices in crisis management have been practically non-existent.
Consider these examples:
- Penn State and Syracuse – their sexual abuse scandals
- Herman Cain was forced to quit his bid for the GOP nomination following his weark and untimely responses to the sexual harassment accusations
- Rick Perry – his meltdown after a fast start in which he seemed invincible
- Bank of America’s controversial debit-card pricing fee, which prompted countless Americans to switch to community banks and credit unions, and a downgrade in the bank’s credit rating
- Anthem Blue Cross of California is facing multiple lawsuits as a result of policyholder perceptions of predatory increases in healthcare premiums and deductibles
Undoubtedly, in each situation, they would benefit from expert PR counsel.
“Businesses, politicians, sports figures and celebrities should all have a crisis plan because, sooner or later, they’re apt to need to activate it,” says noted PR expert Devon Blaine. “If that need never arises, at least they were prepared in case it did. There’s no harm in being a good Scout!”
Ms. Blaine has been the president and CEO of The Blaine Group, Inc. in Los Angeles since 1975. She has countless successes. So when she talks, clients listen and profit.
First step – preparation
“We’ve all seen what happens when people are not prepared,” she asserts. “Herman Cain is the perfect example. And he had a 10-day heads up prior to the Politico article coming out! Most people don’t have that advantage.”
She says even with a crisis plan, there are important financial considerations.
“…even if a crisis ends up being well managed despite the lack of advance preparation, managing the situation is needlessly more costly than it would have been had plans been made in advance,” Ms. Blaine explains. “The quality of the response may also suffer.”
She advises against complacency.
“Everyone believes that it will ‘not happen to me,’ but it can…and does…even to extremely small businesses such as our client that imported all of the wheat gluten from China that was used in every recalled pet food product a few years back,” she cites as an example.
“Had they had a crisis plan prepared which identified the vendors needed to mitigate risk, i.e., FDA attorney, crisis public relations firm, other legal counsel, etc., before they needed all of the above on an emergency basis, they would have paid a small consulting fee in advance and been ready rather than retaining all of the above on a last-moment, already-into-the-crisis emergency basis at top billing rates.”
Here are her excerpted answers to my crisis-management questions:
Q: What are the keys to crisis management?
A: There are many, for example:
- Knowing what the potential crises could be
- Planning and preparing in case the unthinkable should occur
- Knowing who does what
- Ensuring that the “chain of command” is known and adhered to in their office
- Having a trained spokesperson who will address the media
- Knowing what media to outreach to so that you are proactive rather than reactive
- Ideally, having an ongoing positive media campaign in place, based on the theory that the best defense is a strong offense…if your business is viewed as a good corporate/community citizen, a crisis will harm the business less, and perhaps not at all
Q: How do you suggest preparing for crises in business?
A: Ideally the management team will brainstorm what they believe could go wrong in the business and then bring in a professional risk manager and crisis public relations person to brainstorm with them. A walk through the facility will also identify other potential trigger points, i.e., doors that are left open and provide access to the company’s computer server, to other sensitive data, to products where quality control is essential, etc.
Q: How do you suggest preventing a crisis?
A: Conducting business in a prudent fashion is always the best way to prevent a crisis, however, there are issues beyond your control that can go awry, i.e., buying product from a manufacturer that operates with less than optimum ethics, importing toys that are decorated in China with paint that is toxic to humans, etc… unless you have control over each part of the process, there’s room for error. Visiting your vendor before doing business with them can help to control this but does not 100 percent ensure that you’ll not encounter a problem later.
Q: In the event of a crisis, what are best business management practices?
A: Openness with the press and honesty are the best practices. Sometimes issuing a “controlled statement” is the best way to proceed, especially when management needs to focus on resolving the problem rather than being available to the press 24/7. It also prevents the possibility of a “burnout moment” and guards against a response that is not empathetic… as we saw in the recent oil spill crisis. Absolutely never respond with “no comment.” It is better to say “we are aware of the situation and we are looking into it,” which gives no more information yet sounds caring, concerned, involved, active and responsive rather than evasive.
Q: What are your suggestions for testing your crisis plan?
A: In an ideal world, your management team will work with a crisis planning team such as that which The Blaine Group offers with its Reputational Risk Management Solution Product and avail itself of the opportunity to have key management roll up its sleeves and “play” a board game where a crisis is enacted and everyone plays out their role. We recommend this be done on a quarterly basis to ensure that everyone stays fresh. It is also a good idea for your spokespeople to be trained and for there to be “refresher” sessions every few months.
Q: What should be done PR-wise immediately following a crisis?
A: See the response above regarding best business management practices. And, more important, think about what should be done before a crisis, i.e., being a good corporate citizen and making sure that you’re acknowledged as such in an ongoing positive corporate communications campaign.
Q: What should be done during the crisis aftermath?
A: See best business management practices above. Also, ensure that there is a steady stream of information released as you have answers to the situation that occurred.
Q: What should be done once a crisis has ended?
A: If there has been a problem with one of the company’s products or their product has caused their customers problems, there’s an opportunity to generate goodwill by setting up a program that not only ensures this won’t happen again but also instructs their customers in how to handle such a crisis. Be certain to communicate that all underlying issues have been addressed.
Resource link: Ms. Blaine’s Web site.
(Note: I’ve been very familiar with the expertise of Ms. Blaine since 2004. She is a fellow member of Consultants West, www.consultantswest.com, a roundtable of veteran consultants in the Los Angeles area.)
From the Coach’s Corner, Ms. Blaine also explains the secrets to marketing success in recessions.
“If I was down to my last dollar, I’d spend it on public relations.”
-Bill Gates
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Need PR, But No Budget? Here’s How to Leverage News Media
Social media is OK for promotion. But if you need blockbuster publicity, use best practices in marketing. Play a trump card — leverage the news media for public relations.
Yes, it’s true that increasing numbers of adults – especially the Millennial Generation – are using social media for their news and information, and for making buying decisions. However, don’t be misled.
In marketing terms, the media is still the most powerful center of influence on the planet. You, too, can benefit from PR in the media – just like Microsoft or Starbucks.
If you can’t afford a $5,000 monthly retainer for a public relations person or firm, you can still use the media as a powerful and economical resource to help you brand your business, and get your sales message published – with ultimate credibility and authority. That starts with a press release.
Salient elements of a press release:
- In journalism parlance, include details about who, what, when, where and why.
- Include contact information – telephone number, address, Web site address, e-mail address and name of the person you want contacted.
Use empathy
Like all marketing, PR is a marathon. Journalists are busy and it’s hard to get their attention. Mid-week – Tuesdays, Wednesdays, and Thursdays – are best to approach them.
For print, learn and use the name of the feature or city editor. If you’re contacting radio or television station news departments, contact the assignment editor or news director.
Print and electronic mediums have different deadlines, so be cognizant of them and contact editors at the right time.
Many big-market media outlets prefer to be e-mailed. However, when I was in broadcast journalism, I noticed that personable PR people, who had deep media-relationships, hand-delivered their releases with success. So, that’s my approach for clients. Yes, with security guards screening visitors at media outlets, it can be difficult. However, I believe in doing the footwork – literally. Sometimes it’s been a successful strategy in achieving PR for my clients.
For success in print or on-air headlines, don’t mask mundane ideas as news. It must be newsworthy and transparent. If it is, you will also probably benefit from word-of-mouth advertising.
Hint: Journalists have egos. In some cases, it’s best to single out one medium to approach. Journalists often pride themselves on exclusive stories.
If your published item attracts the attention of Associated Press, other newspapers, radio and television stations will join the bandwagon. This means your submission will also be inserted on their Web sites, which might result in search-engine headlines. Presto, you will have hit a grand slam.
Feasible story angles to submit to journalists:
- Promotions and retirements. Newspapers might print the item as a story. If not, they often have a category for promotions and retirements in their business section. If you have all-news radio stations in your market, don’t overlook them. If you’re a major employer, your odds are good, too.
- New or unique products or services. That’s especially true if you’re providing value to businesspeople or consumers. Include a product sample and pictures. If it’s a revolutionary tech or green product or service, it’s almost a fait accompli for PR.
- Expansions or renovations. If your business is making big changes, include pictures and relevant data. Creation of jobs often constitutes a PR opportunity.
- Free products and services. Such announcements benefiting the public – especially, kids, senior citizens and veterans – almost always yield coverage.
- Contests. You might be able to create a contest for marketplace buzz.
- Events. A free how-to seminar or workshop is usually a winner. For less serious creative events, the keys are to have fun and be relevant.
- Cause-related marketing. It’s one of my favorite PR approaches because cause-related marketing can increase sales by double digits via word-of-mouth. Plus, most journalists like a good cause. Even pro bono work yields good recognition. Just be careful so it doesn’t appear to be shameless self-promotion. When feasible, collaborate with the nonprofit to contact the media instead of you. Just make sure you get adequate mention in materials. When I worked full-time in the media, I loved cause-related marketing because it alleviated my stress amid all the negative-news stories. Civic-minded companies that help charities usually deserve attention.
- Scholarships. Another favorite approach of mine is to form a foundation to fund scholarships. It will effectively show your deep involvement in education and your community.
To improve your Web site’s prominence, consider using an Internet press-release service. If you don’t have $40 to $800 for an Internet press release, there are companies that will do it for free.
Your release won’t be as well read, but it will improve your online presence with these provisos:
- Make sure the press-release company is authoritative.
- Verify that the vendor has a better Google page rank than your Web site.
Insert enough of these press releases, and your online presence will improve dramatically. Your goal should be to become No. 1 in your strategic key words. In my experience, the top three sites make the most income.
So leverage the news media to help brand your business. The media is still the most authoritative center of influence to send business your way. Journalists are always looking for good stories. They, too, have inventories to fill. Probably unlike your inventory, theirs are time and space, which are valuable commodities.
P.S. You might also want to consider trade-outs. Radio stations, in particular, will often trade advertising for products or services. My clients have catered parties and provided prizes for station contests. Additionally, I’ve worked at stations that traded advertising for equipment and vehicles, but special strategies were necessary for such expensive items. Radio stations need revenue, too.
From the Coach’s Corner, consider these resource links:
Marketing Essentials on a Shoestring Budget
Fast, Easy Ways to Create Buzz
Secrets to Success in Recessions: Expand Marketing
25 Best Practices for Better Business Writing
“If I was down to my last dollar, I’d spend it on public relations.”
-Bill Gates
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
BP Crisis Management, PR Misfires — a Case Study
About every 20 years, there’s a major oil-spill disaster. None has been handled well, PR-wise.
On Jan. 29, 1969, an oil spill involved Union Oil off the coast of Santa Barbara, CA. On March 24, 1989, it was the Exxon Valdez oil spill in Prince William Sound, Alaska. And following an explosion on April 20, 2010, it was the BP oil spill in the Gulf of Mexico.
Dr. Peter Drucker’s quote, “Arrogance is being proud of ignorance,” obviously was not intended for the most-recent public relations debacle facing BP, but it sure is applicable. The results are a case study for worst-practices in crisis management.
BP inadvertently created a PR situation synonymous with herding cats. It’s had to fight to clear up two quagmires – its oil mess and its tarnished image.
It’s important to understand the need for a comprehensive risk analysis. First impressions demonstrating empathy and competence are vital. It didn’t appear BP was prepared to successfully deal with such a catastrophe. A good old-fashioned SWOT analysis of strengths, weaknesses, opportunities and threats with worst-cases scenarios would have sufficed.
For possible insights into BP’s corporate mindset, a former CEO of Royal Dutch/Shell’s U.S. subsidiary, Shell Oil, has some illuminating realities. In the strategy+business management magazine, CEO John Hofmeister’s article, “Why We Hate the Oil Companies,” explained how some corporate oil CEOs dysfunction. He indicates they earn their reputations for arrogance and blow opportunities to create the right image.
“Retailing fuels is basically a secondary exercise from the oil company’s point of view, a way to get rid of the product it has spent so much time and money producing,” he writes. “This makes the retail side the least valuable part of the business, more often a nuisance than a value creator.”
BP’s “Beyond Petroleum” branding has not helped.
Despite BP’s best efforts, the company was not been front and center of the media. And when it has been in the media, it wasn’t a pretty picture, such as offering $5,000 to potential plaintiffs not to litigate in anticipated lawsuits. Nor has BP been seen as compassionate and aware of their social responsibility. Nor did it appear eager to roll up the proverbial sleeves to work with government to minimize the ecological damage.
In responding to a question about BP’s safety record in an interview with ABC’s George Stephanopoulos, BP CEO Tony Hayward said:
“I think we’ve made enormous strides as a company in the last three or four years with a remorseless focus on safe, reliable operations. Ah, this wasn’t our accident. This was a drilling rig operated by another company. It was their people, their systems, their processes. We are responsible not for the accident but we are responsible for the oil, dealing with it and cleaning the situation up.”
However, here are my recommendations:
- Mr. Hayward should have been mindful of all his operations. In the middle of the disaster recovery efforts soon after his interview on ABC, another negative headline was published: “Washington state fines BP $69K for violations.”
- Mr. Hayward’s initial comment should have been a strong note of empathy regarding the need for due diligence in safety.
BP’s Web site mentioned a only minimal number of advisories per day with links to Twitter and Facebook are insufficient. Why?
This is a war – a war to save the environment, the livelihoods of families depending on fishing and tourism, and the company’s reputation. Where were the pictures of a hardworking CEO, in oil-stained work gear, directing crews like Gen. George Patton in World War II? Where were images of him conferring in teamwork-style with government representatives?
Furthermore, published revelations in this typical headline, “U.S. exempted BP rig from impact study,” looks terrible for BP and a federal agency. The article indicated BP lobbied for an exemption in order to avoid an environmental impact analysis. The waiver was reportedly rubber-stamped by the Minerals Management Service of the Interior Department.
The Obama Administration also deservedly received criticism for its initial tepid handling of the accident, including this commentary: “Government scholar Paul Light calls on Secretary Napolitano to step down.”
To minimize the damage, BP should have immediately accomplished five tasks:
- Issue regular, frequent progress reports
- Control the pictures (even some on the Web site appeared to be canned or generic)
- Transparency
- Display empathy as a concerned corporate entity comprised of authentic people diligently making a good-faith effort to solve the problem
- Stop lobbying for environmental waivers
To be sure, BP would benefit from proven crisis management tips. Further, the oil company would also benefit by using a best-practices checklist for green branding and marketing.
From the Coach’s Corner, here are 19 Tips to Protect Your Core Assets from a Disaster.
“We made too many wrong mistakes.”
-Yogi Berra
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Marketing Essentials on a Shoestring Budget
Part two of a three-part series: How to grow your small business
Why do businesses sometimes falter? Let’s get the perspective of a retired longtime business professor and business counselor who is actively pursued for his opinions.
“One reason is they fail to understand their special niche or their market,” said Neil Delisanti, who enjoyed a unique, long career as a business professor at the University of Puget Sound and The Evergreen State College. He also ran the Small Business Development Center (SBDC) in Tacoma, WA, where he advised more than 2,000 firms.
Mr. Delisanti says the mortality rate for small business is high in the first years of operation and it’s still true that 85 percent of businesses fail in their first year. The odds dramatically improve once you’ve survived for five years. So, what can you do to win?
He advises studying the emotions of consumers in their buying habits: “Consumers want to visualize how your products enhance their families, personal lives or professions. Usually in household situations, women make 70-80 percent of purchases. They like hearing the term ‘security’ associated with their purchases. Other key persuasive words include: easy, good, healthy, new, own, proven, and results.”
To learn more about the marketplace, free government data is available at www.census.gov.
Delisanti says businesses grow by developing core values, a vision, and a business plan: “Don’t fantasize about what you think the market will be, or even worse, what you want it to be. Find out well before you invest your hard-to-accumulate capital, or take a financially irreversible action. Most businesses will fail, if they don’t understand the market niche they are trying to serve.”
He warns about the danger of cannibalizing your business: “This often happens when a business opens another location or takes on an additional, but similar product/service. If your first store in Los Angeles has customers coming from Pasadena, when you open the Pasadena store, you will lose their business in Los Angeles. So you may see a sizable loss of sales from the first location or the original product.”
Whether you’re challenged by other small companies or so-called box stores, he emphasizes the Internet is the easiest, most-economical way to check out competitors: their product descriptions, prices, customer lists, staff profiles, branding, and their target niches.
He prefers www.yahoo.finance for free financial data on big firms. You can research the press coverage of competitors by entering www.google.news and type the name of the Web site you want to research.
To see which Web sites drive traffic to your competitors, go to Google and type “link,” a colon, a space, and then their Internet address. You can request them to link to your site, too.
You can check your competitors’ marketing strategy for free by researching listings of trade shows at www.tsnn.com. Trade magazines and associations sometimes provide information and startup resource kits.
Above all, visit www.sba.gov/sbdc or call the SBDC office near you.
Branding
“Regarding your brand, which will help set you apart from others, make certain you give adequate thought to your name, logo, slogan, pricing, location, and anticipated level of customer service,” said Mr. Delisanti. “Next, research what you need to trademark to protect against plagiarism and focus on presenting a consistent message.” (In Washington, the Secretary of State’s office will trademark a name or slogan for a nominal fee.)
Because advertising by itself is no longer adequate, your strategy for growth should include stimulating consumers into talking about your company’s value at the water cooler while they’re at work. That means a strategy of buzz marketing, which basically consists of three elements: paid advertising, earned advertising, and developing centers of influence.
In paid advertising, try to accomplish two objectives – short term sales and long-term branding success. However, this makes budgeting for advertising a bit tricky; 2 percent of adjusted gross sales is the maximum for most businesses. Some suppliers have co-op programs and will pay part or all of your co-op, which is welcomed by newspaper, radio and TV sales people. Co-op ads are an economical way to drive traffic to your Web site, but remember a good-looking Web site doesn’t guarantee success because it often merely serves as an online brochure.
If you can afford TV advertising, make certain your commercial airs regularly and is highly visual. Don’t underestimate the value of audio to help grab the attention of viewers. Avoid the temptation to be too cute – concentrate instead on the benefits valued by consumers. Remember the Taco Bell Chihuahua dog? Sales actually dropped and the chain was forced to change its strategy.
It’s possible to dominate with a high frequency of TV commercials in off-peak hours. Understand whether you need a 5, 15, 30 or 60-second commercial. I like to air two 15-second commercials twice in the same break, at the beginning and again at the end. Known as bookends, they can accelerate your brand awareness. Be sure your messages don’t air adjacent to competitors.
Radio is good, too. As I do with TV news programs, my preference is a respected all-news or news-talk station. You’ll reach an active, socially aware audience. Their listeners’ average net-worth is usually higher. A good classical music station is good, too, for reaching successful listeners.
Sponsor worthy events and local news coverage to become a magnet for community-minded consumers with good credit.
Pitfalls
Pitfalls to watch: Direct mail coupons only attract price-conscious consumers once after each mailing. This means coupons won’t attract repeat customers to enhance your brand equity. With the success of the Internet, young adults increasingly ignore radio stations and newspapers.
Your paid-advertising campaigns need to be synchronized with earned advertising – good press about your business. Public relations is an art, but you can accomplish effective PR with a quality press release, if journalists see that you’re newsworthy. Note: journalists and bloggers also often take note of cause-related marketing campaigns that benefit the community.
Public relations is enhanced with video press releases.
You might benefit from unplanned PR opportunities by frequently advertising on TV news programs. Journalists will see your ads because they watch to evaluate their own reports as well as the work of their competitors to make certain they aren’t scooped on major stories.
A case study: After one of my clients consistently sponsored news programs for one year, a Seattle TV producer called me to request a live interview of my client regarding a new product; I hadn’t even submitted a press release. (The reporter is now an NBC newscaster.)
Developing centers of influence is a strategy of generating buzz with influential people to create referrals. Join professional, business, and civic groups (i.e. Rotary). Focus on value and customer service with strategic partnerships. For example, I’ve enjoyed synergizing clients, such as credit unions and car dealers. The credit unions advertised car sales in their newsletters, which resulted in credit unions loaning funds, dealers selling cars, and consumers happily driving home.
Don’t forget social networking media and blogging informative articles. That’s a subject in itself. Check elsewhere on this site for additional tips.
Other Delisanti reminders for growth:
- Develop multiple revenue streams and a new product line.
- Be pro-active, which means making old-fashioned cold calls.
- Maintain relationships by sending greeting cards, thank you notes, special offer notifications, and an occasional visit or phone call to just chat and not sell. Make certain your small business voice is heard – vote and make your business concerns known to lawmakers.
To check out the other two columns in this three-part series, how to grow your small business, see:
10 Scholarly Solutions for Selling More Products
Management and HR for higher performance
From the Coach’s Corner: To summarize the principles of marketing essentials for growth on a shoestring budget, consider the words of Theodore Roosevelt: “Do what you can, with what you have, where you are.”
