Sunday, April 6, 2008

To Sum It Up...

Blogging for the past 10 weeks has been quite an experience for me.  Until Audience Research this semester, I had little understanding of what blogging was.  I didn't know why blogs were useful or why people were so interested in them, and frankly, I didn't care.  Well now that I have my own blog, it's safe to say that my perspectives have changed.  Not only do I have a greater understanding and appreciation for the field of crisis PR, but I have also learned so much about the importance of blogging!

Twice a week for 10 weeks I have surfed the Internet, sometimes for hours, in search of a good quality article to blog about.  PRweek, Businessweek, and communications blogs were my favorite sources of blog-worthy crisis PR stories.  Through my plethora of different sources, I did find a common thread that connected each story together.  Although crises and situations differ greatly depending on the company, celebrity, politician, etc., public relations always has a role to play.  Something that I noticed through my blogging is that bad PR is similar in many cases, and effective PR is similar in many cases.  If we could take a step back and look over the mistakes too many people have made when trying to handle a crisis, perhaps we wouldn't have those problems anymore.  Likewise, if we take a step back and look over the good tactics and strategies, perhaps we could set some rules and guidelines to help fix any situation.  
So based on my posts, I have noticed a general theme and I will list them as PR DO'S and DON'TS...


DO - 
1.  Have one spokesperson to address the media and public:
- Having one central person to go to for all the information of a situation is key.  With e-mail, instant message, cell phones, and social networks, the rumor mill works faster than ever.  This is why it is so crucial to have a reliable source with direct relation to the company (celebrity, politician, etc.) relaying the accurate news.  This helps to settle any confusion and hopefully to reduce the gossip.
  
2.  Be immediate:
- Waiting a while after a crisis to see if a situation can just fix itself is simply not the way to go.  The public must be informed once the issue has come to the attention of the company.  If there is a leak and the media gets a hold of a story before official word has come out, they can (and will) spin it in whatever way makes it the most newsworthy.  This could mean even greater destruction for your business.  By waiting to speak, the public will assume that you have something to hide and cover up.  This will almost undoubtedly lead to feelings of mistrust and skepticism.  Therefore, it is best to make some sort of statement right away, even if not all the information is available to you yet.  

3.  Be honest!:
- It's the golden-rule of public relations people!  Own up!  The truth will come out sooner or later.  It is far better for your reputation to tell the truth from the beginning, rather than lie about it and have it discovered in the end.  Is it embarrassing?  Yes!  Is it a blow to your image?  Yes!  But the past has shown us that being honest to begin with is better received than lying about it and owning up later.  The public and even the media can forgive and sometimes forget as long as the information they get is accurate.  When people find out they have been lied to, they feel betrayed, foolish, and are way less likely to give you a second chance.  


DON'T - 
1.  Play down the importance of a situation:
- Any crisis, not matter how big or small, should be treated as a crisis.  Telling concerned citizens that 'it's really not a big deal', is a horrible way of handling a situation.  It's always a big deal.  If people are confused or concerned and looking to you for answers, this is the last thing they want to hear.  Instead, tell them how the situation is being resolved, what has been done, progress that has been made, etc.  Offering guidance and support is much more effective than making people feel dumb.    
2.  Refuse to answer any questions:
- Withholding information is like digging your own grave.  Again, the truth will come out and the public will find it hard to trust you once you've betrayed them.  Not informing those concerned leads to negative assumptions, negative attention, and negative rumors.  Explain what you know, because saying 'no comment' does nothing to help a situation.  This leads to skepticism and doubt amongst the people that could make or break you as a company, leader, or celebrity.  

3.  Do nothing:
- Informing the public about a situation is not as far as crisis PR train goes.  In order to actually fix a problem you can not sit back and let it play out.  You must be proactive and work to change whatever is wrong.  If people have a negative image of you and consequently spread bad word of mouth (which happens a lot), start a blog of your own and get in on the conversation.  You must make something happen because the talk doesn't stop just because you aren't a part of it.  


Through my blogging experience of crisis communications and crisis public relations, this has been the general trend of guidelines that I can offer to you.  It seems so simple to want to follow each of these rules, but in practice it is much harder.  If it was easy, every troubled business, corporation, politician, and celebrity would be smooth sailing.  And so we hope that those we turn to for PR advice are smart enough to realize and advise us what must be done and not done in order to resolve a problem.  

Hopefully this knowledge that I have gained will help me in the future.  This stuff seems like such common sense, but I am confident that reading and blogging about real life examples and consequences of choices that have been made in the past, will help me in my future career.  You don't have to be a PR professional to need this kind of knowledge.  It will help me to make smart decisions wherever I end up in life.   

This experience has also opened my eyes to the world of blogging.  I never knew how many people wrote blogs and on such a variety of topics.  There is such freedom in what you can post and it feels good to share what you know with others who have the same interest.  Blogging helps us keep up with current conversation, and even be a part of it.  In a strange way, when I got a comment from someone I blogged about, it was exciting!  I felt like I was contributing something and it felt good.  Blogs help to share passions, speak out, and even (in relation to my blog) solve a crisis.  Their uses are endless, and they are going to continue to grow and grow.  I can honestly say that I am glad we did this exercise.  I feel like I have an advantage over my peers who are unable to understand and appreciate the importance and versatility of blogging!

Although this is my last post, my presence from the blogosphere will not be gone forever.  There is no doubt that I will be back writing about bigger and better things!  Until then....thanks for reading!


Thursday, April 3, 2008

WOM destroying Wal-mart

It is no secret that Wal-mart has been under scrutiny for their questionable business ethics and practices for some time now.  For as long as I can remember, there has always been something negative being said about this 'evil corporation.'  It seems clear that Wal-mart has been in a long-term crisis that continues to deteriorate their image and reputation, keeping their PR company, Edelman, busy 24/7.

We have all heard the horror stories of Wal-mart's poor treatment of employees, the cheating out of benefits, the greedy tendencies and seemingly moral-less ways.  This poses a serious problem for the multi-billion dollar corporation.  They need to turn their reputation around before everyone begins boycotting.  In my opinion, the issue is not whether the facts are legit. Are these stories even true?  This doesn't really matter.  The problem stems from the fact that people SPREAD these stories, regardless if they're true or not.  Not only do they spread them, but they spin them anyway they want based on their opinions.  This is the bad side of word of mouth marketing, and this is exactly what is destroying Wal-mart.  

Jeff Jarvis is a great example of a blogger spreading a negative image of Wal-mart to internet readers.  In his post, he relays the most recent horror story of a Walmart former employee, Debbie Shank who was hit by a truck, severely injured, won a lawsuit, and then was sued by Wal-mart who wanted a cut of her winnings.  This makes Wal-mart out to be the bad guy...but is this really the whole story?  Is Wal-mart as bad as everyone makes them out to be? 
 
My point is that it does not seem to matter.  With social networks and interactive blogs, people can say what they want and influence the opinions of others so easily.  So what does Edelman and Wal-mart do to combat this negative grape-vine effect of WOM?  Well for starters, Wal-Mart has their own blog that attempts to shine a positive light on the business.  They post consistently about what's new with the company, perks for their customers, new products coming out, what they are doing to help the community, etc.  

As I discussed in a previous post, blogs have become a great new strategy businesses have begun utilizing to combat negative WOM.  Although information coming right from the source obviously portrays a bias position, it is important that Wal-mart portray their side of the story.  If they just sit back and let the smack talk happen, I believe this company would have been in shambles a lot sooner.  What they need to do is prove people wrong and get some positive stories spread throughout the nation.  Using word of mouth marketing effectively can really increase a company's success.  So who knows what their reputation will be in 10 years, but I do think their blog is a solid step in the right direction for Wal-mart (from a PR standpoint that is...)    

Tuesday, April 1, 2008

The Ship Sails Smoothly

In USA Today travel news, it was brought to my attention that smoke was seen rising from the Grand Princess, apart of Princess Cruises, last night.  It is being reported today that the smoke was simply caused by engine failure.  Not a big deal, right?  Well...perhaps.  However when eye witnesses in Ocho Rios (its port of departure) assumed it to be a fire, media outlets in Jamaica went crazy.  Papers such as the Jamaica Gleaner published a story about the "fire" and how there were nearly 1,500 passangers on board in danger.  It became clear that another paper, the Jamaica Observer, does not check their sources when journalists reported that it was an oven fire that caused the smoke.  Naturally, these published assumptions create panic, concern, and more rumors, which only spells trouble for Princess Cruises.


With a solid PR move, a statement was immediately made by Princess spokeswoman, Julie Benson, in response to the false, conflicting, and confusing Jamaican news stories.  She assured people that the smoke was due to the failure of one of the ship's engines, not a fire.  She went on to calm peoples nerves by  exclaiming, "there was no fire, and the safety of the ship and our passengers was never compromised."  

Benson first explained to the public the issue, "Upon departure from Ocho Rios yesterday, one of Grand Princess' engines suddenly stopped, emitting a large amount of smoke into the engine spaces."  She then went on to calm peoples nerves by exclaiming, "there was no fire, and the safety of the ship and our passengers was never compromised."  Further more, she kept the public informed by updating at 1:45 when new information was brought to the cruise lines attention.  Benson told USA Today that the damaged engine will be out of commission for the rest of the week while it gets repaired, and that additionally, two of the other engines failed as well.  She assured voyagers however that the vessel is getting power from three of the six engines, which is enough to finish the trip with no more delays.

I think this is a great example of settling a minor crisis and not allowing the situation to get worse.  Having one spokesperson for the cruise line that everyone could turn to for accurate, up-to-date information is key.  She was not only immediate with a response for the public and to the false Jamaican reports, but she was honest and informative.  When people know what exactly is going on behind the scenes, they are able to calm down and lower frustration.  This can also create a sense of trust in the business.

In addition, I like how Benson kept the media in the loop and updated when new information was brought to her attention.  Even though the news of greater than anticipated engine damage wasn't necessarily good for the business, it was for the good the concerned public.  I believe that any issues people may have had with Princess Cruises from this incident will now be settled and even irrelevant due to the wise way it was handled.  

Thursday, March 27, 2008

Unorthodox Solutions Pay Off!

When in the midst of a PR crisis, it would seem natural to become nervous, irritable, and anxious.  Take this case for example:  you and your place of employment have been personally attacked in a way that has the potential to harm your reputation.  What do you do?  Getting angry, seeking revenge, and demanding a public apology seems to be the obvious solution. However, your reaction to the situation can determine the effectiveness of the outcome.

Dennis Miller, former assistant PR director at Elmira College (EC), posted on The Higher Ed Marketing Blog about an incident that occurred to him, and his unorthodox response which turned out to be a highly effective solution!  During a snowstorm, Big Ange, well-loved radio DJ, slammed Miller and his boss, Martha Horton, for not informing the station of the status on EC's closing.  He went on to say, "Martha Horton, Dennis Miller, they're the worst PR people in the world!  The worst!"  Clearly, damage was done and repairs needed to be made.  Although the president of the college wanted to sue for slander, Miller had quite a different idea.  

Miller invited Big Ange on a tour of the EC campus, which he complied to.  He met and conversed with not only several employees, but also the school's president.  Knowing that Big Ange was a lover of food, Miller arranged to have him taken to the dining hall where he was served a six-foot sub.  Miller took pictures and wrote an article the next day for the daily paper, increasing Ange's local stardom status.  

That morning, Big Ange raved about Elmira College, providing EC with plenty of unpaid endorsements, consequently reversing any negative publicity that was caused from the previous day.  The free publicity EC received went above and beyond what any lawsuit would have brought them.  This goes to show you, that when you are in a PR pickle with your reputation on the line, sometimes all you need to give is a little bit of love.  Reaction can be everything, and being able to keep your cool and think rationally can ultimately help in the end.

Tuesday, March 25, 2008

Blogs as Effective PR Tools

All these weeks I've been blogging about crisis PR, I never stopped to think how blogs can actually be a crucial aspect of a crisis communications plan!  While browsing the blogosphere, I came across Chris Turner's Corporate Communications Blog.  Chris is a media relations manager and writes very interesting and informative posts.  Through his post Blogs in a Crisis (parts 1 and 2), I realized that blogs are an extremely important tool that have the potential to help organizations in crisis respond quickly to those who need the information.  

My focus of Turner's post was the Tornado that swept through Jackson, Tennessee, absolutely destroying the campus of Union University in early February.  With this example, he shows how blogs and social networks have become vital in getting through a crisis successfully.  After the tornado hit, the university's web site was down.  Friend of Turner and News Director of the University, Tim Ellsworth, knew that word needed to get out fast to parents and other concerned citizens.  While writing a news release, he discovered that just minutes after the destruction, Turner's friend, Steve McCoy, had already posted regarding the incident.  Making a smart move, Turner decided to comment on McCoy's post using the information from the news release he was writing.  This turned out to be an effective way to inform the public and to reach those who were seeking this information.   Within minutes, parents, alums, friends, etc. began turning to this blog for the latest information.  Less than a day after the big blow, Chris notes how there were more than 200 bloggers posting comments, information, pictures and videos regarding the tornado.  In fact, this turned out to be a great way to connect the students to their parents.  

The use of blogs in this situation was an effective maneuver for spreading the word in this time of crisis.  President of Union University, Dr. David Dockery was praised for making himself accessible and visible.  Fortunately for him, I believe that due to the blogs, much of the pressure was taken off of Dockery.  Had parents not been able to receive any sort of information, there certainly would have been growing concerns and frustrations, which could have caused Dockery's leadership to be questioned.  For about a month, Tim Ellsworth updated his blog regarding the recovery effort in order to continuously get new news and information out there to those who needed it.  All in all, this tactic, to me, was brilliant.  It just makes sense to turn to immediate and interactive social networks such as blogs to receive and share vital information during a crisis.  

The Big Blog Company suggests that the blogs role during a crisis includes:

1.  to disseminate the facts, staying ahead of the news cycle
2.  to project a company's message
3.  to combat error and squash rumors

Blogging as crisis management is suggested to be done by one person in the company who then reports to the CEO in order to verify facts.  The point of using a blog as a tool is to record company's management of a crisis, to correct errors, and to report facts.  By providing accurate information regarding the company, and NOT opinion, this can be an effective PR tactic.  Also, as Turner suggests, part of a crisis communications plan should be assigning a person to monitor blogs in order to respond appropriately to others who are writing about you or your company. 




Friday, March 21, 2008

Starbucks Needs to Take Action!

The largest U.S. coffee-shop chain, Starbucks, is in trouble with its employees and the law. Bloomberg Television reports that Judge Patricia Y. Cowett of San Diego Superior court ruled that Starbucks must pay penalties in the amount of $105 million for illegally using servers' tips to pay superiors.  Employers taking tips from the baristas is prohibited under California law.   Now, 100,000 Starbucks servers from 1,400 California locations will be repayed as restitution.  It was determined that a shocking $87 million was improperly distributed by the company to its supervisors.  

So what does this mean for the public relations of Starbucks? Since the ruling was just announced, any negative effects on the company are yet to be determined.  In fact, Starbucks actually rose 3 cents in the Nasdaq Stock Market yesterday.  My concern for this chain is not only the public relations, but especially its employee relations.  This negative attention could possibly start a domino effect and spin out of control.  This could spark even more filed legal complaints if this issue is happening elsewhere in the country.  If workers feel unappreciated and undermined by their employers, it is likely they will either quit or simply not care about their job responsibilities.  Unhappy employees undoubtedly leads  to unhappy customers, which is in no way good for this company.  Additionally, disgrunteled employees never hesitate to vent about their concerns, which in this day and age is extremely easy to spread word about. With the Internet, blogs, chat rooms, etc., spreading complaints and gossip about a company catches on like wild fire and often times receives extremely negative public attention and even worse, press.  This is why I purpose Starbucks take action NOW before it's too late.


When asked about the California ruling, Starbucks spokeswoman Lara Wyss would not return calls for comments.  In my opinion, this is very dangerous.  Although there is no huge PR crisis right now, Starbucks management should be looking to the days ahead.  I first think it is crucial to issue an apology to their employees, or at least make a public statement regarding the situation.  Also, I would suggest that Starbucks initiate an employee incentive or employee recognition program.  I believe this would be the best way to retain their current workers as well as continuing to attract new ones.  Aside from following the law, Starbucks must focus on keeping their employees happy so that this situation doesn't spin out of control, and cause a serious public relations mess.  

Thursday, March 20, 2008

Gibbon's Bad Moves

It is considered old news that a Las Vegas clinic was found to be using unsafe medical practices, putting the health and safety of Nevadans at risk.  Now, being nearly 3 weeks since this crisis unfolded, the heat is on yet another governor.  Governor Jim Gibbons of Nevada just announced Monday that immediate, aggressive action is needed to restore public trust in the health care system.  However, rather than journalists focusing on the Endoscopy Center of Southern Nevada, where several Hepatitis C cases broke out, attention is on Gibbons and his failure to act fast enough.

Not only is he being accused of not taking the hepatitis C outbreak seriously and delegating his responsibilities, but his leadership is being questioned.  This has led to a series of denials by Gibbons, which is not seeming to help this ordeal he's in.  So how is he handling his current situation?  When I was trying to determine my thoughts on the issue, it helped to get a feel for what he has done and said since the outbreak became public.  Here is a general timeline, according to the Las Vegas Review-Journal, so you can decide for yourselves if Gov. Gibbon's actions, words, and timing has been appropriate:

February 27 - Crisis becomes public:  Notices sent to 40,000 patients to test for hepatitis and HIV

March 06 - Gibbon's first official response to the health alert in the form of a news release. He called on the Department of Health and Human Services to address the "public health emergency" by using any and all resources, including the Disaster Relief Fund.  "With the health of so many Nevadans seemingly at risk, as governor, I feel it is imperative that we act swiftly and decisively to help restore public trust and to ensure that unsafe medical practices are halted immediately."

March 08 - Senator Joe Heck (also a physician) publicly accuses Gibbons for failing to take more action.  "Nevadans deserve much better than this, and they are looking to their elected leaders and the medical community for a swift, thorough and decisive response to this crisis in order to regain their trust and confidence."

March 10 - A news conference is held by Gibbons to answer media questions.  He stated that he believed criminal action should be taken against the clinic workers who purposefully endangered the public.  However, when asked on his thoughts of clinics receiving more oversight, he compared the situation to speeders.  "We could inspect surgical centers annually and then pretty soon, have we done overkill?"

March 15 - Gibbons explains to the Reno Gazette-Journal that the unnecessary "media buffoonery" is to blame for scaring the public.  He stated that six hepatitis cases was actually a small number.  This causes shock amongst the public.

March 16 - The governor declares that he is asking three members of the medical board, including the executive director and the head of the Bureau of Licensure and Certification to step down.  He publicly apologized for his "buffoonery" statement.

March 17 - Gibbons announces that an advisor to Dr. Dipak Desai, the clinic's owner, is resigning.  He calls for strong action to be taken immediately.  "We cannot wait.  We cannot linger until all the information is in while we are under this crisis of confidence in our public health care system.  He have to take action."

This brings us to the current day and the current situation.  In my opinion, which is the general consensus for the LV community, the call for action three weeks after the outbreak is just too little too late.  Especially after several appalling comments, I would have to agree with questioning his leadership.  Even with all the criticism, Gibbons defends himself.  "I don't think we waited long.  Additional information was coming in daily.  When I received additional information after Saturday, it became very clear that we needed to take action, and that's what we're doing today."

This won't save the governor though, and unfortunately for him, this is not a good public relations pickle to be in.  Not shockingly, political scientist Eric Herzik, explained that with the governor's longtime press secretary leaving last month, his public relations team is in transition with a new one scheduled to start next week.  Hmmm....well this could explain his lack of appropriate action and comments.  It's crazy to think how much politicians rely so much on public relations to get them through, and out of a crisis.

Eric Dezenhall, CEO of the international crisis-management firm Dezenhall Resources, states, "People are looking for a pathway out of the wilderness.  Ideally, you'd be able to say, 'problem solved.' But in the absence of that, people want to know what your plan is for getting through the uncertain future, and that you're taking a personal interest in seeing in through."  

At this point, it doesn't seem that Gibbons has proven he can lead his people out of the wilderness.  It makes me wonder where this crisis-management advice when the governor needed it?