Archive for the ‘crisis management’ Category

How regulators deal with a PR crisis: EFSA releases crisis simulation report

Food and beverage companies operating in Europe would do well to take a look at the European Food Safety Authority’s (EFSA) recently released crisis simulation exercise report. For a number of reasons.

First of all, it reinforces the importance of training when it comes to crisis management. A great process, and a motivated, action-oriented team are both essential, but the glue that holds it all together is an established training regimen that builds team competence. Football fans know there’s a huge difference between a champion team and a team of champions.

Secondly, if you’re in the food and drink business, it’s really important to understand how regulators are likely to react to your issue or crisis. Crisis communication reinforces the importance of well-managed stakeholder relationships, and if you have a significant enough crisis of your own, chances are you’ll be giving EFSA a call yourself. It’s a good idea to know how that’s going to go down. When our Issues & Crisis team runs simulations, we always take a broad view of stakeholders (it’s no good just worrying about media – you also need to think about government, or your social media audiences).

Thirdly, simulations are resource-intensive. While regular training and testing is important, it should also be incumbent on staff to maintain a minimum standard of self-education. Reviewing other organisations’ case studies and reports is one way of helping to achieve that. Even better, if you’re familiar with your stakeholders’ crisis management procedures then you’ll be in a better position to help them out should they need it. And helping people out of a bind is a great way of building your relationship with them.

Twitter terror: why business managers should be afraid of social media

In the past I’ve been rightly accused of getting a bit wordy on here with some of our more analytical posts, so today we’re going to try something a bit different.

Here’s a proposition I want to test before I do something as stupid as say it in public, and we’d welcome your feedback.

There are two reasons why business managers should be afraid of social media. Only two. Here they are:

  1. You are doing something you shouldn’t be, and people will find out.
  2. You are not doing something you should be, and people will find out.

The only caveat I’m going to put on the above is that what you “should be” or “shouldn’t be” doing is of course open to interpretation. But then, that’s why you have a PR department…

Thoughts, criticisms and opinions all welcome, but please try to stay on topic.

Communicating change in a crisis context

In a couple of weeks, our Change & Internal Communication team will host one of their world-famous discussion forums, this time looking at the relationship between change and communication. While a crisis isn’t usually the same thing as a change management programme, often times a change programme can be the trigger for a crisis.

Often we’re asked to define what we mean by “crisis”, and I tend to work on the broad principle that a crisis is anything that prevents you being able to get on with business as usual. By contrast, an issue is something that you’d proably have to deal with as part of your typical day-to-day workload (so in this example a customer complaint is an issue, 200 customers protesting outside your flagship store is a crisis).

By definition then, any kind of organisational change carries with it the potential to spark a crisis of monolithic proportions. Here are a few examples of the kinds of things that can go pear-shaped in a big hurry:

  • Redundancy / restructuring programmes
  • Appointing a high-profile new supplier (or ditching an old one)
  • Pretty much anything involving the implementation of new technology
  • Re-vamping an established and much-loved brand
  • Collective and enterprise bargaining negotiations

If you’re in London on 10 March I’d strongly recommend trying to get along to our event. You can register your interest by clicking through to Scott McKenzie’s blog post announcing the event. Members of Hill & Knowlton’s Issues & Crisis team will also be there (including yours truly if you fancy providing some in-person feedback on the quality of our blog posts!).

For those who can’t make it we’ll revisit this topic after the event to share some of the key points from the discussion.

PS about half an hour after posting this the BBC was sporting enough to post this story on anticipated public sector strike action in reaction to proposed cuts to civil service redundancy terms. You know you really want to come to our event now!

Tim Luckett talks crisis management in PR Week

With big brands dominating 2010 headlines for all the wrong reasons, PR Week’s feature on crisis communication is both timely and a good read. Contributions from Hill & Knowlton’s Managing Director of Issues & Crisis, Tim Luckett.

Are you getting the most out of the Hill & Knowlton crisis network?

One of the great things about having a blog is the ability to analyse in minute detail the behaviour of your visitors. When we kicked this one off back in October we had hoped that we’d be able to connect our UK-based readers with some of the best crisis management and media training thinking in the global Hill & Knowlton network. But while some of our readers have explored Collective Conversations, many have not.

So, here some of my favourite blogs from around the Hill & Knowlton world. This is one of the great benefits of being part of a big, global company, so take a spin around the network and check out:

  • Crisis Musings. Insights into current issues and crises from the US.
  • Brendan Hodgson. The platform for one of Hill & Knowlton’s leading lights in digital crisis management. We were fortunate enough to have Brendan in our offices last week and will be sharing some of his latest insights with clients and on this blog over the coming weeks.
  • Shaping Conversations. Hill & Knowlton London’s new community blog has a lot more scope for conversations about communication and PR in general, as well as being a great place to put faces to some of the agency’s names.
  • Bandwidth. Our Canadian social media gurus share their thoughts here.
  • Influencing the Influencers. Courtesy of our Australian Public Affairs team, some great insights into the workings of the people in government (rather than just the big machine itself).

Got a Hill & Knowlton favourite that’s not on here? Leave a comment and we’ll add a link for everyone else to enjoy.

Protecting your brand on Twitter is just one part of good crisis preparation

We talk about Twitter in the context of crisis management quite a lot on here – mostly because it’s a good way of getting people to visit our blog (fact: posts with “Twitter” in the headline average around three times the readership of our next most popular group as of writing this).

However, when it comes to practical applications, much of the world seems to be still coming to grips with what companies can actually use Twitter for, at least according to the moderator of this week’s Frontline Club meeting (yes, yes, we all know it’s fabulous).

What we do know is that like any other online activity, Twitter isn’t immune to hackers. In his post Is your brand protected on Twitter?, fellow Hill & Knowlton blogger, the irrepressible Dan Leach, gives a number of tips to help you get the basics right for your corporate (and personal) Twitter accounts.

The security of your Twitter account should be as important to your company’s Twitterers as the login details for their computers.

Corporate manslaughter guidance results in bigger risks to reputation

posted by Peter Roberts

The Sentencing Guidelines Council has just announced that companies convicted of corporate manslaughter will face fines upwards of £500,000.

The fines will apply to all companies found guilty in the courts from this week, even if the actual incident happened some years ago. You can read more here.

The guidelines recommend fines from £100,000 up to hundreds of thousands of pounds be imposed for offences that cause death.

The move clearly means additional scrutiny of corporate health and safety practices and for individual directors, managers and other employees there is the threat of up two years in prison.

If such penalties are to be avoided, the safety culture within the place of work, quite fundamentally, needs to be deemed as critical as any another aspect of the business. This will be a gargantuan communications task for many organisations, who have not only tended to marginalise this part of the operation, but are often composed of a mixed workforce including contractors and joint venture partners, which makes the process harder.

Naturally, organisations can help themselves pre-empt such scenarios and a critical first step is to identify the threats – both inside and outside the business – a company faces. This formal risk audit is something we spend a lot of our time doing at Hill & Knowlton. Corporate threats take on different forms pending on the organisation, from waste disposal practices, to haulage policies; pressure groups to flooding.

For help in reviewing any threats that your organisation may face, please get in touch with us by clicking here.

Sponsors should be there for a good time, not for a long time

As if celebrity sports stars haven’t had enough bad publicity in the last few months, last week’s news regarding John Terry’s extra-marital activities have given the football-mad English media even more fodder for their ongoing moral crusade.

Interestingly though, England team management showed that they’ve learnt some lessons from other recent scandals, acting quickly and decisively to strip Terry of the England captaincy, a decision Hill & Knowlton’s Head of Sports & Partnership Marketing, Andy Sutherden, was asked to comment on for Sky News.

This isn’t going to be a post about whether or not sponsors should stand by their talent in times of duress, but rather a look at how the logistics and terms of a sponsorship can be used to provide sponsors with additional layers of protection.

What I like most about Andy’s piece is his observation that sponsors need to start thinking in a shorter-term mindset. Rather than locking in a 2-3 year deal, looking instead for 6-12 month contracts instead.

Those sponsors locked into long term contracts may find themselves dependent on reactive measures, such as sponsorship bodyguarding, to safeguard their reputation if and when their association comes under fire.

However by having the foresight to negotiate shorter-term, possibly rolling contracts, sponsors can more easily distance themselves from a disgraced fallen idol (if that’s deemed the right thing to do). It’s a great example of thinking laterally about an issue to find a solution that mitigates risk, rather than trying to manage impact, and points back to previous posts we’ve written on the importance of behavioural change as a solution to an issue or crisis.

Eurostar’s snow crisis report released

Further to our previous post on Eurostar’s pre-Christmas snow crisis, today has seen the release of an independent report into the crisis, commissioned by the company.

This BBC story is among the most balanced pieces covering the release of the report (I haven’t been able to find a copy of the report itself, so if any of our intrepid readers want to forward a copy we’d love to receive it).

What’s to be expected is that across the board, media coverage focuses on the specific problems and who’s to blame, and in this respect it doesn’t disappoint. What I would have liked to see is a bit more prominent reference to the solutions. We’ll just have to be happy with Eurostar’s commitment to invest £30-plus million in implementing all of the review’s recommendations. It’s encouraging to see that communication featured prominently in the three core recommendations handed down by the reviewers:

  • Train reliability – engineering improvements to enhance the reliability of its trains
  • Evacuation and rescue – improvements should be made to tunnel evacuation and rescue procedures, to ensure passengers can be transported from the tunnel quickly and effectively
  • Managing disruption and improving communication – improvements to assist passengers better and provide more effective communication in times of disruption.

The key word here is “effective”. Communication for its own sake is pointless at the best of times, and a downright detriment during a crisis.

There have been a number of references over the past weeks about the importance of learning from previous experience and today’s report reinforces that message.

How good crisis management can protect shareholder value

Measuring the impact of PR is the bane of Marketing Directors the world over. On a personal level, I’d argue that measuring the marketing effect of PR is the problem, rather than measuring the impact of PR as a management function.

To support this heresy, I point to a study conducted a number of years ago by the researchers Rory Knight and Deborah Pretty. Their study, The Impact of Catastrophes on Shareholder Value, highlights two groups of factors that help companies to retain (or grow) shareholder value in the days, weeks and months following a crisis.

Direct factors largely consist of financial safety-nets, like the company’s insurance policy and cash reserves.

Indirect factors are largely attributed to the perception of competence displayed by the company’s management during and immediately after the crisis. And here’s where communication (crisis PR if you like) plays a massive role.

If you really think about it for a second, communication is the only way information ever gets out of the room and into the world – whether that’s into the brains of the company’s workforce, the pages of its annual report, or the copy of The Huffington Post. It’s all public relations because it’s all about relating the company to…the public.

As we often say on this blog, we can’t judge the performance of the people in the room by what we read in the media, simply because we don’t have the same information as the people in the room. However, when it comes to instilling confidence in an audience, that usually requires sharing some of that information, in a way that’s easily accessible to that audience.

That’s largely the point of the crisis management function. We help convey that information more effectively during times of distress. And because we can see what happens when that’s not done well, researchers like Knight & Pretty are able to demonstrate the impact of a job well done.

I’d strongly recommend downloading the full paper – it’s only 20-odd pages and makes a compelling argument for your communication investment.