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Crisis and Issues
          Management
        in the Digital Age

James Hacking
        Rachel Catanach
Vice President
       SVP & Senior Partner, Managing Director
BlueCurrent Group 
   Fleishman Hillard
This presentation




    I. CRISIS MYTHS & LEGENDS   III. THE ‘GOLDEN’ HOUR




  II. LISTEN TO YOUR AUDIENCE   IV. CASE STUDIES
What is a Crisis?
•  Any problem or
   disruption that triggers
   negative responses
   and greater scrutiny.

•  Anything that disturbs
   the natural flow of
   business and – if
   recognized too late
   and addressed
   improperly – can
   jeopardize an
   organization’s very
   existence.
Crisis Myths


                                 The Court of
You can’t       You can                             You lose
                                 Law is more
predict or   control a crisis                      control by
                                important than   engaging with
prevent a    by withholding
                                 the Court of     social media
  crisis      information
                                Public Opinion
Crisis Truths


                                                  The primary
                                The longer a                          A serious
                                                 focus in crisis
Most crises                    crisis goes on,                        problem
              All crises can                     management
  can be                          the more                          becomes a
              be mitigated                       should be the
 predicted                        damage it                        crisis once it’s
                                                 court of public
                                     does                            publicized
                                                    opinion
The Internet is a Crisis
          “Game-Changer”




One person can “light   Crises play on a   Pace of events
      the fire”          global stage       accelerates
                                                            6
Yet the Internet Remains Poorly Understood,
           Under-Utilized in a Crisis


                                        Another	
  channel…
       A	
  burden,	
  a	
  
                                      similar	
  to	
  print	
  media,	
  
     “necessary	
  evil”	
  
                                          television,	
  etc.	
  



                     A	
  “bolt-­‐on”	
  tool,	
  
                   added	
  to	
  a	
  tradi;onal	
  
                     communica;ons	
  
                            strategy	
  

                                                                             7
Scenario
•  You are the
   Communications
   Manager for
   MumCom
9.00 AM Wednesday

•  Michael is a 15
   year old diabetes
   patient. He has a
   doctor’s
   appointment
   today
10 AM Wednesday

•  Michael gets to the
   doctor and it is
   decided he should
   get a brand new
   blood glucose
   monitor. It is a
   MumCom monitor.
10:15 AM Wednesday

•  Michael gets home.
   Mum leaves. He
   unwraps the
   packaging. He
   notices something
   that’s not right.
10:30 AM Wednesday

•  Michael text
   messages Mum. He
   says “OMG, u won’t
   BLEVE – Earwig in
   my new glucose
   meter.”
•  He sends along a
   picture…
10:45 AM Wednesday

•  Mum is appalled… After a
   quick call to the doctor’s
   office, she takes time to
   update her Facebook
   status… she posts the
   picture on Facebook…
                                “OMG, my son just
                                unwrapped his new
                                glucose monitor and
                                there was a dead
                                earwig in it. Can u
                                believe that?”
10:45 AM Wednesday
•  Doc, a prominent doctor,
   specializes in pediatric
   diabetes & is a member of
   the online physician
   community Doctors.net.hk.
•  Doc goes to his computer
   and poses the question –
   Has anyone ever found an
   earwig in a MumCom
   glucose monitor, cos I did…
11:00 AM Wednesday
•  Several of Mum’s 217
   friends comment…
•  One friend asks who
   made the meter?
•  Mum replies “MumCom!”
11:10 AM Wednesday

•  Diabetic friend of Mum’s
   sees this and posts on
   her Twitter account
•  She links it to Mum’s
   Facebook page so
   everyone can see the
   picture.
•  PLS RT -
   @MICHEALSDMUM’s kid
   opened MumCom
   glucose meter with
   earwig in it
11:15 AM Wednesday
•  Dad.ie– a prominent
   blogger and tweeter
   who follows
   MumMichael’s
   diabetic friend on
   Twitter sees the
   tweet and re-tweets
   it… he has a LOT of
   followers
11:30 AM Wednesday
12:00 PM Wednesday
How did this happen?
                                                                                                                                                                Investor	
  
                                                                                              Investors	
                                                       Message	
  
                                                                                                                                                                 Boards	
                         General	
  
                                                                                                                                                                                                   Public	
  
                                                                                                               Investors	
                                                     General	
  
                                                                                                                                                                                Public	
  
                                                                                            Investors	
                                                                                         General	
  
                        Friends	
                    Friends	
                                                                                                                                   Public	
  
                                                                                                      Investors	
                         Media	
  
                                       Friends	
                                                                                                                                    General	
  
                                                                                                                                                                                     Public	
  
                                                           Friends	
  
                                                                                                                                                       Advocacy	
  
                                                                                                Blogger	
                                                                                    General	
  
                                                                                                                                                        Groups	
                              Public	
  
                                                     Friends	
                                                                                                                                             General	
  
              Mum	
                                                                   Blogger	
  
                                                                                                                                                                                                            Public	
  
                                                                                                            Blogger	
  
                                                                                                                                                                   More	
                                   General	
  
                                                                                                                                                                  Tweets	
                                   Public	
  

Michael	
                                Facebook	
                       One	
  
                                                                                                                          Blogger	
  
                                                                                                            Blogger	
                                                                Member
                                                                         Twi1er	
                                                                                                     ship	
  

                                                                                                                                                                                                  Membership	
  
                                                                                                                           Other	
  
                                                                                                                           docs	
                                Professional	
  
              Doc	
                                                                                                                                                Socie4es	
  
                                                                                                                                                                                               Member
                                                                                                                                                                                                ship	
  
                                                                                                                                           Other	
  
                                      Doctors.n                                                                                            docs	
                                                               Member
                                                                                                                                                                                                                 ship	
  
                                        et.hk	
                             Docs	
  
                                                                           Begin	
                                            Other	
  
                                                                                                                              docs	
                            Consumer	
  
                                                                          Twee4ng	
                           Other	
                                            Groups	
                         Membership	
  
                                                                                                              docs	
  
Consumers in Control




                        21
Social Media can make audiences… "

                      Experts




        Spectators                 Broadcasters




        Reviewers                   Publishers




                     Syndicators
So what can we do to stay 
ahead of the curve?
Five Crisis Principles

                                              Forget about
Planning, process
                       Denial is not a          buying an
and practice wins
                       river in Egypt       extinguisher after
     the day
                                              the fire starts


          If you don’t supply
                                  Use online as a
            the information -
                                   crisis tool –
           now – the media
                                  website, search
          will look elsewhere
What are the realities for
          communicators?


                                                  Sometimes
                              C-Suite who
                                                difficult to see
                                 doesn’t
                Not enough                       the wood for
More pressure                understand the
                 resource,                      the trees - not
  – on 24/7                  new demands
                  budget                             all bad
                              of the digital
                                                  comments
                                   age
                                               online are equal
"
II. Listen to your audience.
"
 Why spend millions building your
  brand if you won’t spend a few
thousand dollars on monitoring its
            reputation?"
Getting started 

  1.    Assess vulnerabilities!


  2. "Cover off all audiences!


  3. "Create a team!


  4. "Develop a process map!



  5. "Pick your monitoring solution !



  6. "Use all your channels!
Assess Vulnerabilities




                          29
Cover of all Audiences
                                  Distributers

             Industry                                       General
             Analysts                                        Public




     Media                                                            NGOs

                    Audience




      Customers                                                 Employees




                                              Financial
                        Vendors
                                             Institutions
                                                                             30
Create a Team
                Human
                             Resources




             Marketing and
                                           Legal
            Communications



                             Team

              Customer
                                          Finance
               Service




                             Operations




                                                    31
Develop a Process Map




                         32
Pick Your Monitoring Solution
 Sentiment      Positive!   Negative!   Total!   Month on
  analysis!                                       month
                                                  change!
  Forum            30!         45!       75!
 comments!
   Blog !          21!         32!       53!
 comments!
  Product           11!        15!       36!
review sites!
 Total for         62!         92!       154!
 the month!
                                                            33
Asian Vs US Centric 
Language matters!




                           Asia
                          Centric

                           5,000
                        conversations




                                          US
                                        Centric
                                             60
                                        Conversations
Human Vs Machine
Automated sentiment scoring can be very inaccurate. !

You can’t always replace a person!




                                           Posi;ve	
      Nega;ve	
  


                                                           Nega;ve	
  
                                            Posi;ve	
     Nega;ve	
  
                                           Posi;ve	
      Nega;ve	
  
What Can You Digest? 



                         Ideal	
  issues	
  
                         monitoring	
  
                            report	
  
                             size	
  
What Can You Digest?
Use all your Channels

            Visuals                      Youtube



             B-roll              Website/darksite/microsite



       Search / paid ads               Infographics



   Traditional media relations         Third parties




          Be Transparent and Ask Questions
Readiness Checklist. 
  1. Do you have an accurate sentiment analysis tool? (machine/ human?) !



  2. Do you have a plan for organizational education?!


  3. Is there a process map for issue escalation?!



  4. Do you have the roles and responsibilities in place for issues management?!



  5. Who is part of your issues/ crisis response team?!



  6. Have you run an issue or crisis fire-drill in the last 3 months?!
"
III. The ‘Golden’ Hour
The The ‘Golden’ Hour
           Crisis “Golden” Hour

•  Ensure all appropriate functions are informed and present in
   the crisis planning – Legal, HR, operations, communications –
   based on the nature of the crisis
•  Find out the facts of the situation as they are known – use the
   5Ws (Who, What, When, Where, Why and How) to guide the
   discussion
•  Work out your current position and initial response
•  Begin/ramp up monitoring (traditional and social media)
•  Determine what is the intended result:
   –  Six months from now, when this crisis is in the rear-view mirror,
      what do you want investors, customers, employees and
      stakeholders to say about the company? How does your values
      statement/credo/mission statement inform this answer?
The The ‘Golden’ Hour
          Crisis “Golden” Hour

•  Reach agreement on an initial action plan:
   –  Identify all relevant audiences, external and internal
   –  Identify external allies and champions as well as
      opponents or enemies
   –  Identify the best conduits for reaching each audience
   –  Determine who will be the “face” speaking to those
      audiences
   –  Determine how and when interactions with internal and
      external audiences will occur
   –  Consider appropriateness of BAU marketing activities and
      Senior Executive appearances
   –  Determine the materials necessary to support the
      communication: FAQs, fact sheet and holding statement at
      a minimum. Think PESO (Paid, Earned, Shared, Owned)
The Crisis “Golden” Hour
        The ‘Golden’ Hour

•  Have a frank discussion about the hurdles or
   roadblocks to implementing the plan and the
   best way to overcome them
•  Determine what channels, discussions need
   to be monitored and how to respond to what
   monitoring finds
•  Create a system for interaction and for rapid
   approval of plans and materials (a war room)
   – responses within an hour
•  Determine how best to measure progress
   and ultimately success
The Crisis “Golden” Hour
       The ‘Golden’ Hour

•  When it comes to social media think about
   the following:
  –  Set up notification systems: create a portal or set
     up a crisis webpage to deliver immediate,
     authorized news from the official source
  –  Identify spokespersons: Designate social media
     specialists to represent the company and respond
     to specific social media channels
  –  Keep your messages simple: No matter how
     complex the situation, reduce the message to
     about four points and address it in few words so it
     can be carried across platforms
The Crisis “Golden” Hour
     The ‘Golden’ Hour

–  Have a flexible editorial calendar and think about
   delivery: Schedule all social communications in
   advance and deliver messages with a sincere
   tone appropriate for the channel
–  Keep social media channels open: never delete
   comments or shut down pages as that can
   exacerbate the situation
–  Keep updating ‘normal’ posts on social media
   platforms to show external audiences that
   business is as usual
–  Engage an agency: The issue may be bigger than
   your own available experience or resources
"
IV. Case studies.
Kryptonite


   A regular pen + a viral video + 10 days = USD $10 million product recall
                          real cost ignoring social media
Kryptonite 

    Blogs and Search Engine results continue to damage the reputation
                       long after the crisis is resolved!




                                      http://www.youtube.com/watch?v=t8XxcOj3Seo
Toyota in Crisis
Toyota crisis – taking the official line
     Paid Search ads                 Paid Search ads
      based on bid                    based on bid
          price                           price




                       Organic SEO
                          listings

                                                       Toyota Recall “Toyota
                                                       Takes Care of its
                                                       Customers. Read the
                                                       FAQs at Toyota.com”
Toyota crisis – competitor
        strategies in Search
•  Competitors respond with generic ads

                    Paid Search ads



                                      May the Best car Win “On
                                      New GMC Models, Assurance
                                      Comes Standard. Get Details
                                      Here.”

                                      May the Best car Win “See
                                      How Buick Stacks Up to the
                                      Competition. May the Best Car
                                      Win.”
Toyota crisis – competitor
        strategies in Search
•  Competitors respond where it hurts,
   emphasizing reliability of their brands vs.
   Toyota
                       Paid Search ads




                                         Consider a New Mazda
                                         “Check out the reliable
                                         vehicles from Mazda and find
                                         a great deal.”

                                         Ford Vehicles “Drive Safe and
                                         Reliable Ford Cars.
                                         Browse Large Inventories
                                         Today.”
Toyota crisis – other strategies in
               Search
•  Lawyers inflame the situation
                     Paid Search ads




                                       Toyota Recall 2010 Update
                                       “Sudden acceleration danger.
                                       Free case review for injured.”

                                       Toyota Accident Victims
                                       “Toyota Sudden Acceleration
                                       Recall. Free Evaluation,
                                       1-866-***-****”
Interesting
•  Toyota did not rely much on PPC ads to its strong dealership
   network
•  Toyota covered main keywords but missed the long tail searches like
   “Toyota sucks”, “Toyota gas pedal”, “Toyota investigation”
BP


      High impact visuals fuel online sentiment!
SAN LU
                                                      12	
  September	
  2008	
  




                                           	
  	
  




 Source:	
  hGp://www.chinasmack.com	
  
Conclusion. 


  1.    Ignore digital channels, learn the hard way!


  2. "Keep your finger on the pulse!


  3. "Have a plan in place!



  4. "React fast!
Questions?

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Crisis and issues management in the digital age

  • 1. Crisis and Issues Management in the Digital Age James Hacking Rachel Catanach Vice President SVP & Senior Partner, Managing Director BlueCurrent Group Fleishman Hillard
  • 2. This presentation I. CRISIS MYTHS & LEGENDS III. THE ‘GOLDEN’ HOUR II. LISTEN TO YOUR AUDIENCE IV. CASE STUDIES
  • 3. What is a Crisis? •  Any problem or disruption that triggers negative responses and greater scrutiny. •  Anything that disturbs the natural flow of business and – if recognized too late and addressed improperly – can jeopardize an organization’s very existence.
  • 4. Crisis Myths The Court of You can’t You can You lose Law is more predict or control a crisis control by important than engaging with prevent a by withholding the Court of social media crisis information Public Opinion
  • 5. Crisis Truths The primary The longer a A serious focus in crisis Most crises crisis goes on, problem All crises can management can be the more becomes a be mitigated should be the predicted damage it crisis once it’s court of public does publicized opinion
  • 6. The Internet is a Crisis “Game-Changer” One person can “light Crises play on a Pace of events the fire” global stage accelerates 6
  • 7. Yet the Internet Remains Poorly Understood, Under-Utilized in a Crisis Another  channel… A  burden,  a   similar  to  print  media,   “necessary  evil”   television,  etc.   A  “bolt-­‐on”  tool,   added  to  a  tradi;onal   communica;ons   strategy   7
  • 8. Scenario •  You are the Communications Manager for MumCom
  • 9. 9.00 AM Wednesday •  Michael is a 15 year old diabetes patient. He has a doctor’s appointment today
  • 10. 10 AM Wednesday •  Michael gets to the doctor and it is decided he should get a brand new blood glucose monitor. It is a MumCom monitor.
  • 11. 10:15 AM Wednesday •  Michael gets home. Mum leaves. He unwraps the packaging. He notices something that’s not right.
  • 12. 10:30 AM Wednesday •  Michael text messages Mum. He says “OMG, u won’t BLEVE – Earwig in my new glucose meter.” •  He sends along a picture…
  • 13. 10:45 AM Wednesday •  Mum is appalled… After a quick call to the doctor’s office, she takes time to update her Facebook status… she posts the picture on Facebook… “OMG, my son just unwrapped his new glucose monitor and there was a dead earwig in it. Can u believe that?”
  • 14. 10:45 AM Wednesday •  Doc, a prominent doctor, specializes in pediatric diabetes & is a member of the online physician community Doctors.net.hk. •  Doc goes to his computer and poses the question – Has anyone ever found an earwig in a MumCom glucose monitor, cos I did…
  • 15. 11:00 AM Wednesday •  Several of Mum’s 217 friends comment… •  One friend asks who made the meter? •  Mum replies “MumCom!”
  • 16. 11:10 AM Wednesday •  Diabetic friend of Mum’s sees this and posts on her Twitter account •  She links it to Mum’s Facebook page so everyone can see the picture. •  PLS RT - @MICHEALSDMUM’s kid opened MumCom glucose meter with earwig in it
  • 17. 11:15 AM Wednesday •  Dad.ie– a prominent blogger and tweeter who follows MumMichael’s diabetic friend on Twitter sees the tweet and re-tweets it… he has a LOT of followers
  • 20. How did this happen? Investor   Investors   Message   Boards   General   Public   Investors   General   Public   Investors   General   Friends   Friends   Public   Investors   Media   Friends   General   Public   Friends   Advocacy   Blogger   General   Groups   Public   Friends   General   Mum   Blogger   Public   Blogger   More   General   Tweets   Public   Michael   Facebook   One   Blogger   Blogger   Member Twi1er   ship   Membership   Other   docs   Professional   Doc   Socie4es   Member ship   Other   Doctors.n docs   Member ship   et.hk   Docs   Begin   Other   docs   Consumer   Twee4ng   Other   Groups   Membership   docs  
  • 22. Social Media can make audiences… " Experts Spectators Broadcasters Reviewers Publishers Syndicators
  • 23. So what can we do to stay ahead of the curve?
  • 24. Five Crisis Principles Forget about Planning, process Denial is not a buying an and practice wins river in Egypt extinguisher after the day the fire starts If you don’t supply Use online as a the information - crisis tool – now – the media website, search will look elsewhere
  • 25. What are the realities for communicators? Sometimes C-Suite who difficult to see doesn’t Not enough the wood for More pressure understand the resource, the trees - not – on 24/7 new demands budget all bad of the digital comments age online are equal
  • 26. " II. Listen to your audience.
  • 27. " Why spend millions building your brand if you won’t spend a few thousand dollars on monitoring its reputation?"
  • 28. Getting started 1.  Assess vulnerabilities! 2. "Cover off all audiences! 3. "Create a team! 4. "Develop a process map! 5. "Pick your monitoring solution ! 6. "Use all your channels!
  • 30. Cover of all Audiences Distributers Industry General Analysts Public Media NGOs Audience Customers Employees Financial Vendors Institutions 30
  • 31. Create a Team Human Resources Marketing and Legal Communications Team Customer Finance Service Operations 31
  • 33. Pick Your Monitoring Solution Sentiment Positive! Negative! Total! Month on analysis! month change! Forum 30! 45! 75! comments! Blog ! 21! 32! 53! comments! Product 11! 15! 36! review sites! Total for 62! 92! 154! the month! 33
  • 34. Asian Vs US Centric Language matters! Asia Centric 5,000 conversations US Centric 60 Conversations
  • 35. Human Vs Machine Automated sentiment scoring can be very inaccurate. ! You can’t always replace a person! Posi;ve   Nega;ve   Nega;ve   Posi;ve   Nega;ve   Posi;ve   Nega;ve  
  • 36. What Can You Digest? Ideal  issues   monitoring   report   size  
  • 37. What Can You Digest?
  • 38. Use all your Channels Visuals Youtube B-roll Website/darksite/microsite Search / paid ads Infographics Traditional media relations Third parties Be Transparent and Ask Questions
  • 39. Readiness Checklist. 1. Do you have an accurate sentiment analysis tool? (machine/ human?) ! 2. Do you have a plan for organizational education?! 3. Is there a process map for issue escalation?! 4. Do you have the roles and responsibilities in place for issues management?! 5. Who is part of your issues/ crisis response team?! 6. Have you run an issue or crisis fire-drill in the last 3 months?!
  • 41. The The ‘Golden’ Hour Crisis “Golden” Hour •  Ensure all appropriate functions are informed and present in the crisis planning – Legal, HR, operations, communications – based on the nature of the crisis •  Find out the facts of the situation as they are known – use the 5Ws (Who, What, When, Where, Why and How) to guide the discussion •  Work out your current position and initial response •  Begin/ramp up monitoring (traditional and social media) •  Determine what is the intended result: –  Six months from now, when this crisis is in the rear-view mirror, what do you want investors, customers, employees and stakeholders to say about the company? How does your values statement/credo/mission statement inform this answer?
  • 42. The The ‘Golden’ Hour Crisis “Golden” Hour •  Reach agreement on an initial action plan: –  Identify all relevant audiences, external and internal –  Identify external allies and champions as well as opponents or enemies –  Identify the best conduits for reaching each audience –  Determine who will be the “face” speaking to those audiences –  Determine how and when interactions with internal and external audiences will occur –  Consider appropriateness of BAU marketing activities and Senior Executive appearances –  Determine the materials necessary to support the communication: FAQs, fact sheet and holding statement at a minimum. Think PESO (Paid, Earned, Shared, Owned)
  • 43. The Crisis “Golden” Hour The ‘Golden’ Hour •  Have a frank discussion about the hurdles or roadblocks to implementing the plan and the best way to overcome them •  Determine what channels, discussions need to be monitored and how to respond to what monitoring finds •  Create a system for interaction and for rapid approval of plans and materials (a war room) – responses within an hour •  Determine how best to measure progress and ultimately success
  • 44. The Crisis “Golden” Hour The ‘Golden’ Hour •  When it comes to social media think about the following: –  Set up notification systems: create a portal or set up a crisis webpage to deliver immediate, authorized news from the official source –  Identify spokespersons: Designate social media specialists to represent the company and respond to specific social media channels –  Keep your messages simple: No matter how complex the situation, reduce the message to about four points and address it in few words so it can be carried across platforms
  • 45. The Crisis “Golden” Hour The ‘Golden’ Hour –  Have a flexible editorial calendar and think about delivery: Schedule all social communications in advance and deliver messages with a sincere tone appropriate for the channel –  Keep social media channels open: never delete comments or shut down pages as that can exacerbate the situation –  Keep updating ‘normal’ posts on social media platforms to show external audiences that business is as usual –  Engage an agency: The issue may be bigger than your own available experience or resources
  • 47. Kryptonite A regular pen + a viral video + 10 days = USD $10 million product recall real cost ignoring social media
  • 48. Kryptonite Blogs and Search Engine results continue to damage the reputation long after the crisis is resolved! http://www.youtube.com/watch?v=t8XxcOj3Seo
  • 50. Toyota crisis – taking the official line Paid Search ads Paid Search ads based on bid based on bid price price Organic SEO listings Toyota Recall “Toyota Takes Care of its Customers. Read the FAQs at Toyota.com”
  • 51. Toyota crisis – competitor strategies in Search •  Competitors respond with generic ads Paid Search ads May the Best car Win “On New GMC Models, Assurance Comes Standard. Get Details Here.” May the Best car Win “See How Buick Stacks Up to the Competition. May the Best Car Win.”
  • 52. Toyota crisis – competitor strategies in Search •  Competitors respond where it hurts, emphasizing reliability of their brands vs. Toyota Paid Search ads Consider a New Mazda “Check out the reliable vehicles from Mazda and find a great deal.” Ford Vehicles “Drive Safe and Reliable Ford Cars. Browse Large Inventories Today.”
  • 53. Toyota crisis – other strategies in Search •  Lawyers inflame the situation Paid Search ads Toyota Recall 2010 Update “Sudden acceleration danger. Free case review for injured.” Toyota Accident Victims “Toyota Sudden Acceleration Recall. Free Evaluation, 1-866-***-****”
  • 54. Interesting •  Toyota did not rely much on PPC ads to its strong dealership network •  Toyota covered main keywords but missed the long tail searches like “Toyota sucks”, “Toyota gas pedal”, “Toyota investigation”
  • 55. BP High impact visuals fuel online sentiment!
  • 56. SAN LU 12  September  2008       Source:  hGp://www.chinasmack.com  
  • 57. Conclusion. 1.  Ignore digital channels, learn the hard way! 2. "Keep your finger on the pulse! 3. "Have a plan in place! 4. "React fast!