Tuesday, July 28, 2009

PRESIDENT VIOLATED CRISIS MANAGEMENT RULE #1

By Richard E. Nicolazzo

Rarely does a news story cause a crisis for three separate entities at the same time, but that’s just what happened when Harvard professor Henry Louis Gates Jr. was handcuffed in his home and hauled off to the Cambridge, Massachusetts city police department.

The events of July 16, while still a bit fuzzy, have nevertheless sparked another national debate on race relations in America, even involving (or should I say entrapping) President Obama.

At first, the incident wasn’t much of a story, only appearing four days after the arrest as an item on the Harvard Crimson website. It didn’t take long for the local, regional, national and international news media to uncover the nasty details of the tête-à-tête between Gates and Cambridge police Sergeant James Crowley, the officer who made the decision to arrest the professor on disorderly conduct charges.

Given Gates’ lofty status, the viral nature of the story immediately engulfed the police department and the professor in a crisis situation…both parties talking way too much and, at least initially, digging themselves in deeper.

As if that wasn’t bad enough, President Obama fanned the flames when, at the end of a press conference on health care reform, he said police “acted stupidly” in arresting Gates, and noted that black and Hispanic men are still arrested disproportionately.

Report Cards

Breaking things down, what’s almost inconceivable is that the President would finish last of the three parties in managing the crisis.

Cambridge police deserve a solid “B+” for the way they responded. First, Sergeant Crowley stood up and logically explained the events and protocol that was followed before he took out his cuffs.

He received solid support from Cambridge Police Commissioner Robert Haas and the police union. In each case, this group responded only after learning and digesting the facts.

The city made another excellent decision when it reached out to convene a group of nationally recognized experts to help determine what lessons officials can learn from the arrest.

Gates, accustomed to the spotlight, apparently couldn’t resist responding to media inquiries. Not only did he respond by phone and email, he made himself available to cameras while vacationing at his Martha’s Vineyard summer home.

I’d grade him no better than a “C-“ because he let his emotions get the best of him. Not only did he criticize the police, he quickly let it be known that he might bring suit. He also went for Sergeant Crowley’s jugular, accusing him of making up the facts in the police report. Even at this point, Gates and Crowley disagree about what happened.

In my view, the Gates angle of the story could have evaporated rapidly if the professor had released one written statement and ended it at that. It may take some time to sort out, but in the end his contentious remarks may damage his reputation.

Low Mark for the President

The big surprise in all this is President Obama. How can you grade him anything but a “D-.”

When a reporter asked him about the incident, instead of declining comment on an arrest that had nothing to do with a major healthcare policy initiative, he stepped right into the fray, uttering the stupidity remark that caused an instant firestorm.

Sorry Mr. President, but this can’t be chalked up to a rookie mistake. You’ve been immersed in a high stakes media environment for nearly two years. You’re surrounded by a top-flight team of advisers and confidants who are supposed to be guiding you in managing communications.

Surely, given the race card issue that was being played out across the country, someone on your staff must have cautioned you to be aware of a trick question and not fall into a trap? Not so, it appears.

For a man who prides himself on self-discipline, President Obama has seemingly caught “slip-of-the-tongue disease.”

In recent months, he had to apologize after joking that his bad bowling skills might qualify him for the Special Olympics. A joke about Nancy Reagan holding séances forced him to call her and make amends.

He sparked more debate when he said college football should adopt a playoff system, picked North Carolina to win the NCCA basketball tournament, and said he liked Michael Jordan over Kobe Bryant.

In the Gates incident, Obama, to his credit, made a conciliatory gesture to help mitigate the crisis when he invited the Harvard scholar and the police officer to share a beer with him at the White House.

Nevertheless, the President still violated the number one rule in crisis management: Never speak before you have the facts.

While we can only speculate about Obama’s future comments, I sense moving forward we may see a more guarded Commander in Chief.

Richard E. Nicolazzo is managing partner of Nicolazzo & Associates, a strategic communications, crisis mangement and public relations firm headquartered in Boston, Massachusetts. Joe Grillo, a partner in the firm, contributed to this commentary.
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Tuesday, July 07, 2009

THE “CSMO’s” TIME HAS COME

By Richard E. Nicolazzo

Welcome to the world of social networking and social media, where the numbers are staggering.

MySpace, 263 million users. Facebook, 200 million. Tagged.com, 70 million. Flixster, 70 million. Classmates.com, 50 million. Twitter, 25 million. LinkedIn, 40 million.

And that doesn’t take into account YouTube, which although not technically a social networking site, can attract upwards of 100 million hits on a single video.

Years ago, public relations executives focused on major newspapers that had circulations of hundreds of thousands and network TV news broadcasts that had millions of viewers. Nowadays, those numbers seem like they’re from the Jurassic age.

Things have moved at such a warp speed that major corporations (both public and private), the government, and organizations of all shapes and sizes cannot afford to be passive about how stories play out in print or broadcast media.

For better or worse, the action has moved online.

New Breed of Communications Executive

While the social networking craze now dominates strategic communications discussions and educational workshops, it’s actually not a new phenomenon.

Many believe social networking began to flourish as a component of business Internet strategy in early 2005 when Yahoo launched “Yahoo! 360°”. Later that year, News Corporation bought MySpace. Since then, various social networking sites have sprung up catering to different languages and countries. Wikipedia now estimates there are 200 sites on the global scene.

During the past 20 years, we’ve seen a litany of executive titles at the top of the communications ladder. On the corporate side, we’ve migrated from director of communications, to senior VP, to VP of corporate communications, to chief communications officer, to executive vice president. In the agency business, the top officer is now commonly known as managing partner.

In my view, we have now clearly reached the point where a new communications title should be established: “Chief Social Media Officer (CSMO).”

The words “social media” are critically important in this title because that is where a new generation of “reader-viewers” is headed. It’s no secret that newspaper and magazine readership is plummeting and other traditional forms of media such as TV and radio are reducing editorial staffs, thus potentially compromising their coverage.

We have suddenly entered a new universe where the meaning of “media” is being re-engineered. Are you skeptical?

CyberAlert, Inc., a fully-automated news monitoring and tracking service in Stratford, Conn., offers these products: CyberAlert 4.0, Blog Squirrel, CyberAlert VDO, and Netpinions. Collectively, they monitor 35,000 online news sources, 5 million daily blog entries, 200 online video sharing and news sites, and 100,000 online message boards, forums, and news groups.

And just recently, PR Newswire unveiled a social media monitoring tool to measure discussions and mentions across blogs and message boards. The service claims to track more than 20 million blogs, millions of forum posts and 30,000 online news sources, including videos.

Journalism is Evolving

In past decades, journalists served as the filter between information flowing from an organization and what ended up in print or on the air. While laudable in its purest form, this dynamic is changing at lightning speed.

In its last survey on media relations practices, Bulldog Reporter/TEKgroup International reported that about two-thirds of journalists use social media to research stories.

Almost 38 percent of journalists now say they visit a social media site at least once a week as part of their reporting. And approximately 20 percent receive five or more RSS feeds of news services, blogs, podcasts or videocasts every week.

Anyway you look at it, the “CSMO” needs to create alerts for negative mentions that could provide critically valuable time if a response is needed before a situation spirals out of control.

One recent example comes to mind.

In April, Domino’s Pizza was caught somewhat flat-footed when a disgusting YouTube video prank depicted two employees in North Carolina putting nasal mucus on sandwiches and putting cheese up their noses.

While the company had some early indications that the video was spreading on websites and blogs, the corporate PR group was likely not prepared nor empowered to move quickly and fight back. At the time, a spokesperson for Domino’s said, “…Right now, it (the video) is on web sites and blogs. It’s not on ABC, CNN or USA Today.”

Two days later, when the company posted its own YouTube video and apology on its website, an estimated 1 million people had already seen the original. The damage was done. In this case, one can only imagine how much business was lost over the 48-hour period, not to mention the impact on brand integrity and customer loyalty.

Given the inherent viral nature of social networking and social media, it’s not likely that anyone can totally predict or control future abuses. What can be controlled is early detection and immediate response. That’s why any company that does not have the proper safeguards, monitoring systems and response teams in place to deal with the blazing speed of the Internet may find themselves “Internet lightning victims.”

As time has proven, more often than not it’s not the crisis itself that does the damage, but how management is prepared to respond.

Richard E. Nicolazzo is managing partner of Nicolazzo & Associates, a strategic communications, crisis management and public relations firm headquartered in Boston, Mass. Joe Grillo, a partner in the firm, contributed to this commentary.

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Thursday, April 16, 2009

Message to Domino’s: Contingency Planning Still Rules the Roost

Just over a century ago, The Boy Scouts of American adopted a motto that is as poignant as ever: “Be Prepared.”

It may sound old-fashioned, but the disgusting video prank that damaged the Domino’s Pizza brand once again proves that major companies are not spending enough time on contingency crisis communications planning.

How else can you explain the comments of the company’s spokesperson when asked about a YouTube video that depicted two employees in a North Carolina store putting nasal mucus on sandwiches and putting cheese up their noses?

The spokesperson, Tim McIntyre, told the website ragan.com, “…Right now, it (the video) is on web sites and blogs. It’s not on ABC, CNN or USA Today.”

So what? The damage had already been done.

By the time Domino’s posted its own YouTube video and apology on its corporate web site, an estimated 1 million people had already seen the original.

Worse than that, the social media phenomenon Twitter helped spread the YouTube video like wildfire. Things got so bad that Domino’s (once again about 48 hours after the first video appeared) had to create its own Twitter account.

Like it or not, social media explosions like this one can quickly cause real loss of business. BrandIndex, a daily online consumer brand perception service, reported that Domino’s “buzz score” had dropped significantly from April 10 to April 14.

While it may be too early to assess the long-term damage to the Domino’s brand, one could imagine a scenario whereby hundreds of thousands of consumers call Pizza Hut instead of Domino’s. The lost revenue in just a few days could amount to millions, or even hundreds of millions.

Some Things Never Change

Having practiced crisis communications for more than 30 years, I continue to be astounded at the lack of real, in-your-face contingency communications planning.

I’m not talking about the kind of planning that results in a binder on a shelf containing the names of top company executives who should be contacted in a crisis. Or a boiler-plate crisis communications checklist posted on a company’s Intranet. Or even the availability of a company spokesperson who can speak to the media.

In case after case, it’s not what is said when the house is burning, but what has been done to prevent the fire in the first place.

The Domino’s flap is particularly troubling in that the company had not likely prepared for a YouTube or Twitter scenario. If it had, the responding video from the president would have been posted on day one, not 48 hours later. Similarly, the Twitter account could have gone live within hours of the YouTube video.

Even more puzzling is a New York Times story that indicated the company learned about the original video the day after it appeared, but decided not to respond aggressively, hoping the controversy would subside. “What we missed was the perpetual mushroom effect of viral sensations,” said the Domino’s spokesperson.

This is another indication that Domino’s – and likely hundreds of other major companies – have not adequately addressed contingency communications planning as it relates to social media flare-ups.

While online media will continue to evolve, moving faster and faster in the weeks, months and years ahead, nothing is likely to replace the need for contingency planning that stays ahead of the curve.

As I have been espousing for years, a company’s best communications talent (and outside counsel whenever necessary) needs to have a seat at the table right next to the CEO. Still, in too many cases, the crisis is handed to the spokesperson without the benefit of a rock-solid crisis communications contingency plan in place.

Old School is New School

Companies should not let new mediums like YouTube, Facebook, Twitter, MySpace, and other yet-to-be-invented services intimidate them. Instead, they need to focus on the fundamentals of sophisticated contingency communications planning. Here’s a checklist of processes to consider:

As part of the risk management process, appoint a “brand-threat” team charged with the responsibility of monitoring online sites, broadcast and print media 24-7. Have a system in place to direct problems right to the CEO.

Explore organizational vulnerabilities. Get the company’s top five executives in a room and discuss three to five worst-case scenarios. Hold nothing back.

Develop a written plan, one with situation analyses, objectives, strategies, key audience definition, key messages, implementation tactics, and social media protocols.

Establish a crisis team that includes senior management, communications and legal counsel (inside and outside), marketing, customer service and other key executives.

Maintain transparency. We are long beyond the days when a company in crisis can say “no comment.” Your customers and others demand answers. What is said should have its roots in the crisis communications plan.

Invest in training. There is still no real substitute for media training and presentation training. Top executives and spokespersons need constant refresher courses. In a crisis, the CEO might need to post a YouTube video within hours.

Stay current. Today’s lightning-fast information environment demands a mix of young, mid-seasoned, and veteran communicators. There’s nothing like a “20-something” to know what’s hot.

Pay for measurement. Don’t assume that your message is getting through and mitigating brand damage. There is no shortcut to quantitative analysis. The nation’s top polling firms can deliver results in 24 hours.

As time has proven, no company is fully immune to a crisis. But remember, more often than not it’s not the crisis itself that does the damage, but how well management responds.

Truth be told, in our free-speech online society there is no way to truly stop people from pulling stupid stunts like the one that bashed Domino’s.

A better plan, though, might have averted what amounted to a lynching by social media.


Joe M. Grillo, senior vice president, contributed to this blog.