Why Do You Need a Crisis Communications Plan?
Crisis Communications Plans are designed to provide guidance and easy-to-follow steps to support clients in preparation for, management of and after-effects of proper crisis communications. Reputation leads to trust, trust leads to valuation. Effective crisis prevention, identification and communication rely heavily on education, training, professional judgment and experience of an internally formed Crisis Management Team (CMT), which clients learn how to create by following instructions within the plans Fallston Group creates. The CMT’s ability to manage smoldering issues and understand ways in which issues can escalate is essential to effective crisis response and recovery. Crisis communication is integral in the protection of people, assets and brands. Organizations that wait to respond, hesitate or lack visibility of action create uncertainty and anger – it diminishes marketplace trust. Client CMT’s must efficiently and effectively communicate so others do not fill the informational gap created by silence or misinformation. Any employee who is not authorized as a spokesperson should not make statements, comments or declarations internally, externally, to vendors, media, on social media, etc. All employees should direct inquiries to the designated (and trained) primary and secondary spokespeople. When an emergency occurs, the need to factually communicate is immediate. If client operations are disrupted, all stakeholders will want to know how they will be impacted. Regulators may need to be notified, and local government officials will want to know what is going on in their community. Employees and their families will be concerned and want information. Neighbors living near the impacted area may need information—especially if they are threatened by the incident. All of these “audiences” will want information before the organization has a chance to begin communicating. Velocity and accuracy is key – the crisis communications plan facilitates speed and process – organizational muscle memory is created. A vital component of handling an incident is the crisis communications strategy. Clients must be able to respond promptly, accurately and confidently during emergent circumstances in the seconds, hours, days and weeks that follow. A diverse audience pool must be reached with information specific to their unique interests and needs. Client image will be positively or negatively impacted by public perceptions and the handling of the incident from a leadership, strategy and communications standpoint. Planning is power. With new technology, it can be the anonymous public who often “break” a crisis. Therefore, unlike earlier eras, the crisis management team cannot afford to simply “manage the media.” Remember, anyone with an internet connection and a recording device can wreak havoc on your brand. Fallston Group’s mantra is alive and well, “If you don’t tell your story, someone else will. And, when someone else tells your story, it certainly won’t be the story you want told.” From a leadership standpoint, you must be ready to meet the moment, the 60 MINUTES moment, if need be. Your legacy depends on it. To learn more about Fallston Group’s crisis management work, click here, or contact us to discuss a Crisis Communications Plan for your team.
One Crisis Espresso, Please!
by Rob Weinhold, Chief Executive of Fallston Group Social media attack, bad press, investigation, litigation, data breach, sex scandal, economic downturn, discrimination, mismanagement and, tragically occurring with greater frequency, active shooter situations…the list goes on and on. Life comes at you fast, and there’s one irrefutable certainty: the issue isn’t “if,” but “when” crisis will come knocking on your door. Crisis came pounding on Starbucks’ door recently, with sonic, viral velocity. When two black men were arrested in a Philadelphia Starbucks, chief executive officer Kevin Johnson didn’t pass the buck or glide over the incident as an unfortunate misstep. He promptly said, “I own it. This is a management issue, and I am accountable.” He went on to call the arrests “reprehensible.” But what does being accountable mean? After observing hundreds of organizations in crisis over the years, many opt to provide lip service and simply make it through the next day’s news cycle until some other company assumes the daily crisis crown. In fact, many leaders say and do nothing…a spiraling disaster. Note Fallston Group’s mantra: “If you don’t tell your story, someone else will. And, when someone else tells your story, it certainly won’t be the story you want told!” Johnson is choosing to tell the organization’s story, and often. Starbucks has given a strong response since the start of their crisis. Leadership is visible, on message, on many media platforms and passionate – their primary and secondary spokespeople are believable and appear staunchly committed to long-term change. Both Johnson and founder and chief executive, Howard Schultz, are withdrawing huge sums from their reputational piggy bank. By the way, Starbucks is a $22 billion company and so far, stocks have remained steady. This is a function of true leadership and aligned marketplace confidence. I firmly believe reputation equals trust, trust equals valuation. Starbucks’ leadership announced the closure of all 8,000 company-owned stores in the U.S. on May 29 to train 175,000 employees about racial bias. The best decision was engaging training guidance from former Attorney General Eric Holder and a key member of the NAACP. Even though Starbucks already has a very capable, diverse board, leveraging its outside network is a critical, effective strategy – inclusion enhances credibility. However, training is just the first step. The initial training should be followed by routine assessment, policy development, rigorous ongoing training and modeled behavior. All these elements must be coupled with inclusionary leadership development and decision-making. It’s about long-term organizational change. Crises cost time, money, customers and ultimately, your career. After decades helping people during life’s most critical times, I’ve come to realize that crisis is not to be feared. In fact, crisis can be a growth strategy. And growth doesn’t always show up in a stock price…in this case, this incident will be the springboard for a more equitable corporate setting and inclusionary customer experience. Once stabilized, crisis should not be relegated to the rear-view mirror with an exhale of relief. It is an opportunity to continue to climb the chairlift; this is where real substantive change is created. Remember: reputation equals trust, and trust equals valuation. When you understand this key component of leadership, crisis is no longer just something to “get through.” It is a unique opportunity for you to guide your company to a more brilliant and prosperous future. Everyone will be watching, Starbucks…so far, you are doing the right thing. But, don’t fall off the chairlift! To learn more about crisis & issue leadership offerings at Fallston Group, click here or contact us at 410-420-2001.
Target, Best Buy Provide “Lesson Learned” for Corporate World
By Rob Weinhold — As a result of the January Supreme Court decision which allows corporations to contribute unlimited funds for political activities, both Target and Best Buy each contributed $100,000 to a business group in Minnesota called MN Forward. MN Forward is an organization who advances political agendas in the spirit of private sector job creation and economic opportunity. The issue is that MN Forward used the funds from Target and Best Buy to help support the gubernatorial campaign of state Representative Tom Emmer, who supports lower corporate taxes. That wasn’t the problem; the issue, apparently unbeknownst to Target and Best Buy executives, was that Tom Emmer also supports the very controversial banning of same-sex marriages. Regardless of which side of the political aisle you sit on, corporations must fully vet each interest it supports and fully understand the risk while entering the political arena. As a result of this “alignment,” Target has now been the subject of immense stakeholder skepticism, protests, product boycotts and public apologies. Yes, this is a crisis that impacts brand and has now made national news – www.washingtonpost.com – August 18th. This blogger is neutral in his opinions about the political issues, but not middle of the road when it comes to the realization about the lack of strategic planning and foresight by both companies. Regardless of which side of the political aisle you sit on (perhaps it’s directly in the aisle), corporations must fully vet each interest it supports and fully understand the risk while entering the political arena. Most times, the support garnered with one group will alienate another group. And, the alienated group could well be very important stakeholders which could have enough clout to mobilize and impact the bottom line. CRO – Chief Reputation Officer This is yet another reason that I support the concept of a corporate CRO – Chief Reputation Officer. This executive should be fully engaged at every level within the organization and be the expert who accurately researches and predicts every internal and external decision’s impact on brand integrity. Organizations who do not continue to critically define, promote and defend their brand will never achieve ultimate growth and profitability goals.
