Resilient Leadership: BP and its Fallen Leader
A Perspective about BP and its Fallen Leader by Rob Weinhold When we learned of the Gulf oil explosion in April 2010, the loss of life coupled with the hourly projections about environmental fallout was disturbing enough. However, to learn that BP had no real crisis plan or immediate solution to deal with this type of incident immediately instilled a sense of anger among many stakeholders. One of the biggest “eye brow raising moments” early on was to watch BP executives on NBC’s Today Show respond to a question/statement by an anchor during an interview. The question to the executive was “You had no crisis plan to deal with this, did you?” Well, the executive did not answer the question and quickly directed his response in another direction, never answering the “yes or no” question. Clearly, BP was at a loss on how to handle this catastrophic, yet predictable event. It is true, based on the continual resulting blunders that BP did not have a handle on how to effectively communicate with all of its stakeholders during the worst oil spill in U.S. history. Adversity is the truest test of leadership and BP failed the test due to poor planning and execution. The very basic tenants of crisis leadership did not present themselves in this case. While many suffered, top executive Tony Hayward gave the public impression that he cared more about how his life was disrupted than the millions who depend on BP from a financial or livelihood standpoint. Comments Mr. Hayward made about how he “wanted his life back” or how he minimized the leak because the leak was occurring in “a big ocean” were bad enough, but the symbolic participation in a yacht race during a time of crisis sent the wrong message to many whose quality of life still remained in the balance. While Mr. Hayward apologized and made later attempts to explain his comments and actions, the court of public opinion already rendered a verdict. Of the many milestone events which ultimately led to Mr. Hayward’s dismissal, one particular event negatively impacted his career, BP’s stock and sent the BP brand cascading downward like no other. That event was the Congressional hearings where all company executives involved decided to point the finger at one another. The resulting public message was a failure to take responsibility. In fact, the President of the United States stood-up and said he was “not impressed” by that spectacle. Yes, now the leaders of three major corporations were being admonished publically by the World’s most influential leader. Main Tenants of Resilient Leadership The fact is, during times of crisis, leaders become fatigued and often misstep. In BP’s case, Hayward didn’t have what Dr.’s George Everly and Doug Strouse refer to in their book (The Secrets of Resilient Leadership, 2010) as Behavioral Body Armor. As highlighted in the book and many other publications, resilient leadership has a few main tenants which should never be violated. They include: 1. Act with integrity 2. Communicate effectively 3. Display optimistic, decisive leadership 4. Take responsibility for actions 5. Build a resilient culture 6. Develop behavioral body armor I wholeheartedly recommend that leaders at every level of management in both the public and private sector, personally or professionally, embrace these principles. Had BP crisis planned before the incident, been forthright with information and followed the six basic tenants above, we all might have a different perspective.
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.
When You Are the Face of Crisis: 5 Keys for Successful Media Relations
Being proactive and getting out in front of a situation is the best way to remain in control of it. Here are five keys for successful communication when facing the media.
Engage Your Social Media Channels During a Crisis
Crisis is an inevitable part of business. However, it’s how your company handles an issue that is the most telling. Social media can ultimately be the deal breaker when it comes to your organization’s ability to effectively communicate to your stakeholders during a time of adversity. Keeping an open, honest line of communication is critical whether you are keeping your stakeholders safe, informing them of an incident, or apologizing for a mistake.
Sexual Harassment: Reducing Risk
In order to avoid the severe consequences of sexual harassment reports, prevent legal exposure, and protect managers and subordinates, the Fallston Group offers employers suggestions for reducing risk of sexual harassment in the workplace.
School and University Safety
“Providing a safe place to live, work, and raise a family is the first order of leadership,” says Rob Weinhold, Principal of the Fallston Group. Students work and sometimes live at school; therefore, school leaders must keep student safety as their first priority. A social media crisis management plan is one way that school and university leaders implement to help promote the safety of their students.
