Quote of the Month:  The probability of someone watching you is proportional to the stupidity of your action.   — Anonymous

…I’ll bet they have taken on a whole new meaning in the last month!

U.S. Representatives and Senators have been taking it on the chin all across the country as the debate about health care reform rages. I’m sure you’ve seen or read of examples of meetings that have been terribly  difficult.  In some, the elected officials have been able to stand their ground.  In others, they’ve had to be
escorted out of the room by law enforcement officials.

I think it is very important for business executives and leaders of all types of organizations to prepare for the day when they have to face a potentially hostile audience.  That is why, in our workshops, we role-play at least one or two large group meetings along with mock media interviews.  There is always a chance that
one day you will have to face an audience made up of:

–  employees unhappy over facility closings, lay-offs, benefit changes, etc.;
–  families of hospital or nursing home patients upset about a report of numerous regulatory violations;
–  neighbors of manufacturing facilities who have heard of plans to expand or add a hazardous materials operation;
–  municipal officials upset about recent accidents at your facility that endangered or frightened their citizens;
–  and on and on. (I’m sure you can come up with some!)

Here are some thoughts about ways you can improve your chances of survival in such a tough meeting.

1.   IF A GATHERING IS SCHEDULED, SHOW UP.  This might be a “duh” statement, but it is easier said than done.  When you have good intelligence that the opposition/activists/upset people will be there in large numbers,you may be tempted to opt out of what you see as a lose-lose situation.  If you decide to be a no-show, what you will surely lose is respect.  Assuming you have a story to tell or a position to defend, have the courage to do so even if it is uncomfortable. There will be people in the audience, or those who
watch on TV or the web or read about it in newspapers, who will want to hear what you have to say and will credit you for facing the music.

2.   HAVE A NEUTRAL MODERATOR.  Do your best to identify someone who can host the meeting.  It could be a municipal official, a respected academician, the president of a local association with interest in the topic, a member of a group like the League of Women Voters, or someone else with standing in the community.  Make sure that person knows he/she is responsible to set the tone of the meeting and lay down some ground rules. A code of conduct must be followed that prevents people from shouting out, being derisive, or monopolizing the conversation.  The first time things seem to be getting out of hand, look to that person to step in to restate the rules and restore order.

3.   MAINTAIN A PROFESSIONAL DEMEANOR.  Once again, you are looking for people to respect you, your position, and your organization.  This cannot be accomplished if you allow yourself to descend to the
level of a heckler or someone who is making disparaging remarks.  This is tough - especially if you feel that person is making unfair or personal remarks. But losing your temper and yelling back at them does you no good at all.  In fact, if the person raises his/her voice, your best bet is to lower yours. Remain patient.
Let them vent (at least until the Moderat or calls time on them).  Then calmly respond, “I hear what you are saying and can understand your concern; let me tell you why I do not believe what you are asserting is true…” Your restraint in the face of such opposition will go a long way both in getting your point across and in building respect for you.

4.   DON’T BE A DOORMAT.  While you cannot successfully navigate a meeting like this with a short fuse that makes a bad situation worse, neither can you simply allow yourself to be buried under heaps of unfair criticism. You need to be able to assertively and strongly communicate your key messages - without being offensive and aggressive.

5.   KNOW YOUR STUFF.   You must know your material.  Major talking points must be developed ahead of time by a group of your best minds.  They need to be reviewed and rehearsed and committed to memory.  The same goes for answers you develop to what you know will be the most likely questions.  If you’ve heard outrageous rumors being spread on the Internet, be prepared to counter them with facts - either when they surface in a question or you bring it up yourself.

6.   LET REASONABLE AUDIENCE MEMBERS POLICE THEIR PEERS.  It often happens that a questioner will get carried away by the sound of his/her own voice, leading to downright nasty and unreasonable behavior.  Chances are good that if you don’t let them light your fuse, but remain calm, someone else from the  audience (or the Moderator) will tell them they have strayed over the line and request a return to civil discourse.

7.   INDICATE YOUR WILLINGNESS TO CONSIDER THEIR CONCERNS. Whenever possible in your remarks, let people know that you are there to LISTEN to them.  If you approach the meeting with an obviously closed mind, it will simply anger them.  Showing the audience that you sincerely believe reasonable people may have differences of opinion and that you are willing to take their suggestions under advisement will help defuse the situation. Say things such as, “I hear what you are saying,” or “I understand your concern,” or even, “Thank you, that is a good idea and I will take that back to my management team.”

8.   OFFER ANOTHER OPTION FOR CONTINUING THE DISCUSSION.  Ideally, the Moderator will have  established at the beginning how long the meeting will run.  As that deadline approaches, you should make it clear that you will remain available for individuals to communicate with you at another time. People want to be able to express their opinions and be heard.  Provide your phone number, e-mail or snail-mail address.  Be sure to respond to those additional communications.

Following these guidelines does not guarantee that such a meeting will be a pleasant experience.  But by NOT following them, you can pretty well count on a bad ordeal that will not help persuade people to your point of view.

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SPECIAL NOTE:  Congratulations to Jim Zawicki of Sartomer Company, Inc. who won the contest in my last e-zine.  Jim was a participant in one of our workshops several years ago and obviously remembered what he learned well!  For those of you who are interested, the correct answers to the multiple choice questions were:
(1) d   (2)  f   (3) d    (4) c   (5) c   (6) c   (7) d    (8) c   (9) a   (10) c

Until next month…KEEP COOL!

Judy Hoffman
(919) 550-8302
www.judyhoffman.com
jchent@earthlink.net

QUOTE OF THE MONTH:  The world is not interested in the storms you encountered — but did you bring in the ship?  From “Apples of Gold”Compiled by Jo Petty

Little did I realize when we moved from NY to NC in mid-2006 that I was relocating to an area (near Raleigh) that would be so full of case studies for a crisis communications consultant!   Since we arrived, we’ve had:

• members of the Duke University lacrosse team accused of gang rape;
• a major fire that destroyed a waste treatment and storage facility and caused the evacuation of 17,000 people in Apex, NC;
• an immediate past governor and his wife both accused of several instances of misuse of executive privilege which spilled over and caused the removal of some top officials of NC State University; and
• a gunman who entered a senior citizen residential facility and killed a number of staff people and residents.

Now, this month the headline reads:

EXPLOSION AT CONAGRA FOODS PLANT IN GARNER, NC KILLS THREE

Around 11:30 a.m. on June 9th, workers in this food manufacturing facility that makes Slim Jim snack products were terrified by a huge explosion that caused part of the building to collapse and started a fire.  The scene in the opening moments was understandably chaotic as desperate employees tried to escape.  Emergency responders did an excellent job of bringing order out of that chaos.  It quickly became known that dozens of employees were sent to area hospitals, many with serious injuries, and that three employees were unaccounted for.  Tragically, it turned out that those three employees died.

Nothing in the life of an organization can compare to the agony that occurs when employees do not return to their families one evening. Knowing that other employees are having to deal with debilitating and painful injuries is a terrible burden to bear.  There will be repercussions for a long time, whether in the form of lawsuits from injured workers, post traumatic stress symptoms exhibited by survivors, or concerns about continuing employment, not to mention the decisions and costs of rebuilding.

WHAT CAN YOU LEARN FROM CONAGRA’S EXPERIENCE?

As I watched this breaking news story unfold just a half-hour away, I noticed several examples of excellent crisis communications planning and execution:

(1) In the first few hours, while employees were being accounted for and the uninjured sent by buses to a local Senior Center to be met by their families, it was the local police chief, fire chief, and mayor who provided regular updates to the media on the situation.  This was appropriate, especially as they reported that managers from the company’s headquarters were immediately on their way to the site. They also provided an 800 number for family members to call to find out where their loved ones had been transported for medical care.

(2) When Stephanie Childs, a member of ConAgra Foods’ corporate communication team, arrived, she made statements at her first press conference that (a) expressed the company’s deepest sympathies for the affected workers and their families; (b) promised to do whatever possible to aid them; (c) and pledged complete cooperation with local authorities as they would thoroughly investigate the cause of the accident - but only after the safety and well-being of the employees and the emergency responders engaged in search and rescue were assured.

(3) Shortly thereafter, the CEO of ConAgra Foods, Gary Rodkin, was personally on the scene and available for press conferences.  He echoed the spokesperson’s comments but went on to (a) say that the company would continue to pay its employees (though he could not be specific as to what length of time); (b) announce that a fund was being established to help victims of the accident, with  ConAgra jumpstarting the fund with a sizeable  donation; and (c) state that grief counselors would be available for any employees who wanted to talk with them.  The company also took several other important steps:

• offered to pay for funeral expenses for the victims and transportation costs for immediate family members to come to the funerals or to the bedside of the injured;
• made arrangements for truckloads of food to be made available to the employees who were temporarily out of work;
• and announced the company’s partnering with the American Red Cross for a blood drive.

He also went out of his way to express his deep appreciation for all of the help received by various local officials and agencies and the support offered by local community members who pulled together to help each other.

(4) Press releases with the latest information about the accident and its aftermath were periodically posted on the company’s website.

PAST EXPERIENCE DOES MAKE A DIFFERENCE

I tell the participants in my workshops all the time that your credibility is THE most important thing you have going for you in any crisis.  The way you’ve responded to previous incidents is banked in the memories of reporters and their editors.  They approach the most recent crisis with those past experiences in mind.

In ConAgra’s case, I witnessed this firsthand.  A reporter who was live on the scene in the opening hours went to great pains to relate his personal experience with the company a year before.  There had been some reports from employees of vision problems - some even experiencing temporary blindness.  The media had become involved.  This reporter had been very impressed with how openly the company had dealt with the issue, obviously concerned about the problem and determined to get to the bottom of it.  They had been honest in their dealings with the media, not attempting to hide anything.  It turned out the vision problems had been caused by some new type of bug-deterrent light bulb the company had installed, so they were able to solve the issue.

Based on the way the company handled this incident, the reporter at the scene of the explosion was obviously prepared to give the company the benefit of the doubt as they sought to deal with the current situation. It left a positive impression with those watching the accident coverage.

THE INCIDENT INVESTIGATION STATUS AND SUBCONTRACTED WORK

As of this writing, it appears as if the accident was caused when a sub-contracted firm working on installing a new water heater inappropriately vented a natural gas line into an enclosed pump room where an as yet undetermined ignition source caused the explosion.  The investigation is not yet final, but the Chemical Safety Board and investigators from the Department of Labor both seem to be pointing in that direction. Some of the injured employees have filed lawsuits naming several sub-contractors who may have been involved.

I am sure I am not the first person who has noticed how many industrial accidents have occurred when sub-contractors are on the facility site.  It was a sub-contracting firm working in the boiler room of the chemical plant where I worked that ruptured an ammonia line that caused a plant evacuation. At an explosives manufacturer client of mine, it was a sub-contracted firm’s worker who pulled out a regular hammer to fix a nail in a doorsill and caused the dust in the building to explode, killing himself and two company employees.  There are many other examples. Persons who don’t deal with the company’s products and processes every day are not as familiar with them and their hazards.  It is therefore incumbent on all organizations to ensure through their rigorous safety program that their Contract Safety policies and procedures are scrupulously followed.  It is a difficult task and a heavy burden, but vital in preventing a crisis.  No burden is heavier than having to deal with the aftermath of an accident where employees are killed and/or severely injured.  Even when the crisis communications aspects are handled well by the company, nothing can completely heal those wounds. It still holds true that an ounce of prevention is worth a pound of cure.

Until next month….KEEP COOL!

Judy Hoffman
1-800-848-3907 PIN 2145
jchent@earthlink.net

Quote of the Month:  “Hoping nothing bad will happen is NOT an intelligent crisis preparedness strategy!”
– Unknown

You may be doing a great job leading your organization — staying out of trouble and off the front pages.  You may even be doing some innovative and notable things. Suddenly an action taken by someone else in your organization lands you all in hot water.  Newspapers and bloggers are stirring the controversy, embarrassing you personally and leaving a stain on your organization’s reputation.

A recent example occurred in late April.  A Deputy Secretary in the White House Military Office decided that it would be a good idea to update the official photos of Air Force One.  Someone (as yet unnamed to my knowledge) had the bright idea of using the Statue of Liberty as the backdrop.  A preliminary discussion of these plans evidently took place within the hearing of Louis Caldera, the Director of the White House Military Office, and he did not voice any objections.

Panic on the Streets of New York

You probably read what happened.  On April 27, people in lower Manhattan saw a large Boeing 747, escorted by a fighter jet, circle low over the Hudson River and then fly frighteningly close to the skyline.  For people who had witnessed the terrorist attack on the World Trade Center towers on September 11, 2001 - whether in person or on TV — it was unbelievably traumatic.  Cell phone cameras captured images that were later replayed over YouTube of panicked citizens running and crying and yelling about “a plane falling from the sky again.”  Buildings in New York and New Jersey were hastily evacuated.

Criticism was immediate, widespread and pronounced.  A former Homeland Security Advisor called the decision to do this “felony stupidity.”

Enough Blame to Go Around

There were a lot of choices at whom to direct anger. Certainly the Director of the White House Military Office came in for his share.  The Federal Aviation Administration (FAA) was castigated.  (The Air Force spokesperson said that local law enforcement officials and the FAA were informed about the plans, but local law enforcement personnel said they received “directives not to disclose information about it.”)

Frequently, in situations like this, the top dog comes in for his share of blame.  For those who believe “The Buck Stops Here,” they look to the President, asking how he could let something like this happen.

Who Could Have Prevented This Debacle?

I believe that few people hold President Obama personally responsible.  The person at the top cannot possibly know of every day-to-day decision made by everyone in his administration.  It’s not a good organizational model.  You trust your key people to run their departments efficiently and intelligently, only going to the head person with serious questions or concerns.  On the day of the flyover, President Obama expressed he was “furious” and pledged that something similar would never happen again.   The Director of the White House Military Office submitted his resignation on May 8th (which was accepted).  Many people believe he should have been perceptive enough to have nixed this idea when he first heard it.  (The fact that he was out of the office with back spasms for several days before the event when the specifics were being planned and didn’t open his e-mails gives him a bit of cover, but not enough.)

But my question is this: where were all of the other people who could have raised their concerns?  Surely some folks in that military affairs office or in the FAA must have had misgivings.   And didn’t anyone question the expenditure of over $328,000 during this time when all branches of government have been directed to look to cut unnecessary expenditures? When I see something like this, I always wonder about the corporate culture. Is it one where people just go along with whatever “the boss” or “management” says?  Isn’t there some way for conscientious and concerned employees to be able to question decisions, to ask that another look be taken at it from a different perspective?  In my opinion, there should be.

A Little Communication Would Have Gone a Long Way

Finally, had this been an important mission that was deemed worthy of the expense, all of the panic and most of the criticism could have been avoided had advance notice been provided to the local authorities.  Back in the days when I was the Community Relations manager for a chemical manufacturing company in upstate New York, whenever we planned a special test of our emergency fire/evacuation siren or mobilized our plant emergency response organization for a disaster drill, we made sure to give plenty of advance warning.  We personally notified the municipal leaders and emergency responders as well as our neighbors (residents and businesses).  It was only common sense.  People were used to hearing our emergency whistles be tested at 10 a.m. every Tuesday.  If they heard them at any other time of day or night, they would be worried something was wrong that might cause them harm.

In New York City on April 27th, people were uninformed, so they feared the worst.

We All Learn Lessons the Hard Way

So remember:

(1) Think through thoroughly how decisions will be perceived by your various audiences.  Apply the “common sense litmus test.”

(2) Establish an agreed upon way for legitimate questions to be raised.

(3) Provide proper advance notification as appropriate.

I hope these tips will keep you out of trouble some day.  It’s too late for Mr. Caldera, but not for you.

# # #

FOLLOW-UP TO LAST MONTH’S EDITION:  I recommended that organizations frequently check Google and other search engines to see if their name appears so that they can try to nip a controversy in the bud.  I was reminded by one of my past clients that you can actually have Alerts sent to you every time your organization’s name is found by their search function.  Just go to the search engine and sign up for an alert. Think of appropriate key words - your organization’s name, your competition, important issues in your industry, etc.  I actually do this and it has been helpful.  Thanks, Joann, for the reminder!

PERSONAL NOTE:  I’m sending out this edition a few days earlier than usual for a special reason.  At the end of this week, my husband and I will be in Nashville, TN where we will have the special privilege of observing while our younger daughter makes her final presentation on her dissertation to a faculty committee at Vanderbilt University’s Peabody School.  If all goes well, we’ll be proud to call her “Dr. Hoffman” by Thursday night!  Send good vibes Cheri’s way or, if you are willing, say a little prayer, will you?  Thanks!

Until next month…KEEP COOL!

Judy Hoffman
(919) 550-8302
www.judyhoffman.com
jchent@earthlink.net

JCH Enterprises, 116 Nelson Lane, Clayton, NC 27527, USA

Thought of the Month: Avoid the “Hoovers” in your life.  These are the people who are always negative and complaining.  They suck all of your energy and joy.  They see the glass half empty and spill the rest.

For those of my subscribers who are, like me, squarely in the over 55 age category, you probably aren’t going to want to hear this.  But there is no getting around it.  If you care about the reputation of your organization, you must become familiar with today’s social media communications tools.  Facebook, MySpace, YouTube, Twitter, etc. cannot be foreign to you. You better find a way to be prepared to use them quickly, especially if you come under attack on any of them.

There are many examples of people who have found instant fame on YouTube. (If you haven’t heard of the latest, Susan Boyle, just search her name on www.YouTube.com. I promise it will raise your spirits.)  Sadly, there are also many examples of companies who have suddenly found themselves painted in very negative terms in a video posted there or talked about in the most unflattering terms on Twitter or Facebook.

A dramatic recent example involves the Domino’s food chain.  On a Monday, two employees (bored or disgruntled or just stupid?) filmed themselves as they did a number of gross and disgusting things to food they were preparing, supposedly for delivery. Then they posted it on YouTube.  By Wednesday, it had been viewed by more than a million people.  When “Domino’s” was Googled, five of the twelve listings on the first page referred to this repugnant video clip.  Discussions about it spread through Twitter postings.

Senior company executives learned about the video on Tuesday when a blogger who writes for Consumerist.com alerted them.  They were able to use clues from the video to trace the franchise involved to Conover, NC.  The franchise owner immediately fired the two employees. To his credit, he quickly called in the local health department, who advised him to throw out all open containers of food. He did.  But corporate executives decided not to respond aggressively, evidently hoping that the controversy would die a quick death.

In retrospect, those executives wish they had taken it more seriously. Domino’s spokesperson, Tim McIntyre, said, “What we missed was the perpetual mushroom effect of viral sensations.” Significant reputation damage was done.  Mr. McIntyre said he heard that even some loyal customers of 10-20 years were second-guessing their relationship with the company.  And a research firm, YouGov, which conducts daily on-line consumer surveys about hundreds of brands, found that the perception of Domino’s went from positive to
negative in just a few days.

Certainly there have been negative stories about fast food restaurants in the past. (Remember the alleged finger in Wendy’s chili?)  What sets the Domino’s incident apart and makes it absolutely chilling is the lightning speed with which these stories spread and how wide they reach.

All this means that you must be ever vigilant to what is being said about you on the Internet in all of its many forms.  I used to tell clients to Google their company’s name on a regular basis — maybe once or twice a week. Now I have to say you should do it daily and also monitor Facebook, YouTube, and Twitter.  This is especially true if your organization has high visibility or you or your industry have been involved in a recent controversy.  Forewarned is forearmed, as they say.  If you don’t know bad things are being said about you, you’ll really be behind the 8-ball. The further behind the story you get, the harder it will be to get your side of the story heard and believed.

You also have to be able to respond quickly — within hours — to the attack.  Don’t stop at posting your rebuttal on your own website.  (You ARE ready to do that without having to call your IT expert in at midnight, aren’t you?  Remember those “dark pages” I’ve recommended in the past?)  You also have to get to those social networking sites where the charges were posted and the others where the story will be picked up.  If you don’t know how to do that, go get a 20-30 year old and find out NOW!  And research
what other websites or social networking sites are popular in your industry (like Domino’s used Consumerist.com). You may have a trade association that could be helpful.  The more places your story is posted, the better the chance that your side will also appear when your organization’s name is Googled.

No doubt about it — it’s a scary world out there!  Remember when we just had to worry about the deadlines for newspapers and TV news shows?  Now it’s a 24/7 world.  But you can respond to the challenge — I know you can.  Even if you are over 55!

# # #

SPECIAL NOTE: Celebrate with me! When I first published my book, I set a goal to have it used by a half dozen colleges or universities.  Last month I received an order from Kansas State University which made it the ninth institution of higher learning that has used it as a text or supplemental reading.  To celebrate, I’m offering my readers a copy at the same price I offer to the college students — $14.95 (a 25% discount off list price).  Just let me know by e-mail that you’d like a copy of “Keeping Cool on the
Hot Seat: Dealing Effectively with the Media in Times of Crisis” and provide me with your snail-mail address.

Until next month…KEEP COOL!

Quote of the Month:  The happiest people do not necessarily have the best things.  They simply appreciate the things they have.

– Warren Buffet

One of the very best ways to survive a crisis that lands you in the glare of the media spotlight in your local community is to have worked hard ahead of time to establish credibility with your major audiences there.  Public relations professionals refer to this as “depositing credits into the Bank of Good Will.”  Then, when something bad happens to your organization, you can draw out some of this Good Will to help you deal with the crisis so that your corporate reputation is not too badly damaged.

Make no mistake.  It takes time and effort to develop and nurture the relationships with those people whose opinions will be sought as the media writes the story.  In my 17 years of working for a chemical manufacturing company in New York, I spent a good 90% of my time doing things to enhance our corporate reputation through community relations efforts related to the five major audiences highlighted below.  But also know that, in my opinion, it was only because we had expended this time and effort that we were able to survive the fact that we had occasional releases of product that smelled like rotten fish at 12-21 parts per billion!  We sometimes also had other issues - a bomb threat, a regulatory fine, an employee who almost severed a hand, an on-site hazardous waste disposal problem from years previously, a railcar overturned, etc.

I encourage you to print out this e-zine.  Fill it out, giving yourself a score from 1-10 on each of the questions.  For your own good, be brutally honest.  Even better, make some copies and distribute it to a cross-section of your employees, from senior management to entry level positions.  Ask them to fill it out anonymously.  It’s surprising how you can get a wide variation of opinions.  Low scores or discrepancies in responses can point out some areas to which you need to pay more attention to help improve your community relations and, at the same time, prepare your organization for a crisis.

OK, here we go.

EMPLOYEES

_____ When asked, most of our employees would convey to friends and neighbors that this is a good place to work.

_____ Our employees are well informed about the company’s mission, goals, and plans.

ELECTED OFFICIALS

_____ We proactively contact local (and, when warranted, county, state or federal) officials to keep them informed of unusual events or important initiatives, activities and programs.  In other words, we don’t just call them when we want to lobby for something.

_____ Local officials know our senior management people by name.

EMERGENCY RESPONDERS

_____ We conscientiously provide opportunities for them to become familiar with our operations e.g., invite them for walk-throughs, inform them promptly of new hazardous materials on site, etc.)

_____ We hold joint drills with them frequently so both of us can be confident if they ever had to respond to an incident here.

MEDIA

_____ We have a working relationship with the media people who cover us (i.e, we know who would probably come to us on a story and we have talked to them before an incident).

_____ We feel sure that the media would at least call us for our statement on a story about us.

_____ We are confident in the abilities of our identified spokespersons and crisis management team to represent us well when dealing with reporters; their most recent media training took place within the past three years, at a minimum.

PUBLIC-AT-LARGE

_____ The general impression is that our facility is a good neighbor and an asset to the community.

_____ Company spokespeople, including the highest-ranking official on site, have established personal credibility in the community, i.e., they have been involved in community organizations and
activities.

_____ We have a good safety record with regard to our employees and the environment. (Note: the more recent a memorable incident, the lower the score must be.)

ADD UP YOUR SCORES.  If they total 96-120, you are doing well; 48 - 95 means you have some work to do, especially in those areas that were low rated; 0 - 47 is an indication that your corporate reputation is in serious jeopardy and a crisis could spell real trouble.

# # #

SPECIAL NOTE:  If you would like a copy of the full-blown “Community Relations Health Check-Up,” please e-mail me and provide me with your snail-mail address or fax number so I can get it off to you right away.  With even more questions for you to answer, it will give you an excellent assessment of where you are and provide you with ideas on how you can improve your standing with your important audiences.

As always, if you’d like to share this e-zine with colleagues and friends, feel free to do so and encourage them to sign up for their own copy at my website www.judyhoffman.com

Until next month…KEEP COOL!

Judy Hoffman
(919) 550-8302

JCH Enterprises, 116 Nelson Lane, Clayton, NC 27527, USA

Quote of the Month:  We can easily forgive a child who is afraid of the dark. The real tragedy of life is when men are afraid of the light. As quoted in “Apples of Gold”  Compiled by Jo Petty

WHERE HAS OUR CORPORATE CONSCIENCE GONE?

If you are anything like me, you have probably been doing a lot of head shaking recently. However you get your news, you’ve been hearing numerous accounts of people highly placed in businesses of all types who seem to have no shred of conscience any more.  You’ve probably seen stories about:

Senior management people at financial services institutions who have engineered — or at least accepted — huge bonuses while the organizations they led hemorrhaged  profits that left their employees and shareholders with little or nothing; Organizations that happily accepted the 2008 bail-out funds meant to be used to stem the credit crisis but instead used them for fancy corporate retreats and other perks limited to a few people at the top and then refused to reveal what they’d spent the money on; Companies that knowingly shipped out contaminated products (from peanut products to saline solutions and heparin) that made hundreds of people sick and even caused the death of many.

WHAT IS GOING ON HERE?

I used to be proud to say that my father, God rest his soul, was “an investment banker on Wall Street.”  If you mention either of those two terms nowadays, the hair on the back of the neck of a majority of people stands up on end.  My dad was one of the most ethical people I’ve ever known.  Being honest in all of your dealings was something Dad and Mom both emphasized to my brother and me at every opportunity.  When my father was getting set to retire as head of the Government Bond Department of First Boston Corporation (now Credit Suisse) back in 1973, there was to be a dinner in his honor where the usual practice was to “roast” the individual.  My mother took it as the highest form of compliment that his colleagues couldn’t find anything bad to say about Dad! After 30 years of being with the company, where he had started at
the lowest level, people spent the evening talking about things like trust and their confidence in him when he gave his word and his ethical conduct in all matters.

Too many times nowadays it seems that big business leaders are playing a game — seeing how many financial shenanigans they can get away with and how far they can bend the rules and regulations, if not outright break them.  If rules and regulations are broken, those who are willing to do so seem to be counting on the fact that organizations set up to regulate them will not be capable of doing their job properly - whether that organization is the Securities and Exchange Commission or the Food and Drug Administration.  Did these folks actually rationalize to themselves that, if they could get away with it, it must be OK?

WHEN AND HOW WILL THIS END?

I’d like to think that one of the first people to try to bring an end to this type of activity would be whoever was going to have the job of trying to explain the situation to a horrified/angry/concerned public.  This individual could have a title like Public Affairs Manager or Corporate Communications Director.  Or it could be any employee at any level of the organization who had a good sense of right and wrong. When
organizations do not DO the right things, there is no way that any public relations person or crisis communications professional is going to be able to come up with some words that will make it all be just fine. (Even though I jokingly use a magic wand in my workshops, I’m here to tell you that it really does not work, especially in circumstances such as we’ve been seeing of late.)

Sometimes this individual has to be very courageous.  It certainly isn’t easy to stand up against an arrogant CEO or other senior manager who has come to believe that he or she can do anything necessary to assuage his/her ego and achieve personal goals of wealth and power.  This person must have earlier established credibility within the organization so that he/she will be listened to by the appropriate people when the question is posed, “How is this going to be received by the public when this comes out - as it will?”

I have often said that the most effective form of crisis communications is crisis prevention.  It is always preferable not to have to scramble to put together a statement attempting to defend something that is basically indefensible.  As one of my clients in a recent workshop said, “If you do the wrong thing well, it’s still not good!”

Playing the role of the corporate conscience is not an easy task. But it is needed if you hope to avert having your organization’s reputation severely damaged if not totally ruined.  The stakes are high for all of the employees of that organization.

# # #

A QUESTION FOR YOU:  I would be very interested in knowing whether my subscribers are actively involved in the social networking field.  It seems I am constantly being advised that I should be involved in Facebook or Twitter or MySpace.  My sense is that my clients and prospective clients would not be looking to these kinds of sites for news and advice on issues related to crisis communications.  I’d appreciate your dropping me an e-mail to let me know if I am right in this assumption, or if I am just rationalizing because I don’t want to learn these new skills at my age!

UNTIL NEXT MONTH…Keep Cool!

Judy Hoffman
jchent@earthlink.net
www.judyhoffman.com

JCH Enterprises, 116 Nelson Lane, Clayton, NC 27527, USA

Quote of the Month:  “Just because you believe something firmly doesn’t make it true.”
William P. Young, Author of “The Shack”

CORPORATE IMAGE IS A FRAGILE THING

Before I begin, I want to offer up a prayer of thanksgiving for the safety of all those involved in the emergency landing of US Airways Flight 1549 on January 15th.  Nothing can minimize the skill of that heroic pilot and the fact that the other crew members did what they needed to do to ensure the successful outcome of what New York Governor David Patterson termed the “Miracle on the Hudson.”  My husband and I had a personal connection. A family friend from New York who now lives in Charlotte e-mailed to tell us that his daughter, now an executive with Bank of America, had been on that plane. She was the first person out of the left emergency exit and spent some time in the cold Hudson River before being pulled into a life raft. After being warmed up in a hospital, she returned to Charlotte where she says she alternates between being euphorically happy and more than a little traumatized by the ordeal,  realizing how close they all came to death.

At First US Airways Was Looking Good

I fly a good deal.  Most of the media training workshops my husband and I conduct require it. For a number of years, I dreaded finding out that the cheapest flight was on US Airways.  They had one of the worst records among domestic carriers for delayed flights and lost luggage.  In 2008, however, I had flown US Airways a couple of times and was extremely impressed with the new planes, my on-time departures and arrivals with no maintenance issues, and luggage that arrived when I did.

When the pilot of Flight 1549 was able to make an almost flawless landing in the Hudson River and all of the 155 passengers and crew escaped with only one serious injury, I think the corporate image of US Airways experienced a favorable bump-up.  The picture in most people’s minds was probably the AP photo of the half-submerged airplane with “US Airways” showing plainly, while all those survivors stood on the wings waiting to be rescued.

Five Days Later, Serious Questions Were Raised

The crash happened on January 15th.  On January 19th, my husband and I attended dinner at the home of some friends.  Also in attendance was another couple who told us a fascinating - and scary — story.  It seems their son, who lives in Charlotte, had been on US Airways Flight 1549 on January 13th.  When he got home, he reported having been very frightened by loud noises that shook the plane just 20 minutes after it took off.  The captain had come on the intercom reporting that they most likely would have to return to LaGuardia to investigate what had happened.  But the flight did not turn around.  The captain reported that they had evidently experienced something that had caused the engine compressor to stall, but that they had fixed it.  The flight continued safely to Charlotte.

On January 20th, I saw a story on CNN.com corroborating this account.  The reporters had carefully verified that the airplane was the exact same Airbus A-320 with tail number N106US which was involved in the emergency landing two days later.  Suddenly huge questions arose.  Had engine damage been done by the compressor stall on Tuesday that meant the plane shouldn’t have been cleared to fly on Thursday?  Was it indeed the flock of birds that caused the problems on Thursday?  Could this all be one big coincidence?

US Airways’ Responses

Initially, on January 15th, I was quite impressed with the speed and content of the messages that came out of US Airways.  I was actually on their website trying to arrange a flight to Philadelphia for a February 10th workshop when the news of the crash was broadcast online at CNN.com.  I switched immediately to the US Airways home page and was pleased to see they had a press release confirming the known facts at the time and promising updates as soon as possible.  Within an hour and a half, I watched TV and saw Doug Parker, CEO of US Airways, deliver a statement at a press conference that gave the basic facts of the incident.  He indicated he was getting on the next plane for New York to personally address the situation.  I complimented them on doing all these things that we teach in our workshops.

However, in the January 20th story relating the previous incident, US Airways “would not confirm that the Flight 1549 that took off on January 13th was the same plane that splashed into the Hudson two days later.”  The CNN reporters had been able to confirm this through alternative reliable sources.  This did not make US Airways look good; in fact, it made it appear as if they were trying to hide something.

When people think an organization isn’t being completely forthright, they predictably get suspicious, concerned and/or angry.  In my opinion, whereas initially the passengers on the January 15th flight might have been willing to write off their lost luggage, cell phones, Blackberries, and laptops in exchange for their joy in being alive, they might now re-think things in light of the previous incident.  In the coming weeks, I would not be surprised to see some lawsuits filed against US Airways, particularly if the ongoing investigation shows that Thursday’s plane was damaged by the compressor failure.

I am certainly no aviation expert, and I don’t know if it is possible to ascertain such a thing.  I just know that questions have been raised, and it is a lot less favorable to US Airways that others brought the information to light about the previous incident. There was an entry in the maintenance log on January 13th that Flight 1549 “experienced a compressor stall.”  Perhaps it wasn’t thought to be serious at the time, as this evidently does happen from time to time and can be rectified by restarting the engine.  But undoubtedly at least a few people in airline maintenance/operations knew about this January 13th incident; it should have raised some red flags when the January 15th flight landed in the river.

We may never know if those maintenance/operations folks alerted airline management and, if so, whether those management people opted not to say anything, hoping that it would never come up. That’s not very realistic.  With 150 passengers terribly frightened by the compressor failure on January 13th, officials at US Airways should have known it would come out somehow when the crash occurred two days later.  Wouldn’t it have been a lot better for US Airways to have been the ones to announce that there had been an earlier incident?  If true, they could have said that a complete investigation of the compressors and engines had been conducted and that they were verified to be working properly before the plane was released for service.  As it stands now, there will probably always be a question in at least some people’s minds about whether or not it was entirely the fault of the flock of birds.  One thing I know
– I’m still debating whether to keep my US Airways flight to Philadelphia on February 7th.

# # #

SPECIAL NOTE:  Welcome to the new subscribers who signed up for my e-zine after I spoke on Wednesday at the NC Business, Environmental and Safety Training (BEST) Conference at NC State. Good to have you with us!

Until next month…KEEP COOL! (I do feel like I should tell my former neighbors and colleagues in NY state and those of you in the Midwest and Northeast, try to STAY WARM! It’s been a tough winter.)

Judy Hoffman
www.judyhoffman.com
jchent@earthlink.net
(919) 550-8302

JCH Enterprises, 116 Nelson Lane, Clayton, NC 27527, USA

Here’s a good New Year’s Resolution for you.  Make it a point - as early in the year as possible - to check on the completeness and accuracy of your database of contacts within your major audinces.  If you needed to reach out quickly to your employees, customers, media contacts, retirees or alumni, close neighbors, Board members, local elected officials or others, would you be able to do so?

In times of crisis, when everything always moves way too fast, it will add greatly to your levels of confidence and competence if you are assured that you are able to communicate vital points to these various audiences through an organized system that is already in place and operating.  The type of technology you use — whether a computerized telephone system or a blast e-mail or fax or text message - depends on your organization’s capabilities and your audience’s preferred method of hearing from you.

University Examples

In mid-December I was invited to address the Annual CASE (Council for the Advancement and Support of Education) District V Conference in Chicago.  (Yes, I was happy to get back home to the 55 degrees in Raleigh from the 5 degrees of Chicago.  That was a minus 10 degrees with wind chill factored in!) I have often said that the principles of dealing with a crisis that attracts media attention apply across the board, no matter what industry you are in.  The conference sessions bore this out.  Those in my audience confirmed that what I talked about made perfect sense to them in their roles as communications professionals for their universities.  I also learned a great deal about how these principles apply in the arena of higher education.

Two conference sessions stand out in my mind.  In the first, we were privileged to hear from the communications professionals who had been at the very center of the tragedies that played out on the campuses of Virginia Tech and Northern Illinois University where crazed gunmen took the lives of so many students/faculty members.  In the second, the Vice President of Communications at the University of Florida related what it was like to be the subject of an Internet crisis. A student who was heckling Senator John Kerry was subdued by campus security through the use of a taser gun.  His cry of “Don’t tase me, bro!” went from a small story locally in Tallahassee to a YouTube sensation with 1.6 million hits within six hours, which then spawned many more comments/interviews from the traditional media.

In all three instances, these speakers emphasized how vitally important it was for them to be able to communicate their messages - not filtered by the media - directly to the students, faculty/administration, huge body of alumni spread all around the country, donors, Board members, and others.  Once the “must air” messages were finalized, what a boon to be able to send those messages on their way through already established systems.  If they had to compile these databases during the crisis, the messages would have been delivered way too late to do them any good in terms of being able to shape the story and stay on top of the situation.

How Current Are Your Databases?

Phone numbers, addresses and e-mail addresses get changed frequently.  People move from one category to another (employees to retirees, new Board member elections, facility neighbors who move away or enter a neighborhood).  In a crisis, the more people who don’t receive your messages, the less effective your outreach and the more criticism you will receive about your ability to get the word to those who feel they have a right to know what is going on.  Technologically, certain systems become outdated and new capabilities come on the scene.

Let me suggest that you run a real-time test of your ability to reach your major audiences.  Ideally, you could do it as part of one of those realistic role-plays I am always encouraging my clients to conduct to test their ability to respond quickly and competently in a crisis.

If the difficult economic times we are in mean that you cannot conduct a full-blown media training this year (your initial or a refresher course), please make sure you at least:

(1)     read or re-read a good book on dealing with the media during a crisis*;
(2)     draft up a scenario of a crisis situation that would make your management team sweat a little**;
(3)     contact your key audiences with a “test” message; and
(4)     videotape a mock TV interview and re-play it so you can critique how you all handled it.

This is a useful way to spend one of your staff meetings.  I can almost guarantee you that you will find a number of things that
you need to fix before the day comes upon you when something bad happens!

* * *

SPECIAL NOTES:

*If you need a suggestion for a good book on the topic, let me unabashedly recommend the newly revised (2008) version of my own “Keeping Cool on the Hot Seat: Dealing Effectively with the Media in Times of Crisis.”  As my New Year’s gift to you, let me know by e-mail (instead of going through my website) that you would like a copy, and I will provide it to you for $10.95 plus $5.00 for shipping/handling - a discount off the list price of $19.95.

**If you need some suggestions for possible role-plays, contact me by e-mail or phone and I will send you some possibilities to consider.

Until next month…KEEP COOL!

Judy Hoffman
jchent@earthlink.net
1-800-848-3907 PIN 2145
www.judyhoffman.com

QUOTE OF THE MONTH:  I don’t worry too much about pointing fingers at the past. I operate on the theory that every saint has a past, and every sinner has a future.

– Warren Buffet
CEO Hathaway and Multi-billionaire

(EDITOR’S NOTE:  Yes, I know it is November…but circumstances conspired to make this edition a couple of days late.   I thought I would share with you some thoughts which I will be presenting at the upcoming Fall Meeting of CHWMEG, Inc. on November 11th in Orlando. CHWMEG, Inc. is a non-profit trade association comprised of manufacturing and other “industrial” companies interested in efficiently managing their wastes as part of their environmental stewardship programs. As part of their efforts to responsibly manage their members’ wastes, CHWMEG conducts independent reviews of commercial facilities that treat, store, dispose, recycle or transport waste. They also develop and deliver seminars and hold conferences and publish informational documents to further these goals.       While some of the lessons here refer mainly to manufacturing
facilities, most of the lessons drawn from this major fire at a waste transfer facility that occurred in Apex, NC in October of 2006 can apply to organizations of all kinds.)

Before an Incident

1.  Recognize how much better it is to PREVENT an incident than to RESPOND to one. (Spending money to upgrade your facilities and provide 24-hour coverage — operating personnel or security guards who can catch an emergency when it is still small and manageable– is preferable to harsh fines/penalties).

2.  Ensure your emergency plan is complete and reasonable.   Test it.  (An emergency plan that calls for employees to put out a fire with an extinguisher is NOT reasonable when there are no personnel on site from 6 p.m. to 8 a.m.)

3.  Realize ALL of your actions - before, during, and after an incident - will be scrutinized under a microscope with 20/20 hindsight. Make sure your daily operating decisions are made with an eye toward safety, environmental protection, and neighborhood concerns.

4.  Do things that develop a level of trust within the community, especially with emergency responders.  Also reach out to local officials, media, and neighbors.

5.  Make sure neighbors know you are open to answering their questions.  Develop your sense of empathy for legitimate concerns of neighbors.  Recognize that their “core values” are prioritized:

a. Health of selves and families
b. Value of possessions and property
c. Environmental protection
d. Quality of life issues
e. Peace of mind
f. Economic security

Don’t try to remind them of how many people you employ or how much you pax in taxes when they are fearful of negative health effects.

6.  Identify and train a site manager/employee to be an initial spokesperson who can quickly deliver a “stand-by statement” until the official spokesperson arrives. Make sure you have some “stand-by statements” on the most likely types of incidents prepared and approved so you can fill in the blanks.

7.  If you deal with hazardous materials, establish, maintain and have readily available a current inventory of materials on site.  Putting firefighters and neighbors at risk because they do not know what is on site is not acceptable.

8.  Learn (through seminars, books, tapes) how to deal effectively with angry/upset/concerned people.

9.  Consider underwriting (or sharing in) the cost for a computerized telephone alert system to notify officials and neighbors if they need to take actions (because of you
or anything else that could go wrong in the community — lost child, escaped convict, water main break, etc.).

During an Incident

10. Remember the Chinese word for “crisis” is made up of two characters: “danger” and “turning point.”  Use this to keep things in perspective.  If you handle your crisis well, you can be seen by the public as being responsible and responsive so that they’ll give you the benefit of the doubt and trust you to continue running your organization.

11.  Be prepared to speak competently and confidently to the public - initially through the media– to provide accurate and helpful information.  PRACTICE AHEAD OF TIME - DON’T “WING IT.” You might want to consider hiring a crisis communications expert to put you and your management team through some realistic role-plays to make sure you are prepared.

12.  Make available a technical expert (preferably an objective third-party) who can speak knowledgeably about health effects of your materials.  This takes pre-planning to be effective.

After an Incident

13.  Expect lawyers to come out of the woodwork; know whom to call for legal advice - but avoid those who advise you to say “No comment!”

14.  Expect activist environmental groups to converge - national and ad hoc local; prepare to sit down and discuss issues with the latter.

15.  Work to mend fences with local officials (those who give you permits, inspect you, and have to answer residents’ questions about you).  Do what you can to make them look good, so you can get back to work.

16.   Expect stricter regulations to be instituted at local or state, if not federal, level.  Politicians must be seen to respond to issues of public safety.  Cooperation is expected - and required.

See again Point #1 - recognize it is better to PREVENT an incident than RESPOND to one.

So…if you are in the Orlando area on the evening of Nov. 10th or the afternoon of Nov. 12th, stop by and say “hello” and we can talk for a while about whatever crisis you are facing at the moment!

UNTIL NEXT MONTH…KEEP COOL!

Judy Hoffman
www.judyhoffman.com
1-800-848-3907 PIN 2145

JCH Enterprises, 116 Nelson Lane, Clayton, NC 27527, USA

Quote of the Month:  “Every dog has its day,   but it’s not every dog that knows when he’s having it.”
–Winifred Gordon, from “A Book of Days” (1910)

Last Friday evening I tried to imagine what it must have felt like to be in the shoes of Senator John McCain or Senator Barack Obama.  Neither one of them would be United States Senators if they were not experienced public speakers.  They’ve been on the campaign trail for many months by now, so they are used to addressing crowds with prepared speeches, sometimes taking questions from audience members Town Hall style.

But this was very different.  This was a head-to-head debate where undecided voters in what appears to be a very tight race would have their first opportunity to watch and listen to them side by side. The audience would be observing how well they could think on their feet, answering questions they had not seen beforehand.  The candidates knew they would be judged not only on the content of their answers but also on their style of deliverance - how forceful they were, how persuasive, believable, well articulated, etc.

And the size of the audience was estimated by some commentators to be about 60 million people!  I dare say none of you have had an equivalent situation.  However, the pressure is still intense when you are the one in the glare of TV camera lights.  It could be a one-on-one interview in your lobby or parking lot when there’s been an accident at your workplace.  Or you could be asked to participate in a discussion in a TV studio over something that has been alleged to have gone wrong.  It’s also not comfortable to face an angry crowd of facility neighbors who don’t like something you are planning to do or hold an employee meeting when they are upset because of rumors of layoffs, etc.

Body Language Communicates Volumes

Those of you who have taken one of my workshops or heard me speak know how much emphasis I put on body language.  You hopefully remember the bar graph I use that indicates how powerfully your message is communicated by the things you do with your feet, hands and face to either emphasize and underline your message or detract from it.

The truth of this was underscored in the moments immediately following the debate.  On the TV station I watched, all three nationally known news commentators were giving their impressions of how the candidates appeared as opposed to what they said.  The “fact-checkers” would provide their reports in the next day’s newspapers and web reports.  Immediately after the debate ended, the focus was on things like: (1) who appeared the most natural and at ease (thereby supposedly conveying the idea that they could
handle the pressures of the presidency); (2) who looked confident in what they were saying; and (3) which one did a better job of making and keeping eye contact with his opponent and with the audience out in their living rooms.

Style vs. Substance

There can be no doubt that this body language stuff is critically important.  Many executives tend to overlook it in favor of making
sure their messages are on point and their facts are correct.  Of course the messages have to be accurate.  Your credibility must be
protected.  However, it is also true that most people will forget the specifics of the message.  They will, instead, respond
emotionally and viscerally to who appeared to be telling the truth and who looked trustworthy and - most importantly - who looked like they cared about the situation in which the average observer finds himself or herself these days.  The old saying “People don’t CARE how much you know until they KNOW how much you care,” was never more true.

So What Do You Do About This?

If you realize the importance of body language in communicating your message, how can you do a better job of using it to your
advantage, or at least not have it work against you the next time you are on a “hot seat?”  The only way is to practice, practice,
practice.  Gather your staff and other groups of employees together and simulate a situation where you will be questioned under fire.  Have the session videotaped so that you can review it.  Look to see if you have any annoying habits that distract from your message (nervous gestures with your hands, involuntary grimacing or smirking, shifty eyes, bouncing or swaying, or verbal tics
(repeated words like “um…” “ah…” “you know” etc.).  Request honest feedback from your colleagues about whether you seemed to
express empathy and appear sincere.  Accept whatever constructive criticism you receive and set to work on those things mentioned,
either on your own or with a speech/communications coach.

You may not have to convince 60 million people you are capable of leading them as you seek the highest office in the country, but in
your business a lot may be riding on your ability to persuade people you care about to your point of view.  Assuming you know
what you are talking about, using positive body language will be a major key to your success.

# # #

Until next month…KEEP COOL!

Judy Hoffman
jchent@earthlink.net
www.judyhoffman.com
1-800-848-3907 PIN 2145

JCH Enterprises, 116 Nelson Lane, Clayton, NC 27527, USA