Corporate Crisis Communication Spring 2014 Georgetown University Judith

Corporate Crisis Communication Spring 2014 Georgetown University Judith Muhlberg & Bruce Harrison Class #13 April 10, 2014 Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 1

Teams for Final Presentation – May 8 # 1 Boeing Brooke Cockrell Tatiana Daniel Bhumika Shah Erin Wiegert Elleni Almandrez #2 Microsoft Sara Schuttloffel Yogita Malik Kaitlin Luna Andrea Garner Hayley Kropog Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 2

Teams for Final Presentation – May 8 #3 Honeywell Katie Spencer Emily Morin Melissa Wertz Emma Waldeman Catie Weckenman #4 JP Morgan Ritiksha Lobo Ana Maria Garzon Slgi Choi Olivia Peterson Sarah Heffern Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 3

Teams for Final Presentation – May 8 #5 Walmart Omogboyinde Onijala Jill Westeyn Annie Lorenzana Krystyna Barnard Austin Hansen Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 4

The Final Presentation Teams will: Prepare and deliver to the class and faculty a 10 -minute slide (Power Point) presentation Describing cause, risk, stakeholders, SWOT (strengths, weaknesses, opportunities and threats) and other implications, and Recommending to the “audience” (fellow class members and instructors, assumed to be representatives of the company or industry) a clear, focused and robust crisis communications action plan—with specifics on engaging the essential elements of crisis communications covered in this course. This plan/presentation is worth 25 points. Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 5

CCO as Central Navigator in ‘Topic A Bad News’ “When one negative situation is topic ‘A’ bad news at the top of the organization. ” Steve Harris, former CCO of General Motors Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 6

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CEO Views: Augustine, Martin Marietta 1. 2. 3. 4. 5. 6. Avoid the crisis Prepare to manage Recognize the crisis Contain the crisis Resolve the crisis Profit from the crisis Norman R. Augustine, Former CEO, Martin Marietta, Harvard Business Review on Crisis Management, 2000 Augustine 1. 2. 3. 4. 5. What can’t be avoided must be hedged Trailer parks cause tornadoes Noah built the ark early Perception causes crisis The one aspect of business in which a CEO’s influence is critical is crisis management. Key ideas Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 8

Disruptive/pre-crisis factors Controllable Beyond reasonable control • Red flags (consumer) discontent • Contexts on stakeholder in the information universe • e. g. , a shift in market conditions • Content and tone of information flow • e. g. , a negative (inaccurate or rigged) You. Tube video goes viral Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 9

When disruption/crisis occurs Routine is disrupted Missions must refocus Response is demanded Trust is put at risk CCO role becomes critical Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 10

CEO Views: Andrew Grove (CEO, Intel) Crisis as a ‘strategic inflection point’ An inflection point occurs when the old strategic picture dissolves and gives way to the new, allowing the business to ascend to new heights. If you don’t navigate your way through an inflection point, you go through a peak and after the peak the business declines. . . Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 11

CCO’s Crisis Navigation Strengths • Mastery of information flow • Intimacy and influence within the company’s culture • Active interaction with stakeholders and media Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 12

CCO Crisis Readiness, Action Know the risks Prepare to navigate Assume central Csuite role Georgetown University Muhlberg/Harrison Spring 2014 Collaborator, navigator April 10, 2014 13

Auto industry crises: viewpoint http: //www. nytimes. com/video/business/dea lbook/100000002761106/the-currency-fixbanging-theclose. html? playlist. Id=100000002585027 Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 14

Corporate Risk Readiness Crisis management planning • Oriented to risk factors (see 10 k), mission, governance… • C-suite, operations, facilities, sales… Crisis communication planning • Integrated with crisis management Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 15

CRISIS MANAGEMENT Plan is prepared pre-crisis to guide senior and middle management in crisis/disaster response CRISIS COMMUNICATION Plan is prepared by CCO to coordinate with corporate management in engaging with media and stakeholders When the crisis occurs, the CCO and team go into a management mode, guided by a standby crisis communication checklist. Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 16

CCO ‘Navigation’ Preparation Focus on your 3 vital accountabilities Think through your most likely crisis situations Conduct pre-crisis intelligence Prepare crisis communication guidelines Contribute communication expertise to the company’s crisis MANAGEMENT plan Organize standby crisis-communication team, designate standby central work station Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 17

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Exercise: Crisis Questions: A CCO Checklist Advanced Planning Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 19

Break out into your Teams • Brainstorm the list of questions you need to ask in the first critical moments of a crisis. What? So what? Now what? • • • List your questions on the white boards Appoint a spokesperson to share your team’s list with the class We will re-group in 30 minutes for the report -outs Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 20

In event of crisis: The CCO’s Entry Ask questions What’s it all about? Who? When? Where? How? Why? Think like a reporter: CRITICAL QUESTION: Is there death, danger? Think context, content, tone of communication Understand level…a crisis or something less…a nuisance? Think your role in managing either. Activate your communications team Think ‘FACE’ Activate the communication center. Think 24/7 Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 21

‘FACE’ Formula for Crisis Navigation Fast Think: immediate mobilization of communicators, in crisis communication center; try for initial response within the first hour; if there’s a scene, send someone there NOW. Accurate Think: speed is good, accuracy is better; hold what we’re not sure of; we can always follow up; triple check every fact. Consistent – and Caring Think: If human harm, public safety is involved, that’s the #1 priority. Show we care. Tone of our communication; concern/sympathy for any harm, victims. Engagement Think: we will use every effective channel to listen, understand deliver what stakeholders need Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 22

Crisis Management Plan What is it? What’s in it? Who writes it? What facts or fears justify the effort? Who gets a copy? What makes it special to everybody who gets a copy? Do you think the Plan is likely to be used in an actual “crisis” event, or not? Why? How would you increase the use/benefit? Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 23

Plan Content………. . Questions Steps the company will take in response to a crisis Specific staff responsibilities Reporting systems Stakeholder data Communication channels Can a plan prepare for every situation? What staff issues can be anticipated? Media issues, key channels? How would you plan for stakeholder engagement? Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 24

What the media (and your stakeholders) want to know What happened? Were there any deaths or injuries? What is the extent of the damage? Is there danger of future injuries or damage? Why did it happen? Who or what is responsible? What is being done about it When will it be over? Has it happened before? Were there any warning signs of the problem? Source: Crisis Communications, Kathleen Fearn -Banks Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 25

Special focus on internal stakeholders Whenever possible, tell employees first Use all channels to ensure employees understand the corporate position – they are your strongest ambassadors If there is action the employees should take to mitigate the crisis, tell them Advise employees to direct media questions to the designated spokesmen – and help them understand why a consistent, well-informed message is important Listen to learn what they KNOW, how they FEEL Employee perceptions can make or break communication/trust “WE” attitude is the strongest crisis message platform Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 26

CCO ‘New Model’ Pre-Crisis Leadership Adopt crisis prevention as ongoing vigilance to assure enterprise reach of financial, social, safety, health, and civic responsibility goals. Tie your effort to the realities defined by the company’s SEC 10 -K risk list. Be proactive with others in the C-suite to stay aware of any risk elevation. Build communication influence: create your own stakeholder perception intelligence systems to plug into the stakeholder systems for early alert: red flags that could grow into crisis situations. Initiate regular, calm conversations with C-suite colleagues to assure top-level effort to prevent rumblings from reaching unplanned disruption and crisis levels. Be prepared: lead the readiness, appoint people in the communication staff, and prepare online and operational facilities for immediate response to a real crisis. Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 27

BAO: Navigation to purpose Damage is controlled, risk is reduced Trust (in the company and brand) is protected Leadership is visible, on ‘scene’ if there is one Focus is on stakeholders, their perceptions The ‘deal’ with stakeholders is preserved Every stage of the crisis is managed, constantly, consistently; FACE is forefront Debriefings are constant, lessons are learned for future Crisis communication was part of the answer Georgetown University Muhlberg/Harrison Spring 2014 April 10, 2014 28