You’d Think a Mega Media Mogul Would Have a Better Handle on Crisis Communications

But in the case of Rupert Murdoch, you’d be wrong.

Reviewers were unimpressed with Murdoch’s testimony this week before British Parliament in the rapidly expanding and deepening News Corp. phone hacking scandal.

Murdoch’s performance was yet another reminder of a lesson we pointed out recently: that executives need better crisis communications training.

It wasn’t exactly the notorious no-comment approach. But it was far from the transparent, accountable leadership that Parliament and the public were looking for. Is anyone buying Murdoch’s pleas of ignorance about what’s been happening at his news outlets?

It seems News Corp. has handled the phone hacking problem poorly going all the way back to its beginnings in 2006. Instead of tackling the issue head-on when they had a chance, Murdoch and his son James must now clean up a much bigger mess.

To do so, they’re going to have to be more open, responsible and direct than they’ve been to date. After all, you can’t make the story go away just by ignoring the scandal in your own media … or even by winning a little sympathy after a pie attack.

Why PR, Crisis Communications Belong in Business Schools

The value of a company is closely linked to its reputation. Why, then, do so many executives fail so spectacularly at protecting their companies’ reputations in times of trouble?

Columnist Anthony D’Angelo in Bloomberg BusinessWeek cites a lack of communications studies in MBA programs as one key reason:

“So glaring is this omission that it's typical for MBA-holding executives to assume ‘reputation management’ or ‘public relations’ is the black art of spinning an alternative version of reality, as though that works in today's wide-open, relentlessly scrutinized, electron-speed information environment.”

Well put, Anthony.

And so we continue to witness CEOs from the likes of BP, Toyota and a parade of financial institutions take an evasive or no-comment approach, instead of being as transparent and responsive as they need to be in a crisis. It takes plenty of practice to think carefully, act quickly and communicate clearly—all with the empathy, care and urgency that a delicate situation demands.

These skills are fundamental to great business leadership. They should be emphasized, not just for MBA candidates but for undergrads as well. And if you don’t have crisis communications know-how in your company, consider seeking a strategic partner who can help you prepare.

Toyota’s Classic ‘No Comment’ Conundrum

Blunt piece in AdAge this week hammering Toyota’s handling of its massive case of recallitis.

James Treece’s argument boils down to one we’ve made more than a few times on this blog: “no comment” is a terrible crisis communications strategy.

Akio Toyoda’s congressional testimony last week was a decent attempt at a new era of straight talk and openness from the historically secretive multinational that his grandfather founded.

But it'll take more than one contrite appearance on Capitol Hill to overcome what we now know were decades of denial about major safety issues with the company's products--problems that the company knew of for quite some time, yet chose to remain silent about.

Toyoda left many questions unanswered, and the company still has lots of work to do in terms of transparency and responsiveness if it hopes to regain the reputation for reliability and quality that shot it to the top of the heap.

Lessons from a ‘Best Buy’ That Wasn’t

Come on Best Buy, you can do better than this. Your little $10 LCD TV mistake could have been parlayed into some goodwill publicity—if you bothered to follow through.

Instead, we get what amounted, more or less, to a classic “no comment.” In fairness to Best Buy, the retailer is refunding everyone who ordered the sets at that eye-popping price on bestbuy.com. And the official word from the company was oops, sorry for the misunderstanding.

But that was followed by a gentle reassertion of the company’s right to change pricing and availability of products at any time. And beyond that, Best Buy is mum.

Why? Seems to us like the perfect opportunity to turn a mix-up into a make-up with customers. Turning an unhappy customer into a satisfied one is one of the quickest routes to positive word of mouth (and great PR). For Best Buy, it could have been as simple as sending all the aggrieved a little Best Buy gift card (or at least a decent coupon) along with their refund. Then, of course, announce loudly that you’re doing that.

Alas, that’s not happening. Meanwhile, customers are griping, news outlets are spreading the story and Best Buy is looking kind of cold and careless.

Branding is back, baby!

For many B2B companies, the whole idea of brand building has taken a back seat in today’s economy. Everybody’s cautious with their investments, limiting their spending to price promotions and the like.

It’s understandable, but it’s also ill-advised. Why? Because in a shrinking market, you have to aggressively protect and grow your share. And you can’t do that by focusing on your products and services alone. Doing so only plays into the trap of commoditization.

We think it’s time to give brand building a little love again. Good thing we have this powerful tool nowadays that can help you build your brand directly and cost-effectively with customers. Maybe you’ve heard of it. It’s called social media.

Check out this decent primer in The New York Times on managing your reputation online (or, in other words, building brand equity).

Opportunities abound to connect with customers, solve their problems, anticipate new ones and cultivate trust every step of the way—exactly the vibe customers are seeking in these uncertain times. Social media is an excellent path to reinforce your brand and build the confidence your customers need to have for you to win their business. Yes, branding is back, baby! It’s online, it’s every day, and it’s here to stay.

For Banks, a Crisis Communications Fail

An article in AdAge offers a reminder why staying quiet about a crisis is bad communications strategy.

The piece cites a new PR survey showing that only 8 % of consumers have full confidence in the nation’s financial service companies. AdAge attributes the low approval rating, in part, to the banks’ failure to communicate clearly with their customers in this time of trouble.

We say it all the time, and we’ll say it again: You’ve got to tell your story the way you want it to be told. If you don’t, it may be told by someone else—and they won’t be nearly as nice about it. In the banks’ case, the barrage of bad publicity in the 24-hour news cycle is telling their story.

So once again, we’re seeing how a “no comment” attitude only digs a deeper hole for businesses stuck in a bad situation.

Factory shooting underscores importance of solid crisis communications planning

Yesterday’s tragic shooting spree at the Atlantis Plastics plant in Henderson, Ky., serves as an unfortunate reminder that disaster can strike at any time.

Fires, explosions, natural disasters, chemical spills, manufacturing accidents, labor strikes—every crisis threatens a company’s stability, its reputation and, in the worst case, its survivability.

That’s why, when a crisis occurs, your response must be swift and effective. And the secret to taking quick control of a crisis? A sound crisis communications plan. It’s a strategic roadmap to get you through a situation, while minimizing potential damage.

Here’s a primer for developing your plan.

Getting started

Set your crisis management team. Include the CEO, department managers, public relations team members, legal representatives, security and human resources personnel.

Outline your protocol. Work with your internal or external communications team. Get the necessary resources aligned. Work through the possible contingencies and conduct a crisis audit.

Determine your communications process. Identify your audiences and how you’ll communicate with them—face-to-face, telephone, e-mail, etc. Prompt, proactive communication is essential.

Anticipate common questions. Prepare responses that can then be modified based on the nature of the crisis.

In the moment of crisis

Never provide a "no comment" response. Such evasion is often interpreted as though you have something to hide.

If you’re still gathering information, say so. Share what you know and pledge to provide additional information as soon as possible. You’ll show that you’re actively working to stabilize the situation.

Never lie or speculate. Stick to the facts that you can speak to with certainty.

Exude calm. Your demeanor can directly affect public perception of the situation and your company overall.

And here’s the best tip we can give you, by far: If you don’t already have a crisis management plan, start developing it right now.