Crisis Communication Reflection
Find a current event, within the last year, that involved a crisis or scandal. Give a brief synopsis of the company and the issue, and then answer the questions below:
- What was the company’s communication approach to the crisis?
- Do you feel the company’s communication approach was effective? Why or why not?
- What would you have done the same and what would you have done differently?
Week 7 Discussion Starter Post
COLLAPSE
Class:
This week we will be discussing crisis management communications. Any business, large or small, at some time will have to respond to a crisis that has affected the organization. You will learn this week that the key is being prepared.
A few tips for this week’s Discussion Post:
1. Find a crisis that occurred in the last few years (Examples: Boeing, Starbucks, United Airlines, Equifax, Facebook, etc.). This can be about a company in the news or a crisis within your own company.
2. Describe the crisis you are selecting with a short synopsis in your own words about what occurred. Describe the company and the issue that affected them. Is it a public company, private, your company, etc.?
Besides the reading and video material for this week, here are two additional resources for you as you consider crisis management discussion post:
“13 Golden Rules of PR Crisis Management”
https://www.forbes.com/sites/forbesagencycouncil/2017/06/20/13-golden-rules-of-pr-crisis-management/
“Ted Talk: The Secret to Crisis Management in the 21st Century”
3. Make sure to consider these questions in your post:
- What was the company’s communication approach to the crisis?
- Did they use social media?
- Who in the firm responded?
- How quick were they to respond?
- Did they follow up with new information?
- Do you feel the company’s communication approach was effective? Why or why not?
- Do you think the response was well-thought-out and planned, or just reflexive?
- Did the story change? For better or worse?
- Was it effective with the public (audience) or did it antagonize the situation?
- Did they appear transparent and candid?
- Did the public appreciate the response?
- What would you have done the same?
- What would you have done differently?
Put yourself into the position of the company’s spokesperson and make sure you never take things from “bad to worse”. Explain how you will anticipate, plan, and put into effect your crisis management plan.
As always, please include your references and in-text citations.
I look forward to you incorporating all the material from this week’s readings and videos.
Have a great week everyone.
1 Response
RE: Week 7 DiscussionCOLLAPSE
Hello Professor Paulson and Classmates,
Fundamentally, GE follows the principles mentioned in the “Crisis Management” chapter of The Real-Life MBA (Welch, 1). We often refer to ourselves as having a bullseye on our monogram (the GE Meatball). We know that any crisis will be bigger and deeper, secrets (true and false) will be told, how we handle it will be portrayed as bad, internal changes will be one of several results, and we will survive. For the 128 years GE has been in existence, it has been known as an easy target with deep pockets. Our PR department is viewed as an essential part of our business and remains busy throughout the year to try to be proactive and get ahead of stories as mentioned by Forbes in the 13 Golden Rules (Forbes, 2).
GE was slow to get into social media but once it decided to do so, the process in place has been very focused on preparing for crisis and responsiveness. Our main social media presence exists on Twitter, LinkedIn, Facebook, and Instagram.
The crisis situation in this case is based on the rumors surrounding our X-ray team being relocated to China. The negative news described our $1B business move from the Wisconsin area to China, taking jobs away from the United States in order to take advantage of cheaper labor. For background purposes, Wisconsin is the first headquarters location for this business unit. There are approximately 6000 employees in the southeast Wisconsin area and another 4000 GE retirees. Moving from Wisconsin anywhere was big news in that region. Unfortunately, it didn’t stop there. The story spread fiercely across the nation and examples of other business units moving jobs and work outside of the United States became the negative theme. This led to the accusation that GE doesn’t pay taxes and so on.
Our PR department answered each accusation immediately and prepped the senior leadership for any upcoming press opportunities. Internally, communications were sent to our email addresses as well as our intranet site with facts and directions not to speak with any press. The PR lead name and contact information were shared for any and all inquiries. This was completed at every business unit and our GE corporate intranet site as well.
Social Media was used via press releases and Twitter links to press releases in less than 24 hours. There wasn’t as much activity on LinkedIn, and Facebook and Instagram were not deemed appropriate.
The truth was, only four employees were moved from the Wisconsin area. GE has grown its non-US presence over the past two decades unapologetically. While headquartered in the US, the expectation is that non-US presence will continue to rise and deliver over 50% of GE’s total revenues. GE, like many other corporations, benefits in tax breaks, this is publicly known and documented. Some years, more is paid in taxes; some years, less is paid.
The follow up was not very consistent but another crisis took the headlines away from this one. The accusations regarding tax payments is often mentioned. Overall, the explanation regarding the roles being moved seemed to satisfy the fury in Wisconsin, but it wasn’t the last time the US press provided backlash on the globalization efforts of GE. It was effective in that the answer pointed out the actual numbers which were so low; it quieted the noise. The response was more reflexive but based upon a well-planned PR process for these types of incidents.
The only change to the story is more employees have been hired in Wisconsin and the X-Ray team continues to grow. Recently, articles and social media highlighted some new product introductions from this well-developed team and the challenges of keeping up with the orders. That’s definitely a change for the better! For this particular team, the public sees the positive and appreciates hearing about the Wisconsin led team. We hear this from our healthcare professionals and we see it in our orders.
Once the negative story was published by the press, the candor was required. Providing simple facts was a win for the PR department. Equipping the employees across all business units is the best practice for crisis management that should remain the same. If GE had publicized and made this a positive story, transparency would receive higher points.
By creating a positive and proactive story around the move, this could have been less impactful initially. The jobs held in the Wisconsin area is always a very touchy point, especially in the Midwest. Eventually, because the individuals were US citizens, their ex-patriot contracts returned them to the US after two years. This should have been part of the story and follow up on the transition, culture, learnings, and return would have made the story more interesting and inclusive.
The root cause of this particular crisis was a lack of communication to the PR department regarding the upcoming move of the four individuals. In this PR position, it is essential that HR and the respective PR team are in lockstep to prepare, plan, and put into effect a strong crisis management plan. It was no secret that the local community would be upset about the movement; however, the leader and the HR team must consider PR a partner. Building a partnership with the HR lead would be my first step. Creating a positive theme or story around this scenario would have been the next step. By creating a team to assess the situation, get ahead of the media, and prepare responses, communications (internal and external) and announcements would be included in my crisis management plan (Forbes, 2). Additionally, the ongoing story is key. This could have been a “filler” story as the four individuals progressed over the 2-year period—an opportunity to spread the good things we bring to life at GE.
References
- Welch, J & S. The Real-Life MBA. New York. HarperCollins Publishers. 2015
- Forbes Agency Council. “13 Golden Rules of PR Crisis Management”. Forbes. 2017. https://www.forbes.com/sites/forbesagencycouncil/2017/06/20/13-golden-rules-of-pr-crisis-management/
JWI505: Business Communications and Executive Presence
Lecture Notes
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copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.
JWI 505 – Lecture Notes (1194) Page 1 of 4
WEEK 7: CRISIS COMMUNICATION
Communicating in a Crisis
In 1993, somebody in Washington state claimed to have found a syringe in a can of Diet Pepsi. The next
week, there were 50 more reports of product tampering involving Pepsi cans… It was all a hoax!
According to Kim Bhasin, writing for Business Insider, PepsiCo’s management responded brilliantly to the
crisis (which could have endangered, even destroyed, the brand in the United States and around the world).
“PepsiCo didn’t make vague statements telling the public to simply trust it,” Bhasin writes. Instead, PepsiCo
responded aggressively in its own defense. It “produced four videos throughout the crisis, such as a
comprehensive report on its soda canning process. The most compelling was a surveillance tape of a
woman in a Colorado store putting a syringe into a can of Diet Pepsi behind the store clerk’s back.”
Perhaps most importantly, PepsiCo’s North American CEO, Craig Weatherup, took the company’s message
directly to the news. He appeared on multiple news stations and on Nightline, armed with visual evidence of
the faked product tampering. The FDA backed PepsiCo, and the product tampering scandal was quickly
squashed. PepsiCo’s sales, which had declined by two percent, recovered in just a month.
Can you imagine addressing a board of directors, or the employees of your company, in the moments after
you’ve been told that someone found a dirty hypodermic needle in your world-famous beverage? That is the
essence of organizational crisis communication: taking control during a serious problem, relating information
during a crisis or in the wake of a tragedy, and steering an organization back on course after something that
could threaten the entire company has gone awry.
Thankfully, most of us will never have to manage an organizational crisis situation. If you do, you will
probably encounter only one or two of these major issues over the course of your career. All good leaders,
however, have at least one or two workplace crises in a given year. If you are doing what it takes to win and
grow, it is inevitable that you will encounter these situations. We’re talking about crises like:
• Mistakenly selecting Reply All when your comments are not intended for an entire group
• Filling a non-diesel company car with diesel
• Circulating a report through the whole company that has incorrect information
• Mistakenly sending an internal pricing document to a vendor or customer
• Sending a proposal to a customer with another customer’s name in it
• Witnessing an employee get seriously injured or even killed on the job
• Watching an employee be arrested at work
• Managing the aftermath of a facility fire
JWI 505: Business Communications and Executive Presence
Lecture Notes
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.
JWI 505 – Lecture Notes (1194) Page 2 of 4
None of these issues threatens the long-term health of the entire organization, but they are still serious.
When faced with a crisis, you may be tempted to take one of two actions based on an emotional fear
response that triggers the fight or flight impulse:
1. You may want to fight.
We have all seen leaders who gave in to this impulse. Maybe they immediately denied any
wrongdoing, loudly denounced their accusers, and played strong defense to shut down the negative
inputs. There are many reasons this may not be the most effective response. Passion is important in
leadership, but you don’t want to have to retract a hasty statement. You also don’t want to add fuel
to the fire through unfounded claims or emotional outbursts.
2. You may want to take flight, or run away from the problem.
Booking meetings all day so you are unavailable for comment, visiting a remote location, or
otherwise avoiding a confrontation is not how an effective leader manages a crisis. This is
avoidance and nothing more. The problem will still be there when you finally get around to
confronting it … and it may have grown much worse while you ignored or avoided it.
Crisis communication is, at its core, very similar to any other important business communication. All the best
practices of clear and consistent messaging, relentless repetition, and listening while accepting feedback are
vital to successful crisis communication with your relevant audiences and stakeholders. Communication
within the organization and among stakeholder groups, to ensure shared understanding and alignment of
efforts, is essential. An effective message strategy is especially important when a crisis poses a threat to
your reputation, your career, or your company.
Step-by-Step: Communicating in a Crisis
Speed is critical in all crisis situations. Do not let the situation get ahead of you. When presented with a
crisis, proceed according to these general guidelines:
Assume the worst
You must prepare for the worst-case scenario. This means assuming the situation is not contained
and could impact the organization, your colleagues, and your clients in the worst possible way. By
planning for the worst, you stay ahead of the situation.
Understand that there are no secrets
You cannot afford to assume you can hide the crisis. Everyone will find out everything eventually.
JWI 505: Business Communications and Executive Presence
Lecture Notes
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.
JWI 505 – Lecture Notes (1194) Page 3 of 4
Communicate, communicate, communicate
Come clean, quickly and honestly, and communicate what has happened with integrity and honesty.
Apologize if necessary and offer to make the issue right. Be transparent and share all information.
Construct your key messages carefully and, if a crisis is prolonged, be prepared to communicate
regularly throughout.
In every crisis, then, to communicate effectively, you must:
• Understand the problem
• Own the problem
• Offer genuine regret
• Offer solutions that demonstrate your employees and your clients come first
Always be honest about what you do not know when communicating in a crisis. You can’t make something
up, and you can’t afford to say something incorrect that you will have to retract later. Never allow your
shame, fear, or worry to overshadow your empathy for the audience.
You Will Be Judged During and After a Crisis
Understand that how you handle a crisis will always be judged by both your audience and by those external
to the situation. Take, for example, the infamous case in which the pizza company DiGiorno misused a
Twitter hashtag related to domestic violence. The hashtag was #WhyIStayed. It came about in reaction to
NFL player Ray Rice’s much-publicized domestic violence issues with his wife, Janay. Whoever was in
charge of DiGiorno’s Twitter account used the hashtag to write, “#WhyIStayed: You Had Pizza.”
Reaction to this critical gaffe was vehement. The mishap made national news. DiGiorno was made to look
either stupid or insensitive. To their credit, however, they immediately deleted the tweet and explained how
they made a mistake. Their exact Twitter statement read, “A million apologies. Did not read what the
hashtag was about before posting.”
This reaction is a good illustration of quickly and honestly getting ahead of a crisis situation. DiGiorno did not
claim to have been hacked, did not make weasel-word laden statements filled with bland apologies, and did
not blame the employee who made the tweet. They simply and honestly explained that they hadn’t bothered
to check. Many Twitter users have made this mistake and could easily relate to it.
Because how you handle a crisis will always be judged, however, there were those who were not impressed.
Some Twitter users accepted the apology, while others called it too little too late. But the end result was that
JWI 505: Business Communications and Executive Presence
Lecture Notes
© Strayer University. All Rights Reserved. This document contains Strayer University confidential and proprietary information and may not be
copied, further distributed, or otherwise disclosed, in whole or in part, without the expressed written permission of Strayer University.
JWI 505 – Lecture Notes (1194) Page 4 of 4
DiGiorno, through fast, honest, direct communication, was able to put the problem behind them relatively
quickly.
How you handle a crisis will never satisfy everyone. You will receive positive and negative feedback during
and after a crisis. What matters is how you and the organization weather the storm. If you can quickly and
honestly put the crisis behind you and resolve the issue, you have communicated effectively.
What You Can and Can’t Do in a Crisis
Throughout our discussion of business communication, we have stressed the need to build relationships.
This is the one move you cannot make in a crisis. When a crisis occurs, you will value the solid relationship
foundations you have already built on presence and integrity with those involved.
Be proactive in a crisis. Understand it, provide solutions, and focus on making sure it never happens again.
Every crisis will produce change. How you survive that change determines whether you will learn from, and
be stronger for having experienced, that crisis.
Crisis Communication Demands Your Best Self
You must be your best, most authentic, most empathetic self during a crisis. You must listen and
communicate at a time when the finances, reputation, and careers of your colleagues and stakeholders are
on the line. Candor and commitment to your values – doing what is right, quickly and honestly – are the only
appropriate responses to a crisis. This is what your stakeholders will respond to most effectively, and this is
what will allow you to weather the storm of a crisis while positioning your organization to win in the future.