11.01.08
ISSN:1528-3836
© 2008 Jonathan Bernstein
Circulation: 4,500+
Estimated Readership: 17,000+

• Just a Thought : About Good and Evil

• Crisis Manager University : How to Prevent Situations From Becoming Crises

• Crisis Manager Business Announcements : (Blatant Self-promotion)

• Plain English Disclosure

• About The Editor & Publisher

• Links

• Legal Disclaimer

• Other Important Stuff : Contact, Subscription, Reproduction, etc.

JUST A THOUGHT

The evil that men do lives after them; the good is oft interred with their bones — and on the Internet.

With apologies to William Shakespeare, by Jonathan Bernstein

CRISIS MANAGER UNIVERSITY

Editor's Note: You'd Better Have a Hose if You Want to Put Out the Fire made my "must read" list when first published, and now Rene brings us Communicating in a Crisis: A Guide for Management. On the jacket cover of the book, I say that "..if more people read this, they'd have less crisis communicating to do!" Rene has graciously given me permission to provide this exclusive excerpt from his latest tome to Crisis Manager readers.

How to Prevent Situations From Becoming Crises
By Rene A. Henry

There are 10 steps a company, organization or institution needs to take or have in place to hopefully prevent a crisis, quickly close the crisis, or to meet the crisis as a challenge and create a positive opportunity.

1. Anticipate and Have A Plan

This will be discussed in more detail in the Chapter 2. Anticipate every possible crisis and "what if ..." every possible incident and scenario. Organize a crisis management and communications team, and then create a detailed plan to communicate and be in a position to control the message to the media and all publics.

2. Respond Immediately

When a crisis strikes, respond immediately. Have the spokesperson prepared and ready to go. Follow the steps outlined in the crisis communications plan and put the team into action. The first few hours are most important in establishing credibility and building public trust and believability. Do not stonewall. Be responsive to the media and inform the people who need to be kept informed, especially employees, shareholders, vendors and customers.

Eliminate "no comment" from your vocabulary. One way or the other, the media will get information, but it may be inaccurate and the sources unreliable. In a crisis, perception is stronger than reality and emotion stronger than fact. When those responsible do not communicate, the crisis still gets played out in the media and possibly even later in court.

The communications plan should "what if ..." all potential situations, and in many cases a news release can already be prepared for media distribution. For example, if a crisis team believes the company may be a target for a labor strike, a news release can be prepared, approved by all concerned and put on the shelf for future use. One former client faced a situation where the two top officers traveled frequently, and might not be reachable for a quick response to the media. Having a pre-approved news release would allow the company to quickly respond until the top executive could be reached.

If there is potential of litigation, either as a plaintiff or defendant, have detailed fact sheets and background materials prepared and ready to release to the media when needed.

Use the company's website as one of the important information vehicles and have someone assigned to keep it constantly updated.

3. Do Not Overtalk

Just the opposite of stonewalling, do not overtalk or release information without having all of the facts. Never speculate on what may or may not be happening. Be sure to analyze each situation for its newsworthiness. Some information may not warrant media attention. Former White House Press Secretary Marlin Fitzwater said: "You don't have to explain what you don't say."

You don't have to answer every question. Just because a question is asked doesn't mean you have to answer, but you should have some kind of response. In any crisis, there are questions that you simply cannot or should not answer. Hypothetical questions, proprietary questions and speculative questions should be politely turned away. The spokesperson needs to be trained and reminded that he cannot be expected to know the answer to every question asked. But never withhold information that should be disclosed.

4. Always Tell the Truth

Never lie or deceive the media or public with misinformation. Sir Winston Churchill once said: "A lie gets halfway around the world before the truth has a chance to get its pants on." It is all right to say "I don't know" if you don't have the facts. The media and public will respect you for that, and know that you are telling the truth. Never speculate. Colin Powell said it is best to get facts out as soon as possible, even when new facts contradict the old. "Untidy truth is better than smooth lies that unravel in the end anyway," he wrote in his book, "My American Journey."

According to a survey conducted by the Porter/Novelli public relations firm, 95 percent of people are more offended about a company lying about the crisis than the crisis itself. Even worse, 57 percent polled believe that companies either withhold negative information or lie.

However, if you are in a crisis in a political campaign in the State of Washington, the state's Supreme Court, in a 5-4 decision, declared that lying is not unconstitutional, or, put another way, it's just fine.

5. Accept Responsibility

If there is a problem, admit it. Be accountable and accept responsibility. There is an old Belizean Creole proverb, bad ting neba gat owner, which literally means bad things never have owners. Everybody disclaims responsibility when things go wrong.

Today almost no one wants to be responsible or held accountable for their actions. Fingers are always pointed at someone else. Real life situations all too often mirror a cartoon by Bill Kean, creator of the comic strip The Family Circus. In one cartoon, all of the balloons have the children saying "not me" in response to a "who is responsible?" question.

Today's leaders in government and business and even the media have fueled a rising tide of public distrust and skepticism. The sooner a company accepts responsibility for its actions, the stronger is its credibility with the general public and the media. In any crisis situation, the faster a company, organization, institution or individual tells a public it is responsible and accountable, the faster it will be able to manage communications and have its message believed or even better, closure on the incident and crisis.

Stanley O'Neal, CEO of Merrill Lynch, had the conviction to say he made a mistake because of the firm's involvement in the subprime mortgage game. "Some errors of judgment were made," O'Neal said as Merrill Lynch posted its first quarterly loss in six years and wrote down $7.9 billion on subprime securities, resulting in a $2.3 billion net loss and a reduced credit rating for the company. He accepted responsibility and admitted it, but also lost his job.

In October 2004, Citigroup had banking problems in Japan because of ethical violations and lax controls that may have led to money laundering. Charles Prince, chairman and CEO, flew to Tokyo and with Douglas Peterson, CEO of Citibank Japan, confronted what happened by publicly apologizing and making amends, Japanese-style. A photograph of the two men bowing deeply, bent forward from the waist and heads lowered, was transmitted around the world. Prince then fired three top executive responsible for the violations. Just three years later, Prince resigned as head of Citigroup in the wake of a $6.5 billion third quarter write-down and an estimated additional $8 to $11 billion in losses because of sharp declines in the value of subprime-related securities.

In research done by IR Magazine, some 5,000 Wall Street security analysts surveyed rated Citigroup as the worst communicator and JPMorgan Chase as the best during the subprime mortgage crisis. Analysts said Citigroup was the least effective in disclosing its exposure. "There was a feeling that they didn't know the full extent or were attempting to soft-pedal it," said Neil Stewart, the magazine's executive editor.

Ronald J. Alsop, staff reporter for The Wall Street Journal, believes doing the right thing, no matter how painful, is especially important in a crisis. In his book, The 18 Immutable Laws of Corporate Reputation, he cites how Johnson & Johnson did the right and trustworthy thing in 1982 in responding to Tylenol poisoning with its product recall. He compares this with how Roman Catholic bishops covered up incidents of sexual abuse by priests and put the church's reputation above the interests of its parishioners. "Cover-ups almost never work. Why? Because today almost anyone can disseminate information quickly and widely on the Internet, where it can be seen by millions of people," writes Alsop. "In addition, the Internet is a key source of story ideas for many mainstream news reporters and editors."

A company's liability issues may need to be resolved with the attorneys involved but winning in the court of public opinion, in the long run, is far more important that winning a decision in court. Never go into a denial mode. The media and the public will believe a spokesperson who accepts responsibility, and this is one way to build public trust.

6. Select the Right Spokesperson

Determine in advance who will speak for the company in the event of a crisis. More than likely there will be several individuals who are the only ones authorized to speak for the organization during a crisis. Have one individual designated as the primary spokesperson and another as the backup. Additionally the company should have individuals who can serve as technical experts or advisors, such as a financial expert, engineer, or someone who can speak about a highly technical subject.

Too often the wrong person speaks publicly, and others, because of an "ego syndrome" just want to get in front of a camera. The names of those who are authorized to speak needs to be communicated to all so they understand that requests for comment by the media or anyone else must be directed to an authorized spokesperson.

Always remember that the media will seek out anyone for a soundbite, so there must be a policy in the crisis plan and everyone made aware of it regarding the official voice of the company or institution.

It is important that the person be believable. This doesn't mean being slick or polished. He must be someone the public will trust to tell the truth. All spokespersons must be professionally trained and completely prepared for the media. If time permits, there should be a rehearsal before any media interviews to review all anticipated questions.

"The CEO should be one of the spokespersons, but not necessarily the primary spokesperson," says Jonathan Bernstein, of Bernstein Crisis Management, a national consultancy on crisis management headquartered in Southern California. "The fact is that some chief executives are brilliant business people, but not very effective in-person communicators."

Public opinion has shown that lawyers are not the most trusted of spokespersons and especially outside consulting attorneys. It is best to get the CEO or one of the most senior executives in front of the media as soon as possible.

7. Stop Rumors and Correct Misinformation

A no-response is almost the same as implied consent. When something incorrect is printed or said, immediate action should be taken to point out the error and ask for a correction. Otherwise, the media involved will only assume that what was written or said is correct. One publication could print a damaging story with incorrect information. Another publication could assume the information was correct and refer to it in a followup article. When repeated over and over, fiction and errors become fact.

In a matter of seconds, the Internet can spread misinformation or rumors around the world. This is why it is so important to have open lines of communication with all employees, customers, vendors, shareholders and friends. You want to control your message as best as you possibly can but you can't control what others say. The media will seek out anyone with any connection to the company or organization for information and a quote. Be sure that all authorized spokespersons have correct and current information.

Just as there are clipping services that read newspapers and magazines for any mention of a company or organization, and services that monitor radio and television programs, there are monitoring services that can be retained that regularly check the Internet for information. Adversaries, disgruntled employees and former employees, and whistleblowers can leak confidential information, misinformation or outright lies that are republished on Internet websites, message boards or blogs, and eventually find their way into mainstream media.

Ronald J. Alsop believes companies must protect their corporate reputation by refuting any harmful rumor that is picking up momentum on the Internet. "Ignoring the spread of a detrimental rumor is dangerous in the extreme," he writes. "The correct strategic response is to neutralize the attack with a factual response." He cites Coca-Cola as one company which is a frequent target of many rumors, and which publishes denials and refutations on its own website, while others, including Nike, develop a separate websites devoted exclusively to refuting rumors.

The electronic age has created entirely new problems for crisis managers and attorneys. "Thanks to modern technology, all a person needs to extract and use misinformation from a false, archived article is a PC, Google, and a disposition to work someone else's old material into an article on the theory that if Big Media reported it five years ago without repercussions, it must be true," says John J. Walsh, senior counsel of Carter Ledyard and Milburn, New York. In most jurisdictions, after one year, statutes of limitation expire on libel and defamation claims against a publication.

Walsh notes that a media crisis based on an article or broadcast can occur without warning, and often can be precipitated by a whistleblower and a quick decision by the media to go public. He says the injured party can ask for a correction, a retraction or an apology. A correction by the publisher tells the public that a mistake was made and provides the correct facts. A retraction advises the public that specific statements are withdrawn, usually accompanied by an apology or at least a statement of regret.

I consider Walsh one of the finest First Amendment attorneys in the country today, and if a company, organization, institution or individual is facing a crisis, I would want him involved at the first hint of a negative media story. Working in concert with public relations counsel, I would have him visibly lead the response effort directed at media editors and senior management. A call or letter from Walsh often can get a proposed story dropped or substantially and favorably altered.

Sometimes the information you release could be wrong, and this must be corrected. During the Persian Gulf Desert Storm operation, Colin Powell had an argument with General Norman Schwarzkopf regarding television comments that four Scud missile sites had been taken out when, in fact, air reconnaissance photos showed that the targets were fuel trucks. A CNN camera crew shot film of the destroyed trucks and contradicted Schwarzkopf. Powell told his general to admit the error. "Protect your credibility, it's a precious asset," said Powell. "It is better to admit a mistake than be caught in one."

8. Show Compassion and Remorse

It is not against the law to show compassion, sympathy, passion and remorse for victims and their families and friends. This often is when the public relations counsel and lawyers disagree. The public relations professional wants to win in the court of public opinion, and the lawyers are concerned about potential liability and losing in a court of law.

"Expressing sorrow or concern publicly in the wake of a tragic event is understandable. It is also critical," says Jeff Braun, founder and president of Crucial Communications Group, LLC, a Houston, Texas-based firm specializing in crisis and emergency response communications training and support. "Empathy or caring is a key component of credibility. And establishing credibility must be the overriding goal of any communication. If your audience does not see you as a credible source, you won't get your message across or be able to address people's concerns. Empathy and caring accounts for half of a person's credibility and is assessed in the first 30 seconds. You have to convince the listener that you are credible, believable, trustworthy, and even likeable."

Compare what Braun recommends with how San Diego State University responded when a student opened fire in a classroom and shot and killed three faculty members who didn't agree with his thesis. When the university refused to comment, the media interviewed a maintenance worker and two people who had been in the classroom when the shooting began. The university missed an opportunity not only to tell its story, but to express remorse and show compassion for the loss of three members of its family as well as their families and friends.

9. Build Your Reputation Before A Crisis

Never take any chance of losing your credibility with the media and public. That is why it is so very important to establish your reputation before a crisis and have credibility in the bank. Build relationships with the media so they know you are telling the truth in the face of challenges from adversaries.

According to Harris Interactive, a company's reputation is often overlooked as a component of business growth. In today's market, consumer trust is at an all-time low. Following the series of high-profile scandals that have irreversibly changed the corporate landscape, Hill & Knowlton believes the need to establish trust and confidence is more recognized than ever.

The degree to which a company will get the public to believe its story will depend on the company's reputation before a crisis. Magazines will publish lists of "most admired companies" or "best companies to work for." But this doesn't always translate into winning public trust if the public relations department and the people who are in contact with the media have not established their reputation and credibility with the media.

But Americans today also are less trusting of the news media. Of 1,100 individuals surveyed, 42 percent responded that the media are not credible in general, and that television news, newspapers and magazines all were less credible than five years earlier. Only eight percent considered the government, and two percent considered political parties, to be believable sources of information.

Scores of books have been written and are available on the subject of corporate reputation.

10. Listen

During a crisis, it is important to listen to what the public and adversaries are saying and to be sure that they, and the media, understand what you are saying. Listening is essential to communicating, negotiating, resolving conflicts and even avoiding crises. You have to be an active listener to anticipate the actions of others. However, listening is hard work. For some people, it is very difficult, but it can be learned. Listening is truly an admirable and enviable art for those who listen well.

From our earliest development years, we all are taught how to speak, read and write. No one is there to teach us how to listen. Stephen R. Covey ranks listening as one of his 7 Habits of Highly Effective People. "Seek first to understand, then to be understood," he says. "Most people don't listen with the intent to understand; they listen with the intent to reply. They're either speaking or preparing to speak."

"The ability to listen to others is essential," says Harvard University's Dr. Lawrence Susskind, conflict resolution guru and author of Dealing With an Angry Public. "When high-ranking spokespersons or executives are being assaulted by those who are fearful, anxious, and angry, they must put aside their own feelings and defensiveness so they can listen carefully to what people have to say.

"Good leaders, effective in times of crisis, must be as keyed into their audience's interests as their own," Susskind adds. "You will not be able to acknowledge the concerns of others if you cannot hear them. Listening must be active. This means reiterating what has been heard to be sure the message has been received."

In any conflict or negotiation, you must be an active listener. Focus on the speaker and your adversaries, take notes, ask questions, and make eye contact so they know you are listening. Communication must be two ways. Communicate your expectations clearly, accurately, timely and honestly. According to Covey, words represent only 10 percent of communication. The sounds we make and our inflection represents 30 percent, and our body language another 60 percent.

Remember that the less you say, the more someone else will be able to remember what you say. It is just as important for someone listening to you to fully understand your message as it is for you to understand what they are saying. Saul Alinsky, who wrote the bible on nonviolent disruption, Rules for Radicals, says it best: "If you try to get your ideas across to others without paying attention to what they have to say, you can forget about the whole thing."

Communicating in a Crisis is available for $34.95 from Amazon.com or your favorite local bookseller.

CRISIS MANAGER BUSINESS ANNOUNCEMENTS

Keeping the Wolves at Bay 3.0 Reviewed

"Keeping the Wolves at Bay" is much more than another media training guide - it is perhaps one of the most concise, insightful, useful and savvy guides to strategic thinking about reputation issues available.

Gerald Baron
Founder & CEO of PIER System and host of Crisisblogger.com

"It's like a Swiss Army knife -- lots of cool tools in a compact package. In case of emergency, grab this."

Steven R. Van Hook, PhD
Publisher, About Public Relations

In addition to individual and business usage, the manual is now being required as a textbook at Seton Hall University, Grand Canyon University, and Singapore Management University, amongst others. It is available in both PDF and hard copy formats at www.thecrisismanager.com, with reseller arrangements available for collegiate bookstores.

Jonathan Bernstein also offers on-site media training worldwide, using this manual as the basis for training. Write to jonathan@bernsteincrisismanagement.com.

In a one-hour teleseminar recorded in December 2007, search engine optimization expert Diana Huff interviewed Jonathan Bernstein, a pathfinder and innovator in the field of Internet-centered crisis management, who described how a wide range of companies have been damaged by the Internet's virtual terrorists, and how some companies have been responding effectively.

In this one-hour session, you'll learn how to conduct your own Internet vulnerability audit; develop strategies for identifying your foes -- activists, disgruntled employees, or unhappy customers -- and tracking Internet chatter; build the case within your organization for ensuring someone is monitoring the blogosphere, news, and Internet forums every day; plan for an Internet crisis and, when one hits, assess the situation to determine an appropriate response; develop the action steps you can take to neutralize attacks, including starting your own blog and developing collateral such as brochures, video, podcasts, and Web links to other reputable and informative sites; and effectively use search engine optimization tactics -- not just because you want customers to find your products -- but so you can beat these guys at their own game!

Available at www.thecrisismanager.com, as are our other titles.

Disaster Prep 101

Bernstein Crisis Management is pleased to present one of the most comprehensive and user-friendly family preparedness texts available today. "Disaster Prep 101." by Paul Purcell, goes above and beyond the simplistic "72-hour kit" concept and provides simple, yet detailed educational material that will drastically improve the ability of any family to respond to all manner of disasters or emergencies. This preparedness package contains over 400 pages of well-organized, original preparedness material written in an easy-to-understand, non-panic format; 80 pages of family data forms and worksheets (many of which are also useful to the employer); and a 2-CD set containing two interactive and searchable links collections for additional educational sources; all the family data forms and worksheets in softcopy format; and a complete emergency reference library of over 450 additional books and training manuals! US$59.95. Available here.

PLAIN ENGLISH DISCLOSURE

Bernstein Crisis Management, Inc. has formal or informal co-promotional and mutually beneficial business associations with a number of the services we mention periodically in this newsletter. No, we can't go into details because that's confidential, proprietary, etc. But our relationship is NOT "arm's distance" and you should know that, since we regularly write about these services as we use them for crisis and issues management or other purposes. That said, you should also know that Bernstein Crisis Management sought the relationships because its staff is convinced that these services are the best of their kind for Bernstein Crisis Management's needs and those of its clients. If you have any questions about these relationships, please contact Jonathan Bernstein, (626) 825-3838.

ABOUT THE EDITOR & PUBLISHER

Jonathan Bernstein is president of Bernstein Crisis Management, Inc., www.bernsteincrisismanagement.com, a national crisis management public relations agency providing 24/7 access to crisis response professionals. The agency engages in the full spectrum of crisis management services: crisis prevention, response, planning & training. He has been in the public relations field since 1982, following five-year stints in both military intelligence and investigative reporting. Write to jonathan@bernsteincrisismanagement.com.

GUEST AUTHORS

GUEST AUTHORS are very welcome to submit material for "Crisis Manager." There is no fee paid, but most guest authors have reported receiving business inquiries as a result of appearing in this publication. Case histories, experience-based lessons, commentary on current news events and editorial opinion are all eligible for consideration. Submission is not a guarantee of acceptance.

LINKS

When I find a site that I think will be useful to my readers or site visitors, I put it on our Links page. If you have a site that would be of specific use to crisis managers and want to discuss a link exchange or other cooperative effort, please write to me, jonathan@bernsteincrisismanagement.com.

LEGAL DISCLAIMER

All information contained herein is obtained by Jonathan Bernstein from sources believed by Jonathan Bernstein to be accurate and reliable.

Because of the possibility of human and mechanical error as well as other factors, neither Jonathan Bernstein nor Bernstein Crisis Management is responsible for any errors or omissions. All information is provided "as is" without warranty of any kind. Bernstein Crisis Management and Jonathan Bernstein make no representations and disclaim all express, implied, and statutory warranties of any kind to the user and/or any third party including, without limitation, warranties as to accuracy, timeliness, completeness, merchantability, or fitness for any particular purpose.

Unless due to willful tortuous misconduct or gross negligence, Jonathan Bernstein and Bernstein Crisis Management shall have no liability in tort, contract, or otherwise (and as permitted by law, product liability), to the user and/or any third party.

Under no circumstance shall Bernstein Crisis Management or Jonathan Bernstein be liable to the user and/or any third party for any lost profits or lost opportunity, indirect, special, consequential, incidental, or punitive damages whatsoever, even if Bernstein Crisis Management or Jonathan Bernstein has been advised of the possibility of such damages.

A service of this newsletter is to provide news summaries and/or snippets to readers. In such instances articles and/or snippets will be reprinted as they are received from the originating party or as they are displayed on the originating website or in the original article. As we do not write the news, we merely point readers to it, under no circumstance shall Bernstein Crisis Management or Jonathan Bernstein be liable to the user and/or any third party for any lost profits or lost opportunity, indirect, special, consequential, incidental, or punitive damages whatsoever due to the distribution of said news articles or snippets that lead readers to a full article on a news service's website, even if Bernstein Crisis Management or Jonathan Bernstein has been advised of the possibility of such damages. Authors of the original news story and their publications shall be exclusively held liable. Any corrections to news stories are not mandatory and shall be printed at the discretion of the list moderator after evaluation on a case-by-case basis.

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Articles in "Crisis Manager" were, unless otherwise noted, written and copyrighted by Jonathan Bernstein. Permission to reprint will often be granted for no charge. Write to jonathan@bernsteincrisismanagement.com.