Reputation Repair: How to Restore Your Image After a Crisis. Robert C. Chandler, Ph.D. Director, Nicholson School of Communication

Transcription

1 Reputation Repair: How to Restore Your Image After a Crisis Robert C. Chandler, Ph.D. Director, Nicholson School of Communication

2 About Everbridge Leader in incident notification systems Fast-growing global company with more than 1,500 clients in more than 100 countries Serve the Global 2000, healthcare systems, state and local government, federal government, military, financial services firms, and universities 100% focused on incident notification solutions that merge technology and expertise 2

3 Agenda Part 1: Presentation How to transform crisis into confidence Comparing different communication strategies What types of messages help you get back into the good graces of your constituents Part 2: Q&A 3

4 Q&A Note: slides are currently available to everyone on blog.everbridge.com Use the Q&A function to submit your questions. 4

5 Reputation Repair: How to Restore Your Image Bracing After for the a Crisis 2010 Hurricane Season Dr. Robert Chandler University of Central Florida

6 What is your reputation really worth? A valuable brand or solid reputation which took decades to fortify can be at risk in a matter of hours. Your reputation is valuable. Your reputation is vulnerable. Reputation is not an attribute of an organization; it exists in the perceptions of constituents.

7 Crisis after crisis in the media Companies can be faulted or blamed for various crises and disasters. In some cases, this threat to reputation and brand pose far greater risks than physical catastrophes. In every critical situation, image and brand management are increasingly important in the wake of billions of dollars lost due to reputation and brand erosion, as well as declining stakeholder confidence due to such scandals. 7

8 Toyota BP Japan Although the crisis for Toyota peaked during spring 2010 it started with a single, horrifying car crash in southern California in August Toyota s braking woes quickly subsided as Tony Hayward and the BP crisis captured our attention three months later. High radiation levels detected at Fukushima grounds a month after explosions. 8

9 Social media gaffes 9

10 Enron as the Hurricane Katrina of ethical misconduct disasters The cost of corporate recklessness calculated direct business/value losses related to the Enron disaster at more than $200 billion. These estimates include lost investment savings, jobs, pension losses and tax revenue. The report estimated that more than a million workers lost their jobs at the affected companies and those indirectly impacted. Further, the costs to businesses, stakeholders, and management include hundreds of millions in litigation costs; punitive and compensatory fines; tarnished brands, images, and reputations; and loss of consumer and investor confidence.

11 Enron as the Hurricane Katrina of ethical misconduct disasters In the 2 ½ years following the implosion of Enron, it is estimated that world capital markets lost between $4 and $7 trillion, believed to be attributable to the Enron ethics disaster scandal which ruined pension plans, crashed equity value, costing jobs, wiping out investments, and left an enormous hole in the US and world economy.

12 Introduction to reputation repair All too frequently there is a lack of adequate advance planning and preparedness to communicate effective messages or even understanding that various types of message options exist. Most managers have little training in what to say that best protects their image or helps repair it when it has been tarnished. 12

13 Introduction to reputation repair Communication activities involved in responding to a reputation damaging crisis include determining: Optimal timing Message or thematic priorities Specific messages to be conveyed to the public and media Specific messages to be conveyed to targeted individuals Source(s) of messages Priorities for communication Optimal delivery channels 13

14 Introduction to reputation repair Benoit (1995) has developed the Image Restoration Theory (IRT) that offers a descriptive system of examining image restoration or repair strategies employed. IRT claims that an organization s central, although not only, goal of crisis communication is restoring or protecting one s reputation. Benoit s Image Restoration Theory posits five primary macro strategies: denial, evading of responsibility, reducing the offensiveness, corrective action, and mortification. We have added silence as a six strategy. Fourteen specific message tactics fall within these six broad categories. 14

15 Introduction to reputation repair Summary Definitions of Crisis Communication Strategies and Tactics Categories Strategies Working Definition 1 Corrective Action Restore situation or prevent reoccurrence 2 Denial Simple Denial Contradiction of accusation 3 Shifting Blame Pass the guilt to another party Evading of Responsibility 4 Accident Unintentional action or effect 5 Defeasibility Didn't know about or not in control 6 Good Intentions Motives were good 7 Provocation Responding to an offensive act 15

16 Introduction to reputation repair Summary Definitions of Crisis Communication Strategies and Tactics Categories Strategies Working Definition 8 Mortification Admission and acceptance of responsibility Reducing the Offensiveness 9 Bolstering Relate positive features of the offender 10 Minimization Reduce importance of the offense 11 Differentiation Less offensive than other actions 12 Transcendence Viewed favorably in larger/different context 13 Attack Counterattack accuser 14 Compensation Reimburse victims 15 Silence No comment or ignoring accusation 16

17 Stability model Tier 1 Positively regarded, and extremely stable hierarchical ranking Tier 2 Negatively regarded, but shifting in placement of preference Tier 3 Very negatively regarded, and stable in hierarchical ranking Corrective action Compensation Mortification Bolstering Good intentions Defeasibility Differentiate Transcendence Minimization Counterattack Accident Provocation Blame shift Silence Deny 17

18 Situational model crisis communication research and theory recommendations Informing strategies for low fault, previous history, and a good reputation Diminish relevance strategies for minimum perceived responsibility Rebuild reputation with either strong responsibility or negative prior history Denial strategies for rumors Mixing denial strategies with rebuilding or diminishing erodes effectiveness 18

19 Passive ethical policies alone are inadequate Formal codes of conduct and ethics statements alone are insufficient Active not passive ethics efforts Ethical concerns must be regarded as on par with Ethical concerns must be regarded as on par with other business disruption/resumption concerns

20 Integrity continuity Integrity continuity planning is also a due diligent policy and business continuity priority Such planning must go beyond compliance issues and reactive disciplinary policies to actually manage integrity Employees who know that certain workplace Employees who know that certain workplace decisions, behaviors, and processes exist in an ethically judged context are more aware and motivated to act ethically

21 What not to do Don t take too long to respond to the crisis Do not shift the blame take/accept responsibility Actions should fulfill promises made Don t drag your feet Don t make unrealistic promises Don t lose sight of your audience and critics Don t fail to understand all facets of the situation There s no one who wants this thing over more than I do. I d like my life back. - Tony Hayward, CEO, BP "No statement shall be made containing any of the following: promises that property, ecology or anything else will be restored to normal." - BP s oil disaster plan filed with the federal government in 2009

22 What to say: Bolstering Mitigation efforts Speed up compensation efforts Take immediate corrective action Take responsibility make a public apology for the entire situation

23 Script out your communication beforehand There is no substitute for carefully preparing communication in a crisis to prevent the blunders and missteps we have seen Prepare messaging in advance Focus on a set of key messages that need to be delivered Each phase of the crisis should be well scripted and practiced Keep comments respectful to all parties involved If you expect to speak in front of a camera, practice beforehand Avoid sounding scripted You will be more comfortable when unexpected events occur

24 Don t stray from your plan Practice your crisis communication plan early and often to prevent swaying from key messaging. For example, in two distinct instances, Hayward s message has contradicted BP s oil spill disaster plan. Media statement: Promised that BP would clean up every drop of oil and restore the shoreline to its original state National TV commercial: Pledges "We will make this right.

25 Deliver messages the right way Communicate clearly, simply, and calmly Convey compassion, conviction, and optimism Recognize and acknowledge anger, frustration, fear, outrage, or concern Indicate that you genuinely share your audience s concerns Provide 3 or more positive points to counter negative information Gain trust by admitting there are things you don t know Accept and involve the public and the media as legitimate partners

26 Incident Notification Marc Ladin Chief Marketing Officer, Everbridge 26

27 Incident notification addresses common challenges Communicate brand repair messages quickly, easily, and efficiently to avoid lengthy brand damage Use all contact paths to make sure corrective actions are communicated and received Ensure two-way communications for better visibility and planning Reduce miscommunications and control rumors with accurate, consistent messages which reinforce your situation or stability model communications Free key personnel to perform critical tasks after the crisis by automating manual, time-intensive, error-prone processes Improve communication effectiveness by eliminating any single point of failure 27

28 Key evaluation criteria for an incident notification system Experience and expertise Ease of use Ability to reach all contact paths, including voice, , native SMS (over SMPP and SMTP), IM, and more Ease of integration 28

29 Q&A Note: slides are currently available to everyone on blog.everbridge.com Use the Q&A function to submit your questions. 29

30 Contact information Robert C. Chandler, Ph.D Marc Ladin Communication resources Upcoming webinars: System Demo (July 28) White papers, literature, case studies Follow us: blog.everbridge.com twitter.com/everbridge facebook.com/everbridgeinc youtube.com/user/everbridge Reminder Everbridge Insights webinars qualify for Continuing Education Activity Points (CEAPs) for DRII certifications. Visit to register your credit. Item Number (Schedule II): 26.3 Activity Group: A 1 Point for each webinar