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“Crisis Communicationsin a Social Media World” Gil Chavez Professor - Globis University IMBA, International University of Japan (IUJ) BC Consulting BC Consulting www.consult-bc.com 1
Agenda The Basics What is a Crisis? Types, Examples, & Case Study How do we handle it? The New Reality Managing the Data “Water by the Ton” Milliseverts BP Oil Spill: Millions vs. Billions 2
The Basics Crisis Communications 101 3
What is a Crisis? ,[object Object],1. Magnitude:  Is it great enough to threaten organization viability? 2. Time:  How much time is available to react and counter?
Crisis vs. Issue ,[object Object]
“A crisis is an issue that has been ignored until it has become huge enough and urgent enough to deal with.”
Ergo: M/T = Crisis Level
Question: Can you objectively judge magnitude and time in a true crisis situation? ,[object Object]
Intel - classic (old, but not as old) case.
TEPCO / 911 - massive, multiple-event disasters involving government, public and companies.
Toyota accelerator problem: Silence = guilt.,[object Object]
Crisis Types ,[object Object]
Hurricanes, earthquakes, fires  (Katrina, Great East Japan Earthquake)
Industrial / technological disasters
Oil spills, product recalls (BP, Toyota)
Confrontation
Boycotts, Labor strife
Attacks
Tampering, site hacking (Tylenol, Sony)
Management misconduct
Insider trading, bribery (Enron)
Violence
Employee or customer (US Post Office)
Terrorism
Rumors
 P&G logo, Pepsi syringe,[object Object]
Deal with a Crisis Before it Happens 5. Create Holding statements and templates. 6.  Develop a Notification System. 7.  Set Up Assessment & Monitoring Systems. 8.  Reload System – i.e. refining, learning.
Take Action Action isn’t everything, it is the only thing. ,[object Object]
Even relatively ineffective measures show that you are doing something about the problem.
Buys time

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Crisis Comms in SM World.11.08.09

  • 1. “Crisis Communicationsin a Social Media World” Gil Chavez Professor - Globis University IMBA, International University of Japan (IUJ) BC Consulting BC Consulting www.consult-bc.com 1
  • 2. Agenda The Basics What is a Crisis? Types, Examples, & Case Study How do we handle it? The New Reality Managing the Data “Water by the Ton” Milliseverts BP Oil Spill: Millions vs. Billions 2
  • 3. The Basics Crisis Communications 101 3
  • 4.
  • 5.
  • 6. “A crisis is an issue that has been ignored until it has become huge enough and urgent enough to deal with.”
  • 7. Ergo: M/T = Crisis Level
  • 8.
  • 9. Intel - classic (old, but not as old) case.
  • 10. TEPCO / 911 - massive, multiple-event disasters involving government, public and companies.
  • 11.
  • 12.
  • 13. Hurricanes, earthquakes, fires (Katrina, Great East Japan Earthquake)
  • 15. Oil spills, product recalls (BP, Toyota)
  • 19. Tampering, site hacking (Tylenol, Sony)
  • 23. Employee or customer (US Post Office)
  • 26.
  • 27. Deal with a Crisis Before it Happens 5. Create Holding statements and templates. 6. Develop a Notification System. 7. Set Up Assessment & Monitoring Systems. 8. Reload System – i.e. refining, learning.
  • 28.
  • 29. Even relatively ineffective measures show that you are doing something about the problem.
  • 31.
  • 32. Why it used rice in potato shochu
  • 33. Compared their rice with other rice
  • 34. Shochu is a refined alcohol, so no risk
  • 35. Small maker and first time to run ads
  • 36. Didn’t wait for test results/Posted results to web site
  • 37.
  • 38. Earthquake  Tsunami  Meltdown (TEPCO)
  • 39. Product flaw  Consumer reaction B2B orders stop (Intel)
  • 40.
  • 41. Messaging The 4 C`s of crisis messaging: 1. Concern for those affected. 2. Cooperation with authorities. 3. Corrective measures. 4. Communication of these activities.
  • 42. Social Media Concerns 1. Clueless People who know nothing about the problem commenting on it. 2. Liars People who want to influence the situation for own objectives. 3. Rumormongers Fear and lack of knowledge drives speculation, which drives rumors. 4. Misinformed Neither of the above, but people who simply missed parts and forwarding wrong info. 5. Noise makers Every media outlet wants your attention now, from large organizations to the Twitterati and blogosphere.
  • 43.
  • 44. The New Reality Full control of communications is a thing of the past. News media is pressured to report first, confirm later. Huge increase in number of non-expert influencers commenting on your business and its problems.
  • 45. Recommendation: Aim to make your organization as open as possible – don’t wait to explain what you do and how your do it. (ex. Zappos) Use terms, numbers, and data understandable for the common person. (Next section)
  • 46. Managing the Data: Focus on Numbers and Terms Crisis Communications 101 20
  • 47.
  • 48.
  • 49.
  • 50.
  • 51. 100 mSv per year: Lowest level related to long-term, but extremely low, cancer risk
  • 52.
  • 53. BP Oil Spill 2010 312 Olympic Swimming Pools (206 million gallons) That’s a lot…. And this is a lot more: Gulf of Mexico total volume: 660 quadrillion (15 zeros) gallons Roughly a 1:1 billion ratio
  • 54. BP oil spill 2010 “If the Gulf of Mexico were the Superdome, the total spill would be three cans of beer inside.” In Tokyo terms: 1 can of beer inside the Tokyo Dome (1 Superdome = 3 Tokyo Domes)
  • 55.
  • 56. Focus on the numbers BEFORE the crisis.
  • 57. Put them into understandable terms.
  • 58.

Editor's Notes

  1. When we look at the TEPCO Fukushima Dai-ichi crisis we can say a lot about how it erred. It’s easy. In fact, much of it is standard boilerplate talking points for crisis communications and media relations consultants – stuff that you can find just by googling “crisis communications”. What I would like to do, is share some thoughts about one aspect of the crisis that I noticed and saw parallels to other crisis, and, perhaps, you will came away this morning with something besides a nice breakfast.
  2. Anticipating – Risk assessment.Response team – should be in place as soon as possible, such as yesterday.Spokesperson – You need one. TEPCO’s Last Supper style press conferences reassured no one.Training the team – Need to run through scenarios that are tailored to your company.Holding statements and templates – airlines have these, don’t you?-- “Our concern for those affected and their families. We are currently cooperating with the investigating authorities.”
  3. 5. Notification system. -- How you will inform your response team, executives and employees. -- Do not rely on one delivery system: TEPCO’s fax.6. Assessment/Monitoring systems. -- You have to know what is going on to make accurate decisions: TEPCO gross miscalculations of Sieverts in the water7. Reload system – refining, learning. You need to be able to provide accurate, current updates to all interested parties, and learn how to do it better while on the run.
  4. One of the lessons from Andy Grove’s “Only the Paranoid Survive.”
  5. Source: http://www.yomiuri.co.jp/dy/national/T110528002597.htm
  6. source:http://www.newyorker.com/reporting/2011/03/14/110314fa_fact_khatchadourianOne year after the crisis began, it was described this way…So in the Tokyo Dome, it would be one can of beer. Now then, if you happen to be sitting near that can of beer when it is shaken and then opened and you are rightly very angry. Or if it is spilled within a key electrical control, but this gives perspective. It was serious to those affected.