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Plans Are Useless - Preparing for & Responding to a Crisis in the Digital Age
1. PLANS ARE USELESS
PREPARING FOR & RESPONDING TO
CRISES IN THE DIGITAL AGE
Vietnam Marketing & Management Institute, HCMC | December 16, 2016
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2. ABOUT CHARLIE POWNALL
• Managing Director of CPC & Associates. Previously Regional Managing Director of Burson-
Marsteller (Asia-Pacific), WPP, SYZYGY AG, Reuters, European Commission
• Over twenty years’ experience in communications planning & strategy, public relations,
issues & crisis communications, digital marketing, social media, government communications,
political advocacy, speechwriting, journalism
• Set up and ran the European Commission's first rapid rebuttal unit. Led communications for 15x
over-subscribed SYZYGY AG IPO. Grew Burson-Marsteller's digital/social offer and capability
across Asia by average 80% per year
• Author, Managing Online Reputation: How to Protect Your Company on Social Media (Palgrave
Macmillan, Alpha Books). WPP Atticus Award (2011) for Managing Corporate Reputation in the
Digital Age white paper
• Global experience; over nine years in Asia. Chairman, Communications & Marketing Committee,
American Chamber of Commerce in Hong Kong (2012-15)
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4. ‘A significant negative event that contains actual or potential risk to
life, health, environment, business continuity, reputation or those
relationships a company requires to operate its business.’
• Is this situation a precursor that risks escalating in intensity?
• Does it risk coming under close scrutiny?
• Will it interfere with normal business operations?
• Will it jeopardise our public image or bottom line?
Source: Steven Fink
DEFINITION OF A CRISIS
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5. ‘You only find out
who’s swimming naked
when the tide goes out’
Warren Buffett
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16. • Can strike from anywhere
– Fast evolving citizen/consumer rights, expectations, behaviours
– Rise of nationalism, privacy and other difficult, emotive issues
– Online short, sharp shocks that can quickly escalate into full blown crises
• Harder to manage
– Reputation is global
– News, information & commentary move faster and further
– Immediate expectation of openness and honesty
– Skeptical, fickle customers/stakeholders
– Many more rumours, misinformation, disinformation
– Everyone has a voice, but who is credible and trusted?
– Lower employee loyalty, ease of sharing confidential information
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THE REALITY OF CRISES TODAY
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17. • You don’t know what’s happening
• Information is partial and inaccurate
• Rumour and speculation are spreading fast
• The media is calling
• Legal is telling you to say nothing
• Management has gone missing
• Panic is taking over
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BREAKING CRISES ARE FRIGHTENING
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• Not responding
• Responding too slowly
• Being dishonest
• Being partially honest
• Deflecting blame
• Over-reacting
COMMON CRISIS RESPONSE PITFALLS
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20. • What can we say? Anything substantive?
• What can’t we say? What’s our legal liability?
• Which stakeholders do we need to be talking to?
• What’s their likely reaction?
• Who should speak on our behalf?
• Proactive or reactive?
FIRST RESPONSE CONSIDERATIONS
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23. WHAT TO SAY WHEN A CRISIS BREAKS
• Acknowledge the issue
• Show empathy with those impacted
• Recognise the urgency of the situation
• Demonstrate it is being taken seriously
• Promise to keep those impacted updated
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"The nature of the dispute and in particular the
manner in which it was conducted, irrespective
of any comments alleged to have been made, is
adjudged to be not only of concern to the public
but viewed by us as detrimental to the standing
of our company, unbecoming of a manager of
our brand and prejudicial to our good name."
"Therefore, we have immediately relieved the
manager of his position."
"Such an incident reflects in no way the values
of Daimler AG and we sincerely apologize for
the concerns raised by this matter and the views
that people have felt obliged to express
following the reports of this regrettable matter".
Source: Daimler Greater China
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NOTIFICATION PROTOCOLS
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MODERATE SEVERE CRITICAL
Issue • An escalating online rumour
about a controversial product
ingredient
• A public complaint about a
faulty product by a celebrity
customer
• A backlash to an unexpected
price increase or brand
marketing campaign
• Allegations of malfeasance
amongst senior leadership
• External leak about serious and
unexplained injuries to employees
at work
• Threat of legal action by a major
investor over the accuracy of a
firm’s financial statements
• Extensive customer data
breach
• Kidnapping of an employee
• Major damage to physical
assets
Threshold(s) • Volume xx/deviance %
• Sentiment xx/deviance %
• Volume xx/deviance %
• Sentiment xx/deviance %
• Volume xx/deviance %
• Sentiment xx/deviance %
Assessment • Platform manager, Listening
team, Communications, Topic
expert
• Communications, Public Affairs,
Legal, Topic expert
• Crisis Team, Communications
Approval • Communications • Public Affairs • Crisis Team
Response
time
• 12 hours • 6 hours • 3 hours
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TO CONCLUDE
• Many reputation threats, each of which differ according to the organisation, industry
and operating context
• Listen carefully to understand the broad range of risks to your business and reputation,
and how the internet/social media impact these risks
• Develop a comprehensive, practical crisis, incident and issue response plan based on
the risks to your organisation
• Respond to a crisis quickly, firmly, sensitively and proportionately
• Ensure your business, communications, legal and technological responses are aligned
• Always bear your long-term reputation in mind when responding to a crisis
• Practice hard.
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