Monthly Archives: December 2008

Managing in a Meltdown

Published December 29, 2008 by William Hoffman, Managing in a Meltdown offers insight into shippers fears of unprecedented disruptions to supply chains.

Manufacturers and retailers are recognizing that coping with today’s economy requires attention to not only their own financial picture but also to that of their transportation and logistics partners as well As the global recession worsens, and the effort to keep operations moving, crisis management teams are being formed to prepare how to handle today’s economic environment and cope with both their financial situation and the financial circumstances of their transportation and logistics partners.

The changing requirements that some suppliers make, such as demanding cash for shipments that in previous years they offered on credit, are creating a tremendous pressure on companies that otherwise are seemingly healthy. This new credit environment is the reason some companies give for closing many of their stores.

Each business manages crisis response in its own way. Cisco Systems activated its crisis management team about two months ago. Cisco began testing every node and partner in its network that posed a significant risk of disruption. Cisco’s crisis management team is meeting with CFO’s and other executives of carriers, logistics providers, manufacturing sources, sales and customer service organizations to assure uninterrupted operations.

Crisis managers are warning that it is important to keep perspective and not overreact to the situation.

Jonathan Bernstein
President
Bernstein Crisis Management, Inc.

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Continental Airlines Makes Classic Blunder

Take at look at the statement released by Continental airlines after one of their planes slipped off the runway on takeoff at Denver airport today:

Continental Airlines Statement Regarding Flight 1404

HOUSTON, Dec. 20 /PRNewswire-FirstCall/ — Continental Airlines (NYSE: CAL) tonight confirmed that flight 1404, a Boeing 737-500 aircraft carrying 107 customers and five crew members, exited the runway at Denver International Airport following a scheduled 6 p.m. MST departure to Houston Bush Intercontinental Airport. Continental and Denver International Airport are providing assistance to the passengers at this time. A number of injuries have been reported and authorities are transporting passengers and crew to area medical facilities as necessary.

The company is in the process of collecting additional information and will communicate additional information once it is known.

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The airline makes the classic blunder of failing to say anything even remotely compassionate or reassuring to passengers and their loved ones. Something like, “We deeply regret the impact this has had on our passengers and their loved ones and will continue to do our best to ensure that all are safe and receive appropriate medical treatment when needed.”

Taking a “just the facts” approach gives the public the impression that the airline’s leadership is insensitive — not the reputation they want to have, I’m sure.

JB

Jonathan Bernstein
President
Bernstein Crisis Management, Inc.

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Firearms Manufacturer Misfires

In my December 13, 2008 Internet Newsletter About Crisis Management I featured an article by Claire Wolfe on Firearms Manufacturer Misfires. The article represents the damage that can befall a company’s reputation when they don’t respond appropriately to the demands of any given group. It is clear that responding is the best decision in managing your Internet reputation. There is abundant evidence of the importance of crisis management and the need for a crisis prevention strategy.

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Reputation Management OnTheLine

I have a new monthly column, REPUTATION MANAGEMENT ONtheLINE, in Media Bullseye, the “New Media and Communications Magazine” published by CustomScoop, my favorite online clipping service. I’ll be featuring not only my own writing, but interviews with top experts in this field, so be sure to subscribe — it’s free!

JB

Jonathan Bernstein, President
Bernstein Crisis Management, Inc.

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Are You Protecting Your Reputation Online?

What are you doing, actively, to protect your reputation online? Do you know what people find on page 1 of a Google search for your name? If you’re an organization that would like to be found, can you be found on page 1 of a Google search by someone searching for relevant keywords (e.g., in my case, “crisis management”)?

If you answered either of the above questions “no,” then you are ceding management of your reputation to others who may or may not have your best interests in mind. There have been more than a few times that I’ve seen companies whose competitors — or critics — have better search engine results rankings for searches than the companies themselves.

JB

Jonathan Bernstein
President
Bernstein Crisis Management, Inc.

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