Tag Archives: public relations

The Cost of Bird Flu Crisis Management

Published on 25th May 2013 by . Leave a Comment

Billions lost serve as stern reminder to be prepared for crises

China’s most recent bird flu outbreak is a prime example of just how costly food-related crises can be. Although the country appears to have brought the virus under control via strict crisis management protocols — including the closure of markets where it was detected, the destruction of all birds at said markets and standardization of transport methods — the losses incurred since this new bird flu strain emerged in March are enormous.

One Reuters article quoted a U.N. expert, who shared the staggering loss total estimated by China’s agriculture ministry:

“Over $6.5 billion has been lost in the agriculture sector because of prices, consumer confidence and trade. So poultry industry losses in China have been high”

As most who have done business internationally know, these types of estimates are often conservative when coming out of the Asian market. Just considering the fact that $6.5 billion in losses could be an underestimate should be warning enough for anyone who works in the food industry, or any of the myriad businesses associated with it.

In fact, just about any industry has the potential to encounter crises of this scale. The only way to reduce the impact is by taking preventative crisis management measures, and being prepared to leap into action when the time comes.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

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Dream Tours Florida Wrecks Reputation, Fails Crisis Management

Published on 22nd May 2013 by . Leave a Comment

Ethics count, people

Pursuing shady practices may make you some extra bucks, but the cost will far outweigh the gains when you’re eventually outed. Just look at Dream Tours Florida, the high-end travel company that’s been making a mess of crisis management ever since the New York Post exposed its scheme to rent disabled (or apparently disabled) tour guides out for days at Disney World, allowing their wealthy customers to skip to the front of ride lines.

Check out this screenshot of a since-deleted segment of Dream Tours Florida’s website, which vaguely describes these “VIP Tours”:

FL disabled travelscam disney 2

Just hours after the Post article went up, users began to share it on Dream Tours Florida’s Facebook page and Twitter feed, along with commentary like this:

FL disabled travelscam disney 1

At first, Dream Tours made hamfisted attempts to defend itself, saying that the entire situation was a misunderstanding, and finally making the following post, which was quickly blasted by visitors:

FL disabled travelscam disney 3

We can’t link you to Dream Tours’ Facebook or Twitter pages, because the company yanked both from the web in the midst of a deluge of negative comments.

So, the next time you’re tempted to cross that moral line and all you see is dollar signs, remember this crisis management nightmare, and think again.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

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How NOT to Deal with the Press

Published on 20th May 2013 by . Leave a Comment

Neglecting an important aspect of crisis management creates unnecessary risk

As the leader of an organization, you should expect to be talking to the media on a regular basis. Apparently, John Tortorella, coach of the NHL’s N.Y. Rangers, missed the memo on that one, because he REALLY hates press conferences, and isn’t afraid to let it show.

As you watch this clip, from the YouTube channel of ESPN’s Around the Horn, remember that Tortorella’s team had actually WON just minutes before to go up 1-0 in the playoffs:

Now, the Rangers aren’t a publicly held team, so Tortorella doesn’t have the same obligations he would if he were up there explaining things to investors. Thing is, blowing off press conferences like this isn’t seeding any goodwill with the media, something that’s invaluable should the organization you’re representing, or you personally, come under scrutiny or become embroiled in scandal.

As crisis management professionals, we’re big proponents of building a cushion of goodwill among stakeholders, be they customers, fans, the media, or any other number of groups. Simply put, refusing this shield because of ego or impatience is an unnecessary risk. If the Rangers ever find themselves in crisis, I certainly hope they have a stronger spokesman waiting in the wings.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

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Hyundai’s Crisis Management for Suicide Video

Published on 4th May 2013 by . Leave a Comment

Always consider the feelings of your audience

When it comes to attempts at “edgy” marketing, it’s easy to go too far, creating a self-made crisis. Late last month, Hyundai raced into crisis management mode after an online video featuring its hydrogen fuel cell-powered Hyundai x35 literally brought many viewers to tears, and it wasn’t from laughing too hard.

What happened? Here’s a description, from a UK Telegraph article by Leo Wilkinson:

The film – called Pipe Job – was produced by Innocean Worldwide Europe, a marketing communications company, and was posted on Youtube last week. It shows a man sitting in a car with the windows taped up and a hose from the exhaust pipe into the cabin.

He is seen taking deep breaths as vapour enters the car. Night falls and the man is seen leaving the car, his suicide attempt unsuccessful.

The car in question is the hydrogen fuel cell-powered Hyundai ix35: the tagline at the end of the advert reads: “The ix35 with 100 per cent water emissions.”

This (quite understandably) struck a nerve with many whose friends or loved ones have claimed their own lives, and they flocked to social media to let their feelings be known.

The video was quickly pulled, and Hyundai released the following statement:

“Hyundai Motor UK had no involvement with this film and Hyundai Motor Company did not request the film to be made, nor was it asked to approve it.”

“Hyundai Motor deeply and sincerely apologizes for the offensive viral film. The film runs counter to our values as a company and as members of the community. We are very sorry for any offense or distress the video caused.”

As the creating agency, Innocean’s reputation was at just as much risk, and a statement quickly came from that side as well:

“Innocean Worldwide deeply and sincerely apologizes for any offense or distress that the posting of the viral film may have caused.

“This viral film was created and posted on Youtube for one day by Innocean Worldwide Europe to get consumers’ feedback on creative idea employing hyperbole to dramatize a product advantage without any other commercial purpose.”

“Nevertheless, as a company that espouses strong family values, Innocean would never intentionally set out to cause distress. More to the point, Innocean apologizes to those who have been personally impacted by tragedy.”

Both apologies were strong, although we would give the edge to Hyundai’s as a result of its compassion for those impacted coming through a bit more clearly.

In the midst of the push to create viral content, don’t forget your due diligence. Put yourself in the shoes of your audience and think, “how could this piss someone off?” If the answers come pouring in, it’s probably time to switch directions.

The BCM Blogging Team
http://www.bernsteincrisismanagement.com/

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Crisis Management Tactics: OOPS! Erroneous Emails

Published on 1st May 2013 by . Leave a Comment

Hit that send button too soon? Here’s some advice…

With the average person firing off dozens, or even hundreds, of emails per day, you can safely assume that someone in your organization is going to slip up eventually.

Whether sending to the wrong recipients, sending too soon, or one of any number of possible mistakes that could be made, an erroneous email can easily create a need for serious crisis management.

Here are some steps you can take to minimize the impact:

1. Be honest

Don’t try to blame the system, the lint in your mouse, or anything else other than yourself. People are quite willing to accept that someone made a mistake; what they aren’t OK with is a flimsy excuse.

2. Evaluate the initial impact

Accidentally send out tomorrow’s newsletter early? First ask yourself, is it a huge deal? Did it contain some lighthearted tips on using Twitter, or did it contain as-of-yet unannounced news of impending layoffs? Many email errors can be corrected with a simple, “we’re sorry, we screwed up” type followup, while others call for a full-blown crisis management team to be assembled ASAP.

3. Monitor the response

Did your apology go over well? Is the story staying among those originally involved, or is it sprouting legs? Just as in most other crisis management scenarios, close monitoring will tell you whether you need to take further action or let things lie.

4. Learn

After everything has calmed down, conduct a lessons-learned session. Are there procedures that could be put in place to prevent the same mistake from happening again? Did a piece of software actually malfunction, and if so is there a fix? Every single crisis holds valuable opportunities for improvement, provided you take the time to study them.

This is another situation where the question isn’t “if,” but “when.” Take these steps to heart, and be prepared to take action when you have an erroneous email crisis of your own.

Erik Bernstein
Social Media Manager
http://www.bernsteincrisismanagement.com/

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