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The Ogilvy Public Relations Approach to:
Crisis & Issues Management This is a very brief overview of how we approach crises and issues preparedness; on and offline. Please take a look and let us know what you think. If you’d like to have a chat about any subject or issue raised in this presentation, why not drop us a line on;
+44 207 309 1105www.ogilvy.co.uk/ogilvyprTwitter: @ogilvyprlondon
Ogilvy PR’s Approach to Crisis Management
Ogilvy PR believes that crisis management is not a formulaic process. Every crisis situation is unique and must be managed accordingly. Any set of rules or tools tailored too narrowly to the needs of a hypothetical crisis scenario would be too confining to be of practical value when a genuine crisis develops.
There are certain core principles beneath successful crisis management, however. Developing appropriate tactics on the basis of these principles enables an organisation’s leadership to remain focused and effective as crises unfold, which they usually do with blistering speed.
Once your management is grounded in the core principles and methodologies, Ogilvy PR can respond effectively to a wide range of distinct crises. Anticipating the types of crises that a company is likely to encounter can help develop useful frameworks. Further, the skills needed to implement a crisis response can be amplified and honed through simulations that put management through the paces of a realistic crisis situation.
• Approximately 75% of what’s needed to handle a crisis effectively can be developed in advance
• Most crises can be averted
– Communications teams must be able to recognize the issue, act upon it and manage it before it becomes a crisis
– Issues management typically involves a campaign to change stakeholder opinions
• Some crises occur without warning
– Communications teams need well-crafted communications plans and defined roles to manage crisis and mitigate damage
– Crisis management typically involves rapid response in communicating accurately and transparently to stakeholders
Issues & Crisis Management – Our Philosophy
It’s all about protecting your brand.
…and your brand is very likely your company’s largest investment and most valuable asset.
In an “information overload” environment, brands as purchasing decision tools matter more than ever…
Why Crisis Preparedness?
How does a Crisis Begin?
“On average, 69-percent of all crises are the type that start out small and may take days, weeks or even months before they get out of control and draw public attention...”
--Institute for Crisis Management
The Value in Planning
According to a study by the insurance firm Marsh,
every $1 spent in crisis planning is worth $7 in losses averted.
The Cost of Not Planning
-15%
+7%
Share prices of companies that mishandle a crisis one year later
Share prices of companies that handle a crisis well one year later
Source: The Impact of Catastrophes on Shareholder Value: A Research Report Sponsored by Sedgwick Group (The Oxford Executive Research Briefings, Templeton College, Oxford, 1997)
The Responsibility Scale: from Victim to Perpetrator
Natural Disasters
False Rumors
Workplace violence
Product Tampering
Equipment & Tech failure
Human error industrial accident
Human error harmful product
Organizational misdeeds
Victim
Accidents
Preventable
Source: Crisis Management & Communications by Coombs 2007
So What’s Different Now?
So What’s Different Now?
So What’s Different Now?
It’s a brave new world for brands...
…as has the broader social context• Increased access to information
• High profile corporate scandals
• Stakeholders who are better informed, closely coordinated and increasingly cynical
• More focus on corporate social responsibility
• Fewer product-based differentiators…more focus on brand values, versus price/features
The competitive landscape has changed…• Technological developments
• Global sourcing
• Easy access to pricing information
• Corporate brands, not just product brands
• Why not to buy a brand, versus why to buy
Why Crisis Preparedness?Changing Times
But there’s one thing both sides agree on…
Brands = Targets "The flip side of the power and importance of a brand is its growing vulnerability.
Because it is so valuable to a company, a brand must be cosseted, sustained and protected.”
--Sameena Ahmad
Why Crisis Preparedness?Brands Are in the Cross-hairs
Companies, like people, tend to think crises won’t happen to them…that well-known images like these come from other industries, remote places, or years ago…
Why Crisis Preparedness?Crises Are Inevitable
…but if there’s one thing you can be sure of: a crisis will happen, to you.
We live in increasingly uncertain times…
More importantly, most corporate crises come from within…
Why Crisis Preparedness?Crises Are Inevitable
INTERNAL• Environmental Issue/Accident
• Investigation/Lawsuit/Fine/Settlement
• Poor Financials/Stock Performance
• Structure/Ownership Issue (M&A, etc.)
• Management Change/Dismissal
• Incident/Allegation of Mismanagement
• Incident/Allegation of Wrongdoing
• Consumer Complaint/Issue
• Product Defect/Recall
• Employee Complaint/Issue
• Labor Dispute
• Workplace Injury/Fatality
EXTERNAL• Natural Catastrophe
• Terrorist/Criminal Threat/Incident
• Activist Issue/Protest
Of the 15 major crisis categories, only 3 have predominantly external triggers.
More than 75% of all corporate crises are triggered from within.
Of the 15 major crisis categories, only 3 have predominantly external triggers.
More than 75% of all corporate crises are triggered from within.
Why Crisis Preparedness?Most Crises Come from Within
The fact that most crises come from within is actually good news.
It means you have a greater degree of control…
• Both in preventing potential crises from materialising.
• And in containing and managing them when they do happen.
Why Crisis Preparedness?Greater Control
All crises cost money, but they don’t typically destroy brands and kill companies.
Why Crisis Preparedness?Your Response Matters Most
“You cannot always control what happens to you, but you can control how you deal with it. And in the end that’s what matters.”
Kurt P. Stocker
Northwestern University
“You cannot always control what happens to you, but you can control how you deal with it. And in the end that’s what matters.”
Kurt P. Stocker
Northwestern University
What destroys brands and kills companies is poor crisis management.
To protect your brand in this environment, we recommend implementing BrandShield™
Three phases, each with a clear outcome.
1. Prepare
2. Respond
3. Recover
Prevent
Contain
Grow
Why Ogilvy Public Relations Worldwide?Focused on Outcomes
1. Prepare• Preparedness Audit• Crisis Management Team Org./Training• Risk Assessment and Scenario Planning• Databases, Tools, Templates & Facilities• Simulations
Prevent
Contain
Grow
2. Respond• Situation Assessment• Immediate/Ongoing Research & Monitoring • Strategic Messaging (Releases, Statements, Q&As)• Systems/Documentation• 360-Degree Communications w/ All Stakeholders
)
3. Recover• Incident Analysis• Key Lessons (Ops. & Comms.)• Ongoing Issues Management• Brand/Stakeholder Audits/Comms. Plans
Why BrandShield?Clear Concrete Steps
Why Ogilvy Public Relations Worldwide? Three Key Differentiators
• Deep crisis experience
• Deep brand expertise
• 360 degree capabilities
What’s required today are experts at stakeholder relations, not just media relations.
And expertise in, and instant access to, multiple messaging media…
Why Ogilvy Public Relations Worldwide?360-Degree Capabilities
PR
Leads team, crafts key messages,
handles media and influencer
communications.
Hotlines, database capturing, analysis
of enquiries, opinion
research/tracking.
Alerts, announcement ads, (print, TV,
radio).
Media placement and
analysis.
Teledirect Advertising MindShare Interactive
Online crisis mngt. and web-based
communications.
Key Stakeholders
BrandShield
We’ve developed four online practical steps we dovetail into all our crisis management stakeholder relations programmes.
Why Ogilvy Public Relations Worldwide?360-Degree Capabilities
1. Listen
2. Respond
3. Promote
4. Participate
It’s Urgent to Listen
• Set up online monitoring: search terms, reporting schedule (determined by severity, how much discussion, and ability to respond).
–Who is talking?
–What are they saying?
–What’s the common thread?
Respond
• Website
• Pressroom
• Homepage call-out
• Response microsite
• Off-Site Vehicles
• Press release
• Video
• Pledges and policy
• Commenting
Promote
• Negative Keyword Marketing
• Use crisis-related terms
• Examples: “Disgusting Dominos”
• Video Responses
• Tag your video as a response
• Paid Media
• Targeted online ad buys
• Federated Media, Google Content Network
Participate
• Commenting Guidelines
• Who should comment?
• How quickly?
• In what instances should theycomment?
• What are their objectives? What should they say?
• Commenting
• Prioritise influential voices, but do not neglect less influential.
• Correct misinformation.
• Ensure that the client’s “side of the story” is represented.
• Communicate that they are listening
Monitor >
Weekly Reports Daily/Hourly Reports
Respond >
Promote >
Participate >
Conduct Blog/Online Monitoring
Develop List of Influential Bloggers Conduct Outreach to Bloggers / Comment on Blogs
Launch Client Blog Use Client Blog as Forum for Response
Set up Dark (Crisis) Sites Launch Dark (Crisis) Site
CRISIS HITS
Set up Online Crisis Collaboration Website Use Collaboration Site to Manage Communications Strategy
Update Client Website Homepage with Crisis Message
Keyword Marketing: Promote Crisis Site
Online Advertising: On Blogs or Websites as appropriate
CRISIS
Crisis Management Time Lapse