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The Practice of Public Relations

Fourteenth Edition

Chapter 17

Crisis Management

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Learning Objectives

17.1 To discuss the importance in counseling on the actions and managing the communication of an organization in crisis.

17.2 To explore the role of public relations in managing issues and risks and communicating in a crisis.

17.3 To discuss, in detail, the aspects of crisis planning, message mapping, and implementing crisis communication.

17.4 To examine how media relations differs in time of crisis than in normal everyday operations.

Opening Example: Thomas Markle

In the age of social media and the Internet, news of a crisis travels fast

Thomas Markle, father of bride-to-be of Prince Harry of Great Britain, infuriated the British royal family when he posed for wedding preparation photos for a paparazzi agency

No individual or organization is immune from crisis

Opening Example: Michael Cohen

Michael Cohen was given gifts from companies trying to get favors from the Trump White House

Cohen was also the associate who paid money to porn actress Stormy Daniels to keep her quiet about her affair with President Trump

Legal contracts, but ultimately cancelled

The digital speed and pervasiveness and perniciousness of viral communications mean that organizations and individuals are always one step away from crisis.

Learning Objective 17.1

To discuss the importance in counseling on the actions and managing the communication of an organization in crisis.

Crisis Pervades Society (1 of 3)

Crisis has become so pervasive that insurance companies offer crisis management insurance

The insurance helps corporations pay for crisis management agencies to help defend damaged brands from issues such as:

Food contamination

Environmental disasters

Executive scandals

Government bailouts

The practice of public relations has become most well known for assisting those who find themselves in crises and, as a consequence, has benefited handsomely.

Crisis Pervades Society (2 of 3)

Crisis = “unplanned visibility”

Most well-regarded and highest-paid professionals in public relations “manage” crises

A crisis can strike at any time. No sector of society is immune from crisis.

Crisis Pervades Society (3 of 3)

Instant communications, round-the-clock social media, cable news commentary, talk radio, and tabloid news journalism, and exploding communications challenges

The result is an increased number and depth of crises

The changing media environment leads to increased crises and communications challenges across sectors. Society is flooded with front-burner issues that affect individuals and organizations.

No Sector is Immune from Crisis (1 of 2)

Government scandals included NJ Senator Bob Menendez pulling strings for a felon and accusations Missouri Governor Eric Greitens mistreated his mistress

Business scandals included the subprime lending crisis of 2008 and subsequent financial meltdown and the pay packages awarded failed CEOs

Education scandals included Michigan State Universities $500 million settlement to more than 300 victims of sexual abuse and Penn State’s $100 million-plus to Jerry Sandusky accusers

No Sector is Immune from Crisis (2 of 2)

In sports, U.S. Olympic swimmer Ryan Lochte vandalized a Brazilian gas station bathroom and claimed he was robbed

In religion, the Catholic Church still lives in the shadow of shame over the pedophile priest crisis

In charitable organizations, Planned Parenthood representatives were filmed discussing getting money for aborted fetal parts and the chief of the Humane Society of the United States was forced to step down in 2018

In journalism, Rolling Stones magazine settled a $5 million lawsuit after running an erroneous story

The public relations industry was not immune from crises, either. Burson-Marsteller attempted to poison the waters for Google on behalf of Facebook. Fleisman-Hillard padded its bills and Edelman disguised himself as an employee to attend a Walmart meeting.

Learning Objective 17.1: Discussion Question

How have changes in communications media affected the need for crisis management?

Learning Objective 17.2

To explore the role of public relations in managing issues and risks and communicating in a crisis.

Issues Management (1 of 2)

“Issues management is the capacity to understand, mobilize, coordinate, and direct all strategic and policy planning functions, and all public affairs/public relations skills, toward achievement of one objective: meaningful participation in creation of public policy that affects personal and institutional destiny” – W. Howard Chase (1976)

Public relations professionals must constantly be aware of the primary issues that impact their organizations. The term issues management was coined in 1976 by the late public relations counselor W. Howard Chase.

Issues Management (2 of 2)

Anticipate emerging issues

Identify issues selectively

Deal with opportunities and vulnerabilities

Plan from the outside in

Bottom-line orientation

Normally, the issues management process is about pre-crisis planning. An organization can only influence a few issues at a time. Most issues, anticipated well in advance, offer both opportunities and vulnerabilities for organizations. The external environment, not internal strategies, dictates the selection of priority issues. Although many people tend to look at issues management as anticipating crises, its real purpose should be to defend the organization in light of external factors and to enhance the firm’s business by seizing imminent opportunities.

Learning Objective 17.2: Discussion Question

Why should issues management plan from the outside in?

The approach differs from a strategic planning approach, which, to a large degree, is driven by internal strengths and objectives.

Learning Objective 17.3

To discuss, in detail, the aspects of crisis planning, message mapping, and implementing crisis communication.

Risk communication is an outgrowth of issues management.

Risk Communication and Message Mapping (1 of 2)

Perception is reality

Began as process

Take scientific data related to health and environmental hazards

Present them to lay audience in understandable, meaningful way

Risk communication is an outgrowth of issues management. Risk communication began as a process of taking scientific data related to health and environmental hazards and presenting them to a lay audience in a manner that is both understandable and meaningful.

Risk Communication and Message Mapping (2 of 2)

When one is stressed, the ability to hear, understand, and remember diminishes

In times of high stress, people can miss up to 80% of message content

Of the 20% they hear, most messages are negative

Models of risk communication have been developed based on the position that perception is reality. Risk communication is based on behavioral scientific research, which shows how behavior changes when a person processes messages during high-stress situations. In crisis, you must adjust for these effects to communicate effectively.

Message-Mapping Steps (1 of 2)

Identify stakeholders

Determine specific concerns for each stakeholder group

Analyze specific concerns to fit underlying general concerns

Conduct structured brainstorming with input from message-mapping teams

To confront the reality associated with the way a person processes messages during high stress situations, risk communicators have developed a message-mapping process based on the seven steps above.

Message-Mapping Steps (2 of 2)

Assemble supporting facts and proof for each key message

Ask outside experts to systematically test messages

Plan delivery of resulting messages and supporting materials

To confront the reality associated with the way a person processes messages during high stress situations, risk communicators have developed a message-mapping process based on the seven steps above.

Message Map Requirements

Requirements

Three key messages

Seven to 12 words per message

Three supporting facts for each key message

Deeds, not words, are what count in communicating risk

Message maps generally adhere to the requirements on the slide. Like any other area of public relations, risk communication depends basically on an organization’s actions. Deeds, not words, are what count in communicating risk.

Signs of a Crisis

Definitions

“A crisis is a situation that has reached a critical phase for which dramatic and extraordinary intervention is necessary to avoid or repair major damage.” – Harvard Business Review

“Anything the C E O says it is!”

Problem is a short-term issue that affects one element or department can be limited

Crisis is longer-term, impacts the entire organization, affects many parts of the organization, and runs the risk of damaging the organization’s reputation

Positive crisis response can establish goodwill and cement positive reputation. It is essential that such emergencies be managed intelligently and forthrightly with the news media, employees, and the community at large.

A Question of Ethics

Where would you draw the line in representing a public relations client?

Do you think Dr. Palmer should have been entitled to public relations representation?

Would you have represented him? Why or why not?

Cecil the lion was lured out of a Zimbabwe reserve to be killed by an American hunter, who immediately became public enemy #1.

Seven Instant Warning Signs of Crisis (1 of 2)

Surprise – unexpected

Insufficient information – hard to understand everything

Escalating events – crisis expands

Loss of control – too many things happening

When a crisis breaks out, it is usually unexpected. Many things happen at once. The crisis expands. The outgrowth of escalating events means too many things are happening simultaneously. Bloggers, the media, stockbrokers, talk-show hosts, and the public in general feed on rumors.

Seven Instant Warning Signs of Crisis (2 of 2)

Increased outside scrutiny – responses desired

Siege mentality – organization feels surrounded

Panic

The organization feels surrounded and errs toward saying nothing on the advice of their lawyers. A sense of panic pervades.

Slammer Bound?

In 2018, Theranos CEO Elizabeth Holmes faced jail time

She and her company were accused of lying about their products and committing a massive fraud

Learning Objective 17.3: Discussion Question (1 of 2)

What is meant by “message mapping”?

Learning Objective 17.3: Discussion Question (2 of 2)

What are the principles in planning for crisis?

Planning for Crisis

Define the risk for each potentially impacted audience

Describe the actions that might mitigate each risk defined

Identify the cause of each risk

Demonstrate responsible management action

Create a consistent message

Heightened preparedness is always in order, with five planning issues paramount. Letting people know that the organization has a plan and is implementing it helps convince them that you are in control. Defining the issues means both having a clear sense internally of what the focus of action should be and communicating that action into the marketplace to reach key constituents.

Communicating in a Crisis: Crisis Don’ts

Don’t keep all channels of communication open

Don’t always make the C E O the spokesman

Don’t always take the lawyers’ advice

Don’t lean toward withholding information

Don’t answer every question

Don’t ever, ever lie

A key communications principle in dealing with a crisis is not to clam up when disaster strikes. Every crisis is different, but sometimes what you don’t do is equally important as what you do.

DON’T Grin…

BP Tony Hayward was obliviously grinning as he toured the Louisiana coastline

His company’s rig spewed 134 million gallons of crude oil into the Gulf of Mexico

Hayward was replaced following this picture.

Communicating in a Crisis: Crisis Do’s

Be flexible

Answer early

Speak with one voice

Be prepared to move without all the facts

Squawk if you’re wronged

Seek out your allies

In times of crisis, corporations need all the good will and support they can muster. They need their employees, customers, retirees, suppliers, and all the other constituent publics that believe in them.

The cornerstone of the practice of public relations is “third-party endorsement” – getting someone else to talk about how good you are. The more that can be shared with key publics, the more third party support can be generated.

Do Keep Your Cool…

Retailer Nordstrom dropped Ivanka Trump’s fashion line in 2017.

Handling the Beast

Set up media headquarters

Establish media rules

Media live for the “box score”

Don’t speculate

Feed the beast

Speed triumphs

Normally, treating the press as friendly adversaries makes great sense. When crisis strikes, media attention quickly turns to “feeding frenzy.” So dealing with media in crisis demands the battlefield rules on the slide. A smart organization in crisis will strive to keep the media occupied with new information that advances the story.

Communicating in a Crisis

Every crisis is different – no answer to solve every crisis

Manage court of public opinion

No comment often perceived as guilty

When “No Comment” and “Comment” Are Equally Bad

Public relations crisis counselors normally advise avoiding “no comment”

President Bill Clinton adamantly denied a sexual liaison

His press secretary did not deny the allegations because he was not privy to the facts

Cardinal rule for communications during a crisis: Tell it all and tell it fast!

Goals

Terminate the crisis quickly

Limit the damage

Restore credibility

Learning Objective 17.4

To examine how media relations differs in time of crisis than in normal everyday operations.

10 General Principles for What Is Said to the Media (1 of 2)

Speak first and often

Don’t speculate

Go off the record at your own peril

Stay with the facts

Be open and concerned, not defensive

Ten general principles apply as to what is said to the media in a crisis.

10 General Principles for What Is Said to the Media (2 of 2)

Make your point and repeat it

Don’t wage war with the media; you will lose

Establish yourself as the most authoritative source

Stay calm and be truthful and cooperative

Never lie

Ten general principles apply as to what is said to the media in a crisis.

“The President Said He Did Not”

The goals of crisis management are straightforward

1) Terminate crisis

2) Limit the damage

3) Restore credibility

Social Media Crisis Management

Social media does not set the tone for most crises; traditional media does

Communicate well with mainstream media

Monitor social media 24/7

Dark website – bring live for information about crisis

Only 20% of the nearly eight million tweets during the Boston Marathon bombing crisis conveyed factual information. Twenty nine percent were rumors and fake content.

A dark website is a pre-developed site that doesn’t come live until a crisis strikes. It is equipped with documents perceived to be necessary in a crisis. When the crisis hits, the dark website is activated, and other documents, graphics, videos, etc. are added as needed.

Instant Crisis Communication

Journalists used Twitter to get the news out quickly following the Boston Marathon bombing in 2013

Only 20% of the eight million tweens conveyed facts

Rumors and fake content made up 29%

Learning Objective 17.4: Discussion Questions

What is the cardinal rule for communicating in a crisis?

What are the keys to successful crisis communication?

Case Study: The Untouchable Pedophile (1 of 4)

Dr. Lawrence G. Nassar was a physician for the American gymnastics team and a member of the Michigan State University staff

He is serving a sentence of 40 to 175 years for committing sex crimes

He molested hundred of women and teenagers over a period of decades

His sexual abuse was under the guise of medical treatment.

Case Study: (2 of 4)

Dr. Nassar was well respected for helping athletes and his community

Over twenty years at Michigan State, at least 14 people were made aware of Nassar’s alleged abuse of his patients

Nassar was put in prison; then his enablers were called to judgement

The United States Olympic Committee threatened to decertify the USA Gymnastics Federation if its entire board didn’t resign, and sponsors chose not to renew their sponsorships of USA Gymnastics.

Case Study: (3 of 4)

Had you been public relations director at Michigan State or USA Gymnastics, what would you have done had you heard reports about Dr. Nassar’s treatment of athletes?

What fate would you have prescribed for the public relations directors who held the positions during Nassar’s time at both institutions

Case Study: (4 of 4)

In the aftermath of the Nassar crisis, what actions would you recommend be taken at MSU and USA Gymnastics in order to begin to restore credibility?

An Interview with Michael Sitrick (1 of 2)

One of the nation’s most well-known crisis managers

In a crisis, he asks clients questions and gets the facts

He looks for ways to address the issue; correct the misperception, fix the problem, take steps to ensure it doesn’t repeat, communicate

If there is false information, it is getting fact to equal perception for reputation.

An Interview with Michael Sitrick (2 of 2)

Reputation management is making sure you do the right thing and, when you don’t, correcting it

Lawyers must be involved in corporate communications

A sense of urgency and a direct line to the CEO are critical

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