The rapidly unfolding disaster on the Gulf Coast and BP’s handling of it is textbook “what not to do” during a Crisis.
Your reputation is your most valuable asset, and it can be destroyed in a snap. Every business, particularly those in the public eye, should have an effective Crisis Communications and Management Plan in place so that when emergencies or unexpected events happen you are prepared. Whether you sell products, are a publicly traded company, organization or municipality (i.e. Katrina/New Orleans), a detailed plan can mitigate damage and credibility both to your brand and reputation.
When a company, individual or organization’s reputation comes under attack, protecting and defending it is the highest priority. This is particularly true in today’s 24-hour news cycle. The goal is to disseminate timely, accurate information — “No Comment” is NEVER appropriate! — and keep the media and public apprised of developments so that you are being proactive rather than reactive to the unfolding of events.
Remember it takes a long time to build trust. And a nano second to destroy it.
Where did BP going wrong? They were not honest. They were defensive. They purposely underestimated the massive damage and amount of oil gushing into the water despite scientific data to the contrary. They were not empathetic to the massive damage being inflicted to the gulf coast and the rest of the country. They continue to flat out deny that there are oil plumes in the depths of the ocean despite consensus of the scientific community that they exist. We all know how long the list is.
And let’s not forget the comment that Tony Hayward, the CEO of BP, made when he was asked how soon BP would be able to stop the oil gushing into the gulf: “We’re sorry for the massive disruption it’s caused their lives. There’s no one who wants this over more than I do. I’d like my life back.”
This comment is just one of numerous callous, out-of-touch, off-the-cuff statements made by Hayward, including his referring to the spill as being “relatively tiny." It is now the worst oil spill in U.S. history, the damage incalculable. As the “face” of the company, his ill-served comments have only worsened BP’s crisis.
Clearly BP’s lack of communication and transparency with the public, the media and the U.S. government, its denial of the magnitude of the spill, incorrect information and concealment of data, et al is a textbook case study of how not to manage and survive a crisis. The company’s reputation and credibility have been severely damaged, their trust factor obliterated, not to mention the plunge in value of their stocks. If a company loses the trust of the public, media and government officials, it is extremely hard to get it back. A crisis, handled poorly, can fell a corporation.
In preparing your Crisis Plan, bear in mind that there are two possible scenarios: in a crisis you may still be able to conduct business as usual, or you may find your business comes to a standstill. Make sure that your advance plan accounts for both scenarios in great detail.
Some general principles that should be followed:
1) You want to determine who are the members of the crisis management team, which must include the CEO, heads of each department, and PR/marketing.
2) Plan and train in advance for the most dire scenario.
3) Decide who will be the “face” of the company and conduct interviews with the media as the crisis unfolds. I recommend that the designated executive receive media training so there are no unintentional and potentially damaging slips like that made by Tony Hayward.
4) Prepare lists of relevant media, clients/customers and any other important relationships you need to keep apprised.
5) Be proactive, issue statements to the media quickly when new information surfaces. Have a written template in place for a crisis press release so that, in a time crunch, you can respond quicker.
6) Be transparent and available.
7) In our 3.0 Twitter world make sure that you engage in social media about the crisis, i.e. timely Tweet updates to your followers. Many in the media will also follow the company’s (or designated “face”) tweets to stay informed, in addition to the public.