plans are useless - preparing for & responding to a crisis in the digital age

How to Protect & Manage Brand Reputation Online

Vietnam Marketing & Management Institute, HCMC | December 16, 2016CPC&

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ABOUT CHARLIE POWNALL

Managing Director of CPC & Associates. Previously Regional Managing Director of Burson-Marsteller (Asia-Pacific), WPP, SYZYGY AG, Reuters, European Commission

Over twenty years experience in communications planning & strategy, public relations, issues & crisis communications, digital marketing, social media, government communications, political advocacy, speechwriting, journalism

Set up and ran the European Commission's first rapid rebuttal unit. Led communications for 15x over-subscribed SYZYGY AG IPO. Grew Burson-Marsteller's digital/social offer and capability across Asia by average 80% per year

Author, Managing Online Reputation: How to Protect Your Company on Social Media (Palgrave Macmillan, Alpha Books). WPP Atticus Award (2011) forManaging Corporate Reputation in the Digital Age white paper

Global experience; over nine years in Asia. Chairman, Communications & Marketing Committee, American Chamber of Commerce in Hong Kong (2012-15)charliepownall.comCPC&

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INCIDENTCRISISPROBLEMISSUE

- SEVERITY +- LONGEVITY +CPC& charliepownall.comTYPES OF NEGATIVE SITUATIONS3

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A significant negative event that contains actual or potential risk to life, health, environment, business continuity, reputation or those relationships a company requires to operate its business.

Is this situation a precursor that risks escalating in intensity?Does it risk coming under close scrutiny?Will it interfere with normal business operations?Will it jeopardise our public image or bottom line?Source: Steven FinkDEFINITION OF A CRISIScharliepownall.comCPC& 4

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You only find out whos swimming naked when the tide goes out

Warren Buffettcharliepownall.comCPC& 5

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charliepownall.comTHE OPERATIONAL FAILURECPC&

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THE POLITICAL ATTACKcharliepownall.comCPC& 11

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Can strike from anywhereFast evolving citizen/consumer rights, expectations, behaviours Rise of nationalism, privacy and other difficult, emotive issues Online short, sharp shocks that can quickly escalate into full blown crises

Harder to manageReputation is global News, information & commentary move faster and furtherImmediate expectation of openness and honestySkeptical, fickle customers/stakeholders Many more rumours, misinformation, disinformationEveryone has a voice, but who is credible and trusted? Lower employee loyalty, ease of sharing confidential information

CPC& charliepownall.comTHE REALITY OF CRISES TODAY16

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You dont know whats happeningInformation is partial and inaccurateRumour and speculation are spreading fastThe media is callingLegal is telling you to say nothingManagement has gone missingPanic is taking over

17CPC& BREAKING CRISES ARE FRIGHTENINGcharliepownall.com

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Not respondingResponding too slowlyBeing dishonestBeing partially honestDeflecting blameOver-reacting

COMMON CRISIS RESPONSE PITFALLS

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Listen continuously Respond quicklyAct decisivelyBe sensitive and proportionateCommunicate persuasivelyPrepare thoroughlyCollaborate closely CPC& charliepownall.com19CRISIS RESPONSE PRINCIPLES

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What can we say? Anything substantive? What cant we say? Whats our legal liability? Which stakeholders do we need to be talking to?Whats their likely reaction? Who should speak on our behalf?Proactive or reactive?

FIRST RESPONSE CONSIDERATIONSCPC& charliepownall.com20

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WHAT TO SAY WHEN A CRISIS BREAKS

Acknowledge the issue Show empathy with those impacted Recognise the urgency of the situation Demonstrate it is being taken seriouslyPromise to keep those impacted updated

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28charliepownall.comCPC& "The nature of the dispute and in particular the manner in which it was conducted, irrespective of any comments alleged to have been made, is adjudged to be not only of concern to the public but viewed by us as detrimental to the standing of our company, unbecoming of a manager of our brand and prejudicial to our good name."

"Therefore, we have immediately relieved the manager of his position."

"Such an incident reflects in no way the values of Daimler AG and we sincerely apologize for the concerns raised by this matter and the views that people have felt obliged to express following the reports of this regrettable matter".Source: Daimler Greater China

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30CPC& COMMUNICATE PERSUASIVELYhttps://www.youtube.com/watch?v=-r_PIg7EAUw&t=5s

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CRISIS PLANcharliepownall.comCPC& Definitions CrisesIncidentsIssues

For each riskDefines roles, responsibilities & contact infoProvides policies, protocols, checklistsSets out objectives & strategyProvides pre-approved messages/statementsLists priority stakeholders/opinion-formers

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DEFINING RISKS

charliepownall.comCPC& Political pressureRegulatory changesReligious/cultural/political controversiesSocietal outrageCyber attacksHealth scaresHostile takeover bidsNatural disastersPolitical unrestSabotage & extortionCorporate/strategic failureCorporate governance failureFraud/malpracticePoor employee behaviourCEO dismissalEmployee injuries/deathIndustrial disputesIT system failuresProduct quality

EXTERNALINTERNALISSUE-LEDINCIDENT-LED33

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Source: EIU, Clifford Chance - 2014TOP RISKS FOR BOARDScharliepownall.comCPC& 34Source: Clifford Chance, EIU - 2014

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IMPACT OF RISKScharliepownall.comCPC& Source: EIU, Clifford Chance - 201435Source: Clifford Chance, EIU - 2014

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Source: EIU, Clifford Chance - 2014

MAJOR RISK CONCERNScharliepownall.comCPC& 36Source: Clifford Chance, EIU - 2014

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IGNITESAMPLIFIESSUSTAINSHOW SOCIAL MEDIA IMPACTS REPUTATIONCPC& charliepownall.com37

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CriticalExtensive breach of customer dataKidnapping of an employeeMajor damage to a firms physical assets during an earthquake or terrorist operationSevereAllegations of corruption amongst a firms senior leadershipExternal leak about serious and unexplained injuries to employees at workThreat of legal action by a major investor over the accuracy of a firms financial statementsSignificantEscalating allegations of use of child labor amongst a companys suppliersCommunity protests about local environmental damageCampaign by a global NGO to boycott a companys productsModerateAn escalating online rumor about a controversial product ingredient A public complaint about a faulty product by a celebrity customerA backlash to an unexpected price increase or brand marketing campaignLowKnown though uncontroversial concerns about a product circulating onlineNegative online feedback to a media article on employee compensationA one-off complaint on Facebook by a customer about poor quality product packaging

RANKING RISKScharliepownall.comCPC& Charlie Pownall/CPC & Associates38

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MessagingNotification First responseEmployee communicationsOnline influencersOnline conversation managementLocal considerations39CRISIS COMMUNICATIONS PROTOCOLSCPC& charliepownall.com

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CPC& NOTIFICATION PROTOCOLScharliepownall.comMODERATESEVERECRITICALIssueAn escalating online rumour about a controversial product ingredient A public complaint about a faulty product by a celebrity customerA backlash to an unexpected price increase or brand marketing campaignAllegations of malfeasance amongst senior leadershipExternal leak about serious and unexplained injuries to employees at workThreat of legal action by a major investor over the accuracy of a firms financial statementsExtensive customer data breachKidnapping of an employeeMajor damage to physical assetsThreshold(s)Volume xx/deviance %Sentiment xx/deviance %Volume xx/deviance %Sentiment xx/deviance %Volume xx/deviance %Sentiment xx/deviance %AssessmentPlatform manager, Listening team, Communications, Topic expertCommunications, Public Affairs, Legal, Topic expertCrisis Team, CommunicationsApprovalCommunicationsPublic AffairsCrisis TeamResponse time12 hours6 hours3 hours

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BUSINESSTECHNOLOGICALLEGALCOMMScharliepownall.comCPC& 41FORMULATING THE RIGHT RESPONSE

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Charlie Pownall/CPC & AssociatesCPC& THREAT RESPONSE TOOLBOXcharliepownall.comREMOVEMINIMISERECTIFYHIDEBLOCKSUPPRESSRETRACTREFRAMEATTACKDENYOFFLOADLEAVETHREATENEVADEDIMINISHSHAREARBITRATEADMITSTRENGTHENREBUILDRESTORECONVERTREPLACEMITIGATEJUSTIFYLITIGATEPROMOTEPREVENT42

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Holding statements, follow-up statements, backgrounders, FAQs, etc

First tweetSecond tweet Holding statement Second statement Third statement

PRE-APPROVED MESSAGES/CONTENTcharliepownall.comCPC&

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CPC& charliepownall.comTRAIN YOUR TEAMS

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charliepownall.comTO CONCLUDEMany reputation threats, each of which differ according to the organisation, industry and operating context

Listen carefully to understand the broad range of risks to your business and reputation, and how the internet/social media impact these risks

Develop a comprehensive, practical crisis, incident and issue response plan based on the risks to your organisation

Respond to a crisis quickly, firmly, sensitively and proportionately

Ensure your business, communications, legal and technological responses are aligned

Always bear your long-term reputation in mind when responding to a crisis

Practice hard.CPC& 45

Plans are useless, but planning is useful

Dwight D. Eisenhowercharliepownall.comCPC& 46

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QUESTIONS?charliepownall.comCPC& 47

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THANK YOU.

@cpownall+44 20 3856 [email protected]

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plans are useless - preparing for & responding to a crisis in the digital age

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