The Law of Crisis PR Dictates Common Sense: Jetgate’s Huge Faux Pas

Automaker CEO's were nailed for flying-in on their luxury jets to beg congress for a $25-billion bail-out. The faux pas became a cause célèbre for all the news media and congress certainly didn't let the PR perception blunder go unnoticed. Little wonder why the automakers are still trying to convince congress to buy into their proposal.

The Homer Simpson character would have responded with a big fat "Duh" if he would have witnessed Jetgate.

The automaker CEO's and their organization's lack of PR judgment is inexcusable although one could argue they were focused on other issues - like staying afloat in the current stormy sea of the financial maelstrom. But bad PR generally boils down to ignoring common sense while good PR usually happens when you consider consequences from a "little guys" perspective - that is certainly how most journalists view the world.

Now let's look at Jetgate in the context of the little guy. When you go to ask for a loan from your banker do you offer to take out the loan officer to an expensive lunch in a Lamborghini while wearing a $3-thousand suite and big diamonds? No.

Did Martha Stewart win the hearts and minds of the public and the court system when she showed up for her insider trading trial in a limo toting a very expensive pocketbook and dressed like a queen? No.

Martha Stewart's poor judgment did loft a softball in the air for critical journalists to smash out of the park and so did the automaker CEO's. She has paid dearly and so have they. A little common sense with an eye toward hungry journalists and the little guy's perception would have saved all a bunch of trouble. The lesson for the rich and famous - make sure that you and the people around you think about public perception details before you leap into the headlines.

What do you think?

Set Right Expectations from Onset

Surprise! A few weeks into the financial bailout Secretary Paulsen announces his strategy is changing and by the way, no one is really 100 percent sure about where half of the $700 billion-dollars went. Oversight is about over before it begun. So now there is yet another crisis of credibility with the current administration and certainly of Congress which became an enabler in this situation.

That credibility could have been preserved to a great degree if Paulsen and the other bailout advocates had better expectations. If you are definitive in order to quell fears during a crisis you should also clearly explain how things may change as any new situation will almost invariably change. But, if you don’t set this kind of expectation, you set yourself up for criticism later and certainly loss of credibility.

We are not proposing starting a campaign by saying, “this is a completely new situation and nobody knows how it will turn out.” Because if you said that nobody will believe you are the best person for the job. It is, of course, very touchy. However, you can’t be wishy washy at the outset because that doesn’t instill confidence and your credibility will suffer even more if you don’t enunciate possibilities.

So messaging should include phrases like:

“Here is what we will do and here is what could happen …”

“We know what we are doing but our experience says we must be ready to change direction when it makes sense to change …”

“We know there will be changes to our plan as this is a unique situation but we will be ready to deal with those changes and put the best resources to bear …”

You get the picture. If you don’t qualify actions, especially during a crisis, nobody will trust you.

We are interested in your thoughts.

The Law of Crisis PR Predicts: Smart People Will Do Stupid Things

The AIG executives who decided on a $400K retreat after their firm was in the process of being bailed-out by the US government (American taxpayers) for $85B may have:

1) Taken a calculated risk that no one would notice.

2) Figured they needed time to regroup and the retreat expense was a reasonable business expense.

3) Selfishly decided they deserved a break from an incredibly high-stress time in their business and/or professional lives.

4) Lived in such an insulated C-suite/rich guy’s bubble disconnected from mainstream society that they golden-parachuted into a PR mess that would hurt them professionally and further damage their business’ reputation.

Whatever the truth is about the decision to hold the retreat you would think those executives would have better common sense and business acumen to dictate corporate and fiscal conservatism in the face of theirs and the nation’s financial crisis. We have, however, seen this mentality before of not-living-in-the-real-world famously manifest itself many times in crisis situations and play out away from the public spotlight.

Remember, the media and public outcry when Martha Stewart went to court for insider trading carrying an extravagant handbag worth thousands of dollars? Or when presidential hopeful Senator John McCain while campaigning under the aegis of economic prudence and a populist banner couldn’t even count how many mansions he owned? Or potential First Lady Michelle Obama who said the first time she was proud to be an American was when her husband decided to run for the presidency?

All of the above gaffes were perpetrated by smart folks who should have thought out better answers or taken other commonsensical actions given their situations. Of course, those kinds of faux pas keep PR crisis counselors in business. That said, a responsible PR counselor should also be in the business of creating preventative PR plans or teaching clients to predict what kinds of actions will hurt reputations, increase legal liability or decrease brand value.

So what are the lessons learned? How can people of power understand what their reactions will trigger from the common man or the mainstream news media – the surrogate of the common man?

Lesson 1. When you are open to high-profile public scrutiny list all possible perception outcomes on a matrix.

Lesson 2. If the stakes are high enough, role play in front of outside PR counsel who is not afraid of telling the boss they are pulling a bonehead move.

Lesson 3. Put yourself in an enemies’ or critic’s position and decide what their reaction would be before you act.

Lesson 4. Don’t forget details or common sense. If you are going to be seen in public or comment upon a sensitive issue make sure you speak appropriately, dress appropriately, act appropriately for the given context; i.e. don’t wear expensive jewelry if you are raising money for the poor or speak before a Mothers Against Drunk Driving audience when you have DUI tickets unless you are talking about changing your life because when you are under the public magnifying glass nothing is secret.

Lesson 5. Don’t surround yourself with “yes men” and expect to break the Law of Crisis PR and survive.

The Law of Crisis PR Demands Leaders Put Skin in the Game

Presently, the president of the United States, members of Congress and corporate executives all share the dubious notoriety of having remarkably low credibility ratings. If they were football players they could all run around stadiums holding up index fingers and shout, “We are number one!” … number one on the public’s list of losers. We are sure Wall Street’s titans will also top that loser’s poll during the next go around.

So what can our leaders do to restore public faith in themselves, their institutions and the American system? What can they do to get us going in the right direction and keep this nation’s productivity and confidence on an upward path?

They can roll up their collective sleeves and put some skin in the game and show they personally have something to lose if they don’t perform well or do the work of their subordinates as a gesture of commitment and connection.

In almost every famous example of a leader finding someway to demonstrate serious commitment, there has followed success - at least immediately after the gesture.

President Harry Truman’s words always inspire confidence when repeated by a leader accepting responsibility – “The buck stops here.” Lee Iacocca resurrected Chrysler when he appeared on advertisements personally promising quality products and was more visible at factories and employee functions. James Burke, the chairman of Johnson & Johnson that produced the tainted Tylenol medication in the 1980’s regained public confidence for his corporations when he appeared in public, immediately yanking product off of shelves and demonstrating a willingness to lose money while turning his company around. Malden Mills factory owner Aaron Feuerstein immediately promised to personally keep paying salaries and insurance for employees after a huge fire destroyed his fleece factory in 1995, keeping the business viable, at least for the short term – now that is putting skin in the game and extraordinary leadership.

So, to inspire confidence, let’s turn crisis into opportunity and help our wounded economy rebound. We need leaders to abide by the Law of Crisis PR, get their hands dirty, and not fly over our current disaster looking out of a jet window at 15 thousand feet.

We are interested in hearing what you think.

Banks Must Emphasize Positives but Address Negatives: Law of Crisis PR Advocates

It is time for banks to do more than advertise interest rates and financial products. The Wall Street credibility crisis has infiltrated the very heart of our economy and winning back personal trust must be a priority. There should be bankers across America who are working hard with both internal and external PR departments to create long term communications plans that indicate their banking models are safe and secure.

Smaller banks that were more conservative in their lending practices have an advantage and should figure inroads into the market shares of the larger institutions where there may not have been a so-called “run on the bank” but there has certainly been a “walk on the bank.” Customers have been pulling accounts and squirreling away money in coffee cans and mattresses almost like the days of the Great Depression.

So here blossoms a smaller bank’s public relations and business opportunity. The home-town banks should acknowledge any failures, but emphasize failures were honest mistakes and present instances where their practices have actually saved customers money now. They should underline how they know their customers, are neighbors, and are sympathetic but smart and prudent. Think back to the hero of the movie “It’s a Wonderful Life.” Jimmy Stewart’s George Bailey character was just the kind and compassionate, small-town hero banker that was a good neighbor when folks needed him and his neighbors were there for him when he needed them.

This is the time for the nation and communities of all sizes to pull together. Banks should consider hosting town hall meetings or Q & A sessions to personally explain issues and concerns. Ads and news stories can reinforce the bank’s theme but we bet grass roots positive word-of-mouth stories about a good neighbor bank will be the best investment a bank can make now.

More than Virtue: Patience and Persistence Follow the Law of Crisis PR

Vice presidential candidate Sarah Palin is thrust into the media and political spotlight. America, searching for its next idol, reacts from its gut and not with its head and the McCain ticket jumps in the national polls. Much the same happened when Barack Obama first surfaced as the new kid on the block when he spoke a few years ago at the Democratic convention. Now those polls reacting to Palin are cooling after the American people have had a chance to digest her intelligence and experience. The lesson here?
The American people and news media eventually will get it right eventually but the initial reaction of the masses and even journalists is based on emotion. That’s a broad statement but it applies to a wide-range of issues facing America. Let's look at two examples.
The more complex the subject the more volatile the American poll reaction. The most recent McClatchy Newspaper poll shows America's reaction to the latest developments of the financial crisis: "These events are accelerating the country's fast-shifting politics just six weeks before the presidential election, as voters weigh how much they want to strengthen regulation after decades of faith in unbridled free markets and hostility to government intervention. Nine out of 10 adults said they think the failure of Lehman Brothers and sale of Merrill Lynch will hurt jobs and the economy." The poll goes on to show that most American's are very pessimistic about the economy.

Now remember, in this election cycle the economy didn't start as a concern as high as it is now and American's were wary of more government regulation. But here comes a crisis and there goes that idea ... America is now confused, scared and want the government to act like a parent and "protect us."

The key takeaway for this Law of Crisis PR entry is to understand first what short term reaction will be from unsettling news but have a perspective about what long term reaction will eventually be and gear public relations campaign accordingly. Never box yourself into a corner with campaigns that unequivocally target short term public or media reaction. Recognize the public and media will follow the next shiny object, grabbing for it with a smile or grimace. Don't bet though that just because America first grabbed an object or idea that we will hold tight -history shows minds will change.

What do you think?

The Law of Crisis PR Rules Teamwork fundamental to Presidential Candidates and Voter Perception

By Scott Sobel

The two presidential/VP teams have been set and are settling into to the final lap of the presidential race. Everyone has been fielding attacks, questions about experience and campaign planks for the respective platforms – Sarah Palin is just beginning her punditry and positioning. We believe the vast majority of US voters from the largest centrist demographic to the media will certainly make decisions on individual candidate positions but will make the salient decisions based on how the Republican or the Democrat presidential “Team” is presented and perceived.

How do Obama and Biden and Mc Cain and Palin work together? Do the teams stay on message or do they contradict one another? Who defers to whom on what topics? Do they look relaxed in each other’s company? Do they finish each other’s sentences? What is the body language? Is there a sense of real respect and admiration between them?

Our firm, Media & Communications Strategies is in the reality and perception business. As a PR/government relations/media relations expert and former journalist myself, I am looking for cues from each team that will or won’t resonate with various audiences. I have advised several politicians and continue to advise them. My best counsel now to both teams would be to take a breath whenever possible (no matter how hard that is) and just talk through issues and presentations – teammates should spend some quality time so there are no surprises and the media and public see two leader’s comfortable in each other’s company. If the team doesn’t mesh and work well together how can the media and voters believe the individuals can lead a nation?

We are interested in hearing your thoughts on how important this kind of “teamwork” is to the presidential campaign of 2008.