What would your reaction (heaven forbid) be if one of your
acquaintances were to have a heart attack? You might have one drink less
in the club that evening and even go for a walk the following morning.
And if you are bold enough you might even force your spouse to join you.
Your comments on the incident could range from:
|
Crisis can come in all
sizes, shapes, and magnitudes.
|
"Man, could he pack a drink"
"God, he loved to eat"
"He was really overweight" - after all he is a kg heavier
than you.
Crucial to all this, is a state of mind that all of us
know, have experienced and keep experiencing. It is a misplaced
self-confidence embodied in the belief that "it can't happen to me".
Sadly enough this belief is not restricted to individuals, but companies as
well. Hardly surprising given the fact those companies are run by people with
similar dispositions to you and me. They see other companies struggling
under the burden of one crisis or the other and yet seem strangely oblivious to
their own risks. "It can't happen to us" seems to be their attitude. Here's
hoping that your company is not one of them.
It can happen to you
Crisis can come in all sizes, shapes, and
magnitudes. Most of them catch us napping. Some crises may
seem less dramatic and less in the public domain but they can still cause
damage.
Here
are a few examples.
1. You are a biscuit manufacturer. A consumer finds broken
pieces of glass bangles in a packet of biscuits he has bought. He
threatens to go to the media.
2. You sell branded rice. There are cockroaches in a pack
that a cantankerous lady has bought. She feels that gives her an
opportunity to come on TV.
3. In torrential rain, your new building collapses killing people
on site.
4. Your company employee is involved in an embezzlement case
5. There is a leak of toxic substances from your plant.
6. There is a fire in your factory.
7. There
is flood in areas surrounding your manufacturing plant and
this damages your stocks and impacts your bottom line.
|
Crisis strikes like the Tsunami when we are
least prepared for it.
|
All of these are events that we would not like
to happen. But they have happened. And will continue to
happen. The question is "Do you have a crisis management program in
place?" And the worrying thing is that even as you are running like a
headless chicken (one hopes you are not) trying to handle the crisis, the media
wants you to handle a press conference as well! NGOs are snapping
at your heels even as they anxiously scan the environment for media
opportunities to air their views and wave their banners. The situation
can be daunting. And it is hardly surprising that many of us are found
wanting. Whenever one thinks of crisis, the first name that comes to mind is
Tylenol. One remembers John F. Kennedy's statement, "When written in
Chinese, the word "crisis" is composed of two characters - one represents
change and the other represents opportunity". The handling of the Tylenol
case by Johnson & Johnson certainly underlines one fact: behind every
crisis lies an opportunity to keep your head; and to demonstrate that you care.
Although the Tylenol case has been often quoted and talked about, we can still
learn from it and it is still worth repeating in brief.
The mother of all crises
In 1982, seven people died in Chicago mysteriously within
a few days. Authorities determined that each of the people that died had
ingested an extra - strength Tylenol capsule laced with cyanide. News
spread. The result was panic and chaos. Jerry Della Femina
said, "I don't think they can ever sell another product under that name
(Tylenol). There may be an advertising person who thinks he can solve
this and if they find him, I want to hire him, because then I want him to turn
our water cooler into a wine cooler".
He was wrong. Perhaps
like most advertising people, he had a hazy view of public relations.
Tylenol regained its position as one of the top selling "Over-The-Counter" drug
in the USA . They did this first by handling the crisis and secondly by
handling the come-back of Johnson & Johnson and Tylenol. Crucial to
both was an effective PR strategy that was meticulously executed. It
started with putting the customer first. All Tylenol products (a
staggering 31 million bottles worth US $100 million) were recalled.
The company established relations with the Chicago Police, the FBI and the Food
and Drug Administration to search for the criminal and announced rewards.
The media praised the company for their socially responsible actions in an
environment filled with callous corporate entities. A few months later,
Tylenol was reintroduced with a new triple - seal tamper resistant packaging
and this launch was enthusiastically received by media. And later
analysis revealed that the Tylenol story was found in over 125,000 news
clippings across the country! It had made even bigger news than J.F.
Kennedy's death! Tylenol is testimony to the value of how public
relations can turn a potential disaster around. I wish more Indian
companies would look inwards at their own state of (un) preparedness to
potential crisis.
Crisis Calls
Not long ago the UK tabloid, "The Sun" (which is hardly my
cup of tea) certainly made news with its report that it was able to buy
information regarding bank accounts and
credit card details from a Delhi based person who collected data from call
centers. This had all the makings of a potential PR crisis. The
industry quickly rallied around in defense, knowing the western media's
paranoia about losing jobs to India. An industry that makes news can be at the
short end of the stick when things go wrong. And the problem with
industries like these is that media tars the whole industry with the same brush
as the company in the crisis. So a crisis in one company in the industry could
have larger-than-life repercussions on the whole industry. Does your
industry suffer from similar characteristics?
At the end of the day
I don't wish to be the harbinger of bad news, but we just cannot wish
crises away. They strike like the Tsunami when we are least prepared for
it. Like a tidal wave in broad sunlight! From a company
perspective, it is perhaps worthwhile to have a contingency and action plan in
place.
1. Identify possible
and potential crisis
2. Put together a crisis management team
3. Designate
and allocate responsibilities to your team members
4. Train
them on how to handle media
5. Train
them on how not to rush to media!
6. And
keep subtly hinting that it could happen, without raising a false alarm every
time
Time to recall Rudyard
Kipling's famous words,
"If you can keep your head while all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all
men doubt you,
But make allowance for their
doubting too.
...You'll
be a man, my son"
Yes, though no one wants a
crisis, it does give us an opportunity to be men. And before you have a
personal crisis do yourself a favor: just go for that annual health
check-up.
Ramanujam Sridhar is CEO
brand-comm, which offers public relations advertising and brand
consulting. Feedback can be mailed to
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Issue BG71 Feb07
Related Items:
A Few Cost-effective marketing tips and practices
A Question of Brands
A Strategic Slip
Are you ignoring your brand ambassador?
Are you missing an opportunity?
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