Sunday, March 28, 2010

Trust Building Using Crisis Communication


It is quite obvious that company is in trouble when you look at its website and see all the digital distress signals. Check out these sites of recently troubled or confused enterprises, including Maclaren, Toyota, Playtex, and Tylenol for examples of these distress signals.


When you look at its Web site, Toyota, which recalled millions of cars for their faulty accelerator pedals in January, seems to be going into a apology spring sale frenzy. The plan appears to be to express less chagrin than gratitude and largess. “Toyota wants to thank you with our biggest offers ever,” reads the home page. To the left of that declaration is an equally thrilling-seeming banner, this one red states why they are thanking you: “Recall Information: Get the Latest Updates Here.” Check out last months Toyota Trust Communications BOCA blog for more of their crisis communication. I think they should have followed Tylenols "gold standard" and been alittle less sorry and a little more transparent.

Johnson & Johnson is well known for its profound corporate recovery, in the way it finessed a comeback after the 1982 Chicago Tylenol murders. The Tylenol Web site projects absolute self-assurance on in spite of January recalls of Tylenol and other of its medicines (Rolaids, Motrin, Benadryl) after complaints of a moldy smell. A big red button on the home page points a finger at “Important Recall News” and links to a matter-of-fact press release and to a handy way to tell if you’re holding a recalled Tylenol product. Though it lacks the distracting ebullience of the Toyota site, Tylenol plays its setbacks similarly, positioning recalls as though they were all in a day’s work for a scrupulous company that manufactures a lot of important products.

Seven people died in 1982 after taking Tylenol capsules, which had been tampered with and contaminated with cyanide. According to Effective Crisis Management, Tylenol’s market share quickly went from 37 percent to only seven percent. Johnson & Johnson faced a huge challenge. Not only did the company have to manage the crisis communication of just Tylenol, but also of the entire company’s reputation. J&J recalled approximately 31 million bottles of Tylenol from across the country and stopped all advertising.


Some say J&J set a standard for crisis communication when they “assumed responsibility by ensuring public safety first and recalled all of their capsules from the market,” despite the fact that the bottles were tampered with after reaching the shelves. Tylenol was reintroduced into the market with triple-seal tamper-resistant packaging, offered coupons for the products, created a new discounted pricing program, new advertising campaign and gave more than 2,250 presentations to the medical community. According to Managing Crises Before They Happen (Mitroff, 2001), J&J actually increased their credibility during the crisis because of the candidness of the executives. Notre Dame expert Professor Patrick Murphy said J&J set a “gold standard” in regards to business ethics as well because J&J was proactive and transparent.

Thursday, March 25, 2010

“Industry expertise” vs. “skillset” - A BusinessWeek Case Study

One of the most frequently asked questions that PR professionals hear is “who (what journalists) do you know in my industry?”

I’ve always found this question interesting. Why? While it is important who you know, what’s more important is what you know, how you know it, and what skills you have that are transferable.

Sound counter-intuitive? Let’s take a look at Fortune 2000 CEOs and CMOs. They cross industries all the time. Take Edward Whitacre - previously a senior exec at AT&T and now CEO of General Motors. Clearly, GM thinks he’s extremely qualified despite the fact he didn’t come out of the automotive industry. What matters is the fact that Whitacre is a seasoned business professional and CEO.

A great leader is a great leader. A great marketer is a great marketer. A great communicator is a great communicator.

At BOCA, we often take on a new client in an industry that is new to us. One example is Shipwire, a company we began working with a few months ago. Shipwire is our first client (of many, we hope) in the SMB (small/medium-sized business) world. We learned its space, uncovered key reporters, and more importantly, used our seasoned communications skills to secure them a very nice position in the Small Business section of BusinessWeek.

Coincidentally, a technology writer from the same publication wrote a feature story today on our semiconductor client, Telegent. Two different writers in two completely different industries – one within which we’ve had years of experience (semiconductor) and the other new (SMB).

What’s the point here? Knowing the right reporter is a very small piece of the bigger puzzle. Being a seasoned, strategic PR professional who understands business and relationships is how one wins the game.

Read more:

http://www.career-line.com/job-search/new-gm-ceo-comes-from-att/

http://www.businessweek.com/smallbiz/content/mar2010/sb20100318_940081.htm

http://www.businessweek.com/news/2010-03-25/maxlinear-s-34-advance-signals-potential-for-telegent-s-ipo.html

Tuesday, March 16, 2010

The "Monster" SXSW Tech Week



South by Southwest (SXSW), the vast festival in Austin, Texas, covering music, film and interactive technologies, is starting off with a bang. Representatives from the likes of Twitter, Google, Microsoft, Spotify and hundreds of other companies of all sizes are addressing the tens of thousands of attendees throughout these first five days.


But what’s interesting about SXSW is not just the big names, it’s the smaller developers and start-ups who are presenting their ideas in the tucked away corners of Austin’s Convention Centre and the surrounding hotels into which the conference overspills. Finding them is another matter – the list of speakers runs to 41 pages.


The SXSW Web Awards took place last night (winners here), with location-sharing service Gowalla beating out Foursquare for best site in the mobile category and search site Wolfram Alpha nabbing Best in Show. TechCrunch liveblogged Twitter co-founder Evan Williams’s keynote Q&A. Evan did not go into details about the company’s new ad platform and was surprisingly tedious according to many audience members. But his Twitter posts about the event were followed in awe by millions. Other big news: Google Buzz was a “privacy fail” (via ReadWriteWeb), and music service MOG will let you stream any song on demand to your phone (via GigaOM).


This event is starting off like it was intended: “A hotbed of discovery and interactivity, the event offers lucrative networking opportunities and immersion into the art and business of the rapidly evolving world of independent film.

Wednesday, March 3, 2010

The Prestigious Information Security RSA Conference in SF

In the new information security age, you’re trained to expect the unexpected. Changes occur in a nanosecond. The RSA Conference in San Francisco, CA is the most all-inclusive forum in information security offering enterprise and technical professionals a place to learn about all those changes. A place where they can go there to learn about the latest trends and technologies, get access to new best practices, and gain insight into the practical and realistic perspectives on the most critical technical and business issues facing you today. This year’s theme is the Rosetta Stone, designed to remember “the Rosetta Stone’s legacy to modern Egyptology and its lasting message on the power of collaboration.”


Our client Narus spearheaded and spoke on yesterday’s panel, “Delivering a Unified and Resilient National Cyber Security Framework.” Moderated by Wall Street Journal reporter Siobhan Gorman, the impressive panel looked at the Obama Administration's concentrated effort to protect the U.S. national infrastructure from cyber threats, and the pitfalls it has encountered thus far in doing so. The panelists discussed how this problem may be solved with cooperation between government and the private sector. Narus CEO Greg Oslan and Cisco CSO John Stewart joined top national security advisors Melissa Hathaway and Bill Crowell for this lively discussion. The panel had about 175 satisfied attendees from major security agencies, defense contractors, governments and large enterprise companies.