Brand Crisis: 10 crisis response myths

February 17th, 2010 → 1:25 pm @

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tiger wood vanity fair 006 209x300 Brand Crisis: 10 crisis response myths Like a well-orchestrated antiphony, the chirping by self-anointed crisis pundits has become formulaic: A crisis erupts and the call-and-response by social media sycophants, bloggers and journalists erupts into high gear, often adopting the tone of, “Here’s what (brand/individual) X should be doing.”

There’s no doubt healthy reflection and even recommendations can be helpful. But the mere fact that the public — and thus, the pundits — are not privy to all the details, even despite frequently cited “investigative reporting,” means such pontification is ultimately speculative at best.

Two recent events are striking examples of that: Tiger Woods and Toyota. Despite early commentary that their brands may never fully recover, the latter’s crisis is still in its infancy with long-term impacts remaining to be seen. Woods, on the other hand, has successfully left the front page, which is a crisis management success: to reduce damage.

Nevertheless, there are many assumptions about how crises should be managed. I am currently completing my dissertation on how media cover higher education crises, and after spending years researching crisis management, one thing is certain: No two crises are alike. With that in mind, and along with my professional experience, here are some of the more noted myths that seem to often appear in crisis commentary.

Myth 1: It’s best to get ahead of the issue. Fact: Jumping the gun by releasing statements, speaking to the press or worse, holding a press conference, without adequate information can make the situation worse. The Sago coal mine disaster of 2006, in which it was reported that there were survivors that, in fact, did not exist, illustrates the danger of incorrect information being spread like wildfire.

Myth 2: Under fire, organizations should respond quickly. Fact: As above, there’s great risk in responding too quickly without adequate information. By all accounts, the top players at Enron were unaware of the depth and complexity of the shady financial arrangements by its CFO, Andrew Fastow. It took years of legal and journalistic investigations to unravel what exactly occurred that sent the company into dramatic insolvency. The reason the company denied wrongdoing is because it, officially, had little clue as to the potential illegalities of dealings it was involved in but knew little about.

Myth 3: Saying “no comment” is one of the worst things you can do. Fact: Saying no comment may be the most prudent course of action given a particular situation, such as not having enough information or being unclear about the situation. Here’s a recent personal example.

Myth 4: An organization with a poor reputation will suffer from poor crisis management. Fact: Research has shown no difference in audience perceptions pre- and post-crisis involving an organization that has a bad reputation and which also poorly manages a crisis.

Myth 5: Organizations must behave transparently to reduce perceptual damage. Fact: Duke University is still embroiled in litigation after it arguably acted rightly and openly after allegations that members of its lacrosse team raped and abused a prostitute. Transparency can be of marginal use when larger agendas are at play.

Myth 6: The Tylenol crisis of 1982 is a model crisis response. Fact: Each crisis is different and there is no one-size-fits-all approach to crisis management.* Tylenol had many variables at play, such as the fact that it was the victim and not the perpetrator, in the crisis. Moreover, Tylenol, despite its open communications with its publics, was criticized by the news media.

Myth 7: Organizations should avoid denying responsibility. Fact: If an organization is being falsely accused of something, it makes little sense to admit to wrongdoing. Moreover, admissions of wrongdoing are certain ammunition in subsequent litigation.

Myth 8: Organizations should empathize with victims. Fact: See #7.

Myth 9: Poor crisis management will impact the bottom line. Fact: Fiscal realities can be impacted by any number of variables, including responding with the best of intentions. While helping to navigate what has been described as one of the worst crises in the history of the University of Nevada, the college where I worked — accused, mostly falsely, of all manner of misdeeds — had a banner fund-raising year in part because some people were likely sympathetic to negative and bloated media coverage.

Myth 10: Poorly managed crises negatively impact brand images. Fact: Most crises fade quickly. Even high-profile crises have a relatively short-term shelf life, and most brands successfully survive crises despite all levels of criticism. There’s a reason Tiger Woods is no longer dominating front pages: He’s old news.

*Eric Dezenhall discusses this point in length in his book Damage Control.

EDIT February 17, 2010, 1:54 p.m.: Tiger Woods just announced he will be holding a press conference in the near future. In my view, this is a mistake, as it is just after he has been successful in reducing his controversy. He now runs the risk of bringing it back to light.