In many crisis situations, we have some control over the timing and extent of the press coverage. For some, this is like a child playing with matches: when you're young, you don't get to play with them; when you get old enough, someone teaches you how to light campfires, candles, lanterns and all sorts of useful things.
Columbia/HCA is a good example. Characterized by one industry source as the medical equivalent of the Vikings raiding France, the company is known for its extraordinary profits and its aggressive demeanor during takeovers. Spurred primarily by a year-long investigative report by the New York Times, Columbia/HCA has been in the midst of a major scandal for months and has basically spent the last year ducking and dodging the media.
Finally, last month, Columbia/HCA replaced its media-naïve co-founder Richard Scott with a grownup. Within days of taking the reins, Dr. Thomas Frist was on the phone with reporters announcing sweeping changes. This was a classic case of handling crisis communications the right way. Not just saying: "We're going to do something," but actually doing it while at the same time acknowledging the flaws in corporate culture that led to the problems in the first place. While it is unfortunate that it took a federal investigation to prompt the change, the board and Frist should be congratulated on the way they confronted the problem and dealt with it.
An equally interesting confrontation is Isuzu's decision to take on Consumer Reports (granted it didn't have a great deal to lose). Isuzu filed a lawsuit against Consumer Union, which publishes Consumer Reports.
Sales of its Trooper were already slumping and some righteous publicity could only help but it was still a high-risk strategy. Isuzu has essentially drawn a line in the sand between sport utility vehicle enthusiasts (and other car enthusiasts who have long complained about Consumer Reports testing procedures), and Consumer Report, which is arguably the most respected brand in consumer testing.
It has 4.5 million readers and there are millions of others who use CU's Web page and books, spending billions purchasing what Consumer Reports recommends. They also avoid what Consumer Reports tells them to avoid. To try to impugn Consumer Reports' credibility is the equivalent of taking on Matthew, Mark, Luke, John and the prophet Mohammed.
The results are mixed. Isuzu has gotten its messages across, but Consumer Reports is a formidable adversary. The ultimate test will be which increased more, Trooper sales or Consumer Reports subscriptions.
| Criteria | Grade | Comments | Advice |
| Extent of coverage | B | Publicity peaked with Frist's announcement but seems to have finally begun to drop off, now that the problem has been addressed. | Lay low, do the work, respond if and when needed, then quietly go back to the reporters who drove the story with proof that the changes are working. |
| Effectiveness of spokespeople | F/A | Scott was the ultimate "no-comment" guy, which is why the negative press kept on coming. Frist came across as genuine, contrite and motivated to change. | Frist is a great spokesperson, but don't overuse him. And make sure the actions follow. Columbia needs to take the excellent work its doing with big gun media and make sure that it trickles down to the local level. |
| Communication of key messages | A | If the message was,"We've made a mistake and we're fixing it," it came across loud and clear. | Actions speak louder than words: Columbia now has to show that the change is getting the results they hoped for. |
| Management of negative messages | C | Unfortunately, the reason the feds are investigating is that things were so bad before. Those negatives aren't going away until the case is solved. | Keep the proof up front; purge the bad guys; and do something really positive about healthcare for the elderly when it's all over. |
| Impact on customers | C | No one can feel very happy about going to a chain of hospitals that are under federal investigation, or doing business with them. | If the rest of management is as committed as Frist is, the effect shouldn't be longterm. Make sure that the commitment isn't only skin deep. |
| Impact on investors | B | Lower profits vs. federal indictment? Execs made the right choice. | Be very forthcoming about upcoming profit numbers and the real impact. Emphasize the long-term and financial benefits of not having employees keeping double records and dodging the feds. |
| Impact on employees and prospective employees | A | Every employee must be feeling better about the company's new direction. | Again, actions speak louder than words. They've taken the first and most important step at the top. Make sure the trickle-down is consistent. |
| Overall score | B | A good example of bad boys turned good. | Give a raise to whomever managed the announcement. |
Background Check
Columbia/HCA:
Revenue: Close to $20.2 billion
Corporate Headquarters: Nashville, Tenn.
Contact: Trish Olsson, 615/344-2211
Number of hospitals and outpatient surgery centers in 36 states: 342 hospitals/150 outpatient centers;
Core PR Spokespeople: Company wouldn't disclose staff list
| Criteria | Grade | Comments | Advice |
| Extent of coverage | B | If they were trying to get maximum exposure, they succeeded. But did it really want EVERYONE to be reminded that one of the most widely believed testing services said its cars tip over? If Isuzu was capitalizing on the push for safety laws and wanted the publicity, it got it. | It probably bought sympathy from the sport utility drivers, but made everyone else nervous. |
| Effectiveness of spokespeople | B | Isuzu should be congratulated for its use of testing and automotive experts who corroborated its findings. | CR needs to train its people not to sound like they have lawyers pointing guns to their heads. Isuzu people were far better spokespeople. |
| Communication of key messages | C | A mixed bag. Granted, Isuzu got the word out that its sport utility vehicles (SUVs) are safer than CR would have us believe. | Isuzu's messages were consistent, just not necessarily credible. |
| Management of negative messages | D | The "tipping" incident is much more widely known as a result. A delicate balance, which CR played to the hilt. When something doesn't work, blame some other factor. | Statistically, Delahaye finds that mea culpa is a better approach. |
| Impact on customers | B | There continues to be a lot of talk regarding the Isuzu-rollover issue in Internet discussion groups - as well as CR having its own site dedicated to this issue (http://www.consumer.org). However, the participants are no longer as interested in discussing the pro- and-con issues as they were a year ago. The overall consensus is that Trooper buyers don't drive SUVs as sports cars and for those consumers for whom safety comes first, they wouldn't buy them before and still won't buy them now. | Most consumers are probably not convinced. Keep proving. And both companies should keep an eye on the Internet discussion groups in order to be on top of any potential flare-up or further talk on this issue. |
| Impact on employees and prospective employees | B | Chances are, Isuzu employees all believed that CR was wrong in the first place and they probably felt it was about time that their employer fought back. | Leverage the morale boost and make sure the employees are consistently reinforcing the message that sport utility vehicles ARE safe. |
| Overall score | C+ | For a risky battle, Isuzu came out as well as can be expected. | Pick your battles VERY carefully. |
Background Checks
Isuzu:
U.S. Corporate Headquarters: Cerritos, Calif.
Contact: Monika Earle, 562/699-0500
Founded: 1980
Core PR Spokespeople: Daniel McCue, Susan Von Der Ahe, Bryon Farnsworth, Mike Vaughan, Monika Earle
Most recent campaign: the 1998 Rodeo
Consumer Reports:
Staff: 460, including 50 on the editorial side (design staff as well) and 150 on the technical end;
Products Reviewed Annually: Thousands in 66 product stories
Contact: Rana Arons, 914/378-2434