Part One of Two
There are a whole lot of corporations and business figures today (WorldCom, Adelphia, Martha Stewart, Jack Welch) that have an awful lot of explaining to do. Restoring lost
trust is among the toughest jobs in PR, but it is also the oldest. Ivy Lee essentially invented the profession in the early 20th Century with his miracle redo of capitalism's
original villain, John D. Rockefeller. Richard Nixon and Michael Milken demonstrate that "at least in the U.S., almost anyone can be rehabilitated, given time and effort," says
Peter Verrengia, co-chair, Corporate Credibility Advisory and GM for Fleishman-Hillard's New York office. It's a lot like coming back from a disabling addiction; it takes internal
examination and external amends. Perhaps it requires its own twelve-step program:
1. Make Trust Deposits: You can't restore a reputation unless you had one in the first place. Before disaster strikes, "make deposits in the goodwill bank account," says Andrew
Gilman, president, Commcore Consulting Group. Companies should have good relations with the press, a corporate mission statement that embodies ethical practices, and goodwill with
workers and the public.
Ron Bottrell, senior consultant, Dome Communications, points to both Sara Lee (meat contamination case) and Johnson & Johnson (tainted Tylenol) as companies that bounced
back because they had previous records of good corporate citizenship. Rebounding from a setback to reputation "depends on what [you] did prior to the situation," he says. These
are the "trust deposits" from which a troubled company and public figures must draw when they falter. Having reporters and a public that believe in you to begin with is the best
preparation for bouncing back. "The antidote to bad news is not good news; it's relationships," says Gilman. Don't just call journalists when you need them, says Mike Paul,
president, MGP and Associates PR. Get to know their beats so that you can serve as a persistent resource. Then, when you do have to place bad news with them, you stand a better
chance of being handled fairly.
2. Find the Truth: The PR pro herself must be satisfied she knows the truth about a situation before she or the company faces the press, and that takes investigation. "One of
the reasons clients get in trouble in the first place is they have been running from the truth," says Paul, and he finds himself in the role of confessor. Getting corporations and
people to admit their transgressions to themselves often is a matter of "taking it outside of their world where they are comfortable lying," says Paul. He will ask a client: "If
you know you did something wrong, what would you want your son to say to you a year from now?"
Isolate the problem, says O'Brien. In communicating publicly, be able to name the flaw, whether it was a specific corporate practice, an executive or team within the company or
perhaps even a character lapse. Diagnosing the problem lets you construct a remedy and also argue, whether the lapse is personal or systemic, that the whole is larger and stronger
than the individual error.
3. Look at the Horizon: Crisis management may be about covering butts (or at least keeping them out of jail), but when it comes to reputation, "public opinion is more important
than a court of law," Paul argues. Reputation-building often requires giving more rather than less information, explaining or contextualizing action in ways that may well expose a
person or a company to some liability. Be clear which path you are pursuing, warns Verrengia. Decide which audience and jurisdiction you really want to address. "For some clients
it is more appropriate for them to go to jail for three months and tell the truth," says Paul.
Before taking corrective or remunerative action, decide "where you want to be six months or a year from now, and that should govern your actions," adds Gilman. Hasty decisions
in the midst of crisis, such as firing key personnel, can trigger lawsuits, and simply following another company's crisis strategy could cause unforeseen problems in your specific
circumstance.
4. Find the Right People: Almost all PR pros come up against the lawyers, who want to limit disclosure. Any reputation doctor walking into a crisis needs to identify who has
the top executives' ear. Is risk management calling the shots? The lawyers? There will always be people around the client who tell him he can get away with it. Botrell advises the
PR pro to find the reputation champion, the key executive who can referee the lawyers' concerns but "who has the confidence of the CEO, who can say things no one else can and not
get fired for it."
5. Self Immolation: The company or the figure involved must be the bearer of the bad news, the one to make the disclosures, not the press. For the PR pro, this speaks directly
to Step 2, making sure that you have the whole truth of the matter so that the process of rebuilding a reputation is not derailed by subsequent disclosures. For an individual,
putting the bad news out is not only the honorable thing to do, but it helps him or her establish the context for the error. When Bridgestone/Firestone had to work its way back
from the infamous Ford Explorer tire blow-outs in 2000, the company decided to keep its own CEO, John Lampe, front and center because "he is the perfect example of someone who
speaks without spin," says Chris Karbowiak, VP, public affairs. "That was really important to us. We had been perceived wrongfully as not being open and transparent. When you look
at John, you know that what you see is what you get." Lampe himself did the endless one-on-ones with the press, analysts and even the tire dealerships to win back trust on all
fronts.
6. Nothing But the Truth: In making public admissions and apologies or voicing concern for victims affected by a corporate error, "Don't go beyond the facts; don't speculate,"
says Gilman. Stick to what you know for sure about a situation. And don't equivocate, adds Paul: "If you are apologizing for something and you have any 'buts' in your statement,
it is not an apology." Paul points to crime show host John Walsh as an example of defusing criticism by taking the blame. When puckish radio host Howard Stern asked Walsh about
rumored womanizing, Walsh regretted without qualification being a bad husband and a womanizer. "[Stern] had nothing else to talk about," says Paul.
Editor's Note: Next week, Steps 7-12, or "The Road to Recovery is Paved With Pain."
(Contacts: Ron Bottrell, 312/467-0760; Andrew Gilman, 202/659-4177; Chris Karbowiak, 615/872-1497; Tim O'Brien, 412/854-8845; Michael Paul, 212/595-8500; Larraine Segil,
310/556-1778; Peter Verrengia, 212/453-2218)
Salt in the Wounds
When fighting bad press, absolutely do not:
- Respond to every petty criticism or allegation, every negative story or taunting Web page.
- Assume a local problem can be contained. When Coke made some kids sick in Brussels, the company denied the facts, offered no remedy, and assumed the blemish was limited to
Belgium. It became a brand problem throughout Europe and an object lesson in how not to handle a crisis, says Segil - Blame others or circumstances for the transgression. A good reputation is grounded in being a good example.
- Punch the journalist. Gilman recalls having to talk an executive out of driving to a nearby newsroom and socking the reporter in response to a negative story.