Now that the immediate shock of Sept. 11 has faded a bit, for many, the anger and frustration we felt that day have had few outlets. So it isn't surprising that the media and
members of Congress have sought to release some of their anger on Argenbright Security, the private company charged with screening at 40 percent of the nation's airports,
including Logan, where two of the hijackers boarded planes.
To be fair, Argenbright Security did everything right: changed management, changed policies, and sat the new CEO down with Katie Couric and Diane Sawyer. The problem was it
was too little, too late. Prior management had built up a long and troubled history, so much so that even the new team from the UK-based parent company couldn't save the day. When
all was said and done, even those congressmen most opposed to the federalization of airport security had to admit that Argenbright's lapses were unacceptable. Argenbright's
"deathbed conversion" and scramble to do the right thing went for naught when Congress in the end agreed to hand over airport security to the federal government.
Congressional members dealt with their frustrations and anger by passing new laws. Most of the rest of us tried to assuage our frustrations by donating blood and/or money to
the Red Cross. We assumed that our donations would be put to use in aiding victims of the World Trade Center and Pentagon disasters. So when it was revealed that nearly half of
the donated money would go towards other Red Cross activities, donors howled. Too late, Red Cross execs realized the extent of their mistake and reversed course, but not before
serious damage had been done to the venerable institution's reputation. However, the Red Cross was far better able to distance itself from former management than was Argenbright,
in part because of the internal structure and culture of the organization.
(Katharine Delahaye Paine is president of Delahaye Medialink, 603/431-0111. Image Patrol is based on a subjective content analysis of major news sources covering a crisis.
Comments are not intended to criticize the work of the company in crisis, but rather to illustrate the role the media plays in shaping the perceptions of various stakeholder
groups.)
Argenbright
HQ: Atlanta Company
Type: Subsidiary of Securicor
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Criteria
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Grade
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Comments
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Advice
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| Extent of coverage | D | Airport security is almost always a local story, so even if Argenbright didn't have the contract for security in a particular city, the local paper still covered the story, contrasting their security with others. The overall reach was further increased when Argenbright's new CEO made the round of the morning TV shows. |
Get it all over with in one fell swoop. If you know you've got bad press coming, try to concentrate the news into a couple of days. And remember, just because you have operations in some cities, the coverage is bound to spread to places you haven't thought of yet. Don't ignore the local reporters; they'll make your life miserable. Fix the problem, hit the networks, answer all calls and move on with the business. |
| Effectiveness of spokespeople | F/A | At first, Argenbright ducked the media and "wasn't available for comment." But in short order UK-based Securicor took over the communications, and CEO David Beaton was quite effective. |
Like any responsible parent, when you see an offspring seriously damaging itself, you have to do the responsible thing and take control. Keep close tabs on your subsidiaries, because as we've seen often enough in these columns, you WILL be guilty by association. In this case, Securicor may not have had a lot of choice when the House Majority Whip called for management's removal. |
| Communication of key messages | C | Beaton did an excellent job of communicating Securicor's messages of stability and experience, effectively distancing the Securicor brand. However, throughout this process, the Argenbright brand has become, as Tom Delay charged: "synonymous with incompetence." |
Frequently in a crisis, a decision will affect multiple brands in an organization. While it is not uncommon to cannibalize one brand for the sake of another, make sure you take into account the consequences. |
| Management of negative messages | F | As we've said in the past, actions speak louder than words, and all of Argenbright's "words" of concern for passenger safety were for naught when its employees continued to let armed passengers through security check points, and another guard went missing for 20 minutes leaving an entry point at Logan unguarded. |
The only thing worse in a crisis than stonewalling is to say one thing and do another. Make sure that all employees buy into not just the words, but the culture and belief system behind the words, or else the problem won't go away. |
| Impact on customers | D | No one wants guilt by association, and anyone who hires Argenbright right now will come under close media scrutiny. Even the reputation of highly admired Southwest Airlines was called into question when they signed a contract with Argenbright to provide security at Baltimore's BWI airport. Argenbright's contract was suspended at Logan and only reinstated thanks to a cooperating judge, but its other non-airport contracts were being called into question across the Bay State. |
When a brand is this badly damaged, it will be hard to convince new customers to sign on. The only action they can take at this juncture is to work desperately hard to keep the clients they've got. |
| Impact on employees | F | No one wants to be vilified in the press, and the employees of Argenbright have taken more than their fair share of abuse. While the former felons and others with questionable backgrounds have gotten most of the publicity, there are no doubt good employees who need to be reassured that management believes in them |
Whatever the crisis, think of your employees first. Their actions and beliefs will shape the customer experience and unless they are on the same page as management, the company's reputation and financial health will be at risk. |
| Overall score | D | It took a letter from Congress to force Securicor into action, when they must have known from their due diligence, and certainly in the wake of revelations post-Sept. 11, that there were problems with their Argenbright subsidiary. While they did everything right, they waited far too long to take action. |
In most crises, the buck stops at management's desk and this was no exception. Securicor either didn't see, or ignored the warning signs that were clearly pointing to this disaster. This was a clear case where internal culture (high turnover, low wages, little training) directly contributed to the downfall of a brand. |
Red Cross
HQ: Washington, DC
Founded: 1881
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Criteria
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Grade
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Comments
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Advice
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| Extent of coverage | F | The change of course was news enough, but Bernadine Healy's very public departure was even more unusual for the normally quiet and discreet world of nonprofits, so there was no keeping the lid on this news. |
The unusual is bound to make news, so make decisions with that fact in mind. Take advantage of the attention to get your messages out there. |
| Effectiveness of spokespeople | C | No one doubted for a minute that the debacle cost Healy her job. Her replacement, Harold Decker drew praise from the normally skeptical media for his forthrightness and honesty. And Red Cross Chairman, David McLaughlin, was equally effective at being both apologetic and self deprecating - two characteristics that will always win the hearts of reporters. |
Being able to deal with the media effectively is a key element of success for any CEO in any organization, profit or nonprofit. And this was a great example of how saying the right thing, even if it's late, can save the day. |
| Communication of key messages | A | Both Decker and McLaughlin were clear about their messages: we heard you, we're sorry, we'll fix it. It doesn't get much better than that. |
The Red Cross used the attention it was attracting as a platform for Decker and McLaughlin's messages. They were a class act carrying out a classic crisis management plan. |
| Containment of negative messages | F | Unfortunately the outgoing Healy was stridently defiant as to her policy of holding back donations for other Red Cross uses, so that message came across loud and clear. |
In the face of overwhelming opposition from your customers/donors, you should at least appear to listen and respond. There is nothing that annoys people more than to think that their opinion doesn't count or that they are being ignored. |
| Impact on donors | B- | While some donors may have been surprised that all the money they donate does not end up in victims' hands, they at least now know the reality of charitable giving today. They can make better choices in the future. Will they continue to give money to the Red Cross? Probably, because it is essentially a local organization serving individual communities, but even the Chair had to admit he was worried. |
Donors are among the most difficult of audiences to deal with. They are notoriously fickle, pulling donations from organizations for minor issues they disagree with. However, when an organization is local, and the person calling you is a neighbor, it is hard to say no. So in any crisis, identify each and every constituency and communicate with each in its own appropriate way. |
| Impact on employees/volunteers | C - | It's always hard to be a volunteer for an organization that is under fire, but the shakeup at the top seems to have calmed a number of fears. |
If you have volunteers or employees under fire, you need to implement concrete steps to make sure that they still feel loved and appreciated. |
| Overall | C+ | While it remains to be seen if the Red Cross's reputation is irrevocably damaged by the debacle, chances are Decker and McLaughlin spoke up in time. |
Major action is always the best strategy during a crisis. Actions that send messages become the most powerful messages out there. |