During settlement of the Exxon Valdez case, an Exxon spokesperson commented publicly that the company was paying hundreds of millions of dollars for land that was worth nothing
to begin with. Those regrettable words communicated to stakeholders that Exxon execs were concerned only about their bottom line. They also spoke volumes about the spokesperson's
lack of objectivity and the dire need for outside counsel during the lowest, most crucial moments of the crisis.
While most large businesses have long understood the value of enlisting outside crisis experts, many smaller corporations and nonprofits rely on in-house communications staff
to manage crises due to the prohibitive costs involved in retaining an agency. However, for organizations of any size, calling in an outside expert on a short-term basis can be a
cost-effective method of procuring crisis expertise, protecting the integrity and reputation of the organization and enlisting a reliable source of neutral counsel.
If your organization faces a crisis that could potentially have a material impact on business, it's smart to call someone outside says Lisa Wyatt, VP of public affairs and
marketing for Washington Hospital Center/MedStar Health. "You don't have to put these people on retainer for three months. You might pay $2,500 or $3,000 for a day but when your
reputation is at stake, what's a couple thousand dollars?"
Importing Impartiality
Wyatt, a veteran crisis manager and author of How to Deal with Crises and Conflicts, makes a habit of calling in third party experts on crises she handles for the Hospital
Center. During a shooting at the hospital, one of Wyatt's first calls was to Tom Buckmaster, former chairman of Hill and Knowlton, Washington, DC. "He was a third party,
objective individual to guide us on decisions made that day," Wyatt attests.
That kind of objectivity is crucial when a crisis first strikes or when an existing crisis takes a turn for the worse, says Lee Duffey, president of Duffey Communications in
Atlanta. "Doctors don't treat themselves and smart lawyers don't represent themselves," he points out. "People inside a company are very deeply entrenched in their own
corporation. When a crisis happens, it's an incredibly emotional thing. People get angry, hurt and much more emotional in their decision-making."
An outside crisis expert can come in at ground zero to offer detached advice on everything from surviving the initial onslaught to creating a strategy that steers the crisis to
completion. Short-term consultations ensure maximum neutrality.
Gary Thompson, EVP at Schwartz Communications in San Francisco, was called in to counsel an insurance company whose agents had denied coverage to a woman who had lost her
entire family in a fire. The press was having a field day with the circumstances.
"The company asked me to media-train its people," explains Thompson. "I said I could, but what's [your] intent? To teach agents to spin the story and get the press to say
something good about a bad situation?" Instead, Thompson questioned the agents about their intent and the intent of their corporate values. Thompson's counsel: "Maybe it's not
media training you need but learning to work through your corporate values." His short-term relationship with the company allowed him that degree of objectivity.
The Court of Public Opinion
"Attorneys always feel 'no comment' is essential to preserve the legal position," says Helene Solomon, a principal with Bishoff Solomon Communications whose experience
includes handling shootings at Planned Parenthood clinics. Hiding behind "no comment" is guaranteed to lose points in the court of public opinion but internal PR practitioners may
feel they don't have the clout to dispute lawyers.
"If you feel outgunned by legal counsel," says Mike Heron, national VP for public affairs at the American Cancer Society, "hire H&K or someone with peerage to explain that
[a hush-hush legal strategy] may save a couple of bucks in liability court but will [cost] millions in esteem."
Outside counselors don't hesitate to ask tough questions internal staff may be unwilling to voice. Lloyd Trufelman, president of Trylon Communications, a PR firm dedicated to
media companies says, "someone has to look the CEO in the eye and say, 'if you don't get this news out you're gonna get creamed.' Someone inside the company probably won't do
that."
(Contacts: Lee Duffey: 404/266-2600; Mike Heron: 404/329-7909; Gary Thompson: 415/512-0770; Lloyd Trufelman: 212/725-2295; Lisa Wyatt: 202/877-6305; Helene Solomon, 617/557-
4533)
Inside Maneuvers
Outside experts can be an invaluable resource in a tough situation. But some crises must be handled internally. In high-risk organizations like airlines, identifying potential
crises is a no-brainer: plane crashes, hijackings, bombings. News of disasters spreads too quickly to allow a company to bring an external expert up to speed, says Schwartz's
Gary Thompson. "You've got to handle it inside."
If your internal PR staff is adept at crisis management, you may consider using an outside expert for behind-the-scenes issues. "Tom's role was to supplement [my team]," Wyatt
says of Tom Buckmaster's consultation during the Washington Hospital Center shooting. But "most of the decisions were made by me."
Never outsource the role of corporate spokesperson or media liaison unless your team has reached its limits. "If the phone rings and a reporter says, 'where's Bob?' and an
outsider says he's been gagged, it's not good," says Trufelman. If your internal media relations staff has established relationships with reporters, they should maintain them
during the crisis.
"The client is the best spokesperson for their company," says Peter Morrissey, president and CEO of Morrissey Communications. "Effective crisis communications [stays] in the
background."
(Contact: Peter Morrissey: 617/523-4141)