Einstein's theory says that for every action there is an equal and opposite reaction. But when it comes to the action the Y2K bug could have on your corporate reputation, your reaction better be a whole lot more than equal.
Think dramatic.
The example of the Chinese government ordering airline executives to be flying when the clock strikes midnight on Dec. 31 provides the kind of corporate reassurance that companies need, said David Fuscus, VP of communication for the Air Transport Association. The organization represents all major U.S. airlines and its members transport over 95% of all the passenger and cargo traffic in the U.S.
The real Y2K threat to many corporations, said Fuscus at the Feb. 22 PR NEWS and APCO Associates' "Strategic Communications for the Year 2000 Crisis" seminar, is not that systems will fail but that businesses will lose customers.
To combat image fallout, the public wants details, not slogans, Fuscus said. His industry, which operates under a very slim profit margin, has a low tolerance for crises. "Any incident, even a small one, hurts." For example, when a TWA flight crashed in New York several years ago, public perception plunged to a low of 66 percent. It's now back up to 86 percent, according to ATA statistics.
But the association doesn't rely on numbers alone to cement the industry's reputation. ATA's Web site, http://www.aviation2000.org, provides detailed information on the industry's Y2K readiness in laymens terms for journalists and the flying public. "People want info - we're giving it," says Fuscus.
ATA also will monitor public opinion of the airline industry frequently in the coming months. Despite the public confidence rating at a high of 86%, a recent public poll showed that 51% of Americans will not fly Dec. 31, 1999-Jan. 1, 2000. ATA also will work with the national press and media in 20 regional markets.
Industry trade associations can be an essential partner in Y2K reputation management, said Fuscus. "This is the perfect opportunity to use the tried-and-true PR technique of using third-party endorsements," he said.
In the airline industry, individual carriers are co-branding their Y2K preparation communications so that the industry speaks with a single voice, making it difficult for the media to be hypercritical. The reputation of the banking industry is also at great risk from public panic, Nikki Waters, executive VP of marcom at Star System Inc., a network which links financial institutions and ATMs, explained that the company's Y2K communications effort launched in 1996 includes:
- a detailed description of the company's testing and timeline;
- monthly updates on preparations for Y2K;
- information on its Web site, http://www.star-system.com;
- articles for consumer newsletters;
- quarterly press releases on readiness progress; and
- a marketing campaign featuring brochures, position papers and a crisis manuel.
Since customers don't trust a Pollyanna reassurance that "we're ready, nothing will happen," Star Systems provides practical advice, suggesting that consumers keep copies of recent bank statements and ATM receipts. "It is not necessary to take out [of the bank] six months worth of funds," says Waters.
Frank Mitchell, Y2K media relations manager for Ameritech, said a proactive Y2K communications plan positioned his company as an industry leader. According to his Lexis-Nexis search, media coverage of Y2K tripled from January 1998 to January 1999, and that coverage will only increase in the year ahead, so get out in front of the story.
"Make sure your informatino to the media stays accurate as the numbers change," Mitchell said. Ameritech's reputation has actually blossomed in the face of Y2K as they have courted media attention. "We invited media analysts to tour our facilities" to watch the Y2K readiness tests themselves, Mitchell said. (Ameritech, 847/248-6155; ATA, 202/626-4172; Star System, 619/238-8511
| How Aggressive is your Y2K media outreach effort? | |
| Very aggressive | 8.47% |
| Agressive | 22.03% |
| Not Aggressive | 69.49% |
| My company is very well prepared in terms of its communications on this issue | |
| Strongly agree | 10.53% |
| Agree | 34.21% |
| Disagree | 44.74% |
| Strongly Disagree | 10.53% |
| Survey of PR NEWS Y2K Seminar attendees. | |