Post on 02-Jul-2015
Na$onal Investor Rela$ons Ins$tute
Richmond
November 16, 2012
Joergen Geerds Photography, Astoria, NY
Employee Violence
CRT/tanaka’s Crisis Experience
2
Product Recall
Environmental Protest
Union Campaigns
Controversial Issues
Accidents
No Excuses § Companies seen as lacking in preparaBon are punished in the market
§ Investor Rela:ons Insight study (750 in IR) reports 66% of companies with plans in place – 50% conduct drills
§ 53% of IR teams don’t take part (another 7% weren’t sure)
Damage to Brand and ReputaBon
§ IR ranked such damage as high in AON’s Risk Management Survey 2011 -‐ #2 in Retail Trade
§ Retail Trade is 73% ready (mid-‐point readiness)
§ 0% reporBng loss of income (may have inflated readiness rank)
Investor PerspecBve
3
Most Significant Crisis w/in 5 years
Crisis experiences provide insight
Accenture study tracks share price to indicate reputa:on impact • Figure 3 -‐ ReacBve
Impacts Can Be Significant
- Figure 3. Tracking Company 3 share price following crisis event 1.10
1.05
1.00
0.95
0.90
0.85
0.80
1 Feb 15 Feb 15 Mar 29 Mar 09 Apr 12 Apr 26 Apr
Normalized Company 3 Share Price Normalized Industry Index
+ Figure 4. Tracking Company 4 share price following crisis event 1.30
1.25
1.20
1.15
1.10
1.05
1.00
0.95
0.90
0.85
1 Oct 15 Oct 29 Oct 12 Nov 10 Dec 26 Nov 24 Dec 7 Jan 21 Jan
Normalized Company 4 Share Price Normalized Company 4 Share Price Normalized Industry Index
• Figure 4 -‐ Crisis Plan, addressing issue and responding with extensive communicaBons
Normalized Company 4 Share Price
Normalized Industry Index
• Crisis can spread like wildfire on social channels
• NegaBve menBons during crisis impact search results and brand senBment
• Monitoring brand senBment during and post crisis is a criBcal funcBon of PR
How Crisis Spreads Online Within 24 Hours
CRISIS HITS
0 Hour
Hour 6
Hour 12 Hour 18 Hour 24
Micromedia Sharing Editorial
Blogs Search
Mainstream
The Social Media Challenge
Crisis Response Methodology
Rapid Response Plan
Social Media SWAT Team
Frequent & Consistent Communica$ons
Play Offense
8
Issues Management
Mindset
Analysis § Review risk assessment reports from a
communicaBons perspecBve. IdenBfy gaps, needed resources and acBon steps to address the top threats
§ PrioriBze threats in order to frame training needs
Build the Capability § Build the tools we need to address an issue rapidly
to include issues management web portal, playbook
§ Clearly define roles and responsibiliBes to improve speed of response
§ Develop a social media strategy to the core threats
Create a Crisis Response Mentality § Conduct regular drills and training sessions with the
crisis team and engage senior leaders in the process § Track issues and make adjustments to your crisis
plans as needed § Prepare your spokesperson to effecBvely
communicate the core key messages during a crisis
CRT/tanaka’s Approach
9
Likelihood of occurrence
Impo
rtanc
e
Crises, Risk Mapping
v
Increase PR efforts to generate posiBve menBons online post-‐crisis. 72%
Posi$ve/Neutral Online Sen$ment
Network SoluBons: Managing Online ReputaBon
10
• BBB’s reputaBon was called into quesBon by a naBonal television newsmagazine accusing BBB of running a “pay for play” system
• The report highlighted a mistake made by a local BBB, which was scammed and incorrectly accredited and rated highly a non-‐existent company named Hamas ajer the Middle Eastern terror group
• CRT/tanaka’s crisis response team was engaged to address the iniBal issue of the network television story and to manage the process of responding to the crush of social media and other tradiBonal media inquiries ─ A microsite was established for media and the public to learn the facts about BBB’s policies and to address quality issue
• Following the crisis, preliminary polling affirmed consumer value of BBB and its business reviews and raBngs
BBB: Crisis CommunicaBons
11
12
“It takes 20 years to build a reputa$on and five minutes to ruin it. If you think about that, you'll do things differently.”
-‐ Warren Buffet
80 Professionals
$12+ million in fees
Loca$ons Richmond New York Los Angeles
Washington, D.C. Norfolk
Four Specialty Areas
Consumer Health & Healthy Lifestyle Food/Beverage/NutriBon
Corporate/B2B
Agency Snapshot
13
Crisis Communica$ons
Interac$ve/Mobile
Crea$ve Design
Branding
Mobile Marke$ng
Cause/CSR
Event Marke$ng
Media Rela$ons
Social Media
Financial Communica$ons
Special CapabiliBes
14
whatcanbe
Clients – ParBal List
15
Na$onal Investor Rela$ons Ins$tute
Richmond
November 16, 2012
Joergen Geerds Photography, Astoria, NY