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