In the News–Crisis Management
Crisis of the Week: Kiss-and-Tell Fears After Adult Friend Finder Breach
Ben DiPietro, The Wall Street Journal, June 1, 2015
The crisis this week is the one involving Adult Friend Finder, the hookup dating site that suffered a data breach that exposed its users’ sexual secrets. Among the data allegedly stolen were details about the sexual preferences of the site’s members, including whether they were married. The U.K. television station that broke the story said it found a database of 3.9 million site members on a hacker forum.
The company that runs the site, FriendFinder Networks Inc., last week issued a statement saying it was investigating the reports, taking steps to protect members’ information, had hired a data security firm and was working with law enforcement agencies. It wouldn’t confirm the full scope of the breach until its investigation was completed, but said there was no evidence of financial information or passwords being compromised.
Looking at the company’s statement and its actions to date, how well has it responded to this crisis? Where is its response falling short? What more can the company do at this point?
Davia Temin, president and CEO, Temin and Co.: “This is crisis management at the shadow fringe of commerce. While pornography, and other businesses involved in sex trade such as Adult Friend Finder, have always been the ‘early adopters’ of new Internet and social media technologies, they are woefully late to the game of crisis management. For a site that one tech expert calls ‘one of the most heavily-trafficked websites in the world,’ and that collects some of the most private and potentially embarrassing data in the world, the owners of the site have made every crisis management mistake in the book regarding cyber data breaches.” […read more]
Crisis of the Week: Ice Cream Recall Snags Blue Bell
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, April 14, 2015
This week we look at Blue Bell Creameries L.P. and how it is handling a recall of ice cream products linked to a listeria outbreak. Three people died in Kansas, and while health officials in Kansas say listeriosis didn’t cause the deaths, they said the tainted ice cream products might have been a contributing factor. Illnesses linked to the tainted ice cream products also were reported in Texas.
The company has issued three product recalls, temporarily shut down the plant where the products were being made, and the chief executive issued a statement apologizing and saying the company is working with federal inspectors as they conduct their investigation. The crisis experts evaluated the company’s actions and statements for how effective they were in assuring customers and telling the company’s side of the story.
Davia B. Temin, president and CEO, Temin and Co.: “From all their public actions, it does not look as if Blue Bell has sided with their customers–only themselves–breaking a cardinal rule of crisis management. Listing their errors: One, they were behind the story, not in front of it; it looks as if they were forced into action. Two, once they finally did institute a recall, it was overly complicated. Forcing customers to ‘find the SKU number’ on the bottom of the container to see if their ice cream is safe is onerous.
“Three, similarly troublesome are Blue Bell’s cascading recalls. Clearly the company limited its recalls too narrowly at the outset, and then has had to issue multiple recalls. Every time they are forced to issue a new recall, their credibility is compromised. Listeria is a serious illness; it would have been far better to issue a broad recall and then reintroduce products swiftly and with assurance.
“Four, most of their communications are bloodless, ‘corporate-eze’ and ineffective. There appears to be little remorse, or human touch. Even the letter from their CEO feels as if it were written by a lawyer. Of course lawyers must weigh in, but even if lawyers do write the CEO letter, it must not read that way. A little humanity goes a very long way in a crisis, and Blue Bell seems not to have figured that out soon enough.”
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Staying Ahead of the Game: The Steps to Effective Crisis Communications Planning
PR Newswire, March 12, 2015
Don’t wait for a crisis to hit before considering your communications strategy. Getting caught off guard can mean the difference between success and failure, especially if your competitors are quick to respond. Take action today to ensure tomorrow’s stability.
View PR Newswire’s on-demand webinar to obtain the tips and tools needed to craft an effective crisis plan. Davia Temin, CEO, Temin & Co. and Colleen Pizarev, VP, Communications Strategies, PR Newswire discuss: creating a crisis plan and messaging effectively; the role of boards in crisis; listening best practices and your social media response. […read more]
View the slides:
Uber Needs A Crash Course In Crisis Management
Caroline Fairchild, LinkedIn, March 18, 2015
Uber is no stranger to PR disasters. Whether it’s surge pricing during a hostage crisis in Sydney, accusations of rape by drivers in India or questions over the security of users’ data, the start-up has already weathered its fair share of storms. The latest source of choppy waters? An investigation in South Korea that claims Uber drivers are breaking communication laws.
As the company ventures into new services, cities and countries, it will inevitably ruffle some feathers and make more missteps. Yet experts told LinkedIn it’s puzzling the company doesn’t already appear to take crisis management seriously. If the disruptive car service doesn’t shape up quickly, crisis management executives and consultants tell LinkedIn, it’s only a matter a time before Über gets disrupted itself.
“The arrogance with which the service is put forth just doesn’t jive,” said Davia Temin the founder of Temin & Co., a crisis-management firm. “They key is being able to disrupt with an attitude of humility, even kindness. If you can do that, you would be cut a huge amount of slack that Uber is just not getting right now.” […read more]
Crisis of the Week: Williams, NBC Between Iraq and a Hard Place
Ben DiPietro, The Wall Street Journal’s Risk and Compliance Journal, February 17, 2015
NBC News, anchorman Brian Williams and NBC parent company Comcast Corp. are the subject of this week’s crisis. Mr. Williams first removed himself from the network’s nightly newscast–and later was suspended without pay for six months–following his admission he may have “misremembered” whether a helicopter he was flying in during a reporting trip to Iraq was attacked by missile fire. The resulting criticism prompted the network to launch an internal investigation, still ongoing.
The experts were asked to evaluate both the statements of NBC and Mr. Williams. How effective was each in handling the crisis? Where did their statements fall short? What did they do well? What should they each do next?
Davia Temin, chief executive, Temin & Co.: “NBC/Comcast was swift and perfectly on-point in their crisis response to Williams’ admission of lying. [NBCUniversal Chief Executive] Stephen Burke’s comments were textbook, and the six-month suspension without pay and Williams’ name taken off the program have demonstrated that NBC shares the public’s sense of outrage. This is only mitigated by the possibility that they knew of the lie beforehand.” […read more]
Why female CEOs are staying quiet on activist investors
Caroline Fairchild, Fortune, February 12, 2015
Do activist investors really see women CEOs as easier targets? That’s the question that media pundits and experts alike are abuzz with as six prominent female CEOs fend off bids from aggressive activist investors. Most recently, GM CEO Mary Barra is feeling pressure from an activist who is trying to get on her board. She joins Pepsi’s Indra Nooyi, Yahoo’s Marissa Mayer, DuPont’s Ellen Kullman, Mondelez’s Irene Rosenfeld and HP’s Meg Whitman who are also under pressure from the likes of activists.
With only 25 female CEOs in the Fortune 500, it’s hard not to pause and question if gender targeting is really going on. But rather than join the discussion on whether or not they think these activists are targeting them on gender grounds, all the executives are staying quiet. None of the women have come out publicly on the issue and all of them either denied Fortune’s request for comment or didn’t respond immediately. Why?
Call it good common sense. Becoming the “poster child” for any issue — gender aside — when your company is under pressure to perform is the last thing any CEO should do, a group of experts told Fortune. Commenting publicly on the issue would not only put these women in a position of weakness, but could encourage activist investors to see their gender as a barrier to them being an effective leader.
“Chief executives are interested in maintaining both their power and reputation,” said Davia Temin, the founder of Temin & Co., a crisis-management firm. “There would be no benefit in acknowledging your gender. In fact, a lot of detriment could come of that. A female CEO doesn’t need to remind anyone else that she is a woman seeking the very same leadership goals as a man.” […read more]
Crisis of the Week: Sometimes You Feel Like a Nut
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, December 15, 2014
This week’s crisis assignment is nuts—literally. We asked our experts to look into how Korean Air Lines Co. handled the incident in which Cho Hyun-ah, a company executive vice president—and daughter of the airline’s chairman—ordered a plane that was set to take off back to the terminal after one of the flight attendants failed to follow the airline’s protocol for serving macadamia nuts.
The incident, which required the plane to return to the terminal and delayed takeoff by 20 minutes, led to extensive criticism of the airline, the resignation of the woman and an apology by the airline’s chairman, Cho Yang-ho, who said the incident reflected on his failures as a father. It also led to a sharp increase in sales of macadamia nuts.
Davia Temin, president and chief executive, Temin and Co.: “Mixed messaging rarely works when issuing an institutional apology. And since, these days, perception usually trumps reality, it really doesn’t matter much whether the mistake made was nuanced–the apology can not be. To assuage rampant public outrage on social media, and this new ‘mean age’ we are all living in, a public apology must be clear, seemingly heartfelt, and unequivocal. That is exactly what Korean Airlines did not do.” […read more]
When in Crisis, What Should Boards Do?
Rob Meiksins, Nonprofit Quarterly, October 9, 2014
In recent weeks and months, there have been a series of crises in organizations ranging from data breaches at Target, Michaels, and Chase to the sexual abuse scandals at Penn State and domestic violence in the NFL. In many of these cases, although the boards of directors were not blamed directly, they often came under fire for not having paid close enough attention to see the crises coming or for reacting too slowly. It is no surprise, then, articles have begun to appear addressing how a board should act before, during and after a crisis.
Forbes’ online news outlet has published a list of 10 things boards should do, authored by contributor Davia Temin, who is listed as a leadership and crisis expert. Although her comments address for-profit corporations for the most part, the lessons can also be applied to nonprofit organizations. […read more]
Crisis of the Week: How Well Did Tesco Account for Itself?
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, September 29, 2014
Since news of the shortfall was made public Tesco has suspended four senior executives and called in outside auditors and attorneys to investigate. It also moved up the starting date for its new chief financial officer, who was supposed to take over in December but who now is starting immediately. We asked our crisis and reputation experts if the actions taken by Chief Executive Dave Lewis—who assumed the top job just last month—are sufficient to quell the negative publicity.
Davia Temin, president and CEO, Temin and Co.: “When companies are this troubled, new issues keep bubbling up, as this latest one seemingly did. And that is in direct conflict with crisis management rule 101–get all of the bad news out right away, don’t let it trickle out–so that once it is all in the open, you can focus on the fixes.” […read more]
In NFL Probe, Even FBI Chiefs Risk ‘Motivated Blindness’
Jeff Green, Bloomberg, September 24, 2014
It’s becoming a time-worn script. Company gets in trouble. Public gets upset. Company hires former head of three-letter agency or former prosecutor to get to the bottom of said trouble in thick report. Public forgives.
The National Football League’s decision to hire former FBI Director Robert Mueller to examine its handling of a player’s domestic violence case mimics companies such as General Motors Co. and BP Plc in hiring high-profile outsiders to blunt criticism by airing their dirty laundry. Demand for such investigations has spawned a multi-million business as 55 percent of companies last year said they had at least one internal investigation requiring the assistance of outside counsel, according to an April report on litigation trends by Norton Rose Fulbright.
The question is how impartial these investigation can really be — or, more broadly, how much truth do they want to find?
“It’s always a challenge when you’re trying to shine bright lights on what’s going on in dark rooms,” said Davia Temin, head of the New York-based crisis management firm Temin & Co. “The question always is, how far does the public blood-letting go?” […read more]
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