http://www.bulletproofblog.com The blog on crisis communications Fri, 30 Jul 2010 17:06:27 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 http://www.bulletproofblog.com/2010/07/19/bulletproof-interview-special-%e2%80%93-paul-equale-on-the-impact-of-financial-regulatory-reform/ http://www.bulletproofblog.com/2010/07/19/bulletproof-interview-special-%e2%80%93-paul-equale-on-the-impact-of-financial-regulatory-reform/#comments Mon, 19 Jul 2010 13:27:10 +0000 Michael Robinson http://www.bulletproofblog.com/?p=3403 continuing series of Bulletproof Blog™ video interviews with thought leaders across multiple disciplines and industry sectors, I recently sat down with Paul Equale, President of Equale and Associates, to discuss the most significant impacts of impending financial regulatory reform.

With the most expansive changes to the financial regulatory structure in a generation in the offing, Mr. Equale outlined key details about the bill, outlined how discussions at the international level – and especially at the upcoming G20 summit – will further affect the regulatory landscape, and what big banks and Wall Street can do to regain that most precious of commodities, trust.

As a top public affairs strategist, a veteran of multiple high-profile battles on Capitol Hill, and a frequent contributor to CNBC, Mr. Equale shared these insights and many more with Bulletproof™.

Click the video above to view Mr. Equale’s interview in its entirety.

Michael W. Robinson is a Senior Vice President and Chair of the Corporate Practice at Levick Strategic Communications, the nation's top crisis communications firm. He is also a contributing author to Bulletproof Blog.

]]> http://www.bulletproofblog.com/2010/07/19/bulletproof-interview-special-%e2%80%93-paul-equale-on-the-impact-of-financial-regulatory-reform/feed/ 1 http://www.bulletproofblog.com/2010/07/16/recall-insurance-enables-companies-to-avert-disastrous-costs/ http://www.bulletproofblog.com/2010/07/16/recall-insurance-enables-companies-to-avert-disastrous-costs/#comments Fri, 16 Jul 2010 16:44:19 +0000 Gene Grabowski http://www.bulletproofblog.com/?p=3391
Now what are the odds that a typical manufacturer or retailer will have to recall a product in the next year? Based on the hundreds of recalls announced each month by the Food and Drug Administration, the Consumer Product Safety Commission, and the U.S. Department of Agriculture, the chances are awfully good that any sizable company that makes or sells products to consumers will be hit with at least one recall in the next 12 months.

It’s no wonder then that companies are increasingly purchasing custom insurance policies designed to blunt the negative effects of a business crisis that impacts tens of millions of products each year.

According to a recent article in Fortune, the last year has seen explosive growth in the area of recall insurance – and for good reason. With legislators and regulators tightening product safety controls, we’ve witnessed huge increases in the number of recalls issued since 2007’s “Year of the Recall.” And with the Consumer Product Safety Improvement Act (CPSIA) now holding companies liable not only for the problems that led to a recall, but for the effectiveness of a recall itself in terms of consumer notification and product retrieval, the costs of a modern-day product liability crisis are rising fast.

Of course, the logistical expense of a major recall is often only half the equation. Intensified media coverage and heightened consumer anxiety often combine to create brand and reputational liabilities that can drag on the bottom line long after a recall is over.

As a result, most recall insurance carriers provide public relations assistance as an essential part of their recall insurance policies. From sharing messages of concern, commitment, and action with the general public to managing delicate discussions with federal and state regulators, communications counsel and execution are key aspects of an effective recall response – and insurers are rightly selling such expertise as a key value-added proposition for clients.

With the recall landscape growing more perilous every day, the message to consumer product companies is simple: The question isn’t whether you can afford to protect yourself against losses due to a recall; it’s whether you can afford not to.

Gene Grabowski is the Senior Vice President of Crisis and Litigation at Levick Strategic Communications, the nation’s top crisis communications firm. He is also a contributing author to Bulletproof Blog. Connect with him @crisisguru.

]]> http://www.bulletproofblog.com/2010/07/16/recall-insurance-enables-companies-to-avert-disastrous-costs/feed/ 1 http://www.bulletproofblog.com/2010/07/13/dealing-with-the-impacts-of-recall-fatigue/ http://www.bulletproofblog.com/2010/07/13/dealing-with-the-impacts-of-recall-fatigue/#comments Tue, 13 Jul 2010 14:12:27 +0000 Gene Grabowski http://www.bulletproofblog.com/?p=3357 16-month-old Danny Keysar was killed after his crib at a Chicago-area day care facility collapsed. When his parents learned that the crib had been recalled five years earlier, they were understandably outraged. The day care provider had no idea the crib had been recalled. Neither did the parent who had donated it.

An underlying cause of the problem that led to Danny Keysar’s death is called “recall fatigue.” With tens of millions of products being pulled from shelves due to potentially dangerous defects every year, consumers find it nearly impossible to keep up with the avalanche of information publicly available – and in some cases, they simply don’t care. According to a Washington Post article detailing the phenomenon, a recent study shows that 12 percent of Americans who knew they had a recalled food product at home ate it anyway. According to Marc Schoem, the top recall expert at the Consumer Product Safety Commission (CPSC), only about 30 percent of recalled products are ever returned.

“We do a good job of getting dangerous products off store shelves, but we do believe the greatest challenge is getting dangerous products out of the homes,” said CPSC Chairman Inez Tenenbaum in an interview for the Washington Post article cited above. Now, a new law bearing Danny Keysar’s name is aiming to change that. The legislation – which went into effect last month – requires manufacturers of certain baby products to include registration cards that will better enable companies to contact consumers when a recall takes place.

While it remains to be seen if similar legislation will be introduced for other products in the near future, what is evident is that effective recall communications is fast becoming a key part of protecting any brand built on safety and reliability. Responsible companies now must not only recall products properly when deficiencies occur, they must communicate about those recalls effectively with consumers.

Costco, for example, utilizes membership registration information to reach consumers in the event that a recall takes place. In another interview for the Post piece cited above, Costco Vice President for Quality Assurance and Food Safety Craig Wilson said that “When we get a recall notice, I can tell you everybody who bought that product, exactly when and where they bought that, and I have their phone and address. I’ll make a phone call the day the recall is announced, in a human voice, and the message goes right to them and tells them what’s going on, in clear, easy-to-understand language.”

Costco’s recall communications template is an example that all consumer product manufacturers and retailers should be striving to emulate – because a recall really isn’t a recall any more if consumers don’t know it has taken place.

Gene Grabowski is the Senior Vice President of Crisis and Litigation at Levick Strategic Communications, the nation’s top crisis communications firm. He is also a contributing author to Bulletproof Blog. Connect with him @crisisguru.

]]> http://www.bulletproofblog.com/2010/07/13/dealing-with-the-impacts-of-recall-fatigue/feed/ 0 http://www.bulletproofblog.com/2010/05/25/six-six-six-tips-for-leveraging-twitter-as-a-crisis-early-warning-system/ http://www.bulletproofblog.com/2010/05/25/six-six-six-tips-for-leveraging-twitter-as-a-crisis-early-warning-system/#comments Tue, 25 May 2010 20:51:26 +0000 Patrick Kerley http://www.bulletproofblog.com/?p=2831 The top six social media tips to know before you leave the office.

Speed is an essential ingredient of effective digital age crisis management. The Web’s ability to virally spread critical commentary or misleading information around the world in minutes means that companies caught flatfooted put themselves at an extreme disadvantage.  But while the real-time nature of digital communication does present problems for companies in crisis, it also pro vides solutions. When companies actively monitor the online space for mentions of their top brands, they can often nip brand crises in the bud or even prevent them altogether.

This week’s Six @ Six highlights six ways companies should be leveraging Twitter as a crisis early warning system. Do you use Twitter to monitor what’s being said about your top brands? Do you have additional suggestions? Share your feedback @pjkerley.

1. Monitor Mentions of Your Handle

The most basic tactic for using Twitter as an early warning system is tracking for mentions of your brand’s Twitter handle or handles. All of the major Twitter apps, including Twitter.com, group mentions of your handle in chronological order. If Web users attack or criticize your brand via Twitter – and particularly if they are disgruntled customers – they are likely to include your Twitter handle in their complaint to garner your attention, particularly if your handle is well-known. In addition to this basic and essential step, you will also want to expand your monitoring to include mentions of your brand and all variations, such as misspellings of your handle, product names, and industry issues. After all, a Tweet foreshadowing an impending crisis need not directly reference your Twitter handle.

2. Set up Comprehensive Topic Monitoring

In order to most effectively identify looming crises via Twitter, consider investing in a comprehensive social media monitoring tool such as Techrigy, Radian6, or ScoutLabs. For a monthly fee, these services make it easy to track all conversations related to particular topics of interest, whether they be direct mentions of your brand, discussions of particular pain points, or references to growing problems in your industry. These services will help you identify and track spikes in conversation, causes for increased conversation, tones of dialogue, and links shared to other online sources. These services also help manage workflow to ensure any necessary follow-up takes place. Nine times out of ten, if a regulatory, litigation, or reputational crisis is about to strike, the first place those directly affected will go to voice their concern is Twitter – often before traditional news outlets even have a chance to pick up the story.

3. Follow Influential Industry Users and Critics

Another critical resource for identifying potential brand threats is other Twitter users – particularly “power” users who cover your particular industry or field. While these users may not always include the keywords you monitor, their Tweets can help provide valuable insight into possible issues of concern for your company, industry, or competitors. In order to identify these influential users, start with journalists and bloggers you know cover your industry. Then, check out Twitter directories such as WeFollow, Twellow, or Twubble. Consider developing lists of these key influencers on Twitter.com so it is easier to track their tweets. By actively following and monitoring influential industry pundits and critics, Twitter can be a valuable early warning tool for crisis communications and reputation management.

4. Engage with Strategic Allies

As important as monitoring is to a crisis early warning system, it is just as critical to build relationships with those who might give you a heads up should they notice potential crises arising. Much as you would in real life, engaging and building relationships with strategic allies is critical for both building a base of support should a crisis strike and for establishing a network of listening posts across the Web. Consider fellow industry professionals, journalists who cover your field, and any other influential Twitter users who could be strategic allies both before and during a crisis.

5. Receive Updates on Your Mobile Device

No matter how many of the above tips you may implement, their use as tools for a crisis early warning system is limited if you don’t receive the information in real-time.  As we so often see, crisis can arise in a matter of minutes, spreading across the Web like wildfire. Receiving critical updates on your mobile device ensures you don’t miss a tweet. There is no way to control when a crisis will strike, meaning there’s a good chance you might be stuck in a meeting, out of the office, or otherwise not at a computer to monitor the tools outlined above. Fortunately, many of the tools for monitoring and managing Twitter – ranging from third-party apps to social media monitoring software – include options to receive updates on your mobile device. This can keep you up-to-date on any potential problems as they happen – giving your company the advance warning necessary to prepare and launch an effective and comprehensive crisis response.

6. Look Beyond Twitter.com

While Twitter’s own website, Twitter.com, has seen revolutionary advancements in recent months, its functionality still pales in comparison to third-party Twitter apps such as Tweetdeck, Hootsuite, Tweetie, CoTweet, and Seismic. These services make it far easier for companies and individuals to track Twitter conversations, manage relationships, share workflows among team members, and sift through the myriad daily Tweets that populate your Twitter.com homepage feed. For example, Tweetdeck allows you to filter content based on keywords into separate columns so it is easier to monitor pertinent tweets. This type of functionality is critical when tracking online conversations. Consider building searches for your company, company’s leaders, or industry issues to find the most relevant Twitter users and the most germane Tweets.

Click here to receive Six @ Six in your inbox each week

Patrick Kerley is a Senior Digital Strategist at Levick Strategic Communications, the world’s top crisis firm. He is also a contributing author to Bulletproof Blog™ and is on Twitter @pjkerley.]]> http://www.bulletproofblog.com/2010/05/25/six-six-six-tips-for-leveraging-twitter-as-a-crisis-early-warning-system/feed/ 2 http://www.bulletproofblog.com/2010/05/24/disaster-response-in-the-digital-age/ http://www.bulletproofblog.com/2010/05/24/disaster-response-in-the-digital-age/#comments Mon, 24 May 2010 18:42:22 +0000 Patrick Kerley http://www.bulletproofblog.com/?p=2826 Web resources are the most trusted and widely-read media of the day. As ongoing containment and clean-up efforts in the Gulf continue, that’s a fact clearly not lost on the Deepwater Horizon Unified Command.

While www.deepwaterhorizonresponse.com appears to have been hastily designed and the navigation leaves something to be desired (understandable shortcomings under the present circumstances), the site provides a template for disaster response in the Digital Age that ought to be emulated by any company or organization that faces an emergency situation of such magnitude in the future.

First of all, one look at the multimedia content available on the site demonstrates an understanding that controlling the images is critical to successful crisis management. The site incorporates a range of visuals, including slideshows of clean-up efforts, diagrams of the spill containment attempts, videos of prevention efforts elsewhere, live streams of press conferences, and links to more images provided by government sites. Notably, the site does not try to hide the damage; instead, it transparently intersperses photos of affected wildlife and oily water with photos of active clean-up efforts.

Second, it’s clear that the inclusion of social media on the Deepwater Horizon Response site is not a last-minute add-on; but rather an integral element. In addition to prominent links to related profiles on major social networks, the home page alone incorporates a Flickr slideshow, embedded YouTube video, and a snapshot of current activity on Facebook. Such dedicated integration encourages active participation among visitors. As such, it’s no coincidence that the Facebook page has 22,000 fans and the YouTube videos have been viewed a total of 1.75 million times – meaning that the Deepwater Horizon Unified Command is sending its message directly to its audience, rather than relying exclusively on reporters and the media filter.

Third, the site provides multiple resources for concerned citizens. From locality-specific contingency plans throughout the Gulf region to an ongoing response timeline and updated maps of the spill zone, the site offers all of the information that audiences are looking for. Additionally, a comprehensive FAQ page answers myriad questions – ranging from “Where can I check the status of a beach?” to “Is my drinking water safe?” to “What sampling is EPA doing along the beaches?”

Fourth, the site provides easy-to-find contact and volunteer information. There are prominent phone numbers and contact details for notifying authorities of wildlife problems, oil on land, technical suggestions, and even damage claims. Those interested in volunteering to assist the clean-up effort can easily find relevant links and phone numbers on the site – and a formal submission process is available to those with suggestions for how to stop, contain, or recover the spilled oil.

Finally, the site incorporates the latest media advisories, news releases, press briefing videos, and interview transcripts – making it easy for journalists and citizens alike to find the latest information from both BP and the government entities involved in the cleanup.

While none of these features are revolutionary in and of themselves, the fact that they are all incorporated in a one-stop clearinghouse of information related to the spill demonstrates an understanding of digital crisis management that is all too rare in the media environment we inhabit today.

The officials behind the Deepwater Horizon Response site have mastered the tricky balance between managing a crisis message and providing opportunities for the public to engage. As such, www.deepwaterhorizonresponse.com has secured a place as a prime example of best practices in online disaster communications.

Patrick Kerley is a Senior Digital Strategist at Levick Strategic Communications, the world’s top crisis firm. He is also a contributing author to Bulletproof Blog™ and is on Twitter @pjkerley.

]]> http://www.bulletproofblog.com/2010/05/24/disaster-response-in-the-digital-age/feed/ 2 http://www.bulletproofblog.com/2010/05/20/communications%e2%80%99-vital-role-in-combating-corruption/ http://www.bulletproofblog.com/2010/05/20/communications%e2%80%99-vital-role-in-combating-corruption/#comments Thu, 20 May 2010 16:37:04 +0000 Richard Levick http://www.bulletproofblog.com/?p=2811 record-breaking prison sentence and evidence of massive increases in nearly every measureable enforcement metric related to the U.S. Foreign Corrupt Practices Act (FCPA). We’ve witnessed the enactment of the UK Bribery Bill 2010, which has been called the “toughest enforcement standard in the world.” We’ve heard global investors voice their desire for greater disclosure of corporate anti-corruption efforts. And we’ve even seen regulatory crackdowns in developing markets aimed at driving increased foreign direct investment.

In such an environment, it’s no surprise that we’ve also seen 145 global companies to date sign onto the Principles for Countering Bribery established by the World Economic Forum’s Partnering Against Corruption Initiative (PACI) back in 2004. In doing so, these companies have signaled a “zero-tolerance” stance against bribery and a commitment to the implementation of an effective anti-corruption program. And whether they yet fully appreciate it or not, they’ve also agreed to articulate their efforts to myriad stakeholders as aggressively as possible.

Of all the Principles for Countering Bribery put forth by the PACI, no less than 17 are directly related to communications – and nearly all of them involve at least a minimal communications component. From informing employees, contractors, subcontractors, and suppliers of anti-bribery policies and the consequences of unacceptable conduct to the public disclosure of the program and acceptance of third-party recommendations that may enhance its impact, the PACI views effective internal and external communications as vital to any anti-corruption initiative’s success. Because, after all, what good is a plan to combat corruption if no one knows that it exists?

Too often, private and public sector efforts to curb dishonest business practices fail because communications is the forgotten element. In a new era of enforcement and global attention to corruption issues, a policy gathering dust in the corporate compliance department is simply not enough to satisfy a growing roster of concerned stakeholders. In order to steer clear of trouble, or provide a strong fallback position should violations arise, companies must talk about their dedication to eradicating corruption often – and with as many audiences as possible.

It’s also important to remember that aggressive communications serve a powerful prophylactic purpose. At the end of the day, companies that have signed onto the PACI are saying there is a new sheriff in town. Violators – whether they are inside the company or in countries where they are doing business – need to understand that the rules have changed. Forewarned is forearmed – and  those that insist on old ways of doing business – be they individuals, companies, or government officials – will soon find that they are the tragic symbols of ever-more effective communications campaigns carried out by the companies doing right.

Richard S. Levick, Esq., President and CEO of Levick Strategic Communications, sits on the board of the World Economic Forum’s Partnering Against Corruption Initiative (PACI). He is also a contributing author to Bulletproof Blog. Connect with him @richardlevick.

]]> http://www.bulletproofblog.com/2010/05/20/communications%e2%80%99-vital-role-in-combating-corruption/feed/ 0 http://www.bulletproofblog.com/2010/04/30/criminal-investigation-ratchets-up-the-stakes-for-goldman-sachs/ http://www.bulletproofblog.com/2010/04/30/criminal-investigation-ratchets-up-the-stakes-for-goldman-sachs/#comments Fri, 30 Apr 2010 20:40:54 +0000 Michael Robinson http://www.bulletproofblog.com/?p=2597 U.S. Attorney’s Office in the Southern District of New York is conducting a criminal investigation into whether Goldman Sachs or its employees committed securities fraud while trading in the mortgage market. The Securities and Exchange Commission (SEC) referred the matter to the Justice Department, according to reports.

The extent to which this news ratchets up the pressure on Goldman Sachs is hard to overstate. As the Wall Street Journal noted, no major U.S. financial services firm has ever survived such criminal charges. There is a long way yet to go and this criminal effort may go nowhere, but when news stories about Goldman mention the names E.F. Hutton, Drexel Burnham Lambert Inc., and Arthur Andersen in the same breadth, the bank’s reputation clearly continues to be under siege.

Any hope that the fallout from the Securities and Exchange Commission’s civil charges and this week’s Congressional hearing would die down quietly has now vanished. While it may be some time before Goldman executives see the inside of a courtroom – if they do at all – a conviction has already been handed down in the Court of Public Opinion. And that is certainly the most immediate jury of all.

There is a reason that Goldman cited “adverse publicity” as a significant “Risk Factor” in its 2010 annual report. With every new development and every new story that emerges, Goldman stands to lose billions, if not tens of billions, of dollars in market capitalization. It’s more likely to see its best talent recruited away. And the bank’s more risk-averse clients could start to look elsewhere.

And if charges do, in fact, emerge, pension funds and other investment vehicles that have restrictions on where they can invest could be forced to pull their business. Sovereign wealth funds (SWFs) could run for cover as well, as foreign regulators become more emboldened.

Perhaps worst of all, Goldman, which two months ago had among the most powerful lobbying operation in Washington, is now in a position from which it is impossible to wield its once considerable influence. With the case for enactment of the Volcker Rule – a proposed regulation that would limit the ability of a bank to engage in proprietary trading – now growing to critical mass, Goldman is largely powerless to protect one of its most profitable lines of business.

While it’s too early to tell what’s next in this drama, there’s no denying that the Wall Street Giant turned poster-child for reform is facing a challenge unlike any it’s ever experienced.

Michael W. Robinson is a Senior Vice President and Chair of the Corporate Practice at Levick Strategic Communications, the world’s top crisis firm. He is also a contributing author to Bulletproof Blog™. Connect with Levick on Twitter: @Levick.]]> http://www.bulletproofblog.com/2010/04/30/criminal-investigation-ratchets-up-the-stakes-for-goldman-sachs/feed/ 2 http://www.bulletproofblog.com/2010/04/30/bp-must-assert-greater-control-over-the-oil-spill-pictures-and-story/ http://www.bulletproofblog.com/2010/04/30/bp-must-assert-greater-control-over-the-oil-spill-pictures-and-story/#comments Fri, 30 Apr 2010 20:15:14 +0000 Gene Grabowski http://www.bulletproofblog.com/?p=2592 the need for British Petroleum (BP) to aggressively communicate the steps it had taken, and would continue to take, to protect the people and wildlife of the Gulf Coast region. Since then, the situation has deteriorated – both in the Gulf and in the media, where BP has, unfortunately, missed a series of opportunities to shape an increasingly damaging narrative.

BP has done a remarkably effective job over the years in shifting its brand to “Beyond Petroleum” and has stood as a leader in the oil industry on its green-oriented approach. As BP CEO Tony Hayward said in a written response to the New York Times, “Reputationally, and in every other way, we will be judged by the quality, intensity, speed and efficacy of our response.”

That response, of course, will play out in the media. And as a first priority, BP is failing to manage the pictures of the crisis. Right now, stock footage and photos of indigenous animals in peril are telling a powerful story about what many expect to happen in the coming hours. Meanwhile, images of the massive clean-up effort – and the hard-working men and women that are carrying it out – are nowhere to be seen. At a time when BP can ill-afford to be perceived as a faceless corporate entity, this imbalance needs to be remedied.

In talking to reporters that are covering the story, I’ve heard that some of them have offered to come aboard the ships participating in the clean-up and sit in at BP headquarters to create on-site, real-time stories that would feature the very images BP should want to show the world. Thus far, however, BP hasn’t responded to those requests. Even if BP is worried about a report that could inflame the situation, it could always allow journalists access under the condition that their stories be embargoed until after the crisis is contained.

Furthermore, the statements BP has issued thus far have articulated a total lack of control at a time when audiences want to see the company exercise more leadership. When BP’s COO told viewers on the Today Show earlier this week “we’ll take help wherever we can get it,” he helped cement the perception that BP couldn’t handle the situation and that the federal government had to step in.

With the Obama Administration already starting to retract its recent support for off-shore drilling, BP – and the entire oil industry – has a great deal at stake in the coming weeks. Because the stakes are so high, BP must take a greater hand in telling its story. If it continues to miss these opportunities, the cost to BP and to the oil industry will be far greater than it need be.

Gene Grabowski is the Senior Vice President of Crisis and Litigation at Levick Strategic Communications, the nation’s top crisis communications firm He is also a contributing author to Bulletproof Blog. Connect with him @crisisguru.]]> http://www.bulletproofblog.com/2010/04/30/bp-must-assert-greater-control-over-the-oil-spill-pictures-and-story/feed/ 2 http://www.bulletproofblog.com/2010/04/29/volcanic-disruption-created-missed-opportunities/ http://www.bulletproofblog.com/2010/04/29/volcanic-disruption-created-missed-opportunities/#comments Thu, 29 Apr 2010 17:28:59 +0000 Gene Grabowski http://www.bulletproofblog.com/?p=2582 disrupted air travel across Europe earlier this month, more than five million passengers found themselves in the same boat – booking hotel rooms and buying meals that would make their extended stays just a little more bearable. But when it came time to pay for these basic necessities, some travelers had expenses covered by their airlines, while others were forced to fend for themselves.

That’s because laws governing passengers’ rights differ drastically for airlines based in the European Union and United States. While the EU requires that airlines cover expenses for lodging and food when a flight is cancelled, the U.S. does not, unless the cancellation is caused by the airline. Because a volcanic eruption is outside of an airline’s control, passengers governed by the U.S. system were simply out of luck.

As noted by USA Today in a story published yesterday, the airlines that failed to come to their customers’ aid – even if they weren’t required to – during this memorable event overlooked an important branding opportunity. While many frequent fliers probably couldn’t tell you what airline they flew last month, let alone last year, those who were stranded by volcanic ash are going to long remember how they were treated by their respective airlines during this momentous incident. That means millions of opportunities to create life-long brand loyalty were likely missed because many airlines merely adhered to legal compliance standards.

Furthermore, at a time when the media focus on air travel was as intense as it’s been in almost a decade, a story of an airline going above and beyond to ensure that its customers were as comfortable as possible would have garnered enormous favorable publicity.

There’s no doubt that the financial burden associated with such a response would have been substantial – and perhaps prohibitively so for the airlines – but as we’ve seen in the past, companies that capitalize on major events to make news and shape lasting perceptions see their short-term investments translate into long-term dividends.

Gene Grabowski is the Senior Vice President of Crisis and Litigation at Levick Strategic Communications, the nation’s top crisis communications firm. He is also a contributing author to Bulletproof Blog. Connect with him @crisisguru.

]]> http://www.bulletproofblog.com/2010/04/29/volcanic-disruption-created-missed-opportunities/feed/ 2 http://www.bulletproofblog.com/2010/04/28/telstra-provides-a-lesson-in-leadership/ http://www.bulletproofblog.com/2010/04/28/telstra-provides-a-lesson-in-leadership/#comments Wed, 28 Apr 2010 19:17:08 +0000 Richard Levick http://www.bulletproofblog.com/?p=2571 posted its first sequential increase in net operating and wireless service revenues in three years) has developed a system that transfers video, voice, and data to mobile devices ten times faster than previous commercial networks – but that isn’t the fastest either.

As it turns out, it’s Australia that is home to a network with peak wireless speeds of up to 42 megabits per second, which is nearly four times faster than the best we’ve got in the U.S. Even more surprising is the fact that Telstra, the company that developed and maintains this best-in-class network, was just another bloated, plodding, government-owned utility only five years ago.

As I wrote in an article published on TheStreet.com yesterday, Telstra's transformation into a leader on the high-tech landscape was indeed a turbulent one. CEO Sol Trujillo had a vision of a leaner, meaner Telstra that met fierce resistance from the outset.

From the employee anxiety created by a proposed 20 percent reduction in workforce to high-profile questions about what many saw as a pie-in-the-sky goal of building the world’s fastest mobile network, success would depend on an aggressive communications strategy aimed at assuaging internal fears and convincing external audiences that the company’s charted course would, in fact, help vault all of Australia into the next generation of information access.

With Mr. Trujillo serving as the point man, Telstra engaged in a campaign that defined the long-term benefits of the company’s chosen strategy as worthy of the short-term sacrifices needed to implement it. The company didn’t retreat into “no comments,” let news releases do the talking, or reverse course when the going got tough. Rather, it faced its communications challenges head on – confident that it could, in fact, revolutionize Australians’ access to information in ways no one thought possible.

Under Mr. Trujillo’s leadership, Telstra’s network became the envy of the industry. It reminds us of what can be achieved when business thinks big and summons the courage to defend its long-term goals in the face of staunch opposition.

Richard S. Levick, Esq. is President and CEO of Levick Strategic Communications, the nation's top crisis communications firm. He is also a contributing author to Bulletproof Blog. Connect with him @richardlevick.

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