Haitian Girl Benefits From US Hospital

Today's post isn't so much about an organization's crisis. It's more about an individual's crisis and a hospital's ability to gain goodwill, which touched my heart.

"Stephanie Privert’s faulty heart had been slowly killing her for years, but it took a massive earthquake to get her any medical attention.

“'This little girl’s heart was failing, and her seven other siblings and parents were living in a tent,' said Steve Diamond, director of Healing the Children, a Louisville nonprofit working in Haiti. 'We had to get her out.'”

"It took months of delays and complications, but on Aug. 3, Stephanie was wheeled into an operating room at Kosair Children’s Hospital (in Louisville, Kentucky) — and wheeled out hours later after a risky but successful operation to repair her heart valve." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010309240122)

Stephanie is 15.

"Her heart condition had previously been diagnosed but was untreated, and it had made her a semi-invalid and kept her from going to school for years. She was increasingly weak and tired, and living in a tent after the quake, amid the squalor and destruction, only worsened her condition."

Please check out the story on the referenced website and on her Facebook page.(http://www.facebook.com/StephaniePrivert). To rebuild Stephanie's home and support her medication, see www.healingthechildren.org.

Information on Kingsford Charcoal Fire in Kentucky Hard to Find

A fire at a Kingsford charcoal plant in southern Kentucky burned four employees. Good luck in finding any of the details.

I watch the news pretty closely. Granted, I'm watching football more closely during the weekend at this time of year. But I didn't hear about the fire until today -- three days after the fact.

Kingsford is owned by Clorox, a relationship I didn't know before I started searching for info about the fire. Maybe Clorox doesn't know it owns Kingsford either, because there is no information on the Clorox website (http://www.clorox.com/) nor on the Kingsford website (http://www.kingsford.com/). I plan to leave a message on the Clorox Facebook site (http://www.facebook.com/Clorox). I did find details at http://www.kentucky.com/2010/09/24/1449028/deputies-4-hurt-in-blast-at-ky.html. At that site I learned, "Dan Staublin, a spokesman for Clorox, Kingsford's parent company in Oakland, Calif., described it as a flash fire, saying "there's a flash and then it's done, it's not a sustained fire."

Phew, I'm sure the families of the victims are relieved by that! It looks like this is a crisis Clorox wants to sweep under the grill.

Give Me That Old-Time Religion

It's Sunday, and the news today is filled with religious stories. Tom Breem, AP, wrote my favorite of the day. (http://hosted2.ap.org/COGRA/d30f3f32e9d849979111e891380b64db/Article_2010-09-25-US-Pastor-Abuse-Allegations/id-ef602fe323cc45bea7888d2845cac67b). Although he doesn't say so directly, Breem makes a good case that religious organizations need to have crisis plans as much as the biggest businesses do. After all, church is big business.

"It's too early to say whether the sex allegations against Bishop Eddie Long, the famed pastor of New Birth Missionary Baptist Church in suburban Atlanta , will spur the kind of soul-searching that followed the downfall of the Rev. Ted Haggard in Colorado. (see my blog post two items below this one.)

"Regardless, pastors and experts say the Long case demonstrates how vulnerable the country's independent churches still are to being damaged by the misbehavior — sexual, financial or otherwise — of leaders whose considerable influence often comes with temptation and little accountability.

"'The more powerful a Christian leader becomes, the fewer restraints that other people can put on them,' said the Rev. H.B. London Jr., vice president of ministry outreach for Focus on the Family. 'Some of these men and women become so powerful that no one can tell them no.'"

Pastors, priests, bishops, and elders need to be looking into crisis planning to help guide them through scandals, real or perceived. "Even before the allegations of sexual misconduct, New Birth was one of six ministries targeted in 2007 by Sen. Charles Grassley, R-Iowa, over the handling of their finances. Long was singled out by Grassley for questions over whether he, rather than New Birth's board of directors, holds sole authority over the organization.

"It's a question that applies to many Pentecostal and independent charismatic churches around the country, which often have little or no affiliation with other churches and which sometimes have leaders who seem bigger than the church itself.

"Lavish lifestyles and autocratic leadership can combine to create a kind of religious celebrity and the temptations that go along with that, according to Christian journalist J. Lee Grady."

Here are some groups from today's headlines who could use a crisis communications plan:

1. Long told his 25,000-member congregation at services this morning that he will fight allegations against him. So many people turned up that traffic was snarled for a mile or so.

2. Monks who belong to the Most Blessed Virgin Mary of Mount Carmel want to build a 144,000-square-foot monastery and coffee roasting barn in the Wyoming desert. These Roman Catholic hermits are eyeing some property 14 miles from the nearest road and 20 miles from the nearest town. Nevertheless, some ranchers who live in the area are opposed. (http://www.newsmeat.com/news/meat.php?articleId=84135306&channelId=2951&buyerId=newsmeatcom&buid=3281)

3. Pope Benedict XIV is concerned about the cult-like order of Catholics for whom silence is the norm, e-mail is screened, and close friendships are discouraged. Life is so regimented that there are even instructions on how to eat an orange.

"The alleged abuses came to light during an eight-month Vatican investigation into the Legionaries of Christ, a secretive religious order beloved by Pope John Paul II but now discredited because of revelations that its charismatic founder sexually abused seminarians and fathered at least three children.... 'I feel like I was brainwashed,'" said a woman who joined the movement after graduating from a Catholic college in 1997. (http://www2.ljworld.com/news/2010/sep/26/vatican-probes-cult-group/)

4. The Dragon Moon Coven met this weekend in Louisville, Kentucky."It was a lot easier for pagans to find people like themselves, many of whom center their spiritual practices on natural cycles such as those of the sun and moon. Many describe themselves as Wiccans.

"Organizers of Louisville Pagan Pride Day, a self-described 'coming out of the broom closet' day, expected several hundred people to attend.... There were more than 20 booths with people selling arts and crafts, offering tarot card readings or handing out information." (http://www.courier-journal.com/article/20100925/NEWS01/309250049/Pagans+connect+at+downtown+Louisville+Pride+Day)

5. On the more traditional side, Bishop Terry Allen Wright was consecrated at a hotel ceremony by the Episcopal church. "White assumes leadership in a small but historic diocese with 9,856 members and 34 congregations in central and western Kentucky, including Louisville. His election by a diocesan convention in June was later ratified by the national church.... 'You have called a listener,' the Rev. Canon Susan L. Sommer told hundreds of worshippers in her sermon."

Then please listen to this, Bishop Wright, Bishop Long, leaders of the Legionaries of Christ, and you too, Sharon Patterson, aka Lady Mycrina of the pagan coven: You and your respective faiths have a high crisis risk and a lot to lose if you are unprepared. All churched people should be encouraging their leadership to develop a plan now instead of waiting for the next scandal.

Blockbuster, a Dinosaur, Declares Bankruptcy

I can't remember the last time I rented a movie. Years ago, I was a regular Blockbuster customer, looking for the movies I missed out on at the theater.

I guess a lot of people are like me. Blockbuster declared bankruptcy this week. The promotions on its website continue as if Blockbuster, and the video rental business, is going forward as always. (http://www.blockbuster.com/)

Video rental businesses are like the blacksmith shop and the typewriter store. They are obsolete and need to either adapt or die. Jeanette Mulvey writes, "Blockbuster’s Chapter 11 bankruptcy filing yesterday is being characterized as the final nail in the coffin of the brick-and-mortar video rental business. And, while Netflix, Hulu and Redbox have done their best to render independent video rental stores a quaint anachronism, some Davids have survived where Goliaths typically rule." (http://www.csmonitor.com/Business/Latest-News-Wires/2010/0924/Blockbuster-bankrupt-but-small-video-stores-thrive)

How do the Davids do it, in this or any other threatened industry? “'I sacrificed a lot to keep this business going,'” said David Buffa, owner of New York Video in New York City. “'It certainly did not make me rich, but I was able to stay in business and do something I love. It’s not a job for us. We like what we do....'" The secret to survival? “'Have the stuff people ask for and be able to answer people’s questions,' Buffa said. Buffa also advises that small businesses—in any industry—to tailor its products and services to its customers’ preferences."

The same Christian Science Monitor article also describes Black Lodge Video's approach in Memphis. “'We’ve gone to a lot of trouble to build up a vast film library for movies that are out of print,' said (Matt)Martin. Whether it’s horror, science fiction, or foreign films, Black Lodge has them and continues to add to its collection. Its broad selection, especially of hard-to-find and out-of-print movies, attracts customers who know they will be able to find even the most obscure films at Black Lodge."

As communicators, we often don't have the authority to dictate the direction of a business that is dying. But we do have the power to recommend. We should monitor our competitors to see what works and what doesn't, and be the eyes of the organization. By keeping in touch with the world around us, and making senior management aware, is what raises the esteem of communications folks. Blockbuster was too slow to respond to a changing market.

Mega-Church Pastor Accused of Improprieties With Teens

I was considering joining a church near where I lived and worked several years ago. Then the new pastor was caught with a wife who attended the church. The pastor resigned and I never went back.

Those of you who work for religious organizations should follow the crisis of New Birth Missionary Baptist Church in the Atlanta suburb of Lithonia. Bishop Eddie Long has been accused by three young men of luring them into sexual relations while they were teenagers, temping them with cars, money, jewelry, trips, and access to celebrities. Long heads a church with 25,000 members, has written a book, and appears on TV stations from Texas to Amsterdam.

Long has denied the accusations, but they don't have to be true to create a crisis for the church and its accused leader. "I am anxious to respond directly to these false allegations and I will do so. However, my lawyers have counseled patience at this time. But let me be clear; the charges against me and New Birth are false." (http://198.106.21.96/download/BishopLongStatement_September23.pdf)

Rumors constitute a crisis, whether true or untrue. Your crisis plan needs to prepare your organization either way.

Egg Recall Sounds Like a Movie Plot

Which came first: the chicken or the salmonella?

The tainted eggs and the two companies they came from have become a political football and a circus. The founder of Wright County Egg Company and Hillandale Farms in Iowa testified before Congress this week.

He "apologized to a Congressional panel on Wednesday and acknowledged that his family operation had become 'big quite awhile before we stopped acting like we were small. What I mean by that is, we were big before we started adopting sophisticated procedures to be sure we met all of the government requirements,' the egg producer, Austin J. DeCoster, said in testimony before a House Energy and Commerce subcommittee. He is the founder of an egg empire that has been linked over three decades to outbreaks of salmonella poisoning in many states, some leading to deaths." (http://www.nytimes.com/2010/09/23/business/23eggs.html?_r=2&sq=decoster&st=cse&adxnnl=1&scp=3&adxnnlx=1285268439-01jyrTtUB3r8WPg6NwMIJw)

That's 1,500 sicknesses reported and a half billion eggs recalled in the latest episode. This is more than a simple recall. The president of Hillandale, Orland Bethel, took the fifth ammendment at the Congressional hearing. But an e-mail from Bethel released by the subcommittee read, “Hillandale needs to totally disassociate itself from Jack (DeCoster) and it needs to be real. Hillandale has a good business base, but it will all be gone if I don’t move quickly and I will not try to deceive the public.” In another e-mail, Bethel claimed, "his company had been told by Costco and Wal-Mart 'that they will not be doing any business if Jack and his people have any involvement in management or ownership.'”

What? The president of the company writes such things about the owner? Now let's play the blame game:

"Peter DeCoster, Austin (Jack) DeCoster’s son and the chief operating officer of Wright County Egg, told the panel that the most likely source of the contamination was a separate company that supplied ingredients for chicken feed, a contention disputed by federal food officials. He said that some of the filthy conditions documented by the F.D.A. were standard practice in the industry."

That's scary. The FDA found "Barns of the egg producers were infested with flies, maggots, and rodents, and had overflowing manure pits. Records unearthed by Congressional investigators showed that tests of Wright County Egg barns had shown the presence of toxic salmonella bacteria for years before the outbreak." And the COO calls that standard practice?

The New York Times also reported, "Documents released by the committee showed that Wright County Egg achieved a 'superior' rating and 'recognition of achievement' from AIB International, a private inspection company based in Manhattan, Kan., after a June inspection of its processing facility."

Sounds reassuring, right? Ah, but AIB International is the same company that gave Peanut Corporation of America a superior rating just before a salmonella outbreak brought about the largest recall in history and, ultimately, the end of PCA.

“'DeCoster farms have had warning after warning' for decades, said Representative Henry A. Waxman, a California Democrat. 'Yet they continue to raise chickens in slovenly conditions and make millions of dollars by selling contaminated eggs.'"

This is where politics enters the dispute. "Democratic members of the panel denounced Senator Tom Coburn, a Republican from Oklahoma, who has objected to a Democratic plan to bring food safety legislation to a vote.

“'This is a public health imperative,' said Representative Edward J. Markey, a Democrat from Massachusetts. 'There must be some exceptions for Republicans in the Senate. They must release this bill so that we can protect millions of families.'

"But Representative Michael C. Burgess, Republican of Texas, said that Mr. Coburn’s objections had not prevented the bill from being considered by the Senate. Mr. Burgess sought to read a statement from Mr. Coburn at the hearing, but Representative Bart Stupak, the chairman of the panel, cut off his microphone, which led to a sharp exchange between the lawmakers."

Here's the thing. If the egg farm had been properly run, we never would have heard of Hillandale. If the president had been more discreet about his feelings toward the founder of the company, the dispute would have stayed internal. If none of this crisis had happened, Congressmen wouldn't be using it to bash the other party.

Two thirds of all crises are smoldering crises, and 100% of those are preventable. DeCoster testified that as his company grew, it never "started adopting sophisticated procedures to be sure we met all of the government requirements." Therein lies the definition of a smoldering crisis. A potential problem exists, and no one does a thing about it.

Massey Energy Disputes Explosion Findings, But Do We Believe It?

I can't help feeling a lack of credibility in what Massey Energy says. This is the company that operates the Upper Big Branch Mine in West Virginia, where 29 coal miners died in an explosion in April. Massey's CEO, Don Blankenship, earlier came under suspicion for vacationing with a judge who was to rule on a civil suit against his company. The ruling came out in favor of Massey. Another time, Blankenship was captured on camera shoving a TV reporter and threatening to shoot him.

The Associated Press reported yesterday that coal dust played a part in the Upper Big Branch explosion. "A majority of the samples came from areas affected by the explosion, but show only that coal dust played a role in the blast, Mine Safety and Health Administration official Kevin Stricklin said during a conference call with reporters. 'It's going to be fair to say that coal dust played a role,' Stricklin said. 'We just aren't in a position to say how big of a role.'" (http://news.yahoo.com/s/ap/20100917/ap_on_bi_ge/us_mine_explosion_investigation_5;_ylt=AiFlk.UimHkbgtBqPvbe6mD3SpZ4)

Massey is the defendant in numerous civil and criminal suits. Its response to the MSHA report, according to its website, stated, "This is not the first time MSHA has attempted to use unproven or faulty coal dust claims in their investigation efforts.... Unfortunately, MSHA has failed to learn the lessons from its prior investigative mistakes.

"MSHA's narrow-minded focus on compromised coal dust evidence is doing a disservice to those UBB families entitled to concrete answers unequivocally supported by accurate scientific findings and the facts. Sadly, MSHA appears to be more interested in proving itself right, even if the evidence suggests the agency's presumptions are wrong." (http://phx.corporate-ir.net/phoenix.zhtml?c=102864&p=irol-newsArticle&ID=1472589&highlight=)

I don't know who is right. But my gut tells me not to trust what Massey says. The company hasn't built a "bank account of good will." Instead, it is sorely overdrawn. Its CEO is regularly belligerent and defiant and has shown himself to have questionable ethics. What do you think?

I hope your organization adds regularly to its bank account of good will. It will serve you well if and when a significant crisis strikes and your credibility is on the line.

Johnson and Johnson Faces Congressional Probe of Alleged Secret Recalls

Congress is investigating whether Johnson & Johnson carried out a secret recall of faulty pain relievers last year as a major probe of a dozen J&J recalls escalates, according to the Associated Press. (http://www.google.com/hostednews/ap/article/ALeqM5iBDok72pzQbuummHLVSc2YjPC7jgD9I9TR1G0)

In one recall, packets of possibly defective Motrin were quietly bought from stores across the country during spring 2009. "E-mails released by the House Committee on Oversight and Government Reform show a contractor hired for that job wrote to colleagues that his company was considering a 'similar but potentially larger recall for July involving Children's Tylenol' for J&J. It's still unknown whether that happened."

If a company makes an ethical mistake, why would it repeat that mistake? Communications folks at J&J better be ready. Once Congress gets involved, you're dealing with pomposity, egos, and people desperately trying to make a name for themselves before re-election day.

Your organization may never be part of a Congressional probe, but the mayor, sheriff, or watchdog group could cast doubt on your good name. Your crisis communications plan needs to show, at a minimum, initial communications messages and which key people in the organization need to be involved. According to the Institute for Crisis Management's annual crisis report, recall crises doubled in 2009. "Kroger recalled hamburger, mayonnaise and chicken wings among other items. Fischer-Price recalled lead-tainted toys, and other companies recalled everything from strollers to cribs, bassinets, high chairs, baby food, flammable women's robes, Nokia battery chargers, Vicks nasal spray, cat food, Zhu Zhu Pets, some swine flu vaccine, Nestle cookie dough products, Hydroxycut diet pills, Tylenol Arthritis Caplets, and nasal spray Zicam cold remedy." (http://www.crisisexperts.com/)

There's been no indictment yet of J&J. But keep in mind that recalls -- and other smoldering crises -- often require transparency before they go away. Paradoxically, the more visual you are the less stakeholders will notice.

Nursing Homes Fall Under the Magnifying Glass

If you operate a nursing home in Kentucky, beware. Governor Steve Beshear has ordered state officials to immediately implement 20 improvements to the way reports of abuse and neglect at Kentucky nursing homes are investigated.

This order is in response to a series of articles in the Lexington Herald-Leader. I've written a bunch of posts here about crises uncovered by the Herald-Leader. That's what a newspaper is supposed to be and why I became a journalist! But I digress.

According to the Herald-Leader, nursing home citations in the past three years included 18 deaths, 30 hospitalizations, five broken bones, and two amputations. Thirteen residents were injured as a result of lapses by staff members, according to the citations. (http://www.kentucky.com/2010/09/18/1439258/beshear-orders-immediate-changes.html#ixzz0ztQKzk81)

"The Herald-Leader examined 107 Type A citations — those issued when a resident's life or safety has been endangered — issued over a three-year period by the Cabinet for Health and Family Services. The investigation found cracks in the system, as only seven of the 107 cases of nursing home deaths or abuse cases were prosecuted as crimes.... The newspaper found that some cases languished and the attorney general's office misplaced or never received at least five citations issued by the cabinet from December 2006 through 2009."

Anyone associated with a nursing home, including my former mentee who graduated from the University of Louisville a couple years ago, has a smoldering crisis. The governor's 20-point plan for improvements is just common sense, but we all know that sense isn't necessarily common. Nursing home staffs in Kentucky -- and elsewhere because this smoldering crisis is coming to a nursing home near you -- need to examine operating procedures. They need to ask themselves, "How would I feel if my mother or father or grandparent were treated like this?" And then do the right thing. If you are responsible for communications at a nursing home, you need to have a plan right now on how you would deal with this kind of scrutiny in order to continue business and cash flow as usual.

Dismas Backs Down From Sports Luxury Boxes

Here is the latest on Dismas Charities' crisis regarding high salaries and spending on luxury boxes at University of Louisville football and basketball games. Remember, Dismas is the non-profit I've written about several times during the past couple of weeks. It provides half-way housing services for ex-prisoners in 12 states and employs 600 people.

Before I give the latest, let's review. Dismas spent $45,000 for a University of Louisville football suite, $92,000 for a basketball suite, and $15,500 with a private company for a tailgating caboose next to Papa John's Cardinal Stadium. The top two executives at Dismas are paid more than a combined million dollars in salary and benefits, which compares unfavorably with most other non-profits, but that issue has yet to be dealt with.

“I am not going to apologize for it," said CEO Ron Weis last week regarding the sports suites. Update, 11 days later: “'To the community at large, we apologize and ask for understanding. We're sorry that our … supporters and employees have been affected by this matter.'” (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010309130070)

According to board chair James Simon, the luxury suite leases were funded with "invested dollars saved over 26 years from sound operational practices and the purchase and sales of properties." Update, 11 days later: "Dismas announced in a news release that its board had unanimously agreed to terminate the leases and that the university had agreed to return the money."

State auditor Crit Luallen last week announced her office “will conduct a review of certain policies" regarding Dismas' spending practices. September 13: "In a prepared statement, Kentucky Auditor Crit Luallen said 'it is encouraging that Dismas has heard the concerns of the community and acted on those concerns.'”

“We can all believe in redemption and conversion from tunnel vision to wisdom,” according to businessman and philanthropist Bill Stone, a former university trustee who had criticized Dismas for leasing the suites.

"Weis and Dismas are in for a rude awakening," I wrote on September 3. Today: When a non-profit receives taxpayer dollars -- in this case, 99% of its budget -- the board and senior employees have to accept accountability if they are to derail a smoldering crisis. For more of my background blogs on Dismas, see http://crisisexperts.blogspot.com/search?updated-max=2010-09-03T13%3A19%3A00-04%3A00&max-results=10.

I refer you to these previous blogs, not out of I told you so, but because this is such a great case study of arrogance when it comes to spending tax money. See also the Kentucky League of Cities and the Kentucky Association of Counties in earlier blog posts. The same lessons apply to spending investors' dollars. Questionable expenses always are a smoldering crisis that can lead to embarrassment, higher costs, and lower revenues. Learn from others' mistakes. For additional learning opportunities, see the Institute for Crisis Management's Annual Crisis Report by clicking on the link at http://www.crisisexperts.com/.

Dismas Says It Can't Wait for Investigation of Spending Practices

I blog regularly about Dismas Charities because the non-profit so far refuses to fix a problem that has become a crisis that remains in the news. The organization, which holds contracts with federal and state governments to provide half-way housing for convicts, made the front page of The Courier-Journal again on September 10.

"Recent stories in The Courier-Journal have revealed that Dismas has spent $92,000 for a luxury suite at Louisville's new KFC Yum! Center, as well as $45,000 for a luxury suite at Papa John's Cardinal Stadium. The newspaper also has reported that in 2008 Dismas paid its chief executive officer $600,546, and its executive vice president $452,047, in salary and benefits." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010309090035)

This is a group that receives 99% of its budget from tax dollars.

After meeting with Dismas, state auditor Crit Luallen announced her office “will conduct a review of certain policies" regarding Dismas' spending practices. I have yet to see any evidence that the board or staff is taking steps to adjust spending habits. In fact, CEO Ray Weis has defended the spending and refused to make any apologies. "Dismas spokesman Bob Yates said officials there 'enjoyed the opportunity to meet with the state auditor' but added that Dismas would have no further comment."

I wonder if they will "enjoy" the audit itself, which will begin in a few weeks, and the ultimate findings. Based on audit results at other tax-supported Kentucky organizations in recent months, this will not be an enjoyable experience for anyone at Dismas -- or anyone else who thought they would be guests in the Dismas luxury sports boxes.

Fair Board Responds Appropriately to Prevent Human Resource Crisis

From what I can tell, the Kentucky State Fair Board was right to fire its vice president Vicki Glass. I have written here countless times about organizations who defend indiscretions, misdemeanors, and felonies from its leaders, thereby prolonging and creating crises needlessly.

"According to news accounts and court records, Glass became belligerent with (a) Penney store employee on April 29 when the worker, Kathryn Elkin, refused to give Glass a coupon. Elkin filed a complaint in April, and Glass was charged July 7. She has pleaded not guilty and is due back in Jefferson District Court for a hearing on Sept. 27. According to the complaint, Elkin said she told Glass that the store did not keep coupons on hand but Glass 'was yelling and cursing.…in front of her two children....' Elkin alleged in the complaint that Glass began striking her.” (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010309100053)

In an unrelated case in July, Glass was charged with "harassing communications after allegedly following (a) woman home from a gym where Glass is a member."

Harold Workman, fair board president and CEO, told The Courier-Journal in Louisville he couldn't comment on personnel matters, but did confirm that Glass was no longer employed by the fair board.

Workman could have publicly defended his VP and dragged this story out indefinitely. Instead, it appears he and the board made a good decision to dismiss this employee who seems to have a volatile personality. As a result, this is a one-day story on page B6 of the newspaper.

Are you paying attention, Dismas Charities board members? See the item above and several below.

Remember What Happened to Pinochio When He Lied?

Tennessee basketball coach Bruce Pearl made an emotional confession Friday. "'I've made some serious mistakes, and for that I'm truly sorry,' Pearl said tearfully at a news conference. 'I provided incorrect and misleading information to the NCAA. I've learned some invaluable lessons. After I provided the false and misleading information, subsequently I went back and corrected the record.

"'I learned that it's not OK to tell the truth most of the time, but you've got to tell the truth all of the time.'" (http://www.newser.com/article/d9i5q9580/tennessees-bruce-pearl-acknowledges-giving-false-information-to-ncaa-during-investigation.html)

Pearl messed up and had to admit his sin. Then there's Roger Clemens: "'Let me be clear. I have never taken steroids or HGH,' he told a House committee in 2008. Now, instead of the Hall of Fame, baseball's seven-time Cy Young winner could go to prison after being indicted by a federal grand jury Thursday for allegedly lying to Congress.

"The case writes a new chapter in one of baseball's worst scandals, the rampant use of performance-enhancing drugs in the 1990s and early 2000s, and leaves Clemens' legacy in jeopardy." (http://sportsillustrated.cnn.com/2010/baseball/mlb/08/19/clemens.perjury/index.html)

I don't know if Clemens is telling the truth, but it looks bad for the ex-star. You could substitute the names of Barry Bonds and 101 other baseball players who are in denial.

Let's return to the Pearl story, because this is my point. AP reporter Beth Rucker wrote, "The coach did not explain why he provided incorrect information but acknowledged that by doing so he made what might have been a minor situation much worse."

If Clemens lied, he also made his situation much worse. Tuck that into the back of your brain. Lying during a crisis almost always makes things worse. Usually, you'll get caught. Besides, it's an ethical issue. Do what's right.

I hesitate to mention this name, but the lie is so funny I can't resist. "One would think that it would be hard to mistake cocaine for chewing gum, considering one substance is powdery, white, illegal and most commonly found in tiny plastic bags, and the other is solid, multi-colored, sold at convenience stores around the country, and often wrapped in foil. But apparently, Paris Hilton has trouble telling the difference between the two.

"According to an officer's report, when a little white baggie fell out of the purse Hilton was carrying in Las Vegas Friday, Hilton said that 'she had not seen [the bag] but now thought it was gum.'" (http://abcnews.go.com/Entertainment/paris-hilton-drugs-gum/story?id=11522787)

According to ABC, Hilton has been caught with marijuana several times and each time denied it was hers. And the funniest lie of all: When she appealed her sentence for violating probation and driving with a suspended license, she claimed she deserved to be released from her jail time because she adds "beauty and excitement to (most of) our otherwise mundane lives."

I'll take mundane and tell the truth.

If There's Nothing To Say, Don't Say It

I heard a horrible interview on CNN this morning. Pacific Gas and Electric spokesperson Blair Jones was interviewed about the horrific fire engulfing San Bruno, California, presumably caused by a ruptured gas line. I can't find a clip of the interview. (If you can, please provide a link because this is worth watching.) PGandE clearly had one message it wanted to deliver. No matter what the question was, Jones' response went something like this: "The priority right now is to help make the area safe. If it is determined that we were responsible for the cause of the incident, we will take accountability."

"What about reports that the smell of gas was reported three weeks ago?"

"What was the cause of the gas leak?"

"What is PGandE doing to respond to this disaster?"

Those are along the lines of questions asked. Every time, Jones made the same statement. The reporter, in frustration, ended the interview with some sort of wry comment.

Yes, your organization needs a holding statement and, ASAP, some detailed responses. It's not helpful to keep repeating the same statement to every question asked. It sounds like PGandE is hiding something until it decides liability. The utility might as well have said nothing. Jones never should have agreed to an on-air interview if all he had to say was the lawyers' mantra. E-mail your statement to CNN, and if you have nothing more you can say, shut up. There's no law you have to agree to media interviews.

It's Hard To Win When You Play the Blame Game

I laughed out loud the other day. A news item reported that BP was spreading the blame for its fire and oil leak to rig owner Transocean and cement contractor Haliburton. "We will be back with more news after this," was followed by a commercial with a BP employee saying the company accepted "full responsibility for cleaning up the gulf" until "the oil is gone" and "we make this right." (http://bp.concerts.com/gom/Communities_20082010.htm)

The advertising message doesn't match BP's 193-page report that tries to share the liability. I have defended most of BP's communications during the crisis, on this blog and in other op-ed pieces online, but this is a contradiction that isn't right. It sounds like the attorneys got together and decided BP needed to try to spread around the guilt and the communications folks lost the battle.

I'm not the only one questioning the report. These quotes come from http://news.yahoo.com/s/ap/us_gulf_oil_spill:

"'This report is not BP's mea culpa,' said Rep. Edward J. Markey, D-Mass., a member of a congressional panel investigating the spill. 'Of their own eight key findings, they only explicitly take responsibility for half of one. BP is happy to slice up blame as long as they get the smallest piece.'"

"'BP blaming others for the Gulf oil disaster is like Bernie Madoff blaming his accountant,' said Robert Gordon, an attorney for fishermen, hotels, and restaurants affected by the spill."

And in a related AP story: "'This is much like the ringleader of a lynch mob saying, 'Well, I didn't bring the rope.'" (A plaintiff's attorney, W. Mark Lanier)

When you have a crisis, keep in mind the perception of key stakeholders. Maybe Transocean and Haliburton are responsible for some of the blame. But to try to share liability months after the crisis began just makes BP look bad. When you have a crisis, accept blame (when appropriate) and then get your organization off the front page as soon as possible.

This Is What Happens When Self-Serving "Religious" People Seek Fame

It saddens me that some in a country founded by people seeking religious freedom now want to deny that constitutional right to others.

Terry Jones and his people are a minority. Perhaps his actions will enable the majority to realize that not all Muslims are terrorists any more than all Christians are idiots. I found a CNN website to be quite revealing. (http://religion.blogs.cnn.com/2010/09/09/quran-burning-simply-a-publicity-stunt-local-muslims-say/?hpt=T1)

"Dr. Adil Kabeer ... said Jones is no different from the Taliban, a group that has radicalized Islam in order to use the religion to gain power in Afghanistan.

"Members of the Hoda Center mosque said they are not focusing on the pastor who they described as loaded with ignorance. Dr. Rizwana Mansoor says the burning of the Quran is nothing more than a stunt to promote his book (which furthers his 'Islam is the devil' ideology).

"'He is just seeking his 15 minutes of fame,' Mansoor said, pointing out that his actions are not in line with his Christian beliefs."

Some, even before all this, have referred to Jones' church as a cult. This reminds me of a blog post I wrote a year ago about a pastor who made national news with his bring-your-gun-to-church message. Some people will create their own crises for their 15 minutes of fame. I hope Jones' "stunt" (as President Obama called it) doesn't bring violence here or abroad.

Jones doesn't reflect my Christian beliefs any more than Bin Laden reflects Muslim beliefs.

How to Build Your Own Crisis -- Indy Style

This just in. Indianapolis police blotter: "'Coming into a major city you have to recognize that police departments in major cities have scandals ... have corruption sometimes,'" (Frank) Straub said. Straub moved from New York to Indianapolis as the city's new director of public safety: to reform and modernize the city's police department. 'What has happened here, although it is unacceptable, is not untypical of the police profession generally and certainly not untypical for major city departments,' he said." (http://www.wane.com/dpp/news/indiana/Fallout-from-fatal-crash-reaches-Indy's-top-cops-)

Straub was referring to a fatal crash involving a police officer and an alleged coverup of the officer's .19 blood alcohol level. This is "not untypical?" According to the Associated Press, "Straub and his boss, Mayor Greg Ballard, acknowledge that the outcry over the Aug. 6 accident and the investigation that followed, along with a scandal surrounding the beating of a 15-year-old boy during an arrest in May, have weakened public confidence in the city's police." Yep, that'll weaken it all right.

Charles Wilson of the AP wrote, "In the last two years, officers had been accused of trafficking drugs, arson, running a prostitution ring, and taking bribes. Straub said the mayor appointed him to 're-engineer' the city's 1,650-officer department, which had been through a city-county merger that was later dissolved. His goals: less crime, a more professional department, and more officers on patrol in neighborhoods, fighting local crime. Corruption wasn't a priority."

The FBI is investigating the fatality, and Mayor Ballard said no action against the officer involved is appropriate until the results of that investigation are known. But not to worry. "On Saturday, he (Mayor Ballard) announced a set of new rules governing officers' use of alcohol, including a ban on drinking within eight hours of starting a shift." The people in Indianapolis can all sleep easier now!

This is another example of a crisis within the police department and the mayor's office that doesn't need to be happening. Take a note for your own organization. When you have a crisis, fix it. Don't defend it. This mess will drag on for days and weeks and months. Look at the Dismas Charities mess I wrote about below. Same thing: Don't defend and deny. Fix the problem and get off the front page.

Bristol Palin Is Coming; No Reporters Allowed

Speaking of non-profits' blunders, as I did below, here's another poor decision that, although it may not lead to a crisis per se, could cost the organization some donations.

Lifehouse is a 501 (c) 3 organization to help unwed mothers in Louisville, Kentucky. Its fundraising dinner tonight features a keynote presentation by Bristol Palin, who Lifehouse is paying $14,000. You would think that this is a grand opportunity for positive media coverage locally and regionally, right?

Lifehouse apparently doesn't see it that way. It has forbidden news coverage of the fundraiser tonight. No media conference. No interviews. No press passes. Nothing. If I were an editor or news director, you can bet I would be buying a ticket for one of my reporters. Personally, I wouldn't walk across the street to hear what the Dancing-With-the-Stars contestant has to say about single parenthood. But what in the world is Lifehouse thinking? Unless perhaps this is some reverse psychology to ensure this teenager and the organization that is paying her a fortune will get some coverage.

'This Is a Charity, and Charities Aren’t Supposed to Do Things Like This.'

I've been writing about Dismas Charities, a multi-state halfway house non-profit based in Louisville, Kentucky. See the two posts below.

"Rep. Brent Yonts, who serves on the House committee that oversees the Corrections Department budget, called on state Auditor Crit Luallen and Attorney General Jack Conway to examine published reports by The Courier-Journal regarding Dismas’ spending. 'This charity has taken on activities similar to those which were condemned in the past two years by financial institutions in their greed,' Yonts, D-Greenville, wrote. '... The position of Dismas Charities offering no apologies merely adds to the public insult.'" (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010309070055)

Rep. Yonts is exactly right. Dismas has rented suites for University of Louisville football and basketball games. Dismas CEO Ray Weis continues to defended spending on the luxury boxes because the organization made wise investments in the past. But according to The Courier-Journal, 99% of Dismas' funding is from state and federal tax dollars.

“'The public is outraged,' Yonts said in a telephone interview. 'This is a charity, and charities aren’t supposed to do things like this.'”

This is a perfect example of a crisis that was predictable and preventable. Now it won't go away until Dismas makes significant changes, including leaving someone's "blood on the floor."

Trucking Company Belly-Up Following Horrible Crisis Management

If I ran a privately held business that made $2.5 - 5 million dollars a year, I think I would take my operations pretty seriously. Not so for Scott Hester.

Hester is - or was - president of Hester Inc. of Fayette, Alabama. According to the internet (http://www.manta.com/c/mmgq56h/hester-inc), it employs 20 - 49 people, which would give me reason to wonder because of the spread. The Federal Motor Carrier Safety Administration shut Hester down. One of its drivers, allegedly texting and speeding on I-65 in Kentucky, crossed the median and killed 10 people in a van plus himself. The federal government audited Hester after the accident and ordered the company off the road in June when it failed to correct critical violations. "In its report, the Federal Motor Carrier Safety Administration found that Hester committed violations by using drivers before receiving the results of their pre-employment drug tests; allowing a driver on the road who had been suspended after a roadside inspection; and allowing drivers to exceed the 11-hour limits set by federal law."

Hester was fined $13,950 for the violations, but defaulted on the payment. The order to cease operations was effective June 5 but not released until Wednesday, according to The Courier-Journal in Louisville. (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010309010109)

Hester displayed his media-savvy when contacted at his home by a Courier-Journal reporter. His response was, "I don’t owe you any explanation."

Ouch! This is a company that, unfortunately, may deserve to be regulated out of business.

Hasn't Dismas Charities Learned Anything From Other Quasi-Public Organizations?

I'm afraid I must have an evil streak in me. Just as rubberneckers have to slow down to have a look at an accident, I can't help looking at Dismas Charities. See the item below.

Yesterday, the CEO of Dismas, Ray Weis, defended spending the tax-supported, nonprofit's money on luxury boxes at University of Louisville football and basketball games and a tailgating caboose -- a total of some $152,000 a year for these multi-year commitments. In addition, Weis is paid better than most of his nonprofit colleagues at $600,000 in salary and benefits.

“'I am not going to apologize for it,' Weis told reporters at a news conference outside the company's St. Ann's campus on Algonquin Parkway. Reading from a prepared statement, Dismas board chairman James Simon said the leases were funded with 'invested dollars saved over 26 years from sound operational practices and the purchase and sales of properties.'" (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010309020043)

"(Weis) said the payments came from the non-profit's general fund, rather than a separate investment account, but he said most of the money came from the sale of a property in downtown Atlanta several years ago."

Wow, I feel much better now. Except where did the investment dollars come from? Taxpayers' pockets. What if state and federal government had invested all that money in a downtown Atlanta property instead of paying Dismas to operate a halfway house for convicts?

I dissected both the Kentucky Association of Counties (KACo) and the Kentucky League of Cities (KLC) in several blogs last summer after the Herald-Leader in Lexington exposed questionable spending practices. (Scroll down through http://crisisexperts.blogspot.com/search?updated-min=2009-01-01T00%3A00%3A00-05%3A00&updated-max=2010-01-01T00%3A00%3A00-05%3A00&max-results=50) The Dismas response is eerily similar. Bob Arnold, executive director of KACo: "'We have spent a lot of time and money over the last nine years to try to make us a really good business for counties,' he said. 'We are operated by counties, for counties. Do we make money? Yes, we do make some money,' but, he added, that's because KACo does a good job for the counties." (http://www.kentucky.com/2009/06/28/843181/the-high-cost-of-doing-the-counties.html) Arnold soon after was forced to resign. His compensation: $178,080 plus a car and country club membership.

The KLC: "In addition to numerous meetings and travel, the executives enjoy other privileges charged to the League, including a box at Churchill Downs, Ryder Cup tickets, University of Kentucky football and basketball season tickets, and roughly $2,300 spent for (Executive Director Sylvia) Lovely and her husband to fly to Washington, D.C., to attend President Barack Obama's inauguration and the Bluegrass Ball. Lovely said she believes the League is serving cities well. 'I think we stay in touch with those cities,' Lovely said. 'If I could, I'd be in every one of them because my heart is breaking for them for what they're going through. Our travel brings back so much more. If I could explain it to them, I would.'" (http://www.kentucky.com/2009/06/07/820342/league-prospers-as-ky-cities-struggle.html) I guess she couldn't explain it because she, too, was fired. Lovely was making $315,000, had use of a BMW SUV, and often took her husband at the expense of the organization when she traveled.

I'm not always right. Just ask my wife. But Weis and Dismas are in for a rude awakening. Both KACo and KLC are funded by tax dollars, and so is Dismas, whose leader is compensated even better than his deposed counterparts. The status quo is about to change. If only Dismas would ask the Institute for Crisis Management or another qualified crisis communications consultant, we could draw on our history of watching nonprofits and their leaders crash and burn and help Weis prevent a similar fate. An overactive ego can topple even giants.