We have met the enemy, and he is us. Why do organizations do stupid things bound to stir up controversy and crises? This one leaves me shaking my head.
Schools across the country are consumed with ways to improve student improvement and how to meet tightening budgets. Not so in Johnston County Schools in North Carolina. That district has bigger worries: Chapstick.
Wow, now those kids are safe! The News and Observer of Raleigh reports that parents are amazed that the school district would ban the balm.
"'Parents were afraid that children would share the Chapstick and spread germs,' (spokeswoman Terri) Sessoms said. 'By requiring written permission from the parents, parents would be aware that their children had Chapstick and would be able to remind them not to share it with other children. This would also be a way for teachers to be aware so that they could deter students from sharing it with others.'" (http://www.newsobserver.com/2010/11/25/825186/balm-ban-irks-some-parents.html#storylink=misearch)
In addition, hazardous materials such as hand sanitizer, sunscreen, and baby wipes are forbidden without parental approval. "'The sunscreen and hand sanitizer is because children tend to share, and parents have shared concerns that their children have allergic reactions to these items,'" Sessoms said. And to think other school districts are only worried about weapons.
Sessoms pointed out that parental permission is a softening of the previous rules. Then, the health department required doctors' permissions to handle these dangerous materials in school.
"'Is it me or has common sense just gone out the window lately? They seem to ban something new every single year (said Stephanie Boyd, a parent at West View Elementary School).'"
Compare the concern over Chapstick and hand sanitizer with the item below, when a school didn't respond to a rape in a restroom. My point is that we need to keep our focus on what is important. Schools are supposed to educate students to prepare them for the workforce and to keep them safe in the process. I never read about a student dying from baby wipes. I have read about students dying from bullying.
This goes beyond crisis planning. School communicators: You need to be the administration's conscience. Don't let school districts or health departments get away with stupid over-regulation. We have more important crises to deal with than an outbreak of sunscreen in the classroom.
Saturday, November 27, 2010
Friday, November 26, 2010
School Officials Slow To Act To Rape Allegations; Crisis Plan Should Have Prevented Controversy
A high school girl reported to the principal's office in Muncie Community Schools, Indiana, that she had been raped on school property. The superintendent explained the district's policy in cases like this. "'There has to be some basis for which to notify the police,'" Superintendent Eric King said then. "'As soon as something happens, though, we notify the appropriate authorities. Sometimes that is within the school district itself. Other times, when we have facts that are validated, we are including other authorities.'" (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311170091)
Such an approach invites crises and civil suits. Let us dissect. "The 16-year-old girl went to the principal's office around noon on Nov. 9 and reported being raped in the restroom. But school officials told her to put her complaint in writing. Two off-duty police officers, one a detective, were working as security guards at the school, but officials didn't inform them of the rape allegation. Police didn't become involved until about four hours later when the girl was taken to a hospital to be examined."
Superintendent King defended the delay, saying the allegations were "vague" and that administrators wanted to conduct their own investigation before notifying police. The high school principal and two assistant principals were scheduled to give statements to detectives on November 12, three days after the incident, but they canceled. "Schools attorney William Hughes said school officials canceled their Friday appointment because they needed more time to gather information for police."
A police detective and a prosecutor told the Associated Press they were frustrated with the school district's response, or lack of, on the day of the allegations and afterward. District officials have been accused of failure to cooperate with police.
Muncie Schools, in a release on its website, claims it is cooperating fully. "...it is believed they were acting in good faith and without any intent of interfering with law enforcement authorities." (http://www.muncie.k12.in.us/news%20releases.htm)
That isn't my perception, a viewpoint I hope is shared by school board members and the community. "(Sgt. Mike) Engle said the delay in reporting allowed the suspect time to go home and possibly change clothes. He said the alleged victim’s version of events 'has been consistent all the way through.'" The Delaware County prosecutor said school officials should have immediately notified police, "plain and simple."
To not do so smells of a cover-up. School officials may have had good intentions, but not good sense. Remember, perception is reality. The school district should have known better.
You who are responsible for secondary and post-secondary schools' crisis communications planning, keep this example in mind. Make sure your plan clearly spells out that allegations of crimes need to be reported to police immediately. Make sure school and district authorities understand and buy into that policy. Requiring a victim of rape or other violent crime to put the allegations in writing -- I can't think of a word that expresses how insensitive and stupid that is.
By the way, police arrested a 16-year-old boy. He is being charged as an adult and is being held in the Delaware County Jail without bond. Some stories simply don't have happy endings for anybody.
Such an approach invites crises and civil suits. Let us dissect. "The 16-year-old girl went to the principal's office around noon on Nov. 9 and reported being raped in the restroom. But school officials told her to put her complaint in writing. Two off-duty police officers, one a detective, were working as security guards at the school, but officials didn't inform them of the rape allegation. Police didn't become involved until about four hours later when the girl was taken to a hospital to be examined."Superintendent King defended the delay, saying the allegations were "vague" and that administrators wanted to conduct their own investigation before notifying police. The high school principal and two assistant principals were scheduled to give statements to detectives on November 12, three days after the incident, but they canceled. "Schools attorney William Hughes said school officials canceled their Friday appointment because they needed more time to gather information for police."
A police detective and a prosecutor told the Associated Press they were frustrated with the school district's response, or lack of, on the day of the allegations and afterward. District officials have been accused of failure to cooperate with police.
Muncie Schools, in a release on its website, claims it is cooperating fully. "...it is believed they were acting in good faith and without any intent of interfering with law enforcement authorities." (http://www.muncie.k12.in.us/news%20releases.htm)
That isn't my perception, a viewpoint I hope is shared by school board members and the community. "(Sgt. Mike) Engle said the delay in reporting allowed the suspect time to go home and possibly change clothes. He said the alleged victim’s version of events 'has been consistent all the way through.'" The Delaware County prosecutor said school officials should have immediately notified police, "plain and simple."
To not do so smells of a cover-up. School officials may have had good intentions, but not good sense. Remember, perception is reality. The school district should have known better.
You who are responsible for secondary and post-secondary schools' crisis communications planning, keep this example in mind. Make sure your plan clearly spells out that allegations of crimes need to be reported to police immediately. Make sure school and district authorities understand and buy into that policy. Requiring a victim of rape or other violent crime to put the allegations in writing -- I can't think of a word that expresses how insensitive and stupid that is.
By the way, police arrested a 16-year-old boy. He is being charged as an adult and is being held in the Delaware County Jail without bond. Some stories simply don't have happy endings for anybody.
Thursday, November 25, 2010
Cattle Company Gives Customers and Creditors a Bum Steer
This story reminds me of the financial industry disaster that helped kick off this economic crisis. I wonder how, if someone knew the company was in trouble, he or she didn't tell anyone. It could be that everyone in the know is feeding at the same trough. Maybe, in a privately held company like I'm about to tell you about, the owner holds his cards close to his chest.
The Eastern Livestock Co., with headquarters in New Albany, Indiana, is under investigation by the U.S. Justice Department after being accused of issuing millions of dollars in bad checks and not making payments for cattle it had brokered. According to the company's website (http://www.easternlivestock.net/AboutUs/tabid/570/Default.aspx), "In 1982 Thomas P. Gibson (one of the 1952 founders) and John S. Gibson (his brother) formalized their business and became Eastern Livestock Co.... Today, Eastern Livestock Co., LLC... has branch facilities in eleven states. Our satisfied customer base is still expanding and we continue to do business in every cattle-producing state in the country. Through our network of cattle representatives we have access on a daily basis to large quantities of all types of feeder and replacement cattle, allowing us to remain extremely competitive in meeting the very specific needs of any operation, however big or small. "
None of those self-aggrandizing statements rings true. The U.S. Department of Agriculture says Eastern Livestock wrote at least $81 million in bad checks between November 3 and 9. Two weeks ago, an Ohio court appointed a receiver to take over Eastern Livestock because Fifth-Third Bank froze its accounts, claiming the company stole $13 million "in a sophisticated check-kiting scheme." Eastern Livestock also defaulted on a $32.5 million loan.
"The situation has left cattlemen like Kentucky’s Lynn Hirsch empty-handed. Hirsch said he thought it was business as usual Nov. 3 when he loaded 51 Holstein steers onto a truck and sold them to Eastern on a promise that he’d get paid the next day.... But this time, Hirsch said, no check arrived, and his calls to Eastern... went unanswered."
"(Another) one of those cattlemen is Kentucky state Rep. Johnny Bell, who said he sold 12 beef calves to Eastern at Edmonton (Kentucky) for $6,300.
“'I called them the day that my check bounced and they told me it was a glitch in some transferring of some funds and not to worry about it,'” he recalled. “'And we tried to call the next day, and of course nobody would answer.'”
(http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311170116)
There's a cliche that says there's no use closing the barn door after the horses are out. That might be true in this case. If the owner is in prison and the company's financial problems are not salvageable, there's not much any crisis consultant can do to save the company. But the Eastern Livestock crisis is unusual. Most of the time, a crisis communications consultant can advise a series of steps that include key audiences, messages, staff duties, and follow-up communications to mend bridges and prepare for possible aftershocks.
Better, develop a crisis communications plan that will make any kind of crisis run smoother and end sooner. The Institute for Crisis Management can write a plan for you or help you write one yourself. A good idea is to look into ICM's two-day certification course. Check it out at http://www.crisisexperts.com/certcourses_main.htm.
The Eastern Livestock Co., with headquarters in New Albany, Indiana, is under investigation by the U.S. Justice Department after being accused of issuing millions of dollars in bad checks and not making payments for cattle it had brokered. According to the company's website (http://www.easternlivestock.net/AboutUs/tabid/570/Default.aspx), "In 1982 Thomas P. Gibson (one of the 1952 founders) and John S. Gibson (his brother) formalized their business and became Eastern Livestock Co.... Today, Eastern Livestock Co., LLC... has branch facilities in eleven states. Our satisfied customer base is still expanding and we continue to do business in every cattle-producing state in the country. Through our network of cattle representatives we have access on a daily basis to large quantities of all types of feeder and replacement cattle, allowing us to remain extremely competitive in meeting the very specific needs of any operation, however big or small. "
None of those self-aggrandizing statements rings true. The U.S. Department of Agriculture says Eastern Livestock wrote at least $81 million in bad checks between November 3 and 9. Two weeks ago, an Ohio court appointed a receiver to take over Eastern Livestock because Fifth-Third Bank froze its accounts, claiming the company stole $13 million "in a sophisticated check-kiting scheme." Eastern Livestock also defaulted on a $32.5 million loan.
"The situation has left cattlemen like Kentucky’s Lynn Hirsch empty-handed. Hirsch said he thought it was business as usual Nov. 3 when he loaded 51 Holstein steers onto a truck and sold them to Eastern on a promise that he’d get paid the next day.... But this time, Hirsch said, no check arrived, and his calls to Eastern... went unanswered."
"(Another) one of those cattlemen is Kentucky state Rep. Johnny Bell, who said he sold 12 beef calves to Eastern at Edmonton (Kentucky) for $6,300.
“'I called them the day that my check bounced and they told me it was a glitch in some transferring of some funds and not to worry about it,'” he recalled. “'And we tried to call the next day, and of course nobody would answer.'”
(http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311170116)
There's a cliche that says there's no use closing the barn door after the horses are out. That might be true in this case. If the owner is in prison and the company's financial problems are not salvageable, there's not much any crisis consultant can do to save the company. But the Eastern Livestock crisis is unusual. Most of the time, a crisis communications consultant can advise a series of steps that include key audiences, messages, staff duties, and follow-up communications to mend bridges and prepare for possible aftershocks.
Better, develop a crisis communications plan that will make any kind of crisis run smoother and end sooner. The Institute for Crisis Management can write a plan for you or help you write one yourself. A good idea is to look into ICM's two-day certification course. Check it out at http://www.crisisexperts.com/certcourses_main.htm.
What would Your Financial Base Think About Your Dirty Little Secrets?
I wrote earlier about Passport Health Plan, which provides health care under contract with the state of Kentucky for Medicaid recipients in 16 counties. A state auditor’s report blasted the organization for extravagant spending on such things as lobbying, meals, and travel. This is a political animal supported by tax dollars. We knew something was going to blow.
And it did. Governor Steve Beshear ordered a complete overhaul of Passport’s management. The first step was to fire CEO Dr. Larry Cook. According to The Courier-Journal in Louisville, two vice presidents who lead staffers will be next to go. The governor wants a “top to-bottom change in management and a total reorganization in the governing structure of Passport.” ( See http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311200039 for an informative editorial.)
State Senator Tim Shaughnessy, D-Louisville, who asked for the audit, pointed out that it took Passport’s board a week before it met. “They just don’t get it,” Shaughnessy said. When at last it did meet, the board closed the meeting to the public and media, even though a ruling last summer declared Passport subject to the Open Records Act. Dr. Cook appeared at a news conference, by himself and without any board members. “We have made some mistakes,” he understated.
Groups like this, largely or completed funded by the taxpayers, should have learned something from the debacles of others. Those organizations not supported by taxes also need to take heed. Every vice president, every CEO, and every board member must answer to someone who controls the purse strings. It’s important to assess periodically your fiscal condition. Ask yourself, “What would those donors, customers, or taxpayers perceive of our spending practices.” If Passport had done that, it could have avoided this smoldering crisis.
And it did. Governor Steve Beshear ordered a complete overhaul of Passport’s management. The first step was to fire CEO Dr. Larry Cook. According to The Courier-Journal in Louisville, two vice presidents who lead staffers will be next to go. The governor wants a “top to-bottom change in management and a total reorganization in the governing structure of Passport.” ( See http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311200039 for an informative editorial.)
State Senator Tim Shaughnessy, D-Louisville, who asked for the audit, pointed out that it took Passport’s board a week before it met. “They just don’t get it,” Shaughnessy said. When at last it did meet, the board closed the meeting to the public and media, even though a ruling last summer declared Passport subject to the Open Records Act. Dr. Cook appeared at a news conference, by himself and without any board members. “We have made some mistakes,” he understated.
Groups like this, largely or completed funded by the taxpayers, should have learned something from the debacles of others. Those organizations not supported by taxes also need to take heed. Every vice president, every CEO, and every board member must answer to someone who controls the purse strings. It’s important to assess periodically your fiscal condition. Ask yourself, “What would those donors, customers, or taxpayers perceive of our spending practices.” If Passport had done that, it could have avoided this smoldering crisis.
Tuesday, November 23, 2010
Check Out the ICM Blog Post Regarding the Airport Security Crisis
The airport security issue is a crisis. Larry Smith, Institute for Crisis Management, asks the "duh" questions on his blog. I dread the next flight I take. I saw samples of those body scan pictures and recall why I never posed for Playgirl.
"When TSA rushed their new 'pat-down' procedures in to operations this week, you would have thought they would have considered all the complications their new 'security grope' would face. In fact, they've had weeks to prepare to step up their so-called pat down procedures since the underwear bomber failed and months since the shoe bomber failed. Did no one consider all the implants and medical devices that humans wear to stay alive, or just to appear more normal after life-threatening disease, accidents or surgery?"
Check out Larry's perspective at http://www.crisisconsultants.blogspot.com/.
"When TSA rushed their new 'pat-down' procedures in to operations this week, you would have thought they would have considered all the complications their new 'security grope' would face. In fact, they've had weeks to prepare to step up their so-called pat down procedures since the underwear bomber failed and months since the shoe bomber failed. Did no one consider all the implants and medical devices that humans wear to stay alive, or just to appear more normal after life-threatening disease, accidents or surgery?"
Check out Larry's perspective at http://www.crisisconsultants.blogspot.com/.
Massey Energy, As Always, Is Clear As Mud In Its Communications
I must be getting lazy. This is too easy.
Massey Energy. Do I need to say more? This is the company responsible for a coal mine explosion in West Virginia last April that killed 29 workers. This also is the same company that saw MSHA "conduct 247 interviews in its investigation, but several top Massey officials have declined to be interviewed and are challenging the agency's subpoenas in court." This is the same company cited for hundreds of mining safety violations this year alone. And it's the same company whose CEO threatened to shoot a TV news crew if it didn't leave the company's parking lot. If you scan previous blogs, you'll find plenty about Massey, whose days as a company are numbered.
In the latest news, Massey's board recommended the company "review its strategic alternatives, without disclosing the possibilities or giving a timetable." That CEO referred to above, Don Blankenship, said this month a merger or acquisition was possible.
A Massey news release cleared things up nicely: "The Company does not intend to disclose developments regarding this process unless and until its Board of Directors approves a specific transaction or otherwise concludes its review of strategic alternatives." (http://phx.corporate-ir.net/phoenix.zhtml?c=102864&p=irol-newsArticle&ID=1499536&highlight=)
I look back to Sierra Pre-Filled, perhaps the worst company I ever saw. It sold contaminated hypodermic needles and killed dozens a couple years ago. The owner locked the doors and fled the country. Massey is looking like a close second. (Okay, third after Peanut Corporation of America.) At least Blankenship hasn't gone into hiding -- yet. But this is a company with crises at its mines and in its boardroom pretty much every week. Please don't let this be you. Plan for all conceivable crises and be honest with your key stakeholders. Massey hasn't done that, and thus is a company that soon will fade away. I hope its communications people are sending out their resumes.
Massey Energy. Do I need to say more? This is the company responsible for a coal mine explosion in West Virginia last April that killed 29 workers. This also is the same company that saw MSHA "conduct 247 interviews in its investigation, but several top Massey officials have declined to be interviewed and are challenging the agency's subpoenas in court." This is the same company cited for hundreds of mining safety violations this year alone. And it's the same company whose CEO threatened to shoot a TV news crew if it didn't leave the company's parking lot. If you scan previous blogs, you'll find plenty about Massey, whose days as a company are numbered.
In the latest news, Massey's board recommended the company "review its strategic alternatives, without disclosing the possibilities or giving a timetable." That CEO referred to above, Don Blankenship, said this month a merger or acquisition was possible.
A Massey news release cleared things up nicely: "The Company does not intend to disclose developments regarding this process unless and until its Board of Directors approves a specific transaction or otherwise concludes its review of strategic alternatives." (http://phx.corporate-ir.net/phoenix.zhtml?c=102864&p=irol-newsArticle&ID=1499536&highlight=)
I look back to Sierra Pre-Filled, perhaps the worst company I ever saw. It sold contaminated hypodermic needles and killed dozens a couple years ago. The owner locked the doors and fled the country. Massey is looking like a close second. (Okay, third after Peanut Corporation of America.) At least Blankenship hasn't gone into hiding -- yet. But this is a company with crises at its mines and in its boardroom pretty much every week. Please don't let this be you. Plan for all conceivable crises and be honest with your key stakeholders. Massey hasn't done that, and thus is a company that soon will fade away. I hope its communications people are sending out their resumes.
Tuesday, November 16, 2010
Keep an Eye on Those Politicians
Elected and appointed public servants can -- and too often do -- lead to crises. For example, a House ethics subcommittee today found New York's Rep. Charlie Rangel guilty of multiple violations of House rules. The subcommittee found "clear and convincing" evidence of guilt on 11 of 12 counts, including failing to pay taxes on a home in the Dominican Republic, misuse of a rent-controlled apartment for political purposes and improper use of government mail service and letterhead. (http://www.cnn.com/2010/POLITICS/11/16/rangel.ethics.hearing/index.html?hpt=T2)
In southern Idaho, where I used to live, U.S. Bankruptcy Court showed John Bujak has debts of nearly $1.3 million and about $526,000 in assets. Bujak was the Canyon County prosecutor until he resigned Sept. 30 after failing to pay the county $302,000 he owed from a contract to handle misdemeanor prosecutions for the city of Nampa. (http://www.idahostatesman.com/2010/11/16/1420097/bujaks-bankruptcy-papers-paint.html)
I guess I'm not a high roller, but there's no way I could spend $1.3 million, let alone fall that far into debt. I'm glad I don't roll with the Bujaks. "The papers show the Bujaks owe about $567,000 on first and second mortgages for their Caldwell home, which is valued at about $468,000. They also owe nearly $32,000 on a 2007 Cadillac Escalade with a listed value about $300 less than the debt.... Other debts, all unsecured, include about $122,000 in student loans dating from th e 1990s, more than $14,000 in county, state and federal taxes, and $300,000 owed to Canyon County —although that debt is designated as “disputed” on the paperwork....
"Canyon County commissioners have hired an attorney and said they will pursue all available options to recoup the money Bujak owes. Meanwhile, Idaho State Police and the Latah County prosecutor are investigating whether any criminal charges are appropriate.
Politicians and managers can create crises for their organizations. It's essential to watch those in charge to reduce the risk of scandal.
In southern Idaho, where I used to live, U.S. Bankruptcy Court showed John Bujak has debts of nearly $1.3 million and about $526,000 in assets. Bujak was the Canyon County prosecutor until he resigned Sept. 30 after failing to pay the county $302,000 he owed from a contract to handle misdemeanor prosecutions for the city of Nampa. (http://www.idahostatesman.com/2010/11/16/1420097/bujaks-bankruptcy-papers-paint.html)
I guess I'm not a high roller, but there's no way I could spend $1.3 million, let alone fall that far into debt. I'm glad I don't roll with the Bujaks. "The papers show the Bujaks owe about $567,000 on first and second mortgages for their Caldwell home, which is valued at about $468,000. They also owe nearly $32,000 on a 2007 Cadillac Escalade with a listed value about $300 less than the debt.... Other debts, all unsecured, include about $122,000 in student loans dating from th e 1990s, more than $14,000 in county, state and federal taxes, and $300,000 owed to Canyon County —although that debt is designated as “disputed” on the paperwork....
"Canyon County commissioners have hired an attorney and said they will pursue all available options to recoup the money Bujak owes. Meanwhile, Idaho State Police and the Latah County prosecutor are investigating whether any criminal charges are appropriate.
Politicians and managers can create crises for their organizations. It's essential to watch those in charge to reduce the risk of scandal.
Sunday, November 14, 2010
Passport Medical Services Is Crisis Ready to Happen
I don't like blogging on the same subject three days in a row. But Passport Medical Services is just too easy to pick on.
"In the aftermath of a devastating investigation by state Auditor Crit Luallen, those seeking to understand how Passport Medical Services wound up in this mess will find them in the auditor's own words: 'Passport plays such a vital role in the lives of many Kentuckians, it is imperative that it use state and federal Medicaid funds in an equitable and transparent manner.'
"Yet transparency was apparently the last thing that Passport's officials wanted. That's why they resisted efforts by a state senator to obtain records related to reimbursements and spending on travel, memberships, entertainment and the like. That's why they rejected this newspaper's request under the state sunshine law for such records, resulting in an attorney general's opinion ordering them to release the materials. That's why Passport's attorneys are appealing that ruling to circuit court. And that's why Auditor Crit Luallen was called onto the case, and she had to affirmatively declare that Passport is a public agency, and as such subject to public scrutiny. For an agency that distributes nearly $800 million each year in Medicaid funds, there shouldn't even be an issue here. Of course Passport is a public agency. But its lawyers argue differently. The same thing has happened again and again with non-profits affiliated with public agencies." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311140024)
It makes no difference if you work for a for-profit, not-for-profit, or government agency, you are ripe for a crisis. Are you ready?
"In the aftermath of a devastating investigation by state Auditor Crit Luallen, those seeking to understand how Passport Medical Services wound up in this mess will find them in the auditor's own words: 'Passport plays such a vital role in the lives of many Kentuckians, it is imperative that it use state and federal Medicaid funds in an equitable and transparent manner.'
"Yet transparency was apparently the last thing that Passport's officials wanted. That's why they resisted efforts by a state senator to obtain records related to reimbursements and spending on travel, memberships, entertainment and the like. That's why they rejected this newspaper's request under the state sunshine law for such records, resulting in an attorney general's opinion ordering them to release the materials. That's why Passport's attorneys are appealing that ruling to circuit court. And that's why Auditor Crit Luallen was called onto the case, and she had to affirmatively declare that Passport is a public agency, and as such subject to public scrutiny. For an agency that distributes nearly $800 million each year in Medicaid funds, there shouldn't even be an issue here. Of course Passport is a public agency. But its lawyers argue differently. The same thing has happened again and again with non-profits affiliated with public agencies." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311140024)
It makes no difference if you work for a for-profit, not-for-profit, or government agency, you are ripe for a crisis. Are you ready?
Saturday, November 13, 2010
Don't Let Your Organization Remain in Denial When Crisis Strikes
I have an update on the Passport crisis I wrote about yesterday below. This illustrates how aftershocks can make a crisis worse by keeping your organization in negative headlines for days, weeks, and sometimes months.
The Courier-Journal in Louisville today published a story about State Senator Tim Shaughnessy, who called for overhauling the board that oversees Passport Health Plan. "The Passport board is appointed by and made up of employees of Passport’s provider members: University Medical Center, University Physicians Associates, Norton Healthcare, Jewish Hospital and St. Mary’s Healthcare, and the Louisville/Jefferson County Primary Care Association. Shaughnessy contended that the board needs to have community and state representation to make sure Passport keeps medical care for poor people as its overriding goal." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311120070)
"The scathing report, which Gov. Steve Beshear described as 'disheartening,' said two Passport Health Plan officials — Executive Vice President Shannon Turner and Associate Vice President Nici Gaines — were paid well, ate well and traveled extensively. (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311090031) The latest from Turner: "Shannon Turner, executive vice president of Passport, didn’t return a call seeking comment."
"Passport was formed in 1997 in an effort to reduce the cost of Medicaid in Louisville and 15 surrounding counties. Most have agreed that Passport has done just that, and the report didn’t quarrel with its ability to provide medical services to the poor. Nor did it claim that Passport broke any laws. But the auditor’s office did raise questions about how money was spent and whether its board was manipulating numbers in an effort to get more lucrative contracts in the future."
It seems the Passport board remains in denial. The sooner your organization recognizes a crisis and takes steps to deal with it, the sooner you will return to business as normal. Passport is a long way from normal.
The Courier-Journal in Louisville today published a story about State Senator Tim Shaughnessy, who called for overhauling the board that oversees Passport Health Plan. "The Passport board is appointed by and made up of employees of Passport’s provider members: University Medical Center, University Physicians Associates, Norton Healthcare, Jewish Hospital and St. Mary’s Healthcare, and the Louisville/Jefferson County Primary Care Association. Shaughnessy contended that the board needs to have community and state representation to make sure Passport keeps medical care for poor people as its overriding goal." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311120070)
"The scathing report, which Gov. Steve Beshear described as 'disheartening,' said two Passport Health Plan officials — Executive Vice President Shannon Turner and Associate Vice President Nici Gaines — were paid well, ate well and traveled extensively. (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311090031) The latest from Turner: "Shannon Turner, executive vice president of Passport, didn’t return a call seeking comment."
"Passport was formed in 1997 in an effort to reduce the cost of Medicaid in Louisville and 15 surrounding counties. Most have agreed that Passport has done just that, and the report didn’t quarrel with its ability to provide medical services to the poor. Nor did it claim that Passport broke any laws. But the auditor’s office did raise questions about how money was spent and whether its board was manipulating numbers in an effort to get more lucrative contracts in the future."
It seems the Passport board remains in denial. The sooner your organization recognizes a crisis and takes steps to deal with it, the sooner you will return to business as normal. Passport is a long way from normal.
Friday, November 12, 2010
Another Kentucky Agency Caught Making Inappropriate Expenditures
I'm afraid I'm getting lazy. I've written here about easy targets that abuse taxpayer dollars: Blue Grass Airport, the Kentucky League of Cities, the Kentucky Association of Counties, and Dismas Charities, to name a few. I can't resist the temptation to blog about Passport, an organization that provides Medicaid services for a group of counties in Kentucky. It's too easy for me to repeat the same message.
We knew something wasn't right early this year when The Courier-Journal (Louisville) filed a request under open-records laws to review executive compensation and board minutes. Passport refused and The C-J took the matter to the attorney general, who said Passport is 100% publicly funded and therefore must turn over the requested information. Passport ignored the order, which is now pending before the Jefferson Circuit Court.
Since then, State Auditor Crit Luallen has investigated Passport and issued a highly critical report against its spending practices. (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311090031) "The scathing report, which Gov. Steve Beshear described as 'disheartening,' said two Passport Health Plan officials — Executive Vice President Shannon Turner and Associate Vice President Nici Gaines — were paid well, ate well and traveled extensively. 'Lodgings were often luxury spas and resorts,' the report said. 'The executives used limousine services and dined at expensive restaurants. While these types of expenditures may be routine for many private, for-profit companies, they should not be typical in nonprofit, health care organizations.' The report also said Passport made extraordinary efforts to burnish its public image and gain political support by spending $1 million since 2007 on lobbying and public relations, as well as $423,000 in donations and sponsorships. Many of the donations had no connection with health care, the report said — including $600 to sponsor a reception for the Senate Republican majority in 2009, $10,000 to sponsor an 'inflatable character' for the Kentucky Derby Festival's Pegasus Parade, and contributions to the Boy Scouts, Kentucky Opera, Volunteers of America and others."
Turner's compensation in salary and bonuses the last three years averaged $285,000. Gaines was paid $156,000 in salary and bonuses last year, and her base salary increased 32.6% since 2007. The auditor’s report made 20 findings and even more recommendations calling for accountability and transparency in the organization.
“'Outrageous and irresponsible,' said (state Sen. Tim Shaughnessy, D-Louisville, who instigated the audit.). 'It's a wake-up call for all of us, especially the board of trustees at (the University of Louisville) ... because U of L runs Passport.' U of L President James Ramsey released a statement Tuesday that asked the Passport board 'to address the findings of the audit so the most fragile citizens of our region continue to receive first-class health care.'"
The Courier-Journal article contained the million-dollar question: "In a statement, House Speaker Greg Stumbo, D-Prestonsburg, applauded the work of Luallen’s office but asked why the Cabinet for Health and Family Services had not caught such excesses."
In each case of misspent taxpayer dollars I've written about here, someone knew about the waste, whether it's the board of directors, an auditing firm, or a government agency. But time after time, no action was taken. If, in this case, the Cabinet for Health and Family Services had been vigilant, the state auditor, the governor, the state senator, and the U of L president would never have become involved, and the taxpayers never would have known. What is it about over-spending that these quasi-public agencies don't get?
If you work for an organization vulnerable to public scrutiny of spending practices, take action today to encourage the top dogs to cut it out. It's so much easier to quietly do the right thing than to be forced to do so in the public arena. You need a crisis communications plan, and part of that plan should describe how you and your organization will respond if someone accuses you of misappropriating funds. You don't have to be guilty, but you do have to be ready.
We knew something wasn't right early this year when The Courier-Journal (Louisville) filed a request under open-records laws to review executive compensation and board minutes. Passport refused and The C-J took the matter to the attorney general, who said Passport is 100% publicly funded and therefore must turn over the requested information. Passport ignored the order, which is now pending before the Jefferson Circuit Court.
Since then, State Auditor Crit Luallen has investigated Passport and issued a highly critical report against its spending practices. (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2010311090031) "The scathing report, which Gov. Steve Beshear described as 'disheartening,' said two Passport Health Plan officials — Executive Vice President Shannon Turner and Associate Vice President Nici Gaines — were paid well, ate well and traveled extensively. 'Lodgings were often luxury spas and resorts,' the report said. 'The executives used limousine services and dined at expensive restaurants. While these types of expenditures may be routine for many private, for-profit companies, they should not be typical in nonprofit, health care organizations.' The report also said Passport made extraordinary efforts to burnish its public image and gain political support by spending $1 million since 2007 on lobbying and public relations, as well as $423,000 in donations and sponsorships. Many of the donations had no connection with health care, the report said — including $600 to sponsor a reception for the Senate Republican majority in 2009, $10,000 to sponsor an 'inflatable character' for the Kentucky Derby Festival's Pegasus Parade, and contributions to the Boy Scouts, Kentucky Opera, Volunteers of America and others."
Turner's compensation in salary and bonuses the last three years averaged $285,000. Gaines was paid $156,000 in salary and bonuses last year, and her base salary increased 32.6% since 2007. The auditor’s report made 20 findings and even more recommendations calling for accountability and transparency in the organization.
“'Outrageous and irresponsible,' said (state Sen. Tim Shaughnessy, D-Louisville, who instigated the audit.). 'It's a wake-up call for all of us, especially the board of trustees at (the University of Louisville) ... because U of L runs Passport.' U of L President James Ramsey released a statement Tuesday that asked the Passport board 'to address the findings of the audit so the most fragile citizens of our region continue to receive first-class health care.'"
The Courier-Journal article contained the million-dollar question: "In a statement, House Speaker Greg Stumbo, D-Prestonsburg, applauded the work of Luallen’s office but asked why the Cabinet for Health and Family Services had not caught such excesses."
In each case of misspent taxpayer dollars I've written about here, someone knew about the waste, whether it's the board of directors, an auditing firm, or a government agency. But time after time, no action was taken. If, in this case, the Cabinet for Health and Family Services had been vigilant, the state auditor, the governor, the state senator, and the U of L president would never have become involved, and the taxpayers never would have known. What is it about over-spending that these quasi-public agencies don't get?
If you work for an organization vulnerable to public scrutiny of spending practices, take action today to encourage the top dogs to cut it out. It's so much easier to quietly do the right thing than to be forced to do so in the public arena. You need a crisis communications plan, and part of that plan should describe how you and your organization will respond if someone accuses you of misappropriating funds. You don't have to be guilty, but you do have to be ready.
Thursday, November 11, 2010
School Bus Wreck Exposes District's Failure to Prepare for Crisis
The Institute for Crisis Management strongly recommends that organizations have three crisis plans, and ideally they should be rolled into one. The first plan is the operational plan: how to fight the fire, how to keep everyone safe. The second plan is the communications plan: how to communicate with the people directly involved, how to communicate with their families, and others. The third plan is the continuity and recovery plan. (http://www.pittsburghlive.com/x/valleyindependent/news/s_708647.html) 
The Monessen School District near Pittsburgh apparently has none of the above. How can you handle thousands of students a day without a single plan to deal with a crisis?
Monessen has a contract with Hill Top Bus Line, owned by George B Kessler Jr. The company has no web site and I can't find any information online about the company. Earlier this week, one of its buses transporting elementary students was involved in an accident.
"District Superintendent Dr. Cynthia Chelen said she received numerous calls from parents upset that they had not been informed about the accident.... When the secretary finally reached a dispatcher at the Hill Top Bus garage, Chelen said, she was told the accident was minor, no one was hurt and the children had been taken home. Chelen said school officials received no telephone calls from police, nor the bus garage. She said she didn't learn until late Monday from a news reporter that children had been injured." (http://www.pittsburghlive.com/x/valleyindependent/news/s_708647.html)
Clearly, the school district didn't have an operational plan in the event a bus contractor had an accident. Is there a chance the school district was prepared with a crisis communications plan or recovery plan? No way.
“The school district notified no parents or anybody of the accident,” said parent Randi Weaver. “They continued to let (the bus driver), with the front end of the bus smashed drive the other children home.
"A neighbor called (Tim) Backus (father of a five-year-old) to the accident scene and he took Heather to a nearby hospital to be checked for bruises to her face. She was released. Monessen City Superintendent Dr. Cynthia Chelen said that the bus company, Hill Top Bus Line, never notified the school district about the accident. “We’re going to sit down and put together a plan that we’ll follow (in the event of a future accident), and we will bring the students back to school if the bus is operable,” Chelen said. When reporters went to the door of the Hill Top Bus Line’s office on Tuesday afternoon no one answered and they have not returned any phone calls for comment. (http://www.legalinfo360.com/2010/11/monessen-school-district-parents-upset-about-bus-accident/)
Hill Top has no website. Instead, it's a disaster waiting to come. (http://www.manta.com/c/mm7tnl4/hill-top-bus-line) That doesn't excuse the Monessen School District from responsibility for its transported kids. The district owes it to the tax payers and parents to deliver children to and from home safely. Creating an operational safety plan is a first step. Developing a plan to communicate with parents and other key stakeholders is perhaps as important. And when things go wrong, as they did in Monessen, how do you restore the trust and integrity of the school system?
Whether you are a private company or tax-supported organization, who are your key stakeholders? Do you have a plan to communicate with them in case of a crisis?
The Monessen School District near Pittsburgh apparently has none of the above. How can you handle thousands of students a day without a single plan to deal with a crisis?Monessen has a contract with Hill Top Bus Line, owned by George B Kessler Jr. The company has no web site and I can't find any information online about the company. Earlier this week, one of its buses transporting elementary students was involved in an accident.
"District Superintendent Dr. Cynthia Chelen said she received numerous calls from parents upset that they had not been informed about the accident.... When the secretary finally reached a dispatcher at the Hill Top Bus garage, Chelen said, she was told the accident was minor, no one was hurt and the children had been taken home. Chelen said school officials received no telephone calls from police, nor the bus garage. She said she didn't learn until late Monday from a news reporter that children had been injured." (http://www.pittsburghlive.com/x/valleyindependent/news/s_708647.html)
Clearly, the school district didn't have an operational plan in the event a bus contractor had an accident. Is there a chance the school district was prepared with a crisis communications plan or recovery plan? No way.
“The school district notified no parents or anybody of the accident,” said parent Randi Weaver. “They continued to let (the bus driver), with the front end of the bus smashed drive the other children home.
"A neighbor called (Tim) Backus (father of a five-year-old) to the accident scene and he took Heather to a nearby hospital to be checked for bruises to her face. She was released. Monessen City Superintendent Dr. Cynthia Chelen said that the bus company, Hill Top Bus Line, never notified the school district about the accident. “We’re going to sit down and put together a plan that we’ll follow (in the event of a future accident), and we will bring the students back to school if the bus is operable,” Chelen said. When reporters went to the door of the Hill Top Bus Line’s office on Tuesday afternoon no one answered and they have not returned any phone calls for comment. (http://www.legalinfo360.com/2010/11/monessen-school-district-parents-upset-about-bus-accident/)
Hill Top has no website. Instead, it's a disaster waiting to come. (http://www.manta.com/c/mm7tnl4/hill-top-bus-line) That doesn't excuse the Monessen School District from responsibility for its transported kids. The district owes it to the tax payers and parents to deliver children to and from home safely. Creating an operational safety plan is a first step. Developing a plan to communicate with parents and other key stakeholders is perhaps as important. And when things go wrong, as they did in Monessen, how do you restore the trust and integrity of the school system?
Whether you are a private company or tax-supported organization, who are your key stakeholders? Do you have a plan to communicate with them in case of a crisis?
Saturday, November 6, 2010
Massey Energy Fails To Cooperate in Mine Explosion Investigation
One doesn't need to look far to find blog posts about Massey Energy and CEO Don Blankenship. This is a company in crisis that is doing little to nothing to communicate with stakeholders to attempt to disassociate itself from the crisis. Here is the latest:
"A federal criminal investigation into the Upper Big Branch mine explosion does not include a probe into whether Massey Energy employees bribed mine inspectors, the region's prosecutor said Friday.
"R. Booth Goodwin II, the U.S. Attorney for Southern West Virginia, forcefully denied a report by Bloomberg News -- citing an unnamed source -- that two separate grand juries were investigating whether Massey employees were paying off inspectors from the federal Mine Safety and Health Administration in exchange for eased scrutiny of their mines' safety practices....
"The April 5 explosion at the Upper Big Branch mine, owned by a Massey subsidiary, killed 29 men, the deadliest mine disaster in four decades. In addition to the criminal investigation, MSHA, Massey, the state of West Virginia, an independent panel convened by West Virginia Gov. Joe Manchin and Congress are conducting separate investigations into the blast.
"Possible criminal conduct uncovered in MSHA's interviews so far includes a claim that an electrician disabled a methane detector in order to allow a continuous mining machine to keep running.
"MSHA, as of Oct. 27, had conducted 247 interviews in its investigation, but several top Massey officials have declined to be interviewed and are challenging the agency's subpoenas in court. By conducting the interviews behind closed doors, the company argues, the agency gave up its congressionally authorized subpoena power." (http://www.post-gazette.com/pg/10310/1101117-28.stm)
"A federal criminal investigation into the Upper Big Branch mine explosion does not include a probe into whether Massey Energy employees bribed mine inspectors, the region's prosecutor said Friday.
"R. Booth Goodwin II, the U.S. Attorney for Southern West Virginia, forcefully denied a report by Bloomberg News -- citing an unnamed source -- that two separate grand juries were investigating whether Massey employees were paying off inspectors from the federal Mine Safety and Health Administration in exchange for eased scrutiny of their mines' safety practices....
"The April 5 explosion at the Upper Big Branch mine, owned by a Massey subsidiary, killed 29 men, the deadliest mine disaster in four decades. In addition to the criminal investigation, MSHA, Massey, the state of West Virginia, an independent panel convened by West Virginia Gov. Joe Manchin and Congress are conducting separate investigations into the blast.
"Possible criminal conduct uncovered in MSHA's interviews so far includes a claim that an electrician disabled a methane detector in order to allow a continuous mining machine to keep running.
"MSHA, as of Oct. 27, had conducted 247 interviews in its investigation, but several top Massey officials have declined to be interviewed and are challenging the agency's subpoenas in court. By conducting the interviews behind closed doors, the company argues, the agency gave up its congressionally authorized subpoena power." (http://www.post-gazette.com/pg/10310/1101117-28.stm)
Friday, November 5, 2010
E. Coli in Cheese Communicated by Government, Not by Those Responsible
No Gouda can come from this story. Costco, the Food and Drug Administration, and the Centers for Disease Control issued a recall of Gouda cheese produced by Bravo Farms. "As of Nov. 4, (Bravo Farms Dutch Style Gouda Cheese) had been linked to 25 cases of E. coli infection in the five states and 9 hospitalizations." Those five states are Arizona, California, Colorado, New Mexico, and Nevada. (http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm232748.htm)
You didn't even have to buy the cheese to contract E. coli. Many Costco stores have been distributing free samples to shoppers.
How are people finding out that their Gouda is no good? I heard it on the news in a state that isn't even affected. But to look at websites, you never would know there's a serious problem. FDA warns consumers to beware. (http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm232748.htm) But I see nothing on Costco's website warning customers of a contamination problem. (http://www.costco.com/home.aspx?lang=en-US) Worse, Bravo Farms website still promotes its Gouda cheese without reference to the Costco problems. (http://www.costco.com/home.aspx?lang=en-US)
I suppose the crisis communications plans of both companies say, "Ignore a crisis and it will go away." Sometimes that happens. But do you really want to take a chance like that? The reputations, and therefore the sales, of both companies depend on consumer trust. I don't think sweeping the dirt under a rug is ever the best solution for dealing with a crisis.
You didn't even have to buy the cheese to contract E. coli. Many Costco stores have been distributing free samples to shoppers.How are people finding out that their Gouda is no good? I heard it on the news in a state that isn't even affected. But to look at websites, you never would know there's a serious problem. FDA warns consumers to beware. (http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm232748.htm) But I see nothing on Costco's website warning customers of a contamination problem. (http://www.costco.com/home.aspx?lang=en-US) Worse, Bravo Farms website still promotes its Gouda cheese without reference to the Costco problems. (http://www.costco.com/home.aspx?lang=en-US)
I suppose the crisis communications plans of both companies say, "Ignore a crisis and it will go away." Sometimes that happens. But do you really want to take a chance like that? The reputations, and therefore the sales, of both companies depend on consumer trust. I don't think sweeping the dirt under a rug is ever the best solution for dealing with a crisis.
Thursday, November 4, 2010
Massey Makes History and Headlines Due to Poor Safety Standards.
I wrote here on October 31 that strong rumors were swirling about a buy-out of Massey Energy Co. You may recall that this company, headed by Don Blankenship, operated the West Virginia mine where 29 workers died in an explosion last spring. A couple years ago, I wrote how Blankenship took the chief justice of the West Virginia Supreme Court to the Riviera -- the same judge who later was called on to make a ruling for or against Massey Energy. This is the same Blankenship who threatened to shoot a reporter. To see how Blankenship rolls, and to see the infamous encounter with a TV news camera, watch the Nightline YouTube feature at http://www.youtube.com/watch?v=O4Ym8qqR5vU.
Okay, so there's the backdrop for the latest Massey news. The feds have gone to court in hopes of shutting down Freedom Energy Mining Co.’s Mine No. 1 in Pike County, Kentucky. The mine is owned by -- all together now -- Massey Energy. No coal mine has ever been closed by court order for safety violations, but the Mine Safety and Health Administration hopes to make this the first.
It's about time! “'This mine is one accident away from a possible tragedy,' Solicitor of Labor M. Patricia Smith told reporters Wednesday.... According to MSHA, seven miners have been injured in the last two years in roof falls at the Freedom Energy mine. In addition, there have been six major roof falls at the operation since Aug. 11, the agency said.
"Between July 2008 and June 2010, MSHA has issued 1,952 citations against Freedom for safety violations at the mine. It also has ordered portions of the mine closed for violations 81 times — 53 times this year. The mine has been cited repeatedly for excessive accumulations of coal dust, which are a health hazard and can cause explosions; for failure to protect against falls of roofs, mine faces and ribs; for failure to test and maintain electrical equipment; and for failure to properly ventilate the mine to get rid of poisonous and explosive gases." (http://www.courier-journal.com/article/20101103/NEWS01/311030089/For+first+time++U.S.+asks+court+to+shut+down+mine+for+safety+record)
Despite many MSHA meetings with the company, inspections, and citations, nothing significant changed at the mine. Phil Smith, spokesman for the United Mine Workers union...said the MSHA action 'also adds yet another page to the growing list of serious safety problems at Massey mines, which leads one to wonder if they will ever be able to overcome the culture of production-first, workers-last that has become so prevalent within that company. It certainly seems impossible under the current corporate leadership, who fostered that culture....'
“'MSHA has attempted to reason with the operator,' David Ison, a regional MSHA official, wrote in one (court) document. 'The conditions at this mine are the result of a total disregard for basic mine maintenance and safety.'”
Massey's website carries a statement about the possible closure. "The Freedom Energy Mine is an older mine with extensive underground workings. The operation has struggled to comply with newer MSHA standards. The Company has recently focused additional scrutiny on the operation, including a personal visit by Chairman and CEO Don Blankenship as part of Massey's company-wide safety stand down.... Massey does not believe the mine is unsafe." (http://phx.corporate-ir.net/phoenix.zhtml?c=102864&p=irol-newsArticle&ID=1491483&highlight=)
So what would I do if I were advising Massey on crisis communications? I never would have accepted the job in the first place. The CEO will never listen and the company is too far gone to get help. It's only a matter of time before the ceilings above Massey's executive wing collapse. We still can learn a lot by scrutinizing the company and its nose-thumbing attitude toward its stakeholders. The board of directors should have fired Blankenship years ago. That they haven't -- well, that's the way many crises happen: failure to do the right thing.
Okay, so there's the backdrop for the latest Massey news. The feds have gone to court in hopes of shutting down Freedom Energy Mining Co.’s Mine No. 1 in Pike County, Kentucky. The mine is owned by -- all together now -- Massey Energy. No coal mine has ever been closed by court order for safety violations, but the Mine Safety and Health Administration hopes to make this the first.
It's about time! “'This mine is one accident away from a possible tragedy,' Solicitor of Labor M. Patricia Smith told reporters Wednesday.... According to MSHA, seven miners have been injured in the last two years in roof falls at the Freedom Energy mine. In addition, there have been six major roof falls at the operation since Aug. 11, the agency said.
"Between July 2008 and June 2010, MSHA has issued 1,952 citations against Freedom for safety violations at the mine. It also has ordered portions of the mine closed for violations 81 times — 53 times this year. The mine has been cited repeatedly for excessive accumulations of coal dust, which are a health hazard and can cause explosions; for failure to protect against falls of roofs, mine faces and ribs; for failure to test and maintain electrical equipment; and for failure to properly ventilate the mine to get rid of poisonous and explosive gases." (http://www.courier-journal.com/article/20101103/NEWS01/311030089/For+first+time++U.S.+asks+court+to+shut+down+mine+for+safety+record)
Despite many MSHA meetings with the company, inspections, and citations, nothing significant changed at the mine. Phil Smith, spokesman for the United Mine Workers union...said the MSHA action 'also adds yet another page to the growing list of serious safety problems at Massey mines, which leads one to wonder if they will ever be able to overcome the culture of production-first, workers-last that has become so prevalent within that company. It certainly seems impossible under the current corporate leadership, who fostered that culture....'
“'MSHA has attempted to reason with the operator,' David Ison, a regional MSHA official, wrote in one (court) document. 'The conditions at this mine are the result of a total disregard for basic mine maintenance and safety.'”
Massey's website carries a statement about the possible closure. "The Freedom Energy Mine is an older mine with extensive underground workings. The operation has struggled to comply with newer MSHA standards. The Company has recently focused additional scrutiny on the operation, including a personal visit by Chairman and CEO Don Blankenship as part of Massey's company-wide safety stand down.... Massey does not believe the mine is unsafe." (http://phx.corporate-ir.net/phoenix.zhtml?c=102864&p=irol-newsArticle&ID=1491483&highlight=)
So what would I do if I were advising Massey on crisis communications? I never would have accepted the job in the first place. The CEO will never listen and the company is too far gone to get help. It's only a matter of time before the ceilings above Massey's executive wing collapse. We still can learn a lot by scrutinizing the company and its nose-thumbing attitude toward its stakeholders. The board of directors should have fired Blankenship years ago. That they haven't -- well, that's the way many crises happen: failure to do the right thing.
Wednesday, November 3, 2010
Toyota Crises May Have Changed Car-Maker's Perception Among Stakeholders
Let's play a word association game. What's the first thing you think of when I say "Toyota?" I'll answer my own question. I think of sticking accelerators and recalls.
Rewind three years. Now, what's the first thing you think of when I say "Toyota?" I think of quality, long-lasting cars, manufacturing excellence. Clearly, Toyota had and still has a crisis.
The company is now in the litigation phase of this ongoing crisis. "Toyota Motor Corp. has quietly settled a high-profile lawsuit over a fatal crash near San Diego last year that drew national attention to sudden acceleration in its vehicles and led to massive recalls and an unprecedented apology from its president.... By getting the case off its growing plate of legal woes, Toyota can focus on an aggressive strategy to fend off lawsuits with less dramatic evidence, many of which point to potential electronic problems in vehicles." (http://www.kentucky.com/2010/09/19/1441474/toyota-quietly-settles-lawsuit.html#storylink=mirelated)
"Toyota has recalled more than 10 million vehicles worldwide over the last year. The National Highway Traffic Safety Administration said it has received about 3,000 reports of sudden acceleration from Toyota drivers in the past decade, including 93 deaths. The government, however, has confirmed only four deaths from one crash." (http://www.kentucky.com/2010/11/02/1506193/toyota-asks-court-to-dismiss-acceleration.html) That one confirmed case was the one in San Diego that has been settled.
All the federal cases were consolidated and assigned to a judge in California. Toyota asked that judge Monday to throw out lawsuits over acceleration defects, claiming that many of the plaintiffs never identified any defect or experienced unintended acceleration. Hundreds of lawsuits have been filed, some claiming defects, some claiming their cars lost value because of the alleged accelerator problem.
"Toyota is confident that its cars provide safe, reliable transportation and that the plaintiffs have no credible claims of loss or defect," said Cari Dawson, an attorney for Toyota, in a company statement.
That might be bad news for Toyota dealers. Investigators said the San Diego wreck may have been caused by an improperly installed floor mat, thus placing the blame on the dealer.
"The settlement has left out co-defendant Bob Baker Lexus, a move by the automaker that could set the stage for a potentially bloody fight with its own dealers over who is to blame for sudden acceleration incidents. 'Toyota has sought to protect only its own interests. They decided to cut out their own dealer,' said Larry Willis, attorney for Bob Baker Lexus, which lent the ill-fated Lexus ES to California Highway Patrol officer Mark Saylor in August 2009." (http://www.kentucky.com/2010/09/19/1441474/toyota-quietly-settles-lawsuit.html#storylink=mirelated) Saylor and three family members died.
"'Until they got rid of this case, it was going to be something everyone pointed at Toyota for,' said Don Slavik, an attorney representing plaintiffs in sudden acceleration cases filed against the automaker in both federal and state court. 'Now they're going to argue this was the dealer's fault alone and their cars aren't defective.'"
The latest on the subject from the Toyota website (October 28) addresses rumors that company technicians replicated the stuck accelerator and didn't notify the National Highway Traffic Safety Administration. The company countered, "Toyota quickly and thoroughly investigates any customer reports of unintended acceleration in its vehicles through its rapid-response SMART evaluation process. Field technical specialists (FTS) and engineers were deployed in response to reports of two acceleration events that dealer technicians reportedly observed. At these dealerships, Toyota FTSs and engineers were unable to duplicate the condition.... After having thoroughly analyzed these vehicles and driven them for thousands of miles, Toyota FTSs and engineers have not been able to replicate the customers’ acceleration concerns nor found any related issues or conditions in these vehicles." (http://pressroom.toyota.com/pr/tms/news.aspx?q=&pg=2#ltIndexCurrentPage2)
It's in the lawyers' hands now. But crisis communicators still have a role to play. Remember my word association game? Communications and marketing need to team up -- if they haven't by now. For me, it's like watching a slow-moving movie unfold. I'm not sure this one will end in my lifetime. It will take a lot of work and a lot of time.
Rewind three years. Now, what's the first thing you think of when I say "Toyota?" I think of quality, long-lasting cars, manufacturing excellence. Clearly, Toyota had and still has a crisis.
The company is now in the litigation phase of this ongoing crisis. "Toyota Motor Corp. has quietly settled a high-profile lawsuit over a fatal crash near San Diego last year that drew national attention to sudden acceleration in its vehicles and led to massive recalls and an unprecedented apology from its president.... By getting the case off its growing plate of legal woes, Toyota can focus on an aggressive strategy to fend off lawsuits with less dramatic evidence, many of which point to potential electronic problems in vehicles." (http://www.kentucky.com/2010/09/19/1441474/toyota-quietly-settles-lawsuit.html#storylink=mirelated)
"Toyota has recalled more than 10 million vehicles worldwide over the last year. The National Highway Traffic Safety Administration said it has received about 3,000 reports of sudden acceleration from Toyota drivers in the past decade, including 93 deaths. The government, however, has confirmed only four deaths from one crash." (http://www.kentucky.com/2010/11/02/1506193/toyota-asks-court-to-dismiss-acceleration.html) That one confirmed case was the one in San Diego that has been settled.
All the federal cases were consolidated and assigned to a judge in California. Toyota asked that judge Monday to throw out lawsuits over acceleration defects, claiming that many of the plaintiffs never identified any defect or experienced unintended acceleration. Hundreds of lawsuits have been filed, some claiming defects, some claiming their cars lost value because of the alleged accelerator problem.
"Toyota is confident that its cars provide safe, reliable transportation and that the plaintiffs have no credible claims of loss or defect," said Cari Dawson, an attorney for Toyota, in a company statement.
That might be bad news for Toyota dealers. Investigators said the San Diego wreck may have been caused by an improperly installed floor mat, thus placing the blame on the dealer.
"The settlement has left out co-defendant Bob Baker Lexus, a move by the automaker that could set the stage for a potentially bloody fight with its own dealers over who is to blame for sudden acceleration incidents. 'Toyota has sought to protect only its own interests. They decided to cut out their own dealer,' said Larry Willis, attorney for Bob Baker Lexus, which lent the ill-fated Lexus ES to California Highway Patrol officer Mark Saylor in August 2009." (http://www.kentucky.com/2010/09/19/1441474/toyota-quietly-settles-lawsuit.html#storylink=mirelated) Saylor and three family members died.
"'Until they got rid of this case, it was going to be something everyone pointed at Toyota for,' said Don Slavik, an attorney representing plaintiffs in sudden acceleration cases filed against the automaker in both federal and state court. 'Now they're going to argue this was the dealer's fault alone and their cars aren't defective.'"
The latest on the subject from the Toyota website (October 28) addresses rumors that company technicians replicated the stuck accelerator and didn't notify the National Highway Traffic Safety Administration. The company countered, "Toyota quickly and thoroughly investigates any customer reports of unintended acceleration in its vehicles through its rapid-response SMART evaluation process. Field technical specialists (FTS) and engineers were deployed in response to reports of two acceleration events that dealer technicians reportedly observed. At these dealerships, Toyota FTSs and engineers were unable to duplicate the condition.... After having thoroughly analyzed these vehicles and driven them for thousands of miles, Toyota FTSs and engineers have not been able to replicate the customers’ acceleration concerns nor found any related issues or conditions in these vehicles." (http://pressroom.toyota.com/pr/tms/news.aspx?q=&pg=2#ltIndexCurrentPage2)
It's in the lawyers' hands now. But crisis communicators still have a role to play. Remember my word association game? Communications and marketing need to team up -- if they haven't by now. For me, it's like watching a slow-moving movie unfold. I'm not sure this one will end in my lifetime. It will take a lot of work and a lot of time.
Tuesday, November 2, 2010
Arkansas School Board Member Creates Crisis With Hateful Facebook Writings
An organization can suffer damage at the hands of employees, managers, and even board members. Your crisis plan must reflect responses for all three because they probably vary a little.
Let's take board members, for example, specifically the Midland School District in Arkansas. Clint McCance, vice-president of the school board, decided to sound off on a topic near and dear to his heart. No, it wasn't related to schools or education or improving students' performance. He felt a need to rant about the popular Facebook initiative that shows support for gay youths in the wake of the recent wave of suicides. He wrote on his Facebook page:
"Seriously they want me to wear purple because five queers killed themselves. The only way im wearin it for them is if they all commit suicide. I cant believe the people of this world have gotten this stupid. We are honoring the fact that they sinned and killed thereselves because of their sin. REALLY PEOPLE."
I'd call this a problem at this point for McCance personally and a crisis for Midland Schools. Whether the district was aware of the comments, I can't tell. But certainly no action was taken and the hole got deeper. McCance later responded to a critical comment:
"I dont care how people decide to live their lives. They dont bother me if they keep it to thereselves. It pisses me off though that we make a special purple fag day for them. I like that fags cant procreate. I also enjoy the fact that they often give each other aids and die. If you arent against it, you might as well be for it." (I left out his expletive.)
Then he did it again later: "I would disown my kids (if) they were gay. They will not be welcome at my home or in my vicinity. I will absolutely run them off. Of course my kids will know better. My kids will have solid christian beliefs."
As you can imagine, both the school district and McCance were the objects of nationwide online protests. (http://www.huffingtonpost.com/2010/10/27/clint-mccance-anti-gay-facebook_n_774656.html) By the way, you can find a good op-ed piece by Leonard Pitts that compares McCance's ignorance to Bull Conner's ignorance in the early days of the Civil Rights movement. (http://www.courier-journal.com/article/20101101/OPINION04/311010027/1016/OPINION/Leonard+Pitts+%7C+Arkansas+school+official+becomes+the+new+face+of+hate)
Before I got a chance to give an opinion on this blog about what the school district needed to do to deal with the crisis, the board took the first important step. It unanimously accepted McCance's resignation. Now Midland Schools needs to identify ways to mend the wounds and let the community and the entire country know it in no way condones such opinions. A good start would be sensitivity training for all employees that would be made well-known among stakeholders. Other possibilities might be student assemblies, meetings to discuss bullying, and a project that would demonstrate tolerance for all.
I have trouble believing that anyone who writes the strong words McCance did would suddenly see the light a week or so later. Nevertheless, he wrote in his resignation letter, "At no time did I want anyone to hurt themselves. I do not support bullying. I do not wish harm on anyone. I always learn from my mistakes and I hope that all of you learned something from this experience. I am a better person today than I was a week ago, I promise you."
I would say McCance was highly motivated to recant. He appeared on CNN's "Anderson Cooper 360" and said he has received an "outpouring of criticism over his comments, including 'thousands of phone calls, hate mails, people threatening to kill my family and me.' He said that he has sent his wife and two kids out of the state because of fears for their safety and that he is installing a security system at his home." (http://www.cnn.com/2010/US/11/01/arkansas.anti.gay.resignation/index.html)
The Arkansas Commissioner of Education denounced the views as not reflecting him and Arkansas schools. Midland School District issued a statement that read, "The district strives to foster an environment that discourages all forms of bullying and an environment that encourages a safe and productive educational climate (for) all of our students. The district is very diligent in pursuing and addressing bullying of any variety on our campuses."
Midland, I hope you know you need to do more. If you wipe the dust off your hands and assume this crisis is over, it could erupt again later in another form. Your chances of putting all this behind you are better by extending your crisis communications plan to include actions similar to the ones I suggested above. Turn this into an educational experience for your students. It's your time to shine, not hide.
Let's take board members, for example, specifically the Midland School District in Arkansas. Clint McCance, vice-president of the school board, decided to sound off on a topic near and dear to his heart. No, it wasn't related to schools or education or improving students' performance. He felt a need to rant about the popular Facebook initiative that shows support for gay youths in the wake of the recent wave of suicides. He wrote on his Facebook page:
"Seriously they want me to wear purple because five queers killed themselves. The only way im wearin it for them is if they all commit suicide. I cant believe the people of this world have gotten this stupid. We are honoring the fact that they sinned and killed thereselves because of their sin. REALLY PEOPLE."
I'd call this a problem at this point for McCance personally and a crisis for Midland Schools. Whether the district was aware of the comments, I can't tell. But certainly no action was taken and the hole got deeper. McCance later responded to a critical comment:
"I dont care how people decide to live their lives. They dont bother me if they keep it to thereselves. It pisses me off though that we make a special purple fag day for them. I like that fags cant procreate. I also enjoy the fact that they often give each other aids and die. If you arent against it, you might as well be for it." (I left out his expletive.)
Then he did it again later: "I would disown my kids (if) they were gay. They will not be welcome at my home or in my vicinity. I will absolutely run them off. Of course my kids will know better. My kids will have solid christian beliefs."
As you can imagine, both the school district and McCance were the objects of nationwide online protests. (http://www.huffingtonpost.com/2010/10/27/clint-mccance-anti-gay-facebook_n_774656.html) By the way, you can find a good op-ed piece by Leonard Pitts that compares McCance's ignorance to Bull Conner's ignorance in the early days of the Civil Rights movement. (http://www.courier-journal.com/article/20101101/OPINION04/311010027/1016/OPINION/Leonard+Pitts+%7C+Arkansas+school+official+becomes+the+new+face+of+hate)
Before I got a chance to give an opinion on this blog about what the school district needed to do to deal with the crisis, the board took the first important step. It unanimously accepted McCance's resignation. Now Midland Schools needs to identify ways to mend the wounds and let the community and the entire country know it in no way condones such opinions. A good start would be sensitivity training for all employees that would be made well-known among stakeholders. Other possibilities might be student assemblies, meetings to discuss bullying, and a project that would demonstrate tolerance for all.
I have trouble believing that anyone who writes the strong words McCance did would suddenly see the light a week or so later. Nevertheless, he wrote in his resignation letter, "At no time did I want anyone to hurt themselves. I do not support bullying. I do not wish harm on anyone. I always learn from my mistakes and I hope that all of you learned something from this experience. I am a better person today than I was a week ago, I promise you."
I would say McCance was highly motivated to recant. He appeared on CNN's "Anderson Cooper 360" and said he has received an "outpouring of criticism over his comments, including 'thousands of phone calls, hate mails, people threatening to kill my family and me.' He said that he has sent his wife and two kids out of the state because of fears for their safety and that he is installing a security system at his home." (http://www.cnn.com/2010/US/11/01/arkansas.anti.gay.resignation/index.html)
The Arkansas Commissioner of Education denounced the views as not reflecting him and Arkansas schools. Midland School District issued a statement that read, "The district strives to foster an environment that discourages all forms of bullying and an environment that encourages a safe and productive educational climate (for) all of our students. The district is very diligent in pursuing and addressing bullying of any variety on our campuses."
Midland, I hope you know you need to do more. If you wipe the dust off your hands and assume this crisis is over, it could erupt again later in another form. Your chances of putting all this behind you are better by extending your crisis communications plan to include actions similar to the ones I suggested above. Turn this into an educational experience for your students. It's your time to shine, not hide.
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