Here is the latest on Richie Farmer, the Kentucky Agriculture commissioner runnimg for lieutenant governor. Despite his austerity ticket, he thought it was okay to spend $1,500 of taxpayers' money so he could attend the state high shool basketball tournament. See the two items below.
This is a man who is creating his own crisis, just as many organizations do to themselves. I wrote I would keep y'all informed. The Courier-Journal in Louisville carried an editorial about Farmer today.
"If you're stumped trying to figure out a likely winner in this year's Derby field, shift your analytical attention to this enigma: Why does Richie Farmer behave the way he does?
"Mr. Farmer, the Republican state agriculture commissioner and a former University of Kentucky basketball star, has been on a journey of serial embarrassments since Senate President David Williams tabbed him as his running mate in this year's gubernatorial contest.
"He's upgraded his department's vehicle fleet, including his own taxpayer-financed ride. He's taken aides on an extended trip to a Caribbean conference. He resisted participating in the furlough program for government employees, though he finally relented. He received questionable reimbursements and payments from post-election contributions to his 2007 campaign. His wife, who recently filed for divorce, said in an affidavit that Mr. Farmer denied her access to the couple's funds.
"It doesn't stop there. Reporters have now discovered that Mr. Farmer billed the state more than $1,576 for four nights in a suite and valet parking at a Lexington hotel during the Sweet Sixteen boys' high school basketball tournament last month." (http://www.courier-journal.com/article/20110427/OPINION01/304270065/1016/OPINION/Editorial-Richie-Farmer-strikes-again?odyssey=mod|newswell|text|Opinion|p)
Oh, my goodness! Farmer is sitting on a crisis time bomb. How many of our organizations are doing the same thing.
Wednesday, April 27, 2011
Tuesday, April 26, 2011
Farmer Criticized By Democrats
I vowed to keep you informed about the personal crisis facing Richie Farmer, Kentucky Agriculture Commissioner and lieutenant governor candidate. The Democrats are turning against him, which is no surprise. What is a surprise is that Farmer still has no comment to the media. See the item posted below.
"Kentucky Democratic Party Chairman Dan Logsdon on Monday called on state Agriculture Commissioner Richie Farmer to repay the state the cost of his stay in a Lexington hotel suite during the high school boys' Sweet 16 basketball tournament last month.
"In a news release, Logsdon asked that Farmer re-pay the state $1,576 – the tab at the Hilton Lexington Downtown for Farmer's four-night stay in a suite that cost $359 per night. The bill also included taxes and $40 for valet parking."
“'At a time when Kentucky families are tightening their belts, it's inexcusable that Richie Farmer spent $359 a night on a hotel just a few miles from his house...,' Logsdon said. 'Richie Farmer needs to do the right thing, admit that this was a horrible way to spend the people's money and reimburse the state.'” (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011304250105)
Stay tuned. Farmer is about to be roasted if he doesn't acknowledge his screw-up.
"Kentucky Democratic Party Chairman Dan Logsdon on Monday called on state Agriculture Commissioner Richie Farmer to repay the state the cost of his stay in a Lexington hotel suite during the high school boys' Sweet 16 basketball tournament last month.
"In a news release, Logsdon asked that Farmer re-pay the state $1,576 – the tab at the Hilton Lexington Downtown for Farmer's four-night stay in a suite that cost $359 per night. The bill also included taxes and $40 for valet parking."
“'At a time when Kentucky families are tightening their belts, it's inexcusable that Richie Farmer spent $359 a night on a hotel just a few miles from his house...,' Logsdon said. 'Richie Farmer needs to do the right thing, admit that this was a horrible way to spend the people's money and reimburse the state.'” (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011304250105)
Stay tuned. Farmer is about to be roasted if he doesn't acknowledge his screw-up.
Saturday, April 23, 2011
Spending Tax Dollars to Benefit Oneself Is Far From a Slam Dunk
I have written here numerous times about non-profits and quasi-government organizations that seem to think they have a right to spend taxpayer dollars on themselves: Kentucky League of Cities, Kentucky Association of Counties, and Dismas Charities to name a few. They all should have known better. Today, I want to blog about Richie Farmer. He should have known better too. And as happened to the aforementioned, watch as his house of cards collapses.
Richie Farmer was a basketball player at the University of Kentucky. Nowadays, he is state Agriculture Commissioner and a Republican candidate for lieutenant governor. He thought it was okay to spend taxpayer dollars on a hotel room, valet parking, and meals to attend the high school Sweet 16 in Lexington.
"Department of Agriculture records, obtained by The Courier-Journal (Louisville) under the state open-records law, show taxpayers paid $1,436 for the suite at the Hilton Lexington Downtown. Farmer...also billed the state for $40 for valet parking, $100.52 in room taxes and $120 in meals from March 16-20 — bringing the total tab to $1,696.52." (http://www.courier-journal.com/article/20110422/NEWS01/304220094/Richie-Farmer-billed-state-359-hotel-suite-during-Sweet-16?odyssey=tabtopnewstextHome)
Bill Clary, director of public relations for the department, claims the expenses are valid because the Department of Agriculture has used the Sweet 16 ever since Farmer became commissioner to promote its “Kentucky Proud” farm-marketing program.
According to Clary, “'And the commissioner uses that time to visit with people and promote Kentucky Proud. He basically decamps down to Lexington and moves his office in a sense down there for those several days.' Clary said Farmer needs a hotel room during the tournament because it’s a major promotion for Kentucky Proud. 'He’s there all day,' Clary said. '... Since he’s meeting with people over there, he doesn’t think it makes sense for him to drive back and forth.'”
Back and forth? He lives 24 miles away! That's about 20 minutes via I-64!
Farmer is on the gubernatorial primary ticket with Senate President David Williams for the May 17 Republican primary. The Courier-Journal points out that "The campaign has emphasized fiscal conservatism in government — at a time when the state faces serious budget problems — as a key issue."
Farmer's Agriculture predecessor said the department never advertised at the Sweet 16 under his watch. This is a Farmer-the-basketball player communications strategy. Plus he gets eight tickets to the tournament.
I have written about politicians and athletes who don't think things through before they act. This is another good example. Don't allow your organization to ignore the demise of those around you. Don't repeat the mistakes of others. I will be watching the news in the next week to determine the fallout among the tax-paying public. I'll keep you posted.
Richie Farmer was a basketball player at the University of Kentucky. Nowadays, he is state Agriculture Commissioner and a Republican candidate for lieutenant governor. He thought it was okay to spend taxpayer dollars on a hotel room, valet parking, and meals to attend the high school Sweet 16 in Lexington."Department of Agriculture records, obtained by The Courier-Journal (Louisville) under the state open-records law, show taxpayers paid $1,436 for the suite at the Hilton Lexington Downtown. Farmer...also billed the state for $40 for valet parking, $100.52 in room taxes and $120 in meals from March 16-20 — bringing the total tab to $1,696.52." (http://www.courier-journal.com/article/20110422/NEWS01/304220094/Richie-Farmer-billed-state-359-hotel-suite-during-Sweet-16?odyssey=tabtopnewstextHome)
Bill Clary, director of public relations for the department, claims the expenses are valid because the Department of Agriculture has used the Sweet 16 ever since Farmer became commissioner to promote its “Kentucky Proud” farm-marketing program.
According to Clary, “'And the commissioner uses that time to visit with people and promote Kentucky Proud. He basically decamps down to Lexington and moves his office in a sense down there for those several days.' Clary said Farmer needs a hotel room during the tournament because it’s a major promotion for Kentucky Proud. 'He’s there all day,' Clary said. '... Since he’s meeting with people over there, he doesn’t think it makes sense for him to drive back and forth.'”
Back and forth? He lives 24 miles away! That's about 20 minutes via I-64!
Farmer is on the gubernatorial primary ticket with Senate President David Williams for the May 17 Republican primary. The Courier-Journal points out that "The campaign has emphasized fiscal conservatism in government — at a time when the state faces serious budget problems — as a key issue."
Farmer's Agriculture predecessor said the department never advertised at the Sweet 16 under his watch. This is a Farmer-the-basketball player communications strategy. Plus he gets eight tickets to the tournament.
I have written about politicians and athletes who don't think things through before they act. This is another good example. Don't allow your organization to ignore the demise of those around you. Don't repeat the mistakes of others. I will be watching the news in the next week to determine the fallout among the tax-paying public. I'll keep you posted.
Friday, April 22, 2011
Where's the Beef? Taco Bell Responds
How would you deal with a well-publicized, frivolous lawsuit after the legal firm says, in the words of Roseanne Rosannadanna, "Never mind"? The damage has been done, even though you proved you were right all along. How aggressively should you pursue the notion that justice has triumphed, and the entire crisis was a sham? That's what Taco Bell is facing after being accused of misrepresenting its beef as beef.
Both sides claimed victory. The law firm Beasley Allen, based in Montgomery, Alabama, said the reason it dropped the class action suit was because Taco Bell made changes to its marketing and product disclosure. Taco Bell CEO Greg Creed scoffed, saying the chain didn't make any changes and never discussed possible changes with the law firm. No money ever changed hands. Taco Bell, a Yum! Brands company, seems to be the clear winner.
But was it? “'Our heavy users are maintaining their frequency and remain very loyal to Taco Bell,' ( Yum! CEO David) Novak said. 'Light users are staying on the sidelines for the time being. It is enough to take the fun out of the business....' Taco Bell sales fell flat overall in the first quarter. There is no telling when sales will revive." (http://www.courier-journal.com/article/20110421/BUSINESS/304210048/1003/BUSINESS/Yum-executives-Taco-Bell-sales-remain-weak)
A major crisis was averted, yet ripples remain. Taco Bell's strategy is to lash out aggressively. The chain took out full-page ads in major newspapers, aired television spots, and began a YouTube campaign to let people know its taco filling is 88% beef. Newspaper ads address Beasley Allen with, “Would it kill you to say you're sorry?” Taco Bell has spent between $3 and $4 million on advertising.
Myself, I like that approach in this instance. It makes sense to be sure those casual customers know the suit was dropped and the company was being truthful all along. Some in the communications field agree; others don't.
"David Koehler, clinical marketing professor at University of Illinois at Chicago, said the company is using the original negative press to spin a new positive story. 'They couldn’t control the accusation, but they could control the response,' Koehler said." (http://news.medill.northwestern.edu/chicago/news.aspx?id=185253)
He calls the message simple but effective. “'They stood behind their product and the facts,' Koehler said. 'They aggressively pursued their defense, and they handled it well. They know they were hurt when this came out. Then you have to do spin control. When they dropped the case, I think the wheels were already in motion, and they said, ‘Let’s turn this upside down. Let’s turn this into a message: Say you’re sorry.’'”
Larry Smith, president of the Institute for Crisis Management, said Taco Bell's approach will work for some companies but not others. "I wouldn't advise Taco Bell not to do it. How much goodwill built before is one of the criteria I would consider. For a company like BP, there would be no credibility. We've advised some clients in the past to take out full-page ads. Certainly no one size fits all."
I agree. But not everyone does. "'It brings the issue of the quality of meat it uses to the forefront again,' (Gail) Sideman (publicist at Publiside Personal Publicity in Milwaukee) said. 'I would use the money to do something positive and productive in the communities in which the restaurants serve. That would go a long way toward regaining any lost goodwill, and keep the focus away from what is still, fast-food.'”
It's risky to publicize in cases like this because doing so keeps the negative issue in front of stakeholders. "Sideman’s point rings true for consumers at the Taco Bell in Chicago’s Union Station. Some said they didn’t even care in the first place. 'I actually forgot about it until I saw the ad,' Jennifer Gaeto said."
The story of Taco Bell and its beef already is news across the spectrum of media, raising its ugly head again yesterday during the quarterly conference call to discuss financial results. I believe it's better to play offense in this case rather than stand mute on the sidelines.
Both sides claimed victory. The law firm Beasley Allen, based in Montgomery, Alabama, said the reason it dropped the class action suit was because Taco Bell made changes to its marketing and product disclosure. Taco Bell CEO Greg Creed scoffed, saying the chain didn't make any changes and never discussed possible changes with the law firm. No money ever changed hands. Taco Bell, a Yum! Brands company, seems to be the clear winner.
But was it? “'Our heavy users are maintaining their frequency and remain very loyal to Taco Bell,' ( Yum! CEO David) Novak said. 'Light users are staying on the sidelines for the time being. It is enough to take the fun out of the business....' Taco Bell sales fell flat overall in the first quarter. There is no telling when sales will revive." (http://www.courier-journal.com/article/20110421/BUSINESS/304210048/1003/BUSINESS/Yum-executives-Taco-Bell-sales-remain-weak)
A major crisis was averted, yet ripples remain. Taco Bell's strategy is to lash out aggressively. The chain took out full-page ads in major newspapers, aired television spots, and began a YouTube campaign to let people know its taco filling is 88% beef. Newspaper ads address Beasley Allen with, “Would it kill you to say you're sorry?” Taco Bell has spent between $3 and $4 million on advertising.
Myself, I like that approach in this instance. It makes sense to be sure those casual customers know the suit was dropped and the company was being truthful all along. Some in the communications field agree; others don't.
"David Koehler, clinical marketing professor at University of Illinois at Chicago, said the company is using the original negative press to spin a new positive story. 'They couldn’t control the accusation, but they could control the response,' Koehler said." (http://news.medill.northwestern.edu/chicago/news.aspx?id=185253)
He calls the message simple but effective. “'They stood behind their product and the facts,' Koehler said. 'They aggressively pursued their defense, and they handled it well. They know they were hurt when this came out. Then you have to do spin control. When they dropped the case, I think the wheels were already in motion, and they said, ‘Let’s turn this upside down. Let’s turn this into a message: Say you’re sorry.’'”
Larry Smith, president of the Institute for Crisis Management, said Taco Bell's approach will work for some companies but not others. "I wouldn't advise Taco Bell not to do it. How much goodwill built before is one of the criteria I would consider. For a company like BP, there would be no credibility. We've advised some clients in the past to take out full-page ads. Certainly no one size fits all."
I agree. But not everyone does. "'It brings the issue of the quality of meat it uses to the forefront again,' (Gail) Sideman (publicist at Publiside Personal Publicity in Milwaukee) said. 'I would use the money to do something positive and productive in the communities in which the restaurants serve. That would go a long way toward regaining any lost goodwill, and keep the focus away from what is still, fast-food.'”
It's risky to publicize in cases like this because doing so keeps the negative issue in front of stakeholders. "Sideman’s point rings true for consumers at the Taco Bell in Chicago’s Union Station. Some said they didn’t even care in the first place. 'I actually forgot about it until I saw the ad,' Jennifer Gaeto said."
The story of Taco Bell and its beef already is news across the spectrum of media, raising its ugly head again yesterday during the quarterly conference call to discuss financial results. I believe it's better to play offense in this case rather than stand mute on the sidelines.
Wednesday, April 20, 2011
IABC Crisis Article Is Worth Reading
Can I get an Amen!
Probably not, until you read an article authored by Caroline Sapriel. She is the founder and managing director of CS&A, a risk and crisis management consulting firm headquartered in Hong Kong. Her article appeared in Communication World published by the International Association of Business Communicators. (http://www.iabc.com/cw/public/featured/CWJulAug10_Crisis1_Sapriel.pdf)
"Common mistakes such as slow response, withholding information and denial—which can affect public safety, trust, and ultimately brand and corporate reputation—are being repeated. In the best cases, standards improve and organizations survive and rebound. In the worst cases, they don’t. Trusted and long-standing corporate icons disappear, or are acquired for a bargain price and get rebranded."
That's exactly what we at the Institute for Crisis Management preach. Too often, the congregation doesn't listen. It's also the same message I've tried to illustrate for the past few years in this blog.
Sapriel names five factors that get in the way of effective crisis communications:
1. Commitment and leadership
2. Cost or investment
3. Practice
4. Integrated business contingency planning
5. Values and culture
"Of the five key factors described above that contribute to repeated mistakes in crisis management, it’s commitment and leadership and values and culture—in other words, the human factors—that are the risky variables."
Hallelujah!
Probably not, until you read an article authored by Caroline Sapriel. She is the founder and managing director of CS&A, a risk and crisis management consulting firm headquartered in Hong Kong. Her article appeared in Communication World published by the International Association of Business Communicators. (http://www.iabc.com/cw/public/featured/CWJulAug10_Crisis1_Sapriel.pdf)
"Common mistakes such as slow response, withholding information and denial—which can affect public safety, trust, and ultimately brand and corporate reputation—are being repeated. In the best cases, standards improve and organizations survive and rebound. In the worst cases, they don’t. Trusted and long-standing corporate icons disappear, or are acquired for a bargain price and get rebranded."
That's exactly what we at the Institute for Crisis Management preach. Too often, the congregation doesn't listen. It's also the same message I've tried to illustrate for the past few years in this blog.
Sapriel names five factors that get in the way of effective crisis communications:
1. Commitment and leadership
2. Cost or investment
3. Practice
4. Integrated business contingency planning
5. Values and culture
"Of the five key factors described above that contribute to repeated mistakes in crisis management, it’s commitment and leadership and values and culture—in other words, the human factors—that are the risky variables."
Hallelujah!
Tuesday, April 19, 2011
I Wonder If He Bought Popcorn
Sometimes, you just can't win. An air traffic controller watches a movie on the job to keep awake and he gets in trouble anyway.
Seriously, I am amazed almost daily at how people can do dumb things. If your company or profession or whatever is under the microscope, you make sure your actions can't be questioned or criticized. If your fellow controllers, in this case, are being scrutinized, you don't watch movies, you don't talk to your significant other on the phone, and you don't work crossword puzzles. Doesn't that seem obvious? Is your organization doing anything that could be deemed inappropriate by employees, the public, the media, or the people who pay your bills?
Seriously, I am amazed almost daily at how people can do dumb things. If your company or profession or whatever is under the microscope, you make sure your actions can't be questioned or criticized. If your fellow controllers, in this case, are being scrutinized, you don't watch movies, you don't talk to your significant other on the phone, and you don't work crossword puzzles. Doesn't that seem obvious? Is your organization doing anything that could be deemed inappropriate by employees, the public, the media, or the people who pay your bills?
Lessons To Be Learned From Kindergarten Shooting
A kindergarten student took a loaded gun to school at Betsy Ross Elementary in the Houston Independent School District today. The gun fell from the boy's pocket in the cafeteria and discharged, injuring himself and two others. Every time a tragedy or near-tragedy occurs at a school, even a university campus, parents rush to the scene to make sure their babies are all right. This was no exception. It merely adds to the confusion as frightened parents demand information that might not even be available.
To give you an idea of what a bunch of unorganized family members can be like, check the photo of anxious parents in photo 13 at http://www.click2houston.com/slideshow/news/27598406/detail.html.
Schools and businesses can reduce the confusion and anxiety if they anticipate chaos in writing their crisis communications plans. Such plans should designate an assembly place for grieving and concerned family members. The news media should have a separate place to assemble and be updated. (Larry Smith, president of the Institute for Crisis Management, facetiously suggests you be sure to have plenty of chocolate doughnuts for the media.)
The family member area and media area should be well separated so that some anxious mother doesn't get an unwanted microphone shoved in her face. Take into account restroom facilities. Be sure family members aren't ambushed in a shared restroom.
Many crisis communications plans (in the rare organizations where they exist) don't account for family member and media member areas. These may be onsite if you have the facilities or offsite if you don't. Just be sure to have someone at each who understands how to have a calming effect if there's a lack of information. You need to provide regular updates as information becomes available.
On a related matter, keep stakeholders informed through your website. It has been several hours since the shooting, but neither the school district (http://www.greatschools.org/) nor Ross Elementary (http://www.greatschools.org/texas/houston/3505-Ross-Elementary-School/) has any information on the shooting. There isn't even a news page or media page. Make it easy for reporters and others to find information. And don't rely solely on the media to inform stakeholders.
Coincidentally (at least I think it's a coincidence), I found an essay on the district's website called, "Talking to Kids About Tragedy." It begins, "Whether it's a school shooting or a natural disaster, TV images of tragedies may upset and confuse your child. How should a parent talk about events that raise questions with no easy answers?" (http://www.greatschools.org/parenting/teaching-values/132-talking-to-kids-about-tragedy.gs?page=1)
In summary, the kindergarten shooting in Houston should remind us to: a) plan areas for families and media in the event of a significant incident, and b) inform stakeholders through your website. By the way, "b" is easier if you have a darksite ready for you to fill in the blanks and go.
To give you an idea of what a bunch of unorganized family members can be like, check the photo of anxious parents in photo 13 at http://www.click2houston.com/slideshow/news/27598406/detail.html.
Schools and businesses can reduce the confusion and anxiety if they anticipate chaos in writing their crisis communications plans. Such plans should designate an assembly place for grieving and concerned family members. The news media should have a separate place to assemble and be updated. (Larry Smith, president of the Institute for Crisis Management, facetiously suggests you be sure to have plenty of chocolate doughnuts for the media.)
The family member area and media area should be well separated so that some anxious mother doesn't get an unwanted microphone shoved in her face. Take into account restroom facilities. Be sure family members aren't ambushed in a shared restroom.
Many crisis communications plans (in the rare organizations where they exist) don't account for family member and media member areas. These may be onsite if you have the facilities or offsite if you don't. Just be sure to have someone at each who understands how to have a calming effect if there's a lack of information. You need to provide regular updates as information becomes available.
On a related matter, keep stakeholders informed through your website. It has been several hours since the shooting, but neither the school district (http://www.greatschools.org/) nor Ross Elementary (http://www.greatschools.org/texas/houston/3505-Ross-Elementary-School/) has any information on the shooting. There isn't even a news page or media page. Make it easy for reporters and others to find information. And don't rely solely on the media to inform stakeholders.
Coincidentally (at least I think it's a coincidence), I found an essay on the district's website called, "Talking to Kids About Tragedy." It begins, "Whether it's a school shooting or a natural disaster, TV images of tragedies may upset and confuse your child. How should a parent talk about events that raise questions with no easy answers?" (http://www.greatschools.org/parenting/teaching-values/132-talking-to-kids-about-tragedy.gs?page=1)
In summary, the kindergarten shooting in Houston should remind us to: a) plan areas for families and media in the event of a significant incident, and b) inform stakeholders through your website. By the way, "b" is easier if you have a darksite ready for you to fill in the blanks and go.
Monday, April 18, 2011
Hecla Mining Communicating Well About Trapped Miner
The news about the trapped miner in Mullan, Idaho, sounds a bit more promising. The rescuers are getting closer and will make faster progress today when a remote control digger is assembled.
The roof of the tunnel more than a mile underground collapsed Friday, trapping 53-year old Larry Marek. There's been no contact with him, so no one knows his condition.
The mine is operated by Hecla Mining Company. A check of its website (http://www.hecla-mining.com/) has news and information about the collapse for reporters and others. I trust there will be an update by around lunchtime in the East. The site has a table with links to:
Hecla Provides Update on the Fall of Ground - April 15, 2011
Fall of Ground FAQs
Sketch - Underground Location
Sketch - Nature of Work
Update from Phil Baker, CEO
There also are links to a Baker interview and two more Baker video links.
The irony just hit me: The collapse of Lucky Friday Mine happened on a Friday. They may need to change the name later.
The communications person for Hecla seems to be making herself available to the media, although I admit haven't read a lot of articles on it. "Crews working around the clock to reach 53-year-old Larry Marek have so far dug through 37 feet of earth in the Lucky Friday Mine, Hecla Mining Company spokeswoman Melanie Hennessey said early Monday. (Early Monday? She's apparently making herself available at all hours. The article quoted was posted at 5 a.m. Hecla time.) An AP story today has a quote from another spokesperson.
I would have to say Hecla is doing a good job at providing information to its stakeholders, as long as it's not the CEO on the front lines. (See CEO Tony Hayward fiasco early during the BP oil spill.) Both Baker and Hennessey seem to be performing well under fire. I would like to know if they are following a crisis communications plan. Now, if only they could report some good news soon.
The roof of the tunnel more than a mile underground collapsed Friday, trapping 53-year old Larry Marek. There's been no contact with him, so no one knows his condition.
The mine is operated by Hecla Mining Company. A check of its website (http://www.hecla-mining.com/) has news and information about the collapse for reporters and others. I trust there will be an update by around lunchtime in the East. The site has a table with links to:
Hecla Provides Update on the Fall of Ground - April 15, 2011
Fall of Ground FAQs
Sketch - Underground Location
Sketch - Nature of Work
Update from Phil Baker, CEO
There also are links to a Baker interview and two more Baker video links.
The irony just hit me: The collapse of Lucky Friday Mine happened on a Friday. They may need to change the name later.
The communications person for Hecla seems to be making herself available to the media, although I admit haven't read a lot of articles on it. "Crews working around the clock to reach 53-year-old Larry Marek have so far dug through 37 feet of earth in the Lucky Friday Mine, Hecla Mining Company spokeswoman Melanie Hennessey said early Monday. (Early Monday? She's apparently making herself available at all hours. The article quoted was posted at 5 a.m. Hecla time.) An AP story today has a quote from another spokesperson.
I would have to say Hecla is doing a good job at providing information to its stakeholders, as long as it's not the CEO on the front lines. (See CEO Tony Hayward fiasco early during the BP oil spill.) Both Baker and Hennessey seem to be performing well under fire. I would like to know if they are following a crisis communications plan. Now, if only they could report some good news soon.
Air Controller Issue Is Good Example of Handling a Smoldering Crisis
Handling a smoldering crisis quickly and effectively can save a lot of scurrying around later. While most smoldering crises should never make the news, the sleeping air traffic controllers did.I think it still constitutes a smoldering rather than sudden crisis. I would change my vote to sudden if a plane crashed while a controller napped.
Transportation Secretary Ray Lahood seems to be handling this swiftly and with authority -- but we might question why it took seven incidents instead of two or so. "'I have been in this job 25 years, I don't know when I've ever been madder. I'm outraged about this. I want the flying public to know that we're doing everything we can 24-7 to correct this problem,'" said Lahood. (http://www.myfoxatlanta.com/dpp/news/local_news/FAA-Head-to-Talk-with-Atlanta-Air-Traffic-Controllers-20110418-am-sd)
Lahood could have delayed action, but he didn't. That's the way to tackle any crisis. Be up front. Establish or restore confidence. And most of all, do something to fix the little problems before they become sudden crises.
Wednesday, April 13, 2011
Preparing for Crises Should Be a No-Brainer
I'm lazy. Picking on coal mining companies is too easy. So here goes again.
"For the first time ever, federal mine regulators have put two coal operators in Kentucky and West Virginia on notice that part or all of their mines will be immediately closed if inspectors find any more serious safety violations.
"The federal Mine Safety and Health Administration announced the actions Tuesday, designating the two mines as having patterns of chronic safety and health violations." (http://www.courier-journal.com/article/20110412/BUSINESS/304120100/Kentucky-West-Virginia-mine-operators-warned-potential-closure)
When I read this with my coffee this morning, my first thought was what are those knuckleheads at Massey Energy up to now? But this time, the culprits are Bledsoe Coal Corporation and New West Virginia Mining Company.
Here comes the key part of this story: "'They didn't take measures they should have to fix their problems and improve the level of health and safety at those mines to avoid this enforcement action,' MSHA chief Joseph Main told reporters in a conference call. 'Some mine operators get it, and some don't.'”
Some get it and some don't. I feel like a preacher whose congregation sins and likes it. The Institute for Crisis Management can save your souls, if you give us a chance. Most companies are run by smart people. But they need a crisis communications plan because every organization is a victim of a crisis. Who are your key stakehlders? What are you going to tell them? How are you going to return revenues to normal?
Yeah, some get it and some don't.
"For the first time ever, federal mine regulators have put two coal operators in Kentucky and West Virginia on notice that part or all of their mines will be immediately closed if inspectors find any more serious safety violations.
"The federal Mine Safety and Health Administration announced the actions Tuesday, designating the two mines as having patterns of chronic safety and health violations." (http://www.courier-journal.com/article/20110412/BUSINESS/304120100/Kentucky-West-Virginia-mine-operators-warned-potential-closure)
When I read this with my coffee this morning, my first thought was what are those knuckleheads at Massey Energy up to now? But this time, the culprits are Bledsoe Coal Corporation and New West Virginia Mining Company.
Here comes the key part of this story: "'They didn't take measures they should have to fix their problems and improve the level of health and safety at those mines to avoid this enforcement action,' MSHA chief Joseph Main told reporters in a conference call. 'Some mine operators get it, and some don't.'”
Some get it and some don't. I feel like a preacher whose congregation sins and likes it. The Institute for Crisis Management can save your souls, if you give us a chance. Most companies are run by smart people. But they need a crisis communications plan because every organization is a victim of a crisis. Who are your key stakehlders? What are you going to tell them? How are you going to return revenues to normal?
Yeah, some get it and some don't.
Personal Downfalls Teach Us About Organizational Downfalls
Here is how, in my opinion, not to get elected. Richie Farmer used to be a University of Kentucky basketball star. I guess he still thinks he is. Instead, he holds the elected position of Kentucky Agriculture Commissioner. (Please, don't get me started on the irony of someone named Farmer being in charge of agriculture. I love puns too much.) "Agriculture Commissioner Richie Farmer has declined to participate in the furloughs that affect most state workers, including many in his de
partment, and will save the state an estimated $24 million. Most state workers are taking six mandatory unpaid furlough days this year, with more furloughs expected next year." (http://www.courier-journal.com/article/20110409/NEWS01/304090047/Agriculture-Commissioner-Richie-Farmer-declines-voluntary-furlough?odyssey=tab%7Cmostpopular%7Cimg%7CFRONTPAGE) Oh yeah, I forgot to say Farmer is running for lieutenant governor. Everyone from the current governor on down is donating six days of pay to charity or to the state treasurer. "Agriculture Commissioner Richie Farmer, who makes $110,346 a year, isn't taking furloughs because he doesn't agree with them, spokesman Bill Clary said. Others at the state Agriculture Department have no say in the matter. But as an elected official, Farmer can choose to keep all of his pay." (http://www.topix.com/forum/city/manchester-ky/TMJ82RLPCDMS2UUQP) Next to the article in Sunday's The Courier-Journal in Louisville is a sidebar that Farmer's wife has filed for divorce. David Williams, the Republican gubernatorial candidate who Farmer is running with, should do the same. So what has any of this to do with crisis communications? Check out Pete Rose, Barry Bonds, and Charlie Sheen. A crisis, if not managed well, will lead to a loss of revenue. Our organizations aren't any different. The indiscretions of our leaders affect the bottom line. Communicators need to be the town criers. And if no one listens, be sure your resume is up to date. You don't want to be a member of that organization. Besides, I'm a University of Louisville fan first and foremost. Who's this Farmer guy anyway?
partment, and will save the state an estimated $24 million. Most state workers are taking six mandatory unpaid furlough days this year, with more furloughs expected next year." (http://www.courier-journal.com/article/20110409/NEWS01/304090047/Agriculture-Commissioner-Richie-Farmer-declines-voluntary-furlough?odyssey=tab%7Cmostpopular%7Cimg%7CFRONTPAGE) Oh yeah, I forgot to say Farmer is running for lieutenant governor. Everyone from the current governor on down is donating six days of pay to charity or to the state treasurer. "Agriculture Commissioner Richie Farmer, who makes $110,346 a year, isn't taking furloughs because he doesn't agree with them, spokesman Bill Clary said. Others at the state Agriculture Department have no say in the matter. But as an elected official, Farmer can choose to keep all of his pay." (http://www.topix.com/forum/city/manchester-ky/TMJ82RLPCDMS2UUQP) Next to the article in Sunday's The Courier-Journal in Louisville is a sidebar that Farmer's wife has filed for divorce. David Williams, the Republican gubernatorial candidate who Farmer is running with, should do the same. So what has any of this to do with crisis communications? Check out Pete Rose, Barry Bonds, and Charlie Sheen. A crisis, if not managed well, will lead to a loss of revenue. Our organizations aren't any different. The indiscretions of our leaders affect the bottom line. Communicators need to be the town criers. And if no one listens, be sure your resume is up to date. You don't want to be a member of that organization. Besides, I'm a University of Louisville fan first and foremost. Who's this Farmer guy anyway?
Abortion Doctor Alleged to Have Killed Women and Fetuses While Others Looked Away
Silence is golden, but not when it comes to managing a crisis. In this case, lives were needlessly lost.
"Doctors in Philadelphia are attempting to defend why they apparently failed to report the numerous botched abortions and other medical problems that took place at the clinic run by abortion practitioner Kermit Gosnell. Gosnell has been charged with eight counts of murder related to a failed abortion that claimed a woman’s life and seven infanticides that saw him use an abortion technique where he purposefully prematurely birthed babies late in pregnancy so he could use medical scissors to snip their spinal cords and end their lives." (http://www.lifenews.com/2011/04/11/doctors-failed-to-report-kermit-gosnells-botched-abortions/)
Why would a doctor, charged with saving lives, ignore a crisis like this? Why does anyone ignore a smoldering crisis? I could list the reasons and so can you.
In this case, passing the buck seems to be one cause.
"Now, according to an AP report, the health system released a statement saying it 'provided reports to the authorities regarding patients of Dr. Gosnell who sought additional care at our hospitals' as early as 1999 even though officials reportedly could only produce one report of an instance where doctors informed state or local officials of potential problems....Health system spokeswoman Susan Phillips told AP 'we have staff who specifically recall making oral reports' to Pennsylvania authorities about problems with Gosnell, but she added, 'Unfortunately, we have not been able to find additional written reports from these past years.'”
That's why you have to cover your fanny and document smoldering crises. Let the fault fall on the guilty, not you. If you ride through the streets shouting, "The British are coming!" write it down. Someone is sure to say, "I never heard a thing."
"Doctors in Philadelphia are attempting to defend why they apparently failed to report the numerous botched abortions and other medical problems that took place at the clinic run by abortion practitioner Kermit Gosnell. Gosnell has been charged with eight counts of murder related to a failed abortion that claimed a woman’s life and seven infanticides that saw him use an abortion technique where he purposefully prematurely birthed babies late in pregnancy so he could use medical scissors to snip their spinal cords and end their lives." (http://www.lifenews.com/2011/04/11/doctors-failed-to-report-kermit-gosnells-botched-abortions/)
Why would a doctor, charged with saving lives, ignore a crisis like this? Why does anyone ignore a smoldering crisis? I could list the reasons and so can you.
In this case, passing the buck seems to be one cause. "Now, according to an AP report, the health system released a statement saying it 'provided reports to the authorities regarding patients of Dr. Gosnell who sought additional care at our hospitals' as early as 1999 even though officials reportedly could only produce one report of an instance where doctors informed state or local officials of potential problems....Health system spokeswoman Susan Phillips told AP 'we have staff who specifically recall making oral reports' to Pennsylvania authorities about problems with Gosnell, but she added, 'Unfortunately, we have not been able to find additional written reports from these past years.'”
That's why you have to cover your fanny and document smoldering crises. Let the fault fall on the guilty, not you. If you ride through the streets shouting, "The British are coming!" write it down. Someone is sure to say, "I never heard a thing."
Friday, April 8, 2011
Senate and House Members Will Still Draw Paychecks if They Shut Down Government
As I write this, we are 10-hours-plus from shutting down the federal government. Tea Party people and other anti-government conservatives are delirious. Anti-abortion advocates are grateful that one reason government will shut down is because of controversy over funding to Planned Parenthood and other groups conservatives are against. The real victims, however, will be those who depend on Washington dollars to survive: people waiting for income tax refunds, environmentalists who will see the EPA emasculated, 800,000 federal employees, military people defending our country, national parks, etc. What, me worry? Nah. The people who are responsible for this crisis -- members of Congress -- will continue to be paid if the government shuts down.
A Senate bill to prevent members of Congress and the President from receiving money in the event of a government shutdown didn't pass the House. Lawmakers are making $174,000 a year.
"If liberals in the Senate would rather play political games and shut down the government instead of making a small down payment on fiscal discipline and reform," said Rep. Mike Pence, R-Indiana, "I say shut it down."
Tell that to my 79-year-old mother, who depends on social security.
Linda Sanchez, D-California, claims "It's very difficult for me to say hey, I can give up my paycheck, because the reality is I have month to month obligations that doesn't make it possible to me."
Thank goodness my mother doesn't have any bills, eh?
See the CNN Anderson Cooper clip at http://www.cnn.com/video/#/video/politics/2011/04/08/ac.kth.shutdown.congress.paid.cnn?hpt=T2.
A Senate bill to prevent members of Congress and the President from receiving money in the event of a government shutdown didn't pass the House. Lawmakers are making $174,000 a year.
"If liberals in the Senate would rather play political games and shut down the government instead of making a small down payment on fiscal discipline and reform," said Rep. Mike Pence, R-Indiana, "I say shut it down."
Tell that to my 79-year-old mother, who depends on social security.
Linda Sanchez, D-California, claims "It's very difficult for me to say hey, I can give up my paycheck, because the reality is I have month to month obligations that doesn't make it possible to me."
Thank goodness my mother doesn't have any bills, eh?
See the CNN Anderson Cooper clip at http://www.cnn.com/video/#/video/politics/2011/04/08/ac.kth.shutdown.congress.paid.cnn?hpt=T2.
Credit Rating Company Subject of Legal Suit
When is free not free? When it's FreeCreditReport.com.
I often wondered how these credit rating reports worked and asked myself, how could they advertise so much and still be free? A pending lawsuit in California against Experian questions what consumers are paying for. FreeCreditReport.com, operated by Experian, actually costs $14.95 a month. The lawsuit doesn't question "free," but asks what consumers are really receiving.
"The vast majority of lenders use a three-digit number called a FICO score to make lending decisions. Developed by Fair Isaac and Co., the FICO score takes data from credit reports maintained by the nation's three credit bureaus -- Equifax, Trans Union and Experian -- and boils it down into one three-digit number for each bureau report to provide a quick assessment of a consumer’s creditworthiness....The credit scores that Experian sells to consumers, however, are not the Experian FICO scores, the lawsuit contends. Instead, subscribers who sign up for a $14.95 per month service at FreeCreditReport.com get access to a similar three-digit number developed by Experian using its so-called PLUS Score model. While the value is meant to give consumers a sense of their creditworthiness, Plus Score ratings are not sold to lenders, and are not used in lending decisions, the lawsuit alleges." (http://redtape.msnbc.com/2011/04/lawsuit-experian-sells-misleading-credit-scores.html)
An Experian spokeswoman refused to comment because of the pending litigation.
On the website of FreeCreditReport.com, buried in the terms and conditions legalese no one ever reads, is this disclaimer: "Products and credit resources on the Product Websites utilize the PLUS Score®. The PLUS Score®, developed by Experian, and the different risk levels presented by it, are for educational use only. The PLUS Score® is not currently sold to lenders, and is not an endorsement or guarantee of your credit worthiness as seen by lenders.
"Please be aware that there are many scoring models used in the marketplace. Each scoring model may have its own set of factors and scale. The information and credit scoring model may be different than that used by a lender. The PLUS Score® may not be identical in every respect to any other credit score produced by another company or used by your lender." (http://www.freecreditreport.com/terms-and-conditions/)
Experian may not yet have a crisis, as defined by the Institute for Crisis Management. But the company needs to be looking at how to prevent this class action suit from exploding in its face. An effective crisis communications plan could help Experian get through this controversy. Without a plan, the company could become the victim of a snowball rolling down a hill.
I often wondered how these credit rating reports worked and asked myself, how could they advertise so much and still be free? A pending lawsuit in California against Experian questions what consumers are paying for. FreeCreditReport.com, operated by Experian, actually costs $14.95 a month. The lawsuit doesn't question "free," but asks what consumers are really receiving.
"The vast majority of lenders use a three-digit number called a FICO score to make lending decisions. Developed by Fair Isaac and Co., the FICO score takes data from credit reports maintained by the nation's three credit bureaus -- Equifax, Trans Union and Experian -- and boils it down into one three-digit number for each bureau report to provide a quick assessment of a consumer’s creditworthiness....The credit scores that Experian sells to consumers, however, are not the Experian FICO scores, the lawsuit contends. Instead, subscribers who sign up for a $14.95 per month service at FreeCreditReport.com get access to a similar three-digit number developed by Experian using its so-called PLUS Score model. While the value is meant to give consumers a sense of their creditworthiness, Plus Score ratings are not sold to lenders, and are not used in lending decisions, the lawsuit alleges." (http://redtape.msnbc.com/2011/04/lawsuit-experian-sells-misleading-credit-scores.html)
An Experian spokeswoman refused to comment because of the pending litigation.
On the website of FreeCreditReport.com, buried in the terms and conditions legalese no one ever reads, is this disclaimer: "Products and credit resources on the Product Websites utilize the PLUS Score®. The PLUS Score®, developed by Experian, and the different risk levels presented by it, are for educational use only. The PLUS Score® is not currently sold to lenders, and is not an endorsement or guarantee of your credit worthiness as seen by lenders.
"Please be aware that there are many scoring models used in the marketplace. Each scoring model may have its own set of factors and scale. The information and credit scoring model may be different than that used by a lender. The PLUS Score® may not be identical in every respect to any other credit score produced by another company or used by your lender." (http://www.freecreditreport.com/terms-and-conditions/)
Experian may not yet have a crisis, as defined by the Institute for Crisis Management. But the company needs to be looking at how to prevent this class action suit from exploding in its face. An effective crisis communications plan could help Experian get through this controversy. Without a plan, the company could become the victim of a snowball rolling down a hill.
Friday, April 1, 2011
Crises Can Lead to Higher Revenue When Managed Right
Here's a postscript about the cobra that drew national attention when it escaped from its behind-the-scenes tank. See my post yesterday.
Jim Breheny, Director of the Bronx Zoo, was on CNN this morning. With a smile on his face and a twinkle in his eye, Breheny told the reporter that the plan is to put the cobra on exhibit within a week.
Do you suppose a lot of people will pay admission to the zoo to see the famous cobra? Those like the Bronx Zoo who handle a crisis well and communicate about it effectively can come out of the crisis better than when it went in.
Jim Breheny, Director of the Bronx Zoo, was on CNN this morning. With a smile on his face and a twinkle in his eye, Breheny told the reporter that the plan is to put the cobra on exhibit within a week.
Do you suppose a lot of people will pay admission to the zoo to see the famous cobra? Those like the Bronx Zoo who handle a crisis well and communicate about it effectively can come out of the crisis better than when it went in.
Big-Game-Hunting CEO Bags Bad Publicity Along With an Elephant
Crossing PETA isn't in itself a crisis. But here's an example of a CEO who may have crossed the line.
GoDaddy.com CEO Bob Parsons boasted on Twitter about shooting a "problem" elephant in Zimbabwe and linked his tweet to a video. That video shows Parsons dropping the bull elephant with several shots and includes stills of him posing next to his dead trophy and of villagers who nearly rioted to cut off a piece of meat. (http://www.video.me/ViewVideo.aspx?ci=23830&vid=380843)
I think this might be an incident that will draw the ire of many outside of the PETA regulars. The animal rights group pulled its account away from GoDaddy.com and is urging other organizations to do the same.
In a statement on its website, PETA writes, “Parsons is hiding behind the lame claim that killing elephants helps farmers in Africa whose crops are damaged by the animals. In fact, there are ample effective and nonlethal methods to deter elephants from crops, including using chili-infused string and beehives on poles to create low-cost 'fences.' Instead of coming up with flimsy excuses for killing these highly intelligent and social animals, Parsons should use his wealth to fund humane solutions to human/elephant conflicts.” (https://secure.peta.org/site/Advocacy?cmd=display&page=UserAction&id=3643)
Boycotts generally are ineffective. Maybe this one will be an exception. It's bad enough for a CEO to kill for pleasure, but to boast about it online makes the deed even worse. This isn't a crisis just yet because GoDaddy.com's income hasn't really been affected. But we should watch to see if enough defect to competitors to make a difference in earnings.
GoDaddy.com CEO Bob Parsons boasted on Twitter about shooting a "problem" elephant in Zimbabwe and linked his tweet to a video. That video shows Parsons dropping the bull elephant with several shots and includes stills of him posing next to his dead trophy and of villagers who nearly rioted to cut off a piece of meat. (http://www.video.me/ViewVideo.aspx?ci=23830&vid=380843)
I think this might be an incident that will draw the ire of many outside of the PETA regulars. The animal rights group pulled its account away from GoDaddy.com and is urging other organizations to do the same.
In a statement on its website, PETA writes, “Parsons is hiding behind the lame claim that killing elephants helps farmers in Africa whose crops are damaged by the animals. In fact, there are ample effective and nonlethal methods to deter elephants from crops, including using chili-infused string and beehives on poles to create low-cost 'fences.' Instead of coming up with flimsy excuses for killing these highly intelligent and social animals, Parsons should use his wealth to fund humane solutions to human/elephant conflicts.” (https://secure.peta.org/site/Advocacy?cmd=display&page=UserAction&id=3643)
Boycotts generally are ineffective. Maybe this one will be an exception. It's bad enough for a CEO to kill for pleasure, but to boast about it online makes the deed even worse. This isn't a crisis just yet because GoDaddy.com's income hasn't really been affected. But we should watch to see if enough defect to competitors to make a difference in earnings.
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