Wednesday, May 18, 2011

Crisis Communications Plans Must Include Acts of Nature, Such as Flooding

I haven't written anything about the flooding along the Mississippi River. If you are part of a business affected by flooding, please comment and let us all know how you are coping with this crisis.

To date, 5,000 people have been evacuated in Mississippi and another 4,000 in Louisiana. For some reason, Louisiana hasn't opened any emergency shelters yet. River traffic has been stopped for days along stretches of the Mississippi. The U.S. Coast Guard reopened a section of the river Tuesday through the 15-mile area near Vidalia and Natchez. That stretch had closed to prevent damage to levees from passing barges. The Coast Guard is allowing only one tow vessel at a time to pass and warned they might have to shut the waterway again.

This flood is a crisis in many ways. Products can't be shipped in a timely way on the Mississippi, nor can raw materials be received. For those near the river or its tributaries, flood waters may cover facilities. Flooded employees may not make it to work. Farmers' fields are wiped out. The price of vegetables, already high because of fuel costs and a cold winter down south, will become even higher. Businesses hundreds of miles away may not be able to receive raw materials from their suppliers who are in flooded areas. A casino had to close, resulting in lost revenue, cleanup expenses, lost jobs and wages, and decreased tax revenue to the state. Conventions are being canceled through June.

Those affected businesses who had a crisis communications plan in place are better able to deal with the flooding. Those who haven't thought through crises such as natural disasters are less prepared.

The same goes for government. "'We're now finding ourselves having to blanket this city with an added number of officers," (Vicksburg Police) Chief Walter Armstrong told WLBT. 'Don't walk through it, don't drive through it, and we encourage parents to not allow their children play near or around the floodwaters.'

"Downstream in Vidalia, Louisiana, residents and officials tried to counter flooding from the rising Mississippi by stacking large containers two- and three-high around riverfront properties." (http://www.cnn.com/2011/US/05/18/flooding/index.html?hpt=T2)

And in case you think this crisis is short-lived, like a flash flood: "'Once we hit the crest on the 19th, it's not over,' Henry Dulaney with the U.S. Army Corps of Engineers told CNN affiliate WLBT-TV. "Water is going to be on the levee for another month. And so everything that we've told people, they need to be wary of that for another month, month and a half.'

"... Levees along the length of the river appeared to be holding and water diverted through spillways seemed to be rising more slowly than expected, but Louisiana Gov. Bobby Jindal warned residents there's plenty that could go wrong. 'There's still an awful lot of water headed our way, and it's going to be here in many cases for weeks, not just a few days,' he said."

Cleanup after the water recedes will be a long, expensive, and smelly job. "Vidalia Mayor Hyram Copeland told CNN's 'John King USA' the prospect of flooding was a devastating threat in a city that relies on its Mississippi River waterfront and now faces the prospect of extensive infrastructure repairs. 'It's a lifeline of our communities.'"

Crisis communications plans must contain a section for natural disasters like this one. Tornadoes, hurricanes, snow, and ice all can affect your business for days or weeks. Make sure your operation plan and communications plan anticipate the rage of Mother Nature.

Tuesday, May 17, 2011

Politicians Create Their Own Crises by Being Stupid

At a gathering of European finance ministers in Brussels today, Maria Fekter, Austria’s finance minister, said Dominique Strauss-Kahn “has to figure out for himself that he is hurting the (International Monetary Fund)." Strauss-Kahn was arrested last weekend for allegedly attacking a hotel chambermaid in New York while nude and now faces a possible 25-year prison term.

"Also Tuesday, Spain’s finance chief, Elena Salgado, called the allegations against the IMF chief 'extraordinarily serious' and added that 'if I had to show my solidarity and support for someone, it would be toward the woman who has been assaulted.'" (http://www.washingtonpost.com/business/economy/in-europe-a-first-call-for-strauss-kahn-to-quit/2011/05/17/AFOhVp5G_story.html)

Strauss-Kahn was considered a front-runner to become the next president of France. He isn't the first, nor will he be the last, political leader to be caught up in moral and/or illegal scandal. CNN Politics (http://www.cnn.com/2011/POLITICS/05/17/political.sex.scandals/index.html?hpt=T1) today carries an interesting feature that summarizes 16 politicians and their well-publicized "sins." Among them:

* Rep. Bob Livingston, 1998, admitted to cheating on his wife and resigned. He urged President Clinton to do the same.

* New Jersey Gov. James McGreevey, 2004, announced he was gay, had an affair with another man, and then resigned his office.

* Los Angeles Mayor Antonio Villaraigosa, 2007, separated from his wife and shortly later admitted to an affair with a local TV reporter.


* Idaho Sen. Larry Craig was arrested at the Minneapolis airport for allegedly using his foot to touch the boot of what turned out to be an undercover policeman in the next stall. Craig pleaded guilty, then tried to change his mind. He claims he's not gay.


* Detroit Mayor Kwame Kilpatrick, 2008, had an affair with his chief of staff. She resigned, but Kilpatrick said he wouldn't. He later had to quit and now is serving up to five years in prison for violating his probation after being convicted of two felony counts for obstruction of justice for covering up his affair.


* Former Senator and Presidential candidate John Edwards, 2007, had a baby with a woman who was not his wife.


* South Carolina Governor Mark Sanford disappeared for nearly a week and claimed he was hiking on the Appalachian Trail. Instead, he was meeting up with an Argentinian lover.


* Italian Prime Minister Silvio Berlusconi, 2011, was charged with having sex with an underage girl. He laughed off the charges of sex and abuse of power.


Politicians seem to love bringing crises onto themselves. Power and wealth can be a dangerous mixture -- one that the leaders in the organizations we work for are vulnerable to as well. Ignoring the signs is ignoring a smoldering crisis.

Monday, May 16, 2011

Crisis Plans Must Allow For Product Recalls

Product recalls can lead to a crisis for many organizations. But how awful can these recalls be?



  • In cooperation with the U.S. Consumer Product Safety Commission, UJ Trading, of Houston, Texas, is voluntarily recalling about 18,500 Danbar Knight Hawk Toy Helicopters. The battery housing under the helicopter canopy can overheat while charging, posing a fire hazard.


  • Meijer Inc., of Grand Rapids, Mich., is voluntarily recalling about 17,400 pairs of Bumble Bee and Lady Bug infant slipper socks. The balls at the end of the bug's antennae can detach, posing a choking hazard to young children.


  • Telstar Products d/b/a Sprint International Inc., of Brooklyn, N.Y., is voluntarily recalling about 317,000 light bulbs. The light bulbs can overheat, posing a fire hazard to consumers.


  • WRK Enterprises dba Edge Dive Gear of Macon, Ga., is voluntarily recalling about 750 (in the U.S.) and 20 (in Canada), Edge and HOG (Highly Optimized Gear) Buoyancy Control Devices (BCD). The spring in the over pressure valve can corrode and break preventing the buoyancy control device from retaining air, posing a drowning hazard to consumers.


  • GMA Accessories Inc., of New York, N.Y., is voluntarily recalling about 36,000 beaded curtains. The beaded curtains are prone to entanglement. When an adult or child plays with or runs through the beaded curtains, the risks of entanglement and strangulation are posed.


  • El Gringo Imports of Seattle, is voluntarily recalling about 300 girls' hooded sweaters with drawstrings. The hooded sweaters have drawstrings through the hood, which can pose a strangulation or entrapment hazard to children.
http://www.cpsc.gov/cpscpub/prerel/prerelmay11.html

If your company produces goods for consumers, your crisis communications plan has to include a section for product recalls, no matter how innocuous your products seem on the surface. In a nation where girls' hooded sweaters with drawstrings can be declared a crisis, your business needs to be prepared in order to avoid loss of sales.

Saturday, May 14, 2011

The Care and Feeding of News Reporters During and After a Crisis

How you treat the media can help determine how the media treat you. When I was working for a chemical plant, we had some sort of upset one night and I rushed back to the plant in case there were any media information requests. Reporters beat me there. One later told me, "We're always glad when it's your plant that has a problem. We know we'll get timely information from you, but that's not true very often at your neighboring plants."

I was glad for the compliment, but hoped the reporter hadn't jinxed us. It's a necessity to get timely and accurate information to the media. If reporters are sent out to get a story, they can't return empty handed. They'll find someone who will talk, and that someone may not deliver a message you will like.

James Bruggers, environmental writer for The Courier-Journal in Louisville, made that point in his latest blog post. (http://blogs.courier-journal.com/watchdogearth/2011/05/14/eckart-media-statement-posted/)

"This year there have been two injury- or death- causing such incidents in Rubbertown (a cluster of chemical plants in western Louisville) to report on: Carbide Industries’ blast that killed two workers; and last Monday’s double-blast that injured two workers at Eckart America’s aluminum power plant.

"To be sure, any chemical or manufacturing plant that has an incident is going to be really busy in the hours and days after such incidents... Media requests therefore may seem more like an annoyance.

"But communication with the public is also important — especially when the public sees large clouds of smoke rising in the sky or hears (and feels) the power of big blasts.

"These two companies chose to handle their communications differently.

"Carbide gave its plant manager authority to answer media questions as they came up. He even provided reporters with his cell phone. At Eckart, the general manager has communicated with me on the record only through a couple of prepared statements approved by the company’s headquarters in Germany, many time zones away — and in one case, about two days after I had called for comment on some past OHSA inspections.

"The second and most recent communication arrived at 6:30 pm Friday, a couple of days after I had sought comment on 1) the company’s safety record and 2) progress in figuring out what caused the blast. That communication can be found in its entirety on the company’s website, http://www.eckart.net/press-news/news-archive.html."

The statement is worth reading if you want a good example of how not to do it. There's too much boasting and defensiveness. General information about the company and plant should be separated from the explosion news to make the reporter's job easier. On top of it all, the language is stiff and business formal: "...whilst this incident was not planned for, the potential eventuality was."



Follow the Carbide Industries approach. No excuses, no bragging about how safety conscious you are. Such claims don't ring true following a serious explosion.

Thursday, May 12, 2011

Smoldering Crises Ignite When We Ignore Them

This story isn't necessarily about a crisis, and maybe it never will become one under the true definition of "crisis." But it is a reminder of the folly of doing nothing when there are dark clouds ahead.

The borough of Monaca sits along the Beaver River some 20 miles north of Pittsburgh. Thomas Sargeson is a member of the borough council. Last August, "Monaca police spotted Heather Thunberg, who was wanted on warrants, in Sargeson's car and asked Sargeson who the woman was. Sargeson claimed the woman in his car was 'Bonnie Pops from Rochester.' Sargeson only admitted the woman was Thunberg after police went to his Elm Street residence where his son told police his father was with Heather Thunberg, and police found Sargeson again and told him he was being recorded by the video system in the patrol car, according to a police report." (http://www.timesonline.com/news/police_fire_courts/more-charges-filed-against-councilman-jail-guard/article_1837d1b5-f6c8-501d-81b3-e66468cb45cb.html) Sargeson admitted he was hiding Thunberg until she could get out of town.

Sargeson, who works as a jail guard, was charged with with hindering apprehension, obstruction of the administration of law and false swearing to mislead a public servant.

I wanted to see how the Monaca Borough Council was dealing with this sticky situation. Apparently, it isn't. There's Sargeson listed as attending the August meeting, and meetings right up through March 22, the last one posted. (http://monacapa.net/index.asp?Type=B_BASIC&SEC={84F84A82-FC4F-462E-B1CA-E2C5F3358244})

Perhaps the latest charges will grab the council's attention. "(Sargeson) is facing a new charge after Beaver County Sheriff's deputies said he lied about owning a Center Township home after he led authorities there to find his fiancée who was wanted on a bench warrant."

Sargeson told Beaver County Sheriff deputies he didn't know who owned the house. But tax records showed he himself was the owner.

"When authorities arrived at the home, they found Thunberg in a bathroom shooting up heroin and attempting to flush bags of heroin down the toilet, a police report said. Police found seven bags of heroin, four syringes and two spoons, the report said."

Sargeson may be an outstanding councilman. But he can't be trusted and may even have to spend some jail time after his trial. The Monaca council better not look the other way anymore.

For many of us, it's easier to look the other way than to stir up trouble and create conflict within our organizations. That's how smoldering crises begin. I've never been one to enjoy conflict, but I dealt with plenty in my newspaper years. I had to. It was my job. And it's all our jobs to identify smoldering crises and snuff them out, even when friends are involved.

San Jose State Shooting Reminds Us To Plan Before, Not After, a Crisis

"I know many campuses have experienced shooting incidents. But it has never happened here, so planning for one would be a waste of time."

No one at San Jose State University said that, but I think it was implied. Three people died of gunshot wounds Wednesday in what appears to be a murder/suicide. An unidentified man and woman were found dead in a car, and the gunman was found dead in another part of the garage.

"Some students complained about not getting information from the university in a timely fashion. University officials said the threat was already over before an alert could be sent via text message." (http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/12/BAKB1JEONF.DTL)

A "warning" to students, employees, or a community doesn't have to be a warning per se. As the students observed, they didn't know if they were in danger. Remember that the Virginia Tech mass murder came a few hours after what appeared to be an isolated shooting.

Unlike Virginia Tech, the gunman turned his weapon on himself, thus ending any threat to students. But those on campus didn't know that. They needed to be told, even though there was no threat.

Campus spokeswoman Pat Lopes Harris excused the school, saying, "'There is no way for us to sort of run a metal detector over every person who walks onto campus.... We have had a really extensive security operation that has served us well.'"

No, you can't blame San Jose State for a shooting. But you can blame them for being caught off-guard and unprepared. It sounds like that won't happen again.

"'Officers focused on medical attention for the victims, then issued an alert,' Harris said.

"But she acknowledged concerns that the campus notification system is focused on providing instruction rather than information.

"'This incident is unusual, unprecedented, the first time ever, so we're going to be learning and we're going to be staffing appropriately,' Harris said. 'Now, can we move more quickly, can we provide more information? We'll certainly look into that in the coming weeks and months.'"

We see it pretty much every day. Organizations prepare for a crisis after they have limped through one. It's better for the university to plan its crisis communications now in case there is a next time. But it's too bad the pieces weren't in place yesterday in time to keep students informed.

A good way to prepare yourself for crisis communications planning is by taking a two-day crisis communications training course with the Institute for Crisis Management. See http://www.crisisexperts.com/certcourses_main.htm.

Tuesday, May 10, 2011

Beleaguered Medical Firm Shuttered by U.S. Marshals

The recall of Triad's alcohol prep pads, alcohol swabs, alcohol swabsticks, and other goods has expanded to animal products. The Triad plant in Wisconsin was forced closed last month due to bacterial contamination, and at least two lawsuits have been filed. A young boy supposedly died from a sanitary wipe.

The cause could be a water problem that allowed sewer water to back up into the system, contaminating the company's products with bacteria. Federal inspectors claimed the firm failed to keep any records of sanitization of the water supply system until 2009. In addition, equipment wasn't designed to facilitate cleaning and maintenance. FDA inspectors also identified pad material and foil packaging as possible sources.

"Last week, Michael C. Rogers, the FDA's acting director for the Office of Regional Operations, said that the problems identified in the inspection report, the firm's third in less than a year, prompted the agency to ask H&P Industries (Triad) to stop manufacture or distribution of all drug products.

"H&P Industries officials did not comply until the U.S. Marshals arrived on Monday." (http://www.msnbc.msn.com/id/42420216/ns/health-infectious_diseases/t/wipe-maker-shuts-doors-after-us-marshals-arrive-site/)

"Christy Maginn, a spokeswoman for the firm, said the closure was voluntary and that H&P officials are working closely with the U.S. Marshals Service and the federal Food and Drug Administration." If "working closely," why did it take marshals to force closure?

Triad is owned by two brothers and a sister and employs 10-19 people, according to Manta.com. When it comes to crisis communications, size doesn't matter. Actually, a family-owned business like this is far more susceptible to a death blow from a crisis than a larger company that's in better position to absorb the blow.

"Those issues (contamination and sterilization) eventually led to the recall of hundreds of millions of products used in hospitals, clinics and homes and widely sold in grocery and drug stores.

"Until now, however, there has been no word about specific hospitals that might have used the wipes. Triad Group officials refused to release a comprehensive list and FDA officials said they couldn’t disclose the information because it was proprietary." (http://www.msnbc.msn.com/id/42962665/ns/health-infectious_diseases/)

I dunno, it doesn't sound like the company is cooperating as well as it could and should. The lives and health of people all over the country are at stake. Triad appears to be in a survival mode rather than attempting to reach stakeholders with its message. Maybe it has no defensible message. That happens sometimes.

The situation continues to worsen for the embattled company. "Thousands of animal care kits marketed for dogs, cats and horses are included in the recall because alcohol prep pads and sterile lubricant jelly could be contaminated with Bacillus cereus bacteria. The kits were distributed across the globe, including to areas where they might be put into use to care for military working dogs." (http://www.annarbor.com/pets/animal-first-aid-kits-included-after-triad-group-expands-product-recall/)

Triad needs to cooperate fully and tell consumers it is cooperating. It needs a plan to correct contamination issues quickly and share that with FDA and consumers. (I say consumers, not customers, because many products are sold under other brand names, thus complicating recalls.) It needs to express regret and concern for any possible illness and inconvenience. The $2.5 - $5 million company needs to have a plan on how it will stay in business after the fines and lawsuits and cost of recalls and lost manufacturing time. It may be too little too late, but it's worth a shot to create a crisis communications plan and carry it through. It might not help much at this point, but it certainly won't hurt. It's never too late to do the right thing.

Monday, May 9, 2011

Property Company's Crisis Plan: Hide Until It's All Over

With all the flooding going on along the Mississippi, this story may seem trivial. But it's not trivial to 24 families in Louisville, Kentucky. The foundation of the apartment building where they lived was washed away by the rainstorms and now has been condemned.

Residents said they noticed a problem and notified city inspectors last week. One woman said she was assured the building was safe on Wednesday, but the evacuation order came just two days later. Some residents were relocated to other apartments, but most had to find their own housing, and they weren't given much time. The building was boarded up Sunday evening with people's belongings still inside.

Residents don't know if they will get those belongings back. They also wonder about refunds of their May rent and security deposits. There will be no way to contact most of the residents.

The property is owned by Kohner Properties of St. Louis (http://www.kohnerproperties.net/opendev/copro/index.php). Kohner wouldn't return renters' phone calls as of Monday, nor did they return calls from WLKY-TV in Louisville. The site manager wouldn't talk to reporters because she supposedly was on the phone with corporate. Maybe at least she got through.

I'll make the wild assumption that Kohner wasn't prepared for such an emergeny. It should be. With properties throughout the midwest, there must have been fires, tornadoes, and floods at some of them through the years. The lack of quick response to key stakeholders -- primarily residents -- shows calousness and probably a company ill prepared to deal with such a crisis. Remember, the timeline shows condemnation Friday, lockup at 8 p.m. Sunday. That was plenty of time to inform the manager how to proceed, or fly someone in from St. Louis to answer questions. Instead, as of Monday, no one would answer the phone.

"'I think they should have taken a little more care in dealing with us. This is our lives, our families and children and they have handled this situation with no heart at all,' said former resident Angela Adkins." (http://www.wlky.com/news/27825671/detail.html)

Kohner and others in that business have got to have a crisis communications plan. There are disasters like this in apartment buildings with regularity. I hope Kohner and similar firms learn something from all this: Have a workable crisis communications plan on hand.

School Scandal Lives on in Media Because of Censorship of School On-line News

This is a theme worth repeating. When you have a crisis -- notice I said "when" -- do what you can to get out of the news so you can resume normal operations. Don't add more fuel, don't create controversy, and don't look like you have something to hide.

On March 19, I wrote about a science teacher from duPont Manual High School in Louisville, Kentucky, who was caught half naked in a car with a 17-year-old boy, both of them smelling of beer. A condom lay next to the car. That didn't really create much of a crisis for the school. The teacher resigned. The incident didn't happen on school property. And in Kentucky, the age of consent is 16. It should have been a one-day story, two at worst.

However, Principal Larry Wooldridge ordered students to clear all articles through him before posting and publishing. And as of yet, no stories of substance have been cleared. Wooldridge's order, instead of quieting publicity, resulted in news coverage the following day and an editorial in The Courier-Journal.

Wooldridge still doesn't get it. Today's paper, nearly a month later, contained another article, this one starting at the top of page 1 in the Metro section: "Manual principal blocks story."

"Wooldridge rejected Charley's (Nold, 16, a staff writer for the school's online publication, the RedEye) initial one-paragraph story announcing (Carrie) Shafer's arrest and subsequent resignation, instead scribbling out his own statement to be posted online, saying only that Shafer had quit and the school was seeking a replacement." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011305080015)

How naive can you get? Everyone in the school knew why she quit. Why not address it head on?

Being the good young journalist he appears to be, Charley and classmate Julian Wright wrote a follow-up story showing student reaction to the incident, along with examples of alleged misconduct by teachers with students in Kentucky and warning signs for students about being exploited. That sounds like a story that would serve students well. Wooldridge didn't think so and canned that story as well.

"To date, the only things published by the RedEye on the departure of the popular science teacher are two statements by the principal, neither of which addresses Shafer's arrest on a misdemeanor charge of unlawful transaction with a minor.... According to the RedEye's still unpublished story, the goal of school officials was to 'ensure that this situation stayed within the school's walls.' Charley and other Manual students are concerned that Wooldridge is censoring their work to protect the school's reputation from an already widely reported scandal."

I'm not going to debate the power of the principal to censor student-written news. I fought that battle in high school and didn't fare too well. No, the point is that by stirring the pot, Wooldridge did the opposite of what the RedEye staff believes he was trying to avoid. If he had allowed publication of the first stories, the community would have forgotten about the whole thing. But challenge Freedom of the Press at any level and the newspaper will jump all over it.

"Wooldridge said in an email to The Courier-Journal that he was 'not sure why this is a news story,' referring to this newspaper's coverage of the RedEye story. He also said coverage of the Shafer story is an important part of journalism students' 'educational process, and I value their work.' Wooldridge did not respond to repeated attempts for further comment."

I wouldn't be surprised if this isn't the last we hear of RedEye vs. Wooldridge. This is a story that could've and should've gone away long ago.

Ex-Basketball Player and a Nice Guy Needs to Learn Sensitivity to Perceptions

I have been following the political mistakes (in my opinion) of Kentucky Agriculture Commissioner Richie Farmer to see if his supposed arrogant spending might put him at risk in his bid 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 school basketball tournament and stay in a hotel 24 miles from his home. The Agriculture Department was a sponsor to promote Kentucky Proud. See my posts on April 27, April 26, and April 23.

I see no pressure on him to return the money he spent to stay in Lexington during the tournament. There continues to be, however, some question of Farmer's spending in general and his political inexperience.

An in-depth look at Farmer appeared on page 1 of Sunday's The Courier-Journal (Louisville). Sometimes, his comments don't ring true. When asked why he put aside aspirations to run for governor and instead accepted a lieutenant governor bid, he replies, "'It was a family decision,' he said. 'You know, my family is very close to me.' But on April 5 his wife, Rebecca Ann, 37, filed for divorce, saying the marriage 'is irretrievably broken and there exists no reasonable prospect for reconciliation.'" (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011305090003)

The article goes on to explain, "That (the divorce filing) came amid news reports about questionable decisions Farmer has made in his current job, including declining to take unpaid furlough days required for rank-and-file state workers, and staying in a state-paid $359-a-night hotel suite during the boys' state high school basketball tournament, where he promoted Kentucky agriculture."

Reading on through Sunday's feature and, based on other things I've heard and read about Farmer, he is a really good guy. He is admired for his outstanding basketball career at the University of Kentucky. He has largely won over his constituents -- the Republican ones at least. He has always been willing to admit when he makes mistakes, and says he had to learn on the job during his first term as commissioner. But he still defends his spending.

"And he discounts criticism that decisions affecting him personally — the initial resistance to giving back furlough pay, the hotel suite during the Sweet 16, the purchase of 27 new vehicles last year for the department — shows he's insensitive to the need to be prudent in spending. He has now decided to give his furlough pay to charity."

But the cars and the hotel -- he continues to insist these were legitimate costs of running his department. To his credit, "he has kept the department's programs running despite a 30 percent cut in funding."

But to be taken seriously, he needs to do a better job of showing himself to be a good steward of the taxpayers' dollars. A political cartoon today shows the backlash of such an approach. Under the heading, "One way to try and elect a prickly gubernatorial candidate," a caricature of Farmer says, in part, "Every year that I played basketball translates into at least three years of political experience because playing basketball is really hard and stuff..." (http://www.courier-journal.com/section/opinion03)

Friday, May 6, 2011

If Only There Had Been a Crisis Communications Plan

So, your management thinks writing a crisis communications plan is too expensive? Call Massey Energy and ask its opinion. Although a crisis communications plan probably wouldn't have made a difference when its Upper Big Branch mine exploded last year, killing 29 miners. Former CEO and autocrat Don Blankenship would have just reverted to his blustery management style and ignored the plan.

But let's assume you had been director of communications for Massey. And let's assume you had an operational plan, a crisis communications plan, and a recovery plan. And let's assume the key people, including the CEO, practiced tabletop exercises periodically. It's okay if you had to spend several thousand dollars for outside help to help with your plan. Here's why. See if you think the Upper Big Branch tragedy would have worked out any differently if there had been a plan. Here are Massey's outcomes:

Massey in March was cited for more than 80 safety violations uncovered in the latest round of special inspections targeting troubled mines. This is nothing. Massey has regularly led its competitors in citations.

Massey has seen losses in the past four quarters, and the board forced Blankenship out last year. The company is in the process of selling out to Alpha Natural Resources.

The U.S. Attorneys’ office in Charleston has charged the security director of Performance Coal (subsidiary that operated the mine) with lying to investigators and trying to destroy evidence in the case. Another employee who conducted safety examinations at the mine pleaded guilty to using a fake foreman’s license and lying about it to federal investigators. Prosecutors still haven't decided whether to criminally charge the company itself.

Massey recently offered a $3 million settlement to the families of the 29 miners. That's a minimum total of $87 million. There's no word on whether any have accepted, but five families have filed wrongful death suits.

U.S. Mine Safety and Health Administration wouldn't approve Massey's plan to construct a new opening for Upper Big Branch. It still contains a rich coal vein. Instead, the company is now sealing the mine.

If you had been there with your crisis communications plan, it's hard to say how much money would have been saved. Maybe the mine and the corporation itself would still be in business. Consider writing a crisis communications plan. An ounce of prevention is worth $87 million dollars worth of cure.

(Articles referenced but not quoted are http://news.yahoo.com/s/ap/20110504/ap_on_re_us/us_mine_explosion_settlements_3; http://www.forbes.com/feeds/ap/2011/05/05/general-materials-wv-mine-explosion-seal_8452314.html)

Old Mistakes Can Lead to New Mistakes Being Placed Under a Microscope

I've been critical of Richie Farmer's use of taxpayer dollars to benefit himself personally. But here's a case where he probably didn't understand every difficult detail of tax law and got bad advice. Farmer has responded appropriately (but probably had no choice by law). Now, if only he would reimburse the state for his lavish stay at the state basketball tournament, which was held 24 miles from his house. (See the post below this one.)

"Agriculture Commissioner Richie Farmer will have a portion of his paycheck docked for back taxes after neglecting to report years worth of personal mileage on state-owned vehicles.

"Bill Clary, a spokesman for the Department of Agriculture, said Wednesday that Farmer relied on bad advice from the department's executive team when he failed to track personal mileage during his first term in office.

"Despite policy revisions in 2008, Farmer's personal mileage continued to go unreported because of a clerical blunder in the department, he said." (http://www.courier-journal.com/article/20110504/NEWS0106/305040161/-1/7daysarchives/Richie-Farmer-pay-back-taxes-personal-mileage)

Clary earlier defended Farmer's attendance at the basketball tournament, so we might need to give wary eye to his excuse here. The point is I'm not sure how much of a story this would have been without the basketball tournament and hotel charges. I have to believe some reporter is trying to dig up more dirt on Farmer, who is running for lieutenant governor. The primary is May 17.

When one error in judgement occurs in our organizations and it becomes public, old enemies may take advantage and you may have follow-up news reports. As another example, a local company had an explosion and fire that killed two workers. Reporters went back 10 years and wrote about, what they thought were major, incidents. Three contractors all of a sudden decided to sue the company, claiming product dust inside their boots had caused burns.

Some crises can't be prevented. But your best plan is to limit those and eliminate the others.