Wednesday, June 29, 2011

Think You Aren't in the Hazardous Chemical Business? Think Again

The general public by and large retains negative images of the chemical industry and plant safety. But consider these chemical leaks that have occurred in northwestern Arkansas. (I'm not leaving any out, but am going by the list posted by NWAonline, digital news for the regional edition of the Arkansas Democrat Gazette.) (http://www.nwaonline.com/news/2011/jun/28/fumes-overwhelm-workers/?news-arkansas-nwa)

June 2001 — Mexican Original, a tortilla producer owned by Tyson Foods, had a pressure valve on the building’s roof pop, releasing ammonia. About 90 employees were evacuated, two were treated at the scene.

September 2001 — Alpharma Animal Health, producer of animal feeds, had an explosion and chemical fire that released arsine gas, killing a plant engineer and breaking the leg of another. The plant and nearby Lowell Elementary School were evacuated.

June 2002 — Crystal Lake Foods, a meat, poultry, and seafood processor, had multiple ammonia leaks at the poultry plant that sent two workers to the hospital. A pop-off safety valve on an ice chilling unit on the roof sent fumes into the plant. About 150 workers were evacuated.

December 2006 — Hiland Dairy had an anhydrous ammonia leak that caused the evacuation of about 20 employees.

September 2010 — Zero Mountain Cold Storage Warehouse had an ammonia pipe rupture in the engine room. The leak was contained to the plant and there were no injuries.

Where are all those chemical plant releases, fires, and explosions? Hmmm, I guess food crises can occur even before the food is consumed. You don't have to be in the chemical industry to handle hazardous materials daily and face risks that accompany such chemicals. The latest incident in northwestern Arkansas occurred last Monday, June 27, at a Tyson chicken processing plant in Springdale.

The crisis started at 9:04 a.m. when a pregnant employee had trouble breathing and passed out. Three minutes later, the plant reported a chlorine release in the deboning area. The plant was evacuated, but not before four more females passed out. Ambulances and buses began transporting exposed employees to five different area hospitals. In all, 173 people were treated and some were kept overnight.

"About 300 workers were evacuated from the plant Monday morning in Springdale. Ten workers remained hospitalized Wednesday afternoon, none of them in intensive care, company spokesman Gary Mickelson said.

"A Springdale Fire Department report obtained by the AP says the plant's safety director told authorities that a solution of chlorine had been poured into a drum of FreshFx LP, a mix of acids used for disinfecting." (http://hosted.ap.org/dynamic/stories/U/US_TYSON_FOODS_CHLORINE_LEAK?SITE=NYONE&SECTION=HOME&TEMPLATE=DEFAULT)

So let's see how well Tyson responded to its crisis. My first move was to check out the company's Website. (http://www.tyson.com/) Just a bunch of recipes and marketing. Then I checked news releases. (I couldn't find a tab from their home page, but launched it through a Google search.) Still no release about the release. (http://www.tysonfoods.com/Media-Room/News-Releases.aspx)

We briefly met Spokesman Mickelson above. "Mickelson would not comment earlier Wednesday on what chemicals created the chlorine gas, which can cause respiratory problems up to sudden death. Company officials have said human error played a role in the accident. 'We believe we know what they were, but we don't want to speculate,' Mickelson said."

Not speculating is a good thing. But the safety director already told fire officials three paragraphs above what the chemicals were, and an AP reporter got his hands on the report. Revealing the chemicals involved doesn't appear to require much of a speculation risk -- that is, if Mickelson was "in the loop."

The same AP story also had this to say about obtaining information: "Several Tyson workers declined comment when leaving the Berry Street plant Wednesday afternoon.... One worker said he was told by his supervisor not to talk publicly about the incident and two Tyson security officials eventually told an AP reporter to leave the plant's employee parking lot."

Oooh, not good! To deny a reporter access to information and to witnesses' accounts is to light a fire under his or her fanny. If I may break the rules and speculate, it's quite possible that AP went fishing for the fire department report because the company and its employees weren't open. My view toward employees as spokespersons is to discourage it, but don't prohibit it. Prohibition can have the opposite effect you want, as we learned in the U.S. between 1920 and 1932.

"A news conference was held Tuesday afternoon to provide updates to local media. Donnie King with Tyson, said a temporary medical clinic has been set up at the Berry St. plant to provide follow-up medical attention for employees who return back to work over the next several days. The clinic will be staffed by area nurses and medical physicians." (Additional human resources staff and chaplains were also brought in to assist workers and their families.)
(http://www.5newsonline.com/news/northwestarkansas/kfsm-five-tyson-workers-in-icu-more-hospitalized-after-chlorine-gas-leak-20110628,0,4684004.story)

Channel 5's report didn't identify King's position with the plant. King took time after the news conference to answer specific questions from the Channel 5 reporter. Tyson's temporary medical clinic was a good move to demonstrate concern for employees. But Mikelson didn't have to regurgitate the cliche of all cliches in business: "'Our team members are the most important part of our business, so we’re doing everything possible to help them through this difficult time.'"

Wait. Okay. I'm through gagging now. I guarantee that earnings are more important than "team members." I have yet to see any earnings get laid off. Avoid cliches, especially the hollow ones.

At some point, Tyson employees broke the code of silence. "Some Tyson employees claimed the 'leak' had been reported to management long before 300 workers were evacuated from the building that morning." King did a nice job during the news conference responding to the rumor. Standing there in his work uniform and looking like "one of the guys" instead of a management stiff, he replied when asked, “'I’m not aware of anything remotely resembling that. As of yesterday, I’m not aware of a leak at the Berry St. plant. The investigation at this point has revealed that we had an accidental mixture of two chemicals that created a chlorine gas; there’s not been any evidence to support that we actually had a chemical leak.'”

Yeah, it's all semantics, but there really is a difference. Nothing "leaked." I liked King's response. The AP article closes with a good King quote, accepting responsibility on behalf of Tyson and assuring stakeholders that Tyson will follow up. "'In our business training and education of our team members is critical to our success, and in this particular case it appears that we had a failure in that. What we will do differently, going forward, we will learn from this, we will study in great detail.'”

OSHA said its investigation could take up to six months. Meanwhile, Tyson has to take corrective action based on what is known today to prevent a recurrence. And the company needs to be open with employees and other key stakeholders about operational changes it makes and results of any and all investigations. The public must be included among stakeholders. The next time Tyson needs local permits to expand or modernize, it better have the trust of the community and elected leaders. I hope the plant's follow-up communications are successful, because I don't know what I would do without Tyson chicken in my freezer.

Tuesday, June 28, 2011

Passport Health Board Remains Under Scrutiny For Questionable Spending of Millions of Tax Dollars

It's time to update the Passport Health Plan crisis, which I've covered here nine times in less than eight months. Passport provides Medicaid services for more than 170,000 Kentucky residents. A 2010 state audit requested by a state legislator revealed that the executive vice president and associate vice president, both of whom have since been fired, received large salaries, ate in expensive restaurants, and traveled extensively. Passport inappropriately spent money on lobbying, public relations, donations, and sponsorships. Passport's budget comes through a $780 million contract with the state, Kentucky's largest.

For more detailed background, visit my post on November 12, 2010. (http://www.blogger.com/posts.g?blogID=1573781346072455735&searchType=ALL&txtKeywords=&label=Passport)

This crisis is a fine example of how such messes sometimes are no more willing to go away than your brother-in-law who has been sleeping on your couch all week. The latest Passport aftershock is a state attorney general's investigation into the distribution of $35.5 million of surplus funds. Passport may end up having to pay part or all of the money back to the state.

"The largest share of the $30.5 million went to the association of faculty members at the University of Louisville School of Medicine that controlled Passport — University Physicians Associates, or UPA....

"At issue are three decisions by Passport’s board to distribute some of its then-growing cash surpluses to its members. The first was made in late 2008 — a $10.5 million distribution to repay members for the initial money they put up to start Passport in the late 1990s. A second distribution of $10 million also was made in late 2008, and another $10 million payment was made in late 2009. The second and third payments were identified in the minutes of Passport’s board as grants to compensate members for care of indigent patients. The money was distributed roughly according to the percentage of the initial investment made by members to start Passport." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011306270009)

And therein lies the rub. According to last year's audit, why did providers in the 16-county region who weren’t represented on Passport’s board fail to get any of the indigent care grants? Why was the $20 million for indigent care divided based on a member’s initial investment in Passport rather than on how much uncompensated care the member provided for indigent patients?

UPA and other recipients of the grants documented that they had incurred indigent care costs that were greater than the amount they got. Nevertheless, the auditor's report noted that all recipients placed the grants in their general funds instead of setting it aside for indigent care. Passport board minutes show that it wanted to decrease its surplus, which was more than $91 million in 2009, because such a large surplus made it difficult for Passport to negotiate with the state each year for an increase in its contract.

Dr. Greg Postel, chairman of UPA’s Finance Committee and chairman of the U of L School of Medicine’s Department of Radiology, claimed, "'There never was any written correspondence from the Passport organization outlining how these funds were to be used. We were given no guidance in that matter. Given that they were titled ‘indigent care funds’ we used them for the medical care of indigent patients.'”

As an outsider peeking in the window, I see a board that communicates poorly and board members who are there to get what they can for their own organizations. That would be laudable, if the money weren't coming from Kentucky taxpayers' pockets. In spite of all that this organization has been through during the past year or so -- including the firings of its two top executives and chastisement from the governor for loose spending practices -- I'm not sure these wealthy doctors get it yet. The interim CEO, Mark Carter, assured reporters he is cooperating with the investigation and has turned over some 30,000 pages of documents to investigators.

But I'll repeat the moral of this story, first written on this blog last December 9: Ask yourself, "What are my stakeholders going to say if they find out how we are operating? Communicators, you can use this as an example to show the boss and urge him or her to do a self-assessment. Point out how much time and money is being wasted at Passport doing what should have been done quietly and painlessly." (http://crisisexperts.blogspot.com/2010/11/another-kentucky-agency-caught-making.html)

I have a feeling that not all the gauze has hit the fan yet.

Monday, June 27, 2011

Kentucky Town Deals Appropriately With Anti-Gay Swimming Pool Crisis

The city of Hazard, Kentucky, responded swiftly and appropriately to a crisis that dragged the small town into national news this month. I wrote on June 17 and 19 below about two city employees who ordered two developmentally disabled gay men out of the pool, citing the Bible as the reason. Stories differed on whether the men were making displays of public affection. Either way, the city took action against the employees and ordered signs made that spelled out Hazard's non-discrimination policy to personnel and swimmers.

Being up front with the public and media (I'm ignoring the obscenity-laced tirades one of the involved employees delivered over the phone to reporters, including CNN) has pretty much brought this crisis to a peaceful, satisfactory, and inexpensive conclusion.

"The Kentucky Equality Federation (a gay rights group) said City Attorney Paul Collins is 'receptive' to adding a prohibition on discrimination based on 'gender identity' to the city's pledge of prohibiting bias against 'sexual orientation' and other categories at the Hazard Pavilion recreation complex. Federation President Jordan Palmer said his group 'plans no legal action and believes Hazard sets a positive example for all cities in both Southern Kentucky and the entire commonwealth.'” (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011306240076)

That wasn't so hard: Do the right thing and then communicate it. In this case, the city needs to be ready for anti-gay sentiment to surface, as it did in Chicago last weekend.

"In Chicago, however, vandals tried to dampen the weekend's celebrations by slashing the tires of 51 floats bound for the city's Pride parade. The Chicago Sun-Times reported that vandals Saturday night broke into the storage facility of Associated Attractions, a company that helps design, create and store floats.

"'I firmly believe it was a hate crime,' Associated Attractions manager Chuck Huser told the paper.... It's a terrible crime against us, and the gay community....'

"State Rep. Kelly Cassidy, whose float's tires were slashed, also viewed the vandalization (That's a word??) as a hate crime, a reflection on New York's new legislation." (http://www.rawstory.com/rs/2011/06/26/tires-of-51-gay-pride-parade-floats-slashed-in-chicago/)

Hazard, y'all did the right thing. The majority of Americans thank you and applaud you for taking the high road to deal with your crisis.

'It's Not Easy Bein' Green.... And People Tend to Pass You Over 'Cause You're Not Standing Out Like Flashy Sparkles....' *

I wrote below about ethics charges brought against Judy Green, metro councilperson in Louisville, Kentucky. My message was that sometimes it's better for people in the public's spotlight to express regrets, make things right if possible, and resign and/or lay low until time passes and people forgive or forget. If people in crisis continue to hang around and make headlines, they are reminding people of the accusations against them. Then it becomes much harder to forget. I won't go into details of allegations against Green again, but you can get up to speed if you read my posts from June 16 (Crisis Communicators Must Tell Leaders Sometimes When They Are No Longer Welcome) and June 18 (The Writing on the Wall Isn't Always Mere Graffiti).

Green put herself on Page 1 with her defensive comments referenced in the June 18 post. She did it again on the front page of The Courier-Journal after the last council meeting. What follows are quotes from that story:

"Green called the Metro Ethics Commission hearings that she participated in after two complaints were brought against her earlier this year 'tainted and unfair,' and said she has done 'nothing unethical, criminal or even wrong' during her five-year tenure on the council." (http://pqasb.pqarchiver.com/courier_journal/access/2383167631.html?FMT=FT&FMTS=ABS:FT&type=current&fmac=8e9f62f7d1b98084610b919ee9be3915&date=Jun+23%2C+2011&author=&pub=&desc=Judy+Green+calls+misconduct+case+%27unfair%2C%27+defends+her+actions+in+Metro+Council+meeting)

She has yet to explain publicly how five Ethics Commission members and five metro councilpersons have failed to see what really happened in regard to her spending. Well, Judy, what is your side?

"'When you know that you know you have done nothing wrong, I will walk through fire and brimstone,' she told the council. 'It really hurts when my character and integrity have been impugned. If I made mistakes...then I own up to those mistakes. 'Have I willfully committed misconduct? No ma'am. No sir....'

"The commission has heard a second complaint against Green, in connection with her handling of a grant to a nonprofit agency, and is expected to rule on it early next month. The council included those allegations in its charges of misconduct.

"'I'm being charged...when the Ethics Commission hasn't even come back' with a ruling on the complaint related to the grant, Green said. 'This process is wrong -- dead wrong.'

"She also accused some council members of plotting against her and already having her replacement picked. She said the ethics complaints against her were politically motivated. 'I'm ashamed we are at this point. I'm ashamed of...the Ethics Commission....

"'You know, there has been approximately seven to 10 months of dark days for my family and me,' Green said. 'I would not wish this on even my worst enemy. But I'm confident the evidence will bear witness to the fact that the Green Clean Team provided a great service...to children in the community. If I'm being removed from this council for having the best interest of those children at heart...then I'm guilty as charged.'

"During her speech, Green named several council members, in particular (Republican Kevin) Kramer, mentioning his name in talking about the process against her being unfair. She also said the council is taking the action against her because 'I'm too independent and did not make friends with the right people on the metro council.

"'That's very disturbing," Green said. 'If I'm here because I'm not in the right clique, then again, I'm guilty as charged. The clique I'm in is with my District 1 constituents. The clique I'm in is God's clique.'"

Claiming to have God on your side doesn't score any points with skeptics or fencesitters.

More negative headlines are ahead for Green as she faces a trial before metro council. The rules of this unprecedented hearing are, "The member charged shall be afforded fundamental due process, including notice of the charges and an opportunity to be heard; the right to be represented by private counsel; the right to introduce evidence and the right to examine witnesses; and the right to a fair and orderly proceeding open to the public." If 14 of 20 council members vote for her removal (Green and the five council members who petitioned for the hearing are ineligible to vote), she will have to leave office.

Green is what my grandparents used to call "good people." She adopts kids, she takes in foster children, and she has sponsored some good initiatives in her district. Continuing to say she hasn't done anything wrong, especially without offering an explanation for any misperceptions, only hurts her future political career. Blaming others for being out to get her makes a bad situation worse.

Encourage your organization's leaders who may face their own public embarrassment to step aside, at least temporarily. Your business doesn't need a distraction any more than metro council needs one. In these cases, nobody wins.

* It's Not Easy Being Green
Lyrics: Joe Raposo
Sung by Kermit the Frog

Sunday, June 26, 2011

Ohio State Football Program Is In Crisis, Chaos, and Denial from the Top

THE crisis has come to THE Ohio State and its football program, resulting in THE worst chaos since 65-year-old Coach Woody Hayes punched Clemson's Charlie Bauman after he intercepted a pass late in the Gator Bowl, 1978. Hayes never coached again.

Now this storied program has lost another coach, swept up in scandal, rumors, lies, and "here's what he really meant to say."

"Often using the past tense, Ohio State fans celebrated the good civic deeds and great football accomplishments of (Coach) Jim Tressel, while lamenting a resignation they saw as inevitable.... There was, however, a difference between sadness and sympathy. Most people interviewed for this story said Tressel earned what he got for lying to the NCAA. 'He's got to be held accountable,' said junior engineering student Michael Barnes. 'I want the program to be cleaned up. If it takes a couple years to get hit hard, that's what we'll take.'

"Although some students question some of the rules, they don't blame the NCAA for enforcing them. Although they question some of the coverage, they don't blame the media for investigating. They do, however, energetically blame quarterback Terrelle Pryor.

"Pryor allegedly has sold parts of that uniform and other trinkets in exchange for tattoos -- violations of NCAA rules that Tressel covered up, leading to his forced resignation. Other Buckeyes committed the same violations as Pryor and will receive the same five-game suspension this fall, but none has engendered the anger reserved for the guy most Ohio State fans celebrated as a savior when he arrived in 2008.
"While it felt like a funeral for Tressel here Tuesday, it also felt like a burial for Pryor."  (http://sports.espn.go.com/ncf/columns/story?columnist=forde_pat&id=6611869)

Pryor announced he is leaving Ohio State and will try his luck in the NFL draft.

"In reality," The ESPN column continued, "the students do more than just wonder. They know. So do the older fans who pay the big money for tickets and buy those jerseys. They know, but they don't want to know. This is the same everywhere. They want to believe there is a perfectly good reason the star player is driving an expensive car, or why his family has moved to town, or why he has $250 earphones around his neck.

"Confronting college sports fans with the circumstantial evidence of what goes on at a lot of high-level programs robs them of the illusion that allows them to enjoy the games. They want to believe their favorite team is clean. And if it's not, please don't flaunt it to the point we can't avoid it."

THE Ohio State Trustees have been strangely silent through these months of ongoing crisis. But last week, one trustee spoke his mind. And though he said what needed to be said, other top officials at OSU were quick to tell us what he really meant to say.

"Trustee Robert Schottenstein said Thursday that a committee of trustees along with administration will be reviewing the school's response to the violations during the next 30 to 45 days." Trustee Jerry Jurgensen observed, "'The cracks here weren't really cracks of rules, procedures, and policies, they were cracks in a value system. I think we have a lot to learn on sort of the manual aspects of this, but I think we also have a lot to look at it in sort of the soul searching of what is most important in the game of life.'" (http://www.thelantern.com/campus/trustee-says-osu-has-soul-searching-to-do-gee-others-disagree-1.2417557)

Bravo! But his fellow trustees remain in denial. "'There has obviously been a lot of attention paid over the last several months to our athletic programs.… In my view the university is successful and goes forward," (Board of Trustees chairman Leslie) Wexner said. 'In many ways we are serving the public better than we ever have.'"

Serving the public isn't the issue. Cheating and lying within the football program was what Jurgensen was talking about.
"When asked initially if he disagreed with Jurgensen's comments, (President E. Gordon) Gee said 'absolutely' and that the university was moving forward, but that he thought the comments were taken out of context. 'I know Mr. Jurgensen very well and he's talking about the overall issue of our culture,' Gee said. 'He and I have talked about (the fact) that our culture is one that we need to constantly look at and to make sure we are improving ourselves.'

"Schottenstein said he thought the comments more referred to some of the bigger, general issues across the country in collegiate athletics as opposed to just the issues at OSU. 'I do not believe that we have a value system problem at Ohio State, I just don't,' Schottenstein said."

If you guys want to see THE "value system problem," check your mirror.

It's been since last fall, weeks before Ohio State played in the Sugar Bowl, that allegations proved true -- some, at least. But for half a year, the trustees have remained silent. Why? "Wexner said as a board they decided to focus their full energy and attention with the administration on making sure the correct processes and protocols were in place rather than engage in public comment. One of the reasons Schottenstein said they did not say anything until now was because they were not ready."

Holy gridiron! These rich business people couldn't be bothered for even a throw-away comment in more than six months? Their "full energy" precluded addressing stakeholders? According to Tony DeFazio, editor of Pittsburgh Sports Report, the trustees should have been ready to comment the day after Tressel was hired 10 years ago.

"When Jim Tressel resigned as Ohio State's head coach late last month, it shocked the Buckeye faithful. It shouldn't have. They should have seen this coming the very day Ohio State hired Tressel after his wildly successful run at Youngstown State....

"It was all there in black and white; on the record, for anyone interested enough to open a newspaper. The lies. The insincerity. The holier-than-thou air of patronizing superiority. The violations, the cover-ups and the cars.

"Lots of cars.

"More than 50 vehicles, according to the Columbus Dispatch. All of the above — in addition to the now-seemingly-mundane charges of players trading autographs for tattoos — took place under Jim Tressel's watch at both Youngstown State in the mid-1990's and then at Ohio State from the day he was hired until his last season....

"But if anyone so much as suggested something might be amiss, the school's administration — right on up to the athletic director — scoffed at the notion, painting those who dared to suggest impropriety as ignorant fools....

"In early 2004, after several local Pennsylvania high school football standouts made recruiting trips to Columbus, I was told by the father of a prominent recruit that his son would not be attending Ohio State. I asked why, and in the father's words, it was because 'there's some (expletive)-up stuff going on there.' When I asked what he meant, his reply was simple: 'I don't want my son getting caught up in any NCAA violations.'

"I dismissed it as exaggerated talk.... But then the mother of another athlete, from a different part of the state, told me much the same thing. And then a player insinuated the same following a discussion of where he wanted to play college ball. The stories got louder; the gossip got thicker." (http://www.pittsburghsportsreport.com/PSR/node/2136)

In the vernacular of THE Institute for Crisis Management, OSU ignored a smoldering crisis. A football program that lives and dies with wins and losses has trouble looking reality in the eye. But it must. Ohio State either should have never hired Tressel, or ignored his ego to scrutinize him, his players, and his program continuously. Unfortunately, beating Michigan was more important. OSU's football program will probably suffer for several years as a result of ignoring the rules and ignoring THE smoldering crisis.

Friday, June 24, 2011

Tornado Smacks the Backside of Churchill Downs

"That can never happen here. Not on my watch."

That's the mantra of business leadership too many times when the Institute for Crisis Management tries to explain why every organization should have a crisis communications plan. No CEO or communications VP or anyone besides the Lord himself can prevent every single crisis. There are lightning strikes, earthquakes, hurricanes, tornadoes, floods, pandemic influenza, a hijacked jet flown intentionally into a building, sabotage.... The list goes on.

Churchill Downs, the famous horse racing venue in Louisville, Kentucky, best known as host to the Kentucky Derby each May, doesn't have the arrogance that can lead to the downfall of poorly prepared organizations. The track is prepared for natural and man-made crises. I can't find much evidence throughout 137 years of racing past the famous Twin Spires that the track has been seriously damaged by natural crises like a flood or tornado. Phew, so then we can let our guard down! Instead, management and communications at Churchill Downs have a crisis communications plan and are ready just in case those long odds become reality.

Along came August 2009. Seven inches of rain fell on Louisville in 75 minutes. The paddock area, some barns, and part of the track were under several feel of water. The adjacent Kentucky Derby Museum was flooded and had to be closed for renovation during the next 10 months or so. Racing isn't held in August, so crisis communications consisted of allowing the media to see the extent of the damages and explain how all the pieces could be put back together in time for the fall season.

It would have been easy to say, "We never had a serious flood in all these years. We're not going to have one now." (To be honest, I'm not sure if Churchill Downs escaped the 1937 flood that left much of the city under water, and a 1983 minor flood caused a little damage. Regardless, flooding is rarer than a six-foot-tall jockey.) (http://www.bloodhorse.com/horse-racing/articles/51961/rainstorm-causes-severe-flooding-at-churchill)

In 1929, a tornado clipped the edge of Churchill Downs property across the track from the grandstands. Houses across the street suffered damage, but from what I can tell, the Downs escaped the force of the swirling wind.

But on June 27, a tornado damaged nine barns, an on-site residence hall, and the chapel across the track from the grandstand in an area known as the backside. Amazingly, no one was hurt and none of the horses suffered from anything other than fear. More than 150 horses had to be relocated after the unforecasted storm.

Churchill Downs' website was updated as new information was received. (http://www.churchilldowns.com/) "Something happened last night that, as best we can tell, has never happened in the 137-year history of this race track," according to John Asher, vice president of communications. (Play the video: http://www.churchilldowns.com/news/videos/churchill-downs-hit-tornado-not-knocked-out)

"While tornado damage to some barns on the track’s backside was substantial, no injuries were reported to humans or horses in the aftermath of the tornado. The story was quite different in the track’s clubhouse and grandstand. Vice President of Operations David Sweazy said those areas, and the track’s signature Twin Spires, were untouched. 'The frontside (of the track) has sustained no damage at all,' Sweazy said. 'We don’t have water damage…there isn’t a blade of grass bent over on the frontside.'" (http://www.churchilldowns.com/news/archives/tornado-clean-damage-assessment-continue-racing-resumes-friday)

Churchill Downs clearly will survive and flourish still. But what if the grandstands had been full of people Wednesday night? Is there an evacuation plan? Is there a communications plan for accounting for fans in attendance? Are there accommodations to handle phone calls from loved ones if a tornado hit the grandstands during the races?

I'll give you 12-1 odds that Churchill Downs staff would be prepared if a natural disaster struck a few hundred yards farther north. But nah, a tornado couldn't happen here. It hasn't happened in 137 years. What is the likelihood of it happening "on my watch?"

Good luck with controlling the weather and earthquakes and stuff, especially without a crisis management plan and a crisis communications plan. One-third of all crises are sudden, like weather-related problems, and are not preventable. What is preventable, however, is a sloppy, expensive response to your sudden crisis.

Thursday, June 23, 2011

Small Pennsylvania Manufacturing Town Produces More Crises Than Steel These Days

As a kid growing up in Beaver Falls, we used to take the Ohio River Boulevard to go to Pittsburgh. The trip took about an hour, back before construction of the Beaver Valley Expressway. I knew when we were getting close to Pittsburgh when we passed through a small, industrial town called Leetsdale. I don't know what life in Leetsdale was like in the '60s, but if it's like most Ohio River communities in the steel belt, it has fewer jobs and fewer people these days. It lost a Bethlehem Steel plant in the late 1970s.

I wonder if it has more controversy now than it did back then. It's hard to imagine it could have have faced as many governmental crises, or it should have imploded by now.

I want to walk you through the latest crises to split constituents, borough council members, the borough manager, and uniformed and non-uniformed employees. Leetsdale is only about one square mile and has a population of 1,200. As you read the chronological summary of crises, see if there are ties to your work situation, whether you work for the government, a for-profit, or a not-for-profit. At the same time, what would you have done if Leetsdale had hired you to help communicate with stakeholders to diffuse these crises before they split up people and affected lives?

August 13, 2010 (By Bobby Cherry) -- "Amid alleged criminal wrongdoings and many heated moments, Leetsdale Borough Council members approved the controversial hiring of a borough manager. Council member Paul Scimio — who was not in attendance at last night's meeting — was hired by a 5-0 vote to become borough manager.... Many residents asked council to reconsider the addition of borough manager, claiming few had a chance to apply.

"Council member Michael Bajsec said the position was advertised for one day last month in the Beaver County/Allegheny Times. Bajsec could not immediately recall which day the job posting was published. He told a packed room the decision to post the advertisement in one newspaper was to allow people 'familiar' with the borough to apply....

"Also during the meeting, some residents questioned borough expenses on parties, laptops, wireless Internet cards, restaurants, and alleged public money used to pay for cell phone bills of Scimio and Leetsdale police Chief James Santucci. Residents claimed Santucci used borough-issued credit cards three different times to pay for his cell phone bill. Residents alleged Scimio had a cell phone bill of more than $1,000. According to Bajsec, Scimio plans to repay the bill and Santucci had repaid.

"Bajsec, who serves as the finance committee chairman, said in Scimio's case, a billing error occurred and continues to be handled with Verizon Wireless. Bajsec said Santucci mistakenly used his borough-issued credit card instead of a personal card. He added that Santucci's cards were similar and the police chief has since changed his personal card. Santucci, who was at the meeting, refused to comment." (http://www.yoursewickley.com/blog/leetsdale-hires-borough-manager-residents-accuse-officials-committing-crimes)

Aug. 18, 2010 (By --Michael Pound, Beaver County Times) -- "Leetsdale's longtime secretary was ordered to stay away from work this week while the borough's finance chairman arranges for a full audit of its records.

"Elizabeth Petalino, a borough employee for 19 years, said she was told Monday -- days after she was part of a citizens group that leveled ethics charges against members of Leetsdale Council at a council meeting -- that she was being sent home with pay until arrangements for the audit were complete.

"But Councilman Michael Bajsec, who chairs council's Finance Committee, said Tuesday that Petalino was not suspended and was not being punished. Instead, he said he was following the advice of the borough's solicitor and its auditing firm to keep all officials away from the office until the audit is under way.

"Petalino was among a group of residents who attended Thursday's council meeting to discuss allegations of criminal conduct and ethical violations, including interest-free loans to employees, personal purchases on borough-issued credit cards and making purchases without going through the bidding process. The Concerned Citizens of Leetsdale also urged council to delay the hiring of a borough manager, a position that had been advertised only once. Council instead hired Councilman Paul Scimio for the job, which will have an annual salary of $57,500.

Bajsec said his concern was with the charges of financial improprieties, and because Petalino was one of the people making the allegations, he thought it would be best if she was not in the office while an audit he requested gets started....

"Petalino said when she arrived at the borough building Monday morning, she was met by Bajsec and his wife, Sandra, who was recently hired as an administrative assistant in the borough office. 'Mike asked me for my keys and my laptop, and he gave me a few days off with pay,' Petalino said. 'I welcome the audit, but I'm not comfortable with how this has happened.'

"The audit will be performed by Ambridge (a nearby town) CPA Mark Turnley, Bajsec said; Turnley's wife, Kim, generally performs the borough's audits, but Bajsec said he wanted someone else to complete this one."

They wanted a different, independent auditor, so they hired the usual auditor's husband? That makes me laugh!

"'I want this to be as clean as possible,' he said. '(Petalino) won't be involved, I won't be involved, other members of council won't be involved, and our regular auditor won't be involved.'

"Regardless of what the new audit finds, Petalino said she will follow through with plans to file complaints with the State Ethics Commission and the Allegheny County district attorney's office. And that, she said, has her concerned about her job with the borough, at least in the short term. 'I have already been told that there isn't room for me and a borough manager,' Petalino said. 'I have proof of everything we brought up, and I think I'll have a very good case to get reinstated at some point.'" (http://www.www.istockanalyst.com/article/viewiStockNews/articleid/4419733)

Oct. 15, 2010 (By Michael Pound, Beaver County Times) -- Leetsdale's council lost one member to pressure from residents Thursday night, but council also demoted the borough secretary and gave most of her duties to the new borough manager.

"At the conclusion of Thursday night's meeting, Leetsdale Council demoted Elizabeth Petalino, the borough's secretary of 19 years, to a senior clerk position; that demotion came with a pay reduction of about $10,000 annually. Most of Petalino's former duties were given to Paul Scimio, the former councilman who was named borough manager in September.

"Council also promoted Sandra Bajsec, the wife of Councilman Mike Bajsec who was hired earlier this year as an administrative assistant, to a junior clerk's position."

Okay, so we have a whistleblower demoted and the wife of a councilman who was hired just several months before promoted. The 19-year demoted employee becomes a senior clerk and the promoted rookie becomes a junior clerk. This smells like a dead carp in the Ohio.

"Eariler in the meeting, resident Judy Fulton, blasted Mike Bajsec for singling out Petalino at September's meeting over a quirk in her pay schedule that meant she got paychecks two days before the borough's payday.... While Bajsec pointed out on Thursday that he didn't say in September that Petalino was doing anything wrong, Fulton said the borough secretary had been unfairly singled out for a practice that had been in place since Petalino was hired.

"And Petalino said she had received a written warning in her personnel file over the issue. She did not elaborate, and Rick Start, the borough's solicitor, immediately warned members of council not to discuss the specifics of a personnel matter.

"Council will be looking for a new member after Councilman Ed Glad, who was appointed to the position last month, abruptly resigned from the board at Thursday night's meeting. Glad, who took the seat vacated by Paul Scimio when he was named borough manager, did so after one resident said there were two members of council and two borough employees who owed back taxes.

"Glad was singled out by resident Joe McGurk, who said Glad owed back taxes to the borough and Quaker Valley School District for several years. Glad responded by saying that his wife handles the family's finances and he was unaware of the tax bill; later in the meeting, he said he was stepping down.

"The other member of council and employees were not named during the meeting, although another resident at council's September meeting said Scimio also owes back taxes." (http://www.istockanalyst.com/article/viewiStockNews/articleid/4586316)

By this time, I'm thinking these council members just don't get it. Do they expect to treat people like this and hold onto their elected positions?

March 17, 2011 (By Bobby Cherry) -- "By May, there will be no more individually-issued credit cards for Leetsdale Borough elected officials and employees.... The move comes after months of debate over credit card spending among elected officials and staff members.

"Council member Mike Bajsec said plans to rein in credit cards had been in place for months. 'The fix is already in the works,' he said. 'I want to do away with all of the individual credit cards....'

"A review of receipts, Citizens and National City bank statements and other financial documents from January 2008 through July 2010 obtained by the Sewickley Herald through the state's Right-to-Know Act, show taxpayers paid for about $14,000 in food, drink and a Christmas party since January 2008. The changes to the credit card policy are due, in part, to findings from an audit released in January by Ambridge-based auditor Mark Turnley.

"The 14-page report auditing the municipality's last five years showed 'significant deficiencies,' including use of 12 Citizens Bank credit cards offering a more than $20,000 spending limit. While the audit described the deficiencies, Scimio said work had been under way to implement a spending policy.

"'In addition, certain attached receipts were simply the ‘charge card' receipt showing the total amount, without providing any detail as to what was purchased and for what borough-related purpose,' Turnley wrote. 'Most notably, we found this situation common for ‘restaurant related charges' where it could not be determined from the ‘charge receipt' as to how many individuals were served or for what business purpose, if any, these charges were incurred....'

"Following residents' questions in August regarding items such as borough credit card spending and inventory practices, Bajsec, who serves as the borough's finance chairman, directed Turnley and his wife, Kimberly, to conduct an audit in September. The audit cost borough taxpayers $3,000." (http://www.yoursewickley.com/sewickleyherald/article/leetsdale-council-votes-eliminate-individual-credit-cards)

This last paragraph contradicts an earlier story that said Bajsec wanted to start clean with an auditor who was not the usual auditor. Remember? So they hired the usual auditor's husband. Now it sounds like it was a team audit.

Up to now, we've seen nepotism, a whistleblower's demotion, potential credit card abuse, and mistrust of local government by the taxpaying voters. We've seen everything except an arrest. What would be appropriate is if a policeman in this Peyton Place ended up on the other side of the bars.

April 22, 2011 (By Larissa Dudkiewicz) -- "A Leetsdale police officer has been suspended without pay after Beaver County detectives charged him with lying to protect another person. Wayne Drish, 36, of Bell Acres, was arraigned Thursday on charges that include hindering apprehension or prosecution of another person, a felony, and misdemeanor counts of obstructing the law and providing false statements to law enforcement....

"Drish and Jason Ludovico, 31, of Economy, left a bar on Aug. 1, when Ludovico’s car struck a utility pole, according to Santucci. Ludovico was charged with drunken driving, according to court records.

"Three days later on Aug. 4, Drish called Beaver County detectives to report that he was the driver, not Ludovico. Detectives said the evidence proved otherwise.... Santucci said Ludovico told authorities he couldn’t remember if he was driving. (http://sewickley.patch.com/articles/leetsdale-officer-charged-with-obstructing-justice)

May 13, 2011 (By Sarah McCluan) -- "Leetsdale Council members voted 5-0 Thursday night to suspend longtime borough police Officer Wayne Drish without pay due to felony criminal charges filed against him last month in Beaver County. Thursday night's vote upholds a suspension ordered earlier by Leetsdale Mayor Peter Poninsky." (http://sewickley.patch.com/articles/leetsdale-council-suspends-police-officer)

And now for the inevitable primary election:

May 18 (By Alie Gensheimer) -- "After a long day at the polls and an even longer night battling with voting machines, Leetsdale council votes are in. With more than 100 votes each, the challengers who ran together on a slate defeated the incumbents in a landslide victory — the largest number of votes received by an incumbent was 63, which went to Councilman Michael Bajsec.

"Three four-year Democratic seats will go to Melanie Dunn, Linda Michael and Joseph McGurk, who banded together as part of a concerned-citizens group to challenge incumbents Bajsec, Robert Cobourne and Ben Frederick.

"As unofficial results started appearing on the Allegheny County Election Division’s website about 9 p.m., the Leetsdale council votes were still at 0 percent. Votes had to be manually pulled out of a machine used at Holy Family Institute due to a malfunction, Dunn said.

Despite the unknown outcome of the election, Michael and Dunn said they are thrilled to have won seats after all of their hard work. They said they ran with McGurk on the "Candidates for Change" ticket because they want to change the borough’s spending habits and restore the townpeople's faith in local government.... 'Today, Leetsdale voters definitely let the current political party know where they stand,' (Dunn) said. 'This is the biggest primary turnout that we’ve had in some years.'" (http://sewickley.patch.com/articles/leetsdale-challengers-win-council-nominations)

May 19, 2011 (By Karen Kane, Pittsburgh Post-Gazette) -- "What started as raised eyebrows over some borough practices ended Tuesday with a clear message from voters in Leetsdale that it is time for a change. Linda Michael, spokeswoman for a grass-roots citizens group, won a Democratic nomination for borough council, along with three others from the group who were campaigning on a platform of change.

"Discontent took root in July, as borough council began discussing a change in the structure of the borough administration. That sparked job security concerns for longtime borough secretary Elizabeth Pettalino, who sought advice from Mrs. Michael....

"Among the practices were pay advances to borough employees, which Mrs. Michael considered no-interest loans; use of borough credit cards by employees with no official policies for spending or payback; the nature of the search for someone to fill the new post of borough manager, as well as the need for the position itself....

"It's a bit nerve-wracking for borough manager Paul Scimio, who reviewed the election results Wednesday morning. Barring successful write-in campaigns in November, he will have several new bosses in January. 'Here's how I see it: I work at the pleasure of council, and however council is made up, I fully intend to cooperate with everybody and work for the benefit of Leetsdale and its residents,' he said.

"Mrs. Michael said in a pre-election interview that no decisions have been made as to any changes in personnel in the coming year. She acknowledged Mr. Scimio had begun implementing what she and her supporters consider 'overdue' policies and that 'a lot of issues are being remedied....'

"She also said questions were raised about restructuring borough administration, a move that resulted in Ms. Pettalino being reassigned to senior clerk, which initially included a pay cut from about $46,000 annually to about $37,000 annually. Council ultimately restored her salary."

I wonder if the solicitor was behind restoring her pay. Lawyers in the greater Pittsburgh area had to be salivating over handling the case of a demoted whistleblower.

"The manager credits Mrs. Michael and the other members of the group for bringing about changes that were due. 'We were lax. We know that,' he said.

"He said he is writing new policies and believes he's made strides forward, consolidating borough insurance policies, beginning a program to meet with business owners and initiating a recycling program. Another change was canceling a longtime policy of giving borough employees the use of borough credit cards. Mr. Scimio said the practice is no longer allowed." (http://postgazette.com/pg/11139/1147542-54-0.stm)

When a new borough council takes over at the end of the year, it will be interesting to see what further changes might be made, and whether the manager will keep his job. It looks like Leetsdale may be starting to move in the right direction. I'll be watching the council in 2012 to see if it is more transparent and open to the taxpaying public.

Monday, June 20, 2011

Building Good Will With Community Means More Than a Fruit Basket And a Petition

A fire at a St. Louis chemical distribution facility this morning closed a highway and forced the evacuation of 500 people within a three-block radius. Three firefighters suffered minor injuries, according to Chief Dennis Jenkerson. Firefighters arrived at 2:30 a.m. and had the fire under control by 6.

"The (five-alarm) fire at Chemisphere Corp.'s west St. Louis storage yard involved tankers, rail cars and other storage tanks containing solvents, Jenkerson said. A Fire Department spokeswoman said the solvents were acetone and ethanol." (http://www.cnn.com/2011/US/06/20/missouri.fire/index.html?hpt=hp_t2)

Let's see how well Chemisphere's website is sharing information about the fire, which destroyed about 10% of the facility. (http://97.74.214.242/wwwroot/home.asp) The Health and Safety tab: under construction. The News link is hidden at the bottom of the About Us tab. It goes nowhere, eventually ending with a page that says, "Ever feel like you're in the wrong place?" Chemisphere's website is underdeveloped and serves merely as a marketing tool.

Now, let's look at the plant's relationship with the media and neighbors. Neither the CNN story nor the stltoday.com website have a single quote from anyone with the company. (http://www.stltoday.com/news/local/metro/article_61bfcb28-9b31-11e0-bfcc-0019bb30f31a.html) To be unavailable for interviews is to pass up an opportunity to show your human side and deliver your message. Fenceline neighbors had plenty to say. Here's what happens when a company does little to build a bank account of good will, then finds itself bankrupt when it needs to make a withdrawal.

"Some residents on Monday morning said they were skeptical of authorities who said tests showed no danger from chemicals in the air. Several complained of a metallic taste in their mouths.

"Steve Richardson, 57, has lived a few houses away from the plant property for years and said he had no clue anything there might present a danger. 'I'm tired, and I'm upset that they would have something that could kill us right in our backyard,' he said....

"Richardson, who has lived on Bischoff Place since October 2004, lives with his daughter. She said neither the real estate agent she worked with nor her boyfriend who she bought the house with, told her about the chemical plant."

How can someone move into a house and not notice an eight-acre chemical facility down the street? I've heard similar comments around the chemical industrial complex in Louisville, Kentucky, where I've worked and consulted for more than 20 years.

"'We would really prefer that either the chemical company buys everybody out or they keep them closed until they can move,' Richardson said.

"(Warren) Lee, whose house on Clifton backs up to the the fence of the chemical plant property, lives with his mother, teenage nephew and the boy's mother. He said he thought a construction company still occupied the property. Other residents were more aware. Mike Wilson, 47, lives at 2122 Clifton Avenue. From his front porch, surrounded by neatly manicured landscaping of banana plants, he said the chemical smell can wreck an otherwise pleasant summer evening outside. He said the smell of fingernail polish remover is sometimes quite strong.

"Wilson said the company has been expanding fast, and recently plowed a lot across the street from him to make room for an employee parking lot. Wilson made two homemade signs to voice his anger. 'No more traffic,' one read.

"On New Year's Eve a few years ago, someone from the company came to Wilson's home and tried to get him to sign a letter supporting the parking lot expansion. She brought a fruit basket. Wilson wouldn't sign."

The first time neighbors meet a representative from a company shouldn't be when that company wants something. And a fruit basket? How obvious!

"Among other worries, Wilson didn't like the thought of more cars coming onto his narrow street. His family also worries about what dangerous products those trucks are hauling. 'With the tanker cars that come in and out at the end of our dead-end street here, if something were to happen, we have no escape route because Highway 44 is right here,' Wilson said, pointing out that the interstate is beyond a grassy hill with no access for cars.

"Wilson said he'd considered moving. But who would buy his house now, he asked, since the plant next door just had a huge chemical fire and explosions."

Scott Ogilvie is a St. Louis alderman who has represented Chemisphere and the surrounding neighborhood for all of two months. Ogilvie said he's going to "withhold judgment" until police and fire officials finish their investigation.

"What concerns him, Ogilvie said, is that flammable chemicals are stored outside. 'The fire department said there were smaller plastic drums that were outside the premises, and the stuff was rolling downhill toward the tracks,' he said."

Chemisphere has just 40 employees. But when it comes to crises, size doesn't matter. Small companies with few assets and heavy debt load are more vulnerable than big companies to crises that can put them out of business. Chemisphere should visit those affected neighbors one-on-one. It should next invite them to an open house to explain its business and safety program. During the process, management should ask for suggestions of what can be done to improve quality of life. It might mean supporting after-school programs, fixing up homes of the elderly and shut-ins, a program for seniors, an environmental initiative, or buying computers for a library or school.

Business should add value to the community, not detract from it. People need to feel confident that employees inside the razor-wire fences are operating safely and meeting or exceeding environmental standards. Companies need to be transparent in their business, whether they handle hazardous materials or not. Then when a crisis strikes, a fire or otherwise, the community will be more confident in the company's ability to minimize the impact and learn from the incident.

One idea that would help Chemisphere is the formation of a community advisory panel. I facilitate a multi-company panel comprised of residents and industrial managers and one or two employees from each plant. To learn more, visit the Rubbertown Community Advisory Council at http://www.rubbertowncac.org/.

Sunday, June 19, 2011

Be Ready For Addictions in the Workplace That May Lead to Crises

They tried to make me go to rehab, I said "No, no, no."
Yes, Ive been black but when I come back you will know, know, know.
I ain't got the time, and if my daddy thinks I'm fine.
He's tried to make me go to rehab, I won't go, go, go....

I don't ever want to drink again.
I just, ooh, I just need a friend.
I'm not gonna spend 10 weeks,
Have everyone think I'm on the mend.

-- Amy Winehouse, "Rehab"

Amy should never have said "No, no, no" to rehab. Her personal crisis is costing her lots of money and lots of fans. She remains in denial, much the way Charlie Sheen's addiction got him into trouble and got him fired from his long-running sit-com while he merely spews catch phrases. These are two of many examples of stars and athletes who let their addictions and egos sink them, at least until they got the help they need -- if they ever did.

Winehouse recently was booed off the stage. "Amy Winehouse's attempt at a European concert tour ended in Belgrade, Serbia, with a train wreck of a performance Saturday night in which she staggered around the stage and stumbled through several songs.

"The audience eventually chased Winehouse off the stage with loud boos several numbers into what was supposed to be the opening show in a 12-date tour. A representative for Winehouse said her next two concert dates have been canceled." (http://www.cnn.com/2011/SHOWBIZ/celebrity.news.gossip/06/19/winehouse.tour.cancelled/index.html?&hpt=hp_c2)

Winehouse representative Tracey Miller wouldn't confirm that the singer, who has a history with drugs and alcohol, had fallen off the wagon. Winehouse recently left a British rehab program that was intended to prepare her for the European concerts.

Miller added, "'Despite feeling sure that she wanted to fulfill these commitments, she has agreed with management that she cannot perform to the best of her ability and will return home.'" When something is obvious, why skirt the issue like this?

"Video clips of the musical disaster, recorded by concert-goers' cell phone cameras, were quickly posted on YouTube. They showed Winehouse failing in every attempt to sing more than a few slurred lines of her songs. Audience members could be heard filling in the gaps, along with her back-up singers."

Check her out at in concert in Belgrade at http://www.youtube.com/watch?v=jgjjo8175aU&feature=related.

Substance abuse can be a problem in any workplace. Be sure your organization's HR policy is clear about how you will treat suspected addicts. And be sure your crisis communications plan prepares you in the event of a major drug bust or revelations that a senior manager has such a problem. Privacy is an important consideration, as is not evading the obvious, as in the case of Winehouse. Think this through in advance with input from HR and Legal.

New Pool Rules in Hazard; Better Crisis Communications Should Come Next

I wrote here on June 17 about a public pool in Hazard, Kentucky, that kicked out two developmentally disabled gay men. The Bible was cited as the reason. "We own this place, and we can tell you to leave if we want to," a city employee said. My unsolicited advice would be to tell Hazard to take swift action to make clear that any kind of discrimination won't be tolerated in Hazard. The city quickly launched an investigation of the incident and on Saturday issued a news release from the city manager regarding actions to be taken.

* Hang a sign at the pool stating that city facilities are available "without regard to race, ethnicity, color, creed, national origin, age, sexual orientation, or physical/mental disabilities...."

* Post a sign inside the pool area making clear that public displays of affection are not tolerated. This will be enforced uniformly and consistently.

* Review the organization of the pool staff by the city manager.

* Secure additional training for pool staff on state and federal laws as they relate to nondiscrimination.

* Pool employee Kim Haynes will be suspended for five days for his unsatisfactory job performance, use of inappropriate language, and applying religious standards instead of secular ones. The city will send a letter of apology to Mending Hearts, the agency providing supervision of the two clients.

* Issue a reprimand to Charlotte Pearlman for "insulting and obscene language" toward the public. In addition, while handling the many media calls seeking a comment, Pearlman "became frustrated and used inappropriate language in the course of a telephone conversation with a staff member of the CNN show Anderson Cooper 360 while declining to comment on the pending story." (http://www.courier-journal.com/interactive/article/20110618/NEWS01/110618004/Press-Release-Hazard-Pavilion-Incident-6-18-2011-)

We can learn from this case study, and I especially hope Hazard will learn as well. The city's quick response was exactly what it needed to do to defuse the national media frenzy and to demonstrate this act of discrimination doesn't reflect the views of city government.

However, the communications need a lot of improvement. The news release is verbose and stuffy. The city manager or a non-communications staff person apparently wrote the release. If I'm wrong and a communications professional wrote the release, Hazard needs to rethink relying on this person. In addition, it seems clear that Pearlman has never had effective media training. Without it, she thought cursing and no-comment were appropriate ways of dealing with reporters. I doubt that Hazard thought through who the appropriate and effective spokesperson should be. The result was to add humiliation to embarrassment.

I hope Hazard performs a post-op to see what could have been done better. And I hope city managers realize they need a crisis communications plan that identifies key messages, audiences, and -- for crying out loud -- trained spokespersons and writers. If hiring a professional to communicate with stakeholders is too much for Hazard's budget to bear, it should look to outside counsel to help develop a crisis communications plan, conduct media training, lead table-top drills, and be available to draft releases and electronic communications.

A good one-stop-shop to begin with is the Institute for Crisis Management, http://www.crisisexperts.com/.

Saturday, June 18, 2011

The Writing on the Wall Isn't Always Mere Graffiti

If you haven't read my post on June 16 about Anthony Weiner, Judy Green, and the perils of politicians and managers overstaying their welcome, please take two minutes to look it over before you read on. The point was that distractions such as allegations of illegal or immoral activities can affect the company or Congress or Louisville's metro council. The individuals in the crosshairs of the crisis can do themselves permanent harm by refusing to admit they have lost all effectiveness in their jobs.

The proof is in The Courier-Journal today. The Louisville daily published another story about "embattled" (reporters love that word when talking about controversial figures) metro councilperson Green. The top-of-page-1 story claimed, "Green approached council members and (former councilperson and unsuccessful Republican mayoral candidate Hal) Heiner earlier this week, soon after five members signed a petition to start the impeachment process. In an interview, Green acknowledged approaching council members about her ethics charges during budget hearings at City Hall Tuesday. And she said she sought what she called spiritual and political guidance from Heiner that same day." (http://www.courier-journal.com/article/20110617/NEWS01/306170088/Judy-Green-tries-discuss-ethics-case-councilmen-asks-Hal-Heiner-lobby-her-behalf?odyssey=tabtopnewstextHome)

Last week, the Metro Ethics Commission recommended unanimously Green should be removed from office because she intentionally violated four sections of the city's ethics law. She will be on trial before metro council and may be impeached if 14 of 20 eligible council members vote for expulsion. Green is not doing herself, her constituents, or metro council any favors by blaming the accusations on council members who are driven by politics and race, and by refusing to step aside.

Her lobbying for self is hurting instead of helping. Green asked Heiner "if he would 'be willing to make calls to a person or two on her behalf' — specifically Republican members of the council.

“'I don't expect I will be making any calls,' Heiner said....

"The next day, Jim King, D-10th District and the council president, sent a memo to all the council members directing them 'to avoid any discussions or correspondence' on Green's case with anyone other than the county attorney."

Just like Weiner, Green doesn't seem to have even her own Democratic colleagues' support.

"Tony Hyatt, the Democratic majority caucus spokesman, said that Green had talked briefly with council members Vicki Aubrey Welch, D-13th, and Tom Owen, D-8th. Hyatt said Green indicated to Welch Tuesday that 'she wanted to talk about the case and Vicki stopped her in her tracks and said she couldn't talk about it.' Hyatt said Green called Owen Tuesday night and 'asked him if he was a fair man. He said he did not want to go any further with the conversation.'”

The article in today's paper includes a quote from Green that suggests she already can read the proverbial writing on the proverbial wall, yet she still contends "the ethics hearings were a sham and has vowed not to resign."

"'At this point, I don't know if any of my colleagues support me,' Green said, adding that she believes that at least some council members have already made up their minds and 'they are getting ready to put me out.'”

I don't know either about her support, if any. But I do know this story doesn't need stretched out across the top of the paper. No one is being served by Judy's stubbornness and finger pointing. I don't know if she's guilty. I hope not, because she is a wonderful person who has done a great deal for kids in need for a long time. But sometimes, fate tells you it's time to channel your energy and passion in a different way. Politicians, as well as managers in the private sector, should step back and assess the implications of their actions. If you work for one of these people, remind them of this fact of life. See the bigger picture. The devil is in the details, but heaven is a 360-degree panoramic view.

Friday, June 17, 2011

Everybody Out of the Pool -- Unless You're Straight

My father-in-law is in his third term as mayor of my home town, Beaver Falls, Pennsylvania. He has faced a number of problems and crises, but nothing that has gained national attention as his counterpart in Hazard, Kentucky, is facing.

Mayor Nan Gordon, 83, said, "'I've had people call from everywhere. You'd think we've had a murder scene up here, a massacre.'" (http://www.advocate.com/News/Daily_News/2011/06/16/Mayor_Sorry_for_Gay_Disabled_Couple_Kicked_Out_of_Pool/)

Instead, what has drawn attention to Hazard, a town in eastern Kentucky of 4,800 residents, is alleged discrimination by a city employee against two developmentally disabled gay men at a public pool. Gorman apologized and said her city is not intolerant and actually hired a gay lifeguard once.

"They were quickly told to leave by an employee who informed them, 'We own this place, and we can tell you to leave if we want to....' When the two disabled young men entered the pool, they were at first ridiculed then told to leave by the staff at the Pavilion, a public swimming pool funded by tax dollars." (http://my.auburnjournal.com/detail/181162.html)

The employee's justification: The Bible says gay men swimming together is wrong. For the life of me, I can't find a book, chapter, and verse that says two gay men can't share a public pool. If anyone knows of such a passage, please pass it along to my readers and me.

Shirlyn Perkins, executive director of Mending Hearts, Inc., where the men are clients, said in a statement Monday, "'My clients, who already feel ridiculed and different, left the city-owned facility crying and embarrassed for trying to participate in 'normal' activities that everyday 'normal' people do.'" (http://www.advocate.com/News/Daily_News/2011/06/16/Mayor_Sorry_for_Gay_Disabled_Couple_Kicked_Out_of_Pool/)

"A protest is planned for Saturday against The Pavilion. Jordan Palmer of the Kentucky Equality Federation told the AP that he received several angry emails, including one that said Palmer would leave the protest 'with a bullet in his head.'"

A reader named Bubba from Mobile, Alabama, commented, "I am gay and from Hazard. Let me assure you, Mrs. Gorman is anything but homophobic and (is) an accepting and professional person. The employee at the pool needs a wakeup call, but give Mrs. Gorman a chance to work it out.... This really is one of those much talked about 'teachable' moments for a small rural community if we don't screw it up by screaming like a Westboro Baptist Church congregation."

Jeff of Bardstown, Kentucky, wrote, "If this is a public pool, I hope they have good lawyers because it's just a matter of time before the law suits begin. Sue baby Sue! Sue them to their knees."

How Mayor Gorman handles this crisis will go a long way in determining whether Mending Hearts or the two individuals will sue; and if they sue, what size the settlement may be.

I wrote yesterday that half of all crises in 2010 were caused by management, according to the Institute for Crisis Management's Annual Crisis Report. That same report reveals that employees were responsible for 32% of all crises last year. Incidents like this one at the pool may be hard to anticipate, but thinking through some generalities in your crisis communications plan can increase the odds of you responding properly and effectively when employee actions create a crisis.

"Mending Hearts...and the Kentucky Equality Federation have filed a complaint with the city, demanding that the city worker be transferred to another department."

That would probably be a good start to defusing the crisis and demonstrate that discrimination against anyone won't be tolerated in Hazard.

Thursday, June 16, 2011

Crisis Communicators Must Tell Leaders Sometimes When They Are No Longer Welcome

It looks like Congress will now be meeting with Weiner out.

It took far too long for the Congressman from New York to do the right thing -- the inevitable thing. He could have saved himself and others a great deal of anguish and embarrassment if he had told the truth from the start and resigned almost immediately thereafter. His sexting led to a circus atmosphere, not one where the elected can accomplish anything positive. At last, the circus is over and the clown has gone home.

If you live in or around Louisville, Kentucky, you've watched news unfold about a metro councilperson who faces the unavoidable with a stubbornness that handcuffs her effectiveness. Judy Green is a wonderful person. Make no mistake about that. I don't know how many children she has adopted nor how many foster children she has shared her home with for many years. I also am not in a position to judge her guilt or innocence. That's the job of metro council anyway. My main interest lies in the fact that many of us will face similar dilemmas with the people we work for, whether elected official or corporate big-wig.

Green is accused of a conflict of interest in running the Green Clean Team last summer. This is a valuable initiative that gave jobs to teens for clean-up and beautification projects. However, she has been accused of using her official position "to secure unwarranted privileges for herself or family; paid family members more than others doing the same job; and had personal involvement in the program to the point that it impaired her objectivity." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011306100051)

Last week, the Metro Ethics Commission recommended unanimously she should be removed from office because she intentionally violated four sections of the city's ethics law. It was the strongest action the commission could take.

Step two in the removal process was for five metro council members to petition a hearing to remove Green from office. That petition was submitted shortly after the Ethics Commission ruling. Now, Green will go on "trial" before Metro Council, who will decide her political fate.

The Ethics Commission has yet to rule on the second allegation. "The second complaint relates to a $7,500 grant Green awarded the non-profit 100 Black Men of Louisville, then had the organization reroute $5,600 of the grant to other agencies at her direction without the council’s knowledge. The Ethics Commission is expected to rule on that complaint in a few weeks." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011306130080)

Taxpayers throughout the city are angry. "Defending Louisville Metro Councilwoman Judy Green against two ethics complaints has cost taxpayers $21,832 during the first three months of the year — and the total is about to go up. According to invoices obtained by The Courier-Journal under the state open-records law, Green's appointed lawyers from the Reed Wicker firm have billed the Jefferson County Attorney's Office for 218 hours of work during January, February and March." (http://www.courier-journal.com/article/20110614/NEWS01/306140081/Judy-Green-s-attorneys-bill-taxpayers-22-000-more-come?odyssey=modmostcom)

Despite the charges against her and the legal bills she is running up, Green refuses to resign. "'Shocked, devastated, flabbergasted' is how Metro Councilwoman Judy Green says she feels about the Metro Ethics Commission's recommendation. Green says her fight is not over yet. 'I will fight to the bitter end to do what I was elected to do,' she said Saturday....

"'I am not going to resign,' she said, emphatically. '7, 600 people elected me and I've done an excellent job of representing those people.... I did not pay family members more.... That never happened. As far as using my position, we all lobbied for organizations that are near and dear to our heart.... What was done in this case is not unlike what's being done right now with other council members.'" (http://www.wave3.com/story/14888404/councilwoman-judy-green-i-am-not-going-to-resign)

"Green insists all of this is politically and racially driven. 'There are some bullies on that council that have been bullying me from the day one I got on the council,' Green responded." (http://www.wave3.com/story/14901058/councilwoman-green-responds-to) Green is a Democrat; three of the five petitioning council members also are Democrats; one is African-American.

I like Judy. She represents part of the community where I used to work and where I continue to remain involved through civic organizations and consulting. I hope she will be able to continue because she has a heart as big as Shawnee Park.

But as a crisis communications consultant, my emotions can't get in the way. What matters is the way Green has dug a foxhole and takes time and attention away from the many metro issues that need to be addressed. She is hard-pressed to represent her constituents while she is distracted saving her political hide.

A June 13 editorial in The Courier-Journal concluded, "If Ms. Green will not resign, the council must remove her from office."

Anthony Weiner finally got the message. I hope Judy Green will get it soon and save herself further humiliation. When a higher-up in your organization faces censure and removal, the good of the organization must come first. The accused must realize that, as Weiner did at last and as Green should immediately. When faced with a similar problem, always remember the Green/Weiner lesson: Know when to fold 'em.

Crisis Planning Must Include Strategies For Dealing With Management Wrongdoing

Some of us were born to lead, others were born to follow. You'll find both types doing time in the federal or state pen. Some of the leaders you will find there are:

* "Sunflower Farmers Market's founder has resigned after being charged in a child prostitution sting, the major U.S. Southwest organic grocery chain says. Chris Sherrell was named acting chief executive officer following Saturday's resignation of company Chairman and CEO Michael Gilliland, Sunflower Farmers Market said on its Web site. Gilliland also quit his post on the Phoenix company's board of directors.... Police said Gilliland, 52, was arrested at a hotel on suspicion of felony child prostitution. Sgt. Steve Martos said it is alleged the businessman knew he was going there with the intention of paying a minor, whom he had met online, for sex." (February 13, 2011; http://www.upi.com/Business_News/2011/02/13/Grocery-chain-CEO-arrested-in-sex-sting/UPI-57701297651384/)

* "The United States Attorney’s Office today announced that Rufus Paul Harris, 43, originally of Adairsville, Georgia but most recently from Oklahoma City, was arrested on Sunday morning by deputies of the U.S. Marshals Service at a residence in Provo, Utah, after a five-day nationwide manhunt. Harris fled Atlanta on Monday evening, May 23, 2011, after the eighth day of a jury trial in which he was facing charges of securities fraud, wire fraud, falsifying financial statements, and conspiracy. He was convicted of all eight counts....

"Harris was the founder and chief executive officer of Conversion Solutions Holdings Corporation (“CSHC”); co-defendant Benjamin Stanley, 48, of Kennesaw, Georgia, was the co-founder and chief operating officer; and co-defendant Darryl Horton, 50, of Okemos, Michigan, was the chief financial officer. The evidence showed that the three defendants conspired to issue false press releases and financial statements about the company for the purpose of inflating the stock price, while at the same time they were secretly transferring shares to family members who sold at the inflated prices." (May 29, 2011; http://www.fbi.gov/atlanta/press-releases/2011/fugitive-former-ceo-arrested-in-utah)

* "St. Jude Medical’s chief executive officer was arrested in India on Wednesday after authorities at the Delhi airport found a single live round tucked into a knee pocket of his cargo pants, according to media reports. Daniel Starks was in India on business and was about to take a chartered flight.... But he was stopped by India’s Central Industrial Security Force in the airport’s VIP lounge. Authorities found a 45-caliber shell in his pants. Such a caliber is most often associated with a handgun.... It would be shocking if Starks got such a sentence (one to seven years). His true punishment is the ignominy of doing something usually associated in the United States not with med-tech CEOs but instead with bone-headed professional athletes." (March 17, 2011; http://www.medcitynews.com/2011/03/st-jude-ceo-arrested-in-india-after-ammunition-found-during-airport-search/)

* "The CEO of the American Shingle Roofing Company -- accused of bilking hundreds of people in 10 states out of their money -- turned himself in to Georgia authorities. Carlton DeWayne Dunko surrendered to the Bibb County Sheriff's Office on a charge of 'theft by conversion,' posted $64,800 bond and was released Tuesday night, said sheriff's Capt. Mike Smallwood. Atlanta-based American Shingle filed for bankruptcy in September 2010, owing creditors $10 million to $50 million, according to the Better Business Bureau." (February 3, 2011; http://www.walletpop.com/2011/02/03/american-shingle-roofing-company-ceo-arrested/)

* "Last week, a tiny company called SpongeTech sued both the New York Post and investor Timothy Sykes claiming a short-selling conspiracy, according to HedgeFund.net.... Well -- fast forward to today. Spongetech's CEO Michael Metter and COO Steve Moskowitz were arrested and charged with conspiracy to commit securities fraud and obstruction of justice." (May 5, 2010; http://www.businessinsider.com/spongetech-execs-charged-with-fraud-2010-5)

* And one more: "Timothy Durham, the president and chief executive officer of National Lampoon, Inc....was arrested on Wednesday for allegedly perpetrating a $200-million Ponzi scheme involving a business loan company, according to Reuters. Durham, 48, and two former executives at Fair Financial Services — a company that Durham co-owned — were charged on Tuesday with wire and securities fraud in a federal indictment. The charges allege that Durham and one of his co-defendants used investor funds to 'maintain their lifestyles and to pay for personal expenses.' When contacted by EW (Entertainment Weekly), a National Lampoon spokesperson declined to comment." (March 16, 2011; http://news-briefs.ew.com/2011/03/16/national-lampoon-ceo-arrested-ponzi-scheme/)

My point is to illustrate how the top people in some companies aren't immune to greed and stupidity. According to the Institute for Crisis Management's Annual Crisis Report, half of all crises in 2010 were caused by management, from the CEO down to and including all other decision makers in the organization. Because you have a 50-50 chance that your next crisis will be because of something someone in management did, your crisis plan must include a section on allegations of management crime.

This part of the plan should tell specifically what information you will release: name, position, background with the company? Be sure to include Legal in deciding what you will and won't say.

You need some sort of statement, however vague. That's better than National Lampoon's "no comment" approach above. You should have some idea of what you will tell employees and your board of directors and shareholders, if your stock is publicly traded. Be ready for after-shocks. If a manager is arrested, that's one story. When he is arraigned, that's another story. When he comes to trial, that's another. A sentencing hearing is another. Release from prison is perhaps one more. Your crisis communications plan should acknowledge that this might not be a one-day story. Through transparency, you have a better chance of making the story go away or at worst appear on page B-7. To have "no comment" will make reporters want to scoop up some dirt.

When police escort the boss from his office, it's too late to plan your communications strategy. Be prepared for the worst and you will be better prepared to deal with whatever flows your way.

Tuesday, June 14, 2011

Crisis, Schmisis! It's Not the End of the World

Crises come in all shapes and colors. But no crisis is bigger than the end of the world -- unless it's convincing people to give away or waste their money, for the end is near.

You probably remember Harold Camping's prediction that the world would end on May 21. He still won't admit he was wrong. But more about him in a moment. First I want to show you how the economy is having an effect on plans for the Apocalypse.

According to CNN, we now can buy doomsday bunkers for just $10,000, in case the going rate of $35,000 for a luxury bunker is out of our price range. "Rooms in the five high-end bunkers it is building start at $25,000, and features include medical and dental centers, bakeries, pool tables, pet kennels and fully stocked wine cellars. All told, Vivos (the company building and selling bunkers) has more than 10,000 'members' in its Apocalypse community -- some of whom have merely 'applied' for spots in the bunkers and others who have plunked down refundable $5,000 deposits....

"'This may be your only chance to secure a spot in Vivos and to have a far better survival solution than trying to survive on the surface,' Vivos CEO Robert Vicino said in a statement. 'Waiting until the masses realize the end is near will be too late! Ask yourself, which side of the door do you want to be on?'" (http://money.cnn.com/2011/06/14/pf/doomsday_bunkers_cheap/index.htm?hpt=hp_t2)

There's one little catch: Vivos won't tell where the bunkers are. "Vivos doesn't reveal the exact locations of its bunkers due to security concerns. But the company said its cheaper facility is located in Nebraska, 'far from known targets, fault lines, all oceans, and well above the subsided earth changes envisioned by many predictions."

Nuts, it would take me two days to drive to Nebraska from my old Kentucky home. When I get there, how will I ever find my bunker? I'll be dead by then.

That brings us to Harold Camping, the latest Chicken Little to tell us the sky is falling. It wasn't.

"But on May 23, Camping took to the airwaves of Family Radio, where he serves as president, to adjust his prediction. He said he was mistaken that the judgment on May 21 would come in a physical way when it actually came in a spiritual sense.

"However, the 89-year-old broadcaster maintained that the end of the world would still occur Oct. 21 and that the five months of predicted suffering would actually be condensed on that eventful doomsday. (http://www.christianpost.com/news/ex-followers-of-harold-camping-voice-anger-on-family-radio-50691/)

On his radio network, "Harold Camping predicted Monday (May 30) that corpses of the 'unsaved,' which includes those in the U.S. armed services, will be flung out of their graves and on the ground like 'manure' on October 21. (He must have recently watched "Night of the Living Dead.")

"The radio broadcaster went on to explain that the person himself will never experience any of this since they are dead and no longer have any consciousness. 'But they will be shamed,' he reiterated." (Hey, that's a line from "Slapshot.) (http://www.christianpost.com/news/harold-camping-dead-bodies-will-surface-from-graves-on-oct-21-doomsday-50677/)

I'm not here to belittle Camping, his religious beliefs, or anyone else's beliefs. My point is to show one more way a business can create its own crisis. Don't do that, even if you think you've cracked some Biblical code.

"In the days leading up to the predicted 'Judgment Day,' Camping followers took drastic measures to prepare for their rapture. Some quit their jobs. Others sold their possessions to finance billboard campaigns announcing the May 21 date. And still others, like the caller to Family Radio Monday, have lost something of even greater value: faith.... One ex-follower was so upset over Camping's failed prediction that he threatened the doomsday speaker with violence and used profanity to address him.

"'You're really pathetic, you know? I wasted all my money because of you. I was putting all my money and my hopes on you,' an angry caller told Camping. 'Do you understand? I wish I could see you face to face. I would smack you.'" (http://www.christianpost.com/news/ex-followers-of-harold-camping-voice-anger-on-family-radio-50691/)

Rumor has it the organization spent $100 million promoting Camping’s end-of-the-world prediction. Family Radio revenues in 2010 were less than $20 million. (http://www.rbr.com/radio/family-radio-not-rolling-in-dough.html)

Now, what do I have to do to put you in your very own doomsday bunker today?