Qantas Grounds Flights, Court Orders Planes to Fly Again

I didn't understand what Qantas CEO Alan Joyce was doing when, late last week, he grounded all flights as a result of growing labor unrest. The lockout cost the company $20 million a day. But now his strategy is being hailed by some as genius.

With all flights grounded, affecting 70,000 passengers a day and 32,500 employees, an Australian arbitration court intervened over the weekend and ordered Qantas to resume flights.

"Joyce praised the outcome, which prevents unions from taking any further strike action over their demands for pay hikes and job security clauses under new contracts being negotiated. The strikes have been blamed for a sharp decline in the airline's future bookings.

"'The important thing is that all industrial action is now over and we have certainty,' Joyce told reporters in Sydney.

"'It was a very shrewd move by their CEO to force the issue and stop the potential deterioration of the brand,' said Mo Garfinkle, an airline consultant who has worked for Qantas rival Virgin Australia. 'In the end, it will benefit Qantas financially.'" (http://www.businessweek.com/ap/financialnews/D9QMVVUO0.htm)

In the short-term, Garfinkle is right. In the long-term, he probably is right. But in the intermediate term, Qantas has some work to do to win back passengers and, if it's even possible, win back employees' trust.

"But the surprise grounding of all 108 planes on Saturday, at a cost of $20 million a day, has hurt the Australian flagship carrier's reputation among the tens of thousand of passengers who have been stranded around the world....

"Henry Harteveldt, an airline industry analyst in San Francisco, predicts the shutdown will do long-term damage to the Qantas name by hurting its reputation for reliability. 'A lot of travelers won't take a chance and will book away to Virgin Australia, Air New Zealand and other airlines,' Harteveldt said. 'Brand loyalty in the airline business is very low, and there is so much competition.'

"Before the court ruling, Virgin Australia said it was scheduling extra flights and offering 20 percent fare discounts to help stranded Qantas passengers through Thursday. If Qantas loses customers, that could also hurt partners in its alliance of global airlines, including American Airlines."

The unions argued before the three judges that the court should temporarily suspend the employee lockout so that strike action could resume. Qantas claimed the strikes had devastated the airline's reputation for reliability and that the threat needed to be removed permanently before customers would return.

Okay, now the threat of further strike action is gone. The interesting part will be watching to see how quickly Qantas bounces back from this smudge on its reputation and the weight of carrying thousands of disgruntled employees on the payroll.

As far as the financial community's perception, Qantas stock was up 5% on Monday, the first trading day following the court order.

Coal Industry Crackdown Should Have Been Anticipated

If the earth is shaking under someone in your industry, you need to warn management that a tsunami could engulf your company. You must establish a Management Emergency Warning System (MEWS) to anticipate ripple-effect crises that could affect you.

Part of MEWS is keeping up with what's happening with your competitors and others who may be in a similar business or have similar risks. MEWS only works, however, if you have management who will listen and take appropriate action.

The coal industry should have been ready for backlash after the Upper Big Branch Mine explosion in April 2010 that killed 29 West Virginia miners. Those caught unprepared for a regulatory tightening of the screws have no one to blame -- except their own poor or non-existent MEWS. Or in some cases, management arrogance and ego.

Coal companies should know that four managers of the former Massey Energy, which owned Upper Big Branch, have gone to prison. Investigations and trials have unearthed illegal practices such as keeping two sets of records on safety and warning miners underground that inspectors were on the surface.

James R. Carroll of Louisville's The Courier Journal wrote about the extensive crackdown on the coal industry following Upper Big Branch Mine. "Since April 2010, the federal Mine Safety and Health Administration has conducted 251 so-called 'impact inspections' in coal mines, including 73 in Kentucky and seven in Indiana.

"Those safety sweeps have netted 4,530 citations for violations, including nearly 2,000 in Kentucky and 111 in Indiana. At the same time, MSHA has ordered 427 temporary mine closings to fix problems, including 174 in Kentucky and six in Indiana." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011310310008)

It wouldn't take much of a MEWS to anticipate increased federal oversight following the worst mining disaster in 40 years. But based on the numbers above, many companies still don't get it. And along with tighter inspections, they need to be prepared for inevitable tougher regulations.

"MSHA also is moving ahead with proposed regulations to improve and tighten coal-dust monitoring to protect miners from excess exposure that can lead to black lung disease; new rules to crack down on operators with a pattern of safety violations; and additional action to prevent equipment from crushing miners."

Despite all the warnings, there remain some bad company managers out there. "For coal operators who do get it, 'they’re doing what we ultimately believe they need to be doing, and that is, inspecting their own mines and fixing a problem and not waiting on MSHA to show up to fix it,' (MSHA Administrator Joseph) Main said."

Renegades, beware. "As for coal companies that don’t adhere to MSHA’s emphasis on safety, the agency can find mines to have 'patterns of violations' that could subject them to being closed until chronic safety problems are fixed. During audits of mines that the agency considered to be suspect, MSHA found that only a handful actually failed to turn over accident, injury and illness data....

"Since it instituted changes last year, MSHA has notified 15 mines — four of them in Kentucky — that they have a potential pattern of repeat violations. Two of those mines, including Bledsoe Coal Corp.’s Abner Branch Rider Mine in Leslie County, ultimately were put on a special watch list that allows agency inspectors to shut down working parts of those mines for every significant safety violation."

Consider carefully a MEWS in your organization. If you have one, how can you make it stronger? But if you have a management mentality like the coal company mentioned above, there's no use wasting your time. They won't listen. You might want to consider updating your resume instead.

Armstrong Wall Collapse Kills Two People; Statement Inappropriate

There's not a company in existence that can't cite all the safety platitudes. And most can keep a straight face when reciting them. Many can point to safety awards presented by myriad industry and civic groups. It's cliche time: Actions speak louder than words.

Two employees were killed Friday at an Armstrong Coal surface mine in western Kentucky when a pile of rock crushed their truck as they drove near a highwall. I want to make a point about Armstrong's media statement, but first I want to put it in context.

Armstrong's News tab on its website has no mention of the accident (http://www.armstrongcoal.com/news.html). There is a tab that discusses its commitment to safety: "Armstrong has been fully committed to the health & safety of its miners since the company began mining operations in 2008. The goal of Armstrong is for every miner to go home each day accident free.... Armstrong's commitment to safety is recognized by its exemplary safety record year in and year out." (http://www.armstrongcoal.com/safety.html)

Reality seems contradictory. "U.S. Mine Health and Safety Administration records show the agency cited operator Armstrong Coal in April. The citation was first reported by the Owensboro Messenger-Inquirer.

"'That was an unrelated incident that took less than an hour to correct,' Bob Gunnell, a spokesman for Armstrong, said Saturday. The citation for the Equality Mine at Centertown refers to standards that require removal of loose hazardous material from the top of highwalls, the unexcavated face of the layers of soil and dirt and rock lying on top of the coal seam. Records show Armstrong has contested the citation." (http://hosted2.ap.org/ALDEC/TDNational/Article_2011-10-29-Miners%20Killed/id-a579607f66794738a400734722b726e4)

It's not an unrelated incident, as claimed. The citation was for violation of standards requiring removal of loose material from the top of highwalls. This particular highwall collapsed.

Armstrong issued a statement Friday or Saturday. I can't find the exact words of condolences. I only find a passing reference to that good stuff, and then an add-on that makes me cringe:

"Armstrong released a statement expressing condolences for the men and pointing to its safety record.

"'The Armstrong Coal Company's Equality Mine has a strong safety record having previously gone 436 days without an accident and winning several awards for safety. Armstrong Coal officials are fully cooperating with state and federal mining officials in their inquiries,' the statement said."

A fatality isn't the time to brag on your safety record. Maybe next month you can find ways to release how wonderful you are. But two men have just been killed, and you're sticking to your story about how safe you are? And all the while you know you are contesting a fine for what might be a related violation last spring?

Not cool. Following a tragedy, stick to the three C's: condolences, cooperation, and correction. Boasting about safety awards has no credibility and is tasteless.

Fairs Are Crises Waiting to Happen

This year's fair season is over, but ripples from at least two of them remain on the pond. I wonder how many fair staffs have crisis communications plans, complete with holding statements, key stakeholders, and other relevant quick-grab information. So many and varied crises can happen when so many people are gathered at the same place.

In the case of the Indiana State Fair, a stage collapsed in a storm last summer, killing seven and injuring many more who were waiting for a Sugarland concert. "Survivors and those still traumatized by the deadly stage collapse at the Indiana State Fair hoped for some musical healing Friday night as country band Sugarland returned to the state for a (free) benefit concert more than 10 weeks after a tragic night that continues to conjure up painful memories." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011310280077)

Communications from fair staff largely have been stymied by legal ropes and chains.

More recently, E. coli has been linked to the October North Carolina Fair in Raleigh. Ten cases have been confirmed and 16 more are under investigation. Four victims are children, three of which remain hospitalized on dialysis.

"After the initial cases were reported, it did not take long for suspicion to be directed at the fair, since an E. coli outbreak in 2005 was traced to a petting zoo at the fair, (Public Information Officer Julie) Henry (of the North Carolina Division of Public Health) said.... But Henry acknowledged Friday that officials may never determine the source of the outbreak....

"The majority of U.S. outbreaks -- blamed for some 265,000 illnesses and 100 deaths in the United States each year -- are linked to raw or undercooked ground beef, unpasteurized milk, unpasteurized juice and leafy greens, HHS said on its website." (http://www.cnn.com/2011/10/28/health/north-carolina-e-coli/index.html?hpt=hp_t2)

For a crisis communicator, there aren't a lot of things to tell your audiences except that you are cooperating fully in the investigation. That's exactly what the North Carolina fair spokesman did. "Brian Long, director of the North Carolina State Fair press office, said that fair officials are cooperating with public health officials as they try to determine the source of the outbreak. 'Right now there are still far more questions than answers, and we know the investigation will take time. But we are eager to help investigators any way we can,' he told CNN.

The question I have is did that statement come from legally approved words in a functional crisis communications plan? Sometimes, a communicator can get it right operating on the fly. But often, there is too much going on to draft a statement and have it approved -- especially in a bureaucracy like a state government. In this case, Long had the luxury of time because a statement wasn't needed immediately.

If your organizations exists to draw big crowds, or even smaller crowds such as a museum, you are far better off having a crisis communications plan than in making up messages and stakeholders as you go. Write, or have an outside professional, write a crisis communications plan. Then hope you never need it. I guess it's a lot like car insurance.

Cintas Provides Statement About Employee Fatality

"More than five million people go to work every day in a Cintas uniform including employees from McDonald's, NASCAR, W Hotels, Royal Caribbean and many more." (http://www.cintas.com/uniform-work-apparel/) A Cintas employee in Louisville, Kentucky, died yesterday when he fell into a drier.

The employee was alone at the time. It was about 4 a.m. and his partner wasn't due to arrive for another 20 minutes. He was on top of the drier, apparently trying to fix it before others came in on the clock. The drier jump started and he fell in.

"'It appears at the time, safety mechanisms were not in place and the dryer did start which actually pulled him into the dryer causing blunt force trauma to his body," said (Lt. Barry) Wilkerson. (http://www.wlky.com/news/29617717/detail.html)

"OSHA indicates Cintas has amassed at least 265 safety violations nationwide since 2003. 70 of those, regulators deemed could cause 'death or serious physical harm.'" (http://www.whas11.com/home/Maintenance-worker-at-Cintas-dies-after-falling-into-industrial-dryer-132789513.html)

It seems like the machine should have been locked out/tagged out, that the employee should have waited for his partner, that he should have been tied off. But whether safety regulations were violated is up to OSHA to decide. How well Cintas is communicating is up to us to decide.

"Heather Maley, the Senior Corporate Communications Manager released this statement:

"'Cintas is devastated to have learned about the accident that took the life of one of our employee-partners at our uniform rental facility in Louisville overnight. Our deepest heartfelt sympathy is extended to his family. The safety and security of our employee-partners is a priority at Cintas and we are shaken by this news. The company remains focused on providing support to the family and his co-workers at the facility. A thorough investigation has begun to determine the cause of this accident.'" (http://www.wdrb.com/story/15900304/louisville-employee-falls-into-industrial-dryers-and-dies)

The only thing missing is a pledge to cooperate with outside agencies in their investigations. Nevertheless, it's a heartfelt message and much better than "unavailable for comment," don't you think?

I can't find this statement posted anywhere on the website, which leaves me wondering if the company is hoping the accident will remain a local issue only. Other employees need to know what happened so they can be extra cautious until they know the cause. Then every facility will need to look at its own equipment and procedures. Perhaps that communication is taking place through other media.

As I write this, it's been just 29 hours since the accident. I'll be watching to see if there are after-shocks, or if Cintas will do and say the right things to ease the crisis.

Treating Employees and Communities Well Pays Dividends

Businesses are in business to make a profit, pure and simple. They don't exist to be benevolent clubs, although they should recognize that giving back is an important part of doing business. Likewise, treating employees like adults, with respect and trust, may cost some money up front, but it pays off in the long run in terms of productivity, retention, and positive-speak in the community. I always viewed donations and considerate employee relations as investments. Not everyone agrees.

The relationship between Hackleburg, Alabama, and Wrangler makes an excellent example.

"When a tornado tore through Hackleburg, Ala., in April, it nearly destroyed the little town and killed 26 people. Dozens of houses were flattened, along with several businesses and buildings -- including the Wrangler factory, the largest employer in the town.

"Pairs of the iconic blue jeans were found as far as 90 miles away after the storm. Many of the workers lost their homes and were also left without hope. Plant manager Wade Hedgedorn took shelter under a table with 13 other workers when the twister blasted through the plant. One person died." (http://abcnews.go.com/US/bringing-america-back-wrangler-rebuilds-tornado/story?id=14826097)

When the initial shock eased, Hackleburg wondered if its largest employer would rebuild there or elsewhere. To rebuild someplace else probably would mean the end of this flattened little town. Why rebuild homes if there was no place to work?

"But in a display of loyalty, Wrangler announced that it would rebuild by opening a new plant in two years, and would add 50 new jobs.... In the meantime, every worker still has a job and benefits. It only took a few weeks for the company to move to a refurbished warehouse about 80 miles away.

"The company drives the workers to their temporary space, so the company can continue to ship jeans while it rebuilds the old plant. Hackleburg is still the best location to meet Wrangler's shipping needs, and the company didn't want to lose the workforce made up of highly-skilled Americans."

Do you suppose workers are going to complain if asked to do a little extra? Will salaried people complain about having to work on Saturday once in a while? Will employees tell their neighbors about how poorly managed Wrangler is? No, these people would take a figurative bullet for the company.

"Charlotte Walter, who has worked at the company for 20 years, said Wrangler has taught her to be more considerate of people, because that's the treatment she received. 'In abundance,' she said, in tears.

"Donna Fredrick, who has worked for 15 years at the plant, lost her home -- but today, she's also rebuilding. She'll work forever for a company that stands by its people, she said, and is bringing America back, one family at a time."

From the perspective of crises, imagine Wrangler suffered a crisis that should have been prevented but wasn't. The goodwill that Wrangler built will insulate it, long-term at least, from any negative reverberations. Bad neighbors, bad employers, have stakeholders just waiting to stick it to those organizations. But companies like the Hackleburg Wrangler plant have loyal employees and community members ready to defend.

PR Pro in NFL Makes an Interceotion And Another Drops the Ball

What is the role of public relations? It's clearly to, in part, enhance the images of our respective organizations. There are countless ways to do that, but not all result in positive outcomes. This blog is peppered with examples of PR people who perform heroically and others who miss the mark with comments that leave us going, "Huh?"

A recent pair of examples in the NFL reveals a great block and a missed tackle.

"After the 49ers upset the previously undefeated Detroit Lions, pumped-up 49ers coach Jim Harbaugh ran onto the field for the customary handshake with Lions head coach Jim Schwartz. Harbaugh, in his excitement, slapped Schwartz' hand admittedly with too much force. Words were exchanged and a scuffle ensued that was captured by cameras.

"The showdown was broken up by (49ers director of PR Bob) Lange, who ran in between the two irate coaches exclaiming 'WhoaWhoaWhoaWhoa!!!!!!,' acccording to Sports Illustrated's Peter King, just as Schwartz 'was about to get at Harbaugh and possibly do something he might regret for a long, long time.'

"Not only did Lange help diffuse an ugly incident, he kept the story from straying too far away from the 49ers' big win. While most football highlights led with the coaches' fight Sunday night, Lange likely did a solid service to his franchise in limiting the damage." (http://www.odwyerpr.com/video/101711video-49ers-pr-man-in-center-of-nfl-scrum.html)

Lange deserves a game ball. A week later, a radio interview turned into a lost fumble.

"New York Jets media relations director Jared Winley sparked a sports PR debate Oct. 21 when he cut into an on-air phone interview between a star player and WFAN radio's Mike Francesa, telling the player to hang up on the radio host.

"I was on my way home Friday evening listening to the interview as Francesa pushed the line in telling All-Pro New York Jets cornerback Darrelle Revis (over and over and over) that he thought a penalty should have been called on the Jets star on a key play Revis made in the previous Sunday's game.

"Revis initially took the opinion in stride, countering that he felt the host was wrong. As Francesa persisted in a half-joking manner Revis sounded agitated. After a few minutes of back-and-forth, an electronic tone could be heard on the line and Winley's voice came on the air to tell Revis to hang up the phone, which the cornerback did.

"To his credit, Winley later called the show's producer to apologize and say he should have asked the host to simply move on to a new topic: 'In my judgment, given the tone of the interview, I should have asked Mike to move on to another topic, instead of instructing Darrelle to hang up the phone. That was an error on my part. I’ve called Mike’s producer and I apologized.'" (http://www.odwyerpr.com/blog/index.php?/archives/3451-Did-NY-Jets-PR-Staffer-Cross-the-Line.html)

Protecting your organization by stepping in to prevent a potential crisis is the job of communicators. Protecting your organization by stifling unpleasant conversation probably isn't usually the right strategy. While it may feel good and right at the time, an action that must be followed by an apology probably isn't the best way to go.

Wild Animals Escape: There Are No New Crises

At the Institute for Crisis Management, President Larry Smith insists there are no new crises. Nothing can ever happen to your organization that hasn't happened to someone else.

What about this: "Lions, bears and wolves were among the animals found running loose on Tuesday in Ohio, where the owner of an exotic animal farm was found dead on his property, police said. Sheriff's deputies found about 48 dangerous animals running loose on the farm near the east-central Ohio town of Zanesville, and shot dead about 25 of them, Muskingum County Sheriff Matt Lutz told a news conference." (http://www.csmonitor.com/USA/Latest-News-Wires/2011/1019/Escaped-wild-animals-hunted-in-Zanesville-Ohio)

That's a first, right? Not exactly. Shark attacks off the southwest coast of Australia recently have killed three people, affecting tourist and off-shore commercial operations. Alligators released by irresponsible pet owners can be in waterways in the north. In the south, it's the alligators' natural domain. Bears, particularly grizzlies, can attack hikers or move into more populated areas, seeking garbage dumps or whatever. Wild dogs can form packs. Mountain lions wander into California neighborhoods looking for food. Pythons escape or are released.

My sister lives in a quiet college town in northwestern Pennsylvania. I have a picture on my phone of a black bear in front of her house -- right in town.

Crises related to animal attacks at businesses are rare. There are few animal attacks (other than pets gone wild) that can affect your organization. Zanesville, where schools were closed and motorists were warned to stay in their cars, is a crisis more of the bizarre classification. Still, you must be prepared to communicate.

That doesn't mean your crisis communications plan has to account specifically for tiger attacks. But if your plan is written thoroughly, some contingency will enable you to make an initial statement if an alligator crawls from the river onto your property. Something should help you say something to employees, families, and other stakeholders.

The good news is that there are no new crises, so our well-written plans can account for pretty much anything. Uh, that is if you have a plan to begin with.

National Emergency Alert System To Be Tested November 9; Might Be a Chance To Test Your Own Alert System

The first nationwide test of the Emergency Alert System is scheduled for 2 p.m. EST on November 9. The purpose of the test is to assess the reliability and effectiveness of the system designed to alert the public. (http://www.fcc.gov/guides/emergency-alert-system-nationwide-test-eas)

EAS is a media system that is designed to transmit emergency alerts and warnings to the public at the national and local levels. EAS participants broadcast alerts and warnings regarding weather threats, earthquakes, security risks, child abductions, and other types of emergencies. Alerts are transmitted over television and radio, satellite television, satellite radio, and cable television. The Federal Emergency Management Agency (FEMA) and Federal Communications Commission (FCC) will conduct the test.

"Although the nationwide EAS test may resemble the periodic monthly EAS tests that most consumers are familiar with, there will be some differences in what consumers may see or hear, which is one reason for conducting a nationwide EAS test. During the test, the public will hear a message indicating 'this is a test.' The audio message will be the same for everyone, however due to limitations of the EAS, the video test message may not be the same... FEMA and the FCC plan to reach out to organizations representing people with hearing disabilities to prepare that community for the national test."

The three-minute test will involve only broadcast radio, television, cable television, and satellite communications that participate in the EAS, but not mobile communications. This seems like a major gap in the system.

I don't see any suggestions of how businesses should participate. I suggest you consider transmitting the text of the test via Twitter, cell phones, employee e-mails, and other ways you rely on to communicate quickly to your people. This includes universities who have set up phone dial-up systems, e-mail, and Twitter notification systems.

Maybe you already do your own regular testing. It still wouldn't hurt to see how and how quickly you can notify stakeholders if there were a national or regional alert.

Here's a Cause the Occupy Wall Street Should Get Behind

I moaned in an October 15 post how Occupy Wall Street and all the other Occupy Somethings around the world have no agenda. As in the movie Network, "We're mad as hell and we're not going to take it anymore." Take what? Occupy what? Well, I have an idea for a symbolic gesture, to identify an enemy and then stick them.

The idea comes from a wonderful Sports Illustrated article by Ian Thomsen. (http://sportsillustrated.cnn.com/2011/writers/ian_thomsen/10/21/NBA.labor/index.html?xid=cnnbin&hpt=hp_bn10)

"On Thursday night in a Manhattan hotel, as owners and players bickered over ultimatums, the NBA was ignorant of a larger threat developing just miles away. On the southern tip of the rich island were gathered thousands of stubborn protesters representing American economic frustration. They were the people of Occupy Wall Street....

"The issues protested by the Wall Street Occupiers are far more serious than the lockout that is upsetting basketball fans. Yet the parallels are obvious. The NBA generates $4 billion annually and its players average $5 million in salary per year. Yet they cannot agree on how all of that money should be divided between the owners of the franchises and the employees. They have been arguing for more than two years without recognizing or respecting what is happening in the world around them -- not only that they should be celebrating their good fortune rather than fighting over it, but that those with far less wealth are beginning to mobilize and realize their own power."

Pro athletes and owners are arrogant. They fight over huge pots of money, and when it's all over, it's the fans who pay. And we fans are loyal. We'll continue to pack stadiums and arenas because those are our teams. Nowhere is that more true than where I grew up, in Pittsburgh. The Steelers define that city: tough, hard-working, and gritty. The Penguins sell out their new arena for every game, and the Pirates -- well, they were the talk of the town in the '70s and last summer until they took a dive in July. My first job was as a sportswriter because sports is what you did in Western Pennsylvania.

Baseball once cancelled a World Series. Hockey cancelled a season. Football went on strike and made a mockery of the game using replacement players and almost cancelled the current season. Now it's the NBA's turn. And it's the public's turn to make an example of these fat cats.

"But never has a league dared to shut itself down in a time like this, during a recession now generating its fourth year of high unemployment and foreclosures. The Occupy Wall Street protesters and their brethren emerging in scores of other cities in America (and around the world) are establishing their own agenda. They are refusing to argue the underlying details of the financial meltdown, and they don't claim to offer solutions. Instead, for now, they are simply demanding that they be acknowledged by those who hold the majority of money and power.

"'Respect us,' the protesters are saying.

"'Or else what?' the rich and powerful seem to be responding. To which the protesters have said nothing ... yet. They are deciding how to respond and what to do amid an ominous silence....

"But now the dots have never been easier to connect. This is a league that has used public money to finance its arenas -- expensive buildings that are now shuttered to the financial detriment of local governments as well as thousands of workers, and it's all because of a very simple and unbelievably greedy story. Everyone else suffers because 30 owners and 400 basketball players cannot agree on how to share $4 billion per year.

"The Occupy Wall Street protesters are trying in their own way to tell the rich and powerful that they must be conscious of the world around them. The NBA owners and players are failing to recognize not only their citizenship but also their extreme vulnerability. They have forgotten that the NBA exists largely due to its fans."

The lockout isn't much of a crisis for the NBA. Eventually, they'll divide up the money and make their millions from the fans and TV networks. And the fans will return, as they always do, and pay ridiculous prices for tickets, concessions, and parking. But...

"What if it strikes the larger public nerve, so that the NBA's $4 billion shutdown is turned into a high-profile example of something deeper and much more important than a game? This kind of public reckoning has been forecast for a long time."

Occupy Wall Street is a protest in search of a cause. The NBA is ideal symbolism of the rich getting richer and the poor getting poorer as they protest in the park.

"Each time they meet, the owners and players emerge from their failed negotiations and declare how much they love and feel sorry for the fans. It's the one statement both sides share in common, and it couldn't be more hollow or condescending. In the end, the details of their negotiations don't matter nearly so much as the harm the owners and players are creating together."

Negative Perceptions -- True or False -- Can Lead to Crises

Don't just tell your message; show it.

I wrote about mountaintop coal removal a couple times recently. In a September 28 post, I wrote, "Coal mine operators: Show you can behave safely and responsibly toward the environment. If mountaintop removal really isn't so bad, take reporters and others to a mine site and show them. If it really is devastating to mother nature -- well, you can't tell your story if you have no story to tell."

At the risk of being redundant, I'm going to be -- well, redundant. The message is that seeing is believing.

I once worked in the government's nuclear bomb-building facility. I was ready to move on and heard about a job at a chemical plant. I had a poor perception of the chemical industry, so I wasn't interested. Nuclear bombs were okay; chemical plants were scary. When I heard about the open position from a second source, I decided that maybe I was supposed to follow up. I believed that chemical plants leaked hazardous materials into the ground and water and that people dumped nasty stuff into the river at night. After all, isn't that what Hollywood shows? It had to be true. I used to have arguments with a guy in my church who was a consultant for agricultural chemicals. I said such chemicals were unnecessary health risks that simply improved profits for large farms and packers. I wanted no part of that business.

I was no fan of the chemical industry.

I got an interview at the chemical company's headquarters in Philadelphia and made the first cut. I went to the plant in Louisville, Kentucky, where the company wanted to build a hazardous waste incinerator. I still was skeptical. A chemical plant, with drums of leaking, vile substances and dripping pipes?

When I toured the plant, I was amazed. It was clean. There was a bit of odor in the air, but only a bit. I talked to employees about the safety and environmental programs. There were no leaking chemicals, and as best as I could tell, no guys in white suits were dumping barrels of methyl ethyl death into the Ohio River at night.

I accepted the job offer. I wasn't surprised to learn that many in the community shared my perception of what a chemical plant looked like. That's why one of my first objectives was to convince plant management to institute a major tour program. Heck, we even had elementary kids in. It was perfectly safe. When neighbors and community leaders saw what the plant really looked like inside and were convinced we had nothing to hide, perceptions changed.

When people can see that their ideas of a chemical plant or a coal mine aren't nearly as horrible as they thought they were, oppositions melt. If you have perception problems with your business, open up the gates. If what you are doing will further fuel negative views, clean it up. Then open the gates.

If you can't pretty up a mountaintop mine, then maybe you have no business in using that method to extract coal. And if you don't want people to see your facility, clean it up. Then promote it.

Otherwise, you're a crisis waiting to happen.

Think You Don't Handle Hazardous Materials? Think Again

Aha! Thank goodness your business doesn't handle hazardous materials, eh? Who needs a crisis communications plan to prepare you for a chemical leak, right?

Today in The Courier-Journal (Louisville), back to back in Metro Briefs is a pair of items to counter the Mad myth of "What, me worry?"

"The westbound lanes of Westport Road at Ormsby Lane were closed Friday afternoon after the Lyndon Fire Department declared a hazardous materials situation, according to MetroSafe. Less than a quart of anti-freeze and oil had leaked into a manhole cover after a traffic accident, said a MetroSafe supervisor." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011310140093)

And then this item: "The hazardous materials unit of Louisville Fire & Rescue have shut off an ammonia leak Friday afternoon at the RC/7Up Maintenance Shop, 6207 Strawberry Lane, a MetroSafe supervisor said. The hazmat unit was dispatched at 12:49p.m., the supervisor said. No one was injured and employees were moved to another building, said Sal Melendez, spokesman for Louisville Fire & Rescue. The ammonia is used in the large-scale refrigeration process at the bottling plant, he said." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011310140075)

Are these events a big deal? No, not in the overall scheme of things, but they could be later. Even if you simply bottle soft drinks or have vehicles on the roads, you need a crisis plan that takes hazardous chemicals into account. What would you say, and to whom would you say it? There are spouses and children at home who may be waiting to hear from you that everything is going to be all right.

Occupy What??

I admit it. I'm sorely confused. What is Occupy Wall Street, and the many offshoots around the world, trying to accomplish?

I was a schoolboy in the '60s when protests against the Vietnam War defined a generation. So what kind of defining protest is Occupy Nothing?

Who wrote this stuff? I tutor students to take the ACT. I'm embarrassed: "First of all. There are no Official Demands of the Occupy Movement. that being said, multiple factions of the movement have been assembling to discuss and vote on the output and message for the movement. Below is a LIST OF PROPOSED 'DEMANDS FOR CONGRESS' proposed by the website (occupywallstreet.org) which does not entirely represent the Occupy Wall Street General Assembly. Below this list is a list of grievance that citizens have provided nationally and have voted on in solidarity of the movement." (http://coupmedia.org/occupywallstreet/occupy-wall-street-official-demands-2009)

Say that again? What follows is a laughable list of "demands." My favorite is, "ELIMINATE 'PERSONHOOD' LEGAL STATUS FOR CORPORATIONS. The film 'The Corporation' has a great section on how corporations won 'personhood status'. (sic and sick)

I'm going to start my own protest: "Stop people from being ridiculous." What are these people for and against, and who is going to make the silly changes being demanded? The protests of the '60s had a cause and a villain. These protests have neither.

That being said, companies and crisis communications professionals need to be paying close attention. Understand the issues and be ready to respond to your stakeholders. The validity of today's protests can be the smoldering crisis of next month's bottom line.

Hank Williams Jr. Gets Benched

Are you ready for some stupid????

ESPN said, "We have decided to part ways with Hank Williams, Jr. We appreciate his contributions over the past years. The success of Monday Night Football has always been about the games and that will continue." (http://www.espnmediazone3.com/us/2011/10/06/espn-statement-on-hank-williams-jr-10611/)

That termination stems from Williams comparing a "round of golf that President Obama played this summer with House Speaker John Boehner (R-Ohio) to 'Hitler playing golf with (Israeli Prime Minister Benjamin) Netanyahu.' He also referred to Obama and Vice President Biden as 'the enemy.'" (http://www.npr.org/blogs/thetwo-way/2011/10/06/141112853/hank-williams-jr-and-monday-night-football-part-ways)

Williams' song has opened Monday night football for 20 years. My guess is that it made him enough money to -- I don't know -- pay for lunch a time or two. Yet Williams remains unapologetic (and uncaring of rules of capitalization). "By pulling my opening Oct 3rd, You (ESPN) stepped on the Toes of The First Amendment Freedom of Speech, so therefore Me, My Song, and All My Rowdy Friends are OUT OF HERE. It’s been a great run.” (http://www.hankjr.com/home/203-hank-jr-reacts-to-being-pulled-from-espn-from-the-oct-3rd-monday-night-game-opener)

I will defend freedom of speech to the death. That's a cornerstone that has made this country what it is. But I have more sense than to compare the President to Hitler and the Speaker of the House to Netanyahu. And I don't even fall under similar public scrutiny of Williams nor have as much to lose from saying stupid things.

I will miss the football intro song. But every Monday night, I will remember how one more star, who thought he was above the rest of us, created his own crisis. Don't let it happen to your organization. People will agree and disagree with your politics. But you accomplish nothing by being vocal about them. I don't care who your rowdy friends are.

Don't Let Yourself Become Management's Sacrificial Lamb

I'm not sure whether to cheer or boo the Metropolitan Sewer District in Louisville, Kentucky, for hiring a public relations pro. My years in PR have perhaps left me super-sensitive to the way people refer to "PR" in a generic sense. But I can't help thinking this may be a case where someone thinks they can fix a problem with better PR, much the same as some think they can fix a leaking roof with a pail in the living room to catch water.

Okay, here's the story. I blogged about MSD's state audit on July 8. I wrote at the time, "Requests to address the board had to be submitted in writing to (Director Bud) Schardein so-many days before the meeting. He alone decided what was and wasn't appropriate for the board to hear.

"That policy changed recently after the audit was announced. The new 'open' policy states, 'MSD shall place a Sign-In Sheet at the Customer Service Desk located in the lobby.... Anyone wishing to speak to the Board before a Board meeting or a Board committee meeting shall sign in at any time up to ten (10) minutes prior to the beginning of the meeting.... The first five people to sign in shall speak at a meeting. Each speaker will speak in the order in which the speaker signed in. Each speaker shall be provided up to three minutes.'" (http://www.msdlouky.org/pdfs/MSDPublicParticipationProcedures20110613.pdf) (http://crisisexperts.blogspot.com/2011/07/something-smells-bad-at-louisvilles.html)

That's a PR junkyard dog, right? But instead of simply doing "the right thing," "The Metropolitan Sewer District, which has been mired in controversy all year, has hired someone to handle its public relations. Steve Tedder started at MSD Monday, said Brian Bingham, a senior engineer and spokesman at MSD.... Bud Schardein worked as MSD's director of community relations and emergency response prior to being appointed executive director by former Mayor Jerry Abramson in 2003. The agency hasn't had a full-time public relations manager since then." (http://pqasb.pqarchiver.com/courier_journal/access/2481721071.html?FMT=FT&FMTS=ABS:FT&type=current&fmac=4981cbfffbadf110f0fbc19eab3f35e8&date=Oct+10%2C+2011&author=&pub=&desc=MSD+hires+public+relations+man)

Huh? You hire a PR pro to fix "questions of governance, ethics, procurement, employee compensation and spending as part of an audit of management practices at MSD requested earlier this year by Mayor Greg Fischer."

Call me thin-skinned, but this isn't a "public relations" problem. This is a procedural issue. I've known Bud a long time, and he knows better than this. And so should you. Don't be called into the boss's office to fix a crisis that is caused by mismanagement. You can't cure warts by communicating about them.

Hiring a PR pro is fine and probably overdue. It's the timing that looks bad. Tedder is looking like MSD's sacrificial lamb. Don't allow yourself to be penned into the same pasture.

Government Ignored Bugs To Seek Out Terrorist Threats

According to Tracie Cone of the Associated Press this week, "Dozens of foreign insects and plant diseases slipped undetected into the United States in the years after 9/11, when authorities were so focused on preventing another attack that they overlooked a pest explosion that threatened the quality of the nation's food supply....

"'Whether they know it or not, every person in the country is affected by this, whether by the quality or cost of their food, the pesticide residue on food or not being able to enjoy the outdoors because beetles are killing off the trees,' said Mark Hoddle, an entomologist specializing in invasive species at the University of California, Riverside. Homeland Security officials acknowledge making mistakes and say they are now working to step up agricultural inspections at border checkpoints, airports and seaports." (http://www.kentucky.com/2011/10/10/1915105/ap-impact-foreign-insects-diseases.html)

The lesson in crisis communications we can learn here is that we can never let our guard down. Just because we may be facing sexual harassment suits doesn't allow us to ignore the fact that the building is on fire. All threats to our business must be considered equally. In this case, the impact of insect pests isn't as dire as the underwear bomber. But that doesn't mean we have the luxury of ignoring one smoldering crisis so we can focus on another.

All crises count.

Sullivan University Is Attracting the Wrong Attention At the Wrong Time

In late September I wrote here, "If you handle crisis communications for a for-profit college in Kentucky -- or anywhere else for that matter -- be forewarned.... Here in Kentucky, Attorney General Jack Conway has filed the third suit his office has launched against for-profit colleges. Five other unnamed Kentucky schools are still under investigation."

I guess Sullivan University in Louisville didn't get the memo.

"Patricia Sullivan-Schrenk, the ex-wife of Sullivan University Chancellor Alva Ray Sullivan, is suing her ex-husband and the school, claiming the business’ profits are being 'hoarded' rather than paid to her as the owner of just less than half the stock." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011310110012)

Now is not the time to draw attention to for-profits profits.

"Documents filed in the case provide a rare window into the finances of the for-profit corporation, which in addition to the flagship university includes Spencerian College and the old Louisville Technical Institute, now called Sullivan College of Technology and Design....

"An internal university document filed in Jefferson Circuit Court shows Sullivan and Schrenk cashed out more than $76 million from the business between 2000 and 2009. As part of a 1999 agreement related to their divorce, Sullivan owns 50.1 percent of the corporation, while Schrenk owns the other 49.9 percent. Court documents also show the system made a profit of $16 million in 2008, up from $6.6 million in 2000."

There's nothing wrong with making a profit. But the issue with Conway in Kentucky is with colleges making false claims about students' chances for employment after graduation. That may seem like a totally different issue from Sullivan's stockholder trying to get her fair share. But to draw attention to the organization as the attorney general has his antennae up is asking for trouble.

The school already was asking for trouble when, last month, it openly was campaigning against Conway's reelection in November.

When the sharks are circling is not the time to shave your face. Use good sense.

Jobs, Francona, and Steese Are Gone; So Who's Minding the Store?

I have three seemingly unrelated stories to tell. But if you'll stick with me, all have a common theme.

First is the death of Steve Jobs. "With Steve Jobs managing the company and being a 'brand' just as popular as the i gadgets, Apple's earnings hit record-breaking values. Apple's market value went from $5 billion at the end of 2000 to $351 billion in the present, making it the world's most valuable IT company and second most valuable publicly traded U.S. business." (http://newsinabox.net/1825/steve-jobs-died-what-happens-with-apple.html) Apple's stock price fell just $.88 today following Job's death, less than a quarter of a percent.

And then there is the "firing" of Terry Francona. When I was in junior high, Terry's dad, Tito, a former major leaguer, came to my school for an assembly. His picture was the first I ever took as photographer for my school paper. Terry was from New Brighton, Pennsylvania, the town across the river from Beaver Falls, my home town. I watched Terry play high school basketball early in my sportswriting career. Late in his baseball playing career, he played for Louisville. I had a nice conversation with him before a game, about growing up in western Pennsylvania. Jack Fullen was his high school coach. Fullen also was my neighbor and my junior high gym teacher. All this is to say I've been a Terry Francona fan for a long time.

"The firing of Red Sox manager Terry Francona offers a few valuable lessons in crisis communications, especially those relating to the unexpected departure of an executive. For those of you outside of Red Sox Nation, let me offer a little background: the only living manager of Boston’s professional baseball team to win a world series (twice!) is now unemployed after missing the playoffs following a disastrous September collapse. To be technical, Francona wasn’t fired; the team declined to pick up the option on his 2012 contract. While the debate over letting Francona go is an ideal subject for a sports-focused blog, the way the decision was communicated offers two valuable lessons to anyone in crisis communications." (http://blog.investorrelations.com/2011/10/04/the-firing-of-terry-francona-lessons-in-crisis-communications/) Sharon Merrrill's blog on the subject is well worth reading.

Third: Steeses' Ice Cream was a landmark in Grove City, Pennsylvania. My mother babysat for Steeses as a kid. In 1955, they opened a homemade ice cream stand, which later evolved into a full-service restaurant. They remained good family friends for decades. Bob, the founder, died of a brain tumor in the 1990s. His son ran the restaurant until he died of a heart attack. His widow wasn't interested in continuing, and so this icon of homemade goodness closed down several years ago, and their recipe for the best ice cream in the world fell to a grandson, who still makes a little of the stuff in his basement.

Now, what do these stories have in common? Succession. Steve Jobs was ill for a long time, but Apple was ready. It knew it needed a Jobs replacement for when he was unable to manage the company.

Baseball managers come and go like the flu. Without a replacement for Francona already standing on deck, it remains to be seen if anyone else can steer that ship to a World Series title. After all, it was Francona who broke the curse of the Sox trading the Bambino to the Yankees.

My friends, the Steeses, had no succession plan. So when the patriarch and his son both died, so too did their business. Some 50 years worth of sweat equity was gone suddenly because there was no succession plan.

Whatever your business, you need to make sure there's a successor waiting in the wings. Whether your leader dies, retires, or gets fired, you need to ensure someone is there to carry on.

EPA Continues Assault on Mountaintop Coal Mining; Industry Message Is Uncompelling

I wrote on Wednesday below about the coal industry crisis it faces from EPA and environmentalists. This is an addendum: The battle continues.

"The U.S. Environmental Protection Agency has objected to 19 mountaintop mining permits in Kentucky only days after Gov. Steve Beshear urged President Barack Obama to ease up on the state's coal industry." (http://www.businessweek.com/ap/financialnews/D9Q32A300.htm)

The industry's message is one of saving jobs. Despite the rate of unemployment, saving jobs of faceless coal miners pales next to photos of leveled mountains in Appalachia (http://www.google.com/search?q=mountaintop+mining+photos&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GGLL_enUS323&prmd=imvns&tbm=isch&tbo=u&source=univ&sa=X&ei=RmKITuzwGsu3tweKoJ04&ved=0CE8QsAQ&biw=1024&bih=567). People can find other jobs, the wisdom goes. We can't find any more mountaintops or clean water.

"'We have significant concerns that these permits will allow discharges that may cause significant water quality impacts,' James Giattina, director of the EPA's water protection division said in a letter."

The EPA's objections pertained only to mountaintop mines. It didn't object to 36 other permits for underground mines and coal preparation plants. But as I wrote Wednesday, coal companies want to use mountaintop mining for higher profits than they can earn from underground extraction, especially when it comes to thin coal seams.

"Kentucky Coal Association President Bill Bissett was critical of the EPA's decision. 'It is important to remember that these 19 objections by the EPA deny Kentuckians good paying jobs and negatively affects our ability to provide affordable electricity to our commonwealth and the nation,' Bissett said. 'While President Obama and his political appointees continue to tout the American Jobs Act, Kentuckians in the coalfields remain very concerned about their ability to have a job and provide for their families.'"

Appalachian coal needs to tout more than well-paying jobs. It needs to find ways to protect the environment and then communicate that message. It also needs to reach ambivalents (see coal post below) with the message that higher coal mining costs will lead to higher energy costs for consumers. Playing the jobs card won't win this hand.