Audit Led to Crisis Which Led to Loss of Influence and Reputation

I wrote several times a year ago about a crisis at Passport Health Plan. The fallout of that misguided use of tax dollars continues to be an expensive crisis.

Passport provides Medicaid services for more than 170,000 Kentucky residents. In a blog post on March 13, I wrote,"A state audit said the executive vice president and associate vice president received large salaries, ate in expensive restaurants, and traveled extensively. In addition, the report said Passport spent money inappropriately on lobbying and public relations and donated hundreds of thousands to causes that had nothing to do with health care. The two people alluded to above were fired, the governor ordered an investigation, and elected officials continue to look over the organization's shoulder." (http://www.blogger.com/blogger.g?blogID=1573781346072455735#editor/target=post;postID=6921230592244927587)

The state is still looking and now is seeking other bidders to run the program and end Passport's state charter to provide services alone. "Kentucky began the process this week of contracting with multiple companies to provide Medicaid services in the region that has been served exclusively by Passport Health Plan for the past 15 years. The state began advertising Tuesday for proposals from insurance companies to provide managed-care services for Medicaid in Jefferson and 15 surrounding counties." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2012306200107&nclick_check=1)

A spokeswoman for the Kentucky Cabinet for Health and Family Services said the state intends to select at least two companies to provide Medicaid services in the region beginning January 1. Federal officials decided last year that Medicaid beneficiaries in the region must be given a choice of managed-care organizations. A waiver that has allowed Passport to be the exclusive Medicaid provider in the region was not extended past this year.

A crisis poorly managed -- and that includes state audits of tax-spending organizations -- can lead to deep-seated changes and loss of business and influence. The same can happen in the private sector when stakeholders such as customers and shareholders decide to take their money elsewhere. An effective crisis communications plan can help you prepare so that you can recover your business.

Day Care Closes After Fatal Accident Because It Was Badly Unprepared

No more heavenly angels attend Heavenly Angels Daycare in Louisville, Kentucky. The doors of all three facilities are locked and abandoned this week after an ignored smoldering crisis became a sudden crisis. The owner was unprepared to deal with the crisis and closed her daycare the day after a van crash killed an adult monitor and seriously injured 14 children and the driver.

The accident was tragic enough. But it's all the smoldering stuff that should have been stopped long ago.

A witness told The Courier-Journal he never heard the sound of brakes or screeching tires — just breaking glass and a thundering crunch. “'It wasn't like (the van) was under any intelligent control,' he said....

"Through the van’s side window, he could see injured children tossed about inside. Four larger children were piled onto a younger girl who was slipping in and out of consciousness. When he reached around them to pull them out, (James) Jaggers said he realized they were all buckled into the same seatbelt." (http://www.courier-journal.com/article/20120620/NEWS01/306200141?nclick_check=1&)

Heavenly Angels continued to transport children in vans despite its drivers being repeatedly cited for operating without a license, carrying too many children, and speeding

The Kentucky Cabinet for Health and Human Services inspectors routinely found issues that needed fixed, according to several statements of deficiencies and plans of corrections from the cabinet.

• In July 2011, one location did not have required employee records on the premises.
• In February, a cabinet investigation showed that a parent who went to that same center with a complaint asked to speak to a person in charge, but employees said no supervisor was present. Regulations require day cares to have a designated person in charge.
• At another location, investigators found that a supervisor couldn’t provide proof that an employee had a tuberculosis test as required.
• The Hill Street day care’s license to transport students was suspended in August 2010 and was closed last spring, although that van was continued to be used. It's the one that crashed last week.
• Before the Hill Street location closed, it had no staff member trained in CPR in 2010, an issue that the staff reported had been corrected.
• Two vehicles used to transport children were not up-to-date on required inspections, and officials could not provide required daily inspections of lights, signals, mirrors, gauges, and wiper blades, which the staff reported corrected.

"State inspectors typically levy sanctions against day cares that violate regulations — such as suspending a transportation license — but they only shut them down when there’s been an immediate danger to a child, said Gwenda Bond, a cabinet spokeswoman. Terry Brooks, executive director for Kentucky Youth Advocates, said state regulations are too cumbersome and the state can’t act quickly enough to close operators that don’t comply with the rules."

Guess what? "Heavenly Angels’ owner, Lavonia Lewars, has refused several requests for an interview."

The business is gone. Leased space sits vacant. Parents have to scramble to make other arrangements. The cabinet is -- or should be -- under scrutiny for not protecting children. All because a smoldering crisis turned lethal and left helpless children with physical and emotional scars they will carry through life.

Lewars could have prevented all this if she had followed the law instead of taking shortcuts. The state could have prevented this by enforcing regulations. Parents could have prevented this if they had been more dubious of how Heavenly Angels was taking care of their babies and had spoken up.

That's the definition of smoldering crises. Someone knows something is wrong but doesn't take aggressive action to change it. Day cares are in an excellent position to develop crisis communications plans that can save their businesses if and when something goes seriously wrong. There's no reason why five or 10 or 20 day cares in the same area shouldn't band together and bring in experts to write a crisis communications plan that would apply to all of them. It would cost each very little.

That's a better solution than closing the doors when a crisis hits.

Mann Alive! New York School Ignores Crisis

Horace Mann School has a crisis, courtesy of a New York Times article by alum Amos Kamil. The Bronx school, which charges up to $40,000 in tuition, is alleged to have former teachers who sexually abused students there.

"From the elevated platform of the No. 1 train’s last stop at 242nd Street, you can just about see the lush 18-acre campus of the Horace Mann School. The walk from the station is short, but it traverses worlds. Leaving the cluttered din of Broadway, you enter the leafy splendor of Fieldston, an enclave of mansions and flowering trees that feels more like a wealthy Westchester suburb than the Bronx. Head up the steep hill, turn left, then walk a bit farther, past the headmaster’s house. From the stone wall that runs along Tibbett Avenue, you can see practically the whole school...." (http://www.nytimes.com/2012/06/10/magazine/the-horace-mann-schools-secret-history-of-sexual-abuse.html)

"I heard about some teachers who supposedly had a habit of groping female students and others who had their eyes on the boys. I heard that Mark Wright, an assistant football coach, had recently left the school under mysterious circumstances. I was warned to avoid Stan Kops, the burly, bearded history teacher known widely as “the Bear,” who had some unusual pedagogical methods. Even Clark came in for some snickering: he had no family of his own, and he had a noticeably closer-than-average relationship to the Bear, another confirmed bachelor." (http://www.nytimes.com/2012/06/10/magazine/the-horace-mann-schools-secret-history-of-sexual-abuse.html?pagewanted=3&_r=1)

Nothing on the official website acknowledges the allegations. (http://www.horacemann.org/page.cfm?p=319) Further, the school's apparent crisis communications plan consisted of -- nothing. "In researching the story, author and HMS graduate Amos Kamil contacted Tom Kelly, current headmaster, many times before receiving a reply."

"(The statement) noted that current leadership is not in the position to comment of events involving former and, in some cases now deceased, faculty members.' HMS released a letter to alumni yesterday in which Kelly promised to 'develop and implement a thoughtful process that places the first priority on those alumni most in need.' The trustees will soon meet to discuss the abuse matter." (http://www.odwyerpr.com/blog/index.php?/archives/4633-Kekst-Reps-Sex-Abuse-Scandal-Rocked-Prep-School.html)


Horace Mann School has nothing on its website about the allegations. The New York  Times, however, had this to say. "In the days since they were first described in an article in The New York Times Magazine, the accounts of abuse by several now-dead Horace Mann teachers have put a sharp new focus on state laws that make New York among the most restrictive in limiting legal recourse in child sexual abuse cases. For years, efforts in Albany to liberalize the laws have failed, often encountering fierce resistance from the Roman Catholic Church and other institutions that feared financially devastating lawsuits." (http://www.nytimes.com/schoolbook/2012/06/13/horace-mann-case-incites-new-look-at-state-sex-abuse-laws/)

Former Idaho Real Estate Leader Sentenced to Prison

"Mismanagement" in 1990 accounted for nearly a quarter of all crises, based on the Annual Crisis Report assembled by the Institute for Crisis Management (http://www.crisisexperts.com/). That category, one of 16, dropped to 11% in 2011. "White collar crime" has been a rather consistent 19% of all crises since 1990.

I'm citing these statistics because of a commercial real estate tycoon in Nampa, Idaho, who is doing business these days from the state pen. Actually, he closed his Gunstream Commercial Real Estate business in 2009 after embezzlement allegations were filed. Jerry Gunstream has been in the Canyon County jail since Jan. 27, when allegations resulted in criminal charges. He pleaded guilty to one of two felony charges.

The two felonies — for siphoning rent money from Holly Plaza in Nampa and Cherry Plaza in Meridian — represent around $400,000. Gunstream has committed to paying restitution, but he also declared bankruptcy. To make matters worse, a judge ruled in December that Gunstream’s $125,000 debt to Airport Partners would not be discharged as part of the Chapter 7 proceedings, and the company’s lawsuit against Gunstream is pending.

“'I inappropriately and without permission transferred money from the Holly Plaza Shopping Center property management account and transferred those funds into other property management accounts or into an account of Gunstream Commercial Real Estate,' he told 3rd District Judge Thomas Ryan." (http://www.idahostatesman.com/2012/04/04/2063609/real-estate-agent-gunstream-pleads.html)


"Before his steep, quick descent in 2009, Gunstream was a local business leader, exuding confidence and success. A former Nampa city finance director, he married the Chamber of Commerce CEO (they divorced shortly after the theft allegations arose) and was a frequent fixture in local business news. His website described Gunstream Commercial Real Estate as 'one of the most dominant commercial real estate brokerage and management organizations throughout … the entire Pacific Northwest.'

"But in reality, his business was foundering in a stalled economy, and he was stealing money from clients to keep up appearances and keep his business afloat. Some clients eventually went to the police, and Gunstream’s career was over." (http://www.idahostatesman.com/2012/06/11/2151235/gunstream-sentenced-to-at-least.html)

According to ICM, mismanagement as a percentage of all crises, has fallen. That's little comfort to those who worked for Gunstream Commercial Real Estate and other companies that have been mismanaged into the ground.

Read more here: http://www.idahostatesman.com/2012/06/11/2151235/gunstream-sentenced-to-at-least.html#storylink=cpy

Read more here: http://www.idahostatesman.com/2012/04/04/2063609/real-estate-agent-gunstream-pleads.html#storylink=cpy

Acts of God Are Unpredictable Crises But Must Be Planned

As Colorado and New Mexico burn, a different kind of crisis has struck the southeast. Twenty inches of rain in places have flooded homes, apartments, and businesses. CEOs and nonprofit leaders who think their organizations are immune from crises, I guess, must believe acts of God will go around them, not through them.

The jail in Pensacola suffered a crisis in the rain. "More than 600 inmates at the Escambia County Jail in Florida were without power and air conditioning after the rains left more than 5 feet of water in the bottom floor, which also houses the laundry and kitchen facilities. Extra deputies were brought in to beef up security, and generators powered lights outside the facility to shine into the jail. Officials worked Monday to pump out the excess water and restore power.

"'The whole electrical system is underwater. It's going to be extensive damage,' said Sgt. Mike Ward. The parking lot of the sheriff's office was completely flooded, leaving some patrol cars and other fleet vehicles with water up to the hood. Some homes and businesses also had several feet of water inside, Ward said." (http://www.chron.com/news/article/Heavy-rains-flood-Fla-homes-man-drowns-in-Gulf-3624408.php)

A 23-year-old Mississippi man drowned off Pensacola Beach and more than a dozen other swimmers were ordered out of rough surf. Storms forced the evacuation of a 200-unit apartment complex in Pensacola.  A tornado connected with the storm system uprooted trees and destroyed chicken houses Sunday in southeastern Alabama, where an emergency official said a few homes were damaged.

"It was difficult to assess the damage Sunday because many roads in Escambia County were still flooded. Emergency officials planned a more thorough inspection Monday after the waters recede."

I'm left wondering if the Escambia County Jail has a crisis operations plan or crisis communications plan. How about the dozens of businesses flooded out? Do apartments have a plan for reimbursing residents for flood losses, or is their strategy to hide out until the law suits fly.

Smoldering crises can largely be prevented. But sudden crises -- floods, fires, arson, shootings, tornadoes, hurricanes, etc. -- can strike with little warning. Your organization has to be ready for sudden crises in your crisis planning.

Sheriff Communicates as Colorado Burns

A wildfire is a crisis for all in its path, and even for all who might later be in its path. Many just west of Fort Collins, Colorado, are living the nightmare.

A fire of unknown origins is spreading quickly because of dry conditions and wind gusting to 30 mph. It has consumed 8,000 acres and this morning is said to be 0% contained. Already this morning, 800 more emergency notifications have been issued, bringing the total to 1,600. Residents are being quickly evacuated. Those leaving their homes may have to wait days before they know if they have a house to return to.

So far, I see no evidence of businesses being destroyed, but a long-time dude ranch is threatened. This fire has a long way to go before it is brought under control, so it seems likely some businesses will be lost, and jobs along with them.

Information is hard to come by for residents, with one exception that I'll describe in a moment. "Resident Jim Key said he took his motorcycle out Saturday afternoon to look at the fire that was sending a plume of smoke over his Stratton Park subdivision. When he returned, he found sheriff's deputies evacuating his neighborhood....

"'I think it's precautionary more than anything,' he said hopefully.... Key and his wife said they planned to stay with friends Saturday night, but they checked in at the Red Cross evacuation shelter in LaPorte on Saturday hoping to learn more about the fire. As of late Saturday afternoon, no update had arrived. Key said he wished he had more information but understood that emergency officials were busy. 'A lot of things would have to line up on the bad side' for him to lose his house, Key said. "'But then I don't know all the information.'" (http://www.denverpost.com/news/ci_20823380/dry-heat-fuels-wildfires-growth-west-fort-collins)

Larimer County Sheriff Justin Smith is filling in that information gap. He has held at least one news briefing, which took place Saturday. PIO John Schulz has been quoted in the media and is providing updates through the Sheriff Department's website. His releases also appear on the Larimer County site (http://www.co.larimer.co.us/emergency/emergency_detail.cfm?nam_id=85). In an environment where fears and emotions are running high and specific information is hard to come by, Smith and Schulz, from my safe judgmental perch 1,500 miles away, look like they're doing all they can to keep residents up to date.

At 9 a.m. Denver time, which was less than an hour ago as I write this, Schulz posted his latest news release. (http://www.co.larimer.co.us/news/newsDetail.cfm?id=1522)

"...We do know that the fire did grow significantly overnight but we're waiting for air flights this morning to get an updated number.... Citizen briefings have been scheduled for 9:45 a.m. at Cache La Poudre Middle School in Laporte, and at 10:45 a.m. at the McKee building at the Ranch. Larimer County Sheriff Justin Smith and Poudre Fire Authority Chief Tom DeMint will be speaking."

Schulz goes on to give a detailed list of what areas have received evacuation notices. Then this:

"Structures damaged:

"18 structures (a mix of homes and outbuildings) have been confirmed damaged.

"Injuries:

"One firefighter was taken non-emergent by ambulance out of the area for heat exhaustion yesterday." (I'll excuse the use of "non-emergent" given the pressure of the situation.)

The release updates the roads closed and lists resources at the scene:

"250 ground and engine crews are fighting the fire. There are 15 engines and 3 water tenders on scene," and then he lists the helicopters, air attack control plane, a lead plane, and two heavy air tankers. The release provides an all-important weather forecast. ("Temperatures are expected to be lower today but probably (won't) impact the fire but will affect firefighter comfort. Humidity will be in the single digits. Winds are expected to be 15 to 20 mph with gusts up to 40 mph. The wind is driving the fire and at time(s) is capable of moving at 1.5 miles per hour.")

There's an emergency information number, the county web address, the sheriff's Twitter address, and a way to sign up for automatic emergency notifications via cell phone or email.

This 9 a.m. update, by the way, follows a 5:55 a.m. update, a 5:36 a.m. update, an 11:31 p.m. update.... You get the picture. Communicating often during a crisis like this shows residents they can depend on the Sheriff's office to share with them what information they have. And it should give them confidence that they'll be told the status of their homes just as soon as that information becomes known. A shortage of fire news would lead to more anxiety and frustration, turning to anger.

Larimer County has had wildfires before. I'm guessing local officials have learned from the past, and I'm hoping they have a written crisis communications plan that is guiding them this time.

Beauty Queen Cries 'Off With Their Heads!"

Sheena Monnin, Miss Pennsylvania USA, was an also-ran in the Miss USA pageant last week. She failed to make the top 16 cut. But she's getting much more attention than the winner, what's-her-name. Monnin resigned from her post, calling the Miss Universe pageant "fraudulent, lacking in morals, inconsistent and in many ways trashy." She wrote on Facebook that a fellow contestant (Miss Florida) saw a list of the top five Miss USA finalists -- before the pageant took place. (http://www.eonline.com/news/miss_pennsylvania_usa_resigns_inclusion/321412)

Miss Universe, Miss USA, and Miss Teen USA all are a joint venture between NBC Universal and Donald Trump, who is certainly no stranger to crises.

Miss Universe Organization responded by filing an arbitration action against Monnin, and Trump's lawyers are reportedly drafting a defamation lawsuit against her. MUO also released a statement, which unfortunately doesn't appear on its website (http://www.missuniverse.com/news/index). That statement to E! read, "In an email to state pageant organizers, she cited the Miss Universe Organization's policy regarding transgendered contestants, implemented two months ago, as the reason for her resignation. Today she has changed her story by publicly making false accusations claiming that the pageant was fixed, however the contestant she privately sourced (sic) as her reference has vehemently refuted her most recent claim. We are disappointed that she would attempt to steal the spotlight from Olivia Culpo of Rhode Island on her well-deserved Miss USA win."

Monnin tells a different story on her Facebook page. "I agree that it is my moral obligation to state what I witnessed and what I know to be true. I will relay to you the reasoning behind my resignation. I witnessed another contestant who said she saw the list of the Top 5 BEFORE THE SHOW EVER STARTED proceed to call out in order who the Top 5 were before they were announced on stage. Apparently the morning of June 3rd she saw a folder lying open to a page that said 'FINAL SHOW Telecast, June 3, 2012' and she saw the places for Top 5 already filled in....  Top 16 were called and we were standing backstage she hesitantly said to me and another contestant that she knew who the Top 5 were. I said 'who do you think they will be?' She said that she didn't 'think' she 'knew' because she saw the list that morning.... After it was indeed the Top 5 I knew the show must be rigged; I decided at that moment to distance myself from an organization who did not allow fair play and whose morals did not match my own." (https://www.facebook.com/sheena.monnin/posts/4102910811791)

Miss Universe Organization claims that only one of the five names supposed to be on that pre-pageant list was called among the finals. Miss Florida, who supposedly saw the list, now says she was joking. "Monnin says, 'I have many years of psychological training. I know when someone is scared and serious. Her body language was serious.'" (http://www.tmz.com/2012/06/08/miss-pennsylvania-donald-trump-miss-universe-lawsuit-nbc-today/)

All those years of psychological training, by the way, consist of a Master's from the University of Phoenix.

Organizations need to proceed with caution before they take legal steps against an individual. If the actions go forward, Monnin's accusation will receive more publicity. The Miss Universe people and Trump should issue a denial and post it on the website. They should respond to questions from media, staff, and contestants. They need to authorize judges to speak about the integrity of the pageant -- if integrity indeed exists.

Then MUO needs to get out of the headlines and stay out. The smoldering crisis will continue as long as Miss Universe fans the flames. If Monnin persists, that changes the strategy. But most people will soon tire of the story if there's no new information. Miss Universe Organization needs to be careful not to provide any new information.

Starbucks' Goof in Ireland Suggests It Needs to Wake Up and Smell the Coffee

Communicators have to know where the skeletons are hidden before delivering messages to their stakeholders. But how can they miss history? Nevertheless, they do.

"Give Ireland back to the Irish

Don't make them have to take it away

Give Ireland back to the Irish

Make Ireland Irish today

"Great Britain you are tremendous

And nobody knows like me

But really what are you doin'

In the land across the sea

"Tell me how would you like it

If on your way to work
You were stopped by Irish soldiers
Would you lie down do nothing
Would you give in, or go berserk"
     (Paul McCartney)

I was too young or preoccupied to remember much about the fighting in Northern Ireland in the 1960s, '70s, and '80s. But I do remember the ongoing violence. The struggle was over whether Northern Ireland would remain part of the United Kingdom. "More than 3,400 people were killed in more than 30 years of conflict. The Good Friday Agreement, signed in 1998, tried to find a way to bring peace to the  region."  (http://www.ehow.com/facts_7380365_ireland_britain-conflict.html)

The violence didn't exactly start in the '60s. "Conflict has existed, on different scales and with differing intensities, between Ireland and Britain for more than eight centuries.... In the 1600s thousands of English and Scottish settlers were brought to Ireland by British landowners. They displaced Irish Catholics which led to violent conflict."

This is hardly a skeleton in a closet; it's world history. Then how do we explain the tweet sent by Starbucks to its Irish followers?

"The fractious history between England and Ireland should be well known by anyone in either of those countries ... but almost certainly known by an international corporation that’s hoping to use social media to ‘engage’ their consumers. To ask their Irish followers why they’re proud to be British either betrays the fact that Starbucks isn’t running a separate Twitter campaign with a localised approach, or that they’re ignorant of the country in which they’re marketing. Neither (is) good." (http://www.simplyzesty.com/social-media/starbucks-ireland-caught-out-in-twitter-scandal/)

Two days later the furor has died down but hasn't gone away. Seattle-based Starbucks offered a weak apology via Twitter, an appropriate medium because that's where the gaffe took place. "We erroneously posted to our Irish Twitter page meaning to the to the UK only. Customers in Ireland: We're sorry."

(http://global.christianpost.com/news/starbucks-tweet-sparks-outrage-with-irish-customers-76255/)

All this is to say that in international communications (And let's face it: all of it is international communications.) we need to be aware of customs and history. It's impossible not to offend someone with just about anything we write and say. But certainly posting a British pride message on an Irish social site is -- well, it's just plain unAmerican.

Coal Industry Needs Stakeholder Assessment, Not Government Bashing

The coal industry in Kentucky feels like the federal EPA is picking on them. It's probably true, because that's what EPA does. But I shed no tears for those in Kentucky coal who fail to take care of their responsibilities to their employees and the government but expect the government to take care of them. The actions of some are a crisis for all.

Kentucky’s Office of Mine Safety and Licensing is investigating whether to revoke coal-mining licenses at a Harlan County operation where a recent federal safety blitz uncovered numerous dangerous conditions. "We will not tolerate these types of mining practices and unsafe behaviors on our coal mines,” according to new Executive Director Freddie Lewis.

Attorney Tony Oppegard,  a safety advocate who has represented miners and their families in numerous cases, urged Lewis to file charges that would lead to the revocation of licenses at K and D Mining Inc.’s Mine No. 17 in Highsplint, Ky.

When a manager gets in trouble at one mine, he can go to another mine and another company and continue to do the same things. "The K and D mine is operated by Ralph Napier, John D. North and Jack H. Ealy. Napier and North formerly operated Kentucky Darby Mine No. 1 in Harlan County, where a 2006 blast killed five miners. Company officials did not respond to a request for comment."

Neither did they respond to a $700,000 fine that remains unpaid.

In swooped the feds at K and D's Mine No. 17. "A safety blitz last month by inspectors with the federal Mine Safety and Health Administration found so many safety hazards at the mine that it was closed for nine days, The Courier-Journal reported Friday. The inspectors arrived at the mine without warning, seizing office telephones so those in the mine could not be warned." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2012306010100)

Inspectors have to inspect raid-style because of Massey Energy, which operated Upper Big Branch mine, where an explosion in 2010 killed 29 workers. I wrote here on February 23, that so far, two officials of the mine have been prosecuted for "an elaborate scheme that included code words to alert miners underground when inspectors were on the property, the deliberate alteration of approved ventilation plans and the deliberate disabling of a methane gas monitor on the continuous mining machine." They also reportedly kept two sets of safety records.

"The May 16 blitz of the Highsplint mine found little or no ventilation where miners were working, thick accumulations of coal dust that can cause black lung and explosions, a broken methane warning light, conveyor belts covered in combustible coal dust as deep as 9 inches and rubbing against metal, and a mining machine with 22 electrical hazards and clogged water sprays. 'This is really serious stuff,' MSHA chief Joseph Main said in an interview this week. 'These are the kind of conditions that lead to mine explosions.'"

Good luck collecting a fine from those operators.

The actions of a few in Kentucky perhaps are adding to increased scrutiny by MSHA and EPA. Instead of  policing itself, the industry boo-hoos about EPA.

“'EPA is limiting America’s energy options and adding ‘pain at the plug’ with their regulatory over-reach,' said Evan Tracey, senior vice president of communications for the American Coalition for Clean Coal Electricity.... 'Yet the EPA has spent the past three years enacting heavy-handed regulations that are attacking the coal industry, destroying jobs and increasing the cost of electricity for millions of American families and businesses.'" (http://www.americaspower.org/new-accce-ad-campaign-now-not-time-add-pain-plug-pain-pump)

 In a speech before a coal industry group in Kentucky recently, the U.S. Senate's top Republican, Mitch McConnell of Kentucky, accused EPA of "declaring war on the coal industry" and blamed the Obama administration and Democrats for pushing regulations that he claimed kill jobs and increase energy costs. "'Of course, the EPA's real goal here is not to see the Kentucky coal industry comply with its boatload of regulations and red tape.... It is to see the Kentucky coal industry driven out of business altogether.'" (http://www.huffingtonpost.com/2011/06/02/mcconnell-epa-coal_n_870332.html) Come on, Senator, why would they want to do that?

If a crisis communicator were to work with the Kentucky Coal Association or the American Coalition for Clean Coal Electricity, or any other lobbying or trade group, the consultant should first assess the various audiences. Then they should decide if the audiences are advocates, ambivalents, or adversaries. Don't waste time on the advocates, as politicians like to do. Don't worry about adversaries because you probably won't change the minds of very many.

Focus instead on the ambivalents, who usually make up the majority. Decide how to reach the stakeholders that comprise the ambivalent group and develop appropriate messages that will make them advocates or, at worst, keep them ambivalent.

The American Coalition for Clean Coal Electricity may be headed the right direction with its newly launched TV ads. I saw one today on CNN. The trick is to make the message credible and frequent and to encourage some sort of action by the viewers.

And backstage, coal organizations and politicians need to weed out the bad actors and police the behavior of all.

Eat All the Donuts You Want; Just Don't Wash Them Down With Soda

I used to provide a monthly issues report to the management team at the chemical plant where I worked. I let them know of potential threats and opportunities to the industry or to the end users of our products. To prevent crises, it's important to know what's happening to others that can affect what might happen to you.

That's never been more true than the proposed ban on over-16-ounce sugared drinks in New York City. Mayor Michael Bloomberg’s proposal requires the approval of the Board of Health, which is likely because the members are all appointed by the mayor. What's happening there might affect soft drink business in other cities and those who sell other sweets in New York and everywhere.

"The proposed ban would affect virtually the entire menu of popular sugary drinks found in delis, fast-food franchises and even sports arenas, from energy drinks to pre-sweetened iced teas. The sale of any cup or bottle of sweetened drink larger than 16 fluid ounces — about the size of a medium coffee, and smaller than a common soda bottle — would be prohibited under the first-in-the-nation plan, which could take effect as soon as next March." ( http://www.nytimes.com/2012/05/31/nyregion/bloomberg-plans-a-ban-on-large-sugared-drinks.html)

Those selling large drinks everywhere in the U.S. need to take note. The concern should be that the ban only would affect "delis, fast-food franchises and even sports arenas, from energy drinks to pre-sweetened iced teas." These kinds of prohibitions can grow. And I use the word prohibition on purpose.

The ban wouldn't apply to "fruit juices, dairy-based drinks like milkshakes, or alcoholic beverages; it would not extend to beverages sold in grocery stores or convenience stores." It also wouldn't prevent anyone from buying two 16-ounce drinks. Most fast-food places I frequent allow you to refill your own drink for free. You can even carry a full cup out with you.

Thus, the proposal is nothing more than symbolic, like forcing kids to get carrots in their Happy Meals before they go home to eat cookies and candy. Nevertheless, those in food production and distribution businesses should take note. Tomorrow it could be Ho-Ho's. The next day it could be candy bars. The next day it could be 8-ounce drinks. You get the idea. Supermarkets and vending machines (exempt from the ban) also should beware.

But if you make or sell donuts, fagetabout it. The following exchange took place on NBC's Today show between Matt Lauer and Bloomberg. It should teach us to watch for symbolic acts, which banning large drinks really is.

“'Your administration has come out in support of National Donut Day,' Lauer said.... 'It sounds ridiculous.'

“'It doesn’t sound ridiculous, one donut is not going to hurt you,' Bloomberg, a political independent, defended. 'In moderation, most things are OK.... Number two, think about what National Donut Day is. National Donut Day celebrates a lot of young ladies during World War I called ‘donut lassies’ who went and gave donuts to our soldiers while they were fighting to protect democracy. I’ll stand behind it.'

“'Your honor' Lauer cut in. 'That was before obesity was a national epidemic in this country….if moderation works for donuts, why not with soft drinks?'

“'That is exactly what we’re trying to do with soft drinks.... Instead of the big 32-ounce, get two 16 ounces if you want. But history shows, all the tests show what you’ll do is probably drink one.'

“'Happy National Donut Day,' Lauer said to close the segment. (http://www.theblaze.com/stories/matt-lauer-hammers-mayor-bloomberg-over-banning-large-sodas-while-supporting-national-donut-day/)

A Different California's University in Crisis Over President

I haven't blogged for a while because I've been traveling and out of touch. During my odyssey, I learned of turmoil at California University of Pennsylvania. I won't know if this made national news until I catch up with my newspaper reading. The story is worth examining.

Robert Irey, chairman of the Board of Trustees, announced the dismissal of long-time president Angelo Armenti on the University's website May 17. No reason was given, but the real doer of the deed was revealed:

"The Board of Governors of the Pennsylvania State System of Higher Education has chosen to take a new direction regarding the leadership of California University. At the close of business yesterday, Dr. Angelo Armenti Jr.’s tenure as president ended, and our succession plan has been implemented. As chairman of the California University Council of Trustees, I join my fellow council members in assuming responsibility for the continued success of our students, our mission and our campus....

"My fellow council members and I commend Dr. Armenti for his leadership and long service to California University. Dr. Armenti’s dedication to our students, and to the mission of this great University, has been unparalleled." (http://www.calu.edu/news/press-releases/2012/05/message-from-the-chairman,-cal-u-council-of-trustees-.htm)

The announcement goes on to commend Armenti for his 20 years of leadership with a long list of accomplishments and enhancements to the university. "Most dramatically, Dr. Armenti transformed our campus. His master plan guided Cal U’s growth into a world-class institution that will stand as a lasting legacy to his leadership and vision."

Of course you take such praise as seriously as you take a eulogy. Nevertheless, the man lasted 20 years despite, "During Armenti's tenure, faculty at the school twice took a vote of no-confidence. In 2009, a professor accused him in a lawsuit of denying her a promotion because of her gender and for pulling back her hand when he allegedly caressed it." (http://www.pennlive.com/midstate/index.ssf/2012/05/california_university_of_penns_1.html))

Leaders are certain to have their hiccups during a 20-year career. The reason for his dismissal was assumed to be because, "The university and its leader were the subject of an investigative audit into spending practices. Results of that audit are expected to be made public later today."

Indeed, "The day after his dismissal on May 16, the state released a report it described as an audit that raised concerns about cost overruns on the new $59 million convocation center and the financial relationship between the university and two nonprofits, the Student Association Inc. and the Foundation for California University of Pennsylvania."

Armenti is fighting his firing -- or at least his loss of benefits and termination of the last two years of his contract.

"'"I tried to cast doubt on the audit process, which called for no rebuttal. The auditing process is seriously flawed,' Armenti said. 'Even if it is not an audit and goes by some other name, I believe in America, it is still understood that the accused is innocent until proven guilty. The way to establish guilt or innocence is to give the accused an opportunity to speak, which was not an opportunity I've been given....'

"Armenti was fired after a five-minute meeting with state system officials in Harrisburg." (http://www.wpxi.com/news/news/local/fired-california-university-president-audit-seriou/nPG97/)

Armenti said his quarrel wasn't with Cal. "'My concern is with the state system, and I believe this has become a state system without a soul.'"

I fondly remember the days when I was naive. Now I'm cynical. I look toward John Edwards, George Zimmerman and his wife, Anthony Weiner, Curt Schilling, Bill Clinton, and many others for making me scoff routinely. The three steps that we see so often when one gets one's hand caught in the cookie jar -- or someone else's cookie jar -- are: 1) Denial; 2) Silence/no comment; 3) Admission/conviction. Once in a while, step 3 is acquittal. (Edwards wasn't convicted, but he will probably serve a life sentence in the court of public opinion.)

From the time we're 4, our first instinct is to lie about who broke the lamp, or whatever. By the time we get older, we should have learned better, that "I didn't" usually is a poor response if indeed you really did.

I  hope Armenti will be exonerated. I don't know him, but I want to see someone blamed for something who can tell the truth and right a wrong. Besides, the Board of Governors of the Pennsylvania State System of Higher Education appears to have overstepped its bounds to interfere with the Cal board of trustees. If someone in the know knows better, please set me straight.