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The Ogilvy Public Relations Approach to:

Crisis & Issues Management
This is a very brief overview of how we approach crises and issues
preparedness; on and offline. Please take a look and let us know what
you think. If you’d like to have a chat about any subject or issue raised
in this presentation, why not drop us a line on;

+44 207 309 1105
www.ogilvy.co.uk/ogilvypr
Twitter: @ogilvyprlondon
Ogilvy PR’s Approach to Crisis Management
Ogilvy PR believes that crisis management is not a formulaic process. Every crisis situation is
unique and must be managed accordingly. Any set of rules or tools tailored too narrowly to
the needs of a hypothetical crisis scenario would be too confining to be of practical value
when a genuine crisis develops.

There are certain core principles beneath successful crisis management, however. Developing
appropriate tactics on the basis of these principles enables an organisation’s leadership to
remain focused and effective as crises unfold, which they usually do with blistering speed.

Once your management is grounded in the core principles and methodologies, Ogilvy PR can
respond effectively to a wide range of distinct crises. Anticipating the types of crises that a
company is likely to encounter can help develop useful frameworks. Further, the skills needed
to implement a crisis response can be amplified and honed through simulations that put
management through the paces of a realistic crisis situation.
Issues & Crisis Management – Our Philosophy
                 • Approximately 75% of what’s needed to handle a
                   crisis effectively can be developed in advance
                 • Most crises can be averted
                    – Communications teams must be able to
                      recognize the issue, act upon it and manage it
                      before it becomes a crisis
                    – Issues management typically involves a
                      campaign to change stakeholder opinions
                 • Some crises occur without warning
                    – Communications teams need well-crafted
                      communications plans and defined roles to
                      manage crisis and mitigate damage
                    – Crisis management typically involves rapid
                      response in communicating accurately and
                      transparently to stakeholders
Why Crisis Preparedness?


It’s all about protecting your brand.

In an “information overload” environment,
brands as purchasing decision tools matter
more than ever…

…and your brand is very likely your
company’s largest investment and most
valuable asset.
How does a Crisis Begin?



                           “On average, 69-percent
                           of all crises are the type
                           that start out small and
                           may take days, weeks or
                           even months before they
                           get out of control and
                           draw public attention...”

                           --Institute for Crisis Management
The Value in Planning


        According to a study
        by the insurance firm
        Marsh,
        every $1 spent in
        crisis planning is
        worth $7 in losses
        averted.
The Cost of Not Planning

Share prices of
companies that
mishandle a crisis one                              +7%
year later


                                         Share prices of
   -15%                                  companies that
                                         handle a crisis well
                                         one year later

              Source: The Impact of Catastrophes on Shareholder Value: A Research Report
              Sponsored by Sedgwick Group (The Oxford Executive Research Briefings,
              Templeton College, Oxford, 1997)
The Responsibility Scale: from Victim to Perpetrator

                                                Natural Disasters
 Victim                                         False Rumors
                                                Workplace violence
                                                Product Tampering
 Accidents                                      Equipment & Tech failure
                                                Human error industrial accident
                                                Human error harmful product
 Preventable                                    Organizational misdeeds




 Source: Crisis Management & Communications by Coombs 2007
So What’s Different Now?
So What’s Different Now?
So What’s Different Now?
Why Crisis Preparedness?
     Changing Times

It’s a brave new world for brands...
The competitive landscape has
changed…                                       • Fewer product-based
• Technological developments
                                               differentiators…more
• Global sourcing
                                               focus on brand values,
                                               versus price/features
• Easy access to pricing information


…as has the broader social context
• Increased access to information              • Corporate brands,
• High profile corporate scandals
                                               not just product brands
• Stakeholders who are better informed,        • Why not to buy a
closely coordinated and increasingly cynical
                                               brand, versus why to
• More focus on corporate social
responsibility
                                               buy
Why Crisis Preparedness?
 Brands Are in the Cross-hairs

But there’s one thing both sides agree on…
  Brands = Targets
                         quot;The flip side of the power
                         and importance of a brand is
                         its growing vulnerability.
                         Because it is so valuable to
                         a company, a brand must
                         be cosseted, sustained
                         and protected.”
                         --Sameena Ahmad
Why Crisis Preparedness?
   Crises Are Inevitable
Companies, like people, tend to think crises won’t happen to them…that well-
known images like these come from other industries, remote places, or years
ago…
Why Crisis Preparedness?
  Crises Are Inevitable

    …but if there’s one thing you can be sure of:
             a crisis will happen, to you.
We live in increasingly uncertain times…




More importantly, most corporate crises come from within…
Why Crisis Preparedness?
    Most Crises Come from Within

              INTERNAL                                  EXTERNAL
• Environmental Issue/Accident            • Natural Catastrophe
• Investigation/Lawsuit/Fine/Settlement   • Terrorist/Criminal Threat/Incident
• Poor Financials/Stock Performance       • Activist Issue/Protest
• Structure/Ownership Issue (M&A, etc.)
• Management Change/Dismissal
                                          Of the 15 major crisis
• Incident/Allegation of Mismanagement
                                          categories, only 3 have
• Incident/Allegation of Wrongdoing
                                          predominantly external
• Consumer Complaint/Issue                triggers.
• Product Defect/Recall
• Employee Complaint/Issue
                                          More than 75% of all
• Labor Dispute
                                          corporate crises are
                                          triggered from within.
• Workplace Injury/Fatality
Why Crisis Preparedness?
Greater Control

The fact that most crises come from within is actually
good news.
It means you have a greater degree of control…
•   Both in preventing potential crises from materialising.
•   And in containing and managing them when they do
    happen.
Why Crisis Preparedness?
Your Response Matters Most

All crises cost money, but they don’t typically destroy
brands and kill companies.
                            “You cannot always control
What destroys brands
                              what happens to you, but
and kills companies is
poor crisis                   you can control how you
management.                   deal with it. And in the
                              end that’s what
                              matters.”

                                             Kurt P. Stocker

                                   Northwestern University
Why Ogilvy Public Relations Worldwide?
  Focused on Outcomes

To protect your brand in this environment, we
recommend implementing BrandShield™
     Three phases, each with a clear outcome.


       1. Prepare            Prevent
       2. Respond            Contain
       3. Recover            Grow
Why BrandShield?
    Clear Concrete Steps

1. Prepare
•     Preparedness Audit
•
•
      Crisis Management Team Org./Training
      Risk Assessment and Scenario Planning             Prevent
•     Databases, Tools, Templates & Facilities
•     Simulations


2. Respond
•    Situation Assessment
•
•
     Immediate/Ongoing Research & Monitoring
     Strategic Messaging (Releases, Statements, Q&As)   Contain
•    Systems/Documentation
•    360-Degree Communications w/ All Stakeholders

)
3. Recover
•    Incident Analysis
•
•
     Key Lessons (Ops. & Comms.)
     Ongoing Issues Management
                                                        Grow
•    Brand/Stakeholder Audits/Comms. Plans
Why Ogilvy Public Relations Worldwide?
Three Key Differentiators

• Deep crisis experience

• Deep brand expertise

• 360 degree capabilities
Why Ogilvy Public Relations Worldwide?
        360-Degree Capabilities
  What’s required today are experts at stakeholder relations, not just
  media relations.
  And expertise in, and instant access to, multiple messaging media…


                                   BrandShield
       PR               Teledirect         Advertising         MindShare          Interactive
Leads team, crafts   Hotlines, database        Alerts,        Media placement   Online crisis mngt.
  key messages,      capturing, analysis   announcement             and           and web-based
handles media and       of enquiries,      ads, (print, TV,      analysis.       communications.
    influencer             opinion             radio).
 communications.     research/tracking.




                            Key Stakeholders
Why Ogilvy Public Relations Worldwide?
360-Degree Capabilities

 We’ve developed four online practical steps we dovetail
 into all our crisis management stakeholder relations
 programmes.

1. Listen
2. Respond
3. Promote
4. Participate
It’s Urgent to Listen
Set up online monitoring: search terms, reporting schedule
(determined by severity, how much discussion, and ability
to respond).

Who is talking?

What are they saying?

What’s the common
thread?
Respond
Website
•   Pressroom
•   Homepage call-out
•   Response microsite
Off-Site Vehicles
•   Press release
•   Video
•   Pledges and policy
•   Commenting
Promote
Negative Keyword Marketing

•   Use crisis-related terms

•   Examples: “Disgusting Dominos”

Video Responses

•   Tag your video as a response

Paid Media

•   Targeted online ad buys

•   Federated Media, Google Content Network
Participate
Commenting Guidelines
•   Who should comment?
•   How quickly?
•   In what instances should they
    comment?
•   What are their objectives? What should they say?
Commenting
•   Prioritise influential voices, but do not neglect less influential.
•   Correct misinformation.
•   Ensure that the client’s “side of the story” is represented.
•   Communicate that they are listening
Crisis Management Time Lapse

                                             CRISIS HITS

                                                                                 CRISIS


                Weekly Reports                       Daily/Hourly Reports

Monitor >        Conduct Blog/Online Monitoring


                   Set up Online Crisis
                   Collaboration Website             Use Collaboration Site to Manage Communications Strategy


                                                Update Client Website Homepage with Crisis Message
Respond >
                Set up Dark (Crisis) Sites           Launch Dark (Crisis) Site


                                                       Keyword Marketing: Promote Crisis Site
Promote >
                                                       Online Advertising: On Blogs or Websites as appropriate


                        Launch Client Blog       Use Client Blog as Forum for Response
Participate >
                        Develop List of Influential Bloggers   Conduct Outreach to Bloggers / Comment on Blogs
Ogilvy Pr Swine Flu On And Offline Crises Management

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Ogilvy Pr Swine Flu On And Offline Crises Management

  • 1. The Ogilvy Public Relations Approach to: Crisis & Issues Management This is a very brief overview of how we approach crises and issues preparedness; on and offline. Please take a look and let us know what you think. If you’d like to have a chat about any subject or issue raised in this presentation, why not drop us a line on; +44 207 309 1105 www.ogilvy.co.uk/ogilvypr Twitter: @ogilvyprlondon
  • 2. Ogilvy PR’s Approach to Crisis Management Ogilvy PR believes that crisis management is not a formulaic process. Every crisis situation is unique and must be managed accordingly. Any set of rules or tools tailored too narrowly to the needs of a hypothetical crisis scenario would be too confining to be of practical value when a genuine crisis develops. There are certain core principles beneath successful crisis management, however. Developing appropriate tactics on the basis of these principles enables an organisation’s leadership to remain focused and effective as crises unfold, which they usually do with blistering speed. Once your management is grounded in the core principles and methodologies, Ogilvy PR can respond effectively to a wide range of distinct crises. Anticipating the types of crises that a company is likely to encounter can help develop useful frameworks. Further, the skills needed to implement a crisis response can be amplified and honed through simulations that put management through the paces of a realistic crisis situation.
  • 3. Issues & Crisis Management – Our Philosophy • Approximately 75% of what’s needed to handle a crisis effectively can be developed in advance • Most crises can be averted – Communications teams must be able to recognize the issue, act upon it and manage it before it becomes a crisis – Issues management typically involves a campaign to change stakeholder opinions • Some crises occur without warning – Communications teams need well-crafted communications plans and defined roles to manage crisis and mitigate damage – Crisis management typically involves rapid response in communicating accurately and transparently to stakeholders
  • 4. Why Crisis Preparedness? It’s all about protecting your brand. In an “information overload” environment, brands as purchasing decision tools matter more than ever… …and your brand is very likely your company’s largest investment and most valuable asset.
  • 5. How does a Crisis Begin? “On average, 69-percent of all crises are the type that start out small and may take days, weeks or even months before they get out of control and draw public attention...” --Institute for Crisis Management
  • 6. The Value in Planning According to a study by the insurance firm Marsh, every $1 spent in crisis planning is worth $7 in losses averted.
  • 7. The Cost of Not Planning Share prices of companies that mishandle a crisis one +7% year later Share prices of -15% companies that handle a crisis well one year later Source: The Impact of Catastrophes on Shareholder Value: A Research Report Sponsored by Sedgwick Group (The Oxford Executive Research Briefings, Templeton College, Oxford, 1997)
  • 8. The Responsibility Scale: from Victim to Perpetrator Natural Disasters Victim False Rumors Workplace violence Product Tampering Accidents Equipment & Tech failure Human error industrial accident Human error harmful product Preventable Organizational misdeeds Source: Crisis Management & Communications by Coombs 2007
  • 12. Why Crisis Preparedness? Changing Times It’s a brave new world for brands... The competitive landscape has changed… • Fewer product-based • Technological developments differentiators…more • Global sourcing focus on brand values, versus price/features • Easy access to pricing information …as has the broader social context • Increased access to information • Corporate brands, • High profile corporate scandals not just product brands • Stakeholders who are better informed, • Why not to buy a closely coordinated and increasingly cynical brand, versus why to • More focus on corporate social responsibility buy
  • 13. Why Crisis Preparedness? Brands Are in the Cross-hairs But there’s one thing both sides agree on… Brands = Targets quot;The flip side of the power and importance of a brand is its growing vulnerability. Because it is so valuable to a company, a brand must be cosseted, sustained and protected.” --Sameena Ahmad
  • 14. Why Crisis Preparedness? Crises Are Inevitable Companies, like people, tend to think crises won’t happen to them…that well- known images like these come from other industries, remote places, or years ago…
  • 15. Why Crisis Preparedness? Crises Are Inevitable …but if there’s one thing you can be sure of: a crisis will happen, to you. We live in increasingly uncertain times… More importantly, most corporate crises come from within…
  • 16. Why Crisis Preparedness? Most Crises Come from Within INTERNAL EXTERNAL • Environmental Issue/Accident • Natural Catastrophe • Investigation/Lawsuit/Fine/Settlement • Terrorist/Criminal Threat/Incident • Poor Financials/Stock Performance • Activist Issue/Protest • Structure/Ownership Issue (M&A, etc.) • Management Change/Dismissal Of the 15 major crisis • Incident/Allegation of Mismanagement categories, only 3 have • Incident/Allegation of Wrongdoing predominantly external • Consumer Complaint/Issue triggers. • Product Defect/Recall • Employee Complaint/Issue More than 75% of all • Labor Dispute corporate crises are triggered from within. • Workplace Injury/Fatality
  • 17. Why Crisis Preparedness? Greater Control The fact that most crises come from within is actually good news. It means you have a greater degree of control… • Both in preventing potential crises from materialising. • And in containing and managing them when they do happen.
  • 18. Why Crisis Preparedness? Your Response Matters Most All crises cost money, but they don’t typically destroy brands and kill companies. “You cannot always control What destroys brands what happens to you, but and kills companies is poor crisis you can control how you management. deal with it. And in the end that’s what matters.” Kurt P. Stocker Northwestern University
  • 19. Why Ogilvy Public Relations Worldwide? Focused on Outcomes To protect your brand in this environment, we recommend implementing BrandShield™ Three phases, each with a clear outcome. 1. Prepare Prevent 2. Respond Contain 3. Recover Grow
  • 20. Why BrandShield? Clear Concrete Steps 1. Prepare • Preparedness Audit • • Crisis Management Team Org./Training Risk Assessment and Scenario Planning Prevent • Databases, Tools, Templates & Facilities • Simulations 2. Respond • Situation Assessment • • Immediate/Ongoing Research & Monitoring Strategic Messaging (Releases, Statements, Q&As) Contain • Systems/Documentation • 360-Degree Communications w/ All Stakeholders ) 3. Recover • Incident Analysis • • Key Lessons (Ops. & Comms.) Ongoing Issues Management Grow • Brand/Stakeholder Audits/Comms. Plans
  • 21. Why Ogilvy Public Relations Worldwide? Three Key Differentiators • Deep crisis experience • Deep brand expertise • 360 degree capabilities
  • 22. Why Ogilvy Public Relations Worldwide? 360-Degree Capabilities What’s required today are experts at stakeholder relations, not just media relations. And expertise in, and instant access to, multiple messaging media… BrandShield PR Teledirect Advertising MindShare Interactive Leads team, crafts Hotlines, database Alerts, Media placement Online crisis mngt. key messages, capturing, analysis announcement and and web-based handles media and of enquiries, ads, (print, TV, analysis. communications. influencer opinion radio). communications. research/tracking. Key Stakeholders
  • 23. Why Ogilvy Public Relations Worldwide? 360-Degree Capabilities We’ve developed four online practical steps we dovetail into all our crisis management stakeholder relations programmes. 1. Listen 2. Respond 3. Promote 4. Participate
  • 24. It’s Urgent to Listen Set up online monitoring: search terms, reporting schedule (determined by severity, how much discussion, and ability to respond). Who is talking? What are they saying? What’s the common thread?
  • 25. Respond Website • Pressroom • Homepage call-out • Response microsite Off-Site Vehicles • Press release • Video • Pledges and policy • Commenting
  • 26. Promote Negative Keyword Marketing • Use crisis-related terms • Examples: “Disgusting Dominos” Video Responses • Tag your video as a response Paid Media • Targeted online ad buys • Federated Media, Google Content Network
  • 27. Participate Commenting Guidelines • Who should comment? • How quickly? • In what instances should they comment? • What are their objectives? What should they say? Commenting • Prioritise influential voices, but do not neglect less influential. • Correct misinformation. • Ensure that the client’s “side of the story” is represented. • Communicate that they are listening
  • 28. Crisis Management Time Lapse CRISIS HITS CRISIS Weekly Reports Daily/Hourly Reports Monitor > Conduct Blog/Online Monitoring Set up Online Crisis Collaboration Website Use Collaboration Site to Manage Communications Strategy Update Client Website Homepage with Crisis Message Respond > Set up Dark (Crisis) Sites Launch Dark (Crisis) Site Keyword Marketing: Promote Crisis Site Promote > Online Advertising: On Blogs or Websites as appropriate Launch Client Blog Use Client Blog as Forum for Response Participate > Develop List of Influential Bloggers Conduct Outreach to Bloggers / Comment on Blogs