Can cyberattacks improve your reputation?

Think Target and the hit it took when hackers stole the private information of millions, requiring many to update credit cards and the like. It’s a disaster that most executives believe will happen to them–not if, but when. So, that makes it even more amazing to find out that most executives think, according a study published in the Economist, that two thirds of CEOs think a good response to such an attack will enhance their reputation.

PRNewser from mediabistro reporting on the Economist story notes that while 66% think they will come out of such an event smelling like a rose, only 17% surveyed say they are “fully prepared.”

Hootsuite, perhaps the best social media management and monitoring tool that I know of, today experienced a hack attack in the form of a Denial of Service attack. One client emailed me Ryan Holmes’ response. The CEO of Hootsuite was fast, empathetic, transparent and almost completely on target. (Only thing missed in my mind was an apology, but perhaps he felt there was nothing to apologize for and he may be right).

A couple of things stand out to me in this new arena of crisis communication:

– CEO’s seem to get the idea that fast, transparent communication can actually enhance a reputation even when customers/stakeholders have been hurt

– There seems to be quite a gap between the confidence displayed and the level of preparation. That is surprising. I would think the confidence would come after preparation, not before.

– The reality (certainty?) of this kind of crisis seems to be quite well accepted.

Now, we will see how it all turns out. My prediction: Another Target-type hacking will occur and the press and social media pundits will be better positioned to blame the company. “They knew it was coming but did not take the steps they needed to to prevent it–it was profits above people all over again.” Then, the crisis communication game really begins.

Oracle’s media access policy in serious need of updating

Shel Holtz blogged today about Oracle firing of social selling executive Jill Rowley who claims she was fired for giving an unauthorized interview to AdAge magazine.  Shel suggests, and I agree, that there seems to be more to this story than an errant interview.

But it raises once again the issue of media access. What’s your policy? Having reviewed dozens of crisis communication plans in the last few years, I have yet to find one that conforms to what I believe is the norm following the media access controversy during Deepwater Horizon in 2010. Here’s what happened as I understand it: Reporters went out on the beaches and where spill response activity was happening and tried to interview responders. They were told they were not to speak to the media. The media understood this to be another of evil BP’s efforts to stifle and cover up–despite the fact that BP was not running, nor involved in the public communication effort at this time. It was the White House dictating media access policy. But when one veteran Coast Guard PIO tried to clarify that it was White House policy, not BP, he was promptly sacked. Pressure grew to the point where National Incident Commander Thad Allen issued a media policy carried by all PIOs (which is how I saw it). It said, again as I recall, the policy is to provide maximum access with minimum delay, consistent with safety and with not interfering with response operations. It further said that all responders are authorized to speak to the media providing they restrict their comments to their own area of responsibility.

Previously I had heard from Coast Guard PIOs that Allen as Commandant of the Coast Guard had implemented that policy for the entire Coast Guard. One senior Coast Guard official, given the White House’s desire to control the message, expressed doubts whether that policy would continue to stand. I suspect, but do not know, that it still stands in some form, but with the understanding that the leash is pretty tight.

Given all this, I have advised everyone I know to look at their media access policy in this light. Recognize first of all that if you have the media’s black hat on, there will be heightened sensitivity to any and all indications of cover-up, controlling the message or lack of transparency. When one of your employees responds to a reporter’s question with “we were told by top management we can’t talk to you” that is blood in the water to the shark.  If you do hold to a spokesperson only policy, then make certain you include in your refer and defer training (employee training on how to respond to reporter questions by referring to authorized spokesperson) use of a better response. Such as, “I’d love to help you with that, but I just don’t have the information you are looking for, so let me help you find the person who can answer that for you.” This is a little tough when all the reporter wants is an emotion-laden visual response when he/she asks the question: “How do you personally feel about this tragedy?”

The best policy and one I consistently advise, is to adopt Admiral Allen’s policy of maximum access with minimum delay, consistent with safety and no interference with the response.  Every employee or contractor is a spokesperson–but with the restriction of limiting what they say to their own area of responsibility. That is where much of the focus of media training should be today.

 

Crisis wisdom from Richard Nixon

Dartmouth professor of corporate communications, Paul Argenti, wrote an interesting and useful blog on Harvard’s HBR Blog on crisis communication. Specifically, it looks at GM’s CEO Mary Barra and how she is dealing with the inherited crisis of the current ignition switch recalls.

This is a concise and very useful summary of the key crisis communication principles–some of which I saw put to use to very good effect recently on a situation where I was a close observer.

At the very end, Professor Argenti quotes Richard Nixon from his famous Checkers Speech.  Nixon:

 “The easiest period in a crisis situation is actually the battle itself. The most difficult is the period of indecision—whether to fight or run away. And the most dangerous period is the aftermath.  It is then, with all his resources spent and his guard down, that an individual must watch out.”

Not sure truer words about crises have been spoken.