CNN’s Crisis Vulnerability

Turner CEO Phil Kent








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In its most recent weekly online edition (January 29, 2009), Georgia-based publication Business to Business posted a “conversation” with Turner CEO Phil Kent and how he's responded to several crisis situations. One of the examples screams to me that it was preventable and that CNN leaves itself open for more of the same.

At issue, CNN’s Web-based iReport, which carries this disclaimer: “iReport.com is a user-generated site. That means the stories submitted by users are not edited, fact-checked or screened before they post. Only stories marked ‘On CNN’ have been vetted for use in CNN news coverage.”

This policy seems counter-intuitive. Here’s a global network that employs seasoned journalists worldwide, journalists who are held responsible for accuracy and balance. Yet, this same network hosts an unedited site where anyone is free to “report” anything. Here’s what happened last October and how Kent responded to it, as reported in Business to Business Magazine:

CNN.com's new citizen journalist outlet, ironically called iReport (a name Apple might have wished they would have trademarked), reported that Steve Jobs, Apple's co-founder, was rushed to the hospital after suffering a severe heart attack, a report later unfounded and
untrue.

With no verification, the news quickly spread in the blogosphere, and caused Apple stock to sink to an 18th-month low before rebounding by the end of the day.

"The system worked exactly the way it was supposed to because our editors don't oversee iReport," he says. "As soon as the community that self-monitors iReport saw that this was bogus, they pulled it off."

"Would you blame the phone company for someone calling up and making a death threat on the phone line," Kent asks.

"Somebody abused our terms of service; knowingly filed a false report and we're cooperating with the SEC and the State's Attorney General to investigate whether it was deliberate stock manipulation. There was nobody here that did anything wrong."

Kent's phone company analogy doesn't work. The lack of his unmonitored, unedited "news" page would not be the end of getting news online. It simply would put some voluntary control over the veracity of the news.

How many more similar situations does CNN set itself up for? CNN is not the only one, either. Other news organizations have their own contributor access pages. And, Fox News' Ureport also provides a viewer-generated news platform.

More than a few professional journalists have expressed concerns about the Wild West nature of the Internet. In an effort to reach out to their viewers, readers and listeners, bona fide news organizations seem to be cultivating and nurturing the very beast they fear.

The Fries Have It!

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When dealing with the news media, you usually can expect the unexpected.

These situations can come in many forms, many ways. One way is the reporter/interviewer injecting himself into the conversation and putting you on the spot.

What can you do when you feel like you’re being personally attacked?

Case in point, CNBC’s Joe Kernen prefers the French fries at McDonalds and is quite vociferous about it. In a recent interview he praised Mickey D’s CEO Jim Skinner for his fries. Of course, Skinner gladly accepted the accolades.

A few days later, Burger King CEO John Chidsey was the guest. While talking to anchor Becky Quick at Davos, Kernen injected himself from the studio, first asking Chidsey if the fast food restaurant’s burgers were indeed flame broiled, or simply made to taste that way.

Chidsey paused, considered the question and then had some fun with Kernen, saying he should know the answer, that Burger King’s burgers indeed are cooked over real flames.

Then Kernen claimed McDonald’s French fries are superior. And he even suggested that the potatoes could be pivotal to the company’s stock price.

“Why are McDonald’s fries better?” he demanded. Talk about getting into a CEO’s face. To his credit, Chidsey kept his cool and maintained a slight smile…except for one brief moment when he gritted his lips (as opposed to his teeth). (Click on the video below.)

Lesson learned: park your emotions outside the interview. For the most part, Chidsey did. And, he paused before he answered, giving himself time to take a breath, and responding instead of arguing.

TVA Dragged Through its Own Sludge

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The Tennessee Valley Authority’s wreckless handling of crisis communications following its Christmas-time sludge spill in the eastern end of the state continues to haunt the utility and call its leadership into question. This is the latest of many apparent sins and comes at an unfortunate time for the management as democrats, tuned in to environmental issues more than ever, have increased their hold on the House and Senate and now control the White House, too.

Immediately following the disaster that has ruined many lives and livelihoods, “Executive Rewind” (TVA Management Took a Holiday) noted the utter lack of senior management’s availability and presence on location to work with residents, clean-up teams and the news media.

TVA’s reluctance to communicate continues and it is getting a deserved drubbing in the press. Case in point, The Tennessean’s Brad Schrade’s lengthy and compelling indictment of the authority in a January 25th article entitled “TVA spill unleashes flood of questions.”

Schrade reports that the incident raises a host of “uwanted questions” for the Authority and quotes a democratic congressman who skewers TVA management for their hubris:

"In TVA's 70-year history they've gone from a yardstick for the world to a laughingstock with the nuclear problems (in the 1970s) to a run-of-the-mill, get-by-with-what-you-can utility," said U.S. Rep. Jim Cooper, a Democrat from Nashville. "I told (TVA Chief Executive) Tom Kilgore and (TVA Chairman) Bill Sansom when they came up (to Washington) that 2008 was a disastrous year for TVA.

"They demanded whopping rate increases from every customer. Paid the top executives fat bonuses. Then virtually on Christmas Eve poured toxic sludge on a lot of good, hard-working Tennesseans and one of our most beautiful valleys. Oh, sure they're apologetic but it's tragic and disappointing that we don't have a first-rate, top-flight utility in the valley."

Rep. Jim Cooper, (Dem-Ten)

While TVA is defended in the article by Sen. Lamar Alexander, R-Tennessee, it’s Cooper’s party that holds the cards today, and will likely make the Authority pay for its arrogance and poor communication policies.

The fact that a new sheriff is in charge in Washington, DC, should be a reason enough for TVA to change the way it deals with its customers by creating a new environment of access to and through the news media.

Spin + Revision = Chutzpah

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This tidbit comes from an email I recently received:

Judy Wallman, a professional genealogy researcher in southern California , was doing some personal work on her own family tree. She discovered that Harry Reid's great-great uncle, Remus Reid, was hanged for horse stealing and train robbery in Montana in 1889. Both Judy and Harry Reid share this common ancestor.

The only known photograph of Remus shows him standing on the gallows in Montana territory.

On the back of the picture Judy obtained during her research is this inscription:

“Remus Reid, horse thief, sent to Montana Territorial Prison 1885, escaped 1887, robbed the Montana Flyer six times. Caught by Pinkerton detectives, convicted and hanged in 1889.”

So Judy Wallman recently e-mailed Sen. Harry Reid for information about their great-great uncle. Believe it or not, Harry Reid's staff sent back the following biographical sketch for her genealogy research:

“Remus Reid was a famous cowboy in the Montana Territory. His business empire grew to include acquisition of valuable equestrian assets and intimate dealings with the Montana railroad. Beginning in 1883, he devoted several years of his life to government service, finally taking leave to resume his dealings with the railroad. In 1887, he was a key player in a vital investigation run by the renowned Pinkerton Detective Agency. In 1889, Remus passed away during an important civic function held in his honor when the platform upon which he was standing collapsed.”

Obfuscation

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And I thought politicians were the experts at interview obfuscation.

But, then I saw an interview with Harley Shaiken with the American Rights at Work organization. He spins so much you can get dizzy just listening to him. (Click on the video below.)

His issue is labor's drive to either pre-empt or stop secret ballot votes inside companies where union proselytizers are trying to organize workers. Legislation allowing organizers to use sign up cards has wide support in the heavily Democratic Congress and Barack Obama promised his support often on the campaign trail.

Of course, big business and other management groups don’t like it, but their efforts to stop it appear to be futile at this point.

Shaiken appeared on Fox New Channel’s Your World with Neil Cavuto. He claimed labor is not against secret ballots. Well then, Cavuto asked, why are you pushing these petition cards? Shaiken's response was lame and didn't make any sense.

“If you join the American Legion, you don’t do using a secret ballot. If you join the National Rifle Association, you just join it…” And he was serious!

A major issue here is whether workers in a non-union shop would be pressured and intimidated to sign a petition card as opposed to being allowed to vote by secret ballot.

Shaiken insisted that this is not an attempt to drop the ballot option. But, he claimed, secret ballots serve management’s purposes while the registration/petition card actually offers more freedom to employees. When Cavuto suggested that this is labor’s way of using pressure tactics, Shaiken's response was laughable: "Life is full of pressures."

Big labor is spending $3,000,000 on their marketing campaign to get their petition card legislation passed and signed by the new president. If any labor leaders were watching that interview, though, they just might consider sending someone else other than Harley Shaiken to do their bidding in the media. Any messages he intended to get out were lost in the whirlpool of spin.

Crisis and the Executive

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The speed of events and media response to them put increased pressures on business leaders who are caught in the news spotlight.

In the case of Thursday’s crash of US Airways 1549, geography expedited the speed of response and coverage exponentially. The passengers and crew were not the only fortunate ones after the controlled crash landing in the Hudson River.

It was a big break for the majority of major national media, print and broadcast, with either major bureaus or their headquarters in New York City, as well.

The incredible job done by the pilot to bring down the plane near NYC’s ferry dock made rescue efforts fast and completely successful in saving all aboard. And, thanks to that same proximity, news reporters and crews reached the scene and live pictures were on the air within minutes. Reporters, many of them most likely accompanied by producers, quickly rounded up eyewitnesses, first responders and survivors for interviews.

Things were happening very fast, too, in Tempe, AZ, at US Airways headquarters. President & CEO, Doug Parker and staff were whipping up a statement that he delivered on camera outside airline headquarters not long after the accident.

No one would want to be in Parker’s shoes, to be sure. In a crisis, his job is to present a calm, controlled, reassuring posture and tone, and definitely reflect genuine concern. Yet, his delivery was perfunctory, stiff and lacking emotion. And, at the close of his brief remarks, he read this: “Safety is, has been and forever will be our foremost priority here at US Airways…” Then, he briskly walked away, saying he was on his way to New York. (Click on video below.) Of course safety should be the top priority. But, just saying (or, as in this case, reading) those words with no sense of connection to them makes them hollow and meaningless.

All too often, executives talking to the news media soon after a catastrophic event seem cold and detached. They need to consider that families and friends of victims who might be watching or hearing them need to feel, and believe, that those in charge are compassionate and sincerely share their concerns.

With some thought and consideration, Parker could’ve credited the amazing work of his pilots and flight attendants with the fact that their actions were a demonstration of their training and the airline’s commitment to safety. Putting it that way gives the airline's commitment context, substance and credibility.

The speed of the media and the instant and lasting impressions that can be left on important audiences make it even more important for executives to be prepared to react quickly and appropriately.

Labor vs. Management & the Media

"Anyone who talks about you...or your business...is media!"

There’s good reason for thoughtful and strategic consideration of your target audiences prior to dealing with the news media. You should always first identify the groups and/or individuals who are persuadable and can help you achieve your goals. Over time, and with repetition, these audiences can be hugely influential in helping you.

Consider this:

Unions are known for taking their contract differences with management to the media. Their goal is to build empathy for their case and generate pressure on management from beyond the negotiating table to settle on a deal as favorable as possible to workers. So, why doesn’t management do the same? Typically management will either say nothing at all, or issue generic press releases that say nothing, while the union is fanning emotions.

Indeed, management can even out flank labor by getting to the media first and begin building a case. Management needs to think beyond its work site and consider who else has a stake in the final contract. Frequently, that includes the workers’ families. Why shouldn’t they hear the employer’s side of the story? If management has a strong position, or has made a reasonable and fair offer, perhaps some pressure could be applied at home (literally) to get an agreement.

There’s no need to bash the union or its leadership and negotiators. Nor is this a suggestion to negotiate through the media. However, management has the same rights as the unions to make the facts known. Assuming the employer has a strong, worthy position, using the media to leverage that position just might help bring things to a quicker and acceptable conclusion.

A Politician Who's Not Evasive?

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Politicians typically are horrible role models for learning how to interact with news media interviewers. They’re notorious for their propensity to ignore questions and spew the rehearsed “company” line. They usually are much better to use as examples of evasion.

Just think back to the recent and very protracted presidential campaign. Candidates and their surrogates ignored most questions and regurgitated their slogans and memorized lines. It was maddening. What they don’t seem to understand is that evasion is a distraction, and the messages they’re trying to force-feed us really aren’t being heard.

And so, it’s almost counter-intuitive to offer a politician as an example of someone who has managed to be fairly responsive to questions while staying on message. This is not about a politician and his position on issues. Instead, it reinforces the notion of your right to be responsive to questions on your terms, from your perspective, and still effectively connect with target audiences.

President-elect Barack Obama submitted to an interview Sunday, January 11, 2009, on ABC’s This Week with George Stephanopoulos. With just over a week before taking office and the reality of the issues he faces, Obama was quite refreshing with his responses. Here are some examples that have been copied and, in the interest of time, shortened, but no words have been added or meanings changed:

STEPHANOPOULOS: You know, we asked our viewers what they wanted to hear from you, and we got hundreds of pages of questions, thousands of questions, almost all about the economy. And it's clear there's a lot of pain out there, a lot of fear. And if I could sum up the questions, it would be very simple, can you fix this?
OBAMA: I think we can fix this. But it's going to take some time. It's not going to happen overnight...
STEPHANOPOULOS: Do you really believe those business tax cuts are going to work to create jobs? Or do you put them in so you could get Republican votes?
OBAMA: Well, let's look at the package as a whole, the bulk of the package is direct government spending. And here are a few things we're going to do…
…And so then the question becomes, do tax cuts also provide a stimulus? Do they also help? And they may not help as much as some of the direct spending projects do, but they still provide a stimulus, especially if they are targeted towards people who are really in need.
STEPHANOPOULOS: When you look at the array of things you want to do, as president, something is going to have to give.
OBAMA: Right.
STEPHANOPOULOS: Which of your ambitions, which of your campaign promises will you have to scale back on because of all of this?
OBAMA: Well, we are going to be presenting a budget in February. And as we learned this week, we are inheriting over a trillion dollar deficit. Unheard of in recent history and…So one of the things that I've said is -- and I've said this to my economic team, we are going to have to make some tough choices under my watch to ensure that on the medium term and the long term we're starting to bend the curve where we are getting the deficit under control.
STEPHANOPOULOS: Let me press you on this, at the end of the day, are you really talking about over the course of your presidency some kind of a grand bargain? That you have tax reform, health care reform, entitlement reform, including Social Security and Medicare where everybody in the country is going to have to sacrifice something, accept change for the greater good?
OBAMA: Yes.
STEPHANOPOULOS: And eventually sacrifice from everyone.
OBAMA: Everybody is going to have to give. Everybody is going to have to have some skin in the game.
STEPHANOPOULOS: So based on what you've learned during all these intelligence briefings, are we safer or more at risk than you believed during the campaign?
OBAMA: Well George you know I can't say what the --
STEPHANOPOULOS: Without giving me any confidential information, just generally.
OBAMA: I think that we have made progress in certain areas but those dangers are still there. And those dangers are not going to immediately go away…
STEPHANOPOULOS: You also agreed on Guantanamo when you say you want to shut it down. You say you're still going to shut it down. Is it turning out to be harder than you expected, will you get that done in the first 100 days?
OBAMA: It is more difficult than I think a lot of people realize and we are going to get it done but part of the challenge that you have is that you have a bunch of folks that have been detained, many of whom who may be very dangerous who have not been put on trial or have not gone through some adjudication.

Obama either gives direct answers, or backs into an answer. But, there’s no evidence in the above selections that he completely ignores or evades questions. And these examples are indicative of the entire interview. When he cannot, or will not, respond directly, he says so and says why.

It will be interesting to see if he continues this practice during his presidency.

Spin

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Get "spin" out of your lexicon. It's bad for your business health.


In media training workshops I try to pre-empt the notion of spin even before it comes up, telling clients I’m not in the spin business and they shouldn’t be either.

My job is to teach them the techniques of answering interview questions responsively, but on their terms, from their perspective.

Reporters typically know when you’re spinning and use it as motivation to really dig in their heels and come after you.

Case in point, JetBlue CEO David Barger’s response to an accurate contention by Fox Business Network anchor Neil Cavuto that his airline, formerly fee-less, now is hitting customers with some of the same additional charges as other airlines. Barger’s response: “…we’re now terming flying as jetting because we want jetting to be a good part of your life…” He followed with all the comforts and embellishments of JetBlue’s airplanes, and concluded that the core product remains the same with no new fees tacked on. (Click on video below)

Now why didn’t David Barger simply admit that JetBlue’s increased costs require some additional fees? It would’ve been so much more refreshing and credible. People already understand that airlines are charging for things like checked bags because their fuel costs have been astronomical. They may not like it, but they usually understand it.

Barger could’ve—and should’ve—just come clean instead of spinning his answer into trying to make us believe we’re lucky to get the same core product for the same price. And that line about “flying” now being termed “jetting”…where did that come from and what did it have to do with his answer?

Screw up? Admit it!

Why do some executives find it so difficult to admit mistakes? Ego? Arrogance? Insecurity? Stubbornness? Probably some of each.

In the world of business, experience has shown that a quick and honest demonstration of contrition can go a long way toward getting things back to normal and preserving image and reputation.

Time is critical. Wait too long and when you ask for forgiveness, it will be denied.

For example, Matt Millen. He had an excellent reputation as a professional football player and, later, as a network radio and TV analyst for pro games. He played on three Super Bowl winners, Oakland, San Francisco and Washington. He had been one of the league’s better defensive players.

In 2001 he left the broadcast booth to be president and CEO of the Detroit Lions.
But, Matt Millen was abysmal as an administrator and judge of talent. He had no prior player development or front office experience. According to the Wall Street Journal NFL executives admitted in private that Millen "has made more bad draft decisions than anyone else in two centuries".

During his seven plus seasons in charge, the Lions record was 31-84. The cries for his dismissal were widespread and pretty much unanimous. The latest Lions team he left behind ended up being the first ever to complete a perfect 0-16 season.

After the third week of the 2008 season, Millen finally was fired. But, not until New Year’s holiday weekend, 15 weeks later, did Matt Millen finally talk about his dismal performance as a pro team manager.

He said the right things, shouldered all the blame, but probably much too late.

Millen said he’s "completely responsible" for the Lions' 0-16 record this season. "You can say something about the coaching, you can say something about the players, but inevitably, I'm responsible for them." Asked "Would you have fired you?" Millen answered, "Yeah, I would have." He admitted he was inexperienced as an executive and that he had to learn many things on the job.

NBC Sports exhumed Millen over the weekend as an in-studio analyst, an apparent attempt to resuscitate his broadcast career. Will it work? Only time will tell. But, based on the early comments spotted on some blogs, it will be, at best, a 90 degree climb up a very tall hill.

Here’s a sampling of comments:

"You gotta be kidding me...why is this knucklehead on TV and why on earth would NBC believe his commentary is respected by anyone who knows anything about football?"

"Considering NBC is televising the Super Bowl, our football party may be cancelled!"

"You don't speak to the media or fans in Detroit for three years and after you're canned you come out with this crap? Too little too late Matt."

"Too bad a descent football player will be remembered as a central figure in a 0-16 team. Guess he can always head over to the Bill Buckner Institute for bad breaks, in an attempt to recover."

"WOW Matt ......do ya think ??? The fans have been telling you this for years. Quite possibly the most ludicrous job of drafting outside of a fantasy league in the history of the NFL."

"Water is wet. The sun rises in the east. NO KIDDING, MATT!! You should have been fired after last year's collapse after a 6-2 start. You owe every Lions fan a refund."

For Matt Millen, more than seven years of ego, arrogance, stubbornness and an exceptionally atrocious record running a franchise have darkened his name and erased all the positives he enjoyed for more than twice that length of time as a player and on-air analyst.