Blind Man Swinging at a Piñata

By Eric M. Seidel, CEO

The Media Trainers®, LLC

First, this disclaimer: I have no preference in the GOP presidential contest. I observe press conferences, interviews and debates through the prism of techniques.

With that said, Herman Cain’s response to sex harassment charges has been a graduate-level course in what NOT to do in a crisis.

Observing Cain and his campaign has been like watching a blind man swinging at a piñata. Every response has been an instant reaction without prior thought or planning, constantly missing the mark. As a result, Cain’s story has changed from one interview to the next. As more details emerge, his explanation adds a new wrinkle, provoking more questions and a picture of an organization in chaos.

Cain’s communications team—which may be a generous description—has been amateurish. Chief of Staff Mark Block took that a step further, appearing on Fox News and with a page of messages he visibly referred to during the live interview. In addition, Block charged the Rick Perry campaign for leaking the harassment story to Politico, a charge that very likely could be wrong, thus creating even deeper problems and concerns for the Cain campaign and its credibility. (Click on the video below.)

Herman Cain and his people were alerted this story was coming out about 10 days in advance. Their apparent inaction in doing due diligence and preparing a factual, credible, cogent and comprehensive response inevitably raises questions about the candidate and his ability to organize and lead. They had an opportunity to get ahead of this story, but their inaction has them trailing, keeping them off message.

Today’s reality of instant planet-wide communication makes it a priority to have a strong, credible communications infrastructure. And not just for political candidates; it’s imperative for all businesses and organizations.

C-Y-A Doesn’t Work in a Crisis

USA Swimming Executive Director Chuck Wielgus

By Eric Seidel, CEO

The Media Trainers®

USA Swimming is where future American Olympians are groomed. It also is where some young girls have been sexually abused for years by several dozen coaches.

The executive director of USA Swimming gets an “F” for how he’s handled this crisis, especially through the news media. Instead of displaying outrage and a sense of urgency to address and eradicate this situation, he chooses to minimize, deflect and, in short, practice C-Y-A.

At least 36 USA Swimming coaches have been accused of sexual abuse involving young female swimmers. In one case, when discovered, a coach simply packed up and headed for another town and began coaching teenaged girls again.

In an ABC News 20/20 interview, USA Swimming’s Executive Director Chuck Wielgus claimed: "It's not nearly as serious in USA Swimming as it might be in the rest of society…" “…I don't want to be the one to sit here and say 36 is not too many, one is too many, but this is not just a problem that's isolated to one sport."

Sadly, this is like a child trying to minimize and deflect bad behavior by saying “they did it, too, and even more than we did "(quotes added). Wielgus resorts to similar spin on the organization’s Web site.

Time and again, organizations and executives fail to learn from the mistakes of others in handling crisis communications. Based on the 20/20 story, USA Swimming’s Wielgus failed both in how the organization has reacted internally and externally to this crisis by portraying a genuine concern and a desire to quickly correct a situation so damaging to the young women involved as well as his group.

Those who support USA Swimming need to take a very close look at its leadership. Dramatic changes appear to be in order.

Finally, Tiger Starts the Process

By Eric Seidel, CEO

The Media Trainers®

The intimate and outrageous behavior that has led to Tiger Woods’ personal crisis is akin to a catastrophic air disaster and required a similar swift and comprehensive response similar to any airline suffering an accident.

The fact that he waited so long has been a serious setback to rehabilitating his image and has been roundly criticized by many, including two earlier postings in this space (Tiger Woods & Anyone Remember Letterman?).

But, in finally coming out from behind his Web site, Woods has made some positive moves; moves that others can learn from.

First, he established a “beachhead”, or meeting point with plenty of notice to the media. This was not a hit-and-run. Next, his remarks were directed to specific audiences, including family members, close friends, fans, young students under the tutelage of his education foundation, and, most notably, business partners (i.e., sponsors). He called stories claiming his wife, Elin, attacked him on Thanksgiving night "fabricated." And he admonished the media and paparazzi to stay away from his family, including his mother.

The fact that he did not take questions in this round was not surprising, although very much an important open issue that needs to be addressed soon. Instead, he had set the ground rules and established boundaries. By doing that, when the time comes for one or more interviews, Woods now has clear message points he can bridge to in any give-and-take that tries to take him into details he's not willing to discuss. Among those messages:

à He admittedly was unfaithful, had affairs and cheated.

à His behavior was unacceptable and he alone is to blame.

à Any conversations between he and his wife will remain between them; that, in other words, is off limits.

à And (to me, a most refreshing message rarely heard from a long-coddled athlete brought down by his own doing) he allowed his celebrity to mislead him into thinking social mores did not apply to him. (Click on video below.)

Was he genuine, honest, and seriously contrite? Any third person answer is subjective. No one can get into Tiger Woods’ head to know for sure. How he conducts himself in the future will go a long way toward answering those questions.

He does need to confront the media again, and soon, this time prepared to answer questions, tough questions that will attempt to circumvent the messages and boundaries he’s established. His answers need to be responsive, honest and lacking bite, no matter how provoked emotionally he might feel. But, as discussed above, he can be responsive and remain on message now that he has set a messaging foundation.

Again, Tiger Woods' delay to this point has served only to dig himself a deeper hole. Hence, the lessons learned are negative and positive. In times of crisis, you need to react quickly and transparently. And have a plan that sets specific ground rules while also helping establish you as the best source of accurate, honest information.

Tiger's tale has gotten way ahead of him because he waited so long. That, alone, has inflicted irreparable harm. But, at least he's begun the process. It will be fascinating to see and hear what follows.

Whipping the Proverbial Whipping Boy

By Eric Seidel, CEO
The Media Trainers, LLC

Don't like the message? Punish the messenger. It may feel good, but the sense of relief is short-lived. In times of crisis, blame-shifting rarely pays off; yet, it keeps happening.

Tammy Darvish owns four Toyota dealerships and one Lexus dealership. Obviously, she has a lot riding on how Toyota has been mis-handling it cascading series of crises.

"I just think the media has sort of sensationalized something that's pretty natural in the manufacturing business," she says.

In other words, are we supposed to go into any new or used car purchase, or lease, with the assumption mechanical problems, and even a recall, are inevitable?

Or, "Is it natural to recall 8.5 million vehicles? Is it natural to recall or investigate 15 of 20 models?" Those questions posed by a clearly surprised Neil Cavuto during an interview on Fox News Channel's Your World.

Her response: "...just in the Detroit 3 (that, of course, being GM, Ford and Chrysler), there were 37 recalls just in the last 12 months..." So, in other words, if you think we've got some problems, check out our competition.

Ms. Darvish did not do the Toyota Co. any favors with this interview. While she may have intended to limit damage, she might have just made things worse. Instead of confronting the issues and facts honestly, Darvish's appearance was a feeble attempt at deflection and an effort to make what seems extraordinary ordinary. She may have thought she was providing perspective, but in reality she leaves a lasting impression that you should buy, or lease, a car at your own risk.

One more point, and it comes from an expert in customer loyalty marketing, rDialogue. In a blog post directed at business organizations and their management, it appears that Toyota has missed a critical element in their handling of this growing crisis: reaching out directly to their customers.

Tiger Woods

By Eric Seidel, CEO
The Media Trainers®

John Edwards, David Letterman, Tiger Woods. Which one doesn’t belong? Yes, they all had extramarital affairs. But only Letterman broke the news himself and thereby took some control over the story.

Edwards tried to play hide-and-seek so long, in the end he looked incredibly foolish. Somehow he thought he could dodge the bullet.

In Woods’ case, he had both those incidents from which to learn and decided on the wrong lesson. He could’ve gotten ahead of this story on his terms, instead of being forced to respond on someone else’s.

A post-midnight one car crash into a tree and fire hydrant, inside an exclusive Florida gated community. The driver: Tiger Woods. Considering the late hour of the “accident” just outside his home, somehow, in your gut, you knew it was much more than it appeared.

And so it was. It took 6 days of intrigue, with the world watching and wondering, receiving at one point an ambiguous online statement.

Inevitably an information vacuum quickly developed, only to be filled by the physics of gossip, rumor, speculation and innuendo.

Finally, on the 6th day, after rumors of one affair with a New York woman, Us Magazine broke the news of a nearly three year affair with an L.A. cocktail waitress. Then, Tiger had no choice. He released a statement on his web site that was reported worldwide within minutes via media like ESPN’s all news channel (click on video).

He had been warned. Two days into the story, NBCSports.com blogger Michael Ventre encouraged Woods to speak up.

Communication professionals could see clearly what was at stake by remaining silent. One in particular, edit30, Insight for Business Communicators, recognized Woods for what he’s become, a brand. And brands live, or die, on perceptions. Communicators understand how news and information are spread today, both in terms of speed and validity. And they learn from the mistakes of others’ past experiences. Unfortunately, their advice is too often ignored, if even solicited.

Known for his uncanny ability to focus and concentrate, just how might this story and the way it was allowed to unravel become an ongoing distraction for Tiger Woods? Or, have we been following this amazing athlete unaware of his superior ability to compartmentalize?

Honest Communication Is Not Optional

By Eric Seidel, CEO
The Media Trainers®

Cyber space is bloated with articles, blogs, video and audio criticizing and condemning businesses and their leaders, helping to form negative impressions. Online examples are easy to find:

The people at the top in general are the subject of a recent blog post entitled The Demonization of Corporate Executives.

A major air carrier, often its own worst enemy as pointed out in this space earlier this year (United’s PR Goes Down in Flames), is the subject of even stronger criticism in the blog of Forbes contributor and marketing expert Shaun Rein, founder of China Market Research Group. He does not mince words in this post: United Airlines' 3 greatest flaws.

When a passenger-filled JetBlue sat on a frozen tarmac for hours on end, the blogosphere went ballistic. One site defaced the JetBlue logo and its promise.

And, in the current angry environment over bailouts, when AIG chose to dish out millions in “bonuses,” the backlash was long, loud and predictable, as noted in this post: Why AIG is Getting Such a Bitter Reaction.

Executives complain they don’t know how to deal with it all. They actually do. It really comes down to wanting to. As pointed out in United Airlines' 3 greatest flaws, the airline’s statements about customer care rang hollow. They were only words, unsupported by the actions of management and employees.

Communication, first and foremost, is critical. Today’s CEO has got to be able to communicate effectively and honestly to a bevy of constituencies. What you say—promise—and how you follow through will answer the question of How Is Your Company Being Perceived?

This era of new media is a double-edged sword. Use it honestly, openly and authentically to protect your name and reputation.

Ignore it at your peril.

Avoid Minimizing Crisis Potential

By Eric Seidel, CEO
The Media Trainers®

When part of one floor of a parking garage in Atlanta collapsed a couple of days ago, the first statement from the construction company that supervised its erection seven years earlier included a troubling paragraph:

“To put this incident in perspective there are 1415 spaces in this deck. One section was involved, and it is estimated that approximately 35 spaces were affected.”

At the time, it was hoped, but not yet absolutely determined, there were no deaths or injuries. Just one death would’ve been tragic, making this part of the statement quite ill-advised.

(Note: the above part of the statement was expunged from a follow up statement by the company president which is on the company’s home page.)

Hardin Construction Co., the lead contractor on the project that included two office buildings had suffered an earlier crisis on another project in which one worker died and eight others were critically injured.

An elevated sidewalk at Atlanta’s Botanical Gardens collapsed last December while under construction. If injuries or deaths were later discovered at the parking garage, the minimizing part of the first company statement would’ve been especially unfortunate in this case.

Lessons from a Crisis Past

TVA's Coal-Filled Christmas Stocking

by Eric Seidel, CEO

The Media Trainers®

“The prescription for remedying any disaster is to demonstrate empathy and to communicate those concerns from those at the top of the organization.”

Bull’s-eye! The above quote comes from the June 3, 2009 blog posting (“Thinking the Unthinkable”) by Ken Silverstein, editor-in-chief of EnergyBiz Insider. It’s an excellent piece on preparing for a crisis before one hits.

Silverstein focuses on the Tennessee Valley Authority’s huge spill of 5 million cubic yards of coal ash shortly before Christmas. A crisis that continues resonating.

Late last year, after observing the first hours and days of that unimaginable catastrophe, Executive Rewind evaluated TVA’s initial crisis response. It was our contention that management was virtually invisible and seemingly inaccessible during the Christmas weekend while residents who either lost their homes, or were surrounded and trapped by the oozing mass, or frightened that the spill was heavily tainted with toxins, were left during that weekend to pretty much fend for themselves. There were no deaths, fortunately, but fears were confirmed when water tests indicated elevated levels of deadly pollutants that killed hundreds of fish.

Also, we made the point that this spill and its handling could not have come at a worse time for the utility industry. The new Obama Administration was less than a month away from taking power along with a heavily Democratic Congress, both with a very sensitive ear honed in on the anti-coal forces in Washington. (Silverstein alluded to these facts, as well, in a May 11, 2009 post entitled “Pouring on Coal Waste.”)

I second the advice Ken Silverstein offers in his blog. And, while his area of expertise is in the energy and utility industries, the wisdom of what he says is applicable to any organization/business, whether large or small. Your good name and continued prosperity might just depend on it.

CNN’s Crisis Vulnerability

Turner CEO Phil Kent








www.themediatrainers.com


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.

TVA Dragged Through its Own Sludge

http://www.themediatrainers.com/

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.

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.

The Internet and the Rules for Handling a Crisis

The Internet presents businesses and organizations in crisis with many new challenges and lessons. Chief among them is that you cannot afford to be an absentee participant when it comes to crisis communications.

That lesson comes through loud and clear in the TVA’s pre-Christmas coal sludge spill in eastern Tennessee. The extent of the flood of gook and the issues and concerns that remain unresolved demand a continued presence by a representative of senior management, on or near the scene and providing regular updates. Yet, TVA CEO Tom Kilgore apparently has managed only two appearances thus far, at a briefing shortly after the containment pool was breached, and then a community meeting a couple of days after Christmas (1st video below). Otherwise, the few bit parts TVA played in media reports were handled by spokespersons and management from the Kingston Power Plant, source of the sludge. Title and media access at a fixed location would’ve afforded a senior manager more of a role in news stories.

In the interim, real and self-appointed environmentalists and some agents of fear were allowed to dominate either through mainstream media or online. On youtube.com, for example, you can find a number of videos. Some are actual news stories from “mainstream” media. But the “library” of videos also includes amateur “reports” that can leave very damaging impressions.

For instance, the nine minute video (2nd video below), apparently of two men in a car confronting a sheriff’s deputy at a road block. They say they want to go through in order to deliver printed warnings and advisories to residents along the river about the potential dangers to their drinking water. They talk about people who have become ill from the water. But, they offer no facts, only rumors and conjecture. In fact, they are not even from the area. They claim they’re from Indiana. We don’t even see them until one makes an on-camera appearance late in the video. (His image is reminiscent of a character from the movie Deliverance, and I’m not referring to Burt Reynolds and friends in the rafting party. On looks, alone, this guy is not someone you would immediately rely on for help or information.)

Cyberspace represents a playing field without boundaries or ground rules. And, while legitimate journalists and others who are guided by a sense of ethics and balance participate, so, too, do many, many others who can “report” without being edited or controlled in any way. Indeed, even the bonafide media give access to anyone with a camera. For instance, CNN’s iReport.com includes 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.”

It appears TVA treated this as a local story that, unlike the pool of sludge, could be contained. But nothing is local any longer. The Internet has guaranteed that. Plus, this spill led a number of national newscasts shortly after it happened.

You need to take ownership of the crisis in representing your organization. The news media always will chase third party and eye witness comments. Those elements can leave lasting, damaging and incorrect impressions. There’s no question that this sludge spill is a major story and the long-term effects remain to be seen. But TVA’s low level participation has allowed the prominence of many damaging impressions, real or perceived, that may never be fully erased by an industry that can ill afford them.

TVA Management Took a Holiday

www.themediatrainers.com

While residents of Harriman, TN, spent the Christmas holiday digging out from several feet of coal ash and sludge, TVA’s senior management was on holiday and apparently unavailable.

Management’s absence once the media reached the scene and started feeding back startling pictures and in-depth stories left huge opportunities for dominant roles by environmental critics and angry, dislocated residents.

This was a lesson in how not to handle a crisis. Basic steps seemingly were either abandoned, or never even considered. They certainly have not been evident.

After a press conference by TVA CEO Tom Kilgore earlier in the week, the giant government-owned utility was represented in news stories by an apparently midlevel spokesmen and clean up crew members. Environmental critics and those living through this nightmare “own” media news stories. For instance, on the morning after Christmas story on NBC’s Today Show (click on video at bottom).

Did TVA establish a command center for regular media updates? Hard to say, but the evidence indicates the Authority did not. With a crisis this large, why wasn’t a senior management representative on scene throughout to provide updates? Did TVA recognize just how big a story this is, especially during a major holiday? As a significant coal consumer, and with a much more environmental-friendly Congress and administration braced to take control of Washington, what, if any, thought was given to the ramifications of this story and the need to maintain a primary role in news reports?

Residents swamped by the goo lost their Christmas and some even lost their homes. All are concerned about the long term environmental and health effects. Early assurances that tests indicate no threats are qualified and more tests are promised. When they hear about things like mercury and arsenic, they are alarmed. And the future threat this sludge has on the drinking water of tens of thousands still is unclear.

TVA's apologies and preliminary reports on tests of the sludge don't do much. Harriman residents and all TVA customers needed to see and hear from senior management on a regular basis, from the scene.

Meanwhile, the energy industry’s controversial case for coal as a fuel for electric generation has been dealt a serious blow. TVA’s low level and low key participation in this situation has handed new ammunition to the arguments of environmentalists opposed to coal in any form and might strengthen their case for a renewables-only portfolio.