Issues & Crisis Management & Conflict Communications

Managing Under the Glare of Public & Media Scrutiny

Prague, Thursday, June 24, 2004

Mike SeymourInternational Director,Crisis & Issues Management

September 11, 2001

Where were you?

Why should we remember this date?

September 11, 2001

September 11, 2001

Le contexte

September 21, 2001

Where were you ?

Why should we remember this date?

Dynamique de la crise

Un accident industriel

Une entreprise dénoncée

Raft of Corporate Disasters

Bali BombingOctober 2002

Paradise Hotel at Kikambala Beach November 2002

Madrid BombingMarch 2004

Saudi Arabia BombingApril 2004

Terrorist Hostage Situation in Saudi Arabia – May 30, 2004

War in IraqMarch 2004

War in IraqMarch 2004

SarsFebruary 2003

Charles de Gaulle Airport DisasterMay 2004

Assessing our Post 9/11 World

Unique set of circumstances pushing issues & crisis management onto news levels?

More of the same – but more extreme & faster?

Assessing our Post 9/11 World

Unique set of circumstances pushing issues & crisis management onto news levels?

More of the same – but faster?

Some key factors:

Growing media hunger for news & competitive edge

Potent power of media to speed, distort or escalate crisis situations

Capacity of public to develop worries into full scares

Difficulties of communicating complex detail & risk

Collapse of crisis borders

Power of rumour & speculation

Issues & Crisis Management & Conflict Communications

Managing Under the Glare of Public & Media Scrutiny

Prague, Thursday, June 24, 2004

Mike SeymourInternational Director,Crisis & Issues Management

Normal Management

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Crisis Zone

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Issues Zone

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What is a Crisis?

Your problem or issue in the public domain

When perceptions become more powerful than reality

When communication vacuums are filled with rumour, speculation, allegations & accusations

Characteristics of a Crisis

Increased NoiseIncreased Noise

Lack of realInformation

Lack of realInformation

SurpriseSurprise

Crisis Management Challenges

Defining the problem in the short term

Then assessing possible long term impact

Crisis Management Challenges

Identifying and planning against worse case scenarios

Information Handling Challenge

Centralising and controlling information flow:

Coming in Coming in

Going out Going out

48%

49%

55%

39%

40%

49%

57%

62%

41%

49%

45%

35%

36%

47%

56%

59%

38%

43%

40%

31%

33%

44%

47%

56%

40%

46%

36%

31%

24%

40%

43%

61%

0% 20% 40% 60% 80% 100%

Greenpeace

World Wildlife Fund

Amnesty International

ExxonMobil

Monsanto

Nike

Ford Motor Company

Microsoft

2001

2002

2003

2004

* “Never Heard Of % ” over 15

US Trust : NGO/Brand Highlights(Tracked 2001-2004)

28%

34%

43%

45%

57%

57%

63%

12%

28%

34%

38%

47%

51%

62%

12%

33%

34%

36%

46%

67%

76%

6%

17%

25%

26%

44%

65%

63%

75%

59%62%

62%

0% 20% 40% 60% 80% 100%

Monsanto

ExxonMobil

Nike

Ford Motor Company

Microsoft

Greenpeace

World Wildlife Fund

Amnesty International

2001

2002

2003

2004

* “Never Heard Of % ” over 15

Europe Trust : NGO/Brand Highlights(Tracked 2001-2004)

Credibility of Information SourcesAbout a Company

20%

22%

24%

30%

31%

44%

32%

44%

18%

21%

21%

27%

30%

31%

34%

40%

44%

24%

0% 20% 40% 60% 80% 100%

Information conveyedby CEOs/ CFOs

A company Web site

The Internet in general

Information conveyedby regular employee

Communications issuedby company

Communications issuedby third parties

Stock or industryanalyst reports

Colleagues

Friends & family

US

Europe

Rank order by US data

In general, how credible do you feel each of the following sources is for information about a company? Is information about a company that you get from (INSERT SOURCE) extremely credible, very credible, somewhat

credible, or not credible at all?

Percentage saying “Extremely Credible” or “Very Credible”

Rank order by US data

11%

13%

18%

24%

46%

21%

19%

25%

25%

41%

42%

51%

53%

10%

13%

17%

21%

23%

29%

29%

47%

51%

54%

20%

17%

42%

23%

47%

20%

15%

37%

6%

33%

38%

41%

43%

0% 20% 40% 60% 80% 100%

Entertainer/ Athlete

Company's PR rep

Union rep

Legislator / Parliamentarian

Lawyer

CEO of company

Broadcaster

Author

Regular employee of company

Religious leader

Banker

Financial/ Industry analyst

President/ Prime Minister/ Chancellor

NGO rep

Accountant

Academic

Average person, like yourself

Doctor or healthcare specialist

US

Europe

In general, when forming an opinion of a company, if you received information from (INSERT PERSON) about this company, how credible would the

information be? Would it be extremely credible, very credible, somewhat credible, or not credible at all?

Percentage saying “Extremely Credible” or “Very Credible”

Credibility of Spokespersons

The Media Context

Background points:

1) Speed and spread of communications

2) Role in increasing levels of education and thus public awareness

Conflict Communication Challenges

Understanding the media’s agenda:

Looking for a good story

Searching for cause

Seeking to attribute blame

Conflict Communication Challenges

Websites - first stop checkpoint

Appreciating the power of new communication channels – all available to the spread rumour, speculation and accusations:

Internet super highway

Chat rooms & bulletin boards

Weblogs & wickis

Email correspondence & battlegrounds

E-crime & terrorism

Conflict Communications - Rumour Control

Rumour equation (10 people = 2-5 stories)

The whispering game

Rumour will always be:

More interesting than the truth

Believed

Embroidered or expanded

Share of voice essential to combating rumour

Observe The Five “CCs”:

CCare are

CCommitmentommitment

CConsistencyonsistency

CCoherenceoherence

CClaritylarity

Communications Guidance

Communications Rules

Observe The Five “CCs”:

CCare are

CCommitmentommitment

CConsistencyonsistency

CCoherenceoherence

CClaritylarity

Credibility & trust depends on The Big Three “TTs”:

TTell ell TThe he TTruthruth

Doing Business in a Dangerous World

“Before 9/11 a poll of US CEOs revealed that:

• 85% of them expected to manage a crisis during their tenure

• 50% admitted to having a plan

• 97% were fully confident that they could handle any crisis

This sounds to me like over-confidence. I hope that more businesses are taking a hard look at their crisis plans”

Ambassador L Paul Bremer, Former Chairman,

US National Terrorism Commission

Harvard Business Review, April 2002

Crisis Readiness & Preparedness

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Seven Step Programme for Crisis Readiness & Preparedness Planning

1) Define risks & threats for which plans issues & crisis plans are required

2) Conduct gap analysis of existing plans, procedures & systems

3) Develop pick up, alert & crisis management & communication protocol

4) Build crisis manual off & on line

5) Awareness & team briefings

6) Specialist training & team building

7) Programme of test & validation exercises & tests

Issues & Crisis Management & Conflict Communications

Managing Under the Glare of Public & Media Scrutiny

Prague, Thursday, June 24, 2004

Mike SeymourInternational Director,Crisis & Issues Management