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Saturday 29 January 2011

6 main principles of PR in the crisis situation




 
Sometimes there are situations when negative information about the company goes out of control and threatens the business. That may be true, as in the case of batteries ignition in laptops of famous manufacturers or falsification as "syringe panic" around the Pepsi in 1993. Every crisis is different, but there are some general guidelines that will help find a way out. Following them, PepsiCo is not only out of the crisis, but even broke a five-year sales record.
  1. The speed and stay ahead. When the situation got out of control, the company is in the "catching up" position. The first day of the crisis is a crucial time, to be followed by the reaction of the company. Procrastination creates an information vacuum. Do not even hesitate, it will be immediately filled with rumors, speculation and commentary competitors.
  2.  Information transparency. It is necessary not only to provide the media with all the necessary information, but also to answer questions of  any audience in sufficient volume. In 1993, PepsiCo made visits of the journalists to the company's factories, helped in the shootings, explained in detaisl the principles of equipment work and why the syringes were not physically able to get into the cans with drink. Moreover, even ordinary Americans could call the company and ask a question. Dozens of people were ready to respond the hotline anytime. Every question that remains unanswered is food for speculation. Any lack of information immediately filled with rumours. If the crisis was provoked by the company enemies, they will take advantage of the situation. For example, you can be asked what kind of material is used for the bottles plug for the drink. If you leave the matter unattended, you can soon crawl rumors that  you make plugs of lead or  uranium. Audience will "eat" any even unbeliavable information. Better say that plugs are made of special plastic, that passed every kind of  test, non-toxic and hypoallergenic.
  3.  Honesty. Honesty is the best policy. This proverb has a financial basis. It would be naive to believe that the controversial moments are not interestin for the journalists. If journalits are interested, you can be sure: sooner or later the truth will come out. Hiding the truth and the destruction of documents could not save Enron, but at the same time has ruined the once prosperous auditing company Arthur Andersen, involved in the scandal. If the company made a mistake or there was an accident at the enterprise , it is better to openly admit it, be the first to announce the comments and action plan. So did Deutche Bank, which in 1994 became the victim of a swindler Schneider. It was a severe blow to the reputation. The Bank didn't not just admit his mistake, but also funded the completion of projects initiated by Schneider. "No worker will pay for our mistakes," - said the press service of the bank.
  4. Initiative. You must become the main source of news about what's happening around your company. Even if you have to disclose negative information, it is better to do it yourselves. In any case someone gets the initiative, and better, if you are, because then you will be able to give your own interpretation of events.Make media play according to your rules. The mechanism of action is simple: journalists like to receive information before anyone else. Give it first, and journalists will take it from you. Provide enough information, with details and reporters won't  seek it  from other sources. Provide information in advance, and then the alternative source would be simply uninteresting.
  5.  Coordination. It is important to understand that any disagreement within the company will be interpreted not in your favor. If the manager says one thing and his deputy simultaneously gives an interview where he says the opposite, the affair receives an unfavorable version. In a crisis, the fact of disagreement within the company itself  undermines the credibility and confidence in the case of crisis - it is the second key factor after time. PepsiCo in its time wasn't only carefully instructing their employees what and how to say about the case, but was also sending out the information to all their members and connected businesses.
  6. Work with multiple levels. In a crisis, the audience is not limited to the media. People at PepsiCo worked on several levels:
  • Media: Press conferences and visits to enterprises were organized to journalists; consultants worked to provide journalists with any sufficient information,informational materials were prepared, even the details of packaging technology were given to the media.
  • Consumers: Special informational videos were provided for consumers (videos were even launched on satellite channels), in broadcast and traditional media explaining why the syringes just physically could not get into the can with Pepsi.The company distributed information directly.Special hotline was organised, and any citizen could ask a question.
  • Employees and partners: The staff was given the information about  the incident and the correct interpretation of events. And all the partners of the company were given the detailed information.
  • Governmental organizations: PepsiCo didn't only cooperate with the FDA, but  actively participated in the investigation and provided full access to information.There were other groups such as company's shareholders. For each group specific arguments and information is given, it is delivered to the  audience by the appropriate kinds of channels.

To cut it in a nutshell I can say, in a crisis situation the company must respond quickly, act in advance, work in coordination to get the initiative and become the main source of information at all levels and avoid the information vacuum.

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