On February 9, 2021, Logos president Helio Fred Garcia was interviewed by MarketScale about the decision for Boeing’s 737 MAX to return to service for commercial flights. Garcia was interviewed alongside Ludovic Chung-Sao, Founder of ZenSoundproof and former certification engineer for 737 Max engines, about the various aspects of the aircraft’s return to the sky years after the two tragic plane crashed that sent Boeing into a multiple-year long crisis.
During the interview, Garcia described how Boeing ended up in a crisis over the 737 MAX. “The foundational principle of maintaining trust in a crisis is to show you care quickly, and Boeing was singularly unable to show that it cared,” he explained. But he also noted another way in which Boeing fumbled in their crisis response was in the company’s insistence that the planes were safe, followed by ‘But don’t worry, we have a software fix coming.’ This mixed message was confusing, and led people to not trust Boeing’s reassurances. Part of Boeing’s challenges, as Garcia explained, was that Boeing was that the company didn’t appreciate the user experience of the pilots of the plan. The lesson: “In a crisis, you must not think like an engineer, but think like the user of your product or technology.”
00Katie Garciahttps://www.logosconsulting.net/wp-content/uploads/2021/05/HQ-Lambda-Consulting-Lockup-1030x562.pngKatie Garcia2021-02-09 16:02:352021-06-07 10:20:46LOGOS IN THE NEWS: Helio Fred Garcia Interviewed by MarketScale
On November 9, 2020, Helio Fred Garcia spoke with Will Bachman on his podcast Unleashed about how leaders and organizations can understand prepare for, and respond effectively to a crisis. Unleashed explores how to thrive as an independent professional.
During their conversation, Garcia discussed the meaning of the word crisis, several key principles of effective crisis response, and ways that Logos Consulting Group works with clients to prepare for and respond to crises.
00Katie Garciahttps://www.logosconsulting.net/wp-content/uploads/2021/05/HQ-Lambda-Consulting-Lockup-1030x562.pngKatie Garcia2020-11-10 11:04:302021-05-14 07:30:24LOGOS IN THE NEWS: Helio Fred Garcia Interviewed on Unleashed
This is an excerpt from an article posted on Medium on October 31, 2020, by Michael Toebe. In this article, Logos president, Helio Fred Garcia, is quoted sharing key insights and best practices in crisis management, and how McDonald’s can utilize these practices for greater long-term success.
McDonald’s clearly doesn’t see it yet but in its zeal to defend itself in different lawsuits filed by Black franchisees about alleged discriminatory and exploitive practices, it is talking down to and possibly gaslighting minority owners.
This reactive strategy will only serve to escalate media scrutiny, invite more investigative reporting and quite likely confirm beliefs in the Black community about alleged predatory inequality towards people of color.
A $1 billion class action suit was filed in August by 52 former franchisees. Now, another suit has been filed by two brothers, James Byrd, Jr. and Darrell Byrd.
The lawsuits have alleged that McDonalds restricted plaintiffs to stores in poor or crime-ridden areas of town, with lower sales and higher costs, which included higher security and insurance expenses, according to Reuters. Other claims by both former and current owners are of “harsher inspections and renovation requirements.”
These particular stores and opportunities were labeled by some franchisees as ‘financial suicide missions.’”
Business Insider investigated in 2019 and the findings, drawn from 2017 data from the National Black McDonald’s Owners Association, show the average company store location earned $60,000 more per month on average than those locations of Black franchisees.
McDonald’s is offended and must realize how this will look in court and more so, in the court of public opinion and has taken the surprising, if not shocking approach of communicating in a manner that is condescending of the plaintiffs, especially considering the strength of social advocacy in 2020.
“Plaintiffs offer nothing in support of this extraordinary theory beyond vague and conclusory assertions, self-serving speculation on ‘information and belief,’ and a handful of personal anecdotes,” the company has communicated.
This is, however, not unprecedented communication in scandalous conflicts.
“There are predictable patterns in crisis response,” says Helio Fred Garcia, president of Logos Consulting Group. “One such pattern of ineffective crisis response is for organizations to say and do things that feel good to them, but translate as uncaring, defensive or dishonest to those who matter, which in effect prolongs the crisis and causes self-inflicted harm.”
The behavior, arguably arrogant, is a common response before court proceedings.
“The lawsuit remains in its early stages and it is common for corporate defendants to, at least publicly, focus on the their legal arguments and defenses,” says Robert C. Bird, Professor of Business Law at the University of Connecticut and an Eversource Energy Chair in Business Ethics.
“As the lawsuit progresses, some claims may be dismissed while others may proceed onward to trial. While this happens, each side learns more about the strength of the other’s case, creating a background framework for a possible settlement between the parties,” Bird adds.
McDonald’s reactive, unrestrained and demeaning communication and posturing will be remembered negatively by the plaintiffs and critics, stoking the fires of resentment and feeding confirmation bias.
“McDonald’s voiced desire for every operator in its system to thrive while attacking a subset of its operators falls short of demonstrating the care necessary to effectively resolve this crisis,” Garcia says.
00Katie Garciahttps://www.logosconsulting.net/wp-content/uploads/2021/05/HQ-Lambda-Consulting-Lockup-1030x562.pngKatie Garcia2020-11-01 10:51:322021-05-14 07:30:48LOGOS IN THE NEWS: McDonald’s has a Bigger Problem than Defending its Lawsuit Versus Black Franchisees
Last week Cornell University’s Alliance for Science published the first comprehensive study of coronavirus misinformation in the media, and concluded that President Trump is likely the largest driver of the such misinformation.
Lost in the News Cycle
In any other administration this would have led the news for at least a week.
But the report came five days after President Donald J. Trump nominated Amy Coney Barrett to the U.S. Supreme Court. It came four days after publication of a massive New York Timesinvestigation that revealed that President Trump paid no federal income taxes for years. It came just two days after the debate debacle in which the President refused to condemn white supremacy and seemed to endorse the Proud Boys. And it came just hours before the news that the President and First Lady had tested positive for COVID-19.
I wish the President and the First Lady a speedy and complete recovery.
But it is important that this news not be lost, and that the President be held accountable for the consequences of his words, actions, and inaction.
Language, Inaction, and Consequences
I am a professor of ethics, leadership, and communication at Columbia University and New York University. This summer my book about Trump’s language and how it inspires violence was published. I finished writing Words on Fire: The Power of Incendiary Language and How to Confront It in February. But since then the effect of Trump’s language has been even more dangerous.
In the book, I document how charismatic leaders use language in ways that set a powerful context that determines what makes sense to their followers. Such leaders can make their followers believe absurdities, which then can make atrocities possible. If COVID-19 is a hoax, if it will magically disappear, if it affects only the elderly with heart problems, then it makes sense for people to gather in large crowds without social distancing or masks.
There’s just one problem. None of that is true. But Trump said all those things. And his followers believed him. And the President and his political allies refused to implement policies to protect their citizens.
What The President Knew, and When The President Knew It
As I write this, 210,000 Americans have died of COVID-19 and the President is being treated for it at Walter Reed Military Medical Center.
But it didn’t have to happen. Three weeks ago Dr. Irwin Redlener, head of Columbia University’s Pandemic Resource and Response Initiative, estimated that if the nation had gone to national masking and lock-down one week earlier in March, and had maintained a constant masking and social distancing policy, 150,000 of fatalities could have been avoided.
Trump knew about the severity of the virus in February and March.
In taped discussions Trump told Washington Post Associate Editor Bob Woodward what he knew about how dangerous COVID-19 is:
It is spread in the air
You catch it by breathing it
Young people can get it
It is far deadlier than the flu
It’s easily transmissible
If you’re the wrong person and it gets you, your life is pretty much over. It rips you apart
President Trump likes to label anything he doesn’t agree with Fake News. But it turns out that he’s the largest disseminator of misinformation about Coronavirus.
Cornell University’s Alliance for Science analyzed 38 million pieces of content published in English worldwide between January 1 and May 26, 2020. It identified 1.1 million news articles that “disseminated, amplified or reported on misinformation related to the pandemic.”
On October 1, 2020 the Alliance published its report. It notes,
“These findings are of significant concern because if people are misled by unscientific and unsubstantiated claims about the disease, they may attempt harmful cures or be less likely to observe official guidance and thus risk spreading the virus.”
“One major finding is that media mentions of President Trump within the context of different misinformation topics made up 37% of the overall ‘misinformation conversation,’ much more than any other single topic.
The study concludes that Donald Trump was likely the largest driver of the COVID-19 misinformation ‘infodemic.’
In contrast only 16% of media mentions of misinformation were explicitly ‘fact-checking’ in nature, suggesting that a substantial quantity of misinformation reaches media consumers without being challenged or accompanied by factually accurate information.”
But Trump may be responsible for more than the 37% of the news stories that name him. The report says that
” a substantial proportion of other topics was also driven by the president’s comments [but did not explicitly name him], so some overlap can be expected.
Graphic from Cornell Alliance for Science Report
The most prevalent misinformation was about miracle cures. More than 295,000 stories mentioned some version of a miracle cure. (Note that the study looked only at stories that were published before the end of May, long before the president’s statements about a vaccine being ready by the end of October.)
The report notes that Trump prompted a surge of miracle cure stories when he spoke of using disinfectants internally and advocated taking hydroxychloroquine.
The second most prevalent topic, mentioned in nearly 50,000 stories, was that COVID had something to do with the “deep state.” The report notes,
“Mentions of conspiracies linked to alleged secret “new world orders” or ‘deep state’ government bodies existed throughout the time period and were referenced in passing in conversations that mentioned or listed widespread conspiracies. Indeed, President Trump joked about the US State Department being a ‘Deep State’ Department during a White House COVID press conference in March.”
The third most prevalent misinformation was about COVID-19 being a Democratic hoax, mentioned in more than 40,000 stories.
Human Consequences of Misinformation
The report closes with a warning: Misinformation has consequences:
“It is especially notable that while misinformation and conspiracy theories promulgated by ostensibly grassroots sources… do appear in our analysis in several of the topics, they contributed far less to the overall volume of misinformation than more powerful actors, in particular the US President.
In previous pandemics, such as the HIV/AIDS outbreak, misinformation and its effect on policy was estimated to have led to an additional 300,000 deaths in South Africa alone.
If similar or worse outcomes are to be avoided in the present COVID-19 pandemic, greater efforts will need to be made to combat the “infodemic” that is already substantially polluting the wider media discourse.”
In my book, I help engaged citizens, civic leaders, and public officials recognize dangerous language and then confront those who use it. I urge such citizens and leaders to hold those who use such language responsible for the consequences.
I wish President Trump a full and fast recovery. He and those closest to him have now been affected by their own denial of science. I hope that now he can start to model appropriate safe behavior.
But even as Trump is being treated in the hospital his campaign says it will stay the course, including an in-person rally for Vice President Mike Pence the day after the vice-presidential debate in several days. This is both irresponsible and dangerous.
I urge civic leaders, engaged citizens, and public officials, regardless of party, to stop having super-spreader events such as in-person rallies. And finally to begin modeling responsible behavior: Wear a mask, maintain social distancing. Masking and distancing are not political acts; they are a civic responsibility.
As the COVID-19 Pandemic continues to grow, Logos Institute for Crisis Management and Executive Leadership has been advising clients and carefully studying communication by leaders across a range of sectors and forms of organization.
We have reviewed thousands of communications by CEOs, university presidents, NGO executive directors and secretaries general, and public officials. And we have identified patterns that help leaders and their organizations make smart choices and avoid inadvertent self-inflicted harm.
Seven Crises in One
One of the foundational principles of effective crisis management is to name the problem accurately and to understand the true scope and likely risk of the crisis.
I believe that the COVID-19 crisis is actually seven crises in one. Think of these as seven different dimensions of the crisis. There’s a danger that a leader might be so focused on any one of the dimensions that he or she will miss the need to address the others. The seven dimensions of COVID-19 are these:
Public Health Crisis: At its core COVID-19 is a public health crisis. Half a million people worldwide have gotten sick; tens of thousands have died. More will get sick and die before things get better. But now in the United States the public health crisis includes a healthcare delivery system that is being strained to the breaking point. As hospitals in epicenters begin to fill up, there’s also a shortage of medical equipment and personal protective gear. Health workers are at risk, as are other patients.
Business Crisis: COVID-19 presents a business problem for all forms of organizations. There is a cost impact, for most organizations a negative one. There is a revenue impact, mostly negative; for some potentially catastrophic. There is disruption of operations. There is an HR impact.
Economic Crisis: At the same time there is a significant economic crisis underway. The risk of falling into a major recession, very low two months ago, now is quite high. The markets have exhibited unprecedented volatility. Economic uncertainty is wearing on people and institutions.
Information Crisis: From the beginning of the pandemic there has been significant incorrect information, incomplete information, and in some cases intentionally misleading information in the information ecosystem. This information crisis leads to significant misunderstanding about who is at risk of contracting the illness, who can transmit it, and what precautions are appropriate.
Competence of Government Crisis: Not just in the U.S., but initially in China, Iran, and other nations the initial responses were bungled and the virus spread. In the U.S. we have yet to see a whole of government response. Rather, we’ve seen a fragments of government response. Only in the third week of March, and the third month of COVID-19 in the U.S., are there sufficient tests and testing sites. But there is insufficient personal protective equipment for health workers, and a shortage of hand sanitizers, rubber gloves, and masks in retail stores.
Social Crisis: People’s lives have been upended; many people are losing or at risk of losing their jobs. Supermarket shelves are bare. Many companies have ordered employees to work from home; schools are closed or have gone to virtual learning. But there has also been a rise of incivility, insult, and violence against people who have been stigmatized. President Trump’s insistence on calling COVID-19 “China Virus” or “Chinese Virus” has led to a wave of hate crimes against people perceived to be Asian or Asian-American.
Mental Health Crisis: Human beings are social animals, and social distancing is having an effect. Compound this with the fear of the illness, the rising rate of infections and fatalities, and the other dimensions of the crisis, people are fraught. They are fragile. And they need extra care. New York State Governor Andrew Cuomo has asked for mental health professionals to volunteer to work with people not presently under their care to begin to meet this mental health need. I expect other governors will do the same.
Everything is Different
The unprecedented scope of the crisis makes it difficult to predict what will happen next. This crisis is unlike others. Among the differences:
This is unlike prior pandemics. This is the first global pandemic in a social media world. Recent pandemics were geographically contained. Middle East Respiratory Syndrome was mostly confined to the Republic of Korea. Ebola was contained in the United States, and our military and public health experts were able to contain it in West Africa. And this is the first truly global pandemic in the lifetimes of most people in leadership positions.
This is unlike natural disasters. Most organizations are ready or can adapt to natural disasters such as hurricanes, tornadoes, earthquakes, and floods. But those are generally geographically confined and are sudden but short in duration. COVID-19 is widespread and will continue for a very long time.
This is not like ordinary corporate crises. Most corporate crises are limited to a particular company, sector, or geography. But this one affects every organization. And unlike most corporate crises, this one has the additional dimensions of public health, economic risk, information challenges, competence of government, and social dislocation.
The situation is constantly changing. The scope of contagion, the government and society’s response to it, and our understanding of risk to ourselves are in constant flux. In a matter of days we saw an escalation from no large crowds to no crowds at all to stay-at-home orders to full lock-down orders.
This is fundamentally reshaping our understanding of work. As millions of American workers learn how to work from home, and as companies experiment with different modes of delivering products and services, the likelihood of a return to pre-COVID-19 conditions is not clear.
Crisis Response Best Practices
Most ineffective crisis responses begin with leaders asking some version of What should we do? Or What should we say? The challenge with this kind of question is that it focuses on the we – on the entity or leader in crisis. This results in the consideration of options that may make the leader in midst of crisis feel less vulnerable. But it is unlikely to lead to what is necessary to maintain trust, confidence, and support of those people whose trust, confidence, and support are critical to the organization.
What is needed is a different kind of thinking that begins not with the I/me/we/us but rather with the they/them – with the stakeholders who matter to the organization. The leadership discipline of mental readiness – the readiness to shift frames of reference from the first person — I/me/we/us — to the third person — they/them — makes all the difference.
And that’s because of the way trust works.
A common goal for most organizations and leaders in crises is to maintain the trust and confidence of those who matter – shareholders, employees, customers, regulators, residents, citizens, voters, etc. Trust is what makes other elements of competitive advantage possible, from stock price to employee morale and productivity to support of regulators.
Trust, in turn, is the consequence of three related but slightly different things:
Promises fulfilled. These can be explicit promises, or implicit promises such as in a brand identity. If we are seen to break a promise, trust falls.
Expectations met. These can be expectations we set ourselves, such as by making promises. Or they can be expectations set by law or by government order. Or they can be expectations set by society. If we fail to meet expectations, trust falls.
Values lived. When those who matter to us experience us as living our stated values, the result is trust. If those who matter to us experience us as not living our stated values, trust falls.
And one of the patterns we notice is that it is much harder to restore trust once it has been lost than to maintain trust before it has been lost.
Asking What should we do? runs the serious risk of failing even to consider stakeholders’ expectations. Worse, it further risks the leader becoming stuck in his or her own perspective, in I/me/we/us. Hence, such crisis whoppers as BP CEO Tony Hayward’s “I’d like my life back,” or even President Richard Nixon’s “I am not a crook.”
Most crisis response failures can be traced back to the ultimate decision-makers focusing on their own frame of reference rather than on their stakeholders.
The right question to ask when determining the appropriate course of action in a crisis is not What should we do.
Rather, it is this: What would reasonable people appropriately expect a responsible organization or leader to do when facing this kind of situation?
For any stakeholder group we can answer the question, What would reasonable members of this stakeholder group appropriately expect a responsible organization or leader to do? to a very granular level. To the level of all employees, or only those employees in this one facility, or only those employees who were present when something happened. We can inventory those granular expectations for each stakeholder group, and we can then work to fulfill those particular expectations.
But regardless the particular expectations of any given stakeholder group, there is a common expectation that applies to all stakeholder groups all the time: In a crisis, all stakeholders expect a responsible organization or leader to care. To care that something has happened; to care that people need help; to care that something needs to be done.
What it means to care may be different from crisis to crisis, or from industry to industry. What it means to care in the early phases of the crisis may be different from what it means to care in the later phases of the crisis. But that we need to care doesn’t change.
The single largest predictor that trust will fall is the perception of indifference. And silence, when there is an expectation of caring, is interpreted by stakeholders as indifference. And it gives our adversaries, critics, media and social media, and trolls the ability to define us as uncaring, or incompetent, or as lacking integrity.
Applying Best Practices to COVID-19 Communication
As the Logos Institute team has studied institutional response to COVIID-19, we have derived these lessons applying the principle of caring to the pandemic.
Begin all communication, whether written or verbal, with a statement of values, or belief, or intent, or motivation. Don’t dive directly into the facts. Audiences are far more likely to read or listen, understand, and remember when the leader creates an emotional connection first, and that begins with the statement of values.
Show you care. Calibrate communication with empathy.
Be direct: No euphemism. Euphemism is confusing to audiences, especially when under stress. If an employee has died because of COVID-19, say so.
Tell the truth: Avoid misleading half-truths. Remember that you’re in this for the long term. And eventually you’ll need employees to continue to want to work for you, and customers to want to do business with you. If you know that layoffs are likely, and you’re asked whether there will be layoffs, it may be tempting to say something literally true — “At this point there is no plan to lay people off.” This may be true, but the question was not about whether there is a plan but rather about whether there would be layoffs. A better response would be “We haven’t made a final decision, and we will do whatever we can to protect employees, but layoffs are a possibility.”
Address all relevant dimensions of the crisis: public health, business crisis, economic crisis, information crisis, competence of government crisis, social crisis, and mental health crisis. It may be tempting to stay in a single frame, say, business crisis. But your stakeholders are experiencing all seven dimensions of the crisis.
Remember that expectations are dynamic. Yesterday’s expectations may not be helpful today. Calibrate against current expectations.
Communicate at multiple levels. Employees and other stakeholders need to hear from more than the CEO. At this point it is better to over-communicate than to under-communicate.
Align on values; allow granular detail appropriate to each level. Whether the CEO or an EVP or VP or department head or project team leader, there should be alignment on the level of values, belief, intent, or motive. But at each level the granularity should be appropriate to the level of the leader doing the communication.
Convey a positive attitude that balances urgency against the provoking of panic. Effective leaders keep the focus on the future even while demonstrating urgency. But emotions themselves are contagious. Leaders need to stop short of provoking panic.
Express emotion, vulnerability, and humility. Arrogance makes empathy impossible, and it is empathy that gets leaders and organizations through a crisis. Leaders are often reluctant to express emotion or vulnerability. But the most effective ones do.
Get good at being on TV. Whether recording a video for public consumption or conducting a meeting via Zoom or Skype or GoToMeeting, leaders need to get good at communicating through a video camera.
Remember, people are feeling very fragile. People are scared; they’re worried about their jobs and their friends and their families. People’s work lives and personal lives have been upended. And some people are being stigmatized. Now is a time that calls for kindness. Effective leaders care.
New York, NY (Oct. 18, 2016) – The Korean language edition of Reputation Management: The Key to Successful Public Relations and Corporate Communication has been published by Alma Books, a publisher based in Seoul, Republic of Korea. The Korean language book title is 명성 경영 전략. The book is co-authored by Logos Institute executive director Helio Fred Garcia and John Doorley.
Reputation Management is a how-to guide for professional communicators and business executives, as well as advanced students in communication. The co-authors’ work is supplemented by contributions by leading practitioners who wrote chapters or supplemental material on their areas of particular expertise. From Logos Consulting Group these include Anthony Ewing (Corporate Responsibility), Laurel Hart (Social Media), and Raleigh Mayer (sidebar on The Art of the Pitch). The investor relations chapter was jointly written by Helio Fred Garcia and Eugene L. Donati.
“It’s an honor to see the Korean language edition of Reputation Management is published,” said Garcia, “I’m glad that the book will be helpful to leaders and organizations in Korea.”
The English language editions of Reputation Management have been adopted by both graduate and undergraduate programs in dozens of universities around the world. The book serves as the foundation of the curriculum in New York University’s MS in Public Relations and Corporate Communication.
In 2015 Helio Fred Garcia was one of four international crisis experts to speak in Seoul, Korea to government, corporate, and public health officials in the wake of several major crises that rocked Koreans’ confidence in their leaders. Cosunilbo, Korea’s largest newspaper, hosted the Chosun Issue Forum, Crisis Management in Post-MERS Korea. He was also profiled in ChosunBiz, a weekly business newspaper, on recent crises in Korea and around the world.
00Brian Austinhttps://www.logosconsulting.net/wp-content/uploads/2021/05/HQ-Lambda-Consulting-Lockup-1030x562.pngBrian Austin2016-10-18 15:21:432016-10-18 15:21:43PRESS RELEASE: Korean Edition of Reputation Management Published
The most difficult things in the world must be done
while they are still easy,
the greatest things in the world must be done
while they are still small.”
The Tao-te Ching, or The Way and Its Power
Lao Tzu (604-581 BCE)
Let’s simply stipulate that BP’s response to its disaster in the Gulf is shaping up to be the new standard for mishandled crises.
We’ll continue to harvest how-not-to lessons from BP as long as Tony Hayward continues to talk, the oil continues to flow, and beaches, fisheries, wetlands, wildlife, and livelihoods remain at risk.
But what are the deeper lessons?
I believe the key is this: The seeds of what happened after the April 20 explosion were planted well before April 20.
To harvest the most meaningful lessons from BP requires us to look at the sequence of events leading to the fire, explosion, collapse of the rig, death of 11 workers, and the surge of oil into the Gulf.
Prevention More Important Than Response
However important getting crisis response right may be, crisis prevention is even more important.