Tag Archive for: Crisis Management

On Monday, August 28, Logos president Helio Fred Garcia‘s interview on the Shaping Opinion podcast was released. Hosted by communications professional Tim O’Brien, Shaping Opinion is an award-winning podcast that dives into the people, events and things that have shaped the way we think.

In this episode, Garcia and O’Brien discuss ethics and crisis communications. In their exchange, Garcia and O’Brien discuss some of core principles and best practices of crisis communication, the kinds of ethical issues and dilemmas that occur in crisis communications, and how Garcia built his career in crisis management and communication.

Listen to the full podcast interview here.

On April 21, 2022, Logos president Helio Fred Garcia participated in the inaugural Global Brand Convergence, a free online experience for higher education students, faculty, and professionals around the world in public relations and marketing. Garcia participated in a panel discussion on “Crisis in an Enduring Pandemic,” alongside renowned communicator and crisis advisor Dr. Guanpeng (Steven) Dong.

Conceived by Jacqueline Strayer, the Global Brand Convergence was designed to connect and create a community to share ideas, innovations, and concepts to advance them in the classroom and in the profession. The inaugural event boasted more than 500 registered attendees from 50 countries and 54 colleges and universities.

In their session, Garcia and Dr. Dong discussed lessons learned from of how the COVID-19 pandemic was handled by the US and by China and several core principles and best practices in crisis response. Garcia and Dr. Dong have worked together in several capacities over the past 10 years, and in 2019 Dr. Dong was awarded the Logos Institute Outstanding Leader Award.

Watch the full panel discussion, moderated by Iliana Axiotiades here:

In addition to Garcia’s participation in the event, Logos Consulting Group was proud to be one of the sponsors for this annual event. To learn more about the Global Brand Convergence, visit https://www.globalbrandconvergence.com/.

The following is an excerpt of a guest column by Helio Fred Garcia published in the May 2022 issue of PRSA’s Strategies & Tactics

Effective crisis communication can help organizations maintain trust, inspire confidence, and build competitive advantage.

The pandemic, the Great Resignation, political polarization in the United States and war in Europe have made the need for effective crisis communication even greater.

Increasingly PR professionals are being seen not only as communicators, but also as business problem-solvers, who can help their clients navigate the challenges of maintaining the trust of stakeholders in rapidly-changing times where the stakes are increasingly high.

But PR people don’t deserve a seat at the leadership table simply because of our function. We need to earn that seat. And that means we need to elevate our game and become a respected voice when CEOs and other leaders are under stress and worried about their enterprise and their legacy. Take, for example, the common struggle PR people have with lawyers. And how easy it is for CEOs to take lawyers’ well-intentioned advice.

Making the business case

Over more than 40 years I have advised lawyers and been hired through lawyers to advise our mutual clients. I have taught lawyers through bar associations and have trained individual lawyers in crisis management. And I have fought with lawyers; sometimes I have won those fights. And I have learned from lawyers.

A typical interaction is this: In the CEO’s office the lawyer will give all the legal reasons to say as little as possible – ideally nothing – in the early phases of a crisis. The CEO will then look at me.

My reply is not to make the PR case, but to make the business case:

“I believe you have received excellent legal advice. And you should take it seriously. But please recognize that you don’t have a legal problem, at least not yet. You have a business problem. And you need to make a business decision. You need to consider the risk of legal liability seriously. But not exclusively.

You should also consider the consequences of losing the trust of those who matter to you: your employees, customers, investors, regulators, and others. Silence now will be interpreted as indifference, or worse, and will lead to loss of trust of those who matter most to the company. You can protect yourself from legal liability that will play out years from now, but lose the company in the process. Or you can attend to the immediate needs and concerns of your stakeholders now, in ways that manage future legal liability.”

It’s very hard for the lawyers to object to that. But the key is that we need to be in the room in the first place, to make the case directly to the CEO in the lawyer’s presence. Otherwise, the CEO could reflexively take the lawyer’s advice, without considering the short-term implications. And we’d then be tasked with implementing a suboptimal response.

The CEO then typically asks me to advise on what we could say that would pass legal muster. I ask the lawyer about categories of possible communication:

  • Acknowledge: Can we acknowledge awareness of what has happened? The answer is usually Yes, but very carefully. My reply, Great. Let’s do it carefully.
  • Can we express empathy toward those who are affected? The lawyer usually says, Yes, but we need to be careful to not admit blame. Same reply by me:  Great. Let’s do it carefully, in a way that doesn’t admit blame.
  • Can we declare our values? When the lawyers object, I point out that we typically have them published on our website.
  • Can we describe the overall approach we will take to address the crisis and resolve it? The lawyers usually say we need to be very careful. I again reply, Great. Let’s do it carefully.
  • Can we make some kind of commitment? How about a procedural commitment: We’ll update you when we know more. Or a substantive commitment: We’ll get to the bottom of this and fix it.

In essence, when the lawyers say we should say as little as possible or say nothing, they are channeling an unspoken fear that the company’s leaders will say something dumb; something that will not only increase risks in future litigation but also energize adversaries, regulators, and others to come after the company.

I don’t want the company to say something dumb either. But between self-defeating silence and self-destructive blabbering, there’s lots of room to maneuver. This recognition often leads to the lawyers and communicators collaborating early in the crisis to find the balance. It doesn’t need to be adversarial or either-or.

Managing the choices

At a high level of practice, crisis communication is a rigorous process of managing the choices we make with a view on the desired outcome. The discipline is that leaders should never make choices based on personal preference; they usually do so in ways that make them feel less vulnerable that that can infuriate stakeholders.

Rather, we need to have clear criteria on the choices leaders make – of what to do and say, of when to do and say it; of whom to say it to; of who should do the talking. The more rigorous the approach, the more likely we’ll be seen to be business problem-solvers, and to be in the room before decisions are made.

 

Read the full article and more here.

On January 21, 2022, Helio Fred Garcia was featured in an article on Communication Intelligence about a recent webinar Garcia led for the Public Relations Society of America (PRSA).

The webinar, titled “Maintaining and Restoring Trust in Times of Great Change,” focused on the drivers of trust and techniques to maintain and restore trust in times of crisis.

In this interview, Garcia shared some of the core ideas and key takeaways from his webinar on January 20.

“Trust is the natural consequence of three related but distinct factors,” Garcia explained. He then described each of these factors in detail: promises kept, expectations met, and values lived. When you take these drivers of trust seriously, you are more likely to ask the right questions and make smart decisions in a crisis.

Garcia also explained one of the key reasons why organizations and leaders struggle to respond to crises effectively.

“Most failed crises arise when leaders fail to think of the crisis from the perspective of stakeholder expectations, but rather start from their own personal preferences, fears, anxieties, etc. This is the case in celebrated failed crisis response, from Volkswagen to BP to United Airlines to Trump COVID,” Garcia explained. “Making decisions in a crisis from personal preference is a mark of poor leadership and nearly always makes the crisis worse.”

Click here to read the full article.

The following is a guest column by Helio Fred Garcia, originally published on CommPro.biz on January 3, 2022.

This week marks the start of the third year of the COVID-19 pandemic in the United States.

By the end of 2021 more than a half million Americans were catching COVID-19 every day. One in every six Americans had come down with the virus; one in every four hundred had died.

Much of this was avoidable. And we return from our holiday facing the latest surge and wondering whether it’s safe to reopen as planned.

COVID-19, Crisis Management, and Leadership

Since the beginning of the pandemic, the United States has mounted the worst COVID-19 response in the developed world. In 2020 the American response was driven by incompetence, dishonesty, and neglect.

2021 began with a glimmer of hope, and by April – when vaccines became universally available – the daily death rate plummeted.

But by late June both vaccinations and masks became highly politicized and deaths began to soar again. By year end hospitals were at capacity; the overwhelming percentage of hospitalizations and deaths were among the unvaccinated.

 

https://www.commpro.biz/?s=crisis+management+helio

Illustration 1, Source: New York Times

 

But there is opportunity in every crisis. COVID-19 provides an active case study to learn not only about public health, but also foundational principles of crisis management. As the Greek philosopher Plato said in The Republic, if you want to understand something difficult, study the biggest instance of it that you can. Then apply those learnings to smaller matters. There’s no bigger crisis right now than COVID-19.

For decades in my crisis management practice, I have preached that the severity of an underlying crisis does not determine how the crisis turns out. Two organizations in the same crisis at the same time can have dramatically different outcomes. Rather, the timeliness and quality of the response determine whether or not an organization suffers a catastrophic outcome. Act effectively and quickly and the crisis resolves or plays out with minimal damage. Delay, deny, or dither and things get disproportionately worse.

It is uncommon for multiple organizations to go through the same crisis simultaneously. But COVID-19 is a crisis with which every organization around the world has been grappling. We now have experienced a kind of laboratory experiment of how different jurisdictions responded to the pandemic differently. We can track the different outcomes. We can learn from them. And we can apply those lessons, not only in the continued pandemic response but in future crises, as well.

Crisis Management Works

All the trends point to a common conclusion: Crisis management works. But only when we manage the crisis effectively. Failing to follow crisis management principles can have devastating consequences. There are four rules that lead to the successful resolution of a crisis:

  1. Take the crisis seriously.
  2. Take the risks seriously.
  3. Mitigate those risks.
  4. Act quickly: the longer it takes to mitigate the risks, the harder it is to do so.

We can see clearly how the death rates in different jurisdictions varied based on leaders’ adherence, or lack of adherence, to these rules.

Continue reading here.

The following is a guest column by Helio Fred Garcia, originally published on Forbes on October 19, 2021.

In mid-September the United States passed a tragic milestone: one in every 500 Americans had died of Covid-19. By early October, it was one in every 469 Americans. And counting …

For decades in my crisis management practice, I have preached that the severity of an underlying crisis does not determine how the crisis turns out. Two organizations in the same crisis at the same time can have dramatically different outcomes. Rather, the timeliness and quality of the response determine whether or not an organization suffers a catastrophic outcome. Act effectively and quickly and the crisis resolves or plays out with minimal damage. Delay or dither and things get disproportionately worse.

It is uncommon for multiple organizations to go through the same crisis simultaneously. But Covid-19 is a crisis with which every organization around the world has been grappling. We now have experienced a kind of laboratory experiment of how different jurisdictions responded to the pandemic differently. We can track the different outcomes. We can learn from them. And we can apply those lessons, not only in the continued pandemic response but in future crises, as well.

Crisis Management Works

All the trends point to a common conclusion: Crisis management works. But only when we manage the crisis effectively. Failing to follow crisis management principles can have devastating consequences. There are three rules that lead to the successful resolution of a crisis:

1. Take the crisis seriously.

2. Take the risks seriously.

3. Mitigate those risks.

We can see clearly how the death rates in different jurisdictions were different based on leaders’ adherence, or lack of adherence, to these rules.

A Tale Of Two Nations: Republic Of Korea And United States Of America

On January 20, 2020, the U.S. had its first confirmed Covid-19 case. That same day the first confirmed Covid-19 case was recorded in South Korea.

Unlike the U.S., South Korea took the crisis and the risks seriously. Six years earlier, it had been burned by its mishandling of a public health emergency that had led to dozens of deaths and that had almost brought down the government. Not this time: No dithering, denial or delay.

Initially, South Korea had the highest Covid-19 death rate outside of China. But its leaders quickly worked to mitigate the risks. They launched a whole of government response. In particular, South Korea followed all the mitigation guidelines that the U.S. Centers for Disease Control and Prevention (CDC) advised. These included mandatory masking, distancing, quarantines, contract tracing and testing. And it worked. Infection and death rates plummeted and have stayed low.

The United States did not take the crisis or the risks seriously, nor did the U.S. act to mitigate the risks. President Trump and his allies persistently denied or downplayed the reality of the virus.

The United States never had a whole-government response. And the nation never consistently followed CDC guidelines. In 2020, leaders, including the president, rationalized away the risks. They failed to model safe behavior, even including the wearing of masks. They continued to have large unmasked gatherings. And the pandemic itself became inexorably tangled into the politics of a presidential election, with large numbers taking sides about the reality of the virus itself, a disturbing trend that continues to this day, nearly a year after the election.

But public health experts have been sounding the alarm about the risks for more than a year. Last October, Columbia University’s National Center for Disaster Preparedness concluded that of the 217,000 American Covid-19 fatalities to date, as many as 210,000 could have been prevented by taking appropriate precautions. At the time the U.S. had the highest Covid-19 rate among peer countries. Korea had the lowest.

At about the same time, the venerable New England Journal of Medicine said that the U.S. had failed at every step to take effective mitigation steps and said Americans were dying because of a leadership vacuum.

In February 2021, the British medical journal Lancet noted that as many as 40% of American Covid-19 deaths could have been avoided.

Even after the vaccines became widely available, the seeds of distrust and division continued to hamper mitigation efforts, especially in states whose governors forbade mask mandates and where vaccine hesitancy prevailed.

By late September 2021, American deaths had surpassed two round numbers — one in 500 Americans, for a total of 700,000 deaths. Columbia University Professor Jeffrey Sachs noted that if the U.S. had done what was necessary to keep the death rate the same as our peer countries, 650,000 fewer Americans would have died.

So, what is the current Covid-19 death rate in South Korea compared to the U.S.? One in every 20,000 South Koreans, compared to one in every 469 Americans.

South Korea followed the three crisis management rules:

1. It took the problem seriously.

2. It took the risks seriously.

3. It did what was necessary to mitigate those risks.

The United States did not. The difference: American Covid-19 deaths are at 42 times the rate in South Korea. Most American fatalities were preventable, especially after the vaccines became available to anyone willing to take them.

We see at the national level dramatically different outcomes to the common crisis. There are many lessons we can harvest from the tragedies — including the dangers of misinformation and of political polarization of science. But the crisis management lesson, devoid of politics and ideology, is clear: In a crisis, take the crisis seriously, take the risks seriously, mitigate the risks fully. The outcomes will be far less devastating.

On September 3, 2021, Logos President Helio Fred Garcia was quoted in Loss Prevention Magazine on how 7-Eleven has invested in technology to better execute crisis communication.

 

7-Eleven has heavily invested in both crisis communication processes and software to ensure both company leadership and franchisees can share information with each other and report on specific needs and issues.

 

Garcia noted the importance of having multiple communication channels available for times of crisis to lessen any communication gaps in times of crisis. “You also need to plan for redundancy in the manner of delivering messages. If phone lines are down if the email is down, you still need to communicate,” he explained.

 

Read the full article here.

On July 1, 2021, Logos President Helio Fred Garcia was featured in Reputation America on crisis management strategies and steps for leaders to mitigate crises effectively.

The article excerpts a speech given by Garcia on crisis management. The article includes excerpts on how to define a crisis, types of crisis readiness, common crisis missteps, how to manage social media in a crisis, and how to ask the right questions in the right order to get through a crisis well.

“The biggest mistake is to attempt to improvise in the crisis and ask the wrong questions in the wrong order. Concern about how to deflect blame or protect one’s own job is not the best strategy in crisis communication management. Companies need to resolve the stress and be rigorous in managing crises,” said Garcia.

Read the full article here.

On June 11, 2021, Logos President Helio Fred Garcia was quoted in Idea Grove, sharing his advice on how to manage an organization’s reputation in a ‘post-truth, cancel culture world.’

Scott Baradell, CEO of the unified PR and marketing agency Idea Grove, states that in 2021 brands must be prepared to go on the offense by preparing for the foreseeable, thereby softening the blow to a brand’s reputation should a crisis occur.

In this article, professional communicators share their ideas for reputation management. Garcia’s advice: run a simulation.

“Simulations can be really valuable learning opportunities for leadership teams to assess their current ability to effectively address organizational risks, without the high stakes and consequences of an actual crisis,” he explained. “Simulations can also be custom-designed to target vulnerable areas of the organization (e.g. ability to respond to customer complaints on social media) so leadership can more quickly strengthen their response capacity to a specific risk or area of concern.”

Read the full article here.

This is an excerpt of a guest column by Helio Fred Garcia, originally published in the May issue of PRSA’s Strategy & Tactics.

A foundational principle of any organization’s crisis response is that indifference to the situation is toxic. Leaders must show they care. This was true before COVID-19 and it will become even more essential as we recover from the pandemic, which has been the most disruptive crisis most of us have ever faced.

To be clear, the need for leaders to care during times of crisis is neither sentimental nor soft. Rather, caring is a necessary discipline for leaders — a fact made clear when we analyze the factors that build trust and reputation.

For all organizations, a common goal in every crisis is to maintain or restore the trust of stakeholders — which include investors, employees, customers, suppliers and increasingly, communities. And it’s much harder to restore trust after it’s been lost than to maintain that trust in the first place.

Trust is the natural result of promises fulfilled, expectations met and values lived. When people experience a company fulfilling its promises — whether those promises are explicit or merely implied by a brand’s identity — their trust in the organization remains or increases. When people see a brand break its promises, on the other hand, their trust in the organization falls.

Similarly, when customer expectations for a company are met, trust in the brand remains or increases. But when leaders or companies fail to meet those expectations, trust erodes.

Such expectations can be set by the company itself, through explicit or implicit promises and/or through precedents set by the organization’s past behavior. Consumer expectations also derive from laws and social mores, which change over time. Company leaders should always stay abreast of social expectations.

When it comes to the trust that rises or falls according to the values lived by a business, the company’s stated values set an expectation. When people experience a company living up to its stated values, their trust remains; conversely, when they see a company failing to live up to its stated values, their trust diminishes.

One of the disciplines of effective crisis response is to get the decision criterion — the basis of choice — right. A poorly handled crisis often results from leaders making decisions based on what scares them least. In times of crisis, leaders need to make decisions based on the tested criteria that determine trust.

 

Caring builds trust

When deciding how to respond in a crisis, leaders do well by first identifying their most important constituents and then asking themselves: What would reasonable people expect a responsible organization to do in this circumstance?

Reasonable people don’t take their cues from internet trolls or bots, from critics or adversaries or even from the news media or social media. Instead, reasonable people respond to those they trust and to those whose trust they need for themselves. Reasonable people have expectations that are appropriate to the crisis, to the harm that people have experienced and to the kind of organization that is experiencing the crisis.

A responsible company asks what reasonable people would expect it to do, which leads to the company having a fuller array of predictably helpful options.

Consider, for example, the scenario that an explosion has occurred at a factory. Reasonable people won’t expect a responsible company to immediately know what has caused the blast. Reporters will ask for an explanation and people on social media will speculate, but stakeholder trust won’t dissolve simply because the company doesn’t know the cause at the time of the explosion.

Reasonable people will expect the company to acknowledge what has happened, to work with first responders to rescue those inside the factory and to provide for the families of employees who were injured or killed.

We can inventory the specific expectations of different stakeholders — including employees and more particularly, those workers directly affected by the disaster; customers and more precisely, those who have used a certain product from a certain retailer on a certain date.

Regardless of the nature of crisis an organization faces, every interested party shares a common expectation: that the organization and its leaders will care. Customers, employees, investors and others expect leaders to care that the organization’s processes, systems or judgment have failed; that as a consequence people have been placed at risk and need to be protected; and that the company may need to make changes to prevent similar crises from occurring again.

In any crisis, what it means for leaders to care can vary according to the circumstances, but the need to care is universal. At a basic level, caring means that leaders mitigate any ongoing risk to people and help them out of the crisis.

 

Building for the future 

In the past year, half a million Americans have died from COVID-19 and 30 million others have been infected by the virus. The pandemic crashed the economy, forcing hardships on many people. Collectively, our mental health has suffered from the stress of the coronavirus outbreak, including the strain of being confined in our homes. How we work has changed, perhaps forever. At the same time, social and political divisions seem to be growing, not shrinking.

Having suffered these hardships, people are fragile, exhausted and vulnerable, even as they try to feel hopeful for the future.

Leaders should know that people need them to care, now more than ever. Some leaders might feel tempted to assume (or to hope) that everything has already returned to normal, so they can step on the accelerator for their businesses. And in non-crisis environments, that may be the case. But for leaders of organizations still recovering from the pandemic, the need for caring has only increased.

Caring requires empathy; and empathy requires humility. Leaders who have successfully guided their organizations through the pandemic have demonstrated humility within themselves and expressed empathy for others. As we move into recovery, we can follow their example.

Read full article here.