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MLB and Barry Bonds: Embrace Him or Erase Him?
2007-05-17 00:10:20
Today, Barry Bonds inches closer to breaking the home run record set by Hank Aaron more than 30 years ago. Baseball fans—according to some, divided along lines of race–hotly debate Bonds’ record book eligibility. And, because Major League Baseball has backed itself into a corner, it is doing the only thing it can do: nothing. MLB cannot embrace Bonds because, while he hasn’t been found guilty of using illegal steroids, he is surrounded by the BALCO controversy and associated with others who have pled or appear guilty. The long-term risk is untenable. At the same time, Major League Baseball cannot condemn a man who is, to date, innocent. So right now we see MLB gently observing and applauding Bonds without taking the lead. The question for Major League Baseball is, at the end of the day, do you embrace or erase Barry Bonds ? Because of its lack of action years ago – when it could certainly see the bionic drug problems on the horizon, but made the decision to do noth
Read more: Erase

JetBlue/Neeleman Message to CEOs: Boards Value Long-Term Risk Management over Crisis Response
2007-05-11 02:45:37
JetBlue’s founder and CEO David Neeleman stepped down today when his board suggested that he ‘could best serve the company as a strategic visionary.’  According to the board and Neeleman, this was in the works for quite some time and has nothing to do with the February 14th flight delays. However, it’s hard not to hear the message being sent:  Board members value long-term risk management over immediate crisis response.  Even nearly heroic crisis response measures aren’t as important as an aversion to risk. There are several lessons that other CEOs and boards can learn from this situation: It comes down to money: JetBlue says this was planned for some time, but it’s highly likely that the Valentine’s Day disruption hastened the board’s decision. Despite his very strong leadership, David Neeleman is learning the unfortunate reality that, at the end of the day, ROI is what matters. The bottom line is the bottom line. Manage risk over c
Read more: JetBlue , Message , Value , Management , Crisis , Response

Will Jail Time Harm ‘Brand Paris’?
2007-05-08 01:41:43
Paris Hilton is going to jail for 45 days. But will this latest in a series of ‘scandals‘ be a speed bump or another launching ramp in her ‘career?’ The rules for the rest of us are different than celebrities, particularly celebrities who are famous for being famous. My feeling is that, all judgment aside, her most recent brush with the law won’t harm her brand in the short term, and, in the upside down world that is entertainment, will help it. You can already see her new book, album, and television spin-off: “The Simple Life in the Big House.” Her new publicists are no doubt managing calls this week on who gets the exclusive. For a while, almost anything she does, as long as it is victimless, will build her naughty girl brand. However, from a public relations point of view, Paris’ law-breaking behavior will garner a different reaction when: She starts a family: If Ms. Hilton becomes a mother, the public will measure her differently. If and whe
Read more: Brand , Paris

The 9 Steps You Need to Take if You Think You’re on The DC Madame’s List
2007-05-04 20:26:20
The whole Deborah Jeane Palfrey, AKA ‘The DC Madame ‘ situation is a fascinating one, and a barometer by which Washington, DC determines who is ‘powerful.’ ABC won’t (and can’t) embarrass all 10,000 people whose numbers show up on Palfrey’s phone records–and heaven forbid she called her plumber or ordered pizza from that phone–but they and other media will go after those who are the most easily embarrassed, e.g. those in power and those who have the most to lose. The first targets will be people whose public actions or persona would make their interactions with Palfrey appear the most hypocritical. Case in point is Senior State Department official Randall Tobias, who preached abstinence as part of his job and resigned shortly after receiving ABC’s call. If You Think You’re on Palfrey’s List What if you fear you’re on Ms. Palfrey’s list? Rather than waiting to see if 20/20 mentions you in tonight’s b


TJX: Putting Wall Street before Main Street
2007-05-04 20:25:49
Today’s lead story in the WSJ How Credit-Card Data Went Out the Wireless Door is as much about what not to do when a company is caught in the crosshairs of a crisis as the JetBlue story is an example of the right thing to do. From a crisis PR perspective, TJX appears to have worked hard to turn themselves from victim to villain, making three classic communications errors: They waited too long. TJX waited for engineers to be satisfied that they understood the depth of the problem, resulting in at least a 60-day delay of action (resulting in investigations by 30 state attorneys general.) They put lawyers in charge of communications. Lawyers play a critical role in crises, but directing communications should not be one of them. When TJX made their long awaited announcement and subsequent apology, their apology was not written with their customers–the real victims in this situation–in mind, but instead read like a letter written
Read more: Putting , Street , Main Street

XM Radio’s Crisis Plan: Going Dark and Hoping No One Was Listening?
2007-05-23 13:29:34
This week’s XM satellite radio outage is interesting in a number of ways. XM chief execs have a vested interest in remaining squeaky clean prior to their proposed merger with satellite radio competitors Sirius. They have the advantage of observing how RIM poorly handled BlackBerry outage in two countries and to learn from that. The discounts they’ve offered customers for the outage is generous. Critically now, they must fully appreciate the real take-away: that XM radio is a utility, not a luxury. As such, they need to deal with outages just as expeditiously and to communicate as widely as the water, telephone, and electric companies. Because these luxuries have become utilities, providers will be held to the higher communication standards that public utilities are. Businesses whose services have become utilities must have a communications plan ready to go. There are two main areas where XM Radio could have done a better job: 1. Lack of communication: Despite having their c
Read more: Crisis , Going , Listening

The Power of Pictures: The Impact of Comey’s Testimony on Alberto Gonzales
2007-05-22 08:38:18
From cave drawings, to picture books, to a ghost tale spoken in hushed tones around a campfire, human beings are always interested in a good story. We begin to truly communicate when our stories have pictures that our audience can see or imagine. It is how we empathize, which is the highest form of listening. The reason I’ve been thinking about all of this is because of the recent testimony by Deputy Attorney General James Comey, and the impact it’s had on the Alberto Gonzales attorney scandal. Comey’s testimony took an experience that doesn’t conjure up mental imagery—a constitutional crisis of the highest order—and transformed it into a universal image. After all, who can’t imagine an older man, sick and slightly disoriented in his hospital bed, with two able-bodied (and perhaps ill-intentioned) men bursting through the door? That’s certainly much easier for the average American to envision and develop an emotion around than abstract concep
Read more: Pictures , Testimony , Alberto Gonzales

Executive Compensation: DCX’s ex-CEO Shows why Measurable Metrics Are So Important
2007-06-08 10:21:22
Another day, another headline about executive compensation. This time it’s DaimlerChrysler AG’s ex-CEO Juergen Schrempp who, according to reports, will make $134 million from the sale of Chrysler Group to Cerberus Capital Management–this, after some critics argue that he was at the helm of the Chrysler deal from start to finish that ultimately lost $12.6 billion for investors. With numbers like these, no matter how you feel about a particular executive or the job they have done, it’s no wonder that executive compensation is a hot button in corporate America. This is due to the fact that, with some notable exceptions, most CEOs are paid enormous sums of money. Most, however, don’t take the time to lay out the groundwork–with employees, stockholders, analysts, and the public–that they deserve that large salary. Does that mean that all CEOs should make a $1 salary, or have their compensation awarded in stock to ‘prove’ their long-ter
Read more: Executive , Compensation , Metrics

When Should the CEO Join the Online Conversation?
2007-06-13 12:37:40
Allen Weiss, President and CEO of NCH HealthCare System recently wrote a guest column in the Naples Daily News responding to an editorial that had been critical of the pay that he and other NCH executives received. The guest column itself is interesting, but even more interesting is the litany of comments his op-ed piece generated (scroll down past the article to read them). As of the time I’m writing this post, no representative of NCH–including Weiss–has responded to any of the comments. Which brings us to our question–with blogs, commenting functionality on online newspapers and other ways of people interacting directly, is there a time when would behoove a CEO to hop into the proverbial trenches and communicate directly with the people? The answer is yes–and the sooner the better. If you’re a CEO who has his/her own blog, or you have a long history of being active in forums, blogs and other communities prior to a crisis in your company occurring
Read more: Conversation

Is Media Interest the Ruling Measure of Justice?
2007-06-20 12:25:03
As a North Carolina judge suspended Mike Nifong, the disgraced prosecutor whose actions veritably define prosecutorial excess, I can’t help but think of another story–a story as tainted with elements of racism, sexism, and elitism as the Duke lacrosse scandal. But the story I’m thinking of has ended on a radically different, and an even more profoundly disturbing note. You may remember hearing about Lamar Owens, the African-American Naval Academy quarterback who was accused of raping a white female classmate. Recently Owens was court-martialed and subsequently found not guilty of the crime. The accuser recanted. Even though the jury did not recommend any punishment, Naval Academy Superintendent Rodney Rempt, after initially recusing himself from the trial, somehow un-recused himself for the punishment phase, seemingly going out of his way to penalize Owens. Simply by virtue of being innocent of rape, Owens was now guilty of consensual sex in the dormitory, a violation of
Read more: Interest , Measure , Justice

Wellpoint Had No Choice but to Fire Colby
2007-07-02 10:57:36
Note to executives doing less-than-scrupulous things during their ‘down time’: Let the recent situation with Wellpoint SFO David Colby serve as a warning to you. Should your personal life start to impede on your professional life, your company may have no choice but to let you go. As far as I can tell (and granted, I wasn’t in the internal meetings held among Colby and senior management) Wellpoint’s senior managers had no other choice but to do what they did. The executives of the health care company have an obligation to protect their brand, their company, their board and their shareholders. With recent changes to Sarbanes-Oxley regarding corporate ethics, companies have a vested interest in being more decisive on these kinds of actions, and in protecting their ethical culture. Colby’s situation was aggravated by two factors–the nature of his job, and the nature of his indiscretions. Colby’s position gave him fiduciary responsibility; his character an
Read more: Choice

And Speaking of the Fourth Estate…
2007-07-04 14:05:39
Thomas Friedman had an interesting op-ed in last Sunday’s New York Times about how technology has allowed anyone and everyone to be a photographer, moviemaker, and reporter. Cameras on cell phones, YouTube, and the rising number of blogs (like this one) allow people to share gossip, rumors, opinions, speculation, and insights. Friedman is right, of course. When the new Fourth Estate is anybody with a cell phone, blog, camera or video camera, you are always on–whether you’re sitting at the airport, entering the restroom, or leaving an angry voicemail on your daughter’s mobile phone. The higher you go–the more powerful you are, the more well-known, the more prestigious your position–the more you are a target. In an era where news charades as entertainment, there is nothing more entertaining than taking a former hero for a fall. If you’ve got farther to fall and more to lose than the guy standing next to you, just remember that that guy may be poi
Read more: Speaking

That’s Entertainment!
2007-07-03 15:39:50
When Paris Hilton was recently released from jail, or when she went back to jail after being released the first time, one only needed to turn on the television to confirm that the Fourth Estate, long on life support, is now near death. Case in point: The Project for Excellence in Journalism found that Fox News dedicated a mere 6 percent of its daytime programming hours in Q1 2007 to coverage of the war in Iraq–by contrast, Anna Nicole Smith’s untimely demise captured 17 percent of daytime coverage during the same period. Twenty years ago, with the reversal of the Fairness Doctrine, media conglomerates focused as never before on serving the dual masters of profit and public service. With Paris Hilton, any balancing act that was intended is clearly over and profit, always the heavy favorite, has won. There’s nothing wrong with news becoming entertainment, as long as we realize this ‘news’ is no longer independent, unfiltered, substantive, or socially valuabl
Read more: Entertainment

U.S. Food Companies Should Keep An Eye Toward Future Trade
2007-07-08 19:53:06
The U.S. Food and Drug Administration’s recent alert on farm-raised Chinese seafood is only one of the latest developments for an issue that has been brewing quietly for years now. You can expect to see many more news stories about Chinese food and consumer product imports like those about pet food and toothpaste. But U.S.-based food producers with an eye toward trade would be warned against loudly criticizing the products that have become so integral to our economy and our day-to-day lives. The FDA–and Chinese government officials–are actively working to ensure food imported from China is safe. U.S. food companies should support them in their efforts, and let them do their job–tell your consumers how your company is cooperating with FDA efforts, but stop short of comparing Chinese and American food safety practices or pointing fingers. A hot-headed approach could ignite a national firestorm of protest against Chinese products; if that happens, we should expect
Read more: Companies , Toward , Future , Trade

Diversity Programs Not a Priority? They Should Be.
2007-07-13 13:18:47
This month’s issue of Inside Counsel features the results of its recent general counsel survey where, among other questions, counsel was asked to rank the most important factors in hiring outside counsel (PDF; page 5). Unsurprisingly, ‘quality of work’ and ‘responsiveness’ were both top-ranked, with ‘creative solutions’ and ‘billing rates’ not falling far behind. What was surprising to us, however, is how low ‘diversity program’ ranked in survey results. According to Inside Counsel, “Both in-house counsel and law firm lawyers agree that having a diversity program [is one of the] least important factors when general counsel pick a firm.” From a communications standpoint, this kind of thinking is dangerously reactive. Consider this: Every year, media compiles a list (PDF) of the most and least diverse law firms. If your firm falls low or last on the list, diversity programs–and your communication abou
Read more: Diversity , Programs

The Wrong Way for CEOs to Communicate Online
2007-07-13 09:05:42
We love Whole Foods, with their glass cases filled with healthy gourmet fare and their produce aisle teeming with organic delights. And we like their CEO John Mackey, whose blog has always been one that other CEOs could learn a thing or two from. That’s why we feel so frustrated at recent news that Mackey ‘anonymously’ posted rants in Yahoo stock market discussion forums about his own company and others in his industry–including disparaging comments about Wild Oats Markets, a company Whole Foods has since tried to acquire. From a communications perspective, three thoughts stand out in my mind: The organic apple is bruised: Whole Foods has always enjoyed a reputation as a company that cares–a company that cares about your health, that cares about the environment, that cares about its workers. Their trust bank was high, but Mackey’s online shenanigans put the company in danger of going from a ‘company that cares’ to ‘just another com
Read more: Wrong , Communicate

Update 2: Whole Foods Reads a Chapter out of the Crisis Playbook
2007-07-18 15:50:52
According to the latest reports, Whole Foods has hired special outside counsel and is conducting an internal investigation into CEO John Mackey’s online actions. Mackey has now apologized. It reads like a chapter right out of the crisis communications playbook. For some shareholders and other key audiences, however, the outstanding question is whether this action comes too late in the game. Only time will tell.
Read more: Update , Chapter , Crisis , Whole Foods

Update to Whole Foods Situation
2007-07-17 07:47:06
Since my earlier post, the SEC has decided to take a closer look at Mackey’s online postings. In the post-Sarbanes Oxley world, transparency know no boundaries.
Read more: Update , Whole , Foods , Whole Foods

Pro Athletes: Is the Media Spotlight Shining or Glaring?
2007-07-19 08:37:16
A professional athlete is, in essence, a one-man brand. And like celebrities and politicians, what a pro athlete says or does is likely to be fodder for the evening news. The media is extremely quick to respond with coverage when a pro athlete is in crisis–whether it be for charges of driving drunk, or more serious allegations. For those who manage athletes, preparation for and a quick response to a crisis situation are both key. In preparing athletes for life in the media spotlight, keep in mind the need to: Approach public life like a public official: They’re a role model whether they like it or not. A person who runs for elected office understands that people are watching them, and that they’re under a higher level of public scrutiny–it comes with the territory. Pro athletes will benefit from thinking of their public life in the same way. Build a positive image early in the game: Promote community involvement and professional achievements to build a positiv
Read more: Spotlight , Shining

Upcoming Class Actions Presentation
2007-07-23 19:51:18
If you’re a lawyer interested in earning CLE credits and learning more about Class Actions , check into CLE International’s upcoming National Conference on Class Actions, happening October 22 and 23 in Miami, Florida. I’ve attended many of CLE’s conferences and have always found them to be enlightening. This year, I’m delighted to announce that in addition to attending, I’ll be delivering the keynote presentation, “Communicating with the Media: What Every Lawyer Needs to Know.” There will also be sessions covering topics like managing the early stages of class action litigation; class action reform and the settlement process; and, the Class Action Fairness Act of 2005. See you at the conference.
Read more: Upcoming

Do Donaghy’s Actions Tarnish the NBA Brand?
2007-07-26 08:05:42
The Tim Donaghy game-fixing/betting situation brings a dark cloud over the National Basketball Association and its commissioner David Stern during an extremely tumultuous time in professional sports. I believe Stern should be applauded for the adept way he’s handled the issue. He identified the Donaghy situation as an isolated incident, launched an internal investigation and subsequently turned it over to the FBI. His increasingly robust leadership is exactly the kind of courage and integrity a Commission or CEO needs to express in times of crisis and uncertainty. Instead of judging, we should all give him time to make his next move, as he’s made all the right moves so far. Some think Stern ’should have’ known. But even sports handicapper Jimmy Boyd admits that “If a guy were to space out a bunch of games over two seasons it’s not going to be easily detectable.” That said, it now seems that the NBA and other professional sports will have to tra
Read more: Actions , Brand

Spitzer’s Brand Crisis
2007-07-31 15:37:12
New York Governor Eliot Spitzer is facing a personal brand crisis of the highest degree. Even though he’s apologized to his constituents, he’s harmed himself in way that offers no immediate remedy. In an instant, he’s gone from being the people’s squeaky-clean crusader to ‘just another politician’ embroiled in an ugly political scandal. Right now, the facts are at odds with what was perceived to be his brand. In his Sunday NYT op-ed, Spitzer admits, “We made mistakes.” Admitting and taking responsibility for those mistakes are a move in the right direction. They are the first of many small steps toward regaining the respect of the public, and stepping out of the harsh glare of the media spotlight. Sure, Republicans in the State Senate will do everything they can to keep this one alive, but now is the best time to look forward and re-build that precious commodity called reputation. Spitzer’s next steps will be to look for or create o
Read more: Brand , Crisis

Using YouTube to Take Your Case to the Court of Public Opinion
2007-07-30 08:07:27
If the attorneys representing 70s new wave band The Rubinoos weren’t responsible for posting the now-removed Avril Lavigne v. The Rubinoos videos on YouTube , they should certainly thank whoever was. Why? Because before the copyright infringement case has ever been heard by a jury or judge (in fact, the first court date isn’t until August 28) they’ve tried their case in the court of public opinion. And many would say The Rubinoos are in the lead. Before the video was removed from YouTube (due to a copyright claim by RCA Records) the 25-second video had been viewed more than 776,000 times and had garnered nearly 1900 comments from viewers. By trying their case online before it ever hits the courtroom, The Rubinoos and their counsel are creating buzz. They’re conditioning the jury pool. And when their lawyers finally get to the litigation stage, they’ll certainly have the upper hand. But YouTube isn’t just for the entertainment industry. When communica
Read more: Court , Public

Mattel Will Survive Toy Recall
2007-08-17 05:46:41
In America, there are two groups you just don’t mess with: Our children and our pets. Both of these groups are seen as being vulnerable, helpless and in need of our protection. That’s one of the reasons why the Vick story has sparked such vehement public outrage. And it’s also why the recent Mattel toy recall has garnered emotional headlines. Allegations of lead-based paint in toys Mattel imported from China have caused everyone from moms to the Texas Attorney General’s office to sound the alarms. But Mattel’s brand, and its reputation among American families is strong, thanks in part to the unwavering leadership and integrity CEO Bob Eckert has provided for many years. The Mattel brand will survive–the real danger here is to other toy manufacturers whose trust bank isn’t as flush as Mattel’s. The reality is that a similar situation with a lesser-known (and less trusted) toy manufacturer could spell the end of their business. With Eckert’s leadership, resolve and


Why Erroneous Word of Mouth is More Dangerous to Humans than Foot and Mouth
2007-08-16 14:37:42
A quick thought about recent global news chronicling the ‘outbreaks’ of foot and mouth disease around the UK. In this case, ‘word of mouth’ is much more dangerous than ‘foot and mouth.’ When consumers hear ‘foot and mouth’, they immediately jump to ‘mad cow disease’ and then begin to panic. The reality is that the two are distinctly different. From a recent ENS story: The [UK] Health Protection Agency advises that foot and mouth disease is not a direct public health threat. The [UK] Food Standards Agency considers that foot and mouth disease has no implications for the human food chain. Because the virus that causes the disease is sensitive to stomach acid, it cannot spread to humans through consumption of infected meat. It’s up to those in the industry–and the associations that represent them–to help educate the public that foot and mouth disease isn’t a true human health risk, but does present an economic one.


When Goliath Sues David
2007-08-15 10:42:09
The two most storied brands in pharmaceuticals and rescue & relief are going toe-to-toe. Johnson & Johnson and the Red Cross have peacefully shared the iconic red cross symbol for more than 100 years–until now. J&J is suing the Red Cross for trademark infringement, claiming that the charity has violated their original agreement of 1895 by licensing use of the red cross logo on products in direct competition with the drug giants’. From an intellectual property perspective, I’m sympathetic to Johnson & Johnson’s situation. When a company allows their brand to be diminished–whether by a well-known non-profit or cutthroat competitor–they’re opening the door for others to follow suit. It’s well within their rights (and their responsibilities to their shareholders) to protect their intellectual property and their brand. But when we move from a business perspective toward a communications perspective, it is critical that companie
Read more: Goliath , David

Advice for the Mining Industry: Assemble Your Crisis Communication Team Now
2007-08-28 21:04:04
In reading the recent tragic news about the Crandall Canyon mine collapse in Utah, I was reminded of an editorial written in the West Virginia Gazette right after the Sago mine collapse. ‘Mine Safety: Deaths Preventable‘ asserted that the Sago Mine tragedy ‘…was not a surprise–both because the mine had a disturbing safety record, and because the Bush administration in Washington has been undercutting mine safety.’ The editorial concluded with a warning: ‘The demand for coal is currently high, and so is the price. That creates an incentive for companies to return to marginal mines that weren’t worth running in leaner times. It creates an incentive to reopen mines with safety problems and to try to scratch some profit out of them. It also creates the incentive to cut costs, take shortcuts, to err on the side of danger instead of caution…Until the nation gets serious about enforcing safety rules, miners and their families will continue t
Read more: Mining , Assemble , Crisis

Where’s Your Million Dollar Shipping Bill?
2007-09-11 11:57:36
Before Upton Sinclair’s The Jungle was published in 1906, unsanitary and filth-infested meat packing was standard operating procedure. After the best-selling book, a repulsed nation made the meat packing industry a public target. The Food & Drug Administration was created. And the meat packing industry knew that they could never go back to the way they used to do things. The release of The Jungle proved to be the meat packing industry’s ‘tipping point’–the point when prior behavior is no longer standard, but instead, incriminating. A similar tipping point has just been reached by those government contract firms providing goods and services for the wars in Afghanistan and Iraq. As a nation prepares for war, anyone who willingly volunteers to help fight that war–even as a private government contractor–is often viewed as a patriot and a hero, a defender of freedom. But if that war becomes unpopular, people naturally begin looking for villains to b
Read more: Dollar , Shipping

A Tale of Two Apologies
2007-09-02 12:19:01
Today, I want to take a moment to provide some analysis on recent public apologies that fall on opposing edges of the apology spectrum. On the ‘waited too long’ end of the spectrum we have pro football player Michael Vick–nearly three months elapsed from the time that he was accused of illegal dog fighting until the time he actually issued an apology. And when he finally did apologize–virtually everyone saw it as too little too late. While he can recover, it scores low on the courage and integrity scale. And on the ‘apologized too soon’ end of the spectrum we have Senator Larry Craig, who was in such a hurry to issue his apology that he apparently bypassed legal and crisis communications counsel, his chief of staff, and good sense in general, and rather than just apologize, he pled guilty. Consider this: Senator Craig was so mortified of the charges being brought against him that he didn’t seek the advice of an attorney, crisis communications


The Jungle: Crisis Lessons from Meat Processors
2007-10-10 10:25:33
Tainted food has claimed another victim–this time, the company that allegedly created the crisis. New Jersey-based meat processor Topps Meat Co.ceased business operations after a week-long crisis. Why?  Because the recent recall of more than 21 million pounds of its frozen hamburger patties led one senior company executive to conclude that his company could not ‘overcome the economic reality of a recall this large‘. Topps put a high-profile communications firm to work on the case several days into the crisis–and I’ve got to tell you, I have nothing but empathy for my fellow PR practitioners.  In an almost impossible situation like this, there’s only so much they can do. But I believe it was too little, too late. But instead of focusing on that, let’s take a look at what other companies in the food industry can learn from this situation: You’ve got to say you’re sorry:  In a crisis situation, acknowledging any responsibility and
Read more: Jungle , Crisis , Lessons , Processors

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