Crisis Communication

"Crisis is something that everyone can relate to. The death of a close relative, a flood or cyclone, the theft of one’s car or even a broken heart – all can become crisis in one’s personal life. Organizations face crisis as well. Communicating the right message at the right time is critical to managing a business crisis. In emergency situations, there are multiple audiences – employees, customers, investors, the media, the community and government agencies – with multiple needs. Responding quickly and with confidence is the only way to demonstrate your organizations ability to face, and overcome, a business crisis."


Crisis is an unexpected event in any organizations which creates problems for business. A crisis is a major catastrophe that may occur either naturally or as a result of human error, intervention or even malicious intent. Natural crisis is unavoidable while human crisis is avoidable. In crisis by human error, a company is directly responsible, and constituencies will look to the organization’s response to the crisis before making a final judgment. Crisis can include tangible devastation, such as the destruction of lives or assets; or intangible devastation, such as the loss of an organization’s response to tangible devastation or the result of human error.

While all crises are unique, they do share a few common characteristics. These include:
1) The element of surprise
2) Insufficient information
3) The quick pace of events
4) Intense scrutiny



"A very famous of crisis in an organization is the Johnson & Johnson Tylenol incident. Many people think Johnson & Johnson's behavior is the "gold standard" of product-recall crisis management. To prepare effectively for a crisis, a company should understand that it can find itself involved in a crisis at any time. "

Communication in a crisis situation should follow a step-by-step plan. It is important that managers do not panic, and thus they should follow a checklist.

Step 1: get control of the situation.
Step 2: gather as much information as possible.
Step 3: set up a centralized crisis management center.
Step 4: communicate early and often.
Step 5: understand the media's mission in a crisis.
Step 6: communicate directly with affected constituents.
Step 7: remember that business must continue.
Step 8: make plans to avoid another crisis.

1) Factually assess the situation and determine whether a communications response is warranted.
2) Assemble a Crisis Communication Team that will develop and assist with implementing recommendations on appropriate responses.
3) Implement immediate actions to
— identify constituencies to be informed
— about the situation
— communicate facts about the crisis
— minimize rumors
— restore order and/or confidence

The main aim of a corporation is to grow, and therefore it should realize that prevention is better than cure.

I have witnessed Coca Cola using crisis communication when they were involved in the pesticides crisis in India. They had released various press releases and also completly changed their advertising strategies to show the consumers that they care about their well being and to convey to them that "Coke is Safe".
Ad Commercial before the crisis - http://www.youtube.com/watch?v=BqCDG4JMLOw
The Crisis - http://www.youtube.com/watch?v=4fpEgurO-ec
The Ad campaign after the crisis - http://www.youtube.com/watch?v=MMjStzJtOI4


References:
http://en.wikipedia.org/wiki/Crisis_communications
http://www1.umn.edu/prepared/pdf/crisis_manual.pdf

Internal Communications

"Internal communications is the name we have given to a growing discipline that examines, and adjusts the way in which communication can and should work inside an organisation. It's the process of managing the internal conversation in an organisation. And to do that you need all sorts of skills: organisational development, industrial psychology, leadership communication, change management, new media, old media, etc. The goals of internal communication are to boost employee relationships, build an informational bridge between superiors and subordinates, inform the latter about company goals, plans, changes, visions, etc. Internal communication should encourage feedback from employees of lower rank: staff is kept informed and thus more involved in the company’s activity."

Internal communications, also known as employee communications, is imperative in the changing business environment. As companies focus on retaining a contented workforce given changing values and demographics, they have to think strategically about how they communicate with employees through internal communications. A strong internal communications have always generated a more engaged, productive, and loyal workforce, the bursting of the dot-com bubble, the collapse of several of America’s most respected firms, and the proliferation of outsourcing jobs to foreign countries in recent years have further necessitated strong communication channels between management and employees to win employee trust and loyalty.

Corporations are recognizing that employees have more to do with the success of the business than any other constituency. Managers need to recognize that, if they provide information to employees and also listen to them, those employees will be excited about their work, connected to the company’s vision, and able to further the goals of the organization.

The best way to assess the effectiveness of a company’s internal communication is through a “communication audit”. It covers the following subjects:
• Communication Philosophy
• Objectives and Goals
• Organization, Staffing, Compensation
• Existing Communication Programs
• Personal Communications
• Meetings
• Attitudes Toward Existing Communications
• Needs and Expectations

When implementing an internal communication program, it is important for management to take into consideration the importance of up and down communication. Holding meetings with large groups of employees is only one means of ensuring employees have access to senior management. In these face-to-face meetings, employees have the opportunity to ask management questions in an open forum. Additionally, offering employees an online dialogue appeals to those who are not comfortable to stand up and ask questions in a public forum. Online communication is increasingly important in companies. Intranets are an important way to communicate with employees; they provide a fast channel through which companies can reach their employees quickly and broadly. Creating employee-oriented publications means to not only focus on online methods, but also on print communications. Internal branding is important to building morale and creating a workplace where employees are committed to their jobs. Management should try to sell the company to its employees in the same way as it sells its products to customers. Finally, senior management should consider the importance of company grapevine, an informal communications network including everything from private conversations between employees to the latest stories shared in the cafeteria – should be considered as a major communication vehicle - same as official meetings.

Internal Communications in the 21st century is more than the memos, publications, and broadcasts that comprise it; it’s about building a corporate culture and having the potential to drive organizational change.

In Tata Indicom, where I did my internship, we had an informal style of communication inside the organization wherein there was a speedy transfer of information but misinterpretation of communication occured often. We used to communicate with the help of intranet, chat programs and emails mainly. Whereas in Kirloskar, we had a formal style of communication wherein there was a clear chain of command. The transfer of information though it was slow, was rarely misinterpreted. We mainly used Email, letters, notice boards, bulletins, memos etc. to communiate with each other in Kirloskar.

References:
http://en.wikipedia.org/wiki/Internal_communications
http://www.managementhelp.org/mrktng/org_cmm.htm

Communication Technologies

"Advances in technology have done much to change the way we live and communicate over the past quarter century. In the 1980s, telephones were stuck to walls, facts were found in books and people had to browse shelves in a record store if they wanted to buy the latest music. Now, access to all of that and more is found by just reaching into our pockets. How times have changed. Today, telephones don’t require wires, television signals are bounding off satellites or snaking through hair-like fibers etc. But the mission of those pioneering communicators still rings true: to connect people to their neighbors and to the larger world."

Some types of communication technologies used by businesses as of today are:
1) Emails
2) Group Chat
3) Instant messengers
4) Corporate Blogs
5) Corporate Websites/Intranets
6) Memos
7) Manuals
8) Fax
9) Telephones
10) Video conferencing

Some of the new types of communication technologies coming into the picture as of today are:

1) Podcasts and Videocasting - Nowadays, podcasting and vediocasting is not just for entertainment but hundreds of businesses like Disney, Microsoft and BMW are effectively using podcasts to advertise their products/services and get closer with their clients.
2) RSS Feeds - RSS, or Really Simple Syndication, is a new way to broadcast corporate news and structured information. RSS offers a quick, easy corporate communication channel. The RSS contents are published as a feed and the feed's content keep customers, partners and journalists abreast of corporate news and information. The RSS feeds are read using a tool referred to as a news aggregator, or an RSS reader. The aggregator periodically checks to see if the RSS feed has been updated. As the feed is updated, new information will automatically appear in the RSS reader.
3) Wikis - A wiki (sometimes wiki wiki) is a web application designed to allow multiple authors to add, remove, and edit content. The multiple author capability of wikis makes them effective tools for mass collaborative authoring. Wikipedia, an online encyclopedia, is one of the best-known wikis. This in turn enhances collaboration and information exchange within the organization.
4) Blackberry - The BlackBerry is the next in mobile technology. It is a wireless handheld device introduced in 1999 which supports push e-mail, mobile telephone, text messaging, internet faxing, web browsing and other wireless information services. The devices are very popular with some businesses, where they are primarily used to provide e-mail access to roaming employees.

When I was working in Tata Indicom as an intern, we had an intranet system in the company through which we were kept up-to date as to all the lattest happening in the company, what we were supposed to do, deadlines etc. We also used instant messengers, group chat and emails to communicate with each other. We also had a corporate blog and website from where we used to get to know about the news of the company.

References:
http://podcasting.about.com/od/podcastsforbusiness/Podcasts_For_Business.htm
http://en.wikipedia.org/wiki/communication

http://en.wikipedia.org/wiki/Rss

Media Relations

"Everyone in public relations knows that good publicity is the best advertising. A well placed article, a positive radio show or the right interview on TV are all what good publicists and media relations people dream about. It’s what clients hire public relations firms for. The media relations department is one of the most critical areas within the corporate communication function. It is a constituency as well as a conduit through which investors, suppliers, retailers, and consumers get their information about companies through the media. The media takes the role of a disseminator of information to a firm's key constituencies, and its importance has increased over the last years. "

The NEWS media are omnipresent in our society. With the advent of television and the tremendous growth of internet, what had once being the domain of the print medium in newspapers increasingly had become part of the visual realm through television sets and computers. The expanded media are a powerful part of society. A free press also makes politicians accountable for their actions in both public and private life. Even they argue that media bring the distant world of politics into the home of average citizen.

Increased public and media interest have a profound effect on business and its dealings with the media. Companies are slowly realizing that how important it is to have good relations with the media. Companies have learnt that having poor or nonexistent relations with media will only make them worse.

"As the public attitudes are changing, the business news sections in newspapers is expanding and gaining recognition. The main goals of the media relations are to create, maintain, and protect the organization’s reputation, to enhance its prestige, and to present a favorable image. Media relation involves product, public, employee, financial, community, government and political relations, consumer education, and crisis communication. "

Organizations are realizing the importance of media, and hence need to build strong relations with it. To build better relationships with members of media, organizations must take the time to cultivate relationships with the right people in the media. There are various types of media, news, press releases, PR, choosing the right kind of journalist. These days’ corporations prefer on choosing only one right kind of journalist. In the field cluttered with information coming from a variety of sources, however, this is the best approach.

Not only building; maintaining relationship with media is equally important. A company can not simply turn the relationship on and off, as and when the crisis is there or not. To build a successful Media Relations Program, the following things should be considered:

• Involve Media Relations Personnel in Strategy
• Develop In-House capabilities
• Use Outside Counsel Sparingly

6 tips to building better relationships with the media:

• Identify who you are and why you are calling.
• Ask if this is a good time to talk. If it isn’t, ask the reporter to suggest the best time you should call back. Never ask a reporter to return your call. If it is a good time to talk, proceed to the next step.
• Let the reporter know you are familiar with the publication or with stories she writes about.
• Explain the idea in a sentence or two.
• Explain quickly why readers will care.
• Ask if the reporter is interested.

A good example of how media should be tackled is the Coors controversy with the media when they were faced with a huge corporation communication challenge; The Coors Company heard about reporter Mike Wallace’s plans to do a documentary for his network’s news program, “60 Minutes”. Coors then found out that the program is characterized as "providing a blend of hard-hitting investigative reports, interviews, feature segments and profiles of people in the news". This statement offered some information about the style of a possible interview and story to the company according to which they had prepared for the interview.

While doing my project in Kirloskar, I had seen that the company invited the media to do interviews with them. This helps them spread out the word about their vision, mission, objectives, policies, products, services etc. to their constituencies.

References:
http://en.wikipedia.org/wiki/Public_relations
http://www.mediarelationsblog.com/

Corporate and Product Advertising

"Advertising is paid, one-way communication through a medium in which the sponsor is identified and the message is controlled. Variations include publicity, public relations, product placement, sponsorship, underwriting, and sales promotion. Every major medium is used to deliver these messages, including: television, radio, movies, magazines, newspapers, the Internet, and billboards. Advertisements can also be seen on the seats of grocery carts, on the walls of an airport walkway, on the sides of buses, heard in telephone hold messages and in-store PA systems. Advertisements are usually placed anywhere an audience can easily and/or frequently access visuals and/or audio, especially on clothing."

Corporate Advertising is the easiest and fastest option available for organizations to communicate their identity. It can be defined as paid use of media that seeks to benefit the image of the corporation as a whole rather than its products or services alone.

There are three categories of corporate advertising: image advertising, financial advertising, and issue advocacy. Image advertising has the aim to reinforce a company's identity and to enhance its reputation. Especially when structural changes occur within companies, they frequently use corporate advertising to strengthen their identities. Corporate advertising is an efficient tool for changing or establishing impressions about organizations if structural changes have taken place. Further, it allows companies to differentiate themselves from rivals. Companies arrange financial advertising campaigns to make them attractive as investment by enhancing their image in the financial community. Financial-relations advertising try to stimulate interest of potential investors in a company's stock. Many corporate advertisers claim that a strong financially oriented advertising campaign can increase a company's stock price. Issue or advocacy advertising is used by companies to respond to threads exposed by the government or special interest groups. In this case, companies try to communicate directly with consumers, competing with journalists who also try to influence readers with their stories about the companies. Companies dealing with environmental issues use advocacy advertising very often.

The three main reasons why an organization does corporate advertising are:
1) Increase Sales
2) Create a Stronger Reputation
3) Recruit and Retain Employees

CORPORATE ADVERTISEMENT EXAMPLE
"This is an example for a Corporate Ad. The concept of this print ad is based on runners and joggers head games. Mental fuel extracted from their surroundings is a common way for runners to push themselves is the main idea that the company is trying to portray. The purpose behind this ad is to create goodwill and enhance the reputation of Reebok thereby building credibility and inspiring confidence in the consumers towards the brand. Moreover, Reebok is trying to communicate its corporate vision of to the customer."


Product advertisements are not focused on the company, but on one special product. The advertisements are done to increase sales of a special product, to introduce a new product or to compete against competitor's products.


PRODUCT ADVERTISEMENT EXAMPLE
"This ad is an outdoor campaign and print ad for a men’s sneaker, the RBK Pump Causeway. The punch line reads 'The Shoe Fits', which expresses the idea that the sneaker not only fits everyone’s foot, but lifestyle as well. While each character is unique, the simplicity in the design of the illustration allows the viewer to see themselves in at least one of the characters. The main purpose behind this ad is to build product awareness on the shoe launched by Reebok i.e. making the customers know that such a product is available in the market. The advertisement also attempts to persuade or convince customers that the shoe fits perfectly with their lifestyle so that they can make the purchase and create a demand for the shoe."

When I was working at Tata Indicom, the company started using corporate advertising to change their corporate image from providing economic mobile phone services to aiming at changing lifestyles of mobile phone users and being trend setters.

If one looks into a magasine or a newspaper, most of the time there is a balance between both corporate and product ads in the magazines and newspapers unless the magazine/newspaper is a fashion based magazine (wherein there will be more product ads) or a business based magazine (there will be more corporate ads).

Since a company’s advertising contributes to its image, both product and corporate advertising should reflect a unified strategy. Here are some points to remember while advertising, corporate or product advertisements:
1] Good advertising doesn't rely on tricking, lying to or deceiving your target audience.
2] The consumer is smarter than you think, alternative marketing tactics must be genuine, authentic and in today's world, transparent.
3] Today's interest in brand politics means that everything you do will come under scrutiny from someone.
4] Involve your consumer in the brand conversation, give them the tools to do so and they will repay you four-fold.
5]Today's audience might forgive you once, but make the same mistake twice and many will hold the brand and company accountable for the mistakes other's make.

References:
http://en.wikipedia.org/wiki/Advertising
http://www.rbk.com/rbklaunch.aspx?country=us
http://encarta.msn.com/encnet/refpages/RefRelArts.aspx?refid=761564279&selidx=10

Identity, Image and Reputation

"The FedEx brand is more than a famous name. It’s a set of values, attributes and artwork that reflects the spirit of the company. What comes to your mind when you hear or see FedEx? Speed, Service, Flexibility and Reliability. How did this company manage to portray themselves like so to their constituents? This is where their image, identity and reputation come into picture."

A company's identity is the visual manifestation of the company's reality as conveyed through the organization's name, logo, motto, products, services, buildings, stationery, uniforms, and all other tangible pieces of evidence created by the organization and communicated to a variety of constituencies. Image is a reflection of an organization's identity, so it is the organization as seen from the viewpoint of its constituencies. Image can vary among constituencies, and advertising is helpful to get people to adapt the image that the company wants to have. A company can have different images. A company's identity and image are two of the most critical components the corporate communication function has to deal with. When an organization's identity and image are aligned, the foundation for a solid reputation exists. The image and identity of a company also helps the company differentiate itself from others in the eyes of their constituents.

"Nike's marketing strategy is an important component of the company's success. Nike is positioned as a premium-brand, selling well-designed and expensive products. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the advertising slogan: "Just do it". Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. So what happens when a giant soccer ball meets the nike headquarters in Mexico? It promotes the identity and image of the company in the eyes of their constituents."

Reputation differs from image because it is built up over time and is not simply a perception at a given point of time. It differs from identity because it is a product of both internal and external constituencies, whereas identity is constructed by internal constituencies (the company itself). Reputation is based on the perceptions of all constituencies.

In the changing environment for business, corporate philanthropy and social responsibility are gaining visibility and importance in the eyes of many constituencies. A company that has a good understanding of its own constituencies and what is important to them, and that gives thought to how to tie such programs into its corporate vision, will be well positioned to create programs that will enhance reputation.

So the corporate should take care of their identity, image, and keep the communication well to make sure they can provide good product and service to keep the high reputation.

What i have learnt from my personal experience is that the first impression/appearance/contact with any company is extremely important. When I interact with a company for the first time and something goes awry, I tend to have a negative image of the company and will try my level best to avoid contacting the company again. This happened to me with Sify Inet India. I had gone to Sify's office to apply for a new internet connection. What I witnessed over there was that all the people working there were very unorganized and took a lot of time to do anything and everything like getting application forms, clearing my doubts etc. This inturn lowered the image of the company in my mind and thus I not only did not take the connection but I even asked my friends to avoid Sify.

References:
Corporate Communication - Paul A. Argenti
http://en.wikipedia.org/wiki/Corporate_identity
http://en.wikipedia.org/wiki/Corporate_image