Author: Jonathan & Erik Bernstein

[Editor’s Note: The following guest post comes to us from Rick Kelly, Vice President of Strategic Communications at Triad Strategies]

It’s called “confirmation bias,” and Texas U.S. Sen. Ted Cruz, Republican/teabagger extraordinaire, is positioned to become its unintended poster boy this week after he asked his Facebook “friends” what they thought of ObamaCare, aka the Affordable Care Act.

“Confirmation bias,” per psychology and cognitive science, is the tendency of people to seek out information that confirms their preconceptions, often at the expense of reality. Call us crazy, but it always seems that the more dogmatic the individual, the greater the propensity for confirmation bias.

And when it comes to dogma, Senator Cruz is a pit bull.

So one morning late last month, Cruz (or his surrogate) posted this little nugget on Cruz’s FB page: “Quick poll: ObamaCare was signed into law four years ago yesterday. Are you better off now than you were then? Comment with YES or NO!”

As any litigator will tell you, never ask a question that you don’t already know the answer to. And Cruz (or his surrogate) must’ve been astonished to see the plethora of responses coming down on the “I’m better off” side of the issue.

“I’m a small business guy and I don’t have to worry because insurance companies can’t drop us anymore,” said one comment.

“My wife’s little niece who is very sick would have hit her lifetime limit by now if not for the ACA. The nation is better off,” said another.

“Impeach Ted Cruz! He caused the shutdown that hurt this country badly!” opined a woman sporting a “vote blue 2014” profile pic (and up until now we didn’t think Cruz had any “friends” of the “vote blue” persuasion).

“YES, YES & YES!! Hands Off My ObamaCare!! Something tells me this isn’t quite the response Mr. Cruz was hoping for ROFLMAO,” observed another, piling on and enjoying it.

As of this week, the “likes” on the original Cruz post exceeded 10,000, and the “shares” half of that (to read them yourself, click here.)

Cruz’s Facebook folly caught the attention of L.A. Times business columnist Michael Hiltzik, who regaled us with a couple of other high-profile social media fails.

“In October, Fix the Debt, the plutocrat-backed front group for deficit-cutters, staged a question-and-answer session on Twitter, evidently hoping to instill the younger generation with its message that Social Security and Medicare were a plot by seniors to land the millennial generation in the poorhouse,” Hiltzik wrote. “Didn’t play out that way. The group’s Twitter feed was inundated with impertinent queries (‘What’s more popular at your board meetings, the blood of workers or tears of homeless seniors?’)”

In the other, JPMorgan Chase had scheduled a Twitter Q&A with one of its investment banking honchos, only to draw sample questions such as, “Did you always want to be part of a vast, corrupt criminal enterprise or did you ‘break bad’?” The firm waved off the event.

If there’s a lesson here, it’s that the interweb is a dangerous place to ask questions, even ones you think you know the answers to.

But perhaps the most important lesson for Cruz or any other person/company/association/cause that has a public Facebook page, as opposed to a personal one, is that “followers” are not to be confused with “friends.” Many of the people who follow you might just be folks who are waiting to weigh in and post comments because they vehemently disagree with you.

It is a pretty safe bet that Ted Cruz knows that fact very well today.

Rick Kelly, VP of Strategic Communications
Triad Strategies LLC
@rkel2y
www.TriadStrategies.com

Take care of your reputation and it will take care of you

Whatever your organization does, it’s a safe bet to assume you’re looking for ways to manage your online reputation. After all, with pretty much all of us carrying a teeny tiny research machine in our pocket in the form of a smartphone, what comes up when someone searches your name is a major concern.

Along with search results, web reviews, whether on social media platforms like or Yelp and its kin, will be the first thing most stakeholders see when they go looking for more information, which makes keeping things positive a core aspect of modern crisis management.

We came across a useful infographic, put together by the folks at Search Influence, that can help you understand what exactly is involved in managing online reviews:

Infographic: Reputation Rescue: Dealing with Your Business’s Online Reviews, Courtesy of SearchInfluence.com

We use the phrase, “your reputation is your most valuable asset” a lot because it’s true. Put the time in to care for yours, and you’ll reap the rewards. Don’t bother, and you’re all but guaranteed to find yourself in need of crisis management sooner rather than later.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

Why renew focus on an issue you’d clearly rather avoid speaking openly about?

New Jersey Gov. Chris Christie (R) would probably love to have this whole George Washington Bridge scandal just…go away. It seems Christie felt he was expected to do something to explain things, but his choice to appoint a friendly lawyer to “investigate” the allegedly politically motivated lane closures reeked of nonsense.

Here are a couple of snippets, from the Washington Post’s coverage of the report:

Christie didn’t know in advance

“The Governor Did Not Know In Advance And Was Not Involved In This Bridge Lane Realignment Decision. … Before September 9, 2013, The Governor Had No Knowledge Of The Bridge Lane Realignment.”

Shocking, right?

The lane closures were originally Wildstein’s idea

“That Fort Lee was favored with these dedicated toll lanes was an issue periodically raised within the Port Authority. Indeed, Wildstein himself first raised the issue in late 2010. For some reason yet to be determined, Wildstein seemed to be driving this issue again in 2013. It was Wildstein’s ‘idea,’ like so many other ‘crazy’ ones he’d had before that never got off the ground.”

We’re not sure we’ve ever heard an impartial investigator say someone’s ideas were “crazy” before, but maybe it’s a first…

It seems Jonathan Bernstein’s take on the situation summed up the feelings of most after reading this report:

“It’s like conducting your own colonoscopy, you’re likely to just end up with your head up your ass.”

The credibility of the so-called investigation was doomed from the get-go because it was A) self-imposed, and B) conducted by people who have clear reason to be beholden to Christie, begging the question, why do it at all?

Nobody’s going to believe the results if they’re coming from a clearly biased source, so why not just try to let the whole thing die down and move on as much as possible? From where we’re standing, putting out a bogus investigative report is only serving to re-focus attention on the reputation threat, not the ideal direction for crisis management at all.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

Saying you’ll clean up your act is one thing, backing it up is another

General Motors is the latest carmaker to come under fire for failure to address safety issues (and defending that decision) after it was revealed that it had swept reports of defective ignition switches, responsible for some 12 deaths, under the rug for more than a decade.

Facing a congressional investigation and the ire of stakeholders, GM CEO Mary Barra is talking the talk, delivering candid messages to both external and internal audiences and announcing sweeping changes in the company. Asked by The Fiscal Times to describe what GM needs to do next, Jonathan Bernstein explained a necessity many overlook – backing up all that talk with real-world action:

“At the end of the day, they need to walk their talk,” says Jonathan Bernstein, the head of Bernstein Crisis Management, a communications consultancy. “When they put profits ahead of safety, they forget that their most important asset isn’t their bank account. It’s their reputation.”

With 13 years of deception under its belt, GM has a big hole to dig out of. Those claims Berra’s making about a commitment to safety and a revision of systems absolutely must be followed up by not only actually putting the projects into motion, but also keeping stakeholders informed as to how these projects are helping to keep them safe, and GM engineers and leadership honest.

GM certainly has the assets to do crisis management for this situation right, but, as Jonathan explained, safety needs to actually and demonstrably be the highest priority if the brand is to recover.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

[Editor’s note: We asked to reprint this article from Tony Jaques’ “Managing Outcomes” newsletter because it addresses an issue we constantly see major organizations ignore – the fact that advertising can, and often does, create unnecessary reputation threats.]

Two of Australia’s largest corporations are under fire because of their advertising. The Victorian Supreme Court recently ruled that claims by Singtel Optus about the coverage of its telephone network would have misled the ordinary or reasonable person. And supermarket chain Coles has just been before the Federal Court to defend a charge that bread which has been part-cooked and frozen should not be promoted as “fresh baked.”

Cases of dubious advertising are all too common. However, for major corporations and high profile brands it’s not just about dollars and cents. Corporate reputation can also be at risk.

It hasn’t been a great time for honesty in big-brand advertising. Late last year the Australian Competition and Consumer Commission (ACCC) announced legal action against Reebok for claiming that walking in a pair of EasyTone shoes would increase the strength and muscle tone of the calves, thighs and buttocks more than with a traditional walking shoe. ACCC also announced action against energy company AGL South Australia for making false or misleading representations to homeowners about the level of discounts off electricity usage charges they could be obtain.

Around the same time came news that the Federal Court upheld the $250,000 fine against high-street jeweller Zamel’s for misuse of “was/now” pricing. The court found the apparent “savings” were false or misleading because Zamel’s had either not sold the item or made only a few sales, at or near the “was” price.

In its original defence, the company claimed it was “widespread industry practice.” In its failed appeal, their lawyers argued that the “was” price should be considered an “offer to treat” rather than the actual price. Got that? Now try to explain it to the ordinary or reasonable consumer.

A few days later, the court handed down a $1 million fine to the group buying website Scoupon, for misleading consumers about their refund rights and the price of goods advertised. Also for telling businesses that there was no cost or risk involved and that 30% of vouchers would not be redeemed, which was not true.

Of course, dodgy advertising has been around since Eve told Adam how good the apple would taste. Yet for corporations, the risk to reputation can easily be under-rated.

Every experienced communicator knows you can try to win in the court of law and risk a terrible loss in the court of public opinion. Let’s not forget when Pringles in the UK appealed to the highest court in the land to try and prove their famous potato chips are not actually a potato product, in order to save a substantial amount of sales tax. They eventually lost, but not before their own lawyers argued that Pringles “don’t look like a chip, don’t feel like a chip and don’t taste like a chip.” That must have really pleased their PR and Marketing people.

In these and so many other examples, the question is: Where were the issue and crisis professionals who should have been asking – “Excuse me boss, but does this really seem like a good idea?” Maybe the Australian cases are not quite so egregious, but they are a blunt reminder that reputation is far too important to be left to over-enthusiastic marketers and over-legalistic lawyers.

Tony Jaques manages Australian-based issue and crisis management consultancy Issue}Outcomes and authors its newsletter Managing Outcomes

Example of how the cybersecurity issues of others can quickly become your own

As cybercrime becomes ever more lucrative, hackers are seeking to attack specific targets in any way possible. In a reminder of the reality that, even if your systems are secure, there are ways for criminals to target your customers from other angles, it appears a server belonging to EA Games is actually being used to steal personal information from Apple ID users.

Information security firm Netcraft discovered the situation, and shared details on its blog:

An EA Games server has been compromised by hackers and is now hosting a phishing site which targets Apple ID account holders.

The compromised server is used by two websites in the ea.com domain, and is ordinarily used to host a calendar based on WebCalendar 1.2.0. This version was released in September 2008 and contains several security vulnerabilities which have been addressed in subsequent releases.

The phishing site attempts to trick a victim into submitting his Apple ID and password. It then presents a second form which asks the victim to verify his full name, card number, expiration date, verification code, date of birth, phone number, mother’s maiden name, plus other details that would be useful to a fraudster. After submitting these details, the victim is redirected to the legitimate Apple ID website at https://appleid.apple.com/cgi-bin/WebObjects/MyAppleId.woa/

You can only imagine the kind of access a hacker would have with all of this information, and considering the phishing site looks and behaves much like the real Apple page, who do you think the average user is going to be upset with when they find their information’s been stolen and used to wreack as much financial havoc as possible across the web?

There is only so much you can do to protect your organization and stakeholders from truly zealous cyber criminals. Data theft, phishing, and exposure of personal information are just a few of the very real possibilities, and as you can see from this case, the attack could come from very unexpected places.

Stomach the thought that you could very well be the next victim, prepare to react, and you’ll mitigate the potential damage that much faster when the threat does come. It’s that simple.

P.S. Never, ever let a website store your credit card data. Some of the allegedly most-secure servers in the world have been the target of credit card and identify theft.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

When you own a business, the actions of your employees, even when not at work, can reflect poorly on you.

Earlier this month, a New York tattoo artist employed by the Red Legged Devil tattoo shop owned by Chris Torres posted a picture to Instagram of him tattooing his dog, which was under anesthesia for a separate medical procedure.

Animal rights proponents quickly figured out that Torres employed the man who had done the tattooing, and headed to the Red Legged Devil Facebook page to voice their displeasure, along with threats of action with the SPCA and other legal authorities.

In terms of crisis management, Torres started in the right direction, then went waaaay off the mark.. His initial response was to distance himself from the incident, making it very clear the shop was not involved in any way. Unfortunately, his attitude was utterly unapologetic and insensitive – something that might fly in the tat biz but not when it comes to crisis communications.

Even worse, after initially distancing himself he leapt right back into the fray on Twitter, fighting to support his employee’s questionable decision using a full arsenal of bad logic and elementary school insults:

@mister_smiley @mikeisthereason you guys are aware that the ASPCA tattoos dogs & cats once they’ve speyed or neutered them, right?

— CHRIS TORRES (@CHRIS_TORRESNY) March 5, 2014

 

@sugarrrxo nice eyebrows…did you paint them on with a roller?

— CHRIS TORRES (@CHRIS_TORRESNY) March 6, 2014

 

Torres dug himself a deeper and deeper hole as he repeatedly engaged in the type of back-and-forth arguments that social media crisis management pros warn against via both Twitter and Facebook, as well as dropping this absolute bomb of a quote in an interview with Gothamist.com:

Reached for comment, Red Legged Devil owner Chris Torres was emphatic that the decision of his employee, Mistah Metro, to tattoo his dog had nothing to do with him. “The dog wasn’t tattooed at the shop—what [employees] do on their own time isn’t my business,” he said.

Perhaps not, but Torres still has plenty of opinions on the matter. “People are still offered jobs after being pedophiles,” he said. “I don’t know why everyone is treating this kid like he raped a 12-year-old.”

If anyone was still on the fence as far as Mr. Torres and his shop, we can guarantee that quote left them firmly on the opposing side.

Despite his vehement defense, Torres did wind up firing the employee responsible for the dog tat, leaving himself down one employee and up a whole host of haters thanks to his complete and utter lack of respect or self control.

You can’t completely prevent employees from doing things that aren’t so smart, but you can handle it properly when it happens. Plan ahead, stay cool, and you’ll minimize the impact. Become an angry, ranting insult machine and, well, we warned you…

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

Rapid response mitigates damage from potentially devastating incident

Anyone in the hospitality business will tell you that bad behavior by guests has the potential to create crises, but what if that behavior wasn’t happening in a hotel suite, but rather in someone’s home?

That’s exactly the situation Airbnb, the travel website where users book stays in individual’s guest houses, extra rooms, boats, really anywhere a bed will fit, faced after host Ari Teman discovered his Manhattan apartment was not being used by a wedding guest as he had been told, but rather to host an orgy that was open to the public and advertised via social media.

With reports of Teman’s condom and liquor-filled apartment making headlines on the ‘net, the need for a response was dire, and Airbnb stepped up to the plate big time. In a massive improvement from its reaction to a 2011 case in which a guest trashed a host’s apartment, Airbnb leapt immediately into full-on crisis management for this one.

Gawker was in contact with Teman, and got the story:

To its credit, Airbnb’s response to Teman was quick, almost absurdly so. Within 24 hours, per an email provided to Gawker by Teman, Airbnb had sent a locksmith to change his locks, made plans to put him up in a hotel for a week, and wired him $23,817

Not stopping there, Airbnb also delivered a very strong statement to media outlets, many of which circulated it verbatim or added it as updates to their original coverage:

Over 11 million guests have had a safe and positive experience on Airbnb and problems for hosts and guests are incredibly rare, but when they happen, we try to help make things right. We were appalled when we learned about this incident and we took immediate action to help this host. The individual who rented this space has been permanently removed from our site. We’ve reimbursed the host for damages to his apartment and ensured he has a new place to stay. In the days ahead, we’ll continue to work with the host to assist him with his additional needs and we will work cooperatively with any law enforcement agencies that investigate this matter.

A potentially sticky situation (pardon the pun) solved by prior planning and powerful crisis communications, well done Airbnb.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

Don’t say one thing to your customers while you’re telling shareholders another…

Target’s massive data breach last year, in which some 70 million pieces of customer data, including names, addresses, and credit card numbers, were stolen by hackers, shook shopper’s confidence and created lower-than-predicted sales during the crucial holiday season. Although the company faced some initial stumbles, its crisis management, including messaging regarding the situation and steps taken sent directly to affected customers and placed in stores, seems to be turning things around.

That is, of course, unless the retailer does something stupid. Something like, ohhh…informing the Securities and Exchange Commission that “it is possible that we will identify additional information that was accessed or stolen, which could materially worsen the losses and reputational damage we have experienced” while they’re busy reassuring the public that the trouble’s past.

Oh, that just happened in Target’s annual 10-k report? Well bollocks.

The instinct to start shouting from the rooftops that you’re past a crisis as soon as possible is completely understandable, but if you stop and think, what really looks worse – saying you’re in the clear and then having to announce you were wrong, or keeping everyone informed as you work through an issue until it’s really and truly resolved?

Target’s drawing shoppers back in, but if the problem is discovered to be bigger than reported you can bet the news won’t be tucked away in a SEC filing, and you can doubly bet that those customers who just barely put their shaken confidence back in the Target brand will be taking their money elsewhere.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

What you say is only part of what your audience takes away from any communication

Body language speaks volumes to whoever you’re addressing, making careful consideration of the impression you’re giving a critical crisis management concern.

While the infographic below, from, of all people, language experts at Gengo, addresses more than just crisis situations, the lessons it holds regarding the most effective behavior when addressing various audiences is spot on and sure to help you the next time you’re responsible for handling crisis communications:

Don’t think you’re ready for the cameras to roll just because you’ve gone over a couple how-to’s though! Control of your body language and facial expressions, not to mention the tone and content coming out of your mouth, takes practice, practice practice. Get in front of that camera, mirror, or a trusted colleague and grind until you’ve got it down pat. That’s the only way to nail down the right approach to any communication situation.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]