Category: Organization Development

Many people will argue that social enterprises should be profitable or at least on a direct path to it. That they must eventually reach a point where all of their expenses are paid from revenues; otherwise they are judged “unsustainable.”

But is profitability a reasonable goal for every social enterprise? Continue reading “Does Success Require Profitability?”

Brush up on your PR tactics with this useful infographic

Pitching the media is an essential skill for traditional PR, but it’s also used heavily in crisis management. Landing stories helps to create a cushion of goodwill, or rebuild your image after taking a reputation hit, and sometimes getting your side of an issue published in a highly visible location is just the tactic you need. While pitching is a learned action that takes practice to perfect, this infographic from NowSourcing.com will help you hone your skills as well:

Embattled organization makes another mistake leading up to World Cup in Russia

FIFA has already taken a great deal of heat over its controversial decisions to hold World Cups in Russa and Qatar, and now the organization is making headlines once again over an immense oversight that shows the world just how little attention they care to little details like, ohhh, human rights and forcible annexation of other countries.

In a video premiered on the side of Russia’s Bolshoi Theatre, the disputed Crimean peninsula was depicted as a part of Russia, a move that did not go ignored by the international community.

Facing immense, immediate pressure, FIFA (sort-0f) apologized for the mistake, offering up this excuse to the press:

“Unfortunately the map of Russia selected and used during the projection by the local service provider escaped our attention and the short sequence in question has been removed”

At this point it’s difficult to see FIFA leadership’s culture as anything but one of greed and incompetence, the last image you want to have when your operation relies heavily on corporate sponsorship to succeed. Current leadership can hold on, but with the immense international outcry regarding the organization and its decision making, we smell a big house cleaning coming down the line.

More facts and figures detailing the effect crises have on business and reputation

We found the infographic below, put together by MediaMiser, particularly interesting because provides specific figures in connection with the multitude of problems Carnival Cruise Lines experienced early this year.

Traditional PR has its place, but if you’re not using digital you’re missing out on your potential

Digital reputation efforts are a must these days, but when it comes to convincing your organization to leave room in the budget for this essential part of PR it can be tricky. Sharing tangible benefits always pulls more weight when it comes to loosening the purse strings, making this infographic from digital marketing firm Wedu a fantastic tool:

[Editor’s note: Thank you to our colleague Tony Jaques for allowing us to reprint this fantastic post that investigates the culture of finger-pointing in the wake of crisis]

Blaming the victim is an ugly strategy which is seldom smart in the wake of a crisis

The Ebola outbreak is providing endless fodder for commentators and instant experts around the world. But events in the Texas hospital where two nurses contracted the disease provide a stark lesson in the danger of trying to assign blame.

When US Centres for Disease Control Director Dr Thomas Frieden declared it had been caused by a “protocol breach” the result was swift, inevitable and highly damaging. One headline read: ”CDC Head slammed for blaming nurse infected with Ebola.”

America’s largest nurse union said the Dallas hospital was “constantly changing” its protocols for dealing with Ebola patients, and that there were multiple safety lapses. In fact a CDC epidemiologist admitted that protocols at the hospital “evolved” while the patient was being treated.

The New York Times commented: “If the hospital has served as a canary in a coal mine for the country’s Ebola response, the results have not inspired confidence.”

The nurse was eventually declared Ebola-free and got to hug President Obama, but the incident highlights a critical lesson for crisis management – assigning blame before all the facts are known is seldom very smart. However it is, sadly, all too common.

When a Walmart truck rear-ended a limousine earlier this year, killing comedian James McNair and critically injuring actor Tracy Morgan, Walmart President Bill Simon earned widespread praise for saying that his company “will take full responsibility” if its truck caused the pile-up. Just weeks later the company’s lawyers filed a court statement which said the passengers’ injuries were caused “in whole or in part” by their “failure to properly wear an appropriate available seatbelt restraint device,” which it said constitutes unreasonable conduct.

When a runaway oil train largely destroyed the Canadian town of Lac-Mégantic last year, the railway CEO went to the site and blamed the driver. A subsequent inquiry blamed a “weak safety culture” and cutting corners to save money.

And after the infamous Longford gas plant explosion in 1998 killed two men and cut off gas supplies to Victoria for two weeks, owner Esso initially blamed an individual worker at the plant. The Coroner subsequently found the multinational “solely responsible for the disaster.”

We know from research at the Institute for Crisis Management that more than half of all crises are caused not by workers or other causes, but by MANAGEMENT. So why do organizations go down the track of trying to blame a crisis on someone, anyone, other than themselves? Partly because they can and partly because the media and the public want a simple story that’s easy to understand. And maybe because lawyers have too much influence. But it’s a dangerous crisis response strategy which can backfire terribly.

As the American nurse union concluded about the CDC’s misjudged statement: “You don’t scapegoat and blame when you have a disease outbreak. We have a system failure. That is what we have to correct.”

Tony Jaques manages Australian-based issue and crisis management consultancy Issue}Outcomes, and is the author of the upcoming book, Issues and Crisis Management: Exploring Issues, Crises, Risk and Reputation, available on Amazon or wherever books are sold.

Helpful advice for coping with negative reviews on the popular network

Yelp is the very definition of a double-edged sword. Good reviews can bring in more business and allow you to charge more for the same services, while bad reviews can sink your operation. It’s perfectly natural to be upset and even a bit angry when you start seeing negative reviews, but overcoming this knee-jerk reaction is critical to turning things around. For more tips, take a look at this infographic from ChatterBox360.com:

There’s no escaping this social media sand trap

Professional Golf Association president Ted Bishop is the latest high-profile figure to lose their job as a result of a social media post. Bishop was angry with tour member Ian Poulter for his criticism of Ryder Cup captains Nick Faldo and Tom Watson, and let everyone know it on Facebook. The problems didn’t come because he voiced his opinion, but once he dropped the line below his troubles began:

“Really? Sounds like a little school girl squealing during recess. C’MON MAN!”

By Friday Bishop was on his way out thanks to a vote by the PGA board, and the organization headed straight into crisis management mode with a statement of its own:

The PGA of America board of directors voted today to remove Ted Bishop, the 38th PGA president, from office for insensitive gender-based statements posted yesterday on social media. The board deemed the remarks to be inconsistent with the policies of the PGA.

“The PGA of America understands the enormous responsibility it has to lead this great game and to enrich lives in our society through golf,” said PGA chief executive officer Pete Bevacqua. “We must demand of ourselves that we make golf both welcoming and inclusive to all who want to experience it, and everyone at the PGA of America must lead by example.”

Under the bylaws of the PGA constitution, vice president Derek Sprague has been appointed the Association’s interim president until Nov. 22, when the election of new national officers takes place at the 98th PGA annual meeting. PGA Secretary Paul Levy will assume the dual responsibilities of Vice President and Secretary until the election.

“The members and apprentices of the PGA of America must uphold the highest standards and values of the profession, as well as the manner in which we conduct ourselves at all times,” said Sprague, the PGA general manager and director of golf at Malone (New York) Golf Club. “We apologize to any individual or group that felt diminished, in any way, by this unacceptable incident.”

A bit of a stodgy statement, but then again the PGA is a bit of a stodgy organization. Actions speak louder than words, and the PGA’s actions showed that immature, sexist statements coming from their top officers are simply unacceptable.

Are you following the rules?

Organizations of all kinds are eager to share on social media, but overlooking the need to comply with federal and industry regulations can quickly land you in trouble. Figuring out what rules apply to you, and how to steer clear of trouble, can be tricky, which makes the below infographic, from ComplySocially.com, an important primer no matter your business:

Playing to one stakeholder group at the expense of another is risky business

This weeks dustup over new YouTube ads from car shopping site Edmunds.com, is a great example of the dangers of focusing too much on one audience while neglecting to consider another.

Edmunds has been pushing the idea of no-haggle car sales for a while now, and, in an extension of that effort, its latest video series poked fun at the wrangling over prices that’s so famously associated with picking up a new ride.

While customers seem to be enjoying the videos, Edmunds advertisers aren’t happy. AdAge spoke to Jeff Wyler, CEO of the Wyler Automotive Group, whose dealerships are paying Edmunds customers:

“For 41 years, the Jeff Wyler Automotive Family has been committed to practicing business at the highest levels of integrity,” he said. “Negotiating prices on cars has always been expected by the consumer and having it referred to as ‘haggling’ by a company that I am a customer of is insulting.”

The 15-store group, Mr. Frye said, was putting its 2015 ad budget together when the videos hit YouTube.

While we would have advised the dealers to make their point about the tone of the videos rather than the word haggling, which, let’s face it, is the term most people use, the point still stands that Edmunds ticked off one set of stakeholders while appealing to the other. The result? One day after the dealer outcry, Edmunds pulled the videos, issuing the following statement:

“Our digital videos illustrating the ‘Absurdity of Haggling’ missed the mark. Some of our partners were deeply insulted, expressing that our attempt at humor reinforced outdated stereotypes. That was obviously never our intent. It has created a distraction from our business of helping to make car shopping easier. We are terminating the videos and getting back to working with our dealer partners to improve the car buying process for car shoppers around the country.”

Playing to your stakeholders can win you attention and brand loyalty, but don’t pander to one group while throwing dirt on another. Not only did Edmunds lose money on these ads that have already been pulled from public view, but we’d bet advertisers will be keeping a close eye on the organization’s next moves for signs that they’re no longer as dedicated to supporting them as they claim to be.