In the highly regulated world of financial markets, crisis situations are bound to happen. As it’s been said, it is not a matter of if, but when. And given the speed and nature of communications in this digital age, a crisis may hit sooner than you would have expected.

In his book Glass Jaw, American crisis management consultant Eric Dezenhall, talks about the changing nature of controversy.

One of the themes he explores in the book is the ‘Fiasco Vortex’.  As you can imagine and as the term suggests, this (fiasco vortex) is a place where no one wants to be. According to Dezenhall, the speed of communication and the instant nature of social media in this digital age play a big role in the development of a fiasco vortex.

Dezenhall describes this vortex as a snowballing effect, vicious circles and feedback loops that magnify destructive information and spread beyond the reach of available treatment. In his view, this situation is one part crisis and three parts farce. And the farce encircling the crisis is whipping it into an exponentially destructive beast.

As he traces the changes in the nature of communication and controversy, Dezenhall says the viral nature of controversy and communication in the digital age could render the once-mighty corporations, big businesses and high profile individuals powerless when they face a scandal – when they are caught in the fiasco vortex.

Dezenhall, who started his communications career as an aide in the White House Office of Communications during the Reagan administration, also comments on the ‘addictive quality to the consumption of controversy’ in this age of social media.

Given the frenzy that is feeding on the initial news or controversy, no one is immune. Not only big corporations or high profile personalities are the examples of glass jaw targets, says Dezenhall. Even common people can find themselves in humiliating situations.

Though the book is not a ‘how to’ in crisis management, Dezenhall shares many cases of big corporations, high profile sports personalities, politicians and other influential people and businesses that have been through some controversies in the recent past.

And while it does not offer a step-by-step process on how to deal with crises situations, the book emphasizes that “reputational damage is an extremely tangible phenomenon that can ruin lives, careers and businesses.”

Having worked in some of the high profile crisis situations, Dezenhall has a pragmatic and realistic approach to crisis management. I like his analogy on firefighting and crisis management. He says:

“It’s a lot easier to light a forest fire than to put it out. Even after the fire fighting is done what remains is a big mess. The realistic objective of a crisis management is to endure controversy, not escape it.”

Have you or does your business have a crisis management strategy in place? Now may be the best time to get one prepared.

Contact us if you want to discuss any aspect of your company’s communications and crisis management plan. You can reach us on: info@de2communications.com/ eva@de2communications.com or call us at: +61 421 333 763

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It’s amazing to see the differences, not only in the culture, but also in the strategies and corporate approaches – the way they do things such as how they deal or treat their clients, or how they build their reputation and profile in particular markets.

While differences are good learning tools, it’s also good to see the similarities (to a certain extent) between companies and businesses. From a Communications and Public Relations perspective, we’re always interested in how companies approach or treat communications.

Some of the questions we ask potential clients who have approached de2 Communications for PR services include:

1. Do you (or your company) have an overall communications strategy?
2. What are some of the key messages and values of the company?
3. How do you see Communications and Public Relations delivering value to the company?
4. How important is Public Relations to the company?

While the first two points are the most basic starting points from a Communications and PR perspective, let’s focus on the third and fourth questions because most of the time – and we have seen this over and over again – they could affect not only the results of the PR strategy but it could also have a critical impact on a company’s reputation and brand.

For example, if a company recognises the importance of Communications and PR, it will allocate the needed resources – time, talent and budget – to a company-wide PR strategy.

We have had the privilege of working with a UK-based financial company when it was opening an office in Australia a few years ago. The company recognised that it needed to build awareness for its brand and its people since it was entering a very competitive market at that time.

The company CEO knew the value of communications and recognised that PR would play a vital role in building the company’s reputation. We were able to work with a team of talented market analysts and other experts who allocated time for Communications and PR.

We designed and implemented a 12-month communications calendar which was reviewed every three months. We saw the build-up and continuing rise of media coverage, client satisfaction as well as a positive corporate reputation for the company. And within a couple of years the company was recognised as one of the leaders in its sector.

It was a great example of a company that knows the value and role of PR within the company.

In our next post, we will talk about and give an opposite example to what we discussed today. If you want to discuss your company’s Communications and PR strategy, please contact us and we will be happy to explore the best possible options for you. If you’re unsure of where to start in implementing a PR strategy, call us and we can chat. Contact us on: +61 421 333 763 or email us on: eva@de2communications.com; info@de2communications.com

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During the discussion, it became clear that at times and even at this level there are still misconceptions about what Public Relations (PR) is and its role in a company’s growth.

Here’s a few false impressions about PR:

1. Public Relations = Press Release

Many people (even some top company executives) think that Public Relations is all about writing and sending out press releases. And the more press releases they send to the media the more coverage they will get. Many companies churn out materials about new staff hires, office openings, new leases and other boring information, expecting the media to write about them.

The truth is Public Relations is more than writing and sending out press releases. In this age of instant and constant information, the media is more selective and discerning in the quality of information they get and write about. News and information need to be valuable, useful, helpful and interesting enough for the media as well as their target audience.

2. Public Relations is free publicity

Some companies spend hundreds of thousands or even millions of dollars in advertising. Yet they don’t have dedicated budget when it comes to PR. This misguided notion that PR is ‘free’ could sometimes cost companies more not only in terms of dollars but in tarnished reputation, particularly when a crisis hits.

The reality is Public Relations is and must be a vital component of a company’s overall strategy. A company needs an integrated Communications and Public Relations plan that anticipates the good, the bad and every situation in between.

3. Public Relations is not measurable

Somewhat related to the misconception that PR is free is the wrong impression that it is not measurable. While many companies like to think that their advertising spend is the only thing that drives sales, they don’t count Public Relations as a contributing factor to a company’s overall reputation and status. And without a positive reputation, no amount of advertising money can persuade people to buy from or to support a big spending company.

The fact is Public Relations is measurable. Its value and direct impact to a company’s reputation, perception and status is more important than any advertising.

At de2 Communications, we have delivered some outstanding results for clients who have seen their media coverage double, triple or even quadruple within a short period of time. The positive media coverage can directly be translated and measured in terms of the equivalent advertising dollar spend. In many cases these coverage equate to hundreds of thousands of dollars (if measured purely on advertising dollar cost).

But more importantly the positive media coverage directly impact the way a company is perceived by its various target audience including its clients, business partners, industry peers, governments and the media.

If you have any question or if you would like to discuss any of the PR ideas here, please contact us. We will be happy to explore the most appropriate PR strategy for you and your company. Visit us on: de2communications.com or email us: eva@de2communications.com or info@de2communications.com. You can also call us: +61 421 333 763

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