Tag Archives: Cluetrain Manifesto

Crisis Management Begins Before the Crisis

Posted by DJ Francis / March 11, 2010 12:30 pm 

Toyota reminds me of a guy who buys flood insurance the day after the big rain.

In a recent post on my personal blog, I proposed that an effective ethical strategy required speaking to the emotions of your audience. Watching this car maker’s mounting mistakes and the continuing ethical violations still coming to light, I’m reminded about one of the keys to a successful crisis management strategy:

Crisis management begins before the crisis.

In January (the same month the Toyota debacle really hit the fan, incidentally), clothing retailer H&M was hit with a story claiming that their employees were slashing up clothes before they were discarded. While some brand protection can be understood by some, it looked dastardly in the midst of a recession.

H&M responded to the hubbub immediately, issuing a 5-tweet salvo that concisely stated their case: They gave their brand statement, contact information, a promise to resolve the problem, and a link to a robust corporate social responsibility page. (Here is a history of the incident and the Twitter effect.)

You’d be forgiven if you missed this story. At the time, H&M’s 30K Twitter followers got out the message, mostly defended the brand (or at least stopped disparaging it), and pretty much quashed the story. Compare this to Toyota’s handling of their ethical crisis.

Toyota Goes The Old Route: Mo’ Money, Mo’ Problems

Toyota spent a lot of money on ads in newspapers (yes, they still exist) and on television. They had very few Twitter followers. They have no blog that I know of (and certainly not one I heard about developed after the story broke).

No customer communication channels. No tools for dialogue. No presence in a community where fans could defend them.

Consider Joseph Jaffe’s admonition of Toyota:

“Toyota did not have a direct line…with their customers, with their advocates, with their loyalists, with their influencers. They weren’t able to go to their community and say, ‘Help us, we need your help, we need your advice…’

You can’t expect to miraculously turn to your customers if you haven’t been building up that relationship with them in advance… You’ve got to anticipate this stuff because it’s going to happen.”

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Bloggers have been abuzz about the necessity of transparency in business for longer than the word “tweet” has been commonplace. Transparency, for a list of terrific reasons, is being touted as a win-win for businesses and consumers alike. Because major corporations are using the same networks as the Joe Nine-to-Fives of the world, openness allows for new  scenarios that are both challenges and opportunities.  Opting to live in glass houses gives way to what The Cluetrain Manifesto terms The End of Business as Usual and leads to a new level of    connectedness, accountability, documentation and the overhanging threat of being caught and called out in a mistake or a lie.

Just as Mark Zuckerburg recently said, “public is the new social norm” and transparency doesn’t end with business. Personal lives are often conducted under the watchful eye of social media, which allows friends and followers to know a user’s status and location. As Community Moderators, Jessi and I have been tasked with living and breathing social media. Our lives are as increasingly transparent as the emerging media dictate they should be. With the mainstreaming of location-based applications, that’s pretty see-through.  Every move is documented and made available to whomever we deem worthy.

Checking in on Four Square is somewhere between    a habit and a nervous tick for me. As I sat down to    meet an ex at a Chicago loop watering hole, I    checked in as per usual. My roommates, who    aren’t enormous fans of this character, had text    messaged asking where I was. When I failed to    answer, which I will now admit was on purpose, they    referred to my last check-in on Four Square and saw    that not only had I checked-in, so had my ex. At    which point, I received the following text message:    “Busted. You and Ryan both checked in at Emerald    Loop.” Busted indeed.

Inspired by my own text-message lashing, Jessi and I will walk through the elements of transparency to demonstrate the benefits to those who properly employ it and the risks to those who fail to realize its effects. I will be taking on transparency in one’s personal life using my own failed attempt and Jessi will be talking about it from a business POV.

Element 1: Connectedness

  • Personal: Being linked to friends, colleagues and clients in the social sphere provides more robust real-life connections as well as insights into shared connections and interests. Friends influence each other’s information consumption, and by being connected to the  interesting and intelligent, people can be exposed to news, posts and technology that wouldn’t have been on their radar otherwise. Before adding contacts exercise caution, applying privacy settings with the “significant other’s parent” rule: if you would be comfortable sharing your stockpile of photos or posts with a significant other’s parent, allow contacts to view it. If not, keep it private.
  • Professional: Businesses have the obligation when entering the social space to connect to users in that space. Friending, fanning, favoriting and more become a crucial element to build relationships within this space. That information is public and so companies must be aware that these connections will be examined and become meaningful to a potential customer. If a business does not follow anyone then they risk gaining the image of being egotistical or oblivious. This is a social space and businesses must treat it as such.

Element 2: Accountability

  • Personal: Be yourself. Be honest. Friends will become disinterested or stop following entirely if a user comes across as corporate, dishonest, or negative (sarcastic negativity is a different thing entirely). If a user is pretending not to hear text message alerts, but checks in on Foursquare, his friends will take note and get feisty. However, if users are honest, speak in a human tone of voice and hold their tongues if they don’t have anything nice to say, they will be seen as a trustworthy source of information.
  • Professional: For some businesses this is a dangerous category. The fast pace and high expectations to maintain that pace will surface early when entering any social media platform. Set a realistic expectation up front with the community so if answers take time or further research is necessary, the community is aware and knows that you are not avoiding them. If a business creates a platform then they must acknowledge the activity that happens there—and engage.

Element 3: Always on the record

  • Personal: Please see professional.
  • Professional: “What you say can and will be used against you.” Didn’t TV teach you this already?

Whether the context is personal or professional, it’s important to remember that with social media, comes transparency, and ultimately, responsibility. Friends, colleagues and business associates have more ways than ever to listen, keep tabs on you, engage with you, and hold you accountable. If you forget this, you may well end up like me…getting busted!

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