2013 Communications Disasters

Welcome back!
It's that time of year when we pay tribute to the Communications Disasters of 2013.  The purpose is to recognize the people and the organizations who defied the odds, went beyond the merely expected and tarnished their brands. But hey, at least you can say..... they did it their way!
1. Just when you thought it couldn't get any worse.....it does!

 Paula Deen The cooking guru from Savannah, Georgia who managed to take an allegation of racist comments and single-handedly used it to destroy her own empire.  At first, she ducked the Today Show to respond to the accusations by citing 'exhaustion'. Then when she finally appeared several days later, the damage had already been done. She was branded a 'racist' and took a pounding in all media - especially online. She lost her credibility and watched her brand become badly tarnished. She either received very bad crisis communications counsel, or she didn't listen to it.
2. Lululemon's customers just want him wrapped in his (over) stretched leotards and thrown to the wolves. 

Lululemon founder and Chair Chip Wilson. Responding to questions on Bloomberg TV's Street Smart program, Wilson clearly was blaming women of a certain weight for causing the pilling problems about which customers had begun to complain. But the final straw was this so-called 'apology' on his website:
“I’m sad, I’m really sad, I’m sad for the repercussions of my actions, I’m sad for the people of Lululemon who I care so much about, that have really had to face the brunt of my actions.” This is an apology?! The focus of his apology should have been to his customers and to women, whom he had clearly insulted.
3. The one good thing is ... smoking crack can never again be seen as 'cool'....

Rob Ford was the clear winner of the "Disaster of the Year" Award. The long-running, slow-motion, disaster featured crack-smoking, drunken binges, insulting comments about his wife, attacks on the Police Chief, video surveillance of the Mayor exchanging packages with known criminals, stolen video of the Mayor allegedly smoking crack, massive denials and then reversals, bowling over a fellow City Councillor, allegations of groping, and a threatened lawsuit earned in a TV interview with newly minted host, Conrad Black, in which he implied that a Toronto Star reporter who had been taking photos of his backyard fence was a pedophile. Of course, becoming the number one fodder for jokes on Letterman, Leno, Kimmel and Fallon turned him into an international celebrity. Watch this clip of Rob and Doug Ford clearly enjoying the video of Jon Stewart on the first (and only) episode of Ford Nation on the Sun News Network. Defiant at all times, even while stripped of many of his powers, he seems determined to stand for re-election. However, at year's end, just when you thought he doesn't have a prayer for re-election...what does he do? He oversaw the Christmas time hydro ("it's not an emergency") blackout in Toronto to mixed reviews. For Mayor Ford, perhaps there is a Santa after all?
4. Nothing like a 'spending scandal' to boil taxpayers' blood, right?

Nigel Wright        Sen. Mike Duffy

The original story about three or four Senators, who were alleged to have claimed expenses to which they were not entitled, morphed into a full-blown crisis of credibility for the Harper Government with the revelation of the $90,000 paid personally by the Prime Minister's Chief of Staff, Nigel Wright, to Senator Mike Duffy. Throw in revelations that the Conservative Party Fund paid for Sen. Duffy's legal bills and there you have it - a full-blown crisis that knocked out of the headlines the government's accomplishments, including the EU Free Trade Deal. With possible criminal charges and no end in sight for the crisis, the Harper Government needs a Plan B if they're going to emerge fully from it.
5. I promise you that you can keep your own health plan if you want. Well not keep it exactly, but visit it, you know..just sign up on the internet...d'oh!
A mere 12 months after his election victory in which 'Obama-care'
played a major role, the failed launch of the internet program triggered enormous public outrage. It didn't help that it took the Administration a couple of months to get hold of the situation and put it (mostly) back on track. All of this came on the heels of a recovering economy that the President would clearly have wanted to be lead the news. That's gotta hurt.

6. At least you have to give him 'E' for Effort! 
The Lac Mégantic Train Derailment and the bizarre news conference four days later held by MMA Chairman Ed Burquardt will be a classic 'how not to' for years to come. 




Paying Tribute and Looking Ahead
So, as we look ahead to 2014, one has to hope that those in positions of responsibility will learn from these disasters. Nah! That's not going to happen. Remember why crisis communications is an on-going business....apparently some people have to learn the same lessons over and over again!

A few disasters were exceptionally well handled - the Boston marathon bombing was well handled even as the city spent several days with the bombers on the loose. The Mayor, the police and community leaders did a terrific job of pulling the city together in a united way. That is one of the hallmarks of effective crisis communications. When the Red Sox won the World Series later that year, it brought it all together in such an emotional and positive way.

The Alberta flood was a nightmare that was well handled by Calgary Mayor Naheed Nenshi in cooperation with Prime Minister Harper and Premier Alison Redford. The Mayor's ability to pull those communities together at a time of emotional chaos was a critical factor in the response to those crises.



The qualities of true leaders

So let's remember, finally, the two leaders who seemed to have understood what it means to be a leader:
First, Pope Francis (Time's Man of the Year) whose simple style and powerfully inclusive messages have served to change the climate, the tone and the priorities of the Church in a few short months. As a result, he has created the opportunity to be a truly transformational leader throughout the world.

The passing of Nelson Mandela in December has reminded the world of his incredible journey that has inspired the world. I just saw Mandela: Long Walk to Freedom, and was inspired all over again by what a true leader - even though he was an admittedly flawed human being - can do in the face of seemingly overwhelming odds. The genuine worldwide sorrow at his passing underscores what he meant to the entire world.
Happy New Year!
On behalf of Laura and the entire McLoughlin Media company and family, we want to wish all of our clients, friends and suppliers a Happy, healthy and 'no crisis' New Year!

Change vs. More of the Same?

Welcome back!
We are in the middle of crazy travel criss-crossing North America. Since my last post, Laura and I have been doing seminars in Edmonton, Alberta, Kelowna B.C., Washington DC, Los Angeles and Ottawa. Next week, Laura is in Nashville while I'm in New York and there are several stops in between. As a result, I have been somewhat remiss in my postings. However, it is the ultimate season for politicos and sports nuts everywhere, isn't it? The World Series is under way, hockey is in full swing and we're deep into football. It's sensory overload for people like me.
Canadians Choose Stability Over Change  
In Provincial Elections in Ontario, Manitoba, Newfoundland & Labrador and Prince Edward Island, the incumbent governments were re-elected. Although mostly by reduced margins and - in Ontario's case - the McGuinty Liberal government was reduced to a minority (by one vote...a 'major minority' as Premier McGuinty called it.) So what was the deal with those results? What happened to all the anger and the desire for change that many had anticipated?
In spite of pockets of anger - such as the 'Occupy' movement - Canadians could have been persuaded to change, if they felt that there was a strong alternative on offer that would benefit themselves, their families and their communities. For the most part, that didn't happen. Even though the Progressive Conservative parties and their leaders in Ontario, Manitoba and P.E.I. put up a spirited fight, they could not overcome one of the most powerful forces in politics - the desire to maintain a steady course in choppy economic waters.
There is no question that the voters in those elections are nervous - particularly as the Europeans grapple with their bail-outs; and the Americans' struggle with the debt, deficit, foreclosures and unemployment. Ultimately a voter will make one of three decisions when anxious about their futures: 1. Stay home. The majority of voters chose not to trudge to the polls and cast their votes. [By the way, I would love it if reporters were to ask the 'Occupy' protesters if they bothered to vote in the last election.]
2. Go with 'change'. That change must be compelling, clear. The Party and Leader must drive a message that you really care about. In these elections, it wasn't about taxes, it was about jobs and economic growth. There were big voter shifts in most of the elections, but not enough to topple the incumbent governments. Attack campaigns work, but they also require a solid alternative view that resonates with the values of your voter universe.
3. Stay with the Party and Leader who represents a 'steady hand at the tiller'. That was what the Conservatives under Prime Minister Harper did in the May federal election as they moved from minority to majority government, and it was what the winning Provincial Premiers did in their wins.  It is using incumbency for its maximum benefit - namely, to portray stability and a solid plan for the future. It's often labeled 'better the devil you know than the devil you don't' - and there is some truth to it However, the fact is that campaigns matter and the winning campaigns were able to use the 'air war' [ads and earned media] with a strong 'ground war' - with troops on the ground, door-to-door, telephone canvas etc.] In a solid campaign it all comes together.
What's at Stake in the Las Vegas Republican Debate?
The Las Vegas edition of the traveling Republican debate circus provides an important opportunity to test the ability of Herman Cain to gain continued momentum or fall back like many before him. Can anyone else move up the chain to stunt the seeming inevitability of a Mitt Romney nomination victory? As the Republican candidates fight for positioning, it's intriguing to watch the rising and falling fortunes of their individual  campaigns.
First Gov. Sarah Palin's slow flame-out as people saw more of her, they began to really question, and then conclude, that she was not Presidential material. Having just read The Rogue: Searching for the Real Sarah Palin by Joe McGinniss  like it or love it, it paints a picture that is unsettling to say the least. Rep. Michelle Bachman appeared to inherit the Palin mantle, rose quickly and then faded as her 'sound bites' began to reveal a lack of depth.
Then it looked like Gov. Rick Perry was going to be the one to take out Gov. Mitt Romney. After several lackluster debate performances, and one or two embarrassing events and comments, his star faded too - leaving businessman Herman Cain in a neck-and-neck race with Romney. [Although it's intriguing that Gov. Perry doesn't seem to mention his success in reducing the numbers of people sent to prison for minor drug offences, even closing prisons and getting people into drug rehab programs. Perhaps he has calibrated that it won't ingratiate him with Tea Partiers, but he has to remember that he has to build on that base, not just cater to it.]
Does Cain really have a chance of knocking Romney out?
Based  on the evidence, no. While he has an appealingly open charm and a lot of credibility in the business world, he is making a lot of rookie mistakes - joking about immigration 'electrical fences that could kill illegal immigrants'. He has a bold slogan '9-9-9' but he has not laid the groundwork for it well enough and has not addressed the problems with it. His proposed 9% flat tax for individuals and companies, along with a 9% sales tax are highly controversial but he has done nothing to alleviate the greatest attack - that his plan is unfair to those who are most vulnerable. Although he could offer a minimum threshold for his income tax, and a sales tax refund for low income people, he has not addressed how to make it more fair. Cain has to realize that as he nears the top of the pile, everything he says will be under the spotlight and there is no room for jokes about serious issues.

While Romney can come across as too slick by half, nevertheless, he has been tested on the national stage for six years. That experience and long-term exposure is critically important to a serious candidate. His Mormon religion is still an issue, but he has reached the stage where anyone [or surrogate, as Rick Perry has learned] who attacks his Mormonism does more damage to his or her favored candidate - than good. Romney's greatest vulnerability is that many still wonder what his true values are, as he appears to have shifted them based on his actions as Massachusetts Governor compared to today - particularly on health care. Romney is clearly the man to beat for the nomination. He just needs a steady, solid performance tonight - in keeping with his 'steady' campaign manner. It's not going to create excitement;  nevertheless he's beginning to emerge as a steady and clear alternative to President Obama.

And remember, steadiness and stability can be highly attractive in unsettling economic times!

Technology Companies in Crisis...RIM Learns a Lesson
For Blackberry users such as me around the world, it was a frustrating week. RIM had to learn again what so many organizations have learned the hard way. Get out ahead of the crisis. Make sure your CEO [in RIM's case, two co-CEOs] is visible. RIM sent out their Chief Technology Officer and held back on their CEOs until a day later. I got caught in L.A. without my Blackberry operating for a day. Although it was an inconvenience, many consumers were more angered by the slow communications response than the triggering incident. Again, another lesson to be re-learned.
 The Perils of Communicating Health Risks
Health care is a risk issue. How you handle difficult or controversial issues in the health care field must be handled carefully. The goal is to raise awareness so that the public will take action to reduce further risk, while avoiding inflaming. Questions have arisen about the handling of a potential health risk through lack of appropriate infection control procedures by a doctor and a public health clinic. The announcement by Dr. Isra Levy, Ottawa's Medical Officer of Health was seen by many to be inadequate as he withheld the name of the clinic and the nature of the procedure in his first news conference. That decision not to release that information while issuing the public warning raised criticism.  However, even though it was delayed by 48 hours, the proper information was released by the much-respected Dr. Levy and he ably defended himself before the media and City Council.  The lesson to 'get as much bad news out as possible - right away' would be helpful for all Medical Officers of Health facing similar challenges in the future. In this CTV National news item in which yours truly was interviewed, see for yourself how the issue came across [fast forward 4 minutes into the newscast].

Until next time, remember, what happens in Vegas....stays on YouTube!