10 ‘hidden’ ways to score a bad reputation

Why do I call them “hidden” ways? It’s simple – chances are good you’ve never thought about them.

I’m working with a client today that had their office broken into.  Despite being under lock and key, three laptops were stolen, and along with them, confidential information onover 8,000 customers.  It’s truly a case of “bad things happen to good companies.”

My client is a victim, yet they are now spending a lot of money to inform eight thousand people their identity is at risk.  Not only is this a huge financial hit short term, the long term consequences have yet to play out.  Will they lose customers?  Not if I can help it.  But needless to say, my client is not having a great day.

My role is to step in and stop the bleeding, and turn things around. We’re going to do it – at the end of the day, this will be a fantastic opportunity to reinforce customer trust and confidence.  But it’s a lot like a forest fire.  Sometimes, a forest fire is a good way to kickstart new growth.  Sometimes, despite the best intentions, you end up burning down entire communities by accident.  No one wants to see that happen.

Since a new year brings new challenges, I thought I’d compile a list of ways you can have a really bad public relations day that you probably haven’t thought of – yet.  Since it’s 2010, I’ll come up with ten (and only ten, as opposed to 2,010!)  Each are conceivable, real life situations that happen every day… and yes, each are easily solved if you’ve prepped for them in advance.  But have you?

10/ Watch your competitors burn with glee (aka ‘afflicted competitor syndrome)
When “Balloon-Boy” Falcon Heene was dominating the CNN feed one afternoon last fall, I received a phone call from one of the largest manufacturers of ballooning equipment in North America.  Obviously, this manufacturer had NOTHING to do with the Heene family… that contraption was entirely home-built.  Nevertheless, by the time I received a phone call, the company had received over fifty (!) media requests for interviews.

If your competitor does something dumb, don’t assume it reflects ONLY on them… especially if you share a territory, a technology or a customer base.  No matter how awful your competitor is, their bad day can quickly become yours as well.

9/ Don’t Sweat the Small Stuff
The Challenger blew up because of a bad o-ring.  Maple Leaf staged a multi-million dollar food recall because a knife wasn’t properly cleaned.  If you discover ‘little things’ going wrong, the easiest way for that little thing to become a full blown forest fire is to ignore it.

8/ Short-Sell Stupid
Look – if it’s dumb, chances are good you’ve done it.  I know I have.  And if you’re so clumsy in real life, why do you expect your employees to be better?

Who’s job was it to clean that knife at Maple Leaf – and does it really matter?  Did Domino’s plan for one of their employees to pick their nose, sell it with a pizza and capture it on Youtube?  Of course not.  Can you guarantee one of your customer service reps will never swear at a customer?  Of course you can’t.

People can be inherently stupid.  Planning for that isn’t insulting – it’s just good corporate practice.

7/ A rising tide can lift all boats.  An ebbing tide… well, don’t ask.
Imagine being in charge of a high-tech start up three months before the tech bubble burst in the early 2000’s.  Or how could you manage Investor Relations for ANY publicly traded company between October and March of last year?

Did you do anything wrong?  No, not really.  Does that matter to the investors who want to turn your annual report into toilet paper?  Not one little bit.

6/ Guilty by Association
Do you know where your raw materials come from?  Have you visited their warehouse?  Have you ever wondered WHY their quote was cheaper?  In an era of ’sustainability,’ accusations of sweatshop labour or environmental sins can have damning consequences.  The list of accused organizations reads like a Fortune 500 list – Apple Computer, Nike, Wal-Mart, even Kathie Lee Gifford.  It’s simply not enough to make sure only your own house is in order.

5/ The Golden Competition (aka the OPPOSITE of afflicted competitor syndrome)
I try to avoid partisan examples, but look at  the Republican National Committee.  In one year, their competition a) swept Congress b) won the Presidency, and c) won the Nobel Peace Prize.  If you’re in charge of communications at the RNC, that’s a solidly bad year.  What did the RNC do to deserve all of that?  It doesn’t matter if they deserve it or not – it’s happened.  And as a result, it’s a tarnished brand.

Obviously, time heals all wounds, especially in politics… but it’s not a huge leap to ask, “Has this happened to me or my brand in the past year as well?”

4/ Assume you’re Secure
Look at the example at the top of this page.  My client is spending a small mint to potentially infuriate 8,000 of their best customers – because it’s the right thing to do.  Those three laptops were behind two locked doors and chained to their desks.  It didn’t stop the criminals.  Whether it’s a hacker, a careless employee or downright negligence – how can you prepare for having your dirty laundry aired in public?

3/ Assume your People are Happy
I’m always cynical about claims, “our people wouldn’t do such a thing” or “we have the best employees in the world.”  Keep in mind – I’m self employed for a reason.  I have a simple prism… I am a good, honest and loyal person.  And if I don’t want to work for you, why would anyone else?

Why on earth do you think your employees are happy?  Have you asked them?  Have you asked them… lately?  Have you honestly asked them what you can be doing better?  Try a simple question:  “Would you leave this company tomorrow if you had a similar opportunity?”  You may be shocked at the results.

Companies that ignore their own people deserve what comes from ‘that.’  And typically, ‘that’ is never a good thing.  Damaging headlines… strike action… regulatory reviews… government inspections… Chances are good they were instigated by a disgruntled employee.

Which means, as the employer, you really have no excuse not to have seen that one coming.

2/ You Don’t Know what You Don’t Know
The stories are legendary… Chrysler had to rebadge the “Lacrosse” in Quebec because in French, it’s a synonym for masturbation.  In Spanish, the Chevy Nova translated to “Chevy doesn’t go.”   Tropicana pulled their packaging after forgetting to ask it’s customers if they liked the new design.

Whether it’s cultural sensitivities, regional disparities, religious differences or accidentally using the logo of the wrong local sports team, screw ups happen.  Sometimes you can’t prevent it – no one knows everything.  But how do you repair the damage after it occurs?

1/ Acts of God or Terrorism

Some mistakes you ought to have seen coming.  Not having a response is simply bad judgement.  But then – some mistakes are more than mistakes.  They’re called crises.  Fire, accidents, explosions, shootings… unfortunately, none of them are unrealistic.

Here is an inescapable truth:  The fact you were targeted by tragedy does very little to influence public opinion.  How you respond to that tragedy means just about everything.

How are you prepared?