Crisis management is all about achieving the right emotional response. People act on what they feel so as a spokesperson, what you say and how you say it matters. In a crisis, what a leader makes their audiences feel matters so regardless of what strategy you choose, leaders need to be conscious of what they say and do. The following three cases provide examples of what not to do if you ever find yourself faced with a PR crisis.
1. Tony Hayward, BP — ‘I’d like my life back’
When an explosion occurred at the Deepwater Horizon Oil rig operated by BP in April of 2010, BP CEO Tony Hayward initially downplayed the spill but later admitted that it was an ‘environmental catastrophe’. The explosion which killed 11 people and caused oil to spill from the ocean floor at an alarming rate was already in itself a full-blown crisis and the subject of much discussion in the news when Hayward compounded the problem with a series of mistakes in responding to the issue. Hayward received criticism for several statements made during the crisis but he received the most criticism for a statement he gave to a reporter on the 30th of May in which he was quoted saying “There’s no one who wants this thing over more than I do, I’d like my life back.” Not shockingly, the statement was perceived as selfish and resulted in a US Representative calling on Hayward to resign. Additionally, in reference to Hayward’s remarks, President Obama commented that Hayward “wouldn’t be working for me after any of those statements”. Less than two months after his remarks, BP announced the ousting of Tony Hayward from his position as CEO.
2. Lloyd Blankfein, Goldman Sachs — ‘Doing God’s Work’
While the global economy was reeling from the effects of a financial crisis, Goldman Sachs became the subject of wide criticism due to the size of its staff bonuses and the existence of a strong anti-Wall Street climate. In the midst of all this, as if to provoke Goldman Sachs’ enemies, CEO Lloyd Blankfein was quoted as saying in the Times of London, that he was ‘doing God’s work’ even while admitting to being the focus of public outrage. This comment of course did nothing to endear the institution to the public. While Blankfein did not have to capitulate to an outraged public, it would have been good for him to display a greater level of sensitivity to the feelings of the public. People were angry because bailouts had been very vital in saving Goldman Sachs. The huge bonuses were seen as an injustice and Blankfein’s comment only inflamed public outrage further due to the perceived arrogance behind it.
3. Elon Musk, Tesla — Death as a statistical inevitability
When Joshua Brown, the driver of a Tesla, was killed in an accident because neither he nor the car’s autopilot system detected a coming vehicle, Tesla was instantly plunged into a crisis situation. However, it was the company’s dismissal of death as a ‘statistical inevitability’ that really drew criticism and struck stakeholders as heartless. In one instance, Musk retweeted a tweet saying “1.3 million people die a year in car accidents. Yet, 1 person dies in a Tesla on autopilot and people decry driverless cars as unsafe”. This was in addition to the fact that an initial statement from Tesla had opened by defensively pointing out that this was “the first known fatality in just over 130 million miles”. Musk continued with a tirade of angry tweets that drew massive criticism and undermined the company’s credibility. Quoting statistics on why you think a death is insignificant just doesn’t appeal to a jury in the court of public opinion during a crisis as research has shown time and time again. What such an action would seem to suggest is that a company is alright with sacrificing human lives in pursuit of strategic goals and is therefore likely to act in a negligent manner.
The Takeaway:
When faced with a crisis, it is important for CEOs to know how to respond in a way that maximizes public support and minimizes outrage. Crisis management is not only about logic and rationale in presenting data and strongly defending your position. Ultimately, it’s about emotion. That is why as a CEO, your response (especially where tragedy has occurred), should be one of compassion first and foremost.
CONTROL, by Fiayo. 