Handle a Crisis Effectively With PR

By Mike Pilarz

Sometimes the greatest opportunity to bolster a company's image is hidden amongst a torrent of panic and calamity.

In a crisis situation, even the most cool blooded chairman often finds himself frozen and unsure. What do we say? What don't we say? And perhaps most importantly- how do we fix this?

Rarely do corporations view a crisis situation as anything more than a debacle that must be quickly resolved and forgotten. But if handled properly, even the most seemingly devastating situations can be transformed into an opportunity to showcase the resolve of one's company.

About 20 years ago, Johnson & Johnson Co. was faced with such a situation. When seven people on Chicago's west side were found dead after ingesting cyanide laced Tylenol, the entire nation was left wanting answers.

Effective public relations not only saved the day, it saved the company.

Johnson & Johnson did not cower away from the media. In fact, they embraced radio, television and print media as the most effective way to warn consumers not to consume Tylenol products until the situation was resolved.

Additionally, 31 million bottles of Tylenol were recalled, and the company offered to replace existing bottles of Tylenol free of charge.

These actions combined with a new, safer package design, a strong marketing campaign, and plenty of favorable media coverage allowed Tylenol to remain atop the list of over the counter analgesics.

While the Tylenol incident may be somewhat dated, a more recent corporate crisis is certainly fresh in the minds of most- especially those on the east coast.

Although DTE Energy Co. wasn't faced with seven deaths linked to their product, they were faced with 2.1 million customers left angry and in the dark in August of 2003. Almost immediately, DTE utilized the media to deliver essential messages to its customers.

In light of the September 11th terrorist attacks, many confused customers were left wondering if the blackout was somehow more than an accident. DTE reassured customers that there was no evidence of terrorist involvement in the blackout.

Obviously, customers were also anxious to know when power would be restored. Initially, DTE was probably just as clueless as the general public as to when the problem would be resolved, so they didn't make a promise which couldn't be kept.

DTE told consumers that power would be restored by the evening of Sunday, August 17th. But to the delight of those left without power in the sweltering August heat, power was restored by 6:30 p.m. Saturday.

Local media praised DTE for their handling of the situation. An August 20th Detroit News story titled, "DTE's Earley proves blackout's bright spot" commended the company and it's CEO, Tony Earley, saying, "If DTE and Earley get any reputation for their handling of the outage, it should be that they under-promised and over-delivered, a rare combination in a business and political world given to hype and cheerleading."

One can only guess as to what might've happened to both of these companies had their public relations efforts been unsuccessful. But judging by the millions of bottles of Tylenol still resting in medicine cabinets across the country, and the millions of consumers still relying on DTE to power their homes and workplaces, the image of both companies has remained at least untarnished, and perhaps even enhanced.

Annaloro Promoted to Senior Account Executive
at Eiler Communications

Ann Arbor based Eiler Communications has promoted Jessica B. Annaloro to senior account executive in response to her exceptional performance with several key clients. She was previously an account executive.

Annaloro currently manages several Eiler accounts, including Genetics Squared, Ann Arbor IT Zone, MichBio, CFI Group, and the Michigan Venture Capital Association. She also provided public relations counsel and support for the recently held Michigan Growth Capital Symposium.

"Jessica has become a very proficient interface with many media outlets," said Larry T. Eiler, chairman and CEO. "Her ability to successfully identify and establish rapport with key journalists has resulted in powerful media placement for several of Eiler's clients."

Annaloro began at Eiler Communications in 2001 after graduating from Eastern Michigan University.

Sandy Eiler Named one the
Most Influential Women of 2004

Business Direct Weekly (BDW) named Sandy Eiler, President of Ann Arbor based Eiler Communications, one of the most influential women of 2004.

Eiler was one of 25 women honored from Washtenaw, Livingston, and western Wayne counties. She was chosen for her outstanding influence in the business world, in the community, and for her excellence in public relations.

Eiler began her PR career in 1987, when she founded Eiler Communications with her husband Larry Eiler. Prior to starting the business, she worked for 25 years as a registered nurse, and served in supervisory and management positions at hospitals in Ann Arbor and in New York.

After being diagnosed with breast cancer in 1989, Eiler became active in several awareness organizations, and ran a pro bono media campaign for Expiration Inspiration, which recognized a team of 17 breast cancer survivors who climbed Argentina's 23,000 -foot Mount Aconcagua in 1995. Eiler's efforts earned she and the rest of the team a private audience with former First Lady Hillary Rodham Clinton at the White House.

2004 marks the second year that BDW has conducted the awards. A committee of four women - three of whom won the award last year - reviewed the nominations and selected the winners. The committee included Pat Convery, President of the Howell Area Chamber of Commerce, Susan Lackey, President of the Washtenaw Development Council, Barbara Jones, Corporate relations manager of the career services center at Eastern Michigan University and Jan Davies McDermott, owner of Davies House in Georgetown Bed and Breakfast.

View the BDW article at www.eilerpr.com.

Results from PR?
SO WHAT? WHO CARES?

Consistent communication is imperative. But it will never replace results. PR is a cost-effective and credible tool to help a client, or company, attain and maintain buzz and believability. Demonstrate results that help people understand its value.

Because it is not widely understood, many PR people have over the years lamented its often lowly status in a business - and its sunken regard by many corporate executives.

Here's why.

• PR people often have not been inside a business and do not understand the issues and inner workings, the ebb and flow of a corporation.
• PR people do not always, or even often, understand how a business works. How finance, operations, manufacturing, marketing, sales, HR and other disciplines must work cohesively for a business to succeed.
• PR people often seem to think the mere distribution of a news release will suffice. That may well be for big names like Microsoft or Oracle. But it surely is not what has to result if a company is "on the make," that is, trying to become established.

PR people have to show value-add for their services by demonstrating results.

• How has a specific target been affected by a PR campaign?
• What did that group of potential buyers know before a program was enacted?
• What does it know and believe one or two years later?

Measuring results is key to establishing the position and regard of PR in any organization. Here are some ways to achieve that:

• Pre-campaign survey of target groups to determine their knowledge and perception.
• Analysis of media and analyst interviews and coverage, before, during and after a PR campaign. This can easily be done via e-mail by firms like HR Gems, an Ann Arbor business conceived at the University of Michigan Business School. It can also be through focus groups, surveys that are mailed to a target group, phone surveys.
• Buzz among customers and prospects. What do they know? What do they say? Do you have to sell hard to them, or are they receptive because of PR materials they have seen?
• Are you well known among the target group you sell to? If so, how do you take advantage of that edge?
• Report on actual coverage - broadcast tapes, news clips.
• Comments from media and analysts.

The fact of the matter is that many business people do not know anything about PR. Why? No exposure. PR people do not in general do a good job of educating target groups about the value-add of PR. Some do "get it." But the majority need hard selling, must be convinced that anything they spend will have a good return on investment.

Larry T. Eiler