Karma

This summer has seen its share of communication blunders and, as we head into August, we are starting to see the consequences. Tony Hayward has been removed as CEO in light of his poor handling of the oil spill. Maybe that yacht race at the height of the crisis wasn't such a good idea? Apple said it would provide iPhone 4 customers with free cases to improve reception issues that happen when the phone is held in a certain way. General Stanley McChrystal is retiring from the US Army after he was relieved of command of NATO forces in Afghanistan by President Obama, following blatantly disrespectful comments made to Rolling Stone magazine. Laurent Blanc, the new coach of the French national soccer team, announced that none of the players who went on strike at the World Cup in South Africa would play in the next match and that future selections would be based not only on talent but on a strong sense of teamwork, as well. The lesson in all of this is that what you say and do and how it is portrayed in the media and online has a tremendous impact on companies and careers. Tony Hayward didn't cause the oil spill but the problem was his to solve. Instead of showing leadership and providing clear, regular and honest communication, he was portrayed as not wanting to deal with the problem by saying he wanted his life back, minimizing the problem by not providing accurate information on the size of the disaster and not caring by going to yacht race at the height of the crisis. Likewise, Steve Jobs probably didn't design the finicky antenna for the iPhone 4 but he did tout its engineering at the launch press conference. Instead of blaming customers for holding the iPhone the wrong way he should have said right off the bat that the iPhone 4 didn't live up to Apple's high quality standards and that they would find a solution. Instead of a story that persisted for a period of time and tarnished Apple's otherwise sterling reputation, it would have been a one day story that might have actually strengthened their image as a company that can do no wrong. General McChystal should have had media training and a thorough briefing prior to letting a Rolling Stone reporter follow his entourage for a month. If he had done so, he would not have made such rookie mistakes. The problem is that most CEOs or, for that matter, Generals and professional athletes, don't understand the importance of communication and, as a result, don't solicit much input from their communications department or agency. If they had, they would have probably reacted differently.

Robert Dudley's Mission of a Lifetime

Robert W. Dudley has accepted the mission of a lifetime. 

As the new leader of embattled BP, Mr. Dudley has a full plate.

Dudley is charged with picking up the twisted pieces of a massive train wreck and putting it all back together.  Quickly.

He'll need to stand in the fire and not get burned.  He'll need to be decisive and fearless.  But also calm and thoughtful.  Never let anyone see him sweat.

He can't afford, nor can BP, to say the wrong thing -- as his predecessor did on too many occasions.

Dudley needs to move without delay to restore trust among regulators and investors.  But also among BP employees at every management level around the world.  I don't know anyone who works for BP, but I can imagine the conversations they have been part of during summer cocktail hours.  And I suspect many of these discussions were unpleasant for BP employees.

BP has been accused by a number of watchdog groups for taking the easy way out -- cutting corners.  One such watchdog group charges BP with a "culture of recklessness." 

How will Dudley move his troops toward a culture that values safety above all else?

Dudley and BP can't afford to do anything less but to deeply engage everyone of its 80,000 employees to rebuild the company's culture and reputation.  The days of pretty boy Tony Hayward and lip-service treatment to important issues are gone forever. 

Here are a few additional suggestions for Mr. Dudley and BP as the company goes through the most important CEO transition in its 100 year history.

• Pay attention to all stakeholders.  Employees, investors, regulators, media, business partners, customers, etc.  Some of the underlying anxieties of a particular stakeholder group may not be obvious at first but could burst on the scene at inopportune times.
• Develop key transitional messages and err on the side of over communicating to key stakeholders.
• Communicate globally.  U.K. CEO succeeded by a U.S. CEO to run a U.K. company.  This is the perfect time for BP to embrace its global workforce and anoint them as true ambassadors of the global brand.  BP needs every employee believing that BP, over time, will overcome its present situation.
• Make any senior management team changes in the proverbial "first 100 days."  Unlike many CEOs, Dudley isn't going to get a honeymoon period and acting quickly could become his biggest ally.  If he has any doubts about any member of his management team, he should take the appropriate action now.
• If Hayward is truly out of the way, insists he stay out of the way.   

Cluelessness seems to be a global epidemic

What do BP, the French national soccer team and General Stanley McChrystal have in common? Answer -- an almost unbelievable lack of awareness about the power of the press. To sum up this week's blunders:

• a General was fired, or should I say resigned after he and his aides were quoted talking smack about their colleagues and higher-ups in the chain of command;

• the French Minister for Sports said the national soccer team, "tarnished the image of France" following their their first-round exit from the World Cup. During the tournament the media reported on much more than their poor play -- Nicolas Anelka, the striker, made headlines by cussing out the coach. He was kicked off the team which was followed by his teammates boycotting practice and the team captain almost coming to blows with a trainer -- all while the cameras were rolling.

• BP's CEO, Tony Hayward, went sailing while his company's offshore well continued to spew oil into the Gulf of Mexico.

Cluelessness seems to be a global phenomenon with an American General, a French soccer team and a British CEO all providing fodder for the news media. Haven't any of these folks had any media training? It certainly wouldn't seem so. If General McChrystal had, he would have known that his comments would wind up in print. If the French team had, they would have known that letting intra-team disputes become public they would all look like spoiled brats. If Tony Hayward had, he would have known that going off sailing during his company's biggest ever crisis was not a savvy PR move. When the rich and powerful do unbelievably stupid things, it makes us mad. And, with social media we can easily share the stories that made us mad and soon, the story is everywhere. This often results in action being taken -- a general resigning, sponsors abandoning French football players and a CEO... well I guess we will just have to wait and see.

BP Ignored Lessons From The Past

Honestly, at this point is there anything BP can do to even remotely repair its deeply tarnished image resulting from the horror in the U.S. Gulf Coast?

The unnatural disaster is now more than 50 days old with environmental  ramifications that will persists for decades to come.  Like the war in Afghanistan and the on going challenge in Iraq, news of the the oil spill disaster along the Gulf Coast has fast become part of our daily lives.  The images of injured wildlife and interviews with business owners whose lives depend on the bounty from the Gulf waters appear daily on the 6 a.m. and 6 p.m. news broadcasts and all over the net. 

For most of us, the disaster is emotionally close but physically distant.  But for too many Americans, the oil spill is personally and professionally disruptive -- and with a long road until the finish line.

The massive oil slick  is one disaster.  And is one, it seems, that could have been prevented.

The way BP has handled the situation from a communications perspective is yet another disaster.  Also, it is one that could have been prevented from at least spiralling out of control.

You'd think that the brightest minds at BP would have known to not repeat the communications mistakes made by the many global brands whose own disasters preceded BP's.  BP had its pick.  There's the chapter on FEMA and Katrina.  Or the chapters on Tyco and Enron.  Barry Bonds or the Catholic Church.  And perhaps the grand daddy of them all -- Exxon Valdez.

The list goes on and on.  The lessons are there, in black and white.

The latest communication on BP's web site, appearing just today, is that the company is going to donate the net revenue from the oil it recovers from the Mississippi Canyon 252 oil well to restore the environment and habitats in the Gulf Coast region.

And if you don't think that fulfills BP's commitment to repair the damage done by the oil spill, well, you're wrong.  Because, as BP adds on its site, "The creation of this fund is over and above BP's obligations under the Oil Pollution Act of 1990."

That's right. The establishing of the fund is "over and above" what the law says BP must do in the wake of the accident.  Wow. Talk about a failure to communicate.

BP continues to communicate to the world about one of the the world's largest unnatural disasters on its own terms.  Even though the global world of communications professionals is at its disposal and almost begging to assist a brand that is sinking like a stone. 

What's past is past.  But if BP chose to listen, here are five ways -- from among many more -- it might have protected the brand it has been building for 100 years:

• Present an objective and honest assessment of the situation as soon as they had a good measure on things.  Tell the world this is a first for BP and the oil industry at-large and that they are unsure if known methods of plugging a massive oil leak will work in this particular situation.
• Don't create false expectations.  Tell the world a number of proven and untested techniques will be deployed and that the outcome, due to the uniqueness of the situation, is uncertain.
• Keep the lawyers at arm's length. While liability is certainly an important consideration, the company also has to think about its long term reputation and the viability of the organization.  It's not just about getting through the crisis at hand but is also about reputation recovery and sustainability.
• Put out as much information for public consumption as possible and not only the information the company wishes to control.  Transparency will earn trust over time. Most people can see spin coming from a mile away.
• Instead of insisting on CEO Tony Hayward as the primary crisis spokesperson, solicit the support of a trusted, honest communicator who would be perceived as more objective than a company executive drenched in the company's stock.