Posts Tagged ‘ crisis leadership ’
Reality TV no replacement for compassion
Tuesday, June 1st, 2010BP has made numerous missteps in the 5 weeks since the initial explosion that resulted in the massive oil spill. Transparency, or more accurately the perception of inadequate transparency, is one of those missteps. Early on executives from BP and Transocean bungled responses to reporters and others regarding the cause and severity of the explosion and subsequent spill, leaving the public to speculate on both accounts. In the absence of meaningful communication from the sources that are privy to what is happening (in this case BP and Transocean), speculation inevitably led to inaccuracies and exacerbated the blaming game. Lack of transparency also leads to the assumption that the companies are not doing enough, or enough of the right things, to stop the flow of oil. So their communication and strategy up to this point has been fairly dismal.
Generally speaking transparency during a crisis is a good thing—regardless of how ugly the truth is. I do not know what motivated the decision to put the ‘spillcam’ on live feed. Perhaps it was an attempt to change course and become more transparent; or perhaps there were other motivations. Without knowing what prompted this decision I think it may be a stretch to say that the on-going live ‘spillcam’ feed is actually a strategy. Rather it comes across as merely a tactic to try to reclaim some of BP’s reputation by allowing the public to see the top kill maneuver. Doing so merely gives the illusion that they are being more transparent.
Transparency comes in two forms: (more…)
Writer’s Block
Tuesday, April 20th, 2010
It has been almost two months since I contributed a new posting to my blog. In the first few weeks I was not overly concerned, but as time continued to pass and one month turned into two I started to panic. And with the panic came my first ever bout of writer’s block. Some might find this surprising given that as an academic fifty percent of my professional life is devoted to writing. I have written a dissertation, a book, numerous articles for the academic and business communities, and now regular blog postings (or at least what used to be regular). One would think that in the past 17 years I would have encountered writer’s block at least once, but in all honesty I have no recollection of ever having trouble writing. I love the creative expression of the task.
So, why now? (more…)
Toyota: Leading or Folding under Pressure?
Saturday, February 6th, 2010Last week a colleague asked me whether Toyota would become the next Johnson & Johnson in terms of being a pinnacle example of a firm handling a crisis well. At the time, the jury was still out. Toyota did seem to have moved swiftly and decisively in organizing a massive recall of cars across several product lines. And, like J & J, at the time of the initial recall Toyota enjoyed considerable good will, trust, and customer loyalty. On the surface, it seemed as if they could in fact weather the storm as a result of the high reserves of financial capital and consumers’ emotional commitment to the brand.
This week, however, things have completely unraveled for Toyota. (more…)
In the wake of the financial crisis: rebuilding the image of the finance industry through trust
Thursday, December 3rd, 2009“In the Wake of the Financial Crisis: Rebuilding the Image of the Finance Industry through Trust” by Erika Hayes James links the financial crisis with positive organizational management. When stable corporate entities, such as Merrill Lynch and Lehman Brothers, enter bankruptcy, a crisis is definitely occurring. A crisis is defined as a low-probability, high-impact event that poses a threat to a company’s security. What has now become known as “the financial crisis” has affected banks, but also insurance companies such as AIG, and automakers such as GM, Ford, and Chrysler. Perhaps because of what some would call the source of the problem, the subprime mortgage lenders, and their predatory lending practices, an environment of corporate distrust has emerged.
Trust is built when expectations are met over time. Companies acquire trust by fulfilling the public’s needs and avoiding negative outcomes. When a crisis happens, trust is disturbed. Confidence in the abilities of a company and a perception of honesty from its leaders are important to stakeholders. When stakeholders can rely on management to do the right thing, a relationship of trust exists. When that trust is betrayed, however, negative feelings and unproductive behavior can occur on both sides.