Saturday, September 29, 2012

Crisis Management Critical for Reputation


Hi everyone,
Working in the communications team at Chevron has opened my eyes to how important crisis management is in protecting a reputation.
In PR Corporate, a study by Eugene Szwajkowski taught me that a crisis negatively affects reputation, and poor reputation directly affects stock price. This theory really registered with me in August when a disastrous fire hit Chevron’s Richmond Refinery in San Francisco. You probably all saw it on the news? There were over 200 workers who suffered from breathing problems, who then brought forward claims for compensation. That day Chevron saw its lowest stock price in 2012. However, it could have been much worse if Chevron wasn’t so composed.
In PR Principles I learned that during a crisis, the most senior person should be the spokeperson. However, Chevron used the plant manager instead. He worked on the floor with the effected staff. During the press conference he wore his high visibility uniform. This portrayed him to be on the same level as those who were suffering. I think this approach helped the situation significantly. If the same speech had been delivered by Chevron’s Managing Director John Watson, wearing a suit, Chevron would have come across as out of touch with its’ people. Thanks to Chevron’s communications team in America, the plant manager delivered a realistic, open and immediate message to the public:
Luckily nothing like that has happened at Chevron in Australia. Although that is not to say that it won’t. The projects are not in operation yet, but they will be in 2016. Then the risk of a potential crisis will significantly increase, because gas will start being pumped out of the ground, and gas can be a dangerous thing.
I am part of the Chevron Crisis Response Team in Australia, and every month we run a mock emergency meeting. We all proceed to the boardroom and set up our laptops. We each have a designated role and wear a bib (like the ones netballers wear). We have actors who pretend to be various parties such as the media, the government, and contractor companies. They all regularly call our ‘media line’ to update us on the pretend situation. As we receive updates, we prepare ourselves to respond to the emergency. We have a vast amount of prepared material, such as press release and speech templates. This enables us to deliver the message quickly and professionally.
One of the most interesting things that I have learned about a crisis response is that if someone was to actually die from a site accident, we are not legally allowed to release that information until the Police have confirmed so, even if we know about it first and the family of the deceased call us for answers.
I really enjoy the buzz from responding to a mock emergency. It encourages us to think quickly on our feet and we work well as a team when we are put under pressure.
Until next time,
Georgie F

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