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Weekly UpdatesIt was only supposed to be worth $15, according to the police report. Days later, the data backup tape stolen from an Ohio Administrative Knowledge System intern's car began making national news. People's names, Social Security numbers, federal identification numbers, bank account numbers, and even credit card numbers were contained on the tape.
Initial and subsequent public statements about the lost data proved incorrect. A coverup was alleged. Jobs were lost and reputations were tarnished. The security breach, first downplayed by state officials, eventually affected 1.3 million individuals, businesses, and other government entities in multiple states, costing Ohio an estimated $3 million.
DEFINING "CRISIS" AND PREPARING FOR ONE
By any definition, this was a crisis from the start. Natural disasters, management gaffes, accidents, political scandals, and even unproven allegations of wrongdoing all can threaten an organization's reputation and its ability to fulfill its mission.
In today's world, how the public perceives an organization's response to a crisis or potential crisis is critical. And whenever funds are involved, finance officials may find themselves in the uncomfortable position of being frontline spokespeople.
Highly effective spokespeople make the role look effortless because they have years of experience. They also have a script to work from in the form of a crisis plan.
Many government organizations have little or no crisis communications plan in place, and few finance officers have received formal media interview training. During a crisis, there is not much time to think or rehearse. Adrenalin is pumping. Thoughts are rushing. There is no time to start from scratch. And "no comment" will only fan the fire.
This is why it so important to prepare and practice before a major problem strikes, just as safety forces do. Begin by working now with communications experts to create a realistic crisis communications plan with plausible scenarios, defined roles and responsibilities, thoughtfully drafted statements, and updated contact information for key personnel and media. Then, spend the time to drill the plan by practicing speaking at a mock news conference and critiquing on-camera appearances so you will be ready when the time comes.
COMMUNICATING DURING A CRISIS
Journalists, in their very first classes, are taught to ask the "five Ws and an H"--who, what, where, when, why, and how. When faced with a crisis, a twist on the standard five Ws and an H can provide a blueprint for successful government communications.
* How can communications prevent the crisis from growing and speed recovery from it?
* Why are people interested?
* Where should the message appear to reach stakeholders?
* Who should speak?
* What should be said?
* When should it be communicated?
Working in tandem with communications or public information staff, finance officers can address the crisis effectively, serving their constituents and ultimately sparing their reputations and those of others.
How can communications prevent the crisis from growing and speed recovery from it?
Crises are like fires, with effective communications the best way to douse them. The slower the response, the faster the crisis grows, fueled by misinformation, second-guessing, attacks, rumors, and fear. By their very nature, financial problems are complex and sometimes political, making them even more challenging to address. Prompt, thoughtful, respectful, effective communications can counter confusion and replace it with confidence in the leadership.
Why are people interested?
Constituents care how events affect them personally. Higher taxes, reduced services, and lost jobs are some of the issues that must be addressed in human terms. Finance officials need to look past the facts and figures of the problem and communicate empathy and caring for people who may be affected.
Where should the message appear to reach stakeholders?
In a word, "everywhere" that matters. Traditional media outlets, such as newspapers, radio, and television, are the most commonly used mediums. However, other outlets could include:
* Recorded hotline
* Department blog or Web page
* E-mail to staff and key stakeholders
* Face-to-face or interactive/virtual town meetings
* Text messages
* Letters and phone calls to affected people or communities
* Any method that allows affected people to ask questions and get answers at their convenience
Increasingly, corporate marketers are bypassing traditional media, which filter the news to meet their needs, and speaking directly to consumers via their own communications channels. Government agencies are beginning to realize the benefits of this approach, as well.
Who should speak?
It depends on the situation and the talent available.
Conventional wisdom dictates the organization's leader should be highly visible during a crisis. But if the leader makes a statement later proven false--or is ineffective as a spokesperson--his or her reputation, as well as the organization's, could be damaged.
The safest way to meet the visibility criteria is for the leader to assess the situation and to meet with those affected--and the media when appropriate. He or she should express concern about the situation or comment about the confidence he or she has in those assisting in the crisis, leaving the facts to information experts or communications specialists.
The best spokespeople show empathy for the human side of a crisis. They also demonstrate an ability and willingness to handle the crisis through to its aftermath. They are charismatic, confident, and careful with denials. And they know to keep their responses to questions as concise as possible.
What should be said?
It is imperative that crisis communications be honest, accurate, and consistent. By acknowledging problems or uncertainties, people will be more understanding as the situation evolves. It is fair to say, especially early in a crisis, "I wish I had more answers, but this is what we know now."
Regardless of the situation, determine three or four key messages or points you want included in a story about the crisis, and repeat them often. Being spokesperson is like advertising. People, including reporters, need to hear your message three to seven times before comprehension. Remember: people are most likely to remember the first and last things they hear, so end your comments with a summary of your key messages.
During a crisis, rest assured the media will ask speculative questions. Spokespeople need to resist the temptation to avoid conjecture by sticking to the facts. "Bridging' offers a handy technique for getting out of tough interview spots by using phrases such as," I can't speculate on that, but I can tell you ..." and "The real issue here is ..."
When should it be communicated?
Crisis communicators live by this rule: "If there's bad news, make sure people hear it from you first." While it may be tempting to hold off announcing bad news with the hope it never becomes public knowledge, today that rarely happens. Governments that are forthright in communicating problems are more likely to effectively manage the situation and will be viewed as open, honest, and caring. Those that attempt to hide problems need to remember the adage: "The cover up is always worse than the crime."
Timing of communications varies, based on the medium. For instance, Web messages can be uploaded and e-mail messages sent as soon as they are crafted.
When dealing with reporters, the timing of interviews and news conferences is dictated by deadlines. News conferences at 11 a.m. and 3 p.m. allow broadcast reporters to gather their facts before the next newscasts. Daily newspapers work into the evening on the next morning's edition, while weekly community newspapers typically need information a few days in advance.
However, virtually all media are competing to get breaking stories on their Internet sites almost instantaneously. Smart communicators understand that the media are going to fill their Web and print pages and newscasts with whatever information they can obtain--they are not going to wait for official announcements.
According to an annual report issued by the Institute for Crisis Management, the number of finance-related crises covered by the news media has remained relatively stable over the years, but crises have longer life spans than ever. The Ohio data tape theft crisis mentioned earlier made headlines for several months. The Enron crisis began in 2002, but the last executive involved was not sentenced until 2006.
How long a crisis lasts is directly tied to the initial response and how well the organization is prepared. Finance officials charged with helping to manage a crisis need to remember their purpose is to:
1. Quickly and effectively respond to the problem
2. Minimize its impact
3. Protect and reassure stakeholders
4. Prepare and lead the recovery.
Those organizations and officials who achieve these goals will find they will not only survive the incident, but may even see their reputations enhanced.
BRAD AND JANET RITTER provide government agencies with crisis communications and media interviewing programs and workshops. This article was based on their program presented at the 2007 GFOA annual conference. They can be reached at www.bradritter.com, 866/284.2170, or BRitten@bradritter.com.
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