Archive for July, 2013

Why Crisis Communications Can’t Wait: Paula Deen and Ed Burkhardt

Crisis Communications Waits for no Man (or Woman)

The very recent experiences of celebrity chef Paula Deen and railway operator Ed Burkhardt illustrate why you can’t wait to implement crisis communications in our digital, 7/24 world. Both waited far too long to call in some crisis communications assistance, and are now paying the price.

Paula Deen: Celebrity Chef from the American South
In Deen’s case, her price is millions of dollars in personal income.

Until three weeks ago, she was best known for championing Southern American Cooking on three popular Food Network TV shows. For more than a decade, she’d steadily built a personal brand that combined sass, grits, butter, and homespun charm. She and her business team translated this popularity into almost $20M in earnings in 2012, thanks to her shows, multiple restaurants, and a ton of product merchandising and endorsements marketed to middle America.

Her downfall from this lofty peak has been brutally swift. The catalyst was a May court deposition that was part of a a former employee’s racial and sexual discrimination lawsuit. The plaintiff’s lawyer asked her if she had ever used the N-word. Deen admitted she had. The deposition became public. Deen remained silent while others seized and molded the narrative. It was an easy sell, given the history of White vs. Black racism in America. Completely overlooking ample proof that scandals involving race cause huge (often irrevocable) career harm, it took almost a week for Deen to try to recapture command. Way too late, the barn door was open and the horse’s tail was barely visible in the distance.

Food Network, WalMart, Target, Novo Nordisk, Home Depot, Caesars Entertainment and Smithfield Foods have all terminated business relationships with her. Eight days after her commercial downfall began, she hired Washington D.C. crisis firm Smith & Co, a contrary example to the adage that “good things come to those who wait.” Not when you’re faced with a scandal that can affect your career or business.

Ed Burkhardt: Contemporary Railroad Baron
Ed Burkhardt’s crisis situation is much more recent, and on the verge of spiraling really out of control, if he doesn’t get his PR department to dust off the CC plan. Burkhardt is the head of Rail World Inc. the parent company of the Montreal, Maine and Atlantic Railway (MMA), which owns the train that derailed and set fire to the downtown of Lac-Megantic, a small Quebec town shortly after midnight on July 6.

Note: It would be stunning if such crisis communications plans did not exist. The derailment was Canada’s 7th runaway train incident since 2006, so it is not as if the PR department would have been planning for something unforeseeable or statistically unlikely.

Lac-Megantic Train Disaster

The train derailment in Lac-Megantic illustrates the importance of putting crisis communications plans into action sooner than later

As the MMA crew slept in a nearby motel, the 73-car train of tank cars carrying North Dakota shale oil started to move along the downhill grade of the tracks, gaining speed until cars started jumping tracks in the town center. The YouTube videos are amazing, if you can ignore the fact that the flames are incinerating dozens of bodies.

It took something like 36 hours for firefighters to extinguish the flames. It took much longer for RailWorld to realize that “maybe we should send the boss over for a visit.” (I assume they have a PR or communications department?).

The visit finally took place yesterday (Wednesday). Burkhardt showed up, and found himself in the middle of a bi-lingual lesson on profanity, the residents–quite justifiably–more than a little hostile. My question to Rail World Inc. would be, “what the hell was more important on Monday and Tuesday than Burkhardt making a public apology in person in the town that just lost its downtown and 50 citizens, friends, co-workers, and family members?” All he needed to do was show up, sincerely apologize, and explain that the accident is under investigation.

What Not to Do: Throw A Scapegoat Publicly Under the Bus
Instead, he waited four days after the crisis began, finally appeared, made strangely unsympathetic proclamations such as “I guess it’s my role to collect all this criticism,” then threw the train’s engineer under the bus (to use a transportation metaphor) by suggesting the engineer’s culpability, while also noting that the man “had a completely clear safety record up until Saturday.”

This is going sideways really fast. Even overseas, the company is losing control of the narrative. This morning, Britain’s Guardian Newspaper published an editorial, “Quebec’s Lac-Mégantic oil train disaster not just tragedy, but corporate crime.”

It’s like watching the Paula Deen scandal all over again, except with 50 fatalities, and a previously picturesque town resembling a scene in a Jerry Bruckheimer film. Lesson to all: create a crisis communications plan and implement it sooner than later.

Why Startups Need to Hire People Like Kevin Garnett

What Would Kevin Garnett Do?

Here’s the only thing you need to know about startup recruiting; you want to find people like Kevin Garnett. When you find them, hire them.

July 1 marked the beginning of the NBA’s free agency period. The courting of free agents is similar to recruiting to fill positions in a startup. Teams have specific needs. You have specific needs. While the Indiana Pacers should be looking for a new starting point guard, you might need to fill sales, business development, or mobile development positions.

If you’re responsible for startup hiring, you want your team to be comprised of as many people who channel their inner Kevin Garnett as possible. Here’s why:

A Role Model Outside of Basketball
Kevin Garnett is a role model for everyone. He’s a 6’11” power forward who’s been voted to the NBA All-Start Game 15 times! (Despite this, however, Garnett was traded last week from the Boston Celtics to the Brooklyn Nets). Here is Boston’s loss and Brooklyn’s gain:

1. He’s Really Good
This is important. Garnett has been a star since he was a high schooler in South Carolina. He combines above-average talent, work ethic, hustle, a willingness to compete for every ball, and indefatigable passion. It’s a cocktail for success.

Lesson for Startups: Hire smart people who’ll bring passion and fire.

2. He Really, Really Cares
This is more important. He doesn’t coast and he doesn’t take plays off. Boston had a very challenging 2012-2013 season, winning only one game more than it lost (41-40). There were some ugly defeats, and few athletes anywhere on the globe have more menacing scowls than Garnett’s in the fourth quarter of a blowout defeat. He really dislikes losing.

Lesson for Startups: “Go the extra mile.” It’s a cliché, but it’s also the difference between people who will live off their job titles or something they did five years earlier, and people who will get the job done now.

Boston Celtics forward Kevin Garnett

NBA veteran Kevin Garnett smiling in the face of adversity.

3. He Leads by Example
Until his trade, Kevin Garnett was the heart of the Boston Celtics. He leads by example, like an old-school calvary general leading the charge.

Lesson for Startups: Even if you’re hiring for a junior position, look for candidates who have a pathological need to do a great job, regardless of the task.

4. He Demands Commitment From Coworkers
There is no “i” in team. Another well-trod cliché. Probably Garnett’s biggest contribution to a team, and the reason he continues to be a valuable asset in the twilight of his Hall of Fame-career is his ability to get teammates to raise their level of play. He’s old school in the manner of New York Rangers Captain Mark Messier. Had Garnett been on the Pacers this season, there is no way that Indiana would have lost to Miami in the Eastern Conference Finals. He would never have accepted the half-ass effort the Pacers demonstrated in games 5 and 7.

Lesson for Startups: Look for candidates who take responsibility for their effort, their work and their results (especially when the results aren’t great), while expecting the same of everyone else.

What Kevin Garnetts Will Do For Your Startup
This is what you need in startups. You need people who are smart (or quick enough to figure out what needs to be done), hard working, committed to success, and eager for the “as-it-happens” journey on which your company has embarked. You want people who will take the extra step, and do things that most times won’t earn them any recognition, a raise, or even an after-work beer. They’ll make a follow-up customer support call at night on their own time, they’ll ensure the api won’t choke after a future cover profile in Wired, and they’ll take ownership of success even if their equity share is well below 1%.

While the chances of success in a startup are improbable, they’re not impossible. Find people who can bring to your company what Kevin Garnett has brought to NBA courts since 1995, and your chances soar.

Happy Recruiting. (And stop crying in Boston).