“The secret of crisis management is
not good vs. bad, it’s preventing the bad from getting worse.” ―Andy Gilman, Comm Core Consulting Group
The "2-minute" Maggi noodle of
Nestle India kicked up controversy in India for excess level of Mono Sodium
Glutamate (MSG) and Lead. The laboratory reports show that the company has
violated the health guidelines. Currently
it is banned in six states ―Gujarat, Tamilnadu, J&K, Uttarkhand, Telangana
and Delhi. Who is to blame for this ―company,
government, health officials, brand ambassadors or people?
Companies approach the celebrities to
endorse their brands to enhance visibility for their products and services and increase
their sales. People often buy the products and services because the celebrities
have endorsed them. Hence, the celebrities cannot run away from their responsibility.
When a train accident happens the
railway minster resigns. Did the railway minister do the accident? It was done
by railway employees. But the railway minister takes moral responsibility.
Similarly, brand ambassadors must take responsibility for endorsing wrong
products.
Celebrities
and Endorsements
Celebrities want money and companies
want revenues, and ultimately it is the people who pay the heavy price. Brand ambassadors must be held accountable.
They cannot go scot-free. When they accept the fame for their credit, they must
equally accept blame for their debit. Additionally, it is a business rule to
share both profits and losses. Brand
ambassadors exploit their fan base to make money. At times, brand endorsements strengthen
their brands through advertisements. Hence,
they must be made accountable when things go wrong.
It is a wake-up call for celebrities
and people ―for celebrities, not to endorse every brand just because they get
money; and for people, not to buy the brands just because they are endorsed by
celebrities.
The senior leaders of the company, the
health department, the government and people must take responsibility for this
controversy. Most it is the companies to be blamed for such irregularities. Hereafter,
celebrities must not endorse products and services purely for money. They must
endorse when they receive assurances from the companies, and are convinced
about the credentials of the brands.
Steps
to Overcome Crises
Crises are part and parcel of personal
and professional life. They can happen to any individual and organization. When you look at BP it overcame gulf oil
spill. Similarly, Malaysian Airlines overcame two disasters successfully.
As a leader, whenever you are
confronted with any crisis, don’t be in a hurry to blow the crisis. Trust yourself. Recall the crises you handled
in the past to draw lessons. Find out how other organizations handled such
crises in the past. Take leafs from them. Get facts and figures. Wear your
emotions on your sleeves. Go by reason and logic. Be cool and composed. See the
big picture. Understand the crisis from the grass root level. Invite experts
and brainstorm to create viable solutions. Choose the most appropriate one as
per the situation. Act promptly without any hurry. Communicate clearly with facts and figures to
avoid confusion in people. Lead by example to come out clean. Be bold to face
the controversies. Controversies are part and parcel of life. Hence, act, don’t
react to controversies. Check spread of
rumors. Engage social media managers to
contain the damage. Take it as a
challenge and face it squarely. Don’t delay to communicate with the
stakeholders. If you find that mistakes happened, apologize to contain the
damage.
Conclusion
Crises must be handled with cool and
composed demeanor. They must be handled with tact and diplomacy. If not handled
well, it can wipe out years of hard work, sweat and company’s brand image
within minutes. Presently the social media is very active where people post
negative things rather than positive things. Jonathan Bernstein of Bernstein
Crisis Management Inc. rightly remarked,
“In the 21st century, a social media savant can do more harm than a
trial attorney.” The leaders and CEOs
must take all appropriate steps to overcome the crises and keep all
stakeholders informed constantly to ensure that organizations are back to track
toward northward movement.
“To be effective in crisis management
in the digital age means being able to use social media strategically. There is
no crisis management today without a full understanding of how to use new media
to listen to conversations around your brand in real-time, and understand what
you do and don’t need to respond to.” ―Chris Syme, author of Listen, Engage, Respond
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