Crisis Management at the Speed of the Internet

Trend Report

Bob Hayes, Kathleen Kotwica

• Publisher: Elsevier
• Year: 2013
• eBook ISBN: 9780124115910
• Topic: Computer Science
• Subtopic: Information Management
• Index: Computer Science

Crisis Management at the Speed of the Internet provides security executives and practitioners with an overview of the potentially harmful impact of social media communication on corporate reputation. Within minutes, the online consumer community can propel a company into an image crisis, brand damage, and a financial disaster—even if the viral information isn't factual. It is critical that an organization respond quickly and decisively to crises in online media. The report explores examples of companies that have experienced this kind of impact, and describes practical, strategic methods for mitigating and resolving a crisis, including cross-functional team readiness and internal communications training. It is a valuable resource for any security professional working to create or improve an existing corporate crisis management policy. Crisis Management at the Speed of the Internet is a part of Elsevier's Security Executive Council Risk Management Portfolio, a collection of real world solutions and "how-to" guidelines that equip executives, practitioners, and educators with proven information for successful security and risk management programs. - Provides security executives and practitioners with an overview of the potentially harmful impact of social media communication on corporate reputation - Cites examples of companies that have experienced this kind of threat and describes the successes or failures of their responses - Describes practical, strategic methods for mitigating and resolving a crisis

Examples of Internet-Based Incidents

Domino’s Pizza

United Airlines

Other Examples

Any risk management professional can immediately see the potential for these web 2.0 technologies to be misused to the possible detriment of a company or brand. However, often it is difficult to convince other business functions that hope to leverage web 2.0 (e.g., sales and marketing) to appreciate the possible risks. Here are some examples of what can happen when things go wrong and the company has no process in place to quickly respond.

Domino’s Pizza

Three workers at a Domino’s restaurant in Conover, North Carolina, thought it would be funny to make a video of them clowning around while making food. The video included apparent food contamination by workers. According to a report from Advertising Age, another worker narrated the incident:

“In about five minutes, they’ll be sent out to delivery, where somebody will be eating these, yes, eating them… That’s how we roll at Domino’s.”⁴

The video was uploaded to YouTube and within a couple of days it had been viewed more than one million times, thanks in part to Twitter and other viral social media. The employees were fired and faced felony charges for distributing prohibited foods; they contended the video was a prank and the food was never delivered. At first, the company did not respond, but days later it became clear that the controversy was escalating. The company posted an apology on its websites and asked employees with Twitter accounts to tweet a link to it. The company also created a Twitter account to reassure customers, and its U.S. president issued an apology on YouTube. Even after the incriminating video was removed, there remained locations on the web where it could be viewed.

In response to the incident, Time magazine interviewed experts and suggested five ways Domino’s could respond to this corporate crisis:⁵

• Create a blog on the Domino’s website to help serve as a powerful rapid response vehicle.

• Tap into the company’s most loyal customers and ask them via email to encourage their friends to support the company.

• Update the Wikipedia entry to include a link to Domino’s executive response to the incident.

• Move aggressively to cancel out negative reinforcement of the incident in Google search results, including buying ads from Google to relay positive messages.

• Take a break from commercial advertising until the controversy dies down (Domino’s decided instead to continue with a schedule of advertising).

Unfortunately for Domino’s, the effects of the controversial video on its brand image were far reaching and long lasting. According to Advertising Age, Domino’s quality and buzz ratings (as measured by BrandIndex) were especially impacted.⁶ Buzz fell from 22.5 to 13.6 points, and quality ratings fell from 5 to minus 2.8. Additionally, prior to the posting of the video, Zeta Interactive’s measurements showed Domino’s buzz rating had been 81 percent positive; following its posting, however, that rating dropped dramatically, to 64 percent negative.

United Airlines

When musician Dave Carroll looked out the window of a United Airlines plane on the ground at O’Hare Airport in Chicago and saw a baggage handler toss his guitar onto the ramp, it was the beginning of one of the more convincing examples of the power of viral YouTube videos to attack a company’s reputation. Unhappy with United’s response to his complaints when his guitar was severely damaged, Carroll and his Sons of Maxwell band wrote and recorded a video of a catchy song titled “United Breaks Guitars.” After the video was posted on YouTube, it became viral and was subsequently viewed by millions (the latest count was more than 12 million views). The four-minute, 37-second video was entertaining and also played into general consumer frustration related to airline service, lost bags, etc. The lyrics of the song specifically mentioned a certain Ms. Irlweg who allegedly denied Carroll’s claim for compensation because he didn’t complain at the right place at the right time.

United responded with its own video and reportedly also answered some tweeted comments. To some extent, the company’s response was lost among multiple fake responses posted on YouTube, including some alleging to feature Ms. Irlweg or a United Airlines official. After Carroll declined a belated offer of compensation, the airline reportedly donated $3,000 to the Thelonious Monk Institute of Jazz as a “gesture of goodwill.” United’s written response included the statistic that “99.95 percent of our customers’ bags are delivered on-time and without incident, including instruments that belong to many Grammy Award-winning musicians.”

The impact of the video continued long after it was posted. The incident has been featured on Fox News and CNN. Carroll followed up ...

Table of contents

• Cover image
• Title page
• Table of Contents
• Copyright
• Executive Summary
• Introduction
• Understanding Threats from New Internet Technologies
• Examples of Internet-Based Incidents
• Planning Ahead to Mitigate a Possible Internet Crisis
• When Time Matters Most: Responding in Real Time
• A Comprehensive Approach to Internal Communications
• Additional Resources
• References
• About the Authors
• About Elsevier’s Security Executive Council Risk Management Portfolio