Public Relations Princess

Public Relations Blackout for Toyota Dealers

I was having lunch with a friend last week and he mentioned that his brother and he had wildly divergent careers. While my friend Larry chose to be a journalist, his brother followed in his father's footsteps and became a car dealer. This seemed like a good decision (money-wise) until last month's Toyota debacle started to unfold.

Larry related a jaw-dropping story to me that inspired this post. Aside from the extra money and replacement parts sent to the dealerships, Toyota did not provide its dealerships much guidance on how to handle the inevitable media crush. In fact, Toyota forbade a group of 1200 dealers from hiring their own crisis communication firm to help them deal with the devastating effects of the recalls.

Larry related his brother's own incredible experience as evidence of the disconnect. His brother received a call from the local ABC affiliate,and agreed to do a live interview. He was stunned when the local affiliate arrived with ABC national in tow! He had no media training and no approved key messages. Thank goodness, Larry's brother was able to keep his wits about him and not blow the interview.

What steps should Toyota have taken ahead of the crisis to help its dealers cope with a crisis of this magnitude?

1. Imagine all the things that could go wrong: The first step in crisis planning is taking on the role of Debbie Downer. You have to sit around a table with your stakeholders and imagine all the terrible things that could possibly happen to the business. In Toyota's case, a massive safety recall certainly would have made that list.
2. Spend the money to create a crisis communications plan. It's possible that Toyota headquarters had a plan before the crisis, though I sure couldn't tell. But one thing's for sure. The dealers were woefully unprepared to handle it. Even car dealerships need crisis communications plans.
3. Be familiar with your local media outlets and cultivate those relationships. Be available year-round for car-related stories and be a go-to source of information. TV stations, especially, are under tremendous pressure to find a controversial public safety angle. Don't take a chance that you'll be the one they pick to "expose."
4. Train your staff to recognize and react appropriately to the crisis. Every staff member should know their role. 
5. Get the advice of a public relations professional, even if you have to pay for it with your own money. No one has to go it alone, and there are plenty of well-trained crisis managers out there who are adept at steering clients through a crisis. Obviously, it's best to retain someone ahead of time so they can familiarize themselves with your business.

I know all my friends in the business can help me think of what I missed. In case you are wondering, I believe that Toyota will recover, but it might take 10-15 years for all the lawsuits to be resolved.

Top Ten Reasons Healthcare Reform Needs a Public Option

Ok people. The PR Princess is taking a day off and allowing Soapbox Princess out to play today. Sometimes, in life and in business, you need to take a risk. But the risk is worth it to me if our nation ends up with a healthcare bill that covers most Americans, ends random and discriminatory business practices, and most importantly, saves lives.

President Obama is allowing his leadership on this issue to be taken over by special interest groups. If I were his executive coach I would remind him how much influence the bully pulpit of the presidency carries and urge him to take the fight to the mattresses. His campaign staff and volunteers are reminding him of their sacrifice in these ads, which are truly grassroots efforts, unlike the astroturfing of the far right.

So, without further ado, Soapbox Princess presents the Top Ten Reasons We Need a Public Option in the Health Care Bill:

1. Automatic coverage: Every U.S. Citizen would have health coverage simply by virtue of citizenship. This would eliminate costly door-to-door campaigns to make sure everyone signs up. If you become ill or injured and haven't signed up, you are allowed to fill out a simple registration form at the hospital or clinic you show up at.
2. Cost savings: During Medicare drug coverage plan debate, our elected leaders allowed the pharmaceutical industry to continue to fleece the public by not insisting on discounts to the Medicare program on prescription drugs. A public option would create the largest group of insureds in the U.S. and therefore the group with largest bargaining power. By the way, the pharmaceutical industry hasn't stopped trying to fleece us.
3. Human Dignity: In a rare and beautiful moment, the Obama administration and the Pope actually agree on something. People can't help it when they get sick or in an accident. Only the luckiest among us roam the earth unscathed from an unplanned trip to the hospital sometime in our lives. It simply amazes me that a lot of the loudest protesters consider themselves to be Christian, yet have no problem knowing that millions of their fellow Americans are suffering due to lack of affordable health care? WWJD? Hmmm, let me guess!
4. Electronic medical records: In this digital age, it is amazing that a proven cost-saving and life-saving technology is still the exception rather than the norm. Using electronic records would also allow doctors and researchers to share outcomes and treatment breakthroughs with each other much more efficiently and quickly.
5. Spending priorities: So, let me get this straight. It's OK to spend over a trillion dollars on an unnecessary war that has killed more than 5,000 Americans and disrupted millions of lives, but it's not OK to spend a trillion on health care? Someone's going to have to explain that one to me like I'm a two year old.
   
6. Monopolies: In places like Iowa, there are only two major companies controlling just about everything. We have the behemoth, Wellmark Blue Cross/Blue Shield, and we have John Deere Health United Health Care. (edit thanks to my concervative friend Louie Laurent who keeps me honest) Those two alone insure 80% of all Iowans. And as I found out earlier this year, when my 19-yo daughter was denied coverage by Wellmark due to a "pre-existing condition," I found out they are very choosy about who they cover, for any price. A public option would disrupt monopolies and force these companies to compete on price, just like any other business.
7. Economic development: The U.S Chamber of Commerce is supporting health care reform, as are small businesses, big businesses, non-profits, unions, the AARP, and public entities of all shapes and sizes. Why? The inability to provide affordable coverage for employees hampers business development and expansion efforts all over the country.
8. Untie access to health care from employment: The United States has this oddity: You only deserve affordable health care if you work for an employer that offers it? Think about how asinine that entire concept is. What about businesses that lay off employees or go out of business? What if you are too sick to work? What if you have a great idea for a new business and want to venture out on your own?
9. Patchwork regulations around the country: There are as many rules as there are states and companies operating within the states. A public option with one set of rules and simple reimbursement forms would save billions in paper shuffling costs.
10. Affordability: When I had the option to continue my health insurance through COBRA, my premium would have been more than my house payment. There is just something fundamentally wrong with that. Public coverage would spread the costs out to a larger pool of people and prevent them from being dropped. I pay taxes too, and if I could choose where to put my tax dollars, it would be on providing health care to all Americans. Also, there are millions of uninsured people that would be willing to pay for affordable health care, but are locked out of the system.

There you have it. My healthcare manifesto. Please share with your friends and neighbors. I'd love to hear your comments. Now, I have to pick out my outfit for tonight's Obama healthcare speech. C'mon, President Obama, you have millions of Americans out here waiting for the change you promised.

Goldman Sachs Flushing Its Store of Goodwill Down the Toilet

It is not often that you run into a company that has been around since 1869. This company has former officers that run government and have the president's attention. This company has tirelessly given money to causes as diverse as climate change to developing female leaders.

So why on earth, I ask you, would Goldman Sachs wad up its store of goodwill, built up over generations on the backs of its founders, and flush it down the toilet?

Goldman Sachs is planning to pay its employees HUGE bonuses, just weeks after saying it will repay the government its stimulus loan. This would technically free the firm from the limitations set by the government on bonuses. But why, at this time when the country is experiencing the worst recession in a quarter of a century, would Goldman snub its nose at the world and choose to be the poster child for Wall Street excess?

There are even conspiracy theorists out there who take it one step further. Matt Taibbi of Rolling Stone Magazine wrote a scathing article just this month about Goldman's role in all of the major financial bubbles of the last few decades (Internet, housing and commodities) and focuses on Goldman's role in these debacles. I love Matt's quote in this video: "Basically, Goldman has found a way to sell crap, slap a Triple A rating on it, and sell it to a bunch of big institutional investors."

There is a time in every company that management has to sit down and intropectively decide what it wants its company's image to be. Goldman Sachs, your time is now. I hope you straighten up and fly right.

Boy Scouts Destroy Trees?

Every once in a while, an organization violates its own oath, flying in the face of everything you thought you knew to be true about it.

Disclaimer: I was a member of the Girl Scouts, and got kicked out of my Brownie troupe. Long story. Bottom line, before I had my magic wand, I used to say some pretty stupid things. Besides, I was nine. Gimme a break, ok?

Back to the Boy Scouts tearing down trees. What's up with that?

The Seattle Post Intelligencer (the best newspaper name in the whole world), has completed an investigative report on controversial logging practices designed to turn a quick buck for the beleaguered organization.

Scouting councils nationwide have carried out clearcuts, salvage harvests and other commercial logging in and around sensitive forests, streams and ecosystems that provide habitat for a host of protected species, including salmon, timber wolves, bald eagles and spotted owls.

Boy Scout councils have logged and sold for development properties bequeathed to them by donors who gave the lands with intentions they be used for camping and other outdoor recreation.

In some cases, councils have sought to use revenues from logging or land sales to make up for funding lost because of the organization's controversial bans on gays and atheists from membership and employment rolls.

Talk about a black eye. Haven't they learned from their past mistakes? Who is advising them?

The Boy Scouts should have a long-term conservation plan, complete with tree-trimming/clearing schedules for all of their properties, along with tree-planting schedules. Each and every clearing project should have the stamp of the local entity in charge of regulating it, as well and the blessing of any donors that may have bequeathed the land in question.

This is a perfect time to say that this should be a part of their long-ranging strategic plan, which also includes communications guidelines.

My work is done here. What do you think?