Tag Archives: reputation

Buffett makes good

Like many, I was a little surprised by the initial under-reaction of Warren Buffett’s response to the David Sokol resignation.  In case you missed the full story, Sokol personally bought a boatload of shares of a company that he soon recommended get acquired by Berkshire Hathaway. 

Buffett responded with a rather vanilla quote in the initial press release:  “Neither Dave nor I feel his Lubrizol purchases were in any way unlawful.”  

Quite a flaccid response from the man who once reportedly opined: “Lose money for the firm and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless.”

However, rather than rush to WordPress with a damning blog post, I decided to wait until more facts were made public.  On Monday, an article by Andrew Ross Sorkin restored some of my faith in the Oracle of Omaha.

Continue reading Buffett makes good

Deepwater Horizon: The Video (poll)

All crisis management pros and enthusiasts should take the time to watch the 20 minute video by BP, entitled BP:  A Year of Change

Regardless of whether the 2010 oil spill in the Gulf of Mexico turned you into a BP detractor, supporter or somewhere in-between, the video will likely spur some opinions, questions and debate.  Was producing this video a wise move by BP?  Does it put the crisis – and the crisis response – into context?  Does it misrepresent any of the events or actions?

I have offered my opinions on the Deepwater Horizon situation in the past and I certainly have my opinions on this video.  However, I’m more interested in generating dialogue and debate through this blog post. 

Please take the poll and use the comments section below to share your thoughts after watching the video.

 
 

 

Jaques on Qantas/Rolls-Royce situation

Since starting this blog, I’ve enjoyed an ongoing dialogue with Tony Jaques, a Melbourne-based issues and crisis expert.  Tony read my posts on the Qantas A380 situation from last November and told me he’d keep me posted on local updates.

Last week, Tony forwarded his update post and granted permission for me to re-post in its entirety, below.

Continue reading Jaques on Qantas/Rolls-Royce situation

Three Tough Q’s: Drew Levinson

This blog was only six months old when I was contacted by Drew Levinson, who asked if I would help him learn more about the profession of crisis management.  Drew was certainly no stranger to crises.  As a broadcast correspondent for CBS News, Drew covered terrorist attacks in New York City, Hurricane Katrina, the crash of the Concorde, the Columbine tragedy, and the U.S. Airways “Miracle on the Hudson.”  Drew wanted to take that experience “over the fence” to become a crisis communications consultant.  We made a gentlemen’s agreement to continue talking.  A short time later, we’ve partnered on a few crisis-focused media coaching assignments. 

Drew’s a terrific guy with an insatiable inquisitive spirit – great qualities for journalists and crisis managers alike.   I decided it was time to turn the tables on Drew – to put the microphone and spotlight on him by asking these Three Tough Q’s:

 

Q1:  Based on your experiences and opinion, how common is “thesis journalism,” where more than 50% of a story is written before a company spokesperson is interviewed about a crisis situation?

It’s extremely common.  Most crisis situations are sudden and ongoing breaking news stories.  Therefore the correspondent’s job is to get information to the public as quickly as possible.  That means getting visuals and getting someone to talk.

Continue reading Three Tough Q’s: Drew Levinson

Toyota recall aftermath: many protagonists fail inspection

Last August, I wrote a blog post that compared the Toyota recall frenzy of 2010 to the Audi 5000 frenzy of 1986.  At that time, there were reports that investigators were having trouble finding any “sudden acceleration” problems tied to the Toyota electronics.

Four months later, I followed up with a post that covered the sensational media reporting of ABC News’ Brian Ross.  The February broadcast — in the thick of the media frenzy — featured dramatic footage of driver tests that pointed to software/electronic problems with Toyota vehicles.  The report leaned heavily on findings of a professor of automotive technology, whose work was commissioned by a paid advocate for trial lawyers (not disclosed in the original ABC News broadcast).  Tsk, tsk.

Earlier this week, federal investigators confirmed that there is no evidence of electronic failures that led to Toyota sudden acceleration incidents.  Thus, the circle is complete – the Toyota 2010 situation is the doppelganger of the Audi 1986 situation.  Both situations point to “pedal misapplication” as a likely cause in most of the reported accidents.  Both situations end with calls to move the brake and accelerator pedals a little further apart to avoid such confusion.

Summarizing this situation now is difficult, but this is a good callout from Jeffrey Liker’s post on Harvard Business Review blog:

So who won in this debacle? Journalists who wrote speculative and poorly researched sensational articles got a lot of internet hits. NHTSA got a lot of attention, a larger budget, and a reputation for toughness. It remains to be seen whether the lawyers suing Toyota will get anything. American drivers got a paranoid auto industry that will recall vehicles at the drop of a hat. There will be some positive safety policies relating to how runaway cars are shut off in an emergency, and we all may get “black boxes” that record our recent driving actions. And Toyota got a crisis that drove it to reflect intensively and to make dramatic changes to improve its responsiveness to customer concerns, so likely will emerge stronger — but lost billions of dollars of value in the process.

Other implications?     Continue reading Toyota recall aftermath: many protagonists fail inspection