“We’re not perfect.” That was Apple’s CEO Steve Jobs’ opening salvo to select media, gathered at last week’s last-minute press conference to address concerns about antenna problems with Apple’s new iPhone 4. Concerns about the new phone dropping calls had been mounting for weeks and culminated in Consumer Reports declaring that it could not recommend buying the iPhone 4.
While Jobs offered up free bumpers or cases to iPhone 4 owners who have had issues with the phone’s antenna, the company found itself in a PR pickle for the way it responded to the crisis.
Critics have called Jobs out for his press conference performance, citing his defensive and dismissive nature. They have criticized his finger pointing at the media and his deflection tactic of asserting that other smartphones suffer from the same type of signal problems.
Here’s a link to one of literally dozens of articles that were critical of Apple’s crisis communications.
http://www.financialpost.com/news/Apple+problem/3295358/story.html
Jobs mishandling of self-dubbed Antennagate raises the question: how can a company gracefully and properly own up to a real problem, keeping both customers loyal and shareholders from hitting the panic button?
From missed earnings to failed drug trials to products recalls, when advising a client in a crisis situation, we consider these five fundamental principles.
- Have a crisis plan in place and update it regularly. While no company can predict a crisis they can be prepared in the event one arises so that key decisions can be made quickly and effectively.
- Respond to a crisis in a timely manner. Given the immediacy of social media, no company wants to be caught thumb-twiddling on communications decisions while Twitter accounts light up with company complaints.
- Don’t say too much, too quickly. While it’s imperative to respond quickly, it’s also critical to be accurate; it’s okay to say the company is working on getting more information to address the matter appropriately.
- Apologize – and be genuine. A respectful apology that takes all stakeholders into account can help repair trust and build brand reputation; an inauthentic one can make the situation worse.
- Above all, be transparent. Not being forthright can kill a company’s credibility and do long-term damage to its reputation.