American Gas - April 2013 - (Page 34)

b u r ner tips After a crisis is over, take some time to prevent— or at least prepare for—the next one By andrew gilman crisis management Live And LeArn F rom Tylenol to Toyota, from BP to “pink slime,” to crises affecting natural gas utilities, each crisis provides lessons. Tylenol stands for best-in-class company values, decision making, brand management, and recovery. BP and Toyota represent the grave risks of brand implosion, failure to anticipate calamities, and the effects of media “piling on.” Pink slime offers warnings about the power of Mommy bloggers and Internet fear spreading. Each crisis can help utility executives better understand reputation management, crisis anticipation, response, and recovery. The term “reputation management” applies to a broad range of crisis scenarios, whether the crisis in question is a natural disaster, a man-made event, or even the current concerns about cybersecurity. Every distributor company would be wise to develop what our firm calls a Reputation Protection Model, a methodology that goes beyond standard crisis preparation and response. Why? Because it adds a lens through which crisis preparation can be viewed as an investment in an organization’s long-term reputation in the eyes of its most important stakeholders. This approach can (and should) be employed at each stage of a crisis: • 34 BSH—Before the Crisis, aka Before Stuff Happens AmericAn GAs april 2013 HBL—During the Crisis, aka Hell Breaks Loose • RRR—After the Crisis, aka Repair, Reassess, Reputation • BSH is the time to prepare. Designate a crisis team, monitor potential issues, set aside resources and physical assets for a war room, ask questions, run simulations, and repeat the process periodically. BSH improves response time and can keep bad news from getting worse. HBL is the crux of the crisis maelstrom and is best driven by calmness and speed. Most utilities have rapid response emergency repair teams, but do they all have companion Internet monitoring and PR capabilities? In today’s 24/7 wired world, a crisis can spread through a community and communications platforms before you even know about it. During HBL, it’s essential to have a war room, a central place for the crisis team to share information and enable critical discussions. Use white boards, flip charts, and computer screens so that all parties involved can have access to information in real time. The transition from HBL to RRR can be as short as a few hours or weeks. The BP spill was an unfortunate example of inordinate time from inception of the crisis to transition to RRR. RRR is the most overlooked step yet perhaps the most important part of this process. It’s human nature that once the immediate danger has passed, we revert to business as usual. Take the time, instead, to address the causes of the crisis and develop systems and procedures to prevent a recurrence. For a parallel example to the natural gas industry, take a look at how long it has taken Verizon to recover from the derecho storms that struck Virginia last June and the resulting 911 outages. While the system was fully functional in a relatively short period of time, the media coverage, regulator investigations, and infrastructure repair spending are still taking their toll (see sidebar, page 35). This means proactively building and maintaining key relationships: letting others know about your plans, community service programs, safety record, charitable efforts, awards for Best Places to Work, and more. These efforts build credibility among media, customers, and stakeholders. The Reputation Protection Model can run parallel to emergency tactical response via website postings, emails, meetings, and phone calls. Once the situation is under control, RPM is critical. BP’s recent ad featuring local Gulf Coast claims adjusters is an example of RPM actions. RPM following a crisis is about restoring faith and trust in the organization. A Word About Social Media Social media changes everything, from how a crisis starts, to Internet-only

Table of Contents for the Digital Edition of American Gas - April 2013

American Gas - April 2013
Contents
President's Message
Subject Index
LNG Sports Car: Racing Toward Acceptance
Digest
Issues
Updates
Need to Know
By the Numbers
People and Places
Water, Water Anywhere
Asia
State House
State House
Elm Street
LNG: Riding the Wave
Beyond the Headlines
Profile
Crisis Management
Jobs
Buyer's Guide: Mapping and GIS
Marketplace
Headway

American Gas - April 2013