23 April 2025

Do It Wrong Quickly

Recommendation

Your company’s new Web site is a thing of beauty. Your creative department labored diligently to design a colorful, eye-catching site with fancy drop-down menus, sophisticated graphics and cool icons. You’re happy and your employees are justifiably proud of their work, but unless it generates business, your site is virtually worthless. Connecting with the consumer is the core of Internet marketing. In this age of multiple media outlets and short attention spans, says author Mike Moran, successful marketing depends on speed and refinement. Gone are the days when businesses could afford protracted strategy sessions and elaborate advertising campaigns. The Internet gives consumers infinite options, so your company must make an impression – right now. Moran covers a mind-boggling amount of territory, from detailed technical advice to general marketing principles. While acknowledging that the new Internet marketing rules can be intimidating, Moran’s message is clear: You may fail, but this new age offers unlimited opportunities to try until you get it right. BooksInShort believes you can avoid many Web marketing mistakes by heeding his sage advice.

Take-Aways

  • The Web is the greatest direct-marketing phenomenon in history.
  • Your online marketing must be “relevant, real and responsive.”
  • Building relationships with your customers is your top priority. Listen to them carefully.
  • Use metrics to measure your customers’ response to your Web site.
  • Interpret your findings to target and cultivate your best customers.
  • Don’t be afraid to “do it wrong quickly.” Web marketing is fluid and experiments are very instructive.
  • Your Web pages must make an immediate impact since consumers decide in a split second whether to investigate a site.
  • Deliberation and indecisiveness have no place in online marketing.
  • If your managers and colleagues resist change, explain that online marketing is so flexible that no decision is irreversible.
  • Every mistake moves you one step closer to success.

Summary

How the Internet Changes Basic Marketing Concepts

The Internet is having an enormous impact on marketing. In fact, marketers who cling to traditional strategies instead of embracing change and taking advantage of the online realm are sabotaging themselves. More and more people are turning to the Web as their primary source of information. Newspaper circulation has been in decline for years. Regulations and technology impede phone solicitation. Cable and satellite TV have taken advertising dollars away from commercial television. Remote controls and TiVo devices allow viewers to fast forward commercials or skip them altogether.

“The Web is the biggest direct marketing opportunity to ever come along.”

People have shorter attention spans for ads because they are exposed to more sources of advertising. Thus marketers must work harder to get their messages across. Consumers surfing the Web can skip your ad easily. So rather than bombarding people with information, the challenge is to entice them to pay attention to your message. You want to be informative, reputable and approachable. Make no mistake – the consumer is in control now. Your customers want to know that you are responsive, and open to their suggestions and feedback. Consumer bloggers can give you positive or negative publicity. If your company runs afoul of the law or issues a faulty product, people will find out. The Web has leveled the playing field and rendered monopolies obsolete. Competition is fierce; companies that aren’t relevant to consumers are likely to fail.

“You don’t target markets anymore; you target individuals personally, using technology to do it.”

Speed is of the essence. Traditional advertising campaigns took weeks – or months – to design and execute, and frequently required several levels of executive approval. You couldn’t afford to make a mistake. Failed advertising was costly and making corrections required a cumbersome process of literally returning to the drawing board. But the Web has revolutionized all that. You can change copy or photos in minutes, or even take down a Web page and replace it. You can have a different home page every week, if you wish. You can test multiple alternatives by experimenting, measuring the results and learning from them. You don’t have to be perfect the first time or every time. The Web enables you to manipulate your message until it works.

Attention, Please

Bombarded by sales pitches, people can choose to ignore your ad easily. To hold their attention, base your online marketing and advertising on the “three Rs.” Make it:

  1. “Relevant” – People use search engines to locate sites that relate specifically to their needs. Shoppers expect good prices, not promises and promotions. They want to do business “now,” ¬so you must deliver without delay.
  2. “Real” – Consumers have become increasingly suspicious of hype. They are smarter, better informed and more cynical. They have little tolerance for dishonesty or unethical behavior. You must be authentic, accountable and receptive. Tell the truth and correct your mistakes. Credibility creates customer loyalty.
  3. “Responsive” – You can’t ignore product complaints or bad publicity. Be proactive. Johnson & Johnson turned a potential PR disaster into a marketing triumph in the 1980s by recalling all Tylenol products after “tainted” pills killed several people. The firm was not at fault (someone had tampered with their medication), and it was not obliged to recall every pill, inspect its factories or issue new “tamper-resistant” packaging, but it did – and its bold actions impressed consumers.

Be Seen and Heard

Under the old marketing rules, a company such as Ford would roll out an ad campaign for a particular automobile, then sit back and evaluate the sales numbers. Such passivity doesn’t work these days. Whether you’re a giant corporation or a fledgling business, you must establish visibility. Your Web address (URL) should be on every piece of correspondence and stationery. Put it on signs outside your building. Promote your business via message boards and directories, and establish links that will drive traffic to your site. Make sure your URL isn’t long and cumbersome. You may need to launch an e-mail campaign or conduct other outreach activities to pique public curiosity, but once consumers visit your Web site, it must captivate them.

“Marketing changes whenever people change – which is often.”

Consumers enjoy Web sites that encourage participation. Invite them to blog, offer suggestions and review your products. Encourage your executives and front-line employees to be interactive. Consumers appreciate the personal touch and it helps them feel more vested in your organization.

Be conscious of establishing and protecting your reputation. Fake Web sites and misleading links can destroy your credibility. Spam almost never works since it’s synonymous with deceit and misrepresentation. Provide legitimate contact data. Listen to customers’ needs. If something isn’t working, try another tactic. “Doing it wrong quickly” requires experimentation and revision.

Measure for Measure

To count customer activity on your site accurately, you must develop the right metrics. That boils down to assessing three factors:

  1. “Impression” – Did consumers view your marketing message? Did they see your banner ad, blog, e-mail or promotion?
  2. “Selection” – Did consumers investigate further by clicking on your message?
  3. “Conversion” – Did consumers react as you wanted by taking action, that is, by purchasing something, completing a survey or calling your office?
“Your marketing program is probably not in crisis at the moment – but it will be if you ignore the changes that the Internet has caused.”

If your primary objective is online sales, measuring results is relatively simple. But measuring your site’s effectiveness when your consumers learn about your product or service online, but buy offline is more challenging. You may want to ask customers to order over the phone using an exclusive number on your Web site. The number of calls you receive will indicate who visited your site and reacted. You also can offer a special coupon customers can print and use offline.

“Take a shot. That’s the essence of ‘do it wrong quickly’.”

You need software that tracks activity on your site, but interpreting the numbers is as important as collecting them. Work closely with the metrics analyst in your information technology department. Explain that you want impression, selection and conversion numbers, not just “clicks.” While such metrics aren’t totally foolproof, they will ultimately help you govern your strategy.

“The Web allows an accelerated pace of experimentation.”

As your online presence grows, you’ll need increasingly sophisticated metrics, but certain simple tests are easy to execute. If you have two designs for a banner ad, run one version for a week, then switch to the other. Determine which one generates the most traffic. Don’t get bogged down with testing, though. Move quickly. Be daring. Take chances. Make mistakes. History’s greatest inventors believed that every failure moved them one step closer to success.

Make a Good Impression

Your home, or landing, page must make an immediate, attractive impression. Consumers decide in a split second whether to click deeper into a site. Make it simple and intuitive for customers to navigate. Your site should be user-friendly, that is “straightforward, predictable and unremarkable.” Innovation only works if it enhances the customer’s experience. Consider these design elements:

  • Visual – Your use of color, white space, pictures and fonts set the general tone. Do you want to be serious or playful? Vivid colors and an unconventional typeface probably won’t work for a funeral home. But, vibrant colors and exciting graphics might capture the fun mood of a water park.
  • Navigation – Customers do not want to embark on a treasure hunt. They want a trouble-free experience and instant information. People who navigate your site should feel that they are following a logical pattern. The key is getting them to the next page. Give people a reliable way to contact you with problems or questions.
  • Copy – Like a newspaper story, your written content must be concise, understandable and error-free. Avoid long, gray type blocks. Break your copy up with paragraphs and subheads. Experiment with highlighted text. Use bullet points and subheads.
“The project doesn’t end when you launch. In many ways, that’s when it begins. Launch is not the finish line – it’s the starting line.”

Successful businesses depend on repeat customers. Your marketing efforts must target the right audience so you can cultivate a following and develop a loyal consumer base. To identify your best patrons, track the three metrics that make up the “RFM rating:”

  • “Recency” – Consumers who recently purchased your product, asked you for more information or navigated your Web site are most likely to repeat their actions.
  • “Frequency” – The person who visited your site for four consecutive days is probably going to return tomorrow. The customer who made four purchases last month is likely to buy something this month.
  • “Monetary” – Your biggest buyers will tend to repurchase. The customer who invests in one of your premium services will visit your Web site again and again.
“If your customers find your pages easy to scan to find what they are looking for, it’s in part because your designer thought through how that page should be laid out and how to visually separate its parts.”

While these indicators do not always play out, RFM is a solid formula for targeting prime customers and trying to create an experience for them. For instance, if they provide e-mail addresses, you can send special offers.

The Pace of Change

Online marketing has numerous variables and the landscape changes constantly. Determining with complete certainty what strategies will succeed is impossible. Until you get your Web site online, you don’t know if it will resonate with customers. But you’re guaranteed to fail if you sit on the sidelines. Start somewhere. You’ll have ample opportunity to adjust, fiddle, fine-tune, revamp and revise. Do-overs are expected.

“Make every conversation the beginning of a relationship instead of just a quick sale.”

If you don’t have a Web site, begin by starting a blog. Then, when you’re ready to launch a site, find a knowledgeable, affordable specialist. Don’t feel compelled to hire an expensive, top-of-the-line professional. To improve an existing site, change specific pieces instead of undertaking a costly redesign. Measure the result of each change and react accordingly. If you alter the background color on your home page and your customers react negatively, switch back.

“Blogs are more credible than press releases in part because your customers can comment on what you say, so that keeps you honest.”

Most people are uncomfortable with change, particularly when things appear to be running smoothly. Many companies value quiet consistency and steady performance. Often, decision makers are reluctant to act quickly. They don’t like pressure and would rather discuss and deliberate. In online marketing, though, that conservative approach can knock your company off the pace. Help hesitant colleagues understand that no online marketing decision is irreversible, Web sites are fluid, and experimentation with new ideas – or reworked old ideas – is worthwhile.

“Some people – maybe even you – are more comfortable with deliberation. But it’s important in the world of the Internet that you make choices as quickly as you can.”

If the idea of remaking your Web site seems overwhelming, break it down into smaller tasks. Change can be incremental. Look at one page at a time. Your decisions will add up quickly to give you a rewarding result. Don’t allow fear to block you. Surprisingly, many successful entrepreneurs have self-confidence issues. But they take risks anyway – and are willing to make mistakes – because the payoffs can be enormous. With online marketing, not changing puts you at greater risk.

“People don’t always follow the person who is the boss, but often the person they do follow becomes the new boss.”

One of the biggest roadblocks to innovation is convincing others to join you. Unless you’re a one-person operation, successful change requires the help of your bosses and co-workers. Whether your company is a family shop or a huge corporation, begin the process of innovative marketing by identifying pivotal decision makers who are receptive to change. Pick one issue (fewer consumers are clicking onto your banner ads, for instance) and ask if you can test it. Hopefully, you’ll discover the problem and more people will click on the ads. Then you can share your success to help bring about a culture of change.

About the Author

Mike Moran, co-author of Search Engine Marketing, Inc., has worked on the Web since its earliest days, in both marketing and technical roles, including eight years on IBM’s customer-facing Web site.


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Do It Wrong Quickly

Book Do It Wrong Quickly

How the Web Changes the Old Marketing Rules

IBM Press,


 



23 April 2025

Landing Page Optimization

Recommendation

Tim Ash provides long-term strategies that solve the guessing game of Web page improvement and give you an effective battle plan – but don’t expect overnight, quick solutions. Landing page optimization – a process of diagnosing, tuning and testing – is detail work. Although Ash refers often to his own Web page “tuning” firm, he also shares ample valuable information your business can use. He wrote this book for the team behind a Web site’s design, including those involved with content, user experience, media, marketing, advertising, product management and affiliate management. BooksInShort believes that anyone who wishes to do a thorough job of refining a site’s landing pages can rely on this precise, detailed and knowledgeable manual.

Take-Aways

  • Your landing pages are the first ones visitors encounter on your Web site.
  • Page performance data – where visitors come from, how long they stay, if they return and how much they buy – indicates which landing page changes you need.
  • The purpose of your online marketing is to acquire, convert and retain customers.
  • Conversion means getting customers to take actions you want them to take. Your conversion rate is a crucial benchmark.
  • Seek executive buy-in for your landing pages optimization project in case you need more resources, such as internal staff or external expertise.
  • Make small changes to your landing pages; compare results to the original pages.
  • Use all available data to get to know your customers and tailor your landing pages to their needs.
  • Identify online problem areas by checking which elements have the most impact, how users travel through your site and what consumer activity you desire.
  • Use the best combination of sales results, “sweep” and other variables.
  • When your new pages go live, collect performance data and keep making improvements.

Summary

The Landing Strip

Your Web site’s landing pages are the ones consumers get to first. Your landing pages can be your home page and a few pages inside your main site, stand-alone pages or pages that combine to form a “microsite” targeting a specific audience. Study what your site’s visitors tell you through actions you can measure. They provide the best feedback on what works and what doesn’t. Use that data to guide your landing page optimization project.

“All of your hard work comes down to the few precious moments that the Internet visitors spend on your Web site.”

Many home pages try to address all visitors’ needs equally and to direct visitors where they want to go. But that isn’t all you need to do to create effective landing pages. Instead of helping every kind of visitor, craft landing pages that help your priority visitors, the repeat customers who seek “mission-critical content” from your site. If your “business’s performance would grind to a halt if you removed certain content from your Web site,” that content is mission critical.

Planning and Strategizing

To get landing page optimization right, the manager of the optimization project needs to create an action plan and prepare for possible snags. He or she is responsible for the team, as well as any project profit or loss. If you are the project manager, once you have an initial plan and a team, identify the pages on your Web site that have the highest impact on your business and profits. Determine what elements to tune and list the site’s current problems. Sort them into common themes based on raw page performance data that identifies where your visitors come from and how long they stay. Then, make precise, informed changes to your pages and see how the results compare with the original versions.

“Many companies are now beginning to understand that Web site and landing page conversion can have a dramatic impact on online marketing program profits.”

To begin, clarify your Web site’s business goals and financial targets. Next, consider the effectiveness of any steps you are taking to attract and keep customers. Pull together your team and secure executive support in case you need a budget for additional inside or outside staff. Project managers often bring in team members from outside. For example, a landing page optimization project may call for hiring a “user experience professional” to study how people interact with your Web site’s pages and systems. The team also needs a Webmaster to maintain the site, a system administrator to keep the server running, a programmer to handle the site’s nonvisual functionality, a graphic designer to create and change graphics for testing, a copywriter to edit the text and a quality assurance tester to verify that all components of the Web site work as expected.

“Pay-per-click is a very popular online advertising model...Most PPC search engines charge advertisers using some variation of a live auction model...The more you pay, the more prominently your ad will appear.”

The optimization team may have to deal with other internal groups who are responsible for branding, information technology, legal and regulatory compliance, administration and finance.

Write a test plan, implementation plan and quality assurance plan. Prioritize Web site issues that have the greatest impact. Most likely, you will tune and test pages relevant to those issues first. Now, you must deal with the following concerns in detail:

The Main Components of Online Marketing

Online marketing is the act of convincing customers to come to your Web site, making them feel compelled to act and getting them to come back. These three pivotal online marketing activities are called customer “acquisition, conversion and retention.”

“If your audience consisted of a six-year-old in San Diego and a 74-year-old in New York City, it would be silly to describe your ‘average’ visitor as a forty-year-old from Kansas.”

Online customer acquisition methods include advertising, “search engine optimization (SEO),” “pay-per-click (PPC)” participation, affiliate outreach, social networking and e-mail lists. The acquisition process doesn’t stop online. Offline support activities may include traditional advertising, media and industry coverage, promotions, referrals and print marketing.

“The skill sets to get the best results from your landing page testing program are very diverse.”

Conversion occurs when you persuade visitors to take a measurable action you want them to take, such as asking for a catalogue, sending an e-mail or buying a product. Landing pages are not the only factor that shapes a conversion rate. Others include your brand, your competition, the time of year, site design, your security and privacy practices, the product’s ability to sell itself to visitors, and the visitors’ own physical and emotional states when they reach your site. Remember that no program, no matter how good, ever earns a 100% conversion rate.

“Departmental silos and territorialism are often the biggest obstacles to successful landing page optimization.”

Retention means that a customer comes back after the first conversion. Retention programs use e-mails, newsletters, Web site feeds, blogs and loyalty rewards.

In determining where your Web site’s traffic comes from, try to cover all the routes to boost your chances of higher conversion rates. Conversion rates are a key indicator of a site’s effectiveness and a good benchmark, though you must assess other measurable factors as well. To measure conversion, track these quantifiable actions.

  • “Advertising” – Look at the number of times people clicked on ads on your site.
  • “Click-through” – Measure how many times visitors land on pages they seek.
  • “Education” – Look at the time visitors spend on informational pages.
  • “Downloads and printouts” – Review the number of requests for content.
  • “Form-fill rate” – Count completed forms, even if they only require an e-mail address.
  • “Purchase” – Study rates for people who add items to their shopping carts without completing checkout. Also measure completed orders by revenue or profit per sale.
“The best landing page version will be found statistically (by watching behavior of thousands of people), not through qualitative or small-scale usability testing.”

The “lifetime value” (LTV) of a conversion measures a customer’s value for the duration of his or her relationship with your firm. Most businesses need to look at the average length of these relationships, rates of repeat buyers versus new ones, sales volumes, referrals and success in upselling or cross-selling other products. If you sell a product that customers are not likely to buy twice, calculate only the profit margin for each sale.

“It’s not the picture, and it’s not the headline that determines the performance of the ad. It is their particular combination.”

To measure the impact of a landing page’s conversion rate on a company’s profits, experts work with three figures: variable cost percentage” (the “total of variable costs on an incremental sale as a percentage of revenue”), conversion improvement percentage (has the new landing page generated more conversions?) and annual revenue only from Web-based sales.

Knowing Your Target Audience

As you work to understand your market, you’ll be surprised by what you learn. Just be open to whatever comes. Begin by figuring out the “five Ws” (who, what, when, where and why) as they apply to your market and Web site. Your Web logs will tell you volumes about your visitors, including which browsers they use, what pages they view, how long they linger and if they’re first timers. Web analytics software gathers these tallies. Some programs let you export the data into your customer relationship management (CRM) software for further analysis and reporting.

“If you choose to ignore variable interactions, you have no one but yourself to blame for suboptimal results.”

Studying your audience’s personas and behavior gives you the insight you need to create Web pages that address their lifestyles and needs. Read up on personality assessment tools, such as Myers-Briggs and Keirsey-Bates, and learn about empathy-enhancing ideas, such as the Platinum Rule, which says, “Do unto others as they would have you do unto them.” This will help you understand how individual traits can affect people’s response to your site. Use interviews, observations and other interactive tools for “persona” creation, crafting a fictitious biography of a person who uses your site, the roles he or she takes on, and how he or she completes tasks.

“Trying to rationalize results after the test is a dangerous activity because it may cause you to inappropriately fixate on elements of your design that had nothing to do with the performance improvement.”

To get a “comprehensive view of who needs to accomplish what,” weigh user’s jobs, what they are trying to do and their decision-making processes, summed up in the acronym AIDA: “awareness (attention), interest, desire (decision) and action.” When relevant, add S for “satisfaction.” Use this information to ensure that your site designers have “thought through in detail how to guide the right people through the right activities in the correct order.” Understanding visitors’ decision-making methods helps you guide them to what they want. Help them make decisions smoothly by giving them good reasons to act. Don’t make people wait or overwhelm them with unimportant distractions or calls to action. Check the effectiveness of your banner ads or pop-ups; they don’t always work.

“There is a disconnect between how our brains evolved and how we are forced to use them on the Web.”

Your pages serve “browsers” who “have an unmet need,” “evaluators” who are comparing choices, “transactors” who are buying and “customers” who may buy again. Build these visitors’ confidence by offering guarantees, accepting returns, providing alternate ways to buy, having good security and keeping their personal data private. For credibility, use testimonials, white papers, case studies, client lists and reviews. Once a visitor decides to buy, stay out of the way. Be wary of adding unanticipated steps, like upselling or cross-selling options. Registration may turn visitors away, even though it gives them the future convenience of not re-entering data. They may not come back or they may prefer not to divulge their contact information. Scrutinize your forms. What do you really need to know? What questions can you drop to avoid creating barriers?

Tuning Up Your Site

Think about your visitors’ “roles” (for example, a matchmaking Web site might have “prospective,” “new” and “experienced members”), “tasks” (what visitors want to do on your page) and “decision-making processes” to identify problem areas in your landing pages. Use Web analytics to study visitors’ locations, technology choices, frequency, duration and degree of interaction with your site. Analyze where they came from, what internal and external search words they used, and which pages they visited most. Test usability by having consumers (not employees) comment and note surprises or problems as they work with your site. Consider hiring usability experts to give objective feedback; such data tends to spur employee action. Enlist opinions from focus groups, surveys and blogs.

“All the planning in the world will not save you.”

When tuning your Web site, consider the three parts of the brain and the three learning styles. The reptilian brain manages fight-or-flight situations by acting on instinct; it can’t learn from the past. The limbic system decides on likes and dislikes using emotions tied to need. The neocortex manages voluntary movements and sensory data. Landing pages appeal most to the limbic system. Visitors learn and recall information using different learning styles. “Visual” learners rely on cues like graphics, charts and videos. “Auditory” learners need sound and voice support. “Kinesthetic” learners are doers who like interactivity, problem solving and evidence.

“Start testing immediately. A little bit of something is better than a whole lot of nothing.”

Standard Web design practices rely on usability assessments, information architecture, accessibility, scannable content, structure, an appropriate tone that avoids jargon, and visual design that makes the most of page layout, color and graphics. Within this framework, identify online problem areas and tinker with your landing pages by checking:

  • “Breadth of impact” – Which factors have the largest impact on your site.
  • “Most important conversion actions” – Which consumer actions matter most?
  • “Biggest possible audience” – Identify and test the pages that capture the most visitors and, thus, generate the most revenue.
  • “Most popular paths” – Use Web analytics to determine where most visitors arrive and to track their flow. Remember some visitors are more valuable than others.
  • “Most prominent parts of a page” – Prioritize the most crucial page elements.
  • “Granularity” – Determine how detailed your changes need to be.
  • “Sweep” – Can you adjust within today’s framework or do you need radical change?
  • “Coherency” – Do each page’s elements unite in a comprehensive whole? Look at your combination of presentation, structure, headers, footers, navigation and all other elements. Be sure that you’re emphasizing the genuinely most important things and then give everything else less attention. Edit out lower-priority elements.
  • ”Audience segmentation” – Test the new site for all visitors or focus on a specific group, tracking traffic.
  • ”Longevity” – Will your changes have long-term effects?

It doesn’t matter how strongly a single variable performs by itself on a page; success requires a team of variables that work together. Identify “input variables” that you can tune and “output variables” that you can test. Build a recipe from those variables, concocting different combinations and options to compare with the baseline. The easiest way to conduct a test is to use “A-B split testing.” Provide two versions of the same page at the same time. Use identical variables except for a single difference you are deliberately testing. Multivariate testing, in contrast, looks at more variables to see which recipe works best.

Once your successful, tuned-up landing page goes live, be ready to collect data about its performance and continue making ongoing improvements.

About the Author

Tim Ash, who leads SiteTuners, speaks often at Internet marketing conferences.


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Landing Page Optimization

Book Landing Page Optimization

The Definitive Guide to Testing and Tuning for Conversions

Sybex,


 



23 April 2025

Crisis Leadership Now

Recommendation

Managing an organization is an awesome challenge during the best of times, but far harder in the worst of times. Every process and problem becomes infinitely more difficult when a disaster strikes, be it an act of terrorism, an industrial emergency, fire, flood, earthquake, hurricane, corporate crime, scandal, epidemic, mass murder – you name it. Alas, the old saw that anything that can go wrong will go wrong is often true. Is your organization prepared? Studying this book by crisis expert Laurence Barton is a good way to get ready. He details practical, time-tested responses to disasters of all types. Most crises arrive without warning, so solid preparation is vital, and denial will get you nowhere fast. If you are a CEO, a communications professional or a senior executive, BooksInShort advocates reading this very practical book – before the deluge.

Take-Aways

  • Many organizations are poorly prepared to handle emergencies.
  • The number of different emergency events and scenarios that can hamstring an organization is staggering.
  • Organizations often operate in a state of blissful denial that a disaster will ever occur.
  • When it does, few organizations communicate effectively.
  • Be prepared to communicate details about the event, to provide a timeline, and to outline your company’s actions to address or mitigate the negative effects.
  • A crisis requires one commander for tactical control and one spokesperson for message control.
  • In any crisis, before anything else, take care of the victims. Plan to have an “emergency operations center.”
  • To prepare for a disaster in advance, designate a supervisor, management teams and an off-site facility for IT backup.
  • Set up another team to focus on business continuity after the event.
  • The best way to deal with a crisis is to prevent it in the first place. This is not always possible.

Summary

Are You Ready for a Crisis?

Few organizations are prepared for crises or ready to handle disasters. Indeed, many are incompetent at crisis planning, management and communications. Here are some prime examples:

  • Corporate thieves stole millions of customer credit card records from TJX, the corporate parent of Marshall’s and T.J. Maxx retailers, due to its inadequate security system. When the media asked about the theft, TJX reps hid behind “confidentiality.” The company also failed to notify customers promptly.
  • In 2004, an employee at Friendly’s Ice Cream Restaurant in Arlington, Mass., came down with hepatitis. As a result, thousands of diners immediately needed immunoglobulin injections. The media jumped on it. Alas, Friendly’s treated the event too casually, so people stopped eating at the suddenly “unfriendly” outlet, which soon closed.
  • During a Dateline taping for NBC, reporter Brian Ross showed Wal-Mart CEO David Glass an NBC video reporting that small Indian and Pakistani children were working in brutal sweatshops run by Wal-Mart subcontractors. The kids were sewing clothes later marketed as “Made in America.” Ross asked Glass to comment: “Terrible things happen in this world,” he said lamely. A Wal-Mart vice president walked in and abruptly ended the interview. NBC aired Glass’ dumb remark and Wal-Mart’s ham-handed shutdown.
“Crisis management is uniquely focused on how to respond to victims, employees and other stakeholders during those precious first eight hours of your situation.”

What accounts for such slapdash planning? Many companies appear blissfully unaware that a crisis could hit. Yet the potential disasters are unlimited: threats of violence, floods, war, hurricanes, fires, tornadoes, power failures, pandemics and terrorism. Businesses also can face manufacturing or product problems, like recalls, counterfeiting, boycotts, “compliance violations,” supply chain disruptions, union problems, community protests, corporate thefts and scandals. It only takes one crisis to create chaos. Do you have contingency plans?

Violence in the Workplace

Employees can be the perpetrators or victims of violence at work. Unfortunately, many senior managers act as if violence cannot occur at their sites. They are mistaken. More than 8,000 violent episodes occur daily in U.S. workplaces. Stalking and domestic disputes are common. So are e-mail threats. To guard against hiring potentially violent employees, HR departments should thoroughly examine prospective workers, including checking for any past criminal activity.

“Even the most stellar business leaders in the world can stumble in a crisis.”

To sniff out a potentially problematic employee, use this question in the middle of an interview: “Tell me (those are the pivotal, operative words) about a highly stressful situation involving a former co-worker and how you resolved it.” A person who claims that no such incident ever occurred around him or her probably is lying. You are looking for a response that indicates, “no surprises, no anger, no drama.” This will show what the candidate deems stressful, and how he or she handles conflict resolution. It also can offer some clues about his or her emotional make-up.

Health Crises, Violent Weather and Other Disasters

Pandemics or epidemics can close your company with surprising speed. Does your organization have a plan for infectious or hazardous emergencies and other medical issues? It should. Prepare also for vile weather. A tornado or hurricane can put you out of business. Consider Hurricane Katrina, the devastating, $150 billion storm that leveled New Orleans. Industrial disasters, terrorism or sabotage also can be devastating. Build your contingency plans accordingly.

“Communicating When It’s Code Red”

When disaster strikes, your organization must communicate about the situation to its employees, customers and investors, as well as the media and the public. Before anyone starts talking, answer three vital questions: “What do we know? When did we know it? What are we going to do about it?” You have only about eight hours to tell your story. After that, you will have ceded control of the story to others, like the media. To manage crisis communication, track these primary points:

  • Develop a formal crisis communications plan in advance of any crisis.
  • Create a fact sheet that details the event’s scope and its timeline. List victims and witnesses. Routinely update it. Confirm all facts.
  • Establish who within the organization will contact victims.
  • Develop responses to the predictable questions: why, what, when and how.
  • Prepare statements or scripts your telephone operators can use with callers.
  • If possible, communicate first to your employees, then to other constituencies.
  • Respond to each relevant group, like investors, customers, staff, the media and the public.
  • Designate a single, fully prepared spokesperson. Have him or her rehearse responses to the 20 worst imaginable questions.

“Crisis Response and Recovery”

Your organization’s crisis plan should designate a senior-level “corporate crisis management team” to report to the CEO, evaluate the extent and future scope of the disaster, and operate as long as needed. Set up an overall incident commander to handle tactical issues and work with the CEO, an “organizational crisis management team” to focus on resuming business, a business continuity plan coordinator and a communications manager.

“An emergency is any incident, potential or actual, which seriously disrupts the overall operations of your enterprise.”

When disaster strikes, take these immediate steps:

  • “Respond first to victims” – First make sure the victims get help. Coordinate first responders. Inform senior management about the scope of the event. Activate the corporate crisis management team and have it gather facts. If need be, open a 24/7 “emergency operations center” (EOC). Implement the communication plan. Issue a brief on the status of the crisis every 30 minutes. Activate the organizational crisis team to consider how to restart operations.
  • “Respond second to organization” – Maintain the EOC. Begin media communication using one spokesperson only. Brief your legal counsel and insurance carriers on any exposure ramifications. Conduct rehearsal press conferences for the CEO. Log all calls.
  • “Respond third to publics” – Have the CEO or another senior executive lead a press briefing. Focus on the victims and the company’s actions. Communicate fully to your employees and customers. Document all major decisions, along with dates and times.
  • “Respond to recovery needs” – Keep the corporate crisis team updated. Survey employees, customers and other stakeholders to see if the response meets their needs. Coordinate with underwriters to be sure claims are met quickly. Make sure those affected get the help they need.
“Every day around the world, people engage in acts of retribution and sabotage.”

Events should unfold in roughly this order, depending on the situation:

  • Post-crisis: “first eight hours” – Deal with the most dangerous circumstances immediately. Activate the emergency operations center to take care of victims. Make sure first responders get everything they need, when they need it. Assess the extent of the disaster. Initiate communications. The organizational crisis team should meet at least twice daily. Finance should track all costs. Establish supplier and vendor contact as needed. Organize follow-up psychological counseling for those who need it.
  • Post-crisis: “eight hours and beyond” – The incident commander works with the corporate crisis team to make all the vital decisions. The organizational crisis team should implement the incident commander’s directions and respond to the needs of victims, employees and the community. Hire contractors as required for “smoke and water removal, debris removal,” damage control and repairs. Implement an information security plan. Set up a “shadow Web site” to communicate with all groups. Establish a “company emergency hotline” for all employees. The business continuity plan coordinator should make sure your program is in effect.
  • Recovery – Develop a plan with target dates for facility repair. Have your legal counsel review all due diligence requirements. Continue to assess the damage. Deal with all utility providers. Keep adequate cash on hand. Develop special compensation incentives as required. Stay on top of all logistical requirements.
  • “Message plan” – Guarantee action. Stress organizational values. Assume full control of all press briefings and related activities. Immediately correct any misinformation.
“We are in the midst of an unprecedented holy war aimed not only against governments but also against business.”

Heed these basic “crisis management and recovery plan” considerations:

  • “Before the crisis” – Designate corporate crisis and organizational crisis team members and operational managers to get things back to normal after a crisis. Plan an “IT recovery site.” Meet semi-annually to discuss the crisis response plan. Update and share the communications plan often.
  • Primary players – Designate an “incident commander” to manage the crisis tactically. Designate a leader from the communications department to manage the message. Legal counsel should coordinate with insurance brokers about your firm’s fiduciary responsibility, if any.
  • “Measuring disruption” – Your organization must assess the extent of the disaster.
  • “Finance and accounting” – What is the financial damage? What is your liability? Insurance coverage? Anticipated losses? Impact on quarterly earnings?
  • Communications – Immediately activate a communications response team. Depending on the emergency, their job may continue without a break for a long time. Make sure the emergency operations center is fully staffed and has back-up power and emergency supplies. Ensure open communications between headquarters and the crisis site. Be prepared in case your leaders need an alternate site with adequate IT and telecommunications. Communicate openly with the media and the public.
  • IT – Is connectivity operable? What about data and equipment loss?
  • “Sales and marketing” – When will production re-open? If apropos, do customers get refunds? Will you advertise during the crisis? How will you update major customers?
  • Security – Coordinate completely with law enforcement. Did surveillance cameras videotape the event? Are any perpetrators employees? Customers? Other stakeholders? Have you restricted access to the site? Do you need more guards? Did you have warnings? Do you have a script for telephone personnel and receptionists?
  • Human resources – Acknowledge all victims and heroes. Coordinate with legal counsel regarding restitution or compensation. Institute an employee communications plan.
  • Legal – What obligations await? Heed your “duty to care, duty to warn and duty to act.”
  • Strategic planning – What impact will the crisis have on existing plans? Periodically update the organizational crisis team on the status of all “human and physical assets.”
  • International – Does local custom mandate burying victims within 24 hours? Must you confiscate passports of any potentially implicated employees?
  • Public affairs – Do you need government or lobbying assistance? What are the organization’s “fiduciary obligations” to investors?

“Ten Pillars of Business Continuity”

Your post-crisis push is to get back to business. For future stability, try these 10 best practices:

  1. When disaster strikes, you cannot possibly over-communicate with victims.
  2. Be in 24/7 contact with “employees, contractors and vendors.”
  3. Get your off-site IT recovery operations and EOC up and running as soon as possible.
  4. Make sure the staff receives full salaries and benefits. Give the incident commander authority to pay for “equipment, hotel rooms and consulting services” as needed. Document everything, including damages. Plug in your insurance carrier ASAP.
  5. One and only one spokesperson communicates. Employees should refer all questions to that spokesperson. Avoid policy infractions. Control rumors.
  6. Designate psychological counselors and make them available for anyone affected.
  7. Update stakeholders three times daily concerning all activities and progress.
  8. Stay on top of all suppliers. Make sure they aid the recovery in a timely manner.
  9. Make sure the disaster is over before you declare it done. Consider “scenario testing” to ensure that things are again as they should be. Plan a “multi-tiered return to normalcy.”
  10. Assess event fallout. Establish accountability. Reward anyone who deserves it.

About the Author

Laurence Barton, Ph.D., is a crisis management expert who has handled more than 1,200 crisis incidents worldwide. He is a management professor at The American College, Bryn Mawr, Pa.


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Crisis Leadership Now

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A Real-World Guide to Preparing for Threats, Disaster, Sabotage, and Scandal

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