Monthly Archives: March 2023

And the Award Goes to: A Kimball Hughes PR Play on the Oscars for Top PR Fails

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The Academy Awards took place just a few short weeks ago, honoring the biggest movies and artists in cinema. What better time to hand out a few of our own “awards” to the biggest stories in PR of 2023 so far. 

Without further ado, the “awards” go to:

The Hotseat Award: Adidas Yeezy Overstock

In October 2022, Adidas was in the hotseat for taking too long to cut ties with their spokesperson Ye (formally Kanye West) when he made public antisemitic comments on social media. Today, Adidas is left with over a billion dollars in Yeezy merchandise, the brand on which they collaborated with Ye that generated around 10% of Adidas’ annual revenue. In 2023, the company expects to take a significant loss as a result of pulling the merchandise.

Aside from the financial aspects of the ordeal, Adidas is still facing issues as many social media users, activists and more wait to hear what Adidas plans to do with the $1.3 billion of Yeezy overstock. From a crisis communications standpoint, Adidas continues to have a problem. Because their original response received considerable backlash, the brand must tread lightly as they balance their public reputation and their bottom line. Disposing of the merchandise could come off as wasteful, selling the merchandise would still financially benefit Ye due to contractual obligation and donating the merchandise could result in it surfacing in the resale market.

As Adidas executives mull over their options and offers roll in to take the Yeezy merchandise off their hands, the company’s future moves will impact its overall business and investors, collectors, activists and social media users. Communications pros are certainly curious to see what happens next.

There are a few things to learn from Adidas’s missteps. First, act quickly. A crisis communications plan is key to ensure businesses can confidently respond and are prepared with talking points, media training and more. Silence can sometimes be as bad – or worse – than saying the wrong thing and the ongoing speculation regarding what Adidas should do with the overstock merely keeps the crisis top of mind for many. Regardless of their final decision, the brand would do well to remain transparent through the process. When a decision is made, they should be prepared for people to ask tough questions.

The It’s About Time Award: The Academy Finally Gets a Crisis Communications Team

In an exclusive Time interview at the end of February, Bill Kramer, CEO of the Academy of Motion Picture Arts and Sciences, revealed the organization hired a crisis communications team for the first time in its history. The development came after the infamous events of last year’s Oscar Awards Ceremony. As most will easily recall, actor Will Smith slapped comedian and MC Chris Rock on stage. If that wasn’t enough, a separate controversy erupted simultaneously around a campaign that led to Andrea Riseborough winning the Best Actress Academy Award for her role in a small indie film To Leslie. Some argued the promotional campaign to bring the little-known-at-the-time movie to the forefront violated Academy rules related to lobbying members for nominations. The organization had no crisis communications team on hand at the time and the headlines began to mount.

The events demonstrate that even an organization with 70 years of experience broadcasting an award show may not be prepared for everything. Today, a crisis communications plan and designated team is critical for almost any business or organization given how quickly narratives can take on lives of their own and social media can skew perception and sometimes results. Kramer recognizes in his interview with Time that while they cannot prepare for every scenario, having a crisis team and modifiable frameworks in place better positions the Academy to handle whatever comes next.

The Biggest Let Down Award: Google’s Bard Announcement

Modern technology is moving at record pace, especially since OpenAI’s artificial intelligence breakthrough in November 2022 with their large language model product ChatGPT. During the past few months, some of the largest technology companies in the world have quickly developed their own AI tools to compete in the race, including Google. However, in the first demo of their product Google posted to Twitter, viewers were quick to notice and call out the obvious flaws in the tool. Shortly thereafter, Google’s parent company’s shares dropped 7.7%, costing an estimated $100 billion and drawing national media attention in the likes of TIME Magazine, CNN and NPR.  

While it may be tempting for brands to rush to tout their own products when a competitor breaks the internet, it’s important to recognize what is at stake. Consumers are keen for near perfect technology and there are enough players in the AI race for investors to explore other options. A proper launch takes meticulous planning and preparation, which requires time well spent.

Before a launch, a good PR team can help give business leaders a perspective of how their product, service or announcement may be perceived by media and the public. For example, in Google’s case, a more carefully crafted launch plan might address limitations of AI chatbot technology such as potential product accuracy issues. When things do go wrong, a PR team can help limit any additional damage by assisting with media requests, crafting statements to address the issue and help brands effectively connect with their audience, even when the audience may be losing trust.

And that’s a wrap on this round of awards highlighting some of the biggest stories in public relations so far this year.

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Crisis of Confidence

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In the span of just three months – one at the end of 2022 and two at the beginning of 2023 – the insurance industry has been at the center of significant crises situations that have played out in the media. While the scenarios cover a broad spectrum of what could go wrong, from each situation emanates one key theme – the value in planning ahead for a potential crisis.

In December, State Farm was the focus of an investigative feature story detailing allegations that the insurer discriminates against black homeowners in claims scenarios. With a human, empathetic approach to its response, State Farm struck exactly the right tone in a situation where the story would have proceeded with or without the company’s input. The response, shrouded in what appears to be sincere embarrassment, may ultimately serve State Farm well if the company continues to resolve the matter while owning any mistakes made.

The Norfolk Southern train derailment on Feb. 3, 2023 and the resulting chemical spill dominated most headlines and broadcast news coverage for most of February. As investigations proceed and claims likely exceed Norfolk Southern’s liability coverage, increased scrutiny will fall on railroad insurance generally and risk management practices in the transportation industry more specifically. In time, insurers will face questions about how the U.S. transports sensitive cargo and the safety measures it mandates of its insureds.

And finally, in late February, North Carolina investment firm founder Greg E. Lindberg again generated headlines when he was charged by a federal grand jury in a $2 billion fraud scheme. According to the indictment, Lindberg and others are accused of improperly taking money for personal use from insurance companies controlled by Lindberg. This news follows a 2020 bribery conviction of Lindberg that was overturned on appeal in 2022. Lindberg has since made several combative statements, issued a press release announcing planned actions by his defense team, and otherwise taken actions to ensure his name remains in the headlines, come what may.

And these are just a few of the more recent, audacious headline makers.

As has been said many times before, the insurance industry has a communications problem. And like so many other industries, the crisis communications capabilities of the insurance industry are lacking.

Countless businesses of all sizes are ill-prepared for crisis situations where they must communicate with multiple stakeholders: investors, board members, employees, vendors, the public at large, industry leaders, etc. Most lack a Crisis Communications Plan. And for those who might have a crisis plan of a sort, those plans are often out of date by many years and/or have never been stress tested. In fact, if you quizzed most senior executives at any number of organizations, they would be hard pressed to verify a Crisis Communications Plan exists for their company, and who is assigned to what roles on the designated crisis team.

Crisis Communications Plans give companies and non-profits a road map to follow, designate team members with clearly defined roles, and provide approved language for a range of scenarios that allow for the type of rapid response required in the current media environment. These plans also empower crisis team members with both formal training that helps them to avoid missteps and with the authority to act in the best interests of the organization within certain parameters. Lacking such a plan, most companies find themselves making it up as they go, which is akin to trying to close the barn doors while the horses are mid-stampede from that same barn. The best you can hope for in that scenario is not to be crushed in the experience.

Like insurance itself, a good Crisis Communications Plan is a hedge against disaster. While it will require an initial investment, the savings such plans provide can be incalculable in a true emergency situation. Some crises result in bet-the-business risks that often can only be resolved if the actions taken are deftly communicated. One need only look at recent bank failures – driven by crises of confidence primarily – to understand how vital quick, thoughtful and fact-driven communication can be in the life of any organization.

Sharing a Little Inspiration this Women’s Empowerment Month  

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Last week I spent International Women’s Day with 200 remarkable women in Philadelphia from the legal, marketing, communications, nonprofit and other fields at the inaugural Follow Friday conference aimed at women’s empowerment. Hosted by my friend and chief marketing officer for Legal Internet Solutions, Inc., Robyn Addis, the conference addressed how to rethink gaining entry, focusing on career advancement, managing work-life issues, overcoming fears and challenges, and most importantly, the value in helping each other succeed.  

Although the occasion was Women’s History Month, now often now referred to as Women’s Empowerment Month, the speakers demonstrated that these are practical, everyday career and work-life integration issues for women in the workplace that go well beyond any one calendar date. These women inspired the audience with their stories — both professional and personal — of perseverance, resilience and hope.  

Kelly Breslin Enache, CMO for Saul Ewing LLP, kicked off the presentations by explaining that while many of us recognize some aspect of imposter syndrome within ourselves, we have to tap into our professional courage to move forward and succeed. She referenced Tracy Brower, PhD, who recognized that while self-doubt is common in successful women, it is not standing in the way of their success. Women with professional courage choose to move forward despite feelings of self-doubt, fear or readiness. “Courage is when conscience, fear and action come together. It is grit, optimism, perseverance and determination,” Brower said.  

I believe we have to say good-bye to the plague of imposter syndrome and usher in a new era of success for women grounded in professional courage.  

Many women are fighting personal “gremlins,” Elise Holztman, president and founder of The Lawyer’s Edge, told attendees. Not just the gremlins that make us feel we don’t belong at the table or deserving of the professional title we hold, but those that put a wrench into our plans like health crises, family struggles and other personal issues. Some women suggested we give these gremlins a name — and shared the names they put to their gremlins. You would never guess looking at these accomplished women, the multitude of external pressures taking aim to derail their best laid plans of professional progress. But they shared how tapping into the power of each other can help to tackle the challenges before them. They reminded us to create our own personal board of directors to call on for advice, insight and support. 

Speaker Beth Mirzai, a professional opera soprano, addressed the power of using your voice with confidence. She noted how critical it is for women in the workplace to remember that no one is actively rooting against us. We all have advocates cheering for our success. One woman in the room reminded us, to some laughter from crowd, that this is not always the case in the legal profession. That may be true, but overall, I agree we generally want one another to succeed. Particularly, as women, we have to be a force of support for each other.  

During a break-out “fishbowl” session, one woman after another joined the table to share their professional experiences, accomplishments and struggles. Their words made me consider my own occasional feelings of self-doubt as well as family health issues I’ve struggled with that can tighten their grasp when we least expect it with no regard for our professional aspirations.  

I’m fortunate to say I’ve experienced tremendous support from Kimball Hughes Public Relations. Company leaders and colleagues have supported my professional growth and career development as a female leader whether it’s a client win or crisis, a call from the school office, health issues or  the little things in life that challenge us all. In fact, when my son was hospitalized a few years ago I was fearful of missing too much work and asking others to carry my workload. I tried to step down but I was told that was out of the question. Whatever time I needed I could have; I was assured my job would be waiting for me when I was ready because family comes first. A few months later, the agency took on the small nonprofit championing my son’s rare disease – The MOG Project – as a pro-bono client. We supported them with a public relations campaign to bring attention to this orphan disease I had come to know too well.  

Yes, our jobs are important. We all strive to do our best, but family is critical because if you can’t do the important work at home, the professional work becomes exponentially harder. The women at this conference reminded me of this fact. We are all working to succeed in our roles as female professionals, as parents, as spouses, as valued members of our communities and more. By inspiring and supporting one another, we can build each other up and enjoy our successes and those of others while managing what life throws our way. We can be better leaders, better mothers, better members of our community, mentors and role models for future generations by showing professional courage, using our voice, boosting each other up and remembering we are all rooting for each other.