Tag Archives: Mary Barra

How to Apologize: Best Practices from AOL, GM & Sony

Last February we wrote about the launch of “Apology Watch,” noting that the new Dealbook column would “monitor and report on the actions of CEOs and other public leaders after they have publicly apologized for…[fill in the blank].” That blank was filled in countless times over the course of the year. By looking back at some of 2014’s most high-profile apologies, we can learn quite a bit about what does and doesn’t work.

Be prepared and transparent When the Guardian reported in October that anonymous messaging startup Whisper was tracking users without their knowledge, the company’s disorganized response only made the situation worse. “Whisper’s responses have seemed scattershot and poorly considered” and “leave the impression that the company is attempting to cover its tracks without in any way effectively addressing the core issue–their breach of their users’ trust,” we explained in the Wall Street Journal’s Crisis of the Week column. “Management should have started with a simple statement that they are reviewing their terms of service, avoiding additional controversy.”

Listen to critics and take action One of Dealbook’s first “Apology Watch” columns, which we wrote about in March, focused on AOL CEO Tim Armstrong’s apology for an insensitive comment linking employees’ “distressed babies” to a cut in the company’s 401(k) benefits. While acknowledging that the CEO’s apology wasn’t perfect, author and corporate consultant Dov Seidman praised how Armstrong listened intently to those that he offended and acted on his apology by reversing the 401(k) cuts. “With these two actions, Mr. Armstrong took important steps toward restoring faith in personal and corporate character,” Seidman wrote for Dealbook.

Show that you are sincere After their embarrassing and inappropriate emails about President Obama were leaked in December, Sony co-chairwoman Amy Pascal and film producer Scott Rudin both issued well-considered and heartfelt apologies. While the Sony Hack has grown into a larger and more complex crisis, Pascal and Rudin understood the gravity of their leaked exchanges and responded by taking responsibility for them.

Social media and Crisis Communication 2.0 The series of rash tweets by Whisper’s editor in chief demonstrates some of the dangers of social media. But we can look to General Motors to see how social media can be a powerful tool for apologizing and rebuilding trust. In the wake of recalling millions of cars in early 2014, the automaker employed a number of strategies to help manage the fallout. As we described in March, GM customer service staff monitor and respond quickly to comments and complaints on Facebook, Twitter and online auto forums. The company also shared a video in which CEO Mary Barra directly addressed the recall. This 2.0 crisis communications strategy, which we examined more closely in a Forbes.com article, helped set the stage for what Bloomberg Businessweek called an “unusually bold” and “full-throated apology” by Barra in June.

Be quick and measured Best Buy’s ill-considered tweet making light of the murder case featured in the popular podcast Serial could have caused more damage to the retailer, but this quick and concise response helped prevent that:

We deeply apologize for our earlier tweet about Serial. It lacked good judgment and doesn’t reflect the values of our company. We are sorry. — Best Buy (@BestBuy) December 11, 2014

This tweet-sized apology was sincere and appropriate in scale—for a tweet-sized misstep. With it, the company nipped a potential crisis in the bud.  Stay tuned, as there will surely be more apologies to examine and learn from.

 

 
 
social media reputation risks

On April 2, The Wall Street Journal published an interview with me: “CEOs Face Reputation Pitfalls If They Avoid Social Media.” It focuses on the dangers social media poses to executives, and on the reasons mistakes seem to happen so often.

The article is behind the newspaper’s pay wall, but you can read the full text here.

I would like to elaborate on some of the important points the interview touches on. Social media can be an attractive way of engaging with your consumers and the broader public, but it can easily turn into a reputation headache. No executive should have a Twitter account – or any presence on social media – unless she or he has a very clear strategy and measurable goals. And for executives in a regulated industry, or that have already been the target of negative publicity, our advice is to stay off.

Your Presence on Social Media May Not be Worth the Exposure

Why? Unless being active on social media serves a specific objective, it isn’t worth the exposure.

In some cases, social media can be a very effective tool. If the public strongly identifies the CEO with the brand, that CEO can use social media to build the audience for the brand. Elon Musk is a good example. He is Tesla (and everything else his company does). Mary Barra is on Twitter and uses it well. Social media is also often a good match for senior execs in advertising, media, fashion and transportation.

On the other hand, Howard Schultz, CEO of Starbucks, is not on Twitter. But Starbucks itself is, and has over seven million followers. Howard Schultz gets plenty of media exposure already. If he had a Twitter account there is a chance he may get too much attention…and attention that would detract from the Starbucks brand.

Social Media Tips for High-Profile Leaders

If you are a high-profile leader in any industry – or organization – and have not yet adopted social media but are thinking about it, consider taking these steps:

Study the social media landscape, paying special attention to what your peers are doing. Who is doing it well? Who is not? Who is staying away entirely?

Identify what you hope to achieve. Consider how it could impact your organization and its brand. Who will manage your account?

Mistakes do happen. How will you respond to a crisis? Are the benefits worth the possibility of a crisis? An example of one: 500 Twitter followers lampooning your last tweet…and then protesting your salary and recent layoffs at your firm.

The golden rule for social media is to stay neutral. If you want a presence but don’t want to create waves, post about topics that are safe. Avoid stating opinions that aren’t in line with your organization’s brand. That will help you avoid joining the list of executives whose social media gaffes have made headlines.

 
 
Crisis management

CEO Mary Barra has not been able to stop GM’s crisis. But her 2.0 crisis communications skills are an asset to GM. They can be judged by the transparency and skill with which she handled the recall catastrophe on the Internet.

Barra’s communications strategy incorporates multiple digital media platforms. She has used these channels to respond to the crisis with a strong and genuine message. In addition to harnessing social media like Facebook and Twitter to connect directly with customers, she has also addressed the recalls in a series of videos, a USA TODAY editorial, and even her commencement speech at the University of Michigan earlier this month. CEOs can learn much from studying her playbook.

If this topic interests you, please see my full analysis on Forbes.com: Crisis Communication 2.0: Mary Barra Strong in Adversity.

 
 
General Motors’ Wins Praise with Social Media Strategy

General Motors is using social media to manage customer complaints and its reputation — and using it well.  How they are applying social media management is a good case study for other companies in crisis.  (The Detroit auto manufacturer has recalled 1.6 million cars and faces roiling legal issues after top management hid defects that caused deaths for 10 years or longer.)

Key examples from a New York Times article by Vindu Goel include:

–    GM’s Facebook page.  In addition to hosting GM-produced content, it is also an open forum where customers can post comments and complaints. GM staffers are engaging them in real time with assistance and responses.

–   @GM on Twitter. Frustrated customers who have spent an hour or more on the phone with GM customer service representatives have turned to Twitter to seek help – and found it in minutes.

“G.M. has a team of about 20 people based in Detroit that manages its social media presence — including monitoring about 100 independent auto forums — and responds to inquiries and complaints seven days a week,” reports Goel.

In addition to managing the crisis using traditional methods – including letters to car owners – GM created a video with CEO Mary Barra to keep customers and employees abreast of how the company is managing the situation.

As more companies use social media to better manage customer relations, they can learn from GM’s example.