Managing Organizational Crisis and Brand Trauma

266 Pages·2017·2.241 MB·English

by  Tafoya, Dennis W

M
a n a g i n g
o C
rg a n i z aT i o n a l r i s i s
and
B T
r a n D r au M a
Violate Personal Trust Loss of Respect
Personal Wounds & Injury Professional Disgrace
Sexual Misconduct Psychological Distress
Rotten Customer Service Emotional Stress
Negligence, Carelessness Career Ending Behavior
Betrayal of Trust Credibility Lost
Rumor, Gossip, Fake News Influence Decay
Terrorist Threats Challenged Leadership
Political Dirty Tricks Front Page News
Harm to Animals Personal Litigation
Dennis W. Tafoya
Managing Organizational Crisis and Brand Trauma
Dennis W. Tafoya
Managing
Organizational Crisis
and Brand Trauma
Dennis W. Tafoya
CompCite, Inc.
Devon, Pennsylvania, USA
ISBN 978-3-319-60725-2 ISBN 978-3-319-60726-9 (eBook)
DOI 10.1007/978-3-319-60726-9
Library of Congress Control Number: 2017948082
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p
reface
The excepTion: professionals and organizaTions
ThaT do iT righT
There is no shortage of material for this book, Managing Organizational
Crisis and Brand Trauma. Recent events associated with organizations
such as Wells Fargo, United Airlines and the Trump administration or
with specific people such as General Michael Flynn or Governor Chris
Christie provide an almost inexhaustible amount of material for the book.
But after reading and researching account after account of organizations
in crisis, I realized that dissecting only poorly performing organizations or
professionals wasn’t providing the perspective I needed to write a fair and
balanced treatment of the subject. What I needed were good referents,
examples of good, well-managed organizations to use as points for mental
comparison. Fortunately, I have experience with a number of people and
organizations that I think of as representative of excellent professionals
and fine organizations. So, as a way for recognizing them and to provide
you, the reader, with examples in contrast to what you’re about to read
about in this book, I have decided to feature some in this rather unique
spin on a preface. They and their professionalism are, in my experience, in
direct contrast to most of the rest illustrated in the book.
I am familiar with the following people and organizations, and found
myself relying on them as I wrote the book; they were my benchmarks for
the way I believe organizations and professionals can operate to avoid con-
flicts and brand crises. For example, I’ve known Gerry Weidema for more
than 30 years. She’s a CPA, CFP and a principal at WLGR, an accounting
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viii PREFACE
group in Hampton, New Hampshire. In addition to being a fine profes-
sional, she is an excellent business resource, advisor and consultant on
business matters. I have recommended her, without hesitation, to several
in business because she has the competence, solid character and vision to
recognize issues before they break, to help others manage their organiza-
tions and, importantly, to prepare for an organization’s or professional’s
future. She represents the type of professionalism needed in organizations
seeking to successfully manage crisis-laden conditions and threats. I wish
we were not divided by such great distance; she’s a wonderful resource.
Denise Lee Yohn is a brand-building professional of the highest order.
Her many books, such as What Great Brands Do, are both tools to enhance
professional competencies and perspective, and also guides for those seek-
ing solutions in their own organizations. More than an author, however,
Denise is a consultant and advisor with two unique features: she is both
extremely intelligent and a true visionary. She and her material are, in fact,
the marketing perspectives I relied on and recommended in this book. I
could easily see her write a sequel to her book What Great Brands Do,
entitled What Great Brands Do to Avoid Crises.
Jay Tolson is a longtime friend and associate. I value any time we have
an opportunity to meet.
Jay is steeped in corporate experience. He is an attorney, a retired CEO
of Fisher and Porter, a large Pennsylvania manufacturing firm, and a mem-
ber of several corporate boards. His observations regarding the operation
of organizations and especially the functioning of corporate boards were
invaluable as I prepared the book. He is an esteemed friend and colleague.
Jo-Ann Osipow is an example of a truly fine professional. She is
an Executive Vice President at GFK, a large multinational marketing
insights and consulting firm. We’ve had different opportunities to talk
and exchange information over the past several years, but not as many
as I would like. Apart from her background in marketing and business,
however, what I truly appreciate about Jo-Ann is her proactive approach
to professionalism in general. Jo-Ann is a fine mentor to her own staff,
but she never hesitates to extend herself to those outside her organiza-
tion should she come across material that may be of use or interest to
them, something she’s done for me on several occasions. Jo-Ann is the
consummate professional. She strikes me as one who proactively shares
knowledge and perspective, demonstrates what she knows regarding
how to build and advance marketing as a profession, and always seeks to
add value to those with whom she has contact.
PREFAC E ix
Philip Rosenfeld is the Director of the Pennsylvania Art Conservatory
in Berwyn, Pennsylvania. Philip’s efforts demonstrate how one can suc-
cessfully blend three, often discrete disciplines, art, science and finance,
into one successful customer-driven business. Credibility, trust and com-
petence are fundamentals for the professional labeled in the book as an
“individual contributor” and Philip is the personification of this model.
One’s interaction with professionals like Philip and the others mentioned
here reflect three benefits: increased knowledge, a fair and honest experi-
ence, and a successful business transaction.
Freeman’s, America’s oldest auction house in Philadelphia,
Pennsylvania. Freeman’s has been in operation for more than 200 years,
but it stands and is included here as an example of a fine organization
for several reasons. In terms of general operations, Freeman’s is a robust
international organization with equally strong community presence—not
an easy accomplishment. For example, some of Freeman’s fine art, jewelry
and antiques specialists travel around the country to regularly appear on
Public Broadcasting’s Antique Road Show, so one might say they have
“star quality,” but these same professionals are easily accessible when at
their offices in Philadelphia. More importantly and pertinent to this book,
when I tried to conceptualize what a good corporate board might look
like in practice, Freeman’s stood out. I believe that the effective board is
one composed of people with vision, a strong sense of the business and
fundamental knowledge of the business operations from its top to the
street. This board mirrors that model.
Ken Klippen is a model of professional values and competence. He is
a skilled lobbyist whose knowledge of Washington and American agri-
culture has proved to be invaluable to my research over the past ten
years. Conversations with Ken and the others mentioned in this preface
exemplify that we don’t just enter into a talk about business, govern-
ment or social affairs. Rather, we enter into an exchange, a partnership
that has as its objective the discovery of optimal ways to function in a
society inundated with stakeholders who often seem more interested in
meeting their own needs over the better interests of the community as
a whole.
Finally, I want to acknowledge the contributions three people have
brought to this project. Marcus Ballenger ranks among the finest editors
with whom I’ve worked. He clearly demonstrates the vision needed in his
type of position. He is able to look beyond the stuff that regularly appears
in a book proposal to see the potential a book can have for the company
x PREFACE
and its readers. He has championed this project from the very beginning
and has been great to have as a partner in this effort.
His assistant, Jazmine Robles, has proved to be a ready resource for
questions and requests. I’ve enjoyed our contacts throughout this proj-
ect. She continuously demonstrates a commitment to quality and a driven
desire to make sure the final product meets Palgrave Macmillan’s and the
author’s needs and expectations. I am indebted to her for her efforts.
Then, there is my own research assistant, Devon Reilly. Throughout
the book, I point out why having a sense of urgency is important for pro-
fessionals and organizations, and Devon is a model of what I describe in
the book. She commits to a project, honors due dates and always produces
fine-quality work. She is a pleasure to work with and have as a friend and
associate.
Clearly, what’s written about one of the above professionals or organi-
zations can be pinned to others described. Each are examples of profes-
sionalism, each extends their efforts beyond mere value to value-added
behavior, each approaches their work and interactions with a proactive
sense of urgency and each demonstrates the finest essence of impression-
leaving behavior. These people and organizations are an oasis in a world
populated by organizations such as those described in this book.
c
onTenTs
1 An Introduction to Organizational and Brand Traumas 1
2 Organizational Health: The Capacity to Manage Events
(and Their Downsides) Requires an Organization Steeped
in Competent and Capable Individuals 15
3 Trauma in Organizations: Triggering Organizational
Trauma and the Trauma Model 39
4 Brand Trauma 71
5 When Trauma Isn’t a Given (When an Event That
Should Produce Trauma, Doesn’t) 103
6 Measuring Brand Trauma 157
7 Introducing, Reestablishing and Maintaining Order 179
8 Trauma Never Goes Away: It Always Has to Be Managed 211
xi