PR 101

Anyone who is in business is eventually going to face a situation where a client or customer is unhappy. How that person is dealt with can be a defining moment for the business. Remember – as I have said in other blogs – an unhappy customer now has a virtual audience of millions. Anybody with a decent number of friends on Facebook, followers on Twitter, knows how to upload a video to YouTube or has a well read blog can wreak havoc if not dealt with properly.

However, if the complaint is dealt with correctly, the wronged party can quickly become an advocate. I always tell clients that’s why they want to hear the complaints. It gives their business an opportunity to shine. You need to empower all of your employees to be able to take positive action in the face of a crisis because they are usually the ones dealing with the complainer.

Waiting even a couple of hours to fix problem may be too late. The damage may be permanent. Then you are facing an angry customer who might be telling the world not to use your product or go to your business. Ask Groupon, United Airlines, Proctor & Gamble or a number of other businesses what happens when a customer complaint is ignored.

A restaurant I was at Saturday night faced that situation. I was the angry customer. I like to think I am savvy when it comes to Social Media. I was fully prepared to jump on-line and use my social media accounts to rip this place a new one. But the manager turned me from that angry customer into an advocate.

The restaurant in question is named Trocadero. It is one my wife’s and my favorite places. It is funky place that serves French influenced food. We have been going there for a long time. It was one of the early leaders in turning Milwaukee from a beer and brat city to the Foodie town it is today.

So here is the scenario. My wife and I were going to the theater with another couple. No, not a movie, an actual performance. Milwaukee also has a ton of live theater.

At any rate, the performance was to begin at 7:30 p.m. The four of us arrived at Trocadero at 5:45 p.m. and were seated immediately. We figured that we would be eating by 6:15 p.m. and leaving by 7 p.m. But it didn’t work out that way.

The restaurant was packed. Milwaukee has a pretty lively weekend scene. There was a lot going on Saturday night in the downtown area.

The waitress was busy, which didn’t bother us. She took our order at about 6 p.m. We told her we had theater tickets and needed to leave by 7 p.m. She was quick with everything she had control over, primarily our drink orders. So far, so good.

However, we didn’t get our food until around 6:50 p.m. Not good. We were about 15 minutes from the theater, plus we had to find parking once we got there. None of us were happy. The waitress knew that, but it wasn’t her fault, it was the kitchen’s.

Personal note, in high school and college my son worked in a number of restaurants. For a while he considered being a chef. So, I know how restaurants operate.

At this point, the manager walked by and asked how things were. I told her. Now, she could have said something to the effect that we are sorry about the slow order, but that’s just way things were. Then the tone of this blog would have been very different.

Instead, she knocked 20 percent off the bill and apologized. She explained that the kitchen was overwhelmed by the rush. She said she hoped this one experience hadn’t soured us on Trocadero.

She also took responsibility for the problem. Now, she doesn’t work in the kitchen. But she still said it was her fault. That’s a key leadership lesson. If you are the captain, you take the blame. You give the credit to the people working for you when things go well.

Because of this woman, I recommend if you are in Milwaukee, go to Trocadero. I think you will like it.

You see, what this person did was turn a negative into a positive. She saw a problem and she dealt with immediately. That’s how you build loyal customers.

If used properly social media can change internal communications as fast as it is changing what’s happening in the outside world. Smart companies see this and are now adopting social media for employee communications. When done properly, social media and the tools that go along with it can help companies in their number one internal communications goal – engaging employees.

The old model emphasized individuality, the star system. Company’s now know that to enhance creativity it is important to create a culture that fosters it. Companies that create an atmosphere of support, innovate and creativity will be the ones that lead their industries. It will also lead to happier employees, something I would think every company wants.

When people in companies and teams feel engaged, the benefits are significant. Towers Watson (formerly Towers Perrin), the global professional services firm, interviewed 90,000 employees in 18 countries, and found companies with high employee engagement had a 19 percent increase in operating income and almost a 28 percent growth in earnings per share. Conversely, companies with low levels of engagement saw operating income drop more than 32 percent and earnings per share decline over 11 percent.

The old idea was that as you went up the hierarchy, somehow you got smarter. Leadership was viewed as the ability to tell people what to do, not to listen employees. In every innovative company today, that idea has gone away. Now the mantra is “all of us are smarter than one of us.”

Companies such as Zappos Shoes, Starbucks Dunkin’ Donuts, Apple, Southwest Airlines and many others have found success comes from dialog, not lectures.

While it should be obvious why internal communication is so important, I often find company leaders don’t get it. Here’s why – a Harvard Business School study found that the less information a company provides its employees, the more likely they are to start and spread rumors. It’s simple, nature abhors a vacuum. If that vacuum is not filled with real information, someone is going to fill it with male bovine excrement.

Now, I am sure all of your companies work to put out the correct information. But there are obstacles: ensuring employees just don’t just delete the email, then ensuring that they open it, and that they read the entire message. If that all happens, you still have to hope employees take the time to think and understand the messages so they are able to respond appropriately.  That’s why there has to be a face-to-face component of communications either with individuals or in a group.

However, face-to-face meeting are not as always effective as companies would like to think. When I was a reporter I covered crime in Detroit and its suburbs. I learned something  then from police officers that still applies – there is nothing so unreliable as an eyewitness. People hear and interpret the same message in different ways.

Plus, logistics can get in the way of face-to-face meetings. I work with a multinational company that has offices in the U.S., China, India and England. How can a company like that hold face-to-face meetings with its employees?

Social media can solve those problems change. Instead of sending out that mass email or posting on the company Intranet in hopes people will take the time to read it, social media provides tools help employees actively participate in creating and sharing information. It is a much better way to get people to listen and understand what you are saying.

Of course, I know social media scares a lot of senior executives. They worry it will affect productivity. They are concerned about allowing employees to create content. The IT department often has a dozen reasons why employees should not be allowed to use social media.

Another fear I often hear is that my employees are going to use the new tools to complain about the company. Yeah, they are going to do that. That’s a good thing. Who you would rather have an employee complain to – someone in the company who can fix the problem – or their friends?

As I said before, all of us are smarter than one of us. From an employee’s complaint could come a solution to a long-standing problem. What this all means is that you can be internal ambassadors and facilitators for your company. Social media gives you the ability to do that. You can hear about and solve problems before they blow up.

Anticipating how to handle a crisis before it occurs should be a key part of any company’s business plan. The one thing social media has probably made more difficult is crisis communications. A company now usually has minutes, possibly no more than an hour, to prevent a small crisis from growing into a major disaster. A response has to be immediate – within those same minutes of the crisis.

There is no alternative, no other option.

Here in my city of Milwaukee is an example of what happens when the crisis is more nimble than the responders. A suburban mall found itself the victim of what was apparently a flash mob that wreaked havoc throughout the shopping center. Then mall management made things worse by the way it responded

Businesses need planning and practice to be ready for a practice. A business has to have a crisis communications plan in place long before the crisis happens. To ensure the plan works when needed, it has to be rehearsed constantly.

Think about it. Fire Departments, police departments, the military and a host of other agencies constantly train. They do it so when they have to go into action everyone knows what to do.

Here’s what happened to Mayfair Mall in Wauwatosa, WI. I should note that it is one of the top shopping destinations in the Milwaukee metro area and is almost always crowded. In this case, I think the flash mob organizers decided that the crowd of shoppers would be the perfect audience for their “performance.”

For those who have not heard the term flash mob, Wikipedia defines it as a “large group of people who assemble suddenly in a public place, perform an unusual and pointless act for a brief time, then quickly disperse. The term flash mob is generally applied only to gatherings organized via telecommunications, social media, or viral emails.”

At Mayfair a group of several dozen teenagers raced through the mall, knocking over displays, running up and down escalators, which scared customers and staff. Mall management said the event was too organized to have been a spontaneous occurrence. They suspect it was organized via Facebook, Twitter or any number of other sites. Adding to the commotion was an apparent attempted robbery in the mall parking lot. Authorities have not said if the robbery was related to the flash mob but a shot was fired, which caused even more panic among. Luckily no one was hurt.

Mall management said they monitor social media sites to ensure things like this don’t happen. They said they were able to stop a flash mob planned for two days before Christmas. In that one, a group of high school students was planning on dancing in the mall.

If mall management is monitoring social media, someone fell asleep at the switch on the disruptive flash mob. For something this large, there had to be multiple posts on Twitter and Facebook. That’s how the word gets spread, by constant repetition across the web. Someone should have caught this.

It is possible the word was spread via text message. Unless you work for the National Security Agency, or some other federal investigative agency concerned with terrorism, those messages cannot be tracked. In that case mall management would not have had advance warning.

Even if Mayfair management did not have advance warning, the ball was still dropped after the incident. The flash mob happened Jan. 2. Mall management waited until the afternoon of Jan. 3rd to respond which meant for 24 hours Mayfair Mall lost control of its brand. In social media years that’s a lifetime. The mall was being defined by the hundreds of comments most of them negative made on social media sites and to the local media

When Mall management finally did respond, they did it by issuing a press release. Kind of like using a carrier pigeon to get the message out. What management said was just as bad.

Most of the statement condemned the group who disrupted the mall. It wasn’t until almost the end of the statement that management said: “the safety and security of our guests are always our top priorities.  We will not tolerate any behavior that compromises that safety.  As a result of this incident, we anticipate that there will be operational changes as well as consequences for those involved.”

What the statement should have said was that security was being increased immediately and there would be an even stronger policy governing when teenagers could be in the mall. The mall later did announce that it was changing its policy regarding when teenagers would be allowed in the mall. But that happened after the initial flurry of reports on the incident, which didn’t have the effect it would have had if the mall had made the announcement on the same day as the incident.

Plus Mayfair competitor Bayshore Mall announced changes to its policy for teenager access at the same time. There have been no incidents at Bayshore so that mall looked proactive. Mayfair suffered by comparison.

In other words, management be nimble, management be quick, or the business is going to be burned by something a lot hotter than a candlestick.