Getting Over Bad PR

AllBusiness.com
October 1, 2001

There's a lot of bad news these days. Missed revenue targets, layoffs, sharp stock declines. They all have a negative effect on how customers perceive a company. So, how can companies overcome a wilting public image? By acting quickly—and decisively. Bruce Rubin, a corporate crisis counselor for Weber Shandwick Worldwide, a public relations firm based in Cambridge, Massachusetts, says that during a crisis, decisions affecting the existence of a company must be made "instantly, professionally, and correctly. The single most important factor in eliminating or minimizing negative news is speed," he says.

In 1998, when Sybase, a software company in Emeryville, California, discovered that its Japanese subsidiary had fudged profits that were, in reality, losses, the Fortune 500 company called Rubin for help. His solution was to give the media an inside look at Sybase as the crisis unfolded, providing them with unlimited access to the company's CEO, who was also the official spokesperson. "Part of our strategy was to let the media see how personally upset and disappointed the president of the company was," Rubin says. "Then reporters could see that there was more to the story than just negative financial news."

Resulting media coverage portrayed Sybase as a company stunned and wounded by the actions of a few corrupt individuals. Subsequently Sybase's stock price fell less than expected and recovered fully in a matter of weeks. "The media loves stories that go on and on," Rubin says. "By giving them total access to the CEO, there was nothing left for the media to discover and we were able to move through the crisis quickly."

Speed is essential when dealing with an onslaught of negative publicity—and so is preparation, says Mike Paul, president of MGP & Associates, a New York public relations firm. "Unfortunately many executives have an ostrich mentality," Paul says. "Execs want to put their heads in the sand and make believe that nothing will happen. But having a crisis plan helps companies move swiftly when something does happen."