Know-How Trumps Knowledge (Guest Commentary)

It’s not what you know; it’s what you do with what you know. Discerning right from wrong, day from night, is knowledge. It is not, however, know-how. And in the midst of a corporate crisis, knowing is not enough. It is the doing, and relying on what has been done, that are the first steps to recovery and redemption.

The New York Times’ Aug. 22 business story on "PR Missteps" laid out "what not to do," citing the recent crisis situations in which BP, Toyota and Goldman Sachs find themselves. The usual admonitions of a tell-it-all-and-tell-it-now strategy were advocated by corporate image managers. And, of course, the Tylenol case study was again trotted out as the sine qua non of PR fancy footwork. What was missing, though, was instruction on what corporations should do as a matter of course to ensure an adroit response if or when a bad situation hits the fan.

BP, the article stated, was "meticulously packaged" as a new kind of energy company, environmentally aware. Toyota was the epitome of automotive technology. And Goldman Sachs was known for its marketplace brainpower.

What happened? Each of these corporate titans was subject to attack not at its weaknesses, but at its strengths. BP was party to an environmental disaster, perhaps without peer. Toyota’s gas pedals stuck. And Goldman gamed the system, making money for itself with its clients’ wellbeing as a second thought. Rather than using their purported brand attributes, one by one, these corporations reluctantly responded with false or faulty information, misinformation or no information. BP laid blame elsewhere. Toyota admonished its customers and their floor mats. And Goldman stonewalled, paying a $550 million fine just to "move on." Shabby at best.

Companies build brands for good reasons: sales, support and sustainability. In times of crisis, strong brands survive because they rely on the marketing communications expertise that builds their reputations rather than shifting, pivoting and prevaricating.

While it would be a stretch to view these corporate crises as an opportunity, there nevertheless was a set of circumstances where a clear-thinking strategy based on communications infrastructure could have immediately been put into place. That clear thinking was finally achieved at BP and Toyota with effective advertising showcasing BP employees native to the Gulf – real people talking about environmental commitment and cleanup solutions. And Toyota messaging reinforcing its known quantity as a technology leader – technology used to solve the accelerator problem. Goldman remained mostly silent.

So what do you do before the fan is fouled? How about protecting the corporate strong suit with consistent attention to reinforcing who your customers think you are, what they expect, how they build a relationship with your brand and why they buy your product or service. If crisis communications were to be part of your marketing communications plan, and it should, then it should include strategies that pair goodwill with sales and reputation with returns – know-how to build undervalued assets.

Current-event advertising built on the brand’s reputation is, more often than not, effective. Plus, today’s interactive websites provide an effective venue to communicate with customers and to assemble a database that can be employed as street support when the business and its brand need non-sales affirmation. Important, too, are company blogs and fans and followers on today’s social networks. The tools exist. Pick up the kit.

The point is: Don’t wait until a crisis to communicate. But if and when a crisis presents itself, take responsibility and take action. Practice full disclosure, even if incrementally due to emerging facts. Keep the conversation going, talking forthrightly to the media, shareholders, stakeholders and consumers. In fact, employees, customers and investors should know the facts first. Tap in to that ready reserve.

If a challenge occurs because the swamp hasn’t been drained of problematic practices, then a brimming pool of public spirit should exist on which to rely. The result? Working through a pressing problem won’t require the acquisition of more knowledge. No time for that. It will, however, require know-how. You’ll be ready.

(Craig Douglass of Little Rock is a marketing communications professional. E-mail him at Craig@CraigDouglass.com.)