Crisis Plan Kathryn Walters Written: Spring 2015
Kathryn K. L. Walters Written: May 01, 2015 Rehearsal Dates for 2015: June 9 and December 8
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Table of Contents Introduction 3 Acknowledgements 4 Rehearsal 5 Purpose & Objective 6 Key Publics 7 Crisis Team 8 Media Spokesperson 9 Difficult Questions 10 Emergency Personnel 11 Equipment & Supplies 12 Prepared Information 13-15 Internet Sources 16 Evaluation 17
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Introduction Importance: It is imperative to prepare for defects in Shinola bicycles that may result in serious injury or death to the rider. Such an incident can prove fatal to the rider and the Shinola brand reputation. It is important to ensure Shinola stakeholders that the company’s intentions and actions are pure and transparent. Shinola takes seriously the functionality, quality, and safety of its American-made products and attends to them with the utmost precision and care. If the company is unprepared, stakeholders may lose loyalty and faith in the Shinola brand.
Warning Signs: • Customers issuing minor complaints of bicycle functionality • Recalls within the bicycle industry • Machinery issues in the Shinola factory • Defects or mishaps with other bicycle brands • Functional issues with other Shinola products Previous Crisis: While there has not been a previous crisis at Shinola, there have been similar crises with other brands within the industry.
Similar Crisis: One million Trek bikes were recalled in April 2015 when problems with the quick-release lever caused the rider to crash, leaving him paralyzed. The bikes are currently under recall, and the Trek brand is at risk. When the plan is not followed: Shinola’s reputation and relationship with stakeholders are at risk. 3
Acknowledgements
Jacques Panis President
Jennifer Guarino V.P. of Leather Goods
Brad Hagemeyer Dir. of Human Resources
Bridget Russo Dir. of Marketing
Daniel Caudill Creative Director
Steve Bock CEO
Heath Carr COO
Kara Berg Sr. Dir. of Sales
Nana Murbandondo Marketing & PR Executive
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Rehearsal There will be two rehearsals of this crisis plan per year; these rehearsals are used to prepare, adjust, and become confident with the plan. Dates: June 9 10:00 a.m. and December 8 10:00 a.m. During the rehearsal, it is essential to cover the following: • Prep the spokesperson and the back-up spokesperson for navigating the crisis within internal and external publics
• The holding statement • How internal publics should handle the media • Steps needed to restore trust and loyalty between the company and its publics
• Preparation and placement of all utilities
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Purpose & Objective Scenario for crisis: A 27 year-old Chicago man is hit by a car on North Clark St. after the break on his Shinola bike becomes stuck; his accident requires hospitalization and makes the online edition of the Chicago Tribune, The Detroit News, and a well-known online blog. Shinola’s image and reputation are at risk. Objective: Take control. Be genuine. Be transparent. Issue a recall of the particular bike the man was riding to examine for possible issues. Express our greatest apologies in an open letter on the Shinola blog. A small Shinola care package will be delivered to the hospital in which the man is receiving care, and Shinola will issue the man a new bicycle of his choice. If confirmation is made that the state of the bicycle did affect the accident, Shinola will quietly cover the cost of the man’s hospital expenses and deliver a handwritten letter of apology from Shinola President Jacques Panis. Who to Notify First: • Crisis Team o PR Executive - Nana Murbandondo o President - Jacques Panis o V.P. - Jennifer Guarino o Chief Executive Officer - Steve Bock o Chief Operating Officer - Heath Carr
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Key Publics
Internal Publics • Shinola shops & factories • Shinola headquarters • Suppliers • Board Members • Managers • Employees/Interns • Stockholders
External Publics • New customers • News outlets • Bloggers • Social media enthusiasts • Chicago community members • Detroit community members
*Press Release available for online posting
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Crisis Team
Jacques Panis, President
Jennifer Guarino, V.P. of Leather Goods
Nana Murbandondo, PR Executive
Steve Bock, CEO
Heath Carr, COO
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Media Spokesperson Spokesperson: Jacques Panis Back-Up Spokespeople: Jennifer Guarino, Heath Carr Appearance: Makeup is simple and non distracting. Clothing reflects the Shinola brand and is conservative. Spokesperson wears a Shinola watch. No distracting accessories, hairpieces, or jewelry. Hair is kept out of eyes at all times. No sunglasses or sneakers; dress shoes only.
10 Do’s for Media Interviews 1. Do listen to the whole question before answering. 2. Do use everyday language, not the jargon of your business of profession. 3. Do maintain an attitude showing you are calm, courteous, responsive, direct, positive, truthful, concerned, and, if necessary, repentant and apologetic. 4. Do understand the reporter’s job. Respect deadlines and return phone calls promptly. 5. Do be accessible and pleasant. 6. Do try to treat the reporter as a partner, an ally in maintaining or restoring the company’s good image. 7. Do tell the whole truth. No misleading facts, by any means. 8. Do look your reporter in the eye. In your response, address each reporter by name. 9. Do use your crisis communication plan. 10. Do keep employees informed of the crisis.
10 Don’ts for Media Interviews 1. Don’t be a wimp 2. Don’t guess or speculate 3. Don’t get overly upset about being misquoted 4. Don’t play favorites with the media 5. Don’t pull advertising 6. Don’t consider your news release “golden” 7. Don’t stick to a story if it has changed 8. Don’t be trapped into predicting the future 9. Don’t wear sunglasses or chew gum 10. Don’t smoke
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Trick Questions Prepared Questions: Where do you believe the line of responsibility falls between a company ensuring its products are safe for consumer use and a consumer ensuring his/her products are safe before use? Shinola treats the safety of its customers with the utmost importance as we continue to reclaim the making of things that are made well. We will continue to commit to this high standard of American-made products as these processes and standards ultimately benefit Americans. We also want to be certain that our customers know how best to care for their Shinola products and practice safe riding. It isn’t consumers versus the company. Our consumers and our company hold the same belief and the same goal: Well-made American products make America better. Additional trick questions: SPECULATIVE If Adam Samuels had died, how would Shinola have moved forward? LEADING You do agree that Shinola could test its bicycles more thoroughly, right?
MULTI-PART Are you aware of the recent Trek recall? Did this affect Shinola’s recall decision? When will this bike be back in stores? JARGON Will Shinola examine only the quick-release lever and front disc brake assembly or will all parts be examined during the recall?
NAIVE What is most important to Shinola during this crisis?
CHUMMY Did you ever think something like this might happen? I mean, every company messes up, right?
FALSE Shinola has agreed to pay for Adam Samuels’ hospital bills after the accident, right?
LABELING Would you say the Shinola workers who test for safety have a stressful job?
KNOW-IT-ALL We have the majority of what we need. Would you mind providing a few wrap-up facts?
GOODBYE Lastly, what would you say to those who may be doubting the quality of American-made products right now?
ACCUSATORY Did Shinola’s factory managers rush the production process in order to meet summer/ holiday deadlines?
SILENCE Remain quiet until a question is asked.
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Emergency Personnel
In case of emergency, call 911. In case of non emergency, call 311. Shinola address (Chicago): 1619 N. Damen Ave. Chicago, IL 60647
Chicago Fire Department Chicago Public Safety Building 3510 Michigan, Floor 2 Chicago, IL 60653 312-745-3705
Chicago Police Department 3510 South Michigan Ave. Chicago, IL 60653 312-746-6000
Northwestern Memorial Hospital 251 E. Huron St. Chicago, IL 60611 312-926-2000
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Equipment & Supplies: Control Room
• Several smartphones • Several small laptops • Access to internet • Access to a printer • Computer paper • Printing ink • Microphone box plug-in • Pens, pencils • Notepads • Walkie-Talkies • Shinola watches • Business Cards • Non-perishable snacks • Bottled water • Running water • Heater • Blankets • B-roll • Mult Box • TVs • Whiteboard • Desk & chairs • Press kits • Crisis plans • Street & Highway maps • First Aid Kit 12
Pre-gathered Information About the company: Since 2013, we haven't once thought American manufacturing ever failed for being too good. Our worst didn't come when we were at our best. It happened when we thought good was good enough. It's a tall order to return to form, but we're up for it. We’re starting with the reinvigoration of a storied American brand, and a storied American city. Because we believe in the beauty of industry. The glory of manufacturing. We know there’s not just history in Detroit, there is a future. It’s why we are here. Making an investment in skill, at scale. Creating a community that will thrive through excellence of craft and pride of work. Where we will reclaim the making of things that are made well. And define American luxury through American quality. (Company website)
Quick Facts: • Shinola bicycle frames and forks are handcrafted, one at a time, using US-made True Temper double-butted 4130 chromoly steel tubing. • Off-road use is not recommended. • Shinola’s luxury bicycles range from $1,000 - $2,950. • The Detroit Arrow, a Shinola single-speed bicycle, was released in 2015.
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News Release Contact: Kathryn Walters, Crisis Communications Dir. Phone: (555) 555-5555 kathrynwalters@shinola.com May 01, 2015 FOR IMMEDIATE RELEASE SHINOLA VOLUNTEERS RECALL AFTER BIKING ACCIDENT CHICAGO - American-made company Shinola has issued a recall of its Detroit Arrow luxury bicycle after a biking accident on May 01, 2015 caused speculation about the brand’s braking system. Aaron Samuels, a 27 year-old resident of Lakeview was hit by a 2001 Pontiac at the intersection of North Clark and Addison at 3:35 p.m. on May 1. Samuels had attempted to use his bicycle brake, but the brake failed. “Shinola treats the safety of its customers with the utmost importance. We send our thoughts and prayers to the Samuels family during Adam’s recovery. We have pulled all models of the Detroit Arrow until a full examination of each bike can take place,” said Shinola President Jacques Pinas. We will continue to commit to a high standard of American-made products as these processes and standards ultimately benefit Americans. We also want to be certain that our customers know how best to care for their Shinola products and practice safe riding. Our consumers and our company hold the same belief and the same goal: Well-made American products make America better, and we stand by that belief.” Samuels is currently receiving care at Northwestern Memorial Hospital and is expected to make a full recovery. No others were hurt in the accident. Shinola believes in reclaiming the making of things made well and defining American luxury through American quality by creating a community that thrives through excellence of craft and pride of work; we also make gorgeous products. ###
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Messages & Social Media Responses Three Key Messages: 1. Shinola upholds the safety of its customers and community with the utmost importance. 2. Shinola sends its thoughts and prayers to those involved in the accident. 3. Shinola’s actions reflect its sincere devotion to its community and are driven by the belief that “well-made American products make America better”.
Responses: @kathrynkwalters: Glad @Shinola takes responsibility for potential safety flubs, even if it’s not proven to be the company’s fault. #authenticity @egoins_10: “Well-made American products make America better, and we stand by that belief.” Well said, @Shinola. #USA #strong @melmelto: Has anyone seen @Shinola’s production videos? Thoughts out to Samuels fam, but Shinola is the real deal.
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Internet Sources
Shinola: shinola.com WLTX: http://www.wltx.com/story/news/local/ onyourside/2015/04/21/nearly-1-million-trek-bikes-recalledafter-rider-was-paralyzed/26140403/ Chicago Police Department: https:// portal.chicagopolice.org/portal/page/portal/ClearPath/ Communities/Districts/District1 Chicago Fire Department: http:// www.cityofchicago.org/city/en/depts/cfd.html/ Northwestern Memorial Hospital: http:// www.nm.org/location/northwestern-memorial-hospital
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Evaluation
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