Archive

Tag Archives: Business books

Crisis Proofing - How to Save your Company from Disaster, by Tony Jaques

Whey protein concentrate (‘WPC 80’) may not be the best known or sexiest product, but it is certainly big business. Deriving from cow’s milk, and a by-product of cheese production, it is used in baby formula, beverages, and a host of food supplements, including for bodybuilders.

Like other dairy products, WPC 80 is susceptible to contamination, the result of which can be deadly when digested. So when Fonterra, New Zealand’s largest company and the world’s largest dairy products producer discovered in July 2013 that 38 tonnes of concentrate had tested positive for botulism, a recall was quickly announced.

The trouble was, later tests by the government found no evidence of botulism and that the recall had been a false alarm. However, considerable damage had already been done to Fonterra, with several countries announcing milk product import bans and the company’s reputation for product quality in severe jeopardy.

The company’s independent inquiry (summary – pdf) into the incident concluded that, among other things, Fonterra was ‘not ready for a crisis of this magnitude’, that there had been a ‘failure to join the dots’ between botulism, infant food products, consumer sensitivities and the firm’s reputation, and that the company’s risk and crisis processes needed overhauling.

Fonterra’s top brass would have done well to have read Crisis Proofing, Tony Jaques’ book on how organisations should reduce the chances of a crisis happening and minimise the damage that may arise should a crisis occur.

While he gives many useful tips on crisis response, including how to navigate legal advice on apologies, Jaques’ background in issues management means his insights and practical tips on the leadership mindset, strategic approach and planning processes that enable companies to avoid train wrecks in the first place are particularly valuable.

In my experience, many companies place undue emphasis on identifying risks (especially, given their slippery nature, reputational risks), at the expense of ensuring their issues management processes work properly – an area Jaques excels in. For example, he lambasts the probability/impact and significance/influence issue prioritisation models as crude and over-simplified and instead sets out a more comprehensive and nuanced proprietary model based on an issue’s Impact, Salience, Visibility, Affectability, Proximity and Profile.

Jaques also takes aim at the reactive and ad hoc approach taken by many organisations to managing issues. Too often, he says, companies are overly focused on recording and tracking risks, and tweaking the identification, tracking and decision-making processes for the benefit of management and risk committees, as opposed to actively working to resolve them in a clear and strategic way. By contrast, his Do-it issue management model (chapter 8) is a model of clarity, practicality and focus.

At the heart of Crisis Proofing is a call for mindful leadership of the top-down variety that can seem contrary to the open and horizontal forms of organisational decision-making pushed by some contemporary management thinkers. Yet, as Jaques argues, effective crisis management demands hands-on, decisive and swift decision-making at the very top of the organisation, and a willingness to learn from mistakes and make changes.

As such, while many of the tips in Crisis Proofing are useful in day-to-day risk, issues and crisis management, the book is especially relevant to those leaders and senior decision-makers directly responsible for their organisation’s strategy, culture and reputation.

It is a book I recommend wholeheartedly.

 

Disclosure: I was asked by the author to review the chapter of Crisis Proofing on social media, and was subsequently provided with a review copy of the book by Oxford University Press. I also discuss Fonterra’s WPC 80 botulism scare in my book Managing Online Reputation

 

I am delighted to confirm that my book Managing Online Reputation is now available in Vietnamese.

While the mainstream media in the country remain controlled by the government (to an even greater degree than China ), the huge local popularity of the internet and social media and a dwindling appetite for state TV is resulting in greater pressure for institutional accountability and transparency.

As I pointed out in an earlier post, Vietnamese organisations are not used to such scrutiny and have little experience managing issues, incidents or crises in full public view – something apparent in a series of botched responses by household name local institutions to allegations of pollution, market manipulation and so on.

As domestic scepticism broadens and deepens, and as Vietnamese companies start competing more aggressively in foreign markets, local business leaders will have to ensure their organisations are properly equipped to understand and handle a whole new set of customer and stakeholder needs, expectations and behaviours, and for the reputational jabs and jolts that come with the territory, including online.

Hence the need for a Vietnamese version of Managing Online Reputation.

Charlie Pownall - Managing Online Reputation (Alpha Books, 2016)

Published by Alpha Books, the country’s top business book publisher, Managing Online Reputation can be found in most reputable bookshops across Vietnam, and online.

The rush of tweets, infographics and animated gifs makes it challenging to get a real handle on longer-term communication trends. Thankfully, long-form journalism, storytelling and analysis are in rude health.

Here are the three best books on communication I have read in 2013 (ie. not necessarily published over the past twelve months):

Trust Me, I’m Lying, by Ryan Holiday

Ryan Holiday - Trust Me, I'm LyingBilled as a warts-and-all confessional on modern-day media manipulation and spin-doctoring, Trust Me is actually principally a polemic on the state of the media in the US and a no-holds-barred expose on the inner workings of the blogs re-setting news industry plate tectonics, notably Business Insider, BuzzFeed, Drudge Report, Gawker and Huffington Post.

If you believe your news should be informative and balanced, then this book makes for highly unsettling reading – Holiday’s thesis is that the media industry has effectively lost its bearings in a desperate quest for exclusives, page views and ad bucks, disregarding any pretence at accuracy, objectivity or integrity in the process.

While Trust Me, I’m Lying reads a little like a personal slanging match in places (the author pulls no punches in fingering those he sees as chiefly responsible, amongst them Gawker Media’s Nick Denton and media talking head Jeff Jarvis), it holds valuable insights and lessons for both communications professionals and consumers.

Exposure, by Michael Woodford

When Michael Woodford, newly appointed CEO of medical to consumer optical manufacturer Olympus, got wind of a scoop by a niche Japanese magazine detailing massive financial irregularities at his firm, he could scarcely have believed that he would wind up blowing the lid on a cover-up of some USD 1.7 billion of losses and becoming one of the highest-profile and most effective whistle-blowers in corporate history. (Of course, Woodford has since been knocked off his perch atop the whistle-blower premiere league by one Edward Snowden.) While Exposure suffers from poor writing and can hardly be described as a balanced account (according to Japanese friends, Woodford is seen to have over-egged the publicity pudding and thrust himself to the front and centre of the story in an unashamedly un-Japanese manner), it is nonetheless a fascinating and, in this case, singularly unedifying insight into the culture of the keiretsu and big business in Japan. It is also an excellent example of how a reputable company can be brought to its knees by a rogue employee (or two) through bitter resolve and smart communication on the one hand and corporate secrecy and intransigence on the other. For fuller thoughts see this blog post.

The New Emerging Market Multinationals, by Amitava Chattopadhyay and Rajeev Batra with Aysegul Ozsomer

A book less about communication and reputation than about brand building, the authors use in-depth interviews with senior executives at emerging giants from Brazil, China, India, Turkey and other ’emerging’ markets to identify how a new wave of multinationals are building global businesses and global brands. Full of valuable insights into how firms like Asian Paints, Asia-Pacific Breweries, Godrej, Haier, Lenovo, Natura and Wipro are building their brands, The New Emerging Market Multinationals sets out a step-by-step process for global brand-building, including how to overcome country of origin perceptions, and ends with a look at how companies are – and should – manage their brands across their organisations, making a strong argument for centrally-managed brands. An excellent resource for professionals at emerging market firms and at established players figuring how to take on their new competitors.

 

%d bloggers like this: