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Communication in Crisis: Why the Private Club Industry is Different

There are countless books on crisis communication. Several decades of high profile crises have produced a consensus about how to prepare for and deal with crises. The consensus started with Johnson & Johnson’s contaminated Tylenol in 1982 and includes more recent crises such as BP’s oil spill in the Gulf of Mexico two years ago, last fall’s tragedy at Penn State, and the current problems of the Boy Scouts of America’s most recent scandal. The playbook advises: be open, be honest, get everything out, and be transparent. However, in terms of the needs of the private club industry, that advice is not necessarily applicable or desirable.

Communication has indeed changed dramatically with significant implications for all industries, including private clubs. In this new communications landscape, positions or actions that may be legal can still generate adverse attention, which must be managed. Many crises that clubs may confront are predictable, and by preparing in advance and clearly outlining communications procedures and plans, clubs can be ready to face whatever comes their way.
 


The world has changed

What hasn’t changed is that crises are initially divided into two categories: those you know about in real time and those you learn about later. For example, you’ll know about an on-site accident or an errant golf ball that hits a member in the parking lot, knocking them unconscious. However, you may not know that the twenty-something daughter of a member celebrating her birthday developed food poisoning until you read about it on her Facebook page, complete with iPhone-snapped pictures from the party in your dining room.

A decade ago, a club might get an inquiry from a reporter from the local daily paper, which would trigger an internal discussion about whether to respond and how. Several hours would be spent on the telephone ascertaining what actually happened, what the club’s position was, who needed to be involved, and what the legal liability might be. Someone might return the phone call before the reporter’s deadline at the end of the day or they might not.

This approach is not nearly as effective as it may have been several years ago. The traditional, mainstream media, particularly print, is shrinking. Newsweek recently announced the cessation of its print publication and the New Orleans Times-Picayune publishes only three days a week. The trend, however, makes print media more challenging. Because of the increased pressure for material and the 24/7 online news cycle, deadlines are immediate, not at the end of the day. The shift to an online medium creates opportunities for readers to comment on a story, and the reporter is expected to engage with them. Reader/viewer generated material is the fastest growing component of the media. (Last spring, as F4 tornadoes swept through Indiana, the first thought in many people’s minds was, “I need to go outside to take some cell phone videos!”) While many private clubs have codes of conduct ostensibly preventing members from discussing or revealing club business to nonmembers or the public, there has been an undeniable sea-change in how information is shared that is intensified by generational attitudes.

Our hypothetical food poisoning incident that ends up on Facebook may not have been posted by the child of the member. It may have been sent to a close friend, who then shared it. But once it’s posted, others will see it and may share it, too. Facebook, YouTube, Twitter and the other social media channels are an inescapable part of this brave new world.

Recommendation: If they have not already done so, the club’s executive leadership, board and senior staff should get up to speed and have a candid, in-person discussion about the implications. Clubs should have a method of monitoring social media in place. Setting up a Google alert is the first step, but it will not catch the Facebook pictures and mentions. Your dining room may not be named, but it will be recognizable to your members.

Monitoring social media is an important step because an organization should generally respond through the same channel in which the inquiry or story appeared. In the case of an inquiry from a reporter, you can ask the traditional questions, “When is your deadline? Who else are you talking to?” But for the blogger—and the reporter and blogger are increasingly one and the same—there is about a 30-minute window to respond. (More on what to say below.) For the Facebook picture or post, the reaction time is even shorter. There is no time to “get all the facts.” Many clubs do not have public Facebook pages, and the decision about whether to respond and participate should be a policy decision established in advance.

Not all crises are equal

Some crises are both expected and fairly straightforward—hardly making them “crises” at all. For instance, some clubs have endured years of vilification in the media, as well as from women’s groups and other sources, for not having any female or minority members. Clubs are within their legal rights to set their own membership criteria. When supported by senior leadership and the majority of club members, their position only enhances the club’s image of exclusivity. Moreover, this issue surfaces regularly, so clubs have had decades of experience responding to queries. Not every issue has as much time on its side.

The next category of crises involves instances where there is a very high probability of media attention, where there are other audiences to consider, and where responding with “no comment” is frequently interpreted as a guilty plea. Reporters believe as an article of faith that “no comment” is a confirmation of the question. As in: “Was the club treasurer able to embezzle $100,000 as charged by the district attorney because the club had lax financial controls?” Answer: “No comment.” Conclusion: the club had lax financial controls.

Routine crises that would generate public and media attention and where a club should be prepared to respond quickly include:

  • Food contamination or poisoning
  • Incidents traceable to consumption of alcohol on club premises
  • Accidents
  • Fires
  • Financial impropriety triggering investigation and prosecution
  • Environmental charges (such as toxic chemical use)
  • Occupational health and safety regulations
  • Public accusations
  • Bickering or lawsuits involving personnel
  • Membership disputes and policies
  • Criteria for response

The first question to ask is, “Who’s the audience?” For example, a club that is being criticized for not having any female members is responsible only to its members. In a health or safety incident, government regulators become a key audience in addition to members and prospective members. Even in a situation where a club is clearly within its legal purview, the perception of other internal and external audiences is important. For example, suppose a disgruntled female employee files a complaint charging she was not promoted because of gender discrimination. The club can legally say staff policies are exempt from applicable laws under Title 7 of the Civil Rights Act, but female members and prospective members are not likely to find that a reassuring response.

In preparing the response, the next question is, “What words would we like our key audiences to use about the club, our members, our procedures, etc., without delving into this specific incident?” (See the “good words” sidebar.)

Here are some examples of how the analysis and strategy works:

In the incident of the disgruntled female employee charging discrimination, the audiences include other employees, members’ families (particularly women), prospective members, community leaders and the public at large. Notice that governmental bodies are not an immediate audience because they do not have jurisdiction. The acknowledgment of the inquiry is “It’s not appropriate to discuss” the reason is “personnel matters” with the supporting rationale, “because we respect the privacy of all our employees,” and the recognition of other audiences adds, “The club is committed to providing the highest quality of service to our members and to providing opportunities for and fair treatment of our employees.” If true, proof points can be added, “Many of our employees have been with us for more than a decade,” or “The average tenure of our employees is 14 years.” The “good words” are: respect, privacy, committed, highest quality, opportunity and fair treatment.

You have to control the quote

In crisis communication, particularly in response to the initial inquiry, a common mistake is to provide too much information and give the reporter too many choices of what to quote. Thus, in the hypothetical example above, it’s explanatory to say “We’re exempt from EEOC regulations,” but since it’s doubtful that the key audiences are schooled on the regulations, what sounds reasonable to those who are knowledgeable sounds like a dodge to others.

Here’s how it works and sounds in actual practice:

Question: Jane Smith has filed charges that she was denied a promotion and then fired. She’s charging the club discriminated against her because she is female. What’s your response?

Acknowledgement: It’s not appropriate to discuss this because it’s a personnel matter.

Headline: We respect the privacy of all our employees.

Headline: We are committed to providing the highest quality of service to our members and to providing opportunities for and fair treatment of our employees.

Proof Points (if true): The average tenure of our employees is more than 14 years.

In violations of health department regulations, the department becomes an important audience. Standard phrases such as “We are fully cooperating with the inspectors,” and “We are committed to taking every step to maintain the highest quality of service.” And if true, “We have an excellent track record.” While local legal advice should inform these responses, many other industries report that commitment to compliance is very important to regulators.

Remember you may only have 30 minutes for an initial response The phone rings. A TV reporter calls to tell you the station has video on its website of one golf cart ramming another earlier in the afternoon on the sixth hole of the North Fairway. It appears one golfer has been knocked to the ground. You heard about this incident but were assured that it was minor. The reporter says he’s about to go on the air and would like to interview you via Skype.

How do you respond? Your instincts correctly tell you to take a moment to check out the video first, so you say, “I’ll get back to you in five minutes.” But, rather than commit to a phone call, let alone a live interview, you ask for his email or phone number so you can email or text back. You check the website of the local TV affiliate, and sure enough, you see the video and recognize the members. With the 10 p.m. news about to air, you text the reporter: “It would not be appropriate to speculate, but safety is one of our top priorities. We are looking into the incident.”

The reporter will almost certainly include your quote, maybe even reading the text from his cell phone, as part of the story. Since the scope of the incident is unclear as to whether authorities have been or will be called or whether there is potential liability, you do not commit to provide further information. We recommend preparing for and committing to this initial level of involvement as a way of getting a key message into a story that will proceed with you or without you. The goal is to shape perception. If a story gets picked up or goes into a second day, it will include the safety quote above.

Get the lawyers on board

Responses that sound overly legalistic can make things worse. Today, there is a premium on sounding conversational. Blogs and other social media create the perception that communication is person-to-person. In August, a blogger wrote about the trial of a drunk driver who hit and killed his sister. He blogged that he was astonished and infuriated that her insurance company, Progressive, had paid for the drunk driver’s defense. Progressive spotted the blog post and responded that they had “fulfilled their contractual obligations.”

Their response went viral, and Progressive was inundated by complaints and cancellations. 24 hours later, Progressive posted that the allegation was inaccurate, that the insurance company in question was actually Nationwide. But the damage had been done. They should have responded with, “We’re broken-hearted by your sister’s death. Please accept our deepest sympathies and our assurance that we’ll look into this right away and get you the facts. Until then, we’re all thinking of you.”

And who should take that phone call?

Clubs, with their history of volunteer leadership, seem to be all over the map about who speaks for the organization, particularly to the media. Today, an inappropriate quote can spread quickly and broadly and can live forever. Generally, two individuals should be designated as spokespersons for an organization, so that if one is out-of-pocket, there’s an alternate. The general manager and board chairperson seem to be the initial choices, but sometimes a board chair wishes not to be a spokesperson because of his or her place of employment. Clubs should designate spokespersons and require regular training and rehearsal. While it’s not rocket science, it is counterintuitive. It’s awfully easy to fall into a trap like this:

Question: We see containers of material that have hazmat symbols on them. What are you trying to cover up?

Answer: We’re not trying to cover up anything.

We’re not trying to cover up anything” becomes the quote, convincing people that you are.

Additional topics and questions

It’s virtually impossible to restrict material, particularly about a sensational topic, to members. A letter sent to club members admonishing them for scanty attire or untoward behavior is highly likely to be shared and end up on a blog or in the local paper. The rule of thumb is that anything with a ‘bad word’ will get passed on to someone else. As noted earlier, it may not be a traditional ‘leak.’ One person may send it to another with a note, “Wow, look at this!” and that starts the chain. Practically everyone owns a cell phone with recording capability; expect images and video to be circulated.

Which images are particularly likely to be passed from person-to-person? Property damage or injury from an errant golf ball, flames or smoke, rodents or insects in places they shouldn’t be, anything leaking, containers labeled hazardous material, people visibly drunk or wearing extremely bizarre clothing. There have been a number of incidents where an attendee at a private meeting audio or video recorded a speaker and shared the material, which eventually ended up in the media. It could easily happen at a non-club sponsored function, but the club name will be attached regardless.

One potential crisis involves accidents after a member has left club property attending a function where alcohol was consumed. Remember that most police cars and some officers are equipped with cameras which automatically video traffic stops or disturbances. That video is public record and will surface.

In conclusion, private clubs should recognize that the communication landscape has changed quickly and irrevocably, with significant implications for them. The established playbook and wisdom may provide some guidance, but clubs occupy a unique place, not only in the American economy and tradition, but also with regard to their legal and organizational status. Borrowing a phrase from another, equally venerated part of American life—camping and outdoor recreation: “The time to get prepared is before you embark on the journey.”


Merrie Spaeth is president of Spaeth Communications, Inc. Her unique background in media, government, politics, business and the entertainment industry includes serving as President Ronald Reagan’s director of media relations, book author and frequent commentator in the media. For more information, visit www.spaethcom.com. She can be reached

at [email protected].

Sidebar:

Spaeth Communications Insights: The Concept of “Good Words”

Strategic communications is built on a series of insights that provide a unique way to use communication as an influence tool.

Most people approach communication with the mindset, “What do we want to say? What do I think the questioner needs to know?” But how much does a listener remember of what you say: a lot or a little? Everyone recognizes it’s just a little. Thus, good communication isn’t always saying what you want to say; it’s understanding how to influence what a listener hears, believes and remembers.

People pick up and repeat each other’s words. Once you are attuned to this phenomenon, a club can avoid being misquoted in the media. But the bigger payoff comes in efforts to retain members, to recruit new members, and to reinforce a positive image and reputation in the community. Words can be divided into “good words,” those you want repeated, and “bad words,” those you don’t want repeated. Crises simply introduce a set of “bad words” into the conversation.

The most common mistake in all communication, especially when dealing with media, is to repeat and deny a negative word. It’s about how the listener hears the comment. The listener is likely to overlook the denial and hear the opposite of what the speaker is trying to say. The genre is named for a young woman who was caught in a tryst with a high profile, married man. She held a press conference and announced, “I am not a Bimbo,” thus causing everyone to think she was. Spaeth Communications publishes a monthly BIMBO Memo©, and while entertaining, the point is to show how what people hear influences what they think and what they do. Several years ago, the annual winner was the CEO of Bear Stearns who announced, “Bear Stearns does not have liquidity problems.” Within 48 hours, they were part of JPMorgan Chase. To sign up for the Bimbo Memo© visit www.spaethcom.com/bimbo-signup.php

The message follows the audience: to formulate an initial response, it is imperative to ask “Who’s the target audience?”

The role the speaker assigns himself influences how he or she communicates. When assigning themselves the role of answering a question, people tend to accept the parameters and topic of the question. Think of the encounter as an opportunity for a response, which is a much more flexible term. Responses all begin with an acknowledgment of hearing the other person. Any short, truthful acknowledgment phrase is accepted by the listener as a substitute and sets up the speaker’s response. For example, consider the questions: “Will you admit women members next year?” The framing of that question demands a ‘yes’ or ‘no.’ However, a club spokesperson may substitute phrases such as “let me put that in perspective” or “I can’t speculate.” After the acknowledgment, the speaker continues, “We’re fortunate to have very involved and committed members, and I can assure you that families find the club a wonderful place for entertainment, recreation and relaxation.” (For a wallet card with phrases that should help you with every question, contact us at [email protected], and we’ll send you a free one.)

An aspirational headline is a short sentence anchored by a key “good word.” If you can listen to a headline and repeat it, it’s the right length. If not, it’s too long. A headline is followed by a commitment to look into the situation and, if appropriate, a commitment to provide additional information at a later time.

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