Since 1986 we have worked with major corporate clients to explore, understand and prepare for the wide range of risks that threaten organisations. We build plans, procedures and the personal competence of people who are expected to steer organisations out of trouble.

Monday, July 11, 2011

A hacking good crisis

Maybe more of a Sun headline than that of a News of the World (NotW) lead, but after 168 years of exposures what more fitting end could there be for a paper dedicated to making the news? But is it the end? The Murdoch business machine is not going to easily let the circulation figures for NotW be lost and the rumours of a Sunday Sun seem to indicate the direction they are thinking of taking.

So post crisis planning and turnaround may already be well advanced and perhaps the only question left to answer is how to long to mourn the News of the World before launching its successor.

But crises are not like that and News Corp are starting to show all the indications of an organisation stumbling around seeking a way out. They played what they believed was their strongest card in shutting the news paper and hoping the high profile death would cauterize the wound and stem the impact. Now they have the chairman thrust into the limelight and questions are being asked over how far the contagion can spread.

Meanwhile what would the leader columns add as the obituary? News Corp seems not to have anything remotely in place to deal with crisis; instead it reacted like a wounded animal aiming to escape at all costs. First call the paper "toxic", then close it down. Over 200 disgruntled ex employees - your best or worst ambassadors - on the streets of Wapping. And with big mouths. Not the best idea.

Where was the horizon scanning and data collection? This is not the first time the paper had issues with its collection of material yet there seems to have been nothing in place to deal with an event which is having a critical impact on the bottom line. With the arrests in 2006 did they really believe they had got away with it, surely with their knowledge and reliance on investigative journalism they would have realised the chances of covering up were slim. Communications in the digital age are not secure and the history created through emails and payment systems remain for long periods as records for regulators to read at their leisure to decide if they are indicators of former crimes.

As the net widens how many more organisations will be dragged into this story, could NotW be the only paper to use hacking? Has anyone else paid the police and what other politician has employed or worked with individuals of questionable ethics? But that’s the nature of crises. Reputation Management costs and it pays to do the analysis and get the messaging right.

Finally a couple quotes which may be used in evidence:

We will continue to engage constructively with the regulatory process.
(Quote: News Corp press release 30 June 2011 in response to the BSkyB competition commission decision)

The paper made statements to Parliament without being in the full possession of the facts. This was wrong.
(Quote: James Murdoch announcing the last issue of the News of the World in the press statement

"Fair & Balanced" a trademarked slogan used by Fox News Channel, a subsidiary of News Corporation

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