INDIANAPOLIS – The words will echo through professional communication history for eons: “In the process of being cautious, we allowed the jubilation to go on longer than it should have.” These words were said by an emotional Ben Hatfield, CEO of the International Coal Group, when he explained why hours elapsed before terribly incorrect information was corrected about the fate of 12 trapped coal miners in Virginia.

Major urban newspapers and media from New York to California fell prey to what was later described as a “miscommunication” and stamped blaring headlines that nearly leaped off front pages: “They’re alive!” In a digital world where scant seconds pass before information reaches around the globe, how could this happen?

“When you have the governor of the state giving you the thumb’s up, a Congresswoman talking about this on air, hundreds of relatives and family members jubilant – some of whom received calls from mining officials – it’s tough to ignore what they’re saying,” said Anderson Cooper, a CNN reporter on the scene.

The magnitude of this “miscommunication” should make every technology executive sit up and take notice. To one degree or another, this could happen to you. The tech muscle that enables instantaneous global information can work just as hard against you as it can for you.

In more than a quarter of a century of marketing and PR consulting, this columnist has seen unprepared companies get devastated time and time again by an outright lack of crisis preparation, poor execution and sloppy mistakes. Once during a meeting in Los Angeles, a corporate CEO held up the business card of his lawyer and boasted: “Here’s my crisis communication plan.”

Months later, with his personal reputation in ruins, the CEO watched helplessly as millions drained in revenue from poorly executed programs.

With the advent of blogs, easy-to-use Web authoring software and rogue e-mails, companies and tech executives represent soft targets for highly motivated and disgruntled employees, consumers and self-appointed defenders. Companies can spend multiple thousands of dollars on search engine marketing campaigns only to find a rogue blog authored by an anonymous teenager showing up directly ahead of their hard-won Google position.

Savvy IT professionals now routinely reserve URLs with the suffix “sucks” or “sux” (and other less-flattering terminology) together with their trademarked company name or NYSE designation. If they don’t, they know a disgruntled consumer could – or probably will – and a rogue Web site (often mirroring corporate logos and branding colors) can pop up literally overnight.

Consider the plight of Guidant, a medical device giant currently headquartered here in Hoosierland. As most ePrairie readers know, Johnson & Johnson recently announced plans to acquire Guidant, whose public returns and capacity were considered quite handsome. Around the middle of 2005, bad news began swirling.

Some implanted Guidant defibrillators started malfunctioning and a recall was announced. Guidant’s stock price plummeted and the previously airtight Johnson & Johnson deal looked seriously like it might fall apart. In what is today a fairly murky environment, Guidant shareholders will vote later this month on a Johnson & Johnson deal that’s worth billions less than the initial proposed compact.

Perhaps most amazing is the fact that this deal has survived at all. As the saying goes: “You beat bad information with good information.” Guidant has worked at that in spades. For example, GuidiantFacts.com is loaded with ironclad facts, videos and testimonials about Guidant products. Portions of the site are regularly linked by bloggers and online writers across the nation.

Terrible media coverage isn’t Guidant’s only concern. A quick online search with a few simple phrases (such as Guidant + crisis + law firms) will instantaneously yield dozens of pages of personal injury lawyers and tort firms with pop-up data forms to collect information about your possible case.

Nonetheless, Guidant determinedly presses on. The simple fact that corporate suitors continue to line up is eloquent testimony to Guidant’s prowess and proven reputation. What should be evident here is that Guidant’s reputation didn’t just emerge overnight. Like its main suitor (which basically wrote the book on life sciences crisis communication with the Tylenol near disaster), Guidant spent years positively managing its reputation before a crisis hit.

So, in the event of a crisis, what can your company do to avoid the “miscommunication hall of fame” and potential extinction? Carved from personal experience with companies big and small, here are some suggestions:

Have a crisis team and process in place long before a crisis hits. The CEO waving the attorney’s business card wasn’t too far off. Every crisis team must have legal representation. Still, an important philosophical issue must be settled in advance: lawyers are generally trained to limit potential liability exposure. During a crisis, quick and accurate information (whether or not it admits blame or shortcomings) is required if a company is going to preserve its reputation and market position.

Consider the fact that Johnson & Johnson was advised by some against spending millions in recalling potentially poisonous Tylenol tablets. They stuck to their credo, which required them to act in the best interest of their consumers, and Johnson & Johnson was richly rewarded by a nationwide surge in renewed consumer trust.

Pay careful attention to your reputation. Apart from Donald Trump wannabes, most Americans have a modest streak. “We’ll let our actions speak for us,” they may say. In today’s cluttered communication- and often rogue-driven environment, that’s not enough. Companies have to appropriately and proactively tell their story in a proper venue (starting with their own Web site).

It’s not just about the bottom line. Companies too often neglect helping in their communities and being seen doing so. Companies that don’t give back to their communities (especially when research clearly shows that there exists an American expectation for them to provide high-profile pro-bono support) will often find their reputation waning when a crisis hits.

Bad news is just as important as good news. In theory, every executive prefers to read or hear good news about his or her company. When companies don’t tell the full story, though, their credibility may go begging when the really bad news hits. Ask virtually any media professional and he or she will tell you that the benefit of the doubt is most often given to the companies that have earned it in advance.

Confirm, confirm and confirm, and then get it out fast. In today’s media environment, crisis deadlines are immediate. They’re not hours away. As this crisis with the miners proved, inaccurate information can be devastating. Even retired CBS anchor Dan Rather agonized that he may have “committed a blunder beyond comprehension and beyond forgiving” when he prematurely announced the death of President John Kennedy without confirmation in 1963.

Advance preparation, honest information and lightning-fast execution are all requirements for surviving crisis in the 21st century.

Michael Snyder is principal of The MEK Group, a marketing and business development consulting firm that provides communications-driven strategies to increase market share, enhance productivity and build distinctive brand awareness. Snyder can be reached at msnyder@themekgroup.com.
Click here for Snyder’s full biography.