E D E L M A N E N E R G Y C A PA B I L I T I E SThe Changing Landscape

Crisis Communicationin a

Digital World

“A lie can travel halfway around the world while the truth is still putting on its shoes.”

—Mark Twain

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

—Warren Buffett

“Traditional notions of ‘crisis management’ have turned stale and archaic.”

—Daniel Diermeier, Kellogg School of Business

New Realities

THE GLOBALIZATION OF EVENTS

ADAPT TO THE NEW MODEL PREPARE TO ENGAGE INCREASED

SCRUTINY

Crisis preparedness requires owning and driving your own content.

Likelihood that a company will face a game-changing crisis has risen by over 400% in the last decade.

Containment is no longer possible.

There are no safe havens from digitally empowered agendas and social exposure tools.

The Changing Landscape

Customers

Competitors

Local Community

NGOs

Vendors

Financial

Analysts

Regulatory

Bodies

Wall Street

Association

Media/Press

Consumers

Investors

Employees

Legislature

Search & Content

MAINSTREAM HYBRID

SOCIALOWNED

The Media Cloverleaf

In a Crisis, Social Sets the Pace

Important Voices During Crisis

Skepticism Requires Repetition

When a company is distrusted When a company is trusted

9% 14%

59% will believenegative information

after hearing it 1-2 times

Think about a company that you do not trust. How many times would you need to be exposed to (C83. positive information; C84. negative information) about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in the U.S.Think about a company that you trust. How many times would you need to be exposed to (C85. negative information; C86. positive information) about that company to believe the information is likely to be true? Please give me a number. Informed publics ages 25-64 in the U.S.

Trust protects reputation

will believe positive information after hearing it 1-2 times

will believe negative information after hearing it 1-2 times

52%will believe

positive information after hearing it 1-2 times

9 © Edelman, 2012. All rights reserved.

2011 Informed Public2012 Informed Public

29%

22%

8%

13%

32%

26%

14% 16%

10%+18%+

75%+ 23%+

Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Top Box - % Trust A Great Deal) Informed Publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE)

TRUST IN INFORMATION SOURCES

ONLINE MULTIPLE SOURCESTRADITIONAL SOCIAL MEDIA CORPORATE

Diversification of Media

Trust Can Be Fleeting

If your personal information at your hospital was accessed without your permission, how likely would you be to

switch to a different provider or stop using their services entirely?

75% of patients would leave and not come back to your hospital

Five Steps to Managing Issues Across Digital Channels

Maggie Farley, EVP Director of Health Issues & Gigi Peterkin VP, Edelman Health

#1. Listen: Around the Clock

Proactively monitor digital channelsPrioritize issues

#2. Implement your Voice: SEO

Inject your voice into the conversation and provide facts.

#3. Be Prepared: Create Content

What is the best way to frame issues and discussions?

Which are the most effective channels?

Brand presence must be in place well in advance of a crisis

#4. Drive Traffic: Dark Site

A dark site can quickly neutralize or manage a crisis, moving the issue away from your main site allowing normal activity to carry on.

#5. Build Relationships: Advocates• Outsiders generally are more credible than

your spokespeople.