In March’s Reputation Report, our team of Reputation Management experts share their insight on the month’s biggest news stories. This month we are looking at Heathrow’s communications strategy in response to their widely publicised power outage. We will also be analysing the merits of Sir Jim Ratcliffe’s recent series of interviews, as well as the Signal mishap that has shaken trust in US politics and the Republican leadership.
Heathrow’s shutdown and the challenges with a rigid crisis plan:
Mimi Brown, Head of Corporate
On the 21st March, 1350 flights were cancelled as Heathrow shut down for 24 hours after a power substation fire, leaving airlines on the hook for up to £70m and the threat of legal action looming.
Acting swiftly, The National Grid got on the front foot with their communications and clarified that the airport still had ‘enough power’ to run. Now the crisis response strategy of the airport is under scrutiny as being out of proportion. A robust crisis strategy must be agile – scaling up or scaling back if the situation allows.
Safety first? Absolutely, and we’re (thankfully) not looking at a very different sort of crisis had the airport remained open and anyone had been put at risk.
That said, the fact that Heathrow CEO Thomas Woldbye slept through it and missed urgent calls (as reported following an interview with the FT) will undoubtedly stick in the minds of the public as a bit of a faux pas.
Gold Command crisis response was in action, and Woldbye is entirely right that a robust crisis strategy doesn’t hinge on the CEO, but as it emerges that the response was seemingly disproportionate to the issue, it begs the question of how agile Heathrow’s Gold Command and technology actually is.
For a cool-headed leader with a capable COO, some sleep ahead of a few intense days dealing with the fallout from a crisis certainly isn’t a bad idea, but it’s not a great look as these headlines roll in.
It’s clear that Europe’s busiest airport needs an overhaul. With the media drawing comparison to nearby data centres that remained up and running without interruption, it would be wise for Heathrow’ communications strategy to swiftly turn to next steps; reassuring investors, airlines, passengers – and the UK government – that Heathrow’s technology systems are fit for purpose – and the future. It seems that those next steps will be in the form of requests for huge investment sums.
Sir Jim Ratcliffe: punchy, proactive but was it effective?:
Tim Jotischky, Divisional MD, Reputation
Sir Jim Ratcliffe’s first year as minority owner of Manchester United was a disaster: a manager backed, then sacked; a sporting director who lasted just five months; an under-performing team; and a slew of unpopular cost-cutting measures.
But unlike the hated Glazer family, who never speak publicly, Ratcliffe leaned into the anniversary with a series of high-profile media interviews and the announcement of a new £2bn stadium.
It was a high-risk strategy and Ratcliffe didn’t hold back, lambasting overpaid players and the Club’s over-spending. But he also laid out a vision for the future, combining success on the pitch with commercial riches off it.
Words are cheap and Ratcliffe will be judged by results, but a pro-active communications strategy is a point of difference and a sign of self-confidence. Part one was executed effectively.
The stadium project will be a political minefield as it involves public money. Ratcliffe’s primary audience is the disillusioned fan base, but he will also need to appeal to broader stakeholders in government and beyond.
That will require a deft touch. Ratcliffe has shown he can be blunt and tell home truths; he will also need to be diplomatic and win hearts and minds, which requires a subtler approach.
“Signalgate” and the lessons for business leaders:
Neil McLeod, Divisional MD, Corporate
“Signalgate” is a global horror show for Donald Trump’s White House, a blunder which has worsened with every attempt to deflect and move on, bringing outrage and satire almost in equal measure.
Given the subject matter, to term it as a communications disaster – Trump called it a “glitch” – really doesn’t do it justice. But it certainly serves as a hard lesson to all organisations and businesses in how not to manage a crisis.
The first point surrounds the initial error to include The Atlantic Editor in Chief Jeffrey Goldberg onto the Signal chat – and the use of what is a commercial platform to discuss military matters. This itself poses serious questions over capability and decision making.
The “boys with toys” group’s use of fire and high-five emojis in relation to a bombing mission is unpalatable to most. It is a reminder that organisations should always view internal communications with an external lens – what would this look like if it ended up outside of the business?
But the key issue is the refusal to accept responsibility and apologise – key moments in trying to emerge from a crisis. Instead, there is doubling down, there is deflection, there is the chilling attempt to portray seasoned journalist Goldberg (and indeed other reporters) as the bad guy.
Worst still is the emergence of inconsistencies in the stories and explanations given. This takes us back to a core crisis management lesson to which White House administrations of the past, and many business leaders, will attest– the cover-up is always worse than the crime.
Using his Apprentice line of “You’re Fired” to remove those at fault would be one option open to the President. It may not happen – but given he has already fired and paid-off more than 200 White House officials since taking office, it is certainly a path he is familiar with.