THE EXPERTS' ADVICE

Three experts take a look at this month's case study

Three experts take a look at this month's case study

'WHAT THE hell is going on!" The tone betrays the panic that has taken hold at Delalley.

People find strange enjoyment in seeing well-heeled executives of sophisticated PLCs caught like rabbits in the headlights when this type of popular story breaks. The absence of either a communications expert or a communications plan at a PLC such as this beggars belief. If Delalley has engaged in contingency planning in anticipation of this type of crisis, it doesn't show here.

The scenario unleashes several issues which need tackling, of which the communications imperative is most pressing. An accusation has been made and - failing clarification from the company - shareholders, customers and staff are all too likely to believe it. The share price will be the first casualty. Curtin could be the next.

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A first step for the communications professional is to ensure media calls are managed properly, through a well-manned media centre, with an interim spokesperson until more information is at hand. On no account should Curtin or other staff allow themselves to be "door-stepped" as he was this morning. Curtin doesn't know what's true and what isn't.

With the media pack baying for blood, a holding statement that Delalley is investigating the allegations made, but was unaware of any irregularities, should be issued sooner rather than later. A "warts and all" Q&A document needs constant updating in the background and one-to-one assurances to media
that they will revert when more information is forthcoming.

Curtin needs to come clean about his own involvement in supplier-organised trips, so he can retain the role of spokesman with some credibility. The malaise here clearly doesn't stop at the door of purchasing. O'Neill's assertion that he didn't think to advise of his media call lacks credibility.
Staff need to be briefed in sync with other stakeholders. The need to be seen to act is critical. As soon as evidence comes to light, an immediate suspension of O'Neill is a must. So, too, are rapid procedures governing tendering and the outlawing of inducements. - Conor Horgan

Conor Horgan is a director of Cullen Communications

CURTIN'S IN the wrong frame of mind, for starters. He thinks "the biggest issue is how to handle the media". If he's getting calls from journalists, think horse and stable door. It's out there and he's way behind, in terms of information. In fact, the biggest issue facing him is how to get a grip of a situation he clearly has man managed badly for some time. His survival in his job requires that he performs a whole lot better than he has been performing up to now.

The temptation, in a crisis like this, is to start "doing PR". However, the only immediate communication with media should indicate that allegations about bribery are being rigorously investigated. Full stop.

The statement should not, however, include any reference to "bribery" as that will allow media to use it as a direct quote; instead it should simply refer to an investigation. He should only promise further information when Delalley has it. That statement must also be circulated immediately within the company, so that staff don't get their information from media, but it should not be added to in the internal statement. Curtin has to realise that anything circulated within the company will leak.

The moment O'Neill gets off the plane, he must be instructed to get on the next plane back and a seat must already await him, booked from Dublin. Clearly Risay has a whistle-blower. If the PR person within Delalley is any good, they should be able to find out from media the details of the allegations. Until they know the totality of the accusations, they cannot begin to effectively interrogate O'Neill.

Curtin should instruct his people to produce every scrap of paper from the procurement process and the contracts signed with Risay and have his legal team advise on the implications and possible course of action. The one thing he doesn't do is get chatty with the Risay chief executive. If legal proceedings ensue between the two companies or criminal charges are brought by the state, any communication between him and Hanly will be subject to legal discovery and may form part of a subsequent case. The key repositioning that must be achieved, once Delalley moves from lock-down to talking to media, is that the company moves from The Investigated into The Investigator.

Delalley must be seen as ruthlessly forensic in its investigation of the allegations and of the processes that may have contributed to it. Longer term, Delalley must become the case study in excellence, when it comes to addressing an issue of high level corruption. - Anton Savage

Anton Savage managing director of Communications Clinic

LIKE MANY crisis situations, Curtin is in the midst of a very fluid situation and there are lots of allegations and innuendo. On the face of it not too many facts are on the table and that has to guide the communications response to the crisis. There are firstly some practical steps which need to be taken. Dellalley need to function normally as a business as this issue is handled. A crisis team needs to be assembled and they must be separate from those tasked with managing the business on a day-to-day basis.

Within that crisis team a spokesperson has to be agreed. As a plc facing a potential criminal issue, other advisors need to be informed and brought into the crisis team. Advisors in this case may include
legal and brokers to the company.

Having advised Delalley on these crucial initial first steps the next imperative is to get them working on establishing the facts not the inferences of the situation. As quickly as possibly a holding position needs to be developed. This should outline the minimal detail of the situation as they are known and an assurance that all correct action will be taken. It would be useful to also outline when the next communication with the media will take place.

The company then needs to establish the nature of the relationship with Risay and whether there is factual evidence of inducements being paid. The circumstances surrounding the awarding of the contract on a substandard product seems suspect but the facts have to be ascertained.

All media calls should be logged and details of the queries taken. It would be worthwhile developing a Q&A document which can be used by spokespersons in any potential interviews or media briefings. Equally, O'Neill needs to be met at that flight as journalists may be there waiting for him. Delalley must control the information flow from the company through one spokesperson.

There may be media queries relating to documentary evidence of payments to suppliers and allegations relating to the purchasing committee, very little can be said about these until the facts are know. Media queries need to be dealt with, but little more can be said until the facts are known. This why it is vitally important to inform media as to when the next statement or briefing will take place.

As the facts of the situation become clearer and depending on what legal or regulatory authorities are involved decisions will be made on the next statement to be issued. It may in fact be worthwhile for Curtin to face the media in a briefing as the company is seen to be open and dealing with the situation quickly and decisively.

If he is well briefed and prepared he can actually win support for Delalley in demonstrating that the management team is in control. Openness and swift action are essential to restore and maintain confidence. Having weathered the initial storm the communications agenda must be to keep the media
and other stakeholders informed of developments. - Mark Cahalane

Mark Cahalane is managing director of Edelman Ireland and current chairman of the Public Relations Consultants Association