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Making an Effective Apology


HIGH STAKES
 
THIS ISSUE: MAKING AN EFFECTIVE APOLOGY
  
From Toyota and Tiger Woods to Governor Mark Sanford and Goldman Sachs, the endless public apologies issued in the last year highlight the complex challenges awaiting companies and high-profile individuals that must make public amends for past missteps. Even under the toughest circumstances, those who successfully take this necessary first step to regain credibility and public trust often find each successive hurdle all the easier to clear.
  
In this issue, we outline the elements of an effective apology… Gain insight from apology expert Lauren Bloom…And look ahead to how all companies may soon be making “I’m sorry” a key component of litigation strategy.
         

  
Strategies: The subtleties of "I'm sorry"
  
When companies or high-profile individuals publically apologize, contrition is only one of many messages that must come across. The most effective apologies also underscore transparency, accountability, and sacrifice. 
  
In fact, the public apology has evolved into an art form. To craft a mea culpa that will be not only accepted, but respected by an increasingly multifaceted audience, there are five general rules to follow:
  
Be first. In a media environment where no secret stays under wraps for long, quickness is key. Assume control of the story and leave no room for public speculation. When a company or high-profile individual is the first to respond to controversy – or better yet, is the first to disclose a potentially embarrassing situation – they keep critics and detractors off-balance. The longer one waits, the greater the chances that others will tell your story but not in the way you want it told.
  
Be consistent. While reputational crises demand a team of communications professionals working behind the scenes, only trained spokespeople should be out front. Apology-by-committee leads to confusion and increases the likelihood of contradictory messages. And remember, while people don’t like to forgive corporations, they do forgive people. Make sure the spokespeople you select have human faces to connect with the audience.
  
Get all the bad news out at once. The apology doesn’t end the ordeal but it should serve as a turning point in the story. Make every effort to avoid the slow-drip of bad news that inevitably occurs when a company or high-profile individual attempts to keep certain details hidden. When an apology includes all the pertinent details upfront, the story no longer centers on getting to the bottom of what happened; it’s about what the bad actor is doing to rectify the situation.
  
Make a Sacrifice. Be it time, money, effort, or – in a corporate setting – a culpable individual, apologies are often enhanced when the public sees some form of sacrifice. Once a price has been paid for a mistake or some form of justice has been meted out – even if that justice is carried out by the wrongdoer himself – it is ready to move on.
  
Apologies are empty without action. The most effective public apologies demonstrate a commitment to making things right and a desire to back up that commitment with specific action. The most important objective during a crisis is to shift the theme from disaster to response – or from the problem to the solution. That’s how you begin to move forward again. Any apology, no matter how timely or sincere, is an empty and potentially counterproductive promise unless it is supported by real change.
  

 
Industry insight: Apology expert Lauren Bloom
  
Lauren Bloom is the founder and CEO of Elegant Solutions Consulting,
a firm dedicated to helping professionals, businesses, and association management executives build trust with their clients, customers, and members by "walking the ethics talk." She is a contributing columnist for TheStreet.com and the author of the book, The Art of the Apology: How to Apologize Effectively to Practically Anyone and the e-book Elegant Solutions: A Practical Guide to Resolving Dilemmas While Preserving Your Business Relationships.
  
Ms. Bloom maintains a must-read blog, http://www.thebusinessethicsblog.com/, which examines the full range of ethical and crisis issues facing companies today. An attorney, internationally recognized authority on professional ethics and governance, and one of the most sought-after apology experts in the world today, Ms. Bloom shared her insights on the elements of an effective public apology with High Stakes™.
  
With all of the high-profile apologies issued by politicians, athletes, and other celebrities in recent months, were there any that stood out to you as particularly effective? Why or why not?
  
Lauren Bloom: There certainly have been many public apologies in recent months, but I think that Hugh Grant’s performance on the Tonight Show after being caught soliciting a prostitute is still among the best I’ve seen. He was straightforward, funny, utterly charming, and he made no excuses. He didn’t get into all the sordid details – but he didn’t have to. I’m one of those people who believe that public figures have the same right to mess up their relationships as the rest of us, and that they have the right to keep certain specifics private, just like the rest of us.
  
His choice of venue was smart as well, because he was really apologizing to his fans. He knew he would get some tough questions, but not impossibly tough – and he knew he would be making his apology in front of people predisposed to forgive him.
  
Then, he vanished for a few months and gave the public time to forget the scandal.
Today, he’s still one of Hollywood’s most recognizable faces.
  
What are some of the key mistakes that companies and high-profile individuals most often make when issuing a public apology?
  
Lauren Bloom: There are a few that jump to mind. First, they wait too long. Once the story breaks, you need to be right on top of it. The same day is good, but before the story breaks is better. Individuals and companies that get ahead of the story are able to define it. If you wait too long, that opportunity vanishes, along with much of your credibility.
  
Second, apologies are often rendered meaningless because a company or individual is too concerned with legal liability. We’ve seen a number of big names in the financial sector apologize for their roles in the recent economic crisis and it’s great that they’ve come out and tried to demonstrate some form of accountability. But, their statements have been so heavily coached and calculated that the positive benefits have been very minimal in my opinion.
  
Third, the use of conditional language is something that has crept into many recent public apologies – and I think that’s a mistake. The words “if” and “but” should never be used. When someone says “If you’re offended, I apologize,” it puts the onus on the audience and makes the apology contingent when it should be absolute.
  
Finally, an apology has to be backed up with action. Effective apologies don’t only acknowledge past errors; they demonstrate a concerted effort to do better in the future. Look at Johnson & Johnson after the Tylenol tampering scare. That company not only took responsibility for the crisis, it created new, tamper-proof packaging that’s still used today. J&J raised the bar for safety – and you can’t do better than that.
  
How can a company best balance the need to apologize with the need to protect itself from legal liability when its actions have adversely affected a stakeholder population? Are there ways to articulate contrition without coming across as culpable?
  
Lauren Bloom: In a word, absolutely. The medical profession figured this out some time ago. Doctors and hospitals have realized that, if something went wrong on their watch, plaintiffs’ counsel will likely be able to prove it.  But they’ve also realized that, if a doctor has apologized and attempted to rectify the situation, juries are a lot less likely to find them at fault. So now we’re seeing doctors admit mistakes up front and begin working toward a non-litigation solution as soon as possible – and it’s working.
  
People don’t always sue for money. Oftentimes, they are angry or simply don’t know what went wrong and think litigation is the only way to get answers. When you apologize, you neutralize those motivations.
  
It’s always important to investigate and determine precisely what happened before issuing an apology. One of the greatest benefits of an “I’m sorry” strategy is that it positions companies well when they fight a lawsuit that is truly frivolous. Audiences have seen you take responsibility before and that builds credibility.
  
With “apology fatigue” beginning to set in amongst the general public, what can public figures do to foster the perception that they really mean what they say when issuing a public apology?
  
Lauren Bloom: I think the public is suffering from “spin fatigue,” not apology fatigue. They are tired of carefully crafted statements. That means public apologies need to be more immediate, more straightforward, and less lengthy. When President Obama was under fire for some of his early cabinet appointments, he came out and simply said, “I blew it.”
  
Those were three words we all understood, and we were done. Even those who don’t agree politically with the President rated him very well on that statement.
  
Contrast that with Tiger Woods. I’m one of the few that think his apology was pretty strong, but it went on way too long. After a while, the audience just stops listening. So why create added opportunities to make another misstep?
  
That said, even an imperfect apology is better than no apology at all. I find that people too often take too long to stand up, admit a mistake, and accept responsibility because they are trying to be perfect. What they don’t realize is that it’s much more important to be sincere and timely. If your apology is less than perfect, you can almost always clear it up later. The important thing is to get it done.
   

  
What's Next? Apologies keeping companies out of the courtroom
 
To those in Corporate America who cite increased legal and regulatory liabilities that accompany a public apology, accepting full responsibility for past mistakes is often thought a risk too big to take. Yet decades of best practices in crisis communication belie that perception, especially in light of recent hard data.
 
A few years back, a Time Magazine story detailed how promptly admitting and apologizing for mistakes actually limits legal liability. After the University of Michigan Health System implemented an apology policy, the number of lawsuits filed against it plummeted and average cost per suit dropped by 50 percent. Similar decreases have occurred across the health care industry at hospitals adopting a similar approach.
 
More recently, a study released by the Nottingham School of Economics found that, while only about 23 percent of consumers were willing to withdraw a complaint about a company if offered nominal cash compensation, 45 percent were willing to do so after an apology for the inciting incident. The co-author of the study, Dr. Johannes Abeler, even said that the study might “underestimate” the positive outcomes that can be achieved when companies fess up and take responsibility.
 
These studies clearly indicate that, when corporate and business leaders apologize, the core message that comes across is “We hear you. We understand your anger. We have made mistakes – but rest assured, we’ve learned from them.”
 
That’s a powerful statement that can pay big bottom-line dividends.
 

  
 This month's top posts on Levick's...
  
 
 
With public perceptions impacting corporate bottom lines as never before, Sara Brown Meehan examines Goldman Sachs' decision to cite “adverse publicity” as an important “Risk Factor” in its 2010 Annual Report.
 
With eight percent of American companies reporting that their online reputations were damaged by employees’ social media activity in 2009, Dallas Lawrence highlights six companies with effective employee social media policies in place and the lessons they teach.
  
Bulletproof’s Vlog interview series continues as Michael Robinson interviews Steptoe & Johnson’s Lucinda Low on the global compliance challenges facing companies in an era of stepped up Foreign Corrupt Practices Act (FCPA) enforcement.
 
As companies begin to utilize the social media space in record numbers, Dallas Lawrence outlines the six most important questions every company needs to ask before getting started.
  
As digital media continue to play an increasingly significant role in reputation management, Dallas Lawrence focuses on six ways even small companies can prepare to respond to an online crisis.
 

 
Making Your Point
 
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Stop the Presses: The Crisis and Litigation PR Desk Reference
– now in its second edition – is a survival manual for corporate leaders, board members, lawyers, and communications specialists. This book provides the dos and don’ts of crisis planning and communications and articulates the essential strategic guidelines for navigating myriad bet-the-company issues. 
Order your copy today.
  
 
  


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