Interview from last week aired by EO TV (Entrepreneurs' Organization)
Or link here
Monday, July 12, 2010
There is no such thing as bad publicity...
...except your own obituary - according to the Irish author & dramatist Brendan Behan.
It might seem contradictory that any kind of success might follow from scandal: but scandal attracts attention, and this attention (whether gossip or bad press or any other kind) is sometimes the beginning of notoriety and/or other successes. Today, the often-used cynical phrase "no such thing as bad publicity" is indicative of the extent to which "success by scandal" is a part of modern culture.
BP used to be British Petroleum. Then it reinvented itself as Beyond Petroleum, extending the enterprise beyond black gold and becoming a major investor in new energy technologies.
All that counts for little now that the full extent of the Deepwater Horizon catastrophe is becoming clear. BP is now the acronym for Bad Publicity.
No doubt, like in many crisis situations, within the first few frightening hours, BP's lawyers and public relations teams presented to BP's board their views on how the company should respond. It's clear that the lawyers won. "Shift the blame onto someone else." And that is indeed what BP did in the immediate aftermath of the story breaking. BP blamed their contractors.
So, the continued interest/disgust in BP, their actions and their disaster-prone crisis communications begs the question, when does bad publicity become detrimental?
The cost so far:
* BP has agreed to create a $20 billion fund to compensate those affected
* An alleged $50 million on a television advertising campaign
* About $1 billion off their brand value according to some studies
* More than $100 billion in market value
* Stock is worth less than half the $60 or so it was selling for on the day of the explosion
* Oh, and who knows what on-the ground cleanup and PR support is costing?
Three years after the cleanup operation has completed its work - what will be the perception of BP?
When will BP (or will it ever) break even from the costs occurred and the missed opportunity cost? We will probably never know.
Maybe there is such a thing as bad publicity or at least a cost for bad publicity.
How do you value bad publicity?
It might seem contradictory that any kind of success might follow from scandal: but scandal attracts attention, and this attention (whether gossip or bad press or any other kind) is sometimes the beginning of notoriety and/or other successes. Today, the often-used cynical phrase "no such thing as bad publicity" is indicative of the extent to which "success by scandal" is a part of modern culture.
BP used to be British Petroleum. Then it reinvented itself as Beyond Petroleum, extending the enterprise beyond black gold and becoming a major investor in new energy technologies.
All that counts for little now that the full extent of the Deepwater Horizon catastrophe is becoming clear. BP is now the acronym for Bad Publicity.
No doubt, like in many crisis situations, within the first few frightening hours, BP's lawyers and public relations teams presented to BP's board their views on how the company should respond. It's clear that the lawyers won. "Shift the blame onto someone else." And that is indeed what BP did in the immediate aftermath of the story breaking. BP blamed their contractors.
So, the continued interest/disgust in BP, their actions and their disaster-prone crisis communications begs the question, when does bad publicity become detrimental?
The cost so far:
* BP has agreed to create a $20 billion fund to compensate those affected
* An alleged $50 million on a television advertising campaign
* About $1 billion off their brand value according to some studies
* More than $100 billion in market value
* Stock is worth less than half the $60 or so it was selling for on the day of the explosion
* Oh, and who knows what on-the ground cleanup and PR support is costing?
Three years after the cleanup operation has completed its work - what will be the perception of BP?
When will BP (or will it ever) break even from the costs occurred and the missed opportunity cost? We will probably never know.
Maybe there is such a thing as bad publicity or at least a cost for bad publicity.
How do you value bad publicity?
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