Six More Things About the Boeing 737 MAX Crisis

“The crisis drags on” is about the last thing an organization wants to hear. But that is what’s happening at one of the world’s most venerable companies. Unfortunately, the manner in which Boeing is communicating – or not – has become its own news story.

The all-too-familiar drip, drip, drip of bad news is a classic “Don’t” in crisis circles. New and shocking revelations in the past few days have added to the tragic mess, which started last October with the crash of Lion Air 610. Boeing’s decision to base a critical flight system on a single sensor and a report that defective parts were installed in hundreds of planes are keeping the still unfolding story front-and-center in the minds of investors, the FAA and sister agencies around the world, current and future aircraft customers, and the flying public.

Apologies go hand-in-hand with crises and, while there have been hundreds of articles, reports and analyses on the 737 MAX crashes, I have a few additional observations to share on how Boeing is saying sorry using my 6 A’s model:

Acknowledging something has happened. It was impossible to deny the loss of 346 lives in two crashes. But in the days following the tragedies, Boeing claimed the 737Max was safe and the MCAS (the Maneuvering Characteristics Augmentation System, which caused the planes to lose control), was "certified." This creates an astounding dissonance: While the fleet is stilled grounded, they're continuing to work furiously on an MCAS software fix. It took weeks for Boeing to say, “We own it.” Score: 5/10

Authentic expression of regret. Initial statements and testimony placed some blame on pilot training. Then CEO Denis Muilenburg said weeks later, "We at Boeing are sorry for the lives lost in the recent 737 MAX accidents. These tragedies continue to weigh heavily on our hearts and minds, and we extend our sympathies to the loved ones of the passengers and crew on board Lion Air Flight 610 and Ethiopian Airlines Flight 302." My friend Helio Fred Garcia, president of Logos Consulting Group, said: "Trust didn't fall because two of its plane crashes. Trust fell because they were seen to be indifferent." Score: 5/10

Appropriate tone and language. As pointed out above, this is the tale of two phases, two apologies. Following the accidents, the tone-deafness was jarring. The later statement and corporate video seemed to make up some ground but it was sprinkled with jargon like “MCAS” and “erroneous angle of attack information.” And Mr. Muilenburg fell into the “me” trap when he said, “I cannot remember a more heart wrenching time in my career.” Score: 6/10

Acceptable venue. One gets the sense that Boeing is being dragged into its apologies and has failed to rapidly, proactively face its publics. While public statements and videos are becoming normalized, they fail to come face-to-face with those affected. It reinforces a wall of separation and does not allow interaction or engagement. Score: 6/10

Acting in the right timeframe. The video apology came 26 days after the second crash – Ethiopian Airlines. Enough said. Score: 6/10

Announcing next steps. Boeing said initially that they were “humbled” and “learning.” It was honest but not terribly reassuring or instructional. Saying they will “deliver airplanes to airline customers and to the flying public that are safe to fly” is like Starbucks saying they’ll serve coffee that’s safe to drink. Boeing finally came around and said they "will ensure accidents like that of Lion Air Flight 610 and Ethiopian Airlines Flight 302 never happen again… top engineers and technical experts [are] working tirelessly" and that they will give pilots "training and additional educational materials." Score: 6/10

The 6 A’s rubric weights the elements differently. So, my overall score – and you may certainly have a different evaluation – works out to 55/100. An “F.”

Apologies – good ones, bad ones – have real consequences. Boeing’s behaviors have broken trusts, damaged its reputation, slowed sales, harmed valuation, and created fear. But I know they'll make it back. They’re fundamentally, historically a good company making good products and time will muffle the damage. But it’s been an unnecessary, destructive, lengthy episode. I hope something instructive can come from all the loss.

Don’t Tell Me Your Troubles (in a Crisis)

Crises place unique pressures on leadership and management because, by definition, their courses are unpredictable. Yet, many crises have been well studied and a list of core communication principles has been established.

Of course, we should expect mistakes to be made. Too few scenarios are contemplated and too little rehearsal is conducted. And we will continue to see examples of absent, late or tone-deaf responses because of miscalculation, flawed judgment or bad advice.

So, it’s a little difficult to understand what motivated Binghamton University president Harvey G. Stenger to say the tragic murders of two students were “definitely the hardest thing that I’ve been through since I’ve been here.” Could The New York Times have taken him out of context? Was he misquoted? I like to give the benefit of the doubt whenever possible but this does not seem like one of those cases.

This self-centered comment was reminiscent of former BP chief Tony Hayward infamous “I want my life back” statement during the throws of the Deep Water Horizon oil well disaster. The public was astounded and appalled by the lack of empathy.

There were other “Crisis 101” failures at Binghamton, including delays in sending out information and updates. And after one of the murder suspects was arrested, President Stenger was quoted in the Times saying, “You kind of learn on the fly on these things.” This might have been another true statement but not a wise one. He should have stuck with the second half of the statement when he added, “We want to make sure that if anything could have been done better, especially in the communication with our community, that we learn from that.”

In all the crisis manuals and case studies I’ve seen, this gets the least – if any – attention: Know the difference between openness and honesty. You should be honest always but the degree of openness is variable (based on confidentiality, security interests, etc.). Sure, crises are hard on leaders and there is a certain “seat of the pants” aspect to managing them. But keep those thoughts to yourself. Leaders must find a ways to show their concern, their compassion and their control of the response effort without seeking sympathy.

Crisis leaders create problems when they place themselves at the center of the response instead of those affected. They might honestly express their feelings but there are times when such openness is counterproductive.

I invite you to follow me here and on Twitter @pauloestreicher.

A Message About Messages

This article also appears in Medical Marketing & Media.

Dr. Marijn Dekkers, CEO of Bayer, feels underappreciated. He has some good reason. At Bayer’s Spring Financial News Conference (on Feb. 28^th), he said, "Almost every day, newspapers publish something about cancer – statistics, the best doctors, the best hospitals, the best treatments." Yet, they don’t discuss, "the molecule, the invention or the scientist behind the invention without which the doctors, hospitals and treatments could not help patients."

People go into a hospital, they interact with health care providers but what they see mostly from the pharmaceutical industry is a little, unimpressive looking pill. This isn’t new. Low trust and reputation scores have been a fact of life for decades now. The anger over high prices and low transparency has not been offset by improved health outcomes or the positive impact on jobs and the economy. Dr. Dekkers said, "I feel that this lack of appreciation for our ideas and innovations has to change." 

More credit ought to be given to the investments and inventions made by the biopharmaceutical sector – no question. But placing responsibility on the media for a perceived lack of fairness seems misplaced. The health care industry is attempting to meet the needs of its customers and so is the news media. In most cases, they’re selling a story with a point of view because that’s what the market is telling them to do. And they’re constrained further by the revolution in social media. There are fewer and fewer “real” journalists, professionals with credentials who have an understanding of the issues and the science. How many health and science sections in major daily newspapers have survived? Can you get beyond one hand? 

Today’s reality is health care is covered largely in the business sections and the industry feeds right into it. The first two-thirds of Dr. Dekkers’ talk was focused on his company’s impressive financial results. It was, after all, a financial news conference. But if getting a fair shake by the press was of such concern, perhaps he should have allowed his CFO, who was the next speaker anyway, to discuss all the numbers.

Next time, Dr. Dekkers may wish to lead off with and stick to some of his briefly mentioned closing messages – Bayer’s commitments to sustainability, ethics, access, value and serving the needs of the patient community. As messengers, as leaders, the tone should be set using the words, images and emotions that best communicate the industry’s contributions, not just the spreadsheets and stock charts. Tell the audiences what’s in it for them.

But there’s still a big missing piece to this communication puzzle. Dr. Dekkers pointed out, “Even the most outstanding ideas and scientific breakthroughs have no chance if people do not accept, appreciate and support them. All too often, people are afraid of – or uneasy about – new ideas, inventions, processes or products.” Indeed, the industry’s stakeholders must have a higher level of health and science literacy. Dropping information – even crucial or compelling data – onto the heads of an unprepared public, or expecting a response to another “call to action,” is unproductive and unrealistic. A massive, sustained education effort is needed to help turn the ship of disbelief and discontent.

Of course, a more knowledgeable public will not guarantee an enhanced corporate reputation. It must be earned. It will take time and the self-inflicted wounds – the reputation-killing missteps and misdeeds – need to stop or at least be minimized. Our job as strategic communicators is to help find common ground and common language, increase mutual understanding and secure the win-wins we know are out there.

Between blog posts, I invite you to follow me on Twitter @pauloestreicher.

Redrawing the Boundaries Weakens Crisis Response

This article also appears in odwyerpr.com.

Why the Weiner Response is Failing

Unfortunately, we have another soon-to-be-classic example of what not to do in a crisis situation. When reports surfaced that lewd photos from Rep. Anthony Weiner’s Twitter account were sent to a Seattle woman, the congressman claimed his account was hacked. High profile hacking was in the news – Sony, Citi, RSA, Lockheed-Martin – so what better way to build a credible sounding story? Thus, the first crisis boundary was built.

That dike was breached quickly when questions arose: If such a violation occurred, then why didn’t he call the Capitol Police? Why couldn’t he say with “certitude” that the pictures were not of him? And, was conservative blogger Andrew Breitbart’s claim that he had more pictures really true?

So, the crisis boundary was pushed back and a second wall went up. Surely an admission would be the last stand. It would all be over when Rep. Weiner confirmed that he sent the photos, and that he was sorry, stupid and scared. Right?

Wrong. There were, indeed, additional photos (some pornographic) sent to more women, and there was a three-year history of “sexting.” And, now, more questions: Was government property used to carry on these activities? Was he conducting himself this way from his Capitol Hill office? What resources and who else might have been involved in covering up his carrying on?

Now he must push the boundary out yet again trying, in his way, to encircle where the next shoe might drop. He’s been calling colleagues directly to explain himself, beg forgiveness and to build some level of support. But, as the circle grows, the wall becomes harder to maintain, the perimeter more difficult to patrol and the imprint on all of his constituents more enduring.

Is he so different from some other high power, high profile politicians, entertainers or businessmen? No, but that’s hardly an excuse. We may be getting increasingly numb to these shenanigans but, for now, our sensibilities demand some sort of appropriate closure.

The bottom lines? He said he’d answer questions, then he wouldn’t, then he would again. He changed his story. He lied. He’s been behind the news, never ahead of it. And what is he left with? A shredded reputation. A seemingly endless supply of material for comedians. Calls for an ethics investigation by the House of Representatives. Demands for his resignation. Chances for his dream job – to be mayor of the City of New York – potentially dashed. Abandonment by friends and colleagues. A wife who has kept silent. The centerpiece of a new case study for the field of crisis communication.

Between blog posts, you can follow me @pauloestreicher.