Kin - a failure or ahead of its time?

So by now, I think we have all heard that Microsoft’s latest device, Kin, which was billed as the first phone built for social networking has been taken off the market after only two months in consumers hands.

As a result, I thought it would be good timing to discuss how to handle PR when products shut down.

Ahhh, the Kin. I was a bit confused by the need for such a device when it was announced, how about you?  I mean smart phones are exactly that now, smart and can handle social networking…so why would I need a special phone just for that?  Its selling points didn’t grab me.  Like Apple products that come onto the market, they are trailblazers and become mainstays in our life.  Can you imagine not having an iPod, iTouch or iPad in your life now?  But, a Kin. It wasn’t a necessity, but a gimmick that Microsoft thought would be the “in” thing for young consumers.

I mean it looked cool and I understand what it did. It shot great photos with its camera and you could easily share videos and text for social sites.  But, with so many other devices capable of the doing the same thing…I guess in two short months consumers didn’t feel the need for it in their lives.

I have recently experienced this myself as I start my own social media agency.  I am finding that if my potential client is not open to social media or an advocate of it – then it’s best for the both of us not to do business together-that is not until that client understands the power of new media.  Therefore, the Kin is a product that probably was ahead of its time and the market was too small to understand its need.

I mean I recently attended a meeting where Sprint’s 4G network was discussed through the use of the HTC EVO android phone.  That phone can do the same things and a few more than the new iPhone 4 can do and it sure can handle everything that the Kin does.  So as Microsoft found out – there really wasn’t a need for Kin.

And as a PR pro, I applaud Microsoft for having the guts and um balls to pull the plug on the device and face defeat. I know corporately it was a hard decision to make for not only did Microsoft face personal embarrassment, but so did Verizon who was the sole carrier.  Verizon supported this concept and thus went down with them.

But, I want to remind you – that there is no such thing as failure.  Look at Thomas Edison, a premier inventor.  He did over 10,000 tweaks to the incandescent light bulb before he perfected it and showed it off.  To him, this is how he views failure.

Many of life’s failures are people who did not realize how close they were to success when they gave up. T. Edison.

So that’s my PR advice to you. When a product, a TV show or employee is not performing, don’t be afraid to advise your CEO that he/she can pull the plug.  The company will be better off in the long run for it and embarrassment of its demise will be remembered for less than a week. Some other news story will take its place and you will be able to get on with your work as usual.

Look at Toyota…they are weathering the storm and are getting back to work. Cut bait and move on.

Homer Always Shoots Straight From the Hip

If you don’t – then your job as the head of the PR dept. will get quite messy. You will spend a good chuck of your time every day putting out fires from leaks that will arise as news of your product’s ineffectiveness starts to hit the media or is shared through social media.

People have a hard time keeping secrets. And when dealing with television shows, you can never hide the ratings.  Consumers can see how last night’s episode performed or didn’t perform.

Be on top of your game and like Thomas Edison – keep perfecting your product. I’m sure elements of the Kin will remain in the next device that Microsoft launches for it did produce some novel touches.

Soldier on for it takes more courage to admit defeat than to live a lie.

Good job Microsoft.  You did the right thing and deserve respect for trying.  There’s no black eye in this situation.

Are secrets ever harmless?

I’ll going to let you in on a little secret. Secrets are a dangerous tool in your public relations tool chest any way that you look at them. When your client is keeping a secret from you – that’s deadly and when you use them in your strategy – that’s never a good thing. So my advice to all you budding publicists and those more advanced is to never go that route ever if you have the choice. For secrets, always have a way of rearing their ugly head.

And there are several examples to point toward regarding this “bad” practice. The primary example….Former President Richard M. Nixon. Did he or his cabinet ever think that they would be implicated in the Watergate break-in? And for more modern examples…how about Tiger Woods and Jesse James. Do you think that their “playing” the field with other women besides their wives would ever get them into trouble? Tiger even had a team surrounding him to keep things quiet – or for that matter secret.

This secret caused an impeachment. Heck, even the secret of "Deep Throat" was exposed.

Or corporately….Toyota. Did they think that they could forever sit on not warning some of their customers about the acceleration problem?

And on more personal grounds, how many people do you know that have had a secret in their family and it get uncovered. These secrets may have been not exposed during that person’s lifetime…but sooner or later they eventually did-a secret love child, a secret way of life, etc.

Here’s my best advice regarding secrets in communication matters.

• 1) When something is exposed, whether its true or not about your client – ask your client point blank if there is anything that they should tell you about the situation. Get all the truth you can out of the person in the strictest confidence.
• 2) After that, talk to the lawyers involved on your side and ask them if there is a secret that you need to know about…get all the facts you can.
• 3) If there is a secret and you know it – work to position your client in the best way in the comments that you will craft surrounding the situation. But, you will have to start to expose the truth.
• 4) When exposing the truth, make sure that you address only facts and keep it short. Say the least that you can. Have you noticed how short all of Tiger Woods’ press conferences are?
• 5) And be sure to get in front of the story.
• 6) And always work in conjunction with the lawyers on the case.

The Los Angeles Dodgers Owners Frank and Jamie McCourt are telling all their secrets in an ugly divorce.

Did you think that the McCourt’s (LA Dodgers owners) dirty laundry would ever be exposed? Well it is, thanks to an ugly divorce. Did Mark McGwire ever think that he had to expose that he used steroids? He came clean last January.  And now even criminals don’t stand a chance due to the incredible DNA process which identifies them more quickly than before.  So you see — Secrets are never a safe practice.

The saying the truth will set you free is always true. Work toward truth in all that you do, for lies and secrets, will eventually be uncovered. And they are no fun when it happens on your watch.

I’d love to hear your thoughts regarding secrets in the PR practice. Whisper them here in your comments.

Best,

Cindy

To Tell The Truth?

Imagine you are the head of communications at Toyota and this assignment gets dropped into your lap.  What do you do with a situation where a person may have allegedly faked a runaway incident in order to receive a new car?

As a PR pro, do you “out” the person and tell the world that he did this as a stunt to get a free car?

Do you just give the person a “free” car and wipe this situation out of the books?

Does the principle “the customer is always right” apply in this situation?

Do you go to great lengths to expose any wrong-doing, when you have so many other civil lawsuits going against your company?

Would you be irresponsible for not telling the truth in this case, no matter the judgment on the driver?

Toyota is in a pickle. This is a case study no one could have ever dreamed up-but it may have allegedly happened to them, per last week’s runaway Prius incident in San Diego.

Here’s the latest on the story from the Wall Street Journal on Monday.

   DOW JONES NEWSWIRES

Toyota Motor Corp. (TM, 7203.TO) said there are “strong indications” that a dramatic incident on a California highway involving a Prius last week was inconsistent with the findings of the auto maker’s preliminary analysis.

The Japanese auto maker said its engineers completed an investigation of the 2008 Prius driven by James Sikes that was subject to an emergency call a week ago, when the driver reported the vehicle was traveling at a high rate of speed and couldn’t be stopped.

For its part, Toyota said the accelerator pedal in Sikes’ car was tested and found to be working normally. It said the front brakes showed “severe wear and damage from overheating,” with the rear and parking brakes in good condition.

The company also said its engineers believe that the assertion the vehicle couldn’t be stopped with the brakes is “fundamentally inconsistent with basic vehicle design.” An investigation is ongoing.

So the real question becomes, if James Sikes did fabricate the runaway stunt do you accuse him of it?  Is it best to tell the truth in this case.

What a Potential Mess

I believe that Toyota is actually handling this situation well.  Anyone who has been following this incident is aware of Sikes financial status. The guy is heavily in debt and his actions are not consistent with the other runway cars.  I like how Toyota has not come out and accused him of anything and how they are choosing their words carefully to explain the matter…they said that there are “strong indications” that the situation is inconsistent (with the real consistent problem the Japanese auto maker is having – parenthesis are my words and not Toyota’s).

For all the mistakes that Toyota has been making in cheapening the quality of their cars, this “fake runaway” incident is something that needs to be exposed so copy-cat incidents do not flare up.  Toyota is just as responsible handling this case as they are the others.

There have been no accusations made in the Sikes case and everything is alleged.  So allegedly speaking, my heart stops at the thought of others who might attempt a foolish stunt to get a free car.  If Toyota did not expose the potential truth in this situation, they could have a epidemic of sorts on their hands.

Desperation causes people to behave in ways that they never would have dreamed of.  Financial debt breaks the souls and hearts of men-so if one person gets a free car, I hope others don’t try and mimic a runaway car that really isn’t.  But, again nothing has been proven in this case and the Officer who pulled him over said he looked visibly shaken.  So who knows?

But some good did come out of this incident. We all learned through news reports what to do if we have a runaway situation on our hands.  To be truthfully honest here, I don’t think I would have thought of putting my car in neutral if it was me. But now I do know thanks to the news reports telling us how to handle the problem.  I own a 2007 Prius and I have loved my car, but for the first time after this incident I felt afraid driving my car for fear that this same situation would happen, my accelerator would get stuck.

This Toyota situation is like peeling an onion. There’s layers upon layers upon layers that keep getting discovered as to why there was a shift in their quality control.  There is so much that Toyota needs to own up to regarding those who have lost life and limb due to the construction of the car, and on top of all that, for Toyota to have to face alleged “fake” incidents is just as egregious and unnecessary.

If you are not sure how to turn off your car if it speeds out of control, here’s a great video showing you how from ABC NEWS.

As a PR pro, how would you handle such an situation. I’d love for you to share your thoughts.

Until then,

Be safe,

Cindy

Does Toyota ever need crisis communications– for this once-stellar company is hemorrhaging everywhere.   Every time a new edition of an online report comes out there seems to be some new allegation or fine being imposed on this global Japanese car manufacturer.  They are in a heap of trouble.

As I mentioned yesterday, no one has answered whether or not the cars in question are safe to drive. Transportation Secretary Ray LaHood, in a congressional hearing, appeared to warn owners not to drive recalled vehicles, but he later said he misspoke. He just really wants Toyota car owners to get their cars fixed as fast as they can.

And speaking of fast, I’m sure Toyota’s corp comm team’s heads are spinning. For as they put their finger in one dike, another hole breaks through their steel veneers.  I’ve been reading that they may be facing hefty fines for not addressing this issue fast enough-the first reports came in ’07.  And now it appears that other models have problems- their crown jewel the Prius may have faulty brakes.  And then to top it all off, Toyota’s stock fell 6 percent today.  Believe me, there’s no one happy at Toyota, except maybe the Dealerships, which will be making tons of money fixing these issues.

When bad things keep happening and happening, the best thing any company should do is address each problem individually and as soon as possible.  Whatever money is left in the coffer, I’d invest in outside PR agencies to handle specific segments.  I’d give one firm – customer relations and the proper protocol in communicating to car owners. I’d give another investment relations to handle the stock issue.  I’d hire a marketing team to address new marketing materials, slogans and advertisements.  I’d be hiring video production companies to produce commercials that showed the company has rectified the problems. I’d hire another agency to handle the messaging to each dealership for all the dealerships need to be on the same page. And lastly, I’d hire a global PR firm to handle questions about car safety coming from the other countries.

As you can see this is a multi-pronged public relations problem.  What it really is – is a big mess.  Toyota employees must be reeling.  I know people who work for that company and I have always admired how Toyota has taken care of its employees.  Did you know that they have a gym on site and they encourage their workers to stay in shape!  How great is that.

I have a theory in all this…sometimes when you get so successful…you take things for granted and are not as keen on your game.  Well, if this is what happened to Toyota, then their eyes certainly are wide open now.

Despite all…as a Toyota customer…I’d buy another one of their cars any day. It really is a great product that they need to fix now.

Yoo hoo…Toyota…if you are looking to fill out your corporate communications team, I’m available! And I know a handful of others who would be terrific too!

I own a Toyota and even though my car is not on the recall list, I still wonder if my car will accidentally lunge forward. There are just too many models that are affected for me not to think that it could happen to mine as well.  So, if I’ve lost some confidence in my car’s manufacturing – you can better believe that those who own Toyotas on the recall list are a bit worried  as well. And they have every right to be.  Lives are on the line.

Did you happen to catch Toyota’s open letter this morning.  Let’s just say they didn’t exactly fill in all the blanks and their attempt to provide answers – isn’t hacking it with its customers.  This is a PR crisis accerlating or pardon the pun – lunging out of control.  There’s no telling if there is any stopping of it at least during this month or the next six.

Toyota’s lettter from Jim Lentz, President and Chief Operation Office, Toyota Motor Sales, U.S.A., assures customers that they are ‘doing everything they can – as fast as they can – to make things right.’ However, when I visited their website there’s a note at the top that they recognize that customer’s calling the Toyota Customer Experience Center are experiencing lengthy waits.  I dialed the number (800-331-4331) and after hearing two lengthy spiels where they reinterated what’s on the website I pressed “1″ and got immediately switched to an actual person who introduced herself.  That was done right, however, there are only certain hours that the switchboard is open – and with 4 million cars affected – they should have opened the switchboard 24/7 the first week.  When my family is in jeopardy, I want to talk to a responsible human being and not be pushed to a website with a video from the President.  I have to admit Pres. Lentz did appear concerned while reading the teleprompter.  And he should be – he’s got a mess on his hands and how.

But, what I really want to chat about today is how Toyota’s corporate communications department has been handling its messaging.  If I was Ebert, I’d give them a “THUMBS DOWN” for the following reasons:

• Toyota waited too long to respond to the initial problem.  Consumers knew of this issue for too long – the floormat issue was in 2007 – and now today we get the open letter.
• The letter doesn’t say much thanks to Toyota’s legal team who scrubbed and scrubbed it – removing any incriminating words and other wording that might make Toyota more libel for its actions.
• Toyota’s media plan is steeped in corporate jargon.  Where’s the personal touch? Where’s the assurance that this problem will be 100 percent fixed by installing a shock absorber to the pedal?
• More importantly, where’s the assurance that the vehicles on the recall list are safe to drive until they are fixed.  
• And customers are skeptical that this is the cause.  There has been some finger pointing between Toyota and the pedal manufacturer which has been raising eyebrows.  This needs to be cleared up in the public’s eye.

Toyota has been responsible though, not all has been mishandled. They did jump in and create a solution and has been listening to the government regulators on the case and they did shut down their production line.  That’s revenue lost along with their brand recognition.

You know misshaps can happen to every company and when they do – it’s best to come clean as soon as possible.  You have the customers you do, because they believe in your product – so give them the same respect back.  Provide them with answers and service however and whenever they need it.  Remember that customer care is about “caring for the customer” no matter the loss to you.  It will come back to you in droves.

So, be transparent. Tell the truth in crises. And fix the problem.  The customers may feel out of sorts that they have to return to the Toyota dealership for the fix, but that’s minor compared to the real issue.  They mostly care about safety. Safety comes first for customers and companies.

Also, Toyota has opened itself up to ridicule and public attacks.  For whenever vulnerabilities are present – there are others waiting to take advantage…look at how GM is rubbing salt into Toyota’s wound.  They are helping to infuse that Toyota’s cars are not safe.

Toyota has a nightmare on its hands.

Do you own one of these Toyota’s? What’s your take of this situation? I’d love to hear it.