Fallston Group

The Coxswain Metaphor – A Lesson from the Ultimate Team Sport

In the stern of every 4- and 8-oared rowing shell sits a person called the coxswain.  This person is the brains behind the brawn; the on-water coach; the decision-maker; the leader. This person is responsible for race strategy, the safety of the crew and equipment, and ultimately, for ensuring that every single rower knows exactly what to do and when to do it.  The coxswain, not coincidentally, is the only person facing the direction the boat is moving: forward. From the moment the crew puts hands on the boat, the coxswain is in charge. The crew places the highest level of trust in the coxswain, understanding the importance of their role in contributing to the whole. Every individual is incredibly important– the sum of everyone is exponentially greater than any one person.  If one person, for one second, loses focus or misses a call, accidents happen, people get hurt, equipment can break, and races are lost. Great coxswains (like great crisis leaders) are part visionary, part strategist, part coach and always operating within a predictive mindset and factoring each nuance. In any crisis, it only takes one action or incident, sometimes deceivingly minor, to derail an organization.  At the moment a crisis occurs on the water, the leadership of the coxswain becomes even more important; the crew always knows whom to follow. When a crisis occurs in your organization, do you have a coxswain? Does your crew know where to look for leadership guidance, strategy, tactics and recovery? Do you have someone that is “facing forward” and can see the big picture from the outside?  Imagine trying to move a 60-foot racing shell forward, while facing backwards, continuing to row, coordinating everyone else in your boat and constantly turning around to see if you’re going to hit something. You can’t do it. It’s no different than trying to handle a crisis that is happening in your own organization without independent crisis leadership.  On the water, in an office or within our personal lives, something eventually happens that will throw the whole crew off balance, off course and threaten to sink the boat. Crisis management is important because it isn’t whether or not the event that happens is large or small but the ripple effect and how it is managed and contained.  Rowing is one of the most beautiful sports to watch; from a distance, a synchronized crew looks flawless, its minor mistakes not visible to those on shore.  It is analogous to your company’s reputation.  Outsiders don’t see or know every nuance or issue that occurs “in the boat.” But before a crisis occurs and it affects reputation—how the outside world perceives your organization—the smartest thing you can do is assemble a confident, capable, and highly experienced crisis leadership team who will get your crew rowing smoothly again, in the right direction.

Organizational Muscle Memory Saved Damar Hamlin’s Life

Cal Ripken, Sr., widely known as the professional ballplayer turned coach who created The Oriole Way, joined Major League Baseball’s Baltimore Orioles as a minor league ballplayer in 1957. He went on to coach, spending 36 years with the organization. Of the many “Seniorism” phrases I’ve heard from Cal Jr. & Bill Ripken, the one that most resonates with me is “Practice doesn’t make perfect. Perfect practice makes perfect.” I never thought of it that way, but Cal Sr. was right. Another mantra floating around the universe is “Amateurs Practice Until They Get It Right; Professionals Practice Until They Can’t Get It Wrong.” While hard to find appropriate attribution, this phraseology also shaped my thinking as it takes optimal performance to another level. Whether a musical performer, professional golfer, or keynote speaker whose livelihood depends on making audiences think, feel and act differently, true pros relentlessly rehearse, so they are ready to meet the moment. Let’s take it one step further when lives are undoubtedly on the line. My Dad was a U.S. Army Airborne Ranger who found himself in numerous jungle warzones during his career. Part of the Ranger Creed reads, “Never shall I fail my comrades. I will always keep myself mentally alert, physically strong, and morally straight, and I will shoulder more than my share of the task whatever it may be, one-hundred-percent and then some.” When I reflect upon these core beliefs, the following comes to mind: Commitment Excellence Ownership Winning What looked like a routine tackle as millions tuned into that week’s Monday Night Football game quickly escalated into a life-or-death moment. The National Football League’s Buffalo Bills Assistant Trainer Denny Kellington’s quick and decisive actions saved Buffalo Bills safety Damar Hamlin’s life on January 2nd. Kellington administered CPR and is credited by many for saving Hamlin’s life and preserving his cognitive health. Simply put, Denny Kellington is a hero. How did Kellington so effectively spring into action at 8:55p that horrific night? Unquestionably, the 30 minutes he and others who cared for Hamlin during that crisis positively changed the trajectory of many lives. From the training staff to first responders to coaches to the continuum of healthcare providers and many more, there are many to credit with Hamlin’s survival and remarkable progress. Point blank, Kellington did what he and his staff were trained to do. They didn’t feel their way through the situation, try to figure it out on the fly, look up a series of policies or protocols to see what to do next, or even phone other professionals for advice. They’ve been training for this moment for decades – Kellington recognized the situation, responded with conviction, and fully committed himself to Hamlin. Much like every NFL team has a playbook, so does the training staff – it’s called Organizational Muscle Memory. Whatever team you’re a part of, learn from Kellington. Be predictive, relentlessly train and always be ready to meet the moment…you never know who might need you during life’s most critical times. #lovefordamar

Southwest Airlines Fails to Close Vital Communications Gap

Southwest Airlines is in trouble, under federal investigation and the lead story on most traditional mainstream media news outlets. The real long-term crisis Southwest Airlines faces has nothing to do with the cold front that disrupted flights, caused computer glitches, or created staffing issues. Instead, the real crisis is the failure of leadership to communicate quickly and effectively to all of the micro communities that depended on Southwest Airlines, including all of its stranded and inconvenienced customers.. If Southwest had issued regular updates and explanations for the service disruptions, travelers could have planned accordingly. Instead, families are still stranded in airports without any plan of action – an issue which is costing them unnecessary amounts of time and money! Customers who have had flights canceled have been waiting online (or on hold) for hours to speak with or interact with a ticket agent who, in many cases, cannot provide alternative transportation and logistics courier for days, if not weeks. Additionally, customers say they have waited hours on phone calls to the 800-line only to find the next available flights aren’t until after the New Year. Let’s look at the Southwest Airlines communication timeline: The Southwest website issued this statement with no updates since the initial post: “Due to adverse weather events and their resulting effects, we are currently experiencing operational disruptions and are working diligently and safely to restore normal flight schedules as quickly as possible.” It is one very long sentence (30 words) with no direction given to travelers left stranded. On FACEBOOK: only one post (at 11:09 am EST Monday), with no updates: “We continue to experience high call and social inquiry volumes. Please check your flight status and explore self-service options”. (Southwest Airlines | Book Flights, Make Reservations & Plan a Trip). The FACEBOOK post has had 8.1K comments ranging from disappointment to outrage. On Twitter, the same message has been posted with no additional updates. If Southwest Airlines were issuing updates every hour, with information specific to each airport, travelers may still be grumpy but would be more understanding. Instead, travelers are left in the dark. Without the proper knowledge of how to proceed, frustration and anger escalate. The company’s mission statement is “to connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.” The lack of reliability may hurt the company, but the lack of communication may prove most harmful to Southwest Airlines’ reputation in the long run. Remember, crises cost organizations time, money, customers and careers – Southwest Airlines has traveled nonstop down this trajectory of failure. Southwest Airlines executives must open the lines of communication quickly to offer empathy and explanations. Their actions will decide where the airlines’ image lands in 2023. Remember the general basics of the Resilient Moment Communications Model: What happened? What caused it? What are the short and long-term effects? What’s being done now? What’s being done, or what do we need to do, in the future? If Southwest Airlines quickly embraces this communications model, perhaps they can at least begin to build the trust they’ve already withdrawn from their reputational piggy bank!

The Power of Crisis Leadership: Protect Your Reputational Piggy Bank – Your Most Important Account

Building Strengthening & Defending reputations

The critical importance and value of crisis leadership has perhaps never been more apparent than it has been during the past few years, as companies across the globe have felt the weight and impact of one societal crisis after another. Each and every time a leader delivers a message – be it a board meeting, media interview, keynote, community meeting, or social platform, their reputational piggy bank sees a light deposit or heavy withdraw. Thinking strategically about what the right message is and how it will resonate with many micro, diverse communities will help assure both your reputational and cash balance pays dividends over time. I’ve learned from so many incredible leaders who communicate spectacularly under duress. It is an art, not a science. The best communicators I know are obsessive about every syllable they utter, piece of clothing they wear, and message point they deliver. They’ve learned how to steer clear of organizational jargon, are detail-oriented and compassionately deliver messages in a conversational manner that quickly and emotionally connects with those who consume their words. They are analytical, well-timed and process loads of information, almost instantaneously. And they are never too high or too low – they have a steady hand under pressure no matter the gravity of the situation or tightness of deadline. They understand the big picture – it’s what they do best – see the whole room and move people to proper perspective, balance and action. Mishandled, crises will cost you time, money, stakeholder confidence, careers, and in the worst of scenarios, freedom and lives. Make no mistake about it, the decisions you make today will be judged by many for years to come. In my view, you don’t spin your way through crisis, you lead your way through. It’s not about shallow window dressing, it’s about long-term sustainable change. Real leaders emerge when the chips are down, and the stakes are at their highest. Let’s face it, anyone can lead when the sun is shining, profits are high and company culture is beaming. After decades of helping people during life’s most critical times, I’ve come to realize that crisis is not to be feared. In fact, crisis is a growth strategy. That’s right, a growth strategy, as counterintuitive as that may sound! Remember this…reputation leads to trust, and trust leads to valuation. YOUR reputation leads to trust and trust leads to valuation…and, not all currency is financial. I’ve had the privilege to critically advise leaders in large health care, academia, financial, legal, hospitality, and insurance organizations, along with many other public, private, government and nonprofit entities who are fighting for their futures. The key is to understand each organization’s navigational fix, where’d they like to be then chart the path forward using a deep well of instinct and experience. Make no mistake, crisis leadership is an art, not a science where every nuance counts, and a predictive mindset is a nonnegotiable asset. To illustrate, I’ve worked with those in the health care space on a myriad of issues, including accusations of patient dumping, mismanagement, sexual harassment accusations and medical malpractice claims, to name a few. There is no shortage of issues to contend with in this industry, and many are insured by captive insurance companies. Generally, those filing claim will lay their case out with an aggressive demand for settlement. Layered into the claim is often the subtly veiled or overt threat of “going public” if the demands are not met. At that point, the health care client, and their legal/risk teams, have a decision to make – do we settle and avoid the court of public opinion or risk reputational damage for the sake (1) saving dollars and/or (2) doing what’s right. This is a tricky balance as the court of public opinion weighs heavily in favor of the plaintiff as their legal team is often first to market, putting the health care organization on defense. Many types of entities evaluate this type of risk while the vice tightens. To manage this dynamic, the forward-thinking legal teams I’ve worked with quickly engage to conduct an analysis of this treacherous traditional and digital landscape – the who, what, where, when, why and how of storytelling – in other words, how will the story land on varying media platforms to the varying micro-audiences who care, and what impact will the news have. Concurrently, there is a ton of due diligence to ensure all of the facts are known; spokespersons are identified and trained; ambassadors, detractors and influencers are accounted for; media market is sized-up and executive alignment is in tow, to name a few dynamics. This is literally a real-time chess game whereby filings or press conferences can occur at any moment. A few critical tips to ensure your reputational piggy bank continues to overflow: Never erode your integrity. Misinformation breeds distrust. There can be an immense pressure to “make your organization look good.” Many want you to press your nose up against the ethical window of truth and transparency. Do not cave into others who would like you to lie, distort the truth or leave vital facts behind which alter messaging and perception—this is tantamount to a lie. Once lost, you will never fully restore your integrity. Be relevant. As the art of traditional and digital press relations evolves within a changing worldwide media landscape, I hear about more and more leaders not returning reporter calls, delaying the release of information and simply refusing to feed the “media monster.” If you choose to stick your head in the sand and not respond, you quickly make yourself irrelevant and ineffective. Remember my mantra, “If you don’t tell your story, someone else will. And, when someone else tells your story, it certainly won’t be the story you want told.” Know the facts. A common mistake of many who speak publicly revolves around not fully preparing and gaining a sound understanding of the facts before articulating their position. Too many times I have seen professionals jump out

Be the Lighthouse or Its Reflection

Gloucester,Lighthouse,,Ma

During a recent trip to Gloucester (MA), I snapped this photo of the Thacher Island Twin Lighthouses while traveling by sea north toward the Gulf of Maine while doing a little whale watching. That said, there is nothing ‘little’ about whale watching as humpback whale calves are generally 14 feet long and 1500 pounds at birth! A story for another day. According to a few sources, the Thacher Island lighthouses were constructed in 1861 and are 124 feet high, 22 feet in diameter and have 156 steps to the top of the towers. Each are constructed with 10 tons of granite block with 2 feet thick inner walls. Each lighthouse, daily, withstands rigorous weather elements and serves as a critical navigational point through its steady presence and beacon of light.  What about your own life? Who serves as your lighthouse, metaphorically speaking? Think about the attributes of a lighthouse and how many times one is depended upon for guidance – during the day and at night…when it’s sunny, cloudy, windy or raining. Who withstands the storms of life yet maintains a sense of beauty, dependability and resilience? Whose light do you depend upon during calm and tough times – while navigating issues of sensitivity, adversity and crisis? It does not matter the velocity or ferociousness of the situation, the lighthouse maintains its ground, purpose and posture in any crisis. Reflections: Who serves as your lighthouse? Who views you as their lighthouse? What are you doing to thicken your walls and brighten your light? There are two ways to lead during critical times – be the source of the light or reflect the light from another source – both are critical and needed to protect people, secure assets and strengthen brands.  Back to the reflections: (1) thank them; (2) know them; (3) be the beacon.  

Peloton’s Lack of Planning: Part II

Earlier in the year, Peloton experienced troubles related to its leadership decisions during the coronavirus pandemic to expand well beyond its means. As part of their earlier strategic solution stable, Peloton decided to reduce the cost of its products. Those steps have not materially helped valuation so now, ironically, it is shifting to raise the cost of its products, close a significant number of stores and cut approximately 780 jobs. Their CEO has communicated their new focus is now on cash generation to give life to the company. For those that have been in business for a while, it is not a surprise that cash generation is important; in fact, we’ve heard the phrase ‘cash is king’ for generations. Alarmingly,  Peloton to now come to this realization is striking. So, what are some of the fundamentals that seem to be missing? As we wrote earlier this year, Peloton seemed to have material gaps in their business planning (Read Previous Peloton Blog). In a sound business, they would be thinking about evaluating critical decisions across several possible scenarios to ensure the business is robust in a world that is constantly changing and dynamic. Another apparent strategic gap relates to risk management. Here are just a few risks that have materialized: Peloton had their exercise bikes used on two television series to ‘kill-off’ main characters; they have had parts falling off their equipment; some Peloton equipment has been labeled a safety hazard for children. And Peloton has had significant failures in the financial viability of their decisions. Solid organizations must have an annual process to review the risks to the business, and a more frequent cadence during unstable times. What are the customer risks? What are the market risks?  How about legal and reputational risks? What other factors should they worry about that could impact their future success? Getting those strategic risks on the table to discuss and plan for would generate ideas on how to reduce the likelihood of those risks materializing. Once identified, there is no question that short-term adversity can translate into long-term advantage if properly managed. More sound strategic minded leaders could have helped avoid the sad personal impacts to Peloton employees and their families. And Peloton’s user customer base is likely a bit worried about the future value of the expensive exercise equipment if the company cannot succeed for the long term on delivering content to keep them biking. To learn more about appropriate strategic planning and risk mitigation, feel free to contact any one of our experts. Crisis cost time, money, customers, and careers, generally in that order. Peloton seems to be hitting on a number of these cylinders now.

What is Earned Media?

Building Strengthening & Defending reputations

Kathleen Carins, EMMY Award-winning Television Journalist, who now uses her expertise as a Fallston Group Media Coach and Communications Strategist, shares her insights on “earned media” and some of the nuances involved.

Best Practices for Crisis Management in Corporations

Building Strengthening & Defending reputations

As we all learned from Covid-19, everything changes when a crisis occurs. In the case of Covid-19, the unexpected and immense changes that erupted as a direct result of the pandemic impacted the course of history forever. Some might say that the change was for the good (remote work and blended models are now widespread and we care more about personal and public health). Some might say that the change was meant to wake us up to environmental issues. Some would say that the mask policies that were put into place because of Covid tested the willingness of the common person to put up with temporary discomfort for the betterment of everyone (recovery from the pandemic and a return to normal). Many would say that it tested our response rate to a widespread crisis. The truth is that there is a lot we can learn from Covid-19 when it comes to crisis leadership and best practices for handling adversity & crisis. Naturally, there were a lot of questions and a lot of solutions that were enacted quickly (as a crisis response) when covid-19 emerged. After all, there was no choice but to respond (the world, the country, government officials, business leaders and, yes, each of us). And the best practices for crisis resolution were generally respected.  Attempts were made to respond accurately, consistently, and quickly. Whether we took it seriously or not was up to us. With millions of Americans dead, the virus took a huge toll on American lives and not everyone agreed with the Covid-19 response. The good news was that we responded effectively enough to learn a great amount from Covid-19 – understandably, the debate will continue about how effectively. In truth, no one was adequately prepared for such a widespread event. Combine a lack of preparation with a huge need to respond and you get a great, but costly, learning experience. Questions like “How will the economy fare?”, and “How long will they quarantine?”, and “when students (and workers) should return to work?” erupted. They followed with “When should mask mandate policies be removed?” and “will everyone take the vaccine when it comes out or will incentives need to be put in place?” These questions and answers were naturally debated, and they caused controversy as not everything was perfect. Still, whether it was perfect or not, the truth is that there was a crisis and there was a response. The response was very fast as borders closed, and everyone was told to stay at home and situationally wear a mask. Store supply and demand was tested (items were off the shelves quickly and were replenished). Stimulus checks were given. Vaccines were developed very quickly, and while there were setbacks, the good news was that the rollout of the vaccines quickened, and they were available to the public free of cost. Healthcare workers did a phenomenal job and were heroes during this dire time. The public also did its part overall (even though many didn’t want to cooperate). Lastly, the spread of misinformation about the disease had to be scrutinized over, and journalists and scientists were on the job to make sure we knew what was true from what was false – again, some will continue to debate. At the end of the day, our response improved over time. What we’ve learned from the pandemic is that a massive and life-altering crisis can happen, and there’s going to be a lot of uncertainty (and fear) and that it can change our ‘normal.’ So, as everyone has learned (and been humbled by in terms of the pandemic), a crisis is an unexpected or smoldering event that results in an emergency response. Serious and potentially devastating crisis events must be prepared for. If not, there is potential for company embarrassment, loss of money, loss of time, and loss of company or personal morale and loss of life. The good news is that we can prepare for a crisis, and we can learn from how other companies handled crisis events. The bad news is that corporations have not been known for having the best responses to crisis. No, in fact an emergence in crisis management is the direct result of the shortage of effective crisis management. So, now that we know that our crisis response can improve, it’s good to know that there won’t be an excuse anymore not to prepare for the worst events. With enough literature, statistics, and research out on the topic however we all can be prepared to handle what comes our way. If we start with foresight and a predictive mindset, it’s a brilliant way to start. Some of the best plans include having the foresight so see what crisis might come, evaluating plans for each crisis, and of course electing the best leaders, teams and spokespeople to become directly involved with every step of the crisis. With the right recommendations and the right people, a crisis response will break down into before, during, and after crisis stages. There is no doubt organizations can turn short-term adversity into long-term advantage. When it comes to a crisis response, we can start by looking at the numbers, and see crisis management a little more clearly, but the most important statistics on crisis management are as follows: less than 30% of respondents in a recent global crisis survey felt that their businesses crisis management functions were well composed. Yes, and of course, over 70% of respondents said that technology would help significantly with the organization and outcome of a crisis response team. Most importantly, most (or over 70% of business leaders) reported having a crisis happen to them within a period of the last 5 years. Most of the individuals (more than 90% of those surveyed) believed that a crisis would happen to them within the next two years, but less than 35% of people believed that their company was prepared. According to these statistics, risk can’t be ignored. According to Deloitte, the areas that frequently involve

Male Student Success Initiative Making a Difference in Young Lives

Building Strengthening & Defending reputations

Bottom line…the Community College of Baltimore County focuses on the improving the success rate of their male students and some renewed funding has given the program new life!  The Male Student Success Initiative (MSSI) is a network of support for students who attend the Community College of Baltimore County. The initiative consists of men of color, with approximately 90% of those being African American men from the Baltimore Metropolitan area. The primary objectives of the initiative include, but are not limited to, providing dedicated mentorship, helping men to prepare for and obtain internships, and assisting with building brotherhood and community for students. All of these principles are closely correlated with successful graduation and effective transfer. Part of the uniqueness of MSSI is that students are organized into micro-brotherhoods which are focused on their respective majors or programs of study. For example, cohorts are curated by gentlemen who wish to pursue careers in business, healthcare, and engineering. Based on interests, these aspiring men work in distinct cohorts which are led by a dedicated mentor. Additionally, these cohorts work together to create and organize MSSI sponsored events which make a positive difference in the world we live in. One of these events was sponsored by STEMulating Minds (SM). SM invited Dean Oscar Barton, Jr. (Morgan State University’s School of Engineering) to speak to their cohort, and he did so by offering an MSSI bridge to Morgan with financial support, and assistance with helping student enrolment into the School of Engineering. The SM cohort has received more than $12,000.00 in grants that will allow students to join NSBE (National Society for Black Engineers) with the purpose of building and launching rockets. YES, launch rockets!  Providing students with experiential learning opportunities and launching rockets is one of the examples that give our men opportunities that they would not encounter outside of MSSI. MSSI also has an Advisory Board. One of the primary components of the Board is to assist students with internship opportunities. Students have been able to garner internships with Stanley, Black and Decker and with various charter schools. To secure these interns, students must have a certain GPA, number of credits completed, and attend an information session. To continuously engage young men, speakers and other events are geared around student registration and orientation. Additionally, opportunities are provided for male students to attend statewide and national conferences with overnight stays. Within this realm, students gain experience in professional development settings – skills that will last a lifetime. To maintain engagement with the high school community, MSSI is working with the Baltimore County and Baltimore City School Systems, as well as other entities like CollegeBound Foundation, to orient male high school male students of color to the features and promises of MSSI. MSSI is working tirelessly to support and to promote exceptional opportunities for men of color at the Community College of Baltimore County. They do this with a wide approach to engagement, quality and accomplishment.  If your company or organization offers internship opportunities, we encourage you to consider CCBC’s Male Student Success Initiatives. To learn more about this amazing program: https://www.ccbcmd.edu/Campus-Life-and-Activities/Male-Student-Success.aspx.  

Peloton’s Lack of Planning

Building Strengthening & Defending reputations

Amid the height of COVID in 2020, Peloton’s stocks skyrocketed and increased by almost 440%. While many consumers were investing strongly in at-home workout machines, Peloton continued to advance its business goals by producing more, creating a wider variety of product, and making business decisions for 2021 and the years so come. Ah, the power of business planning – where did Peloton go wrong? In 2021, stocks dropped 76% and most recently in Q4 of 2021, the numbers were their lowest growth quarter ever. Now, the CEO is under fire as Peloton is halting production in 2022 to remodel their production, prices, finances, and business plans to reflect a more accurate valuation, as COVID numbers decrease and people are going back to work and have less of a need for at-home fitness equipment, especially when gyms are opening back up world-wide. Many competitors have emerged in the marketplace, most notable – Lululemon and NordicTrack. The bottom line, Peloton projected their numbers at their highest value point and quite frankly, didn’t do what we tell every client – “plan for adversity”. It seems like common sense and can be seen as naïve to think production would maintain at the momentum it was during a time where everyone was forced to stay indoors, but the mistakes were made and now their reputation is on the line. Peloton is currently laying off employees and closing stores due to their misjudgment on projections and finances. Right now, the CEO is denying that they are halting productions but gave a vague statement regarding their efforts towards increasing margins and improving costs for the company (which creates a very selfish image). Wall Street and the court of public opinion are not reacting well. What could have been done differently and what can they do in the future? Peloton failed to plan for a time in which competitors and adversity would cast a shadow on their product. The mishaps in production and projections were discovered early enough to make changes sooner, and this was a smoldering issue that the corporate offices new about and tried to do small things to change a big mistake. They began to slash prices, sacrifice quality, but then increased prices for delivery and set up; it was a complete scramble to correct margins. There was a complete disregard to consumer impact, and people began to learn the smoldering issues of Peloton very quickly. There is a trust that the court of public opinion shares with companies, especially those that align themselves with that organization and actually work for them. These very people are being laid off due to the corporate failures, and the court of public opinion is waiting to see how they will handle it. Peloton needs to be transparent, take responsibility for their miscalculations, and ultimately ensure that the corporate office, the stores, employees, and consumers are all aligned in how they are going to maintain integrity and the steps they will take to prevent this from happening in the future.  

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