Smith O’Keefe Declares War On Business Crises
“Most Crises Are Avoidable” Argues NJ Communications Firm

CEO’s in handcuffs, insider stock tips, growing workplace violence, defective products that cost lives and millions of dollars in business losses are dominating today’s headlines and eroding confidence in our economic system. Smith O’Keefe & Associates, a southern New Jersey communications firm, has declared war on the root causes of crisis in American business that so tragically impact investors, employees, customers, vendors and a wide range of other stakeholders each year.

Smith O’Keefe has announced a strategic partnership with one of America’s leading crisis consulting firms, the Kentucky-based Institute for Crisis Management, to raise awareness of the financial and human consequences of crises that need not happen. Founded in 1990, the Institute (ICM) provides crisis consulting services to Fortune 1000 companies, prominent non-profits and government bodies nationwide, and is headed by Larry Smith, with thirty years experience as a former TV News Director, Journalism Professor and Press Secretary to government officials at the national level.

“So many myths pervade American business that, if left unchallenged, can dramatically increase the likelihood that crises will occur,” stated Teddie O’Keefe, President of Smith O’Keefe, “like the widely held views that most business crises are caused by natural disasters or employee errors and are usually unforeseen, sudden events.”

In fact, a review of ICM’s database of more than 82,000 crisis-related business news stories since 1990, the largest database of its kind in the U.S., reveals that 63% of all newsworthy crises are caused by management errors and inaction, and that almost two-thirds of crises are “smoldering” situations management knows about, or should know about, but does not adequately address. “These statistics are often disturbing to senior managers,” commented Larry Smith, ICM President, “but the real message is that proactive, thoughtful planning can prevent most crises from ever happening.”

For Smith O’Keefe and ICM, crisis is the enemy. The firm has identified seven strategic weapons to Avoid, get Ready for and Manage crises in this increasingly volatile world – and leverage that investment into a competitive marketing advantage.

1. CREDIBILITY – Today’s most valuable business asset.
The most important weapon in the arsenal – indeed the most important business concept that will dominate this decade – is credibility. Cynicism and distrust are a national epidemic. Defining credibility as the degree to which others can anticipate your future behavior reflects the critical importance of inspiring the trust and confidence of all stakeholders.

Consistently built and well-earned trust and confidence have the power to prevent or defuse crises like no other single investment management can make. “Think of credibility as a bank,” said Barbara Murphy, Executive Vice President at Smith O’Keefe. “Consistent positive actions and good will are deposits earning interest. This isn’t soft, feel-good thinking. This is strategic business thinking that should be on the agenda in every executive office in America.”

2. COMMUNICATION
If credibility is the most powerful weapon in the arsenal, communication is the factory in which the weapon is built. Virtually every aspect of avoiding a crisis, building crisis readiness and managing a crisis is impacted by the degree and quality of communications. Every stakeholder makes judgments about the business or organization colored by the sum total of communications with them.

“The most successful and crisis-resistant businesses and organizations in this century,” commented Smith O’Keefe CEO Ken Smith, “will be communication leaders utilizing leading-edge technology and every possible tool to optimize the exchange of information with all stakeholders. The goal must be to enhance credibility at every opportunity.”

3. MANAGEMENT EARLY WARNING SYSTEM (MEWS)
This proprietary system is a powerful weapon in the war on business crises. Early detection of a potential crisis-producing situation is critical. This systematic identification and analysis of early-warning signs is built on honing listening skills and education to make staff watchfulness a trusted part of the organization’s culture.

4. THE OPEN COMPANY
Stakeholder disillusionment is creating an environment in which calls for new rules are everywhere. Futurist Faith Popcorn has called for an Open Company unafraid of scrutiny. Smith O’Keefe and ICM are dedicated to helping management build the credibility, accessibility and transparency to inspire stakeholder confidence needed in a world of seemingly endless assaults on that credibility.

5. MORE THAN INSURANCE – A COMPETITIVE ADVANTAGE
Most management teams will invest in Crisis Avoidance and Crisis Readiness consulting as cost-efficient insurance against the catastrophic losses that a crisis can cause. However, a new paradigm is shaping – one that recognizes the potential competitive advantage of presenting to the marketplace a company built on a foundation of credibility and communication that inspires confidence. Customers/clients don’t buy products or services. They choose. The curtain that once separated product from company is lifting, adding new information that influences the choices consumers/clients make every day.

The new century will be won by management teams that understand this new paradigm – that credibility is the ultimate product benefit – that investing in building and communicating credibility is this century’s marketing powertool.

6. A.R.M.E.D. FOR ANY CRISIS
While Crisis Avoidance is the ultimate goal, sometimes a crisis cannot be prevented. It just happens. Smith O’Keefe and ICM have developed proprietary Crisis Readiness planning tools to assist management in preparing the entire organization to respond with speed, flexibility and an organized purpose to minimize the impact of the crisis, and return the organization to productive capacity as quickly and cost-efficiently as possible. In addition, Smith O’Keefe and ICM have the expertise and experience to assist in managing the internal minute-by-minute responsiveness needed to deal effectively with fast-breaking crisis as it happens.

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