Anduro Marketing Blog

One of the consultants that we tap for advice related to social media is Doug Lacombe. Doug is a PR professional with a rich background and excellent skills. On top of this he is witty, funny and insightful.  You can learn more about Doug and his company on his website Communicatto and his blog.

A few months ago one of our clients requested that we prepare a workshop on How to Use Social Media in a Crisis. During our preparation and planning for the workshop, Doug described in glowing terms how Michael McCain, President and CEO of Maple Leaf Foods, handled the recall of numerous products due to Listeria contamination in August 2008. Doug explained that not only had McCain’s approach been sensitive and apologetic but McCain used a video on YouTube to reach all stakeholders quickly and directly.

Doug went on to say that in a situation of dire consequences McCain showed solid leadership and used social media to communicate a message brilliantly.

I’m familiar with social media but I couldn’t see the brilliance at first. Doug patiently explained that traditionally, when companies are in a crisis the typical approach is to stall, deny and twist the facts. The brilliance, Doug explained, was McCain’s lightening speed delivery directly to the families, the media and the public. Instead of using a traditional press release McCain posted a video on YouTube and backed up statements on the company’s blog.

I agreed with Doug’s assessment but didn’t think much about the details because I don’t eat cold meats. We held the workshop with our client and they were very pleased with the strategy and technology platforms recommended by Doug. I had learned something and assumed this was the end of it. However, I was soon to find out more about McCain’s phenomenal leadership.

A few weeks after the workshop back when the weather in Calgary was much warmer, Doug and I were having beers on the roof top patio at Broken City. I had invited another friend of mine because I thought the two should meet. Half way through our first beer I brought up the story of Maple Leaf Foods and ask Percival (not his real name) what he thought. Percival” took a rather large swig of beer and replied, “I was there”. That got our attention – Doug and I were stunned and ready to listen.

The events below are my memory of what happened as told by Percival while we gulped cold beer under a hot sun. I must start by saying that this blog post has not been sponsored by anyone. I’m describing what I remember because of my admiration of the strong leadership shown by Michael McCain and his brilliant use of social media.

Early in August of 2008, Maple Leaf Foods received a report from the Canadian government stating that the strain of Listeria that had caused the deaths was confirmed to be from the manufacturing plants owned by Maple Leaf Foods. The people in head office were devastated – nearly everyone was in tears. To complicate matters the regular PR team for Maple Leaf Foods was out of town and not able to help handle the crisis. McCain reached out to his contacts and eventually got in contact with my friend, Percival. McCain described the situation and asked Percival to prepare an approach and meet the next morning.

Percival spent most of the night preparing a strategy and arrived at headquarters the next morning. Percival met McCain who invited him into a room full of executives, advisors and lawyers. McCain gave brief introductions and then asked Percival what he recommended. Percival passed a one page sheet to everyone. McCain started to read the statement out loud eventually read the words, “I am sorry.” Immediately, others in the room started to protest, explaining that this statement couldn’t be published in a press release because the fallout would be disastrous. McCain cut the protesters short and continued reading out loud. He then opened the floor for comments. Predictably, the lawyers argued that saying sorry would be admitting fault and that there would inevitably be an expensive class action suit. Heated discussion ensued without Percival’s input. Eventually, McCain turned to Percival and asked him to explain his rationale. Percival faced the room and asked a question, “How much will a class action suit cost?” The legal team and accountants made quick calculations and estimated that the cost would be in the hundreds of millions. Percival then asked McCain what were Maple Leaf Foods’ annual revenues. McCain replied that revenues were over $5 billion per year. Percival stated that Maple Leaf Foods was going to get sued no matter what approach they took. The issue was how to handle the crisis with the least damage to families, employees and investors.

At this point, Percival set aside the traditional press release and recommended that McCain prepare a video tape of his statement and post it to YouTube. He stressed that Maple Leaf Foods should provide information that was honest, forthright and delivered quickly. In later months Maple Leaf Foods started to use their company blog to reinforce the public statements on YouTube.

McCain’s response to the YouTube suggestion was to ask everyone to leave the room. He then called his videographer to record a statement. The videographer then posted the video on YouTube. You can view the video and McCain’s statement here, http://www.youtube.com/watch?v=cgk3o3AJM2U.

The end result is that Maple Leaf Foods took the high road and paid its dues to families. These actions helped to restore the public’s faith in the company. What more can you ask?

Tags: News Releases, Press Releases, Social Media, Strategy