Thursday, April 29, 2010

HarperCollins and the iPad

Real-World Applications for the Chaos Theory

I think the chaos theory was one of the most challenging aspects that I have ever encountered in my public relations education here at Quinnipiac University. What was even more challenging, however, is its real-life application in strategically handling crisis communications.

Much of the process book publicity and promotions relies on inconsistent means to spread information an interest in a title. Someone recommending a book to a neighbor; a book-club getting word of an interesting new summer read, etc. Also, getting newspaper or periodical coverage is also a very inconsistent process. It can therefore be true that just as publicity and hype for a title can happen in complicated, almost random patters, so too can crisis surrounding a book.

One example of this chaotic crisis is found in the Yale University Press’ publication of Jytte Klausen’s book “The Cartoons that Shook the World,” a look at the illustrations of Mohammad that incited a great deal of anger in the Muslim world. The crisis surrounding this book was Yale Press’ decision to remove the cartoons, which was seen as a cowardly act by many in the media. The decision was made in October 2008, two weeks before the book’s publication. And the subsequent public outcry resonated for weeks.

The coverage again picked up around Ramadan, and again after a suicide bombing in Afghanistan. And again after a Christmas-time al-Qaida threat. Discussion about the cartoons and criticism of Yale University Press was reignited any time some there was news of some disconnected event involving Muslims or Islamic Jihad. This is an orbiting sort of pattern that explains why the crisis happens in random, yet cyclical intervals. Though the triggers are random and unpredictable, the consequences are usually similar each time.

This pattern might also be expected with any of HarperCollins’ controversial books. For instance, it is soon publishing an autobiography by the polarizing figure Sarah Palin, and I would not be half surprised it experiences criticism for that book in the same design (albeit more civilly) that Yale Press received criticism over withholding the cartoons.

Why Evaluate?

According to our textbook, post-crisis analysis is one of the most important features of a crisis communications plan because it provides a chance for a company to assess what went wrong with a plan, what worked effectively and what changes have to be made in order to prepare for the next crisis. It is probably most effective to examine the benefits of post-crisis analysis by using a real example, and creating a fictitious example for HarperCollins.

First, the real example (though it should be noted that in order to protect the reputation of the firm, all names and locations have been changed). In this example, GICO, a small credit union in western Ohio had a crisis in which a person held up the bank and took the employees as hostages for several hours. The proper authorities were called and the situation grew very tense. Eventually, the situation was diffused and the hostages were released. After the event, however, the local newspaper was flooded with letters criticizing the bank’s handling of the situation.

In the process of post-crisis analysis, it was revealed that the bank failed to communicate with several key publics during the hold-up. First, though it notified the police, which, in turn, notified the media, no bank spokesman ever made a public statement during or after the incident. Also, the bank did not attempt to contact the families of those employees trapped inside. These steps were written into an updated crisis communication plan after they were discovered in the review.

A possible example for HarperCollins might occur after handling a plagiarism accusation crisis. It is possible that a publisher, like HarperCollins, might make some mistakes in handling the intense media pressure surrounding allegations of plagiarism. They might be quick to defend an author from the criticism in the hopes that the situation would pass quickly. If the author did, in deed, plagiarize though, the crisis will probably be prolonged. Upon review, HarperCollins might find that conducting its own internal investigation might be a worthwhile step to take before defending an author accused of plagiarism.

If it went all wrong

In class we have been learning a lot about streamlining communications in times of crisis, so I ended up trying to imagine the different bad scenarios that HarperCollins could experience if it failed to follow proper communications procedures.
First, I should list three of the crisis rules of communication with which we have been dealing all semester.
1. Appoint a single company spokesman
2. Craft company message theme and stick to it!
3. Never say “no comment”
These rules are fairly common-sense measures that a company can undertake during crisis times, but how would the failure to use these guidelines hurt HarperCollins?

If the company relaxed its communications policy during a crisis, it would have the possibility of causing untold damage to the publisher’s financials and reputation. Without one unified company voice, various HarperCollins management people (who each would be receiving media inquiries) might confuse facts, misspeak or misrepresent the company to the media. Or, worse yet, lower-level employees might speak, blog or tweet inaccurate or confidential company information. This could lead to lawsuits, author-dissatisfaction and acquisitions-flight. All terrible possible outcomes.

If HarperCollins did not first form a cohesive and comprehensive company position prior to going public on a crisis issue, more havoc would reign. Without a unified, approved company message, a spokesman might give contradictory statements as a result of confusion, forgetfulness or even wavering confidence. This can easily lead to a great deal of public doubt in the management of the company. Though HarperCollins is not, itself, a publicly traded entity, this type of public distrust may even have implications on News Corp. share price.

Lastly, if a HarperCollins spokesman answered media questions with the “no comment” response, it might send the wrong message. In today’s culture, “no comment” is synonymous with corporate cover-up and tactful maneuvering. Instead, the spokesman should be as honest as possible and promise to find the answers to questions that he or she is not able to answer immediately.

These are just some of the possible scenarios that could result if HarperCollins does not follow proper crisis communications procedures. I think that its sterling reputation probably suggests that when crisis arises, the folks communicating on behalf of HarperCollins know what they’re doing.

Wednesday, March 31, 2010

Misprint Podcast

Below is a discussion on the crisis of typos in publishing.

Enjoy!

Wednesday, March 24, 2010

Analytics' Role in Preventing Crises

In previous posts I have discussed the importance of a company’s willingness to engage in some sort of two-way communication with its customers, in addition to its other publics, in order to better understand potential problems and to deal with crisis in an actionable way.
This morning I came across an article about a way that HarperCollins is using a new technology to improve the way it understand and communicate with customers. This analytics technology, provided by Coremetrics Analytics, is sure to be a major element in HarperCollins’ push towards digitalization. Analytics is a fairly new way of gathering complete and accurate information about a company’s clientele and applying it in order to tailor messages specifically to appropriate audiences and market more efficiently.
HarperCollins’ Senior Vice President of Global Author Services, Carolyn Pittis, seemed very enthusiastic about the prospect of analytics streamlining the company’s push towards full digitalization of its content.
“With Coremetrics' help, we have now upgraded our ability to see consumer interactions with our global websites in new more actionable ways. This ensures we can provide the best available engagement information and context to our publishing groups and to the authors they serve.”
In class, one of our main focuses has been on assessing a company’s prospective landscape in a way that can actively work to prevent crisis. It seems that HarperCollins is making strides towards this objective by employing this new technology to better understand the needs of their customer base and using that information to formulate a more effective communication plan.

Monday, March 1, 2010

Avoiding disaster: a new look at minimizing the risk of crises

When most of us think of crisis in the publishing field we immediately think of the impending financial doom caused by the transition to newer forms of electronic media such as the Internet, television and even e-books. In fact, in a quick Google search for the phrase “crisis in publishing,” the results list dozens of sites dedicated to extolling the massive financial holes in which many major publishers, including Harper Collins, finds themselves.

But under the standard definition of crisis (being a low probability, high risk unpredictable event), I cannot label these financial quandaries as crises. When Harper Collins announced a wage freeze in 2008, it was not the result of a crisis, but the result of necessary contraction due to trend-changes in the technology of the field. The collapse in book sales was, in fact, a high-probability event (I use the term event only to conform to the definition, because ‘event’ implies a one-time occurrence). It makes perfect sense given the approach of a wave of new technologies that are slowly making the entire print industry obsolete. The impending demise of publishing was hardly unpredictable.

But one article published in New York Magazine highlights Harper Collin’s interesting new approach to dealing with the decline of the book publishing industry that reforms the business structure of acquisitions rather than the technology.

According to the article, a small division of the large New York-based publisher is focusing on convincing authors to forgoes the traditional blockbuster advances in return for the guarantee to half of the book’s profits.

While this is probably not the saving grace for the publishing industry, it is an excellent example of how Harper Collins is changing in order to reassess and minimize risks. For instance, by avoiding the enormous up-front cost of title acquisition, the publisher essentially insures itself against legitimate crises. Under this model Harper Collins might not face astronomical losses if an author is involved in a scandal shortly after a book’s release. It might even profit.

Although it has not yet reflected reform in the company’s communication during a crisis, this business model acts as a preventative measure, mitigating the damage that most any stakeholder would endure as a result of a crisis.

Wednesday, February 24, 2010

Aiming Frustrations

There seems to be a growing unrest among America’s bibliophiles. And they seem to have voiced their message very clearly; we want e-books.

Now the growing challenge for publishers like Harper Collins is to reconcile this increased demand with an eye for maintaining profitability.

It is no secret that the jury is still out on whether e-books are a blessing or a curse for the publishing industry. On the surface, it seems like a godsend; increasing general interest and convenience in reading while dropping printing-related costs. The dilemma, however, is in the distribution. The nationally dominant book sellers Amazon and Barnes and Noble (and, in a few months, Apple) are involved in their own increasingly heated competition to sell their e-book readers and, subsequently, their own digitally unique versions of e-books. It is this battle that is hurting the business of the publishing companies. As each company jockeys for market position, their demands for low-cost content becomes more and more unreasonable.

Unfortunately, this reluctance to abandon profitability is increasingly being perceived as publisher’s resistance to changing technology; which is going to be one of the most difficult challenges facing the public relations efforts of Harper Collins in the very near future.

There is already some evidence that the growing impatience of consumers waiting for cheap and abundant content is being blamed on the publishers rather than the distributers. For example, one tweet by user Moriajovan that complained a book she was looking for “had the cover on site, but not in ebook file. That's Harper Collins.” Despite her inability to find her desired e-book on a distributer’s website, she assigned the blame to the publisher.

The challenge of addressing these concerns is one of posturing Harper Collins' brand as one that is on the cutting edge of technology. Some ways to accomplish this is by engaging consumers in honest conversation about what content they would most like to see in e-book format, and then working to meet the needs of the greatest number of people.

Because it is becoming increasingly clear that consumers are pinning their frustrations on publishers, Harper Collins should take this opportunity to posture themselves as a leader in the field by being the most in-tune with consumer demands.

Wednesday, February 10, 2010

Technological crises in e-book publishing

In this week's reading, we learned about the different sources of organizational crises. One of the potential external situations which could adversely effect Harper Collins is its ongoing struggle with Amazon over rights to set e-book pricing. This crisis is explored in an article by BNET which suggests that publishers like Harper Collins are succeeding in their efforts to help determine e-book prices.

The obvious category of this crisis is one of technological forces. E-books are an industry innovation that have the potential to ruin book publishers. In this situation, Amazon, a major book wholesaler has used its technological innovation, their Kindle e-book reader, to set e-book prices market-wide. In selling many of their most popular e-books for $9.99, other retailers such as Barnes and Noble are forced to sell for the same low price in order to compete. Being that Amazon and its few e-book competitors have the market cornered, they can easily use their leverage to undervalue the product, much to the chagrin of publishers.

This dispute could be a major source of organizational crisis for a company like Harper Collins for its propensity to rapidly deflate the value of the published product, and thereby cause a great deal of damage to the bottom line.

Fortunately, according to the article, Harper Collins, with its corporate backing by Rupert Murdoch owned News Corp, is one of the publishers that has established the widely used model for author royalties and manuscript acquisitions, and it can use this as leverage against Amazon in its pursuit to compete in its own e-book/reader market, thereby hurting the book market in general.

The outcome of this struggle will be very interesting, and it is something that I will be following closely in the next few months. But it should be noted that while competition driven deflation of e-book prices may look like a good deal for Amazon, its potential to adversely effect those companies which provide the product could be disastrous for Amazon as well.

Sunday, January 31, 2010

Harper Collins

I have chosen to Harper Collins Publishers as the subject of my crisis communications study.

Harper Collins is a New York-based English language publisher,which, as a broad-based publisher, prints genres ranging from fiction, to translation, to classics, to serious non-fiction. The company was founded in 1819 and has published over 20,000 titles.

As an interested student, I will be alertly tracking news developments in relation to Harper Collins brand definition in the publishing field.

Check back soon for in-depth analysis of Harper Collins news as it relates to the information gained in my Crisis Communications class at Quinnipiac University as well as from our textbook, Crisis Communications in the New Strategy Landscape edited by Crandall, Parnell and Spillan (SAGE 2010).

Wednesday, January 20, 2010

Disclaimer

This is a student's blog for Crisis Communication class at Quinnipiac University. As such, I as the author of this blog make no representations as to the accuracy, completeness, currentness, suitability or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries or damages arising from its display or use. All information is provided on an as-is basis. Opinions expressed on this blog are Dan Blanchard"s personal opinions and do not represent the opinion of Quinnipiac University or opinion of the instructor the class.