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Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

<strong>Flame</strong> <strong>war</strong> <strong>man<strong>age</strong>ment</strong>:<br />

<strong>handl<strong>in</strong>g</strong> <strong>crises</strong> <strong>in</strong> <strong>the</strong><br />

<strong>social</strong> <strong>media</strong> <strong>age</strong><br />

<strong>Flame</strong> <strong>war</strong>s represent <strong>crises</strong> of <strong>the</strong> <strong>social</strong> <strong>media</strong><br />

<strong>age</strong> and have become a regular occurrence.<br />

Consumers have realized that with web 2.0<br />

<strong>the</strong>y are on an equal foot<strong>in</strong>g with companies<br />

and organizations. Increas<strong>in</strong>gly, <strong>the</strong>refore, <strong>the</strong>y<br />

are turn<strong>in</strong>g to <strong>the</strong> <strong>social</strong> web to apply pressure<br />

on issues that <strong>the</strong>y feel strongly about. The<br />

result<strong>in</strong>g network effects can rapidly develop<br />

<strong>in</strong>to a flame <strong>war</strong>, which can affect anyone. This<br />

article exam<strong>in</strong>es what precautions organizations<br />

can take to limit <strong>the</strong> potential dam<strong>age</strong>.<br />

54<br />

Volume 7 │ Issue 3


Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

Author<br />

Holger Kayser<br />

Executive Director, Advisory Services —<br />

Performance Improvement, EY, Germany<br />

Stephan Salmann<br />

Partner, Advisory Services — Performance<br />

Improvement, EY, Germany<br />

Christian Bartels<br />

Senior Consultant, Advisory Services —<br />

Performance Improvement,<br />

EY, Germany<br />

55


Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

<strong>Flame</strong> <strong>war</strong> <strong>man<strong>age</strong>ment</strong>: <strong>handl<strong>in</strong>g</strong> <strong>crises</strong> <strong>in</strong> <strong>the</strong> <strong>social</strong> <strong>media</strong> <strong>age</strong><br />

While <strong>social</strong> <strong>crises</strong><br />

can be <strong>in</strong>stigated by<br />

o<strong>the</strong>r parties, more<br />

commonly <strong>the</strong>y stem<br />

from <strong>the</strong> organization<br />

itself.<br />

flame <strong>war</strong> is a chorus of<br />

outr<strong>age</strong> on <strong>the</strong> <strong>in</strong>ternet.<br />

A relatively large number<br />

of critical comments are<br />

directed at <strong>in</strong>dividuals,<br />

<strong>in</strong>stitutions, products or<br />

brands. At least some of <strong>the</strong>se comments<br />

deviate from <strong>the</strong> orig<strong>in</strong>al topic and are<br />

aggressive, <strong>in</strong>sult<strong>in</strong>g, menac<strong>in</strong>g or attacks<br />

of ano<strong>the</strong>r form. 1 Apart from companies<br />

and <strong>in</strong>dividuals, political parties and o<strong>the</strong>r<br />

public entities can also be affected. It is<br />

irrelevant whe<strong>the</strong>r <strong>the</strong> target of <strong>the</strong> outcry<br />

is active on <strong>social</strong> <strong>media</strong>. In fact, <strong>the</strong> refusal<br />

of those parties, who can potentially be<br />

affected, to be active <strong>in</strong> <strong>the</strong> <strong>social</strong> network<br />

environment fur<strong>the</strong>r fans <strong>the</strong> flames.<br />

The basic phenomenon is noth<strong>in</strong>g new.<br />

Well before <strong>the</strong> <strong>in</strong>ternet, cries of protest<br />

have been forcefully and effectively made.<br />

The difference is that, <strong>in</strong> <strong>the</strong> present day,<br />

Web 2.0 comb<strong>in</strong>ed with <strong>social</strong> <strong>media</strong> act as<br />

catalysts lead<strong>in</strong>g to a situation where even<br />

<strong>the</strong> most mundane of topics can receive<br />

a high level of attention. The tighter <strong>the</strong><br />

participants’ network is, <strong>the</strong> greater <strong>the</strong><br />

speed and reach of <strong>the</strong> wave of protest.<br />

Users of <strong>social</strong> networks display <strong>the</strong> feared<br />

substitution of cognitive effects with<br />

network effects: a “like” is quick to post; <strong>the</strong><br />

critical assessment of a topic takes longer,<br />

particularly with emotionally loaded topics. 2<br />

What are <strong>the</strong> common causes?<br />

While <strong>social</strong> <strong>crises</strong> can be <strong>in</strong>stigated by<br />

o<strong>the</strong>r parties, more commonly <strong>the</strong>y stem<br />

from <strong>the</strong> organization itself: for example,<br />

<strong>in</strong>appropriate behavior of employees,<br />

negative customer experiences, <strong>in</strong>adequate<br />

care of customers and <strong>in</strong>fluencers, violation<br />

of ethical pr<strong>in</strong>ciples, along with apparent<br />

<strong>in</strong>justices and <strong>in</strong>appropriate reactions. 3<br />

<strong>Flame</strong> <strong>war</strong>s that have been <strong>in</strong>itiated with<br />

a strategic background, such as attacks on<br />

non-governmental organizations (NGOs) or<br />

deliberate falsifications, can cause major<br />

dam<strong>age</strong> due to <strong>the</strong>ir systematic nature.<br />

The six phases of a flame <strong>war</strong><br />

crisis<br />

The normalized course of a crisis (see<br />

Figure 1) is divided <strong>in</strong>to six phases:<br />

1. Calm<br />

2. Breeze<br />

3. Strong breeze<br />

4. Storm<br />

5. Hurricane<br />

6. Post-critical phase<br />

Seventy percent of all <strong>social</strong> <strong>media</strong> <strong>crises</strong><br />

have <strong>the</strong>ir source ei<strong>the</strong>r <strong>in</strong> a Tweet (53%)<br />

or Facebook post (17%). 4 Dependent on<br />

<strong>the</strong> reach and reputation of <strong>the</strong> author, <strong>the</strong><br />

langu<strong>age</strong> used, <strong>the</strong> credibility, <strong>the</strong> potential<br />

for emotionalism or <strong>the</strong> relevance of <strong>the</strong><br />

content, networked users will seize on<br />

an article and retweet it. Phase 1 (calm)<br />

develops to phase 2 (breeze).<br />

Dependent on <strong>the</strong> level of outr<strong>age</strong>, <strong>the</strong><br />

topic will be seized upon by o<strong>the</strong>r <strong>media</strong><br />

such as Facebook, blogs and o<strong>the</strong>r <strong>social</strong><br />

networks — gale force (phase 3) has been<br />

reached. If <strong>the</strong> affected parties are active<br />

on <strong>social</strong> <strong>media</strong>, <strong>the</strong>y will be <strong>in</strong>formed about<br />

current developments. The crisis becomes a<br />

storm when classic or onl<strong>in</strong>e <strong>media</strong> pick up<br />

<strong>the</strong> topic.<br />

56<br />

Volume 7 │ Issue 3


Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

Normalized course of a <strong>social</strong> <strong>media</strong> crisis<br />

Figure 1. Normalized course of a <strong>social</strong> <strong>media</strong> crisis<br />

Impact or reach<br />

Moderate<br />

<strong>social</strong> <strong>media</strong><br />

activity <strong>in</strong><br />

just one<br />

channel<br />

Extensive<br />

<strong>social</strong> <strong>media</strong><br />

activity<br />

across many<br />

channels<br />

Extensive<br />

onl<strong>in</strong>e <strong>media</strong><br />

cover<strong>age</strong><br />

Full <strong>media</strong> cover<strong>age</strong><br />

<strong>in</strong>clud<strong>in</strong>g onl<strong>in</strong>e, offl<strong>in</strong>e,<br />

television and radio<br />

Phase 1:<br />

calm<br />

Phase 2:<br />

breeze<br />

Phase 3:<br />

strong<br />

breeze<br />

Phase 4:<br />

storm<br />

Phase 5:<br />

hurricane<br />

Time<br />

Phase 6:<br />

post-critical phase<br />

Impact or reach Tipp<strong>in</strong>g po<strong>in</strong>ts: change of <strong>media</strong> Exit strategies<br />

Source: Author’s own.<br />

The penetration reaches exponential<br />

values <strong>in</strong> phase 4, caused by <strong>the</strong> renewed<br />

take up of <strong>the</strong> topic across <strong>social</strong> networks.<br />

The flame <strong>war</strong> reaches a f<strong>in</strong>al peak <strong>in</strong> phase<br />

5 (hurricane) when offl<strong>in</strong>e <strong>media</strong> such as<br />

daily newspapers and television channels<br />

take up <strong>the</strong> topic. In <strong>the</strong> post-critical phase<br />

6, <strong>the</strong> storm recedes after all <strong>the</strong> hype.<br />

Measur<strong>in</strong>g <strong>the</strong> dam<strong>age</strong><br />

Loss of reputation or dam<strong>age</strong> to an<br />

organization’s public im<strong>age</strong> can have farreach<strong>in</strong>g<br />

consequences, while a weaken<strong>in</strong>g<br />

or reduced confidence <strong>in</strong> <strong>the</strong> brand can<br />

be observed <strong>in</strong> almost every flame <strong>war</strong>.<br />

However, <strong>the</strong> overall effect is difficult to<br />

measure f<strong>in</strong>ancially, for example, <strong>in</strong> terms<br />

of lost revenues.<br />

Sometimes, quantifiable material<br />

dam<strong>age</strong> can be more easily identified. For<br />

example, a company’s share price could<br />

suffer a significant fall <strong>in</strong> <strong>the</strong> millions of<br />

dollars as a direct result of one <strong>in</strong>dividual’s<br />

very poor customer experience be<strong>in</strong>g made<br />

public. Or <strong>the</strong> f<strong>in</strong>ancial dam<strong>age</strong> could be <strong>in</strong><br />

<strong>the</strong> form of lost bus<strong>in</strong>ess or contracts due<br />

to an <strong>in</strong>ternal <strong>man<strong>age</strong>ment</strong> issue be<strong>in</strong>g<br />

brought to <strong>the</strong> attention of consumers<br />

worldwide.<br />

1. How to survive a shit storm, presentation by Sascha Lobo at<br />

re:publica 2010, https://www.youtube.com/watch?v=-<br />

OzJdA-JY84, accessed May 2015.<br />

2. How to survive a shit storm, presentation by Sascha Lobo at<br />

re:publica 2010, https://www.youtube.com/watch?v=-<br />

OzJdA-JY84, accessed May 2015.<br />

3. Social Bus<strong>in</strong>ess Read<strong>in</strong>ess, How Advanced Companies<br />

Prepare Internally, Altimeter Group, 2011, http://www.<br />

slideshare.net/jeremiah_owyang/<strong>social</strong>-read<strong>in</strong>ess-howadvanced-companies-prepare,<br />

accessed May 2015.<br />

4. The Epicenters of Social Media Crises, Christian Faller, 2012,<br />

http://visual.ly/epicenters-<strong>social</strong>-<strong>media</strong>-<strong>crises</strong>, accessed May<br />

2015.<br />

57


Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

<strong>Flame</strong> <strong>war</strong> <strong>man<strong>age</strong>ment</strong>: <strong>handl<strong>in</strong>g</strong> <strong>crises</strong> <strong>in</strong> <strong>the</strong> <strong>social</strong> <strong>media</strong> <strong>age</strong><br />

Exit strategies<br />

The speed of identification and reaction<br />

to a potential crisis can have a decisive<br />

effect on its overall impact. In an optimal<br />

situation, potentially critical articles would<br />

be recognized early and stemmed by<br />

specific measures. The exponential leaps<br />

<strong>in</strong> <strong>the</strong> phases can be counteracted. Various<br />

options are available at each phase of <strong>the</strong><br />

flame <strong>war</strong> that would enable an appropriate<br />

response, for example, <strong>the</strong> extension of<br />

call center employees’ authority, mobiliz<strong>in</strong>g<br />

external bloggers and <strong>in</strong>fluencers or an<br />

early apology from <strong>the</strong> responsible party or<br />

parties.<br />

Rapid, au<strong>the</strong>ntic and honest answers<br />

from all employees at <strong>the</strong> customer contact<br />

po<strong>in</strong>t are essential, but require dedicated<br />

tra<strong>in</strong><strong>in</strong>g.<br />

The real skill is <strong>in</strong> <strong>the</strong> differentiation<br />

between a storm <strong>in</strong> a tea cup (i.e.,<br />

someth<strong>in</strong>g that will pass unnoticed) and a<br />

flame <strong>war</strong> that impacts <strong>the</strong> company. The<br />

right decision, and <strong>the</strong> use of appropriate<br />

means at <strong>the</strong> right po<strong>in</strong>t <strong>in</strong> time, is <strong>the</strong> most<br />

effective de-escalation for <strong>crises</strong> <strong>in</strong> <strong>the</strong><br />

<strong>social</strong> <strong>media</strong> <strong>age</strong>.<br />

Prepare <strong>the</strong> organization<br />

The first step <strong>in</strong> professional flame <strong>war</strong><br />

<strong>man<strong>age</strong>ment</strong> is to protect <strong>the</strong> organization<br />

such that know<strong>in</strong>g how to deal with a<br />

potential crisis becomes engra<strong>in</strong>ed <strong>in</strong> <strong>the</strong><br />

corporate culture. This beg<strong>in</strong>s with rais<strong>in</strong>g<br />

employees’ a<strong>war</strong>eness and <strong>in</strong>troduc<strong>in</strong>g<br />

clear guidel<strong>in</strong>es for <strong>the</strong>m to follow. Relevant<br />

processes must be adapted and topics<br />

critical to <strong>the</strong> company analyzed <strong>in</strong> depth so<br />

that all risk areas are identified.<br />

Crisis multipliers<br />

<strong>in</strong> <strong>social</strong> networks<br />

► Communication is happen<strong>in</strong>g <strong>in</strong><br />

real time.<br />

► Network effects replace cognitive<br />

effects, i.e., it’s too easy to post<br />

comments to <strong>the</strong> network that are<br />

based on first impressions ra<strong>the</strong>r<br />

than considered assessment.<br />

► Stakeholders are on a level<br />

foot<strong>in</strong>g with <strong>the</strong> target<br />

organizations.<br />

► The nature of <strong>social</strong> <strong>media</strong><br />

means that speed, penetration,<br />

simplicity and transparency help<br />

accelerate a crisis.<br />

► Consumers are prosumers.<br />

► There are high numbers of new<br />

participants with an aff<strong>in</strong>ity for<br />

onl<strong>in</strong>e <strong>media</strong> (referred to as<br />

digital natives).<br />

► Exceptional amounts of<br />

<strong>in</strong>formation are publicly available.<br />

At <strong>the</strong> same time, <strong>the</strong> company needs<br />

to identify basel<strong>in</strong>e measurements<br />

and risk assessments for <strong>the</strong> potential<br />

endangerment of <strong>the</strong> organization, its<br />

products and its employees. The current<br />

state can be evaluated and documented by<br />

apply<strong>in</strong>g techniques such as a strengths,<br />

weaknesses, opportunities and threats<br />

analysis (SWOT) or a failure mode and<br />

effects analysis (FMEA).<br />

Based on <strong>the</strong>se analyses, preventive<br />

measures can be developed and a<br />

cont<strong>in</strong>gency plan created or exist<strong>in</strong>g<br />

cont<strong>in</strong>gency plans can be amended.<br />

The processes described must be<br />

embedded <strong>in</strong> <strong>the</strong> organization and <strong>the</strong><br />

relevant responsibilities, which often need<br />

to be extended, def<strong>in</strong>ed.<br />

In <strong>the</strong> next step, a flame <strong>war</strong> knowledge<br />

base should be created and built that will<br />

be fed with all possible countermeasures.<br />

In <strong>the</strong> case of a crisis, it will support<br />

employees <strong>in</strong> mak<strong>in</strong>g balanced decisions.<br />

All <strong>social</strong> <strong>media</strong> channels used by <strong>the</strong><br />

organization should be prepared with<br />

potential content for use <strong>in</strong> <strong>the</strong> event of<br />

an emergency. Rapid access to fur<strong>the</strong>r<br />

channels should be ensured, <strong>in</strong> case <strong>the</strong>se<br />

also need to be employed.<br />

External forces to help <strong>in</strong> a crisis<br />

situation, such as bloggers and <strong>social</strong><br />

<strong>media</strong> editors, can be briefed up front<br />

and agreement secured that <strong>the</strong>y will be<br />

available on call.<br />

58 Volume 7 │ Issue 3


Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

Tools — it won’t work o<strong>the</strong>rwise<br />

An early <strong>war</strong>n<strong>in</strong>g system is core to<br />

professional flame <strong>war</strong> <strong>man<strong>age</strong>ment</strong>.<br />

Comprehensive monitor<strong>in</strong>g forms<br />

<strong>the</strong> foundation, as <strong>in</strong> all <strong>social</strong> <strong>media</strong><br />

measurement activities. The source set<br />

should not just <strong>in</strong>clude <strong>the</strong> usual <strong>social</strong><br />

<strong>media</strong> channels but must conta<strong>in</strong> <strong>the</strong><br />

Twitter Firehose. 5 However, <strong>the</strong> API 6 that is<br />

generally available — <strong>the</strong> Gardenhose — only<br />

delivers 10% of all possible Twitter posts.<br />

This means that, dur<strong>in</strong>g an emergency,<br />

<strong>the</strong> feared storm could be brew<strong>in</strong>g but its<br />

full force undetected because monitor<strong>in</strong>g<br />

via <strong>the</strong> Gardenhose is only giv<strong>in</strong>g <strong>in</strong>itial<br />

<strong>in</strong>dications.<br />

Efficient automated analysis tools are<br />

<strong>in</strong>dispensable. Such tools provide structure<br />

to <strong>the</strong> o<strong>the</strong>rwise unstructured data<br />

obta<strong>in</strong>ed dur<strong>in</strong>g monitor<strong>in</strong>g and allow <strong>the</strong><br />

organization to process that data. Modern<br />

tools are able to achieve standardization<br />

through root word formation, spell<strong>in</strong>g<br />

correction and acronym conversion. Clauses<br />

are separated and entities such as volumes,<br />

units of measure or characteristics are<br />

automatically s<strong>in</strong>gled out.<br />

Rapid, au<strong>the</strong>ntic and<br />

honest answers from<br />

all employees at <strong>the</strong><br />

customer contact<br />

po<strong>in</strong>t are essential,<br />

but require dedicated<br />

tra<strong>in</strong><strong>in</strong>g.<br />

5. Firehose is <strong>the</strong> name given to <strong>the</strong> enormous volume of<br />

real-time Tweets that flow from Twitter each day. Access to<br />

this firehose can be obta<strong>in</strong>ed from Twitter.<br />

6. API is <strong>the</strong> Application Programm<strong>in</strong>g Interface. It allows<br />

external developers to develop technology that rely on data<br />

from a specific source, <strong>in</strong> this <strong>in</strong>stance, Twitter.<br />

The l<strong>in</strong>guistic analysis available us<strong>in</strong>g<br />

part-of-speech tagg<strong>in</strong>g (POST) offers<br />

enormous evaluation potential. POST is<br />

soft<strong>war</strong>e that reads text and assigns a tag<br />

to each word based on its categorization as,<br />

for example, a noun, verb or adjective. With<br />

this preprocess<strong>in</strong>g, <strong>the</strong> essential semantic<br />

analysis ga<strong>in</strong>s a stronger foundation and<br />

expression than <strong>the</strong> usual monitor<strong>in</strong>g tools<br />

that rely on lists of key words.<br />

Apart from <strong>the</strong> quantitative analysis, a<br />

powerful tool must also be able to provide<br />

<strong>the</strong> qualitative classification, group<strong>in</strong>g and<br />

visualization of <strong>the</strong> results. In advance of a<br />

crisis, no one can say which terms will be<br />

relevant. But through <strong>the</strong> automatic output<br />

of clusters and <strong>the</strong> def<strong>in</strong>ition of thresholds,<br />

spontaneous alarms can be generated for<br />

terms that are not <strong>in</strong> <strong>the</strong> monitor<strong>in</strong>g set.<br />

The consequence is a significant speed<br />

advant<strong>age</strong> <strong>in</strong> a flame <strong>war</strong>.<br />

Individually tailored dashboards and<br />

cockpits form <strong>the</strong> communication center<br />

of <strong>the</strong> early <strong>war</strong>n<strong>in</strong>g system. Moreover,<br />

by apply<strong>in</strong>g monitor<strong>in</strong>g and analytics, it is<br />

possible to identify Influencers <strong>in</strong> order to<br />

directly communicate with <strong>the</strong>m. Similarly,<br />

it is conceivable to recruit and acquire<br />

an unpaid “army,” which can be asked to<br />

support <strong>in</strong> <strong>the</strong> event of a crisis.<br />

None<strong>the</strong>less, <strong>in</strong> order to be prepared for<br />

<strong>the</strong> emergency, it is strongly recommended<br />

to provide regular tra<strong>in</strong><strong>in</strong>g and perform fire<br />

drills, i.e., practice drills, with all <strong>in</strong>volved<br />

parties <strong>in</strong> <strong>the</strong> organization.<br />

59


Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

<strong>Flame</strong> <strong>war</strong> <strong>man<strong>age</strong>ment</strong>: <strong>handl<strong>in</strong>g</strong> <strong>crises</strong> <strong>in</strong> <strong>the</strong> <strong>social</strong> <strong>media</strong> <strong>age</strong><br />

Figure 2. <strong>Flame</strong> <strong>war</strong> <strong>man<strong>age</strong>ment</strong> <strong>in</strong> a closed loop<br />

<strong>Flame</strong> <strong>war</strong> <strong>man<strong>age</strong>ment</strong> <strong>in</strong> a closed loop<br />

Prepare <strong>the</strong><br />

organization<br />

Undertake<br />

post-crisis<br />

analysis<br />

Initiate<br />

countermeasures<br />

Forecast <strong>the</strong><br />

potential impact<br />

Assess <strong>the</strong><br />

organization’s<br />

position<br />

The right decision, and <strong>the</strong> use of appropriate<br />

means at <strong>the</strong> right po<strong>in</strong>t <strong>in</strong> time, is <strong>the</strong> most<br />

effective de-escalation for <strong>crises</strong> <strong>in</strong> <strong>the</strong> <strong>social</strong> <strong>media</strong><br />

<strong>age</strong>.<br />

Detection and prognosis<br />

If an alert is raised as a result of <strong>the</strong><br />

monitor<strong>in</strong>g activity, an <strong>in</strong>dividual<br />

assessment of <strong>the</strong> situation is necessary.<br />

The alert can be prompted by, for example,<br />

a previously def<strong>in</strong>ed growth rate for certa<strong>in</strong><br />

clusters or a predef<strong>in</strong>ed blacklist of words.<br />

Typically, blacklists are used but we favor<br />

<strong>the</strong> addition of growth rates, i.e., we look<br />

for words or word comb<strong>in</strong>ations where <strong>the</strong><br />

growth of hits on <strong>social</strong> networks is faster<br />

and higher than <strong>the</strong> aver<strong>age</strong>. The reason<br />

why we recommend monitor<strong>in</strong>g growth<br />

rates is that no one is able to predict <strong>the</strong><br />

future and so nobody knows which words<br />

or word comb<strong>in</strong>ations will cause problems,<br />

so every fast-grow<strong>in</strong>g topic should be<br />

analyzed.<br />

Initially, a review takes place to<br />

determ<strong>in</strong>e if <strong>the</strong> object that caused <strong>the</strong><br />

alarm is <strong>in</strong> fact a “flame.” The ensu<strong>in</strong>g<br />

identification of <strong>the</strong> source is ei<strong>the</strong>r<br />

performed by ma<strong>the</strong>matical <strong>in</strong>terpolation<br />

or by phase identification, apply<strong>in</strong>g tipp<strong>in</strong>g<br />

po<strong>in</strong>ts and phase descriptions.<br />

60 Volume 7 │ Issue 3


Buyer-supplier collaboration<br />

When recession takes hold, <strong>the</strong>re’s safety<br />

<strong>in</strong> numbers<br />

Merg<strong>in</strong>g <strong>the</strong> real and virtual world<br />

Why, and how, companies should def<strong>in</strong>e <strong>the</strong>ir<br />

digital strategy<br />

Volume 7 │ Issue 3<br />

Provid<strong>in</strong>g <strong>in</strong>sight and analysis for bus<strong>in</strong>ess professionals<br />

This article is an extract from Performance, Volume 7, Issue 3, August 2015. The full journal is available at<br />

ey.com/performance<br />

A fur<strong>the</strong>r decisive factor is <strong>the</strong> flame<br />

<strong>war</strong> prognosis. First and foremost comes<br />

<strong>the</strong> question of what can be expected <strong>in</strong><br />

terms of reach and latency. The important<br />

questions such as “who posted what and<br />

where, with which facts and <strong>in</strong> which<br />

tonality” can be clarified with <strong>the</strong> help<br />

of professional analysis tools. Important<br />

factors such as credibility, relevance or<br />

potential for emotionalism can be analyzed<br />

<strong>in</strong> a semiautomatic fashion. These factors<br />

all lead to a reliable storm prognosis. The<br />

stronger <strong>the</strong> characteristics are, <strong>the</strong> greater<br />

<strong>the</strong>ir effect on <strong>the</strong> future course of <strong>the</strong><br />

flame <strong>war</strong>.<br />

Crisis <strong>man<strong>age</strong>ment</strong> and<br />

countermeasures<br />

Assessment of <strong>the</strong> measures depends<br />

on <strong>the</strong> identified location and <strong>the</strong> storm<br />

prognosis. If <strong>the</strong> factors <strong>in</strong>dicate a flame<br />

<strong>war</strong> is likely, an automatic situation<br />

assessment appears <strong>in</strong> <strong>the</strong> cockpit. Options<br />

for action, rang<strong>in</strong>g from fur<strong>the</strong>r observation<br />

to a statement from <strong>the</strong> CEO, toge<strong>the</strong>r with<br />

a selection from <strong>the</strong> pack<strong>age</strong> of measures<br />

are displayed.<br />

Follow<strong>in</strong>g <strong>the</strong>se recommendations, it is<br />

possible to detect and react accord<strong>in</strong>gly and<br />

professionally with support from <strong>the</strong> tools<br />

mentioned.<br />

Post-crisis <strong>man<strong>age</strong>ment</strong>: after<br />

<strong>the</strong> storm is before <strong>the</strong> next<br />

storm<br />

Every flame <strong>war</strong> should be seen as a rare<br />

opportunity to sharpen a company’s profile.<br />

Extensive vulnerability analyses, along with<br />

SWOT or FMEA analyses, will assist any<br />

organization <strong>in</strong> be<strong>in</strong>g able to react better to<br />

future <strong>crises</strong>.<br />

The output from all of this analysis<br />

should lead to <strong>the</strong> sett<strong>in</strong>g of <strong>in</strong>tegrated<br />

measures and recommendations for action.<br />

The results should be stored <strong>in</strong> <strong>the</strong> flame<br />

<strong>war</strong> knowledge base, created as part of<br />

prepar<strong>in</strong>g <strong>the</strong> organization, mentioned<br />

earlier <strong>in</strong> this article. By follow<strong>in</strong>g this<br />

approach, <strong>the</strong> organization will f<strong>in</strong>d it is able<br />

to react quickly and appropriately.<br />

Positive side effects<br />

It is worth keep<strong>in</strong>g <strong>in</strong> m<strong>in</strong>d that a flame <strong>war</strong><br />

can have positive side effects. As <strong>the</strong> reach<br />

and prom<strong>in</strong>ence of <strong>the</strong> object <strong>in</strong> question<br />

grows, so do <strong>the</strong> number of fans and<br />

followers on <strong>the</strong> <strong>social</strong> networks.<br />

Professional flame <strong>war</strong> <strong>man<strong>age</strong>ment</strong>,<br />

as described here, also delivers valuable<br />

<strong>in</strong>formation on customers, products and<br />

markets that can be used <strong>in</strong> a variety of<br />

ways across <strong>the</strong> whole company. •<br />

All <strong>social</strong> <strong>media</strong><br />

channels used by <strong>the</strong><br />

organization should<br />

be prepared with<br />

potential content for<br />

use <strong>in</strong> <strong>the</strong> event of an<br />

emergency.<br />

61

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