In 1982 Tylenol was the most successful over the counter product in the US with over 100 million users. It accounted for 20% of Johnson & Johnson’s yearly profits and was the absolute leader in the profits from that one painkiller alone were enough to put the company in the top half of the Fortune 500 list. Then, out of the blue, somebody replaced Tylenol capsules with cyanide-laced capsules, resealed the bottles, and put them on shelves in Chicago resulting in the deaths of seven people. Johnson & Johnson were faced with the crisis every company dreads – their product, something people trusted, was killing people.
This is not the crisis most companies will face, but it is a great example of the right way to respond to a public relations nightmare and a complete loss of the faith from stakeholders. Sometimes businesses and companies will make the mistake of trying to save face, save a product or to put profits first, and will attempt a cover-up. Cover-ups rarely work in the long term (ask the Catholic Church about this). They result in a total loss of trust and brand reputation damage that is unlikely to ever be reclaimed.
Tylenol launched such a successful response to its crisis that it became the bases for many of the crisis communications strategies developed by researchers over the next 40 years. They asked first “How do we protect people?” and then, “How do we save this product?”. They immediately issued a national press release telling people to avoid all Tylenol and pulled all products off the shelves first in Chicago, where they found two more contaminated bottles, and then the entire United States. They provided a free number to call for advice and kept the community up to date with regular press events. They immediately put a new safety system into production – the “triple safety seal” – educated the public as to its features and value. They had their product back on shelves within six months and over time completely recovered their market share. The entire crisis cost them over $100 million in revenue, but their recovery meant that since 1982 they have consistently made around $300 million a year.
So how can a smaller organisation replicate this successful response to a crisis? It comes down to three simple things.
1. Acknowledge the Crisis Immediately
Your objective here is to take control of the narrative and show accountability. This can be done through a public statement on multiple channels that will reach your stakeholders. This needs to be immediate and thorough. Hiding feels like lying. Share everything you legally can to ensure transparency.
2. Prioritize Public Safety
Demonstrate a commitment to people over profit and over reputation. Your situation may not be one of product deficiency, it may be a problematic person within the organisation – remove and report them if it is in the interest of public safety and let people know you have taken this seriously and acted immediately. Provide clear instructions to affected individuals and collaborate with public authorities to address the crisis.
3. Communicate Regularly and Honestly
Share updates as the situation evolves, even if it means admitting uncertainties. Be honest about the challenges while focusing on solutions and use empathetic and clear language that resonates with your audience.
The main communication lesson that can be learned from Johnson & Johnson, as well as countless other business, NPOs, organisations and individuals over the years is – maintain ethical accountability. Be honest. Be transparent. Put people first and keep them informed. A crisis can be a chance to show your stakeholders who you really are as an organisation and to win their deep respect for your ability to navigate difficult situations.