Two meetings, two gaffes and two resignations.
The Tokyo Olympics and KPMG have found themselves firmly in the media spotlight in the past few weeks after bosses made ill-judged comments.
And the stories have again shown how ‘off-the-cuff’ comments can trigger a media and customer crises.
Let’s start by looking at what has been happening at KPMG.
The UK boss of the auditor initially stepped aside, pending an investigation, and then resigned over comments he reportedly made during a staff Zoom meeting.
Bill Michael reportedly told consultants during the virtual meeting to "stop moaning" about the impact of the pandemic and lockdown on people's lives, and to stop "playing the victim card".
He also went on to say that the concept of unconscious bias was “total crap”.
Around 500 people took part in the meeting. And many of them used an internal app to post their disappointment and anger about the comments and Mr Michael’s dismissal of concerns about potential cuts to staff bonuses, pay and pensions.
Footage of the Zoom meeting was also leaked to the media and the chairman’s comments resulted in extensive coverage.
KPMG chairman told staff to ‘stop moaning’ about work conditions Financial Times
KPMG chief Bill Michael quits after telling “moaning” staff not to “play the victim” over Covid Evening Standard
KPMG boss Bill Michael quits after ‘stop moaning’ row BBC News
As well as the damaging headlines, some of the analysis and comment pieces would have made equally painful reading.
An item in the Daily Telegraph said the “Zoom rant” showed “the auditor chairman remains stuck in the past.”
The Evening Standard said the comments coming from the boss of a company paid to offer advice to others showed the “judgement of a lunatic.”
And the Guardian used the story as the basis of an article arguing that “caring about employees is now cool.”
Having initially said he would be “stepping aside” while an independent investigation was launched into his comments, Mr Michael announced on Friday (12/2) that he would be leaving the company.
In a statement, he said: "I am truly sorry that my words have caused hurt amongst my colleagues and for the impact the events of this week have had on them.
"In light of that, I regard my position as untenable and so I have decided to leave the firm. It has been a privilege to have acted as chair of KPMG."
But Mr Michael is not the only person to find his unguarded remarks putting himself and his organisation in crisis media management mode.
The President of the Tokyo Olympics organising committee has also had to stand down amid public outrage at his comments.
Yoshiro Mori, Japan’s former prime minister, said women “talk too much” and are driven by a “strong sense of rivalry” during a Japanese Olympics Committee meeting.
Those comments were reported across the world, sparking outrage at a time when many were already questioning the feasibility of holding the tournament this year. Yuriko Koike, the governor of the Tokyo Metropolitan Government, described the remarks as a “major issue” for the Olympics and the International Olympics Committee said they were “absolutely inappropriate”. And hundreds of Olympic volunteers said they would withdraw their support.
Additionally, the hashtag "Mori, please resign" trended on Twitter in Japan.
Mr Mori did apologise for his “careless remark” the next day, adding “I had no intention of discriminating against women.”
He initially insisted that he would not resign. But with pressure mounting, including from sponsors and Japanese media, he stepped down a few days later.
Tokyo Olympics chief Yoshiro Mori has resigned over sexist remarks made last week https://t.co/0NLiJGb4BP
— The Times (@thetimes) February 12, 2021
He said: “What is important is to hold the Olympics from July. It must not be the case that my presence becomes an obstacle to that."
Mr Michael and Mr Mori are the latest leaders to add their names to an extensive list of bosses who have found that ill-judged comments have caused significant reputational damage.
It is a list that includes the likes of Gerald Ratner (“Because it’s total crap”), Tony Hayward (“I want my life back”) and Tim Hunt (“The trouble with girls”).
So, what can we learn from these latest examples? And what can you do to minimise the risk of your organisation finding itself at the centre of similar stories?
Internal meetings can be a vulnerability
There can be a feeling that leaders can speak more freely during internal meetings.
But just because journalists are not present, doesn’t mean they will not get to hear what is being said. What happens inside can always make its way outside.
Zoom meetings can easily be recorded and the footage or audio can be subsequently leaked to media.
This is something leaders will need to tread particularly carefully with as they prepare to enter a delicate period – if the vaccine rollout continues at pace - where some will be trying to persuade reluctant and fearful staff to return to the office.
Some employees will, of course, be keen to return, but others will have safety concerns, both in the office and on the commute. Another group will simply prefer the flexibility of home working.
So, these meetings will need to be treated with skill and empathy and leaders will need to choose their words wisely.
And while openness and honesty are crucial, words still matter.
Preparation
With this in mind, it is crucial crisis media management plans are checked and updated. Have you considered whether an internal meeting could cause a crisis? How would you respond?
How quickly would you be able to respond? What would you do if one of your key spokespeople was at the centre of the controversy?
Practise
If your senior leaders are planning on holding meetings with large numbers of employees, it is worth them practising what they will say with their comms team, or a suitably trained colleague, first.
This can help identify anything that could be controversial and potentially difficult questions that could be asked and put the speaker under pressure. If difficult questions are anticipated, plan how to answer them.
Act quickly and apologise properly
If potentially damaging comments made in a meeting get leaked to the media, organisations need to start communicating quickly. Any period of silence will only make the situation worse.
And this should include apologies. Both Mr Michael and Mr Mori did apologise, but neither did it well.
Mr Michael’s email apology to KPMG staff included the line “I know that words matter and I regret the ones I chose to use today”, which suggests that while he did not present his argument well, he does not regret the meaning of what he said.
Mr Mori’s apology lacked remorse and left the impression of being something he felt he should say, rather than something he believed. He even subsequently told a TV channel that “withdrawing my remarks was the fastest way” of moving the story on.
When leaders say sorry, it needs to feel genuine and accept responsibility.
Training
Ok, you might expect us to highlight this one.
But media training and crisis communication skills are transferable and make leaders more aware of the impact of their words, whether they are talking to the media or their people.
And, if they do still make a mistake, those skills will help them to manage the fall out in the media.
Media First are media and communications training specialists with over 30 years of experience. We have a team of trainers, each with decades of experience working as journalists, presenters, communications coaches and media trainers.
Click here to find out more about our practical crisis communication and media training.
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