Events
IAGA SUMMIT New York 2017
customers and reputation etc.” Te cyber-attacks can affect websites, hackers can takeover of social media platforms, and employees can steal sensitive data. You can try to protect your infrastructure as vigorously as possible, but protecting your reputation is just as important, and here speed is becoming increasingly important.
One of the things the Torrenzano Group advises its clients to consider is the eight hour digital day. It’s what Richard describes as one of the “real truths of our times,” and which many corporations have yet to understand. One case that illustrates this happened in 2009, when two employees of Dominos Pizza posted a disgusting prank on Youtube. Dominos’ President at the time, Patrick Doyle, responded to the prank within 48 hours with a sincere Youtube apology, decisive action and an impassioned defence of its 100,000 employees. In the old media world, this was a bold, lightning speed reaction to a digital problem, but in the new digital world Doyle was five days late.
women excelled at Yale law school, but received no job offers from the country’s major law firms as would normally be expected, and the reason is that the first result prospective employers saw about these students in Google’s search engine was this message board. So the prospects for these women were digitally assassinated.
Barbara Streisand could have ignored that photograph, she didn’t, she chose to sue for US$50m, which spread it like a dandelion across tens of thousands of websites. It’s the element of ‘wisdom’ that Richard is seeking to underline. It’s not just understanding the technology, it’s understanding what to do and what not to do in these situations, not only due to generational issues, but how these social media platforms work.
Te delay in response to the issue caused United and McDonald’s to fall so far behind the digital discussion that they lost the argument, whereas in the case of the Streisand photograph, inactivity would have been the best course of action. Tese action and non- actions have a dramatic effect on sales, market value and most importantly reputation. And as organisations become increasingly digital-focused, there’s going to be an escalation of this issues facing the near future.
FIRE-FIGHTING OR BEING PRO-ACTIVE? While many companies continue to adopt a fire-
fighting approach to digital attacks, around half of the corporations contacting the Torrenzano Group are doing so pro-actively. “I think corporations are looking what’s happened to their peers and competitors in other industries and they understand that they need to take appropriate action,” states Richard. “Tey understand the need to instigate a top- to-bottom analysis of what they need for their industry, their geography, clients and customers, but they need to also recognise that it’s an internal issue too. While the over 45-50 year olds don’t understand the technology, the under-25s just don’t have the depth and breadth of understanding of the business to know what should or should not be done from a whole host of issues affecting shareholders,
During those two days, thanks to the power of social media, the perpetrators ended up with felony charges, while Dominos faced more than a million disgusted viewers, and a major public relations crisis. In just 12 hours references to it were five of the first 12 results on the first page of Google search for “Dominos.” It was later revealed that the company had learned of the video within hours of its posting, but executives decided not to respond aggressively, hoping the controversy would quiet down.
“In the world of an eight hour digital day, when an issue mounts an assault on a corporate reputation or brand, something that is a real exposure that must be answered, you really have only up to eight hours to get together at least an initial response before a post can go viral,” states Mr. Torrenzano. “You’re probably looking at four to six hours for that response today, in which you have to get together your General Counsel, your CEO and PR team to get the message out. Most corporate organisations and most advisors to these companies are simply not built to operate at a digital speed. And some companies are going to be burned several times before they understand the new timing of this eight hour digital day.”
In relation to Dominos, the company’s stock was affected dramatically as were sales, and they had to mount a major multi-million marketing campaign to fight the negative publicity. “You have to look at this issue and ask how it could affect your business and what you should be doing about it now to protect our brand, company, employees and good name?” says Mr. Torrenzano. “Tere is a difference in all of these issues between management and leadership. In management we control resources, expenditure and actions of our employees. In leadership you have to guide and direct through difficult times. So when you’re dealing with crisis on the Internet you need leadership not management, because management fails to get the right message out, it fails because of a lack of planning; there’s no muscle memory, no drills, no rehearsals. Tese responses take a lot of time and care. It is not a light switch, it can’t be turned off and on in an instant. Tere is no right or wrong answer, which is why companies hire digital firms that have been involved in this digital combat, such as ours.”
In the world of an eight hour digital day, when an issue mounts an assault on a corporate reputation or brand, something that is a
real exposure that must be answered, you really have
only up to eight hours to get together at least an initial
response before a post can go viral. You’re probably
looking at four to six hours for that response today, in which you have to get together your General
Counsel, your CEO and PR team to get the message out. Most corporate
organisations and most
advisors to these companies are simply not built to
operate at a digital speed. And some companies are
going to be burned several times before they
understand the new timing of this eight hour digital day.”
IAGA
The International Association of Gaming Advisors (IAGA) will hold its 36th annual International Gaming Summit May 30-June 1, 2017 at the JW Marriott Essex House, New York, US.
NEWSWIRE / INTERACTIVE /
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