| N1 Effect: When, faced with perceived health risks, | | | | victim of "The H1N1 Effect." Some elements of |
| consumers make purchasing decisions about a given | | | | preparedness would include: |
| product based on fear, conjecture and media hype | | | | * Closely tracking developments related to the health |
| versus the facts concerning the actual risk. | | | | safety of your products, using expert resources to |
| In the first two years after the term "Swine Flu" was | | | | help you spot early warning signs of risk. |
| used to describe the illness that mutated and jumped | | | | * "What if..." brainstorming involving internal parties and |
| toH1N1 WHO Logo humans from pigs, the U.S. Pork | | | | external experts, the goal being to think through the |
| Industry suffered losses estimated to be in excess of | | | | process you would have to follow to respond should a |
| $5 billion. This despite the reality that what came to be | | | | worst-case scenario occur. |
| known more frequently as H1N1 - partially as a result | | | | * Creating educational materials about your products |
| of the outcries from farmers - cannot be contracted | | | | and/or industry and its health/safety practices that |
| from eating pork. And those loss figures do not, of | | | | could be widely and rapidly disseminated in response |
| course, include either the collateral damage caused to | | | | to the demand that would no doubt be created by an |
| meat retailers and restaurants or comparable figures | | | | "H1N1 Effect" event. |
| from other regions of the world. | | | | * Ensuring that your organization/industry has a very |
| Global reaction to the threat of BSE - most of us | | | | strong online presence that can be used in the |
| know it as "Mad Cow Disease" - was far in excess to | | | | near-term to build a cushion of goodwill and during a |
| the actual threat to humans. | | | | crisis for rapid communication. |
| Have you heard anyone say, during the past year or | | | | * Creating business continuity and crisis |
| two, "I'll never buy anything made in China again" or the | | | | communications plans, with the latter including internal |
| more frequent variation "I'll never eat food containing | | | | and external elements, both B2B and |
| ingredients from China again - or give it to my pets." | | | | direct-to-consumer. |
| Any number of U.S. food recalls, even after | | | | * Ensuring that appropriate personnel are trained to |
| government announcements made it clear that the | | | | use those plans, to include media training and simulation |
| problems impacted or originated from a limited | | | | exercises. |
| geographic area, prompted much more widespread | | | | A lesson learned the hard way by some industries is |
| consumer avoidance until the fear subsided - usually | | | | that you shouldn't rely on the U.S. government or even |
| non-coincidental with the media and blogosphere finding | | | | your own trade organizations to protect your |
| something else to panic about. | | | | reputation and bottom line when the stuff hits the fan. |
| I'm not a psychologist and hence will not try to explain | | | | For weeks after BSE was finally detected in a |
| why people react as they have. As a crisis | | | | U.S.-based cow, I couldn't find a single restaurant |
| management professional, I need only to know that | | | | server, or grocery store employee, who could tell me |
| they have, and will again, demonstrate what I call "The | | | | with certainty that the beef I bought at their locations |
| H1N1 Effect,", which occurs when consumers make | | | | was safe to eat. The government's announcements |
| fear-based irrational decisions about a perceived health | | | | were all in consumer-unfriendly jargon, and the industry |
| risk that wreak extensive financial damage, threaten | | | | associations were completely unprepared despite the |
| organizational and/or brand reputations, and cause | | | | known threat. If they had been prepared to support |
| severe business interruptions. | | | | their distribution chain with messaging that would |
| Knowing this, it is incumbent on crisis managers, | | | | minimize loss of sales, I would have been given a |
| particularly those involved with products which could | | | | reassuring handout right on the scene. |
| potentially impact consumer health and/or safety, to be | | | | The next "H1N1 Effect" is coming. Are you prepared? |
| prepared when their stakeholders could be the next | | | | |