My 12 golden rules in a crisis

Here’s how Rupert and co might have handled things.

Every crisis is different and often a media storm in politics is different from a media storm in the corporate world. But there are some important rules to follow, so here is my check list. See if you think News International has managed to follow any of them so far:

1. Establish a clear decision making operation - UK-wide, or any other region around the world, ideally slightly distant from the ongoing delivery of the business itself. Perhaps News International have done just this but it is currently hard to tell.

2. Identify early on a credible talking head who has been media trained, someone who demonstrates they understand the problem and can roll with the punches - not someone on the defensive.

3. Get good independent advice both PR and legal. If you are in a media storm your decision making will suffer, as will that of others inside the organisation because their jobs are on the line. And ensure that the independent advisers are sufficiently senior to tell the people at the very top of the organisation what to do.

4. If someone/anyone has suffered as a result of your actions, show empathy from the very top of the organisation.

5. If you are door stepped or on camera think in advance about the image - look and sound serious, and be polite. So far James Murdoch with a body guard in a yellow jacket and Rupert Murdoch and Rebecca Wade grinning off to dinner (see point 3 about empathy) have completely failed this test. The best role model? Bill Clinton. He was always polite, always friendly whatever the media storm.

6. The most important rule of all: establish what the truth is; decide how it will be told. Sounds easy but it's mission impossible in most organisations. Ultimately, the truth will get out so establish how you want it to be told and, above all, tell it. Do not allow it to seep out day by day, one painful revelation at a time - this keeps the crisis going.

7. An organisation in a crisis will leak so ensure that communication to all employees comes from the very top -- but assume that every word of it will get out. At the same time ensure highly effective communication with everyone in the company. That way they can become advocates alongside you.

8. There is some merit in doing the opposite of what your instincts tell you, so be more open and accessible, always be polite. There's a case study about a bank in the Netherlands which held daily press conferences. It may sound like madness but it put them back in the driving seat. An open approach would mean saying "yes" immediately to a Select Committee - or indeed offering to do it in advance. An open approach would mean Rupert Murdoch flying into London and asking to meet with Alan Rusbridger to see all the evidence and put his company right immediately. An open approach would be an offer to fund the judicial inquiry, or fund a trust to represent victims in a media storm.

9. Run a parallel investor relations operation and a parallel public affairs operation -- reassurance and communication with "stakeholders" are critical.

10. No-one is indispensible, however much you like them.

11. Most lawyers will tell you to say "no comment". Don't always assume in a media storm that is the right thing to do.

12. Say sorry. Say it quickly and keep saying it.

My guess is that some of this is happening. But many journalists are awful at crisis communications, especially when they are in the storm themselves. It is a very different experience when the microscope is turned on you. When you are in the media spotlight it distorts all rational thought - it is exhausting, feels never ending and all invasive.

Anyone reading this who has been followed by snappers, hustled on their doorstep, comforted loved ones after abuse has been shouted through their letter box or at school, followed everywhere by a motorbike, will know and understand what I am describing - logical decisions or the right decisions are tough in that environment.

Perhaps that explains why, as far as I can see, News International is, contrary to Rupert Murdoch's claims in the Wall Street Journal, struggling to handle this crisis.

Aside from the obvious "don't do it in the first place", have I missed any golden rules out? Please feel free to add some more.

 

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman