Corporate crises, PR catastrophes, and customer care conundrums seem to occur all to frequently these days. Maybe my youthful naivety has gotten the better of me, but off the top of my head I can list a slew of corporate hiccups that have occurred in the past two years alone that made more headlines than Avatar. Maybe that’s a good thing (the fact that they get more attention than a 3-D film), but the frequency cannot be healthy. Tiger being dropped by Accenture, and Taylor guitars being dropped by United may not be overly significant in the grand scheme of things, but when the pedal suddenly drops on a Toyota, real damage is done. However, how do these companies pick up the pieces and recover successfully?

First, it is imperative the company resolves the issue immediately – no matter the cost. This may seem like a no-brainer, but Ford didn’t think so when deciding how to handle the infamous Pinto case. For those not familiar with the Ford Pinto, it was a popular compact car built in the 70s that was designed with the gas cap at the rear of the car. Unfortunately, there wasn’t an adequate bumper either, so if one was rear-ended, the gas tank could potentially thrust forward and be punctured by protruding bolts. This would result in fires or explosions. Furthermore, the structure was poorly designed, thus causing the doors to jam if impacted with enough force. These design flaws resulted in 27 deaths, and the nickname “the barbeque that seats four.” Rather than recalling the faulty cars, Ford conducted a cost/benefit analysis and concluded that it would cost more to make a design change ($137 million, or $11/car) than deaths, injuries, and car damages would ($49.5 million). Of course, the implications went much further than strictly the financials, but somehow that was unforeseen at the time.

Once the flaws have been corrected, it’s time to rebuild the company image. A great example of a well-executed recovery strategy is Maple Leaf Foods Inc. A company renowned for high quality products was dealt a tough hand when listeria was detected in their foods, resulting in thousands of illnesses and 22 deaths. After promptly shutting down the infected plant and recalling all products produced from it (costing $102.8 million), an extensive ad campaign was launched immediately. The campaign included full page newspaper ads, radio spots, and most notably, a 60-second commercial with CEO Michael McCain addressing the issue, sincerely apologizing to the victims, and reinforcing the company’s commitment to high standards. However they didn’t stop there. Three months later another 60-second ad was released, this time with McCain announcing the changes they had made, the regulations they were exceeding, and all other precautionary measures they were now taking. After suffering a net loss of $36.9 million in 2008, Maple Leaf bounced back into profitability in 2009 posting a $52.1 million net profit, while salvaging their brand and reputation.

Recovering and prospering from significant slipups is never an easy task, but with sincere apologies, decisive action, and the will to protect your customers best interests, not just your own, can make all the difference in the world. It’s the difference of having food that you want to barbeque more, rather than driving the barbeque that seats four.

After spending four years completing his Bachelor of Business Administration in the thriving metropolis of Antigonish, Nova Scotia, Dorian decided to explore other major cities around the world. Although sporadic trips were exciting, the novelty of serving double tall lattes faded fast. Thus returning to his native Halifax was a no-brainer, as too was his decision to pursue his passion in advertising. However, when Dorian isn’t crutching around the office, he enjoys relaxing with friends and taking in the best sounds and suds Halifax has to offer. You can find anything from Jazz to House music on his iPod… just not the Jonas Brothers.