Saturday, December 27, 2014

Sony Pictures needs a crisis communication leader

The cyberattack crisis Sony Pictures is facing is beginning to look like an onion with infinite layers.  First it was concern about the studio’s yet-to-be-released film, “The Interview.”  Then it was the embarrassing (and worse) emails, salary disclosures, and other things executives would have preferred stayed internal.  Then the studio said the film would not be released as planned on December 25.  And in between all this, actors and directors Seth Rogen and James Franco cancelled a variety of planned promotional appearances – making more news. 

Now the President of the United States says that Sony “made a mistake” by pulling the film.  But Sony Pictures Entertainment CEO Michael Lynton says the film decision was a postponement rather than a cancellation.  On Sunday representatives for Sony reinforced this point, assuring that the movie would be seen without suggesting how or when.  This points to the primary crisis communication leadership problem here. While this crisis has begun to stretch its tentacles well beyond Sony, it began with Sony.  And Sony has made its crisis worse through its uneven and sometimes cavalier response. 
When embarrassing emails were leaked, how many of us thought “Gee, I wonder what I’ve written in thoughtless haste that would embarrass me”?  There was some sympathy for Sony.  But then the company brought lawyers in to serve notice to media including the New York Times and Wall Street Journal that they’d pay a price for distributing any material they obtained through the cyberattack. This served only to highlight the content of the emails and even smacked of desperation.  And apart from some half-hearted apologies from executives, including Sony Pictures co-chair Amy Pascal, there’s been precious little from Sony suggesting that they believe they have contributed in any way to the crisis. 

Crisis leadership is lacking.  Yes, they were hacked.  Yes the hacking was of mammoth proportions.  But then questions were asked about how the company’s security tools could have allowed this to happen.  In response Sony said, essentially, that any organization with the best cybersecurity would not have withstood this hacking.  Lawsuits are now following, filed by employees who blame the company for release of their personal data.  Citing existing policies and promising a review and remedy would have been useful in garnering more public support.  More public mea culpas from the executive suite would have also been appropriate.  Lynton shifted blame to distributors regarding the cancellation or postponement of the film’s release.  There are many ways to distribute the film.  At last those options are being acknowledged.  Lynton says they’re exploring possibilities, but that his company is not in the distribution business. It has been a chaotic response, lacking much semblance of a solid strategy. 
Crisis communication scholarship, including my own, suggests a different way.  How the public perceives the cause of a crisis has a great deal to do with how responsibility is attributed.  When Sony was the victim, responsibility for the crisis fell elsewhere.  Now Sony has allowed at least some perception of responsibility to drift back to the corporation.  It has attacked or dismissed key publics and has paid the price.  Simply put, Sony is more likely to succeed if it cultivates rather than alienates relationships with key publics.  Pre-existing relationships matter in crisis communication, but so does the tending of those relationships in the midst of a crisis.

Most would agree that this is perhaps an unprecedented cyberattack that has now been linked to North Korea, according to the FBI.  And as with any organization-threatening crisis the ground has been shifting under Sony Pictures executives mercilessly.  New facts emerge daily requiring strategic adjustment.  That’s precisely why it’s time to stop finger-pointing at the media, at North Korea, at theater owners.  Sony Pictures needs to take hold of the situation, take responsibility where appropriate, clearly lay out a way forward for “The Interview,” announce internal reviews and repercussions, and review security tools and policies.  That’s the leadership that’s needed in this crisis.  So far, it’s been missing.
A version of the post was published on the Grady College website on December 27, 2014