We had a good discussion in my reputation management class at the George Washington University. Among the highlights:
- Norfolk Southern appeared not to have a crisis management plan when its train derailed sending toxins into the air and water. If it did, implementation went missing.
- Legacy industries like railroads may be more vulnerable to these kinds of lapses. They have few competitors, loyal customers, and tend to focus on minimizing regulations than going above and beyond them.
- The largely unknown CEO did an apology tour including an oped in the Washington Post but a month after the disaster and the day before he was grilled by members of Congress.
- He should have been much better known by then--as an advocate for railroad safety.
- The crisis plan should have included agreements with hotels and other service providers near communities along the route to immediately supply lodging and other other services.
- Neither senior railroad officials or the federal government appeared at community meetings in the direct aftermath of the derailment, angering local people and adding more fuel to the crisis.
- Showing up immediately, contrite and with checkbook in hand are part of doing the right thing.
- Regulators will be looking at the railroad's "safety culture," especially since two more derailments occurred in quick succession.
- If it's proven that safety corners were cut, the financial damage to the railroad company will be much greater than investment in safety and crisis prevention.
- The CEO and head of safety should probably be replaced.
- Norfolk Southern should not let this crisis go to waste, instead promising to set the standard for railroad safety and as a principled company to work for.
- Every town through which toxin material-filled train cars pass is a potential disaster site. We need reliable assurances that the rail transport system is safe.
- All companies should get a strategic communications stress test to make sure they have crisis plans in place and that staff are trained to implement.