The Sky is Falling - Communicating in a Crisis

From a communications standpoint, Starwood is a savvy, well-run machine. It appears to have processes in place to spread its message to consumers, investors and everyone in between. Last summer when faulty glass windows caused several guests to be injured by falling glass panels, the company distanced itself from the issue - relying on the CEO of the property development company to act as spokesman for the tragedy.  This was clearly a strategic move. In my opinion, Starwood makes smart strategic moves in all its communications efforts.

Aspiring model Lashawna Threatt died after falling from a W Hotel in Atlanta.

Starwood prides itself on being a progressive and inclusive employer. From the point of recruitment, the company attempts to create an open and inspiring workplace for its employees. Like many organizations conscious of the need for a distinct and engaging corporate culture, Starwood has employed ‘leadership discussions’ where more junior level employees can speak directly with upper management on a variety of topics. The company also conducts regular ‘engagement’ surveys to gauge the responsiveness of employees to company values and initiatives, as well as live events and training programs to “make certain that [our] associates reach their true potential.” It would appear that Starwood recognizes that employees are consumers too and brand spokespersons in their own right. With this knowledge, the company works hard to create an environment of which employees can be proud.

When it comes to reaching investors, Starwood pulls out all the stops and leverages its amazing properties to do so. The company’s investor relations team holds annual investor conferences at its high-end properties around the world. For example, the company held its annual investor meeting at its St. Regis Bal Harbour Resort property on May 3, 2012, and an Asia-Pacific Investor Relations day on June 21, 2012, Shanghai, China.

• Greater China National Recruitment Day Video
• Asia Pacific Property Openings Video

For those who cover that market that were unable to make it the meeting in person, Starwood offered an investor relations call, live web cast of the event, issued a press release with updates on the property openings slated for or completed in various regions, and posted related video content on the Investor Relations section of its website.

 

The three core Starwood values are:

1. Go the Extra Step by taking actions that build lasting connections and loyalty.
2. Play as a Team by working globally and across all teams in the company.
3. Do the Right Thing by using good judgment, respecting our communities, associates, owners, partners and the environment.

With these guiding principles, particularly the last, which focuses on using good judgment to build strong relationships within the company, and with the communities in which it does business, the company has developed robust corporate citizenship strategy.

The five key areas of the corporation’s corporate citizenship – or corporate social responsibility program are:

• Policies & Reporting
• Environmental Initiatives
• Community Initiatives
• Starwood Foundation
• Starwood Associate Relief Fund

Given the recent devastation experienced by thousands of people following Hurricane Sandy, it is comforting to know that companies like Starwood have a program like the 'The Starwood Associate Relief Fund that "supports associates affected by a natural disaster or large-scale act of displacement."

Currently, Starwood does not employ a spokesperson to represent its corporate brand or W Hotel chain of properties. If I were tasked with selecting a spokesperson to represent Starwood and/or the W Hotel chain, I would choose a celebrity spokesperson whose body of work represents the energetic, artistic and edgy sensibility for which W Hotels have become known. I would personally select someone with a unique and distinctive personality and perspective on art and living – someone who has not been afraid to stand for something, whether they’ve received backlash for that or not. I’d choose someone whose fame stems from actual talent – whether that is his or her work as a musician, actor, singer, designer or visual artist. However, to represent the Starwood or W Hotel brand, that persons “pixie dust” [Martin Lindstrom – ‘Brandwashed’, Chapter 7] must stems not only from his or her talent as an artist, but also from how he or she conducts (or is perceived to conduct) his or herself as a human being. 

W Hotels Madonna Retrospective

If this were to be my job, I’d choose Madonna – a musical icon whose multigenerational popularity makes her easily recognizable by grandfathers, mothers and teenagers.  Because she has done fairly few product endorsements when you consider the length of her career, she is not imprinted with one particular brand besides her own ‘brand Madonna’, which is known for being innovative, edgy, controversial and at times – fascinating. Because of these attributes, she could be the face of many different programs that would promote the W Hotels brand, but allow her to remain true to her personal brand. Some examples of how she could be used include:

1. Advertising – High energy TV, print or out-of-home ads that associate the vibrancy of Madonna’s music and lifestyle with the cutting edge and vibrant atmosphere Starwood seeks to create with each unique W Hotel property.
2. Creative Director – Establish Madonna as a resident creative director to oversee the design and ‘lifestyle’ of a select number of W Hotels slated for opening in 2013. Play on her status as a fashion icon (she had a following of “little monsters” well before Lady Gaga) to cement her role as an authority on style and fashion, which is very important to the W Hotel brand.
3. Musical Director – W Hotels has already established itself as a harbinger of musical talent with its Burn Studio DJ Lab program. Who better to act as a curator of the brand’s music program than a woman who has been a part of the music scene for more than 30 years and has continually imagined new ways to remain relevant?
4. Social Awareness Program – Given her past role in raising awareness of orphaned children (Raising Malawi) it is feasible that she could help Starwood raise awareness of its Check Out for Children™ program through public service announcements that run on television and on the hotel’s television network.

Unfortunately, there isn’t always a role for a celebrity spokesperson in a corporate crisis. Take the issue of subpar windows that caused the death of one and injured several at the W Hotel Atlanta and W Hotel Austin last summer. Having Madonna issue a statement of regret on behalf of the organization would most likely seem out of place and unnecessary.

The most important strategy during a crisis is planning. Organizations that have well laid out plans are best able to address a crisis when it comes along – and in the world of business crisis are almost guaranteed. From what I can see, Starwood is well prepared to deal with any that come its way.

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