Winner: Entergy Corporation: Entergy Corporation's Response to Hurricanes Katrina and Rita
Entergy Corporation was rocked by just about every conceivable kind of crisis between August 29 and October 12 of 2005: two hurricanes with huge restoration costs; the forced relocation of its headquarters and dislocation of 1,900 employees; the collapse of a subsidiary's revenue stream because of the New Orleans evacuation; and continuing blackouts. Hurricane Katrina created massive flooding and destruction in Entergy's hometown, Jefferson, LA, slamming through 37,000 square miles of Louisiana and Mississippi, where Entergy is the electric utility.
At the peak, 1.1 million homes and businesses served by Entergy lost power. Entergy mobilized 10,000 linemen and vegetation workers, and by late September, almost everyone had electricity restored, with the exception of homes and buildings that were inaccessible or too badly damaged.
However, Hurricane Rita soon followed, and hit another of Entergy's service territories, leaving up to 766,000 customers without power. Thirteen thousand workers were again mobilized to restore power. After days of rolling blackouts, more than 96% of those who lost power during Rita had it restored.
Entergy's corporate communications team faced several challenges, including executing its crisis management plan and positively highlighting its progress under intense media scrutiny. It also had to win the sympathy and patience of customers frustrated after living days or weeks without electricity. Communications tools used to relate the story to public officials, the media, and employees included daily media updates and periodic briefings for government officials. Internally, an Infoline was set up with recorded messages, e-mails, and the IEStormNet and EntergyRadio.com websites. After the first week of Katrina, a video was produced to rally employees.
One judge said Entergy's campaign exhibited outstanding execution and results in the most difficult of times. The company received widespread praise from the media and public officials. Despite two hurricanes, the stock only dropped from $77.29 per share the day before Katrina hit to $70.66 per share six weeks later. A record number of customers were reached with safety and restoration messages. Many reacted with patience and support by writing encouraging e-mails, letters, or holding "thank you" signs for road crews to read.
Honorable Mention: Ketchum and Wendy's: Wendy's Sticks to Values to Weather Chili Incident
In March 2005, Wendy's Old Fashioned Hamburgers Restaurants became the victim of one of the highest-profile hoaxes in corporate history when a customer dining in San Jose claimed to have bitten into a finger while eating a bowl of chili. After the crisis was resolved, Wendy's recognized the need to seal the brand's reputation for quality. With the help of Ketchum, the crisis team was on call for weeks during the investigation. Within 24 hours of the announcement that Wendy's was the true victim, executives appeared on more than 2,000 national newscasts in interviews and taped segments. A nationwide Customer Appreciation Free Junior Frosty Giveaway weekend brought 18 million customers back into stores over a three-day period, and other events had similar results, proving Wendy's was back in business.
Finalists:
DAVIES and Harrah's Entertainment, Upstream Development, Guidiville Band of Pomo Indians
Point Molate Resort and Casino
Entergy Corporation
Entergy Corporation's Response to Hurricanes Katrina and Rita
Fleishman-Hillard and SBC Communications with Yahoo, Cingular Wireless, and nonprofit Technology for All
SBC Communications' Team Katrina: A New Kind of TLC (Technology, Leadership, and Compassion)
HealthSTAR Public Relations and Bayer Health Care/Consumer Care Division
Believe in ALEVE Campaign
Ketchum and Wendy's
Wendy's Sticks to Values to Weather Chili Incident
Sponsor:
Makovsky & Company a is a top 30 global, independent public relations firm headquartered in New York. Our tagline: "The Power of Specialized Thinking," succinctly encapsulates our competitive edge which is deep knowledge and relevant relationships in our key sectors – health, financial and professional services, investor rela-tions, technology, and branding and visual communications.