17/08/2006

Dell recalling laptop batteries


It is well known that Dell is recalling about 4 million laptop batteries because they have risk of catching fire. Although this issue can't be properly qualified as crisis (crisis when human life is lost or business continuity is jeopardised), it will give us a lot of important lessons for crisis management.

An articles in today's Financial Times summarises very well the opportunities for a company in a situation like Dell's
FT.com Dell can turn product failure into an opportunity

"product recalls need not turn into a brand crisis. They can even be an opportunity to build the brand, provided they are handled appropriately. A mishandled public response can cause more damage than the problem it addresses in the first place."

"Our research has identified 'four Cs' of product recall management that should guide companies in troubled times: be candid, contrite, compassionate and committed...Being candid implies addressing the problem openly and head-on...Being contrite starts with assuming responsibility...Being compassionate requires being personal...Being committed requires a cross-functional response team with top management and should not be a public relations exercise"

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