Fatal derailment: Is Amtraks reputation riding on its response to - - PowerPoint PPT Presentation

Fatal derailment: Is Amtrak’s reputation riding on its response to the wreck of Train 188?

• On May 12, 2015, an Amtrak train was traveling

the busy Northeast Corridor.

• In a 50 mph zone, train number 188 hit a speed
• f 106 mph before the locomotive and all seven

passenger cars derailed. In its wake, eight passengers died and hundreds more were injured.

The crisis

The crisis

• Amtrak is the nation’s only intracity passenger rail

system

• Federally chartered, with federal government as

majority stockholder but operated as a for-profit

• 300 daily trains on 21,300 miles of track

connecting 500 destinations

• More than 30 million passengers annually
• $2.189 billion in revenue, operates at a loss that

federal and state governments fund

• Last fatal derailment in the Northeast Corridor

happened nearly 30 years ago

Background

• Engineer
• No memory of the crash
• Was not using cell phone, drugs or alcohol
• Investigation continues
• Positive train control
• Automatically controls a train’s movements to

prevent derailments, collisions

• Some PTC installed but hasn’t yet been

installed on this stretch of NEC

• Amtrak pledged to complete by 2012; federal

deadline December 2015

Major areas of focus

• Amtrak passengers and family members
• Amtrak employees and their family members
• Philadelphia Office of Emergency Management
• Philadelphia Fire Department
• Philadelphia Police Department
• Philadelphia mayor’s office
• Volunteer organizations
• Hospitals
• News media
• Congress
• National Transportation Safety Board
• Federal Railroad Administration

Major stakeholders

Communicating about the event

• President and CEO Joe

Boardman began speaking about the event May 14

• He talked with media, and

posted a message on Amtrak’s blog

CEO presence

“I know what a tremendous trust the public places in us, and we will do everything we can to prove that we’re worthy of that trust.”

High-profile passengers

“Amtrak’s failure is all the more remarkable because, in a night filled with tragedy, the rest of the emergency response worked—and worked well.” – Josh Gotbaum, Politico

Business impact

As a result of the derailment, NEC demand was weak in May with ridership (Acela and Northeast Regional combined) 16% below budget and 13% below last year. May NEC ticket revenues were 19% below budget and 17% below last year. The derailment of Train 188 on May 12, and, to a lesser extent, a number of track work projects and weather-related cancelations, had a significant adverse impact on May's ridership and revenue performance. Source: May 2015 performance report

Page Principles

Tell the truth Aside from a couple of Facebook posts and tweets, Amtrak’s voice was largely missing from the fray. In terms of candor, Amtrak should be commended for publically taking ownership of the crash, and admitting without excuse that the train was speeding. Prove it with action Amtrak proved it took responsibility with action when Amtrak decided it would not fight the lawsuits it would face, and reimbursing families for lodging, transportation, medical and funeral costs.

The Page Principles

Listen to the customer Amtrak’s establishment of a family assistance center in Philadelphia did not meet customers’ needs – many were not from the area where the crash occurred. This added to difficulty for victims and their families. Manage for tomorrow Amtrak saved itself the intense, drawn out and potentially damaging scrutiny of court case after court case by admitting fault and agreeing to pay victims’

• expenses. Had PTC been installed on the entire NEC,

Amtrak would have more effectively managed for tomorrow.

The Page Principles

Conduct public relations as if the whole company depends on it The less than robust public relations response could illustrate a lack of strategic crisis communication planning tied into its corporate strategy. Amtrak maintained minimal presence in the public eye. The inconsistencies between what was being posted to Twitter and Facebook made their communication efforts seem uncoordinated. Realize the company’s true character is expressed by its people Amtrak’s communication team has a responsibility to equip its brand ambassadors with knowledge to ably interact with its

• stakeholders. No reports indicated employees were unhelpful,

but it does seem employees were sent to sites with injured passengers without adequate information to do their jobs well.

The Page Principles

Remain calm, patient, and good-humored Amtrak’s communications efforts seemed almost too calm and

• patient. There didn’t seem to be enough of a sense of urgency in

an environment where everyone else was speaking except the

• rganization that caused the accident.

Questions

• 1. If you were Mr. Boardman’s chief communications officer and were

conducting a review on Amtrak’s communication efforts, what would you advise him to do differently/sustain should there be another disaster?

• 2. Positive train control installation is now complete. Considering the

May disaster, what recommendations will you make to Mr. Boardman about your communication plan regarding the completion

• f the mandate?
• 3. Discuss which of the Page Principles Amtrak most strongly exhibited?

Which could it have done better at? Why?

• 4. What is your plan for helping Amtrak determine the sentiment of its

key stakeholders and recover its reputation capital following the crisis?

• 5. Amtrak’s chief counsel has advised you and the CEO against speaking

publically following the crash. What is your response?