Recently, I was a participant in the pre-market test project for AT&T’s new Microcell 3G product. The Microcell 3G connects to your broadband service and acts as a mini-cell phone tower. During the test we learned that the Microcell 3G device needed to be placed at least one foot from your exiting Wi-Fi device.

Now, the instructions for the AT&T Microcell 3G device clearly state the proper placement for the Microcell 3G device. A simple solution that could have become “Microcellgate” had the instructions not included this needed statement.

So the simple solution for Apple would have been to tell people “don’t cover the antenna area while talking on the phone”. Or you could have been given the reason for purchasing bumpers, which fit around the iPhone and help with the reception issue. Not a big deal. But Apple made it a big deal, by first denying there was a problem. Then, giving a partial-admission of the problem, then a full-admission and then, finally, a resolution. If they had simply admitted the problem and offered a solution immediately, it would not have grown in the PR nightmare we have witnessed. Apple took a simple matter and turned it into a major multi-million dollar disaster that will take years to overcome.

The lesson for companies, candidates, or anyone dealing with the public is to be upfront and honest. Let the public know as quickly as possible what they deserve to know. In Apple’s case, the antenna issue should have been handled in the iPhone 4’s operating instructions.

On a side note, when I ordered my iPhone 4 on the first day, I noticed they were selling bumpers,. In a “Blink” decision, I purchased bumpers for my phone. I’m glad I did. I am perfectly happy with my iPhone 4 and would have bought it even if I did know about the antenna problem. Think about all the money Apple has spent – and will spend – on “Antennagate” when a simple truthful statement about the antenna weakness could have avoided the entire matter.

One of the first rules of Crisis Management is to respond quickly. The public heard from BP’s lawyers long before it actually heard directly from BP. It took 15 days for BP to even admit that the rate of the oil spill was like more than 5,000 barrels per day. They did eventually respond with this commercial and have become increasingly better at responding to the media, but some feel it is too little, too late. The economic and environmental damage is more than we can even imagine and it’s doubtful that anything BP says at this point is going to help.

BP has admitted that they are at fault, but their CEO was also quoted as calling the spill “modest”, when anyone can see that that this is a spill of epic proportions. In fact, it is unprecedented. They admit they are at fault, but they almost seem casual about it. This is causing mistrust and anger among consumers. This situation demands compassion and the American people aren’t getting from BP.

Until the spill is under control, it is not likely BP is going to restore consumer confidence any time soon. Many are calling for a boycott of BP. As for moving on, it is going to take years. BP will likely have to deal with litigation stemming from this spill for years to come, much like Exxon. Bouncing back from this crisis is going to be increasingly difficult given BP’s poor response.

For more on how BP is handing the spill publically, check out this interview with Kent Jarrell, Director of Litigation Communications for a Washington consulting firm. Also, here is an interview with Patty Brigulio, president of MMI Public Relations in Raleigh.

Information travels quickly these days, especially with the popularity of social networking sites such as Facebook and Twitter. Not only do companies have to hold press conferences and put the fires out the traditional way, they have the internet to contend with and the rules are not necessarily the same. Social media users want real time responses and updates. As social media experts know, announcements via Twitter or Facebook should also be conversational in tone and encourage discussion among fans. For example, at the time of Toyota’s crisis, their fan page boasted 81,000 fans. Getting to that fan base should have been a no-brainer when crafting their already tardy response. All it would have taken was a sentence or two to let customers know that they were working on the problem.

You can read the article here.

First, Tiger Woods. After months of embarrassing tabloid disclosures, the world’s greatest (and best-known) golfer gave a widely-televised public statement last week. It was a necessary first step in his bid to rehabilitate a tarnished public image. While some in the press groused because he didn’t take questions from the media, Tiger was contrite and tucked his tail between his legs…so to speak. After finishing addiction therapy and hopefully reconciling with his family, Tiger needs to get back to the golf course where he can re-establish himself by performing at his usual championship level.

Second, Toyota. Since we discussed the trials and tribulations of the world’s largest automotive company a few weeks ago, there have been more revelations which seem to suggest the auto giant was slow to admit its defects. This is likely a result of the company’s corporate culture and the pressure to grow bigger and bigger. But the “drip, drip, drip” nature of the revelations is taking its toll on a great brand. They’re doing a good job with mobilizing their dealer and factory worker grassroots network to lobby Capitol Hill but management needs to swiftly show more transparency and resolve to restore consumer confidence.

Finally, John Edwards. I’m no political fan of Senator Edwards so please keep that in mind. But I don’t know of anyone who thinks he has handled his lengthy public meltdown well. The extramarital affair, the out-of-wedlock birth, the private lies, and the public lies constitute a full-blown PR disaster. We’re all baffled why he would run for President of the United States and subject his personal life to certain scrutiny at the same time his world was spinning out of control. He still hasn’t told all of the truth (although to be fair, he’s probably limited in his ability to do so because of two difficult women in his life) and there is little possibility that the deep damage to his public reputation can be repaired. Edwards is a case lesson in how not to handle a public relations crisis.

Admit it
Nothing alienates consumers more than a bold-faced lie. If it’s obvious to everyone that there is a problem, no amount of denying it will make it go away. It takes more guts to tell the truth than to put your head in sand.

Respond Quickly
It took Toyota 2 weeks to respond to this crisis. Don’t let the media put words in your mouth. Be the first to respond if there is a major issue with your product. Be sure to present the facts and let consumers know exactly how you plan to fix the problem.

Restore Consumer Confidence
By admitting your mistake and being the first to respond, you will show consumers that your company not only stands behind its products, you also take responsibility when that product is faulty. Offer to fix their problem for free, offer replacements and refunds. Your company may lose money at first, but doing this will restore your name and consumer’s will regain confidence in your product knowing you stand behind it.

Move On
After the problem has been addressed, move on to different and positive initiatives by your company. Sometimes it’s as simple as reminding the public what made your company successful before the crisis.