Extreme Sports Crisis: PR Lessons Learned

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The recent dissolution of the electric vehicle startup, JiYue Auto, has captured significant public attention, marking it as a case study in corporate crisis managementIn the blink of an eye, thousands of employees found themselves suddenly unemployed, with internal company disputes and external media scrutiny converging to create a perfect storm of turmoilThis incident appears to be emblematic of a growing trend in the corporate world, where the actions of a few can ripple out to impact many.

Following the abrupt shutdown, a netizen claiming to be a JiYue employee took to social media, penning a lengthy post that dissected the internal issues plaguing the companyXu Jiyi, the public relations director at JiYue, found himself in hot water after responding to the situation on his personal WeChat, suggesting that not all blame should rest on the shoulders of the upper management; he believed employees too needed to reflect on their roles

Such statements stirred controversy, especially due to provocative phrases like "In the eyes of a servant, there are no heroes" and "flies," which ignited further debate.

In a pivotal move, on December 20, JiYue announced the termination of Xu's employment contract, attributing the decision to his inappropriate comments during a period of crisis that undermined employee morale and company unityXu's remarks had seemingly exacerbated an already volatile situationOn December 22, after his dismissal, Xu took to Weibo with a post titled “Xu Jiyi_jiXing ZiYi Yue Guo ShanQiu” to clarify his previous remarks and issue an apologyHe expressed regret for how his words were misinterpreted by those with ill intentions, resulting in pain and misunderstanding among former colleagues.

For public relations professionals, incidents like this present a monumental challengeWhen faced with the dual pressures of internal strife and external judgment, what is the appropriate course of action? How can individuals and companies learn and adapt from such cases? Let's explore this from various angles.

The source of discontent among JiYue employees stemmed from the abrupt nature of the dissolution, which left many anxious and uncertain about their compensation and future

Had the company implemented a well-structured crisis management plan, perhaps through internal communications, it could have mitigated some of the immediate emotional falloutBy establishing a sense of respect and communication, many concerns could have been resolved before escalating.

Of course, given the unforeseen nature of JiYue’s situation, the timing made immediate emotional stabilization of employees indispensableThe PR team's first priority should be to establish a line of communication with employees, affirming the company's respect and gratitude while addressing their queries regarding compensation and administrative processesTimely and transparent communication serves as a foundation for calming employee unrest and preparing for future resolution.

Stabilizing employee emotion and conveying clear solutions should undoubtedly be the primary step in crisis management

Calmness is of utmost importance; facing external criticism requires objective responses rather than engaging in emotional confrontations.

In his recent apology, Xu acknowledged that his comments might have caused misunderstandings and harm to his former colleagues, conveying his deep remorseHe recognized that animosity directed towards him was understandable, prompting him to apologize profusely and seek forgiveness.

The JiYue incident serves as a poignant example of how early personal statements and internal notifications can leak and morph into public fiascosXu's remarks further ignited public sentiment, leading some online commentators to criticize his words as impulsive and extreme, characterizing employees as "servants" and "flies," while portraying the management as “heroes” and “warriors.” This portrayal starkly contradicted the principle of respecting employee dignity, showcasing a lack of professional decorum expected from PR leaders.

Xu later explained that his controversial use of the term "flies" was drawn from a Lu Xun essay

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In "Warriors and Flies," Lu Xun used these metaphors to differentiate those fighting for revolution and the people from those who mock and belittle themUnfortunately, Xu's spontaneous reflections were distorted by certain individuals and misrepresented in the public eye.

This situation underscores a crucial reminder for PR practitioners: maintaining professionalism and restraint in all circumstances is paramountComments that could tarnish a company's image should be avoided, especially during a crisisInformation should be conveyed simply and accurately, devoid of ambiguity.

Professional competency enables PR professionals to react appropriately in convoluted circumstances, while restraint helps sidestep emotional outbursts or personal biasesWhen relaying information, concise language that highlights key points should be prioritized to avoid lengthy, convoluted statements that could confuse or mislead the public regarding the company's position and strategies aimed at mitigating the crisis.

Moreover, businesses should strive to maintain a unified voice; all outward communications must be cohesive and continuous to minimize chaos and confusion.

1. The Distinction Between Personal and Corporate Identity: During a crisis, every word uttered or article published by a PR leader essentially represents the company

Any statements steeped in personal emotion or excessive self-protection can be perceived as the company's collective stanceIn JiYue's case, personal metaphors and contentious statements further complicated the existing discord.

2. Balancing Professionalism with Emotions: Crisis communication necessitates cool-headedness and professionalismPR leaders must continually adopt a corporate-focused standpoint, responding to issues rationally and constructively rather than descending into personal justifications or attacks.

3. Preparation is Key for Crisis Management: No business can completely evade crises, but "being prepared" is always superior to "cramming at the last minute.” The completeness of a crisis management plan often determines how confidently a company navigates an unexpected incident.

For instance, in response to potential layoffs or operational adjustments, companies can devise internal communication strategies, media statements, and even rehearse responses to anticipated hot-button issues

Should an incident occur, the PR team can swiftly act to minimize internal disarray and external speculation.

4. The Necessity for Internal and External Coordination: Crisis communication is never an isolated departmental initiative but a collaborative company effortPR teams must manage internal resources, reassure employees, and unify external messaging while quickly engaging with media and partners to garner supportive voices.

In JiYue's scenario, leveraging established media relationships to issue authoritative responses at the crisis's inception could have eased the situation rather than allowing an individual to become the narrative's focal point.

Conveyed messages from PR personnel can be scrutinized and disseminated at any time; hence, caution in communication is paramountIn moments of crisis, responsibility must be taken, and efforts should be focused on resolution rather than exacerbation.

The approach to problems should favor calm reactions over emotional responses, and crises should be tackled with rational professionalism to prevent exacerbation from personal feelings