Unknown Speaker 0:00 Ben, Unknown Speaker 0:12 Hi. Welcome to up the creek, where we look at how institutions and individuals found themselves up the proverbial and dissect their efforts to reach calmer waters. I'm Ben Haslam and I'm Mark Forbes as Junos, we prompted resignations and royal commissions as crisis consultants. We protect reputation when issues come today. Well, the wait is over. It's time for the 2024 reputation I awards that recognize the year's crisis hits and misses. There is the coveted Golden Eye for the organization that's fallen into the creek and managed to emerge smelling like roses, and the dreaded brown eye for the reputation fail of 2024 Unknown Speaker 0:55 now last year, this was won by consultancy PwC, for a firm that was built on advising government then betrayed those government secrets learned from designing new tax laws to market schemes to avoid those very laws to the global corporations, Unknown Speaker 1:13 PwC had to sell its entire government consulting business for the princely sum of $1 in Australia, but I'm sure they've got our trophy up on the mantelpiece somewhere, mate. But first, let's turn our reputation I mark towards the performance of our former colleagues in the media over the last 12 months. It hasn't been pretty no no for all many of our former colleagues, mate. And it's been a particularly bad year for nine with with massive redundancies, a good 25% of a newsroom, I think, went and a lot of really solid journals and former colleagues of mine, they've had a crisis over newsroom culture, particularly in the TV area, and they've lost the heads of both the chair Peter Costello after chesting A journalist in Canberra Airport, shoulders, probably more accurate. But anyway, and they've lost to see was as well. So not a great yarn for nine. But I think they could now say, well, just look at those walkies. They won the gold. They had the story on the CFMEU, effectively becoming a mafia style organization, as featured on previous episodes of up the creek, absolutely, and Alan Jones, too. I mean, which we'll talk about or who we'll talk about in a little while. That was another one from your former Cadet partner, Kate McClymont and others. Yep, yep. Not before time, some might say, mate, though the courts will make their final decision. That's right. But what about, what about your your odd mates? Over it, over at news court. I mean, they've been doing a good job in recent weeks, defending the defending the gas and fossil fuel industry and sponsored specials. I see careful mark. We are quite literally a well hit nine iron from the two hole Street at the moment in the wonderful studios here on Elizabeth Street, or, more importantly, just extra close to the evil star where they'll all be drinking as we speak. Let's hope they're not listening in That's right. Unknown Speaker 3:14 Interesting year, though, for News Corp globally, it was their first year without Rupert as chair. He actually stepped down officially in November 2023 just over a year ago, the highlight, or perhaps the low light, was a case of life imitating art. When we had very similar to the succession TV program, we had the court case in Reno, Nevada, where his children, Lachlan, James, Elizabeth and prudence, fronted up to court. The dispute centers on Rupert's attempt to amend the Murdoch family trust to ensure his eldest son, Lachlan, while they're considered the most right wing member of the Murdoch family, to retain control over News Corp and the fox Corporation. It is bizarrely. It is bizarrely the plot of succession. I mean, not quite the same machinations, but exactly the same plot. I still love the fact, though, that they the family obviously must have been truly irked by the accuracy of that program, because when, when Rupert did his divorce settlement with Unknown Speaker 4:13 with Jerry Hall, one of the conditions was that she not leak any material to the scriptwriters of success. Oh, really. Okay, I didn't know that. Truthy. And of course, the other four children have said, No, thank you, but we'd like to maintain our voting rights. Thank you very much, dad. And then let's not forget, in radio land, we had Kyle and Jackie O's, I think, predictable, failed foray into Melbourne, and this was featured on one of our earlier episodes. Sydney and Melbourne are very different cities. They're great in their own ways. But transplanting that type of radio program into Melbourne was always destined to fail. Yeah, yet another example of Sydney based media organizations totally failing to get the Melbourne culture, yes, in the fact that it actually has culture, yeah, that's right again for me, it was a ratings disaster at last count. They were. Unknown Speaker 5:00 Eight in the time slot with just 5.1% of the market, and compared with their ratings of the same program on the same station before they turned up, they've lost 130,000 Unknown Speaker 5:10 listeners. I think that's a big Ouch. And I mean, I think the other thing with the media landscape this year, it says something about the tumultuous times we're in that we've almost forgotten channel seven's troubles, because, like at the start of coke and steaks, oh yeah, the Bruce Lerman defamation case, and in the Unknown Speaker 5:31 the the revelations from that year, that was the $400 stakes and the time assesses, Unknown Speaker 5:38 what was the judges liner? It was a man who went back for his hat, the man who escaped a fire line went this, escaped the line and went back into the cage for his hat, something like Unknown Speaker 5:50 that. Anyway. And don't you think, I mean Alan Jones, he he's got to be the media user loser of the year? Yeah, totally. Well, he was already on a bit of a losing streak after we've got to admit, a fairly long winning streak. But it was interesting. It took a long time for this to come out, and I think that shows, firstly, the fear that he was that a lot of people had for Alan Jones, the amount of power he had in media and politics in in Sydney in particular. But as that's waned, I think people have been more prepared to step up and make these allegations. We've got, we have former journalists. You know, the importance of a importance of allegations as multiple allegations. Chris Murphy, he's colored. Can I say colored celebrated Chris Murphy, his lawyer, quite rightly said, Hang on, there is a presumption of innocence here, and we have to respect I did back it, back in my very early days on the Herald, I did a profile, actually, was a national Times did a profile on Chris Murphy, which involved spending a day or two with him. Actually, in his bizarre apartment. There are all sorts of strange things going on, but when I got to write the story, I described him as, you know, as prominent, prominent to Sydney criminal lawyer, Chris Murphy, Fairfax's lawyers made me take that out. They said, Well, I know it's true, but in his case, people might misinterpret the meaning. I only spoke to once. He rang me once when I was doing a story, and I think I was a cadet, and I found him quite scary. He's quite a he's quite a scary man. When you're on the other end of the phone, you're a young cub, Cub journalist trying writing a story. He wasn't. It's sort of a fun bloke to spend the day with, but in my case, I think he was trying to save it. He was trying to stop me writing bad things about one of his clients. But listen, let's, let's get on to it. Let's get on to the awards, mate. That's what all the listeners are waiting for. And first off, to the award that no one wants to win, not just because it's slightly questionable statuette, Unknown Speaker 7:45 it's icons reputation, brown eye of the year for 2024, Unknown Speaker 7:50 big field of contenders. Ben, yeah, first time. I know. Sorry, our second year, but this is our first politician to be nominated. And it's obviously a fairly rich field when it comes to our politicians. But it's sorry to say it's my local member, Anthony Albanese, for buying a $4.3 million cliff top home on New South Wales Central Coast in the middle of a housing and cost of living crisis. Look, I think the general view amongst a lot of people is, look, we don't begrudge the bloke who's worked hard he's about to get married to buy a nice pad, but, you know, maybe read the room next time elbow, Unknown Speaker 8:22 look at the calendar when the elections coming. Wait till after the election. I mean, whatever the outcome. If you do it straight after election, three is down the track. People hopefully will forgotten about it. But it was interesting that the criticism from the opposition was a little muted. Sorry about the pun, but those in cliff top houses should not be throwing stones. I think out there, there, many of them are guilty for one of another word, of having a sizable number of investment properties right across the political special, I'm ad from the greens, right across to the other side of politics. But to elbows credit, he ended on a really good note. I think in the last week he got all He stared down the greens. He got a lot of legislation through the parliament. And I think he ends probably with a bit of a bit of a spring in his step. Well, yeah, I think he's given himself a better chance for the run of the pole next year. But from federal parliament to food, another brown eyed nominee has to be the restaurateur who managed to invoke a whole media storm over the hot button issue of the Middle East. It was Alan yas back in October, co owner of the famous Nomad Restaurant Group, attended a protest at Hyde Park in Sydney with a sign with the Israeli flag on it with the Star of David replaced by the swastika and the word stop Nazi Israel. Now that might get a little bit of a reaction we thought. And of course, when his picture got read in the papers, the flood gates open, whatever your view is on the Middle East or anything, just look pretty simple. Just don't put, not put Nazi symbols on anything, and don't really accuse anyone of being a Nazi. What's the got? It? Was it? What's the. Unknown Speaker 10:00 What's that rule that how we in an argument, the first person that mentions Hitler always loses the argument. You've been 10 different parties than I mate. I've spent a lot of time on Twitter, I think is the reason why. Unknown Speaker 10:13 But, yeah, look, the Nomad Restaurant Group social media pages were besieged with hate reviews and I mean cancelations, and they might even been photographed. So the restaurant's completely empty, and they own two restaurants in each of Sydney and Melbourne, yeah, and they're high flying restaurants. Yeah, they're good lots, not cheap, I must say. But, but a bunch of leading brands abandoned them, including the French champagne producers GH mum, who are meant to do a big partnership over the spring racing. Unknown Speaker 10:43 They even got dropped, which I thought was an interesting reaction. They got dropped from the Good Food guy by the age of Sydney Morning Herald. Unknown Speaker 10:53 The strange thing about this one was that, basically it was, it proves that speed is of the essence in crisis, particularly when modern when social media is involved, and an issue is in full swing. It took four days to issue an actual an apology, and two weeks before it was announced that jabzek was going to leave the business, and he flew off to ashram for a spiritual healing session. Unknown Speaker 11:23 But if he'd done that on day two, Unknown Speaker 11:27 there would have been much less damage. Yeah, I agree. I totally agree, by the way. I don't mean to Nomad restaurant. I mean, we had trouble enough getting a cap charge at News Corporation. Obviously, at nine newspapers, you probably spent most afternoons there after after editorial conference mark. Well, it wouldn't have been opened when I was still at the nine organization, but Unknown Speaker 11:46 it was bad. Yeah, I think, I think it's been a good decade since the corporate expense cards were profligate in media about 20 years back. Yeah. Then yes, yes, absolutely. Now, just on his trip to India, I wonder if you flew Qantas. Well, that's another of our nominees. This was, this one. Was your baby, wasn't? Yeah, Qantas, the flying kangaroos. I've, you know, as I've said to you earlier, Mark, you know, this is the gift that just keeps on giving us brown eyes, really, literally and figuratively. It's, you know, Qantas is honest. Horobis, to quote the late Queen Elizabeth the Second, 2024 edition, probably just not quite as bad as 2023 but the brand is still very, very shaky at the moment. So let's just go through quickly what were some of the things the political favoritism controversy was a big one with you know, was revealed that Anthony Albanese, if not on speed dial, definitely had entree to then CEO Alan Joyce to get upgrades to business class, not only when he was the federal Transport Minister, but also the shadow federal transport minister as well. Then we had the ghost fight scanner, which actually broke in 2023 but it carried on to 2024 with them basically settling for $120 million in fines and compensation over charters, all brought by the ACCC. And then in October, climate advocacy groups filed a complaint with the ACCC accusing Qantas of misleading consumers with its sustainability and net zero emission claims. In other words, when you tick that box and pay your whatever it is $2.48 are you really Unknown Speaker 13:14 saving the polar bears? So yeah, Qantas, they're probably not as quite badly off brown wise as they were, but they've still got a lot of work to do. Yeah, well, I don't think you've sold it well enough. So sorry, sorry, no, no final brown eye cigar for Alan Joyce on his farewell trip. No, for 2024 we have a runaway winner, which has to be, in my mind the ongoing train wreck that is, that is Woolworths with a with an honorable mention to their partners in ripping off customers with fake specials, Coles. But Coles, in many respects, they're almost as bad at wool Woolworths was so bad that it makes what Coles look almost good. Well, the cherry on the top had to be their CEOs performance on that, that four corners interview like Brad banducci, I think no truer word was spoken when he when he added on camera that I think I'm done guys just before he tried to walk out of the four corners interview. I mean, rarely were true words spoken. And within 48 hours his resignation was Unknown Speaker 14:19 was announced. I mean, he'd already caught flak over, you know, attempts to cancel Australia Day by refusing to stock merchandise Unknown Speaker 14:28 in that four corners interview, which just was staggering, that lack of preparation in its performance there Unknown Speaker 14:35 he he was attempting to avoid criticisms of operating a duopoly and in fleet, fleecing customers by denigrating Rodney Sims and describing him as retired. And then, of course, and after he made the blue he dug the hole deeper by asking four corners to delete it on camera and trying to walk out. So, yeah. Unknown Speaker 15:00 Well, you and I were just watching that video literally two hours ago, because he's now heavily featured in our media training decks. Unknown Speaker 15:06 Yeah, I think, I don't think we're alone. I think he's probably featured, if not, all around Australia, probably, and all around the world. Yeah, and the they've got to top off the year, aside from the fact that my local bullies is empty shells, because they've had unsuccessful attempts to break a strike out in the warehouses. They're facing Australian Competition and Consumer Commission charges for deceiving, allegedly customers through their discount promotions on hundreds of products, where they basically, according to the ACCC, temporarily increase the prices of products, then put them on special at a price that was higher than the original price. But a lesson for all of us that was revealed on Reddit, with people going around and posting photographs on Reddit, the social media platform, Unknown Speaker 15:55 and then the accclc became aware of this, and away they went and to add salt into the wound. Roy Morgan research, just yesterday, put out its latest trusted brand rankings, and Woolies and Coles ranked first and second a year ago, have slipped a second and third last respectively in 12 months. That shows you the damage that has been done for a record. First is Bunnings, even though they like to take photographs of as you go into the stores to make sure you're not a crook and and one of the highlights of last year, last is Optus, but we won't go into the disaster that fell them a year ago. No, no, no. But anyway, I'm sure this is, this is going to go straight to Willie's pool room. So, so relations, yeah, we might do an in person presentation, perhaps, of that in the in the new year. But let's move on to the more positive news. Yes. Is the Golden Eye award for those who managed to turn a PR pig's ear into a silk purse. Unknown Speaker 16:53 And first, I'd like to give an honorable mention to an old rock and roller, the Nirvana drummer in Foo Fighters, front man, Dave Grohl, bloke who really sort of thrived on a nice bloke, Family Guy. Rep, had some good chance to then in September, he sort of came out with this shock announcement of saying that he'd father the child to someone outside his marriage, that he was going to look after the child and spend his time doing all he could to earn his family's forgiveness. Now interesting. I mean, it was basically what we would see, what we typify in crisis responses is preemptive, getting in front of the story correct. So obviously, he was fearful that it would come out, leak out, whether his family knew already or not, I don't know, and wanted to control the narrative around it. And it was strategically time coming on the same day as the debate between vice president Kamala Harris and, well, we say he FORMER PRESIDENT DONALD J TRUMP, but he's now the President Elect Donald J Trump. But for Dave Grohl, it was textbook. It worked. He's moved on. There's been one or two stories, but it's not big. I mean, maybe at some stage down the track, but really, in terms of, you know, the little ticking time bomb, he's diffused that quite sensibly. But come on, rock star gets, you know, has child out of wedlock. It's not exactly, it's not like exactly the pope got someone pregnant or anything like that. But still, but in terms of the approach, it was spot on. Yeah, Unknown Speaker 18:28 so who's the winner? Who is the winner? Ben, I think you've got the the envelope there. Look, it's CrowdStrike. Speak to a few other people who work in in crisis. This was, this was a, you know, a bad crisis for Unknown Speaker 18:43 those who who were under rock and don't remember crowd crowd strike, one of the world's biggest cyber security firms. I've never heard of them till the time, but now everyone's heard of them, obviously, and the bottom line was that they released a faulty update to their to this to their software. It's called Falcon sensor software, which operates on the window system, and suddenly everyone's screens went blue, the blue screen of death. And it led to all sorts of problems. Eight and a half million computers worldwide crashed. Airlines, banks, governments and healthcare. Sector was very badly affected. Airlines were grounded in the United States. It was, it was, it was a mass in Australia, particularly because it happened Friday afternoon, a hot, you know, airports ground to a halt. One small blessing, I suppose, for CrowdStrike was in North America. It happened between about midnight and 3am across the country. So a lot of the disruption was minimized. But not a good not a good look, a cyber security firm meant to protect our cyber security effectively manages to crash the entire world. Yeah, that's right. And I mean, the main criticism of CrowdStrike CEO George Kurtz, initial response, and I actually wrote about this from umbrella or contributed to an article, was there was a lack of an immediate public apology. Unknown Speaker 20:00 Which is one of the first things you should always do in any response to a crisis. But overall, the response was very good. So Mark, I was going to ask you, but there we talk about the 4r of crisis response. Recognize. Unknown Speaker 20:13 Well, from the get go, I think the entire world knew it was a crisis, so it wasn't a big it wasn't a big win for them, but they did. They did move quickly, and obviously Unknown Speaker 20:24 realize that they needed to do the second, which was, respond, yeah. And, you know, they took responsibility. They said it wasn't a cyber attack that was really important. Yeah, don't think they said the word sorry, but, but, but yeah, they the intent was good, and there was that hint of the third R regret, that fault in responsibility, so and remediation, yeah, the next big thing is we're fixing the problem and ensuring it doesn't happen again. And like role, they got ahead of the story as quickly as they could. He did also, by the way, apologize, but only a matter of a few hours later, not like some CEOs who seem to take in the case of our friend at Nomad restaurant 17 days. Unknown Speaker 21:10 But for me, the most interesting thing about their hounding of this whole issue was when President Michael santonis walked up on stage at the DEF CON hacker conference in Las Vegas, something I was completely unaware of until I till this particular incident in Las Vegas, four weeks after the incident, and personally accepted what's called the epic fail pony award. Unknown Speaker 21:31 And he said it's super important to own it when you do things well, it's super important to own it when you do things horribly wrong, which we did in this case. He said the trophy would take pride of place in crowdstrikes headquarters to remind staff that our goal is to protect people, and we got this wrong. That's that's classy. It's owning it. And now they have a golden eye statue to place right alongside it in their HQ. It will be a thing of pride, mate. I'm sure, absolutely so that's our year, 2024 I'm sure 2025 will bring many more crises that we can dissect, but still, Until then, we'll see you next time up the creek. Transcribed by https://otter.ai