Crisis MGMT Case Study Team_5.15 1155AM

Lance Armstrong

Lance Armstrong

Lauren Dixon, Kevin Hsia and Courtney ScharffCourtneyWho is Lance Armstrong?Seven time Tour de France winner between 1999 and 2005Raced professionally on Motorola, Team Radio Shack, US Postal ServiceDiagnosed with testicular cancer at age 25 which spread to his brain, lungs and abdomenBeat cancer in 1997 and founded the Lance Armstrong Foundation to help others with cancerFaced allegations of doping for most of his professional cycling career

CourtneyDoping Allegations BeginAllegations began when tests showed traces of cortisone use.

US Postal Team accused of doping at 2000 Tour De France.

L.A. Confidential is published: witness testimonies of Armstrongs doping.

Armstrong wins 7th Tour de France and retires. French newspaper, LEquipe reports Armstrong used EPO in 1999.

Armstrong is cleared of any doping charges.Armstrong announces his return to professional cycling.

Before the 2009 Tour, the AFLD (Frances anti-doping agency) accuses Armstrong of not cooperating with a drug tester but later drops allegations.

Former teammate Floyd Landis admits to doping and accuses teammates, including Armstrong, of doing the same. Federal authorities investigate Armstrong and the US Postal Service racing team for fraud and conspiracy.Armstrong finished 23rd in the Tour de France.

19992000200420052006200820092010LaurenDoping Allegations UnfoldArmstrong officially retires a second time. A federal grand jury inquiry into whether or not Armstrong led a doping ring on the U.S. Postal Service racing team is conducted.In Sports Illustrated, former teammate Stephen Swart notes that Armstrong was the instigator and pushed us toward doing EPO in 1995. Former teammate, Tyler Hamilton, tells 60 minutes that he saw Armstrong inject EPO.

Federal prosecutors drop investigation into Armstrong without charging him.

USADA formally charges Armstrong with doping and trafficking performance-enhancing drugs.

Armstrong drops his appeal of doping charges.

Armstrong resigns as Livestrong chairman.

Armstrong is stripped of 7 Tour de France Titles and given a lifetime ban from Olympic sports.

Armstrong cuts ties from Livestrong, resigns from the board of directors.

2012JuneAugustOct 22Oct 17Nov 12 2011February LaurenLIVESTRONG ReactsArmstrong resigns as chairman. "I have had the great honor of serving as this foundations chairman for the last five years and its mission and success are my top priorities. Today therefore, to spare the foundation any negative effects as a result of controversy surrounding my cycling career, I will conclude my chairmanship.Oct 17Oct 19Armstrong attends gala: "We will not be deterred; we will move forward."

ResponseHe's our founder, he's been the inspiration for this movementso it's phenomenal for him to be here tonight."- Foundation CEO Doug UlmanOct 30The Lance Armstrong Foundation receives approval for name change and officially becomes the Livestrong Foundation. Armstrong's jerseys are removed from headquarters in Austin, Texas. Response"For most of its life, the organization has been known as the Livestrong Foundation, but making that change official is necessary and appropriate during a time of change for the organization."--Katherine McLane, Foundation Spokesperson. "As the yellow bands exploded, Livestrong just kept growing and growing," Being known as Livestrong "wasn't really a conscious decision, it was just sort of like, We're going to lead with our brand." Doug Ulman to ReutersNov 5Armstrong resigns from LIVESTRONG Board of Directors and new chairman Jeff Garvey issues statement.CourtneyLIVESTRONG ReactsAM: Armstrong apologizes to Livestrong staff for dopingPM: Armstrong appears on Oprah and admits to doping as well as participating in a doping ring throughout his career AppearanceFebLivestrong changes day of action from day Armstrong was diagnosed to day bracelets were launched "The foundation is charting its own course without the founder since its inception. It's a challenge. It might be a rocky road in 2013. But we are thinking in terms of the next five years."-- Katherine McLane, Executive VP of CommunicationsDoug Ulman talks to TIME about Livestrongs future AppearanceJan 14Mar 11ResponseDiscussion Question #1: Do you think that Armstrong was sincere in his apology? Did your feelings on Armstrong's interview affect your feelings towards the Livestrong Foundation? Why or why not?CourtneySocial Media ActivityOct 17Content:Armstrong to Step Down as ChairmanJan 14Response to NY Times- Official statement about article questioning financialsJan 16Official Statement Pre-Oprah Interview:"We expect Lance to be completely truthful and forthcoming in his interview and with all of us in the cancer community. We expect we will have more to say at that time. Regardless, we are charting a strong, independent course forward that is focused on helping people overcome financial, emotional and physical challenges related to cancer. Inspired by the people with cancer whom we serve, we feel confident and optimistic about the Foundations future and welcome an end to speculation.Jan 18Grateful Beyond MeasureEngagement:Some comments on Livestrong Facebook show supportLivestrong doesn't acknowledge each one but is selective in responseStrategy: Livestrong channels highlight positive deeds of organization to help separate from LanceCourtneyHighlight positive impact that Livestrong has had on cancer patients and survivors.Acknowledge Lance's dedication but separate the man from the Foundation.Bring in third party support ex: Sanjay Gupta, Livestrong advocate Evan Handler on Katie Couric, cancer survivors helped through Foundation, etc. Facilitate open conversations with media and reporters.

Crisis Communication: TacticsDiscussion Question #2 Do you think it was a good idea that the organization had two main internal spokespeople? How could this benefit or work against an organization amidst crisis?CourtneyStakeholdersInternal:Livestrong Foundation (Employees)Lance ArmstrongJuan Pelota Caf & Mellow Johnnys (bike shop)DoctorsTrainersLance Armstrong biking teamLance Armstrong Athletes for Hope CharityLivestrong Foundation (Survivors)Sponsors: Nike, Trek Bicycles, Oakley, Giro (bike helmets), FRS (energy products), Honey Stinger (energy products), 24 Hour Fitness, RadioShack, US Postal Service, Anheuser-Busch, American CenturyUSADAInternational Cycling UnionExternal:CourtneyMedia: Armstrong Admits to Doping LaurenSadly, even Lance Armstrongs contrition is contrived, it seems. His mea culpa to Oprah Winfrey is not actually about apologizing to his fans and coming clean, so to speak, about his use of performance-enhancing drugs. Its about reducing liability and getting back on a bike in competition.In his meeting with Travis Tygart of the US Anti-Doping Agency, Armstrong apparently whined about being singled out, pointing to the fact that sports in generalfootball, baseballare rife with drug cheaters. Hes right. He was singled out. And he deserved to be, not only for the cheating and the lies, but for the attempts to intimidate and destroy those who were seeking the truth about him.January 15January 16October 26Victims of Lance Armstrong's strong-arm tactics feel relief and vindication in the wake of U.S. Anti-Doping Agency report. The evidence published this month by USADA shows that Armstrong and his cronies possessed a cynical assuredness that their yellow wristbands entitled them to smash anyone who threatened their corrupt regime.Media: Critical Towards ArmstrongVictims of Lance Armstrong's strong-arm tactics feel relief and vindication in the wake of U.S. Anti-Doping Agency report

With His Admission Of Doping, Lance Armstrong Could Also Take Down Some Very Powerful People And CompaniesLance Armstrongs confession seems to be just another calculationLaurenDonations are strongBig sponsors, like Nike, who severed all ties with Armstrong, re-signed with LivestrongNot sure Livestrong needs a celebrity front man"For us, we just have to stay focused on the mission"January 16January 17February 26Before Oprah Interview aired, Livestrong urged Armstrong to come cleanArmstrong resigned as chairman in October, left the board entirely a few weeks laterLivestrong statement: "Inspired by the people with cancer whom we serve, we feel confident and optimistic about the Foundation's future and welcome an end to speculation"Cancer survivor says "The Foundation should not be held accountable for Armstrong's deception"Others who support the charity that say Livestrong is now bigger than himLivestrong tells Armstrong: Be truthful about dopingLivestrong likely to survive Armstrong doping admissionInside Livestrong After Lance ArmstrongMedia: Supportive of LIVESTRONGLaurenFallen hero and tattered credibilitySome call it Liestrong or LivewrongPurpose of Livestrong questionedWas it a front for doping?Livestrong bracelets removed as supporters question integrityLawsuits and continuous allegationsAfter Lance refuses to go forward with USADA allegations, donations climb 25 percent from day beforeSome donors want money backLivestrong employees devastated

Short Term Reputation Impact

CourtneyFoundation's financial health appears unscathed from Armstrongs scandal.Livestrong had $49 million in revenues in 2012, down 2% from 2011 amidst economic conditions.Sponsorship renewals might be affectedSponsors could get backlash from pulling from an organization which serves so many with cancer.Contributions to Foundation rose. Reported revenue of $33.8 million, up 2.1 percent since October 2012.Long Term Reputation ImpactWill Livestrong survive? Yes. Absolutely Yes. Andy Miller, Executive VP of Operations CourtneySmoldering issue - Since detection in 1999, the Livestrong Foundation did not take action until 2012. According to SCCT, this was a preventable crisis cluster - misdeed by managementArmstrong became a reputational threatResponse StrategyLance Armstrong Foundation changes to Livestrong Foundation.Quick action of dissociating from Lance as independent tarnished figure.Bolstering and diminishment strategies utilized by the Foundation.MessagingDoug Ulman, CEO of Livestrong, as spokesperson (WSJ)Response focused on survivorship and foundation stakeholdersReassurance that Livestrong's sponsors will continue to support

AssessmentKevinGetting caught is just the beginningThe USADA says it still wants a full confession of all activities under oath.Blaming yourself is not the same as telling it allArmstrong says he deserves this, but there are allegations he still denies.People will believe a lieMillions believed him, adored him, and wore yellow bracelets in supportBe nice to people on your way upYou may meet them on your way down. Lance has.It's hard to regain trustThe lies and bullying affected family, friends, supporters, sponsors, etc. Hindsight is 20/20At the time, Armstrong felt he was not doing anything wrong.The bigger they are, the harder they fallLessons Learned: According to CNNLaurenPreventable crisis cluster = strong organizational responsibilityRebuilding strategies

Diminishment

ApologyRecommendations and SCCTThat doesn't mean it isn't going to be hard. It's going to be bumpy, challenging, turbulent...we are in the business of survivorship, that's what we do. Now we find ourselves dealing with the same circumstances in a totally different place. - Doug Ulman CEO of Livestrong

CourtneyMaintain good relationships and brand recognition"Lance has stated his innocence and has been unwavering on this position. Nike plans to continue to support Lance and the Lance Armstrong Foundation, a foundation that Lance created to serve cancer survivors," Nike said in a statementSince 2004, Nike has helped Livestrong raise over $100 million and created the Livestrong yellow wristbands that became a global phenomenon with over 84 million bands distributed.American Century recently announced that it will be re-naming its target-date funds effective May 31, dropping the name Livestrong from its popular and successful line of funds. Since 2006, American Century has been associated with the Livestrong Foundation, contributing more than $8 million to promote cancer research.RecommendationsKevin

RecommendationsThe Livestrong Foundation should have take all allegations seriously and investigated earlier.Further demonstrate the separation between the Foundation and Lance. As time passes, the need to demonstrate this will minimize and Foundation can move forward. (Rebuilding)Show concern (SCCT) to the stakeholders impacted by crisis.Attempt to separate Lance from the organization could have happened sooner given the extensive evidence that built up.Discussion Question #3: Lance apologized for his misdeeds but Livestrong did not issue a formal apology...Do you agree with this approach? Why or why not? CourtneyQuestions?ReferencesAlbergotti R., O'Connell V., Vranica, S. "Lance Armstrong Gets Dumped." Wall Street Journal. Web. 18 Oct 2013.Associated Press. "Spain Probes Lance Doping ring." ESPN. ESPN Internet Ventures, 03 May 2013. Web. 02 May 2013.Brumfield, Ben. "7 Lessons Lance Armstrong's Confession Has Taught Us." CNN. Cable News Network, 19 Jan. 2013. Web. 06 May 2013.Crutchfield, Dean. "Livestrong: Can It?" Forbes. Forbes Magazine, 17 Oct. 2012. Web. 04 May 2013.Fox, Emily J., and Chris Isidore. "Nike Ends Contract with Lance Armstrong." CNNMoney. Cable News Network, 17 Oct. 2012. Web. 05 May 2013."How Will Lance Armstrong's Admission Affect Livestrong?" KatieCouric.com, n.d. Web. 03 May 2013.Isidore, Chris. "Lance Armstrong: How He'll Make Money Now." CNNMoney. Cable News Network, 16 Jan. 2013. Web. 05 May 2013.Isidore, Chris. "Lance Armstrong Keeps Nike, Anheuser-Busch Deals." CNNMoney. Cable News Network, 24 Aug. 2012. Web. 05 May 2013."Lance Armstrong Is Still Our Man, Nike Says." NBC News. NBC News, Oct. 2012. Web. 08 May 2013."Lance Armstrong Steps down." ESPN. ESPN Internet Ventures, 17 Oct. 2012. Web. 06 May 2013."Lance Armstrong Stripped of Tour De France Medals." CBSNews. CBS Interactive, 22 Oct. 2012. Web. 03 May 2013."Lance Armstrong Tells Oprah He Doped to Win." CBSNews. CBS Interactive, 15 Jan. 2013. Web. 02 May 2013."Livestrong Tries to Move Beyond Armstrong Doping Scandal." The Chronicle of Philanthropy. N.p., 28 Feb. 2013. Web. 06 May 2013.MacLaggan, Corrie. "Exclusive: Livestrong Cancer Charity Drops Lance Armstrong Name from Title." Reuters. Thomson Reuters, 14 Nov. 2012. Web. 05 May 2013.ReferencesMacur, Juliet. "Armstrong Ends Fight Against Doping Charges." The New York Times. The New York Times, 24 Aug. 2012. Web. 05 May 2013.Memmott, Mark. "Lance Armstrong Admits Doping, Oprah Winfrey Confirms." NPR. NPR, 15 Jan. 2013. Web. 05 May 2013.Pearson, Michael, and Kevin Bohn. "Livestrong Tells Armstrong: Be Truthful about Doping." CNN. Cable News Network, 16 Jan. 2013. Web. 05 May 2013.Press, Associated. "Livestrong Announces changes." ESPN. ESPN Internet Ventures, 28 Feb. 2013. Web. 05 May 2013.Rauch, Isaac. "Excerpts From The Recent USADA Report That Make Lance Armstrong Look Like An Asshole." Deadspin. Deadspin, n.d. Web. 01 May 2013.Schrotenboer, Brent. "Lance Armstrong Cuts Ties to Livestrong, Resigns from Board." USA Today. Gannett, 12 Nov. 2012. Web. 01 May 2013.Thompson, Terry. "Victims of Lance Armstrong's Strong-arm Tactics Feel Relief and Vindication in the Wake of U.S. Anti-Doping Agency Report." NY Daily News. NY Daily News, 30 Oct. 2012. Web. 05 May 2013."USADA Report on Allegations Against Lance Armstrong." WSJ.com. USADA, 10 Oct. 2012. Web. 02 May 2013.Vertuno, Jim. "Justice Department Sues Lance Armstrong Over Doping for Tour De France Wins." NBC Bay Area. NBC News, 23 Apr. 2013. Web. 04 May 2013.Weislo, Laura. "Index of Lance Armstrong Doping Allegations over the Years." RSS. Cyclingnews.com, 16 Jan. 2013. Web. 01 May 2013. Wharton, David. "Lance Armstrong Scandal Creates a Mess in Spain." Los Angeles Times. Los Angeles Times, 03 May 2013. Web. 05 May 2013."What Armstrong's Doping Confession Means for LIVESTRONG." Fox Small Business Center. WSJ News, 15 Mar. 2013. Web. 08 May 2013.