Wednesday, March 24, 2010

Learning from a Crisis

A few weeks ago, I wrote a post about Pfizer being under investigation by the DOJ for its marketing of an immunosuppressant drug, Rapamune. Until the results of the probe are revealed, it is hard to say what effect it will have on Pfizer; however, in the meantime their communications department and Crisis Management Team should be evaluating what can be learned from this potential crisis.

Many experts believe that crises are both negative situations and opportunities for organizational learning. The success of crisis communications is defined by whether or not an organization learns from each crisis. Levels of learning differ, but the most advance level is to change organizational policies and procedures to prevent a crisis from happening in the future.

In the case of Pfizer’s DOJ probe, the learning should be easy. The Crisis Management Team should begin by evaluating what advertising and marketing is being done on Rapamune and all other drugs. This process could include monitoring any complaints that have been turned in by consumers. Should any violations or problems present itself, Pfizer needs to change its marketing policies and techniques to ensure the problem does not happen again.

Any crisis can be turned into an opportunity if an organization takes the time to evaluate and learn from the crisis. This includes taking steps to change organizational policies and procedures to ensure future crises do not repeat themselves.

Wednesday, March 17, 2010

Ex-Pfizer Worker Cites Genetically Engineered Virus in Lawsuit over Firing


On Monday of this week, court proceedings began in the suit of a former Pfizer employee who claimed she was fired as the result of being infected by a genetically engineered virus she was working on. Becky McClain alleges that a lack in laboratory safety led her to be infected with a virus that is now causing her intermittent paralysis. McClain also alleges that after she reported her concerns to Pfizer and the US Occupational Safety and Health Administration (OSHA) she was fired for “blowing the whistle” on Pfizer’s below standard safety procedures. McClain has filed her claim under Connecticut’s whistle-blower laws.

McClain’s lawsuit is, in fact, a crisis for Pfizer. A former employee is not only saying that the company failed to protect her personal safety, but they fired her because she tried to tell the world about it. Attacks on companies do not get much worse than this. However, Pfizer is handling this lawsuit and its ensuing crisis beautifully.

Pfizer lucked out in that OSHA is on the drug giant’s side. McClain’s complaint was dismissed after OSHA reviewed the evidence and even went as far as to criticize her for not accepting the accommodations Pfizer was willing to offer (Pfizer offered to move her to a different facility where she would be exposed to less vigorous viruses). With OSHA on their side, Pfizer has a credible third party to state that the company’s safety practices are up to par. A fact that they have been stating to every news outlet that asks for an interview. Pfizer should also consider publishing fact sheets or creating a video of what safety measures are taken in their labs.

Pfizer also claims that McClain was fired for failure to attend work and that the connection made between her symptoms and the virus were made after the fact. If Pfizer can prove that McClain never mentioned a possible connection prior to being fired, she loses her case, as it cannot be filed under the whistle-blower statutes. The company is also doing a great job at utilizing a single spokesperson – public relations specialist, Elizabeth Power. Power is the only person commenting on the case, an important element to ensure continuity in the information being disseminated.

Despite the potential fallout from this lawsuit, Pfizer is doing a great job at sticking to the facts and providing cohesiveness to the messages being disseminated. As long as they keep doing what they are doing, Pfizer should be able to make it out of this crisis without a huge hit to their reputation.

Wednesday, March 3, 2010

DOJ conducts criminal probe of Pfizer unit's drug marketing

Last week, it was announced that federal prosecutors in the western district of Oklahoma were investigating Pfizer for their marketing of the immunosuppressant drug, Rapamune. Pfizer inherited the drug when they purchased Wyeth last year. Both federal prosecutors and a Pfizer spokesperson declined to comment on the action. The probe was announced by Pfizer in a regulatory filing last Friday.
In the broad spectrum of crises that Pfizer could face this probe, and any future legal actions, are somewhat major. At the moment, the probe is barely a blip on the crisis scale. It is unknown the source of the probe, but it is unlikely it’s anything more than a few consumer complaints. The true crisis will hit as a result of the probes findings. If it is determined that Pfizer did nothing wrong and no legal action is taken, the probe will be forgotten by the public at large. However, if federal prosecutors decide that Pfizer violated laws in the marketing of the product it could result in a multi-million dollar law suit and a number of legal sanctions.
It will be months before any action is taken as a result of the probe, so in the meantime Pfizer needs to be preparing for this potential crisis. Any good communications department already has a crisis management team and plan in effect. They know exactly who needs to be contacted and which team members are going to play the most vital role (in this case legal counsel will probably be at the forefront). Pfizer needs to focus on establishing and monitoring an information-gathering system. Managers and effected staff need to be sharing information with each other. Everyone must be on the same page and have key messages identified in the case of the probe reaching a full-blown crisis. The most important element is making sure that the information being collected is accurate and relevant. This might mean doing in-depth research on the marketing of the drug compared with how other immunosuppressant drugs are being marketed or looking into laws relevant to the marketing of drugs.
Regardless, Pfizer’s managers and communications experts need to be preparing for this minor blip to become a full blown crisis.