Crisis MGMT Case Study Team - 5.15 1155AM

You might also like

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 22

Lance Armstrong

Lauren Dixon, Kevin Hsia and Courtney Scharff


Who is Lance Armstrong?
Seven time Tour de France winner between 1999 and 2005
Raced professionally on Motorola, Team Radio Shack, US Postal Service
Diagnosed with testicular cancer at age 25 which spread to his brain,
lungs and abdomen
Beat cancer in 1997 and founded the Lance Armstrong Foundation to
help others with cancer
Faced allegations of doping for most of his professional cycling career



Doping Allegations Begin
Allegations 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 7
th
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 23
rd
in the Tour de France.

1999
2000
2004
2005
2006
2008
2009
2010
Doping Allegations Unfold
Armstrong 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.





2012
June
August
Oct 22
Oct 17
Nov 12
2011
February
LIVESTRONG Reacts
Armstrong 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 17
Oct 19 Armstrong attends gala: "We will not be deterred; we will move forward."


Response
He's our founder, he's been the inspiration for this movementso it's phenomenal for him to be
here tonight."- Foundation CEO Doug Ulman
Oct 30
The 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 Reuters
Nov 5
Armstrong resigns from LIVESTRONG Board of Directors
and new chairman Jeff Garvey issues statement.
LIVESTRONG Reacts
AM: Armstrong apologizes to Livestrong staff for doping
PM: Armstrong appears on Oprah and admits to doping as well as
participating in a doping ring throughout his career Appearance
Feb
Livestrong 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 Communications
Doug Ulman talks to TIME about Livestrongs future Appearance
Jan 14
Mar 11
Response
Discussion 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?
Social Media Activity
Oct 17
Content:
Armstrong to Step Down as Chairman
Jan 14
Response to NY Times- Official statement
about article questioning financials
Jan 16
Official 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 18
Grateful Beyond Measure
Engagement:
Some comments on Livestrong
Facebook show support
Livestrong doesn't
acknowledge each one but is
selective in response
Strategy:
Livestrong channels highlight
positive deeds of organization
to help separate from Lance
Highlight 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: Tactics
Discussion 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?
Stakeholders
Internal:
Livestrong Foundation
(Employees)
Lance Armstrong
Juan Pelota Caf & Mellow
Johnnys (bike shop)
Doctors
Trainers
Lance Armstrong biking team
Lance Armstrong Athletes for
Hope Charity
Livestrong 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 Century
USADA
International Cycling Union
External:
Media: Armstrong Admits to Doping
Sadly, 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 15 January 16
October 26
Victims 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 Armstrong
Victims 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 Companies
Lance Armstrongs confession
seems to be just another
calculation
Donations are strong
Big sponsors, like Nike,
who severed all ties with
Armstrong, re-signed with
Livestrong
Not sure Livestrong needs
a celebrity front man
"For us, we just have to
stay focused on the
mission"
January 16 January 17
February 26
Before Oprah Interview
aired, Livestrong urged
Armstrong to come clean
Armstrong resigned as
chairman in October, left the
board entirely a few weeks
later
Livestrong 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 him
Livestrong tells Armstrong: Be
truthful about doping
Livestrong likely to survive
Armstrong doping admission
Inside Livestrong After Lance
Armstrong
Media: Supportive of LIVESTRONG
Fallen hero and tattered credibility
Some call it Liestrong or Livewrong
Purpose of Livestrong questioned
Was it a front for doping?
Livestrong bracelets removed as supporters
question integrity
Lawsuits and continuous allegations
After Lance refuses to go forward with
USADA allegations, donations climb 25
percent from day before
Some donors want money back
Livestrong employees devastated

Short Term Reputation Impact
Foundation'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 Impact
Will Livestrong survive?
Yes. Absolutely Yes.
Andy Miller, Executive
VP of Operations
Smoldering 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
management
o Armstrong became a reputational threat
Response Strategy
o Lance Armstrong Foundation changes to Livestrong Foundation.
o Quick action of dissociating from Lance as independent tarnished
figure.
o Bolstering and diminishment strategies utilized by the Foundation.
Messaging
o Doug Ulman, CEO of Livestrong, as spokesperson (WSJ)
Response focused on survivorship and foundation stakeholders
Reassurance that Livestrong's sponsors will continue to support


Assessment
Getting caught is just the beginning
o The USADA says it still wants a full confession of all activities under oath.
Blaming yourself is not the same as telling it all
o Armstrong says he deserves this, but there are allegations he still denies.
People will believe a lie
o Millions believed him, adored him, and wore yellow bracelets in support
Be nice to people on your way up
o You may meet them on your way down. Lance has.
It's hard to regain trust
o The lies and bullying affected family, friends, supporters, sponsors, etc.
Hindsight is 20/20
o At the time, Armstrong felt he was not doing anything wrong.
The bigger they are, the harder they fall
Lessons Learned: According to CNN
Preventable crisis cluster = strong organizational responsibility
o Rebuilding strategies

o Diminishment

o Apology
Recommendations and SCCT
That 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
Maintain 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 statement
Since 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.
Recommendations
Recommendations
The 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?
Questions?
References
Albergotti 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.
References
Macur, 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.

You might also like