Management Chapter 9 1 Instructor Resource Rowe Cases Leadership Sage Publications Inc Case Notes Case Ing

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Instructor Resource

Rowe, Cases in Leadership 5e

SAGE Publications, Inc., 2019

Case Notes

Case 9.1: Ing Direct Canada: Are You Suffering?

Gerard Seijts wrote this teaching note as an aid to instructors in the classroom use of the case,

ING Direct Canada: Are You Suffering? No. 9B13C037. This teaching note should not be used

in any way that would prejudice the future use of the case.

Teaching Note

Case Overview

As the chief executive officer (CEO) of ING Direct Canada (ING), Peter Aceto understood the

power of social media and the effect it could have on business. For that reason, Aceto was in the

Teaching Objectives

The case can be used in undergraduate, MBA, EMBA and executive development courses

involving leadership, crisis management, reputation and trust, and communication.

The case is intended to fulfil the following teaching objectives:

1. Students gain an understanding of the role of leadership and the need for effective

Assignment Questions

1. Executives at ING were genuinely surprised by the negative reaction to the TV ads.

The TV spots had been tested through social media, and no negative feedback had

resulted from the original testing. What did ING and/or its ad agency miss?

2. ING had already spent hundreds of thousands of dollars on the advertising campaign.

Pulling the ad at the start of the RSP selling season would be a difficult and costly

decision since February is the busiest month for Canadians to make RSP

Case Discussion

The theme of ING’s RSP campaign was “Are You Suffering?” This concept was derived from

survey data that showed that Canadians feel stress and anxiety when it comes to personal

financial matters in general but specifically around RSP time.

The TV spot showed a man feeling stressed and anxious about his RSPs. The ad proposed

that a cure for these feelings could be found in the features and benefits that ING provides to its

clients and prospective clients.

To cut through the busy period with RSP advertising, ING ads had to be provocative. The

bank’s original intention was to spoof the pharmaceutical industry, and, as with any ad

ING had unwittingly overlooked the fact that anyone who has been touched by mental

illness—either directly or indirectly through family or friends—would connect the ad’s humor to

the illness, not to the pharmaceutical industry. ING decided to make the tough call to pull the

Instructor Resource

Rowe, Cases in Leadership 5e

SAGE Publications, Inc., 2019

Diermeier argues that trust is the magic word in managing crises (or emerging crises) that

involve a company’s reputation.

Aceto maintained complete transparency during the events of the crisis. He did not try to

mask negative comments or shut down conversations—something that would be hard to do in a

real-time social media environment. He took ownership of the issue that ING faced. To

paraphrase Aceto, “I see something here. It’s different from what I’ve seen before. Here’s my

point of view about it. Here’s what I think we should do about it.” No one in the organization

Instructor Resource

Rowe, Cases in Leadership 5e

SAGE Publications, Inc., 2019

the bank was trying to do and, in the process, helped reveal its brand character. The article by

Kellerman

can be discussed in class to reveal what a good apology looks like.

Exhibit TN-1 lists 10 rules for crisis communications, several of which can be seen in

Leadership Behaviors for Managing a Crisis

Fast: Whenever possible be the first to bring a crisis situation to the attention of your publics. If

you are the wellspring of information right from the beginning, you will have a greater degree of

control. The fact that you make the first announcement will also earn you some goodwill credit,

which you might very well be glad to have.

Fully: Don’t hold back. Provide as much detail as possible. Picking and choosing

information, especially information that ultimately will come out, will erode your credibility later

Feedback: Remember, communication is two-way. Be as committed to listening as you are

to talking. The information you gather from feedback may help you modify your program more

effectively.

Feeling: Where situations call for it—and most will—human, compassionate reaction must

be expressed. In almost every crisis situation, there are victims. Sometimes people are killed or

hurt; sometimes people are just saddened or feel threatened. Victims must never be overlooked

Lessons Learned

ING learned several lessons from the events that transpired:

1. Things happen instantaneously, get shared quickly and snowball faster than ever

before. Be on top of it.

3. Have good risk management practices in place plus mitigation plans; always

anticipate risk during operations and production or reviewing creative content.

4. Having a values-based approach can help organizations to address challenging

5. The leader takes ownership and accountability for events. Peter Aceto demonstrated

several other dimensions of leader character: collaboration, humanity, humility,

6. The importance of transparency, commitment, and empathy in building or

maintaining trust was reinforced by the ING ad issue. First, people want to hear from

the company and the executives who provide leadership; people have questions and