Phelps Dodge Corporation
Business Restructuring
Situation:
Following a significant market downturn, this global Fortune 500 mining and manufacturing firm faced the reduction of multiple facilities in the United States, Asia and Latin America. The changes meant a significant decrease in production, substantial layoffs and the closure of a company town. Ceres leadership developed a comprehensive communication plan to manage and minimize a decline in the value of its stock, employee outrage and resistance from unions and community and political leaders.
Approach:
- Developed a comprehensive strategic plan to address the issues and ensure timely, clear and compassionate communication to national audiences and stakeholders across five states and three countries.
- Provided communications coaching and counsel for executive and operational leadership.
- Crafted and coordinated all public announcements for national media, analysts and investors, lenders and rating agencies, and managed contact with key customers.
- Conducted briefings with U.S. government officials.
- Coordinated local outreach to employees, community leaders, various regulatory agencies, media, unions, political and business leaders.
- Established a Web site and hotline designed to respond to questions and concerns from associates.
Results:
- The company completed the restructuring with no adverse impact to stock price, minimal disruption to operations and no resistance from union, political or community leaders.
- Stakeholders reported a clear understanding of the reasons behind the company’s decision and its positive long-term effects on the business.
- Laid-off employees thanked company leaders for their compassion during the process