Ten rules for communicating in a crisis

The line of organizations delivering bad news recently has been a long one. The ripple effect from the financial market crisis continues to spread, affecting non-profits, real estate, hospitals, energy companies, governments, and much more. Having spent many years starting at the tip of the media's spear, we are often asked for our time-tested rules for communicating in a crisis. We have outlined them below for your consideration.

1. Tell the truth.
Warren Buffet said it best: “It takes 20 years to build a reputation and five minutes to ruin it.” The press and the public have an uncanny ability to uncover the truth in a crisis, so it better come from you. Deliberately spreading false information is the easiest way to damage—perhaps permanently—your company’s reputation with the press and the public.

2. Don’t just respond to crises—plan for them.
Forward-thinking companies identify their vulnerabilities ahead of time, anticipate challenges to their reputation, and plan accordingly. A strategic crisis planning exercise—one that identifies stakeholders, designates messengers, and outlines tactics in advance of a crisis—can be the single-most effective means for mitigating a crisis.

3. Define your audience.
Ask yourself whose opinion truly matters in a given crisis. Perhaps opinion leaders at major news organizations are your target audience. Maybe it's your customers. In other instances, it may be shareholders or small-town community leaders. Identify the audience that matters to you, and develop your communications plans around them.

4. Sharpen your message.
Few things are as ineffective as a rambling spokesperson or a long-winded press release. Before communicating publicly, develop a simple yet compelling message that speaks directly to your target audience and repeat it relentlessly.

5. Make news on your terms.
Far too many organizations go silent when a crisis hits. Doing so virtually guarantees your reputation will be defined by critics. When a crisis emerges that will test your reputation, respond quickly and decisively on your own terms.

6. Be sympathetic.
Organizations that appear poised and concerned about the public welfare generally succeed; those that appear impatient or indifferent to the concerns of the public generally do not.

7. Mind your own ranks.
Internal communications can be the difference when communicating in a crisis. Your employees represent your company at home and in the community. Keeping them informed during challenging times demonstrates leadership, maintains morale, and eliminates confusion and uncertainty.

8. Bring in reinforcements.
Getting beat up in the press? Help your cause by recruiting reputable, outside voices to defend your company. A public statement from a respected elected official, statesman, community leader, or even a local celebrity can help isolate your critics.

9. Don’t take it personally.
Reporters aren’t paid to give you good press or to be your friend. They are paid to ask tough questions and to be fair in their coverage. If you think a reporter’s coverage has been inaccurate or unfair, let that media outlet know. But don’t lose your composure - especially in public - just because they ask hard questions and report hard facts.

10. Know your ground rules.
Always assume your conversations with a reporter are on-the-record—whether in your office or by happenstance in public. There is a time and place for off-the-record discussions, but make sure you and the reporter are clear about what is fit for print.

Some of these rules may sound like common sense. Indeed, they are. But news of the past few months demonstrates that even the most accomplished executives can lose sight of common sense in the fog of crisis. The question is where your reputation will stand when the fog finally clears.

If you have questions about communicating in this challening economic environment, give us a call or send us an e-mail.

Lessons from Wall Street

Sifting through the news on Wall Street this month, there are plenty of “if only” scenarios to explore. We’ll stick to what we know: communicating effectively. As The Wall Street Journal (subscription required) points out, corporate boards often have weak or nonexistent crisis communications plans. Here’s a clip from the article:

“This month's meltdown of several financial giants exposed a serious flaw in corporate governance: Many U.S. boards don't cope well with a crisis. But some directors are now ratcheting up efforts to anticipate, and avert, trouble. Too many boards are stocked with poorly prepared directors, who fail to ask enough tough questions or adequately scrutinize management, governance specialists say.”

Communicating effectively in a crisis usually means more than talking to reporters. Whether an organization is large or small, it often means communicating with management, board members, employees, customers, reporters, and if applicable, shareholders, regulators, and elected officials, to name a few. This is no easy task, but the more effectively we communicate with each stakeholder the more likely we are to eliminate confusion and weather the storm.

We are big believers in having a communications plan in place before a crisis. A good plan generally identifies an organization’s stakeholders, who will communicate with them, and what means they will use to communicate. It will also identify who is responsible for developing the message. Some companies even stage a "live fire" mock crisis that puts its plan and management team to the test. At the end of the exercise, management can identify what aspects of the plan worked, what didn’t, and how to improve it.

If you have additional questions about how to develop a crisis communications plan, give us a call or send us an e-mail.

Some lawsuits are more than just lawsuits

America's favorite coffee shop has dominated the headlines of late due to its dramatic "right-sizing" announcement, but today we focus on a seperate matter that has dogged Starbucks for years: a series of class action lawsuits alleging violations of the Fair Labor Standards Act. Most recently, a Superior Court Judge in California ordered Starbucks to serve up $100 million in backtips to its baristas, who claimed that supervisors were sharing tips in violation of state law.

Put yourself in a reporter's shoes: The enormity of Starbucks' market share, its large and increasingly unionized workforce, and the ubiquitous role the company plays in American life makes the story too good to pass up. When the press catches interest, the company's reputation is at stake with the public at large.

Lawsuits like this reinforce our belief that crisis planning is as valuable as crisis response. Forward-thinking companies identify vulnerabilities, anticipate challenges to their reputation, and plan accordingly. Enter McDonald's, the fast food giant that is taking an innovative approach to communicating with employees. McDonald's intends to hire a company blogger for its internal website - called "StationM" - to more effectively communicate with an increasingly web-based workforce. StationM also allows employees to network with one another, share photos and videos, discuss best practices, and - hopefully - build a sense of family pride in the McDonald's brand. It also gives McDonald's a hi-tech approach to preventing the employee discontent Starbucks faced by educating mid-level supervisors about acceptable and unacceptable practices in the workplace.

Hiring a blogger will not alone prevent FLSA lawsuits, particularly for companies like McDonald's and Starbucks that have combined workforces of nearly 900,000. However, innovative approaches to employees relations can help mitigate the challenges many companies face in such a litigious society.

The Clydesdale Controversy

Anheiser-Busch, Budweiser's parent and a 156-year institution in St. Louis, has rejected an unsolicited takeover bid from InBev, a global beverage giant headquartered in Belgium. While many factors are at stake in this month-long controversy, the InBev case is a reminder of the community relations challenges companies face when treading on unfamiliar soil, particularly when the acquirer is a foreign company. Many St. Louis residents expressed confusion and sadness at the prospect of A-B turning itself over to foreign hands. Opponents of the takeover launched a website to stop the deal in its tracks. InBev cut an obligatory video to show its commitment to the St. Louis community, but so far it isn't enough. As U.S. Senator Claire McCaskill told InBev's CEO, Missouri citizens are left wanting more.

InBev is not the first foreign company to face such resistance. Washington went wild over the prospect of Dubai Ports World managing certain operations at eight U.S. Ports. Lenovo saw local resistance to its acquisition of an IBM personal computer manufacturing plant in North Carolina. The list goes on.

Whether a company is establishing a presence in a new state or country, a well-planned grassroots "ground game" is in order. A strategic information campaign that minimizes confusion, accounts for local sentiment, and eases the uncertainty of local residents and media can help a company achieve its objectives.