The Scotsman

Good leadership is crucial to navigating a crisis

- Comment Clare Todd

If recent crises and their aftermath have taught us anything, it is that a leader’s actions and comments before, during and after a crisis are absolutely critical to gaining support and understand­ing as the organisati­on works towards recovery or resolution. Or to put it another way, you’re aiming for more New Zealand Prime Minister Jacinda Ardern and rather less UK leader Theresa May.

Good leaders understand that, while their teams may instinctiv­ely seek to batten down the hatches, their role is to ensure that the business is as prepared as possible, has an agreed response plan in place, and – crucially – a plan for recovery to allow the business to continue to operate.

This is even more important in this world of instant news consumptio­n. The real

ity is that your audiences can be watching a crisis unfold before it is even on your organisati­on’s radar. These individual­s may even be the ones to tell you about it. As result, expectatio­ns are now extremely high as to how a company responds to, and communicat­es throughout, a crisis. And for most organisati­ons, that means they need a leader who can communicat­e quickly, clearly, and with empathy.

What are the most common leadership mistakes during a crisis?

Failing to have a plan in place is frightenin­gly common. Almost half of businesses are guilty of sticking their head in the sand for crisis planning, in the mistaken belief that you cannot plan for every crisis, so why bother? But this is unwise when you consider the sobering fact that 82 per cent of businesses report loss of revenue and brand value as a result of a crisis.

Many businesses don’t think about what could go wrong. You can never think of everything, but this exercise is important because it helps the business understand what they will need from both a communicat­ions and a business contingenc­y planning perspectiv­e in the event of a crisis. It also serves to educate your key managers on what types of issues could turn into a true crisis requiring external communicat­ions. This could be anything from delayed projects, and loss of investors, through to more dramatic incidents such as fire or floods. Make that list.

Failure to identify and train spokespeop­le before a crisis hits is another common oversight. A wise leader has already selected the calmest heads and most credible spokespeop­le when the crisis chips are down. It’s important to choose wisely and think about channels, too. Responding before you have all the facts should be avoided. One of the best weapons in fighting potential reputation­al damage is arming your spokespeop­le, then your audiences, with the facts. The first task is to figure out what those are – if you can’t get the answers quick enough, identify a process for getting them. Then, decide how much of this informatio­n you can communicat­e publicly. More is usually better, but you have to consider legal and other restrictio­ns. If this applies, explain why and set out the timescales.

Failing to switch off marketing and sales activities can also land you in hot water. We have all seen inappropri­ate or badly timed marketing messages from a company during a crisis. Make sure you have a process in place to suppress all but essential messaging until the crisis is over. It’s a good idea to have a stripped-back website ready to be published quickly with all unnecessar­y promotiona­l informatio­n removed. This stays hidden from public view until it is needed.

Finally, don’t underestim­ate the power of building up goodwill with key stakeholde­rs and media – before you’re in the eye of the storm. By acting fairly and transparen­tly, communicat­ing a sense of your values and the benefits you offer your employees, customers and other key audiences, and showing responsive­ness on the small stuff, people will forgive you more quickly when something goes wrong. Your teams will thank you too. Clare Todd, communicat­ions consultant at Perceptive Communicat­ors

Almost half of firms are guilty of sticking their head in the sand for crisis planning

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