What Are CEOs Doing Wrong With Their Crisis Communications?

The current pandemic has created challenges for all businesses. Some CEOs fumble with communication strategies, with terrible consequences to their share price, company reputation, and employee morale.  But it doesn’t have to be that way; effectively managing bad news can help organizations recover more quickly.

Here are some effective communication strategies during a crisis.

“Sharing your own bad news first – or stealing thunder – is a tactic to take the bite out of the bad news. It allows you the opportunity to provide context and rationale. CEOs should have all the facts and be transparent the information. As well, this current crisis is a human tragedy as well as a financial challenge, and executives can convey empathy to those affected.”

Claire Celeste Carnes, an Adjunct Professor teaching Healthcare Marketing at NYU’s Wagner Graduate School of Public Service, shares this and other strategies for CEOs based on a dozen years spent in the risk-averse area of healthcare marketing and communication.

Crisis management is a process, which include managing and communication during a crisis and the post-crisis follow up. During a crisis, the communication objectives are to manage information and also manage meaning by influencing the perception of the crisis or the organization involved in the crisis. 

Time is of the essence during a crisis; executives cannot wait to respond as the vacuum information will be filled by speculation or other information sources. To own their narrative, per Carnes, all CEOs should observe these best practice tactics in crisis communications:

·      Create and maintain an internal document about the known information and the key messages.

·      Have a daily check-in internally to confirm the information and answer any questions

·      Identify trusted spokespeople including those who can talk to different areas of the topic

·       Admit when the answer to a question is not known

·       Acknowledge gaps or ways to do better

·      Express not just the business or operational information, but also acknowledge when there is a catastrophe affecting lives, health or well-being, or that takes an emotional toll

·      Identify trusted sources of information, such as patients that have recovered, who can speak to media

The content of the communication varies based on the issue and is designed to reduce the negative impact. The communication could include:

·       Instructions, such as when to come into an emergency room

·       Greater background about a situation

·       Corrective actions taken

·       Expressions of sympathy

·       Redress, in which the victims’ concerns are prioritized and the company helps to make it right.

·       Positive information, such as highlighting success stories, reminding people of past positive good works, or thanking employees; this is referred to as bolstering.

Carnes particularly cautions on two areas to avoid:

·       Scapegoating, which is shifting the burden or responsibility

·       Denial, which is risky; if evidence comes out to the contrary, the damage is intensified

Managing communication to employees is a key part of the crisis communication strategy.  If employees trust management and have appropriate mechanisms, it can become a strategic advantage.  Without trust, employees can use external channels to vent.

When the content of the crisis is around employee relations, CEOs should recognize that any public-facing news story could demonize the employer; “people tend to take the side of the underdog in a David-versus-Goliath story,” noted Carnes. “Consumers do not have much sympathy for large corporations.”

Post-crisis, CEOs should evaluate the effectiveness of the communication and what they can learn and do better next time. Key metrics include:

•      Press pick-up, tone, and opinion

•      Efficacy of spokespeople

•      Social media activity and sentiment

•      Effectiveness of communications channels including website

•      Employee questions

•      Financial impact

Crises can arise from actions of employees whether intended or accidental; natural disasters or other external forces; or a confluence of events. “All companies will have to deal with crisis communications, whether or not it is of their own making. It’s not an if, it’s when. Therefore, having a proactive plan is essential.”

How CEOs communicate is a key component of their actions in the crisis. It’s also a strong determinant of their company’s share price, employee relations, and reputation.