What is a company’s first mistake in responding to a crisis? No “holding statement.”
A holding statement is a media-ready initial response designed to control the message and address public concerns immediately following an incident. Such statements are the seat belts and airbags of a brand when a lawsuit is filed, a key executive is accused of misconduct or an angry client goes public without warning.
Here are the rules of survival:
- Tell it first; tell it fast; tell it all. (Don’t wait a week like Boeing did.)
- Acknowledge the situation and don’t be intimidated into thinking any apology proves you’re at fault.
- Explain what you’ve already done to address the issue.
- Provide a timeline of when and where there will be a follow-up action.
Even the most battle-tested CEOs have problems when their cellphone lights up after-hours with bad news. What would you say, or not say, if your company experiences a data breach, exposing customer or employee data? How would you respond to the reporter who calls about a lawsuit against your company that was just filed and is now public record? What would you say if an executive is caught up in a federal investigation?
TPG was prepared when the Varsity Blues cheating scandal came to its doors. It knew the action it would take and didn’t fail to decisively deliver the news on time for the reporter’s deadline. TPG moved swiftly, announcing the executive had been put on “indefinite leave” because of personal misconduct and in the same statement, the company named the executive’s successor. There was no hand-wringing or second-guessing. The speed and clarity of the statement and action made the firm look strong.
Drafting holding statements before a crisis hits prepares a company to weather the storm and ensure it will be less likely to blame and shame, and when handled correctly, these statements can enhance the image of the company.
More than 25 percent of a company’s market value is derived from its reputation, which can change in an instant because social media amplifies and weaponizes negative news. This is why it is crucial to assess your risk ahead of time and prepare holding statements that can be issued within the hour and a half window after a major crisis breaks.
Do you have holding statements in your crisis plan? Now’s the time to prepare.
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