Crisis Management Advice for Big Shots

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But we expect you to act in a more courageous manner than we would.

In reality, reputations are cemented or broken in adversity. So take an inventory of what you know and don't; tell the full story to the best of your ability. Deliver that same message consistently across all channels. Take responsibility for your actions. Keep us up to date on your progress and never downplay the impact of your mistake. Your customers are more tolerant of errors than of sandbagging, foot-dragging, and cover-ups. Don't allow the moment to bring out the worst in you.

Accept Reality: Deep inside, you know the awful truth lies beyond the lives you've damaged and trust you've lost. In the future, nothing will ever be the same for you and your company. Even when you eventually correct the situation, your name will be forever associated with this mishap. Fair or not, you'll be trotted back into the limelight with every new crisis.

Fact is, what's done is done. We don't want to hear you justifying, finger-pointing, evading, spinning, or lashing out. Sure, you can splash glossy ads, hefty donations, and public genuflections everywhere we turn. In reality, the best strategy is something that doesn't come naturally: holding your tongue.

You see, we want you to stand there and take it, to know how angry and afraid we feel. Even more, we want a win, to believe this event had a larger meaning. And that goes beyond giving us a sacrificial lamb and declaring a fresh start. To satisfy this innate desire, you'll need to make concessions to your critics, lead larger initiatives, and invest more in your communities (as if you weren't doing that already).

As in our personal lives, it often takes a crisis before we step back and reevaluate. Most likely, that area your organization once disregarded—design, quality control, security, compliance—will define your path for years to come. It will be a long and uncomfortable process to pick up the pieces internally. And it will be no different with your public rehabilitation from corporate pariah to reformed sinner. That's what you'll be facing: winning back your reputation one customer and employee at a time.

Take Advantage of the Spotlight: Chances are that I, like the rest of the public, know precious little about you. Along with sharing the facts, don't be afraid to outline your industry's unique challenges and benefits. Shed light on all your good works that get buried in your press releases and annual reports.

As children, our mothers taught us: You break it, you buy it. The same holds true now. You've had a serious lapse, so take ownership of it. Use this moment to take the lead, inspire, and set the example.

Don't Make Another Mistake: You're providing great source material for late-night comics and YouTube (GOOG) parodies. Your competitors, who'd normally gloat, worry your stench will rub off on them. The cynics will claim you skirted the rules or turned a blind eye to your company's practices. But I think it boils down to something else: a failure of imagination.

While you need to understand what happened, the greater threat is often what you cannot yet envision. So step out of your comfortable confines and war-game. Deconstruct your operation, evaluate potential risks, and get your plans, structures, and budgets up-to-date and in alignment so you don't perpetrate another blunder. Remember, the best publicity is often no publicity.

Consider yourself fortunate if you survive the blowback. In our lives, we all seek a second chance. Stay humble and capitalize on it, because you'll never get a third.

Jeff Schmitt has spent 17 years in sales, marketing, project management, training, legal compliance, and recruiting. A former online columnist for Sales & Marketing Management, Schmitt lives in Dubuque, Iowa. You can reach him via e-mail or follow him on Twitter.

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