BulletProofBlog the blog on crisis communications

When corporate crises strike, the first (and quite natural) inclination of executives and board members is often to hunker down and say nothing - lest someone make a mistake that could make a bad situation worse. But according to a recent survey of more than 100 traditional journalists who cover the financial services industry, failing to promptly provide the media with information or access to key personnel is the biggest mistake that a company in crisis can make. Nothing new there, but it is a powerful and authoritative reminder that comes at a good time.
 
In the midst of the current financial crisis, nearly 80 percent of the respondents to this survey cited failure to disseminate information as a leading cause of bad press. Seventy-six percent reported that failing to respond to reporter requests for comment can lead to negative coverage. And 70 percent credited "evasive responses" with many of the harsh headlines that have been damaging the reputations of countless financial services providers in recent months.

These figures show that despite unprecedented levels of investor and consumer anger in the marketplace, financial services providers still maintain a surprisingly high measure of control over how they are portrayed in the traditional media. The problem, according to those doing the portraying, is that companies under fire simply don' t take the reigns and do what' s necessary to shape the ensuing narrative.

To reverse this trend, financial services providers need to realize that "no comment" is akin to uttering "we' re guilty" in this age of instant and lasting impressions. They need to anticipate bad news and think like a customer. Audiences will understand complicated and unpopular positions if you plan ahead and take the time to inform. Speed of response is essential, given that 90 percent of respondents in the survey said timeliness is key to positive coverage in crisis (to put that number in perspective, 85 percent cited honesty as a driver of good press). And, finally, they need to be willing to put their leaders on the front lines of the public debate. Media access to leadership demonstrates that a company has nothing to hide; while keeping leadership hidden from the public eye demonstrates a lack of confidence in the company' s position.

In crisis, running to the light, rather than from it, is usually the best way to ensure that control of your story isn' t ceded to someone else - plaintiffs counsel, regulators, bloggers, journalists, or politicians. This takes courage and leadership in a time of the greatest uncertainty. But if history is any guide, it also pays the best and longest term dividends.