BulletProofBlog the blog on crisis communications

Too Big To Fail, Andrew Ross Sorkin’s critically-acclaimed examination of how Wall Street and Washington responded to the greatest financial crisis since the Great Depression, is as detailed and insightful a study of the subject as has yet been written. From the frenetic pace with which the drama unfolds to the inside accounts of one excruciating decision after another, the book captures the essence of crisis in the Age of Accountability and offers indelible lessons for all businesses.

As someone who spent the better part of 2008 and quite a bit of 2009 in Wall Street war rooms, I was particularly impressed with the book’s accurate portrayal of how crisis alters the corporate leadership mindset – both for better and for worse. Sorkin illustrates how fear clouds sound judgment; how a CEO is forced to sift through conflicting advice; how the accelerating speed of crisis demands commensurately fast action; and how critically important it is to stay focused on reputational strength and brand credibility at every turn.

From a communications standpoint, the book shows how maintaining control over the crisis narrative is absolutely essential in a digital world where information and misinformation travel at viral speed. In mid-September 2008, when the “rumor-mongering” cited by Goldman Sachs CEO Lloyd Blankfein threatened to destabilize the Wall Street institutions still left standing, it was clear that the investment banks had lost control of the story. As Sorkin writes, “The gossip was inaccurate, but it didn’t matter.” A run on the investment houses was already underway as perception became reality.

I’ve spoken often of my belief that the current recession will prove to be too short and too painless if our corporate leaders – in every industry, in every sector of the economy – fail to learn the lessons it presented. Those lessons shine through these great tales of the men and women who, as Sorkin puts it, “fought to save the financial system – and themselves.” Too Big To Fail is a must-read for anyone who may likewise be called on to help salvage a company, a brand, or a reputation.

Richard S. Levick, Esq. is President and CEO of Levick Strategic Communications, the nation's top crisis communications firm, and a contributing author to Bulletproof Blog. Connect with him @richardlevick.