In today’s data-driven environment, few assets are more valuable—or more vulnerable—than trust. For companies entrusted with sensitive personal information, the stakes are high, especially when operational or financial uncertainty arises. The recent developments involving 23andMe serve as a critical case study in how companies must navigate crisis moments with transparency, ethical leadership, and a steadfast commitment to their stakeholders.
23andMe, known for its consumer DNA testing services, is facing a challenging chapter marked by a Chapter 11 bankruptcy filing and the unexpected resignation of its CEO. These events have understandably sparked public concern, particularly surrounding the future of the genetic data the company has collected over the years. While the company has stated that any prospective buyer must honor its existing privacy policy and comply with relevant laws, this assurance has done little to ease the minds of many customers who are unsure of what the future holds for their personal information.
Although Fallston Group makes no assumptions about the internal decisions or motives of 23andMe’s leadership, the situation highlights important crisis leadership principles that all organizations—especially those managing sensitive consumer data—should consider.
When customer trust is at risk, how an organization responds can either reinforce its credibility or accelerate reputational decline. The following best practices offer strategic guidance for companies in similarly high-stakes situations.
Crisis Leadership Best Practices for Data-Centric Companies
1. Communicate early, clearly, and consistently
When news breaks—whether through official channels or speculation—organizations must respond quickly and clearly. Proactive communication from leadership not only helps control the narrative but also reinforces that the company is engaged, responsive, and accountable. Silence or ambiguity, particularly in moments of uncertainty, can be deeply damaging to public trust.
2. Empower customer control
If consumers are anxious about the future of their data, it’s critical to offer accessible and immediate options to manage, delete, or opt out. Even during complex proceedings such as bankruptcy or M&A, providing clarity around data usage and ownership demonstrates respect for customer autonomy and helps preserve long-term credibility.
3. Reaffirm original commitments—or transparently explain changes
Trust is built on consistency. If a company has made commitments about data privacy in the past, reaffirming those promises publicly can provide reassurance. If changes are necessary due to evolving business circumstances, transparency is key. Clear rationale and respectful communication are essential to mitigating backlash.
4. Establish third-party oversight
Independent ethics panels or data governance boards can provide unbiased oversight and bolster stakeholder confidence. Particularly during transitions of ownership or leadership, involving a credible third party adds an extra layer of accountability.
5. Prioritize people over process
In crisis moments, process alone is not enough. Companies must lead with empathy and a people-first mindset, recognizing that behind every data point is a person who placed their trust in the organization.
23andMe is not the first company to face this type of reputational pressure, and it will not be the last. In fact, as more businesses collect and store personal data—whether in healthcare, finance, retail, or technology—these moments of reckoning will only increase in frequency and intensity.
The lesson for all organizations is clear: ethical leadership, open communication, and values-driven decision-making are not optional—they are foundational. Companies that embrace these principles not only weather the storm, but often emerge stronger and more respected in the eyes of their stakeholders.
At Fallston Group, we help leaders navigate critical moments of adversity by focusing on what matters most—reputation, trust, and the long game. Because in the end, those who lead with clarity and conviction are the ones who earn the right to lead again tomorrow.
If your organization manages sensitive information and is facing—or preparing for—a high-stakes moment, now is the time to evaluate your crisis readiness. Fallston Group partners with leaders to protect reputation, preserve trust, and guide smart, strategic decisions when it matters most. Let’s talk about how we can support you.
