Smoldering Vs. Sudden
Bottom line – Protecting your company’s valuation depends on how well you are prepared to face the court of public opinion. Crisis happens to everyone. The difference is those who are prepared to address smoldering issues proactively can prevent them from erupting. When done well, you can turn short-term adversity into long-term advantage.
Reputation leads to Trust and Trust leads to Valuation… And, Not All Currency is Financial.
Successful leaders and organizations understand the value of building, strengthening, and defending their reputation. Reputation is defined as: the beliefs or opinions that are generally held about someone or something. If we take a broader look at society, we believe that consumers are morally aligned with the brands they invest in and purchase from, more than they ever have before. In fact, 92% of millennials prefer to purchase from companies they feel are ethical….and 70% of them will pay more for products and services from socially responsible companies. So, the question is…what is the real value of investing in your reputation? Our answer, priceless. It is crucial to establish a business with a healthy foundation that embraces sound leadership, strategy, and communications tenants, and enables a transparent relationship with your workforce and consumer base. The court of public opinion is interested in who you are and what you have to say as a brand – especially when crisis occurs. Remember, the court of public opinion renders judgments much more quickly than any other ‘court.’ Not too long ago, Wells Fargo was leading the headlines for creating fraudulent savings and checking account on behalf of clients without their consent. What happened? Misreported sales numbers, billions in settlements, significant stock underperformance, and a change in leadership at the top. In a different but related event with Boeing, investigators found faulty 737 Max designs and training manuals which contributed to hundreds of deaths and grounding of hundreds of aircrafts. Once the news broke, their CEO was terminated and numerous layoffs occurred. The lawsuits began to pile in, $18 billion earnings loss (2019), and again a significant drop in the stock price. We tell every client, “reputation leads to trust, and trust leads to valuation – and remember, not all currency is financial” – because it’s the truth. By creating a strong relationship with your stakeholder base, and proactively telling your story, you can maintain a brand with a healthy reputation that is essential for success in today’s world.
8 Qualities All Crisis Leaders Share
When designating or hiring an employee to be your business’s crisis manager, there is a lot at stake. When selecting, consider one that shares these 8 characteristics.
5 Strategies for Successful Crisis Leadership
by Rob Weinhold, Chief Executive of Fallston Group When it comes to crisis, it isn’t a matter of if but of when. Having an effective crisis management strategy in place is critical not only for weathering the storm but for rebuilding as quickly as possible afterward. These five strategies will help you minimize damage and maximize recovery. Embrace and seize the moment. Short-term adversity can be a long-term advantage if you are able to meet the moment with impact. Look for ways to make your company bigger, faster and stronger than before. As a leader, you have the ability to make an immediate and valuable difference. While everyone does make mistakes, people trust those who handle crisis with the honesty, decisiveness and optimism it deserves. Yes, optimism! Follow the Resilient Moment Communications model. The underpinning of success is the ability to communicate effectively, especially in dire, unexpected circumstances. The Resilient Moment Communications model, developed by Dr. George Everly, Jr., Ph.D., one of the founding fathers of the modern era of stress management, provides an excellent communications blueprint: What happened? What caused it? What are the effects—realized and anticipated? What is being done about it? What needs to be done in the future? If you can fully answer the above questions during times of crisis or adversity, you will have answered the key questions the overwhelming majority of people have during life’s most critical times – you will provide effective leadership. Stay present. Incredible leaders emerge when the chips are down and there is seemingly no way out. The lesson that has always remained with me is the power of presence. The ability to look someone in the eye with empathy and compassion during adversity is critical. You must ensure you and your company are ready to meet the moment, no matter how uncomfortable or unpleasant. Certain life occurrences will yield themselves whether you are there or not. Be ready to meet the moment with vigor, transparency and, again, decisiveness. Be predictive with the press. When it’s time to address the media, be certain to plan for every question and eventuality. There is a tendency for CEOs to want to go on camera without fully preparing because they are used to speaking publicly and know the organization very well. Avoid this temptation and list all possible questions, answers, follow-ups and counters. Train on camera, relentlessly. An eight to fifteen-second sound bite can ruin your reputation, and career. Don’t wing it. Prepare for every interview and press conference no matter how mundane or harmless it may seem. Again, train relentlessly as in this digital age there is no such thing as a local news story any longer. Plan your work, work your plan, stay the course. Once a plan to deal with a crisis situation is put in place, remain true to your vision, conviction and the plan’s ability to perform. This is key. Staying the course is essential in any crisis, once an effective plan is defined. Mid-course correction is sometimes necessary but always have a plan that’s straightforward, easy to understand, easy to execute and scalable at a moment’s notice. During times of sensitivity, adversity or crisis, the most important thing you can do is step up, be present, and answer the tough, yet important, questions. Even better, be prepared before a crisis so you and your company will know what to do during and after – you must create organizational muscle memory – many people are depending on you to lead them through the storm. Always remember Fallston Group’s mantra, “If you don’t tell your story, someone else will. And, when someone else tells your story, it certainly won’t be the story you want told.” Be first. Be fast. Be accurate! Crisis isn’t a matter of if but of when, and when crisis strikes your company or organization, being a competent ambassador and leader during a crisis are critical components to you and your organization’s longevity.
Why Do You Need a Crisis Communications Plan?
Crisis Communications Plans are designed to provide guidance and easy-to-follow steps to support clients in preparation for, management of and after-effects of proper crisis communications. Reputation leads to trust, trust leads to valuation. Effective crisis prevention, identification and communication rely heavily on education, training, professional judgment and experience of an internally formed Crisis Management Team (CMT), which clients learn how to create by following instructions within the plans Fallston Group creates. The CMT’s ability to manage smoldering issues and understand ways in which issues can escalate is essential to effective crisis response and recovery. Crisis communication is integral in the protection of people, assets and brands. Organizations that wait to respond, hesitate or lack visibility of action create uncertainty and anger – it diminishes marketplace trust. Client CMT’s must efficiently and effectively communicate so others do not fill the informational gap created by silence or misinformation. Any employee who is not authorized as a spokesperson should not make statements, comments or declarations internally, externally, to vendors, media, on social media, etc. All employees should direct inquiries to the designated (and trained) primary and secondary spokespeople. When an emergency occurs, the need to factually communicate is immediate. If client operations are disrupted, all stakeholders will want to know how they will be impacted. Regulators may need to be notified, and local government officials will want to know what is going on in their community. Employees and their families will be concerned and want information. Neighbors living near the impacted area may need information—especially if they are threatened by the incident. All of these “audiences” will want information before the organization has a chance to begin communicating. Velocity and accuracy is key – the crisis communications plan facilitates speed and process – organizational muscle memory is created. A vital component of handling an incident is the crisis communications strategy. Clients must be able to respond promptly, accurately and confidently during emergent circumstances in the seconds, hours, days and weeks that follow. A diverse audience pool must be reached with information specific to their unique interests and needs. Client image will be positively or negatively impacted by public perceptions and the handling of the incident from a leadership, strategy and communications standpoint. Planning is power. With new technology, it can be the anonymous public who often “break” a crisis. Therefore, unlike earlier eras, the crisis management team cannot afford to simply “manage the media.” Remember, anyone with an internet connection and a recording device can wreak havoc on your brand. Fallston Group’s mantra is alive and well, “If you don’t tell your story, someone else will. And, when someone else tells your story, it certainly won’t be the story you want told.” From a leadership standpoint, you must be ready to meet the moment, the 60 MINUTES moment, if need be. Your legacy depends on it. To learn more about Fallston Group’s crisis management work, click here, or contact us to discuss a Crisis Communications Plan for your team.
When the world relies on you, how do you manage crises and continuity of care?
By Leah Fertig From birth to our final day, there may never come a time we aren’t dependent on a compassionate healthcare provider. Like the fragility of our lives, healthcare institutions are challenged with many risks that may take their focus off of critical patient care. This is unacceptable, mainly if you or your loved one is reliant on critical attention during the distraction. According to The Joint Commission, the top reported sentinel event of 2017 was unintended retention of a foreign object (URFOs), with a total of 116 cases reported. In April 2017, a California woman had abdominal surgery that resulted in an emergency return approximately two weeks later after experiencing extreme pain. During the emergency visit, doctors found the 8-inch surgical forceps inside her abdomen from the previous surgical procedure, and her small intestine looped through the surgical forceps handle. The woman had to have 18 inches of her small intestine removed. While stunning to most people, not entirely new news to those who work in the healthcare profession. As a result, a lawsuit requesting medical and incidental expenses, loss of past and future earnings, and more claims were filed by the patient. It’s not just the isolated, event-specific financial impact that’s concerning, the long-term reputation of the institution and the healthcare providers are at stake. Not only are lawsuits public record, but named parties may also eventually reach the court of public opinion where judgment is rendered on a moment’s notice. Crisis isn’t a matter of “if,” but “when.” There are thousands of law firms that focus exclusively on medical malpractice because it is considered a preventable mistake, which can ultimately lead to a wrongful death suit. While tragic on many levels, the posture of the healthcare institution and its legal counsels will impact reputation. The stakes are high as the decisions leaders make today will be judged by many for years to come. To learn more about how healthcare organizations can reduce their points of exposure and effectively lead during life’s most critical times, email info@fallstongroup.com and one of our experts will connect with you. Remember, if you don’t tell your story, someone else will. And, when someone else tells your story, it certainly won’t be the story you want told!
Crisis Strikes: Who to Call
FACT VS FICTION: Are you at risk?
Leah Fertig Joins Fallston Group as Executive Assistant
Fallston Group, the Baltimore-based, global reputation agency, is pleased to announce Leah Fertig has joined its team as executive assistant. Fertig brings more than 13 years of combined customer service, administrative and office management experience to Fallston Group’s headquarters in Canton. In her new role, Fertig provides support across the organization’s three core business verticals of crisis and issue leadership, strategic marketing and public relations and safety and security. Her goal is to ensure all clients receive the “Ritz Carlton” experience. “Leah is a highly motivated, results-oriented professional. In our line of work, both companies and individuals heavily rely on us to be a trustworthy, compassionate resource, and Leah plays an important role in solidifying our many important relationships,” says Fallston Group Chief Executive, Rob Weinhold. Prior to joining Fallston Group, Fertig worked in the medical field and auto industry, where she became adept at managing in a high volume, fast-paced environment. She always remained focused on over-delivering for customers while implementing processes to ensure service was top notch. Fertig’s drive to find opportunities to assist others led her to becoming a volunteer for the Loch Raven VA Community Living & Rehabilitation Center in Baltimore, MD. Fertig is also a strong supporter in our country’s military and believes we all have a role in supporting our troops. Born and raised in Maryland, Fertig is passionate about her community and developing meaningful relationships. At Fallston Group, this passion translates into supporting the business’ three verticals and developing high-performing, win-win business relationships across the country. For additional information about Fertig or Fallston Group’s services, contact Marketing Communications Manager Andrea Lynn at 410.420.2001 or by email at andrea.lynn@fallstongroup.com.
Crisis is a Growth Strategy!
Our team has been referred to as crisis leadership experts, operators and chief reputation officers. Nearly all the companies we’ve worked with want the same thing: for us to help them maintain control and weather the storm. That’s their definition of winning: to survive the crisis. But after decades helping people during life’s most critical times, we’ve come to realize that the real win is growth. Yes, we are saying what you think we’re saying: Crisis can be a growth strategy. We get it. You want to save your team, your partners, your shareholders… your brand. Even your vendors are depending on you to steer them out of the storm. You may have support, but really, it’s just you at the helm. You want to get to dry land as soon as possible. The last thing on your mind is how to grow your company. We want you to think differently. To get you out of the flight or fight mindset. Many in the marketplace confuse crisis management with surviving the next news cycle or spinning the current issue so that it looks good. I differ, you don’t spin your way through crisis, you lead your way through it. Crisis management is about leadership, strategy AND communications. Because, the decisions you make today will be judged by many for years to come. Crisis must be planned for, predicted and used as a springboard for growth. And if managed correctly, your organization will be bigger, faster, stronger than it was before that defining moment. Instead of merely surviving a crisis, your company could… Enhance operational efficiency. Become more profitable. Increase marketplace value. And, cement your long-term leadership legacy. Now that’s winning. For more information on how to build, strengthen or defend your reputation, contact Fallston Group today. Remember, the decisions you make today will be judged by many for years to come!
