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Many organizations, at one time or another, find themselves in a difficult situation, and unfortunately most leaders experience a crisis at some point in their careers. Navigating through crisis issues requires strong leadership to manage and direct.
The way a leader responds to a disastrous situation is critical. All it takes is one poor decision or a verbal blunder and the company can be drenched in negative publicity. This can result in long-term effects that tarnish the company image and impact the financial health of the business.
Individuals in charge of an urgent situation must tread carefully when formulating a crisis response; the objective is to both manage the situation and perform damage control. The April 2010 Deepwater Horizon explosion that resulted in the massive BP oil spill is a prime example of a situation requiring strong crisis management, but which experienced degrees of failure. At the time of the disaster, Tony Hayward, BP's chief executive officer, made several mistakes that led to a media frenzy of negative publicity and eventually to his replacement with Robert Dudley, as part of the business's long-range plan to repair the company brand.
Actions that contribute to crisis response failure include:
A leader must speak carefully both on and off the record during a crisis situation. In disaster situations, people are suffering and looking to those in charge for guidance and hope. Hayward, a mere six weeks after the spill began, made the statement, "I'd like my life back", an utterance that will likely haunt the former CEO forever.
The public response to this comment was outrage, especially in the Gulf region, where people's daily life had changed dramatically since the spill. This statement was especially insensitive considering 11 workers lost their lives in the terrible explosion. Hayward eventually apologized, but the damage was already done, and many other gaffes would follow. Leaders taking charge of a disaster should learn from these mistakes and strive to be sympathetic, empathetic, and show care and concern to those injured or affected.
Although Hayward may have been working to try and resolve the oil spill catastrophe, his decision to take a trip to the coast of England for a yacht race painted the BP CEO in a negative light. The decision to head overseas, far away from the disaster, didn't bode well for the company. Hayward appeared aloof and arrogant, rather than actively involved with the crisis management aspect of the spill; it wasn't a good image for BP's CEO to be seen vacationing, while leaving those suffering behind to deal with the aftermath.
Business professionals with a great deal of visibility must remember the importance of connecting with the public, especially during times of catastrophe or emergency. It's important to communicate with a tone that resonates and expresses empathy.
During a crisis situation, people want answers, and whether it's the media or the government, it's important for leadership to open the lines of communication. Even if a full account cannot be given, some sort of answer should be provided to the public. If information is unknown, even a simple statement indicating that the whole scope is not yet identified is better than ignoring queries. It isn't easy to stand in front of cameras without having concrete information to share; however, this comes across as far less suspicious than hiding behind closed doors and saying nothing.
During times of crisis, honesty is much more respected than denial, lies or cover-ups. It is natural for people to want the truth. Evasiveness may offer a brief reprieve in the short term; however, in the long term it is more probable that the company image will be tarnished.
Understanding what not to do in a crisis is essential for every leader, and knowledge obtained in advanced business degree programs can help students learn appropriate crisis management techniques to avoid failure. Many degree programs and concentrations offer specific courses in dealing with crisis and response. Classes such as risk mitigation, business continuity and disaster recovery, and crisis management can provide students tools for dealing with a crisis before, during and after a situation occurs.
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