It’s 9 p.m. – You’re a CEO, and you just sat down to catch up on the evening news when you get a call from your PR counsel. A video of your employee abusing a customer is on the Internet, and the number of clicks is rising. What do you do now?
The breakdown of the traditional news industry and the proliferation of social media have transformed the way Americans get our information. For news, an increasing number of us rely upon Twitter and Facebook, platforms that provide graphic impressions that can be circulated on line, easily and while leaders of the pre-digital age had the luxury of time to gather all of the facts and formulate a plan – those of today do not.
Who can forget the abominable video of the United Airlines passenger being violently removed from a flight? Within 24 hours that video was viewed more than 100 million times on Twitter, and within 48 hours another 210 million views were logged on China’s microblogging site, Weibo.
Whether you uncover a cyber-security breach, learn of a government investigation, discover sexual harassment, or see a troubling video, the enemy remains the same – time. According to a survey by Deloitte, nearly 90 percent of executives say that damage to the reputation is the most important risk they face.
“The foundation of a solid crisis management plan is transparency, authenticity, and accountability.”
So, when it comes to the reputation of a company, what is the role of a CEO? Depending upon the crisis, the response is more effective when the CEO is visible, caring, and engaged. Personal investment by the most powerful individual in the company sends a strong signal to employees, customers, and shareholders.
The foundation of a solid crisis management plan is transparency, authenticity, and accountability.
There are several steps CEOs may take in a crisis to help preserve shareholder confidence, mitigate brand damage, and ultimately preserve the bottom line:
Know when to step out publicly: The CEO shouldn’t be front and center on every crisis event. If another member of the corporation is designated to speak, that person must be trained nd ready to respond to issues that have been identified as high risk.
However, there are a factors that should trigger a response from a CEO, including when:
Ask the right questions: what is the mission of my company, and am I acting accordingly? This may sound trite, but the mission statement actually provides a moral guidepost.
The first response matters. Whatever information is shared must be accompanied by clear steps to address the situation, and if possible, a timeline for further decision. If an apology is warranted, it is effective only if it’s honest.
Separate emotion from fact. However confident you may be within your leadership team, always look at evidence with a dispassionate eye.
Beware of social media. We live in a world of citizen journalism with ready-made platforms for instant sharing. Ensure that your leadership team keeps a pulse on the digital brand and is able to gauge spikes in negative sentiment.
PR and legal counsel should work together. Collaboration promotes success in both the court of law AND in the court of public opinion.
Finally, learn from the mistakes of others. Study the crisis response of other corporations to gain insight about what works — and what doesn’t. Prepare, practice, and revisit your crisis communications plan. While print and television still carry greater weight, social media accelerate any crisis situation.
Every company needs a plan in place so that its management team can respond to a crisis quickly and effectively, and if the protocol is clear, assertive, and competent, then our CEO can invoke the plan and, with peace of mind, go back to monitoring the evening news.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
