Managing a crisis: Insider’s guide real-life experiences - by Brent Feigenbaum

Brent Feigenbaum, Hunt Mortgage Group

In my last article, I laid out the essentials for managing a crisis as the firm’s lead communicator. Anticipating the various scenarios and how they will impact the different constituents involved, and communicating with your head as well as your heart, are the fundamentals. In the second part of my article, I am going to share some real-life crises I experienced and how they were effectively handled. 

An Act of Nature

Three years ago the east coast was hit by Hurricane Sandy. It left lower Manhattan (where my office was located) flooded and without power. All the offices in the area were closed. Computer systems were down throughout the city. Many of our employees were living in extreme conditions without power or heat. The situation was serious and there were little answers about when things would be back to normal. Thankfully, out IT systems were being operated from a remote site which kept our computer needs and data live.

The firm’s crisis committee held daily calls and discussed action items largely around how and what to communicate with the various constituents – employees, customers, investors, and vendors. Daily updates were sent to employees on the situation, expectations for the office reopening, and crucial business updates. Included in this important information were personal expressions from the president regarding the care and concerns for our colleague’s welfare. This was not only appreciated by those employees impacted by the storm, but on a larger level by all employees who saw the firm’s priorities were appropriately focused on its employee’s welfare.

The company web site was used to notify clients of our office situation and individual telephone numbers were provided to those needing to speak with key individuals while headquarters was closed. It was important to show clients that business continued and it was business as usual; their investments were safe. Reassurance and demonstrating you are in control of the situation during a crisis is imperative.

Executive Departure

Earlier in my career I worked for a large multinational firm. One day the long-term president was terminated abruptly. I was told to prepare a brief statement saying that she left the firm and was told to be ready should any reporters call. The fear was her departure could have a negative impact on the corporation’s stock price. Furthermore, there could be legal ramification should something be said inadvertently to discredit her. The media wanted details but I just reread the script. With every question, I kept to the script, or honestly said I did not know.

Though you want to try and help a reporter do their job, in this case your role is to protect the firm and the individual’s reputation. As for the employees and the shareholders, a short notice was issued that basically stated the same message but was a bit warmer and appreciative for the years of service and many significant contributions. There were many in these two categories that had known and liked her for years.

Employee Welfare

Several years ago when working for a large financial services company I was informed that an employee was in a bad car accident coming into the company’s parking lot. Before a reporter called I went to the president and in-house counsel and told them what happened. Our lawyer said, “Respond to any inquiries with ‘no comment.’” I suggested a better response might be, “We are awaiting further details on the accident. We are not sure who was in the car, their condition, or the severity of the accident. Our thoughts are with the injured parties and their family and we are working with the authorities who are investigating the accident.  As soon as we learn something concrete, we will let you know.”

I knew that would satisfy the reporter and project the firm as caring, focused on the human tolls over keeping a distance and denying any culpability. When there are human issues, show a human side. Putting people, employees, and customers first is the right message no matter what.

Brent Feigenbaum is managing director, marketing communications at Hunt Mortgage Group, New York, N.Y.