One of the fundamental disadvantages of being a big player in the corporate pond is the degree of schadenfreude levelled at a business in any state of distress. On these home shores of ours social anthropologists will, no doubt, link such behaviour to a particular British trait – an accusation that I fear may be partially true. Are we simply a cup-half-empty nation?
For British institutions the continual cycle of hero-to-zero status, and back, can feel like running at full pelt with nothing to do except stare down the barrel and keep pounding forward. At number one there’s only one way to go – and that’s normally down the pecking order.
The challenges faced by the BBC (right now) and the likes of BP, Marks and Spencer and British Airways, in recent years, have all generated a considerable amount of glee among the ranks of media and beyond. Always fair and justified? Probably not, but such is the baggage that comes with institutional status. Scrutiny is simply relentless.
For sure, businesses become complacent and lose sight of those that really matter – customers who buy their product. Yet brands at the top of their games are there to be shot at – an easy target for accusations of “big is bad” and forgotten customers who got them to the summit. No company has a divine right to continually survive and thrive – take Woolworths, Rover; the list of “lost icons” is long … and growing.
So, what’s the process of fixing a brand of such national consequence? Is there a formula? Well, fundamentally fixing the business aside, companies need to remind people how they acquired their valued standing by going back to what they do best; whether that’s broadcasting, extracting hydrocarbons, looking after all sizes or flying. I’m being glib, but only slightly. Clearly, the journey is a lot more emotional and the scrutiny far more intense. But companies also shouldn’t lose sight of the most important ingredient to achieving their objective: their employees.
The majority of corporate crises make for a rather odd time for the bulk of workers. They aren’t directly involved in efforts to address the situation and yet are precisely the individuals who remain ultimately responsible for the brand’s direct well-being in the longer-term. In dealing direct with the customer these are the people who can quickly re-engender trust and goodwill after the business has been floored – be they programme makers, cabin crew and shop floor workers, or community engagement personnel.
The challenge, though, is how best to galvanise the behaviours required to help an organisation get through an ordeal – and this is where authentic leadership comes in. It’s often said that leaders are visible at times of crisis and invisible at times of success. What distinguishes the very best is their ability to retain full visibility with the workforce and instil in them a message of confidence that they can get the job done.
Lord Marshall, the now sadly departed former BA CEO, instinctively recognised the merit of walking the floor, along the check-in counters and galleys of aircraft. Here he understood staff sentiment – good and bad – of those dealing direct with customers who could quite easily choose a competitor. Listening is key – but only if the CEO then acts to better explain or create positive change.
In Wal-Mart’s response to Hurricane Katrina, the retail giant was hailed a corporate saviour given its relief work. Largely credited to CEO Leo Scott, it decided to decentralise operations and place ultimate responsibility in the hands of managers across the group, to help directly in the communities they served. Bold, simple and inspired.
Returning to our British quartet, the then BA Chief Executive, Willie Walsh, decided to work without pay for a month at the height of the carrier’s financial difficulties in 2009. This did much for his standing among employees as well as his visibility in the media.
These examples illustrate the significance of the workforce and the need to manage them convincingly and demonstrate that the management team is backing them as part of the solution: “We’re in this together”. Far too often businesses lose sight of their own team’s importance as they seek to super-serve external parties. Whether you have a team of two, 22 or 2002, your internal stakeholders can both advocate or denigrate your brand and your business externally. Is there anything more damaging than public brick-bats from your own staff?
By demonstrating care for your people, with clear communication and a willingness to take them on your corporate journey (aka strategy), management will find others endorsing their decision-making. And there’s no more important time for that than in a crisis.
A CEO will also need to recognise when the organisation can move on from its crisis-enforced bunker mentality. Issues deemed self-inflicted – Savile at the BBC or Deepwater Horizon at BP – clearly demand corporate regret and remorse, but a perceptive leader will understand when it’s also appropriate to move on and introduce a more vigorous corporate positioning or, in the case of the BBC, a sense of proportionality in its own coverage.
Businesses and their leaders can’t afford to exit such situations in the same position as they went in. Significant and constructive change needs to have taken place at an operational level to best serve priority audiences – be they consumers, investors or other stakeholders. Whether there is a change in leadership, that’s a decision for its workforce and ultimately the board. The key question is: “Can the current boss get us to a place of greater strength and favourability?” Indeed, many solutions will often lie within the organisation.
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