Crisis Management - Some Lessons From the Recent Crisis

Many blame certain companies for insufficientmore the role for the media to get in some
crisis management. But is that reasonable? Howsensation. The basic premise: get out the bad
many of us have experienced crises like thesenews, before others will.
and would they have done better. I rememberAnother mistake is informing clients by setting up
the words of an ex-CEO; we are facing awebsites, when the market is screaming for
complete meltdown of the financial system.action. The main problem with this is that timing
Clients and readers are not served by thesemakes the action worthless (it comes too late),
statements. Yet if management saw thesebut the main question is: does information ease
problems shouldn't they have consulted otheremotion?
institutions? That is either not without risk; aWhen the first problem of information
rumor easily enters the market. Then do notmanagement is not done properly, the problem
underestimate the role of hedge funds, theyescalates to a next level of emotion. At such a
target "preys" and have strong funds... Although,stage, responding with information is like quenching
not any more it seems.a fire with wind. It doesn't help any more. This is
A basic mistake of all times seems to be tooa lesson Edward de Bono taught management
much optimism when doing an acquisition. Buttrainees with his thinking hats. Red versus White -
information management and communication isVery basic.
also an area.Yet some humility can't be left out here. Again,
Some manager must have worked very hard.who has dealt with these situations before?
Like engineers solving the financial problems inProbably not many. In such moment you are on
their company. But does the CEO tell peopleyour own, you cannot call another company /
about it? Financial engineering requires more andexternal advisor and ask, "tell me, how did you
more communication about what is going on.solve your problem when your product was
Getting bad news out soon (Time-to-market) andthought to be infected with a virus." Todays'
not letting people make up their own storyevents and their solutions can only be used as
("something must be really bad"). Communicating atomorrows' jurisprudence.
"possible meltdown" doesn't serve clients. That isH.J.B.