Be the master of your bad news.

When something bad happens, someone still needs to talk about it. It will be better for you if you do it. Otherwise, you create a breeding ground for rumors, the “one person said” information model, and the spread of distorted or even false information.

When something bad happens, tell your clients about it (even if they don’t know yet). Don’t even think that you can just sweep it under the rug. You can never hide anything. These days, someone else will always remember it if you don’t want to address it yourself. They will write about it in blogs, and tomorrow everyone will be talking about it. Secrets no longer exist.

People will respect you more if you are open, honest, transparent, and empathetic during a crisis. Don’t try to cover up problems or ignore bad news. It’s important for your clients to be as informed as possible.

In 1989, the Exxon Valdez tanker spilled 50,000 cubic meters of oil in Prince William Sound, Alaska. Exxon made a mistake by waiting a long time before acknowledging the spill and sending help to Alaska. The head of Exxon arrived at the site of the disaster only two weeks later. The company organized a briefing in Valdez, a remote town in Alaska that was very difficult for the press to reach. As a result, Exxon faced a PR disaster that led the public to believe that Exxon was either hiding something or indifferent to what was happening.

In contrast to Exxon, let’s look at how Ashland Oil responded when it experienced a disaster involving an oil spill from a storage facility into a river near Pittsburgh around the same time. The chairman of Ashland Oil, John Hall, immediately arrived at the scene of the accident and took responsibility for what had happened. He committed to addressing the aftermath of the spill. He visited news offices to explain what the company planned to do and to answer any questions. Throughout the day, he shifted the narrative from “greedy oil tycoons doing harm” to “responsible oil company addressing the consequences.”

Here are a few tips on how you can take control of the situation:

  • Information should come from the top. The person in the highest position should oversee the situation.
  • Spread the information widely and openly. Use every megaphone you have. Don’t try to sweep it under the rug.
  • “Without comments” is not an option for comments.
  • I sincerely apologize for the situation. Let me explain in detail what happened.
  • Honestly care about the fate of your clients and then prove your concern.

The story of Toyota recalling its vehicles is not a marketing ploy. It is a practice of normal crisis management in today’s environment. In contrast to Toyota, American car manufacturers take a different approach. They send representatives to the scene of accidents, investigate the issue, and then weigh the potential costs of legal expenses against the losses associated with making changes to the assembly process before making a decision. One such representative was actually featured in the film “Fight Club.”

The difference between the approach of “smoothing things over” and “owning bad news” reflects a difference in mentality. We tend to prefer “smoothing things over,” still mentally living in an era when blogs didn’t exist.

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