Client Alert

* Mr. Fawell is not licensed to practice law. His activities are directly supervised by members of the firm licensed to practice law.

Originally published on the Maryland Daily Record web site, November 7, 2008.

The line of organizations delivering bad news these days is a long one. And with the financial market challenges causing a ripple effect across the broader economy, that line may be long here in Baltimore for some time.

Communicating tough news is an unenviable task, and legal advisers are increasingly called upon to guide clients through the delivery of news that can be jarring: layoffs, declining profits, product recalls and ethical breaches, to name a few.

I'm no lawyer, but as press secretary to former Governor Robert L. Ehrlich Jr., I spent a few days — and long nights — staring at the tip of the media's spear. We won some news cycles and lost some others, but I learned some valuable lessons about communicating effectively along the way.

Those rules are as relevant today as ever and can help Baltimore's business community survive, and even thrive, in these challenging economic times. Let's start at the top:

1. Tell the truth. Warren Buffett said it best: “It takes 20 years to build a reputation and five minutes to ruin it.” Reporters and the public inevitably uncover the truth in a crisis, so it better come from you. Misleading your stakeholders is the easiest way to damage — perhaps permanently — your organization’s reputation.

2. Don't just respond to crises — plan for them. Forward-thinking companies identify their vulnerabilities ahead of time and plan accordingly. A crisis planning exercise — one that identifies worst-case scenarios and institutes response plans — can be the single most effective means for mitigating a crisis.

3. Define your audience. Ask yourself whose opinion truly matters. Perhaps it's customers and shareholders, elected officials, a reporter, or the public at large. Identify the audience that matters to you and build your communications strategy around it.

4. Keep it simple. Few things are as ineffective as a rambling spokesperson or a longwinded press release. Before communicating publicly, take the time to develop a simple yet compelling message that your audience understands.

5. Mind your own ranks. Internal communications can make the difference when communicating in a crisis. Your employees represent you at home and in the community. Keeping them informed during challenging times demonstrates leadership, maintains morale and minimizes confusion.

6. Be sympathetic. Organizations that demonstrate concern for their stakeholders and the public generally weather a crisis well; those that appear indifferent to outside concerns in a crisis generally do not.

7. Bring in reinforcements. If public opinion is turning against you, recruit reputable, outside voices to vouch for your organization. A public statement from a respected industry leader or local figure can help isolate your critics.

8. Don't take it personally. Reporters aren't paid to give you good press or to be your friend. They are paid to ask tough questions and to be fair in their coverage. If a news outlet’s coverage is inaccurate or misleading, let it know. But don't lose your composure just because reporters ask hard questions and report hard facts.

9. Fill the vacuum. The volume of communications outlets today — in print, online, over the airwaves, by word of mouth — creates an information vacuum where misinformation can fester if ignored. The question is not whether that vacuum will be filled; the question is who will fill it first. So don't hide under the proverbial desk when a crisis hits. Take charge and define it on your terms.

10. Look beyond the crisis. Yes, even a crisis can have a silver lining. In fact, great opportunities often present themselves in the form of a crisis. In these transformative times, new business opportunities will emerge. The organizations that identify them and communicate effectively with their stakeholders will be better positioned to succeed when the fog of crisis finally clears.

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