• John Connolly is a seasoned PR professional with more than 40 years of consulting to and working for some of the world’s largest companies on difficult issues. His company, John Connolly & Partners has advised businesses in the US, UK, Asia and Australia on major crises in the food, resources and financial services industries.
    John Connolly is a seasoned PR professional with more than 40 years of consulting to and working for some of the world’s largest companies on difficult issues. His company, John Connolly & Partners has advised businesses in the US, UK, Asia and Australia on major crises in the food, resources and financial services industries.
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While there have been similar Black Swan events before, it would be a mistake to not to think through the differences and the different actions needed in this COVID-19 pandemic. Crisis communications expert John Connolly outlines what boards and management need to do now. This article first appeared in Food & Drink Business April 2020.

Basically, there are three pandemics running together. The virus, panic about the virus, and the business and economic implications of the virus.

All three are genuine crises. Each one needs different tactics. However, what is critical, is that as well as doing what’s necessary to survive, is to have a team working on your recovery strategy and even what opportunities there may be.

The COVID-19 pandemic is both a social and financial crisis where trust will be central to corporate and political survival.

People at all levels of the organisation are being asked to change the way they work, interact both professionally and socially and often how they live.

To effectively deal with the impact companies will need to adopt and ensure they adhere to the principles of good communication. This not only means internal and external communication but to and from management.

Leadership is critical

One thing is certain. All stakeholders will look intensely at what, if any, leadership a company demonstrates.

Experience tells us that very few CEOs or chairs will actually lead. In a crisis, employees and others make long lasting judgements about the competence of the boss.

As we have seen with political leaders over the last few months, this is based less on what the leader says and more about what he or she does.

To be clear: taking an external leadership position is a strategic choice. For some organisations keeping your head down externally is the right decision. But you have no choice internally. You have to demonstrate leadership to your employees and others.

There are some (for the time being) unique issues to consider with COVID-19:

  • It’s not just employees and the general public that are scared, boards and management feel the sameway.
  • Recognise your own feelings when you are discussing the issues and making decisions.
  • Leaders need to understand that this is an emotional issue. Rational explanations and reassurance need to be complemented by an emotional response. For most people, COVID-19 is more a financial and emotional issue than a health issue.
  • The more specific you are in your communications the more powerful and trusted you will be.
  • Free media is not the only media you have available. Advertising in traditional and social media can be critical.

No one is overreacting: in fact, what we’ve seen is that some companies and some governments didn’t react quickly enough and still aren’t acknowledging how quickly business, government and the public need to move. Firm and clear decisions will limit obfuscation.

The world has changed, and we will need to acknowledge that change and that it could last for many months. While there is no benefit in being overly pessimistic, being overly optimistic will diminish trust particularly if those optimistic scenarios are proven over time to be grossly inaccurate.

Directing employees to work from home risks mental health, misinformation and socialisation problems; and directors now face criminal liability if their conduct harms the physical and mental health of employees. Directions in terms of place of work need to be carefully considered to manage liability.

The ability of employees to work from home may be limited by logistical considerations; a place to work in the house or the presence of partners and children. Are there strategies or contractors the organisation can adopt or employ to assist these employees? Remember:

  • 12 per cent of workers’ compensation incidents are mental health but account for 37 per cent of costs. Mental health support is emerging as the major issue during coronavirus – many employees feel anxious, misinformed and isolated.
  • Employees are having to rapidly adjust to changing work environments, which can create stress, friction and loneliness.
  • Unprecedented situations faced by families, including closures of schools, day care centres, workplaces, residential care facilities, are creating practical and psychological issues employers must manage.

Face-to-face investor relations channels will mostly be shut down particularly road shows and investor conferences. Ensure you have a plan to maintain investor and shareholder communication and confidence at a time when there is likely to be heightened interest from the investor community in how your organisation is managing the crises.

What are your continuous disclosure obligations?

Scenario planning is a useful tool for dealing with uncertainty about the future. Communicating with stakeholders on the basis of best to worst case scenarios will demonstrate that your organisation has a sound approach and is working within a well-considered range of possible outcomes.

Look at and talk through implications for your supply chain and value chain. As with many crises, there may be a new normal at the other end. It is important to understand the experience of others, how customers are reacting and will react over the following months.

This is a time to review your business model. Determine what your company’s vulnerabilities are, model the effects and possible solutions. Investors will be looking so your organisation will need answers.

  • Review IT systems, organisational structure and people. Will your systems be appropriate to manage through the crises and implement your response? 
  • What is the impact on key staff working from  home, being sick? Can your systems respond to different ways of working?
  • Review HR practices and policies for the crisis and post-crisis periods:
  • What are they going to be now and in the longer term?
  • What are the implications of the crisis in terms of employee retention?
  • Will your employees become advocates or critics of your organisation during and after the crisis?
  • What is the structure of your current workforce?
  • What will happen to that workforce if the crisis lasts six months? 12 months?
  • How will you position the organisation to have capabilities required post-crisis?
  • Do you have the right capabilities for the current evolving business environment?

And finally, keep an appropriate paper trail.

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