InsideCounsel » August 2008
Crisis Management Tips
To read the story about crisis management in the courtroom, click here.
When scandal, litigation or criminal charges threaten a business, taking special action is vital. Experts weigh in.
On reacting to a crisis:
Safeguarding the trust of your customer is a core competency for a bank. So it is a core thing for them to be able to develop their value composition and core values or competencies. You cannot be in business if you aren’t able to do that.
What companies need to be doing is number one, distance themselves and clearly separate themselves from the employee that was involved in this type of activity. Number two, there is also a concern from a leadership and process point of view that the bank had the proper processes in place to ensure this type of behavior is inconceivable for its employees and that, if there are issues, they can be easily detected and acted upon by the general managers.
It is important companies realize that when critical issues impair their ability to function as a business, they usually need to go beyond the specific case and demonstrate from a reputational point of view is that their processes and their values are in place.
--Daniel Diermeier, who lectures on crisis management, is the IBM Distinguished Professor of Regulation and Competitive Practice at the Kellogg School of Management.
On bringing in outside help:
