Leader's Digest #38 (April 2020)

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LEADERS

DIGEST

Crisis Communication:

The Good, the Bad, and the Ugly BY DR EUGENE YJ TEE

“Men (and women) are like tea. Their real strength is not drawn out until they get into hot water.” No fewer than five important figures have been attributed to this quote – the most well-known and recent being former United States (US) Secretary of State Hillary Clinton. The same is often said of organisations and their leaders. When an organisation faces a crisis, we see what the establishment and its leaders are really made of. Crises are situations in which organisations experience a severe shortage of resources, an unforeseen challenge that threatens their financial and reputational standing. An organisation’s – and its leader’s – strengths, character and values, are laid bare under such circumstances. Crises demand that organisations and their leaders respond promptly and convey a clear sense of direction and purpose

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Issue 38 I April 2020

that address the trials at hand. Communications to both consumers and stakeholders during this time are make-orbreak moments for the organisation. The ambiguity, uncertainty, and heightened emotions that surround a crisis can rapidly escalate to damaging speculations and accusations. In some cases, these lead to conspiracies, rousing negative perceptions, and long-lasting financial and reputational consequences. Numerous companies have faced crises and emerged stronger from them. One classic example is Johnson & Johnson’s response to the Tylenol murders in Chicago in 1982. Tampered bottles of Tylenol-brand paracetamol were found to be laced with cyanide, which had claimed the lives of seven people.


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