10 tips for communicating in tough times

The right plan and message can help firms regain credibility

In the current economic meltdown, corporate communication has become even more important, according to a public relations veteran.

The right communication strategy can help organizations maintain or re-build corporate credibility that has been hard hit in recent months, said James Hoggan, of Vancouver-based PR firm Hoggan and Associates.

"Corporate credibility has never been lower," Hoggan said. "Multi-millionaire Wall Street CEOs, whose out-of-control mortgage businesses have undermined markets and economies around the world, insisted their companies were healthy only days before their collapse. Whether they were incompetent or dishonest, their actions have shattered public trust in private institutions."

That makes it all the more important for companies to tread carefully into the public realm, whether they have good or bad news, said Hoggan.

"The risk is huge for businesses with consumer products or services that depend on public support. And the situation is even worse for public companies that might feel the sting of shareholder panic. You have to be hyper alert to what you say, how you say it and how it is likely to be received."

It is inevitable in difficult economic times that companies may be downsizing or restructuring. They may be announcing disappointing results, refocusing business strategies, contending with shareholder actions and, in the most dramatic cases, receiverships. The preparation of good communications in such times can be complex and fraught with landmines. But there are a few guidelines that will help everyone along the way:

1. Prepare a communications plan. Make sure that you are ready to respond publicly to any challenge that presents itself. Prepare a timetable, set out a list of strategic messages, pick and train a spokesperson and prepare for the tough questions. If possible, control the timing of negative announcements.

2. Rip the Band-Aid off quickly. Once a bad news story breaks, it's best to release all the details as quickly and openly as possible. It's much better to suffer one very bad day in the media spotlight than to become a regular bad-news feature as details dribble out over time.

3. Bad news starts to stink when it gets buried. There are two kinds of news releases: Candid releases about successes and failures, and baloney sandwiches with bad news hidden between thick layers of promises and excuses. Dressing up a horrible story might make the boss feel better, but a glossy wrapping on a sordid tale will only irritate reporters and insult stakeholders.

4. Choose your spokesperson well. A well-informed, credible and sincere spokesperson can be a blessing in any crisis. But a spokesperson who is evasive, defensive and combative will arouse suspicion and, potentially, fear. Identify a natural communicator who is trainable and then train them. Choose someone who is quick to grasp technical issues, but plainspoken. And choose an employee, not an outside consultant who may be seen as a "spinner".

5. Don't launch your story until you know where it might safely land Forthrightness is a virtue, but there is no point rushing out to talk about your troubles until you have crafted a potential solution and a plan to put the elements of that solution into effect.

6. Accentuate the positive. Again, it is possible to be up front about a problem without dwelling on it. If your sales are off, but your cash position leaves you well-armed to weather a recession, say so. If you are laying off employees to reposition the company on firmer ground, say so.

7. Correct negative rumours. It's particularly critical in times of uncertainty to correct factual errors in print or television stories about the business. Negative stories that might have no credibility in normal circumstances suddenly sound feasible when some of the biggest financial institutions in the world have collapsed in failure. So, answer the phone or call reporters directly. Make sure the news, good or bad, is accurate.

8. Listen: It's the first best step in all communications. The key to good employee, customer and shareholder relations rests in paying attention. While not paying attention is at the root of most public relations problems, listening builds understanding and responding to what you hear builds relationships. Always try to look for new ways to get feedback. Conduct surveys, book tell-me-more meetings with clients or customers or have coffee with your employees.

9. Make the most of social media. The internet, Google, Wikipedia, Facebook, YouTube, Twitter, websites and blogs have changed media forever, making it harder to hide bad news but easier to convey your message. Social media allows you to speak directly to your customers, shareholders or stakeholders and to hear directly back. It allows you to make information widely available without relying on the filter of conventional media.

10. Do the right thing. This, ultimately, is always the right advice if you are serious about building and protecting a good reputation. Hard times usually offer an opportunity for struggling businesses to display their true character. This is the way to ensure that opportunity works in your favour.

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