How can you use a crisis to strengthen trust with your stakeholders?

When facing a crisis, the initial step involves gathering facts to comprehend the scope, impact, and potential consequences of the issue. It's crucial to identify those affected, understand their needs and expectations, and devise strategies to address them promptly. Assessing the legal, regulatory, and ethical implications is vital, alongside consulting with experts and advisors. This comprehensive evaluation aids in formulating a clear, consistent, and appropriate response strategy. By collecting accurate information and understanding the multifaceted aspects of the crisis, one can craft a well-informed response that not only addresses immediate concerns but also mitigates potential fallout.

During a crisis, it is essential to prioritize honesty and transparency with stakeholders to build trust. By consistently sharing accurate information, acknowledging challenges, and being transparent about the steps being taken to address the situation, stakeholders are more likely to see a company or organization as trustworthy. This way you can demonstrate your commitment to building long-term relationships with your stakeholders, even in difficult times.

One more thing that is important when gathering the facts is to make sure every fact is indeed a fact. Many times we tend to have our fears dominating our view, and making assumptions look like facts. For example: During 2017 and 2018, prior to GDPR coming into effect and for a few months afterward, many C-level executives were using their fears of the astronomical fines as facts. That lead to a lot of necessary pressure on the stakeholders. This lead to weakened trust instead of strengthening it.

It's important when communicating to stakeholders, not to overshare or undershare. Try to put yourself in their shoes and ask yourself: "Is this information relevant for them?" If it is relevant, your work isn't done yet. You still have to translate the information in a way they can understand. For that, ask yourself "Am I just throwing the information at them or should I also give them some background information to make their understanding clearer?"

Similar to famous crime shows, I like to say you only have “The First 48” hours to either build or break trust. In a crisis, the first step is gathering facts in the most efficient and accurate manner. Then, deciding which stakeholders to communicate with, the nature of the communication, and drafting communication that is transparent and forthcoming as possible without sacrificing the greater good are key. In some instances, there is no messaging that will ease the tension of a crisis. However, in my experience, silence has done more harm than good.

One of the best ways to build trust is by being available for stakeholders during times of crisis. This includes being available to listen, offer guidance/solutions and responding to enquiries (having open communication channels.

Two great examples of this are: - The paycut the then Starbuck's CEO Howard Schultz took during the 2008 crisis to incentivize his staff to also take pay cuts for a few months in order to keep the business afloat. - And the #ReachForTheRazor campaign created by the Welsh Ambulance Services CEO Jason Killens during the initial COVID pandemic increased compliance with his organization and had a ripple effect throughout the entire UK NHS.

In an ideal world every stakeholder would feel comfortable sharing his or her opinion. Unfortunately, that's not normally the case. A great way to listen to the stakeholders who are afraid of raising their voices is to set up an anonymous way to do so, for instance, via a form or an anonymous email service.

Unfortunately, this step is often missed. This evaluation and learning step is so important that it can (and should) be implemented at every step of the way and, if possible, several times. The more you evaluate your actions and results, the more you will learn and the less time you will spend going in a bad direction. As a captain of your ship, you need to constantly evaluate to know where you are so that you can correct the course to where you want to go. Otherwise, the waves (crisis) will lead you to where you don't want to go.

A good example is the way in which Starbucks responded to a highly publicized incident in 2018. In Philadelphia, two African American men were wrongfully arrested at a Starbucks store while waiting for a business meeting. The incident sparked outrage and accusations of racial discrimination. Starbucks responded promptly by publicly apologizing and acknowledging the gravity of the situation. They didn’t defend or dismiss the incident but instead took immediate action. The company’s CEO, Kevin Johnson, met with the affected individuals and personally apologized. Additionally, Starbucks announced the closure of over 8,000 stores in the United States for a day to conduct racial bias training for all employees.