How Does a Crisis Change Crisis Management?
September 16, 2008 12:35 PM Subscribe
Crisis management and communications firms must be busy thinking about or working on Wall Street's crisis. But blogs aren't saying much about the crisis handling besides public perception is the key to crisis management and writing 12 lessons in crisis management at the Lehman Brothers expense.
What does the MeFi community have up its sleeve about crisis management and communications and the crisis handling thus far?
What does the MeFi community have up its sleeve about crisis management and communications and the crisis handling thus far?
This post was deleted for the following reason: sketch post linking to PR firms with SEO-loaded phrases? No thanks -- mathowie
A post linking to a couple of PR firms? Okay...
We don't need more spin in the financial markets, we need less. Part of the responsibility for this disaster lies with the spin coming out of banks about how they were financially sound. They talked about their books the way they advertise their products. "We're in great shape." Really, Bear Stearns? None of the banks want to open their books to the public to reveal what their exposure to bad mortgages and CDOs is, so instead they get on TV and lie about how financially sound they are. The truth brings instant punishment, and instant adjustment.
This crisis isn't about public perception, it's about6 objective reality. Lehman didn't fail because the public thought it was worthless, Lehman failed because it actually was worthless. Do you see the difference?
Three banks looked over Lehman's books in contemplation of a merger, Bank of America, Barclays, and I think Bank of Korea. All three ran screaming at what they saw. Barclays is now back picking over the rubble for the worthwhile assets.
But the PR firm would have advised Lehman to "downplay," i.e. hide, the fact that it had three suitors before Monday and couldn't get a bid out of any of them, because hiding that fact might have kept them alive long enough to dupe a fourth potential acquirer. But they did not deserve to stay alive. The bank and its management fucked up on a massive sale, and this is what is supposed to happen. Its demise creates valuable information and resets expectations. Spin only delays that.
See, the PR mind wants to hide the negative stuff, to downplay it. Because ultimately the people they are trying to spin aren't members of the public, it's the shareholders. They want to hide the truth from the shareholders so Lehman can keep shareholders' money. In other words, to bring PR firms to bear on the problem amounts to lying to owners of the company in an effort to defraud them.
Believe me, if Lehman has a PR firm, they need to be sued into poverty right along with the board and the management. Go ask Lehman's shareholders if Lehman should have hired a better PR firm.
posted by Pastabagel at 1:00 PM on September 16, 2008 [1 favorite]
We don't need more spin in the financial markets, we need less. Part of the responsibility for this disaster lies with the spin coming out of banks about how they were financially sound. They talked about their books the way they advertise their products. "We're in great shape." Really, Bear Stearns? None of the banks want to open their books to the public to reveal what their exposure to bad mortgages and CDOs is, so instead they get on TV and lie about how financially sound they are. The truth brings instant punishment, and instant adjustment.
This crisis isn't about public perception, it's about6 objective reality. Lehman didn't fail because the public thought it was worthless, Lehman failed because it actually was worthless. Do you see the difference?
Three banks looked over Lehman's books in contemplation of a merger, Bank of America, Barclays, and I think Bank of Korea. All three ran screaming at what they saw. Barclays is now back picking over the rubble for the worthwhile assets.
But the PR firm would have advised Lehman to "downplay," i.e. hide, the fact that it had three suitors before Monday and couldn't get a bid out of any of them, because hiding that fact might have kept them alive long enough to dupe a fourth potential acquirer. But they did not deserve to stay alive. The bank and its management fucked up on a massive sale, and this is what is supposed to happen. Its demise creates valuable information and resets expectations. Spin only delays that.
See, the PR mind wants to hide the negative stuff, to downplay it. Because ultimately the people they are trying to spin aren't members of the public, it's the shareholders. They want to hide the truth from the shareholders so Lehman can keep shareholders' money. In other words, to bring PR firms to bear on the problem amounts to lying to owners of the company in an effort to defraud them.
Believe me, if Lehman has a PR firm, they need to be sued into poverty right along with the board and the management. Go ask Lehman's shareholders if Lehman should have hired a better PR firm.
posted by Pastabagel at 1:00 PM on September 16, 2008 [1 favorite]
10. Recognize your weak spots.
Lehman Crisis Executive: Guys, we have to recognize our weak spot. We're out of fucking money. Now what are the good things we have going on?
[OFFSTAGE: CRICKETS]
posted by GuyZero at 1:01 PM on September 16, 2008 [1 favorite]
Lehman Crisis Executive: Guys, we have to recognize our weak spot. We're out of fucking money. Now what are the good things we have going on?
[OFFSTAGE: CRICKETS]
posted by GuyZero at 1:01 PM on September 16, 2008 [1 favorite]
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Just remember, public peception is the key!
Man, when I become a crusty old broad decades from now, I am going to be the bestest geezer ever...
posted by Alexandra Kitty at 12:55 PM on September 16, 2008