Wall Street loves “events”. An event in their context might be a CEO saying something incredibly stupid that affects the stock price, gets the CEO fired, or both. A good example is the Lululemon CEO’s yoga pants comment back in 2013.
If something good happens, they usually see it as a reason to buy, except when odd Wall Street logic prompts them to sell instead. Likewise, they usually use bad news as a legitimate reason to sell.
Outside the context of Wall Street, the repercussions from an event can get a bit more personal. When these things involve (or appear to involve) a local business, people either flock to the place or abandon them as if they have a contagious and permanent disease.
Sometimes things get worse. What’s worse? When mob mentality takes over and a group of people decide your transgressions mean that you deserve to be forced out of business, or worse.
Dealing with the aftermath
No matter what happened, and no matter how at fault you and /or your business may be (including not at fault at all), you have two choices: tell the truth, or say nothing.
Why say nothing? Because your lawyer said so.
Why tell the truth? Because the whole story will eventually come out anyway and no matter how bad it is, lying about it to your customers, prospects, and community is always going to come back to bite you far worse than the truth will.
In these times, you might get the idea that there’s either no such thing as the truth, or that there are multiple truths for different people.
Which truth is that?
Clearly, there will be people who won’t believe you no matter what you say. They don’t care about the truth (certainly not from you, that is), so telling the truth isn’t about them. Remember, they only want to see you shut down, in jail, and / or publicly humiliated, so the real truth has a way of not mattering to most of them.
Even if you were right or not involved, you’ll take some heat. Nothing you say will mute the haters. Ignore them as much as possible, but always defend the facts. Leave the personal stuff alone and don’t make it personal. Make sure your family, friends, and employees stay out of it, particularly on social media.
Of those who eventually discover and recognize that you did nothing wrong (when that’s the case), history has shown that only a small percentage will acknowledge their discovery. The rest seem to be more worried about the fuss they made to their friends, family and others. That’s their ego and /or fear talking.
The truth is for everyone else.
Recovery and Communication
When these things happen, a timely response is essential. Do it as soon as possible. The longer you wait, the harder it gets and the more anger you’ll have to defuse. Inaction or procrastination both make it look like you don’t care. You have enough to deal with as it is (right or wrong) without an extended delay that makes you appear not to care about the situation.
If you were wrong or somehow involved, own it, make it right, and take the punch.
If you weren’t wrong or had nothing to do with it, own that too.
What does make it right look like? It looks like what you’d want someone to do when making it right to your grandma.
Who do you tell? A better question might be who don’t you tell. When the news starts to spread (guilty or otherwise), do you want other people telling your story? No. As with marketing, you need to be the one telling it, even if the story is bad news.
If new information becomes available, lead with it. Whether it’s good or bad, you need to take the reins on communication. If you don’t have all the information or even think you don’t, say so. Certainly the story can change in complex situations with confusing timelines and / or a lack of confirmable information.
A lot of this is common sense, but we sometimes need a formula to fall back on when we’re under pressures . These fallbacks are helpful for the same reason we use checklists and documented processes.
Remember, listen to your lawyer. Also remember that I’m not that person.