The wolf at your door
Make sure that all the huffing and puffing doesn’t blow your business in.
By Michael Feuer
November 2006
Anyone who runs a business knows that when you least expect it, “stuff” happens.
Sometimes that “stuff” can potentially be very damaging. So what happens when you find the wolf huffing and puffing at your door?
How should a CEO, owner or leader of a company react to a negative situation? One thing that never works, and that can sometimes dig you into a deeper hole, is to claim immediately and summarily that there is no problem. The worst tactic is to deny, deny, deny before knowing all of the facts, only to find out afterward that there are issues that need addressing.
Like it or not, perception many times becomes reality. If someone claims there is an issue, then in some form or fashion, it must become your immediate issue. The urgency with which you respond to the situation depends on who’s doing the huffing and puffing.
Never forget that where there is smoke, there is usually fire, and becoming defensive because you’ve been challenged or because your ego is bruised can set you and your organization up for even more problems. Reacting with righteous indignation is a no-no.
Every day, there are new reports about a company that finds itself in the spotlight. Read the newspaper any day, and you’ll learn of claims being made against myriad companies, from a public corporation backdating stock options to give the option recipients a lower strike price, to facing an environmental claim, an accounting problem or employee harassment charges.
Union threats and problems are also guaranteed to send chills down the back of even the most stoic CEO.
Once the gauntlet has been thrown down by an accuser be it a government agency, shareholder, or employee it is time to move to the military’s most serious readiness level, DEFCON One, more commonly known as Red Alert. This translates into a process of ready, aim, fire not ready, fire, aim.
Don’t deny anything just yet. Instead, respond by stating that the matter will receive immediate and thorough attention at the highest level of the organization. If appropriate, outside specialists must be called upon to provide a disinterested review.
Never and I mean never try to sweep a problem of any magnitude under the carpet. After making your initial stop-gap announcement, immediately bring your team together and provide leadership by meticulously vetting the initial allegations.
Secondly, appoint a spokesperson responsible for responding to all of your constituents, the media and the public in general because, in a time of crisis, an organization must speak with one voice. Under certain circumstances and depending on the issue, it may be necessary to remove either a senior person who has a vested interest in the outcome or even yourself from the review process.
Impartiality and objectivity are central to resolving the issue quickly and removing any clouds of suspicion.
If you find that the negative assertions are true, or even partially true, determine an appropriate course of action commensurate with the problem, then take your medicine, no matter how bad it may taste going down. If that means terminating someone for the transgression, so be it. If it means publicly stating your organization did something wrong, get on with it.
In taking action, it is mandatory that you package your response so that it is comprehensive and forthright, addressing the cause of the issue. Do not insult the public’s intelligence by offering up a mere placebo or Band-aid fix. The public is cynical about business, so make sure you do the right thing. It will be easier in the long run.
On the flipside, if your due diligence finds there is no merit to the claim, weigh the cost consideration of the struggle ahead for vindication from an economic as well as a time, effort and diversion standpoint. As much as I hate to say it, sometimes it’s just not worth fighting the fight.
However, if there will be meaningful and measurable damage in any form to your organization, then prepare your defense, have your facts in hand and charge into battle, not in an emotional frenzy but instead employing a methodical and strategic approach.
As in the story of “The Three Little Pigs,” just because the wolf said, “Let me in, let me in” doesn’t mean all the huffing and puffing will blow your business in. At the end of the story the wolf got just what he deserved when he was boiled in a kettle of water.
Sometimes, there is justice in this world.
