Rumors have been around since the beginning of time. While some are based on
fact, many are predicated on fantasy and are cobbled together with a smattering of relevant information, combined with doses of the
unsubstantiated.
Politicians are frequently masters of using
rumors to float trial balloons to test reactions,
running ideas up the flagpole to see if voters
salute. Corporate executives run a close second to elected servants with this type of “opinion research.”
Many times, people launch a rumor knowing
they have a safety net to prevent a boomerang
effect by maintaining plausible deniability. As
in “Mission Impossible,” the tape concludes
with, “If you are discovered, the secretary of
this secret team will disavow knowledge of
your actions.”
The voice then asserts the tape will self-destruct, followed by a boom.
Rumors can be nefarious, a weapon of mass
destruction (WMD) used against the naive
or unprepared. Stock touts have used
rumors since trading began to entice others into buying or selling a stock with the
hope that its price will move to benefit
the perpetrator.
Others are mere gossipmongers who
take information out of context.
Every company has to deal with rumors,
ranging from the benign to the cataclysmic,
threatening the very foundation and credibility of the company.
It’s usually difficult to determine the origin of
rumors. For example, participants at a trade
show might hear a rumor about a competitor,
then they repeat it to suppliers. The next competitor embellishes the story for his or her own
benefit at the expense of the rumor’s target.
If you are the subject of negative rumors, it’s
more important to launch damage control than
to unearth the source. These harmful tales can
take on a life of their own as they gain momentum and mutate, spawning other subplots.
Rumors can strike out of the blue. For example, you’re looking at results for the past week,
which, for once, might hit the target. You’re
breathing easier, and your perennial chest palpitations are gone. You’re thinking that life is
good, and your worst fears that the ship would
sink on your watch are fading.
But your bubble bursts when the phone rings
and it’s your biggest customer asking if there is
anything to the word on the street that the bank
is calling your loan and you won’t be able to
meet customers’ production requirements.
Instantly, the palpitations are back, as perspiration drips down the back of your neck.
Your first response is, “Where did you hear
this idiotic story?” But the customer just wants
to know if it’s true and, if it’s not, how you can
give him the assurance he needs to continue to
do business with your company.
You ask Mr. Big Customer to hold while you
get your banker on the line. You then conference together Mr. Banker and your “can’t
afford to lose, or you’re out of business” customer. You restate the rumor, ask the banker to
confirm that the bank has no issues with your
company, and the customer thanks you for providing reassurance.
Next, you summon your senior team and
explain what happened so that everyone is on
the same page. Simultaneously, you dictate a
note to your salespeople outlining this issue
and how to handle inquiries, providing a list of
possible customer questions, along with
answers.
If you think there is a reasonable chance your
other large customers might hear this story, get
them on the phone, tell them what happened
and offer to have your banker call them directly. Your customers will appreciate your decisiveness, candor and the respect you gave
them by bringing them into the loop. You also
showed them leadership and that you are in
control.
The only real rule for handling rumors is this:
Don’t put your head in the sand and hope the
problem goes away. Instead, deal with the issue
head-on and get your pertinent players
involved from the get-go.
Always place yourself in the other guy’s shoes
by trying to understand what he needs to know
to assuage his concerns. When you do it right,
with a ferocious sense of urgency, you’ll have
managed the rumor and possibly turned it into
an advantage by solidifying your credibility
with your customers.
WMDs can do huge damage, whether they’re
real or only imagined. Rumors can have the
same effect unless you know how to react and
manage the process.
MICHAEL FEUER is co-founder of OfficeMax, which he started in 1988
with one store and $20,000 of his own money, along with a then-partner and
group of private investors. During 16 years as CEO, he grew the company to
almost 1,000 stores with sales approximating $5 billion before selling it for
almost $1.5 billion in 2003 to Boise Cascade Corp. In 2004, Feuer launched
another start-up, Max-Ventures, a venture capital operating firm that focuses
on buying control and/or making substantial investments in retail-oriented
businesses and businesses that serve retail. Reach Feuer with comments at
[email protected].
