Greentarget

October 26, 2022 by Greentarget

If you’re an executive leader whose organization is facing a current or potential lawsuit, it’s important to consider a very important question. How do you manage the tension between protecting your firm from liability and mitigating a hit to your reputation?

Navigating a litigious event is daunting — and there’s plenty to worry about just preparing for the legal battle that lies ahead. On top of that, a lawsuit can also pose a significant threat to your firm’s public image. And since even the perception of guilt can cause you to suffer losses in valuation and revenue, the reputational risk that accompanies litigation can ultimately cause more harm to your business than the litigation itself.

Complicating this further, your legal team will tell you to keep quiet and avoid saying anything that could damage you in court. But your PR firm should insist that it’s crucial to get ahead of negative blowback and proactively communicate with your audience.

Here’s why you should avoid adopting an overly conservative response — and five strategies to communicate effectively in the midst of a legal crisis.

Why You Need an Effective Comms Strategy When Facing Litigation

Whether your firm is innocent or guilty from a legal perspective, staying silent in response to an attack on your firm’s image is not a good option. Why? In the absence of an official statement from you, your audience is much more likely to accept someone else’s narrative — or create one of their own.

Academic research bears this out. According to William Benoit’s Image Restoration Theory, “The important point is not whether the business is in fact responsible for [an] offensive act, but whether the firm is thought to be responsible by the relevant audience” (emphasis added).

More simply put, perception is reality. So even if (or perhaps particularly if) you’ve done nothing wrong, it’s essential to communicate your side of the story to your audience.

How Good PR Enabled a Healthcare Company to Gain Market Share

I saw the importance of managing the narrative around litigation first-hand when I represented a healthcare company that had recently acquired a new technology. When they attempted to break into their competitor’s market, the competitor promptly sued them for patent infringement in several countries.

Initially, my client’s IP lawyer persuaded them to stay silent. But the competitor was relentless, releasing well-crafted statements after every milestone decision in court. It spun every decision in its favor. As a result, my client’s sales team encountered significant resistance in the field.

Further, the client was a publicly traded company, and its stock prices came under pressure as the competition persisted with its full-court press.

The tide turned when the client’s executive leader stepped in. He understood that even if his organization won the legal battle, it could still lose in the court of public opinion. That meant their business’s very viability was on the line — and he knew it was important to speak out.

So we set out to beat the competitor at its own game. We collaborated closely with the client’s legal team to create scenario plans for every lawsuit in each of the several countries where active litigation was underway. We charted out every possible outcome for each milestone in every jurisdiction. We drafted a press release for every outcome that would relay our point-of-view into the marketplace as soon as each milestone was achieved.

This proactive, well-timed strategy enabled the client to maintain its customer base and eventually preserve the market share it had taken from its competitor. Thanks to executive leadership who understood the need to balance legal and reputation risk, the comms and legal teams were able to work collaboratively. Together, they addressed the compelling issues facing the company beyond the courtroom.

5 Steps to Manage Your Firm’s Reputation During Litigation

Protecting or restoring your firm’s image as a result of litigation will take a serious concerted effort on the part of your internal team. And though a partner like Greentarget can do much of the heavy lifting to facilitate this process, your Executive Committee members, legal counsel, and other influential figures will need to come together to craft your PR response.

This will require you to take five crucial steps.

1. Conduct Scenario Planning to Plot Likely Outcomes

High-profile, complex litigation can last for months, if not years. Therefore, as we saw in the example above, one of the most important things you can do is put strategies in place to minimize the impact of ongoing negative press.

To think through every likely scenario, ask questions like:

What are all the possible outcomes we may need to address?
How severe is the reputational threat of each outcome?
How could each scenario potentially unfold?
How should we respond to each scenario?

Finally, you’ll need to gather any data or supporting information required to inform the appropriate course of action in response to each scenario.

2. Prioritize Your Audiences

The details of your litigation may not affect — or even interest — every segment within your audience. Knowing exactly who you’re talking to is crucial in getting the right message across at the right time. Therefore, it’s important to tailor your response to the audience members who truly need to hear it.

Consider:

What audiences have the potential to be impacted?
Which audiences will be most affected?
What is the chain of influence within the audience environment?
How large is the gap between current and desired perceptions within each audience segment?

Then, develop concise, quotable, factual messages based on each audience’s needs. Use supporting details, analogies, metaphors, and other storytelling devices to capture their attention and foster empathy for your message.

3. Determine Which Communication Platforms to Use

Good communication plans are customized based on your audience’s needs. In the same way, it’s important to deliver your message using the mechanisms they are familiar with or accustomed to.

For example, you might choose to email your current clients because that’s how you normally communicate with them. Employees might expect to hear from you in an interactive town hall setting. But your investors or other key stakeholders might need to meet with you one-on-one.

Managing your firm’s reputation is too important to simply issue a one-size-fits-all message using your largest platform. Personalization is the name of the game.

4. Identify and Prepare Appropriate Spokespeople to Deliver the Message

It’s also important to consider who should communicate your message to each segment of your audience. As an executive leader, you might be the best person to talk to the media or communicate with your board or other influential stakeholders. But there may be other spokespeople in your organization who would be more effective at reaching certain audiences.

No matter who you choose to speak on your organization’s behalf, make sure they are prepared to master high-pressure environments. Greentarget can provide coaching to ensure each spokesperson knows how to:

Deliver key takeaways first
Distill important points into memorable soundbites
Block unwanted questions and maneuver the conversation back to your desired talking points
Stay calm and poised when fielding difficult questions

Just remember: Your choice of spokesperson is also a message. Carefully think through how each audience segment will feel about hearing your message from your chosen representative.

5. Put a Rapid Response Team in Place to Fill In Any Gaps

There are natural news events built into any litigation (e.g. filing of the complaint; subsequent motions; the verdict). In the scenario planning phase, you created a planned response for each one.

Still, unforeseen situations are bound to arise. And when they do, it’s vital to have a team in place that’s equipped to respond quickly.

Your rapid response team should actively listen and monitor the situation at all times. By having an ear to the ground, you can stay ahead of any curve balls potentially coming your way.

Bring PR and Legal Counsel Together When Facing Litigation

Although PR and legal counsel approach the challenges of litigation from opposite sides, they ultimately want the same thing: to protect your firm from harm. Since lawsuits typically stem from — or result in — a reputational crisis, your PR strategy and your legal strategy must be linked.

Staying silent in the midst of a crisis is rarely the best option, but you also don’t want to say the wrong thing. To that end, crafting an effective communications strategy in response to high-profile litigation undoubtedly requires expert guidance and support.

That’s why it’s essential to surround yourself with experts who’ve navigated these challenging circumstances before. Greentarget has helped numerous clients direct a smarter conversation throughout the course of litigation. We’d love to help you, too. Just reach out.

October 5, 2022 by Greentarget

Corporate social responsibility has factored into investment decisions for years, with the integration of environmental, social and governance (ESG) a big part of corporate decision-making for nearly two decades. But the focus on ESG reached a fever pitch in 2021. Indeed, there might not have been a more common three-letter combination in the world’s boardrooms.

That’s why international law firm Fenwick sought to unearth insights about how ESG and a growing cultural emphasis on diversity was affecting biotech companies. Specifically, the firm wanted to conduct first-of-its kind research and provide an analysis of marketplace reporting practices across the sector to create a resource for companies in biotech and beyond about key governance best practices at a critical moment.

Solution

Fenwick enlisted the services of Greentarget, specifically its Research & Market Intelligence and Content & Editorial teams, on a multi-faceted research approach. The first step was a unique review of the publicly available information of the top 50 biotech companies in the United States based on market capitalization. This review, which required nearly 100 hours of research-intensive time, included SEC filings and information on company websites, which was compiled and then summarized for key industry trends and other points of interest.

This in-depth review informed the development of quantitative survey questions designed to elicit insight from key decision-makers, including individuals who held C-suite positions, were heads of ESG or held sustainability and legal roles, as well as investors from hedge funds, investment banks and venture capital firms. A focus of the survey was to gauge sentiment around expectations and challenges regarding ESG, as well as expectations about SEC intervention and a medium-term forecast.

The results were then shared with Fenwick lawyers who represent technology and biotech companies on a variety of corporate governance and transactional matters, including ESG, to gather their analysis of the specific findings. Channelling these insights, Greentarget developed a report around the findings with an emphasis on providing actionable guidance about how companies can prepare and what they should consider when implementing and reporting on ESG.

Results

The final report, “Biotech’s ESG Crossroads,” was released in February 2022, combining what Greentarget found in its initial public review, the survey findings and the expertise of Fenwick’s lawyers. The report detailed how sector executives and investors compare when it comes to ESG’s growing prominence. And it discovered a lack of standard practices around ESG disclosures, that ESG would continue to surge in prominence and that biotech companies were just getting started when it comes to addressing ESG. The report, the first of its kind on this topic for Fenwick, is expected to become an annual offering.

The email campaign developed for the report launch yielded an open rate of 39.2%, with a click-to-open ratio of 5.9%. The report itself garnered 520 unique page views, with readers spending on average of four minutes and 46 seconds on the report page.

Media also took an interest in the data, with notable industry publications like STAT, FierceBiotech, BioCentury and Corporate Secretary covering the findings. Others, like Harvard Law School’s Corporate Governance Blog, republished the report in full.

Since the report’s launch, Fenwick lawyers have presented the data directly to biotech clients, speaking with their nominating and governance committees. One Fenwick partner who helped lead the data analysis told Law.com that companies in the biotech industry had been clamouring for this type of data on governance issues for a while, and being able to provide data that supports her legal counsel has been invaluable to her clients.

The report generated such strong attention that another law firm mentioned it during their own webinar about ESG issues.

September 28, 2022 by Greentarget

Moments after the Supreme Court announced its landmark Dobbs v. Jackson decision, Ropes & Gray’s chairwoman Julie Jones released a heartfelt statement. In it, she shared her personal and professional reaction to the seismic shift the decision represents.

Jones acknowledged the differences of opinion her internal stakeholders held on the decision while openly articulating her dismay regarding the reversal of Roe v. Wade. She also made her firm’s position clear, saying, “There will be many opportunities for those interested to contribute on a pro bono basis to the protection of health care rights for women, a cause which Ropes & Gray will continue to champion.”

Jones’ full statement is powerful and authoritative. But from a PR perspective, it’s not so much what she said that’s particularly noteworthy. It’s the fact that she was poised to respond in a meaningful way that sets her apart from the majority of her peers.

More than ever, the professional service firm’s executive committee is called upon to make decisions regarding issues that don’t directly impact their business, or participate in narratives that have not required their participation in the past. Many of these issues and narratives are fraught with emotional risk for certain stakeholder groups, requiring abundant empathy and a strong understanding of their audience. For these reasons, executive committees should consider engaging directly with a PR firm that can provide objective guidance in this new landscape. Here are five ways engaging a strong PR resource can help an executive committee navigate the special situations that are heading its way with greater frequency.

1. Know When and How to Speak Out on Social Issues

We’ve said it before. In today’s world, social concerns are business concerns. And that means your firm can’t afford to sidestep the hot-button topics your audience cares about.

That doesn’t mean you need to speak out about everything that’s happening in the world. But it does mean you should carefully examine your values and develop unique points of view on the issues that matter most to your firm and your stakeholders.

For Julie Jones, that meant crafting a statement about Dobbs even before the decision was final. For other firms, it might mean developing positions of authority about tax reform, ESG principles, or climate change.

Whatever the case may be, a good PR firm can help your executive committee anticipate what’s approaching on the horizon. That way you won’t be left scrambling to respond after another firm has beat you to the punch.

2. Protect Your Firm’s Reputation in Times of Crisis

It can be difficult for any leader, no matter how experienced, to know the best way to handle a crisis. That’s especially true if the crisis in question poses a threat to the firm’s reputation.

Some accept an unwarranted ding to their firm’s public image for fear of making the situation worse. Others try to curtail the damage by minimizing or downplaying their firm’s wrongdoing or missteps. Neither end of this spectrum demonstrates the authenticity and vulnerability that a difficult PR scenario requires.

That’s why PR counsel is so important in the heat of the moment. We advise clients on how to respond to difficult situations with empathy for their audience. Keeping your audience’s concerns, questions, and needs at the forefront of your crisis communication plan is the crucial first step toward moving beyond the eye of the storm.

3. Communicate Effectively During Leadership Transitions

Executive transitions — particularly at the most senior level — are news events that are certain to attract the public’s attention. As such, it’s critically important to communicate clearly with clients, stakeholders, and the public before, during, and after key executive changes.

But many executive committees don’t take time to plan for transitions before they happen. And without clear succession plans in place and solid communication plans to back them up, executive committees can miss valuable opportunities to properly leverage the moment when the time comes to announce a transition.

Working with a PR firm before leadership transitions are even on the table enables your executive committee to:

Craft compelling institutional narratives about where the firm has been and where it’s headed in the future.
Define and articulate your firm’s unique value proposition, which can become the common thread that connects an outgoing leader to an incoming one.
Capture and preserve the institutional memory and knowledge of key leaders before they depart.

Successful leadership changes are carefully planned and expertly communicated. And the best way to ensure your firm experiences a seamless transition is to consider how your audience will view the relationship between the past and the future well in advance.

4. Make Informed Decisions About Client Representation

Your executive committee should engage in healthy debate regarding which clients to represent and which to pass over. That’s particularly vital in the age of cancel culture. It’s become increasingly common for individuals and community advocacy groups to access client lists and pressure firms to reconsider their affiliation with controversial individuals or businesses.

A PR partner can help executive committees consider questions like:

Will representing this client contradict — and therefore undermine — our stated values?
Is this engagement likely to invite threats to our reputation? And if so, are the short-term gains worth the risk?

By engaging a PR firm to help you consider these and other questions, your executive committee can shape a smarter, more strategic process around client selection.

5. Communicate Transparently, Especially With Internal Stakeholders

Two decades ago, the Sarbanes Oxley Act was passed to increase transparency related to corporate governance practices. As a result, corporate boards sought out PR representation to help them manage accurate, transparent disclosures that their public shareholders and other stakeholders could understand and accept.

Executive committees at professional services firms should take a page from this playbook as they develop internal communication strategies.

Why? During the pandemic, your employees became accustomed to receiving frequent, transparent, and open communications. They felt they were kept in the loop about rapidly changing scenarios and circumstances. They saw a different side of executive leaders when children, pets, and spouses made unexpected cameo experiences during even the most important meetings and calls. And they continue to crave — and yes, expect — transparency about the decisions you make on behalf of the firm.

A good PR firm knows how to help leaders demonstrate transparency, openness, and authenticity when communicating to (and eliciting feedback from) their employees.

Don’t Neglect Your Executive Committee’s Unique PR Needs

The executive committee is responsible for stewarding the firm’s wellbeing while simultaneously charting its course for the future. This important work shouldn’t be done in a vacuum, or an echo chamber. A strong PR resource can provide insight into the audience that is necessary to craft a thoughtful and authentic response to any number of newly urgent and risky issues.

Of course, the best time to engage a PR firm is before you need one. So even if the skies are currently clear at your firm, let’s talk.

September 14, 2022 by Greentarget

Executives are increasingly expected to speak up on a range of issues – but just because they have something to say doesn’t mean a news outlet will run it. Depending on the content and intended audience, an external publication might not even be the best medium for the message.

August 11, 2022 by Greentarget

Amidst the Great Resignation, companies increasingly face disruption from the mass exodus and acquisition of employees. The departure of public relations and marketing leadership can prove especially difficult, given their handle of your company’s communication strategy – involving both publicity and reputation management.

Though this period of staffing transitions is poised to persist, it doesn’t require the derailment of your company’s marketing and communications plans. Involving your external PR firm during the off/onboarding process is a great way to keep your communications momentum going.