Greentarget

Executive leadership

by

Your high net worth clients can take their assets anywhere at any time. To attract and retain their business, your firm needs to be positioned to win. 

As an executive in this highly competitive and fragmented landscape, you know there are four essential ingredients to attract registered investment advisors (RIAs) and their clients to your platform:

  • Access to investment alternatives that will yield higher returns
  • High-touch client service 
  • Banking services to complement wealth management services
  • Attention from a broader team who can take over the book of business if and when the lead RIA leaves or retires

But since excellent service and performance are mere table stakes, these four elements might not be enough to achieve and maintain a winning standard. Your wealth managers must offer a fifth fundamental ingredient: authority.

Greentarget is a PR firm serving clients in a variety of professional services industries. As such, we regularly talk to wealth managers about the challenges they’re facing. Here’s a look at what we’ve heard from them — and why we think carving out unique positions of authority is key to transforming your industry challenges into growth opportunities.

Challenge 1: Investor Demographics Are Shifting 

Now more than ever, wealth managers play a personal role in their clients’ lives. As people live longer, face the effects of long-term inflation on their assets’ purchasing power, and experience increasingly fragmented family lives, it’s common for RIAs to become confidantes and friends to the clients they serve. 

In light of this, wealth managers also have the opportunity to become trusted authorities on the issues that matter most to their changing clientele. 

What do we mean by the word authority? As we explain in our Manifesto, authority is different from thought leadership. Whereas thought leaders share ideas, authorities know. They draw on their distinct perspective and proven experience — and then deliver clear, succinct insights that are supported by fact, narrative, and cutting-edge data. 

How could your wealth managers become true authorities who are not just heard, but also heeded and implicitly trusted by clients? Here are a few examples of ways your RIAs could make their mark:

  • Put resources in place to support older women and protect them from manipulation and abuse.
  • Help clients of all ages plan for their post-retirement lives, including navigating the nuances of moving to a continuing care retirement community or otherwise making provisions for future long-term care.
  • Offer business succession planning for family-owned businesses to transfer ownership from one generation to another.
  • Create an avenue to serve HENRYs (high earners, not rich yet) and help them grow their wealth from the ground up.

The world is changing fast. Women in particular are an underserved demographic who need advice specific to their circumstances. And if your firm is not taking steps to carve out unique points of view on the issues that matter to your changing clientele, someone else will. 

Challenge 2: Emerging Technologies Like ChatGPT Threaten Disruption

At first glance, the rise of emerging technologies — especially generative AI — presents a formidable challenge to the wealth management industry. But while it’s true that AI-powered tools like ChatGPT can develop a diversified portfolio in seconds, many clients are reluctant to rely solely on AI-generated recommendations. 

This isn’t surprising when you consider the demographic shifts we’ve discussed already. Clients — especially older audiences — don’t want to be served by an algorithm. They want a personalized touch that only humans can provide, particularly when it comes to managing their wealth. So as AI continues to evolve, wealth managers must strike a delicate balance between automation and personalized service to meet sky-high expectations while remaining efficient and competitive.

In addition to ChatGPT, the proliferation of robo advisors and the digitization of assets further complicates the wealth management landscape. Robo advisors offer a low-cost alternative to traditional wealth management, making it more challenging for human advisors to compete. The digitization of assets, on the other hand, introduces complexities related to security, compliance, and data management. Wealth managers must adapt to these digital advancements by incorporating them into their service offerings, all while ensuring that clients’ assets remain safe and that their financial goals are met.

So how can your wealth managers stay ahead of the technology-related curve? Again, they must become authorities on these issues and solidify a unique point of view that differentiates them from all the other voices clamoring for attention. 

A forward-looking, creative POV on emerging technology and its role in asset management can drive interest and goodwill among current and potential clients.

Challenge 3: Economic and Security Concerns Have Investors on High Alert

As you well know, investors continue to be highly concerned about their assets as a result of the extended period of economic uncertainty we’re all experiencing. Even so, this macro-level financial insecurity and banking industry turmoil comes with an opportunity. 

While big-name brands like Wells Fargo and FTX continue to suffer from the far-flung ramifications of serious reputational crises, your financial services firm has the chance to build a highly respected and trusted reputation. 

To build your growing firm’s brand, your wealth managers must demonstrate:

  • Integrity. Can clients trust that your firm will do the right thing at all times?
  • Stability. Especially in the midst of industry consolidation through mergers and acquisitions, do your clients know your firm is stable? 
  • Security. In an age of cybersecurity attacks, phishing schemes, and scams galore, is your asset custody platform strong and impenetrable? 
  • High-touch service. Since big-name wealth management firms struggle to offer proactive, intentional communication, are there ways you can position your firm to stand out by offering ultra-personalized, excellent service?

You may not be able to build the kind of solid, unimpeachable brand reputation JP Morgan enjoys overnight. But with time and intentional, proven PR strategies, you can create a name for your firm that becomes synonymous with integrity and excellence.  

Invest in PR to Position Your Wealth Management Firm for Success 

Trust is the currency on which your firm is built. So when it comes to staying ahead of the competition in an industry like yours, positioning your wealth managers as trusted authorities becomes its own kind of ROI.

But in your fast-moving industry, it can already feel challenging to keep up with the daily demands of managing the assets of high-net-worth clients. Establishing and articulating unique positions of authority via owned media and earned media channels is unlikely to rise to the top of your wealth managers’ priority lists — unless they have expert help. 


That’s where Greentarget comes in. We’ve worked with hundreds of professional services firms to build their brand, hone authoritative positions, and overcome their particular industry challenges. We’d love to help you, too. So let’s talk.

by

No matter what business you’re in, everyone’s talking about the promise—and peril—of artificial intelligence.

But as executives weigh the efficiency of AI against cybersecurity and other risks, they must remember one key fact: AI is also a communications challenge.

Meeting that challenge requires balancing the need for transparency and guidance with the agility and flexibility necessary to keep pace with a swiftly evolving technology. This is especially important for leaders at professional services firms, whose reputations can depend on providing authoritative counsel on emerging issues like generative AI—which, unlike traditional AI, uses unsupervised models to create new content and data.

In what follows, we’ll assess the current AI landscape for professional services firms and map out the communications obstacles (and opportunities) those organizations may encounter as the technology advances.

AI in Professional Services: New Opportunities, New Concerns

From legal to consulting and accounting firms, professional services providers are tapping into the power of AI to help speed workflows, improve efficiency, and generate data-driven insights.

Internally, our law firm clients have already been using AI and machine learning for functions like eDiscovery—and some are now testing out generative AI in content creation (e.g., job postings, social media posts, document production). Consultants and accountants are using it for everything from predictive analytics to automation of back-office functions and more. At the same time, these firms are also bringing AI into in client-facing offerings: consulting on legal and operational risks related to the technology, helping organizations adopt AI themselves, and/or deploying it to improve client processes and services.

For professional services organizations, it’s not only an efficiency play—it’s also a business imperative, one that clients are increasingly demanding as they look to lower outside spend and operational costs. As one GC told us, “Law firms should be figuring out how they’re going to use AI tools to help their clients rather than sticking their heads in the sand and saying it would be inappropriate for us to use them.”

It tracks, then, that in a recent survey by our client Womble Bond Dickinson, only 13% of executives (including those from professional services firms) said that they are not investing in AI or are unsure; over half are already making investments or plan to do so in the next year. Asked about key obstacles around the use of AI, respondents cited issues including ethical concerns, a lack of understanding about AI, legal risks, costs, and a lack of qualified personnel.

But these aren’t the only concerns for professional services firms. Some GCs want their outside counsel to use ChatGPT to lower billable costs, while firm leaders are worried about the impact of generative AI on training the next generation of talent. The evolving regulatory environment also poses potential issues, though as a new Littler survey notes, most employers have not changed their AI usage as a result.

Key Executive Positioning Challenges

As demonstrated by the above, professional services firms, like other businesses, are moving forward with AI despite widespread risk and uncertainty.

Communication from the top—be it internal policies and guidance or external stakeholder communications (e.g., with vendors, clients, investors, talent, etc.)—is therefore critical. Yet only 37% of the HR professionals and in-house counsel that Littler surveyed report providing policies or guidance to employees on the proper use of AI tools in the workplace. The majority are also underutilizing AI vendors or outside counsel to assess risk.

Clearly, there’s room for improvement. As we learned during the pandemic, moments of flux demand proactive, transparent, and authentic communication. Better to overcommunicate, even if you don’t have all the answers, than leave stakeholders guessing.

Here are a few questions executive communicators should be asking themselves when it comes to AI:

  • Cyber/privacy risk. Do you have a communications plan in place as part of a broader cyber incident response strategy? How are you communicating to external stakeholders about the steps you’re taking to safeguard their data and privacy with new AI tools? How are you delivering guidance to those using AI tools within your organization?
  • Policies. Do you have a usage policy for generative AI (and/or other AI tools)? Are you effectively communicating that to your employees in a way that balances brevity, support for employees, and risk mitigation? Is there a steady cadence of communications to ensure these policies are implemented?
  • Talent. As AI use stokes fears about job displacement—one Goldman Sachs study says generative AI could automate almost half of legal tasks—how are you communicating to current and prospective employees about how AI tools can help them in their work? How are you ensuring effective interpersonal communication between mentors and mentees as technologies like AI continue to throw up obstacles to in-person connections?
  • Operations. Given the range of different functions AI will impact across your business, are you convening the right group of people to make these communications decisions? Who should be involved, and when? Is there a process in place to communicate quickly and with flexibility?
  • Business goals. Perhaps most importantly, are you proactively articulating the value of AI to your employees, clients, and other stakeholders (e.g., how it might cut down on costs or free up bandwidth for more creative or substantive work)? How does it align with your overarching business objectives?

When it Comes to Communicating About AI, There’s No Time Like the Present

AI will change the nature of professional services work. But how your clients, employees, and other stakeholders react to these changes is up to you. Proactive, transparent, and authentic communications—utilizing clear, consistent, focus-group-tested messaging—can build trust in moments of flux and uncertainty.

Now is the time to get started. Learn more about how Greentarget can help by clicking here.

About the Executive Positioning Practice Exemplifying Greentarget’s commitment to being a trusted advisor to clients, Greentarget’s Executive Positioning team provides c-suite executives (managing partners, CEOs, executive committees, and boards) with insights to anticipate, understand and respond to important global and social developments, analyzing key issues that can impact reputation and compel leaders to communicate.

by

As Western law firms that spent years growing their footprints in China either exit or retrench, the reason global firm Dentons cited for doing so stands out for its directness.

In a memo to clients, Dentons said it ended its tie-up with Beijing Dacheng Law Offices “in response to an evolving regulatory environment for Chinese law firms in China—including new mandates and requirements relating to data privacy, cybersecurity, capital control and governance.”

As conditions in China become increasingly challenging, how a firm communicates a decision to withdraw need not be left to the last minute – indeed, firms should have plans in place now, especially as the prospect of greater conflict in the region looms. The unlawful Russian invasion of Ukraine and Hamas’ more recent incursions into Israel signal the importance of having risk management and corresponding communications plans in hand before the next geopolitical crisis, which many believe will be Chinese President Xi Jinping’s inevitable attempt to take Taiwan.

The pullback among foreign law firms is the latest evidence that the Chinese government’s heightened focus on national security and related geopolitical tensions is impacting the ability of professional services firms to do business there. The Big Four auditing giants have also shut down legal affiliations with local firms in China, according to Law.com. Meanwhile, Chinese authorities earlier this year probed operations at China offices consulting firms Bain & Company and Mintz Group, and detentions of foreign executives are adding further chill to the business climate.

As one anonymous Dentons partner told The American Lawyer, “It wasn’t really a corrosion of our relationship [with Dacheng]. It’s more that it’s become impossible to serve our clients properly, those that have China links.”

Worsening Economic and Geopolitical Conditions Raise the Communications Stakes

The changes global law firms made to their Chinese platforms in 2023 are part of a longer-term trend. The number of foreign law firm offices in China has been in decline for five consecutive years, falling by 16% to 205 as of the end of 2022, according to Chinese Ministry of Justice data, with U.S.-based firms leading the withdrawal. More firms will likely be queueing up behind Dentons and others heading for the exits as China’s economic downturn deepens, limiting business opportunities while trade tensions slow cross-border investments.

These developments come as heightened tensions between China and Taiwan once again fan speculation around a possible Chinese invasion. Affluent Taiwanese are transferring wealth abroad or shifting money into portable assets. Multinational companies are taking force majeure clauses one step further and inserting provisions into contracts specifically tied to China-Taiwan tensions. Meanwhile, America’s military and political leadership are discussing deterrence and timelines of a possible Chinese invasion amid growing economic and diplomatic pressure.

Coupling these conditions with the increasingly aggressive Chinese regulatory stance toward foreign firms, leaders of professional services organizations must consider the possibility that a conflict in Taiwan could further compromise their business and compel them to communicate their position on Chinese aggression – operationally and philosophically – with clients, employees, regulators, and the public.

Recall the weeks following Russia’s invasion of Ukraine. Hundreds of global companies shut down Russian operations within a few days. Professional services firms were slower to react than other organizations and their responses varied widely—from resigning clients based in Russia to taking no action at all, perhaps reflecting the difficulty of giving up work when it can be done from anywhere. 

Given the difference in the size of the Chinese and Russian economies and levels of foreign direct investment, we would expect even greater difficulty unwinding from China than from Russia despite China’s lackluster economic outlook. The International Monetary Fund last year ranked China the third most prominent destination for foreign direct investment, totaling $3.6 trillion in 2021. (This doesn’t count Hong Kong, which received another $1.9 trillion.) Russia isn’t even in the top 10.

As we saw after the invasion of Ukraine, intensifying Chinese aggression toward Taiwan would likely be followed by swift international condemnation and calls for Western firms to withdraw or to limit activities that could be said to support the regime. Other complications, from head-butting between the Chinese and U.S. militaries to stepped-up regulatory actions against foreign firms operating in China, could elicit similar responses, highlighting the need for firm leaders to be prepared for such eventualities.

In a Volatile World, Organizations Need a Proactive Communications Strategy

It is critical that firms have a clear framework for whether and how to respond to such crises, beyond the compulsory need to communicate regarding local staff who may be in harm’s way.  As a starting point, we recommend the process we developed to help leaders decide whether and how to respond to social and political issues since the murder of George Floyd. 

The Conference Board is aligned with our process. It recommends considering the issue’s alignment with the following:

  • Your organization’s core values
  • The requirements and expectations of internal and stakeholders
  • The connection between the issue and business
  • The significance of the issue to society
  • The incremental impact your organization may have

Firms should choose how prominent a leadership role they wish to play and be transparent with stakeholders about the criteria and process they employed in deciding whether and how to respond. (Firms structured as vereins, with members and affiliates in different parts of the world, should take note of this last point.)

And as consulting giant McKinsey points out, you should also consider adjusting your corporate narrative with an eye to shifting geopolitical risks. If you have an early handle on how you would respond if a specific crisis occurred, consider whether that is aligned with how the firm talks about itself today. If that narrative conflicts with your anticipated position, shifting your narrative early can avoid confusion among internal and external stakeholders down the road. 

Engaging with us in a rigorous scenario planning process can bring significant clarity. That’s especially the case if the process is conducted before the crisis occurs and urgency overtakes the opportunity to be thoughtful. We’ve helped clients navigate the invasion of Ukraine, the repeal of Roe v Wade, and the Oct. 7 attacks on Israel. Reach out if we can help you, too.

About the Executive Positioning Practice Exemplifying Greentarget’s commitment to being a trusted advisor to clients, Greentarget’s Executive Positioning team provides c-suite executives (managing partners, CEOs, executive committees, and boards) with insights to anticipate, understand and respond to important global and social developments, analyzing key issues that can impact reputation and compel leaders to communicate.

by

In times of economic uncertainty, client retention is of paramount importance. After all, when there’s less new business to be had, focusing on retention protects crucial month-to-month revenue and becomes a strong foundation on which future growth is built. 

Of course, focusing on client service will also yield valuable dividends no matter the economic circumstances. That’s why at Greentarget, we’ve spent several years defining the brand promise we deliver to clients. As a result, “The Greentarget Way” has become an integral part of our team culture. Every employee knows what it takes to live out our ideals when working and collaborating with clients.

by

This past May, Ernst & Young announced that Project Everest, the firm’s plan to split its auditing and consulting operations, was officially dead. “People familiar with the matter” had been leaking details of infighting and pushback to The Wall Street Journal as early as March. And as the plan circled the drain, $600 million in sunk costs and 3,000 jobs went down with it.

Leaks happen during transformational moments and other periods of disquiet within a partnership, and they can be destabilizing for a leadership team. It doesn’t really matter why people leak information – whether it’s to blow the whistle, toot their own horn, exert influence over a firm’s direction, or grind an ax – damage may be done regardless. 

Leaks can harm your firm’s reputation, sow doubt among key stakeholders, and complicate lucrative, transformative plans, from mergers to operational overhauls. So if your firm’s sensitive information makes its way to the press, don’t shrug it off as a mere annoyance. Treat the event like the PR crisis it is. 

As we’ve advised our own clients who’ve been victims of leaks, you can’t unring this bell. But you can mitigate and lessen the impact of unwanted exposure by responding in the following ways.  

1. Talk to the Reporter When Approached About a Leak

When reporters reach out to ask your firm for a comment about something they’ve been told, it’s only natural to want to respond with a curt “no comment.” That’s a mistake.

True, you may not be able to answer specific questions about rumors and speculation, especially if you’re in confidential M&A talks. And any on-the-record response should be carefully calibrated to address the concerns of stakeholders and avoid provoking additional questions. 

But you can talk to reporters “on background” to provide additional information that allows them to contextualize what they’ve heard and write more nuanced, balanced pieces. 

Understanding “On Background” Conversations

“Background” can be a fuzzy concept. Everyone who’s seen All the President’s Men thinks they know what it means, but news outlets rarely treat such conversations exactly the same way. So before you dive in, make sure you and the reporter are on the same page as to what you’re agreeing to, and to whom the information you provide may be attributed.

Here’s how The New York Times describes “on background” and “on deep background,” and the guardrails you should establish with a reporter before the conversation starts: 

Can a source be quoted by name? Can we use the information if we leave out the name? Can we at least describe the source’s job?…

Generally, “on background” is understood to mean that the information can be published, but only under conditions agreed upon with the source… A reporter might negotiate with those sources to at least describe their jobs in broad strokes, to give a reader proper context: “a federal worker who shared the material,” “a government official with access to the information.” 

Deep background… is where establishing ground rules is particularly important, since many journalists and sources have competing definitions. For some, there is no practical distinction between “background” and “deep background”… Others interpret it to mean that information can be used only for the reporter’s context and understanding, with no attribution of any kind.

If you agree to provide background for a story, be crystal clear about what you mean and confirm whether or not the information you provide can be attributed to you in any way, and if not to you directly, then how the attribution should be framed..

The Value of “On Background” Conversations

Clients we’ve helped go on background are generally happier with the outcome of unexpected press coverage than clients who refrain from speaking to reporters at all. Talking to a reporter on background enables you to contextualize a leak and can help the reporter see the situation more completely. Credible journalists want to provide accurate, well-rounded information, so going on background can alter the way they frame the report.

True, you’re unlikely to ever be entirely happy with the press coverage your firm receives as a result of a leak. But even so, the only way to influence the outcome is to talk to the reporter as much as you reasonably can. Doing so also helps build relationships with the press – if the news is consequential enough, this may not be the last story they write on the subject.

2. Anticipate the External Impact of Internal Messages

When you need to communicate with internal stakeholders about difficult PR situations, craft your internal messages as if they’re public statements 

You should always be as transparent and upfront with employees as is prudent. That’s true on any given day, and it’s true in times of crisis. Even so, it’s important to bear in mind that every memo, email, text message, and video you share also has the potential to be leaked. 

Partners and employees can easily share internal communications with a journalist or take matters into their own hands and share them with sites like Above the Law, Fishbowl, and Reddit. Parse your messages carefully to avoid adding fodder to an already tricky situation. 

3. Consider Multiple Stakeholders

Leaked information always has a ripple effect. So as soon as you can, think about who will be impacted by the story once it hits — and do what you can to get ahead of it. 
The faster you can release a statement to those in your audience likely to be impacted by press reports on previously confidential information, the better. Why? It’s always preferable for your stakeholders to hear news from you before they hear it elsewhere. Breaking the news first allows you to explain the matter, paint a more complete picture, and provide context that a reporter may or may not include. 

The Right Way to Communicate With Stakeholders in a PR Crisis

Be clear, direct, and transparent – in internal and external communications alike. Don’t hide behind vague corporate language. It’s ok to correct misinformation and falsehoods, but you should also take responsibility if your firm misstepped in any way.

Give careful thought to:

  • How you communicate. Which channel will allow you to reach your various stakeholder groups most effectively? Should you call high-value clients personally? Hold a town hall meeting for employees? Send a mass email to your larger client list?
  • Who delivers the message. Who should be the spokesperson to each stakeholder group? Your CEO may not be the right person for every member of your audience. Depending on the situation, it might be wise to select another senior leader, a mid-level manager, or even a trusted community partner to make your case with various groups and help your firm retain trust. 
  • When you communicate. If it’s not possible to get ahead of the story, be sure to follow it up in a timely manner. Let your stakeholders know that you’re aware of the press coverage and offer as much information as you can about your firm’s position.

Remember: The world is not your audience. Your employees, clients, business partners, and in some cases your peers, industry and affinity groups are the people you need to worry about. Provide the information they need to understand what is happening. And monitor your firm’s two-way communication channels for stakeholder feedback so you can respond to questions and concerns as they arise.

An Ounce of Prevention: Take Steps to Strengthen Your Firm’s Culture 

Information leaks can be professionally damaging and personally disheartening for leaders in professional service firms. In the heat of the moment, the only thing you can do is respond to the crisis at hand. 

Stepping back, it is worth contemplating the cypherpunk construct that information wants to be free. Considering the human compulsion to share information with one another sociably, the rationalization humans are capable of when told they can’t do something, like share information, and the rapid decentralization of organizational design, executives may be forgiven for believing that leaks are an inevitability. If secrecy is mission critical to your organization, communication prohibitions may be put in place and steps taken to strengthen compliance and reduce the likelihood of employee backlash and resistance. (for more, see Sussman, Harvard Business Review, 2008.) 

Short of that, it’s also worth contemplating that firms with positive, transparent, and collaborative cultures tend to experience fewer leaks than those operating in a top-down, opaque fashion. So once your PR crisis is over, it can be helpful to identify the steps you can take to foster a healthier internal climate. These should include reshaping how you communicate going forward. Clear, consistent and appropriate internal messaging about leadership aims and decisions can foster an atmosphere of trust that will limit future leaks.

At the end of the day, protecting your firm’s reputation requires you to be both reactive and proactive. Respond swiftly when leaks happen. Talk to the reporter, and talk to your stakeholders. But along the way, don’t neglect the long-term work of creating an environment where partners and employees have zero desire to divulge sensitive information in the first place.

No matter what you’re facing, Greentarget would love to help you position your firm for immediate and long-term success. So let’s talk.

by

As your professional services firm continues to navigate today’s uncertain economy, it may become necessary to adjust staffing levels and/or cut expenses in other ways. And though these actions are intended to position your firm for long-term success, they can weaken your business if not done thoughtfully and with empathy for your audience.

Take MillerKnoll CEO Andi Owen as a cautionary tale. In April, she urged employees to “leave pity city” in response to complaints that they would not receive bonuses. In her video message, Owen starts off by encouraging employees to “focus on the things we can control.” But as she continues, her thinly veiled frustration starts to seep through. And before long, she raises her voice, wags her finger, and sarcastically scolds her team, saying:

Don’t ask about ‘What are we going to do if we don’t get a bonus?’ Get the damn 26 million dollars! Spend your time and your effort thinking about the $26 million we need and not thinking about what you’re going to do if you don’t get a bonus. Alright? Can I get some commitment for that? I’d appreciate that. I had an old boss who said to me one time, ‘You can visit pity city, but you can’t live there.’ So people? Leave pity city; let’s get it done. Thank you. Have a great day. 

She ends the video by making hand motions depicting an explosion, as if she’s just delivered a mind-blowing, enlightening truth bomb. But the biggest hit she delivered was to her own reputation.

Here’s the actual truth bomb: Empathy for your audience is fundamental to effective communication. And as a leader, you can’t afford to alienate your audience by delivering hard truths the wrong way.

The Business Impact of Empathetic Communication 

It’s never easy to share difficult news about things like staff reductions, bonus/salary freezes, and budget cuts. However, communicating challenging circumstances skillfully is an excellent way to establish your firm’s authority and build trust with your audience.

A communication plan rooted in empathy can:

  • Protect your firm’s reputation with internal stakeholders and the public 
  • Limit the amount of time bad news spends in the news cycle
  • Reassure stakeholders that you know what it takes for your firm to weather the storm and come out on top
  • Reinforce your brand and underscore your organizational values

Even if your firm is in good financial shape at the moment, you’ll most likely need to communicate difficult news at some point. It’s just part of running a business. And since the best way to manage a PR crisis is to avoid creating one in the first place, it’s wise to start working on your playbook now. 

5 Elements of a “Hard Times” Communications Playbook

Your firm’s financial health must guide your decision-making. But your stakeholders’ needs and expectations should be the compass that directs your communication plan. Incorporating the following five elements into your comms strategy will help you make the best of otherwise undesirable situations.

1. Exhibit Compassion

Every decision you make about your business impacts your people in some way. So when you’re communicating news about layoffs, salary freezes/reductions, and other cost-cutting measures, don’t underestimate the human toll the news will take.

Your employees may ask you difficult questions, put you on the spot, and criticize your leadership in response to hard news. Treat them with dignity anyway. You can’t walk in their shoes, but you can remain empathetic and expressgenuine concern for their welfare. 

2. Time the Announcement Carefully

You should always share bad news with employees who are directly impacted before you announce it to everyone else. However, you should also know who your secondary and tertiary audiences are and be ready to cascade your messages to them quickly.

Bear in mind, anything you say internally has the potential to be shared externally. So don’t begin communicating with employees until you’ve put together a plan for responding to questions and concerns from public stakeholders and the media.

3. Use the Right Channels to Communicate to Each Audience

It’s also important to think about how you will communicate difficult messages. Should you send an email? Schedule a video conference? Hold a town hall meeting? Personally speak to employees in small groups or one-on-one? 

There’s not necessarily a right or wrong answer here. But in general, you should do what feels most authentic to your firm’s culture and you shouldn’t simply take the easy way out. 

Firing 900 employees over Zoom won’t win you any goodwill. Again, keep empathy at the forefront when choosing how you’ll deliver the news. 

4. Be Blunt, But Kind

This might seem like counterintuitive advice. But when it comes to delivering hard truths, it’s ok to be blunt as long as the message is anchored in genuine kindness. 

In fact, it’s often better to deliver the truth in a straightforward manner rather than try to soften bad news or minimize its impact. After all, economic uncertainty causes nearly everyone to feel higher levels of fear and paranoia. So sometimes the kindest thing you can do is remove all uncertainty from the equation. 

Don’t beat around the bush or use vague, confusing language. Instead, be transparent and direct. Let your employees know exactly what’s happening and why. Share the business case for the decisions you’re making. And give as many details as you can about what will happen next. 

5. Reassure Your Stakeholders That the Future is Bright

Finally, provide your team with a clear idea of where your firm is headed so you can rally them around a shared set of goals and objectives. This is an opportunity to sharpen your value proposition, streamline operations, and align your people for the path forward.

Your stakeholders need to know that you’re making decisions based on what’s best for the company and, ultimately, what’s best for them, too. To that end, don’t share bad news without also painting a picture of a bright future you can all believe in and work toward.

Communicate Effectively to Guide Your Firm Through Challenging Times

In decades past, CEOs and other executive leaders may have had more freedom to communicate bad news in a top-down, authoritarian way. The rules were different, and previous generations of stakeholders and employees were more willing to accept a “this is the way it is” approach to communication.

Whether you accept it or not, that style simply doesn’t cut it anymore. And if you slip into old-school patterns of communication, you can be sure it will come back to haunt you. 

Leading your firm through choppy waters starts by winning the trust of your people. And that, of course, begins with communicating effectively in good times and in bad. So if you need help evolving your executive communications playbook? Let’s talk.

Close
Close