Whenever a company is in the news because of a crisis there is always an army of armchair experts offering their take on what it’s getting wrong. I’m usually cynical about most of these as the reality is unless you’re inside and know the full story it’s virtually impossible to know how well, or how badly, it’s being handled.
However, I have identified some quick lessons from the NatWest and Coutts’ Farage farrago.
1) Tell the truth
This is where NatWest got into a real mess. Its initial explanation of the reason for closing Nigel Farage’s bank account wasn’t the truth. However, it’s also an example of how ‘tell the truth’ is fine as a principle of crisis communications but can be harder in reality. Issues such as customer confidentiality and legal restrictions come into play. It’s not always legally possible to be as transparent and truthful as you should be.
2) Understand reputational risk
Ironically, the concern about risk to reputation was a factor in triggering the crisis which actually did damage reputation. We don’t yet know all the detail of how decisions were made, but I suspect part of the problem was too much ‘insider’ thinking. To really understand reputational risk an external perspective is needed as people within the organisation can’t help but be influenced by the internal culture, which doesn’t necessarily reflect what’s happening externally.
3) Be careful with off-the record, background briefing and other meaningless phrases
If you’re talking to a journalist, then expect what you say to end up in the public domain and be attributed to you. It is possible to have private, confidential conversations but the parameters need to be agreed clearly in advance. Lots of commonly used phrases such as ‘off the record’ and ‘background briefing’ can mean different things to different people. The nuances of those differences can be career ending, as Alison Rose has discovered. Also a dinner event where people are socialising and enjoying alcohol is unlikely to be the appropriate place for those important conversations.
4) Assume it will become public knowledge
It’s been possible to make Subject Access Requests since 2008, but it’s only in recent years that we’ve seen in a surge in people making use of this right. If you don’t want it to be public, then don’t put it in writing. Even without requests there is always the risk that it will be leaked. It’s also important to take care about what you say in meetings. Today people are concerned about surreptitious recording using mobile phones or AI being used to attend and transcribe meetings. In reality, the danger of surreptitious recording has existed for years. Microcassettes and or minicassettes were invented in the late 60s. I’ve always worked on the assumption that I might be recorded.
5) Is it really a crisis?
For Alison Rose the answer is an emphatic yes. She made a mistake. She has lost her job and misled people. Depending on what other members of the NatWest board knew and when they knew it, then potentially others might need to go. But what’s the impact on NatWest and Coutts? Is it going to have negative impact on share price? If it does, can it recover from it? Is either bank going to lose customers? Is it going to making it harder to recruit or retain staff? NatWest is facing a barrage of negative media coverage and social media comments, but it’s important to remember the adage that:
“Sticks and stones can break my bones, but calling names can’t hurt me.”
It’s important that whatever NatWest does next. It needs to take decisive action to try and stop the negative impact becoming even worse. It needs to focus on business priorities and fixing what went wrong.
This is by no means a definitive list, but just some immediate thoughts.
If you want to know more about crisis communications (or need help to make sure you’re prepared!) then visit my Stuart Bruce Assoicates website or read these two recent blog posts:
My PRCA webinar on crisis communications for sport.
Crisis communications lessons from P&O Ferries (which led to a BBC News interview).
