Leading through a crisis with clarity

In the light of the recent cyber-attacks on UK retailers, Hayley Goff at PR firm Whiteoaks International describes how businesses should react both internally and externally in times of crisis.

 

Public scrutiny extends to every facet of corporate conduct, from social-media activity to employee welfare. It only intensifies when disruption strikes - a reality Marks & Spencer (M&S) has faced in recent weeks as it battles the ongoing impact of the cyber-attack it experienced in April this year. Early assessments indicate the retailer had no clear continuity plan in place, leaving some teams to work through the night and sleep in the office amid ongoing uncertainty and confusion.

 

Yet, in contrast to this, the retailer’s external communications in the initial period following the attack set a positive model around how to handle public pressure.

 

 

Getting a positive message out there

When a crisis happens businesses must respond quickly, transparently and effectively to maintain trust and avoid reputational damage.

 

Unclear or delayed communication invites speculation and can quickly erode confidence across every stakeholder group. Customers, left waiting for facts, often assume the most damaging outcome and may migrate to competitors to avoid any potential exposure to risk.

 

To further compound matters, a lack of information internally can fuel rumours and anxiety, while investors, facing the same silence, may struggle to assess potential financial exposure. Equally, journalists could turn to leaked details and outside commentary in the absence of clear facts, allowing a narrative to form that the organisation no longer controls.

 

While a minority of customers inevitably voice frustration on social media during crises, most accept occasional disruption, provided the company is honest, visible and proactive. M&S’ chief executive, Stuart Machin, met those expectations, issuing a same-day statement once the incident was announced, apologising to customers and detailing the services affected, such as online ordering, click-and-collect and contactless payments.

 

Commentators have cited the speed and consistency of that response as evidence of a well-rehearsed crisis-communications playbook.

 

The key takeaway from M&S’ effective early crisis response is that leadership teams who haven’t rehearsed are unlikely to match the promptness and organised coordination which was achieved from the outset.

 

Organisations need to issue clear and coherent messaging to all stakeholders quickly in the event of a crisis. This requires internal teams to be aligned to avoid conflicting statements reaching customers, partners, suppliers and employees, with tailored messaging for different end audiences depending on how they are potentially affected. Preparing draft statements for the most likely incident types, storing them offline and practising an approval drill reduces a twenty-step sign-off to a two-step confirmation. Speed signals competence, and competence buys time.

 

 

The importance of strong leadership

During a crisis, clear and decisive leadership reassures every audience. Machin has fronted the retailer’s response from the beginning of the crisis, signalling that the company is in control and committed to safeguarding customers and employees alike. His public presence demonstrated accountability, reinforcing the message that senior management was actively driving the recovery. It also sent a positive message to audiences that the head of the organisation is leading a response that serves the best interests of both its staff and customers.

 

Customers look for a visible leader when uncertainty strikes. Seeing the chief executive engage directly with the issue confirms that the organisation is focused on finding a resolution and deploying its best resources to achieve it. As the incident continues, stakeholders will expect Machin to maintain that visibility and provide regular, substantive updates on progress.

 

Strong leadership is equally important inside the business. Employees on the front line need timely guidance and reassurance so they can handle enquiries confidently and remain aligned with the official narrative. Consistent communication from the top strengthens internal cohesion, enabling staff to support customers effectively while the wider remediation effort proceeds.

 

 

Resilience under pressure

Not all of the action (or inaction) taken by M&S has been met with broad approval, however. Even weeks later, the full scope of the M&S cyber-attack is still under investigation, and several reports have questioned whether it had a robust contingency plan in place. Equally, the retailer could be criticised for the roughly three-and-a-half-week delay that occurred between the incident occurring and informing customers that some of their data had been breached. Furthermore, its online services are expected to continue to be disrupted until July.

 

That said, none of this should detract from the praise M&S deserves for its proactive external communications in the immediate aftermath of the attack and for steadying customer expectations and limiting speculative headlines in that crucial initial phase of the crisis.

 

The broader lesson is straightforward: disruptive events are inevitable, but lasting reputational damage is not. No firm can dodge every attack or controversy but it can choose how it reacts: silence can scar a reputation, while a swift, candid reply can highlight resilience.

 

Companies that keep an up-to-date crisis communications playbook and execute it quickly suppress rumours before they spread, protecting trust among customers, employees and investors.

 

When mishandled, a crisis can leave a permanent scar. But when addressed with transparency and candour, the same incident can showcase organisational resilience. M&S’ external communications was well handled in the immediate period following the attack. Since then, though, a more nuanced picture has emerged. And whether M&S ultimately maintains the early advantage it gained in communications terms at least, will become clear only once the investigation ends and stakeholders judge the final outcome.

 

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Hayley Goff is CEO of Whiteoaks International 

 

Main image courtesy of iStockPhoto.com and designer491