Investor Relations Crisis Although each is different, in most cases tactics used to calm the market, to reassure creditors, placate the media, and parry attacks are relatively straightforward. They can be summarized in the following 10 basic rules:
1. understand the facts. Knowledge is power, especially when dealing with a crisis. Understand the facts and the situation - not just the proverbial who, what, where, when and why the schools of communication and journalism are taught to fix but also how and, more importantly, "what are our responsibilities in that that has happened, we could avoid it? What is the meaning of this? The perception that it was outside, it reflects the facts? If not why? It 'hard to explain the facts if he does not know until the end. The worst thing you can do is provide an explanation that is wrong. Even if the 'mistake was honest, credibility will suffer, and a bad situation will become a very bad situation.
2. Understand your audience. To produce your message with the property, or to address the relevant points of a situation, you must understand the interests of the diverse audience of your company. Analysts do not always have the same interests of investors. Journalists may have a totally different focus, as you probably, employees, customers and sales network. Understand complex views of the audience will help you better communicate your message.
3. Communicate with key stakeholders of all your audiences. This rule speaks for itself. If an audience is important and has an interest in your company, talk to it. Nothing feeds the fear, or strengthens the rumors, such as uncertainty, and nothing reinforces the anxiety that something is worse than it seems that silence.
4. Be proactive. It 's almost always best to take action since the beginning of a problem to keep away until it reaches extreme proportions. The bad news tends to feed on their own, like a snowball then turns into an avalanche. Identify the problem, develop a solution, and communicate them both to your diverse audience. If you do not have an immediate solution, at least make sure that the world may know that you've identified the problem and are working to resolve it. In the global world we live in that media coverage 24 / 7 and in which investors chatting online, the silence is interpreted as a secret, and secret means that you have something to hide.
5. to prepare for any eventuality. In planning to work on a situation that caused the break-out, the question arises what are the effects of this new event that should eventually make known to the company's various audiences. What are the worst scenarios, identify and prepare for them.
6. respond appropriately. Although it is important not to ignore incipient never a problem, a super reaction to any situation can be just as bad or very bad that a lack of reaction. It can often cause a crisis which did not exist before. In assessing the problem beware of various "what .... if "and react accordingly. Do risk-benefit analysis for each point of your reaction to the topic. Sometimes, less is too much and too much is not enough ..
7. Speaking with one voice. Nothing is more important in a crisis, or business in general, that the credibility. It depends on either the honesty and accuracy, which determines the consistency. It 'difficult if not impossible, to maintain credibility if several people say different things in your society. If you have separated the functions of PR and IR, it is very likely that the two teams are both on the same page and each of them with your management team.
8. Focus is on the solution of the problem. Companies often issue press releases announcing the large loss in which they are incurred in the last quarter without giving any indication of what they are doing to bring the loss into a profit. Many times, companies talk of withdrawal of a product, but do not indicate what they are doing to determine the problem behind it. Identify the solution is equally important for investors to identify the problem and may become more important.
9. give directions for the future and not only on the past. The Exchange is interested in the past only as an extension of what they believe it may relate to the future. The disclosure of a company should always have a focus on the future. This is always essential, especially at a time of crisis.
10. Be direct. Be direct and clear will make you feel in the best and most reliable. The basic rule is to tell the truth.
The latest indication on the formation of a task force made up of crisis management as well as by top management and the Investor Relator, including the company's key managers and external consultants to communicate with high track record.
These short 10 basic rules to help companies manage a crisis immediately. If your company is perceived by the public and shareholders as open, honest and reliable, it is less likely that his reputation is vulnerable to negative events or rumors. Investors can interpret events and difficult to penalize a companies they know and perceive as reliable. E 'to be built over time, reliability, trust and reputation of the Bourse.
Fersini Mastelloni White, CEO of Polytems Hir
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