A lesson in crisis management: Crowdstrike’s delayed reaction
If there's one thing the industry can learn from Crowdstrike's handling of the recent global outage, it's how not to handle such a large crisis. Rodrigo Pintos-Lopez, partner at Acumen Advisory, argues why the debacle shows the need for an integrated approach to crisis management.
The handling of the recent global outage caused by Crowdstrike showed the importance of an integrated approach to issues and crisis management.
The initial post on social media by Crowdstrike CEO, George Kurtz, failed to apologise for the massive disruption caused by the outage, upsetting millions of people, including customers around the world.
Indeed, an apology only came several hours later, by which time the crisis had fully engulfed businesses and consumers globally, including here in Australia.
Crowdstrike’s delayed apology almost certainly arose from the ever-present tension in a crisis – the tussle between making an apology and protecting your legal position.
This underlines the need for legal and communications operatives to understand each other before the crisis hits. With such understanding, there is always a way to say sorry without aggravating legal liability.
Crowdstrike got it right in the end with an apology, but it missed the mark to set the tone from the start and suffered reputational damage. The cyber world shows how speed is critical in responding to a crisis.
In today’s complex and fast-paced business environment, organizations are increasingly vulnerable to issues and crises that can significantly impact their reputation and operations.
To effectively navigate these challenges, businesses in the US are turning to integrated issues and crisis management approach. But what does `integrated’ really mean, and why is it so crucial to have an experienced lawyer working alongside communications experts, especially in cases where there are significant legal dimensions to a crisis?
An integrated issues and crisis approach combines diverse expertise from different disciplines to provide a holistic approach to managing and resolving crises but also ensuring reputation is protected.
This means that instead of working in silos, professionals from legal, communications, public relations, and strategic consulting collaborate seamlessly to address all aspects of a crisis.
This comprehensive approach ensures that every angle of a potential issue is considered and addressed, leading to more effective and efficient resolutions.
Here’s why it is indispensable:
1. Legal Insight and Strategy
Crises often come with legal implications that can profoundly affect a company’s operations and reputation. An experienced lawyer can provide critical insights into the legal ramifications of a situation, helping to shape the overall strategy in a way that minimizes legal risks. They can foresee potential legal challenges and proactively address them before they escalate.
2. Regulatory Compliance
In many industries, crises can trigger regulatory scrutiny and investigations. A lawyer’s expertise ensures that all actions taken during a crisis comply with relevant laws and regulations, reducing the risk of penalties and further legal complications.
3. Effective Communications
During a crisis, communication is key. However, what is communicated must be carefully crafted to avoid legal pitfalls. Lawyers can work closely with communications experts to ensure that all public statements are not only clear and effective but also legally sound. This collaboration helps in maintaining transparency while protecting the company’s legal interests.
4. Litigation Preparedness
In cases where litigation is inevitable, having a lawyer on the team ensures that the firm is prepared to handle any legal proceedings. They can gather and preserve evidence, manage legal documentation, and represent the company in court if necessary.
5. Holistic Risk Management
The combination of legal and communications expertise allows for a more comprehensive risk management strategy. Lawyers can identify legal risks while communications experts can gauge public perception and media impact, creating a balanced approach to crisis management.
An integrated issues and crisis strategy offers a multi-faceted approach that is essential in today’s complex business landscape. The collaboration between experienced lawyers and communications experts ensures that both the legal and public relations aspects of a crisis are expertly managed. One can’t be managed without the other.
In crises with significant legal dimensions, this integrated approach is not just beneficial but essential so businesses can confidently navigate crises, protect their reputation, and emerge with their brand and reputation stronger than ever.
Rodrigo Pintos-Lopez is partner at Acumen Advisory.
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