Leading Through Crisis: Practical Insights for Business Recovery

According to American crisis communication specialists, CEOs fear uncertainty above all else. It’s a debatable statement. On the one hand, uncertainty is unsettling not only (and not even primarily!) for CEOs but for people in general, regardless of their position. On the other hand, in today’s reality, uncertainty is increasingly seen as an inherent part of the business environment—and not just by CEOs.

Yet uncertainty does terrify CEOs, primarily due to the risks of crises, unmet forecasts, and the inability to secure funding. Operations falter, customers leave, sales decline, and cash flow dwindles. In such circumstances, crisis communication has become a standard tool for business recovery professionals—not only for the largest companies. When financial crises are at least partly driven by internal company issues, recovery often depends not only on financial and legal steps but also on communication with key audiences: investors, suppliers, customers, employees, and the media.

The devil, as always, is in the details. Here’s what seasoned crisis management professionals suggest for navigating corporate financial crises:

Build a Crisis Team

Warning signs usually appear long before a full-scale crisis unfolds. These may include worsening terms in new contracts with suppliers or customers, delays in contract signings, or an increase in product returns or service complaints. Identify external sources of support—legal advisors, financial consultants, and crisis communication specialists—before the crisis fully develops. Early preparation allows you to select the right partners and establish a mutual understanding before a crisis forces rushed decisions.

Define Your Goal

Once your crisis team is assembled, its first task should be to establish clear objectives for crisis communication. A well-defined goal is critical for aligning the actions of all team members during the crisis.

Conduct a Crisis Audit

While some financial crises can be foreseen, others are beyond a company’s control. Analyze the potential consequences of failing to achieve key tactical and strategic objectives, such as securing a new strategic partner, entering a new market, or attracting investors. This audit helps prioritize efforts, focus corporate communications, and define the target audience.

Develop a Crisis Communication Plan

Crisis managers are accustomed to dealing with uncertainty, but many corporate leaders are not. Anxiety can be mitigated by creating a clear plan that outlines the stages of the crisis and the company’s response. This plan should include key messages and strategies for each target audience, as well as specific actions to take at every stage of the crisis.

Tell the Truth

When a financial crisis strikes, avoid hiding behind legal jargon, statistics, or blame-shifting. Identify a spokesperson—usually the CEO—to communicate openly with stakeholders, explain the problem, and outline the leadership’s plans. Be realistic about timelines and commitments. It’s better to promise quarterly updates and deliver on them than to set overly ambitious goals and fail to meet them.

KISS: Keep It Short and Simple

Your internal and external communications should be straightforward, consistent, and regular. Keep your audience informed by explaining what you plan to do, doing it, and then reporting on the outcome. Clear explanations are critical at this stage, requiring close collaboration between legal and corporate communications teams. Transparency is key—avoid downplaying the problem.

Take Immediate Action and Communicate Regularly

Let your target audiences know that you’re taking swift measures to address the crisis. Share concrete examples, hold meetings, and actively engage with stakeholders to build trust and support. Positive media coverage can often arise from proactive communication and may add a constructive tone to the narrative.

Monitor Feedback and Adapt

Flexibility is essential in any crisis situation. Evaluate how your communication efforts are received. Are your messages being understood? Are they reflected in media coverage? Are your audiences responding? If your initial plan isn’t working, revise it promptly.

Keep Communication Channels Open

While strict control is necessary during a crisis, it shouldn’t stifle alternative perspectives. Employees outside the leadership team can often offer valuable insights. Encourage bottom-up suggestions to foster engagement and uncover creative solutions, but balance this with the need for efficient decision-making. Open communication channels help maintain a clear view of potential solutions.

Combine Short-Term Crisis Plans with Long-Term Communication Strategies

Nothing builds trust and engagement like consistent information and transparency. The better your target audiences know your company, the more likely they are to support you. Informing audiences today creates interest in your company’s products and services tomorrow, fostering growth and development. A well-executed strategic communication plan can become a powerful tool for corporate recovery.

Prepare for Crises in Advance

Crises are inevitable, so it’s essential to anticipate potential problems and factor them into forecasts. Crisis communication is a vital tool for optimizing the recovery process and supporting the work of crisis managers. With foresight and effective communication, companies can navigate crises and emerge stronger.