So I was fascinated to read its 2011 Reputation Review produced in partnership with AON’s risk management practice. I was especially drawn to a section which focused on ethics violations in the healthcare sector, and the impact of crisis communication on value recovery or loss.
After analysing over fifty cases across a range of companies, Oxford Metrica was clear that the quality of communication had a direct effect on the financial impact to the business. In particular, those that retained or grew their value following the incident:
- Disclosed promptly
- Demonstrated candour and transparency in their disclosure
- Took responsibility for their actions or those of their agents
- Demonstrated credible follow up behaviours
- Either delayed communication responses or failed to communicate at all
- Issued opaque or partial responses
- Failed to take responsibility or express contrition
- Attempted to shift blame
But if research doesn’t convince you, what about the experiences of those who have grappled with crises at the sharp end? Research by IR (Investor Relations) Magazine asked managers who had endured a crisis for their main post-incident learnings.
The top four were almost a mirror image of Oxford Metrica’s findings:
- Be communicative
- Be fast
- Be transparent
- Be honest
Jonathan Hemus