Communicating in a crisis: What we can learn from foodpanda, Lazada and Airbnb

IN THE dynamic landscape of today’s digital world, information travels at the speed of a digital blink and reputations can be made or shattered with unprecedented swiftness. This underscores the vital role of communications, particularly in the realm of strategic crisis management.

These times of crisis reveal the mettle of an organisation, testing its resilience while also leaving a lasting imprint on the vast digital archives of the Web.

Waiting for a crisis to strike before taking action, however, is akin to standing in the rain without an umbrella, and then frantically searching for shelter.

The consequences of being unprepared and reactive, rather than proactive, can be severe and far-reaching in the business world.

Organisations that neglect proactive crisis planning may find themselves navigating stormy situations with insufficient strategies in place, lost and unsure of what they should do next.

A recent example of the repercussions of being unprepared comes from foodpanda, which recently appointed a new chief executive.

Around that time, screenshots surfaced of conversations between the company’s outgoing CEO, Jakob Angele, and a woman he had dated.

The screenshots suggested a confidentiality breach and portrayed Angele in an unfavourable personal light, raising concerns about his judgment.

In this incident, industry experts highlighted the potential erosion of trust among stakeholders, including customers, investors and partners.

In the unpredictable landscape of business, being caught off guard can result in reputational damage, financial setbacks and a prolonged recovery process.

Proactive crisis planning, on the other hand, is like fortifying a ship before entering turbulent waters – it not only helps a company weather the storm, but positions it to navigate challenges with resilience and strategic clarity.

Personally, I prefer a two-pronged approach to fortification against crises. First, organisations should prioritise proactive measures.

This should begin with robust media training for key executives, particularly CEOs, to ensure they are adept at handling interviews and public statements, with a specific focus on crisis scenarios.

Second, organisations need a comprehensive crisis communications plan that includes stakeholders across the company, including legal and business unit heads. There must be regular drills that equip teams to manage potential risks such as leaks and sensitive disclosures ahead of time.

No response is also a response

Actions have consistently carried more weight than mere words, and this principle holds true in the realm of crisis communications.

The absence of a response is, in itself, a communicative act with significant implications.

When organisations remain silent in the face of adversity, a void often emerges that is swiftly filled with speculation, rumours and misinformation.

In the digital age, when information spreads rapidly, the void left by a lack of official communication can exacerbate a crisis, fostering a climate of uncertainty and mistrust.

Stakeholders – including employees, investors and the public – are left to interpret the silence, often assuming the worst. This can result in heightened anxiety, damaged relationships and a compromised reputation.

Take, for example, Lazada’s recent handling of its layoffs. The company faced the need to communicate significant workforce reductions.

Its initial choice of silence, both internally and externally, coupled with choices of business jargon, caused disdain. The silence also amplified the negative repercussions, eroding employee morale and public trust.

Lazada’s case underscores the importance of swift, transparent and open communication during crises to mitigate harm, maintain trust and uphold an organisation’s credibility.

Effective management of communication during layoffs is indispensable for companies seeking to minimise negative impact. Early and transparent communication is essential, providing a clear rationale for the decision and outlining the broader context.

Internally, maintaining open channels for employee questions and concerns is crucial. For organisations with empathetic leadership, honesty and support services for affected employees should be a priority.

Post-layoff communication is equally important – assuaging stakeholders on the company’s decision and subsequent progress, and highlighting positive changes.

Turning negative publicity to your advantage

For a notable success in crisis communications, we can take a leaf out of Airbnb CEO Brian Chesky’s book. He demonstrated strong empathy and accountability during a tough period of staff layoffs.

Taking personal responsibility for aiding laid-off employees, Chesky exemplified a commitment to transparency by openly acknowledging the challenges faced by the company.

He also demonstrated empathy by actively engaging with affected staff. His personal involvement transformed what could have been a negative publicity storm into a positive narrative, showcasing the company’s dedication to its workforce even in difficult times.

In all crises, organisations must respond swiftly and transparently. They must address issues head-on, and take responsibility for any wrongdoing.

Demonstrating empathy towards affected parties, humanising the brand and showcasing positive actions are good steps to reshaping public perception.

Of course, it is also important to understand and track what people think and feel about the company’s decisions and actions.

This involves continual monitoring of public sentiment and exercising agility in adjusting communication strategies.

Charting the course ahead

Every good communication plan starts with recognising a need for proactive and transparent engagement. This ensures that the leadership takes a hands-on approach during tumultuous times.

This is a call to action for all organisations to recognise the pivotal role of communication in crisis management, and to invest in strategies that not only address challenges but also cultivate trust, understanding and resilience among stakeholders and for the future.

Deborah Giam is managing director of Penta Group