June 2009 Topic of the Month: The Top Ten Lessons of the Recession

• An Open Letter to CEOs
• SUBJECT: THE TOP TEN RECESSION LESSONS

Every crisis has within it the roots of change which, if considered, can lead to more profitable and innovative ways of doing business; and the prevention of other crises.

What will we learn from the Great Recession of 2009? It is not too early to begin to look at the lessons learned, pointing to a braver new world.

The smart, resilient Post-Recession Leaders will recognize the value of:

1. Early Warnings Some crises can be prevented if we pay attention to early warnings. Early warnings from employees, customers and suppliers may come through blogs, face to face meetings or the old-fashioned suggestion box. Whatever the means, an early warning culture could prevent the next crisis.
2. Prudent Spending Whether it is a decision on a salary or bonus paid to an employee or the price for supplies or real estate, or public affairs or crisis counsel, the tough question needs to be asked: Will I receive the value and results I expect?
3. Who’s in Charge? Shareholders will become a stronger voice; and the ultimate voice – the consumer – will be heard
4. Accountability We may well be entering the new era of accountability. Surely the SEC will become a stronger, more responsive and smarter regulatory body for our nation’s financial system. On the corporate level, we may be seeing stronger boards who ask the right questions and hold CEOs accountable, especially for crisis planning
5. The news media will survive and flourish in new ways We are just at the earliest stages of seeing how the social media and the Web play remarkable roles. The winning news media will those which solve the economics and recognize that they are essential in a free society. There will be choices which will continue to provide the traditional paper on the newsstand and driveway and books in the bookstores, alongside the handheld and online media. All have an important place, as does the immediacy of broadcast journalism.
6. Customer service which exceeds expectations will attract new customers and retain and grow existing business. Details and problem solving will count more than ever.
7. Information is power And so is knowledge. How we use information, how we assure transparency and how we connect the dots will make the difference.
8. Leaders will come and go But the best will always ask the right questions, remain nimble, and place the protection of the organization’s reputation at the top of the priority list.
9. Three points should guide the way for crisis preparedness
• Crisis readiness is not a sometimes thing to relegate to a security or facilities officer, though they are important. It should be a primary corporate function, managed by a senior company officer who reports directly to the CEO.
• The best crisis plan is a short one that fits into your pocket or your wallet.
• A firm commitment to several crisis simulations a year will yield the benefits of increased readiness and the bonus of discovering actions to continuously improve readiness or in fact to prevent a crisis.
10. And Never Say Never

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Crisis Communicator is a publication of The Biegel Group, Inc., Washington DC. Len Biegel, President of The Biegel Group, is an internationally recognized crisis management and communications expert. His experiences range from the Tylenol tampering crisis to the events of 9/11 and Katrina. His work spans homeland security, the environment and travel, from outer space (for NASA) to major airlines; to the cruises and maritime industry. He is the author of Never Say Never: The Complete Executive guide to Crisis Management (Brick Tower Press, 2008).

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