Crisis in business is inevitable. At some point, you will face something going wrong.
Professor Scott Galloway outlines 3 principles for managing a crisis:
- The top person responds
- Acknowledge the issue
- Overcorrect
Johnson and Johnson faced a crisis in 1982 when people died from taking cyanide laced Tylenol. Johnson and Johnson’s CEO responded apologizing and they spent $100 million recalling every shelf of every Tylenol bottle. J&J took a slight hit from the news, but recovered to 52 weeks high just two months later.
When a crisis happens, it can be easy to try to avoid accepting the blame. You’ll see a lot of companies blame external factors or point the finger at other things. You have to apologize and take responsibility or you risk losing trust.
These principles can also be applied to your personal brand. If a situation occurs where you are at fault, acknowledge that you messed up and over correct. Its important to be visible in how you’re handling the situation and what progress you’re making.