Bloomberg Businessweek offers Euro crisis relief

Bloomberg Businessweek magazine has offered some light relief from the Euro crisis. We feel a brick wall may also be appropriate!

Goldman Sachs ridiculed across social channels

This was a bad publicity week for Goldman Sachs following the publishing of a letter from a disgruntled employee.   

The content of this letter hit the news worldwide and soon became a social media talking point, at which point it took on a life of its own. From comic blog entries like this one called 'Oscar the Grouch Resigns' (from Sesame Street fame) to a plethora of entries across Pinterest.  

This is a classic case of how just one employee can quickly damage the reputation of a business and how social media spreads the message at an exponential rate. Whether the employee was right or wrong is not for us to judge, however it does demonstrate why businesses should have crisis planning in place to quickly limit the potential damage of such an action. Social Media adds to the potential risk and businesses should be actively monitoring channels to ensure that they are aware of what is being said about them by customers, employees and the general public. A forewarned business is a prepared business.  

It is frightening just how quickly the reputation of a business can be damaged through the posting of video content on social channels - remember the safety demonstration that turned out not to be so safe!



It is difficult to tell just how much this will damage the reputation of Goldman Sachs however in the short term it wiped $2bn off their market value - not a good day at the bank!

Getting ready for a crisis

We recently ran a crisis preparedness workshop for one of our clients which sparked lots of interesting debate.

One outcome was the development of a ‘crisis manual’, one that is comprehensive but also succinct, avoiding the danger of becoming so ‘big’ that no one will read it when it should be a useful, easy reference tool.   

For multi-site locations, the development of a common core element of company best practice can easily be supplemented with pertinent local information, added into each site-specific manual. Any organisation operating internationally should also ensure that appropriate ‘early warning systems’ and international information networks are in place that operate across borders.  

Another key outcome was the importance of your organisation being the principal trusted source of information for your own affairs, i.e. ensuring ‘ownership’ of your stakeholders through provision of information. This is increasingly a challenge in today’s networked world, with social media and ‘citizen journalists’, meaning there is little time before an issue becomes live and spreads across networks, potentially out of control.  

Lots to consider, and thanks to Magnus Carter of Mentor Ltd for all his input into the day too.