When Is the Best Time to Build Stakeholder Relationships? Hint: It’s not in the throes of a crisis
By Laura Phillips, President and Partner, Vehr Communications
We have all gotten those phone calls. You know the ones. The person on the other end of the line needs your help. Something unexpected happened at their business. It has disrupted operations. Employees are upset. The media is calling. Customers and suppliers are reaching out with questions. The caller – your newest client – is reeling. Sound familiar?
Starting with a new client this way is less than ideal. In a perfect world, you’d already know the history, leadership, values and good work of this business. This client would have engaged you before they were front-page news and you’d have built a relationship with the team before they were in crisis mode. If only we lived in a perfect world.
The same can be said when businesses scramble to establish stakeholder communications in the name of damage control. Direct communications with the audiences who matter most to a business are essential, but the business is at a disadvantage if established communications channels and consistent stakeholder engagement is lacking. It rarely goes well when the first outreach involves bad news, an explanation, or an apology.
In both cases, the best time to build and nurture important stakeholder relationships was yesterday.
Turn Attention to Those Who Matter Most
When in crisis, preparing communications and proactively engaging key stakeholders is vital. Employees may be worried about their jobs or their safety in the workplace. Customers may be viewing the issue from its effect on their lives or businesses. Distribution partners may seek insights to help them manage expectations with their audiences. Bankers and investors may be weighing the issue and its effect on the financial future of the company.
Crisis communications rarely employ a one-size-fits-all approach. Communications must address audience-specific needs, concerns and implications. How a business communicates (email, phone call, all-team meeting, social media, etc.) will vary as well. Companies should always strive for direct stakeholder engagement. Issuing a media statement – while it may be a valuable method – shouldn’t be the primary communication to those with whom a company directly engages.
Companies with established communications programs will have a leg up. They likely will have accurate, segmented email databases; active social media pages; and the ability to quickly publish information on their websites. Importantly, if they already have invested in good stakeholder communications, the efficiency of communicating not-so-good news may strengthen their relationships rather than weaken them.
The ‘Bank of Goodwill’ is a Savvy Investment
Getting back to our Shangri-la. The good work of a company – whether it’s philanthropic efforts, community engagement or investments in product development, safety training or other meaningful initiatives that make a difference for its most important stakeholders – deserves to be touted.
Celebrating wins, hard-working teams, innovation, and other positive happenings provides a great foundation around which to build a company’s communications. When faced with a crisis, past deposits in the “Bank of Goodwill” will ensure stakeholders already have been exposed to the good news and work of a company.
Public scrutiny can be brutal, especially if it lingers longer than a news cycle. A business’ relationships with its most important stakeholders carry lasting implications that ultimately affect the bottom line.
So, when is a good time to prioritize stakeholder communications? Ideally, before it’s the type of subject matter that requires legal review.