Crisis management – Corporate Competition: Extreme Strategies For Extreme Circumstances
When dealing with a crisis management issue one needs to approach with caution and ‘think’. Take your time and act, don’t react and know the level of measures you are prepared to take in advance. Any company under solid management will have counter measure templates in place, customized by corporate strategies consultants in advance to apply to the situation. You’ll typically have three levels: modest, moderate and extreme.
For the sake of time we are going to focus on the most drastic solution ‘extreme’. This is reserved for blatant white collar crime, security breach that can devastate the company economically, proprietary technology smash and grab theft or non-recuperating attacks on C level character that will hinder the short term and long term stock price and rebound if your company is public.
I see these situations a lot, particularly in the biotech, software and technology genres of public or soon to be public entities and the aftermath is often devastating to the point of no repair so the company feels it must respond to keep this dilemma from devaluating the other products and services and relationships that have not, as of yet been damaged.
The crisis management process will typically go like this. I arrive at the company headquarters with my team and the receptionist knows who we are, why we’re there and without a word from us will usher us into the conference room. The CFO has his head in his hands, the CEO is slumped over in his chair like a ragdoll, the COO is on his cell phone talking to their patent attorney and the corporate controller is talking to the in-house legal counsel in whispers. The tension is thick and nauseating.
We take our seats, I’ll move the CEO from the head of the table to the side and I take his position. This is not a power play, instead I am willingly taking on the burden of managing the situation and demonstrating this with my physical position and the room will begin to lighten up just a bit. My opening speech to get everyone in the proper mindset, my questions and statements are typically the same if the economic devastation is of such magnitude that we need a closed room strategies meeting. “OK, we have a problem and we’re going to deal with it and what’s done is done.” I’ll put my cell phone on the table, “let’s look at this crisis from every angle as if you would with this phone. Look at it from the side, above, beneath and every angle you can possibly imagine. What we are doing with this exercise is to first find out how the company left itself open to this situation and who is responsible for not catching it and you’ll find that this person was either in on it or they are not qualified for the position that they have.” That person is escorted out of the building and their employment is terminated.
We will then put a process in place to patch up that security risk to keep from further damage and we move on with the meeting. Next, we identify the individual or competitor that has initiated this calamity and we put a plan together. After we put a legal action together we need to take the legitimacy and credibility away from this party and my approach to this always shocks the hell out of the client.
I’ll turn to the CEO and ask him if he supports the death penalty for murderers. Every single time they look at me as if I just hooked a hose to the sewage pipe and was about to spray them down with it. “What in god’s name are you talking about?” there response is always the same so I explain. “If a man in a ski mask broke into your house and shot your wife, what course of action would you want the prosecuting attorney to take in the matter”. Again, the response is always the same, “This isn’t murder you nut, it’s a white collar crime”. After they say this, mission accomplished, I succeeded in putting things into perspective and the group begins to think more clearly.
The goal then becomes making the reputation and legitimacy of this criminal a distant memory to the public. I’m the kind of guy that doesn’t support the death penalty, I’m more deviant and would want a murder to suffer and wish he was dead but has no physical means to do so in a solitary confinement cell in prison. The strategy then moves towards reasonable retaliation and a plan begins to take shape.
Harboring a criminal will put the harboring associates in legal jeopardy so we will start there. Put out a statement (of course with the blessing and audit of legal counsel) to known affiliates of this criminal, their name being associated with this type of event will take away the ‘safe zone’ of the felon and they will begin to disassociate themselves with him/her which will eliminate their ability to actually use the technology or formula at the center of the theft.
Next, take into consideration the fringe elements such as startups looking for an edge, companies in developing nations etc., no need to directly communicate with them but keep an eye on them and do your research on who their corporate alliances are and who distributes for them in case this technology should find it’s way to them. Circle your wagons and tighten your grip and by the end you’ll have a criminal that has nowhere to go, no money or prospects or contacts willing to be associated with them.
Once this is accomplished you bring in a legal strategy to crush him. Annihilation, economically speaking, is a must. They cannot have the means to hire a top notch attorney to let them get away with this crime (case study note: when the FBI is taking down a mobster, the first groups they contact are the post office for mail fraud and the IRS to freeze their assets during the investigation and court battle) if the government has set this precedence your strategy should be similar but adjusted in obvious ways. Use a solid strategy, don’t retaliate in a way that is in the gray or even remotely illegal. Don’t break the law for that ephemeral sense of satisfaction because that contentment is rapidly fleeting and you’ll find that you’ve taken on unnecessary battles and the real criminal will get away with the crime and your proprietary application.
Always have countermeasures in place before you need them. Have a crisis management team on retainer and ready to rock and your response to white collar crime must be swift, precise and the target must feel the obligatory squeeze and emotional suffocation rivaled only by the devastation of being alone, broke and without defense before you initiate the legal process.
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