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Business leaders are not out of the woods yet: has their ‘crisis’ only just begun?




Over the past months, the Australian government has been faced with a number of tough decisions. To its credit, the measures the government has implemented have been successful in getting the COVID-19 pandemic under control, and have even raised hope for a foreseeable future without the virus one day. The measures and restrictions taken by different levels of government have also meant that businesses had their hands tied – difficult economic decisions were made by the government and business leaders have had no choice but to abide by the rules and laws of state and federal authorities. As we enter a new phase in this crisis however, that is all about to change.

With the federal government now planning an exit strategy and beginning to work in tandem with state premiers to ease lockdown restrictions, businesses will be left with important decisions regarding how they choose to operate, and are likely to face greater accountability for their choices. Business leaders will need to walk a fine line of balancing the longer-term interests of their companies, all while managing and mitigating health risks for their customers, workers and their families and friends.

Why we need to throw out the rule book

There is no set playbook for such an unprecedented crisis, as the normal rules simply don’t apply. The recent Australian bushfire crisis is a great example of how viewing things from a single lens can completely alter the way people think and react. Recent government measures have received broad support from the public and the actions taken were perceived as decisive and strong, and most importantly they have been effective. At times, the government’s response came across as empathetic, repairing Scott Morrison’s reputation in the wake of the criticisms surrounding his bushfires response. Meanwhile, around only half of people have trusted their employer or business leaders to provide advice during this crisis.

Now more than ever, businesses are under scrutiny as consumers crave authenticity, relatability and empathy from brands. Internal and external employer branding are also increasingly important. If your brand chooses to shut down communications during this time, then that failure to show up and support your customers, employees and wider community will not be easily forgotten, let alone forgiven.

Business leaders must now keep a close eye on public sentiment before they make important decisions about ending work from home arrangements, reopening storefronts, and getting back to ‘business as usual’. Indeed, businesses are knee-deep in the middle of a global crisis but this does not mean they should immediately turn to the crisis communications rule book. Instead, what they need is to better connect and engage with all of their stakeholders on a case by case basis – not just their customers – in order to better manage and effectively roll out their return-to-BAU strategies.

Business leaders in the hot seat

As the government is starting to carve a path out of lockdown, it is vital for business leaders to closely monitor how the public is reacting to new proposed measures, areas where the government is performing well in its communications, and ultimately, areas where it is failing. Missteps so far have tended to be around the clarity of government communications. The Federal Government took a more active stance early on with lockdown laws, but National Cabinet meetings and Federal directions have often conflicted with State advice. Indeed, state by state differences have created confusion about what people can and can’t do during lockdown, even before the Federal Government communicated its own messaging. The reopening of schools is a specific case in point with social media conversations dominated by people’s anxiety and confusion over the mixed messages from the government. Those that have been asked to take the first steps out of isolation – teachers and school staff – had strong reactions to putting their health and safety at risk first while other community workers have largely been spared.

Evolving high-stakes situations do not comport with our usual day to day decision-making, as threats are amplified and brought quickly into open view. While a normal crisis might allow for some rational discussion about the need to turn back the clock on lockdown initiatives to save jobs or even entire companies in economic distress, business leaders cannot expect their employees or customers to always respond positively to cold rationality. Business communications must be clear, and business leaders not only need to put measures in place to minimise risks, but also be seen to be doing so. The public needs to feel that brands are listening to their needs and that business leaders are responding in an authentic, helpful and selfless manner.

While the public has so far been turning to the government for protection, as the lockdown laws start to ease, business leaders will now be judged on the measures they implement to protect the health of their employees, customers and their family and friends. Failure to do so is likely to end up damaging their brand and reputation in the longer term, as uncertainty and low workplace morale cause chaos in Australian businesses. While business leaders are navigating this crisis in real-time, there is also a need for longer term communications plans to be put in place, because customers will be looking at brands as agents of empathy… long after the dust settles around COVID-19.
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