Seizing Opportunity From Disaster
April 10, 2009 | Written by Kathy Bloomgarden
“Never waste a serious crisis,” says Rahm Emanuel, President Obama’s chief of staff. He argues that the United States should take advantage of the urgent need to take bold action in addressing the country’s current financial situation by once and for all setting the country on the path toward energy independence, affordable healthcare, regulatory reform, and a fundamental overhaul of our education system. He makes the compelling argument that in the current environment, our long term solutions have become our immediate goals. Case in point: in 1973-74 America missed the opportunity to confront the energy crisis by continuing an energy policy based almost solely on cheap oil.
At this year’s World Economic Forum in Davos, Switzerland, Klaus Schwab, the WEF’s founder and chairman, had a similar message. “We are experiencing the birth of a new era, a wake-up call to overhaul our institutions, our systems and, above all, our thinking and our actions,” he said in his opening remarks. But we all know that change sparks anxiety. And transformational actions require broad and sustained communications.
In the current economic environment, corporate America can take steps to seize opportunity from disaster by:
- Focusing on the basics
- Breaking with the past
- Moving quickly
- Changing the mind-set
- Communicating, even the uncertainty
Public relations is a critical tool to enable this change process, to gain alignment internally, and to explain to a company’s multiple shareholders the new strategy and path forward. We’re seeing some companies implement strategies that, in Emanuel’s words, “could not be done before.” These times require dramatic action. AMD, the chip manufacturer has spun-off its manufacturing operations to focus on high-end chip design. It is an innovative model, yet one that has met resistance. Convincing communications is key to building support for what is a breakaway approach. Ford has promised a fully-electric vehicle by 2011 that will get up to 100 miles on a single charge. This is fundamental to Ford’s long term health but will no doubt generate push-back by some interests. Outreach and communications must underpin these changes.
Corporate leaders need to be thinking of how to move ahead decisively in a world that looks radically different than it did just a few months ago. What can they be doing to grasp opportunities and to position themselves so that they will be better off than they were before the crisis began, while at the same time keeping their core business intact? In some cases, like the automobile industry, it means taking the bold steps it has long avoided, like getting their manufacturing costs in line with their competitors and making a commitment to more fuel efficient vehicles that don’t depend on the internal combustion engine invented more than 100 years ago. In others, like AMD, it means re-focusing their core business. These are all attempts to take an extremely difficult situation and turn it to long term advantage.
Every attempt at transformational change will not be successful, of course. Yet despite the disheartening, relentlessly bad economic news, it is important to remember that most American workers will not be losing their jobs; most companies will not go out of business. For the vast majority of these businesses, it will be vital to use the economic downturn to revaluate their priorities, focus on what will calm the waters now, and take smart, strategic decisions that can (via communications) build confidence and trust, leading to future growth. Emerging from the recession will depend on sound strategic steps and the initial revolutionary sparks that must be nurtured now. That’s what will, in the hopefully not-so-long-term, help drive an emergence from the current recession.




