Articles by Levick Experts
The CEO quits: Strategies to reassure the team
The founder of your company is retiring. Your CFO pens his two weeks' notice in a terse letter reiterating his concerns about the company's fiscal management. There are rumors within the company that the vice president of your international sales division may be leaving to run sales for a competitor's business.
No matter what the particulars of the situation, a key employee leaving the company can make employees, customers and investors extremely uneasy. When that sense of unease arises, your stakeholders will turn to you for reassurance. The way that you handle this communication -- both publicly and privately -- will be key in determining whether the situation is a minor bump that goes by with little notice or a major issue that may even gain media attention and potentially affect your stock price.
When determining how to communicate an important employee's departure to your customers, employees and shareholders, there are a few things you will want to keep in mind so the transition goes as smoothly as possible:
Tell your employees first. Consider how your employees will feel and react to the situation. If you tell them after the news is already out, you're at risk of having to explain (or even deny) what they heard at the water cooler or read on an industry blog. The message that you convey to them -- one that shows cordiality toward the departing employee and resolutely affirms that business will go on as usual -- will have a powerful impact on how they will then communicate with customers and clients.
Understand that the public may see it differently. Whether it's a board member, a senior executive or even someone lower on the chain of command, the departure may be perceived as putting you at a competitive disadvantage, especially if the person heads to another firm. The best defense is a clear plan to maintain continuity while moving forward. Announce the departed person's successor or indicate that you are in the process of deciding on a successor. Assure the public that the departure is one of many commonplace situations all businesses have to face.
Keep things positive. Except in extreme cases (like the litigation discussed below), you should always take the high road. Regardless of the reason for their departure, publicly wish departed employees well and thank them for their service. And that's it. It is neither the time nor the place to air grievances you may have had with the quality or quantity of the employee's work. Doing so reflects more poorly on your company than it ever will on the person who left.
Don't over-explain. People may be curious, but it is up to the departing employee to answer questions like, "Why did you leave?" Only the employee really knows for sure, anyway, no matter what the individual might have told you. Keep your comments cordial, factual and quick -- and then be quiet.
Deliver the news to important clients in person. In many industries, particularly those that are service-related (law firms, ad agencies, accounting firms, etc.), it's realistic to believe that some clients will follow the departing employees to their new firm.
Reach out to the clients that the employee managed, contacting them individually and setting up a time to meet. Reiterate how much you value their business and let them know the specific steps you are taking to ensure that there is no disruption in the quality or level of service you'll still provide. Don't give in to the temptation to just call or send an e-mail. There's a much better chance of keeping the account if you invest the face time.
If the situation gets ugly...
So far we've been talking about an employee who departs amicably. But what if the employee is leaving because of a situation that allegedly occurred, like corporate misconduct, sexual harassment or discrimination? What if the person is talking -- loud and often -- to the media or is in the process of filing (or has already filed) a lawsuit against your company?
In these circumstances, the rules shift. Obviously, you'll need to be a lot less friendly (if at all), but you will also want to avoid being pulled into a public debate over the issue. Let's say a reporter calls and asks, "How do you feel about John Doe's allegations of fiscal mishandling occurring at your business?" Here are a few things to keep in mind:
Less is more. Generally speaking, the more litigation there is, the less you say about it. Let the media and other stakeholders know that the suit is without merit and you're confident your company will be completely vindicated when all the facts come to light.
Right now, however, the goal is not to prove you're right: That will only be proved if and when a court rules in your favor. Your immediate goal is to be transparent about the actions your company is taking with regard to any investigation and to remain resolute in your belief that your company will emerge victorious.
Richard Levick is president and CEO of Levick Strategic Communications, which protects brands and reputations during the highest-stakes global crises and litigation. Web site: http://www.levick.com.