Uber CEO Travis Kalanick’s announcement that he will take a leave of absence comes as no surprise given Uber has found itself as the subject of many unsavory headlines and critical social media trends in recent months. The company’s trials and tribulations have played out in high-profile and viral media, and many pundits have declared the company has severe public relations problems. While it’s clear Uber has more than its fair share of problems, they are not, first and foremost, public relations problems. Uber’s challenges, including the sources of many of the company’s scandals, are ultimately operational.
Many corporations that seek crisis management or reputational help know they have big problems but true operational challenges are too often misdiagnosed as just PR headaches – generally by PR people.
Eliminating the headlines and getting out of the news is a reasonable desire for any corporate executive but it shouldn’t be the ultimate goal. To truly manage a crisis, the ultimate goal should be to get to the root of what got you into the crisis in the first place.
Not all catalysts to corporate crises are created equal. An oil spill requires a very different set of operational changes than increasing diversity in a company’s hiring practices. Crises come in all shapes and sizes – regulatory or legislative battles that can impact a company’s ability to do business, an investigative reporter who is obsessed with an organization or an executive, a “social activist” who is being paid by the other side, a product recall – but whatever the challenge, the overarching path managing corporate crises follows.
The steps outlined below are not an all-encompassing roadmap. Rather, they represent the life cycle of a crisis where many unique, circumstance-driven tactics can be implemented in order to get a company back to doing what it does best.
Stop the bleeding. Weathering the initial incident or media storm is the first step to getting an organization back to business. Younger organizations like Uber are starting to learn what companies with decades-long histories know to be true: Stopping the bleeding doesn’t happen overnight. It will require investment and it still hurts, but it has to be done.
Measured, strategic communication with your key stakeholders – customers, investors, shareholders, employees – is vital. Don’t over-promise and don’t expect to charm or satisfy your critics.
Roll up your sleeves. As the headlines are receding and the media are on to the next crisis du jour is when the critical, tough behind-the-scenes work to get an organization back to business begins.
“Back to business” doesn’t mean doing things the same way you’ve always done them. Something had to have happened to get you into that crisis in the first place. It’s time to take a hard look at the why and the how. Once the problems are identified, operational changes can be made.
For example, if a food product is recalled, that may mean looking at ingredients, supply chain and transportation logistics. Potentially changing suppliers or seeking regulations that don’t allow allergens like peanut products to be transported the same way corn is.
In the case of Uber, there has been a corporate culture of impropriety and misconduct from sexism and discrimination to drinking in the office – that should mean new policies, workforce changes and new leadership.
These changes should largely take place behind closed doors. In some cases, publicizing changes can be important to renewing your customer or investors’ trust, but it’s vital that a crisis not be naively addressed as an opportunity. It’s not. Too many companies believe a million-dollar ad buy telling their customers how much they care will fix their reputation quickly. BP learned the hard way that promoting environmental progress can backfire in the face of inconsistent behavior or catastrophe.
Get back to business. Companies should focus on their improving their bottom lines – growing their customer base, sales, employee retention, etc. Sports teams should focus on winning. Drug companies should develop effective drugs. And politicians should focus on serving their constituents.
Uber’s move to hire Covington & Burling and former Attorney General Eric Holder to take the hard look at the ridesharing app’s operational challenges was a good one – one that sought practical recommendations that, once addressed, would free the company up to prosper. But it should be noted hiring a law or consulting firm to make recommendations is only the price of entry to a long-term solution. It takes hard work, investment and commitment from company leadership.
The bottom line is there are no quick fixes to get Uber – or any organization in crisis – driving down the right road. With the completion of the Holder report and Kalanick’s leave of absence, it seems clear that Uber’s hope is it can get back to business. And with crises past as a guide, I believe the company executives can if they dig in and make real operational change. If they don’t, you can count on Uber being back in the (not-so-savory) headlines very soon.
