They say the best crisis communications plan is the one that you never need to take off the shelf, but
Over the course of a 20-plus year communications career, I’ve had an excellent vantage point from which to witness crisis situations that were handled exceptionally well and some that did not go exactly as planned. While I am normally glued to what seems to be the media’s “movie of the week,” commentary on never-ending corporate blunders and botched responses, it is refreshing to be able to sit back and applaud a textbook response that was equal parts preparation and accountability.
By now the details of what is being dubbed the “Snooping Scandal” have been widely reported and its ramifications adequately (over)analyzed by mainstream and financial news media. Although it is likely that its media competitors and other navel gazers may extend the news cycle further than it deserves, don’t expect this week’s events to put a chink in the armor of Bloomberg’s media or terminal businesses for the long term.
Bloomberg wasted no time in delivering a swift, decisive and very “on brand” response hours after the news broke. Internal communications to staff conveniently became public while clients and media were addressed with the appropriate level of humility and contrition. The company also leveraged its own media assets to ensure that the message could be controlled in its favor, a luxury very few of corporations have.
Kudos to CEO Daniel Doctoroff for stepping in front of the curtain via Bloomberg’s website with an admission and assurance that the issue had been resolved while Bloomberg News’ exacting editor-in-chief Matthew Winkler, who is one of the most respected journalists in the world, reinforced Doctoroff’s communication by reiterating company policies through an op-ed and address at a global editorial meeting. This added another much-needed layer of transparency to the breach of privacy and assurance that the matter was not being taken lightly.
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With a client base that consists of hedge fund traders and portfolio managers—people who value and profit from privacy, sometimes even secrecy—it was essential for Bloomberg to demonstrate that change is occurring, and fast. The company acted swiftly by appointing Steve Ross as the new data compliance officer, who is now responsible for overseeing protocols to ensure customer data remains confidential. While Ross’ appointment remains a question mark because of his insider status and relative anonymity, creating an internal role quickly was a critical first step to earning back client confidence. It would also benefit the embroiled Bloomberg to enlist a third party to conduct an audit of their systems and processes and make those findings available to the public.
While the aforementioned media will continue to raise questions and press sources for new angles, the coming weeks and months will be critical to Bloomberg’s rebound from what will likely end up being only a glancing blow.
The team needs to continue to demonstrate an air of humility and contrition, and overtly and enthusiastically cooperate with formal and informal government inquiries.
I suspect Bloomberg will be doing a bit of soul searching in coming months in order re-evaluate current practices, specifically determining if the time to turn the “fence” between its news division and terminal business into a “wall.” But for now, executive leadership has demonstrated they are committed to resolving the situation transparently, and most importantly, have made it a priority to dispel doubt among clients.
In the meantime, the select few who have chose crisis communications as their profession, and probably (somewhat perversely) enjoy the excitement of high stakes PR, should tip their proverbial hats to Bloomberg’s crisis team for a job well done.
