Financial Crisis – Assuming the Fetal Position

10 October 2008

As Alan Greenspan, former Chairman of the US Federal Reserve put it “we are in a once-in-a-centuryFetal position financial crisis”.

Investors and owners are asking – is the company stable, and is my investment in long term danger?
Employees are asking – is my job safe?  What can I do to help?
Suppliers are asking – will you continue to be a customer of mine?
The media are asking – is there a story to tell about this company today?

Ask yourself – is our organization effectively communicating with these stakeholders during this financial crisis?

Now is not the time to assume the fetal position and wait for the dust to settle.  Now is the time to communicate with your stakeholders.  That includes investors, analysts, employees, media, governments, suppliers, and others.  I can almost guarantee that they will want to hear from you.

 

2 Responses to “Financial Crisis – Assuming the Fetal Position”

  1. Marc Moritz

    Is there anything else that people can do? I mean it’s not like someone can seriously do anything about this right now…  The government is having a meeting today if I’m not mistaken, although it probably won’t do anything, since their other idea was so great… (the bailout).  But I completely agree with you, we can’t do anything but sit and watch the market dwindle down and  put it in our ass (although i have no stock, being a college student ha).  You can’t help but feel sorry for the employees at struggling companies i.e.: Ford, let alone small business, I can’t even imagine the hell that they are going through right now.  

    Sorry if you think I’m just a stupid kid that’s commenting on business blogs haha, I am a kid, but love econ. and hopefully will be a damn good investor in the next 3 years or so

  2. Anil Dilawri

    First of all, let me give you credit for expressing your opinion when many others are afraid to do so.

    These are tough, tough, tough times.  For many companies, it is not about enhancing company value these days – it is about protecting any existing value that remains (i.e. stopping/containing the bleeding), keeping employees productive, and preserving relationships with other stakeholders.

    For the vast majority of companies out there that will survive this crisis, the communication efforts that you make right now (IR or otherwise) will go a long way towards ensuring that your company participates in the recovery.

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