Navigating Uncertainty: Making the Right Decisions

In times of uncertainty, businesses face unique challenges that require swift yet thoughtful decision-making. We sat down with Senior Counsel Jordan Berman and Managing Director and Communications Practice Lead Danielle Donadio to discuss how organizations can navigate these turbulent times effectively.

When facing periods of uncertainty, what must businesses and organizations get right? 

Jordan:  Accepting that there is no one right answer is key. Organizations want perfect information to ensure their decision is the “right one.” However, times of uncertainty create the opposite conditions marked by imperfect information and moving with speed based on the best available information is critical to remain competitive and to ensure a sustainable business model. That said, this is all predicated on proactive planning and considering multiple scenarios so leadership doesn’t make decisions in a vacuum.  

Danielle: I agree with Jordan’s comment and want to focus on the reference to speed. In a world where information moves instantly across social media, you can’t drag out your response time. Sometimes, you must put out a statement when you are still learning, but it’s better to respond and let people know you are on it than to wait for perfect information. You could still be waiting days later and, by then, be perceived as not caring or not responding to a crisis that could damage your reputation.

Preparing for Unexpected Challenges

How can organizations better prepare for unexpected challenges, and what common pitfalls should they avoid? 

Jordan:  Whatever the source of challenges – geopolitical, marketplace, regulatory, etc. – one of the best approaches is to ‘expect the unexpected.’ With this mindset, organizations are well-placed to be more agile and flexible and will recognize the need to challenge assumptions, re-examine processes, and invest in scenario planning. The latter should be based on ongoing environmental scanning and include identifying and aligning on tipping points or triggers for action. The most common pitfall I have seen is balancing the need to be decisive and move with speed and the need to ‘stay in the question longer’ so you don’t react too quickly but instead respond appropriately.

Danielle: I think this is where preparation plays an essential role. If you have prepared for your worst-case scenarios and practiced how you will respond in a crisis – your ability to function under pressure will be improved because you have developed some of the protocols and materials that you can build from. We are strong advocates of crisis playbooks and scenario planning for this exact reason. We don’t want an actual crisis to be the first time you’re working through your decision-making process and response messaging.

Effective Communications in Economic and Political Flux  

What are the ingredients of successful communications planning in periods of economic uncertainty and political flux? 

Jordan:  Aligning on the most likely scenarios coming to fruition is essential. It’s unrealistic and unnecessary to be fully prepared for 12 different scenarios. Once these have been determined, a structured approach should include developing objectives, identifying stakeholders, creating messaging blueprints, developing position statements and possibly even holding statements. These should be underpinned by broad communications strategies that can be refined based on the specific circumstances of events that unfold.  

Danielle: I think the key is to expect the unexpected and to be ready to seize opportunities and pivot when necessary. Moments of pressure and uncertainty can create an advantage when you are clear about your value proposition and what distinguishes you from your peers and competitors. In periods of uncertainty and elections, it can be easy for politicians to make statements that gain traction. It’s key to be paying attention and to be ready to respond and engage. Recently, McDonald’s created a golden opportunity for themselves with Trump’s visit, which had the potential to go sideways. In responding, they focused on their values and were transparent about their decision-making. Some great flags for companies wishing to participate in leaders' tours for our upcoming provincial and federal campaigns.

Board Roles in Crisis Management

What role do or should Boards play in communications and crisis planning? 

Jordan:  As part of their mandate to provide organizational oversight, including governance and risk management, boards must have visibility on potential communications issues or crises. This will enable them to provide guidance in effectively preparing an organization for possible outcomes, ensure risks have been thoroughly assessed, and mitigation plans are robust.  

Danielle: I think the key to success is clarity about the role of the board, CEO, and management team during a crisis. The other important role for the board is if the CEO becomes the crisis and how their role changes in that circumstance. While these are rare situations, we have all seen when they have been poorly managed, and successful companies have lost millions in market share as a result.