Common Mistakes in Crisis Communications

Macy's recent $154 million accounting mistake isn’t just a financial blunder. It’s a glaring example of poor leadership, a failed communication strategy, and a critical lack of operational control. First off, how does a company allow a single employee to hide $154 million in expenses? For a 165-year-old brand synonymous with holiday shopping, that’s hard to fathom. Sure, Macy’s is a massive global company with $23.5 billion in annual revenue. But $154 million is hardly pocket change - it represents nearly 1% of their total revenue. Allowing such a sum to go unnoticed raises serious concerns about the company’s financial oversight and governance. This lack of control not only damages trust but also casts a shadow over their operational stability. But their errors didn’t stop with financial governance. Their strategy for tackling the crisis also showed glaring errors in communications strategy. Let's start with the timing. If Macy’s had disclosed the error in the summer, it might’ve been a minor blip. Instead, they let it spiral into a 4th-quarter crisis, overshadowing their iconic Thanksgiving Day parade - on its 100th anniversary. It’s like announcing you’ve burned the turkey right before your guests arrive for Christmas dinner. The timing amplified the story’s reach and impact exponentially. Now, that’s the one thing everyone will remember. The communications errors didn’t stop with timing, though. But what’s equally concerning is the communications catastrophe that followed. Even worse was the communications vacuum that followed. Basic crisis management tells us to explain three things: 1. Why did this happen 2. What are we doing to fix it? 3. How will we prevent it from happening again? Macy’s addressed none of these. Instead, they left stakeholders, investors, and the public to fill in the blanks themselves - and that is never a winning strategy. The lesson here is not just about financial controls or crisis communications in isolation. It demonstrates how leadership failures cascade through an organization, turning what could have been a manageable crisis into a case study of what not to do. When it comes to protecting your company’s reputation, there’s no room for shortcuts in either financial oversight or crisis communications. Macy’s just learned this lesson the hard way.

Just saw Target CEO Brian Cornell's all-staff email addressing company challenges. As someone who's spent years advising execs on crisis comms, I just have one question: What was the point? He admits "silence from us has created uncertainty" (correctly identifying the problem) but then immediately creates more uncertainty (by not actually articulating a solution to said problem). Instead of explaining WHY leadership went silent during critical company challenges or what they were deliberating behind closed doors, he skips straight to vague reassurances. In my opinion, this is a pretty fundamental communications failure because transparency without context is just another form of opacity. The email positions Target as a passive victim ("things are happening TO us") rather than an active decision-maker ("we made choices that had consequences"). Consider: > Target has had 11 straight weeks of declining foot traffic > They've rolled back DEI initiatives, triggering boycotts > They've been hit with significant tariff impacts Yet NONE of these are directly addressed in the email. Instead, 40,000 employees get a nothing-burger email with vague references to values being "non-negotiable" and products being "second to none" (while customers are literally shopping elsewhere). Here's what probably happened: Someone in the C-suite said "We need to say SOMETHING!" and this vague, purpose-free email was the result. The perfect example of what happens when the goal is "send an email" instead of "solve a problem." If I were advising you Brian, here's what I would have told you: 1. Get specific. Name the actual issues (DEI rollbacks, declining sales, tariffs, declining consumer confidence) directly instead of vague references to "headlines and social media." 2. Own your decisions. Say "we made this choice because..." not "things are happening around us." 3. Skip the robot speak. "Our values are non-negotiable. Period." sounds defensive, it does not confident. 4. Share a real plan. Not just "you'll hear from us more" but exactly how and when. What's on the roadmap? Is there a roadmap? 5. Keep it simple. An email written by a patchwork of people and lawyers and IR teams will never sound authentic or clear. What would you have told Brian in this scenario?

Chaos or strategy? The White House has dominated headlines this week with a flood of executive orders and a sweeping federal spending freeze (which a DC Federal Judge just blocked). While some moves went viral, others flew under the radar—seemingly by design. In my view, this deluge of news isn’t accidental; it’s a calculated effort to overwhelm and sow doubt among detractors. But, amidst the noise, we can find critical “what not to do” communication lessons for business leaders. When making announcements that impact stakeholders in meaningful ways, clarity and strategy are non-negotiable. Here’s what we can learn from the White House’s approach: 1️⃣ Start with the solution: Don’t lead with disruption. Trump’s spending freeze announcement lacked actionable next steps, leaving stakeholders confused and concerned. Instead, identify the problem, present a solution, explain the “why,” and conclude with the “how.” 2️⃣ Be transparent: Honesty builds trust. Explain why tough decisions are necessary, why they’re happening now, and how you’ll avoid similar situations in the future. Transparency reduces panic and speculation. 3️⃣ Prepare for questions: A robust FAQ tailored to every stakeholder group is essential. Take time to anticipate concerns and ensure all messaging—whether internal or external—is aligned and consistent across channels. 4️⃣ Plan ahead: The best time to create a crisis communication plan is before you need one. Establish timelines for updates, assign roles, and ensure every action is communicated clearly to reduce uncertainty. Leadership isn’t just about making decisions; it’s about communicating them effectively. Executives should always aim for clarity over chaos—because stakeholder trust is built one message at a time. 

🌟 Lessons Learned from the Daily Harvest Crisis 🌟 Last year, Daily Harvest, (company with a valuation of $1.1 billion in 2021), found itself in a major crisis. The company launched a new product, the French Lentil + Leek Crumbles (sounds delicious?). Soon customers started complaining they were getting sick, both on social media and to company support. Despite the complaints, Daily Harvest was slow to respond, with customers feeling dismissed when the company suggested that their health issues might be due to improper preparation of the product. The company offered a $10 credit and sent customers a survey asking "how long did you cook the product". More than 140 people were hospitalized, and around 40 had to undergo gallbladder removals. The CEO resisted using the word "recall" on social media, and instead customers with pending orders were informed that their orders were canceled due to "high demand" and a temporary stockout. It was only after hiring a crisis management company that the company finally issued a recall. Now Daily Harvest is facing arbitration with customers (forced arbitration in their terms of service) and lawsuits from influencers who previously promoted the brand and received the product free (not subject to arbitration). They've had two rounds of layoffs and closed a retail location since. This is a great use case and a lesson in leadership and how to act in times of crisis. Some lessons I personally picked up Transparent Communication: Acting out of fear (of what might happen if it is your fault) and not facing issues head-on can be the downfall of a business. You have to be forthright with your customers first - and I believe if the CEO was transparent early on, the response from customers would be much more positive. Crisis Management - Every business must have a crisis management plan in place to handle unforeseen challenges. Especially if you're in a business more prone to issues coming up (toys/supplements/machinery/food). Taking Customer Complaints Seriously: Listen to customers, have empathy, and respond quickly. Downplaying customer concerns is not the way to build trust. The Daily Harvest crisis reminds us that even successful companies are not immune to challenges. We will never be able to avoid challenges, but how we show up makes all the difference if we rise to our next level, or we're not ready to get there.

One of the biggest mistakes I see communications pros make when dealing with a crisis is trying to convince everyone it's really not that big of a deal. "What he meant was..." is said far too often. At Comprise, we have a simple formula for dealing with a crisis, whether big or small: Ownership Empathy Repair Ownership: This happened, and it shouldn't have. We're taking the following steps to prevent it from happening again. Empathy: We understand that you're upset, and we want to make this right. Repair: Here's what we're going to do. Simple, really. I've been in situations where CEOs want to argue, deny and deflect. That works (and can even be the correct approach) if you're being falsely accused. If you did it (or said it), own up to it, acknowledge that you've upset some folks and explain what you're doing to fix it.