Restructuring Communications – protecting corporate reputation & shareholder value through targeted messaging to key stakeholders: Employees, Customers, Suppliers, Regulators & Officials.
Challenges posed by a rapidly changing global economy, disruptive technologies, and a global pandemic are causing concern for many companies, even those with strong balance sheets. Companies that were previously struggling are now facing challenges of survival.
For business leaders, the focus must always be on maintaining a solid corporate reputation and consistent brand value, no matter what circumstance encountered or direction the company takes.
Speaking on the value of corporate reputation, financial wizard Warren Buffett famously said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
The Tantalus Group is ready to assist business & organisations in uncertain times
In providing consultancy services for financial restructuring, merger and insolvency communications, Tantalus helps our clients define communications to manage & present their corporate issues in the best light possible, maintaining confidence among stakeholder groups. The skill sets inherent in this practice are borne out of and readily shared among our other well established practices including Management Consulting, Change Management, Crisis Communications & Strategic Communications.
Tantalus works with both large and small companies – private, listed, family businesses – to achieve desired outcomes for restructurings. Additionally we offer Small Business Crisis Communications; Covid 19 Tailored Communication & Analysis; and ongoing Crisis Monitoring & Reporting as a part of this practice offer.
Tantalus’ strength of global reach and quality of work delivered by our highly skilled group of management consultants prepares companies to pivot as required in order to retain a strong brand image, maintain positive investor outlook and as an employer of choice.
This service practice is geared to protect corporate brand and reputation, while developing targeted outreach to customers, suppliers, employees, regulators & government officials. Tantalus will be actively engaged in monitoring sentiment and events in press and online/social outlets and will respond accordingly with tailored messaging ensuring that reputation and long-term outlook for the company remain positive.
About Restructuring Communications Expert Dick Wright | Senior Consultant | Hong Kong, SAR P.R.C.
Richard has been involved with global downsizing activities, various crisis issues and been tasked with developing and rolling out global marketing and communications initiatives. His key strengths lay in crisis & stakeholder management, media skills training, change management, strategic planning & implementation.
Richard resides in Hong Kong and brings over 24 years of international experience, having played an active role in senior leadership teams in UK, Asia Pacific, and the United States. He has worked in financial services as a stockbroker, in Ottawa as a registered Lobbyist, with Hill & Knowlton, in-house with Lucent Technologies and BT Global Services and more recently in the Blockchain and Algorithmic trading industries. He holds an MBA from Kellogg/HKUST with a focus on marketing & finance.
To learn more about how you can benefit from Dick’s experience creating and implementing restructuring communications email us.
The clear and present need for restructuring communications
The challenges created by an emerging pushback on global supply chains require considered stakeholder management for global companies. It is no longer enough to issue quarterly press releases and occasional corporate blog updates. If your business has been under pressure and is required to restructure, you need a strongly crafted communications plan that takes account of all legal filings and dates, and stakeholder concerns.
The present global financial environment is wrought with upheaval. A recent IMF report on Asia Pacific from October 2020 reads, “To enable structural change, Asia’s economic policies should be focused on the world of tomorrow, not yesterday.” This is especially true for enterprises with operations throughout the region. The report cited a negative 2.2% overall regional growth in 2020, but forecasts positive growth of 6.9% for the region as a whole in 2021.
Although the overall economic forecast is positive, several macro-economic impacts – from global trading bloc protectionism & trade wars, supply chain vulnerabilities, unemployment fallout and associated legislation from the lingering effects of Covid-19 job displacements – will cause serious issues and potential economic stress for many businesses in the region.
Downsizings, mergers, restructurings and insolvencies and likely to increase and business leaders will need to be prepared in order to communicate the positive long-term outlook of their operations to the stakeholders they depend on.
Planning protects the brand & positions the company where it wants to be seen
The first step to get struggling companies back on to a healthier footing is by creating a communications plan that is focused on gaining stakeholder support. The plan should be communicated around key milestones and events regarding the reorganisation, restructuring, or required legal filings, or any activities that can tell the turnaround story. The Tantalus Group will help assist in developing detailed plans to make communications effective and that positively engage targeted communities.
It is crucial that all key stakeholders – employees, customers, vendors, shareholders and government regulators maintain trust and support for the company through these turbulent events.
For example:
- Employees may be concerned about the future will fear for their jobs.
- Present & potential customers may wonder if they will be able to get products or services in the future.
- Investors may lose confidence in your business operations, and might sell off company shares, eroding share price or potentially short selling stock on negative rumours.
- Suppliers and vendors may be concerned about tying their futures alongside a struggling company or might be worried about a potential change of payment terms due to the existing financial difficulties.
- Regulators & government officials will be concerned for local jobs, which might lead to sudden changes in work & labour practices or the potential loss of expected tax revenues.
When creating restructuring and turnaround plans, we manage four major stages that typically occur, although we tailor requirements as necessary.
1. Getting into financial difficulties can become public and impact the perception of the company among stakeholders. A poor earnings quarter, staff downsizings or customer issues will likely be reported and leak into the media.
Rumours can destroy goodwill. When these events take place, you need to address issues quickly with key stakeholders so competitors can’t take advantage by commenting before you do. Tantalus helps you control your communications to talk about company strengths, its workforce, its innovation technologies and long-term outlook. We help you create active messaging so you are not only responding to rumour.
2. Entering financial restructuring protection. Companies need to decide how this is announced. Sudden ‘out of the blue’ announcements on substantial turnaround plans can negatively impact positive standing with main stakeholders. Leaders need to decide which plan is best for their company to minimise shock and disruption.
When you do announce your restructuring Tantalus will create tailored communication plans for all stakeholder audiences to paint a picture of the past strength of the company, why the turnaround will be of benefit and how future outlook should remain bright.
3. Making filings for the restructuring and turnaround plans needs to be done on tight legal timetables and be well coordinated with stakeholder communications. Media should be dialed down if possible as the process continues, but all other audiences can be kept appraised about continuing business operations.
4. Reputation management & repositioning is the last main stage in a financial restructuring. This stage is focused on advising stakeholders how the turnaround plan has made the company stronger after the restructuring; how it remains a viable partner/supplier; is a great place to work; and provides a more stable footing for investor growth.
As with any major crisis activity, a turnaround restructuring is stressful. It will take time to rebuild trust and confidence in the companys products and brand. The planning process for this undertaking – while mainly driven by business leaders, accountants and lawyers – should also engage communication strategists to create and manage focused stakeholder engagement messages throughout the entire process from pre-planning, implementation, and including relaunch of the successful venture.
Contact Tantalus to manage the peaks and valleys of restructuring communications.
Put the talented team of Tantalus management consultants to work for you. Our unique networked structure provides our clients access to the latest strategies from around the world and the ability to leverage experience in wide-ranging industries and markets.
Contact us for an introductory conversation.
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