Opinions expressed by Entrepreneur contributors are their own.
In the wake of sudden shutdown of Chicago Foxtrot and Dom's Kitchen & Market (parent company of Outfox Hospitality), the story of how it unfolded serves as a powerful lesson for leaders on the importance of communication during a cRISIS. This scenario played out in real time at Foxtrot, a company once buzzing with innovation and promise that has recently been flush with significant investment and seemingly on a path to reshape the urban food landscape.
The executive team faced a critical moment as the reality of the shutdown set in. Their decision was not just to close; it had to do with the way of communicating this decision. The lack of direct communication from the top led to widespread confusion and distress among employees, many of whom learned of their job loss unexpectedly. This lack of communication could be the reason lawsuits are coming. Has the parent company brand been tarnished? Has the reputation of the leaders been hit?
Transparency and honesty in good times and bad
Let's envision a different approach, characterized by transparency and regular updates. Instead of an abrupt termination, if Foxtrot's leadership had engaged with employees and customers early and openly, sharing challenges and exploring all possible options, the story might have fostered a sense of unity and mutual respect, even facing closure.
Connected: Don't let the crisis control you: 5 expert tips for effective communication
In fact, in this alternative history, the leaders lead with visibility. They organize town hall meetings, issues regular communications, and are present on the field, demonstrating their commitment to their teams. They explain the economic or operational pressures that led to this difficult decision and describe the support systems in place for those affected. This approach not only softens the blow, but also preserves the dignity of all parties involved, reinforcing the leaders' reputation as compassionate and principled.
Protecting your personal reputation
This crisis also underscores the importance of the personal brand of each executive involved. In an era where social media and public perception can significantly influence career trajectories, how an executive communicates during a crisis can profoundly affect their future opportunities. An executive known for handling difficult situations with grace, candor and a clear plan can enhance their reputation, becoming a trusted leader in their industry and among the workforce.
As the dust settles, these leaders will continue to reflect on crisis communication, learning and adapting from feedback to improve their strategies. This continuous improvement demonstrates a commitment to excellence and ethical leadership, reinforcing trust with current and future stakeholders and setting a precedent for handling crises with integrity.
Connected: A four-point checklist for effective brand crisis communication
The story of Foxtrot, with its abrupt ending, is thus transformed from a tale of caution to a tale of understanding, illustrating how critical the role of communication is in leadership. The contrast between what happened and what could have been offers a sharp lesson: in times of crisis, how leaders communicate can either compound the tragedy or become a focal point for leadership excellence, shaping the brand's reputation and their personal in the business community. .