It was a cold, wet winter’s Thursday afternoon a couple of years ago when the phone rang at my desk and a journalist from the local evening paper asked me for details on the number of redundancies planned for a local weaver. I had to ask him to leave it with me until I called the corporate insolvency firm that retained me for more details. A rather hurried chat informed me that 75% of the workforce would be laid off and a buyer would be sought for the business.

This tale is a classic example of worst practice but is too often the case when communications professionals are brought in to support the insolvency process. PR professionals are called upon as an after-thought to manage the inevitable calls from the press and are left with little opportunity to do more than react to media enquiries. This type of fire fighting has a value by allowing the insolvency team to focus on the business and managing the information flow to the media. But there is another way.

Insolvency practitioners are tasked to maximise the value in the business on behalf of the creditors. They will explore a number of options from sale, as an on-going concern or assets, to restructure or refinance. Communications is a vital part of holding onto the value in a business, from staff retention to managing suppliers or the customer base. An effective corporate communications programme will also position a business well for sale and support wider activity.

With this in mind it is important that communications be placed within the planning process rather than tagged on as an after-thought. Some simple steps can ensure that structured communications plays its part.

Internal communications

Retaining experienced staff is a key part of maintaining a viable business. A structured internal communications plan should be developed with HR. This will include management of information flows, from team briefings to intranets, and the preparation of managed messages for the senior management to ensure consistency of communication.

Managing suppliers and customers

Regular and structured communication will be vital to ensure suppliers and customers don’t walk away. A clear communication of the future plans for the business and the current activity to secure that future is vital to ensure stakeholders stay onboard.

Managing the press

A company in trouble is a great story for local and trade press. They will demand regular updates and revisit the story until a conclusion is reached. It may be tempting to offer no comment and get on with a to do list, but this is a missed opportunity.

In any crisis communication it is important to minimise the negative and maximise the positive. The choice is clear – to manage the media relations to your advantage or let it run its course with no influence.

Embrace the digital age

All stakeholders will start a search for information with the internet. Ensure that the web is embraced as an efficient, cost effective way to get your message out in real time and with no editorial bias. In a crisis situation key search terms can be purchased to drive traffic to the website of your choice. Ensure that it is kept updated and a senior member of staff has responsibility for managing this process.

Get the experts in early

Most communications professionals are used to working under non-disclosure agreements (NDAs). The earlier they are involved in the process the more value they can add to internal and external communications.

It is important to find trusted counsel in these situations. A number of sources are available from asking your local professional services community to visiting the website of the Public Relations Consultants Association prca.org.uk.

These simple steps will ensure that structured communications adds real value to your work and will also help to ensure that a PR consultant somewhere in the land doesn’t get an unexpected media call on a wet Thursday afternoon

Case study

A large print company decided to consolidate its operations into areas of specialist print. This meant two of its sites faced closure unless a buyer could be found. As a communications agency we were called in to manage the process both internally and externally.

A planning meeting was held with the senior management to agree messages and timelines for communications to staff, unions and external stakeholders. The plan was implemented internally through the HR department and existing line management structures. It was made clear that a buyer would be sought and the business would be run as a going concern for an indeterminate period.

Although this was unsettling for staff there was no significant uplift in numbers leaving the company. Regular updates were given and the staff kept informed through the process.

External audiences were engaged directly through company contacts, the corporate website and the media to ensure that all parties understood the business was a going concern, profitable and seeking a buyer. A number of briefings were held with key press to ensure that the message was clearly understood and not a ‘management smokescreen’.

The process took four months and ultimately a trade buyer was found for one of the sites. The sale resulted in a small number of redundancies in administrative functions. A buyer for the second site was not found and it closed with the loss of 150 jobs.

Professional communications supported this process by keeping key stakeholders engaged with the business and supporting the sale process. By dealing with the media through a well-briefed agency the management team was able to focus on the job in hand..

Nathan Lane is managing director at Golley Slater