How to handle an Amazon-style internal crisis

Ever sent an email to the wrong person? Accidents will happen, but after any blunder it’s what you do next that really matters.

How to photo with AWS sign and an axe

Last week news broke that Amazon had accidentally sent an email to staff stating that a swathe of employees in the US, Canada and Costa Rica were set to be laid off. The problem with this? The email was sent to people who had not yet been made aware of the plan. 

According to the BBC, a draft email written by Colleen Aubrey, a senior vice president at Amazon Web Services (AWS), was included in a calendar invitation sent by an executive assistant to a number of Amazon workers. The title of the invitation was 'Send project Dawn email', apparently a reference to Amazon’s code name for the redundancies.

This type of self-inflicted mistake is not uncommon, but it’s how a company responds to it that ultimately determines whether it becomes a slightly embarrassing misstep or a full-blown crisis. So what should you do if the worst happens?

Get your first steps right (but don’t wait too long)

The initial response to the mistake sets the tone for how it will be perceived both internally and externally. Accepting responsibility and apologising should always be priority number one. “The most important first step is to acknowledge what has happened quickly, honestly and with clarity. Silence or overly cautious holding statements can quickly undermine trust, particularly in already uncertain environments,” says Institute of Internal Communication (IoIC) CEO Jennifer Sproul.

It is also important to be honest with employees about what the situation is, and what is and isn’t known. Any uncertainty only leaves room for speculation. “The first steps are to acknowledge and apologise for the error, clarify what is accurate, and explain when more information will be available,” explains Alison Arnot, communication consultant, trainer and speaker. “If the situation is still emerging or uncertain, say so explicitly rather than leaving it open to interpretation. Explain the high-level process, and set out known next steps.”

Make space for a conversation

Sproul also believes that it is critical that you “provide a clear route for questions and dialogue, so employees know how to raise concerns and seek clarification”. This is echoed by Arnot, who maintains that “personal contact signals that company leadership has taken the blunder seriously”.

“Leaders and line managers should be visible and approachable, checking in with those most affected and understanding what support they might need,” she adds.

Another important factor is to not avoid the issue, attempt to shift blame or delay communication in the hope it will go away. Furthermore the company must not attempt to prioritise protecting its reputation over the human impact of the situation. “Communication that appears to protect the organisation rather than support people rarely lands well internally,” says Sproul.

Communication should also extend beyond company-wide emails. A real conversation needs to take place, as employees will have questions that need to be answered. Employees must be given a safe space to speak their mind as they make sense of the situation and process what comes next.

Take prompt action

While taking care to craft the right message is essential, it is equally important to get it out in a timely manner. The more time between the mistake becoming public knowledge and the publishing of your response, the more room you leave for speculation and misinformation. Like the classic saying goes ‘a lie can travel halfway around the world while the truth is still putting on its shoes’. 

“A timely and well-judged acknowledgement of what has happened is a necessary first step to moving away from the frustration and distraction caused by the error and to help people re-engage with their work,” Arnot says. 

Offering a swift response means you are unlikely to have all of the answers at first, but it's ok not to have all the facts before acknowledging a mistake. “It means being clear about what is known, what is still being worked through and when people can expect to hear more,” says Sproul. “Early communication helps establish a single, trusted source of information and signals that leaders are present and engaged.”

Understand the impact on external reputation 

With news spreading so fast these days, an internal mistake can be picked up by the media more quickly than ever and can begin to shape perceptions of a brand outside of the organisation. And it’s important to understand and recognise that.

“Internal issues can have a significant impact on external reputation, particularly in a world where boundaries between internal and external audiences are increasingly blurred,” says Sproul. "In reality, the level of external damage often depends on how employees feel about what has happened.”

This means that effective internal communication is particularly important in today's media environment. “When organisations respond with honesty, empathy and visible action, employees are far more likely to stay engaged and constructive, even during difficult moments,” Sproul explains. “Get employees on board and they can become your strongest advocates in managing external fallout.”

Arnot believes that it is important to recognise that organisations are porous and that leaks will happen. “News will always seep out, and how you treat people internally will inevitably influence your external reputation. Generally, though, a genuine mistake quickly rectified is unlikely to have a long term or devastating effect on any company’s reputation,” she explains.

Take the time to rebuild

Once the initial shock of the mistake passes the next stage is reconciliation – trust is hard to earn and easily lost. A mistake can create “distraction, uncertainty, and lowered trust across the rest of the organisation. Commitment can drop, and the ripple effect can affect performance and morale”, says Arnot. 

Therefore, to truly move on from an issue like this companies should focus on rebuilding the relationship with its employees. “Rebuilding trust starts with swift and honest communication, but it cannot end there,” says Sproul. “Trust is reinforced when organisations clearly explain what went wrong and demonstrate that it is being addressed. Acknowledgement without action quickly rings hollow.” 

An important part of the rebuilding process is openness and clarity. Sproul believes that for a company to have any chance of rebuilding a broken relationship with employees “leaders need to be open about the lessons being learned and the steps being taken to review decisions, processes or behaviours”. “This includes being clear about what will change and how progress will be tracked,” she adds. 

The process is not one that can be rushed, especially at organisations with a history of mistakes. “Whether they have been directly affected or not, everyone will be making up their mind about why the situation occurred, how it was handled and what it means for them,” says Arnot.