Crisis Communication

Overview

How you communicate during a crisis often matters more than the crisis itself. This skill provides frameworks, templates, and principles for communicating during difficult company moments.

Core Principles

The Four Rules of Crisis Communication

Be Fast - Silence creates vacuum filled by speculation
Be Honest - Lies and spin always come out eventually
Be Clear - Confusion makes everything worse
Be Human - People remember how you made them feel

The Communication Hierarchy

In a crisis, communicate in this order:

Those directly affected (e.g., laid-off employees hear first)
Leadership team (so they can support their teams)
All employees (before external stakeholders)
Board and investors (same day or next)
Customers (if they're affected)
Public/press (only if necessary)

The rule: No one should hear about their situation from someone outside before hearing from you directly.

Audience-Specific Guidance

Communicating with Employees

What they need:

Truth (even when it's hard)
Context (why is this happening)
Clarity (what does this mean for me)
Path forward (what happens next)
Empathy (acknowledgment of difficulty)

What destroys trust:

Finding out from outside sources
Corporate speak that hides the truth
Changing stories
False optimism
Delayed communication

Formats:

Situation	Format
Layoffs	1:1 for affected, then all-hands
Pivot	All-hands with Q&A
Funding issues	All-hands with Q&A
Executive departure	All-hands announcement
PR crisis	Email + optional all-hands for questions

Communicating with Board

What they need:

Early warning (no surprises)
Facts and data
Your assessment
Your plan
What you need from them

Format:

Call or emergency board meeting for major crises
Detailed written update
Clear asks

What to include:

Situation summary (2-3 sentences)
How we got here
Options considered
Recommended path
What we need (decisions, support, resources)
Timeline

Communicating with Investors

Proactive communication builds trust:

Tell them before they hear elsewhere
Be honest about struggles
Show you have a plan
Ask for help when needed

Format:

Email for updates
Call for major issues
Be concise but complete

Template:

Subject: [Company] Update - [Brief descriptor]

[Name],

I wanted to reach out directly about [situation]. Here's what's happening:

Situation: [2-3 sentences]

What we're doing: [Your response/plan]

What this means: [Impact and outlook]

I'm happy to jump on a call if you have questions. We're [confident/working hard to] navigate this well.

[Name]

Communicating with Customers

When to communicate:

Service disruption
Product changes that affect them
Leadership changes they should know about
When they might hear about issues elsewhere

Principles:

Lead with impact on them
Be specific about what's changing
Provide timeline
Give them a path for questions

Situation-Specific Templates

Layoff Announcement (All-Hands)

Before the meeting:

Affected employees already informed
Managers briefed
FAQ prepared

Structure:

Open with acknowledgment: "I have difficult news to share today..."
State the decision clearly: "We're reducing our team by [X] people..."
Explain why: "Here's why we made this decision..."
Acknowledge those leaving: "I want to thank those who are leaving..."
What it means going forward: "For those staying, here's what this means..."
Q&A: "I know you have questions. Let's talk..."

Sample script:

"Thank you for joining. I have difficult news to share.

Today we're reducing our team by [number] people. This was an incredibly hard decision, and I want to explain why we made it and what it means going forward.

[Explanation of business context - be honest but concise]

We considered alternatives like [what you considered], but ultimately decided this was necessary to [reason - extend runway, refocus, etc.].

To those who are leaving: thank you for your contributions. This isn't a reflection of your work. We're committed to supporting your transition with [severance details].

To those staying: I know this is hard. You're going to have questions about workload, about security, about what this means. Let's talk about those things now.

[Q&A]

We'll get through this. I believe in this team and this company. Thank you for your resilience."

Pivot Announcement (All-Hands)

Structure:

Acknowledge the change
Share what you learned (why current path isn't working)
Introduce the new direction
Explain what this means for everyone
Acknowledge the difficulty
Express confidence in the path forward

Sample script:

"I want to talk about a significant change in our direction.

Over the past [time], we've learned a lot. [Specific learnings]. Based on this, we've decided to pivot from [current] to [new direction].

This isn't a decision we made lightly. We explored alternatives and talked to customers, investors, and advisors. Here's why we believe this is right: [reasons].

What this means for you:

[Impact on roles/work]

[What stays the same]

[What changes]

I know pivots are unsettling. It's okay to have mixed feelings. What I can promise is that we'll communicate openly as we navigate this transition.

Questions?"

Funding Challenges (All-Hands)

When to communicate:

When runway becomes concerning
When you're cutting costs significantly
When fundraise timeline is uncertain

Sample script:

"I want to give you an honest update on our financial situation.

Our runway is currently [X months]. We're actively [fundraising/cutting costs/both]. I want to be transparent with you because you deserve to know where we stand.

Here's what we're doing about it:

[Specific actions]

Here's what this means for you:

[Impact on hiring, raises, etc.]

[What's NOT changing]

I know uncertainty is uncomfortable. Here's what I can promise: I'll keep you informed as things develop. You won't be surprised.

Questions?"

Executive Departure

Voluntary departure:

"I want to share that [Name] has decided to move on from [Company]. [Brief context if appropriate - pursuing other opportunities, personal reasons, etc.].

[Name] has contributed [specific contributions]. We're grateful for [his/her/their] work.

Here's the transition plan: [What's happening with their responsibilities].

Please join me in thanking [Name] and wishing [him/her/them] well."

Involuntary departure (keep brief):

"I want to share that [Name] is leaving [Company]. [Brief, neutral statement if any].

Here's the transition plan: [What's happening with their responsibilities].

I know you may have questions. I can't go into details about personnel matters, but I'm happy to discuss what this means for the team going forward."

Communication Checklist

Before Any Crisis Communication

Do I know the full facts?
Who needs to hear this and in what order?
What questions will people have?
Do I have answers or a plan to get answers?
Have I briefed the leadership team?
Is legal/HR aware (if relevant)?
What's the follow-up plan?

During the Communication

After the Communication

Additional Resources

For more detailed templates and examples, see:

references/layoff-communication.md - Detailed layoff communication guide
references/stakeholder-templates.md - Templates for board, investors, customers