Why Crisis Communication Fails When Leadership Becomes Invisible

By Sanjeevv Shekhar

Consider a scenario where a crisis suddenly hits an organization. Employees are stressed, customers want answers, and people on social media are busy posting their own theories on the crisis. Social media are filled with multiple opinions. News channels are running continuous coverage. This is the moment when a manageable crisis turns into a reputational crisis. Every organization faces difficult situations. It may be a safety incident, a cyber-attack, a regulatory challenge, a governance issue, or a business disruption.

While every crisis is different, one mistake is very common, that is leadership absence. During crisis situation, presence of the leadership is most important. When leaders remain silence, it creates a communication gap. That gap is quickly filled by rumours, assumptions, and misinformation. People begin to lose trust long before the actual problem is resolved.

One of the best Indian examples is ICICI Bank during the 2008 global financial crisis. Following the collapse of Lehman Brothers, concerns started regarding the bank’s exposure and financial stability. Depositors and investors became anxious. The bank’s leadership stepped forward quickly to communicate with stakeholders, explained the facts, and reassure customers about the institution’s strength. Leadership visibility played an important role in maintaining confidence during a period of extreme uncertainty.

Another example is Infosys, which faced leadership and governance challenges, due to which the CEO Vishal Sikka resigned in 2017. Questions around governance, board relations, and future direction generated a big among investors, employees, and the media. The episode shown how leadership transitions require clear, consistent, and proactive communication. When communication is not well communicated, speculation fills the gap.

The lesson extends beyond India. In 1982, Johnson and Johnson faced the Tylenol crisis. Instead of remaining silent, leadership communicated openly, prioritized consumer safety, and shown accountability. The company eventually rebuilt trust and strengthened its reputation.

These examples make one thing clear and set an important principle. Effective crisis communication is not about having all the answers immediately. It is about being present when stakeholders need leadership the most. Visible leaders acknowledge concerns. They communicate facts as they become available. They acknowledge the difficulties faced by those affected. They explain what actions are being taken and what stakeholders can expect next.

Boards also have an important role to play. Crisis preparation should not focus only on operational response. It should also assess whether leaders are trained and prepared to communicate confidently under pressure. A crisis management plan that does not include leadership communication is incomplete. It should also ensure that leaders are trained to communicate clearly and confidently during difficult situations. The organisations that handle crises well are better prepared for the future. Their leaders remain visible, communicate with clarity, and stay connected with employees, customers, investors, regulators and other stakeholders throughout the crisis.

What the Boards should do? Boards should review whether leadership teams are trained, equipped, and prepared to communicate visibly during times of crisis. Communication ability is now a strategic capability and an essential part of enterprise resilience. In difficult times, stakeholders may accept delays and challenges, but they expect leaders to be visible, accessible and honest. That is what builds confidence and protects an organization’s credibility.