You’ve built a reputation for working on luxury, high-profile projects – but have you created a plan to deal with high-profile project failures? Of course, you love designing and creating, and you have worked hard to build a successful firm doing just that. But you also need to be proactive and have a plan for dealing with the kinds of challenges common in this industry. With luxury high-profile projects, the challenges or failures can be even more impactful, and you need to be prepared with a crisis control plan.
The $4M luxury estate you are renovating suddenly suffers a major structural leak – what do you do? Or how do you handle it when public fallout with a high-profile developer threatens to break into the gossip channels of the industry? It often isn’t the physical damage that is as big a threat as the danger to your firm’s reputation. That is why it is so important to have a plan of action. Establish a crisis communication plan, maintain professional discretion, keep control of the narrative with industry partners, and protect your brand’s reputation in exclusive local networks.
Trust is your most valuable asset with luxury projects and clients. That is why a single crisis that is mismanaged can reverse years of brand equity that you have established. It can close doors throughout your elite and very valuable referral networks.
High-end luxury project challenges require a systematic, two-pronged response. You need to provide immediate on-site operational containment along with a proactive controlled PR strategy that provides protection for the confidence of your brand as well as its integrity.
Immediate Containment
As in any crisis management, the first 24-48 hours are critical. Immediately freeze scheduled social media posts along with marketing emails and project spotlights. These actions help to avoid appearing insensitive or disconnected in the middle of a crisis.
Adopt a single voice during a crisis. Require all communications – whether to the client, the press, or trade partners – to stream strictly through the principal or a team member you have identified as the crisis PR lead. Instruct junior team members and job-site members to never offer off-the-cuff statements. Always refer all questions to the PR lead.
Immediately establish the facts behind the crisis. Conduct a quick internal audit. Gather contracts, site photos, logs, and email threads before issuing any statements or assigning responsibility (that includes pointing fingers within your team).
Managing Primary Stakeholders
Within your crisis management plan, include how you will manage the primary stakeholders – the client(s), industry partners, and any other partners on the project. Move away from a defensive approach to empathetic, organized leadership.
Take control and focus on three elements:
- what actually occurred
- how it is being resolved
- the exact timeline for the resolution
Make sure you align the narratives with all who are connected to the project – the architects, general contractors and structural engineers. Ensure everyone understands that public finger-pointing negatively affects all involved. You need a united, professional front to project control over the situation. In addition, make sure that confidentiality boundaries are enforced. Remind all parties involved of signed Non-Disclosure Agreements (NDA’s) and contractual confidentiality clauses so as to keep private project conflict out of the public forums. Keep it in-house.
Controlling the External Narrative
Within your plan, you should also address the external narrative – how do you control the press along with possible industry rumors? Prepare a brief, neutral statement for inquiries from the trade or media outlets. It should acknowledge the circumstances without accepting unearned legal liability. You will need to be prepared to balance legal vs. PR priorities. Legal counsel will most likely advise saying as little as possible, yet PR requires that you reassure the stakeholders. Be prepared to communicate empathy and action without admitting legal fault. Another reason to have a plan in place is so you can avoid retracting statements you make. As far as social media and industry gossip, address public rumors or negative press with calm, measured responses. Avoid emotional online back-and-forth that escalates the narrative and paints you and your firm in a negative light.
Turning Crisis into Fundamental Resilience
Once the immediate problem is resolved, conduct an internal review so that the root cause is identified. Discover whether it was a vendor failure, a communication breakdown, or a gap in quality control. Look at challenges as learning opportunities and a way to improve your firm’s operations and your brand. Use the lessons learned to reinforce your firm’s legal protection, insurance policies, subcontractor vetting, and site inspection checklist. With a good crisis plan, you can look back on this moment as a lesson and not as the downfall of your business.
Though going through a high-profile/luxury project crisis is something you hope never happens, having a crisis management plan in place offers an insurance policy of sorts. Your firm may never need to use it, but being prepared is never a bad thing. You will be able to re-enter the market with confidence after the crisis. It is a positive addition to and reflection on your brand when you can address project emergencies with professionalism and tact. With a crisis management plan in place, you are positioning your firm as a resilient, enterprise-level partner capable of traversing complex issues with total professionalism.