Office Hours: Crisis Management 101, Ad-Supported Streaming Tiers, and Achieving Economic Security

Airlines Meltdown

Scott Galloway examines the Southwest Airlines operational meltdown, emphasizing the importance of effective crisis management. He highlights the role of a company's board in such situations, noting that their primary responsibilities are to hire and fire the CEO and decide when to sell the company. Galloway uses the Tylenol crisis as a case study, where Johnson & Johnson's decision to clear shelves of potentially contaminated products restored consumer trust.

There are moments of truth where you have an opportunity to turn chicken shit into chicken salad.

--- Scott Galloway

This approach, he argues, can strengthen a brand even after a crisis 1.

   

Crisis Strategies

Galloway outlines three core strategies for managing crises effectively. First, he stresses the need to acknowledge mistakes openly, as seen in the Southwest Airlines incident where the company failed to meet customer expectations. He emphasizes that the CEO or top executive must lead the communication effort, as demonstrated by Exxon's failure during the Valdez debacle when the CEO was absent.

You have to over correct, because that communicates how seriously you take the issue.

--- Scott Galloway

Finally, Galloway advises overcorrecting to show commitment to resolving the issue, which can ultimately strengthen relationships with consumers 2.