Here are 5 lessons in crisis mgmt from my last few jobs. First, the mrkt can be wrong longer than you can stay solvent. Appeals to fundamental values in a panic fall on deaf ears. Not least because people find it tough to hear when they’re screaming. #values 1/5
Second, hope is not a strategy. Following the PM’s resignation the morning after the #Brexit vote, with the £ in free fall & mrkts under pressure, I was able to state simply, ‘We are well prepared for this.’ Once we backed that up with £250 bn, the mrkt stabilized. #values 2/5
Third, communicate clearly, frequently & honestly. You can’t spin your way out of a crisis. In the financial crisis, I knew we had to be straight with Canadians about both our strengths & weaknesses. If you don’t mention the latter, the former aren’t credible. #values 3/5
Fourth, there are no libertarians in financial crises. The Lehman debacle exposed brutally the limits of mrkts & showed the system can't be fixed in the middle of a crisis, esp. when a web of interconnections mean that the failure of one bank can pull down others. #values 4/5
Fifth, overwhelming force, which can only come from the state. Half-measures are futile. This is when public values of resilience, responsibility & solidarity come into their own. Taking tough action in the public interest was essential to restoring confidence. #values 5/5
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