Question

Things management might do when facing an earnings shortfall.

Answer 1

There are Five Steps to handle such situations and can pave the way to faster reputation repair and also position your team as transparent, accessible and credible.

1.Articulate Clear Assessment of the Issue

2.Provide Detail on the impact of the issue

3.Provide a plan of action

4.Remind Audiences of the path we are on

5.Communicate and Be Visible.

Clarity is most important aspect.

Analysis and investors will need to know exactly what the effect of the financial miss will be, and how long until there is improvement in the result.

The company will begin to gain investor trust back by announcing a plan and sticking to it.