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Adecco SA, the world’s largest temporary-help company, could use some management help itself says Carol Hymowitz of the Wall Street Journal.
“The company’s awkward handling of its recently disclosed accounting problems offers a casebook study of how not to communicate bad news or oversee a corporate-governance crisis.
The company’s bunker mentality stirred anxiety among investors, who quickly dumped Adecco shares. Within a few hours, the company lost 35% of its market capitalization. Adecco’s share price, also off 35% at the close of trading on Monday, Jan. 12, climbed some over the next three days as some investors apparently decided the selloff was overdone.”
How could Adecco officials manage the situation better? The Journal recommends steps that would be prudent for any company in a PR crisis:
– Insist that lawyers loosen the muzzle they have placed on top executives.
– Put one leader in charge of the crisis
– Generate more communication with investors, customers and employees.
– Make sure to explain how the problems are being corrected.
No matter how well or how poorly Adecco rebounds, this negative Wall Street Journal article will pop up in search engines in perpetuity. Adecco PR score: zero.