Jessica Sharp 
A few weeks ago, I came across a tip in the Harvard Business Review that caught my attention. The premise was a simple one: your company doesn’t have to do anything wrong to get caught up in a crisis. This is a situation I’m all too familiar with, having provided crisis communications services for more than 20 years. What I’ve experienced many times is that when a peer organization stumbles with something like a data breach, a fraud investigation, or a product recall, stakeholders often make quick, sweeping judgments that lump similar organizations together. The researchers from HBR call it “interorganizational spillover.” That’s not a term I was familiar with, but it pretty much sums it up and it happens more than most leaders realize.
The good news is that a well-prepared company can do a lot to defend against interorganizational spillover. The better news is that you can start to prepare today.
Your Reputation Is Your First Line of Defense
In my experience, the organizations that weather crises the best, whether their own or a peer’s, have all put in the work to build their reputation long before they needed it. No matter your business, a good reputation is a strategic asset that you build over time through consistent, transparent communication, authentic relationships, and a demonstrated commitment to your values.
A good reputation does not happen from a one-off activity or an every-so-often thoughtful gesture. It is developed slowly and thoughtfully through years of deliberate action. It happens behind the scenes and in everyday interactions. It is a brand’s most valuable asset.
Don’t Wait for the Knock on the Door
When a peer organization hits the news for the wrong reasons, the instinct for many leaders is to wait and see whether the fallout reaches them. That’s a mistake. Silence invites suspicion, and in the absence of information, people fill the void with speculation. If your clients, employees, and stakeholders aren’t hearing from you, you can bet they’re hearing from someone else.
Three Steps to Take When a Peer’s Crisis Hits
STEP 1: Monitor early and assess your exposure.
Don’t just follow the headlines. Look at whether you share suppliers, governance structures, or other connections with the organization in crisis. The faster you understand your exposure, the faster you can act. In addition, this is a great time to utilize more sophisticated monitoring tools that scan social media and Reddit. Knowing how people are talking about the situation can help you make informed decisions about your own communication.
STEP 2: Communicate proactively with employees and clients.
When a peer’s crisis is making noise in your industry, your two most important audiences are your employees and your clients, typically in that order. Employees are your internal ambassadors. They will be asked about the situation by clients, colleagues, and friends. If they’re hearing about it from sources outside your organization before they hear from you, that’s a problem. Give them the context they need, be clear about how your organization’s practices differ, and make sure they feel confident representing the company.
Clients come next. A brief, direct message, which can be an email or a call, that acknowledges what’s happening in the broader environment and reaffirms your own standards, goes a long way. It doesn’t need to be lengthy or dramatic. The goal is simply to get ahead of any questions before they become concerns.
STEP 3: Take visible, meaningful action.
Words matter, but actions matter more. If there’s a concrete step you can take to demonstrate how your organization operates differently — whether it’s publishing an audit, updating a policy, or inviting greater transparency — do it. Visible action signals that you’re serious. And if you’ve determined that there are no necessary actions that you need to take, communicate that. Write a blog outlining why your company is in a better position, or steps that you’ve taken in the past to prevent what’s happening elsewhere.
The important thing to remember here is that you need to control the narrative when it comes to your own organization. You can even use the moment to strengthen your position. A peer’s stumble, while never something to celebrate, can be an opportunity to clarify your own standards and reinforce what sets you apart. Done thoughtfully and without hubris, this can deepen trust with the audiences who matter most.
The Best Time to Build Your Reputation Was Yesterday
The organizations that handle peer crises with the most grace aren’t necessarily the ones with the best crisis playbooks (although that certainly helps), they’re the ones that have been showing up consistently for years. Consistent, honest communication with your stakeholders. A track record that reflects your values. Relationships built on trust rather than transactions. That’s what protects you when the ground shifts beneath a peer.
The best time to manage your narrative was before a crisis. The second-best time is now. Whether a crisis is brewing in your industry or not, there’s no bad time to take stock of how you’re communicating with the people who matter most to your organization and make sure that when the moment comes, they know exactly where you stand.
For more on crisis communications from the Maven team, read:
The Time for Scenario Planning is Now
The Importance of Message Consistency in a Crisis
The Golden Hour of Crisis Response
Posted In Crisis Communications