Crisis Stakeholder Response Sequence
Protect employees first, stabilize clients second, then preserve the enterprise.
- Difficulty
- Moderate
- Time to result
- ~days to results
- Steps
- 6
- Confidence
- 96%
This response sequence starts by rejecting the idea that a CEO should personally make every crisis decision. A capable team assesses the situation, then protects employees so they can safely continue serving customers. The organization supplies the tools and flexibility needed for remote or altered operations and recognizes employees’ family responsibilities. Attention then moves to clients: instead of intensifying an external shock through immediate repayment demands, the business offers measured relief and works jointly toward recovery. Shareholders remain important, but the immediate mechanism prioritizes the people required to preserve the enterprise and its relationships. The intended output is operating continuity, stronger stakeholder trust, and a healthier customer base after the crisis passes.
Origin
Greg Becker described Silicon Valley Bank’s response to the COVID-19 shock, including rapid remote work support and repayment flexibility for clients. Extracted from Masters in Business.
Core principles
- 01A capable team is the foundation of crisis execution.
- 02Employee safety and operating capacity come before normal routines.
- 03Clients need stability rather than avoidable pressure during external shocks.
- 04Shared hardship can strengthen long-term relationships.
How to run it
- 1
Mobilize the team
Bring together leaders with the expertise and authority to assess the shock. Distribute decisions rather than routing every call through the CEO.
Pro tip Clarify decision rights before the crisis becomes acute.
Watch out Centralizing every choice around one executive slows the response.
- 2
Protect employees
Address safety, health, and family needs first. Make clear that employees will not be penalized for responding responsibly to the emergency.
Pro tip Ask what prevents employees from feeling safe enough to work effectively.
Watch out Symbolic reassurance without practical support will not preserve capacity.
- 3
Enable continuity
Provide home-office equipment, technology, and revised working arrangements. Confirm that critical client services remain available.
Pro tip Track operational gaps by role rather than applying one solution to everyone.
Watch out Remote access without security and support can create new risks.
- 4
Stabilize clients
Identify clients whose operations or cash flow were disrupted by the external event. Offer appropriate repayment or service flexibility before avoidable distress compounds.
Pro tip Segment relief according to actual need and risk.
Watch out Blanket concessions can obscure clients with deeper structural problems.
- 5
Solve together
Explain why flexibility is being offered and create a shared plan for navigating the disruption. Maintain frequent communication as conditions evolve.
Pro tip Frame support around joint recovery rather than a transactional waiver.
Watch out Do not promise relief the institution cannot sustain.
- 6
Learn from feedback
Gather employee and client feedback about what materially helped. Incorporate those lessons into future continuity planning.
Pro tip Capture decisions while memories and evidence are fresh.
Watch out A successful outcome can hide weaknesses that should still be corrected.
In the wild
During the COVID-19 shock, SVB moved employees to remote work, supported home technology, and allowed affected clients flexibility in repaying loans. The bank communicated that the event was not the clients’ fault and that both parties should work through it together.
→ SVB maintained operations and received strong positive feedback from clients and employees.
Common mistakes
Putting financial pressure first
Immediate collection pressure during an external shock can turn temporary uncertainty into permanent client damage.
Ignoring employee families
Employees cannot sustain client service if leadership overlooks their safety and caregiving realities.
Making the CEO the bottleneck
A crisis moves too quickly for one executive to supply all analysis and decisions.
Is it for you?
Best for
It is best for service businesses whose employees must remain operational while clients face sudden uncertainty.
Not ideal for
It is not ideal when flexibility would conceal insolvency, breach regulation, or create unacceptable systemic risk.
From the transcript
“number one start with a great team, which we we had.”
“it was thinking about our employees first and thinking about our clients and shareholders.”
“we said, we're in this together. This isn't your fault. You didn't do this, and so we should be working together to solve this problem,…”
From the episode
Greg Becker on the Innovation Business (Podcast)
Greg Becker