A mortifying event where student staff got drunk was manageable because it was for an internal university audience. The speaker notes if it had been for an external client, the consequences would have been "absolutely horrific." This highlights how the audience for a mistake defines its ultimate impact.
In analyzing a public scandal, Scott Galloway notes that the greatest damage in a crisis typically isn't the initial event but the subsequent "shrapnel": the attempts to cover up, excuse, or avoid accountability. An effective response requires acknowledging the problem, taking responsibility, and overcorrecting.
Making public mistakes feels like a reason to disappear, but it's an opportunity to model resilience. The goal isn't to avoid messing up, but to learn how to handle being wrong, listen without defensiveness, and let your actions rebuild trust.
After completely fixing a critical booking error with no negative impact, an event manager informed her director that everything was handled without disclosing the near-disaster. This tactic of managing up protected her reputation and avoided creating unnecessary stress for leadership.
A 'blame and shame' culture develops when all bad outcomes are punished equally, chilling employee reporting. To foster psychological safety, leaders must distinguish between unintentional mistakes (errors) and conscious violations (choices). A just response to each builds a culture where people feel safe admitting failures.
When internal teams like operations or IT make critical errors that impact a client, the salesperson must bear the full force of the customer's frustration. Despite being blameless, the rep is the face of the company and is held responsible for managing the crisis.
Duolingo CEO's internal memo prioritizing AI over hiring sparked a public backlash. The company then paused its popular social media to cool down, which directly led to a slowdown in daily active user growth. This shows how internal corporate communications, when leaked, can directly damage external consumer-facing metrics.
Seemingly costly failures provide the unique stories, data, and scars necessary to teach from experience. This authentic foundation is what allows an audience to trust your guidance, turning past losses into future credibility.
A PR professional believed his client's TV appearance was a career-ending disaster. He later realized his "fuck-up" was not in the execution, but in failing to grasp the client's brilliant long-term strategy. This highlights that what seems like a tactical failure can be a misunderstanding of a client's deeper strategic goals, offering a lesson in professional humility.
Don't hide from errors. Steve Munn found that when he made a mistake, taking ownership and handling it well actually enhanced client "stickiness" and deepened the relationship. Clients saw he cared and was accountable, building more trust than if the error never happened.
When handling an outage or escalation, the biggest threat to customer trust isn't the problem, but a chaotic internal response. Instill a "clarity over chaos" rule by designating one leader, one channel, and one message. A calm, owned response builds more credibility than a hundred smooth weeks.