In recent days, a failed CrowdStrike software update has brought to light a critical issue for all businesses: the importance of effective communication in times of crisis.
While most organizations’ focus is on protecting themselves from cyberattacks, this globally significant incident highlighted that internal errors, such as technical failures, can be just as devastating as an external threat.
The situation was made worse not only by the technical error itself, but also by the company’s initial response, which failed to properly address public concerns.
The impact of the outage caused by CrowdStrike’s outage was felt across the globe, disrupting operations across industries ranging from finance to healthcare and causing a ripple effect that affected millions of users. Businesses that relied on CrowdStrike’s cybersecurity services faced outages that resulted in data loss, disruptions to critical services, and a sharp drop in consumer confidence.
This blackout was considered one of the largest global outages in recent history, underscoring the vulnerability of modern digital infrastructures.
From a financial perspective, the consequences were equally serious. It is estimated that global losses resulting from the problem exceeded billions of dollars, directly impacting the market value of several companies, including CrowdStrike itself, which saw its shares plummet in the days following the incident. Companies had to bear additional costs to mitigate the damage, such as hiring data recovery services and implementing emergency security measures.
One of the most valuable lessons we can learn from this case is the need to prepare for any eventuality. CrowdStrike’s initial response was marked by an attempt to mitigate the damage by quickly explaining that the issue was not the result of a cyberattack. This was a good thing. However, the lack of an immediate apology and the overly technical communication demonstrated a disconnect with the emotional expectations of customers and the general public.
Crisis communication must go beyond simply providing technical information. It must engage the public in a human and empathetic way. The frustration and outrage generated by the $10 Uber Eats gift card offered as compensation illustrates how poorly timed symbolic gestures can deepen negative brand perception.
In times of crisis, companies should not underestimate the need to demonstrate sensitivity and recognition of the gravity of the situation.
Furthermore, a well-structured crisis communications plan is essential. A lack of clarity and a timeline for resolving the issue only increased public dissatisfaction. It is essential that companies not only anticipate risks, but also know who will be responsible for each aspect of the response in the event of a crisis.
CrowdStrike CEO George Kurtz has faced severe criticism for failing to issue an immediate apology. This step is crucial, not only as an act of courtesy, but also as a demonstration of accountability and transparency. The company’s subsequent stock drop can be attributed in part to this failure to acknowledge and address the concerns of those affected appropriately.
For companies, the biggest mistake in situations like this is to focus too much on the legal aspect, to the detriment of honest and authentic communication with the public. Kurtz, like many other IT executives, seems to have underestimated the importance of the human touch in his communication.
The case highlights the need to balance technical competence with interpersonal skills, especially during a crisis.
The CrowdStrike episode serves as a reminder that recovering from a crisis doesn’t just depend on fixing the technical issue. True recovery will only happen when a company can rebuild public trust, which requires communication that goes beyond technical fixes and shows a genuine commitment to transparency and responsiveness. It’s a wake-up call for companies that don’t yet have a robust crisis management plan in place.
*Patrícia Marins is a high-risk reputational crisis manager, founding partner of Oficina Consultoria (www.oficina.ci), partner of Grupo In Press, co-founder of WOB (Women on Board) and author of the book “Far beyond media training, the spokesperson in the era of hyperconnection”.
* This text does not necessarily reflect the opinion of the vehicle
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