Case Study: SoulCycle & The Company You Keep

SoulCycle & Equinox, both wellness brands recently experienced boycotts and backlash due to a controversial decision by one of their investors Stephen Ross. Mr. Ross decided to host a high-dollar fundraiser for President Donald Trump. You can read more about the details here.

I became aware of the controversy after watching a video posted by Chrissy Teigen, encouraging people to cancel their SoulCycle Memberships. As a business owner, nonprofit leader and business consultant, I couldn’t help but think about what we could learn from this SoulCycle situation and wanted to write a quick Case Study.

(1) Prepare a Crisis Protocol

The time to prepare for a crisis, should not be when you’re in the middle of a crisis. Develop protocols and procedures to handle: media & HR. Who will be responsible for fielding the influx of media inquiries? Who needs to sign off on talking points? Which firm(s) can you hire to support you during your time of crisis? Who needs to be briefed about what’s happening? You may need to host a Briefing Conference Call with key employees, customer service representatives, etc.

(2) Communicate internally with your community

Your customers, clients and supporters are already on your side, until they have reason not to be. It is important that you communicate as quickly as possible, WHAT is happening and WHAT you doing about it. You may even want to share WHY it is happening, if you have that information. If your supporters have to hear about what’s happening from the news or other sources, it breeds mistrust. You MUST control as much of the narrative as possible.

(3) Use Multiple Modes of Communication

Use social media, e-mail and where possible Face-to-Face Communication. If I were Soul Cycle, I would have immediately transformed my Brick & Mortar stores to “Listening Centers.” People were angry, and it is important to allow them the space to share that anger and to offer solutions on how to best move forward. People hate to be taken for granted. People also want to stay devoted to the brands they like and trust. During crisis, it is important to utilize all communication channels for two-way communication - outgoing and incoming.

(4) Speak Directly to People’s Concerns

Share what is true, vs. what is not true. Learn out loud. Don’t dance around the controversy. Name it and address the issues directly.

(5) Develop policies around Board Leadership, investors and the organization. Ask your Board, investors, and organizational staff to disclose any behavior or decisions that they make, that may have an impact on the organization.

(6) Clarify values. Clarify your values early and be sure that those values are lived at every level of the organization. Any discrepancy between lived values and stated values could be a liability later. Alignment is key!