Banks are in turmoil. Investors are worried. Main Street Americans are concerned about their financial deposits. The Federal Government steps in with bold action. The President goes to the microphone to ease anxieties.
2008? Try 1933 when an earlier banking crisis also threatened to destabilize the American economy. The circumstances are eerily similar to today’s problems. And in some ways, the solutions are similar, too: Heavy government intervention and calming words from the only person who can deliver them effectively: the President.
In contrast to recent events, however,
the President 75 years ago was fresh on the job. Franklin D. Roosevelt
took office on March 4, inheriting an expansive economic quagmire from
President Hoover. Many of the banks around the country had closed and
others were falling every day as confidence waned.
The day after his inauguration, Roosevelt issued a Presidential Proclamation closing the banks. On March 12, he addressed the American people for the first time about the problems.
That speech is notable – and instructional – for three important reasons.
First, it was the first of 30-plus Fireside Chats from one of our greatest Presidential communicators. By itself, it began a remarkable rhetorical journey for a man who understood the power of words to change behaviors and motivate people.
Second, the speech had an immediate and significant impact both on the banking crisis and Roosevelt’s eventual success. Bolstered by his rational and reassuring words, Americans gained new confidence in the banking system, giving regulators time to strengthen the entire system. By the time the banks reopened, they were stronger and poised for growth. With this resounding success behind him, Roosevelt had the mandate to embark on his “First 100 Days” agenda.
Third, it’s a great example of crisis communications and the power of words to calm nerves in anxious times. Coming in at just 1,800 words, I call this “The Little Speech That Could.”
How did Roosevelt do it? By beginning with the premise that this one talk had to do it all. Most speeches are a success if they can accomplish any one of four things: Inform, Reinforce Shared Values, Change Attitudes, or Elicit Action. And I advise speakers in normal times to avoid over-reaching by trying to do too much in one speech.
But these weren’t normal times. Roosevelt knew he had to take the unusual step of jumping across the communication void and move the American people from scared ignorance to positive action in one speech. It was an incredible leap.
Roosevelt’s first task was actually two jobs in one. He not only had to Inform the American people why the banking crisis was occurring but also tell them how the Federal government was solving the problem. He does this with amazingly simple language: “I want to tell you what has been done in the last few days, why it was done, and what the next steps are going to be.”
His next task was to let listeners know these actions were taken with their general welfare in mind. He needs to let them know he shares their values. How? By telling them legislation was “patriotically passed” by the Congress and that both parties showed “a devotion to public welfare.” Simple – and effective – reinforcing language showing the actions would protect the banks and Americans' assets.
He then had to change their attitudes by mitigating the climate of unfounded fear contributing to the crisis. “It needs no prophet to tell you that when the people find that they can get their money -- that they can get it when they want it for all legitimate purposes -- the phantom of fear will soon be laid. People will again be glad to have their money where it will be safely taken care of and where they can use it conveniently at any time. I can assure you that it is safer to keep your money in a reopened bank than under the mattress.”
Finally, he issued a call to action and asked directly for their help. Again, simple language rules the day. “You people must have faith; you must not be stampeded by rumors or guesses. Let us unite in banishing fear. We have provided the machinery to restore our financial system; it is up to you to support and make it work.”
What can speechwriters learn from this pivotal speech?
- Begin at the beginning and inform everyone about what has happened.
- Appeal to an audience's sense of shared values.
- Reassure them that action is being taken.
- Use simple language for greater effectiveness.
- Don’t be afraid to appeal to an audience’s sense of public good to help with the solution.
One reason the initial rescue plan in the U.S. House failed was no one stepped forward - like Roosevelt did - to do the first and most basic task of informing the electorate of what was happening and why. For such an important piece of legislation, the country could have used the modern equivalent of a Fireside Chat - perhaps a prime-time address to the American people - to lay the groundwork for action.
Roosevelt understood that what his audience needed first and foremost was information. He met their needs first before asking for their support. A great example of leadership communication.