CrowdStrike CEO’s PR Mistake: Not Apologizing Right Away

George Kurtz, CEO of CrowdStrike Holdings Inc., co-wrote a book that is commonly called the bible of information security. But when it comes to crisis management, he’s on shakier ground.

In a post on the social media platform X early on July 19 about a botched software update that crashed countless computer systems around the world, Kurtz made it clear that the incident was not a cyberattack, that his company had identified the problem and deployed a “fix.” What he didn’t say—at least initially—was the magic phrase that PR experts advise all companies to shout from the rooftops in times like this: “I’m sorry.”

Kurtz’s miscommunication, which he later corrected in a televised appearance and subsequent statements later that morning, could be the result of several factors, crisis communications experts say. One possible reason is the company’s rush to include many details about the company’s response in the initial missive. A potential desire to avoid legal liability could also have played a role.

But more likely, this lack of contrition stems from the IT industry’s long-running struggle to establish more personalized, less robotic relationships with the general public.

“A CEO needs a nuanced, emotionally sincere response,” said Davia Temin, founder and CEO of crisis communications firm Temin & Co. “This is a response written by a legal team for a lawsuit. It implies little to no accountability, which is what makes the apology so powerful. And it positions Kurtz almost as an AI voice — automated, soulless. In fact, ChatGPT does a better job of making it seem like it cares about others than he does.”

CrowdStrike did not immediately respond to a request for comment on its CEO’s initial statement.

Other PR advisers were more generous in their assessment of Kurtz’s handling of the situation, but all agreed that the lack of an early apology was misguided. CrowdStrike’s shares fell more than 11%, their biggest drop since November 2022.

“The formula is always the same, no matter what: You start by saying there was a mistake and you apologize,” says Paul Argenti, a professor of corporate communications at Dartmouth’s Tuck School of Business. “The statement he made is the kind of statement you hear all the time from IT professionals. They don’t think about the human aspect, they just want to get the job done.”

“The morning message seems to be directed to IT departments,” said Ron Culp, a former corporate public relations executive who now teaches at DePaul University’s College of Communication. “It’s critical to allay fears, begin to address the problem and apologize. All three of those things need to be addressed in the same message.”

The incident highlighted the challenges the tech industry faces in building human connections, but it’s nothing new.

Sitcoms like Silicon Valley and Great Britain The Computer Crowd Tech professionals mocked employees as arrogant and out of touch. Industry leaders who were good at communicating with the general public, like Apple’s Steve Jobs, honed those skills despite—or perhaps because of—a lack of technical skills.

When a crisis hits, those failures are magnified, experts say. But they’re not fatal. Most public relations experts gave Kurtz a “B” grade for his overall response so far, noting that his subsequent statements have been much better. And he may not be done apologizing for some time.

“While I respect George’s instinct to be honest and apologize,” said Morningstar analyst Malik Khan, “the real apology will likely come when customers come calling.” – Bloomberg