As the public health crisis fuels an economic one, more and more companies find themselves on the brink. Corporate crises bring a barrage of questions. Employees worry about their jobs. Shareholders worry about their investments. Regulators ask whether the company was prepared. And everyone wants to know the plan. The questions are many, and tough.

I joined Theranos to help answer them. I became its general counsel in late 2016, in the midst of a crisis over the company's blood-testing technology. Media exposés had prompted investor outrage, government investigations and hundreds of millions of dollars in lawsuits.

Communication drives any crisis response. Management faces daunting challenges from all directions—retaining employees, resolving litigation, appeasing regulators, raising funds—and effective communication is central to each. The audiences and messages may vary, but the imperative to engage is a constant.

As a rule, corporate stakeholders respond more favorably to facts—no matter how grim—than to no facts. Companies in crisis should deliver facts in every setting available. Convene meetings, hold conference calls, send email updates. Effective crisis communications share a few key elements.

First, be direct. No rosy outlooks, no sugarcoating. Draft messages with care—then delete the adjectives and adverbs. Forthrightness is especially important for smaller or private companies, which may have less reputational capital and less-patient stakeholders than larger or public ones.

Second, acknowledge mistakes. In the face of anger or frustration, the best response often begins with, "You're right." Some advisers may caution against admitting fault; fair enough. But remember that mistakes are more readily forgiven than obstinance in the face of facts.

Third, accompany contrition with a plan. Develop a realistic path back to stability, and share it. Set milestones, show how to reach them, and note the consequences of falling short. If the path is narrow and fraught with peril, say so.

Finally, draw and defend lines. With stakeholders who wish you success, focus on moving forward in collaboration. But with those who make unreasonable demands, be prepared for confrontation. Threats, and even lawsuits, may warrant reciprocation.

Theranos' crisis response drew on these principles. The company prepared and presented a turnaround plan. It engaged with employees, investors and the government. But it also held firm when threatened, using any leverage available to stave off or resolve litigation. At times, it relented. It paid Arizona nearly $5 million in restitution, enough to cover every dollar spent by the state's consumers on Theranos tests.

Eighteen months later the company was in a different place. It had settled with two large investors as well as Walgreens, its former commercial partner. It had survived an investigation by the Department of Justice—which charged the CEO, but not the organization, with fraud—and resolved inquires by the Securities and Exchange Commission, the Centers for Medicare and Medicaid Services and the Arizona attorney general. It had retained a core of key employees. It had completed a deal with dozens of shareholders to increase their equity stakes in exchange for liability releases. And it had secured a $100 million debt facility.

As the world knows, there is an asterisk. The turnaround fell short. Even with a revamped technical team and additional funds, product development missed its milestones. The company defaulted on its credit facility and had to wind down. Its closing letter to shareholders recognized, "We are now out of time."

We were indeed, but not without lessons. I share them with clients facing crises of all sorts, from financial to legal to reputational: speak plainly and with a plan, acknowledge your mistakes, and defend the rest to the end.

David Taylor is the founder of Taylor Strategic PC, a crisis management law firm. From 2016–2018, he was general counsel (and ultimately CEO) of Theranos.