Handling Tough Questions

Here is a fantastic example of properly handling the tough questions relating to a lawsuit: an interview with Eli Lily CFO Derica Rice The interview is primarily about the company's performance, but at the end, CNBC reporter Mike Huckman sneaks in a question about the NAACP supporting and racial discrimination lawsuit against the company. Without missing a beat, Rice responds:

It is unfortunate that the NAACP has chosen to get involved in this matter. We do not believe that the allegations have any merit. We fully investigated those. The allegations are not consistent with the company that I've known in the 19 years that I've been at Eli Lilly & Company, starting as a financial analyst. So, we believe that the way we treat our employees is around respect, integrity and excellence. And that's been the environment I've seen in my 19 years with Lilly.

Here's what you'll note about his response: (1) It doesn't stop at "we will fight this on the merits;" (2) it is direct and personal (now Mr. Rice may be helped a bit by the fact that he is African-American, but that doesn't make the point any less valid); and (3) it is not a banal cliché of the type that makes the audience's eyes roll. Here's the rub: at the end of his answer, you kind of believe him -- and that, I think, is the test of the success of his response.