The first step is to recognize that an individual or an organization has made a mistake. This is not easy for many executives or organizations. The tendency is to wait to see how bad it’s going to be. Delaying almost always makes the situation more, not less, difficult.
When Chrysler was accused of disconnecting the odometers of test cars and selling damaged test cars as new, CEO Lee Iacocca admitted it: “Did we screw up?” he asked. “You bet. We’re human. Sometimes people do dumb things.”
Note the voice. The active voice (“I made the mistake”) is gold; the passive voice (“mistakes were made”) is dross.
Recognition requires stating the exactly what the mistake was. Not just some of it, but all of it. Without spin or defensiveness. If someone was hurt, say so. If money was involved, say how much. Context will be for later. For now, the important thing is to say it straight. It’s always better for the information to come from the source.