Sink Or Swim: Could your company cope with a crisis today?
published 2006
These days the media is full of stories about corporate crises - tunnels collapsing, foreign trade deals, drug companies folding, faulty products and extortion attempts.
Some people assume that bad things only happen to big companies but all too often, it’s medium and small companies that get hit. We don’t hear about them because they are not household names. But it is a crisis nevertheless to the organisations concerned and their stakeholders. Whether you are a multinational or a privately-owned company in regional Australia or anywhere in between, how you act once a crisis begins often shapes your company's future - and your own career.
Companies face crises all the time - product recalls, plant closings, tainted products, a crime committed by an employee, a company leader making a poor personal decision and so on. A serious incident can severely impact on your corporate reputation. And that often means customers turn away from you, suppliers suddenly report they can no longer meet your orders and job seekers find themselves more interested in working for your competitors.
It’s not enough to have contingencies in place. You may be coping with the crisis, but it is crucial that the outside world can see that you are coping. The world will not assume that silence means everything is under control.
Effective crisis communication can make a big difference to a company under siege. Here are five principles for a positive corporate response to a crisis or serious issue:
1. Preparation is key.
Think of a Crisis Communication Plan as an insurance policy for your corporate reputation. With such a plan in place, if a crisis hits, you can spend crucial time implementing the plan rather than trying to figure out where to start. Preparedness can include developing a crisis plan, creating media materials, media training for key executives and forming a crisis team.
2. Make sure you have all the facts.
Gather information about the situation as quickly as possible. Talk with your legal counsel and PR adviser to see what information can be released.
3. Take immediate action to minimise danger to human life.
If people are at risk, be sure to immediately address those concerns. Negligence with human life is unforgivable.
4. Tell the truth.
Sounds obvious but amazingly, it is not unheard of for some people to tell half-truths or even out-an-out lies in a crisis. Be sure that any information you release to the media or the public is utterly truthful. If something you say is false, your credibility will be irreparably damaged.
5. Show you care.
Do your best to understand what the public's concerns will be and address those concerns directly. Put yourself in the shoes of people who are adversely affected. You may not be the only ones suffering.
Are You Ready To Handle A Crisis Today?
Take this questionnaire into your next management meeting. It will identify the gaps in your readiness. A task force should work on filling those gaps.
|
1. What kind of management notification system do we have in place if a crisis occurs during non-business hours?
a. For example, how long would it take to reach everyone on the Management team if we had a crisis at 3:00 p.m. on a Saturday? |
|
2. What is our corporate emergency response plan like?
a. When was it last updated?
b. Has it ever been used or tested to see if it works?
c. How well does it tie in with the response plans of our other sites (if applicable)? |
|
3. What internal problems or other vulnerabilities do we have that could be damaging to our business if they went "public?"
a. What would be the public reaction if one of them was disclosed by a disgruntled employee, or in a shareholder lawsuit, government investigation or probing news report?
b. How would we respond to the situation and contain the impact on our company?
c. What’s being done to minimise the chances of that problem occurring? |
|
4. Who would be our spokesperson(s) in a crisis?
a. Who could step in if they were not available or not appropriate for that kind of crisis?
b. How good would they be in handling tough questions from reporters? Have they been trained?
c. How much confidence do we have that they will be credible and convincing?
d. How would disclosures be handled at one of our facilities in a crisis? What Government bodies or other regulators would become involved? |
|
5. How much information would we give out if we had a crisis?
a. Who would decide what to say?
b. What would be the approval process? How long would it take?
c. Who do we have advising us? |
|
6. How would we contact our management and employees so they would hear from us before learning about it from the news media?
a. What about customers, suppliers and other key audiences?
b. How would we do it, and how long would that take? |
|
7. What crisis situations have similar organisations had that went public? How well would we have handled those crises?
a. How much management time has it taken? How much has it cost them so far in expenses, lost business or other impacts?
b. What are the prospects for lawsuits, government investigations, etc? How long will it be before they get the problem behind them?
c. What can be learned from their experiences?
d. Have we made any changes in the way we do business as a result of what happened to them? |
While no one can completely predict a crisis, appropriate planning can make the difference between maintaining a good corporate reputation and the possibility of permanent damage to your good name.
|
|
Contents
