Crisis management - 10 things that can save you

published 2003

1. Don’t think a crisis can’t happen to your business.  A crisis can range from a customer relations or product problem through to a prolonged strike or disruptions to business caused by a bushfire. 

Below is a list of possible crises, which can be ranked based on their likely impact on your business:

TYPE OF CRISIS	PROBABILITY
	High	Medium	Low	None	N/A
Natural disasters
Flood
Earthquake
Bushfire
Storm
Customer relations
Product failure
Product recall
Product tampering
Consumer boycott
Service complaints
Product rumours
Management issues
Plant closure
Layoffs
Class action

Other crises that need to be considered include Employee Safety and Health; Environmental; and Labour Issues.

2. Crisis management is about having plans in place to manage the information that is given to key audiences and stakeholders, the public and media.  Plans cover topics such as appointed spokespeople, key messages, contingency plans etc.

3. The key outcome from a crisis management plan is to ensure that your business emerges from a crisis with its reputation intact and support from its key stakeholders.

4. Being prepared for a crisis needs the support and endorsement of top management.  They have to buy into the concept of preparing for it and devote resources to maintaining preparedness at a reasonable level.

5. A key audience to address during a crisis is the media.  They assume the position of the ‘public’s watchdog’ and the way they perceive and report on the crisis can make or break your reputation.

6. The key principle in communication during a crisis is to ‘tell the truth and tell it quickly and convincingly’.  To achieve this, business needs to have policies and principles in place in advance.

7. It’s equally important in a crisis to admit any accountability and to be prepared to verbalise regret, empathy, sympathy or even embarrassment.

8. Any business that develops a crisis management plan needs to establish a team of executives - operational, legal and communication - who know their respective roles and how they relate to each other.

9. It is important that businesses have a designated spokesperson to ‘front’ for the company when a crisis breaks.  This person should be chosen for their ability to communicate and represent the company.

10. Preparation is essential.  Key management need to participate in a formal training session and then periodic ‘refreshers’ need to be conducted.