Every business faces tough times. From public relations nightmares to cybersecurity breaches to environmental disasters, crises can strike at any moment, wreaking havoc on even the most prepared organizations. This is where crisis management acts as a vital lifebuoy.
Crisis management isn’t just about managing damage control — it’s about using a strategy to help businesses identify and prevent cyclical hazards, recover more quickly, and preserve their brand and trust. But what exactly does a thorough crisis management plan involve? What can it do to enable your company’s ability to solve?
We’ll discuss various crises organizations can encounter, the essential elements of any successful crisis management plan, the solutions you’re entitled to and open to in safeguarding your business, and real-life use cases that show why it pays to be prepared.
Varieties of a Crisis for Organizations
All organizations are potentially vulnerable to crises, but all crises are not equal. Here are some of the types of businesses that are most likely to face:
Operational Crises
Operational crises are created by the organization itself. This may be an action such as notifying users of a product recall or a service outage, or even worse, a failure of equipment. Such disruptions are likely to affect your daily business and disappoint your customers, and you need to act quickly to reduce potential downtime and loss of confidence.
Example: A food company that recalls a contaminated item. It is an operational crisis. Unless something is done fast, this will be a legal nightmare or damage consumer confidence.
Financial Crises
Financial crisis. In a financial crisis, a company is having difficulty paying debts, due to a low share price, or steepest share price fall or if this is the results of an investment in which they will likely have to sell shares, because of their needs for capital. Such circumstances often demand short-term tactics to fix the balance sheet and restore confidence with investors.
Reputational Crises
It’s really easy for a bad image, bad PR to make an organization look bad. ~ Whether it’s a result of an employee gone rogue, an unethical act, or a miscommunication, reputational crises require a special touch to regain the public’s trust.
Example: A celebrity influencer making public negative comments on a particular brand can harm the brand’s reputation in various social media platforms very rapidly.
Cybersecurity Crises
As it becomes more and more common for businesses to conduct their affairs on the internet, cybersecurity threats have emerged at the top of the new business owner’s list of concerns. When sensitive information is compromised, whether through data breaches, ransomware, phishing or cyber-scams, it can result in legal, financial, and reputational damages.
Catastrophes such as Acts of God
Natural disaster, infrastructure damage, or workplace safety can change the tide of business.
Legal or Regulatory Crises
Lawsuits, noncompliance, or regulatory probes can extract high fines and damage the reputation of an organization.
Knowing the types of crises can also help organizations prepare for the variety of other issues they may face at any given time.
Fundamental Components of Any Crisis Plan
An effective crisis management plan serves as a roadmap before, during and after a crisis. These are the building blocks of any plan:
Assessment of Crisis and Risk Reduction
The identification of possible threats, and the estimation of the probability of occurrence, plays a primary role when building a plan. Assess the risk your business may be exposed to, with tools.
Crisis Communication Plan
Clear, timely, and consistent communication is key to winning the crisis. Determine who you will communicate (a spokesperson or a team of leaders) and develop messages for stakeholders, employees, customers and media.
Incident Response Team
Constitute a crisis management team to manage the response. These experts should come from a variety of departments— operations, legal, PR, IT, and more.
Protocols and Procedures
Establish clear crisis types and how to respond to them. These should provide initial response information, escalation plan and after the crisis procedures.
Training and Simulation
Train your employees on how to manage a crisis and run simulations to see how effective your plan is. It is to make sure all of us know what to do and to be able to respond quickly in an emergency.
Post-Crisis Review
After the crisis has subsided, review the post-crisis response and incentivize or retrain based upon what worked, what didn’t, and where things can get better. Otherwise note the lessons learned to enhance your plan for the next time.
With a proactive approach to these factors your crises will be well limited and you’ll present a resilient face from your organization.
Our Crisis Services
Having to manage a crisis alone can be stressful. Through our crisis management services, we help organizations evaluate, prepare and respond appropriately to difficult situations. Here’s what we have to offer:
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Risk assessment: We analyze vulnerabilities and recommend steps you can take to reduce risk.
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Crisis planning: Work with the organization to create a customized crisis plan that outlines clear response steps and communication strategies, and engage in simulations.
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On-site Assistance: Our specialists will be on site in the event of an incident, helping to control any damage and expedite recovery.
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Media Relations: Shape public perception of your organization using impactful media planning and messaging.
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Post-Crisis Recovery: As with any other crisis, hold a full post-crisis review of the event and the company’s reaction to it, and learn from what occurred.
With a group of experienced crisis consultants and best-in-class methodologies, we’re here to ensure your organization is equipped for anything.
Case Studies: Examples of Real Success in Crisis Management
CASE 1: THE RETAILER’S CYBERSECURITY BREACH
This was followed by a mid-sized retailer suffering a significant data attack in which customer payment data was exposed. We collaborated with IT and executives to mitigate the security leak, inform customers whose data had been compromised, and put new security measures in place. In weeks, customer confidence was renewed and the firm stronger than it had been.
Case 2: Reputational Rehabilitation for a Hospitality Business
When a high-profile hotel chain came under fire for a racially motivated dust-up involving an employee, we helped develop an authentic communication approach. Through efforts to engage with local leaders, a public apology and diversity training, the hotel was able to rectify the situation and keep its loyal patrons.
These cases are illustrative of how effective crisis management can turn complexity into distinction.
Be Prepared, Not Panicked
Crises can push even the most flourishing businesses to the brink. But by proactively managing the crisis, businesses can exit not just unscathed but also in a stronger position.
That’s why it’s so important to identify risks and put together a good crisis management plan to protect your business, reputation and stakeholders. Whether you’re preventing, or handling, a crisis, there is help.
Can you eat an elephant a bite at a time baby? Find out more about our Crisis Management and start safeguarding your organization’s future now. Contact us today.
