Effective Crisis Communication: Essential Strategies for Business Survival
Understanding the Impact of Crises on Business Operations
Life and business can change dramatically in an instant. A simple operational error, a poor decision, actions by a disgruntled employee, or other unforeseen circumstances can suddenly propel a company from its usual operations into a full-scale crisis. During such events, a second, often equally detrimental crisis can emerge, media attention. In moments of crisis, the media, equipped with cameras, microphones, and notebooks, will seek fast, detailed information to meet tight deadlines.
The Importance of Immediate and Accurate Communication
Avoiding the media or withholding comments in the hopes of stalling their inquiry is rarely effective. Reporters will quickly seek alternative sources, often resulting in inaccurate or incomplete information. Communicating clearly and effectively during the initial stages of a crisis is crucial. This not only helps manage the immediate situation but also influences how well a business will recover in the long run. Regardless of whether a company serves consumers directly or other businesses, it’s important to recognize the variety of “publics” involved. These include customers, employees, investors, the media, and government or regulatory bodies.
Potential Consequences of Poor Crisis Communication
Failure to manage crisis communication properly can lead to long-lasting damage. Negative impressions formed during a crisis can take years to overcome. The costs, both direct and indirect, can be significant. On the other hand, well-executed crisis communication can allow a business to navigate the emergency effectively and continue to thrive afterward.
Case Studies: Crisis Communication Success and Failure
Two contrasting examples highlight the impact of crisis communication strategies. After an oil tanker spilled thousands of gallons of oil in Prince William Sound in 1989, Exxon’s delayed response and poor handling of the media turned the incident into a symbol of corporate irresponsibility. In contrast, Johnson & Johnson’s swift and transparent communication during the 1982 Tylenol tampering crisis is widely credited with the company’s successful recovery. Ultimately, this led to increased sales.
Creating a Crisis Communication Plan
While many companies have contingency plans for operational emergencies, few have structured guidelines for effective crisis communication. A well-defined crisis communication plan is essential. Companies should prioritize the development of such a strategy. Organizations with in-house public relations teams or external PR firms may already have crisis communication plans. Smaller businesses can create an effective plan by following these basic steps:
- Hold a Staff Meeting: Gather representatives from all areas of the company, such as operations, customer service, and administration, to brainstorm potential emergency scenarios.
- Identify Key Audiences: Determine the various “publics” that will need communication during a crisis. In addition to customers and employees, consider other groups such as the media and investors.
- Designate Spokespeople: Select one or two company spokespeople who will communicate with the media and other publics during a crisis. Ideally, these should be top-level executives with full authority to speak on behalf of the company.
- Ensure Accessibility: Spokespeople should be easily accessible during a crisis. They may need to be available 24/7 to provide updates and information.
- Leverage Digital Platforms: Consider using the company website as a hub for posting official statements and updates. Ensure that the IT staff are prepared to support the website’s functionality during a crisis.
- Prepare for Likely Questions: Identify the types of questions that each “public” may ask during a crisis. The media will need facts, while customers will be concerned about service continuity. Spokespeople should rehearse these responses in advance.
- Direct Communication with Key Publics: It is often more effective to communicate directly with employees and customers rather than through the media. Establish methods for quickly disseminating information, such as staff meetings or email notifications.
- Educate Employees: Once the crisis communication plan is developed, ensure that all employees are trained on the plan. They should know who the spokespeople are and how to reach them quickly.
Conclusion: Preparing for Crisis Communication Success
Developing a crisis communication plan before an emergency occurs is essential. By investing time in creating and educating staff on this plan, companies can ensure they are prepared to manage crises effectively. This will minimize damage and position the business for future success.