4 STEPS TO SUCCESSFULLY MANAGE ANY CRISIS
atlasstories.com | 412.749.9299
Crisis situations arise daily and how companies prepare for and manage these events have a longlasting impact that directly affects shareholder value, brand reputation, customer loyalty, and often times insurance premiums. While not every crisis affects revenue, there is a strong correlation showing that operating costs, loss of talent, and regulatory fees as a result of a crisis have serious ramifications.
It is for these reasons — along with the ethical and moral issues — this guidebook exists. Let’s face it, communicating during a crisis event is one of the most challenging tasks due to fluidity, lack of knowledge, and a heightened sense of fear toward public speaking. The goal of this guide is to showcase, from a communications perspective, the steps necessary to prepare, plan, and learn from any crisis situation.
At Atlas Marketing, we define a crisis as any situation that interrupts the daily operation of a business. While it may be far-reaching in scope, the consequence is that a crisis has catastrophic implications for companies.
It’s not if, it’s when.
PILLARS OF CRISIS COMMUNICATIONS SUCCESS
Many companies will take the approach of, “we’ll handle it if it comes up.”
First off, it’s not if, it’s when. And mishandling a crisis situation can lead to significant losses that are measured in various ways. To successfully manage a crisis, companies and professionals are encouraged to create a crisis communications plan. This plan will become your strongest ally during a crisis.
The real question to ask during the planning phase — what will a crisis “cost” my company? — guides the decision-making aspect. For example, cost equates to more than dollars because in many instances the loss of time, inventory, reputation, and employee confidence lead to broader losses.
The Economist published a report that detailed how the top eight most notable corporate crisis events since 2010 resulted in total losses of $300 billion. This report showcases that a lack of planning, in any instance, creates an insurmountable hill to overcome.
Establishing a crisis communications plan is an essential first step.
Every strategic crisis communications plan should define the following: > Crisis management team (CMT) > Roles and responsibilities > Crisis management process
> Key messages or talking points > Company policies and procedures > Various scenarios and responses
A crisis communications plan guides decision-making and responses during an event and defines roles and responsibilities. During chaotic times, understanding the roles and responsibilities of those charged with managing the outcome is extremely important.
We found that clearly defining the roles and responsibilities of our leadership through this process not only led to less confusion, but it also helped with decision-making. We didn’t have conflicting voices or thoughts because every person had a job to do and we were all focused on the task at hand.
Another challenge of the planning process is identifying the scope and scale of the crisis. Atlas Marketing incorporates a risk assessment calculator to define the scope and to guide the crisis management team (CMT) in determining the expected level of intensity. This calculator is essential for successful management from the outset.
Lastly, a strong plan details the various employee and customer touch points related to communciations vehicles such as email, social media, internal meetings, website, and events. While a successful plan includes roles and responsibilities for CMT members, it should also feature the communications vehicles that will carry the story to all stakeholders.
“
— Kathy Freeman, Operating Safety Director, Denver Group, M. A. Mortenson Company
TELLING THE STORY
Since a crisis can occur at any time and through a variety of scenarios — cybersecurity, equipment failure or theft, financial loss, supply chain slowdown, etc. — preparation is essential.
According to Forbes, companies are increasingly turning to crisis communications guidance and the use of a central voice to consistently provide information to all stakeholders.
Why is a single voice important?
The most important reason for a single voice is to eliminate the potential for further damage.
Maintaining control during any situation is vital. In a crisis, the need for control is heightened and the information that is shared becomes currency. Controlling the rate and flow of information becomes instrumental.
To achieve this level of control, enacting one point of entry for information fosters success. Having one voice limits the point of contact while maintaining the consistency of messaging for various audiences. Additionally, trust is built through this process and with trust, true reduction of brand damage occurs.
Should your CEO serve as a spokesperson?
The Atlas Marketing response is no!
Based on our definition of a crisis — any situation that interrupts the daily operation of a business — the CEO must remain focused on operating the business. While it may appear sensible to have the CEO as the voice, the
organization must continue operations (if possible) to maintain revenue generation, service customers, fulfill order agreements, and grow. That requires direction and leadership from the CEO.
As the saying goes, out of chaos comes opportunity.
The CEO should remain involved in the situation, based on the roles established in the plan, but he/she should never serve as the main crisis spokesperson.
At Atlas Marketing, we refer to the voice of a situation as spokesperson. In certain instances, our team has served in that capacity. Many of our clients turn to us to manage this important component due to our experience. More importantly, outsourcing the voice role helps to shield the company from further damage.
CONDUCTING A PLAN REVIEW
The biggest success obstacle to crisis management is the review process.
Many organizations will make the investment to develop a crisis communications plan, establish the various roles and responsibilities, and appoint a spokesperson in preparation for an event. However, a process or analysis to review and update the plan is often dismissed or overlooked.
Today’s business environments are very fluid and consistently remain in hyperdrive. Things change. With new technology comes more issues and it is for this reason that organizations are encouraged to conduct annual reviews of their crisis plan.
Maintaining the plan and updating the various scenarios that may affect your organization is critical. Additionally, analyzing the roles and responsibilities of the CMT is crucial.
For example, a crisis occurs at a manufacturing plant. Quickly, the communications lead accesses the plan and realizes a vital role unfilled because that position had been eliminated in the past year. Managing an active crisis is not the time to find a critical role will be unsupported.
Depending upon the business and the rate of change, companies should schedule reviews of the plan more than once a year. If the rate of change within the industry or business is fast, such as a startup or tech company, the frequency should be adjusted accordingly. For a company that has a consistent pace of business or experiences a slow rate of change, the timeframe for review can be extended.
Conducting a plan review should also include a practice round or two related to the various scenarios that have been established.
PRACTICE, PRACTICE, PRACTICE
It may seem counterintuitive to practice a crisis scenario, however, those organizations that invest in a plan and update that plan religiously benefit from practicing.
Practice allows leadership to analyze multiple aspects including roles, responses, and lessons learned that can be incorporated during a real-time scenario.
In the past, Atlas Marketing partnered with a client to review their response efforts and found several team members were in roles that left them uncomfortable and ill-prepared. The practice session afforded the company an adjustment period that reduced potential damage.
companies with a crisis plan never conduct practice sessions
According to a PR News survey, approximately 37% of companies with a crisis plan never conduct practice rounds. Astonishingly, in the same survey, 32% of companies have not implemented a review process to identify and incorporate best practices and lessons learned from the practice or actual crisis situations.
You can learn so much from making time to review and practicing your crisis communications plan, which is why we encourage every company to institute practice sessions.
A crisis situation can be jarring, uncomfortable, and disruptive, but it does not have to be detrimental to your business. If you think ahead, build a plan, assemble your team, practice and then practice again, you’ll find yourself prepared to handle any situation that occurs. When you have a plan for the unthinkable, you are ready to address it and move beyond it.
37% of
ABOUT ATLAS MARKETING
Atlas Marketing tells stories for companies that build things. Our focus is on the construction and manufacturing industries — those industries that require complex communications solutions. We help companies prepare for and respond to crisis situations and have extensive experience in plan development, strategic response, communications counsel, and serving as a company spokesperson.
For more information visit AtlasStories.com
Set up a meeting Build your story now >>>
412.749.9299