How to prepare your company for potential crisis situations

Communication is a vital element

In the face of a crisis, the urgency to communicate is paramount. When business operations are disrupted, all those impacted - from customers to employees, suppliers, and partners - seek reassurance and clarity on the situation.

Regardless of industry, scale, or resources, every company is vulnerable to crises, often striking unexpectedly. In such scenarios, it's crucial for organizations to be nimble and ready to respond.

An ineffective crisis response can be catastrophic, eroding credibility, customer trust, and opportunities for growth.

The rapidly evolving media landscape, especially social media's ability to drive instant customer engagement, and a more intense business environment are pushing organizations to be proactive in crisis preparation.

It's no longer enough to simply react quickly to a crisis - a strategic approach is needed, involving advance planning and organization.

Many companies have even leveraged crises as opportunities to fortify their businesses. While not all organizations hit by a crisis turn to communication and crisis management specialists, those that emerge victorious typically have.

No manager can effectively lead a crisis strategy alone, no matter their business acumen.

Savvy leaders understand this, recognizing that pre-planning and calculated decision-making in times of peace yield better outcomes in the face of crisis.

The most effective way to mitigate the impact of a crisis on your company is through proactive crisis prevention. This involves being prepared in advance for such events.

The key steps in preparing for a crisis are:

1.     Conduct a general audit and identify potential risks and vulnerabilities

Proactive crisis prevention is intertwined with risk management, meaning identifying and anticipating potential risk situations that could turn into a crisis. This involves implementing a system to prevent such events from occurring and minimizing their impact if they do.

The company's vulnerabilities should also be thoroughly evaluated from all angles, including operations, human resources, financial and legal data, potential industrial accidents, natural disasters, cyber-attacks, etc. This will allow for the creation of a comprehensive list of potential risks.

2.    Examine relevant crisis management and communication documents

This process involves reviewing a variety of documents, including but not limited to: the brand ethos, which encompasses vision, mission, and values; the corporate communication manual and guidelines; compliance information; stakeholder mapping; functional review; SWOT analysis; risk assessment; business continuity plan; organisational chart; supplier management; service management; shareholder information; and financial data.

3.     Establish the members of the crisis cell

The crisis cell is made up of representatives of the company's management, communication specialists, key people in the organisation, and even authorities if necessary. They all have an important role to play in a crisis and should be prepared to act in a coordinated way.

One-voice communication is especially necessary for a crisis situation, so a spokesperson should be appointed from within the cell. He/she must have all the information that can influence the course of the crisis situation, because only in this way can he/she control the message delivered to the public. He/she will also be the one to communicate in the media and provide information to all stakeholders.

The spokesperson must be a skilled communicator. Therefore, if he or she is not a communication specialist, he or she should attend a series of training to learn how to deal with journalists and how to speak in public.

4.    Create a crisis manual and crisis management plan

The crisis manual is a very useful tool and is like a roadmap that outlines all the steps to manage the crisis, together with the people responsible. The document prepares the company for rapid reaction and allows for the most natural management of each operation, whether it concerns the running of the business or communication in a crisis situation.

The level of detail depends on the assessment of the organisational complexity, size, structure and number of risks identified.

Components of a Crisis Manual:

·      crisis response procedures: The manual should outline the procedures to be followed in the event of a crisis.

·      crisis management policies: The policies related to crisis management should be included, such as guidelines for information security, employee social media usage, and media relations.

·      notification and response protocols: The manual should clearly define who is responsible for responding to a crisis and when they should be informed.

·      emergency notification procedures: The manual should outline how stakeholders, both internal and external, will be notified during a crisis.

·      designated spokesperson: The manual should outline the responsibilities of a crisis spokesperson, including their actions in the first minutes of a crisis event.

·      key messages: The manual should include standard messages for internal and external audiences, tailored to the specific crisis situation.

·      additional support resources: The manual should include helpful checklists and other resources to assist during a crisis.

5.     Organise crisis simulations

The stress test is not a test that the organisation can pass or fail, but an opportunity to practise decision-making under pressure. It is a PRACTICE, not an exam, so it should be done regularly - at least once a year.

Performing crisis simulations can help organisations sharpen their skills and be better prepared for unexpected events. These simulations, guided by crisis communication experts, provide a platform for practising decision-making under pressure and familiarising with the crisis manual. Crisis simulations offer numerous benefits, including the development of leadership skills, increased internal awareness, team-building opportunities, and identification of vulnerabilities.

Effective crisis management tactics go through three basic stages:

- the pre-crisis stage (preparedness and prevention);

- the crisis response stage (actual crisis management);

- the post-crisis stage (recovery and analysis, integrating lessons learned).

How to manage the pre-crisis phase

The pre-crisis phase involves preparing for a potential crisis by identifying potential risks, establishing a crisis response team, creating a crisis management plan and manual, training employees, and implementing crisis-related policies in daily operations.

A comprehensive crisis management plan should include instructions on crisis communication and, in many cases, risk assessment, business continuity planning, and emergency management.

Training is often the most overlooked aspect of the pre-crisis phase, and regular crisis simulations can help ensure that the plan is properly executed in the event of a real crisis. Without training, the crisis response team may struggle to effectively implement the plan.

How to manage the crisis response phase

The crisis response phase involves putting into practice the preparations made during the pre-crisis phase.

In crisis situations, transparency is necessary for communicating with the media. You may not have answers to some questions, but a specialist will help you provide information that can satisfy audiences at all stages of the crisis.

It is often better to segment public communication according to the information that comes to your attention in a protracted crisis situation, for example, rather than not communicating at all, pending the final conclusions. The public, shareholders, and customers will appreciate it more if you say you are coming back with additional information than if you ignore them and don't communicate at all.

Ideally, in a crisis situation, all communication channels should be used so that the message reaches all stakeholders. The basic requirement is to control the message as well as possible and to minimise interference from external factors that can damage the information. For example, the internet is the leading medium in terms of the speed of message propagation, but there are vulnerabilities including the fake news component.

That's why the communications team needs to closely monitor how the crisis is unfolding in cyberspace and intervene effectively when needed. An expert will know how to weigh the opportunity of choosing one communication channel over another.

How to manage the post-crisis phase

The post-crisis phase is when operations return to normal. During this stage, the crisis communication team can initiate actions to restore the brand's reputation and credibility.

Effective strategies for managing the post-crisis phase include:

Sharing information about the cause of the crisis or updates on any casualties with stakeholders as soon as the company becomes aware of them;

Keeping stakeholders informed about recovery efforts, including the progress of investigations;

Evaluating the performance of the crisis communication team and crisis management plan to enhance future crisis response.

It is important to be aware of potential vulnerabilities, prepare for worst-case scenarios, and respond quickly and appropriately in the event of a crisis. Approach change with positivity and ensure that your organisation is equipped to handle crises effectively.