IQads Interview: Once a PR crisis sets in, it becomes a challenging phenomenon to manage alone, without the support of an expert

It's like telling a patient with chronic pancreatitis to treat himself...

The local PR market is actively involved in crisis communication, and the developments are evident. However, it is crucial to have clients who trust the professionals. In Romania, this trust is lacking, perhaps more than in other places. Furthermore, companies still do not fully grasp the importance of crisis preparedness, as stated by Cosmina Croitoru, PR Director at Lighthouse PR, in an interview for IqAds.

How would you define a PR crisis in 2023? What are the differences compared to previous communication crises? What has remained unchanged?

A PR crisis in 2023 is primarily driven, more than ever before, by companies' economic challenges. Inflation, credit difficulties, and unpredictable legislation, especially in the energy sector, amplify the risks associated with business continuity. Insolvencies and layoffs increase, service portfolios are reduced or overnight changes occur, and financial results or investment projects are affected. All of these significantly impact a company's reputation. The high volatility in capital markets and the regional security crisis, such as the war in Ukraine, further exacerbate the risks of a PR crisis this year.

Additionally, an increasingly prominent public agenda, particularly due to the pre-electoral year, focused on political issues with national impact, such as Schengen accession, poses new challenges for many foreign companies in Romania. As a novelty this year, attention should also be drawn to cybersecurity risks, which can easily escalate into PR crises. Unchanged are the reputation risks stemming from social media, where discourse has become increasingly aggressive. This year, especially from autumn onwards, I anticipate new storms on social networks, amplified by populist messages that will intensify as elections approach.

What do you remember about the first PR crisis you faced? What did you learn?

The first PR crisis I experienced was ten years ago in a public company with over 20,000 employees and powerful trade unions supporting it. It started with a routine business decision that a private company would typically implement without much controversy. However, it triggered disproportionate reactions from politicians. It involved electoral advertising, where the content transmitted by the beneficiary, in this case a political party, exclusively belonged to them. No ethical or best practice rules were violated, and the service had been contracted by the same party in previous elections. The company was always an easy target due to its ineffective, reactive, and unconvincing communication.

In this case, the tactics implemented aimed at identifying stakeholders and engaging in multichannel communication with arguments to counteract the aggressive messages, demonstrate accountability and transparency. It was my first experience as a crisis communicator, and I learned that a critical situation can indeed present an opportunity.

Is there a survival guide for managing a PR crisis? What are the rules/advice that have solidified for you based on your experience?

Clearly, there are rules for managing a PR crisis. Organizations might be surprised to learn that these rules do not require as much creativity or communication experience as management. And it starts with leadership. A crisis is a situation that cannot be overcome without a leader - neither its prevention nor its management and resolution. Therefore, the first rule for the organization's leader is to acknowledge the likelihood of a crisis situation and then organize themselves to successfully prevent or manage such a moment. What does this mean? It means having a constant and up-to-date assessment of the company, from employees and operations to clients, suppliers, and other stakeholders. Then, organize a lean crisis management team of no more than five employees (and this is only for larger companies) to handle the crisis situation.

The composition of the crisis team is extremely important. It should include individuals with the most in-depth knowledge of the company and possess decision-making power: operational or technical personnel, human resources, occupational health and safety or emergency response personnel, the organization's leader, and the communication officer. The latter two are mandatory in any team. The crisis manual is also obligatory as it establishes both the team's composition and the roles of each member. It also sets procedures, stakeholders, partners in crisis management, and, critically, the role of communication. From experience, nearly all companies that believe they are prepared for a crisis, in fact, are not. This becomes apparent during the simulations we conduct. In my view, crisis simulations are the most valuable exercise for an organization aiming to overcome a critical situation successfully.

Now, two general rules for those who find themselves in an unprepared crisis: do not communicate anything internally or publicly until you have answers to the questions of stakeholders (consumers, employees, clients, suppliers, media, etc.), and communicate internally and externally quickly, clearly, concisely, and convincingly. It may seem contradictory, but it is not. A crisis situation is an exceptional one that places significant pressure on an organization. You must be fast and efficient in both crisis management and obtaining the necessary answers and communicating them. Therefore, the question-and-answer list takes priority. Depending on the scale of the crisis, public communication can be phased according to the updated information from this list.

What PR crisis in Romania would you classify as "YES"? Why? What about "NO"?

Local, the first PR crisis that comes to mind as a "NO" is the one created by President Klaus Iohannis' trip to Japan using a private plane. There are so many things wrong here that it deserves a separate analysis. In terms of equivalence, it's difficult for me to identify a well-managed PR crisis in the public administration sector in Romania.

It is a period of social transformations, radical shifts in paradigms, and constantly changing boundaries. How do brands and companies adapt to them?

When it comes to adaptation, being prepared for a crisis is essential in the new context because it also means being prepared for change. An organization is no longer the same after a crisis situation. Social transformations and new geopolitical realities bring, at best, mini-crises for companies. In Romania, at least, companies still do not fully realize the importance of strategy and preparedness for change/crisis.

Is there a greater sense of responsibility in crafting messages in the context of social changes over the past two to three years?

In general, the tone has changed, and large companies are more inclined to address messages that target these new changes. The target audience is more diverse, and the messages revolve more around themes of social responsibility, circular economy, recycling, and ecology. Positions are generally more cautious. There is an increasing sense of responsibility in selecting brand ambassadors, including in the realm of social media.

What mistakes have you noticed in the handling of scandals in recent years?

The rush to react, especially on social media, the lack of coordination among all parties involved in a crisis situation, and the lack of accountability.

Is there a positive aspect to such a situation? Do brands emerge "wiser"? Can we speak of an increase in awareness? Or are they harmful to the brand image, with the focus solely on mitigating negative effects?

A crisis situation, regardless of how it is managed, makes you wiser. In the case of organizations, it depends once again on the leaders and their leadership. A crisis presents opportunities that may not be initially apparent, and that is natural. History provides us with numerous examples of leaders or companies that, despite facing major crises, have remained trusted brands across generations. The difference between the demise of a brand and its success after a crisis lies in strategic thinking, where communication plays an essential role.

What can we do to avoid PR crises?

We need to be mindful of risks and the changes happening around us, always staying informed about the state of our organization. It is crucial to define our objectives accurately and to act with integrity and transparency. Being proactive is essential, and communication plays a vital role in building trust and benefiting from "the benefit of the doubt." The benefit of the doubt is immensely helpful in crisis situations as it buys us time and public openness. However, it can only be earned through consistent communication. If we have done all of this and still face a crisis, it means we have neglected the aspect of preparedness. There are crises within companies that could have turned into PR crises, but they did not because they were prepared.

How has PR evolved in Romania in this regard? Where is there room for improvement, and what should be changed?

In Romania, public relations specialists can achieve a lot in crisis communication and is a field that evolves faster than others, by nature. However, it can only do as much as the client allows. I believe that crisis simulation is still lacking in the portfolio of many agencies in Romania compared to those in the West. In the European crisis communication network CCNE, of which Lighthouse PR is an exclusive member in Romania and the region, all members of the organization provide high-quality crisis simulations because more and more companies demand it as the most effective tool for evaluating crisis preparedness.

Are there certain Romanian-specific elements that affect the way crises are managed in communication?

There may be a greater lack of trust among Romanian companies in communication professionals.

Apart from experience, are there any specific resources you would recommend for managing PR crises effectively?

The first book I recommended to a manager in Romania about ten years ago was "PR for Dummies" by Eric Yaverbaum and Ilise Benun. I believe it remains relevant for many companies in Romania that do not engage in PR or believe they don't need it, assuming that the Sales Manager can handle it. Once a PR crisis occurs, it becomes challenging to manage it alone without the assistance of an expert. It's like telling a patient with chronic pancreatitis to self-treat and become healthy. What they can do by reading and educating themselves is to avoid reaching that critical state. There is a wealth of literature on the notion of leadership. I recommend books that teach us about the determinism of global crises and strategic thinking, such as "The Revenge of Geography" by Robert Kaplan.

This material was first published in Romanian on IQads.ro, here.