Ten Fundamentals of Effective Crisis Management
Secretary of State Henry Kissinger once said: “There cannot be a crisis next week. My schedule is full.” Of course, that’s not how life works….and we are seeing that first hand with Coronovirus. From sourcing materials to cancelled tradeshows which all result in lost sales, businesses across the country are feeling the effects of a crisis.
At Coveted we are helping our clients work through this crisis while also using the opportunity to plan for other unforeseen circumstances. More importantly, we are showing our clients how their own actions can have the greatest impact on whether they survive the crisis with both business and reputation intact.
Here are ten fundamentals of effective crisis management.
1. Anticipate potential scenarios – Don’t wait until disaster strikes. Gather your leadership team and play what if. A manufacturer could have safety recall. A builder could have an overpass collapse. A banking house could uncover a major fraud. Of course you could play this game all day, but by identifying at least 3 potential scenarios could relieve some of the anxiety in the midst of a crisis.
2. Build team expertise – Again, before something bad happens, study the best (and worst) crisis management cases. How did Johnson & Johnson rescue the Tylenol brand? How did Cadbury fumble its response to rumors of contaminated chocolate?
3. Get all the facts – Assess the situation before taking a position or acting. But don’t remain silent. Assure all stakeholders, and the public, that you are gathering the facts and organizing your response.
4. Plan with your team – Put your best people on the crisis management team, with specific responsibilities for developing actions. Establish clear and focused accountability for incoming and outgoing information.
5. Include stakeholders – Shareholders, employees, customers and the public all have much at risk. They need clear answers to the same basic questions: How bad is it? Are you in control of the problem?
6. Communicate early and often – Sharing what you know, even when you don’t know much, is essential to leading your team, earning stakeholder trust and building public confidence in you as the spokesperson.
7. Be open and honest – Now that everyone has a video camera and access to international media on their phone, hiding the truth is the worst possible approach. Own the facts and be ready to manage them.
8. Be transparent and accountable -- Apologize for the trouble. Let people feel the authenticity of your intention to remain accessible, to take responsibility and to use your position of informed authority to fix things.
9. Don’t forget social media – Rumors can go viral in seconds and trolls may spread malicious information intentionally. Enlist your digital marketing and IT teams to respond with legitimate information.
10. Don’t play the victim – During the Deepwater Horizon disaster, the CEO of BP notoriously whined, “I want my life back.” Keep the focus on those whose lives and paychecks are hit hardest by the crisis.
Bottom Line: With effective planning before a crisis and with skillful management of the aftermath, you can navigate a disaster and your company can even be admired for your response. Give us a call as you navigate your way through Coronavirus or any other problem facing your company.