How to Manage a Crisis So Your Business Saves Face
No company is immune to a crisis. Whether it’s flight cancellations that leave passengers stranded, yoga pants that prove to be see-through, or hackers that steal credit card data, every day brings new crises.
Sometimes, the crisis is on a smaller—though no less embarrassing—scale. At a company I once worked for, boxes of bills ready for mailing to customers somehow ended up scattered all over the ground in a nearby park. The local newspaper found the situation hilarious—and front-page-worthy. Not good!
The starting point in managing a crisis is to own up to the situation. Otherwise, blaming takes hold, and we all know how easily some people can find others to blame. But until the responsible parties take ownership of the problem, little progress can be made in rectifying the situation or regaining the trust of those affected.
Communication is key in most efforts, but never more than during a crisis. Periodic updates let people know both that you’re working on the situation and that they haven’t been forgotten. People who hear nothing for a sustained period tend to imagine the worst, so regular updates are important even if there’s no new information to present.
In the rush to communicate with external parties, don’t forget those inside the company. To the extent possible, talk to employees before communicating with those on the outside. That way, they’ll learn the facts before they hear distortions from outside parties. Retaining employee trust during a crisis is critical in moving forward once it’s resolved.
It’s important to quickly bring all appropriate resources to bear in resolving a crisis. This is not the time to dither, particularly if the organization’s finances or reputation are at stake. These resources need to focus on fixing the situation, not figuring out what should have happened to avoid it. After things have settled down, there will be time to analyze what went wrong and what needs to happen to avoid a recurrence.
Of course, the ideal thing is to avoid crises in the first place. A vulnerability audit may help in identifying potential points of weakness and anticipating crisis scenarios. But since you can’t anticipate every situation (really, who could have anticipated bills strewn about the park?), it’s wise to have a crisis management plan in place. This would entail identifying spokespersons who can help to separate fact from rumor, communicate with the public and the media, and keep track of steps taken and information communicated.
Faced with bad news, many leaders try to convince themselves and others that things aren’t really so bad. In this state of denial, they fail to take strong and speedy action to resolve matters. This seems like an important lesson to keep in mind.
