Crisis Happens
A crisis
is a critical incident or situation that can potentially damage your
company's reputation, put executives' integrity on the line, impact
your stock price, even threaten your company's existence.
We think
of a crisis as a dramatic event, like an earthquake, a bankruptcy
filing or a product recall. But there are other less spectacular occurrences
that can create crises. Executives trade barbs publicly in the midst
of a merger. Back orders and bad service cause a public outcry. A
company reorganization makes investors nervous.
Even
the worst public relations nightmare can be neutralized by a swift,
decisive, sincere response. In recent years, the Odwalla product
failure resulted in a tragic loss of life and yet Odwalla emerged
as a caring and responsive corporation due to their rapid and appropriate
response to the public health threat. Odwalla's timely, factual
communication with victims' families, the public and the media literally
saved their company from extinction.
What's on the Line
Every
organization is vulnerable to reputation-shattering situations. This
isn't just about toxic spills and defective products. A crisis is
anything that could lead the public to lose confidence in your company
or your leadership.
"It won't happen to
us."
Denial
is a powerful force. Many executives want to believe that they can
dodge the bullet. While highly publicized disasters in recent years
have helped drive the development of crisis communication planning
in many organizations, most companies still either don't have a plan
or don't practice the plan they have.
Small
companies and consultants aren't immune to crisis either. With small
profit margins and big personal responsibilities, sole owners and
family businesses can't afford a crisis that jeopardizes the company's
good name. A lapse in good customer service practices or a project
gone wrong can wipe out everything you've worked for.
Disaster Management
101
Be
prepared.
According to an industry study, only one in five companies is prepared
for a crisis. Don't wait until a crisis occurs to think about a crisis
plan. If your organization doesn't include experienced crisis planners,
hire a crisis communications consulting firm like The Kennedy Group
to help you assess your risks. Starting at the top of your organization,
form a crisis communication team to develop an action plan.
Take
stock before drafting a plan. To help you identify strengths and weaknesses,
conduct an inventory of resources and communications channels already
in place. Look at everything from the employee directory to the availability
of extra manpower in emergency situations.
Don't
spare resources when a crisis occurs. Get the right people involved
as soon as possible.
Get
help now. Most corporate communications professionals wear many
hats - usually marketing, public relations and more - and most aren't
trained to handle crisis communications. You'll need help immediately
from specialists who are qualified to help you evaluate and respond
effectively.
Train
employees.
A crisis communication plan is only as good as the training that accompanies
it. According to a University of Kansas study, only one in three organizations
with crisis communication plans have practiced or conducted crisis
training during the previous 24 months.
During
a crisis every employee in your organization should be kept
informed as the situation develops and should know what to do even
if his or her role is to simply keep working as usual.
Take
action. A crisis is a situation that is out of control. Get control
and keep it by making sound decisions, taking corrective action and
facilitating open and honest communications.
When
crisis occurs, company leadership makes the call on how the situation
will be handled or ignored. In 1996, Texaco's chairman distinguished
himself by taking responsibility for two high-ranking employees
who were caught on tape making racial slurs.
Know
your audience.
Your plan should include a detailed list of audiences as well as notification
procedures. Don't wait for a crisis to cultivate relationships with
important audience influencers.
In many
cases, the media is key to successful crisis communication. Their
power to make or break a company during crisis cannot be denied. If
your company does not maintain contact with media personnel and outlets,
don't count on establishing relationships in the heat of a crisis.
To ensure access to the media and control of the story, crisis communications
specialists who have well-established media relationships should be
part of your team.
Communicate
with integrity. If you do nothing else to prepare for crisis,
prepare your spokespeople. Work with your executive team and subject
matter experts to develop consistent messages that demonstrate the
company's responsibility and good corporate citizenship.
Be
proactive. Your spokesperson is someone who is empowered to act
on behalf of the company ¾ immediately. Bring on the president or
the appropriate subject matter expert. If the company is to blame,
take responsibility. Don't hide behind your attorneys and don't designate
an attorney as your only spokesperson unless your company is a law
firm.
If you
want control of the message, put your information in the pipeline
and keep it coming.
The
Exxon Valdez tragedy is practically synonymous with the word "disaster".
That's because Exxon didn't take swift, decisive and positive action
in the hours immediately following the accident. The CEO was unavailable
for several days after the accident and when the national press
interviewed him, he was defensive and unprepared to explain what
happened. The public relations and financial consequences were devastating
and Exxon's public relations recovery took years.
Denver
Shriners Provide Free Screening Clinics
Denver's El Jebel
Shrine offers free Screening Clinics for kids with burn- and orthopedic-related
conditions.
The Clinics are
held twice a month at the El Jebel Shrine Temple, 4625 W. 50th Avenue,
Denver. Children 18 and under are welcome.
The Screening
Clinics are designed to identify untreated and under-treated children
with burn- and orthopedic-related medical problems who may be eligible
for treatment at NO COST at Shriners Hospitals across the US. The
first Shrine Hospital opened in 1922 and today there are 22 Shrine
Hospitals in the US, Mexico and Canada. Children are treated at no
cost, regardless of family financial circumstances.
El Jebel recently
launched a partnership program with Colorado school districts, putting
information about the Screening Clinics into the hands of thousands
of students and their families.
For more information
about the Screening Clinics, call (303) 455-3470, or download this
flier in English or Spanish. To learn more about El Jebel Shrine,
visit the Website at www.eljebelshrine.org.
No man stands so tall as when he stoops to help a child.
