Business Crisis: How to Prepare and Communicate

One of the most overlooked responsibilities of any organization is what to do when a business related crisis or a life and death emergency arises. With today's violent world and the after-effects of the terrorist attacks on 9/11; the art of planning, organizing, and effective communications is vital to the health of any business.

In the article, How to Communicate and Prepare for a Crises, the authors (Vanessa, Rugo, Clarke) didn't dwell on meaningless thoughts or ideas but rather to the point of what to do and what the planning must consist have in dealing with survival.

The crisis can be of any disaster whether it is a natural disaster, a terrorist attack; it can be an electrical short that causes a fire, a public relations snafu, or hundreds of other unexpected disasters and crisis'. Whether it's an issue of life versus death or whether the business will survive intact after a disaster, the same message is communicating and planning. Those in management must adhere to set forth policies of the company. But what if the company does not have such a policy? The authors suggest a corporate crises communications plan to be in place to counter such crises.

Such a disruption is described as any type of crisis that would disrupt the company, give it a bad reputation, and lose investor confidence or life and death scenarios. It can also be a merger, a hostile takeover and even comments of the CEO can be taken for a ride as meaning one thing and the outside world takes it another way. The article pointed out that even the public bashing could be more damaging than the actual crisis. I believe that to be true as the public confidence in the stock market of today is the evidence one needs to be able to figure that out. One company's ills aren't necessarily another company's or related industry problem, however it could be perceived that way.

The article's goal was to make the end result manageable with minimal damage of reputation as possible. They came up with nine steps to ensure a company can survive any crises. Those nine steps were: prepare, communicate, cultivate relationships, set responsibilities, practice, act responsibility, don't second-guess, prepare your spokesman and repair your corporate reputation.

All nine steps should be every member of management's responsibility. In reading and understanding each of the nine steps, let's break them down as to how they would relate to a crisis.

The preparing aspect of communications is to have a set standard of how such communications is implemented. In some scenarios, email will work sufficiently. However, if the crisis is life or death, central control point contacts will suffice as well an in-depth crisis communication plans in place. The interesting aspect of this point in the article is that it stated that companies spend more time planning company picnics that planning for their company's survival. I wonder how many companies do just that and the people that work there are not aware? This level of planning is a part of the strategic planning at the levels of senior management. That is where their leadership comes into play not to mention, one of their main responsibilities.

Communication must encompass all executives and employees at all levels as each group of people in an organization has specific needs. This also includes vendors and external customers.

When the 9/11/2001 terrorist attacks occurred, the Federal Reserve went to work on contacting all financial institutions to re-assure them the money would still flow. The flow of aircraft to transport checks around the country was the first to get clearance by the federal government. While all other aircraft were still grounded, these planes were actually in the air. Most of the outside world did not know this. However, it was accomplished because communication and strategic planning was the key. A vast communications plan that entailed the FAA, the State Department, all Federal Reserves, and the Department of Defense all communicated together to keep things running. As a result, all businesses must have a plan in place in order to survive. Can you imagine if the Federal Reserve was not prepared?

A communications plan must outline the role of responsibilities. During a crises, it is not the time to worry of who does what. That part of the strategic plan should be in place.

Do not second-guess and definitely have a spokesman. After all, the President of the United States has a spokesman, why shouldn't a business have its own? It would be wise to have one if the business cares to protect its reputation. And if one if a spokesman is not available, issues could be leaked and lawsuits could pour in. That's not to say to hide things but to make sure comments and the likes are not misinterpreted.

One must protect a company's reputation or if the reputation is damaged it must be repaired in order to survive.

Communication in today's world has become very complex and at times, unmanageable. However, if it is integrated into a strategic planning core and the leadership is solid, then a company can overcome just about any crisis that may arise.

The tragedy of the terrorist attacks on 9/11, 2001, put the Federal Reserve in a position that it or any other business had never encountered. However, because of strong leadership of its management team, a communications plan that was central to its success, the motivation of every employee that was involved, they were able to overcome the obstacles and kept the financial institutions in working order with very little disruption and that included the economy. This article that I reviewed proved its point as 9/11 proved what can happen if a company is prepared to tackle any crisis that they may be presented with.

Reference:

Vanessa Rugo Clarke & Co. Boston (March 2001) How to communicate and prepare for a crisis.

Waste Age v. 32 no3 p. 42-4 ISSN: 0043-1001