| Crisis: An unstable or crucial time or state of | | | | advance, complete emailing, snail-mailing, fax and |
| affairs whose outcome will make a decisive | | | | phone number lists to accommodate rapid |
| difference for better or worse (Webster's New | | | | communication in time of crisis. And you need to |
| Collegiate Dictionary). | | | | know what type of information each stakeholder |
| Every organization is vulnerable to crises. The | | | | group is seeking, as well as the best way to |
| days of playing ostrich are gone. You can play, | | | | reach each of your contacts. |
| but your stakeholders will not be understanding or | | | | Another thing to consider is whether you have an |
| forgiving because they've watched what | | | | automated system established to ensure rapid |
| happened with Bridgestone-Firestone, Bill Clinton, | | | | communication with those stakeholders. You |
| Arther Andersen, Enron, Worldcom, 9-11, The | | | | should also think about backup communications |
| Asian Tsunami Disaster and Hurricane Katrina. | | | | options such as toll-free numbers for emergency |
| If you don't prepare, you will take more damage. | | | | call-ins or special websites that can be activated in |
| And when I look at existing "crisis management" | | | | times of crisis to keep various stakeholders |
| plans when conducting a "crisis document audit," | | | | informed and/or to conduct online incident |
| what I often find is a failure to address the many | | | | management. |
| communications issues related to crisis/disaster | | | | Consider these factors in advance and rapid |
| response. Organizations do not understand that, | | | | communication during crises will be relatively easy. |
| without adequate communications: | | | | 7. Anticipate Crises |
| · Operational response will break down. | | | | If you're being proactive and preparing for crises, |
| · Stakeholders (internal and external) will | | | | gather your Crisis Communications Team for long |
| not know what is happening and quickly be | | | | brainstorming sessions on all the potential crises |
| confused, angry, and negatively reactive. | | | | which can occur at your organization. There are |
| · The organization will be perceived as | | | | at least two immediate benefits to this exercise: |
| inept, at best, and criminally negligent, at worst. | | | | · You may realize that some of the |
| The basic steps of effective crisis | | | | situations are preventable by simply modifying |
| communications are not difficult, but they require | | | | existing methods of operation. |
| advance work in order to minimize damage. The | | | | · You can begin to think about possible |
| slower the response, the more damage is | | | | responses, about best case/worst case scenarios, |
| incurred. So if you're serious about crisis | | | | etc. Better now than when under the pressure of |
| preparedness and response, read and implement | | | | an actual crisis. |
| these 11 steps of crisis communications, the first | | | | In some cases, of course, you know that a crisis |
| eight of which can and should be undertaken | | | | will occur because you're planning to create it -- |
| before any crisis occurs. | | | | e.g., to lay off employees, or to make a major |
| The 11 Steps of Crisis Communications | | | | acquisition. Then, you can proceed with steps 9-11 |
| 1. Identify Your Crisis Communications Team | | | | below, even before the crisis occurs. |
| A small team of senior executives should be | | | | There is a more formal method of gathering this |
| identified to serve as your company's Crisis | | | | information that I call a "vulnerability audit," about |
| Communications Team. Ideally, the team will be | | | | which information is available at my website, |
| led by the company CEO, with the firm's top | | | | 8. Develop Holding Statements |
| public relations executive and legal counsel as his | | | | While full message development must await the |
| or her chief advisers. If your in-house PR | | | | outbreak of an actual crisis, "holding statements" - |
| executive does not have sufficient crisis | | | | messages designed for use immediately after a |
| communications expertise, he or she may choose | | | | crisis breaks - can be developed in advance to be |
| to retain an agency or independent consultant | | | | used for a wide variety of scenarios to which the |
| with that specialty. Other team members should | | | | organization is perceived to be vulnerable, based |
| be the heads of major company divisions, to | | | | on the assessment you conducted in Step 7 of |
| include finance, personnel and operations. | | | | this process. An example of holding statements |
| Let me say a word about legal counsel. | | | | by a hotel chain with properties hit by a natural |
| Sometimes, during a crisis, a natural conflict arises | | | | disaster - before the company headquarters has |
| between the recommendations of the company's | | | | any hard factual information - might be: |
| legal counsel on the one hand, and those of the | | | | "We have implemented our crisis response plan, |
| public relations counsel on the other. While it may | | | | which places the highest priority on the health and |
| be legally prudent not to say anything, this kind of | | | | safety of our guests and staff." |
| reaction can land the company in public relations | | | | "Our hearts and minds are with those who are in |
| "hot water" that is potentially, as damaging, or | | | | harm's way, and we hope that they are well." |
| even more damaging, than any financial or legal | | | | "We will be supplying additional information when it |
| ramification. Fortunately, more and more legal | | | | is available and posting it on our website." |
| advisors are becoming aware of this fact and are | | | | The organization's Crisis Communications Team |
| working in close cooperation with public relations | | | | should regularly review holding statements to |
| counsel. The importance of this understanding | | | | determine if they require revision and/or whether |
| cannot be underestimated. Arther Andersen lost | | | | statements for other scenarios should be |
| its case and went out of business due to the | | | | developed. |
| judgment rendered by the court of public opinion, | | | | 9. Assess the Crisis Situation |
| not the judgment of a court of law. | | | | Reacting without adequate information is a classic |
| 2. Identify Spokespersons | | | | "shoot first and ask questions afterwards" |
| Within each team, there should be individuals who | | | | situation in which you could be the primary victim. |
| are the only ones authorized to speak for the | | | | But if you've done all of the above first, it's a |
| company in times of crisis. The CEO should be | | | | "simple" matter of having the Crisis |
| one of those spokespersons, but not necessarily | | | | Communications Team on the receiving end of |
| the primary spokesperson. The fact is that some | | | | information coming in from your communications |
| chief executives are brilliant business people but | | | | "tree," ensuring that the right type of information |
| not very effective in-person communicators. The | | | | is being provided so that you can proceed with |
| decision about who should speak is made after a | | | | determining the appropriate response. |
| crisis breaks - but the pool of potential | | | | Assessing the crisis situation is, therefore, the first |
| spokespersons should be identified and trained in | | | | crisis communications step you can't take in |
| advance. | | | | advance. But if you haven't prepared in advance, |
| Not only are spokespersons needed for media | | | | your reaction will be delayed by the time it takes |
| communications, but for all types and forms of | | | | your in-house staff or quickly-hired consultants to |
| communications, internal and external, including | | | | run through steps 1 to 8. Furthermore, a hastily |
| on-camera, at a public meeting, at employee | | | | created crisis communications strategy and team |
| meetings, etc. You really don't want to be making | | | | are never as efficient as those planned and |
| decisions about so many different types of | | | | rehearsed in advance. |
| spokespersons while "under fire." | | | | 10. Identify Key Messages |
| 3. Spokesperson Training | | | | With holding statements available as a starting |
| Two typical quotes from well-intentioned | | | | point, the Crisis Communications Team must |
| company executives summarize the reason why | | | | continue developing the crisis-specific messages |
| your spokespersons should receive professional | | | | required for any given situation. The team already |
| training in how to speak to the media: | | | | knows, categorically, what type of information its |
| · "I talked to that nice reporter for over | | | | stakeholders are looking for. What should those |
| an hour and he didn't use the most important | | | | stakeholders know about *this* crisis? Keep it |
| news about my organization." | | | | simple -- have no more than three main |
| · "I've done a lot of public speaking. I | | | | messages for all stakeholders and, as necessary, |
| won't have any trouble at that public hearing." | | | | some audience-specific messages for individual |
| Regarding the first example, there are a good | | | | groups of stakeholders. |
| number of Mike Wallace's "60 Minutes" victims | | | | 11. Riding Out the Storm |
| who thought they knew how to talk to the press. | | | | No matter what the nature of a crisis...no matter |
| In the second case, most executives who have | | | | whether it's good news or bad...no matter how |
| attended a hostile public hearing have gone home | | | | carefully you've prepared and responded...some of |
| wishing they had been wearing a pair of Depends. | | | | your stakeholders are not going to react the way |
| All stakeholders - internal and external - are just | | | | you want them to. This can be immensely |
| as capable of misunderstanding or misinterpreting | | | | frustrating. What do you do? |
| information about your organization as the media, | | | | · Take a deep breath. |
| and it's your responsibility to minimize the chance | | | | · Take an objective look at the |
| of that happening. | | | | reaction(s) in question. Is it your fault, or their |
| In one example of such confusion, a completely | | | | unique interpretation? |
| healthy, well-managed $2 billion company's stock | | | | · Decide if another communication to |
| price dropped almost 25 percent in one day | | | | those stakeholders is likely to change their |
| because Dow Jones reported that a prominent | | | | impression for the better. |
| securities firm had made a "sell" recommendation | | | | · Decide if another communication to |
| which it later denied ever making. The damage, of | | | | those stakeholders could make the situation |
| course, was already done. | | | | worse. |
| Spokesperson training teaches you to be | | | | · If, after considering these factors, you |
| prepared, to be ready to respond in a way that | | | | think it's still worth more communication, then |
| optimizes the response of all stakeholders. | | | | take your best shot! |
| 4. Establish Communications Protocols | | | | "It Can't Happen To Me" |
| Initial crisis-related news can be received at any | | | | When a healthy organization's CEO or CFO looks |
| level of a company. A janitor may be the first to | | | | at the cost of preparing a crisis communications |
| know there is a problem, or someone in | | | | plan, either a heavy investment of in-house time |
| personnel, or notification could be in the form of a | | | | or retention of an outside professional for a |
| midnight phone call from an out-of-town | | | | substantial fee, it is tempting for them to |
| executive. Who should be notified, and where do | | | | fantasize "it can't happen to me" or "if it happens |
| you reach them? | | | | to me, we can handle it relatively easily." |
| An emergency communications "tree" should be | | | | Hopefully, that type of ostrich-playing is rapidly |
| established and distributed to all company | | | | becoming a thing of the past. Yet I know that |
| employees, telling them precisely what to do and | | | | thousands of organizations hit by Hurricane Katrina |
| who to call if there appears to be a potential for | | | | will have, when all is said and done, suffered far |
| or an actual crisis. In addition to appropriate | | | | more damage than would have occurred with a |
| supervisors, at least one member of the Crisis | | | | fully developed crisis communications plan in place. |
| Communications Team, plus an alternate member, | | | | This has also been painfully true for scores of |
| should include their cellphone, office and home | | | | clients I have served over the past 23 years. |
| phone numbers on the emergency contact list. | | | | Even the best crisis management professional is |
| Some companies prefer not to use the term | | | | playing catch up - with more damage occurring all |
| "crisis," thinking that this may cause panic. Frankly, | | | | the time - when the organization has no crisis |
| using "potentially embarrassing situations" or similar | | | | communications infrastructure already in place. |
| phrases doesn't fool anyone. Particularly if you | | | | The Last Word - For Now |
| prepare in advance, your employees will learn that | | | | I would like to believe that organizations worldwide |
| "crisis" doesn't even necessarily mean "bad news," | | | | are finally "getting it" about crisis preparedness, |
| but simply "very important to our company, act | | | | whether we're talking about crisis communications, |
| quickly." | | | | disaster response or business continuity. Certainly |
| 5. Identify and Know Your Stakeholders | | | | client demand for advance preparation has |
| Who are the stakeholders that matter to your | | | | increased dramatically in the past several years, |
| organization? Most organizations, for example, | | | | at least for my consultancy. But I fear that there |
| care about their employees, customers, | | | | is, in fact, little change in what I have said in the |
| prospects, suppliers and the media. Private | | | | past, that 95 percent of American organizations |
| investors may be involved. Publicly held companies | | | | remain either completely unprepared or |
| have to comply with Securities and Exchange | | | | significantly under-prepared for crises. And my |
| Commission and stock exchange information | | | | colleagues overseas report little better, and |
| requirements. You may answer to local, state or | | | | sometimes worse statistics. |
| federal regulatory agencies. | | | | Choose to be part of the prepared minority. Your |
| 6. Decide on Communications Methods | | | | stakeholders will appreciate it! |
| For each stakeholder group, you need to have, in | | | | |