How to Manage Crisis in Business Communication

Responding to a crisis with business communication takes a level head and preparation.

In a world where unethical business practices and natural disasters place increased scrutiny on today's companies, the ability to communicate effectively with employees, shareholders and the public during a crisis has become a critical aspect of any successful company's survival and continued prosperity. Understanding how to approach crisis communications may be difficult, but by following these steps, you can be successful in navigating those dangerous waters.

Instructions

1. Immediately respond to the crisis. With Internet and 24-hour news coverage speeding the flow of information, companies no longer have the luxury of waiting several days to acknowledge the problem while the rest of world figures out what's going on. Companies should publicly state that they have recognized the problem, and identify the action they will be taking in the near future to remedy the problem.

   Failure to immediately respond to the problem can make a company look like it is scrambling to hide something or dodge blame. For example, when Toyota failed to immediately address the safety failings in some of its vehicles, the public and media began to characterize it as a greedy corporate monster. They dredged up old company memos showing that Toyota executives had known about the problem for months and took no action. The result was a necessary and costly public relations advertising strategy to try to repair the the company's image.

2. Quickly analyze the problem at hand. Identify the company's culpability in the situation and determine the appropriate steps to take to, first, directly address the problem currently hurting the public, and, second, prevent similar problems from occurring in the future. This helps make the company look proactive and part of a solution, instead of appearing as part of the problem.

   For instance, when Tylenol hit a crisis when its pills were poisoning and being ingested by the public, it addressed the initial problem by taking all its products off the shelf and issuing a very public recall of its pain relievers. The company followed up by developing new tamper-proof packaging to help prevent a similar situation from happening again. As such, the company was able to maintain public trust in its product and brand.

3. Keep the public aware of every step the company takes. Issue press releases detailing every effort that is made. The public will want to see constant effort taking place to know that you are taking the situation as seriously as it is. Even after you have announced what plans you have to remedy the problems, continue to issue updates with every phase of the plan.

   Failure to keep the public continuously apprised of the situation can lead to its dissatisfaction, even if the company is doing everything it can. For example, in 1984, when Union Carbide leaked tons of pesticides into a local community in Bhopal, India, it faced a huge public uproar. The company stressed its immediate response, which was to send relief materials to the community and a host of medical experts to assist in the fallout. However, the company also set up a charitable trust of more than $100 million in relief efforts and funded the construction of two hospitals in the area. However, after being acquired by Dow Chemicals, Union Carbide did not heavily publicize these steps, leading the public to focus instead on the arrest warrants being issued for a former United Carbide executive and causing continuous drama for Dow.

Tips & Warnings

• Plan ahead for potential crises. The companies most effective at dealing with crises develop response plans before situations ever occur. This allows them to make decisions calmly and reasonably.

References

• Reuters: Toyoda faces critical lawmakers over safety flaws
• "Public Relations: Strategies and Tactics"; 2007 Dennis L. Wilcox, Glen T. Cameron, and Phillip Ault;
• "Crisis management: planning for the inevitable"; Steven Fink; 2000