Managing Crises with Finesse

4 Jan
A crisis may feel like this, but remember that everything has a beginning, a middle and an ending.

A crisis may feel like this, but remember that everything has a beginning, a middle and an ending.

The words “crisis” and “finesse” do not belong together, but reputation-master Ronald Alsop combines them anyway. A crisis can be a defining moment for a company: Successful crisis management can separate a company from the pack—in a good or a not so good way.

You cannot prevent crisis, but you can keep it from spinning out of control. No plan is bullet-proof, but get as close as you can. Here are some important components that Alsop and others identify for bullet-resistant crisis management:

  1. Create a crisis team comprised of a balanced set of expertise. It should include representation from PR, legal and IT, in addition to line function representation. Everyone on the team should be quick-thinking and accurate to a fault. The leader should be the President or CEO, and the spokesperson should be a cool-headed and seasoned (not too much seasoning) member of the PR team.
  2. Define possible crisis scenarios. These can be grouped into various categories, such as natural disasters, human error (e.g., employee misconduct, corporate ethics issues) and product or service flaws. In order to best define these, work with your line managers. Ask them what they worry the most about—what keeps them up at night. Also make sure to list any crises that have been faced by your competitors, because it is likely that you could face the same issues at some point in time.
  3. Prioritize crisis management based upon probability of occurrence and level of risk to the company’s reputation  if the crisis should come to pass. You can set up a grid and work through each scenario based upon the combination of these two factors.
  4. Map out a plan of response for each scenario. High probability/high reputation damage risk  scenarios should be explored first because a crisis management approach is most crucial in these cases.
  5. Set up a crisis command center. The command center should be a “war room” where the team can convene and extend its tentacles as needed to take action.
  6. Create a crisis reference book. This should include all relevant contact information, protocols given various scenarios, templated releases for categories of crisis (natural disaster, human error such as corporate misconduct and product issues), and flow charts stepping through key steps in the reaction process.
  7. Put your staff through their paces with crisis simulations. The crisis team, and other staff, should routinely be exposed to mock crisis scenarios to test response time and accuracy. These can be announced or unannounced by management. Fire drills are a good test of your company’s crisis smarts.
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