Last week we spoke about the importance of reputational risk management. We offered you some tips on what you can do to be proactive and actively seek out and be informed on what is being said about your organization. Now, you can monitor and measure all you want, but eventually, a crisis will occur, and the purpose of this post is to advise you on what to do when something does actually happen. Of course, all crisis response plans should be tailored and unique to your specific organization’s culture, goals and problem.
A 2005 survey of senior risk managers by the Economist Intelligence Unit found that less than half of respondents said that their firms are “good” at crisis management, while 11 percent rated their firms as “poor.” Those aren’t great numbers, right? Once a crisis occurs, your response plan should take into consideration all important stakeholders, including customers, investors, employees, and regulators. The most important and essential elements of your crisis response plan include:
- The core crisis management team has been identified and each member knows his/her role;
- The most threatening vulnerabilities have been identified, along with other likely concerns;
- Key stakeholders/audiences have been identified, along with their likely concerns related to the most threatening vulnerabilities;
- The most effective communication channels for each category of stakeholder have been identified and plans are in place to quickly access each channel;
- Company spokesperson has been appointed and trained;
- The plan has been rehearsed;
- The plan is periodically reviewed and updated.
Two things must happen right away when a crisis erupts: the problem must be fixed and communication with stakeholders must be quickly established. The most important aspect of fixing the problem is always communicating the specific steps being taken to fix the problem. Even if the recovery process is no quick fix, you will portray the image of a company moving swiftly to fix the problem. You should also communicate with stakeholders at all times. They are your most important brand enthusiasts, keep them in the loop.
Repairing a reputation can take several years but if done correctly with integrity and honest communication, a crisis can even turn into a reputational win. Organizations that turn disaster into a net gain in reputation are those that respond quickly and decisively, taking full responsibility for mistakes and executing an action plan that remedies the problem. For more information on a crisis response plan for your organization, feel free to contact me at 732.395.4251 or [email protected].
